Document:

Exhibit 4.4

AETNA AFFILIATE 401(k) PLAN

Effective January 1, 2013

  

  

  

 

AETNA AFFILIATE 401(k) PLAN

W I T N E S S E T H:

WHEREAS, the Company wishes to establish the Aetna Affiliate 401(k) Plan for Employees to provide retirement benefits to its Eligible Employees effective January 1, 2013; and

WHEREAS, it is the intention of the Company that such Plan and its Trust meet the requirements of Section 401(a) and Section 501(a) of the Internal Revenue Code;

NOW, THEREFORE

Effective January 1, 2013, the Plan and the Trust are hereby established to provide retirement benefits to Eligible Employees:

The Plan and Trust created in accordance with the terms hereof shall be formally known as the Aetna Affiliate 401(k) Plan.

 

  

  

  

 

	
ARTICLE I - DEFINITIONS

	
1

	
1.1

	
“Account”

	
1

	
1.2

	
“Account Value”

	
1

	
1.3

	
“Active Participant”

	
1

	
1.4

	
“Actual Contribution Percentage”

	
1

	
1.5

	
“Actual Deferral Percentage”

	
1

	
1.6

	
“Adjusted”

	
2

	
1.7

	
“Affiliate”

	
2

	
1.8

	
“Annuity Starting Date”

	
2

	
1.9

	
“Authorized Leave of Absence

	
2

	
1.10

	
“Beneficiary”

	
3

	
1.11

	
“Benefit Finance Committee”

	
3

	
1.11A

	
“Catch-up Contribution Agreement”

	
3

	
1.11B

	
“Catch-up Contributions”

	
3

	
1.11C

	
“Catch-up Eligible Participant”

	
3

	
1.12

	
“Change in Control”

	
3

	
1.13

	
“Code”

	
4

	
1.14

	
"Company”

	
4

	
1.15

	
“Compensation Deferral Agreement”

	
4

	
1.16

	
“Deferral Account

	
4

	
1.17

	
“Deferral Contributions”

	
4

	
1.18

	
“Deferral Contribution Rate”

	
4

	
1.18A

	
“Designated Roth Contributions

	
4

	
1.19

	
“Disability”

	
5

	
1.20

	
“Discretionary Contributions”

	
5

	
1.21

	
“Discretionary Contribution Account”

	
5

	
1.22

	
“Earnings or Profits”

	
5

	
1.23

	
“Effective Date”

	
5

	
1.24

	
“Eligible Employee”

	
5

	
1.25

	
“Employee”

	
5

	
1.26

	
“Employer”

	
6

 

  

i

  

 

	
1.27

	
“Employment Commencement Date”

	
6

	
1.28

	
“Fiscal Year”

	
6

	
1.29

	
“Group Annuity Contract”

	
6

	
1.30

	
“Highly Compensated Employee”

	
6

	
1.31

	
“Hour of Service”

	
6

	
1.32

	
“Incentive Contributions”

	
8

	
1.33

	
“Incentive Contribution Account”

	
8

	
1.34

	
“Insurer”

	
8

	
1.35

	
“Investment Fund”

	
8

	
1.36

	
“Limitation Year”

	
8

	
1.37

	
“Matched Deferral Contribution”

	
8

	
1.38

	
“Net Income”

	
8

	
1.39

	
“Nonhighly Compensated Employee”

	
8

	
1.40

	
“Normal Retirement Age”

	
8

	
1.41

	
“Normal Retirement Date”

	
8

	
1.42

	
“Part Time Employee”

	
9

	
1.43

	
“Participant”

	
9

	
1.44

	
“Participating Company”

	
9

	
1.45

	
“Pay”

	
9

	
1.46

	
“Period of Severance”

	
10

	
1.47

	
“Plan”

	
10

	
1.48

	
“Plan Administrator”

	
11

	
1.49

	
“Plan Year”

	
11

	
1.50

	
“Rollover Account”

	
11

	
1.51

	
“Rollover Contributions”

	
11

	
1.51A

	
“Roth Account”

	
11

	
1.52

	
“Section 414 Compensation”

	
11

	
1.53

	
“Spouse”

	
11

	
1.54

	
“Stable Value Option”

	
11

	
1.55

	
“Stock”

	
12

	
1.56

	
“Stock Account

	
12

	
1.56A

	
“Supplemental Employer Contribution”

	
12

 

  

ii

  

 

	
1.56B

	
“Supplemental Employer Contribution Account”

	
12

	
1.56C

	
“Target Retirement Fund”

	
12

	
1.57

	
“Termination from Service”

	
12

	
1.58

	
“Termination from Service Date”

	
12

	
1.59

	
“Trust”

	
12

	
1.60

	
“Trustee”

	
12

	
1.61

	
“Trust Fund”

	
12

	
1.62

	
“Unallocated Contribution Account”

	
13

	
1.63

	
“Unmatched Deferral Contributions”

	
13

	
1.64

	
“Valuation Date”

	
13

	
1.65

	
“Vesting Service”

	
13

	
1.66

	
“Voluntary Contributions”

	
14

	
1.67

	
“Voluntary Contribution Account”

	
14

	 	 
	
CONSTRUCTION

	
14

	 	 
	
ARTICLE II - PARTICIPATION IN THE PLAN

	
15

	
2.1

	
Eligible Employee

	
15

	
2.2

	
Reemployment.

	
15

	 	 
	
ARTICLE III - CONTRIBUTIONS

	
16

	
3.1

	
Rate of Deferral Contributions.

	
16

	
3.1A

	
Automatic Deferral Contributions.

	
16

	
3.1B

	
Designated Roth Contributions

	
19

	
3.2

	
When Deferral Contributions are Made

	
19

	
3.3

	
Changes in Deferral Contribution Rate

	
19

	
3.4

	
Discontinuance and Resumption of Deferral Contributions.

	
20

	
3.5

	
Special Limitation on Deferral Contributions.

	
20

	
3.6

	
Incentive Contributions.

	
24

	
3.7

	
Time and Form of Incentive Contributions

	
29

	
3.8

	
Rollover Contributions.

	
29

	
3.9

	
Voluntary Contributions.

	
30

	
3.10

	
When Voluntary Contributions are Made.

	
30

	
3.11

	
Changes in Voluntary Contribution Rate

	
30

 

  

iii

  

 

	
3.12

	
Discontinuance of Voluntary Contributions

	
30

	
3.13

	
Catch-up Contributions

	
31

	
3.14

	
Incentive Contributions Not Applicable to Catch-up Contributions

	
31

	
3.15

	
Rate and Timing of Catch-up Contributions

	
31

	
3.16

	
Changes to Catch-up Contribution Agreement

	
32

	
3.17

	
Discontinuance and Resumption of Catch-up Contributions.

	
32

	
3.18

	
Transfer to Trust Fund

	
32

	
3.19

	
Supplemental Employer Contributions

	
32

	 	 
	
ARTICLE IV - LIMITATIONS ON CONTRIBUTIONS

	
33

	
4.1

	
Return of Contributions.

	
33

	
4.2

	
Compliance with Code Section 415

	
33

	
4.3

	
Determination of Amount and Transmittal of Contributions.

	
34

	 	 
	
ARTICLE V - INVESTMENTS

	
35

	
5.1

	
Receipt of Contributions.

	
35

	
5.2

	
Investment of Accounts

	
35

	
5.3

	
Initial Investment in Funds

	
35

	
5.4

	
Change of Investment Fund.

	
35

	
5.5

	
Trustee May Hold and Distribute Cash.

	
36

	
5.6

	
Purchase of Stock; the Stock Account.

	
36

	
5.7

	
Available Investment Funds; Changes in Available Investment Funds

	
37

	
5.8

	
Contractual Income and Settlement.

	
37

	
5.9

	
Intention to Comply with ERISA Section 404(c).

	
38

	 	 
	
ARTICLE VA - EMPLOYEE STOCK OWNERSHIP PLAN

	
39

	
5A.1

	
ESOP Designation.

	
39

	
5A.2

	
Designed to Invest in Employer Securities.

	
39

	
5A.3

	
Right to Demand Employer Securities.

	
39

	
5A.4

	
Statutory Distribution Requirement.

	
39

	
5A.5

	
Voting Rights.

	
39

	
5A.6

	
Pass-Through Dividends.

	
39

	 	 
	
ARTICLE VI - ACCOUNTS AND ALLOCATIONS

	
42

 

  

iv

  

 

	
6.1

	
Unallocated Contribution Account.

	
42

	
6.2

	
Allocation of Investment Earnings.

	
42

	
6.3

	
Determination of Value.

	
42

	 	 
	
ARTICLE VII - VESTING

	
43

	
7.1

	
Accounts Other Than Supplemental Employer Contribution Acco

	
43

	
7.2

	
Supplemental Employer Contribution Account.

	
43

	
7.3

	
Occurrence of Forfeitures.

	
43

	
7.4

	
Use of Forfeitures.

	
44

	 	 
	
ARTICLE VIII - DISTRIBUTION TO PARTICIPANTS

	
45

	
8.1

	
Time of Distribution.

	
45

	
8.2

	
Distribution Upon Participant’s Termination From Service for Reasons Other Than Death or Disability

	
46

	
8.3

	
Distribution Upon Death of Participant Following Commencement of Benefits

	
47

	
8.4

	
Distribution Upon Disability of Participant.

	
47

	
8.5

	
Forms of Distribution.

	
47

	
8.6

	
Election of Form of Distribution.

	
48

	
8.7

	
Annuity Nontransferable.

	
48

	
8.8

	
Distribution Where No Election by Participant.

	
48

	
8.9

	
Limit on Distribution of Deferral Accounts.

	
48

	
8.10

	
Small Account Values; Lump Sum Cash-Out; Automatic Rollover.

	
49

	
8.11

	
Procedure for Missing Participants or Beneficiaries

	
49

	
8.12

	
Rules for Minimum Required Distributions

	
50

	
8.13

	
Distribution of Certain Accounts for Purposes of Conversion to Designated Roth Contributions.

	
55

	 	 
	
ARTICLE IX - WITHDRAWALS AND LOANS

	
56

	
9.1

	
Withdrawals from Voluntary Contribution and Rollover Accounts.

	
56

	
9.2

	
Withdrawals from Deferral and Incentive Contribution Accounts.

	
56

	
9.2A

	
Withdrawals from Supplemental Employer Contribution Account.

	
56

	
9.3

	
Hardship Withdrawals.

	
56

	
9.4

	
Timing of Withdrawals.

	
58

	
9.5

	
Distribution of Amounts Withdrawn

	
58

 

  

v

  

 

	
9.6

	
Loans to Participants.

	
58

	 	 
	
ARTICLE X - PAYMENT OF DEATH BENEFITS

	
63

	
10.1

	
Source of Death Benefits.

	
63

	
10.2

	
Determinations of Values and Cash-Outs.

	
63

	
10.3

	
Death Benefit.

	
63

	
10.4

	
Proof of Death.

	
63

	
10.5

	
Minimum Required Distributions

	
63

	
10.6

	
Form of Payment.

	
64

	 	 
	
ARTICLE XI - TERMINATION OF PLAN

	
65

	
11.1

	
Company's Right to Terminate

	
65

	
11.2

	
Effect on Employer and Trustee.

	
65

	
11.3

	
Effect on Participants.

	
65

	
11.4

	
Termination of Participation by a Participating Company.

	
65

	 	 
	
ARTICLE XII - AMENDMENT OF THE PLAN

	
66

	
12.1

	
Procedure for Amendment

	
66

	
12.2

	
Restrictions.

	
66

	 	 
	
ARTICLE XIII - MANAGEMENT OF THE PLAN

	
67

	
13.1

	
Allocation of Responsibility.

	
67

	
13.2

	
Powers and Duties of the Plan Administrator

	
68

	
13.3

	
Notices and Elections of Participants.

	
70

	
13.4

	
Accounts and Records

	
71

	
13.5

	
Compliance with Applicable Law

	
71

	
13.6

	
Liability

	
71

	
13.7

	
Indemnification.

	
71

	
13.8

	
Authorization of Payments.

	
72

	
13.9

	
Notices to Trustee.

	
72

	 	 
	
ARTICLE XIV - TRUSTEE

	
73

	
14.1

	
Accounting.

	
73

	
14.2

	
Trustee's Responsibilities Limited.

	
73

	
14.3

	
Information and Receipts

	
74

 

  

vi

  

 

	
14.4

	
Administrative Services

	
74

	
14.5

	
Expenses

	
74

	
14.6

	
Compensation of Trustee

	
75

	
14.7

	
Resignation or Removal of Trustee

	
75

	
14.8

	
Voting or Tender of Stock.

	
76

	
14.8A

	
Voting With Respect to Investment Funds Other Than the Stock Account

	
78

	
14.9

	
Indemnification by Employer.

	
78

	
14.1

	
Legal Action by Trustee

	
78

	
14.11

	
Acceptance of Trustee

	
78

	
14.12

	
Powers of Trustee

	
78

	
14.13

	
Maintenance of Indicia of Ownership

	
81

	
14.14

	
Form of Communications

	
81

	
14.15

	
Insurance Contracts.

	
81

	
14.16

	
Applicability of Article XIV

	
82

	 	 
	
ARTICLE XV - CLAIMS PROCEDURES AND CERTAIN RESTRICTIONS

	
83

	
15.1

	
Claims Procedure.

	
83

	
15.2

	
Assignment and Alienation Prohibited

	
83

	
15.3

	
Distribution Pursuant to a Qualified Domestic Relations Order

	
83

	
15.4

	
Distribution Pursuant to a Judgment, Order or Decree

	
86

	 	 
	
ARTICLE XVI - ADOPTION OF PLAN BY AFFILIATE

	
88

	
16.1

	
Purpose of Article

	
88

	
16.2

	
Adoption by Affiliate

	
88

	
16.3

	
Participation in the Plan.

	
88

	
16.4

	
Termination by a Participating Company; Ceasing to be an Affiliate.

	
89

	
16.5

	
Participating Company Plan Expenses

	
89

	
16.6

	
Company as Agent

	
90

	
16.7

	
Transferred Employees

	
90

	
16.8

	
Contributions to Trust Fund

	
90

	
16.9

	
Common Procedures and Rules

	
90

	
16.10

	
Contributions by Participating Employer.

	
91

	 	 
	
ARTICLE XVII - PROVISIONS RELATING TO TOP-HEAVY PLAN

	
92 

 

  

vii

  

 

	
17.1

	
Applicability

	
92

	
17.2

	
Definitions

	
92

	
17.3

	
Minimum Benefit.

	
96

	
17.4

	
Determination of present values and amounts

	
97

	 	 
	
ARTICLE XVIII - MISCELLANEOUS

	
98

	
18.1

	
Benefits Solely From Trust Fund

	
98

	
18.2

	
Liability for Benefits, Contributions and Expenses

	
98

	
18.3

	
Rights of Employees

	
98

	
18.4

	
Taxes and Fees

	
98

	
18.5

	
Direct Rollovers.

	
99

	
18.6

	
Merger, Consolidation, or Transfer

	
99

	
18.7

	
Applicable State Law

	
99B

	
18.8

	
Section 16 of the Exchange Act

	
99B

	
18.9

	
Manner of Communications

	
99B

	
18.10

	
Qualified Military Service

	
99C

	
18.11

	
Recovery of Benefit Overpayments

	
99C

	 	 
	
ATTACHMENT I - ACQUIRED EMPLOYERS – VESTING SERVICE CREDIT

	
I

	 	 
	
ATTACHMENT II - PARTICIPATING COMPANIES

	
II

 

  

viii

  

ARTICLE I - DEFINITIONS

1.1           “Account” means the total of the subaccounts maintained by the Plan Administrator to record the interest of a Participant in the Plan, including the Deferral Account, the Roth Account, the Incentive Contribution Account, the Supplemental Employer Contribution Account, the Voluntary Contribution Account, the Rollover Account, and the Discretionary Contribution Account.

1.2           “Account Value” means the fair market value or book value of any Account on the date assets are required to be valued.

1.3           “Active Participant” means a Participant who is an Eligible Employee and who has not yet incurred a Termination from Service Date.  In addition, a Participant shall cease to be an Active Participant as of the date he or she ceases to be an Eligible Employee.  To the extent an Active Participant becomes an “Active Participant” in the Aetna 401(k) Plan as a result of a change in his Employer, he shall cease to be an Active Participant in the Plan.

1.4           “Actual Contribution Percentage” for a specified group of Active Participants for a Plan Year shall be the average of the Contribution Percentage of each Active Participant in such group, where such Contribution Percentage shall be equal to the ratio of:

 

	 	(a)	
(i) 

	
the Incentive Contributions and Voluntary Contributions, andany Deferral Contributions and Discretionary Contributions made pursuant to Section 3.6(d), which are treated as Incentive Contributions for purposes of the Actual Contribution Percentage test,

 

	 	
(ii)

	
contributed to the Plan on behalf of the Active Participant for such PlanYear; to

(b)           the Active Participant's Section 414 Compensation for such Plan Year.  If the Plan Administrator deems it desirable, all Contribution Percentages may be calculated by taking into account Section 414 Compensation only for that portion of the Plan Year during which the individual was an Active Participant.

1.5           “Actual Deferral Percentage” for a specified group of Active Participants for a Plan Year shall be the average of the Deferral Percentage of each Active Participant in such group, where such Deferral Percentage shall be equal to the ratio of:

	 	(a)	
(i) 

	
the Deferral Contributions, and

	
  

	
(ii)

	
any Incentive Contributions and Discretionary Contributions made pursuant to Section 3.5(b), which are treated as Deferral Contributions for purposes of the Actual Deferral Percentage test, contributed to the Plan on behalf of the Active Participant for such Plan Year; to

 

  

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(b)           the Active Participant's Section 414 Compensation for such Plan Year.  If the Plan Administrator deems it desirable, all Deferral Percentages may be calculated by taking into account Section 414 Compensation only for that portion of the Plan Year during which the individual was an Active Participant.

1.6           “Adjusted” means the cost of living adjustment factor prescribed by the Secretary of the Treasury under Section 415(d) of the Code or otherwise, as applied to such items and in such manner as such Secretary shall provide.  The amounts set forth for the application of adjustments are the amounts prescribed by law as subject to adjustment and shall be adjusted from the date as prescribed by applicable law.  With respect to a Short Plan Year, items under the Plan that are subject to adjustment shall be multiplied by a fraction, the numerator of which is the number of months in the Short Plan Year and the denominator of which is twelve (12).

1.7           “Affiliate” means any entity affiliated with the Company or a Participating Company within the meaning of Section 414(b) of the Code with respect to controlled groups of corporations (within the meaning of Section 1563(a) of the Code, determined, however, without regard to Sections 1563(a)(4) and (e)(3)(C) of the Code), Section 414(c) of the Code with respect to trades or businesses (whether or not incorporated) under common control with the Company or a Participating Company, Section 414(m) of the Code with respect to affiliated service groups, and any other entity required to be aggregated with the Company or a Participating Company pursuant to regulations under Section 414(o) of the Code.  No entity shall be treated as an Affiliate for any period during which it is not part of the controlled group, under common control or otherwise required to be aggregated under Section 414 of the Code.

For this purpose, an affiliated service group is (a) a group consisting of an entity whose principal business is the performance of medical, legal, accounting or other services and any other entity that regularly performs services for or with the first organization or other organizations in the group, (e.g., a health maintenance organization and a professional corporation employing physicians who perform medical services for or with the health maintenance organization), or (b) a group consisting of an entity whose principal business is the performance of management functions for other entities and the entities who are so managed and related entities, provided, in each case, that the common ownership requirements and other conditions of Section 414(m) of the Code and regulations thereunder are met.

1.8           “Annuity Starting Date” means the Valuation Date as of which benefits are calculated for purposes of payment, i.e., the first day of the first month for which an amount is payable as an annuity or, in the case of another form of benefit, the date on which all events have occurred that entitle the

 

  

- 2 -

  

 

Participant to such benefit, and not the actual payment date.

1.9           “Authorized Leave of Absence” means any absence authorized in writing by the Employer under its nondiscriminatory personnel practices, provided further that the Participant returns to employment within the period specified in the written instrument which authorizes the leave of absence.

1.10        “Beneficiary” means any person or persons or fiduciary designated by a Participant, or for a Participant in accordance with the terms hereof, to receive any benefits payable by reason of the death of a Participant, subject to applicable laws.  Such designation shall be made by executing and delivering to the Employer written notice thereof in such form as may be prescribed by the Employer at any time prior to the Participant's death, and may be revoked or changed by subsequent written notices delivered to the Employer form time to time prior to the Participant’s death.  If the Participant shall have failed to make such a designation, or if no designated Beneficiaries shall survive the Participant, then the Beneficiary shall be  (i) the Participant’s Spouse, or (ii) if no Spouse survives the Participant, the Participant’s children, or (iii) if neither a Spouse nor any children survive the Participant, the Participant’s estate.  Where appropriate the term “Beneficiary” shall also refer to an alternate payee under a QDRO.  Solely for purposes of the definition of “Beneficiary,” the term “Spouse” shall include a same-sex spouse to whom the Participant is legally married under applicable state law.

1.11        “Benefit Finance Committee” means the persons appointed as such by the Company in accordance with the provisions of, and who have the duties described in, Section 13.1.

1.11A     “Catch-up Contribution Agreement” means the agreement by which a Catch-up Eligible Participant agrees to defer receipt of Pay in consideration for the Employer’s agreement to make Catch-up Contributions in accordance with the terms of the Plan.

1.11B     “Catch-up Contributions” means the amount contributed to the Plan pursuant to a Catch-up Eligible Participant’s Catch-up Contribution Agreement a) on a pre-tax basis to his or her Deferral Account or b) on an after-tax basis to his or her Roth Account.

1.11C     “Catch-up Eligible Participant” means an Active Participant who has or will have attained age 50 before the close of the Plan Year.

1.12        “Change in Control” means the happening of any of the following:

	 	
(i)

	
When any “person” as defined in Section 3(a)(9) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and as used in Sections 13(d) and 14(d) thereof, including a “group” as defined in Section 13(d) of the Exchange Act but excluding Parent and any Subsidiary thereof and any employee benefit plan sponsored or maintained by Parent or any Subsidiary (including any trustee of such plan acting as trustee), directly or indirectly, becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act, as amended from time to time), of securities of Parent representing 20 percent or

 

  

- 3 -

  

 

	 	
 

	
more of the combined voting power of Parent’s then outstanding securities;

 

	 	
(ii)

	
When, during any period of 24 consecutive months the individuals who, at the beginning of such period, constitute the Board (the “Incumbent Directors”) cease for any reason other than death to constitute at least a majority thereof, provided that a director who was not a director at the beginning of such 24-month period shall be deemed to have satisfied such 24-month requirement (and be an Incumbent Director) if such director was elected by, or on the recommendation of or with the approval of, at least two-thirds of the directors who then qualified as Incumbent Directors either actually (because they were directors at the beginning of such 24-month period) or by prior operation of this subsection (ii); or

	 	
(iii)

	
The occurrence of a transaction requiring stockholder approval for the acquisition of Parent by an entity other than Parent or a Subsidiary through purchase of assets, or by merger, or otherwise.

1.13        “Code” means the Internal Revenue Code of 1986, as amended.

1.14        "Company” means Aetna Inc., formerly known as Aetna U.S. Healthcare, Inc., or any successor by merger, consolidation, purchase or otherwise.

1.15        “Compensation Deferral Agreement” means the agreement by which an Active Participant agrees to defer receipt of Pay in consideration for the Employer's agreement to make Deferral Contributions in accordance with the terms of the Plan.

1.16        “Deferral Account” means the subaccount established to record the Participant's Deferral Contributions, Catch-up Contributions, and the earnings thereon.

1.17        “Deferral Contributions” means the amount contributed to the Plan on a pre-tax basis pursuant to an Active Participant's Compensation Deferral Agreement in accordance with Section 3.1.  Notwithstanding the foregoing, unless it is specifically stated otherwise or the context requires otherwise, Designated Roth Contributions will be treated as Deferral Contributions.

1.18        “Deferral Contribution Rate” means that percentage of a Participant's Pay designated as a Deferral Contribution in a Compensation Deferral Agreement in accordance with Section 3.1.

1.18A     “Designated Roth Contributions” means the amount contributed to the Plan on an after-tax basis pursuant to an Active Participant’s Compensation Deferral Agreement in

 

  

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accordance with Section 3.1B.  This term is intended to comply with the definition of “designated Roth contribution” in Code § 402A(c)(1).

1.19        “Disability” means a physical or mental condition that meets both of the following conditions: (a) in the opinion of a licensed physician appointed by the Plan Administrator the disability is believed to be permanent and to render the Participant unfit to perform the duties for which the Participant is trained or that are of equal dignity and status, and (b) the disability results in the Participant receiving disability benefits under either (i) the Federal Social Security Act or (ii) the long-term disability plan sponsored by the Employer.

1.20        “Discretionary Contributions” means the amount, if any, contributed to the Plan on behalf of a Participant as a Discretionary Contribution pursuant to Section 3.5(b) and/or Section 3.6(d).

1.21        “Discretionary Contribution Account” means the subaccount established to record the Participant’s Discretionary Contribution and the earnings thereon.

 

 

1.22        “Earnings or Profits” means the current or accumulated earnings or profits of the Employer determined by the Employer in accordance with generally accepted accounting principles.

1.23        “Effective Date” means the date as of which the Company initially adopted the Plan and executed the Trust:  January 1, 2013.

1.24        “Eligible Employee” means any Employee employed by an Employer other than (a) an Employee whose employment is governed by the terms of a collective bargaining agreement between employee representatives (within the meaning of Section 7701(a)(46) of the Code) and an Employer if such collective bargaining agreement does not specifically provide for participation in the Plan; (b) a “leased employee,” as such term is defined under Section 414(n) of the Code; (c) an Employee who is a nonresident alien (within the meaning of Section 7701(b) of the Code) with no earned income (within the meaning of Section 911(d)(2) of the Code) from an Employer or Affiliate that constitutes income from sources within the United States (within the meaning of Section 861(a)(3) of the Code), unless (i) a certificate of coverage has been filed with the Social Security Administration on behalf of the Employee under Section 233 of the Social Security Act, or (ii) the employee has been designated as an Eligible Employee by the Employer; (d) an individual who is designated, or otherwise determined, to be an independent contractor but who is ultimately determined to be an employee pursuant to the Code or any other applicable law, or (e) an Employee designated by the Company or a Participating Company as a benefits ineligible Employee.

 

1.25        “Employee” means any person who is employed by an Employer or an Affiliate.  The term Employee shall not include any individual the Employer or an Affiliate designates as, or otherwise determines to be, an independent contractor.  However, the term Employee shall include “leased employees” within the meaning of Section 414(n) of the Code.   Notwithstanding the foregoing, if leased employees constitute less than twenty percent (20%)

 

  

- 5 -

  

 

of the nonhighly compensated work force of the Employer and all Affiliates (within the meaning of Section 414 (n)(5)(C)(ii) of the Code), the term Employee shall not include those leased employees covered by a plan described in Section 414(n)(5) of the Code.  The term Employee shall not include agents, general agents, contract general agents, career agents or brokers.

           1.26         “Employer” means any Participating Company that adopts the Plan.

           1.27         “Employment Commencement Date” means the first day for which an Employee is entitled to be credited with an Hour of Service.  “Reemployment Commencement Date” means the first day for which an Employee is entitled to be credited with an Hour of Service subsequent to the Employee's Termination from Service.

           1.28         “Fiscal Year” means the Employer's fiscal year for Federal Income Tax purposes.

           1.29         “Group Annuity Contract” means a contract or contracts of the Insurer that provides the accumulation facilities under Investment Funds maintained by the Insurer and that also provide facilities for distribution of Account Value upon a Participant's Termination from Service.

1.30        “Highly Compensated Employee” means, effective for Plan Years beginning on or after January 1, 2013:  (a) any Employee who, during the “look-back year” received compensation (as defined in Section 415(c)(3) of the Code) in excess of $115,000 (as adjusted pursuant to section 415(d) of the Code); and (b) any Employee who is a 5-percent owner (as described in Section 17.2(b)(iii) hereof) at any time during the “look-back year” or the “determination year.”  For purposes of this Section 1.30 the “determination year” shall be the Plan Year and the “look-back year” shall be the twelve-month period immediately preceding the “determination year,” or, if the Company elects, the calendar year ending with or within the determination year.  The determination of who is a “highly compensated employee” will be made in accordance with Section 414(q) of the Code and applicable regulations, rulings and procedures and permitted elections thereunder.

1.31        “Hour of Service” means:

	 	
(a)

	
each hour for which an Employee is paid, or entitled to payment, for the performance of duties for the Employer or an Affiliate.  These hours will be credited to the Employee for the computation period in which the duties are performed; and

	 	
(b)

	
each hour for which an Employee is paid, or entitled to payment, by the Employer or an Affiliate on account of a period of time during which no duties are performed (irrespective of whether the employment relationship has terminated) due to vacation, holiday, illness, incapacity (including disability),

 

  

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layoff, jury duty, military duty or an Authorized Leave of Absence, but not in excess of five hundred and one (501) hours for any continuous period of nonworking time for which the Participant is compensated.  Hours under this Section will be calculated and credited pursuant to Section 2530.200b-2 of the Department of Labor Regulations which are incorporated herein by reference; and

 

	
  

	
(c)

	
each hour for which back pay, irrespective of mitigation of damages, is either awarded or agreed to by the Employer or an Affiliate with respect to an Employee.  The same hours of service will not be credited both under subsection (a) or subsection (b), as the case may be, and under subsection (c).  Hours credited under this subsection will be credited to the Employee for the computation period to which the award or agreement pertains, rather than the computation period in which the award, agreement, or payment is made; and

	
  

	
(d)

	
Hours of Service will be credited for employment with an Affiliate provided, however, if an Employee has previously been credited with an Hour of Service for any hour of work with the Company or a Participating Company the Employee shall not be entitled to be credited for a second hour for the same period based on employment with an Affiliate.

	
  

	
(e)

	
Hours of Service shall not be credited for any hours for which an Employee is directly or indirectly paid under a plan maintained solely for the purpose of complying with applicable workmen's compensation, unemployment com­pensation or disability laws.

	
  

	
(f)

	
Hours of Service shall not be credited for payments which were made solely to reimburse an Employee for medical or medically related expenses incurred by the Employee, nor for extra pay for any period for which Hours have previously been credited, such as extra pay in lieu of vacation.

	
  

	
(g)

	
For purposes of determining Hours of Service, the following guidelines shall apply:

	
  

	
(1)

	
Notwithstanding anything in this Plan to the contrary, an Employee shall be credited with Hours of Service if so required by any federal law; the nature and extent of such credit shall be determined under such law.

	
  

	
(2)

	
Employees compensated on other than an hourly basis and for whom hours are not required to be counted and recorded by any other federal law, such as the Fair Labor Standards Act, shall be credited with forty-five (45) Hours of Service per week for any week during which the Employee is credited with one (1) Hour of Service.

 

  

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(3)

	
When necessary, Hours of Service completed prior to January 1, 1976 shall be determined from such records as an Employer has maintained in the past, making reasonable approximations where necessary.  If these records are insuf­ficient to make an approximation, a reasonable estimate of Hours of Service to be credited will be made.

1.32        “Incentive Contributions” means the amounts contributed by the Employer in accordance with Section 3.6(a).

1.33        “Incentive Contribution Account” means the Participant's subaccount with respect to the Incentive Contributions made pursuant to Section 3.6(a) and earnings thereon.

1.34        “Insurer” means Aetna Life Insurance Company or such other legal reserve life insurance company with which the Trustee enters into a Group Annuity Contract or other contract.

1.35        “Investment Fund” means the Stock Account and such other investments as are made available for the investment of the Participants’ Accounts in accordance with the rules of Article V, including, without limitation, common or collective investment funds managed by a bank or registered investment advisor, and including an investment option under which an individual brokerage account is established for an electing Participant that permits the Participant to select individual stocks, corporate and government bonds and mutual funds.  Investment Fund shall not include (a) a direct interest in real property, leaseholds or mineral interests or (b) securities which are not purchased on a United States Exchange or where evidence of ownership is held by a custodian outside of the United States.  As set forth in Section 5.7, the Stock Account cannot be changed or removed by the Benefit Finance Committee, and can only be changed or removed by a Plan amendment.

1.36        “Limitation Year” means the calendar year.

1.37        “Matched Deferral Contribution” means a Deferral Contribution or portion thereof for which a corresponding Incentive Contribution is made on behalf of the Participant.

1.38        “Net Income” means the Employer's net profit for the current fiscal year, as determined by the Employer in accordance with generally accepted accounting principles and without deduction for contributions under the Plan.

1.39        “Nonhighly Compensated Employee” means an Employee who is not a Highly Compensated Employee.

1.40        “Normal Retirement Age” means a Participant's sixty-fifth (65th) birthday.

1.41        “Normal Retirement Date” means the first day of the month coinciding with or next following the Participant's attainment of Normal Retirement Age.

 

  

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1.42        “Part Time Employee” means an Employee who is scheduled to work fewer than 20 hours per week.

1.43        “Participant” means an Eligible Employee who satisfies the eligibility requirements under Article II and who is participating in the Plan in accordance with its provisions (whether or not such Eligible Employee elects to make Deferral Contributions), or a former Eligible Employee who participated in the Plan and who has not yet received a full distribution of his or her Account as provided in Article VIII.

1.44        “Participating Company” means any Affiliate which has adopted the Plan and Trust in accordance with the terms and conditions set forth herein.  A Participating Company may adopt this Plan with respect to less than all of its otherwise eligible employees.  The Participating Companies are listed in Attachment II to this Plan.

1.45        “Pay” means the base salary or base wages, as applicable, paid to an Active Participant by the Employer during a Plan Year (or any portion thereof) for personal services rendered, plus any performance bonus, wage incentive, shift differential, area differential and overtime, including payments made under the Management Incentive Plan which are paid at the time awarded (rather than pursuant to a deferral agreement).  Pay shall be determined as if no elective salary reduction had been made pursuant to Sections 125 (including amounts not available to a Participant in cash in lieu of group health coverage because the Participant is unable to certify that he or she has other health coverage), 132(f) and 401(k) of the Code.

 

Pay shall not include:

 

	 	
(1) 

	
payments under any stock option plan or similar equity program;

 

	
  

	
(2)

	
compensation paid for service performed as an agent, career agent, general agent, contract general agent or broker;

	 	
(3) 

	
payments made for unused paid time off;

	
  

	
(4)

	
any personal commissions paid to employees for the sale of any product of a business unit of the Employer including life insurance commissions, mutual fund commissions, variable annuity commissions, group insurance plan commissions, Aetna health plan commissions, auto insurance commissions, homeowner's insurance commissions and casualty insurance commissions;

	
  

	
(5)

	
sign-on bonuses or any other payment made upon acceptance of employment with the Employer,

	 	
(6) 

	
any noncash compensation;

 

  

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(7)

	
severance or salary continuation payments or benefits, except salary continuation benefits not to exceed 13 weeks (generally 9 weeks for an Employee whose "Commencement Date", as defined in the Aetna Inc. Job Elimination Benefits Plan, is on or after January 1, 2003);

	 	
(8)

	
lump sum vacation payments;

 

	 	
(9) 

	
transfer or relocation payments;

	 	
(10)

	
travel and entertainment expenses;

	 	
(11)

	
tuition reimbursement;

	 	
(12)

	
payments under long term compensation programs;

 

	 	
(13)

	
any stay or retention bonus; and

	 	
(14)

	
any bonus which is paid pursuant to a deferral agreement or program;

Notwithstanding any other provision of the Plan to the contrary, effective January 1, 2013, the annual Pay of each Active Participant taken into account under the Plan for any Plan Year shall not exceed two hundred and fifty five thousand dollars ($255,000), as Adjusted in accordance with Section 401(a)(17)(B) of the Internal Revenue Code to reflect increases in the cost of living, except that with respect to a Short Plan Year, annual Pay shall not exceed two hundred and fifty five thousand dollars ($255,000), as Adjusted in accordance with Section 401(a)(17)(B) of the Internal Revenue Code to reflect increases in the cost of living, multiplied by a fraction, the numerator of which is the number of months in the Short Plan Year and the denominator of which is twelve (12).  In the case of any Plan Year that does not coincide with the calendar year, the annual compensation limitation used for purposes of calculating annual Pay shall be the limitation applicable to the calendar year in which the Plan Year begins.

1.46        “Period of Severance” means a period beginning on the Termination from Service Date and ending on the Employee's Reemployment Commencement Date.  In the case of an Employee who would have normally been scheduled to work during unpaid absence incident to the pregnancy of or birth or adoption of a child by or to such Employee and the caring for such child immediately thereafter, then for purposes of calculating a Period of Severance, the Employee's Termination from Service Date shall be postponed for one year beyond the date which would otherwise be provided under Section 1.58, but only to the extent that credit for such unpaid absence has not already been given as an Authorized Leave of Absence.

 1.47       “Plan” means the Aetna Affiliate 401(k) Plan as set forth herein, including any amendments hereto.  This Plan is intended to be a profit sharing plan with a feature satisfying

 

  

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the requirements of Section 401(k) of the Code.  Except to the extent otherwise provided, the terms of the Plan in effect as of a Participant's Termination from Service Date will be applicable to such Participant.

1.48        “Plan Administrator” means the Company.

1.49        “Plan Year” means the twelve-(12) month period beginning on each January 1 and ending on the next subsequent December 31.

All calculations and determinations under the Plan that are based on a Plan Year shall, with respect to such calculations and determinations for a Short Plan Year, be made in the manner required by the Code.

1.50        “Rollover Account” means the subaccount established to record an Eligible Employee's Rollover Contributions and earnings thereon.

1.51        “Rollover Contributions” means the amount contributed to the Plan as a rollover contribution in accordance with Section 3.8.

1.51A     “Roth Account” means the subaccount established to record the Participant’s Designated Roth Contributions, after-tax Catch-up Contributions, applicable Rollover Contributions and the earnings thereon.

1.52        “Section 414 Compensation” means for any Participant, the Participant's wages within the meaning of Section 3401(a) of the Code and all other payments of compensation for which the Employer is required to furnish the Participant a written statement under Section 6041(d), 6051(a)(3), and 6052 of the Code, i.e., a Form W-2, but determined without regard to any rules that limit the remuneration included in wages based on the nature or location of the employment or the services performed (such as the exception for agricultural labor in Section 3401(a)(2) of the Code), plus any amounts paid pursuant to any salary reduction agreement for the year in question under an arrangement referred to in Sections 125, 403(b) or 401(k) of the Code.  Section 414 Compensation shall be measured based on compensation actually paid or made available to a Participant during the measuring period and not on an accrued basis.  Section 414 Compensation in excess of two hundred and fifty five thousand dollars ($255,000), as Adjusted, shall not be taken into account under the Plan.  The annual compensation limitation used for purposes of calculating Section 414 Compensation shall be the limitation applicable to the calendar year in which the Plan Year begins.

1.53        “Spouse” means a Participant's legal spouse determined under applicable law, including the Defense of Marriage Act of 1996.

1.54        “Stable Value Option” means an accumulation facility under the Group Annuity Contract that provides for investment of assets at a stipulated rate of interest for a fixed period.

 

  

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1.55        “Stock” means the common shares of Aetna Inc.

1.56        “Stock Account” means any account established and maintained for the purpose of investing in Stock, as further described in Section 5.6.

1.56A     “Supplemental Employer Contribution” means the amount contributed by the Employer in accordance with Section 3.15.

1.56B     “Supplemental Employer Contribution Account” means the Participant's subaccount with respect to Supplemental Employer Contributions made pursuant to Section 3.15 and earnings thereon.

1.56C     “Target Retirement Fund” means each of a group of funds offered as investments under the Plan, providing a mix of stocks, bonds, and cash designed for Employees who will reach the Social Security “full retirement age”, as set out in the Social Security Administration’s full retirement age schedule, in or around a particular year.

1.57        “Termination from Service” means, for any Employee, the termination of his or her employment upon the occurrence of his or her Termination from Service Date.

 

1.58        “Termination from Service Date” means the date which is the earlier of (i) the earliest of the date an Employee quits, retires, dies or is discharged from employment with the Employer; or (ii) the first anniversary of the first date of a period in which the Employee remains absent from service (with or without pay) for any reason other than quit, retirement, death or discharge, such as vacation, holiday, sickness, leave of absence or layoff.  Notwithstanding the preceding, a Termination from Service Date shall not occur earlier than the last day of any (a) Authorized Leave of Absence, (b) period in which an Employee receives long-term disability benefits from a plan maintained by the Employer, or, if earlier, the commencement of the distribution of benefits under this Plan; provided, however, that a Termination from Service Date shall occur on the date such Participant’s employment with the Employer is terminated pursuant to Company policy, or (c) period in which the Employee receives periodic salary continuation benefits not to exceed 13 weeks (generally 9 weeks for an Employee whose "Commencement Date", as defined in the Aetna Inc. Job Elimination Benefits Plan, is on or after January 1, 2003).  See also Section 16.4(b).

1.59        “Trust” means the trust agreement as set forth herein and adopted by the Company, which is established to hold and invest contributions made under the Plan.

1.60        “Trustee” means such person or persons or corporation appointed and acting as Trustee or successor Trustee under the Trust.

1.61        “Trust Fund” means all assets of any kind or nature, including all property and income, held by the Trustee under the Trust.

 

  

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1.62        “Unallocated Contribution Account” means the account established and maintained by the Plan Administrator for recording Incentive Contributions held by the Trustee before allocation in accordance with the provisions of Article VI.

1.63        “Unmatched Deferral Contributions” means a Deferral Contribution or portion thereof for which no corresponding Incentive Contribution is made.

1.64        “Valuation Date” means the date used to value the Plan's assets.  Generally, each day of the Plan Year shall be a Valuation Date; however, the Plan Administrator in its sole discretion may designate specific Valuation Dates for specific purposes.

1.65        “Vesting Service” means the period or periods of an Employee's employment considered in the determination of vesting.

 

	
  

	
(a)

	
An Employee's initial period of Vesting Service shall begin on the Employee's Employment Commencement Date and end on the next following Termination from Service Date. If an Employee has a Termination from Service and is subsequently reemployed, a new period of Vesting Service shall begin on the Employee's Reemployment Commencement Date and end on the next subsequent Termination from Service Date.  If, however, an Employee has a Termination from Service and again performs an Hour of Service as defined in Section 1.33(a) within 12 months from the most recent Termination from Service Date, such Termination from Service shall be disregarded, and the Employee shall be credited with all Vesting Service from his or her most recent Employment Commencement Date or Reemployment Commencement Date.

 

An Employee shall be credited with a number of “Years of Vesting Service” equal to the Employee's periods of Vesting Service expressed as the number of whole years within such period or periods.  In determining the number of whole Years of Vesting Service, all periods of Vesting Service shall be aggregated and counted on the basis that 12 months of Vesting Service or 365 days of Vesting Service are equal to one whole Year of Vesting Service.

 

	
  

	
(b)

	
A period of Vesting Service shall include a period prior to the date the Employer by which an Employee is employed became or becomes an Affiliate, but only to the extent specifically set forth in Attachment I hereto.

	
  

	
(c)

	
In the case of an Employee who leaves employment to enter service with the armed forces of the United States, Service shall include the period of such military service, provided that the Employee resumes employment

 

  

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with the Employer or an Affiliate within the period during which such re-employment rights are protected by applicable law.  The provisions of this Section 1.65 shall be construed in accordance with, and to be coextensive with, the provisions of Section 414(u) of the Code.

 

1.66        “Voluntary Contributions” means the amount of a Participant's taxable annual Pay contributed to the Plan in accordance with Section 3.9.

1.67        “Voluntary Contribution Account” means the subaccount established and maintained by the Plan Administrator for recording the Participant's Voluntary Contributions and earnings thereon.

 

CONSTRUCTION

The masculine gender, where appearing in the Plan, shall be deemed to include the feminine gender, unless the context clearly indicates to the contrary.  Where appropriate, words used in the singular include the plural and words used in the plural include the singular.  The words “hereof,” “herein,” “hereunder” and other similar compounds of the word “here” shall mean and refer to this entire Plan, not to any particular provision or section.

 

  

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ARTICLE II - PARTICIPATION IN THE PLAN

 

2.1           Eligible Employee. Each Eligible Employee shall become an Active Participant on the later of (i) January 1, 2013, or (2) his or her Employment Commencement Date.

2.2           Reemployment.  An Employee who is reemployed by an Employer shall become an Active Participant in accordance with the provisions of Section 2.1.

 

  

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ARTICLE III - CONTRIBUTIONS

 

3.1          Rate of Deferral Contributions.

	 	
(a)  

	
Subject to the provisions of this Article III, an Active Participant may enter into a Compensation Deferral Agreement to have the Employer make contributions to the Deferral Account on the Active Participant’s behalf as of each payroll period, in accordance with Section 401(k) of the Code.

	 	
(b)  

	
Active Participants who are Highly Compensated Employees may elect Deferral Contributions of up to twenty percent (20%), but only with respect to the Active Participants’ Pay that is otherwise payable after the date of such election in accordance with applicable Plan procedures.

	 	
(c)  

	
Active Participants who are Nonhighly Compensated Employees may make Deferral Contributions pursuant to (a) above at a rate of between one percent (1%) and forty percent (40%), in whole percentages, of the Active Participant's Pay.

	 	
(d)  

	
Notwithstanding anything herein to the contrary, former participants of the Prodigy Health Group, Inc. 401(k) Savings Plan who become Active Participants on January 1, 2013, will have their pretax contribution election in the Prodigy Health Group, Inc. 401(k) Savings Plan automatically transferred to the Plan and such elections will be effective on the Effective Date, subject, however to the provisions of Section 3.1A(a).

3.1A       Automatic Deferral Contributions.

	
  

	
(a)

	
Notwithstanding anything to the contrary in this Article III, Eligible Employees who become Active Participants and who have not made an affirmative election with respect to Deferral Contributions as set out in the regulations issued under Section 401(k)(13) (including an affirmative election to make no Deferral Contributions or an affirmative election to have Deferral Contributions made in a different amount)) shall be deemed to have entered into a Compensation Deferral Agreement to have the Employer make contributions to the Deferral Account on the Participant’s behalf as of each payroll period, in accordance with Section 401(k) of the Code, at the rate of 3%.  Such Compensation Deferral Agreement shall be deemed entered into upon the commencement of the second pay period following date he or she becomes an Eligible Employee or if that is not feasible the next pay period thereafter that is feasible, provided however that such date shall be no later than the earlier of (A) the pay date for the second pay period that begins after notice is

 

  

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provided pursuant to (b)(ii) below or (B) the first pay period that occurs at least 30 days after such notice is provided or January 4, 2013.  Notwithstanding anything herein to the contrary, former participants of the Prodigy Health Group, Inc. 401(k) Savings Plan who become Active Participants on January 1, 2013, and who have made an affirmative election with respect to Deferral Contributions, but such election is less than 3%, shall be deemed to have entered into a Compensation Deferral Agreement to have the Employer make contributions to the Deferral Account on the Participant’s behalf as of each payroll period, in accordance with Section 401(k) of the Code, at the rate of 3%.

 

	
  

	
(b)

	
An Active Participant described in subsection (a) above shall have the right, and shall be given a reasonable period of time prior to the commencement of Deferral Contributions of such right (i) to elect not to have the Employer make Deferral Contributions on the Participant’s behalf, or (ii) to enter into a Compensation Deferral Agreement to have the Employer make Deferral Contributions on the Participant’s behalf at a rate other than 3% that complies with Section 3.1 of the Plan.  If such election is made prior to the beginning of the first pay period with respect to which such Deferral Contributions would be withheld, then the election not to make Deferral Contributions shall be effective the beginning of such first pay period.  If such election is received thereafter, it will be effective in the same manner as an election pursuant to Section 3.3 of the Plan; provided however that a Participant described in subsection (a)(ii) may, within sixty (60) days after the first Deferral Contribution is made pursuant to subsection (a)(ii), request that Deferral Contributions cease and any Deferral Contributions made pursuant to subsection (a)(ii) be refunded to the Participant (subject to adjustment for earnings or losses), as soon as reasonably practicable following the receipt of the Participant’s request, in accordance with Section 414(w)(2)(B) of the Code.

	
  

	
(c)

	
Under no circumstances shall an Automatic Deferral Contribution be treated as a Designated Roth Contribution.

	
  

	
(d)

	
Any Active Participant who (A) was deemed to have elected a 3% Deferral Contribution pursuant to Section 3.1A(a)(ii) and (B) did not thereafter make an affirmative election pursuant to Section 3.1A(b)(ii) shall be deemed to have increased the deemed Deferral Contribution election by 1% on the pay period commencing after each anniversary of the effective date set forth in the last sentence of Section 3.1A(a)(ii).  Such 1% increases shall continue until the Participant reaches a 6% deemed Deferral Contribution election percentage or, if earlier, until the Participant makes an affirmative election with respect to Deferral Contributions as set out in the regulations issued under Section 401(k)(13) (including an affirmative election to make no Deferral Contributions or an affirmative election to have Deferral Contributions made in a different amount).  Each Active Participant described in this subsection (d) shall have the right, and shall be given written notice a reasonable period of time prior to the

 

  

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beginning of each Plan Year of such right, (i) to elect not to have the Employer make Deferral Contributions on the Participant’s behalf, or (ii) to enter into a Compensation Deferral Agreement to have the Employer make Deferral Contributions on the Participant’s behalf at a rate other than the rate specified in this subsection (d) that complies with Section 3.1 of the Plan, in which case such action will be effective in the same manner as an election pursuant to Section 3.3 of the Plan.

 

	
  

	
(e)

	
Deferral Contributions made pursuant to Section 3.1A of the Plan will be reduced or stopped to meet the limitations under Code Sections 401(a)(17), 402(g) and 415 and to satisfy a suspension period required after a hardship distribution.

	
  

	
(f)

	
If an Active Participant who is automatically enrolled ceased to be an Active Participant and then again becomes an Active Participant with the Employer, as an Eligible Employee, such Active Participant will be automatically reenrolled in the Plan as follows:

	
  

	
(i)

	
If such Active Participant ceased to be an Active Participant for an entire Plan Year and does not, upon return to employment, either make an affirmative election to contribute Deferral Contributions to the Plan or affirmatively elect not to contribute Deferral Contributions to the Plan, such Active Participant shall be automatically enrolled in the Plan in accordance with the provisions of Sections 3.1A(a) and (b).

 

	
  

	
(ii)

	
If such Active Participant did not cease to be an Active Participant for an entire Plan Year and does not, upon return either make an affirmative election to contribute Deferral Contributions to the Plan or affirmatively elect not to contribute Deferral Contributions to the Plan, such Active Participant shall be deemed to have entered into a Compensation Deferral Agreement to have the Employer make contributions to the Deferral Account on the Active Participant's behalf at the same rate that was in effect on the date the Participant ceased to be an Active Participant, as adjusted for any automatic rate increase under Section 3.1A(d) above, as applicable; provided, however that such election shall be deemed entered into upon the commencement of the second pay period following date he or she becomes an Active Participant or if that is not feasible the next pay period thereafter that is feasible, provided however that such date shall be no later than the earlier of: (A) the pay date for the second pay period that begins after notice is provided pursuant to Section 3.1A(b) above or (B) the first pay period that occurs at least 30 days after such notice is provided.

  

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3.1B       Designated Roth Contributions

	
  

	
(a)

	
Subject to the provisions of this Article III, an Active Participant may enter into a Compensation Deferral Agreement to have the Employer make Designated Roth Contributions on the Participant’s behalf as of each payroll period, in accordance with Sections 402A and 401(k) of the Code.  A contribution made pursuant to this Article III shall not be treated as a Designated Roth Contribution unless affirmatively designated as such by the Participant. Designated Roth Contributions shall be treated by the Employer as includible in the Participant’s income at the time the Participant would have received that amount in cash if the Participant had not made a cash or deferred election.

	
  

	
(b)

	
Designated Roth Contributions, after-tax Catch-up Contributions, and the earnings thereon shall be accounted for in a separate subaccount within a Participant’s Account, which subaccount shall be designated as the Roth Account.

	
  

	
(c)

	
Unless it is specifically stated otherwise or the context requires otherwise, Designated Roth Contributions will be treated as Deferral Contributions for all purposes under the Plan, including, without limitation, non-discrimination testing, limits on Deferral Contributions, and calculation of Incentive Contributions.  In addition, unless specifically stated otherwise, loans, withdrawals and distributions shall be made pro-rata between a Participant’s Deferral Account and Roth Account, and any references to a Deferral Account shall be interpreted accordingly.

3.2          When Deferral Contributions are Made.  Deferral Contributions shall begin as soon as practicable after receipt of the Participant’s Compensation Deferral Agreement.

3.3          Changes in Deferral Contribution Rate.  Subject to the limitations of this Article III and the Compensation Deferral Agreement, an Active Participant's Deferral Contribution Rate shall remain in force for any period for which the Participant receives Pay until the Participant ceases to be an Active Participant or until the Participant gives notice to the Plan Administrator of the Participant election to change the Deferral Contribution Rate.  Any such change in the Deferral Contribution Rate shall become effective as soon as practicable but in no event later than the first day of the second month after the Participant files a change of election with the Plan Administrator.  A Highly Compensated Employee may not increase the Deferral Contribution Rate if the Plan Administrator determines that such increase may cause the Plan to violate the limitation in Section 3.5.

Effective January 1, 2002, notwithstanding anything above to the contrary, to the extent a Participant’s elected Deferral

 

  

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Contribution Rate would result in a cessation of Deferral Contributions prior to reaching the Deferral Limitation set forth in Section 3.5(d) because the dollar limit set forth in the Section of this Plan defining “Pay” has been reached, such Deferral Contribution Rate shall be deemed to be changed to a Deferral Contribution Rate which will permit Deferral Contributions up to the Deferral Limitation set forth in Section 3.5(d).

3.4          Discontinuance and Resumption of Deferral Contributions.  An Active Participant may at any time voluntarily suspend Deferral Contributions by giving the Plan Administrator notice to that effect.  An Active Participant who has been an Active Participant at all times after discontinuing Deferral Contributions shall be permitted to resume such contributions by notifying the Plan Administrator to that effect.  Any such discontinuance or resumption of Deferral Contributions shall become effective as soon as practicable and in no event later than the first day of the second month after the Active Participant files a change of election with the Plan Administrator.

3.5          Special Limitation on Deferral Contributions.

	 	
(a) 

	
Actual Deferral Percentage Test.  The Actual Deferral Percentage for Active Participants who are Highly Compensated Employees shall not exceed the prior Plan Year's Actual Deferral Percentage for Participants who were Nonhighly Compensated Employees during such prior Plan Year by the greater of:

 

	
  

	 	
(i)

	
one hundred and twenty-five percent (125%); or

 

	
  

	 	
(ii)

	
the lesser of two percentage points or two hundred percent (200%).

The Actual Deferral Percentage for Highly Compensated Employees entitled to make Deferral Contributions, as well as similar contributions to or under other plans maintained by the Employer or any Affiliate, shall be determined as if such contributions were made under a single arrangement.

Notwithstanding the above, if as provided under Code Section 401(k) the Company chooses to use current year data for determining the Actual Deferral Percentage for Nonhighly Compensated Employees for the 2013 Plan Year or any later Plan Year, the Company must continue to use current year data for all future Plan Years unless the election is changed in a manner approved by the Treasury Secretary.

With respect to the 2013 Plan Year and Plan Years thereafter, current year data will be used for purposes of determining the Average Deferral Percentage for Nonhighly Compensated Employees, unless a timely permissible election is made to use prior data.

 

  

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For purposes of determining the Actual Deferral Percentage for Nonhighly Compensated Employees for any Plan Year, the Company may elect, pursuant to Section 401(k)(3)(F), to disregard all Nonhighly Compensated Employees who are eligible to participate in the Plan, but who have not met the minimum age and service requirements of Section 410(a)(1)(A).

	
  

	
(b)

	
Discretionary Contributions.

	 	
(i)  

	
The Plan Administrator shall determine on a timely basis after the end of a Plan Year whether the Actual Deferral Percentage test results satisfy either of the tests described in Section 3.5(a).  In the event neither test is satisfied, or in the event neither of the tests described in Section 3.6(b) is satisfied, the Employer may elect to make a “qualified nonelective contribution” or a “qualified matching contribution” as defined in Treasury Regulation Section 1.401(k)-6, referred to herein as a Discretionary Contribution, and to use such Discretionary Contribution to pass such test.  Such Discretionary Contribution shall be made with respect to the Plan Year as to which such test was not satisfied.

	
  

	
(ii)

	
The Discretionary Contribution shall be allocated to the Discretionary Contribution Accounts of certain Nonhighly Compensated Employees in accordance with a method determined by the Plan Administrator, provided that such Discretionary Contribution shall comply with the requirements of applicable law, including Treasury Regulation Sections 1.40(k)-2(a)(6) and 1.401(m)-2(a)(5).

	
  

	
(iii)

	
Any Discretionary Contribution shall be made within the time period required by any applicable laws and regulations.  Any Discretionary Contribution allocated pursuant to this subsection (b) shall be immediately vested as if it was a Deferral Contribution, and shall be subject to the same withdrawal restrictions as earnings on Deferral Contributions.

	
  

	
(c)

	
Distribution of Excess Contributions. If the Employer does not elect to make Discretionary Contributions pursuant to paragraph (b) above for a Plan Year in which neither of the tests described in Section 3.5(a), as modified by Section 3.6(c), is satisfied, the Plan Administrator may reduce the Deferral Contributions of Active Participants who are Highly Compensated Employees and distribute any Excess Contributions, and any income allocable thereto, as provided below.  Excess Contributions

 

  

- 21 -

  

 

	
  

	
 

	
shall mean the excess of (i) the aggregate amount of the Deferral Contributions and any Incentive Contributions treated as Deferral Contributions for purposes of the Actual Deferral Percentage test actually paid over to the Trust Fund on behalf of Active Participants who are Highly Compensated Employees for the Plan Year, over (ii) the maximum amount of such contributions permitted under Section 3.5(a), as modified by Section 3.6(c), determined by reducing the amount of such contributions of Highly Compensated Employees in the order of their Deferral Percentages, beginning with the highest Deferral Percentage, until the applicable test is satisfied.

 

Distribution of Excess Contributions shall be accomplished by reducing the Deferral Contributions of Highly Compensated Employees, beginning with the highest contributions (determined by dollar amount) in the manner set forth in Section 401(k)(8)(C) of the Code, and continuing until the total amount of Excess Contributions has been distributed.  The reductions shall be made first from Unmatched Deferral Contributions and, thereafter, from Matched Deferral Contributions, with any corresponding Incentive Contributions forfeited and reallocated pursuant to Section 3.5(g).

Any amount so distributed shall be adjusted in accordance with applicable regulations for income or loss allocable thereto for the Plan Year in which Excess Contributions were made, but not for the gap period prior to distribution in the following Plan Year.  The income or loss allocable to Excess Contributions shall be determined in a reasonable manner consistent with the allocation of income or loss to a Participant’s Account pursuant to Article 6, or in accordance with the “alternative method” set forth in Treasury Regulation Section 1.401(k)-1(f)(4).  If such Participant’s Account is invested in more than one Investment Fund, such distribution shall be made pro rata, to the extent practicable, from all such Investment Funds.

Distribution of Excess Contributions for any Plan Year, as determined above, shall be made before the last day of the next Plan Year.

	
  

	
(d)

	
Deferral Limitation.  Notwithstanding any other provision of the Plan to the contrary, the amount to be contributed for any calendar year on behalf of any Active Participant pursuant to a Compensation Deferral Agreement, combined with elective deferrals, as defined in Section 402(g)(3) of the Code, to any plan of any Affiliate under Sections 401(k), 408(k) or 403(b) of the Code, shall not exceed the applicable dollar limitation contained in Section 402(g) of the Code, as Adjusted

 

  

- 22 -

  

 

	
  

	
 

	
(the “Deferral Limitation”), except to the extent permitted under Section 3.15 of the Plan and Section 414(v) of the Code, if applicable.

 

	 	
(e)

	
Excess Deferrals.

	
  

	
(i)

	
“Excess Deferrals” shall mean the amount by which a Participant's Deferral Contributions, combined with the aggregate amount of the Participant's elective deferrals, as defined in Section 402(g)(3) of the Code, to any other plans under Sections 401(k), 408(k) or 403(b) of the Code except as provided in Section 402(g) of the Code, whether sponsored by the Employer or by any other related or unrelated entity, exceed the Deferral Limitation.

	
  

	
(ii)

	
Notwithstanding any other provision of the Plan, Excess Deferrals, plus any income and minus any loss allocable thereto, may be distributed to Participants to whose Accounts Excess Deferrals were allocated for the preceding calendar year and who claim Excess Deferrals for such calendar year.  The Employer may make a distribution hereunder before the end of such calendar year to the extent that the Excess Deferrals for the calendar year result solely from Deferral Contributions under the Plan.  To the extent the preceding sentence does not apply, Excess Deferrals may be distributed by April 15 of the following calendar year.

	
  

	
(iii)

	
The Participant’s claim shall be in writing; shall be submitted to the Employer no later than April 1; shall specify the Participant’s Excess Deferrals for the preceding calendar year; and shall be accompanied by the Participant’s written statement that if such amounts are not distributed, the Participant’s Deferral Contributions, when added to elective deferrals under other plans as described in Sections 401(k), 408(k) or 403(b) of the Code, exceed the Deferral Limitation.  The Employer may deem a claim to have been made in the event that the Excess Deferrals result in a violation of Section 3.5(d) above.

	
  

	
(iv)

	
Any amount so distributed shall be adjusted in accordance with applicable regulations for income or loss allocable thereto for the Plan Year in which Excess Deferrals were made, but not for the gap period prior to distribution in the following Plan Year.  The income or loss allocable to Excess Deferrals shall be determined in a reasonable manner consistent with the allocation of income or loss to a Participant’s Account pursuant to Article 6, or in

 

  

- 23 -

  

 

	
  

	
 

	
accordance with the “alternative method” set forth in Treasury Regulation Section 1.402(g)-1(e)(5)(iii) and Treasury Regulation Section 1.401(k)-2(b)(2)(iv)(C).  If such Participant’s Account is invested in more than one Investment Fund, such distribution shall be made pro rata, to the extent practicable, from all such Investment Funds.

 

	
  

	
(f)

	
Authority to Limit Deferral Contributions.  If the Plan Administrator deems it necessary to satisfy one of the Actual Deferral Percentage tests, the Deferral Limitation, the deduction limitation of Section 404 or Section 415(c) of the Code, the Plan Administrator, either before the beginning of a Plan Year or at any time during a Plan Year, shall have the authority to limit the Deferral Contributions for any Active Participant for such Plan Year (or for any portion of such Plan Year remaining after the Plan Administrator exercises the authority granted by this subsection) to the extent necessary or appropriate to insure that the Plan satisfies any or all of such limitations for such Plan Year.

	 	
(g)  

	
Forfeiture of Incentive Contributions.  In the event of the return of any Excess Contributions or Excess Deferrals to an Active Participant, no Incentive Contribution shall be made with respect to such Excess Contributions or Excess Deferrals and, if a related Incentive Contribution is made before a determination of Excess Deferrals or Excess Contributions, such Incentive Contribution shall be forfeited as of the date of such return and shall be used to reduce the contributions to be made by the Employer for the Plan Year.

	
  

	
(h)

	
Compliance with Applicable Law.  All determinations and procedures with regard to the matters covered by this Section 3.6 shall be in accordance with Section 401(k)(3) of the Code and Treasury Regulation Sections 1.401(k)-1 through 1.401(k)-6, including the provisions requiring aggregate testing of plans that are permissively aggregated for the purpose of satisfying the requirements of Section 410(b) of the Code.  The provisions described in Section 3.1A are intended to continue to constitute an “eligible automatic contribution arrangement” as defined in Section 414(w) of the Code and the regulatory guidance issued thereunder and, in light of the Employer Contributions made under Section 3.6(a)(3), to constitute a “qualified automatic contribution arrangement” as defined in Section 401(k)(13) of the Code and the regulatory guidance issued thereunder.

3.6          Incentive Contributions.

	 	
(a)  

	
General.

 

  

- 24 -

  

 

	
  

	
(i)

	
The Employer may, in the sole discretion of the Company, make an Incentive Contribution each payroll period for each Active Participant who makes Deferral Contributions for the payroll period and who is employed for any day during the payroll period.  Incentive Contributions shall be made as soon as Deferral Contributions are made without any further waiting period.

	
  

	
(ii)

	
The Employer, in its discretion, may make Incentive Contributions on behalf of each Active Participant who meets the requirements of this Section 3.6 in an amount equal to the lesser of (A) a stated percentage of Deferred Contributions during a month (or payroll period) and (B) a stated cap expressed as a percentage of Pay during a month (or payroll period).  Such stated percentage and stated cap shall be:

 

Commencing January 1, 2013, and until a further announcement by the Employer:  (A) the stated percentage shall be fifty percent (50%) of the Active Participant’s Deferral Contributions during such month (or payroll period) and (B) the stated cap shall be six percent (6%) of the Active Participant’s Pay during such month (or payroll period).

 

	
  

	
(iv)

	
The Employer will make any Incentive Contributions to the Plan as of the end of each month or at such other intervals as established by the Employer.

	
  

	
(v)

	
At the end of each Plan Year, the Employer may make an additional Incentive Contribution to the Incentive Contribution Account of each Participant who (A) made Deferral Contributions during such Plan Year, (B) was eligible for Incentive Contributions under paragraph (a)(i) above during such Plan Year, and (C) is an Active Participant and has an Account balance on the last day of such Plan Year.

 

Such additional Incentive Contribution, if made, shall be in the amount, if any, necessary to make the Participant’s total Incentive Contributions for such Plan Year equal to the lesser of (A) fifty percent (50%) of the Participant’s Deferral Contributions during such Plan Year; or (B) six percent (6%) of the Participant’s Pay during the Plan Year, but excluding any Pay prior to the month in which the Participant became eligible for Incentive Contributions under paragraph (a)(i) above.

 

  

- 25 -

  

 

 

	
  

	
 

	

The figures referred to in the preceding sentence shall automatically change to be consistent with any changes made by the Company to the Incentive Contribution figures set forth in Section 3.6(a)(iii).

 

	
  

	
(b)

	
Actual Contribution Percentage Test.  The Actual Contribution Percentage for Active Participants who are Highly Compensated Employees shall not exceed the prior Plan Year's Actual Contribution Percentage for Participants who were Nonhighly Compensated Employees during such prior Plan Year by the greater of:

 

	
  

	
(i) 

	
one hundred and twenty-five percent (125%); or

 

	
  

	
(ii) 

	
the lesser of 2 percentage points or two hundred percent (200%).

          

	
  

	
 

	

The Actual Contribution Percentage for Highly Compensated Employees entitled to receive Incentive Contributions under the Plan, as well as similar contributions to or under other plans maintained by the Employer or any Affiliate, shall be determined as if such contributions were made under a single arrangement.

Notwithstanding the above, if as provided under Code Section 401(m) the Company chooses to use current year data for determining the Average Contribution Percentage for Nonhighly Compensated Employees for the 2012 Plan Year or any later Plan Year, the Company must continue to use current year data for all future Plan Years unless the election is changed in a manner approved by the Treasury Secretary.

With respect to the 2012 Plan Year and Plan Years thereafter, current year data will be used for purposes of determining the Average Contribution Percentage for Nonhighly Compensated Employees, unless a timely permissible election is made to use prior year data.

For purposes of determining the Average Contribution Percentage for Nonhighly Compensated Employees for any Plan Year, the Employer may elect, pursuant to Section 401(m)(5)(C), to disregard all Non Highly Compensated Employees who are eligible to participate in the Plan, but who have not met the minimum age and service requirements of Section 410(a)(1)(A).

 

	
  

	
(c)

	
Discretionary Contributions.

 

  

- 26 -

  

 

	 	
(i)  

	
The Plan Administrator shall determine on a timely basis after the end of a Plan Year whether the Actual Contribution Percentage test results satisfy either of the tests described in Section 3.6(b).  In the event neither test is satisfied, or in the event neither of the tests described in Section 3.5(a) is satisfied, the Employer may elect to make a “qualified nonelective contribution” or a “qualified matching contribution” as defined in Treasury Regulation Section 1.401(k)-6, referred to herein as a Discretionary Contribution, and to use such Discretionary Contribution to pass such test.  Such Discretionary Contribution shall be made with respect to the Plan Year as to which such test was not satisfied.

	 	
(ii)  

	
The Discretionary Contribution shall first be allocated to the Discretionary Contribution Accounts of certain Nonhighly Compensated Employees in accordance with a method determined by the Plan Administrator, provided that such Discretionary Contribution shall comply with the requirements of applicable law, including Treasury Regulation Sections 1.401(k)-2(a)(6) and 1.401(m)-2(a)(5).

	 	
(iii)  

	
Any Discretionary Contribution shall be made within the time period required by any applicable laws and regulations.  Any Discretionary Contribution allocated pursuant to this subsection (d) shall be immediately vested as if it was a Deferral Contribution, and shall be subject to the same withdrawal restrictions as earnings on Deferral Contributions.

	
  

	
(d)

	
Excess Aggregate Contributions.  If the Employer does not elect to make any Discretionary Contribu­tions pursuant to paragraph (d) above for a Plan Year in which neither of the tests described in Section 3.6(b), as modified by Section 3.6(c), is satisfied, the Plan Administrator may reduce the Incentive Contributions of Active Participants who are Highly Compensated Employees and distribute any Excess Aggregate Contributions, and income allocable thereto, as provided below.  Excess Aggregate Contributions shall mean the excess of (i) the aggregate amount for the Plan Year of Incentive Contributions and Deferral Contributions treated as Incentive Contributions for purposes of the Actual Contribution Percentage test which are actually paid over to the Trust Fund on behalf of the Active Participants who are Highly Compensated Employees for such Plan Year; over (ii) the maximum amount of such contributions permitted under Section 3.6(b), as modified by Section 3.6(c), determined by reducing the amount of such contributions for Highly Compensated Employees in order of their 

 

  

- 27 -

  

 

	
  

	
 

	
Contribution Percentages, beginning with the highest Contribution Percentage, until the applicable test is satisfied.

 

Distribution of Excess Aggregate Contributions shall be accomplished by reducing the Incentive Contributions of Highly Compensated Employees, beginning with the highest contributions (determined by dollar amount) in the manner set forth in Section 401(m)(6)(C) of the Code, and continuing until the total amount of Excess Aggregate Contributions has been distributed.

 

Any amount so distributed shall be adjusted in accordance with applicable regulations for income or loss allocable thereto for the Plan Year in which Excess Aggregate Contributions were made, but not for the gap period prior to distribution in the following Plan Year.  The income or loss allocable to Excess Aggregate Contributions shall be determined in a reasonable manner consistent with the allocation of income or loss to a Participant’s Account pursuant to Article 6, or in accordance with the “alternative method” set forth in Treasury Regulation Section 1.401(m)-1(e)(3).  If an Account from which such a distribution is to be made is invested in more than one Investment Fund, such distribution shall be made pro rata, to the extent practicable, from all such Investment Funds.

 

The Excess Aggregate Contributions for any Plan Year, as determined above, shall be distributed before the last day of the next Plan Year.

 

	
  

	
(e)

	
Deductibility of Contributions.  In no event shall the contributions by the Employer under this Article III, when combined with amounts contributed pursuant to any other provisions of the Plan and any other plan of the Employer qualified under Section 401(a) of the Code, exceed the amount deductible pursuant to Sections 404(a)(3)(A) or 404(a)(7) of the Code, or any future Code provision limiting deductions with respect to profit sharing plans.

	
  

	
(f)

	
Plan Administrator Authority to Monitor Testing.  The Plan Administrator shall monitor the Plan's compliance with the limitations of the Actual Deferral Percentage and Actual Contribution Percentage tests and other applicable limitations and shall have the power to take any and all steps it deems necessary or appropriate to ensure compliance with these limitations.

	
  

	
(g)

	
Compliance with Applicable Law. All determinations and procedures with regard to the matters covered by this Section 3.6 shall be in accordance with Section 401(k)(3) of the Code and Treasury Regulation Sections 1.401(m)-1 through 1.401(m)-6, including the provisions

 

  

- 28 -

  

 

	
  

	
 

	
requiring aggregate testing of plans that are permissively aggregated for the purpose of satisfying the requirements of Section 410(b) of the Code.

 

3.7           Time and Form of Incentive Contributions.  Incentive Contributions shall be made for each Plan Year within the time permitted by law.  Incentive Contributions may be made in Stock or cash at the Company’s discretion.  With respect to any Incentive Contributions made in Stock, the number of shares of Stock to be contributed shall be based on valuation procedures established by the Plan Administrator from time to time.

3.8           Rollover Contributions.

	 	
(a)  

	
An Active Participant may roll over to the Plan all or any portion of the property such Active Participant receives from (i) a plan qualified under Section 401(a) or 403(a) of the Code, (ii) an annuity contract described in Section 403(b) of the Code, (iii) an eligible plan under Section 457(b) of the Code which is maintained by a state, political subdivision or a state, or any agency or instrumentality of a state or political subdivision of a state, or (iv) an individual retirement account described in Section 408(a) or 408(b) of the Code that is eligible to be rolled over and would otherwise be includible in gross income, provided that:  (1) the rollover of such amounts to the Plan is permitted under the Code; (2) the rollover to the Plan is completed within the applicable time periods prescribed by the Code and subject to the applicable rules of the Code; and (3) such rollover consists only of cash. The Plan Administrator may require such information from a Participant desiring to make a rollover as it deems necessary or desirable to determine that the proposed rollover will meet the requirements of this Section 3.8.  Each Participant's Rollover Contributions and the earnings thereon will be accounted for separately.

	 	
(b)  

	
Notwithstanding (a) above, the Company may provide that an Employee who is actively employed by an acquired business specified by the Company on a date specified by the Company (i) is not required to be an Active Participant in order to make a Rollover Contribution, and (ii) may roll over an outstanding loan balance from a qualified plan identified by the Company as part of a direct rollover of his or her entire account balance in the event of an eligible rollover distribution from such plan, provided such rollover occurs in the time and manner prescribed by the Plan Administrator.

	 	
(c)  

	
Subject to the provisions of this Section 3.8, the Plan will accept

 

  

- 29 -

  

 

	 	
 

	
a rollover contribution to a Roth Account only if it is a direct rollover from another Roth account under an applicable retirement plan as described in § 402A(e)(1) and only to the extent the rollover is permitted under the rules of § 402(c).  Notwithstanding anything in this Section 3.8 to the contrary, an Active Participant may also elect to roll over amounts from his or her Voluntary Contribution Account or Rollover Account into his or her Roth Account, consistent with Code Section 402A(c)(4) and section 8.13 of the Plan.

 

3.9           Voluntary Contributions.

	
  

	
(a)

	
An Active Participant may contribute on an after-tax basis, as Voluntary Contributions to a Voluntary Contribution Account, amounts from one percent (1%) to five percent (5%) of Pay, in whole percentages, pursuant to a written payroll deduction election delivered to the Plan Administrator.  An Active Participant who is a Highly Compensated Employee is not permitted to contribute amounts on an after-tax basis to the Plan as Voluntary Contributions.

	
  

	
(b)

	
No Active Participant shall, as a condition of participation or continued participation, be required to make any Voluntary Contributions to this Plan.  No Voluntary Contributions shall be permitted from any Active Participant during any period when the Participant is absent from employment without pay or otherwise not receiving Pay.  In no event shall any Voluntary Contributions be matched with Incentive Contributions.

3.10        When Voluntary Contributions are Made.  Withholding of an Active Participant's Voluntary Contributions shall begin as soon as practicable after receipt of an election to withhold such amounts.

3.11        Changes in Voluntary Contribution Rate.  Subject to the limitations stated in Section 3.9, an Active Participant may increase or decrease the rate of Voluntary Contributions.  Such increase or decrease shall become effective as soon as practicable but in no event later than the first day of the second month after the Participant files a change of election with the Plan Administrator.  An Active Participant shall be permitted to change such rate or resume such contributions at any time upon notice to the Plan Administrator.

 

3.12        Discontinuance of Voluntary Contributions.  An Active Participant may at any time discontinue Voluntary Contributions.  Subject to Section 3.11, an Active Participant who discontinues Voluntary Contributions shall be permitted to resume such contributions upon notice to the Plan Administrator.  Any such discontinuance or resumption of Voluntary Contributions shall become effective as soon as practicable but in no event later than the first

 

 

  

- 30 -

  

 

day of the second month after the Active Participant files a change of election with the Plan Administrator.  Upon Termination from Service with an Employer, an Active Participant's Voluntary Contributions to the Plan shall automatically cease.

3.13         Catch-up Contributions.  A Catch-up Eligible Participant may enter into a Catch-up Contribution Agreement to have the Employer make Catch-up Contributions, subject to the limitations of Section 414(v) of the Code, a) on a pre-tax basis to his or her Deferral Account or b) on an after-tax basis as a Designated Roth Contribution to his or her Roth Account.  A Participant’s Catch-up Contributions may or may not constitute contributions which satisfy the requirements of Section 414(v) of the Code.  The circumstances affecting the status with respect to Section 414(v) of Catch-up Contributions made for any Plan Year will not be known until after the end of such Plan Year.

 

To the extent Catch-up Contributions made on behalf of a Catch-up Eligible Participant for a Plan Year satisfy the requirements of Section 414(v), (i) such Contributions shall not be taken into account for purposes of the provisions of the Plan implementing the required limitations of Sections 402(g)(1)(A) and 415 of the Code; and (ii) the Plan shall not be treated as failing to satisfy the provisions of the Plan implementing the requirements of Section 401(k)(3), 401(k)(11), 401(k)(12), 410(b) or 416 of the Code, as applicable, by reason of a Participant making such Catch-up Contributions.  To the extent Catch-up Contributions made on behalf of a Catch-up Eligible Participant for a Plan Year do not satisfy the requirements of Section 414(v) of the Code, such Catch-up Contributions shall be taken into account for purposes of the provisions of the Plan implementing the required limitations that would otherwise apply without reference to Section 414(v), including the limitations of Sections 401(k)(3), 401(k)(12), 402(g)(1)(A), 410(b), 415 and 416 of the Code.

Notwithstanding anything to the contrary herein, a Catch-up Eligible Participant who is a Highly Compensated Employee shall be deemed to have entered into a Catch-up Contribution Agreement for a Plan Year to the extent Catch-up Contributions would reduce any distribution of Excess Contributions to such Participant that would otherwise be made pursuant to Section 3.5(c) of the Plan.  Any Incentive Contributions made with respect to such Catch-up Contributions shall be forfeited.

 

3.14         Incentive Contributions Not Applicable to Catch-up Contributions.  In no event shall any Catch-up Contributions be matched with Incentive Contributions.  Notwithstanding the foregoing, to the extent it is determined that a Participant’s Catch-up Contributions for the Plan Year does not constitute a contribution that is the subject to Section 414(v) of the Code, but instead is recharacterized as a regular Deferral Contribution under the Plan, then such recharacterized contribution shall be taken into account for purposes of determining the amount of any additional Incentive Contribution to be made on behalf of such Participant pursuant to Section 3.6(a)(v).

 

3.15         Rate and Timing of Catch-up Contributions.  A Catch-up Eligible Participant’s Catch-up Contribution Agreement shall specify the total dollar amount of Catch-up Contributions that the Participant agrees to defer (subject to the limitations of Section

 

  

- 31 -

  

 

414(v) of the Code) for the Plan Year.  Catch-up Contributions shall begin as soon as practicable after receipt of the Participant’s Catch-up Contribution Agreement.  The total dollar amount specified in the Agreement shall be divided by the number of payroll periods remaining in the Plan Year to determine the amount of the contribution for each payroll period.

 

3.16         Changes to Catch-up Contribution Agreement.  The dollar amount specified in a Catch-up Eligible Participant’s Catch-up Contribution Agreement shall remain in force for any period for which the Participant receives Pay until the Participant ceases to be an Active Participant or until the effective date of the Participant’s election to change such dollar amount.  Any such change in the dollar amount elected pursuant to the Participant’s Catch-up Contribution Agreement shall become effective as soon as practicable but in no event later than the first day of the second month after the Participant files a change of election with the Plan Administrator.

 

3.17         Discontinuance and Resumption of Catch-up Contributions.  A Catch-up Eligible Participant may at any time during the Plan Year voluntarily suspend Catch-up Contributions by giving the Plan Administrator notice to that effect. An Active Participant who has been an Active Participant at all times after discontinuing Catch-up Contributions shall be permitted to resume such contributions by notifying the Plan Administrator to that effect.  Any such discontinuance or resumption of Catch-up Contributions shall become effective as soon as practicable and in no event later than the first day of the second month after the Active Participant files a change of election with the Plan Administrator.

 

3.18         Transfer to Trust Fund.  The Plan Administrator shall transfer to the Trust Fund the Deferral Contributions, Voluntary Contributions, and Catch-up Contributions of each Active Participant as soon as practicable, but in any event within the period required by applicable law and regulations.

 

3.19         Supplemental Employer Contributions.  The Employer, in the sole discretion of the Company, may make, but shall have no obligation to make, a Supplemental Employer Contribution to be allocated, in proportion to Pay for such Plan Year, among all Active Participants who a) are Active Participants on December 31 of such Plan Year and b) are not receiving long-term disability benefits as of December 31 of such Plan Year.   A Supplemental Employer Contribution for a Plan Year may be expressed as a uniform percentage of Pay for such Plan Year.  A Supplemental Employer Contribution, if it is made for a Plan Year, shall be made  in cash after the end of such Plan Year and prior to the last day for filing the Company’s income tax return including extensions.

 

 

  

- 32 -

  

 

ARTICLE IV - LIMITATIONS ON CONTRIBUTIONS

4.1           Return of Contributions.  All Employer contributions under the Plan are expressly conditioned upon the deductibility of such contributions under Section 404 of the Code.  Therefore, to the extent the deduction of a contribution is disallowed, such contribution shall be returned to the Employer within one (1) year after disallowance of the deduction.  In addition, if the Employer makes a contribution under a mistake of fact, such contribution shall be returned to the Employer within one (1) year after the payment of the contribution.

 

   The amount of any contribution that may be returned under this Section shall be equal to the excess of (a) the amount contributed over (b) the amount that would have been contributed had there not been a mistake in determining the amount of the allowable deduction or a mistake of fact.  Earnings attributable to the contribution to be returned may not be returned to the Employer, but losses attributable thereto must reduce the amount to be returned.  Furthermore, the amount to be returned for a disallowed deduction or a mistake of fact shall be limited to an amount such that no Participant's Account is reduced to less than the amount which would have been in the Account had the mistaken or nondeductible contribution not been made.

 

4.2           Compliance with Code Section 415.  Notwithstanding any Plan provisions to the contrary, the maximum “annual addition” that may be credited to a Participant’s Account for any limitation year shall not exceed the limitations determined in accordance with Code Section 415 (as amended from time to time, including, without limitation, P.L. 108-218, the Pension Funding Equity Act of 2004, P.L. 109-280, the Pension Protection Act of 2006, and P.L. 110-458, the Worker Retiree, and the Employer Recover Act of 2008) and the regulations and guidance issued thereunder, which are hereby incorporated by reference, including, without limitation, the following definitions as set out therein:

	 	
(a)

	
The term “compensation” for purposes of compliance with the limitations under Code Section 415 shall include the following:

 

	 	
(i)

	
wages as reported for purposes of federal income tax on Form W-2;

 

	 	
(ii)

	
elective deferrals as defined in Section 402(g)(3) of the Code and salary reduction contributions of the Participant not includible in his or her gross income by reason of Section 125 (including amounts not available to a Participant in cash in lieu of group health coverage because the Participant is unable to certify that he or she has other health coverage) or Section 132(f) of the Code; and

 

	 	
(iii)

	
compensation paid after severance from employment as set out in Treas. Reg. § 1.415(c)-2(e)(3).

 

  

- 33 -

  

 

	 	
(b) 

	
The term “limitation year” for purposes of this Section 4.2 means the Plan Year.

4.3          Determination of Amount and Transmittal of Contributions.  The Employer shall be solely responsible for determining the amount that it may be required to contribute under the terms of the Plan.  In making its determination, the Employer may rely upon estimates of Earnings and Profits by its principal accounting officer or independent accountants.  The Employer's determination of the amount of any contributions shall be binding on all Participants, Beneficiaries, the Trustee, and the Employer.  In the event the Employer is unable to determine the correct amount of its allowable Plan contribution within the time required for payment, it shall pay an estimated amount, and any deficiency shall be paid as soon as finally determined.  The Trustee shall have no duty to collect contributions under the Plan and shall be solely accountable for monies or properties actually received by it.  The Employer shall be solely responsible for the transmittal of contributions to the Trustee.

 

 

  

- 34 -

  

 

ARTICLE V - INVESTMENTS

 

5.1          Receipt of Contributions.  All contributions received by the Trustee shall become assets of the Trust Fund, to be held, invested, and distributed in accordance with the terms of this Plan.  All expenses chargeable to the Trust Fund hereunder shall be paid as described in Section 14.5.

5.2          Investment of Accounts.  Amounts held in a Participant's Account shall be invested in accordance with the rules of this Article V.  The Plan Administrator shall inform the Trustee of the manner in which all contributions to and assets of the Trust Fund are to be allocated between the Investment Funds.  For this purpose, the Plan Administrator shall aggregate all Participant elections and notify the Trustee of the net results of such elections.

5.3          Initial Investment in Funds. Contributions made to a Participant’s Account shall be invested in one or more Investment Funds, as elected by the Participant.  An investment election shall be made in accordance with rules established by the Plan Administrator.  Such election shall remain in effect for all subsequent periods until revised.  The election shall specify the whole percentages of future contributions that the Participant elects to have invested in the available Investment Funds, with the total not to exceed 100%; provided, however, that, a Participant’s election to invest future contributions in the Stock Fund may not exceed 20% and any election in excess of such 20% limit, shall be automatically deemed to be an election to invest the excess above 20% in the Stable Value Option.  In the absence of any investment election by the Participant, future contributions on behalf of such Participant shall be invested in: (1) the Target Retirement Fund with a target year that most closely matches the Participant’s Social Security full retirement age, as set out in the Social Security Administration’s full retirement age schedule.

 

5.4          Change of Investment Fund.

	 	
(a)

	
A Participant may elect, in accordance with rules established by the Plan Administrator, to have all or a portion of the Incentive Contributions that have been automatically invested in the Stock Account transferred from the Stock Account to one or more other Investment Funds.

	 	
(b)

	
A Participant may elect, in accordance with rules established by the Plan Administrator, to alter the investment election for amounts held in the Participant’s Account and for future contributions.  Such election shall be made in accordance with rules established by the Plan Administrator and shall remain in effect for all subsequent periods until revised.  The election shall specify the whole percentages of such future contributions that the Participant elects to have invested in the available Investment Funds, with the total not to exceed 100%.

 

 

  

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(c)

	
Any election under subsection (a) or (b) above shall be processed as soon as practicable after the Plan Administrator's receipt of such election, but in no event more than ninety (90) days later.

	 	
(d)

	
Notwithstanding the foregoing, the Company may impose restrictions on the amount or percentage of a Participant's investment in any Investment Fund that may be transferred to any other Investment Fund, or the frequency of such transfers, to the extent that the Company determines, in its sole discretion, that such restrictions are in the best interests of Plan Participants generally.  The Plan Administrator shall notify Participants of such restrictions as promptly as possible following the time the Company determines such restrictions are appropriate or necessary.  In addition, the Company has the right to restrict investment changes regarding the Stock Account in order to comply with applicable law or internal Company rules regarding the trading in Stock.  If a Participant, on the date of any election, has less than 20% of his or her Account balance invested in the Stock Fund, such Participant may only transfer additional amounts to the Stock Fund to the extent the Participant’s total investment in the Stock Fund will not exceed 20% of his or her account balance; and if a Participant, on the date of any election, has 20% or more of his or her account balance invested in the Stock Fund, such Participant shall be precluded from transferring additional amounts to the Stock Fund.

5.5          Trustee May Hold and Distribute Cash.  The Trustee may hold assets of the Trust Fund and make distributions therefrom in the form of cash without liability for interest, if for administrative purposes it becomes necessary or practical to do so.

5.6          Purchase of Stock; the Stock Account.

	 	
(a)

	
Subject to the rules of Section 5.6(b), the Trustee shall purchase Stock from or through such broker or dealer, at such times, in such manner, and at such price as the Trustee, in its sole discretion shall determine.  Such purchases may, in the Trustee's sole discretion, be on the open market, through privately negotiated transactions, or from treasury or authorized but unissued Stock made available by the Company for direct purchases.  Purchase of treasury or authorized but unissued Stock shall be at the prevailing sales price for such Stock on the New York Stock Exchange at the time of purchase by the Trustee, as valued by the closing price on the New York Stock Exchange for the day, and shall be subject to any restrictions imposed by law.

	 	
(b)

	
A portion of the assets held in the Stock Account may be held in cash or temporary investments, if the Company directs that the Trustee is (i) to 

 

 

  

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maintain a pool of temporary investments to enable the movement of assets into and out of the account to accommodate Participant elections or (ii) to temporarily refrain from making an investment in Stock because market conditions are such that the Company determines such investment could be disruptive or could not be accomplished.  The Company shall be solely responsible for determining whether or not the investment in the Stock is prudent.

 

	 	
(c)

	
The Trustee shall be permitted to net all purchases and sales for the Stock Account; provided, however, both sales and purchases will be at market value and the books and records of the Trustee shall clearly reflect such fact.

	 	
(d)

	
Should the Trustee for any reason be unable to acquire or dispose of the Stock in the manner provided by this Section, it shall notify the Plan Administrator of such fact and shall thereafter make no purchases or sales of Stock, until instructions are received from the Company.

 

5.7          Available Investment Funds; Changes in Available Investment Funds. The following Investment Funds are available under the Plan:  the Stable Value Option; the Stock Account; an individual brokerage account option; and 15 common or collective investment funds managed by State Street Global Advisors, namely, the Bond Index Fund, the U.S. Large Cap Index Fund, the U.S. Mid Cap Index Fund, the U.S. Small Cap Index Fund, the International Index Fund, the Real Estate Index Fund, the Target Retirement Income Fund; and the Target Retirement 2010, 2015, 2020, 2025, 2030, 2035, 2040, 2045 and 2050 Funds with the expectation that additional Target Retirement Funds at five year intervals will be added from time to time.

 

   The Benefit Finance Committee shall periodically review the available Investment Funds under the Plan and make any changes with respect to the available Investment Funds as the Benefit Finance Committee, in its sole discretion, determines to be appropriate; provided however that (i) the Investment Funds available under the Plan must at all times include the Stock Account, (ii) the Stock Account cannot be changed or removed by the Benefit Finance Committee, and (iii) the Stock Account can only be changed or removed by a Plan amendment.

 

5.8          Contractual Income and Settlement.

	 	
(a)

	
Contractual Income.  In accordance with the Trustee's standard operating procedure, the Trustee shall credit the Fund with income and maturity proceeds on securities on contractual payment date net of any taxes or upon actual receipt.  To the extent the Trustee credits income on contractual payment date, the Trustee may reverse such accounting 

 

 

  

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entries to the contractual payment date if the Trustee reasonably believes that such amount will not be received.

 

	 	
(b)

	
Contractual Settlement.  In accordance with the Trustee's standard operating procedure, the Trustee will attend to the settlement of securities transactions on the basis of either contractual settlement date accounting or actual settlement date accounting.  To the extent the Trustee settles certain securities transactions on the basis of contractual settlement date accounting, the Trustee may reverse to the contractual settlement date any entry relating to such contractual settlement if the Trustee reasonably believes that such amount will not be received.

 

5.9          Intention to Comply with ERISA Section 404(c). This Plan is intended to constitute a plan described in Section 404(c) of ERISA and Department of Labor Regulations Section 2550.404(c)-1.

 

  

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ARTICLE VA - EMPLOYEE STOCK OWNERSHIP PLAN

 

5A.1       ESOP Designation.  The portion of the Plan invested in the Stock Account, shall be designated as an employee stock ownership plan within the meaning of Section 4975(e)(7) of the Code, and is referred to in this Article 5A as the “ESOP”.

 

5A.2       Designed to Invest in Employer Securities.  The ESOP is a stock bonus plan within the meaning of Treasury Regulation 1.401-1(a)(2)(iii) designed to invest primarily in Stock, which constitutes qualifying securities within the meaning of Section 409(l) of the Code.

 

5A.3       Right to Demand Employer Securities.  A Participant who is entitled to a distribution under the Plan shall have the right to demand that the portion of the Participant’s Account that is part of the ESOP (the “ESOP Portion” of the Account) be distributed in the form of Stock.

 

5A.4       Statutory Distribution Requirement.

	
  

	
(a)

	
Unless a Participant elects otherwise, pursuant to Section 409(o) of the Code, the distribution of the ESOP Portion of the Participant’s Account shall be in substantially equal periodic payments (not less frequently than annually) over a period not longer than the greater of:

 

	
  

	
(i)

	
5 years, or

 

	
  

	
(ii)

	
in the case of a Participant with a Stock Account Value in excess of $985,000, 5 years plus 1 additional year (but not more than 5 additional years) for each $195,000 or fraction thereof by which such balance exceeds $985,000.  The dollar amounts in this Subsection shall be subject to adjustment in accordance with Section 409(o)(2) of the Code.

Distributions in an immediate lump sum pursuant to Article VIII shall satisfy the preceding sentence.

 

5A.5       Voting Rights.  Each Participant (or if applicable, such Participant’s Beneficiary) shall be entitled to direct the manner in which any shares of Stock in the ESOP Portion of the Participant’s Account is to be voted, pursuant to Article XIV.

 

5A.6       Pass-Through Dividends.

	
  

	
(a)

	
With respect to dividends paid on Stock in the ESOP Portion of a Participant’s Account, such Participant (or if applicable, such Participant’s Beneficiary), may elect either:

 

 

  

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(i)

	
the payment to the ESOP and distribution in cash to such Participant of such dividends not later than the last day of the Plan Year in which the dividends are paid by the Company; or

	
  

	
(ii)

	
the payment to the ESOP and reinvestment in the ESOP Portion of the Participant’s Account of such dividends.

	
  

	
(b)

	
With respect to a Participant’s election under Subsection (a) above, a Participant shall be given:

 

	
  

	
(i)

	
a reasonable opportunity to make an election prior to a dividend being paid or distributed to the Participant;

	
  

	
(ii)

	
an opportunity to change his or her dividend election at least annually; and

	
  

	
(iii)

	
provided that there is a change in the terms governing the manner in which dividends are paid or distributed under the ESOP, a reasonable opportunity to make a new election under the new terms prior to the date on which the first dividend subject to the new terms is paid or distributed under the ESOP.

(c)           With respect to Sections 5A.6(a) and (b):

	
  

	
(i)

	
A Participant who has any portion of his or her Account invested in the Stock Account shall be given a reasonable opportunity to make an initial dividend election within a reasonable time prior to a dividend being first paid to a Participant (or if that cannot be effectuated, within a reasonable time prior to the next payment of dividends thereafter).  The initial dividend elections described in the preceding sentences shall apply to any dividend payable to a Participant until the Participant chooses to change his or her initial dividend election.  A Participant’s dividend election shall become irrevocable within a reasonable time prior to the payment of dividends.

	
  

	
(ii)

	
If a Participant has failed to make an affirmative initial dividend election within a reasonable time prior to a payment of dividends on Stock, the Participant shall be deemed to have elected the payment of dividends to the ESOP and reinvestment in the ESOP Portion of the Participant’s Account.

	
  

	
(iii)

	
Pursuant to Section 5A.6(b)(ii), a Participant shall have the opportunity to change his or her initial dividend election at least annually.

	
  

	
(d)

	
Notwithstanding the provisions set forth in Sections 5A.6(a) (b) and (c), the Plan shall not distribute any dividend amount under this Section 5A.6 in the

 

  

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event it is determined that the Company would not be allowed a deduction under Section 404(k) of the Code for the full amount of the cash dividend available for distribution at the election of a Participant or his Beneficiary.

 

	
  

	
(e)

	
Notwithstanding any provision of the Plan to the contrary, cash dividend distributions made by the ESOP are not Eligible Rollover Distributions.

 

 

  

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ARTICLE VI - ACCOUNTS AND ALLOCATIONS

 

6.1           Unallocated Contribution Account.  The Plan Administrator may establish an Unallocated Contribution Account and credit such account with all Incentive Contributions held by the Trustee before any allocation by the Plan Administrator.

 

6.2           Allocation of Investment Earnings.  All investment earnings shall be reinvested and credited in the same Investment Fund and Account in which they are held.  All contributions will be allocated to Participants' Accounts as soon as practicable after their receipt in the Trust in accordance with the Plan's contribution and allocation formulas.

 

All interest, dividend income, gains or losses, with respect to Participants' Accounts, will be allocated to each Participant's Account as soon as practicable after they accrue or arise in proportion to the Account Value of the Participant's Account that is invested in the accumulation facilities from which such interest, dividend income, gains, losses or expenses accrue or arise.

 

6.3           Determination of Value.  The Account Value of a Participant's Account will be determined for each allocation, distribution or withdrawal, but in no event will such determination be made less frequently than once each month.  The net value of each Investment Fund reduced by any investment fees or expenses charged to Participants shall be determined by the Trustee by valuing the assets other than cash at their fair market value on the Valuation Date and deducting all expenses for which the Trustee has not received reimbursement from the Employer or the Trust Fund, except that the Stock Account shall be valued based on the closing price of the Stock on the New York Stock Exchange on any Valuation Date.

	
  

	
(a)

	
In determining the fair market value of securities other than Stock held in the Trust Fund, if such securities are listed on a registered stock exchange the Trustee shall value the securities at the prices they were last traded on such exchange preceding the close of business on the Valuation Date.  Any unlisted security held in the Trust Fund shall be valued at its bid price next preceding the close of business on the Valuation Date, which bid price shall be obtained from a registered broker or an investment banker.  In determining the fair market value of assets other than securities for which trading or bid prices can be obtained, the Trustee shall appraise such assets in the manner directed by the Company.

	
  

	
(b)

	
Notwithstanding the foregoing, the value of any Investment Fund maintained by the Insurer shall be determined by the Insurer, and the Trustee shall conclusively rely on the Insurer's valuation.

 

 

  

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ARTICLE VII - VESTING

7.1           Accounts Other Than Supplemental Employer Contribution Accounts.  A Participant's Account, other than such Supplemental Employer Contribution Account, shall be 100% vested at all times.

 

7.2           Supplemental Employer Contribution Account. The Supplemental Employer Contribution Account of any Participant shall be nonvested and forfeitable until the occurrence of any of the following events, at which time it shall become 100% vested:

 

	
  

	
(a)

(b)

(c)

(d)

(e)

	
The Participant’s Normal Retirement Date;

The Participant’s death while an Employee;

The Participant’s Disability while an Employee;

The Employer discontinues contributions or terminates or partially terminates the Plan as provided in Article XI hereof.

The Participant’s satisfaction of the service requirement set forth in the following schedule:

                        

	
Years of Vesting Service

	
Vesting Percentage

	  	  
	
Less than 3

	
0%

	  	  
	
3

	
100%

 

	
  

	
(f)

	
In the event of a Change in Control, the date a Participant incurs a “Covered Termination of Employment”, as defined in the Aetna Inc. Job Elimination Benefits Plan, provided such Covered Termination of Employment occurs within two years of the date of such Change in Control, but only with respect to the Participant’s Account as of the date such Covered Termination of Employment is incurred.

 

7.3           Occurrence of Forfeitures.  Except as more specifically provided herein, a forfeiture of a Participant's non-vested interest, if any, shall occur at the end of a Plan Year during which a Participant shall have incurred a Period of Severance of 5 years or more.  In the event that a Participant ceases to be employed by the Employer and, before the end of the period set forth in the preceding sentence, receives a lump-sum distribution of the vested portion of the Participant’s Account pursuant the terms of the Plan, then the portion of the Participant's Account that is not vested shall be treated as a forfeiture as of the last day of the Plan Year in which the Participant ceased to be employed by the Employer.  If such former Participant later becomes an Employee and has not, as of the last day of the Plan Year in which the Participant again becomes an Employee, incurred a Period of Severance of five years or more, such Participant's Account will be restored to the dollar value it had on the date of distribution if the Participant repays to the Plan the full amount of the distribution within the earlier of (1) five years after the date in which the Participant again becomes an Employee, or 

 

 

  

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(2) the close of the first period of five consecutive Breaks in Service commencing after the distribution.

    7.4           Use of Forfeitures.  Forfeitures arising during a Plan Year shall be used by the Employer to fund its contributions to the Plan and to pay Plan expenses under Section 14.5 for such Plan Year and, if any forfeitures still remain, for subsequent Plan Years.

 

 

  

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ARTICLE VIII - DISTRIBUTION TO PARTICIPANTS

8.1           Time of Distribution.

	
  

	
(a)

	
General. Except as otherwise provided in Article IX, Section 8.12 and subsection (b), distribution of a Participant’s vested Account Value shall be made only following the Participant’s Termination from Service, termination of the Plan or as described in Sections 8.9(a)(iii) and (iv), and Section 8.13.  Except for a distribution pursuant to termination of the Plan, which may be delayed in the discretion of the Plan Administrator until after receipt of Internal Revenue Service approval, distributions to a Participant or Beneficiary shall be made or begun as soon as administratively feasible following the Valuation Date as of which the distribution is requested in writing by the Participant.

 

The Valuation Date referred to in this paragraph shall be deemed the Annuity Starting Date.  In addition, unless a Participant otherwise elects to defer distribution to a date no later than permitted under Section 8.1(b), distribution of a Participant’s vested Account Value shall be made or begun not later than sixty (60) days after the close of the Plan Year in which the latest of the following occurs: (i) the Participant’s attainment of Normal Retirement Age, (ii) the 10th anniversary of the Participant’s commencement of participation in the Plan, or (iii) the Participant’s Termination from Service.  A Participant who does not make a request in writing for commencement of benefits by such date shall be deemed to have elected to defer distribution.

	 	
(b) 

	
Minimum Required Distributions.

	
  

	
(i)

	
Notwithstanding any other provision of the Plan to the contrary, the following rule shall apply for purposes of determining a Participant’s required beginning date under the Plan: the distribution of a Participant’s vested Account Value shall be made or begun not later than April 1st of the calendar year following the later of (I) the calendar year in which the Participant attains age seventy and one-half (701⁄2), or (II) the calendar year in which the Participant has a Termination from Service; provided, however, that any such Participant may elect to begin receiving distribution on or after the April 1st following the calendar year in which the Participant attained age seventy and one-half (701⁄2) even though such distribution precedes the Participant’s Termination from Service.

 

 

  

- 45 -

  

	
  

	
 

	

Benefit payments under this subsection shall be calculated in accordance with Section 401(a)(9) of the Code and the regulations thereunder.

A Participant may elect the time during the year at which such minimum benefit payments will be made and, if no election is made, such payments will be made during the last month in which such minimum distribution is required to be made or at such other time determined by the Plan Administrator in its sole discretion, but no earlier than six months prior to the last month in which the distribution is required.

 

	
  

	
(ii)

	
A Participant whose Termination from Service precedes the attainment of age 701⁄2 may defer distribution of the payment of any benefits until the April 1st following the calendar year in which the Participant attains age seventy and one-half (701⁄2), at which time benefit payments shall commence as provided above unless and until the Participant elects to begin distribution in accordance with Section 8.6.  Until a Participant elects a form of distribution under Sections 8.5 and 8.6, the Participant may (1) request unlimited withdrawals each Plan Year (in addition to any distribution during the Plan Year pursuant to Section 8.1(b)), and (2) alter investment elections in accordance with the rules of Article V.  Any request for withdrawal must be in writing and must be filed with the Plan Administrator in accordance with Article IX.

	
  

	
(iii)

	
The Plan shall be interpreted and administered in accordance with Section 401(a)(9) of the Code and the regulations thereunder, which provisions shall control in the event of any conflict with the terms of the Plan.

	
  

	
(iv)

	
The Plan Administrator shall have the discretion to establish a uniform order in which such funds will be drawn from the Participant's Accounts.

 

Subject to the above, withdrawals shall be charged pro rata against a Participant's investments in the available Investment Funds.

8.2           Distribution Upon Participant’s Termination From Service for Reasons Other Than Death or Disability.  A Participant whose Termination from Service is the result of reasons other than death or Disability may elect to have his or her vested Account Value distributed as provided in Section 8.1.  The form of such distribution shall be determined in accordance with the election of the Participant under Section 8.5.

 

 

  

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8.3           Distribution Upon Death of Participant Following Commencement of Benefits.  Upon the death of a Participant following the time the distribution of the Participant’s vested Account Value has been made or begun (a) under Section 8.6, death benefits shall be payable only as provided under the form of distribution being used, or (b) under Section 8.1(b), death benefits shall be payable in accordance with Section 8.1(b) or in the manner specified under Article X, but in no event in a manner that provides for payments less rapidly than payments were being made to the Participant.  Notwithstanding the preceding sentence, death benefits shall be payable in a lump sum no later than the last day of the calendar year following the calendar year in which the Participant's death occurs.

8.4           Distribution Upon Disability of Participant.  A Participant whose Termination from Service is the result of a total and permanent Disability may elect to have his or her vested Account Value distributed as provided in Section 8.1.  The form of distribution shall be determined in accordance with Sections 8.5 and 8.6. A Participant’s Termination from Service by reason of Disability shall be deemed to occur for purposes of this Section on the date the Plan Administrator makes a determination that the Participant has incurred a Disability.  The right to elect a distribution pursuant to this Section shall cease upon the cessation of such Disability.

8.5           Forms of Distribution.

	
  

	
(a)

	
Subject to the rules regarding the manner of making an election set forth in Section 8.6 and the rules of Section 8.1(b), a Participant may elect to have his or her vested Account Value distributed in any of the following forms of distribution:

	
  

	
(i)

	
a fixed number of substantially equal payments (or payments of a fixed dollar amount) to be paid in monthly, quarterly, semi-annual or annual installments over a period not to exceed 15 years, with any unpaid amounts at the Participant’s death paid to the Participant’s Beneficiary in a lump sum;

	
  

	
(ii)

	
a cash lump sum;

	
  

	
(iii)

	
a lump sum payment of some or all of the Participant’s Stock Account Value in kind, by issuance of Stock, with any fractional or remaining shares of Stock paid in cash;

	 	
(iv) 

	
a combination of the above.

	
  

	
(b)

	
In the event a Participant elects to receive his or her vested Account Value in more than one of the above forms of distribution, the Participant shall specify the dollar amount or percentage of the vested Account Value to be paid in each form of distribution.  In the event a Participant elects to receive any portion of his or her vested 

 

 

  

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Account Value in installments, the installments may, at the Plan Administrator’s option, be provided from a Group Annuity Contract or individual annuity contract purchased from the Insurer.

 

8.6            Election of Form of Distribution.

	
  

	
(a)

	
When a Participant requests that distribution begin, the Plan Administrator shall notify the Participant in writing of each of the optional forms of distribution that the Participant may elect.  Such notice shall include the description of a Participant’s right, if any, to defer receipt of a distribution, the consequences of failing to defer receipt of the distribution, a description indicating the investment options available under the Plan (including fees) that will be available if the Participant defers distribution, and the portion of the summary plan description that contains any special rules that might materially affect a Participant’s decision to defer.

	
  

	
 (b)

	
A Participant shall elect the form of distribution by filing a written election with the Plan Administrator not more than one hundred and eighty (180) days before the Annuity Starting Date.  Any election under this Section may be revoked in writing before the end of the election period referred to above.  

8.7            Annuity Nontransferable.  Any annuity issued to a Participant or Beneficiary under the terms of this Plan shall be endorsed nontransferable.

8.8            Distribution Where No Election by Participant.  The Plan Administrator will make a reasonable attempt to elicit an election as to the form and timing of distributions.  If following the Participant's Termination from Service no such election is made, distribution shall be made in the manner and as of the Participant's required beginning date determined under Section 8.1(b).  In the event distribution is to be made under this Article in the form of a qualified joint and fifty percent (50%) survivor annuity or a qualified joint and one hundred percent (100%) survivor annuity and the Plan Administrator has not received information regarding the age of a Participant's Spouse that is satisfactory to the Plan Administrator, it shall be assumed that the Spouse is ten (10) years younger than the Participant.

 

8.9           Limit on Distribution of Deferral Accounts.

	
  

	
(a)

	
Notwithstanding any other provision of the Plan to the contrary, no distribution shall be made from a Participant's Deferral Account before:

	
  

	
(i)

	
Termination from Service;

 

 

  

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(ii)

	
termination of the Plan without establishment or maintenance of another defined contribution plan (other than an employer stock ownership plan as defined in Section 4975(e)(7) of the Code);

	
  

	
(iii)

	
the attainment of age fifty-nine and one-half (591⁄2) by the Participant; or

	
  

	
(iv)

	
in the case of the Deferral Contributions (but not earnings thereon credited after December 31, 1988), the Participant experiences a Hardship, as defined in Section 9.3 below.

	
  

	
(b)

	
With regard to subpart (ii) of paragraph (a) above, any distribution must be a lump sum distribution (as defined in Section 401(k)(10)(B)(ii)).  The foregoing limitations on distributions are intended to comply with the requirements of Section 401(k)(2)(B) of the Code and shall be interpreted in accordance with such Section and applicable Treasury Regulations.

 

8.10         Small Account Values; Lump Sum Cash-Out; Automatic Rollover. If, upon a Participant’s Termination from Service Date, or on a periodic basis thereafter, or at the time of any distribution from the Plan, the Participant’s vested Account Value is not in excess of five thousand dollars ($5,000) (or such greater amount as permitted under the Code), the Plan, to the extent permitted by law and applicable regulations, shall make a single lump sum payment to the Participant or Beneficiary entitled to such benefit.  Notwithstanding the foregoing, in the event the Participant’s vested Account Value exceeds one thousand dollars ($1,000) at the time of such distribution, and the Participant does not elect to receive the distribution directly or to have the distribution paid directly to an eligible retirement plan specified by the Participant in a direct rollover in accordance with the provisions of this Article VIII and Section 18.5 as applicable, then the Plan Administrator will pay the distribution in a direct rollover to an individual retirement account designated by the Plan Administrator. This Section shall not apply to any Participant who (a) is repaying a loan by personal check pursuant to Section 9.7(g)(ii), until the earlier of the date on which the loan is repaid in full or the date on which the Participant’s entire loan balance becomes due and payable as a result of nonpayment or (b) has incurred a Termination from Service by reason of Disability, until such time as such Participant’s employment with the Employer is terminated pursuant to Company policy.

 

8.11         Procedure for Missing Participants or Beneficiaries.  The Plan Administrator must use all reasonable measures to locate Participants or Beneficiaries who are entitled to distributions from the Plan.  In the event that the Plan Administrator cannot locate a Participant or Beneficiary who is entitled to a distribution from the Plan after using all reasonable measures to locate him or her, the Plan Administrator shall, after the expiration of 1 year after the benefit becomes payable, treat the amount distributable as a forfeiture in accordance with Section 7.5 and allocate it in accordance with the terms of the Plan.  If the Participant or 

 

 

  

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Beneficiary is later located, the Plan Administrator shall restore to the Plan the amount forfeited, without interest.

   

8.12        Rules for Minimum Required Distributions

	 	
(a) 

	
General Rules.

	
  

	
(1)

	
Precedence.  The requirements of Section 8.1(b) and this Section 8.12 will take precedence over any inconsistent provisions of the Plan.

	
  

	
(2)

	
Requirements of Treasury Regulations Incorporated.  All distributions required under this Section 8.12 will be determined and made in accordance with the Treasury regulations under Section 401(a)(9) of the Internal Revenue Code.

	 	
(b) 

	
Time and Manner of Distribution.

	
  

	
(1)

	
Required Beginning Date.  The Participant's entire interest will be distributed, or begin to be distributed, to the Participant no later than the Participant's required beginning date as set forth in Section 8.1(b).

	
  

	
(2)

	
Death of Participant Before Distributions Begin.  If the Participant dies before distributions begin, the Participant's entire interest will be distributed, or begin to be distributed, no later than as follows:

	
  

	
(A)

	
If the Participant's Surviving Spouse is the Participant's sole designated Beneficiary, then distributions to the Surviving Spouse will begin by December 31 of the calendar year immediately following the calendar year in which the Participant died, or by December 31 of the calendar year in which the Participant would have attained age 701/2, if later.

	
  

	
(B)

	
If the Participant's Surviving Spouse is not the Participant's sole designated Beneficiary, then distributions to the designated Beneficiary will begin by December 31 of the calendar year immediately following the calendar year in which the Participant died.

	
  

	
(C)

	
If there is no designated Beneficiary as of September 30 of the year following the year of the Participant's death, the 

 

 

  

- 50 -

  

 

Participant's entire interest will be distributed by December 31 of the calendar year containing the fifth anniversary of the Participant's death.

 

	
  

	
(D)

	
If the Participant's Surviving Spouse is the Participant's sole designated Beneficiary and the Surviving Spouse dies after the Participant but before distributions to the Surviving Spouse begin, this Section (b)(2), other than Section (b)(2)(A), will apply as if the Surviving Spouse were the Participant.

For purposes of this Section (b)(2) and Section (d), unless Section (b)(2)(D) applies, distributions are considered to begin on the Participant's required beginning date.  If Section (b)(2)(D) applies, distributions are considered to begin on the date distributions are required to begin to the Surviving Spouse under Section (b)(2)(A).  If distributions under an annuity purchased from an insurance company irrevocably commence to the Participant before the Participant's required beginning date (or to the Participant's Surviving Spouse before the date distributions are required to begin to the Surviving Spouse under Section (b)(2)(A)), the date distributions are considered to begin is the date distributions actually commence.

	
  

	
(3)

	
Forms of Distribution.  Unless the Participant's interest is distributed in the form of an annuity purchased from an insurance company or in a single sum on or before the required beginning date, as of the first distribution calendar year distributions will be made in accordance with Sections (c) and (d) of this Section 8.12.  If the Participant's interest is distributed in the form of an annuity purchased from an insurance company, distributions thereunder will be made in accordance with the requirements of Section 401(a)(9) of the Code and the Treasury regulations.

	 	
(c) 

	
Required Minimum Distributions During Participant's Lifetime.

	
  

	
(1)

	
Amount of Required Minimum Distribution for Each Distribution Calendar Year.  During the Participant's lifetime, the minimum amount that will be distributed for each distribution calendar year is the lesser of:

	
  

	
(A)

	

the quotient obtained by dividing the Participant's Account balance by the distribution period in the Uniform Lifetime Table set forth in Section 1.401(a)(9)-9 of the Treasury regulations, using the Participant's age as of the Participant's birthday in the distribution calendar year; or

  

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(B)

	
if the Participant's sole designated Beneficiary for the distribution calendar year is the Participant's Spouse, the quotient obtained by dividing the Participant's Account balance by the number in the Joint and Last Survivor Table set forth in Section 1.401(a)(9)-9 of the Treasury regulations, using the Participant's and Spouse's attained ages as of the Participant's and Spouse's birthdays in the distribution calendar year.

	
  

	
(2)

	
Lifetime Required Minimum Distributions Continue Through Year of Participant's Death.  Required minimum distributions will be determined under this Section (c) beginning with the first distribution calendar year and up to and including the distribution calendar year that includes the Participant's date of death.

 

	 	
(d) 

	
Required Minimum Distributions After Participant's Death.

	 	
(1) 

	
Death On or After Date Distributions Begin.

	
  

	
(A)

	
Participant Survived by Designated Beneficiary. If the Participant dies on or after the date distributions begin and there is a designated Beneficiary, the minimum amount that will be distributed for each distribution calendar year after the year of the Participant's death is the quotient obtained by dividing the Participant's Account balance by the longer of the remaining life expectancy of the Participant or the remaining life expectancy of the Participant's designated Beneficiary, determined as follows:

	
  

	
(i)

	
The Participant's remaining life expectancy is calculated using the age of the Participant in the year of death, reduced by one for each subsequent year.

	
  

	
(ii)

	
If the Participant's Surviving Spouse is the Participant's sole designated Beneficiary, the remaining life expectancy of the Surviving Spouse is calculated for each distribution calendar year after the year of the Participant's death using the Surviving Spouse's age as of the Spouse's birthday in that year.  For distribution calendar years after the year of the Surviving Spouse's death, the 

 

  

- 52 -

  

 

	
  

	
 

	

remaining life expectancy of the Surviving Spouse is calculated using the age of the Surviving Spouse as of the Spouse's birthday in the calendar year of the Spouse's death, reduced by one for each subsequent calendar year.

 

	
  

	
(iii)

	
If the Participant's Surviving Spouse is not the Participant's sole designated Beneficiary, the designated Beneficiary's remaining life expectancy is calculated using the age of the Beneficiary in the year following the year of the Participant's death, reduced by one for each subsequent year.

	
  

	
(B)

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

	 	
(2) 

	
Death Before Date Distributions Begin.

	
  

	
(A)

	
Participant Survived by Designated Beneficiary.  If the Participant dies before the date distributions begin and there is a designated Beneficiary, the minimum amount that will be distributed for each distribution calendar year after the year of the Participant's death is the quotient obtained by dividing the Participant's Account balance by the remaining life expectancy of the Participant's designated Beneficiary, determined as provided in Section (d)(1).

	
  

	
(B)

	
No Designated Beneficiary.  If the Participant dies before the date distributions begin and there is no designated Beneficiary as of September 30 of the year following the year of the Participant's death, distribution of the Participant's entire interest will be completed by December 31 of the calendar year containing the fifth anniversary of the Participant's death.

 

  

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(C)

	
Death of Surviving Spouse Before Distributions to Surviving Spouse Are Required to Begin.  If the Participant dies before the date distributions begin, the Participant's Surviving Spouse is the Participant's sole designated Beneficiary, and the Surviving Spouse dies before distributions are required to begin to the Surviving Spouse under Section (b)(2)(A), this Section (d)(2) will apply as if the Surviving Spouse were the Participant.

	 	
(e) 

	
Definitions.

	
  

	
(1)

	
Designated Beneficiary.  The individual who is designated as the Beneficiary under the Plan and is the designated Beneficiary under Section 401(a)(9) of the Internal Revenue Code and Section 1.401(a)(9)-1, Q&A-4, of the Treasury regulations.

	
  

	
(2)

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

	
  

	
(3)

	
Life expectancy.  Life expectancy as computed by use of the Single Life Table in Section 1.401(a)(9)-9 of the Treasury regulations.

	
  

	
(4)

	
Participant's Account balance.  The Account balance as of the last valuation date in the calendar year immediately preceding the distribution calendar year (valuation calendar year) increased by the amount of any contributions made and allocated or forfeitures allocated to the Account balance as of dates in the valuation calendar year after the valuation date and decreased by distributions made in the valuation calendar year after the 

 

  

- 54 -

  

 

	 	
 

	

valuation date.  The Account balance for the valuation calendar year includes any amounts rolled over or transferred to the Plan either in the valuation calendar year or in the distribution calendar year if distributed or transferred in the valuation calendar year.

 

	 	
(5) 

	
Required beginning date.  The date specified as such in Section 8.1(b) of the Plan.

8.13        Distribution of Certain Accounts for Purposes of Conversion to Designated Roth Contributions.

	 	
(a)

	
Notwithstanding any other provision of the Plan to the contrary, an Active Participant may elect a distribution from the following accounts solely for the purpose of rolling over the amount distributed to a Roth Account within the Plan:

	
  

	
(i)

	
Voluntary Contribution Account;

	
  

	
(ii)

	
Incentive Contribution Account; and

	
  

	
(iii)

	
Rollover Account.

	
  

	
(b)

	
A distribution may be made pursuant to (i) or (ii) of subsection (a) of this Section 8.13 only if the amounts distributed have accumulated in the account for at least two years, unless the Participant has participated in the Plan for five years or more, in which case all amounts may be distributed consistent with this Section.  A distribution may be made pursuant to (iii) of subsection (a) of this Section 8.13 at any time.

 

 

  

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ARTICLE IX - WITHDRAWALS AND LOANS

 

9.1           Withdrawals from Voluntary Contribution and Rollover Accounts.  A Participant may withdraw all or part of the value of the Voluntary Contribution Account or Rollover Account for any reason after providing notice to the Plan Administrator of up to thirty (30) days as required by the Plan Administrator.  Such notice shall be in writing and shall specify the value to be withdrawn in terms of dollars or a percentage of the Voluntary Contribution or Rollover Account Value.

9.2           Withdrawals from Deferral and Incentive Contribution Accounts.  A Participant may not make withdrawals from the Deferral Account or the Incentive Contribution Account before Termination from Service, except:  (a) upon attainment of age 591⁄2; (b) upon Disability; (c) in the event of Hardship as provided in Section 9.3; or (d) in the event of a withdrawal of Deferral Contributions made pursuant to Section 3.1A(b)(ii) hereof and Section 414(w)(2)(B) of the Code.  No withdrawals may be made from the Incentive Contribution Account until the Participant is vested in accordance with the provisions of Article VII.

9.2A        Withdrawals from Supplemental Employer Contribution Account.  A Participant may not make withdrawals from the Supplemental Employer Contribution Account before Termination from Service, except upon attainment of age 591⁄2.  No withdrawals may be made from the Supplemental Employer Contribution Account until the Participant is vested in accordance with the provisions of Article VII.

9.3           Hardship Withdrawals.

	
  

	
(a)

	
In the event of Hardship (as defined below) and upon notice of up to thirty (30) days to the Plan Administrator as required by the Plan Administrator, a Participant shall have the right to withdraw the amount necessary to relieve the Hardship from the Deferral Account.

	
  

	
(b)

	
For the purposes of this Section 9.3, a “Hardship” shall be deemed to exist if, and only if, such Participant experiences an immediate and heavy financial need (as defined in (c) below) and the withdrawal is necessary to satisfy the financial need of the Participant (as defined in (d) below).

	
  

	
(c)

	
A Participant will be deemed to experience an immediate and heavy financial need if, and only if, the withdrawal is required for one of the following reasons:

	
  

	
(i)

	
payment of otherwise unreimbursable expenses for medical care described in Section 213(d) of the Code previously incurred by the Participant, the Participant's spouse, or any dependents of the 

 

  

- 56 -

  

 

	
  

	
 

	

Participant (as defined in Section 152 of the Code) or necessary for such persons to obtain such medical care;

 

	
  

	
(ii)

	
purchase of a lot on which to build the Participant's principal residence if construction will begin within six (6) months of the purchase of the lot;

	
  

	
(iii)

	
payment of post-secondary educational expenses of the Participant or the Participant's spouse, children or dependents (as defined in Section 152 of the Code) for the next twelve (12) months;

	
  

	
(iv)

	
payment of amounts necessary to prevent the eviction of the Participant from his or her principal residence or foreclosure on the mortgage on the Participant's principal residence;

	
  

	
(v)

	
purchase (excluding mortgage payments) or construction of Participant's principal residence if such request is received before closing;

	
  

	
(vi)

	
payment of expenses related to the adoption of a child by the Participant;

	
  

	
(vii)

	
payment of expenses related to the death of a member of the Participant's immediate family.  For purposes of this Section, a member of the Participant's immediate family shall include the Participant's Spouse and the Participant's lineal ascendants or descendants, as well as any other person who raised the Participant or the Participant's Spouse or was raised by the Participant; or

	
  

	
(viii)

	
Payment of expenses for the repair of damage to the Participant’s principal residence that would qualify for the casualty deduction under Code Section 165 (determined without regard to whether the loss exceeds 10% of adjusted gross income).

	
  

	
(d)

	
A withdrawal will be deemed necessary to satisfy the financial need of a Participant if, and only if:

	
  

	
(i)

	
the withdrawal is not in excess of the amount of the immediate and heavy financial need of the Participant.  The amount of the immediate and heavy financial need may include any amounts necessary to pay any federal, state, or local income taxes or penalties reasonably anticipated to result from the distribution; and

 

  

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(ii)

	
the Participant represents and certifies to the Plan Administrator in writing that the financial need cannot be met with other funds reasonably available to the Participant, the Participant's Spouse or the Participant's minor children including:

	
  

	
(A)

	
through reimbursement or compensation by insurance or otherwise;

	
  

	
(B)

	
by reasonable liquidation of the Participant's assets without creating another immediate and heavy financial need;

	
  

	
(C)

	
by cessation of Deferral and Voluntary Contributions to this Plan; and

	
  

	
(D)

	
by other distributions or nontaxable (at the time of the loan) loans from plans maintained by the Employer including this Plan, including the receipt in cash of dividends on Stock pursuant to an election under Article 5A of this Plan, or by a similar distribution or loan from the plan of any other employer, or by borrowing from commercial sources on reasonable commercial terms in an amount sufficient to satisfy the need.

9.4           Timing of Withdrawals.  No more than three (3) withdrawals of any kind in the aggregate from the Plan and the Aetna 401(k) Plan may be made within any calendar year.

9.5           Distribution of Amounts Withdrawn.  Upon receipt of the Plan Administrator's approval of a request for withdrawal in accordance with the provisions of Sections 9.1, 9.2 or 9.3, the Trustee shall, to the extent necessary, and in accordance with directions provided by the Plan Administrator, convert Account assets to cash and distribute the requested amount to the Participant.  Any conversion to cash pursuant to this provision shall be made by converting the portion of the Participant's Account Value equal to the amount of the withdrawal invested in each Investment Fund pro rata.

 

The Plan Administrator shall have the discretion to establish a uniform order in which such funds will be drawn from the Participant’s Accounts.

9.6           Loans to Participants.

 Effective January 1, 2013 loans from this Plan are not permitted and this Section 9.6 shall be disregarded.

 

  

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(a)

	
An Active Participant receiving a regular paycheck from the Employer may apply for one or more loans from the Plan; provided, however, that the Company may, in its sole discretion, permit a loan to any individual who is not an Eligible Employee by virtue of Section 1.25(e) but who receives a regular paycheck from the Employer.  A Participant who is on leave (with or without pay) or who is receiving long-term disability benefits or severance pay, as well as retirees, temporary employees and beneficiaries, may not apply for a loan.  Subject to limitations described herein, loans shall be approved by the Plan Administrator or its designees in their sole discretion.  The  Plan Administrator shall charge the Account of a Participant a reasonable fee for the initiation of a loan.  Such fee, which may be amended from time to time or eliminated entirely, in the Plan Administrator's discretion, shall be charged against the remaining Account balance (i.e., the Account balance less the amount of the loan).  In no event shall the amount of the loan be less than $1,000, and the amount of the loan, when added to the aggregate amount of all loans to the Participant then outstanding in the Plan or any other plan of the Employer or an Affiliate, may not exceed the lesser of:

	 	
(i) 

	
$50,000, reduced by the excess (if any) of (A) the highest outstanding balance of loans from the Plan during the one-year period ending on the day before the date on which such loan was made, over (B) the outstanding balance of loans from the Plan on the date on which such loan was made; or

	 	
(ii) 

	
one-half of the Participant's vested Account Value in all such plans on the date of the loan.

	 	
(b) 

	
Loans made to Participants for purposes other than for the purchase of the Participant's principal residence shall be for terms of not less than one (1) nor more than five (5) years.  Loans made to Participants for the purchase of the Participant's principal residence shall be for terms of not less than one (1) nor more than twenty (20) years.  Effective June 1, 2004, a Participant may have no more than two (2) loans outstanding at any time; provided, however, that only one such outstanding loan may be a residential loan.

	 	
(c) 

	
Any loan to a Participant hereunder shall be considered an investment of the Participant's Account.  Funds for a loan will be obtained by liquidating the Participant's interest in the various Investment Funds in which the Participant's Accounts are invested pro rata.  The Plan Administrator shall have the discretion to establish a uniform order in which such funds will be drawn from the Participant’s Accounts.

 

  

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The loan shall bear interest for the period the loan is outstanding based on a fixed monthly interest rate that reflects a reasonably competitive interest rate that would be charged for similar collateralized loans in accordance with Department of Labor Regulations Section 2550.408b-1.  The interest rate for loans under the Plan shall be equal to the prime interest rate stated in The Wall Street Journal for the last working day of the month preceding the date of the loan plus 1%.  The interest rate in effect for the entire term of the loan will be the rate in effect at the time the Plan Administrator receives the loan application.  The applicable interest rate shall be set forth in the loan agreement.  The Plan Administrator shall provide any Participant who requests a loan with disclosure of interest rate information required by Regulation Z of the Federal Reserve Board promulgated pursuant to the Truth in Lending Act, 15 U.S.C. Section 1601, et seq.

	 	
(d) 

	
As security for such loan, the Participant shall pledge the portion of his or her Account Value represented by the loan and earnings thereon (as set forth in the promissory note representing the loan).  The Plan Administrator shall have the rights of a secured creditor under the Uniform Commercial Code and otherwise at law with respect to any portion of the Participant's Account pledged as security.  If any amount is outstanding upon the occurrence of an event giving rise to a withdrawal or distribution under this Plan and such withdrawal or distribution would require distribution of a secured portion of the Account, the amount of the loan that would become unsecured shall be charged against such withdrawal or distribution and paid from and upon such distribution or withdrawal.

If a Participant does not repay the amount of any loan made hereunder within the specified time, (i) the Plan Administrator shall report the default as a distribution for federal income tax purposes, and (ii) the Plan Administrator shall cause the amount of the unpaid debt (including any interest thereon) to be deducted from the secured portion of the Account, as soon as a distribution or withdrawal is legally permitted from such portion of the Account (without regard to limitations in the Plan that are more restrictive than required by the Code).  If the amount of such interest, payment or distribution is not sufficient to repay the unpaid balance of said debt, the Participant shall remain liable for said remaining debt.

	 	
(e) 

	
Loan repayments will be credited to the Participant's then current investment elections.  If the Participant ceases making contributions to the Plan, repayments will be credited pursuant to the Participant's most recent investment elections.  Notwithstanding anything to the contrary 

 

  

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herein, investment of loan repayments shall be subject to the 20% limit on a Participant’s investment of new amounts in the Stock Fund, as set forth in Section 5.3.

 

	
  

	
(f)

	
 
Loan Repayment.

 

	
  

	
(i)

	
Except as otherwise provided herein, or in (g) below, loans will be repaid by regular deduction from the Participant's paycheck from the Employer based on the amortization schedule for the loan; provided, however, that a Participant may repay a loan in full at any time in accordance with procedures established by the Plan Administrator.

	
  

	
(iii)

	
Loan repayments may be suspended under this Plan as permitted under Section 414(u)(4) of the Code with respect to military service; provided, however, that such loan repayments may continue to be made as permitted by Section 9.7(g)(ii)(3).

	
  

	
(g)

	
Failure to Repay; Exceptions.

	
  

	
(i)

	
Except as provided in subsection (g)(ii) below, in the event a Participant fails to make loan payments in accordance with subsection (f) above, upon the earlier of a Participant's:

	 	
(1) 

	
failure to make up any delinquent loan payments during a legally permissible grace period provided by the Company; or

	
  

	
(2)

	
thirty (30) days after Termination from Service;

 

the Participant's entire loan balance will become immediately due and payable.

	
  

	
(ii)

	
Notwithstanding (g)(i) above, a Participant who:

 

	 	
(1) 

	
terminates employment upon or after attaining age 45 with ten (10) Years of Vesting Service and with a combined age and Years of Vesting Service totaling at least 65;

 

	 	
(2) 

	
becomes covered by the Employer's long-term disability plan;

 

	 	
(3) 

	
takes an unpaid Authorized Leave of Absence, including military leave;

 

  

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(4) 

	
becomes eligible, on or after such date, to receive job elimination benefits under the Company’s severance and salary continuation benefits plan or similar benefits under an agreement with the Employer; or

	 	
(5) 

	
if the Company so elects with respect to all Participants continuing employment with a particular successor company after a sale or outsourcing, terminates employment in connection with such sale our outsourcing and continues employment with the successor company; or

	 	
(6) 

	
has terminated his employment with the Employer;

 

may elect to pay off the entire loan balance at once or to make monthly loan payments in accordance with rules established by the Plan Administrator.

	
  

	
(h)

	
No loan shall be made in the event that the interest rate required to be charged pursuant to Section 9.7(c) would violate any applicable usury law.

	
  

	
(i)

	
A Participant shall not be granted a withdrawal and a loan under the Plan in the same month.  If a Participant requests both a withdrawal and a loan in the same month, the loan request will be considered to have been made first, and the withdrawal request will become effective in the next month.

	
  

	
(j)

	
All loan repayment schedules shall provide for substantially level amortization of the loan.

	
  

	
(k)

	
The Plan Administrator shall administer this Section 9.7 pursuant to the foregoing and such additional rules and regulations as it shall promulgate in accordance with Section 72(p) of the Code and Department of Labor Regulations Section 2550.408b-1.

 

  

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ARTICLE X - PAYMENT OF DEATH BENEFITS

10.1         Source of Death Benefits.  Death benefits are payable from or with assets held by the Trustee on behalf of the deceased Participant as of the date on which the Plan Administrator receives written notification of the Participant's death in a manner acceptable to the Plan Administrator; provided, that the death benefit will be available to a Participant's Spouse or other Beneficiary, as applicable, within ninety (90) days of the receipt of notice of death.  This Article X applies only if the Participant's death precedes the commencement of distribution of a Participant's vested Account Value under Section 8.6.  If a Participant dies after commencing distribution of his or her vested Account Value under Section 8.6, death benefits shall be payable only as provided under the form of distribution in which the Participant's vested Account Value is being paid.

10.2         Determinations of Values and Cash-Outs.  The death benefit under this Article X shall be equal to the vested Account Value held by the Trustee for the Beneficiary of a deceased Participant as of the date of distribution to the Beneficiary.  Notwithstanding any other provision of the Plan to the contrary, if a Participant's vested Account Value has not at the time of any distribution exceeded five thousand dollars ($5,000) (or such greater amount as permitted under the Code), upon a Participant's death, or on an annual basis thereafter, such vested Account Value will be immediately distributed to the Participant's Beneficiary(ies) in the form of a lump sum.

10.3         Death Benefit.  Each Participant shall have a right to designate one or more Beneficiaries to receive any death benefits that may become payable under the Plan with respect to all Accounts by filing with the Plan Administrator the forms specified for this purpose.  Notwithstanding the provisions of Section 1.10, the Beneficiary of a Participant who is married to his or her Spouse immediately before death shall be the Participant's Spouse.  The Beneficiary of a Participant who has no Spouse immediately before death shall be as set forth in Section 1.10.

10.4         Proof of Death.  The Trustee may rely exclusively on the Plan Administrator's determination of the fact of death of a Participant and of the right of any person to receive all or part of any death benefit.  In making such determination, the Plan Administrator may require such proof of death and other evidence as the Plan Administrator deems to be necessary.  The Plan Administrator's determination shall be conclusive upon any person having or claiming any right to death benefits as a consequence of the death of the Participant.

10.5         Minimum Required Distributions.  Except as provided in Section 10.7, the provisions of Section 8.12 shall apply to death distributions made pursuant to this Article X.  For purposes of this Article X, and in accordance with the applicable regulations, any death benefit payable to a Participant’s child shall be treated as if it had been paid to such Participant’s surviving Spouse if such amount will become payable to such surviving Spouse 

 

  

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upon such child’s reaching the age of majority (or upon the occurrence of such other event as may be designated by the applicable regulations).

10.6    Form of Payment.  All death benefits attributable to Accounts shall be made in the form of a lump sum distribution no later than the last day of the calendar year following the calendar year in which the Participant's death occurs.  The Five Year Rule shall apply for the purpose of determining required minimum distributions, notwithstanding that the Plan does not permit such full five year period to apply.

 

 

 

  

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ARTICLE XI - TERMINATION OF PLAN

11.1         Company's Right to Terminate.  While the Company intends this Plan to continue indefinitely, the Company reserves the right to terminate the Plan or to discontinue contributions from time to time to any extent that it may, in its sole and complete discretion, deem advisable.  No such termination shall have the effect of diverting any part of the principal or income of the Trust Fund for any purpose other than for the exclusive benefit of Participants or their Beneficiaries or of reducing a Participant's or Beneficiary's interest in the Trust Fund.  The Plan as a whole shall be terminated and all contributions shall be discontinued only pursuant to a resolution of the Board of Directors of the Company.  The Plan may be terminated in part or contributions may be discontinued in part in the same manner as is prescribed for the adoption of amendments to the Plan.  Any total or partial termination or discontinuance of contributions shall become effective upon the date specified in the resolution of the Board of Directors or a written instrument of termination.

11.2         Effect on Employer and Trustee.  The Employer shall make no further contributions after termination of the Plan.  The Trust shall be continued in existence, however, as long as the Trustee deems it to be necessary for the effective discharge of any remaining duties by the Trustee.

11.3         Effect on Participants. Upon termination in whole or in part of the Plan, the Plan Administrator shall make an allocation in the manner prescribed by Section 6.3, after payment of any expenses properly charged to the Trust Fund and adjustments for capital gain and loss with respect to the Stable Value Option.  The Plan Administrator shall then direct the Trustee to distribute to the Participants for whom the Plan is being terminated all assets remaining in the Trust Fund to the extent such distributions are permissible under the Code and applicable Treasury Regulations, including Treas. Reg. §1.401(k)-1(d)(4)(i).

11.4         Termination of Participation by a Participating Company.  Any Participating Company may withdraw from participation in the Plan at any time by delivering to the Plan Administrator certified copies of a resolution to that effect adopted by its board of directors; provided that a Participating Company shall cease to be a Participating Company, without further action, upon ceasing to be an Affiliate of the Company.

 

  

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ARTICLE XII - AMENDMENT OF THE PLAN

12.1         Procedure for Amendment.  Subject to the restrictions of Section 12.2, the Company reserves the right to amend this Plan from time to time in any respect.  Any amendments to this Plan by the Company shall be in writing and executed by the Chairman or the President; provided, however, that to the extent that the Chairman or the President has delegated the authority to amend the Plan, directly or indirectly, to any designated individual, any such amendment shall be made in writing and executed by such designated individual.  Notwithstanding the foregoing, any amendment which is made to comply with a change in law or to secure the approval of the Plan or an amendment by the Internal Revenue Service, which does not materially increase the cost of the Plan to the Employer, and which involves no significant choice regarding the manner in which such change shall be implemented may be executed by any Vice President or Assistant Vice President charged with responsibility for the administration of the Plan.

12.2         Restrictions.

	
  

	
(a)

	
Except as provided in Section 4.1, no amendment or act shall result in the distribution or diversion of any part of the assets of the Trust Fund for purposes other than the exclusive benefit of Participants or their Beneficiaries.

	
  

	
(b)

	
No amendment or modification of the Plan shall deprive any Participant or Beneficiary retroactively of benefits accruing from contributions made before such amendment or modification unless the amendment or modification is necessary to conform the Plan to any law, governmental regulation or ruling, or to enable the Plan and Trust to satisfy the requirements of Sections 401 and 501 of the Code.

	
  

	
(c)

	
No amendment shall reduce the vested percentage of any Participant below the percentage in effect for such Participant as of the later of (i) the effective date of the amendment or (ii) the date of adoption of the amendment.  If an amendment changes the vesting provision under the Plan, in accordance with applicable regulations, any Participant may choose to have the amount of his or her vested benefit determined on the basis of the Plan provisions in effect immediately before the effective date of the amendment.

	
  

	
(d)

	
No amendment shall affect the rights, duties or responsibilities of the Trustee without its prior written consent.  The Trustee shall receive copies of any amendment promptly following execution of the same.

 

  

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ARTICLE XIII - MANAGEMENT OF THE PLAN

13.1         Allocation of Responsibility.  The following entities shall have only those powers, duties, responsibilities and obligations as are specifically given them under this Plan and Trust.

	
  

	
(a)

	
Company.  (i) The Company is the Plan sponsor, and shall have the power to amend or terminate the Plan as provided herein, but except to as provided in (ii) below, or in (b) below to the extent the Company is the Plan Administrator, the Company is not a fiduciary with respect to the Plan.

	
  

	
(ii) The Company, acting by its Senior Vice President for Human Resources, shall have the power and sole authority to appoint and remove the Trustee, and shall have the duty to periodically review the performance of the Benefit Finance Committee and the Trustee on an annual basis, but shall not have any responsibility to perform or oversee the powers or duties of the Benefit Finance Committee or the Trustee on a day to day basis or to provide such entities with information with respect to the performance of their respective roles.  The Company, acting by its Senior Vice President for Human Resources, shall not be a fiduciary with respect to the Plan except (A) to the limited extent that the performance of the appointment, removal and review functions set forth herein are deemed to be fiduciary actions, and (B) to the extent the Company is the Plan Administrator pursunt to (b) below.

	
  

	
(b)

	
Plan Administrator.  The Plan Administrator shall be the Company, and shall be a named fiduciary with respect to the Plan, with the sole responsibility for the administration of the Plan as set forth herein, but shall not as Plan Administrator have any responsibility for the duties assigned herein to the Benefit Finance Committee and Trustee.

	
  

	
(c)

	
Benefit Finance Committee.  The Benefit Finance Committee shall be appointed by the Company, acting by its Senior Vice President for Human Resources.  The Benefit Finance Committee shall be a named fiduciary with respect to the Plan, with the duties set forth in Section 5.7 hereof.

	
  

	
(d)

	
Trustee.  The Trustee shall be appointed by the Company, acting by its Senior Vice President for Human Resources, and shall have the sole responsibility for the administration and accounting of the Trust Fund as described herein.

 

  

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(e)

	
No Other Fiduciaries. Other than the Plan Administrator, the Benefit Finance Committee and the Trustee, and the Company to the limited extent set forth in (a) (ii) above, there are no other fiduciaries with respect to the Plan.  Without limitation, neither the Board of Directors or any member thereof, nor the Company, nor any Employer shall be a fiduciary with respect to the Plan.

	
  

	
(f)

	
Reliance on Co-Fiduciary.  Each Fiduciary warrants that any directions given, information furnished or action taken by it shall be in accordance with the provisions of the Plan and Trust, as the case may be, authorizing or providing for such direction, information or action.  Furthermore, each Fiduciary may rely upon any such direction, information or action of another Fiduciary as being proper under the Plan and Trust and is not required under the Plan and Trust to inquire into the propriety of any such direction, information or action unless such Fiduciary has reason to believe an impropriety exists.  It is intended under the Plan and Trust that each Fiduciary shall be independently responsible for the proper exercise of its own respective powers, duties, responsibilities and obligations under the Plan and Trust and, in the absence of knowledge, shall not be responsible for any act or failure to act of another Fiduciary.  No Fiduciary guarantees the Trust Fund in any manner against investment loss or depreciation in asset value.

 

13.2           Powers and Duties of the Plan Administrator.  The Plan shall be administered by the Plan Administrator.  The Plan Administrator may delegate to any person or entity any powers or duties of the Plan Administrator under the Plan.  To the extent of any such delegation, the delegatee shall become the named fiduciary responsible for administration of the Plan (if the delegate is a fiduciary by reason of the delegation), and references to the Plan Administrator shall apply instead to the delegate.  The Plan Administrator may be removed at any time without cause.

Compensation of the Plan Administrator and all usual and reasonable expenses of administration, including but not limited to actuarial, legal and accounting fees, may be paid in whole or in part by the Employer, and any expenses not paid by the Employer shall be paid by the Trustee out of the principal or income of the Trust Fund and shall be allocated in accordance with Section 14.5.

	
  

	
(a)

	
The Plan Administrator shall have such duties and powers as may be necessary to discharge its duties hereunder, including, but not by way of limitation, the following:

	
  

	
(i)

	
to construe and interpret the terms and intent of the Plan, decide all questions of eligibility and determine the amount, manner and time of payment of any benefits hereunder except that the Plan 

 

  

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Administrator shall have no power to add to, subtract from or modify any of the terms of the Plan, or to change or add to any benefits provided by the Plan, or to waive or fail to apply any requirements of eligibility for a benefit under the Plan;

 

	
  

	
(ii)

	
to prescribe procedures to be followed and information to be supplied by Participants or Beneficiaries filing applications for benefits;

	
  

	
(iii)

	
to prepare and distribute in writing, in such manner as the Plan Administrator determines to be appropriate, information explaining the Plan;

	
  

	
(iv)

	
to receive from the Company as Plan sponsor, each Employer, the Trustee, Participants and Beneficiaries such information as shall be necessary for the proper administration of the Plan;

	
  

	
(v)

	
to furnish to the Company as Plan sponsor and each Employer, upon request, such annual reports with respect to the administration of the Plan as are reasonable and appropriate;

	
  

	
(vi)

	
to receive, review and keep on file (as it deems convenient or proper) reports of the financial condition, and of the receipts and disbursements, of the Trust Fund from the Trustee;

	
  

	
(vii)

	
to appoint or employ individuals to assist in the administration of the Plan and any other agents it deems advisable, including legal and actuarial counsel;

	
  

	
(viii)

	
to defend or initiate any lawsuit on behalf of the Plan or the Participants and Beneficiaries without the consent of any Employer if the Plan Administrator deems it reasonably necessary to protect the Plan or its Participants and Beneficiaries.  Legal fees and costs of litigation shall be borne by the Trust Fund to the extent not paid by the Company or any Employer; and

	
  

	
(ix)

	
to implement a loan or other borrowing on behalf of the Trustee as directed by the Company.

	
  

	
(b)

	
If there shall arise any misunderstanding or ambiguity concerning the meaning of any of the provisions of the Plan arising out of the administration thereof, the Plan Administrator shall have the sole right to construe such provisions in its discretion.  Subject to the limitations of the Plan and applicable law, the Plan Administrator may make such rules 

 

  

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and regulations as it deems necessary or proper for the administration of the Plan and the transaction of business hereunder.  All rules and decisions of the Plan Administrator shall be uniformly and consistently applied to all Participants in similar circumstances.  When making a determination or calculation, the Plan Administrator shall be entitled to rely upon information furnished by a Participant or Beneficiary, the Employer, the legal counsel of the Employer, or the Trustee.

 

	
  

	
(c)

	
The decisions of the Plan Administrator with respect to any matter it is empowered to act upon shall be made by it in its sole discretion based on the Plan documents and shall be final, conclusive and binding on all persons.  Further, findings of fact by the Plan Administrator as to matters relating to a Participant's employment record are binding on the Participant (or the Participant’s Beneficiary) for the purposes of the Plan.

13.3         Notices and Elections of Participants.

	
  

	
(a)

	
All persons shall be required to furnish information and proof to the Plan Administrator as to any and all facts that the Plan Administrator may reasonably require concerning any person affected by the terms of the Plan (including date of birth and satisfactory proof, by personal endorsement on benefit checks or otherwise, of the survival of any payee to the due date of any payment).

 

Each terminated Participant shall inform the Plan Administrator of any changes of address.  All notices to any persons from the Plan Administrator will be sent to the last known address of such person, and there shall be no further obligation to such person in the event any such communication is not received by the person.

There will be no obligation to make any payment to a payee under the Plan until proof is received that the payee was living on the due date of the payment.  If such proof is not received within seven years of the due date of the payment, the obligation to make any payments under the Plan shall be limited to the benefit that would be payable had the payee died immediately before such due date.  Notwithstanding any other provision of the Plan to the contrary, if, after the expiration of such period, it is established that the payee was living on the due date of such payment, any right to payments established by such proof, less any amounts paid as a death benefit, shall be reinstated.

If any fact relating to a Participant or any other payee has been misstated, the correct fact may be used to determine the amount of the benefit payable to the Participant or to such other payee.  If 

 

  

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overpayments or underpayments have been made because of such incorrect statement, the amount of any future payments shall be adjusted appropriately.

 

	
  

	
(b)

	
Any request, notice or election to be filed with the Plan Administrator by a Participant or Beneficiary shall be filed in the manner required by the Plan Administrator.  A request, notice or election by a Participant or Beneficiary shall be effective only if made on such form or in such manner required by the Plan Administrator.

13.4         Accounts and Records.  The Plan Administrator shall maintain such accounts and records regarding the fiscal and other transactions of the Plan and such other data as may be required to carry out its functions under the Plan and to comply with all applicable laws.  The Plan Administrator shall hold the promissory notes and other instruments documenting or pertaining to Participant loans made pursuant to Section 9.7 as custodian therefore.

13.5         Compliance with Applicable Law.  The Plan Administrator shall be responsible for the preparation and filing of any required returns, reports, statements or other filings with appropriate governmental agencies.  The Plan Administrator shall also be responsible for the preparation and delivery of information to persons entitled to such information under any applicable law.

13.6         Liability.  The functions of the Plan Administrator, Trustee and the Benefit Finance Committee under the Plan are fiduciary in nature and each shall be carried out solely in the interest of the Participants and other persons entitled to benefits under the Plan for the exclusive purpose of providing the benefits under the Plan (and for the defraying of reasonable expenses of administering the Plan).  Each such entity or person shall carry out its respective functions in accordance with the terms of the Plan with the care, skill, prudence and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of a like character and with like aims.  No members of the Benefit Finance Committee and no officer, director, or Employee shall be liable for any action or inaction with respect to his or her functions under the Plan unless such action or inaction is adjudicated to be a breach of the fiduciary standard of conduct set forth above.  Further, no Employee nor any member of the Benefit Finance Committee shall be personally liable hereunder merely by virtue of any instrument executed by him or her or on his or her behalf as the Plan Administrator or as a member of such committee.  Notwithstanding the foregoing, under no circumstances shall the Plan Administrator, Trustee or Benefit Finance Committee be liable for any indirect, consequential or special damages with regard to their respective responsibilities under this Plan and Trust.

13.7         Indemnification.  To the fullest extent permitted by law, the Plan (and, to the extent ERISA prohibits indemnification by the Plan, the Company and each Employer) shall indemnify officers and directors of the Employer (and any Employee involved in carry­ing out the functions of the Employer under the Plan) and each member of the Benefit Finance 

 

  

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Committee against any expenses, including attorneys' fees and expenses and amounts paid in settlement (to the extent approved by the Employer) of a liability, which are reasonably incurred in connection with any legal action to which such person is a party by reason of his or her duties or responsibilities with respect to the Plan.

13.8         Authorization of Payments.  The Plan Administrator shall issue directions to the Trustee concerning all benefits and expenses that are to be paid from the Trust Fund pursuant to the provisions of the Plan and warrants that all such directions are in accordance with this Plan.  In the discretion of the Plan Administrator, any distribution of benefits to or on behalf of a Participant may be made directly to the person specified by the Plan Administrator or deposited in a checking account maintained by the Plan Administrator for the purpose of making payments to the person or persons entitled to such benefit payments under the Plan, or to an account maintained by some other entity which the Plan Administrator may designate to make payments.

13.9         Notices to Trustee.  Any Vice President or Assistant Vice President charged with responsibility for the administration of the Plan shall notify the Trustee of the names and titles of those persons authorized to communicate with the Trustee by and on behalf of the Plan Administrator and issue directions to the Trustee on behalf of the Plan Administrator.  As otherwise specified herein, the Trustee shall be entitled to rely upon all directions and communications from such persons and only such persons, unless and until the Trustee is notified to the contrary by any Vice President or Assistant Vice President charged with responsibility for the administration of the Plan.  To the extent that the Plan provides that the Trustee shall act only upon or pursuant to a direction of the Company, any such direction of the Company shall be communicated to the Trustee by those person authorized to communicate with the Trustee on behalf of the Plan Administrator; provided, however, that when such persons are communicating with the Trustee on behalf of the Company they shall do so as agents for the Company.

 

 

  

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ARTICLE XIV - TRUSTEE

 

14.1     Accounting.  The Trustee shall keep an accurate and detailed account of all receipts, investments, disbursements and other transactions hereunder.  All accounts, books and records relating to such transactions shall be open to inspection and audit at all reasonable times by any person designated by the Company or the Plan Administrator.  Within seventy-five (75) days following the end of each Plan Year and within seventy-five (75) days after any removal or resignation of the Trustee as provided in Section 14.7, the Trustee shall file with the Plan Administrator a written account setting forth (a) the transfer of funds to the Trust Fund; (b) the gains, or losses, realized by the Trust  Fund upon sales or other disposition of the assets; (c) the increase, or decrease, in the value of the Trust Fund; (d) the transfer of funds from the Trust Fund; and (e) such further reasonable information as the Employer and/or Plan Administrator may request, as agreed to by the Trustee during such Plan Year or during the period from the end of the last Plan Year to the date of such removal or resignation, and setting forth the current value of all Trust assets and liabilities.  Upon the expiration of ninety (90) days from the date of filing such annual or other accounts, the Trustee shall be forever released and discharged from all liability and accountability with respect to the propriety of its acts and transactions shown in such account, except with respect to any such acts or transactions as to which the Plan Administrator or the Company shall file with the Trustee written objections within such 90-day period.

 

14.2     Trustee's Responsibilities Limited.  The Trustee may rely on the representation of the Plan Administrator that the Plan and Trust hereby created are qualified within the meaning of Section 401(a) of the Code, and the Trustee shall have no obligation to inquire into such continuing qualification.

The Trustee shall not be responsible for administration of the Plan and shall not be obliged to determine whether any particular instruction or direction of the Plan Administrator regarding distribution or any other matter relating to Plan administration accords with the terms and conditions of same.  Neither shall the Trustee be obliged to collect contributions due under this Plan, to determine whether contributions are in accordance therewith, or to account for allocations to Participants.  The investment and management of the Trust Fund assets shall be determined in accordance with Article V and Section 14.8.  The Trustee shall not invest, sell, exchange, encumber or otherwise act with respect to the assets without specific direction of the Plan Administrator pursuant to the direction of a Participant.  Without specific direction from the Company, the Trustee shall not borrow or authorize borrowing on behalf of the Trust Fund or advance cash for any purpose.  The Trustee shall not establish a new Investment Fund, or implement any change with respect to an Investment Fund without specific direction of the Company.  The Trustee shall incur no liability by complying with any such direction and shall be under no duty or obligation to review, evaluate or reevaluate the investments made pursuant to such directions.

 

  

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Notwithstanding anything in the Agreement to the contrary, the Trustee shall not be responsible or liable for its failure to perform under this Agreement or for any losses to the Trust Fund, resulting from any event beyond the reasonable control of the Trustee, its agents or subcustodians, including but not limited to nationalization, strikes, expropriation, devaluation, seizure, or similar action by any governmental authority, de facto or de jure; or enactment, promulgation, imposition or enforcement by any such governmental authority of currency restrictions, exchange controls, levies or other charges affecting the Fund’s property; or the breakdown, failure or malfunction of any utilities or telecommunications systems (but not including the Trustee’s own internal, proprietary systems); or any order or regulation of any banking or securities industry including changes in market rules and market conditions affecting the execution or settlement of transactions; or acts of war, terrorism, insurrection or revolution; or acts of God; or any other similar event.  This Section shall survive the termination of this Agreement.

 

14.3        Information and Receipts.  The Plan Administrator shall accompany each transfer of contributions to the Trust Fund with such information as the Trustee may reasonably require for purposes of discharging its duties.

 

14.4        Administrative Services.  The Trustee may appoint one or more administrative agents or custodians or contract for the performance of such administrative and service functions as it may deem necessary or desirable for the effective operation of the Trust and Plan.

 

14.5        Expenses.  All expenses chargeable to the Trust Fund hereunder shall be paid by the Trust Fund; provided that the Company may direct in its sole discretion that all or certain expenses chargeable to the Trust Fund shall be paid by the Employer.  To the extent, however, that funds are available from commissions, 12b-1 fees or other fees chargeable in connection with investments, expenses shall be charged first against such available funds, and remaining expenses shall be paid from the Trust Fund, unless paid by the Employer as provided above.  Expenses chargeable to the Trust Fund shall include but not be limited to the following:

 

	 	
(a)

	
commissions and other sales or service charges;

 

	 	
(b) 

	
taxes of any kind;

 

	 	
(c) 

	
administrative and clerical costs;

 

	 	
(d) 

	
legal fees;

 

	 	
(e) 

	
the Trustee's fee; and

 

	 	
(f) 

	
the expenses described in Section 13.2.

 

Generally, expenses paid from the Trust Fund shall be allocated to the Accounts of Participants in proportion to Participants’ Account Values or by a per capita fee, as determined by the Company and announced to Participants from time to time; provided, 

 

  

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however, that expenses may be paid from forfeitures held in the Trust Fund to the extent available.  Investment fees and expenses shall be charged to the Accounts of Participants who have invested in the applicable Investment Fund unless paid by the Employer as provided above, provided that expenses of any Investment Fund to be charged to Participants shall be charged to all Participants investing in that Investment Fund on the same basis. To the extent funds available from commissions, 12b-1 fees or other fees chargeable in connection with investments in Investment Funds exceed the costs of administering the Plan which are permitted by law to be paid from Plan assets and have not otherwise been paid from Plan assets, the Company shall, in its discretion, take one or more of the following courses of action with respect to any excess:  (i) use the excess to provide additional services to the Plan; (ii) allocate the excess to the Accounts of Participants with balances in such Investment Funds, pro rata based on the balances in such Investment Funds; or (iii) waive the excess fees.

14.6     Compensation of Trustee. The Trustee shall be compensated from the Trust Fund or, at the direction of the Company, by the Employer for its services by payment of the Trustee's fee, the amount of which shall be agreed upon from time to time between the Company and the Trustee.  The Company acknowledges that, as part of the Trustee’s compensation, the Trustee may earn interest on balances, including without limitation, disbursement balances and balances arising from purchase and sales transactions.

If the Trustee advances cash for any purpose, pursuant to Section 14.2, the Trustee shall be entitled to collect from the Trust Fund sufficient cash for reimbursement, and if such cash is insufficient, dispose of the assets of the Trust Fund to the extent necessary to obtain reimbursement.  To the extent that the Trustee advances funds to the Trust Fund for disbursements or to effect the settlement of purchase transactions, the Trustee shall be entitled to collect from the Trust Fund an amount equal to what would have been earned on sums advanced (an amount approximating the “federal funds” interest rate).

14.7     Resignation or Removal of Trustee.  The Trustee may resign as Trustee at any time by providing the Company with written notice of the resignation.  Upon receipt of such notice the Company shall forthwith appoint a successor Trustee who shall notify the Trustee in writing that it has accepted the appointment as successor Trustee.  Upon receiving such notice of acceptance, the Trustee may first reserve and liquidate such assets as are necessary for the payment of its compensation and expenses and for the payment of any liabilities involving the Trustee.  It shall then transfer to the successor Trustee the remaining assets of the Trust Fund and all records pertinent thereto.

 

If a successor Trustee is not appointed within thirty (30) days after the giving of notice or removal, the Trustee may apply to a court of competent jurisdiction for the appointment of a successor.  The Trustee shall be entitled to reimbursement from the Trust for all expenses incurred by it in connection with the settlement of its accounts and the transfer and delivery of the Trust Fund to its successor.  If the Trustee is removed, it shall be entitled to full compensation as if the Trust Fund had terminated while it was still acting.  If the Trustee resigns, it shall be entitled to compensation then accrued but unpaid.

 

  

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Except for removal for cause, the Company may remove the Trustee only by first designating a successor Trustee and by providing the Trustee with no less than sixty (60) days' notice of the removal.  The removal shall not be effective until the Trustee is notified in writing by the successor Trustee that it has accepted the appointment as successor.  In such case the Trustee, after first receiving and liquidating such assets as may be necessary for the payment of its compensation and expenses and for the payment of any liabilities involving the Trustee, shall transfer to the successor Trustee the remaining assets of the Trust Fund and records pertinent thereto.

14.8        Voting or Tender of Stock.

	 	
(a)

	
Each Participant shall be considered a named fiduciary for the limited purpose set forth in this Section and shall have the right, based upon the Stock held in the Stock Account attributable to the Participant's Account, to direct the Trustee in writing as to the manner in which to vote such shares or to respond to a tender or exchange offer for such Stock, and the Trustee shall vote or tender or not tender such Stock for each Participant's Account based upon such instructions.  Information relating to the purchase, holding, and sale of Stock, and the exercise of voting, tender and similar rights with respect to such Stock by Participants shall be maintained in accordance with procedures designed to safeguard the confidentiality of such information, except to the extent necessary to comply with Federal laws or state laws not preempted by ERISA.  The Company shall be responsible for ensuring that (i) such procedures are sufficient to safeguard the confidentiality of such information, (ii) such procedures are followed, and (iii) an independent fiduciary is appointed to carry out activities relating to any situations that the Company determines involve a potential for undue employer influence upon Participants with regard to the direct or indirect exercise of shareholder rights.

	 	
(b)

	
The Trustee shall utilize its best efforts to distribute or cause to be distributed in a timely fashion to each Participant such identical written information (if any), and only such information, as will be distributed to stockholders of the Company in connection with any such vote or tender or exchange offer and a voting or tender or exchange offer instruction form for return to the Trustee or its designee.  In the event that the Trustee determines that the Trustee is required pursuant to ERISA to provide Participants with additional information or guidance not previously provided to all other stockholders, the Trustee shall notify the Company in advance of providing such additional information to Participants.  The notice to the Company shall be reasonably calculated to allow the Company an opportunity to determine whether it must provide such additional information to other stockholders at the same 

 

  

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time it is provided to Participants or whether the Company must take any other action with respect to such information.

 

	
  

	
(i)

	
The voting or offer instruction form shall show the number of shares of Stock attributable to the Participant's Account and shall provide a means for the Participant to (A) instruct the Trustee how to vote or whether or not to tender or exchange such shares and (B) specify the Investment Fund under the Plan in which the proceeds of any sale shall be invested in the event such shares are sold pursuant to a tender offer.

	
  

	
(ii)

	
Such form shall also advise each Participant in the Stock Account (A) that voting or tender or exchange instructions provided to the Trustee shall be held in strict confidence and shall not be divulged or released to any other person, including any officer or Employee of the Company; (B) the manner in which the Trustee shall vote or tender or exchange shares of Stock as to which timely instructions were not received by the Trustee, and (C) that in the event a Participant's Stock is sold and the Participant has not specified the Investment Fund in which the proceeds shall be invested, such proceeds shall be invested in the Stable Value Option until a contrary investment election is made by the Participant pursuant to the Plan.

	
  

	
(c)

	
Upon receipt of such instructions, the Trustee shall vote or tender or not tender (or withdraw from tender) or exchange such Stock in accordance with such instructions, and the Trustee shall vote or tender or not tender (or withdraw from tender) or exchange any Stock as to which timely instructions were not received by the Trustee in the same proportion as the Trustee votes or tenders or exchanges any Stock for which instructions were received, unless the Trustee determines in its sole discretion that voting or tender in such manner is not consistent with ERISA, in which case the Trustee shall determine in its sole discretion the manner in which or the extent to which the Trustee shall vote or tender or exchange any Stock for which instructions were not timely received.  Instruction forms received from the Participant shall be retained by the Trustee and shall not be provided, or the instructions divulged, to the Company or to any officer or Employee thereof or to any other person.

	
  

	
(d)

	
In implementing the foregoing procedures, the Trustee will act fairly, in the best interests of each Participant, and in a manner that will not impose undue pressure on any Participant as to the voting or tender or exchange offer instructions he or she should give to the Trustee.  An 

 

 

  

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instruction to the Trustee to tender or exchange Stock shall not be deemed to constitute withdrawal or suspension from the Plan or forfeiture of any portion of a Participant's interest in the Plan.  In the case of a tender or exchange, Accounts shall be adjusted appropriately to reflect the Trustee's execution of Participants' instructions.

	
  

	
(e)

	
To the extent practicable and permitted by applicable law, other rights with respect to holders of Stock, such as a dissenter’s right with regard to a merger or the right of a holder of Stock to join in a class action, shall be given to each Participant as a named fiduciary with respect to Stock in the Stock Account attributable to the Participant’s Account, so that the Participant, rather than the Trustee, may exercise discretion with respect to such rights.  The Trustee and the Company may establish appropriate rules, analogous to the rules in this Section with respect to voting and tender, and may impose reasonable restrictions on Participants, in order to effectuate the intent of the preceding sentence.

 

14.8A      Voting With Respect to Investment Funds Other Than the Stock Account.  With respect to Investment Funds other than the Stock Account, the Company shall be responsible for proxy voting and shall direct the Trustee in writing as to the manner in which to vote the shares of the applicable Investment Fund; provided, however, that if the Company determines that it has a conflict of interest with respect to any such vote, then such vote shall be accomplished by applying the procedures set forth in Section 14.8 as if the shares of the Investment Fund in any Participant’s Account were Stock held in the Stock Account attributable to such Participant’s Account.

14.9         Indemnification by Employer.  To the fullest extent permitted by law, the Employer hereby covenants and agrees that it will at all times indemnify and hold harmless the Trustee from any and all liability that may arise in connection with this Trust and which does not arise from the negligence or willful misconduct of the Trustee.

14.10       Legal Action by Trustee.  The Trustee shall not be required to institute or engage in any legal action or to take any action other than required by this Trust, unless it expressly agrees in writing to do so and unless arrangements have been made to indemnify it fully for all expenses that may be incurred in connection therewith.

14.11       Acceptance of Trustee.  Effective upon its execution of this Trust, the Trustee accepts the Trust created hereunder and agrees to be bound by all the terms set forth herein and to hold the Trust Fund in trust.  The Trustee shall not have any duty to inquire into the administration of the Plan or actions taken by any prior trustee.

14.12       Powers of Trustee.  The Trustee in administering the Trust is authorized and empowered, subject to the provisions of Article V and this Article XIV:

 

 

  

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(a)

	
To purchase and subscribe for any securities or other property and to retain such securities and other property in trust;

 

	 	
(b)

	
To sell at public or private sale, for cash, or upon credit, or otherwise dispose of any property, real or personal; and no person dealing with the Trustee shall be bound to see to the application or to inquire into the validity, expediency or propriety of any such sale or other disposition;

	 	
(c)

	
To adjust, settle, contest, compromise and arbitrate any claims, debts, or damages due or owing to or from the Trust Fund, and to sue, commence or defend any legal proceedings in reference therein;

	 	
(d)

	
To exercise any conversion privilege subscription rights or other options pertaining to or in connection with securities or other property held by it; to consent to or otherwise participate in any reorganization, consolidation, merger or adjustment pertaining to any corporate reorganization or any other changes affecting corporate securities, to deposit any property with any committee or depositary, and to pay any assessments or other charges in connection therewith;

	 	
(e)

	
To exercise itself, or by general or limited power of attorney, any right, including the right to vote, incident to any securities or other property held by it;

	 	
(f)

	
To invest all or part of the Trust Fund in interest-bearing deposits with the Trustee, or with a bank or similar financial institution related to the Trustee if such bank or other institution is a fiduciary with respect to the Plan as defined in ERISA, including but not limited to investments in time deposits, savings deposits, certificates of deposit or time accounts which bear a reasonable interest rate;

	 	
(g)

	
To settle investments in any collective investment fund, including a collective investment fund maintained by the Trustee or an affiliate, to the extent such investments are a part of any authorized Investment Fund, and to appoint agents and sub-trustees.  To the extent that any investment is made in any such collective investment fund, the terms of the collective trust indenture shall solely govern the investment duties, responsibilities and powers of the trustee of such collective investment fund and, such terms, responsibilities and powers shall be incorporated herein by reference and shall be a part of this Agreement.  For purposes of valuation, the value of the interest maintained by the Fund in such collective investment fund shall be the fair market value of the collective investment fund units held, determined in accordance with generally recognized valuation procedures.  The Named Fiduciary expressly 

 

 

  

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understands and agrees that any such collective investment fund may provide for the lending of its securities by the collective investment fund trustee and that such collective investment fund trustee will receive compensation for the lending of securities that is separate from any compensation of the Trustee hereunder, or any compensation of the collective investment fund trustee for the management of such fund.  The Trustee is expressly authorized to settle investments in a collective fund which invests in Mellon Financial Corporation stock in accordance with the terms and conditions of the Department of Labor Prohibited Transaction Exemption 95-56 (the "Exemption") granted to the Trustee and its affiliates and to use a cross-trading program in accordance with the Exemption.  The Named Fiduciary acknowledges receipt of the notice entitled "Cross-Trading Information". 

	
  

	
(h)

	
To register any investment held in the Trust Fund in its own name or in the name of a nominee or to hold any investment in bearer form;

	
  

	
(i)

	
To employ suitable agents, accountants and counsel to pay their reasonable expenses and compensation;

	
  

	
(j)

	
To hold any part or all of the Trust Fund uninvested;

	
  

	
(k)

	
To make, execute and deliver as Trustee any and all advances, contracts, waivers, releases or other instruments in writing necessary or proper in the employment of any of the foregoing powers;

	
  

	
(l)

	
To exercise, generally, any of the powers which an individual owner might exercise in connection with property either personal or mixed held by the Trust, and to do all other acts that the Trustee may deem necessary or proper to carry out any of the powers set forth in this Article XIV or otherwise in the best interests of the Plan Participants;

	
  

	
(m)

	
The Trustee may defend or initiate any lawsuit without the consent of the Employer if the Trustee deems it reasonably necessary to protect the principal or income of any asset held by the Trust Fund.  Legal fees and costs of litigation shall be borne by the Trust Fund to the extent not paid by the Employer; and

 

	
  

	
(m)

	
To borrow on behalf of the Trust Fund upon specific direction of the Company and to authorize the Plan Administrator to implement such borrowing.

 

 

  

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(o)

	
To collect income payable to and distributions due to the Fund and sign on behalf of the Trust any declarations, affidavits, certificates of ownership and other documents required to collect income and principal payments, including but not limited to, tax reclamations, rebates and other withheld amounts; provided that the Trustee shall not be responsible for the failure to receive payment of (or late payment of) distributions with respect to securities or other property of the Fund.

14.13      Maintenance of Indicia of Ownership.  The Trustee shall not maintain indicia of ownership of any asset of the Trust Fund held by it outside the jurisdiction of the District Courts of the United States unless such holding is approved through ruling or regulations promulgated under ERISA by the Secretary of Labor.

14.14      Form of Communications.  All notices, directions and other communications to the Trustee shall be in writing or in such other form, including transmission by electronic means through the facilities of third parties or otherwise, specifically agreed to in writing by the Trustee and the Trustee shall be fully protected in acting in accordance therewith.

14.15      Insurance Contracts.

	
  

	
(a)

	
The Trustee, upon the direction of the Company, shall acquire and maintain Group Annuity Contracts to the extent any Investment Funds are maintained under a Group Annuity Contract, and upon the direction of the Plan Administrator shall acquire an insurance or annuity contract for purposes of distributing benefits.

	
  

	
(b)

	
The Trustee shall execute the application for any Contract to be applied for under the Plan.

	
  

	
(c)

	
The Trustee shall be the absolute owner of all Contracts which shall be held in the Trust.

	
  

	
(d)

	
No Insurer issuing any contract or contracts held in the Trust Fund shall be deemed to be a party to this Trust for any purpose, or to be responsible in any way for its validity, or to have any liability other than as stated in any contracts that are so issued by it.  Any Insurer may deal with the Trustee as absolute owner of any contract issued by it and held in the Trust Fund, without inquiry as to the authority of the Trustee to so act, and may accept and rely upon any written notice, instruction, direction, certificate or other communication from the Trustee believed by the Insurer to be genuine and to be signed by an officer of the Trustee and shall incur no liability or responsibility by so doing.  Any sums paid by an Insurer under any of the terms of a contract issued by it and held in the Trust Fund either to the Trustee, or, in accordance with the 

 

 

  

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direction of the Trustee to any other person or persons designated in such contract as the person or persons to whom such payment shall be made shall be a full and complete discharge of the liability to pay such sums, and the Insurer shall have no obligation to look to the disposition of any sums so paid.  No Insurer shall be required to look into the terms of this Trust or to inquire into any action of the Trustee or as to whether any action of the Trustee is authorized by the term of this Trust.

 

	
  

	
(e)

	
The Trustee shall follow directions of the Plan Administrator concerning the exercise or non-exercise of any powers or options concerning any contract held in the Trust Fund.  To the extent permitted by law, neither the Employer, the Plan Administrator nor the Trustee shall be liable for the refusal of any insurance company to issue, modify or convert any contract or contracts, to take any other action requested by the Trustee, nor be liable for the form, genuineness, validity, sufficiency or effect of any contract or contracts held in the Trust Fund, nor for the act of any person or persons that may render any such contract or contracts null and void; nor for the failure of any insurance company to pay the proceeds and avails of any such contract or contracts as and when the same shall become due and payable; nor for any delay in payment resulting from any provision contained in any such contract; nor for the fact that for any reason whatsoever any contract shall lapse or otherwise be uncollectible.  Notwithstanding any other provision of this Trust to the contrary, the Employer hereby agrees to indemnify the Trustee and hold it harmless from and against any claim or liability which may be asserted against the Trustee by reason of its acting on any direction from the Plan Administrator or failing to act in the absence of any such direction with respect to any contract or the acquisition of any contract or exercise or non-exercise of any right or option thereunder.

 

14.16      Applicability of Article XIV.  To the extent the Company enters into a separate trust agreement with a trustee that is responsible for all assets of the Plan, (a) the provisions of this Article XIV shall cease to apply to the extent of any conflict with such separate trust agreement, (b) all references in the Plan to the Trust shall include such separate trust agreement and any provisions of this Article XIV that remain applicable, and (c) all references in the Plan to the Trustee shall mean the trustee under such separate trust agreement.  Notwithstanding the foregoing, (i) to the extent another provision of the Plan cross-references any provision under this Article XIV (e.g., Section 14.5, Expenses), such provision shall continue to apply to the extent it does not conflict with the separate trust agreement, and (ii) to the extent the separate trust agreement generally refers to the provisions of the Plan, such provisions shall include the provisions of this Article XIV (e.g., Section 14.8, Voting or Tender of Stock) to the extent they do not conflict with the separate trust agreement.

 

 

  

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ARTICLE XV - CLAIMS PROCEDURES AND CERTAIN RESTRICTIONS

 

15.1         Claims Procedure.  Any denial of a claim for benefits under the Plan shall be stated in writing by the Plan Administrator and mailed or delivered electronically to the Participant or Beneficiary whose claim for benefits has been denied (“Claimant”), and shall set forth specific reasons for such denial, written in a manner calculated to be understood by such Participant or Beneficiary.  Within sixty (60) days after receiving the notification of such denial, any such Participant or Beneficiary may notify the Plan Administrator in writing of his or her desire for a review of such decision.  Upon such notification, the Plan Administrator shall schedule a review proceeding at which the Participant shall restate his or her arguments for such claim to a named fiduciary of the Plan, which unless the Plan Administrator designates another person, committee, or entity, shall be the Plan Administrator.  The Plan Administrator's decision following such hearing shall be communicated in writing or electronically to the Participant.

 

   An authorized representative of a Claimant may act on behalf of such Claimant in pursuing a benefit claim or appeal of an adverse benefit determination.  The Plan may establish reasonable procedures for determining whether an individual is an authorized representative of the Claimant before allowing the individual to act with respect to the Plan in such capacity on behalf of the Claimant.

 

   Additional terms and conditions of the Plan’s claims procedure, including but not limited to the applicable time periods regarding sending notices and making determinations, may be set forth in the Plan’s summary plan description in accordance with the applicable regulations issued by the Department of Labor pursuant to Section 503 of ERISA.

15.2         Assignment and Alienation Prohibited.  Except as provided below or otherwise under applicable law, no payee may sell, assign, discount, alienate or pledge as collateral for a loan or as a security for the performance of an obligation or for any other purpose, any payment due under this Plan; and any payment due to a payee hereunder shall be exempt from the claim of creditors of the payee to the maximum extent permitted under federal and state laws.  If the Plan Administrator determines that a Qualified Domestic Relations Order, within the meaning of Section 414(p) of the Code and as described in Section 15.3 and the Plan’s Qualified Domestic Relations Order Procedures, exists with respect to a benefit due under this Plan, the Plan Administrator may take such actions and make or authorize such payments, as it reasonably believes are consistent with the terms of such Order, the Plan and with applicable law.  Any action taken or payment made in accordance with the preceding sentence shall not be deemed to be an impermissible assignment or alienation and shall, to the maximum extent permitted by law, discharge the Plan from all liability for any benefits so paid.

15.3         Distribution Pursuant to a Qualified Domestic Relations Order.  Distribution of a Participant's benefits under this Plan shall be made to a Participant's spouse, former 

 

 

  

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spouse, child, or other dependent as required pursuant to a Qualified Domestic Relations Order as defined below.

	
  

	
(a)

	
Definition.  A Qualified Domestic Relations Order (“QDRO”) is any judgment, decree or order (including approval of a property settlement agreement) issued pursuant to the domestic relations law of a state  (including a community property law) that relates to the provision of child support, alimony payments or marital property rights to a spouse, former spouse, child or other dependent of a Participant (an “alternate payee”) and which meets the following requirements:

	
  

	
(i)

	
The order must create, assign or recognize the right of an alternate payee to receive all or part of the Participant's benefits under the Plan.

	
  

	
(ii)

	
The order must clearly specify all of the following information:

	
  

	
(1)

	
The names and last known mailing addresses of the Participant and alternate payee(s);

	
  

	
(2)

	
The amount or percentage of the Participant's benefits to be paid by the Plan to each alternate payee or the manner in which such amount or percentage is to be determined;

	
  

	
(3)

	
The number of payments or period to which the order applies; and

	
  

	
(4)

	
Each plan to which the order applies.

	
  

	
(iii)

	
The order must not provide for any type or form of benefits, or any option not otherwise provided under the Plan; and an order may provide for the commencement of benefits to an alternate payee at a time when the Participant is not yet eligible to receive a distribution under the Plan, and prior to the Participant’s “earliest retirement age” under Section 414(p) of the Code.

	
  

	
(iv)

	
The order must not provide for any increased benefits that would not otherwise be provided under the Plan.

	
  

	
(v)

	
The order must not require the payment of benefits to an alternate payee that are required to be paid to another alternate payee under another order previously determined to be a QDRO.

 

 

  

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(b)

	
Determination by Plan Administrator.  Upon receipt of any document purporting to be a QDRO, the Plan Administrator shall:  (i) promptly notify by mail the Participant and each alternate payee of the receipt of the order, giving an explanation of the procedures that will be followed by the Plan Administrator in determining whether the document is a QDRO;  (ii) within a reasonable time determine whether the document is a QDRO according to reasonable written procedures to be established pursuant to Section 13.2 and this paragraph; (iii) notify the Participant and each alternate payee of its determination.

The time period for determining the status of an order and for giving notice as required above shall be as established by the applicable regulations.

	
  

	
(c)

	
Payments Under Qualified Domestic Relations Orders.  The Plan Administrator may establish from time to time reasonable nondiscriminatory written procedures pursuant to Section 13.2 and this paragraph to facilitate orderly distribution of benefits pursuant to QDROs.

	
  

	
(i)

	
Separate Accounting During Determination Period.  During any period in which the issue of whether a document is a QDRO is being determined, the Plan Administrator shall separately account for the amounts, if any, that would be payable to any alternate payee during such period if the document is determined to be a QDRO.

	
  

	
(ii)

	
Payment Upon Determination.  The “determination period” shall be a period of eighteen (18) months beginning on the date on which the first payment would be required to be made under an Order if it is a QDRO.  If the determination that a document is a QDRO occurs after the end of the determination period, the QDRO shall only apply prospectively from the time of the determination.  In addition, if it is determined that the order is not a QDRO or if no determination is made within the determination period, any benefits payable and segregated during the determination period shall be paid to the Participant or other person(s) entitled thereto at the end of such period as if there had been no domestic relations order.

 

If the determination that a document is a QDRO occurs within the determination period, the Plan Administrator shall pay benefits payable and segregated before the determination is made to the alternate payees entitled thereto pursuant to the terms of the QDRO.

 

  

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(d)

	
Responsibility of Plan Administrator.  If the Plan Administrator acts in accordance with part 4 of Title I of ERISA, Article XV of the Plan and any administrative procedures established to carry out the provisions of this Article XV with respect to determining the qualified status of a document purporting to be a QDRO, separating amounts payable and making payments thereunder, the Plan's obligation to the Participant and each alternate payee is discharged to the extent of any payments made.

 

In the event that there is a dispute as to the qualified status of a QDRO, the Plan Administrator shall be prohibited from making payments pursuant thereto until the dispute is resolved or until expiration of the determination period.  The Plan Administrator may initiate any legal action, in state or federal court, that it deems necessary to facilitate a determination, including but not limited to filing for an injunction and seeking the modification of a document to comply with the requirements of this Section 15.3.  If an action is brought in state court and the Plan Administrator deems that the resolution of the matter is not in the best interests of the Plan, the Plan Administrator may seek a restraining order in federal court.

Notwithstanding Section 13.2 hereof, any legal expenses incurred in resolving a dispute involving the qualified status of a QDRO shall be borne by the alternate payee to the extent permissible under federal pension laws.

 

15.4        Distribution Pursuant to a Judgment, Order or Decree.  Notwithstanding Section 15.2 hereof, for all judgments, orders or decrees issued, or settlements entered into, on or after August 5, 1997:

 

A Participant’s benefits provided under the Plan may be offset by an amount that the Participant is ordered or required to pay to the Plan if:

	 	
(a)

	
the order or requirement to repay arises (1) under a judgment of conviction for a crime involving such Plan, (2) under a civil judgment (including a consent order or decree) entered by a court in an action brought in connection with a violation (or alleged violation) of part 4 of subtitle B of Title I of the Employee Retirement Income Security Act of 1974, or (3) pursuant to a settlement agreement between the Secretary of Labor and the Participant, or a settlement agreement between the Pension Benefit Guaranty Corporation and the Participant, in connection with a violation (or alleged violation) of part 4 of such subtitle by a fiduciary or any other person,

 

  

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(b)

	
the judgment, order, decree, or settlement agreement expressly provides for the offset of all or part of the amount ordered or required to be paid to the Plan against the participant’s benefits provided under the Plan, and

	 	
(c)

	
in a case in which distributions to the Participant are subject to the survivor annuity requirements of Code Section 401(a)(11), if the Participant has a spouse at the time at which the offset is to be made, the spouse has:  (1) either consented to the offset (with such consent obtained in accordance with the requirements of Code Section 417(a)) or previously elected to waive the qualified joint and survivor annuity or qualified preretirement survivor annuity, (2) been ordered or required in such judgment, order, decree or settlement to pay an amount to the Plan in connection with a violation of part 4 of subtitle B, or (3) retained the right to receive a survivor annuity form of benefit pursuant to Code Section 401(a)(11) under such judgment, order, decree or settlement.

 

 

  

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ARTICLE XVI - ADOPTION OF PLAN BY AFFILIATE

16.1         Purpose of Article.  The purpose of this Article XVI is to describe the terms and conditions under which an Affiliate may adopt, and become a Participating Company under, the Plan and Trust for the benefit of some or all of its Eligible Employees.

16.2         Adoption by Affiliate.  Any Affiliate may, with the consent of the Company, become a Participating Company under the Plan and Trust by a vote of the board of directors of the Participating Company directing that:

	
  

	
(a)

	
The Participating Company shall agree to be bound by all the provisions of the Plan and Trust in the manner set forth herein and any amendments thereto.

	
  

	
(b)

	
The Participating Company shall agree to pay its share of the expenses of the Plan and Trust as they may be determined from time to time in the manner specified herein.

	
  

	
(c)

	
The Participating Company shall agree to provide the Company, Plan Administrator, Trustee, and Benefit Finance Committee with full, complete, and timely information on all matters necessary to operation of the Plan and Trust.

16.3         Participation in the Plan.

	
  

	
(a)

	
In the event of the adoption of the Plan and Trust by an Affiliate, the Affiliate shall become a Participating Company and all the terms and condi­tions of the Plan and Trust as set forth hereunder shall apply to the participation under the Plan of such Affiliate and its Employees in the manner as set forth herein.   Notwithstanding the foregoing, the following rights are specifically reserved to the Company so long as the Company participates under the Plan:

	
  

	
(i)

	
the right to designate a Participating Company;

	
  

	
(ii)

	
the right to appoint the Plan Administrator and the members of the Benefit Finance Committee;

	
  

	
(iii)

	
the right to direct, appoint, remove, approve the accounts of, or otherwise deal with the Trustee ; and

	
  

	
(iv)

	
the right to amend or terminate the Plan and Trust.  Any such amendment, unless otherwise specified herein, shall be fully binding with respect to participation by any Participating Company; provided that this reservation shall in no event be construed to prevent any Participating 

 

 

  

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Company from terminating its participation as a Participating Company under the Plan at any time, in the manner set forth herein.

 

	
  

	
(b)

	
With respect to a Participating Company, the term “Effective Date” shall mean such date specified by the board of directors of such Participating Company and approved by the Company, in conjunction with the adoption of the Plan by the Participating Company.

 

16.4        Termination by a Participating Company; Ceasing to be an Affiliate.

	 	
(a)

	
Any Participating Company may at any time elect to terminate its participation under the Plan in the manner set forth herein subject to any unfunded liability attributable to its respective Employees.  Termination of the participation of any Participating Company shall not affect the participation in the Plan of any other Participating Company nor terminate the Plan or Trust with respect to such other Participating Companies and their Employees; provided that, if the Company shall terminate its participation in the Plan, then each remaining Participating Company shall make such arrangements and take such action as may be necessary to assume the duties of the Company in providing for the operation and continued administration of the Plan and Trust as the same pertains to the remaining Participating Companies.  Any actions under this subsection (a) shall only be taken after compliance with all applicable legal requirements.

	 	
(b)

	
In the event that a Participating Company ceases to be an Affiliate, such Participating Company shall be deemed to have terminated its participation in the Plan effective immediately, and the Employees of such Participating Company shall be treated as having incurred a Termination from Service Date effective as of the date the Participating Company ceased to be an Affiliate.

16.5         Participating Company Plan Expenses.  Each Participating Company shall be liable for and shall pay at least annually to the Company its fair share of the expenses of operating the Plan and Trust, including its share of any Trustee's fees, as determined annually by the Company.  The amount of such charges to each Participating Company shall be determined by the Company in its sole discretion; provided, that, except with respect to charges incurred solely on account of a particular Participating Company, a Participating Company shall not be charged for a greater portion of any expenses of Plan operation than the ratio that the number of Participants who are or were its Employees bears to the total of all Participants nor for a greater proportion of any Trustee's fees than the ratio that the portion of 

 

  

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the Trust Fund pertaining to Participants who are or were its Employees bears to the total Trust Fund.

16.6         Company as Agent.  With respect to all of its relations with the Trustee and Plan Administrator for the purpose of this Plan, each Participating Company shall be deemed to have designated irrevocably the Company as its agent.

16.7         Transferred Employees.  An Employee may be transferred between Participating Companies, and in the event of any such transfer, the Employee involved shall retain any accumulated Vesting Service and Accounts.  No such transfer shall constitute a Termination from Service hereunder, and the Participating Company to which the Employee is transferred shall thereupon become obligated hereunder with respect to such Employee in the same manner as was the Participating Company from whom the Employee was transferred.

 

An Employee who transfers employment from a Participating Company to an Affiliate who is not a Participating Company shall cease to be an Active Participant as of the date of such transfer, but such transfer shall not constitute a Termination from Service.  An Employee who transfers employment from an Affiliate that is not a Participating Company to a Participating Company shall commence participation in the Plan as provided under Article II, with any Vesting Service credited while an Employee of the nonparticipating Affiliate taken into account.

16.8         Contributions to Trust Fund.  All contributions made by a Participating Company, as provided for in this Plan, shall be determined separately on the basis of its respective Employee cost attributable to its respective Employees' Pay for the Plan Year and shall be paid to and held by the Trustee for the exclusive benefit of the Employees of such Participating Company and the Beneficiaries of such Employees, subject to all terms and conditions of this Plan.  The Plan Administrator shall keep separate books and records concerning the affairs of each Participating Company hereunder and as to the accounts and credits of the Employees of each Participating Company.  The Trustee may, but need not, register insurance company contracts so as to evidence that a particular Participating Company is the interested Employer hereunder, but in the event an Employee transfers from one Participating Company to another, the employing Employer shall immediately notify the administrator thereof.

16.9         Common Procedures and Rules.  The Company shall have authority at all times upon notice duly given, to make any and all necessary common rules or regulations, which shall be binding upon all Participating Companies or to expedite and effectuate the common purposes of this Article XVI.  The decisions of the Company, the Trustee, the Plan Administrator, or the Benefit Finance Committee shall be binding on all Participating Companies.

 

 

  

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16.10       Contributions by Participating Employer.  Contributions by a Participating Company shall be made based on the Plan Year and shall be made for its fiscal year which is coincident with or ends within the Plan Year as designated in Section 1.55.

 

 

  

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ARTICLE XVII - PROVISIONS RELATING TO TOP-HEAVY PLAN

17.1         Applicability.  The provisions of this Article XVII shall apply to any Plan Year if, as of the applicable Determination Date, the Plan constitutes a Top-Heavy Plan.

17.2         Definitions.  The following definitions apply to this Article XVII and unless otherwise specifically stated in another section hereof do not apply to any other section of the Plan.

	
  

	
(a)

	
Determination Date.  With respect to each Plan Year, the Determination Date shall be the final day of the immediately preceding Plan Year; provided, however, that with regard to the Plan's initial Plan Year the “Determination Date” shall be the last day of the first Plan Year.

	
  

	
(b)

	
Key Employee.  Key Employee shall mean any Employee who, at any time during the Plan Year as of which a determination is made or any of the four (4) preceding Plan Years, is (in accordance with Section 416(i) of the Code and the regulations promulgated thereunder):

	
  

	
(i)

	
an officer of an Employer or any Affiliate whose annual compensation from the Employer and all Affiliates during any such Plan Year exceeds $165,000 (as adjusted under Section 416(i)(1) of the Code for Plan Years beginning after December 31, 2012); provided, that no more than fifty (50) Employees (or, if lesser, the greater of three (3) or ten (10) percent of the Employees) shall be treated as officers;

	
  

	
(ii)

	
an Employee who owns (or is con­sidered as owning within the meaning of Section 318 of the Code) more than five percent (5%) of the outstanding stock of the Employer or stock possessing more than five percent (5%) of the total combined voting power of all stock of the Employer or any Affiliate; or

	
  

	
(iii)

	
an Employee who (A) owns (or is considered as owning within the meaning of Section 318 of the Code) more than one percent (1%) of the outstanding stock of the Employer or more than one percent (1%) of the total combined voting power of all stock of the Employer and (B) who receives annual compensation from the Employer and all Affiliates in excess of one hundred fifty thousand dollars ($150,000).

 

 

  

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(iv)

	
For the purpose of applying Section 318 of the Code under paragraphs (ii) and (iii) of this subsection (b), the phrase “50 percent” in Section 318(a)(2) of the Code shall be replaced by the phrase “5 percent.”

	
  

	
(v)

	
Annual compensation, as used in this Section, means compensation within the meaning of Section 415(c)(3) of the Code.  The determination of who is a Key Employee will be made in accordance with Section 416(i)(1) of the Code and the applicable regulations and other guidance of general applicability issued thereunder.

 

	
  

	
(c) 

	
Non-Key Employee.  Any Employee who is not a Key Employee.

         

	
  

	
(d)

	
Aggregated Plans.  “Aggregated Plans” shall mean (i) all plans of the Employer or any Affiliate (A) that are qualified under Section 401(a) of the Code and (B) in which a Key Employee is a participant, and (ii) all other plans of the Employer or any Affiliate that enable any plan described in clause (i) above to meet the requirements of Sections 401(a)(4) or 410(b) of the Code (the “Required Aggregation Group”).  The Required Aggregation Group shall include each plan that satisfies the requirements of the preceding sentence, whether or not any such plan is terminated.  In addition, the term “Aggregated Plans” shall include any plan of the Employer or any Affiliate that is not required to be included in the Required Aggregation Group; provided, that the resulting group, taken as a whole, continues to meet the requirements of Sections 401(a)(4) and 410(b) of the Code (the “Permissive Aggre­gation Group”).  The Plan Administrator may elect to exclude as an Aggregated Plan any plan in the Permissive Aggregation Group that is a collectively bargained plan, if the necessary information as to participants and benefits with respect to such plan is not available.

	
  

	
(e)

	
Top-Heavy Plan.  The Plan shall constitute a “Top-Heavy Plan” for any Plan Year if, as of the applicable Determination Date, the sum of (A) the accounts of Key Employees under any Aggregated Plan that is of a defined contribution type and (B) the present value of the cumulative accrued benefits of Key Employees under any Aggregated Plan that is of a defined benefit type exceed sixty percent (60%) of the sum of (X) the accounts of all Employees under any Aggregated Plan that is of a defined contribution type and (Y) the present value of the cumulative accrued benefits of all Employees under any Aggregated Plan that is of a defined benefit type.  The above determinations shall be made in accordance with Section 416(g) of the Code.

 

  

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(f)

	
Special Rules Applicable to Determination of Accrued Benefit or Account Balances. In determining the present value of accrued benefits or account balances for Aggregated Plans, the following rules shall apply:

	
  

	
(i)

	
The accrued benefit for each current Employee shall be computed as if the Employee voluntarily terminated service as of the Determination Date.

	
  

	
(ii)

	
The interest rate used to determine accrued benefits shall be the plan's actuarial equivalent interest rate and post-retirement mortality shall be determined based on the 1983 Group Annuity Mortality Table for Males.  There shall be no assumption as to preretirement mortality or future increases in cost of living.

	
  

	
(iii)

	
If a qualified joint and survivor annuity within the meaning of Section 401(a)(11) of the Code is the normal form of benefit, the spouse of the participant shall be assumed to be the same age as the participant for purposes of determining the present value of the accrued benefit.

	
  

	
(iv)

	
The present value of each accrued benefit shall reflect a benefit payable commencing at normal retirement age (or attained age, if later), provided that if the plan provides for a nonproportional subsidy, the benefit shall be assumed to commence at the age at which the benefit is most valuable.

	
  

	
(v)

	
The employer contribution account shall be determined as of the most recent valuation occurring within the twelve (12) month period ending on the Determination Date.

	
  

	
(vi)

	
An adjustment shall be made for any contributions due as of the Determination Date.  In the case of a plan not subject to Section 412 of the Code, such adjustment shall be the amount of any contributions actually made after the Valuation Date but before the Determination Date, except that for the first Plan Year such adjustment shall also reflect the amount of any contributions made after the Determination Date that are allocated as of a date in the first Plan Year.

	
  

	
(vii)

	
The accrued benefit or account balance with respect to any Employee shall be increased by the aggregate distributions made to such Employee from any Aggregated Plan during the five (5) year period ending on the Determination Date; provided, 

 

 

  

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however, that any distribution made after a Valuation Date but before the Determination Date shall not be counted as a distribution to the extent already included as of the Valuation Date.

 

	
  

	
(viii)

	
Any Employee contributions, whether voluntary or mandatory, shall be included.  However, amounts attributable to tax deductible qualified employee contributions shall not be considered to be a part of the account.

	
  

	
(ix)

	
With respect to unrelated rollovers and plan-to-plan transfers (ones which are both initiated by the Employee and made from a plan maintained by one Employer to a plan maintained by another Employer), the plan from which the rollover or plan-to-plan transfer is initiated shall consider such amounts to be distributed for the purpose of this Article XVII.  The plan accepting such rollovers or plan-to-plan transfers shall not consider rollovers or plan-to-plan transfers as part of the Employee's benefit.

	
  

	
(x)

	
Related rollovers and plan-to-plan transfers (ones which are either not initiated by the Employee or not made to a plan maintained by the Employer) shall not be considered as a distribution for purposes of this Article XVII.  The plan accepting such rollover or plan-to-plan transfer shall consider such rollover or plan-to-plan transfer as part of the Employee's benefit, irrespective of the date on which such rollover or plan-to-plan transfer is accepted.

	
  

	
(xi)

	
For purposes of determining whether the Employer is the same employer under (ix) and (x) above, the Employer and all Affiliates shall be treated as the same Employer.

	
  

	
(xii)

	
For purposes of this Article XVII, a Beneficiary of any deceased Employee shall be considered a Participant hereunder.

	
  

	
(xiii)

	
Notwithstanding any other provision of the Plan to the contrary, no individual shall be counted as an Employee or Participant for the purposes of this Article XVII if such individual has not received compensation (other than benefits under the Plan) during the five (5) year period ending on a Determination Date.

	
  

	
(viv)

	
Solely for the purpose of determining if the Plan, or any other plan in the Required Aggregation Group of which this Plan is part, is Top-Heavy, the accrued benefit of an individual other than a Key Employee shall be determined under (A) the method, 

 

 

  

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if any, that uniformly applies for accrual purposes under all plans maintained by Employers, or (B) if there is no such method, as if such benefit accrued not more rapidly than the slowest accrual rate permitted under the fractional accrual rule of Section 411(b)(1)(C) of the Code.

 

	
  

	
(g)

	
Top-Heavy Plan Year. “Top-Heavy Plan Year” shall mean a Plan Year in which the Plan is a Top-Heavy Plan.

	
  

	
(h)

	
Top-Heavy Compensation. “Top-Heavy Compensation” shall mean compensation from the Employer and all Affiliates within the meaning of Section 415 of the Code.  Includible in compensation shall be the value of a non-qualified stock option granted to an employee by the Employer to the extent that the value of the option is includible in gross income.  Compensation does not include amounts contributed to a plan of deferred compensation that are not included in gross income; any distributions from a plan of deferred compensation; amounts realized from the exercise of a non-qualified stock option; and amounts realized from the sale of stock acquired under a qualified stock option.  In determining average compensation for Top-Heavy purposes, years for which the Employee did not earn a year of service shall be disregarded.  Also, compensation received for years ending in Plan Years beginning before January 1, 1984 and compensation received for years beginning after the close of the last Plan Year in which the plan is Top-Heavy may be disregarded.

	
  

	
(i)

	
Testing Period.  “Testing Period” shall mean the five (5) consecutive Top-Heavy Plan Years of employment of the Participant by the Employer or any Affiliate during which the aggregate Top-Heavy Compensation paid by the Employer or any Affiliate to such Participant was the highest, or if the Plan was a Top-Heavy Plan for less than five (5) Top-Heavy Plan Years, the number of Top-Heavy Plan Years.  Exclusion of a Plan Year as a Top-Heavy Plan Year because a year of service was not credited or because of item (i) or (ii) of subparagraph (h) above shall not be deemed to break the consecutive nature of the surrounding Top-Heavy Plan Years.

17.3         Minimum Benefit.  Each Non-Key Employee shall receive the minimum benefit required by Section 416(c) of the Code in each Plan Year in which the Plan is a Top-Heavy Plan under the Retirement Plan for Employees of Aetna Inc.; provided, however, that if any Non-Key Employee is not covered by the Retirement Plan for Employees of Aetna Inc., such Non-Key Employee shall receive the minimum contribution required by Section 416(c) of the Code under this Plan.

 

 

  

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   Employer matching contributions shall be taken into account for purposes of satisfying the minimum contribution requirements of Section 416(c)(2) of the Code and the Plan.  The preceding sentence shall apply with respect to matching contributions under the Plan or, if the Plan provides that the minimum contribution requirement shall be met in another Plan, such other Plan.  Employer matching contributions that are used to satisfy the minimum contribution requirements shall be treated as matching contributions for purposes of the actual contribution percentage test and other requirements of Section 401(m) of the Code.

 

   The employer may provide by plan amendment that the minimum benefit requirement shall be met in another Plan (including another Plan that consists solely of a cash or deferred arrangement which meets the requirements of Section 401(k)(12) of the Code and matching contributions with respect to which the requirements of Section 401(m)(11) of the Code are met).

 

17.4        Determination of present values and amounts.  This Section shall apply, notwithstanding the provisions of Section 17.2(f) hereof, for the purposes of determining the present values of accrued benefits and the amounts of account balances as of the determination date.

	 	
(a)

	
Distributions during year ending on the determination date.  The present values of accrued benefits and the amounts of account balances of an employee as of the determination date shall be increased by the distributions made with respect to the employee under the Plan and any Plan aggregated with the Plan under Section 416(g)(2) of the Code during the 1-year period ending on the determination date.  The preceding sentence shall also apply to distributions under a terminated Plan which, had it not been terminated, would have been aggregated with the Plan under Section 416(g)(2)(A)(i) of the Code.  In the case of a distribution made for a reason other than severance from employment, death, or disability, this provision shall be applied by substituting "5-year period" for "1-year period."

	 	
(b)

	
Employees not performing services during year ending on the determination date.  The accrued benefits and accounts of any individual who has not performed services for the employer during the 1-year period ending on the determination date shall not be taken into account.

 

 

  

- 97 -

  

 

ARTICLE XVIII - MISCELLANEOUS

18.1        Benefits Solely From Trust Fund.  As a condition precedent to participation in the Plan, each Employee agrees to look solely to the assets of the Trust for the payment of any Plan benefits to which he or she is entitled.

18.2        Liability for Benefits, Contributions and Expenses.

	 	
(a)

	
The Employer assumes no responsibility or liability for the payment of benefits under this Plan.  Such benefits shall be paid solely from the Trust Fund in accordance with the terms and conditions of this Plan.

	 	
(b)

	
The Employer is not legally obligated to make contributions (other than Deferral Contributions, Catch-up Contributions, or Voluntary Contributions withheld from the Pay of an Active Participant) to the Trust Fund.  No action or suit shall be brought by any Participant or other person against the Employer to compel contributions.

	 	
(c)

	
If benefits are payable to a minor or incompetent or to a person incapable of handling the disposition of his or her property, the Plan Administrator may instruct the Trustee to pay such benefits to the guardian, legal representative or person having the care and custody of such person.  Such distribution shall completely discharge the Employer and Trustee from all liability with respect to such benefit.

	 	
(d)

	
The Employer shall pay all expenses of the Trust Fund to the extent such expenses are not paid out of the Trust Fund.

18.3        Rights of Employees.  Nothing herein contained shall be deemed to give any Employee the right to be retained in the service of the Employer or to interfere with the right of the Employer to discharge such Employee at any time, nor shall it be deemed to give the Employer the right to require the Employee to remain in its service, nor shall it interfere with the Employee's right to terminate service at any time.

18.4        Taxes and Fees.

	 	
(a)

	
Any taxes that may be levied or assigned upon the assets of the Trust Fund or upon the income arising therefrom or that may be incurred by the Trustee in the performance of its duties shall be paid pursuant to the terms of Section 14.5.

 

 

  

- 98 -

  

 

	
  

	
(b)

	
Payment of the Trustee's fees and of any indebtedness incurred by the Trustee in the performance of its duties shall be made pursuant to the terms of Sections 14.5 and 14.6.

18.5         Direct Rollovers.

	
  

	
(a)

	
Notwithstanding any other provision of the Plan to the contrary that would limit a distributee's election under this Section 18.5, a distributee may elect, at the time and in the manner prescribed by the Plan Administrator, to have all or any portion of an Eligible Rollover Distribution paid directly to an Eligible Retirement Plan specified by the distributee in a direct rollover.

	
  

	
(b)

	
An Eligible Rollover Distribution is any distribution of any portion of the balance to the credit of the distributee that is greater than the amount permitted by law to be excluded from the direct rollover option, except that an Eligible Rollover Distribution does not include:  (i) any distribution that is one of a series of substantially equal periodic payments (to be made not less frequently than annually) made for the life (or life expectancy) of the distributee or the joint lives (or joint life expectancies) of the distributee and the distributee's designated beneficiary, or for a specified period of ten years or more; (ii) any distribution to the extent such distribution is required under Section 401(a)(9) of the Code; (iii) except as otherwise provided below, the portion of any distribution that is not includible in gross income (determined without regard to the exclusion for net unrealized appreciation with respect to employer securities); (iv) corrective distributions of Excess Contributions or Excess Deferrals, and income allocable to such contributions; (v) loans treated as distributions under Section 72(p) of the Code and loans in default that are deemed distributions; and (vi) any amount that is distributed on account of hardship.

 

Effective for distributions made after December 31, 2001, for purposes of this Section 18.5, a portion of a distribution shall not fail to be an Eligible Rollover Distribution merely because the portion consists of after-tax employee contributions which are not includible in gross income.  However, such portion may be transferred only to (A) an individual retirement account or annuity described in Section 408(a) or (b) of the Code, or (B) any other Eligible Retirement Plan, other than an eligible plan under Section 457(b) of the Code, that agrees to separately account for amounts so transferred, including separate accounting for the portion of such distribution which is includible in gross income and the portion of such distribution which is not so includible.

 

  

- 99 -

  

	
  

	
(c)

	
An Eligible Retirement Plan is an individual retirement account described in Section 408(a) of the Code, an individual retirement annuity described in Section 408(b) of the Code, an annuity plan described in Section 403(a) of the Code, or a qualified trust described in Section 401(a) of the Code that is legally permitted to accept the distributee's Eligible Rollover Distribution.  An Eligible Retirement Plan shall also mean an annuity contract described in Section 403(b) of the Code or an eligible plan under Section 457(b) of the Code which is maintained by a state, political subdivision of a state, or any agency or instrumentality of a state or political subdivision of a state and which agrees to separately account for amounts transferred into such plan from this Plan.  The definition of Eligible Retirement Plan herein also applies with respect to Eligible Rollover Distributions to a surviving spouse or to a spouse or former spouse who is the alternate payee under a qualified domestic relations order as defined in Section 414(p) of the Code.

	
  

	
(d)

	
A distributee includes an Employee or former Employee.  In addition, the Employee's or former Employee's surviving spouse and the Employee's or former Employee's spouse or former spouse who is the alternate payee under a QDRO are distributees with regard to the interest of the spouse or former spouse.

	
  

	
(e)

	
A Direct Rollover is a payment by the Plan to the Eligible Retirement Plan specified by the distributee.

	
  

	
(f)

	
A non-spouse Beneficiary who is a “designated beneficiary” under Code Section 401(a)(9)(E) and the regulations thereunder, by a Direct Rollover, may roll over all or any portion of his or her distribution to an individual retirement account that the Beneficiary establishes for purposes of receiving the distribution.  In order to roll over the distribution, the distribution otherwise must satisfy the definition of an Eligible Rollover Distribution.  If the Participant dies before his or her required beginning date and the non-spouse Beneficiary rolls over to an IRA the maximum amount eligible for rollover, the Beneficiary may elect to use either the 5-year rule or the life expectancy rule, pursuant to Treas. Reg. §1.401(a)(9)-3, A-4(c), in determining the required minimum distributions from the IRA that receives the non-spouse Beneficiary’s distribution.

	
  

	
(g)

	
Subject to the provisions of this Section 18.5, a direct rollover of a distribution from a Roth Account under the Plan will only be made to another Roth account under an applicable retirement plan described in § 402A(e)(1) or to a Roth IRA described in § 408A, and only to the extent the rollover is permitted under the rules of § 402(c).  Eligible rollover distributions from a Participant’s Roth

 

  

-99A-

  

 

	
  

	
 

	
Account are taken into account in determining whether the total amount of the Participant’s vested Account Value under the Plan exceeds $1,000 for the purpose of Section 8.10.

 

	
  

	
(h)

	
Notwithstanding any provision of this Section 18.5 to the contrary, a Participant may elect to roll over a distribution to a Roth IRA to the extent permitted under, and subject to the requirements of, Section 408A of the Code.

18.6         Merger, Consolidation, or Transfer.  In the event of any merger or consolidation with, or transfer of assets or liabilities to, any other plan, the benefit that a Participant would receive upon a termination of the Plan immediately after such merger, consolidation, or transfer shall be equal to or greater than the benefit the Participant would have been entitled to receive immediately before the merger, consolidation, or transfer if the Plan had then terminated.  The Plan Administrator has the authority to enter into merger agreements or agreements to directly transfer the assets of this Plan to other retirement plans described in Section 401(a) of the Code.  The Plan Administrator also has the authority to accept/receive amounts transferred to this Plan from other retirement plans described in Section 401(a) of the Code.  If it is subsequently determined that any amounts transferred into this Plan were ineligible to be so transferred, the Plan Administrator shall direct that any ineligible amounts, plus earnings attributable thereto, be distributed from the Plan as soon as administratively feasible.

18.7         Applicable State Law.  This Plan shall be construed in accordance with and governed by the laws of the state of Connecticut; provided, however, that any matters relating solely to actions and operations of the Trustee and the Trust Fund shall be governed by the laws of the Commonwealth of Pennsylvania.  Notwithstanding the foregoing, to the extent that such laws have been superseded by Federal law, Federal law shall govern.

18.8         Section 16 of the Exchange Act.  All elections and transactions under the Plan by persons subject to Section 16 of the Exchange Act involving Stock or the Stock Account are intended to comply with all applicable exemptive conditions under Rule 16b-3.  The Employer, by action of the Board (or by action of any person(s) to which the Board may delegate its authority), may establish and adopt written administrative guidelines, designed to facilitate compliance with Section 16(b) of the Exchange Act, as it may deem necessary or proper for the administration and operation of the Plan and the transaction of business thereunder. To the extent that any provision of the Plan or any act taken with respect to the Plan is inconsistent with Section 16 of the Exchange Act, including, without limitation, Rule 16b-3, such provision, guideline or act shall be deemed null and void, as permitted by applicable law.

 

18.9         Manner of Communications. In accordance with procedures established by the Plan Administrator, and to the extent permissible under applicable law, any elections, designations or other communications from Participants, and any communications to Participants, with respect to the Plan may be made electronically rather than in writing.

 

 

  

-99B-

  

 

18.10       Qualified Military Service.

	
  

	
(a)

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

	
  

	
(b)

	
Without limitation, if a Participant dies while performing qualified military service (as defined in Code Section 414(u)), the survivors of the Participant are entitled to any additional benefits (other than benefit accruals relating to the period of qualified military service) provided under the Plan as if the Participant has resumed and then terminated employment on account of death.

	
  

	
(c)

	
To the extent provided in Code Section 414(u) and consistent with the rules of application set forth therein: (i) an individual receiving a differential wage payment, as defined by Code Section 3401(h)(2), is treated as an employee of the employer making the payment; and (ii) such differential wage payment is treated as Pay, and the Plan is not treated as failing to meet the requirements of any provision described in Code Section 414(u)(1)(C) by reason of any contribution or benefit which is based on the differential wage payment.

18.11       Recovery of Benefit Overpayments.  If it is determined that any benefit(s) paid to a Participant or Beneficiary under the Plan should not have been paid or should have been paid in a lesser amount, written notice thereof shall be given to such Participant or Beneficiary, and the Participant or Beneficiary shall repay the amount of the overpayment.  If the Participant or Beneficiary fails to repay such amount promptly, the Plan Administrator shall arrange to recover such amount from any other benefits then payable, or which may become payable, to the Participant or Beneficiary under the Plan.

 

 

  

-99C-

  

 

IN WITNESS WHEREOF, the Company has caused this Plan to be duly executed by its agents thereunto duly authorized, as of the day and year first above stated.

 

	 	
AETNA INC.

	 
	 	 	 	 
	
 

	
By: 

	/s/ Elease E. Wright	 
	 	Title: 	   Senior Vice President, HR	 
	 	Date:	   12/13/12	 

 

 

  

-100-

  

Attachment I - Acquired Employers – Vesting Service Credit

	
CAUTION:

	
(1)

	
The provisions below relate only to Employees employed on the Date of Acquisition.

	
  

	
(2)

	
The provisions below do not apply where a specific Plan provision states otherwise.

	
  

	
(3)

	
Service not considered by the Acquired Employer will not be given credit; the Company shall rely exclusively on information transmitted by the Acquired Employer in determining what service will be credited.

	
  

	 

	
Employer

	
Vesting Service

	
Prodigy Health Group, Inc. (“PH”)

(Including, American Health Holding, Inc., Meritain Health, Inc. and Scrip World, LLC)

	
Date of Hire by PH (may be prior to Date of Acquisition).

 

 

  

I

  

 

Attachment II - Participating Companies

	
A.

Participating Companies

	
B.

Original Date

of Inclusion

	
C.

Tax Identification

Number of Employer

	
Prodigy Health Group, Inc.

(Including, American Health Holding, Inc., Meritain Health, Inc. and Scrip World, LLC)

	
1/1/2013

	
16-1471176

The Plan shall be effective with respect to any other Employer as of the applicable Original Date of Inclusion.

 

 

 

 

IIExhibit 4.4

 

 

COVENTRY HEALTH CARE, INC.

RETIREMENT SAVINGS PLAN

 

Amended and Restated

Effective as of January 1, 2011

 

 

(including Amendment Number One and Amendment Number Two)

 

  

  

  

 

COVENTRY HEALTH CARE, INC.

RETIREMENT SAVINGS PLAN

 

TABLE OF CONTENTS

 

	
INTRODUCTION

	
1

	  	  	  
	
ARTICLE 1

	
DEFINITIONS

	
2

	
1.01

	
“Account”

	
2

	
1.02

	
“Active Participant”

	
2

	
1.03

	
“Affiliate”

	
2

	
1.04

	
“Allocable Income/Loss”

	
2

	
1.05

	
“Alternate Payee”

	
2

	
1.06

	
“Annuity Contract”

	
3

	
1.07

	
“Automatic Deferral Election”

	
3

	
1.08

	
“Beneficiary”

	
3

	
1.09

	
“Board”

	
3

	
1.10

	
“Catch-Up Contributions”

	
3

	
1.11

	
“Code”

	
3

	
1.12

	
“Company”

	
3

	
1.13

	
“Compensation”

	
3

	
1.14

	
“Contributions”

	
4

	
1.15

	
“Elective Deferral Contributions”

	
4

	
1.16

	
“Eligible Employee”

	
5

	
1.17

	
“Employee”

	
5

	
1.18

	
“Employer”

	
5

	
1.19

	
“Employer Contributions”

	
5

	
1.20

	
“Employment Commencement Date”

	
5

	
1.21

	
“ERISA”

	
5

	
1.22

	
“Excess Elective Deferrals”

	
5

	
1.23

	
“FMLA Leave”

	
6

	
1.24

	
“Highly Compensated Employee”

	
6

	
1.25

	
“Hour of Service”

	
6

	
1.26

	
“Inactive Participant”

	
6

	
1.27

	
“Investment Fund”

	
6

	
1.28

	
“Investment Manager”

	
6

	
1.29

	
“Leased Employee”

	
7

	
1.30

	
“Loan Administrator”

	
7

	
1.31

	
“Matching Contributions”

	
7

	
1.32

	
“Named Fiduciary”

	
7

	
1.33

	
“Non-highly Compensated Employee”

	
7

	
1.34

	
“Normal Retirement Age”

	
7

	
1.35

	
“Normal Retirement Date”

	
7

	
1.36

	
“One-Year Period of Severance”

	
7

	
1.37

	
“Participant”

	
7

	
1.38

	
“Period of Service”

	
8

	
1.39

	
“Period of Severance”

	
8

 

 

  

i

  

 

	
1.40

	
“Plan”

	
8

	
1.41

	
“Plan Administrator”

	
8

	
1.42

	
“Plan Year”

	
8

	
1.43

	
“Qualified Military Service”

	
8

	
1.44

	
“Qualifying Employer Securities”

	
8

	
1.45

	
“Qualifying Employer Securities Fund”

	
8

	
1.46

	
“Reemployment Commencement Date”

	
8

	
1.47

	
“Regulation”

	
8

	
1.48

	
“Rollover Contributions”

	
8

	
1.49

	
“Service”

	
8

	
1.50

	
“Severance from Service Date”

	
9

	
1.51

	
“Totally and Permanently Disabled”

	
10

	
1.52

	
“Trust Agreement”

	
10

	
1.53

	
“Trust Fund”

	
10

	
1.54

	
“Trustee”

	
10

	
1.55

	
“USERRA”

	
10

	
1.56

	
“Valuation Date”

	
10

	
1.57

	
“Years of Service”

	
10

	  	  	  
	
ARTICLE 2

	
PARTICIPATION

	
11

	
2.01

	
Eligibility

	
11

	
2.02

	
Commencement of Participation

	
11

	
2.03

	
Change in Participation

	
11

	
2.04

	
Termination of Participation

	
12

	
2.05

	
Erroneous Omission of Eligible Employee

	
12

	  	  	  
	
ARTICLE 3

	
CONTRIBUTIONS

	
13

	
3.01

	
Automatic Deferral Election

	
13

	
3.02

	
Affirmative Election to make Elective Deferral Contributions

	
14

	
3.03

	
Catch-Up Contributions

	
14

	
3.04

	
Limitation on Elective Deferral Contributions

	
14

	
3.05

	
Matching Contributions

	
15

	
3.06

	
Rollover Contributions

	
15

	
3.07

	
Vesting

	
17

	
3.08

	
Return of Contributions to Employer

	
17

	
3.09

	
Veterans Rights

	
17

	
3.10

	
Corrective Contributions

	
19

	
3.11

	
Contributions under Merged Plans

	
20

	  	  	  
	
ARTICLE 4

	
LIMITATIONS ON CONTRIBUTIONS

	
21

	
4.01

	
Dollar Limitation on Elective Deferral Contributions

	
21

	
4.02

	
ADP Limitation on Elective Deferral Contributions

	
23

	
4.03

	
ACP Limitation on Matching Contributions

	
29

	
4.04

	
Maximum Contributions

	
33

	
4.05

	
Plan Aggregation and Disaggregation under Code Section 415

	
37

 

 

  

ii

  

 

	
ARTICLE 5

	
INVESTMENT OF CONTRIBUTIONS

	
39

	
5.01

	
Investment and Timing of Contributions

	
39

	
5.02

	
Valuation of Investment Funds/Qualifying Employer Securities

	
41

	
5.03

	
Notice to Participants

	
42

	  	  	  
	
ARTICLE 6

	
DISTRIBUTION OF BENEFITS

	
43

	
6.01

	
Forms of Distribution

	
43

	
6.02

	
Distribution Election Procedures

	
43

	
6.03

	
Consent to Distribution

	
43

	
6.04

	
Direct Rollover

	
44

	
6.05

	
Timing of Distribution

	
46

	
6.06

	
In-Service Withdrawals

	
47

	
6.07

	
Hardship Withdrawals

	
47

	
6.08

	
Loans to Participants

	
49

	
6.09

	
Distributions under Qualified Domestic Relations Orders

	
51

	
6.10

	
Minimum Distribution Requirements

	
52

	  	  	  
	
ARTICLE 7

	
GENERAL PROVISIONS

	
58

	
7.01

	
Amendments

	
58

	
7.02

	
Mergers and Direct Transfers

	
58

	
7.03

	
Termination of Plan

	
59

	  	  	  
	
ARTICLE 8

	
ADMINISTRATION OF THE PLAN

	
61

	
8.01

	
Administration

	
61

	
8.02

	
Employers

	
62

	
8.03

	
Plan Expenses

	
62

	
8.04

	
Claims and Appeals Procedure

	
62

	
8.05

	
Voting and Tender of Qualifying Employer Securities

	
65

	  	  	  
	
ARTICLE 9

	
TOP HEAVY RULES

	
67

	
9.01

	
Top Heavy Determination

	
67

	
9.02

	
Minimum Benefit

	
68

	
9.03

	
Impact on Vesting

	
68

	
9.04

	
Requirements Not Applicable

	
69

	  	  	  
	
ARTICLE 10

	
MISCELLANEOUS

	
70

	
10.01

	
Nonguarantee of Employment

	
70

	
10.02

	
Assignment and Levy

	
70

	
10.03

	
Infancy or Incompetency

	
70

	
10.04

	
Missing Persons

	
70

	
10.05

	
Recovery of Overpayment

	
71

	
10.06

	
Governing Law and Rules of Construction

	
71

	
10.07

	
Titles and Headings

	
71

	
10.08

	
Plan Corrections

	
71

	
10.09

	
Writings and Electronic Communications

	
72

	
10.10

	
Consent to Plan Terms

	
72

	
10.11

	
Income Tax Withholding

	
72

 

 

  

iii

  

 

	
10.12

	
Tax Treatment

	
72

	
10.13

	
Counterparts

	
72

 

	
APPENDIX I

	
-

	
FIRST HEALTH GROUP CORP. RETIREMENT SAVINGS PLAN PROTECTED BENEFITS

	
APP. I - 1

	
APPENDIX II

	
-

	
FIRST HEALTH PRIORITY SERVICES, INC. 401(k) PLAN PROTECTED BENEFITS

	
APP. II - 1

	
APPENDIX III

	
-

	
PROVISIONS APPLICABLE TO APPENDIX I AND APPENDIX II AND CERTAIN PRE-2006 BENEFITS

	
APP. III - 1

	
ATTACHMENT A

	
-

	
EMPLOYERS

	
ATT. A - 1

 

 

 

  

iv

  

 

INTRODUCTION

 

Coventry Health Care, Inc. (the “Company”) established the Coventry Health Care, Inc. Retirement Savings Plan (the “Plan”), effective as of April 1, 1998, for the benefit of eligible employees.  The Plan was amended and restated for the Uruguay Round Agreements Act, General Agreement on Tariffs and Trade (“GATT”), the Uniformed Services Employment and Re-employment Rights Act of 1994 (“USERRA”), the Small Business Job Protection Act of 1996 (“SBJPA”) and the Tax Payer Relief Act of 1997 (“TRA ‘97”), collectively referred to as “GUST”, effective as of April 1, 1998.  The Plan was further amended for the Economic Growth and Tax Relief Reconciliation Act of 2001 (“EGTRRA”), effective as of January 1, 2002, and amended thereafter to reflect certain regulatory provisions and design-based modifications.

 

The Plan was amended and restated, effective as of January 1, 2006, to constitute a “safe-harbor” 401(k) plan.  All matching contributions made on and after January 1, 2006 are 100% vested when made.  The Plan also was amended to reflect the provisions of the Pension Protection Act of 2006 (“PPA”); to incorporate in good faith the provisions of the final Regulations under Code Section 401(k); and to make other design-based changes.

 

The Plan hereby is again amended and restated effective as of January 1, 2011, except as otherwise specified herein or as required by law.  Each Employee who was a Participant in the Plan on December 31, 2010 and who completed an Hour of Service after December 31, 2010 shall be a Participant subject to the provisions of this amended and restated Plan.  The provisions of this amended and restated Plan shall apply to the interests of such Participants and their Beneficiaries on or after January 1, 2011.  Notwithstanding the foregoing and except as expressly provided herein, Participants who do not complete an Hour of Service after December 31, 2010 (and their Beneficiaries) generally shall be subject to the provisions of the Plan as in effect at the time of their termination of service.

 

It is intended that the Plan continue to be tax-qualified under Code Sections 401(a) and 401(k) as a profit sharing plan under Code Section 401(a)(27) that includes an employee stock ownership plan under Code Sections 409 and 4975(e)(7) and a cash or deferred arrangement under Code Section 401(k).  It also is intended that the Plan be an eligible individual account plan under ERISA Section 407(d)(3) and meet the requirements of ERISA Section 404(c), and that it be construed, maintained and administered as an “ERISA Section 404(c) plan” within the meaning of Department of Labor Regulation §2550.404c–1(b)(1).

 

No provision of this Plan shall be construed to eliminate or reduce any optional form of benefit that existed under the Plan before this amendment and restatement or otherwise to retroactively reduce a Participant’s accrued benefit protected by Code Section 411(d)(6), except to the extent permitted under Regulations §§1.401(a)-4 and 1.411(d)-4.

 

  

  

  

ARTICLE 1

DEFINITIONS

Words and phrases defined in this Definitions Section shall have that defined meaning when used in this Plan, unless the context clearly indicates otherwise.

	
1.01  

	
“Account” means, with respect to a Participant, the value of his or her undivided share of the Trust Fund. An Account may be comprised of one or more sub-accounts including, but not limited to, those for Elective Deferral Contributions, Matching Contributions or Rollover Contributions and any earnings or appreciation thereon, and such other sub-accounts as the Plan Administrator may from time to time establish.

	
1.02  

	
“Active Participant” means, with respect to any Plan Year, a Participant making Elective Deferral Contributions or, to the extent provided in Section 3.06, Rollover Contributions.

	
1.03  

	
“Affiliate” means any corporation, partnership or other entity while it is: (i) a member of a “controlled group of corporations” (as defined in Code Section 414(b)) that includes the Company; (ii) any trade of business (whether or not incorporated) that is under common control (as defined in Code Section 414(c)) with the Company; (iii) any organization (whether or not incorporated) that is a member of any affiliated service group (as defined in Code Section 414(m)) that includes the Company; and (iv) any other entity required to be aggregated with the Company pursuant to regulations under Code Section 414(o); provided that no such corporation or unincorporated trade or business shall be considered an Affiliate at any time prior to or subsequent to the time during which it meets the above definition and, provided further, that the status of being employed by an Affiliate shall pertain to an individual only during the time when his or her employer is an Affiliate and not to any time prior or subsequent to its Affiliate status. However, for purposes of determining the Company’s controlled group of corporations or the trades or businesses under common control with the Company, with respect to applying the limitations on Annual Additions in Section 4.04, “more than 50 percent” shall be substituted for “at least 80 percent” where it appears in Code Section 1563(a)(1).

	
1.04  

	
“Allocable Income/Loss” means, with respect to any contributions which must be returned or forfeited under any of the provisions of the Plan, the income or loss allocable to such contributions for the Plan Year. Income or loss may be determined by any reasonable method for computing the income or loss, provided that such method is used consistently for all Participants and for all corrective distributions under the Plan for the Plan Year, and is the same method used by the Plan for allocating income or loss to Participants’ Accounts.

	
1.05  

	
“Alternate Payee” means any spouse, former spouse, child or other dependent of a Participant who is recognized by a qualified domestic relations order (as defined in Section 6.09) as having a right to receive all, or a portion of, the benefits payable under the Plan with respect to such Participant.

  

2

  

	
1.06  

	
“Annuity Contract” means an annuity contract or contracts into which an Employer may enter with an Insurer for guaranteed benefits, for the investment of Contributions in separate accounts or for the payment of benefits under this Plan.

	
1.07  

	
“Automatic Deferral Election” means the automatic Elective Deferral Contribution election set forth in Section 3.01.

	
1.08  

	
“Beneficiary” means the person(s), estate or trust designated by a Participant in writing (subject to the spousal consent requirements contained herein if the Participant has a spouse) to receive the benefits which are payable under the Plan upon or after the death of a Participant. If a Participant fails to designate a Beneficiary, or if for any reason his or her designation is legally ineffective, or if no designated Beneficiaries survive to the date payment is due, payment shall be made, unless otherwise set forth herein, to his or her spouse or, if none, to his or her estate.

	
(a)  

	
If a Participant has a spouse, the spouse shall be his or her sole primary Beneficiary unless: (i) he or she obtains “Spousal Consent” (as defined below) to the designation of another as a primary Beneficiary; (ii) Spousal Consent cannot be obtained because the spouse cannot be located; or (iii) such other circumstances exist as the Plan Administrator may, in accordance with applicable Regulations, deem appropriate to waive the Spousal Consent requirement.

	
(b)  

	
For this purpose, “Spousal Consent” means the written consent of a Participant’s spouse to the Participant’s designation of someone other than the spouse as the Participant’s sole primary Beneficiary, which consent is witnessed by a notary public and acknowledges the effect of such Beneficiary designation. Spousal Consent, once given, may not be revoked without the consent of the Participant.

	
(c)  

	
To the extent provided in an applicable qualified domestic relations order (as defined in Section 6.09), an Alternate Payee also may designate a Beneficiary.

	
1.09  

	
“Board” means the board of directors of the Company or a committee of such board, authorized by, and acting on behalf of, such board.

	
1.10  

	
“Catch-Up Contributions” mean additional Elective Deferral Contributions as set forth in Section 3.03.

	
1.11  

	
“Code” means the Internal Revenue Code of 1986, as amended from time to time, and Regulations thereunder. References to any section of the Code shall be to that section as it may be renumbered, amended, supplemented or reenacted.

	
1.12  

	
“Company” means Coventry Health Care, Inc. or any successor thereto.

	
1.13  

	
“Compensation” means, except for purposes of Section 4.04, the total wages within the meaning of Code Section 3401(a) and all other payments of compensation to an Employee by an Employer (in the course of an Employer’s trade or business) for which an Employer is required to furnish the Employee a written statement under Code Sections

  

3

  

 

6041(d), 6051(a)(3) and 6052. The amount reported in the “Wages, Tips and Other Compensation” box on Form W-2 satisfies this definition.

	
(a)  

	
Compensation also shall include “elective contributions,” which mean amounts contributed or deferred by the Employer pursuant to a salary reduction agreement and which are not includible in the gross income of the Employee under Code Sections 125, 132(f)(4), 402(e)(3), 402(h)(1)(B), 403(b), 408(p) or 457(b).

	
(i)  

	
Amounts under Code Section 125 shall be deemed to include any amounts not available to an Employee in cash in lieu of group health coverage because the Employee is unable to certify that he or she has other health coverage; but

	
(ii)  

	
only if the Employer does not request or collect information regarding the Employee’s other health coverage as part of the enrollment process for the health plan.

	
(b)  

	
Notwithstanding the above, the annual Compensation of each Participant taken into account for determining all benefits provided under the Plan for any determination period shall not exceed $200,000, as adjusted for increases in the cost-of-living in accordance with Code Section 401(a)(17)(B).

	
(c)  

	
Notwithstanding any other provision of the Plan to the contrary, Compensation shall not include severance pay or other form of post-termination compensation.

	
(d)  

	
Notwithstanding any other provision of the Plan to the contrary, Participants may not make Elective Deferral Contributions with respect to amounts that are not Limitation Compensation (as defined in Section 4.04(c)). Further, notwithstanding any other provision of the Plan to the contrary, the limit imposed by Code Section 401(a)(17)(B) on Compensation incorporated under subsection

(b) above is not applicable for the purpose of determining the amount of Compensation from which Elective Deferral Contributions can be made.

	
1.14  

	
“Contributions” mean, with respect to any Participant, one or more of the following types of contributions:

	
(a)  

	
Elective Deferral Contributions made pursuant to Sections 3.01, 3.02 or 3.03, by or on behalf of a Participant;

	
(b)  

	
Matching Contributions made pursuant to Section 3.05 by an Employer with respect to a Participant who makes Elective Deferral Contributions; and

	
(c)  

	
Rollover Contributions, consisting of contributions a Participant has elected to transfer to this Plan pursuant to Section 3.06.

	
1.15  

	
“Elective Deferral Contributions” mean Employer contributions made to the Plan at the election (or deemed election) of the Participant in lieu of cash compensation.

 

  

4

  

 

 

	
1.16  

	
“Eligible Employee” means an Employee employed by an Employer who has completed one Hour of Service, except that Eligible Employee does not include any individual who is:

	
(a)  

	
included in a unit of Employees covered by a collective bargaining agreement, unless such collective bargaining agreement provides for their participation;

	
(b)  

	
a provider of services to an Employer or an Affiliate pursuant to a contractual arrangement, either with that person or with a third party, other than one specifically providing for an employment relationship with an Employer; or

	
(c)  

	
a Leased Employee.

If any person excluded as an Eligible Employee pursuant to the preceding subsection (b) shall be determined by a court, federal, state, or local regulatory or administrative authority to have provided services as a common law employee of an Employer, such determination shall not alter such person’s ineligibility to participate in the Plan.

If an Employer reclassifies an individual as an Eligible Employee, he or she shall be an Eligible Employee prospectively from the effective date of that reclassification only, and then only if he or she otherwise satisfies the requirements of this Section. The decision of the Plan Administrator whether an Employee is an Eligible Employee shall be, in all respects, final and conclusive.

	
1.17  

	
“Employee” means a common law employee of an Employer or an Affiliate, or a Leased Employee of an Employer or an Affiliate unless the requirements of Code Section 414(n)(5) are met.

	
1.18  

	
“Employer” means the Company or any eligible Affiliate that has adopted this Plan, as described in Section 8.02 and Attachment A.

	
1.19  

	
“Employer Contributions” mean Matching Contributions made by an Employer with respect to a Participant and corrective contributions, if any, made pursuant to Section 3.10(a).

 

	
1.20  

	
“Employment Commencement Date” means the first day on which an Employee completes an Hour of Service with an Employer or an Affiliate.

	
1.21  

	
“ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time and Regulations thereunder. References to any section of ERISA shall be to that section as it may be renumbered, amended, supplemented or reenacted.

	
1.22  

	
“Excess Elective Deferrals” mean, for a calendar year, a Participant’s Elective Deferral Contributions that exceed the dollar limitation under Code Section 402(g) (including, if applicable, the dollar limitation on Catch-up Contributions under Code Section 414(v)) for such year.

  

5

  

 

  

 

                                                                   

	
1.23  

	
“FMLA Leave” means a leave of absence of an Employee pursuant to the provisions of the Family and Medical Leave Act of 1993 or pursuant to certain circumstances related to the Qualified Military Service of a family member of the Employee.

	
1.24  

	
“Highly Compensated Employee” means any active or former Employee who is a “highly compensated active Employee” or a “highly compensated former Employee” as determined below:

	
(a)  

	
A “highly compensated active Employee” is an Employee who:

	
(i)  

	
was at any time during the current or preceding Plan Year a 5% owner (within the meaning of Code Section 416(i)) of an Employer or an Affiliate; or

	
(ii)  

	
received Limitation Compensation for the preceding Plan Year from the Employer or an Affiliate in excess of $80,000 (as adjusted at the same time and in the same manner as under Code Section 415(d), except that the base period is the calendar quarter ending September 30, 1996).

	
(b)  

	
A “highly compensated former Employee” is any Employee who separated from service (or was deemed to have separated) prior to the current Plan Year, performs no service for an Employer or an Affiliate during the current Plan Year, and was a highly compensated active Employee for either the separation year or any Plan Year ending on or after the Employee’s 55th birthday.

	
1.25  

	
“Hour of Service” means each hour for which an Employee is paid, or entitled to payment, for performing duties for an Employer or for a nonparticipating Affiliate.

	
1.26  

	
“Inactive Participant” means a Participant for whom no Elective Deferral Contributions are currently being made or not making any Rollover Contributions under Section 3.06.

	
1.27  

	
“Investment Fund” means one or more of the funds which may from time to time be made available for investment of a Participant’s Account pursuant to Article 5.

	
1.28  

	
“Investment Manager” means a fiduciary (other than the Named Fiduciary) appointed pursuant to Article 5:

	
(a)  

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

	
(b)  

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

  

6

  

 

                                                                    

the laws of more than one state; or (v) otherwise meets the applicable requirements of ERISA Section 3(38); and

	
(c)  

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

	
1.29  

	
“Leased Employee” means any person who performs services for an Employer (other than as an Employee), provided that:

	
(a)  

	
the services are provided pursuant to an agreement between an Employer and any other person (“Leasing Organization”);

	
(b)  

	
such person has performed services for such Employer (including services performed for a related person in accordance with Code Section 414(n)(6)) on a substantially full time basis for a period of at least one year; and

	
(c)  

	
such services are performed under primary direction or control of an Employer.

Contributions or benefits provided by the leasing organization to a Leased Employee which are attributable to service performed for an Employer, shall be treated as provided by such Employer.

	
1.30  

	
“Loan Administrator” means the person or entity appointed by the Plan Administrator to administer the loan program under Section 6.08. If no such person or entity is appointed, the Loan Administrator will be the Plan Administrator.

	
1.31  

	
“Matching Contributions” mean Contributions made by an Employer pursuant to Section 3.05 with respect to a Participant who makes Elective Deferral Contributions.

	
1.32  

	
“Named Fiduciary” means the person or persons who have authority to control and manage the operation of the Plan. The Named Fiduciary is the 401(k) Plan Investment Committee as designated by the Board or its delegate.

	
1.33  

	
“Non-highly Compensated Employee” means an Employee who is not a Highly Compensated Employee.

	
1.34  

	
“Normal Retirement Age” means age 65.

	
1.35  

	
“Normal Retirement Date” means the first day of the month on or after the date the Participant reaches his or her Normal Retirement Age.

	
1.36  

	
“One-Year Period of Severance” means a 12-consecutive month Period of Severance in which the Employee is not credited with an Hour of Service.

	
1.37  

	
“Participant” means an Eligible Employee who has commenced, but not terminated, participation in the Plan pursuant to the provisions of Article 2.

  

7

  

 

                                                                    

	
1.38  

	
“Period of Service” means a period of time beginning on an Employee’s Employment Commencement Date or Reemployment Commencement Date (whichever applies) and ending on his or her Severance from Service Date.

	
1.39  

	
“Period of Severance” means a period of time beginning on an Employee’s Severance from Service Date and ending on the first date he or she again performs an Hour of Service for an Employer or an Affiliate provided, however, that no Period of Severance shall be deemed to have been incurred by reason of his or her Qualified Military Service.

	
1.40  

	
“Plan” means the Coventry Health Care, Inc. Retirement Savings Plan as set forth herein and as it may be amended from time to time.

	
1.41  

	
“Plan Administrator” means the individuals serving from time to time as the Chief Human Resources Officer and the Corporate Chief Financial Officer of the Company.

	
1.42  

	
“Plan Year” means the calendar year.

	
1.43  

	
“Qualified Military Service” means any service in the uniformed services as defined in Chapter 43 of Title 38 of the United States Code by any individual if such individual is entitled to reemployment rights under such Chapter, and as incorporated in Code Section 414(u)(5).

	
1.44  

	
“Qualifying Employer Securities” mean any securities which are issued by an Employer or any Affiliate that meet the requirements of Code Section 409(l) and ERISA Section 407(d)(5). This term also shall include any securities that satisfied the requirements of the definition when those securities were assigned to the Plan.

	
1.45  

	
“Qualifying Employer Securities Fund” means that part of the assets of the Trust Fund that are designated to be held primarily or exclusively in Qualifying Employer Securities for the purpose of providing benefits for Participants.

	
1.46  

	
“Reemployment Commencement Date” means the first date an Employee performs an Hour of Service for an Employer following a Period of Severance.

	
1.47  

	
“Regulation” means any regulation, ruling or other interpretation, validly promulgated by the U.S. Department of Treasury, U.S. Department of Labor, or other federal agency as the case may be, and in effect at the time in question. Reference to a Regulation or section thereof includes that Regulation or section and any comparable Regulation or section that amends, supplements or supersedes that Regulation or section.

	
1.48  

	
“Rollover Contributions” mean the Rollover Contributions made by an Eligible Employee or an Active Participant according to the provisions of Section 3.06.

	
1.49  

	
“Service” means an Employee’s Period of Service, expressed as years and fractional parts of a year on the basis that 365 days equals one year, measured from the Employee’s Employment Commencement Date to the Employee’s most recent Severance from Service Date, adjusted as follows:

  

8

  

 

                                                                    

	
(a)  

	
Reduced by any Period of Severance that occurred prior to the Employee’s most recent Severance from Service Date, unless such Period of Severance is included under the service spanning rule set forth in (e) below.

	
(b)  

	
To include an Employee’s Service with a predecessor employer (as defined in Section 4.05(a)) that did not maintain this Plan. This Service includes service performed while a proprietor or partner.

	
(c)  

	
To include Service with an entity while that entity was an Affiliate, to the extent it has not already been credited.

	
(d)  

	
To include an Employee’s Qualified Military Service to the extent it has not already been credited.

	
(e)  

	
To include a Period of Severance under either of the following conditions (service spanning rule):

	
(i)  

	
the Period of Severance immediately follows a period during which an Employee is not absent from work and which ends within 12 months; or

	
(ii)  

	
the Period of Severance immediately follows a period during which an Employee is absent from work for any reason other than quitting, being discharged, or retiring (such as a leave of absence or layoff) and ends within 12 months of the date he or she was first absent.

If an Employee has more than one Period of Service or if all or a part of a Period of Service is not counted, his or her Service shall be determined by adjusting his or her Employment Commencement Date so that he or she has one continuous period of Service equal to the aggregate of all his or her countable Periods of Service.

	
1.50  

	
“Severance from Service Date” means the earlier of:

	
(a)  

	
the date of an Employee’s Severance from Employment with the Employer and its Affiliates by reason of quit, discharge, retirement or death; or

	
(b)  

	
in the case of an Employee who is absent from service (with or without pay) with the Employer and its Affiliates for any reason other than quit, discharge, retirement or death (such as vacation, holiday, sickness, disability, pregnancy, leave of absence or layoff), the first 12-month anniversary of the initial date of such absence; provided, however, that if the Employee is absent from service by reason of (i) a leave of absence granted by the Employer or an Affiliate (including but not limited to an FMLA Leave) and he or she returns to service with the Employer or an Affiliate at the end of such leave of absence, or (ii) Qualified Military Service and he or she returns to service within the period that his or her re-employment rights are protected by federal law, then he or she shall not be deemed to have had a Severance from Service Date by reason of such absence.

  

9

  

 

                                                                    

Subject to (b) above, the Severance from Service Date of an Employee who is absent from service with the Employer or an Affiliate beyond the first 12-month anniversary of the initial date of such absence: (i) by reason of the Employee’s pregnancy; (ii) by reason of the birth of a child of the Employee; (iii) by reason of the placement of a child with the Employee for adoption by him or her; or (iv) for the purpose of caring for such child immediately following such birth or adoption, is the second 12-month anniversary of the initial date of such absence. The period between the first and second anniversaries of the maternity or paternity leave of absence is not a period of Service and is not a Period of Severance. Any period of unpaid FMLA Leave shall not be treated or counted toward a One-Year Period of Severance.

	
1.51  

	
“Totally and Permanently Disabled” means that the Participant has either qualified for benefits under the Employer’s long-term disability plan or has been determined to be “totally disabled” under the federal Social Security Act. The determination under the Employer’s long-term disability plan or the federal Social Security Act is conclusive for purposes of this Plan.

	
1.52  

	
“Trust Agreement” means the agreement between the Company and Trustee established for the purpose of holding and administering the Trust Fund under the provisions of the Plan.

	
1.53  

	
“Trust Fund” means the total funds held under the Trust Agreement for the purpose of providing benefits for Participants. These funds result from Contributions made under the Plan, which are forwarded to the Trustee to be deposited in the Trust Fund, and earnings thereon.

	
1.54  

	
“Trustee” means the trustee or trustees under the Trust Agreement. The term Trustee as it is used in this Plan is deemed to include the plural unless the context clearly indicates otherwise.

	
1.55  

	
“USERRA” means the Uniformed Services Employment and Reemployment Rights Act of 1994.

	
1.56  

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

	
1.57  

	
“Years of Service” means an Employee’s Service disregarding any modifications which exclude Service.

  

10

  

 

                                                                   

ARTICLE 2

PARTICIPATION

	
2.01  

	
Eligibility

An Employee employed by an Employer shall become an Eligible Employee upon the completion of one Hour of Service.

	
2.02  

	
Commencement of Participation

Any Employee who was an Active Participant in the Plan on December 31, 2010 shall be a Participant in this Plan on January 1, 2011, as long as he or she remains an Eligible Employee on such date. An Eligible Employee shall become an Active Participant in the Plan upon making Elective Deferral Contributions to the Plan pursuant to the Plan’s Automatic or Affirmative Elective Deferral Contribution provisions, as set forth in Article 3.

	
2.03  

	
Change in Participation

 

	
  

	
(a)

	
Change from Active Participant to Inactive Participant Status: If an Active Participant ceases to be an Eligible Employee because of a change in employment status including but not limited to a severance of employment or a transfer to the employ of an Affiliate that is not an Employer, or if he or she elects to discontinue making any Elective Deferral Contributions, he or she shall become an Inactive Participant, and the following shall apply:

	
  

	
(i)

	
An Active Participant shall become an Inactive Participant on the date indicated in (A) or (B) below, as applicable:

	
  

	
(A)

	
An Active Participant who ceases to be an Eligible Employee because of a change in his or her employment status shall become an Inactive Participant as of the date of his or her change in status.

	
  

	
(B)

	
An Active Participant who elects to discontinue making any Elective Deferral Contributions shall become an Inactive Participant as soon as practicable following the effective date of the election.

	
  

	
(ii)

	
An Inactive Participant’s Account shall continue to be revalued. An Inactive Participant shall not be eligible to make any Elective Deferral Contributions or to receive Matching Contributions for as long as he or she remains an Inactive Participant, other than any Matching Contributions due, if any, for the Plan Year in which he or she became an Inactive Participant.

	
  

	
(iii)

	
An Inactive Participant generally shall have the same rights as an Active Participant to make an election regarding Investment Funds or to designate a Beneficiary.

  

11

  

	
  

	
(iv)

	
When an Inactive Participant’s employment terminates for any reason, he or she (or in the event of death, his or her Beneficiary) shall be entitled to the benefits provided under the applicable provisions of this Plan.

	
  

	
(v)

	
Notwithstanding any provision in this Section to the contrary, except as otherwise noted in this Plan or as required by law, any Inactive Participant who is not an Employee on the effective date of this restatement shall be entitled to benefits determined according to the provisions of the prior document. Such individual shall become subject to this restated Plan document as of his or her Reemployment Commencement Date, if any, unless such reemployment is as a Leased Employee.

	
  

	
(b)

	
Return to Active Participant Status: A Participant who became an Inactive Participant as a result of a change in employment status shall be eligible to become an Active Participant as of any payroll period following the date on which he or she again becomes an Eligible Employee. An Inactive Participant who elected to discontinue making any Elective Deferral Contributions, or who returns from Qualified Military Service or a FMLA Leave, may resume making Elective Deferral Contributions as of any subsequent payroll period, if such Participant is an Eligible Employee as of such date.

                                                                   

	
2.04  

	
Termination of Participation

A Participant shall cease to participate in the Plan on the date he or she is no longer an Eligible Employee and his or her account balance is zero.

	
2.05  

	
Erroneous Omission of Eligible Employee

If, in any Plan Year, an Eligible Employee who should be included as an Active Participant in the Plan is erroneously omitted, his or her Employer shall make a corrective contribution with respect to him or her as required by applicable law or Regulation.

  

12

  

 

                                                                  

ARTICLE 3

CONTRIBUTIONS

	
3.01  

	
Automatic Deferral Election

 

	
  

	
(a)

	
Automatic Elective Deferral Contributions: The Plan provides for an automatic default election to make Elective Deferral Contributions.

	
  

	
(i)

	
The Automatic Deferral Election shall apply when an Eligible Employee first becomes eligible to make Elective Deferral Contributions (or again becomes eligible after a period during which he or she was not an Active Participant, e.g., during a leave of absence or during a suspension on account of a hardship distribution), unless and until he or she affirmatively elects to modify the Automatic Deferral Election.

	
  

	
(ii)

	
The Automatic Deferral Election provides for an Elective Deferral Contribution equal to 6% of Compensation per pay period that will be allocated to a Participant’s Elective Deferral Contributions sub-account.

	
  

	
(iii)

	
The Eligible Employee shall be provided a notice that explains the Automatic Deferral Election and his or her right to make an affirmative election to change the Automatic Deferral Election in accordance with Section 3.01(b). The notice shall include the procedure for exercising those rights and the timing for implementing any such election.

	
  

	
(iv)

	
If a Participant for whom an Automatic Deferral Election is in effect does not direct the investment of such contributions, the automatic Elective Deferral Contributions shall be invested in the applicable qualified default investment alternative specified by the Named Fiduciary. The Participant may change the manner in which his or her Elective Deferral Contributions are invested at any time in accordance with Article 5.

	
  

	
(b)

	
Modifying the Automatic Deferral Election: A Participant may change the Automatic Deferral Election by affirmatively electing to:

	
  

	
(i)

	
make Elective Deferral Contributions at a percentage of Compensation that is other than the percentage specified in Section 3.01(a)(ii); or

	
  

	
(ii)

	
make no Elective Deferral Contributions.

If the Participant elects to contribute a percentage of Compensation other than the percentage provided for under the Automatic Deferral Election, the percentage selected must comply with any other applicable limitations under the Plan.

	 	
(c) 

	
Annual Notice of Automatic Deferral Election: At least thirty (30) days, but not more than ninety (90) days, before the beginning of each Plan Year, each Active Participant shall be provided a notice that explains the Automatic Deferral Election and his or her right to affirmatively modify the Automatic Deferral

 

  

13

  

 

                                                                   

Election. The notice shall include the procedure for exercising that right and the timing for implementing any such election.

	
3.02  

	
Affirmative Election to make Elective Deferral Contributions

 

	
  

	
(a)

	
Elective Deferral Contribution Affirmative Election: Subject to the limitations of Article 4, each Participant may elect, through payroll deduction, to have his or her Employer make Elective Deferral Contributions to the Plan on his or her behalf in an amount from 1% to 75% of the Compensation that would otherwise be payable to him or her each payroll period. Any election made by a Participant to start contributions, or to change the percentage of his or her Elective Deferral Contributions, shall become effective as soon as practicable after the date such election is filed with the Plan Administrator, providing that the Participant is an Eligible Employee on such date. A Participant’s Elective Deferral Contributions shall be allocated to his or her Elective Deferral Contributions sub-account. If a Participant who affirmatively elects to make Elective Deferral Contributions does not direct the investment of such contributions, the Elective Deferral Contributions shall be invested in the applicable qualified default investment alternative specified by the Named Fiduciary. A Participant may change the manner in which his or her Elective Deferral Contributions are invested at any time in accordance with Article 5.

	
  

	
(b)

	
Modifying the rate of Elective Deferral Contributions: A Participant may elect to change the rate of, or to discontinue, his or her Elective Deferral Contributions at any time. Such election shall be effective as soon as practicable following the date the election is filed with the Plan Administrator.

	
  

	
(c)

	
Modification in Contributions to Comply with Limitations: Notwithstanding the foregoing, during any Plan Year, the Plan Administrator may require a Participant to decrease or suspend his or her Elective Deferral Contributions to the extent necessary to comply with the limitations of Article 4 for that Plan Year.

	
3.03  

	
Catch-Up Contributions

In addition to Elective Deferral Contributions otherwise permitted to be made in accordance with the terms of this Article 3, all Eligible Employees who are age 50 or over by the end of the Plan Year shall be eligible to make Catch-Up Contributions in accordance with, and subject to, the limitations of Code Section 414(v). Catch-Up Contributions may not exceed the dollar limit on Catch-Up Contributions under Code Section 414(v)(2)(B)(i), as adjusted for cost-of-living increases. Catch-Up Contributions shall not be taken into account for purposes of Section 3.04 and Article 9.

	
3.04  

	
Limitation on Elective Deferral Contributions

No Participant shall be permitted to make Elective Deferral Contributions under this Plan, or any other qualified plan, during any taxable year in excess of the dollar limitation contained in Code Section 402(g) in effect for such taxable year, except to the extent such Participant is eligible to make Catch-up Contributions pursuant to Section 3.03 above.

  

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3.05  

	
Matching Contributions

 

	
  

	
(a)

	
Matching Contributions: An Employer shall make Matching Contributions in an amount equal to 100% of Elective Deferral Contributions which are not over 3% of Compensation for the payroll period, plus 50% of Elective Deferral Contributions which are in excess of 3% of Compensation but are not over 6% of Compensation, to the extent such Elective Deferral Contributions do not exceed the applicable limits under Code Sections 401(a)(17), 402(g) or 415(c). In accordance with Article 4, Matching Contributions shall not be made on Excess Elective Deferrals. Any Matching Contributions made with respect to Excess Elective Deferrals shall be withdrawn (with Allocable Income/Loss thereon) from such Participant’s Account and applied to reduce future Matching Contributions.

	
  

	
(b)

	
Pay Period Calculation: Subject to the last sentence of subsection (a), Matching Contributions shall be calculated based on Elective Deferral Contributions and Compensation for a pay period and are made on a pay period basis for all persons who were Active Participants at any time during that pay period.

	
  

	
(c)

	
Match in Qualifying Employer Securities: Notwithstanding any provision of Article 5 to the contrary, an Employer may make all or any portion of the Matching Contributions, which are to be invested in Qualifying Employer Securities, to the Trustee in the form of Qualifying Employer Securities. Effective December 1, 2006, all Participants may divest themselves of any portion, or all, of the Qualifying Employer Securities held in their Matching Contribution sub-accounts under the Plan. Participants who are subject to Section 16 of the Securities Exchange Act of 1934, will need to obtain approval from the Company’s legal department before the divestiture of any Qualifying Employer Securities is processed, and all Participants shall be subject to such securities law compliance procedures as the Company shall determine.

 

	
3.06  

	
Rollover Contributions

The Plan will accept, on behalf of an Eligible Employee, Rollover Contributions or direct rollovers (including a rollover contribution or direct rollover received by the Eligible Employee as a surviving spouse, or a spouse or former spouse who is an alternate payee under a qualified domestic relations order as defined in Code Section 414(p)) of distributions from the types of plans specified below.

 

	
  

	
(a)

	
Direct Rollovers: The Plan will accept a direct rollover of an eligible rollover distribution (as defined in Section 6.04) from:

	
  

	
(i)

	
a qualified plan described in Code Section 401(a) or 403(a);

	
  

	
(ii)

	
an annuity contract described in Code Section 403(b); or

	
  

	
(iii)

	
an eligible plan under Code Section 457(b) maintained by a state, political subdivision of a state, or any agency or instrumentality of a state or political subdivision of a state.

  

15

  

	 	
(b)

	
Participant Rollover Contributions from Other Plans: The Plan will accept a Participant contribution of an eligible rollover distribution (as defined in Section 6.04) from:

	
  

	
(i)

	
a qualified plan described in Code Section 401(a) or 403(a);

	
  

	
(ii)

	
an annuity contract described in Code Section 403(b); or

	
  

	
(iii)

	
an eligible plan under Code Section 457(b) maintained by a state, political subdivision of a state, or any agency or instrumentality of a state of political subdivision of a state.

	 	
(c)

	
Participant Rollover Contributions from IRAs: The Plan will not accept a Participant Rollover Contribution or the portion of a distribution from an individual retirement account or individual retirement annuity described in Code Sections 408(a), 408(b) or 408A.

	 	
(d)

	
A Rollover Contribution shall be allowed only in cash and must be made according to procedures established by the Plan Administrator.

	 	
(e)

	
The Plan will not accept a Rollover Contribution of after-tax contributions and earnings thereon.

	 	
(f)

	
In no event will any transfer of assets include any assets which would cause this Plan to be a “transferee plan” under Code Section 401(a)(11)(B)(iii)(III).

	 	
(g)

	
The Plan Administrator may condition acceptance of any Rollover Contribution upon receipt of such documents as it may require.

	 	
(h)

	
If an Eligible Employee makes a contribution intended to be a Rollover Contribution but which the Plan Administrator later determines did not qualify as a Rollover Contribution, the Trustee shall distribute, as soon as administratively feasible after that determination is reached, the amount of such contribution adjusted for Allocable Income/Loss.

	 	
(i)

	
If an Eligible Employee is not an Active Participant when the Rollover Contribution is made, he or she shall be deemed to be an Active Participant only for the purpose of investment and distribution of the Rollover Contribution. No Employer Contributions shall be made for or allocated to such an Eligible Employee until the time he or she makes Elective Deferral Contributions.

	 	
(j) 

	
Rollover Contributions made by an Eligible Employee shall be credited to his or her Account. The portion of a Participant’s Account resulting from Rollover Contributions is fully (100%) vested and nonforfeitable at all times.

 

  

16

  

 

	
3.07

	
Vesting

	
  

	
(a)

	
Vested Account: A Participant’s Elective Deferral Contributions and Rollover Contributions shall be fully (100%) vested and nonforfeitable at all times. Notwithstanding any other provision of the Plan to the contrary, all Matching Contributions made on or after January 1, 2006 shall be 100% vested at all times.

	
  

	
(b)

	
Any references in the Plan to forfeitures of Matching Contributions made on or after January 1, 2006 due to insufficient Years of Service shall be disregarded.

	
3.08

	
Return of Contributions to Employer

Notwithstanding any provision of this Plan to the contrary, to the extent permitted by applicable law, contributions shall be returned to an Employer under the following circumstances:

	
  

	
(a)

	
Mistake: If, and to the extent that, a contribution was made by a mistake of fact, the Plan Administrator may direct the Trustee to return the contribution to an Employer at any time within one (1) year after the payment of such contribution, provided that Trust Fund earnings attributable to such mistaken contribution will not be returned to the Employer but must remain in the Trust Fund.

	
  

	
(b)

	
Nondeductibility: Any contributions made to this Plan by an Employer shall be subject to the express condition that such contributions will be deductible against such Employer’s federal income tax return under Code Section 404. If, and to the extent that, the Internal Revenue Service determines that a contribution is not deductible under Code Section 404, the Plan Administrator may direct the Trustee to return the contribution to an Employer at any time within one (1) year after the date of disallowance.

	
  

	
(c)

	
Adjustments: Except as this Plan may otherwise provide, any contribution returned shall be adjusted to reflect its proportionate share of any Trust Fund gain or loss if, and to the extent, allowable under applicable Regulations.

	
  

	
(d)

	
Limitation on Rights: Notwithstanding any provision of this Plan to the contrary, the right or claim of any Participant or Beneficiary to any asset of the Trust Fund or to any benefit under the Plan shall be subject to and limited by the provisions of this Section.

	
3.9

	
Veterans Rights

Notwithstanding any provision of this Plan to the contrary, contributions, benefits and service credit with respect to Qualified Military Service will be provided in accordance with the provisions of USERRA and Code Section 414(u). Any Employee who is absent from employment solely by reason of Qualified Military Service shall be subject to the following special rules and have the privileges described below:

  

17

  

 

 

                                                               

	 	
(a)

	
If, at the time of the commencement of his or her absence for Qualified Military Service, an Eligible Employee was not yet a Participant by reason of failure to satisfy the minimum service requirements of the Plan, such Eligible Employee shall be deemed to have become a Participant as of the date on which he or she would otherwise have become a Participant had such employment not been interrupted by Qualified Military Service.

	 	
(b)

	
Solely for the purposes of determining all limitations applicable under the Plan and the Code, all “make-up contributions” by the Participant or the Employer pursuant to this Section shall be deemed to be made in the Plan Year in which originally missed. For the purposes of applying these limitations, the Participant will be imputed with Compensation in an amount equal to the amount the Participant would have earned during his or her period of Qualified Military Service in the Plan Year (or the fraction thereof) had he or she been employed through the entirety of such period at his or her regular rate of wages or salary in effect (including any contractual holiday, vacation or sick pay, contractual bonuses and other contractual direct remuneration) immediately prior to the commencement of such Qualified Military Service.

	 	
(c)

	
Any Participant who was an Eligible Employee and resumes employment with the Employer following Qualified Military Service within the time during which his or her reemployment rights are protected by the provisions of USERRA shall be entitled to make up missed Elective Deferral Contributions at any time during the period commencing with his or her resumption of employment with the Employer (whether or not then an Eligible Employee) and ending on the earliest to occur of: (i) the date that occurs five (5) years from the date on which such Qualified Military Service absence commenced; (ii) the date on which his or her employment terminates after having been resumed following Qualified Military Service; or (iii) the date that occurs after a passage of time commencing on his or her resumption of employment following Qualified Military Service which is equal to three (3) times the duration of such absence for Qualified Military Service. Any such “make-up” Elective Deferral Contributions shall be made by payroll withholding unless otherwise permitted by applicable Regulations.

	 	
(d)

	
To the extent that the Employer is required to make contributions to the Plan for any Participant in order to comply with the provisions of USERRA and Code Section 414(u), such contributions shall be made when the Participant presents himself or herself to resume services as an Employee of an Employer or an Affiliate within the time that his or her reemployment rights are protected under federal law.

	 	
(e)

	
To the extent the Participant makes “make-up” Elective Deferral Contributions described in subsection (c) above, the Employer shall contribute for allocation to the Participant’s Account an amount equal to the Matching Contributions that would have been made for the benefit of the Participant if the Participant’s make-up Elective Deferral Contributions had been made at the time his or her imputed

  

18

  

                                                               

 

 

Compensation would have been earned (without adjustment to reflect investment gains or losses or income or expenses that would have been attributable thereto).

	
  

	
(f)

	
In the case of a Participant who dies while on Qualified Military Service on or after January 1, 2007, the Beneficiaries of such Participant shall be entitled to any additional benefits (other than benefit accruals relating to the period of Qualified Military Service) provided under the Plan had the Participant resumed employment and then on the following day terminated on account of death.

	
  

	
(g)

	
Effective January 1, 2009, a Participant on Qualified Military Service receiving a differential wage payment (as defined in Code Section 3401(h)(2)) shall be treated as an Employee of the Employer making the payment and the differential wage payment shall be treated as Limitation Compensation (as defined in Section 4.04(c)) and as Compensation.

	
3.10

	
Corrective Contributions

	
  

	
(a)

	
If it becomes necessary to correct mistakes made in amounts distributed from or credited to Accounts, to restore the portion of a Participant’s Account which was forfeited pursuant to any provision of the Plan or if an Employee should have been included as a Participant but is mistakenly excluded for any reason, correction or restoration shall first be made out of Employer Contributions and forfeitures and then out of Trust Fund earnings for the Plan Year in question, but only to the extent that such amounts have not already been allocated under the provisions of the Plan. Any additional amounts needed may be provided by a special contribution to the Plan which the Company, in its sole discretion (but subject to the applicable limitations on deductible contributions and maximum annual additions and considering the rules on deductibility under Code Section 162), may elect to make. Any such correction of mistake or special contribution shall be corrected, allocated or credited in the fashion specified by the Plan Administrator.

	
  

	
(b)

	
The provisions of this subsection (b) shall apply only to an Employee or former Employee who becomes entitled to back pay by an award or agreement of an Employer without regard to mitigation of damages. If a person to whom this subsection applies was or would have become an Eligible Employee after such back pay award or agreement has been effected, and if he or she had not previously elected (or deemed to have elected) to make Elective Deferral Contributions pursuant to Sections 3.01 or 3.02 but, within 30 days of the date he or she receives notice of the provisions of this Section, makes an election to make Elective Deferral Contributions in accordance with Section 3.02 (retroactive to any date as of which he or she was or has become eligible to do so), then he or she may elect that any Elective Deferral Contributions not previously made on his or her behalf but which, after application of the foregoing provisions of this subsection, would have been made under the provisions of Article 3 shall be made out of the proceeds of such back pay award or agreement. In addition, if any such Employee or former Employee would have been eligible to participate in the

  

19

  

 

                                                                   

allocation of Matching Contributions under the provisions of Article 3 for any prior Plan Year after such back pay award or agreement has been effected, his or her Employer shall make Matching Contributions equal to the amount of the Matching Contributions which would have been allocated to him or her under the provisions of Article 3 as in effect during each such Plan Year. The amounts of such additional Employer contributions shall be credited to his or her Account. Any additional Employer contributions made pursuant to this subsection shall be made in accordance with, and subject to the limitations of, the applicable provisions of the Plan.

	
3.11

	
Contributions under Merged Plans

Notwithstanding any provision of this Plan to the contrary, the Employers may make matching or non-elective Employer Contributions with respect to a plan that merged into this Plan in accordance with the provisions of such merged plan as in effect immediately prior to such merger. The Plan Administrator shall establish within the Accounts of affected Participants such sub-accounts as may be necessary in order to maintain records of such Employer contributions and subsequent earnings or losses thereon, and of any applicable vesting requirements thereon.

  

20

  

 

                                                                   

ARTICLE 4

LIMITATIONS ON CONTRIBUTIONS

	
4.01

	
Dollar Limitation on Elective Deferral Contributions

	
  

	
(a)

	
A Participant is not permitted to defer under this Plan or any other Qualified Plan, as defined in Section 9.01(a), maintained by the Company or an Affiliate during any calendar year an amount greater than the 401(k) Dollar Limit. For this purpose, the “401(k) Dollar Limit” is the annually adjusted dollar limitation contained in Code Section 402(g) (plus, if applicable, the dollar limitation on catch-up contributions under Code Section 414(v)) in effect for such calendar year. For purposes of this subsection (a), “Excess Deferral Amount” means the amount of a Participant’s Elective Deferral Contributions (plus, if applicable, catch-up contributions under Code Section 414(v)) for any calendar year in excess of the 401(k) Dollar Limit.

	
  

	
(i)

	
In any calendar year, the Plan Administrator has the discretion to suspend Elective Deferral Contributions of a Participant at any time during the calendar year after either the Plan Administrator is notified by the Participant that the 401(k) Dollar Limit under this subsection (a) is or will be exceeded during the calendar year by his or her contributions, or the Plan Administrator itself determines that the 401(k) Dollar Limit is or will be exceeded during the calendar year by such Participant.

	
  

	
(ii)

	
If in any calendar year the aggregate of the Elective Deferral Contributions (plus, if applicable, catch-up contributions as defined in Code Section 414(v)) made on a Participant’s behalf under this Plan, plus his or her other elective deferrals under any other qualified cash or deferred arrangement (as defined in Code Section 401(k)) maintained by any sponsor, under any simplified employee pension (as defined in Code Section 408(k)), or used to have an annuity contract purchased on his behalf under Code Section 403(b), exceed the 401(k) Dollar Limit, then no later than the March 1st following such calendar year he or she may notify the Plan Administrator, in a manner prescribed by the Plan Administrator: (i) that he or she has exceeded the limitation and (ii) of the amount of his or her Elective Deferral Contributions (or, if applicable, catch-up contributions under Code Section 414(v)) under this Plan which he or she wants distributed to him or her (as adjusted for Allocable Income/Loss), notwithstanding his or her contribution election, so that he or she will not exceed the limitation. The Plan Administrator may require reasonable proof that he or she has exceeded the 401(k) Dollar Limit.

 

	
  

	
(iii)

	
If in any calendar year the aggregate of the Elective Deferral Contributions (plus, if applicable, catch-up contributions under Code Section 414(v)) made on a Participant’s behalf under the Plan, plus his or her other elective deferrals under any other qualified cash or deferred arrangement (as defined in Code Section 401(k)) maintained by the

  

21

  

 

                                                                   

Company or an Affiliate, under a simplified employee pension (as defined in Code Section 408(k)) sponsored by the Company or an Affiliate, or used to have the Company or an Affiliate purchase an annuity contract on his or her behalf under Code Section 403(b), exceed the 401(k) Dollar Limit, then he or she shall be deemed to have notified the Plan Administrator that: (i) he or she has exceeded the limitation and (ii) he or she wants distributed to him or her the amount of such excess deferrals (as adjusted for Allocable Income/Loss) notwithstanding his or her contribution election so that he or she will not exceed the 401(k) Dollar Limit. No later than the next April 15, the Plan Administrator may (but shall not be obligated to) make the distribution requested, or deemed to have been requested, by him or her under this paragraph. Such distribution may be made notwithstanding any other provision of law or this Plan. Except as otherwise provided by Regulations, such distribution shall not reduce the amount of Elective Deferral Contributions considered as Annual Additions under Section 4.04(b). Any amounts not distributed under this paragraph shall continue to be held in accordance with the terms of the Plan and Trust Fund.

	
  

	
(iv)

	
After a distribution of an Excess Deferral Amount under this subsection, Matching Contributions made under Section 3.05 with respect to such distributed Excess Deferral Amount shall be withdrawn (as adjusted for Allocable Income/Loss) from such Participant’s account and applied to reduce future Matching Contributions under Section 3.05.

	 	
(b)

	
During any Plan Year, the Elective Deferral Contributions made on behalf of a Participant under this Plan and any other plan maintained by an Employer or an Affiliate for any taxable year shall not exceed the applicable dollar limit for such year under Section 402(g) of the Code, except to the extent permitted under Section 3.03 for contributions made in accordance with Section 414(v) of the Code. In order to prevent the limitation of this Section from being exceeded for any Plan Year, the Plan Administrator may prospectively limit the percentage or amount of Compensation which a Participant may elect to have contributed as Elective Deferral Contributions.

	 	
(c)

	
If the Elective Deferral Contributions (as defined in Code Section 402(g)(3)) of a Participant to this Plan and any plan of an Employer or an Affiliate exceed the limitation of the preceding subsection as of the end of any Plan Year, or if prior to March 1 following the end of any Plan Year a Participant has submitted to the Plan Administrator a written certification stating that all or part of his or her Elective Deferral Contributions to the Plan constitute Excess Elective Deferrals made to the Plan, such Participant shall be given a distribution of such excess amount from his or her Elective Deferral Contribution Account (as adjusted for Allocable Income/Loss, no later than April 15 following the end of the taxable year with respect to which such excess amount was contributed. Notwithstanding the distribution of any Excess Elective Deferrals, such Excess Elective Deferrals shall be included for the Plan Year in which such contributions were made for

  

22

  

 

                                                                   

purposes of computing the Actual Deferral Ratio (as defined in Section 4.02) of a Highly Compensated Employee but not of a Non-highly Compensated Employee.

	
  

	
(d)

	
If, as a result of the application of the preceding subsections, a Participant’s Elective Deferral Contributions are reduced, the corresponding Matching Contributions, if any, shall be forfeited.

	
4.02

	
ADP Limitation on Elective Deferral Contributions

	
  

	
(a)

	
Effective January 1, 2006, the Plan is intended to be a “safe harbor” 401(k) plan under Code Section 401(k)(12) by making safe harbor matching contributions. Consequently, this Section 4.02 is expected to be of no force or effect with respect to Elective Deferral Contributions made on or after January 1, 2006, and all references in the Plan to such Section or to the Average Deferral Percentage Test (or ADP Test) shall be disregarded with respect to any such Elective Deferral Contributions.

Notwithstanding the preceding paragraph, if the Plan is amended so as not to be a “safe harbor” 401(k) plan with respect to Elective Deferral Contributions made on or after January 1, 2006 with respect to all or any group of Participants, such amendment also shall make the provisions of the remainder of this Section 4.02 applicable to such Participants.

As of the end of each Plan Year, after Excess Elective Deferrals have been determined, the Plan must satisfy the Average Deferral Percentage Test (the “ADP Test”). The ADP Test shall be satisfied using the current year testing method, unless the Company has elected to use the prior year testing method.

	
  

	
(i)

	
The ADP for Participants who are Highly Compensated Employees for the Plan Year and the prior year’s ADP for Participants who were Non-highly Compensated Employees for the Plan Year must satisfy one of the following tests:

	
  

	
(A)

	
The ADP for Participants who are Highly Compensated Employees for the Plan Year shall not exceed the ADP for Participants who were Non-highly Compensated Employees for the prior Plan Year multiplied by 1.25; or

	
  

	
(B)

	
The ADP for Participants who are Highly Compensated Employees for the Plan Year:

	
  

	
(1)

	
shall not exceed the ADP for Participants who were Non-highly Compensated Employees for the Plan Year multiplied by 2.00, and

	
  

	
(2)

	
the difference between such ADPs is not more than 2 percentage points.

  

23

  

 

                                                                   

	 	
(b)

	
The Actual Deferral Ratio for any Eligible Participant who is a Highly Compensated Employee for the Plan Year and who is eligible to have Elective Deferral Contributions (and Qualified Matching Contributions, Qualified Nonelective Contributions or both, if treated as Elective Deferral Contributions for purposes of the ADP Test) allocated to his or her account under two or more arrangements described in Code Section 401(k) that are maintained by an Employer or an Affiliate shall be determined as if such Elective Deferral Contributions (and such Qualified Matching Contributions, Qualified Nonelective Contributions or both, if applicable) were made under a single arrangement. If a Highly Compensated Employee participates in two or more cash or deferred arrangements that have different plan years, the Actual Deferral Ratio for such Highly Compensated Employee for a Plan Year shall be determined by accumulating all contributions under such plans that would be taken into account for purposes of computing the Actual Deferral Ratio for the plan year if such other plans had the same Plan Year. The foregoing notwithstanding, plans shall be treated as separate if mandatorily disaggregated under the Regulations of Code Section 401(k).

	 	
(c)

	
For purposes of the ADP Test, Elective Deferral Contributions, Qualified Matching Contributions treated as Elective Deferral Contributions and Qualified Nonelective Contributions treated as Elective Deferral Contributions must be made before the end of the 12-month period immediately following the Plan Year to which the contributions relate. The Plan Administrator shall maintain records sufficient to demonstrate satisfaction of the ADP Test and the amount of Qualified Matching Contributions treated as Elective Deferral Contributions or Qualified Nonelective Contributions treated as Elective Deferral Contributions, or both, used in such test.

	 	
(d)

	
In order to prevent or correct a failure of the ADP Test for a Plan Year, any one or any combination of the following preventative or corrective actions may be used:

	
  

	
(i)

	
Elective Deferral Contributions for Highly Compensated Employees may be reduced. The Named Fiduciary, or its delegate, may direct the Employers to refrain from making Elective Deferral Contributions on behalf of Highly Compensated Employees to ensure that the requirements set forth above are satisfied for each Plan Year;

	
  

	
(ii)

	
Qualified Matching Contributions or Qualified Nonelective Contributions may be contributed for that Plan Year. The Company, by action of an appropriate officer, may direct the Employers to contribute Qualified Matching Contributions or Qualified Nonelective Contributions that will be treated as Elective Deferral Contributions for that Plan Year;

	
  

	
(iii)

	
Elective Deferral Contributions for Highly Compensated Employees may be treated as Catch-Up Contributions. The Named Fiduciary, or its delegate, may direct that, to the extent necessary to satisfy such test, Excess Contributions and any income or loss allocable thereto which have

  

24

  

 

                                                                   

been allocated to the Participants’ Elective Deferral Contribution Accounts shall, if it violates no other provision of this Plan, be treated as Catch-Up Contributions; and

	
  

	
(iv)

	
Elective Deferral Contributions for Highly Compensated Employees may be returned from the Plan. The Named Fiduciary, or its delegate, may direct that, to the extent necessary to satisfy such test, Excess Contributions and any income or loss allocable thereto shall be returned from the Plan to the Highly Compensated Employees before the close of the next Plan Year.

	 	
(e)

	
Excess Contributions are determined in the following manner. First, the amount of the Actual Deferral Ratio of the Highly Compensated Employee with the highest Actual Deferral Ratio shall be hypothetically reduced to satisfy the ADP Test or to cause such ratio to equal the Actual Deferral Ratio of the Highly Compensated Employee with the next highest ratio, whichever occurs first. This process is repeated until the ADP Test is satisfied. The total amount of Excess Contributions is equal to the sum of such hypothetical reductions multiplied, in each case, by the Highly Compensated Employee’s Compensation.

	 	
(f)

	
The Elective Deferral Contributions of the Highly Compensated Employee with the largest Elective Deferral Contributions shall be reduced by the amount of Excess Contributions or, if less, by the amount needed to equal the Elective Deferral Contributions of the Highly Compensated Employee with the next largest Elective Deferral Contributions. This process shall be repeated with the remaining amount of Excess Contributions until the total amount of Excess Contributions is accounted for. If these reductions are made, the ADP Test is treated as being satisfied regardless of whether the Actual Deferral Ratios, if recalculated after the reductions, satisfy the ADP Test.

	 	
(g)

	
The reductions required by Section 4.01 shall be applied prior to the reductions and tests of this Section 4.02. The amount of Excess Contributions which are treated as Catch-Up Contributions or are returned from the Plan to a Highly Compensated Employee shall be reduced by the amount of Excess Contributions previously treated as Catch-Up Contributions or previously returned with respect to such Highly Compensated Employee for the same Plan Year. Any Excess Contributions which are treated as Catch-Up Contributions shall remain subject to the nonforfeitability requirements and distribution limitations that apply to Elective Deferral Contributions.

	 	
(h)

	
If the Company elects to use Qualified Matching Contributions or Qualified Nonelective Contributions for purposes of the ADP Test, the Actual Deferral Ratio for Non-highly Compensated Employees for the current year will be determined by taking into account only:

	
  

	
(i)

	
Elective Deferral Contributions for those Non-highly Compensated Employees that are taken into account for purposes of the ADP Test (and

  

25

  

 

                                                                   

not the ACP Test) under the current year testing method for the current year; and

	
  

	
(ii)

	
Qualified Matching Contributions or Qualified Nonelective Contributions that are allocated to the accounts of those Non-highly Compensated Employees as of a date during the current year, used to satisfy the ADP Test (but not the ACP Test) under the current year testing method for the current year and that meet the requirements of subsection (i) below.

Thus, if the Company elects to use Qualified Matching Contributions or Qualified Nonelective Contributions, the following contributions made during the current year will be disregarded:

	
  

	
(iii)

	
Qualified Matching Contributions used to satisfy either the ADP Test or ACP Test under the current year testing method for the prior testing year or that fail to meet the requirements of subsection (i) below;

	
  

	
(iv)

	
Qualified Nonelective Contributions used to satisfy either the ADP Test or ACP Test under the current year testing method for the prior testing year or that fail to meet the requirements of subsection (i) below; and

	
  

	
(v)

	
Elective Deferral Contributions taken into account for purposes of the ACP Test under the current year testing method for the current year.

	 	
(i)

	
Qualified Matching Contributions and Qualified Nonelective Contributions may be used to satisfy the ADP Test, but the same amounts cannot be used to satisfy both the ADP Test and the ACP Test. Qualified Matching Contributions on behalf of a Non-highly Compensated Employee will not be taken into account for purposes of the ADP Test to the extent such Qualified Matching Contributions exceed the greatest of:

	
  

	
(i)

	
5% of that Non-highly Compensated Employee’s Compensation;

	
  

	
(ii)

	
that Non-highly Compensated Employee’s Elective Deferral Contributions for such Plan Year; and

	
  

	
(iii)

	
the product of two (2) times the Plan’s representative matching rate (as determined under applicable Regulations) and that Non-highly Compensated Employee’s Elective Deferral Contributions for such Plan Year.

Qualified Nonelective Contributions taken into account for purposes of the ADP Test must satisfy the requirements of Code Section 401(a)(4). Qualified Nonelective Contributions on behalf of a Non-highly Compensated Employee will not be taken into account for purposes of the ADP Test to the extent such Qualified Nonelective Contributions exceed the product of that Non-highly Compensated Employee’s Compensation and the greater of: (x) 5% or (y) two (2)  times  the  Plan’s  representative  contribution  rate  (as  determined  under

  

26

  

 

                                                                   

applicable Regulations). Notwithstanding the preceding sentences, Qualified Nonelective Contributions made in connection with the Davis-Bacon Act, Service Contract Act or similar legislation can be taken into account for purposes of the ADP Test to the extent permitted under Regulation §1.401(k)-2(a)(6)(iv)(D).

	 	
(j)

	
The Excess Contributions shall be adjusted for Allocable Income/Loss.

	 	
(k)

	
Excess Contributions allocated to a Participant shall be distributed from the Participant’s Account resulting from Elective Deferral Contributions. If such Excess Contributions exceed the balance in the Participant’s Account resulting from Elective Deferral Contributions, the balance shall be distributed from the Participant’s Account resulting from Qualified Matching Contributions treated as Elective Deferral Contributions (if applicable) and Qualified Nonelective Contributions treated as Elective Deferral Contributions (if applicable), respectively.

	 	
(l)

	
If, as a result of the application of the preceding paragraphs, a Participant’s Elective Deferral Contributions are reduced, the corresponding Matching Contributions, if any, plus any income and minus any loss allocable thereto, shall be forfeited. Also, Excess Contributions shall be treated as Annual Additions, as defined in Section 4.04.

	 	
(m)

	
Definitions. For purposes of the Plan, the following terms have the following meanings:

	
  

	
(i)

	
“Actual Contribution Ratio” means for each Eligible Employee who has met the eligibility requirements of Section 2.01, for the applicable Plan Year, the sum of his or her: (i) Matching Contributions (other than Matching Contributions made on account of additional Elective Deferral Contributions made pursuant to Section 3.09 and Code Section 414(u)), and (ii) any Qualified Nonelective Contributions and Elective Deferral Contributions treated as Matching Contributions for that Plan Year, divided by the Employee’s Compensation for that Plan Year (provided the Average Deferral Percentage Test is met before the Average Contribution Percentage Test of Section 4.03 is met and continues to be met following the exclusion of those contributions that are used to meet such Average Contribution Percentage Test), and calculated to the nearest one-hundredth of 1%. If a Highly Compensated Employee is eligible to participate in any other qualified retirement plan of an Employer or Affiliate to which matching contributions or after-tax contributions are made, the Actual Contribution Ratio of such Highly Compensated Employee shall be calculated in accordance with, and to the extent required by, Regulations under Code Section 401(m), by treating the Plan and such other qualified retirement plan or plans as a single plan. The Average Contribution Percentage for Highly Compensated Employees shall be adjusted to reflect the Actual Contribution Ratios so calculated for such Highly Compensated Employees.

  

27

  

 

                                                                   

	 	
(ii)

	
“Actual Deferral Ratio” means for each Eligible Employee who has met the eligibility requirements of Section 2.01, for the applicable Plan Year, the sum of his or her: (i) Elective Deferral Contributions; and (ii) amounts treated as Elective Deferral Contributions (other than Catch-Up Contributions made pursuant to Section 3.03 and additional Elective Deferral Contributions made pursuant to Section 3.09 and Code Section 414(u)) for that Plan Year (but excluding Elective Deferral Contributions that are taken into account in determining the Eligible Employee’s Actual Contribution Ratio provided the Average Deferral Percentage Test is met both with and without the exclusion of those contributions), divided by the Employee’s Compensation for that Plan Year, and calculated to the nearest one-hundredth of 1%. If a Highly Compensated Employee is eligible to participate in any other cash or deferred arrangement (within the meaning of Code Section 401(k)) of an Employer or Affiliate, the Actual Deferral Ratio for such Highly Compensated Employee shall be calculated in accordance with, and to the extent required by, Regulations under Code Section 401(k), by treating this Plan and such other cash or deferred arrangement(s) as a single plan. The Average Deferral Percentage for Highly Compensated Employees shall be adjusted to reflect the Actual Deferral Ratio so calculated for such Highly Compensated Employees.

 

	 	
(iii)

	
“Average Contribution Percentage” means the average (expressed as a percentage to the nearest one-hundredth of 1%) of the Actual Contribution Ratios of: (i) the Eligible Employees who are Highly Compensated Employees who met the eligibility requirements of Section 2.01 as a group for the current Plan Year; and (ii) the Eligible Employees who are Non-Highly Compensated Employees who met the eligibility requirements of Section 2.01 as a group for the preceding Plan Year. For purposes of the preceding sentence, the determination of the preceding Plan Year’s Average Contribution Percentage for the above group of Non-Highly Compensated Employees is made without regard to any such individual’s status in the current Plan Year. The Plan Administrator may take into account, in computing the Average Contribution Percentages, Elective Deferral Contributions as provided for in Regulation §1.401(m)-2(a)(6).

	 	
(iv)

	
“Average Deferral Percentage” means the average (expressed as a percentage to the nearest one-hundredth of 1%) of the Actual Deferral Ratios of: (i) the Eligible Employees who are Highly Compensated Employees who met the eligibility requirements of Section 2.01 as a group for the current Plan Year; and (ii) the Non-Highly Compensated Employees who met the eligibility requirements of Section 2.01 as a group for the preceding Plan Year. For purposes of the preceding sentence, the determination of the preceding Plan Year’s Average Deferral Percentage for the above group of Non-Highly Compensated Employees is made without regard to any such individual’s status in the current Plan Year. The Plan Administrator may take into account in computing the Average

  

28

  

 

                                                                   

Deferral Percentages, Qualified Nonelective Contributions and Qualified Matching Contributions meeting the requirements of Regulation §1.401(k)-6, but to the extent such contributions are so taken into account, such contributions shall not be taken into account in determining the Average Contribution Percentage.

	
  

	
(v)

	
“Excess Aggregate Contributions” means, for a Plan Year, the excess of the aggregate amount of Matching Contributions actually taken into account in computing the Actual Contribution Ratio of a Highly Compensated Employee over the maximum of such contributions allowable under the Average Contribution Percentage Test of Section 4.03.

	
  

	
(vi)

	
“Excess Contributions” means, for a Plan Year, the excess of the Elective Deferral Contributions actually taken into account in computing the Actual Deferral Ratio of a Highly Compensated Employee over the maximum of such contributions allowable under the Average Deferral Percentage Test.

	
  

	
(vii)

	
“Qualified Matching Contributions” mean matching Employer Contributions, other than Matching Contributions or Qualified Nonelective Contributions, that are 100% vested when made and meet the additional requirements set forth in Regulation §1.401(k)-6. Qualified Matching Contributions shall be considered another type of Contribution under Section 1.14.

	
  

	
(viii)

	
“Qualified Nonelective Contributions” mean nonelective Employer Contributions, other than Matching Contributions or Qualified Matching Contributions, that are 100% vested when made and meet the additional requirements set forth in Regulation §1.401(k)-6. Qualified Nonelective Contributions shall be considered another type of Contribution under Section 1.14.

	
4.03

	
ACP Limitation on Matching Contributions

	
  

	
(a)

	
Effective January 1, 2006, the Plan is intended to be a “safe harbor” 401(m) plan under Code Section 401(m)(11) by making safe harbor matching contributions. Consequently, this Section 4.03 is expected to be of no force or effect with respect to Matching Contributions made on or after January 1, 2006, and all references in the Plan to such Section or to the Average Contribution Percentage Test (or ACP Test) shall be disregarded with respect to any such Matching Contributions.

Notwithstanding the preceding paragraph, if the Plan is amended so as not to be a “safe harbor” 401(k) plan with respect to Matching Contributions made on or after January 1, 2006 with respect to all or any group of Participants, such amendment also shall make the provisions of the remainder of this Section 4.03 applicable to such Participants. Also, if the Plan is amended to permit after-tax

  

29

  

 

                                                                   

employee contributions made on or after January 1, 2006 with respect to all or any group of Participants, such amendment also shall make the provisions of the remainder of this Section 4.03 applicable to such contributions and such Participants.

As of the end of each Plan Year, the Plan must satisfy the Average Contribution Percentage Test (the “ACP Test”) . The ACP Test shall be satisfied using the current year testing method, unless the Company has elected to use the prior year testing method.

	
  

	
(i)

	
The ACP for Participants who are Highly Compensated Employees for the Plan Year and the ACP for Participants who were Non-highly Compensated Employees for the Plan Year must satisfy one of the following tests:

	
  

	
(A)

	
The ACP for Participants who are Highly Compensated Employees for the Plan Year shall not exceed the ACP for Participants who were Non-highly Compensated Employees for the Plan Year multiplied by 1.25; or

	
  

	
(B)

	
The ACP for Participants who are Highly Compensated Employees for the Plan Year:

	
  

	
(1)

	
shall not exceed the ACP for Participants who were Non-highly Compensated Employees for the Plan Year multiplied by 2.00; and

	
  

	
(2)

	
the difference between such ACPs is not more than 2 percentage points.

	 	
(b)

	
The Actual Contribution Ratio for any Eligible Participant who is a Highly Compensated Employee for the Plan Year and who is eligible to have matching or employee contributions (and Qualified Matching Contributions, Qualified Nonelective Contributions or both, if not treated as Elective Deferral Contributions for purposes of the ADP Test) allocated to his or her account under two or more arrangements described in Code Section 401(m) that are maintained by an Employer or an Affiliate shall be determined as if such matching and employee contributions (and such Qualified Matching Contributions, Qualified Nonelective Contributions or both, if applicable) were made under a single arrangement. If a Highly Compensated Employee participates in two or more arrangements permitting matching or employee contributions that have different plan years, the Actual Contribution Ratio for such Highly Compensated Employee for a Plan Year shall be determined by accumulating all contributions under such plans that would be taken into account for purposes of computing the Actual Contribution Ratio for the plan year if such other plans had the same Plan Year. The foregoing notwithstanding, plans shall be treated as separate if mandatorily disaggregated under the Regulations of Code Section 401(m).

  

30

  

 

                                                                   

	 	
(c)

	
For purposes of the ACP Test, Matching Contributions that are forfeited because the Elective Deferral Contributions to which they relate are treated as Excess Elective Deferrals or Excess Contributions are not taken into account. Also, for purposes of determining the ACP Test, Matching Contributions, Qualified Matching Contributions (not treated as Elective Deferral Contributions) and Qualified Nonelective Contributions treated as Matching Contributions must be made before the end of the 12-month period immediately following the Plan Year to which the contributions relate. The Plan Administrator shall maintain records sufficient to demonstrate satisfaction of the ACP Test and the amount of Qualified Matching Contributions (not treated as Elective Deferral Contributions) or Qualified Nonelective Contributions treated as Matching Contributions, or both, used in such test.

	 	
(d)

	
In order to prevent or correct a failure of the ACP Test for a Plan Year, any one or any combination of the following preventative or corrective actions may be used:

	
  

	
(i)

	
Matching Contributions for Highly Compensated Employees may be reduced. The Named Fiduciary, or its delegate, may direct the Employers to refrain from making Matching Contributions on behalf of Highly Compensated Employees to ensure that the requirements set forth above are satisfied for each Plan Year;

	
  

	
(ii)

	
Qualified Matching Contributions or Qualified Nonelective Contributions may be contributed for that Plan Year. The Company, by action of an appropriate officer, may direct the Employers to contribute Qualified Matching Contributions or Qualified Nonelective Contributions that will be treated as Matching Contributions for that Plan Year; and

	
  

	
(iii)

	
Matching Contributions for Highly Compensated Employees may be returned from the Plan or forfeited. The Named Fiduciary, or its delegate, may direct that, to the extent necessary to satisfy such test, Excess Aggregate Contributions and any income or loss allocable thereto shall, if vested, be returned from the Plan to the Highly Compensated Employees before the close of the next Plan Year and shall, if unvested, be forfeited.

	 	
(e)

	
Excess Aggregate Contributions are determined in the following manner. First, the amount of the Actual Contribution Ratio of the Highly Compensated Employee with the highest Actual Contribution Ratio shall be hypothetically reduced to satisfy the ACP Test or to cause such ratio to equal the Actual Contribution Ratio of the Highly Compensated Employee with the next highest ratio, whichever occurs first. This process is repeated until the ACP Test is satisfied. The total amount of Excess Aggregate Contributions is equal to the sum of such hypothetical reductions multiplied, in each case, by the Highly Compensated Employee’s Compensation.

	 	
(f)

	
The Matching Contributions of the Highly Compensated Employee with the largest Matching Contributions shall be reduced by the amount of Excess

  

31

  

 

                                                                   

Aggregate Contributions or, if less, by the amount needed to equal the Matching Contributions of the Highly Compensated Employee with the next largest Matching Contributions. This process shall be repeated with the remaining amount of Excess Aggregate Contributions until the total amount of Excess Aggregate Contributions is accounted for. If these reductions are made, the ACP Test is treated as being satisfied regardless of whether the Actual Contribution Ratios, if recalculated after the reductions, satisfy the ACP Test.

	 	
(g)

	
The reductions required by Sections 4.01 and 4.02 shall be applied prior to the reductions and tests of this Section 4.03. The amount of vested Excess Aggregate Contributions to be returned from the Plan to a Highly Compensated Employee shall be reduced by the amount of vested Excess Aggregate Contributions previously returned to such Highly Compensated Employee for the same Plan Year. Unvested Excess Aggregate Contributions shall not be returned from the Plan to a Highly Compensated Employee, but instead shall be forfeited.

	 	
(h)

	
If the Company elects to use Qualified Matching Contributions or Qualified Nonelective Contributions for purposes of the ACP Test, the Actual Contribution Ratio for Non-highly Compensated Employees for the current year will be determined by taking into account only:

	
  

	
(i)

	
Elective Deferral Contributions taken into account for purposes of the ACP Test under the current year testing method for the current year;

	
  

	
(ii)

	
Matching Contributions for those Non-highly Compensated Employees that are taken into account for purposes of the ACP Test under the current year testing method for the current year; and

	
  

	
(iii)

	
Qualified Matching Contributions or Qualified Nonelective Contributions that are allocated to the accounts of those Non-highly Compensated Employees as of a date during the current year, used to satisfy the ACP Test (but not the ADP Test) under the current year testing method for the current year and meet the requirements of subsection (i) below.

Thus, if the Company elects to use Qualified Matching Contributions or Qualified Nonelective Contributions, the following contributions made during the current year will be disregarded:

	
  

	
(iv)

	
Elective Deferral Contributions taken into account for purposes of the ADP Test under the current year testing method for the current year;

	
  

	
(v)

	
Qualified Matching Contributions used to satisfy either the ADP Test or ACP Test under the current year testing method for the prior testing year or that fail to meet the requirements of subsection (i) below; and

	
  

	
(vi)

	
Qualified Nonelective Contributions used to satisfy either the ADP Test or ACP Test under the current year testing method for the prior testing year or that fail to meet the requirements of subsection (i) below.

  

32

  

 

                                                                   

	
  

	
(i)

	
Qualified Matching Contributions and Qualified Nonelective Contributions may be used to satisfy the ACP Test, but the same amounts cannot be used to satisfy both the ADP Test and the ACP Test. Qualified Matching Contributions on behalf of a Non-highly Compensated Employee will not be taken into account for purposes of the ACP Test to the extent such Qualified Matching Contributions exceed the greatest of:

	
  

	
(i)

	
5% of that Non-highly Compensated Employee’s Compensation;

	
  

	
(ii)

	
that Non-highly Compensated Employee’s Elective Deferral Contributions for such Plan Year; and

	
  

	
(iii)

	
the product of two (2) times the Plan’s representative matching rate (as determined under applicable Regulations) and that Non-highly Compensated Employee’s Elective Deferral Contributions for such Plan Year.

Qualified Nonelective Contributions used to satisfy the ACP Test must satisfy the requirements of Code Section 401(a)(4). Qualified Nonelective Contributions on behalf of a Non-highly Compensated Employee will not be taken into account for purposes of the ACP Test to the extent such Qualified Nonelective Contributions exceed the product of that Non-highly Compensated Employee’s Compensation and the greater of: (x) 5% or (y) two (2) times the Plan’s representative contribution rate (as determined under applicable Regulations). Notwithstanding the preceding sentences, Qualified Nonelective Contributions made in connection with the Davis-Bacon Act, Service Contract Act or similar legislation can be taken into account for purposes of the ACP Test to the extent permitted under Regulation §1.401(m)-2(a)(6)(v)(D).

	
  

	
(j)

	
The Excess Aggregate Contributions shall be adjusted for Allocable Income/Loss.

	
  

	
(k)

	
Excess Aggregate Contributions allocated to a Participant shall be distributed from the Participant’s Account resulting from Matching Contributions. If such Excess Aggregate Contributions exceed the balance in the Participant’s Account resulting from Matching Contributions, the balance shall be distributed from the Participant’s Account resulting from Qualified Matching Contributions not treated as Elective Deferral Contributions (if applicable) and Qualified Nonelective Contributions treated as Matching Contributions (if applicable), respectively.

	
  

	
(l)

	
Excess Aggregate Contributions shall be treated as Annual Additions, as defined in Section 4.04.

	
4.04

	
Maximum Contributions

	
  

	
(a)

	
Annual Addition Limit.

	
  

	
(i)

	
Notwithstanding anything contained herein to the contrary, in no event may the Annual Additions (except for Catch-Up Contributions under

  

33

  

 

                                                                   

Section 3.03) made with respect to a Participant for a Limitation Year under the Plan and any other defined contribution plan (within the meaning of Code Section 415(c)) maintained by the Employer or an Affiliate exceed the lesser of $49,000 (as adjusted pursuant to Code Section 415(d) for Plan Years beginning after December 31, 2010) or 100% of his or her annual Limitation Compensation from the Employer or Affiliate for the Limitation Year. The compensation limitation referred to in the preceding sentence shall not apply to any contribution for medical benefits (within the meaning of Code Sections 401(h) or 419A(f)(2)) which is otherwise treated as an Annual Addition under Code Sections 415(l)(1) or 415(a)(2). In the event a short Limitation Year is created because of an amendment changing the Limitation Year to a different 12-consecutive month period, the maximum amount indicated above shall be reduced pro rata in accordance with the number of months in the short Limitation Year;

	
  

	
(ii)

	
If due to a reasonable error in calculating a Participant’s Limitation Compensation for a Plan Year, or due to the allocation of forfeitures, or due to such other facts and circumstances as may justify the availability of this special rule, as determined by the Internal Revenue Service, the Annual Additions to the Participant’s account under this Plan and any other defined contribution plan of the Employer or an Affiliate exceeds the limitations of Section 4.04(a)(i) for a Limitation Year, then the excess amounts may be corrected only in accordance with the Employee Plans Compliance Resolution System as set forth in Revenue Procedure 2008-50 or any superseding guidance including, but not limited to, the preamble to the final Code Section 415 regulations as published in the Federal Register on April 5, 2007;

	
  

	
(iii)

	
The provisions of Code Section 415 are hereby incorporated by reference to the extent not provided above.

	 	
(b)

	
For purposes of this Section 4.04, “Annual Additions” mean, with respect to any Participant for a Limitation Year:

	
  

	
(i)

	
the sum of the following amounts credited to a Participant’s account in all qualified defined contribution plans (including an annuity contract under Code Section 403(b)) maintained by the Employer or an Affiliate (or a predecessor employer as defined in Regulation §1.415(f)-1(c)):

	
  

	
(A)

	
Employer contributions, even if such employer contributions are excess contributions (as described in Code Section 401(k)(8)(B)) or excess aggregate contributions (as described in Code Section 401(m)(6)(B)), or such excess contributions or excess aggregate contributions are corrected through distribution;

  

34

  

 

                                                                   

	
  

	
(B)

	
Employee contributions, which include mandatory employee contributions (as defined in Code Section 411(c)(2)(C)) and voluntary employee contributions;

	
  

	
(C)

	
Forfeitures;

	
  

	
(D)

	
Contributions allocated to any individual medical account, as defined in Code Section 415(l)(2), which is part of a pension or annuity plan established pursuant to Code Section 401(h) and maintained by the Employer or an Affiliate;

	
  

	
(E)

	
Amounts attributable to post-retirement medical benefits allocated to a separate account for a key employee (any employee who, at any time during the Plan Year or any preceding Plan Year, is or was a key employee pursuant to Code Section 419A(d)), maintained by the Employer or an Affiliate; and

	
  

	
(F)

	
The difference between the value of any assets transferred to the Plan and the consideration, where an Employee or the Employer (or an Affiliate) transfers assets to the Plan in exchange for consideration that is less than the fair market value of the assets transferred to the Plan.

	 	
(ii)

	
Notwithstanding the foregoing, a Participant’s Annual Additions do not include the following:

	
  

	
(A)

	
The restoration of an Employee’s accrued benefit by the Employer or an Affiliate in accordance with Code Sections 411(a)(3)(D) or 411(a)(7)(C) or resulting from the repayment of cashouts (as described in Code Section 415(k)(3)) under a governmental plan (as defined in Code Section 414(d)) for the Limitation Year in which the restoration occurs, regardless of whether the plan restricts the timing of repayments to the maximum extent allowed by Code Section 411(a);

	
  

	
(B)

	
Catch-up contributions made in accordance with Code Section 414(v) and Regulation §1.414(v)-1;

	
  

	
(C)

	
A payment made to restore some or all of the plan’s losses resulting from an action (or a failure to act) by a fiduciary for which there is reasonable risk of liability for breach of a fiduciary duty (other than a breach of fiduciary duty arising from failure to remit contributions to the plan) under ERISA or under other applicable federal or state law, where Participants who are similarly situated are treated similarly with respect to the payments. This includes payments to the plan made pursuant to a Department of Labor order, the Department of Labor’s Voluntary Fiduciary Correction Program, or a court-approved settlement, to

  

35

  

 

                                                                   

restore losses to a qualified defined contribution plan. Payments made to the plan to make up for losses due merely to market fluctuations and other payments that are made on account of a reasonable risk of liability for breach of a fiduciary duty under Title I of the ERISA generally constitute contributions that give rise to annual additions;

	
  

	
(D)

	
Excess elective deferrals that are distributed in accordance with Regulation §§1.402(g)-1(e)(2) or (3);

	
  

	
(E)

	
Rollover contributions (as described in Code Sections 401(a)(31), 402(c)(1), 403(a)(4), 403(b)(8), 408(d)(3), and 457(e)(16));

	
  

	
(F)

	
Repayments of loans made to a Participant from the plan;

	
  

	
(G)

	
Repayments of prior plan distributions described in Code Sections 411(a)(7)(B) (in accordance with Code Sections 411(a)(7)(C)) and 411(a)(3)(D) or repayment of contributions to a governmental plan (as defined in Code Section 414(d)) as described in Code Section 415(k)(3);

	
  

	
(H)

	
The direct transfer of a benefit or employee contributions from a qualified plan to a defined contribution plan;

	
  

	
(I)

	
The reinvestment of dividends on employer securities under an employee stock ownership plan pursuant to Code Section 404(k)(2)(A)(iii)(II); and

	
  

	
(J)

	
Employee contributions to a qualified cost of living arrangement within the meaning of Code Section 415(k)(2)(B).

	 	
(c)

	
For purposes of this Section 4.04, “Limitation Compensation” means compensation within the meaning of Section 415(c)(3) of the Code, which shall include amounts contributed or deferred by the Participant at the election of the Participant which are not includible in the gross income of the Participant by reason of Code Sections 125(a), 132(f)(4), 402(e)(3), 402(h)(1)(B), 402(k) or 457(b), and post-severance compensation. Limitation Compensation taken into account in any Plan Year shall not exceed $245,000 as adjusted for cost-of-living increases in accordance with Section 401(a)(17)(B) of the Code;

	 	
(d)

	
For purposes of this Section 4.04, “Limitation Year” means the Plan Year unless changed by a Plan amendment. Notwithstanding the preceding, if the Plan is terminated effective as of a date other than the last day of the Plan’s Limitation Year, the Plan is treated as if it had been amended to change its Limitation Year;

	 	
(e)

	
For purposes of this Section 4.04, “post-severance compensation” means, the following amount(s) that would have been included in the definition of Limitation Compensation if the amounts were paid prior to the Employee’s severance from

  

36

  

 

                                                                   

employment (as defined in Regulation §1.415(a) -1(f)(5)) with the Employer or an Affiliate, and that are paid to the Employee by the later of 21⁄2 months after the Employee’s severance from employment with the Employer or an Affiliate or the end of the Limitation Year that includes the Employee’s Severance from Employment Date if the payment is:

	
  

	
(i)

	
regular compensation for services during the Employee’s regular working hours, or compensation for services outside the Employee’s regular working hours (such as overtime or shift differential), commissions, bonuses, or other similar payments and the payment would have been paid to the Employee prior to a severance from employment if the Employee had continued in employment with the Employer or an Affiliate;

	
  

	
(ii)

	
for unused accrued bona fide sick, vacation, or other leave, but only if the Employee would have been able to use the leave if employment had continued;

	
  

	
(iii)

	
received by the Employee pursuant to a nonqualified unfunded deferred compensation plan, but only if the payment would have been paid to the Employee at the same time if the Employee had continued in employment with the Employer or an Affiliate and only to the extent that the payment is includible in the Employee’s gross income; or

	
  

	
(iv)

	
made by the Employer or an Affiliate to an individual who does not currently perform services for the Employer or an Affiliate by reason of Qualified Military Service to the extent those payments do not exceed the amounts the individual would have received if the individual had continued to perform services for the Employer or an Affiliate rather than entering Qualified Military Service.

	
4.05

	
Plan Aggregation and Disaggregation under Code Section 415

	
  

	
(a)

	
For purposes of applying the limitations of Section 4.04, all defined contribution plans (without regard to whether a plan has been terminated) ever maintained by the “employer” (or a “predecessor employer”) under which the Participant receives annual additions are treated as one plan. The “employer” means an Employer that adopts this Plan and its Affiliates, except that for purposes of Section 4.04 and this Section, the determination will be made by applying Code Section 415(h) and will take into account tax-exempt organizations under Regulation §1.414(c)-5, as modified by Regulation §1.415(a)-1(f)(1). For purposes of this subsection (a):

	
  

	
(i)

	
A former employer is a “predecessor employer” with respect to a participant in a plan maintained by an employer if the employer maintains a plan under which the participant had accrued a benefit while performing services for the former employer, but only if that benefit is provided under the plan maintained by the employer. For this purpose, the formerly

  

37

  

 

                                                                   

affiliated plan rules in Regulation §1.415(f)-1(b)(2) apply as if the employer and the predecessor employer constituted a single employer under the rules described in Regulation §§1.415(a)-1(f)(1) and (2) immediately prior to the cessation of affiliation (and as if they constituted unrelated employers under the rules described in Regulation §§1.415(a)-1(f)(1) and (2) immediately after the cessation of affiliation), and cessation of affiliation was the event that gives rise to the predecessor employer relationship, such as a transfer of benefits or of plan sponsorship.

	
  

	
(ii)

	
With respect to an employer of a Participant, a former entity that antedates the employer is a “predecessor employer” with respect to the Participant if, under the facts and circumstances, the employer is a continuation of all or a portion of the trade or business of the former entity for which the Participant performed services.

	 	
(b)

	
For purposes of aggregating plans under Code Section 415, a “formerly affiliated plan” of an employer is taken into account for purposes of applying the Code Section 415 limitations to the employer, but the formerly affiliated plan is treated as if it had terminated immediately prior to the “cessation of affiliation.” For purposes of this subsection, a “formerly affiliated plan” of an employer is a plan that, immediately prior to the cessation of affiliation, was actually maintained by one or more of the entities that constitute the employer (as determined under the employer affiliation rules described in Regulation §§1.415(a)-1(f)(1) and (2)), and immediately after the cessation of affiliation, is not actually maintained by any of the entities that constitute the employer (as determined under the employer affiliation rules described in Regulation §§1.415(a)-1(f)(1) and (2)). For purposes of this subsection, a “cessation of affiliation” means the event that causes an entity to no longer be aggregated with one or more other entities as a single employer under the employer affiliation rules described in Regulation §§1.415(a)-1(f)(1) and (2) (such as the sale of a subsidiary outside a controlled group), or that causes a plan to not actually be maintained by any of the entities that constitute the employer under the employer affiliation rules of Regulation §§1.415(a)-1(f)(1) and (2) (such as a transfer of plan sponsorship outside of a controlled group).

	 	
(c)

	
Two or more defined contribution plans that are not required to be aggregated pursuant to Code Section 415(f) and regulations thereunder as of the first day of a Limitation Year do not fail to satisfy the requirements of Code Section 415 with respect to a Participant for the Limitation Year merely because they are aggregated later in that Limitation Year, provided that no annual additions are credited to the Participant’s account after the date on which the plans are required to be aggregated.

  

38

  

 

                                                                   

ARTICLE 5

INVESTMENT OF CONTRIBUTIONS

	
5.01

	
Investment and Timing of Contributions

The handling of Contributions is governed by the provisions of the Trust Agreement, any Annuity Contract, and any other funding arrangement in which the Trust Fund is, or may be held, or invested.

	
  

	
(a)

	
As directed by the Named Fiduciary, except as required by ERISA, the Trustee shall manage the investment of the Trust Fund except to the extent an Investment Manager has been appointed to manage Trust assets. Except as required by ERISA, if an Investment Manager is appointed, the Trustee shall invest the Trust Fund in accordance with the directions of the Investment Manager, and the Trustee shall have no discretionary control over, nor any other discretion regarding, the investment or reinvestment of such Trust Fund assets.

	
  

	
(b)

	
At the direction of the Named Fiduciary, the Trustee may establish such different Investment Funds as the Named Fiduciary shall determine. Each such Investment Fund shall consist of:

	
  

	
(i)

	
an interest or interests in registered regulated investment companies that are independent of, or proprietary to, the Trustee or its affiliates; or

	
  

	
(ii)

	
an interest or interests in a group, common or collective trust maintained for the collective investment of employee benefit plans qualified under Code Section 401(a) that is independent of, or proprietary to, the Trustee or its affiliates. If a common or collective investment fund or trust maintained by the Trustee or otherwise that may be invested in by a plan and trust qualified under Code Sections 401(a) and 501(a) is so used, the governing provisions of such fund or trust shall be incorporated by reference to the extent required by applicable law.

	
  

	
(iii)

	
Participants are permitted to direct the investment of their accounts and future contributions to their accounts among the Investment Funds, subject to such rules and procedures as the Plan Administrator may establish and in such manner as is intended to comply with ERISA Section 404(c). The Plan Administrator may modify such procedures from time to time. It is intended that the Plan meet the requirements of ERISA Section 404(c) and that it be construed, maintained and administered as an “ERISA Section 404(c) plan” within the meaning of Regulation §2550.404c– 1(b)(1). Exchanges between Investment Funds also shall be subject to any restrictions imposed by the Investment Funds or by the Plan’s recordkeeper. Investment directions shall be given by Participants in a manner prescribed by the Plan Administrator. Except with respect to a change of, or restriction imposed on, the available Investment Funds, a Participant’s investment directions shall remain in effect until changed by

  

39

  

 

                                                                   

him or her. Subject to such rules and procedures as the Plan Administrator may establish, Matching Contributions shall be invested in the same manner as Elective Deferral Contributions.

	
  

	
(iv)

	
In the absence of any valid Investment Fund specification to the contrary, a Participant’s account automatically shall be invested in the applicable qualified default investment alternative (as defined under ERISA) specified by the Named Fiduciary or an Investment Manager appointed under subsection (d). It is intended that such default Investment Fund(s) comply with ERISA Section 404(c)(5). Further, such Participant may at any time change his or her Investment Fund specification in accordance with paragraph (iii).

	
  

	
(v)

	
A loan under Section 6.08 shall be considered a self-directed investment by the borrower of the portion of his or her account that is invested in the note reflecting the loan that he executed in accordance with the provisions of Section 6.08. Notwithstanding any other provision of the Plan to the contrary, no account other than the borrower’s account shall share in the interest paid on the loan or bear any expense or loss incurred because of the loan.

	
  

	
(vi)

	
The Trustee may, from time to time, have on hand funds which are received as contributions or transfers to the Trust Fund which are awaiting investment or funds received as a result of the disposition of assets pursuant to a tender offer, merger, or other corporation action which are awaiting reinvestment, in which case the Trustee shall have the power to hold the relevant portion of the Trust Fund unallocated and uninvested pending receipt of clear and proper investment directions or pending receipt of a contribution amount which is necessary to carry out an investment direction.

	 	
(c)

	
All or some portion of the Participant’s Account may be invested in Qualifying Employer Securities. The Qualifying Employer Securities Fund shall continue to be available to Participants unless the Plan is amended to disallow such available investment. In the absence of an election to invest in Qualifying Employer Securities, Participants shall be deemed to have elected to have their Accounts invested wholly in other investment options of the Investment Fund. Once such a deemed election is made, it shall be considered to continue until an affirmative election is made.

	 	
(d)

	
Appointment of Investment Managers.

	
  

	
(i)

	
The Named Fiduciary may appoint one or more Investment Managers, which may include the Trustee, provided that any Investment Manager so appointed shall qualify as such under the terms of ERISA Section 3(38), and the Named Fiduciary shall have the power to remove an Investment Manager at any time.

  

40

  

 

                                                                   

	
  

	
(ii)

	
An Investment Manager shall have authority to manage, acquire, or dispose of the whole or a portion or portions of the Trust Fund as specified by the Named Fiduciary. If an Investment Manager shall have been appointed by the Named Fiduciary, neither the Named Fiduciary, the Trustee nor any other Investment Manager shall invest or otherwise manage any portion of the Trust Fund which is subject to the management of such Investment Manager.

	
5.02

	
Valuation of Investment Funds/Qualifying Employer Securities

	
  

	
(a)

	
Each Investment Fund shall be valued at its fair market value following the close of business on each Valuation Date. Each Account shall be adjusted to reflect the effect of income, collected and accrued, realized and unrealized profits and losses, expenses, and all other transactions (including distributions and contributions) since the immediately preceding Valuation Date.

	
  

	
(b)

	
The value of an Account held in the Qualifying Employer Securities Fund may be expressed in units. If the Qualifying Employer Securities are not publicly traded, or if an extremely thin market exists for such securities so that reasonable valuation may not be obtained from the market place, then such securities must be valued at least annually by an independent appraiser who is not associated with an Employer, the Plan Administrator, the Trustee, or any person related to any fiduciary under the Plan. The independent appraiser may be associated with a person who is merely a contract administrator with respect to the Plan, but who exercises no discretionary authority and is not a Plan fiduciary.

	
  

	
(i)

	
If there is a public market for Qualifying Employer Securities of the type held by the Plan, then the Named Fiduciary may use as the value of the securities the price at which such securities trade in such market. If the Qualifying Employer Securities do not trade on the relevant date, or if the market is very thin on such date, then the Named Fiduciary may use for the valuation the next preceding trading day on which the trading prices are representative of the fair market value of such securities in the opinion of the Named Fiduciary.

	
  

	
(ii)

	
Cash dividends, if any, payable on the Qualifying Employer Securities shall be reinvested in additional shares of such securities. In the event of any cash or stock dividend or any stock split, such dividend or split shall be credited to the Accounts based on the number of shares of Qualifying Employer Securities credited to the units held by each Account as of the payable date of such dividend or split.

	
  

	
(iii)

	
All purchases of Qualifying Employer Securities shall be made at a price, or prices, which, in the judgment of the Plan Administrator, do not exceed the fair market value of such securities.

  

41

  

 

                                                                   

	
  

	
(iv)

	
In the event that the Trustee acquires Qualifying Employer Securities by purchase from a “disqualified person” as defined in Code Section 4975(e)(2) or from a “party in interest” as defined in ERISA Section 3(14), the terms of such purchase shall contain the provision that in the event there is a final determination by the Internal Revenue Service, the Department of Labor, or court of competent jurisdiction that the fair market value of such securities as of the date of purchase was less than the purchase price paid by the Trustee, then the seller shall pay or transfer, as the case may be, to the Trustee an amount of cash or shares of Qualifying Employer Securities equal in value to the difference between the purchase price and such fair market value for all such shares. In the event that cash or shares of Qualifying Employer Securities are paid or transferred to the Trustee under this provision, such securities shall be valued at their fair market value as of the date of such purchase, and interest at a reasonable rate from the date of purchase to the date of payment or transfer shall be paid by the seller on the amount of cash paid.

	
  

	
(v)

	
The Plan Administrator may direct the Trustee to sell, resell, or otherwise dispose of Qualifying Employer Securities to any person, including an Employer, provided that any such sales to any disqualified person or party in interest, including an Employer, will be made at not less than the fair market value and no commission will be charged. Any such sale shall be made in conformance with ERISA Section 408(e).

	
  

	
(vi)

	
The Company is responsible for compliance with any applicable Federal or state securities law with respect to all aspects of the Plan, including, but not limited to Section 16 of the Securities Act. If the Qualifying Employer Securities or interest in this Plan are required to be registered in order to permit investment in the Qualifying Employer Securities Fund as provided in this section, then such investment will not be effective until the later of the effective date of the Plan or the date such registration or qualification is effective. The Company, at its own expense, will take or cause to be taken any and all such actions as may be necessary or appropriate to affect such registration or qualification. Further, if the Trustee is directed to dispose of any Qualifying Employer Securities held under the Plan under circumstances which require registration or qualification of the securities under applicable Federal or state securities laws, then the Company will, at its own expense, take or cause to be taken any and all such action as may be necessary or appropriate to effect such registration or qualification.

	
5.03

	
Notice to Participants

At least once a year, and as may be appropriate under Section 5.01(b)(iii), the Plan Administrator shall notify each Participant (and the Beneficiary of each deceased Participant) and Alternate Payee of the balance in such Participant’s or Alternate Payee’s Account as of the last Valuation Date.

  

42

  

 

                                                                   

ARTICLE 6

DISTRIBUTION OF BENEFITS

	
6.01

	
Forms of Distribution

With respect to the distribution of either retirement benefits or death benefits:

	
  

	
(a)

	
The automatic form of benefit payable to or on behalf of a Participant or Beneficiary shall be a single sum cash payment.

	
  

	
(b)

	
If a Participant’s Account contains an investment in the Qualifying Employer Securities Fund, he or she may request a distribution of the portion of the Account that is held in the Qualifying Employer Securities Fund as a single sum cash payment or a single sum distribution in kind, with fractional shares paid in cash.

	
6.02

	
Distribution Election Procedures

The Participant or spouse shall make any election under this section by a written, telephonic or electronic communication. The Plan Administrator may require such individual to complete and sign any necessary documents as to the provisions to be made.

	
6.03

	
Consent to Distribution

	
  

	
(a)

	
Vested Account Valued at More than $5,000. If the value of a Participant’s vested Account (excluding Rollover Contributions, if any), exceeds $5,000, no distribution may be made to the Participant unless he or she is notified no less than thirty (30) days, and no more than one hundred eighty 180 days, before the first day on which an amount is payable, that he or she must consent to the distribution and that he or she has a right to defer the distribution. Such consent also shall be required if the value of his or her vested Account (excluding Rollover Contributions, if any) at the time of any prior distribution exceeded $5,000. A distribution may commence less than thirty (30) days but not more than seven (7) days after the notice described above is given, provided that he or she: (i) is informed that he or she has a right to a period of at least thirty (30) days after receiving the notice to consider the decision of whether or not to elect a distribution; and (ii) after receiving the notice, affirmatively elects a distribution.

Unless and until a Participant files an election to receive a distribution of his or her vested Account, he or she is deemed to have elected to receive a deferred benefit payable following his or her Normal Retirement Date. The Participant may then elect at any time following his or her termination of employment to receive a distribution of his or her vested Account as soon as administratively feasible following the Plan Administrator’s receipt of such election.

	
  

	
(b)

	
Vested Account Valued at $5,000 or Less. The consent of the Participant is not required for a distribution of the Participant’s vested Account if the value of the Participant’s vested Account (excluding Rollover Contributions, if any) is not greater than $5,000. The Participant shall receive a distribution of his or her

  

43

  

 

                                                                   

vested Account determined as of the Valuation Date immediately preceding the date of distribution, as soon as practicable following the termination of his or her employment, payable as follows:

	
  

	
(i)

	
If the value of the Participant’s vested Account (including Rollover Contributions, if any) is greater than $1,000 and the Participant does not elect to have such distribution paid in a direct rollover to a specified eligible retirement plan in accordance with Section 6.04 or to receive a single sum, the vested Account shall be payable in a direct rollover to an individual retirement plan established by the Plan Administrator in accordance with procedures established by the Plan Administrator.

	
  

	
(ii)

	
If the value of the Participant’s vested Account (including Rollover Contributions, if any) is $1,000 or less and the Participant does not elect to have such distribution paid in a direct rollover, it shall be payable as a single sum cash distribution to the Participant.

	
  

	
(c)

	
Distribution upon Plan Termination. Upon termination of this Plan, if the Plan does not offer an annuity option (purchased from a commercial provider), and if an Employer (or any Affiliate) does not maintain another defined contribution plan (other than an employee stock ownership plan as defined in Code Section 4975(e)(7)), the Participant’s Account balance will, without the Participant’s consent, be distributed to the Participant. However, if any Affiliate maintains another defined contribution plan (other than an employee stock ownership plan as defined in Code Section 4975(e)(7)) then the Participant’s Account will be transferred, without the Participant’s consent, to the other plan if the Participant does not consent to an immediate distribution.

	
  

	
(d)

	
The consent of the Participant shall not be required to the extent that a distribution is required to satisfy Code Sections 401(a)(9), 401(k), 401(m), 402(g) or 415.

	
6.04

	
Direct Rollover

Notwithstanding any provision of the Plan to the contrary that would otherwise limit a distributee’s election under this Section, a distributee may elect, at the time and in the manner prescribed by the Plan Administrator, to have any portion of an eligible rollover distribution paid in a direct rollover directly to an eligible retirement plan specified by the distributee. For purposes of this Section, the following terms have the meanings below:

	
  

	
(a)

	
An “eligible rollover distribution” is any distribution of all or any portion of the balance to the credit of the distributee, except that an eligible rollover distribution does not include: (i) any distribution that is one of a series of substantially equal periodic payments (not less frequently than annually) made for the life (or life expectancy) of the distributee or the joint lives (or joint life expectancies) of the distributee and the distributee’s designated beneficiary, or for a specified period of ten years or more; (ii) any distribution to the extent such distribution is required under Code Section 401(a)(9); (iii) a hardship distribution; (iv) a corrective

  

44

  

 

                                                                   

distribution pursuant to Sections 4.01, 4.02, 4.03 or 4.04(a)(ii); (v) a deemed distribution resulting from a defaulted loan under Section 6.08 that is not also an offset distribution; (vi) any distribution that is reasonably expected to total less than $200 during a calendar year; (vii) the portion of any distribution that is not includible in gross income (determined without regard to the exclusion for net unrealized appreciation with respect to employer securities); and (viii) any other distributions described in Regulation §1.402(c)-2. A portion of a distribution shall not fail to be an eligible rollover distribution merely because the portion consists of after-tax employee contributions which are not includible in gross income. However, such portion may be transferred only to an individual retirement account or annuity described in Code Sections 408(a) or (b), or to a qualified defined contribution plan described in Code Sections 401(a) or 403(b) that agrees to account separately for amounts so transferred, including accounting separately for the portion of such distribution which is includible in gross income and the portion of such distribution which is not so includible. An “eligible rollover distribution” also includes a distribution to a non-spouse Beneficiary designated by a Participant in accordance with Section 1.08, provided the distribution otherwise qualifies as an eligible rollover distribution hereunder and the distribution is made to an eligible retirement plan.

	 	
(b)

	
An “eligible retirement plan” is an individual retirement account described in Code Section 408(a), an individual retirement annuity described in Code Section 408(b), an annuity plan described in Code Section 403(a), an annuity contract described in Code Section 403(b), a qualified trust described in Code Section 401(a) or an eligible plan under Code Section 457(b) maintained by a state, political subdivision of a state, or any agency or instrumentality of a state or political subdivision of a state and which agrees to account separately for amounts transferred into such plan from this Plan. The definition of eligible retirement plan also shall apply in the case of a distribution to a surviving spouse, or to a spouse or former spouse who is the alternate payee under a qualified domestic relations order as defined in Code Section 414(p).

	
  

	
(i)

	
Effective January 1, 2009, an “eligible retirement plan” for a distributee who is a designated beneficiary (as defined by Code Section 401(a)(9)(E)) of the Participant and who is not the surviving spouse of the Participant is an individual retirement account described in Code Section 408(a) or an individual retirement annuity described in Code Section 408(b) that will be treated as an inherited IRA pursuant to Code Section 402(c)(11).

	
  

	
(ii)

	
For eligible rollover distributions made after 2008 by a non-spouse designated beneficiary, an “eligible retirement plan” also includes a Roth IRA as described in Code Section 408A, provided that for eligible rollover distributions made in 2009, the same income and tax filing status restrictions that apply to a rollover from a traditional IRA into a Roth IRA also will apply to rollovers to a Roth IRA. A non-spouse designated beneficiary, other than a former spouse who is an alternate payee under a qualified domestic relations order, cannot elect to treat the Roth IRA as

  

45

  

 

                                                                   

the beneficiary’s own. For taxable years beginning before January 1, 2010, a non-spouse designated beneficiary cannot make a qualified rollover contribution to a Roth IRA if the beneficiary has modified adjusted gross income exceeding $100,000 or is married and files a separate return.

 

	
  

	
(c)

	
A “distributee” includes an Employee or former Employee. In addition, the Employee’s or former Employee’s surviving spouse and the Employee’s or former Employee’s spouse or former spouse who is the alternate payee under a qualified domestic relations order, as defined in Code Section 414(p), are distributees with regard to the interest of the spouse or former spouse. Effective January 1, 2009, a distributee also includes an individual who is a designated beneficiary (as defined by Code Section 401(a)(9)(E)) of the Participant and who is not the surviving spouse of the Participant. For purposes of this subsection, to the extent provided in applicable regulations, a trust maintained for the benefit of one or more designated beneficiaries will be treated in the same manner as a designated beneficiary.

	
  

	
(d)

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

	
  

	
(e)

	
The Plan Administrator will adopt procedures for elections made pursuant to this Section. Within a reasonable period of time before payment of an eligible rollover distribution, the Plan Administrator will provide a notice to the distributee describing his rights under this Section and such other information as may be required under Code Section 402(f).

	
  

	
(f)

	
The provisions of this Section are intended to comply with the provisions of Code Section 401(a)(31) and shall be interpreted in accordance with such Code Section and Regulations issued thereunder.

	
6.05

	
Timing of Distribution

	
  

	
(a)

	
Unless otherwise elected, benefits shall begin before the 60th day following the close of the Plan Year in which the latest date below occurs:

	
  

	
(i)

	
the date the Participant attains age 65;

	
  

	
(ii)

	
the 10th anniversary of the year the Participant commenced participation in the Plan; or

	
  

	
(iii)

	
the date the Participant ceases to be an Employee.

Notwithstanding the foregoing, the failure of a Participant to consent to a distribution while a benefit is immediately distributable shall be deemed to be an election to defer the start of benefits sufficient to satisfy this Section.

  

46

  

 

                                                                   

The Participant may elect to have his or her benefits begin after the latest date for beginning benefits described above, subject to the following provisions of this Section. The Participant shall make the election in writing. Such election must be made before his or her Normal Retirement Date or the date he or she ceases to be an Employee, if later. The election must describe the date benefits will be paid. The Participant shall not elect a date for beginning benefits that would result in a benefit payable when he or she dies which would be more than incidental within the meaning of the applicable Regulations.

	
  

	
(b)

	
The Participant’s vested Account which results from Elective Deferral Contributions may not be distributed to him or her or to his or her Beneficiary, in accordance with the Participant’s or Beneficiary’s election, earlier than separation from service, death or disability. Such amount also may be distributed upon:

	
  

	
(i)

	
Termination of the Plan, as permitted in Article 7.

	
  

	
(ii)

	
The attainment of age 591⁄2 as permitted in Section 6.06 below.

	
  

	
(iii)

	
The hardship of the Participant as permitted in Section 6.07 below.

This Section 6.05(b), other than subsection (iii), shall apply to all Matching Contributions made on or after January 1, 2006 and earnings thereon.

All distributions that may be made pursuant to one or more of the foregoing distributable events will be a retirement benefit and shall be distributed to the Participant according to the distribution of benefit provisions of this Article 6. In addition, distributions that are triggered by (i) above must be made in a lump sum. A lump sum shall include, if applicable, a distribution of an annuity contract.

	
6.06

	
In-Service Withdrawals

	
  

	
(a)

	
A Participant may withdraw any part of his or her vested Account attributable to Rollover Contributions at any time.

	
  

	
(b)

	
A Participant who has attained age 591⁄2 may withdraw any part of his or her vested Account attributable to Elective Deferral Contributions or Matching Contributions at any time.

	
6.07

	
Hardship Withdrawals

A Participant may withdraw any part of his or her vested Account attributable to the Elective Deferral Contributions (but not earnings thereon) in the event of hardship due to an immediate and heavy financial need. A hardship withdrawal may be made only on account of an immediate and heavy financial need and only when the distribution is necessary to satisfy the need.

  

47

  

 

                                                                

	 	
(a)

	
Immediate and heavy financial need shall be limited to:

	
  

	
(i)

	
expenses of the Participant, the Participant’s spouse, and dependents of the Participant (as defined in Code Section 152 without regard to Code Sections 152(b)(1), (b)(2) and (d)(1)(B)) for (or necessary to obtain) medical care that would be deductible under Code Section 213(d) (determined without regard to whether the expenses exceed 7.5% of adjusted gross income);

	
  

	
(ii)

	
costs directly related to the purchase or construction of a principal residence for the Participant (excluding mortgage payments);

	
  

	
(iii)

	
payment of tuition, related educational fees and room and board expenses for the next 12 months of post-secondary education for the Participant, his or her spouse, children, or dependents (as defined in Code Section 152 without regard to Code Sections 152(b)(1), (b)(2) and (d)(1)(B));

	
  

	
(iv)

	
payments necessary to prevent the eviction of the Participant from his or her principal residence or foreclosure on the mortgage of his or her principal residence; or

	
  

	
(v)

	
payments for funeral or burial expenses for the Participant’s deceased parent, spouse, child or dependents (as defined in Code Section 152 without regard to Code Sections 152(b)(1), (b)(2) and (d)(1)(B));

	
  

	
(vi)

	
expenses to repair damage to the Participant’s principal residence that would qualify for a casualty loss deduction under Code Section 165 (determined without regard to whether the loss exceeds 10 percent of adjusted gross income); and

	
  

	
(vii)

	
such other need which the Commissioner of Internal Revenue Service through the publication of revenue rulings, notices or other documents of general applicability, deems to be immediate and heavy.

	 	
(b)

	
A withdrawal will be considered necessary to satisfy an immediate and heavy financial need only if all of the following requirements are met:

	
  

	
(i)

	
the withdrawal is not in excess of the amount of the immediate and heavy financial need (including amounts necessary to pay any Federal, state, or local income taxes or penalties reasonably anticipated to result from the distribution);

	
  

	
(ii)

	
the Participant has obtained all withdrawals, other than hardship distributions, and all nontaxable loans currently available under this Plan and all other plans maintained by an Employer and its Affiliates; and

	
  

	
(iii)

	
the Plan, and all other plans maintained by an Employer and its Affiliates, provide that the Participant’s elective contributions and participant

  

48

  

 

contributions will be suspended for six (6) months after receipt of the hardship withdrawal.

	
  

	
(c)

	
For purposes of (ii) and (iii) above, the phrase “all other plans maintained by the Employer and its Affiliates” means all qualified and nonqualified deferred compensation plans maintained by the Employer and its Affiliates, including stock option, stock purchase and similar plans, and cash or deferred arrangements under a “cafeteria plan” (within the meaning of Code Section 125), but does not include dependent care assistance plans, health plans or other welfare benefit plans (whether or not maintained under a cafeteria plan).

	
  

	
(d)

	
A request for a hardship withdrawal shall be made in such manner and in accordance with such rules as the Plan Administrator will prescribe for this purpose (including by means of voice response or other electronic means). Hardship withdrawals shall be a retirement benefit and shall be distributed to the Participant according to the distribution of benefits provisions of this Article.

	
  

	
(e)

	
Effective April 1, 2011, a Participant may make a hardship withdrawal under Sections 6.07(a)(i), (iii) and (v) as it relates to his or her “primary Beneficiary” in the same manner as a hardship withdrawal for a spouse or other dependent if such hardship withdrawal satisfies all the other requirements of this Section. For this purpose, a “primary Beneficiary” is an individual named as a Beneficiary who has an unconditional right to all or a portion of the Participant’s Account upon his or her death.

	
6.08

	
Loans to Participants

	
  

	
(a)

	
A Participant who is a “party in interest” as defined in ERISA Section 3(14) may, by making an Appropriate Request, request a loan from the Trust Fund. The following additional rules shall apply:

	
  

	
(i)

	
Loans shall be made available to all eligible Participants on a reasonably equivalent basis; provided that the Plan Administrator shall retain the power to approve or decline a loan and may make reasonable distinctions based upon creditworthiness, other obligations of the Participant, state laws affecting payroll deductions and any other factors that may adversely affect the Employer’s ability to deduct loan repayments from a Participant’s pay.

	
  

	
(ii)

	
A Participant may have only two (2) loans outstanding at any time. For purposes of this paragraph (ii), a loan that is in default under paragraph (iv) is treated as outstanding.

	
  

	
(iii)

	
The minimum new loan amount shall be $500. If a Participant’s vested Account balance is insufficient to support the minimum loan amount loan because of the restrictions below, no loan shall be made. The maximum amount of any loan, when added to the outstanding balance of any existing loan from this Plan, shall be the lesser of (A) or (B):

  

49

  

 

                                                                   

	
  

	
(A)

	
$50,000, reduced by the excess of the highest outstanding balance of loans from the Plan during the one-year period ending on the day before the date the loan is made over the outstanding balance of loans from the Plan on the date the loan is made; or

	
  

	
(B)

	
One-half (1⁄2) of the value of the vested portion of the Participant’s Account on the date the loan is made.

	
  

	
(iv)

	
For purposes of the limit in paragraph (iii), all plans of the Employer and its Affiliates shall be considered one plan. For purposes of this Section 6.08, a loan that is in default under this Plan or another plan is treated as an existing loan, and interest accrued on such loan since it was deemed in default is considered part of the outstanding balance of such loan.

	
  

	
(v)

	
The Participant must agree to pledge one-half (1⁄2) of the value (or, if lesser, the borrowed amount) of the vested portion of his or her Account in the Plan as security for the loan. All loans shall be repayable in substantially level payments of principal and interest, not less frequently than quarterly, over a period of not more than five (5) years, except that a loan used by the Participant to acquire or construct any dwelling unit which within a reasonable time is to be used (determined at the time the loan is made) as a principal residence of the Participant shall be repayable over a period consistent with other commercial practices. Notwithstanding the preceding provisions, loan repayments during a period of Qualified Military Service will be suspended under this Plan as permitted under Code Section 414(u)(4).

	
  

	
(vi)

	
If loans were offered under the 401(k) plans of predecessor employers (as defined in Section 4.05), the Plan will accept rollovers of such loan notes from former employees who participated under such plans.

	 	
(b)

	
Any loans shall be made pursuant to a written Participant loan program contained in a separate written document, which is hereby incorporated by reference and made a part of the Plan. Such Participant loan program may be modified or amended in writing from time to time by the Plan Administrator without the necessity of amending this Section. Such loan program will include, but need not be limited to, the following:

	
  

	
(i)

	
the identity of the person or positions authorized to administer the Participant loan program;

	
  

	
(ii)

	
the procedure for applying for loans;

	
  

	
(iii)

	
the basis on which loans will be approved or denied;

	
  

	
(iv)

	
limitations, if any, on the types and amounts of loans offered;

	
  

	
(v)

	
the procedure for determining a reasonable rate of interest;

  

50

  

 

                                                                   

	
  

	
(vi)

	
the procedure for repayment of the loan, e.g., under what circumstances repayment by payroll deduction is not required and whether prepayment (full or partial) is permitted); and

	
  

	
(vii)

	
the events constituting default and the steps that will be taken to preserve Plan assets.

	
  

	
(c)

	
A loan is considered a separate investment option of the Participant’s Account. The amount of the loan shall be withdrawn from the investments in his Account in accordance with such procedures as the Plan Administrator shall determine. Payments of principal and interest against a loan shall be credited to the investments in his Account in accordance with such procedures as the Plan Administrator shall determine.

	
  

	
(d)

	
Notwithstanding anything in this Plan to the contrary, if a Participant defaults on a loan made pursuant to this Section, the loan default will be a distributable event to the extent permitted by the Code and Regulations.

	
  

	
(e)

	
The Plan Administrator shall apply the provisions of this Section in a uniform and nondiscriminatory manner that is not inconsistent with Regulation §2550.408b-1.

	
  

	
(f)

	
Notwithstanding anything in this Section to the contrary, loans made prior to the Effective Date shall be subject to the terms of the Plan (or the Prior Plan) and the loan program in effect at the time such loan was made.

	
6.09

	
Distributions under Qualified Domestic Relations Orders

The Plan specifically permits distributions to an Alternate Payee under a “qualified domestic relations order” at any time, regardless of whether the Participant has attained his or her earliest retirement age, as defined in Code Section 414(p), under the Plan and in any form of payment permitted under the Plan. A distribution to an Alternate Payee before the Participant has attained his or her earliest retirement age is available only if the order specifies that distribution shall be made prior to the earliest retirement age or allows the Alternate Payee to elect a distribution prior to the earliest retirement age.

A “qualified domestic relations order” means any judgment, decree or order that relates to the provision of child support, alimony payments or marital property rights to a spouse, former spouse, child or other dependent of a Participant, and is made pursuant to a state domestic relations order which creates or recognizes the existence of an Alternate Payee’s right to, or assigns to an Alternate Payee the right to, receive all or a portion of the balance in a Participant’s Account and meets the requirements of Code Section 414(p). A domestic relations order that otherwise satisfies the requirements of a qualified domestic relations order will not fail to be a qualified domestic relations order (and will be subject to the same requirements and protections that apply to qualified domestic relations orders) solely because: (a) the order is issued after, or revises, another domestic relations order or qualified domestic relations order; or (b) of the time at which the order is issued, including issuance after the annuity starting date or after the Participant’s death.

  

51

  

 

                                                                   

If any portion of the Participant’s vested Account is payable during the period the Plan Administrator (or its delegate) is making its determination of the qualified status of the domestic relations order, a separate accounting shall be made of the amount payable. If the Plan Administrator (or its delegate) determines the order is a qualified domestic relations order within 18 months of the date amounts are first payable following receipt of the order, the payable amounts shall be distributed in accordance with the order. If the Plan Administrator (or its delegate) does not make its determination of the qualified status of the order within the 18 month determination period, the payable amounts shall be distributed in the manner the Plan would distribute if the order did not exist and the order shall apply prospectively if the Plan Administrator (or its delegate) later determines the order is a qualified domestic relations order.

The Plan shall make payments or distributions required under this section by separate benefit checks or other separate distribution to the Alternate Payee(s).

	
6.10

	
Minimum Distribution Requirements

	
  

	
(a)

	
General Rules.

	
  

	
(i)

	
The requirements of this Section will apply to any distribution of a Participant’s interest and will take precedence over any inconsistent provisions of the Plan;

	
  

	
(ii)

	
All distributions required under this Section will be determined and made in accordance with the regulations under Code Section 401(a)(9) and the minimum distribution incidental benefit requirements of Code Section 401(a)(9)(G);

	
  

	
(iii)

	
Limits on Distribution Periods. As of the first distribution calendar year, distributions, if not made in a single-sum, may only be made over one of the following periods (or a combination thereof):

	
  

	
(A)

	
the life of the Participant;

	
  

	
(B)

	
the life of the Participant and a designated beneficiary;

	
  

	
(C)

	
a period certain not extending beyond the life expectancy of the Participant; or

	
  

	
(D)

	
a period certain not extending beyond the joint and last survivor expectancy of the Participant and a designated beneficiary.

	
  

	
(b)

	
Time and Manner of Distribution.

	
  

	
(i)

	
Required Beginning Date. The Participant’s entire interest will be distributed, or begin to be distributed, to him or her no later than his or her required beginning date;

  

52

  

 

                                                                   

	 	
(ii)

	
Death of Participant before Distributions Begin. If the Participant dies before required distributions begin, his or her entire interest will be distributed, or begin to be distributed, no later than as follows:

	
  

	
(A)

	
If his or her surviving spouse is his or her sole designated beneficiary, then distributions to the surviving spouse will begin by December 31 of the calendar year immediately following the calendar year in which he or she died, or by December 31 of the calendar year in which he or she would have attained age 701⁄2, if later;

	
  

	
(B)

	
If his or her surviving spouse is not his or her sole designated beneficiary, then distributions to the designated beneficiary will begin by December 31 of the calendar year immediately following the calendar year in which he or she died;

	
  

	
(C)

	
If there is no designated beneficiary as of the date of his or her death who remains a beneficiary as of September 30 of the year immediately following the year of his or her death, his or her entire interest will be distributed by December 31 of the calendar year containing the fifth anniversary of his or her death;

	
  

	
(D)

	
If his or her surviving spouse is his or her sole designated beneficiary and his or her surviving spouse dies after him or her but before distributions to the surviving spouse begin, this Section 6.10(b), other than Section 6.10(b)(ii)(A), will apply as if the surviving spouse were the Participant.

For purposes of this Section 6.10(b)(ii) and Section 6.10(d), unless Section 6.10(b)(ii)(D) applies, distributions are considered to begin on the Participant’s required beginning date. If Section 6.10(b)(ii)(D) applies, distributions are considered to begin on the date distributions are required to begin to the surviving spouse under Section 6.10(b)(ii)(A). If distributions under an annuity purchased from an insurance company irrevocably commence to the Participant before his or her required beginning date (or to his or her surviving spouse before the date distributions are required to begin to his or her surviving spouse under Section 6.10(b)(ii)(A)), the date distributions are considered to begin is the date distributions actually commence.

	 	
(iii)

	
Forms of Distribution. Unless the Participant’s interest is distributed in the form of an annuity purchased from an insurance company or in a single sum on or before the required beginning date, as of the first distribution calendar year distributions will be made in accordance with Sections 6.10(c) and (d). If his or her interest is distributed in the form of an annuity purchased from an insurance company, distributions thereunder will be made in accordance with the requirements of Code Section 401(a)(9) and regulations thereunder.

  

53

  

 

                                                                   

	 	
(c)

	
Required Minimum Distributions during Participant’s Lifetime.

	
  

	
(i)

	
Amount of Required Minimum Distribution for each Distribution Calendar Year. During the Participant’s lifetime, the minimum amount that will be distributed for each distribution calendar year is the lesser of:

	
  

	
(A)

	
the quotient obtained by dividing his or her account balance by the distribution period in the Uniform Lifetime Table set forth in Regulation §1.401(a)(9)-9, Q&A-2, using his or her age as of his or her birthday in the distribution calendar year; or

	
  

	
(B)

	
if his or her designated beneficiary for the distribution calendar year is his or her spouse, the quotient obtained by dividing his or her account balance by the number in the Joint and Last Survivor Table set forth in Regulation §1.401(a)(9)-9, Q&A-3, using his or her and his or her spouse’s attained ages as of their birthdays in the distribution calendar year.

	
  

	
(ii)

	
Lifetime Required Minimum Distributions Continue Through Year of Participant’s Death. Required minimum distributions will be determined under this Section 6.10(c) beginning with the first distribution calendar year and continuing up to, and including, the distribution calendar year that includes the Participant’s date of death.

	 	
(d)

	
Required Minimum Distributions after Participant’s Death.

	
  

	
(i)

	
Death on or after Date Distributions Begin:

	
  

	
(A)

	
Participant Survived by Designated Beneficiary. If the Participant dies on or after the date required distributions begin and there is a designated beneficiary, the minimum amount that will be distributed for each distribution calendar year after the year of his or her death is the quotient obtained by dividing his or her account balance by the longer of his or her remaining life expectancy of his or her designated beneficiary, determined as follows:

	
  

	
(1)

	
The Participant’s remaining life expectancy is calculated in accordance with the Single Life Table found in Regulation §1.401(a)(9)-9, Q&A-1, using his or her age in the year of death, reduced by one for each subsequent year;

	
  

	
(2)

	
If his or her surviving spouse is his or her sole designated beneficiary, the remaining life expectancy of the surviving spouse is calculated using the Single Life Table found in Regulation §1.401(a)(9)-9, Q&A-1, for each distribution calendar year after the year of his or her death using the surviving spouse’s age as of the spouse’s birthday in that year. For distribution calendar years after the year of the

  

54

  

 

                                                                   

surviving spouse’s death, the remaining life expectancy of the surviving spouse is calculated using the age of the surviving spouse as of the spouse’s birthday in the calendar year of the spouse’s death, reduced by one for each subsequent calendar year;

	
  

	
(3)

	
If his or her surviving spouse is not his or her sole designated beneficiary, the designated beneficiary’s remaining life expectancy is calculated under the Single Life Table using the age of the beneficiary in the year following the year of his or her death, reduced by one for each subsequent year;

	
  

	
(B)

	
No Designated Beneficiary. If the Participant dies on or after the date required distributions begin and there is no designated beneficiary as of his or her date of death who remains a beneficiary as of September 30 of the year after the year of his or her death, the minimum amount that will be distributed for each distribution calendar year after the year of his or her death is the quotient obtained by dividing his or her account balance by his or her remaining life expectancy under the Single Life Table calculated using his or her age in the year of his or her death, reduced by one for each subsequent year.

	 	
(ii)

	
Death before Date Distributions Begin:

	
  

	
(A)

	
Participant Survived by Designated Beneficiary. If the Participant dies before the date required distributions begin and there is a designated beneficiary, the minimum amount that will be distributed for each distribution calendar year after the year of his or her death is the quotient obtained by dividing his or her account balance by the remaining life expectancy of his or her designated beneficiary, determined as provided in Section 6.10(d)(i);

	
  

	
(B)

	
No Designated Beneficiary. If the Participant dies before the date required distributions begin and there is no beneficiary designated as of the date of death of the Participant who remains a beneficiary as of September 30 of the year following the year of the Participant’s death, distribution of the Participant’s entire interest must be completed by December 31 of the calendar year containing the fifth anniversary of the Participant’s death;

	
  

	
(C)

	
Death of Surviving Spouse before Distributions to Surviving Spouse are Required to Begin. If the Participant dies before the date required distributions begin, his or her surviving spouse is his or her sole designated beneficiary, and the surviving spouse dies before distributions are required to begin to the surviving spouse

  

55

  

 

                                                                   

under Section 6.10(b)(ii)(A), this Section 6.10(d)(ii) will apply as if the surviving spouse were the Participant.

	 	
(e)

	
Definitions. The following definitions apply for purposes of this Section:

	
  

	
(i)

	
“Designated beneficiary.” The individual who is designated as the Beneficiary under Section 1.08 and who is a designated beneficiary under Section 401(a)(9) of the Code and Regulation §1.401(a)(9)-4;

	
  

	
(ii)

	
“Distribution calendar year.” A calendar year for which a minimum distribution is required. For distributions beginning before the Participant’s death, the first distribution calendar year is the calendar year immediately preceding the calendar year which contains his or her required beginning date. For distributions beginning after his or her death, the first distribution calendar year is the calendar year in which distributions are required to begin under Section 6.10(b)(ii). The required minimum distribution for his or her first distribution calendar year will be made on or before his or her required beginning date. The required minimum distribution for other distribution calendar years, including the required minimum distribution for the distribution calendar year in which his or her required beginning date occurs, will be made on or before December 31 of that distribution calendar year;

	
  

	
(iii)

	
“Life expectancy.” Life expectancy computed by use of one of the following tables, as appropriate: (A) Single Life Table, (B) Uniform Life Table, or (C) Joint and Last Survivor Table found in Regulation §1.401(a)(9)-9;

	
  

	
(iv)

	
“Participant’s account balance.” The account balance as of the last Valuation Date in the calendar year immediately preceding the distribution calendar year (valuation calendar year) increased by the amount of any contributions made and allocated or forfeitures allocated to the account as of dates in the valuation calendar year after the Valuation Date and decreased by distributions made in the valuation calendar year after the Valuation Date. The account balance for the valuation calendar year includes any amounts rolled over or transferred to the Plan either in the valuation calendar year or in the distribution calendar year if distributed or transferred in the valuation calendar year;

	
  

	
(v)

	
“Required beginning date.” The April 1 of the calendar year following the later of the calendar year in which the Participant attains age 701⁄2 or retires, except in the case of a Participant who is a 5% owner, in which case it is the April 1 of the calendar year following the calendar year in which he attains age 701⁄2;

	
  

	
(vi)

	
“5% owner.” A Participant is treated as a 5% owner for purposes of this Section if he or she is a 5% owner as defined in Section 416 of the Code at

  

56

  

 

                                                                   

any time during the Plan Year ending with or within the calendar year in which he or she attains age 701⁄2. Once distributions have begun to a 5% owner under this Section, they must continue to be distributed, even if he or she ceases to be a 5% owner in a subsequent year.

	 	
(f)

	
Notwithstanding any other provision of this Section 6.10 to the contrary, a Participant or Beneficiary who would have been required to receive required minimum distributions for 2009 but for the enactment of Code Section 401(a)(9)(H) (“2009 RMDs”), and who would have satisfied that requirement by receiving distributions that are (i) equal to the 2009 RMDs or (ii) one or more payments in a series of substantially equal distributions (that include the 2009 RMDs) made at least annually and expected to last for the life (or life expectancy) of the Participant, the joint lives (or joint life expectancy) of the Participant and his or her designated Beneficiary, or for a period of at least 10 years (“Extended 2009 RMDs”), will not receive those distributions for 2009 unless the Participant or Beneficiary chooses to receive such distributions. Participants and Beneficiaries described in the preceding sentence will be given the opportunity to elect to receive the distributions described in the preceding sentence. Further, and notwithstanding any other provision of this Section 6.10 to the contrary, for purposes of the direct rollover provisions of Section 6.04, 2009 RMDs and Extended 2009 RMDs (both as defined above) also will be treated as eligible rollover distributions in 2009.

  

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ARTICLE 7

GENERAL PROVISIONS

	
7.01

	
Amendments

The Company, by action of its Chief Executive Officer, may amend or modify this Plan, in whole or in part, at any time in his or her sole discretion, including but not limited to any remedial retroactive changes (within the time specified by the applicable Regulations) to comply with any law or Regulation to which the Plan is subject.

	
  

	
(a)

	
Except as permitted by applicable law, no amendment to this Plan shall be effective to the extent that it has the effect of decreasing a Participant’s accrued benefit.

	
  

	
(b)

	
Except as permitted by applicable law, no amendment to the Plan shall be effective to eliminate or restrict an optional form of benefit.

	
  

	
(c)

	
An amendment shall not decrease a Participant’s vested interest in the Plan. If an amendment to the Plan, or a deemed amendment in the case of a change in top heavy status of the Plan as provided in Article 9, changes the computation of the percentage used to determine that portion of a Participant’s Account attributable to Employer Contributions which is nonforfeitable (whether directly or indirectly), each Participant or former Participant:

	
  

	
(i)

	
who has completed at least three (3) Years of Service on the date the election period described below ends; and

	
  

	
(ii)

	
whose nonforfeitable percentage will be determined on any date after the date of the change

may elect, during the election period, to have the nonforfeitable percentage of his Account that results from Employer Contributions determined without regard to the amendment. This election may not be revoked. If after the Plan is changed, the Participant’s nonforfeitable percentage will at all times be as great as it would have been if the change had not been made, no election needs to be provided. The election period shall begin no later than the date the Plan amendment is adopted, or deemed adopted in the case of a change in the top heavy status of the Plan, and end no earlier than the 60th day after the latest of the date the amendment is adopted (or deemed adopted) or becomes effective, or the date the Participant is issued written notice of the amendment (or deemed amendment) by the Employer or the Plan Administrator.

	
7.02

	
Mergers and Direct Transfers

The Plan may not be merged or consolidated with, nor have its assets or liabilities transferred to, any other retirement plan, unless each Participant in the Plan would (if the Plan then terminated) receive a benefit immediately after the merger, consolidation, or transfer which is equal to or greater than the benefit the Participant would have been

  

58

  

 

                                                                   

entitled to receive immediately before the merger, consolidation, or transfer (if this Plan had then terminated). The Company may enter into merger agreements or direct transfer of assets agreements with the sponsors of other retirement plans which are qualified under Code Section 401(a), including an elective transfer, and may accept the direct transfer of plan assets, or may transfer plan assets, as a party to any such agreement. The Company shall not consent to, or be a party to a merger, consolidation, or transfer of assets with a plan which is subject to the survivor annuity requirements of Code Section 401(a)(11) if such action would result in a survivor annuity feature being maintained under this Plan.

The Plan may accept a direct transfer of plan assets on behalf of an Eligible Employee. If the Eligible Employee is not an Active Participant when the transfer is made, the Eligible Employee shall be deemed to be an Active Participant only for the purpose of investment and distribution of the transferred assets. Employer Contributions shall not be made for or allocated to the Eligible Employee, until the time he meets all of the requirements to become an Active Participant.

The Plan shall hold, administer, and distribute the transferred assets as a part of the Plan. The Plan shall maintain a separate account for the benefit of the Employee on whose behalf the Plan accepted the transfer in order to reflect the value of the transferred assets.

A Participant’s protected benefits may be eliminated upon transfer between qualified defined contribution plans if the conditions in Q&A-3(b)(1) in Regulation §1.411(d)-4 are met. The transfer must meet all of the other applicable qualification requirements.

A Participant’s protected benefits may be eliminated upon transfer between qualified plans (both defined benefit and defined contribution) if the conditions in Q&A-3(c)(1) in Regulation §1.411(d)-4 are met. If the Participant is eligible to receive an immediate distribution of his entire nonforfeitable accrued benefit in a single sum distribution that would consist entirely of an eligible rollover distribution under Code Section 401(a)(31), such transfer will be accomplished as a direct rollover under Code Section 401(a)(31). The rules applicable to distributions under the Plan will apply to the transfer, but the transfer will not be treated as a distribution for purposes of the minimum distribution requirements of Code Section 401(a)(9).

	
7.03

	
Termination of Plan

The Company expects to continue the Plan indefinitely but reserves the right to terminate the Plan, by action of the Compensation Committee of the Board, in whole or in part, at any time, upon giving written notice to all parties concerned.

The Account of each Participant deemed to be affected by a complete termination of the Plan shall be fully (100%) vested and nonforfeitable as of the effective date of complete termination of the Plan. The Account of each Participant who is included in the group of Participants deemed to be affected by a partial termination of the Plan shall be fully (100%) vested and nonforfeitable as of the effective date of the partial termination of the Plan. Such Participant’s Account shall continue to participate in the earnings credited,

  

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expenses charged, and any appreciation or depreciation of the Trust Fund until his or her vested Account is distributed. The Named Fiduciary, in its sole discretion, shall be responsible for determining whether a partial termination has occurred and, in its sole discretion, may fully vest the Accounts of a group of Participants because they are affected by a business divestiture, layoff, reduction-in-force or other similar transaction, in which case the rules relating to a partial termination shall apply (even if a true partial termination under Code Section 411(d)(3) has not occurred).

The portion of a Participant’s Account which does not result from Elective Deferral Contributions or “safe-harbor” Matching Contributions may be distributed to the Participant after the effective date of the complete termination of the Plan. A Participant’s Account resulting from Elective Deferral Contributions or “safe-harbor” Matching Contributions may be distributed upon complete termination of the Plan, but only if neither an Employer nor any Affiliate maintains or establishes a successor defined contribution plan (other than an employee stock ownership plan as defined in Code Section 4975(e)(7), a simplified employee pension plan as defined in Code Section 408(k) or a SIMPLE IRA plan as defined in Code Section 408(p)) and such distribution is made in a lump sum. A distribution under this Article shall be a retirement benefit and shall be distributed to the Participant according to the provisions of Article 6.

The Participant’s entire vested Account shall be paid in a single sum to the Participant as of the effective date of complete termination of the Plan if: (i) the requirements for distribution of Elective Deferral Contributions or “safe-harbor” Matching Contributions in the above paragraph are met; and (ii) consent of the Participant is not required to distribute a benefit which is immediately distributable. Such payment is in full settlement of all benefits otherwise payable.

The assets of this Plan shall not be paid to an Employer at any time, except that, after the satisfaction of all liabilities under the Plan, any assets remaining may be paid to an Employer. The payment may not be made if it would contravene any provision of law.

  

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ARTICLE 8

ADMINISTRATION OF THE PLAN

	
8.01

	
Administration

Subject to the provisions of this article, the Named Fiduciary has complete control of the administration of the Plan. The Named Fiduciary has all the powers necessary for it to properly carry out its administrative duties. Not in limitation, but in amplification of the foregoing, the Named Fiduciary has complete discretion to construe and interpret the provisions of the Plan, including ambiguous provisions, if any, and to determine all questions that may arise under the Plan, including all questions relating to the eligibility of Employees to participate in the Plan and the amount of benefit to which any Participant or Beneficiary may become entitled. The Named Fiduciary’s decisions upon all matters within the scope of its authority shall be final.

The Named Fiduciary may appoint or employ such persons as it deems necessary to render advice with respect to any responsibility it has under the Plan. The Named Fiduciary may delegate to the Plan Administrator or any employee any responsibility it may have under the Plan and may designate any other person or persons to carry out any of its responsibilities under the Plan. Any delegation of the Named Fiduciary’s authority under the Plan carries with it the Named Fiduciary’s complete and exclusive authority and discretion to construe and interpret the provisions of the Plan, unless otherwise stated.

The Company, acting through the Plan Administrator, shall be the “plan administrator” for purposes of Code Section 414(g) and the “administrator” for purposes of ERISA Section 3(16). Notwithstanding the preceding, the Company shall have no duties and responsibilities which may be considered administrative in nature but involve an exercise of discretion within the meaning of ERISA Section 3(21)(A)(iii).

Unless otherwise set out in the Plan or Annuity Contract, the Plan Administrator may delegate recordkeeping and other duties which are necessary for the administration of the Plan to any person or firm that agrees to accept such duties. The benefits department of the Company is responsible for the day-to-day non-discretionary administration of the Plan. The benefits department may delegate all or any portion of such ministerial duties to a recordkeeper or other service provider to the Plan. References in the Plan to notices or applications submitted to, and procedures established by, the Plan Administrator or the Named Fiduciary are deemed to include submissions to and procedures established by the benefits department, the Plan’s recordkeeper or other service provider to the Plan.

The Plan Administrator is entitled to rely upon all tables, valuations, certificates and reports furnished by the consultant or actuary appointed by the Plan Administrator and upon all opinions given by any counsel selected or approved by the Plan Administrator. To the extent not prohibited by state or federal law, the Company agrees to, and shall, indemnify and save harmless any member of the Plan Administrator or the Named Fiduciary or any employee of the Company from all claims for liability, loss or damage (including payment of expenses in connection with defense against any such claim)

  

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which result from any exercise or failure to exercise any responsibilities with respect to the Plan, other than gross negligence, willful misconduct or willful failure to act.

The Plan Administrator shall receive all claims for benefits by Participants, former Participants and Beneficiaries. The Plan Administrator shall determine all facts necessary to establish the right of any claimant to benefits and the amount of those benefits under the provisions of the Plan. The Plan Administrator may establish rules and procedures to be followed by claimants in filing claims for benefits, in furnishing and verifying proofs necessary to determine age, and in any other matters required to administer the Plan.

 

	
8.02

	
Employers

	
  

	
(a)

	
Participating Affiliates: Each Affiliate shall be eligible to participate in this Plan unless such Affiliate is a nonparticipating Affiliate as described in Attachment A. An eligible Affiliate’s participation in this Plan shall be authorized in writing by the Affiliate and shall provide that such Affiliate:

	
  

	
(i)

	
agrees that the provisions of this Plan and any amendments hereto shall control with respect to the duties, rights and benefits under the Plan of the Affiliate’s employees, their spouses, and other persons designated by the Affiliate’s employees as eligible for benefits under the Plan; and

	
  

	
(ii)

	
appoints the Named Fiduciary, the Plan Administrator, the Board and the Company as its agents to exercise on its behalf all the powers and authority conferred upon the Named Fiduciary, Plan Administrator, the Board and the Company under the Plan.

	
  

	
(b)

	
Employer Contributions: Contributions made by any Employer shall be treated as Contributions made by the Company. Forfeitures, if any, arising from those Contributions shall be used for the benefit of all Participants.

	
  

	
(c)

	
Withdrawal of Employer: An Employer shall not be an Employer if it ceases to be controlled by or affiliated with the Company. Further, the Company may, in its sole discretion, determine that an Employer shall no longer participate in the Plan and direct that such Employer withdraw from the Plan. Similarly, an Employer may, by action of its board of directors, elect to terminate its participation in, and withdraw from, the Plan.

	
8.03

	
Plan Expenses

Expenses of the Plan, to the extent that an Employer does not pay such expenses, may be paid out of the assets of the Plan provided that such payment is consistent with ERISA.

	
8.04

	
Claims and Appeals Procedure

	
  

	
(a)

	
Claims for benefits under the Plan shall be submitted to the Plan Administrator or a person designated by the Plan Administrator. Within 90 days after its receipt of

  

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any claim for a benefit under the Plan, the Plan Administrator (or its delegate) shall give written notice to the claimant of its decision on the claim unless the Plan Administrator (or its delegate) determines that special circumstances require an extension of time for processing the claim.

	
  

	
(i)

	
If an extension of time for processing the claim is needed, a written notice shall be furnished to the claimant within the 90-day period referred to above which states the special circumstances requiring the extension and the date by which a decision can be expected, which shall be no more than 180 days from the date the claim was filed.

	
  

	
(ii)

	
If the claimant must provide additional information to allow the Plan Administrator (or its delegate) to make a decision on the claim, the review period shall be tolled until such information is provided. Any notice of extension under this paragraph shall specifically explain:

	 	
(A) 

	
the standards on which entitlement to a benefit is based;

	
  

	
(B)

	
the unresolved issues that prevent a final decision from being rendered on the claim;

	
  

	
(C)

	
the additional information needed to resolve those issues; and

	
  

	
(D)

	
that the claimant shall be afforded 45 days within which to provide the specified information.

	 	
(b)

	
If a claim for benefits is being denied, in whole or in part, the Plan Administrator (or its delegate) shall provide the claimant with a notice written in a manner calculated to be understood by the claimant which shall include:

	
  

	
(i)

	
the specific reason or reasons for such denial;

	
  

	
(ii)

	
specific references to the Plan provisions upon which the denial is based;

	
  

	
(iii)

	
a description of any additional material or information which may be needed to perfect the request, including an explanation of why such material or information is necessary; and

	
  

	
(iv)

	
an explanation of the Plan’s claim review procedures and the time limits applicable to such procedures, and including a statement of the claimant’s right to bring a civil action under ERISA Section 502(a) following an adverse benefit determination on appeal and the time limits applicable thereto.

	 	
(c)

	
Any claimant whose claim for benefits is denied by the Plan Administrator (or its delegate) may appeal to the Plan Administrator for a review of the denial by making a written request for review within 60 days of a notification of denial. Any such request may include any written comments, documents, records and

  

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other information relating to the claim and may include a request for “relevant” documents to be provided free of charge. The claimant may, if he or she chooses, request a representative to make such written submissions on his or her behalf.

	 	
(d)

	
The Plan Administrator shall notify the claimant in writing within 60 days after request for an appeal of its final decision. If, however, the Plan Administrator determines that special circumstances require additional time for processing, the Plan Administrator may extend such 60-day period, but not by more than an additional 60-day period, and shall notify the claimant in writing of such extension before the end of the initial 60-day period. The notice shall state the special circumstances requiring the extension and the date by which a decision can be expected. If the period of time is extended due to a claimant’s failure to submit information necessary to decide a claim, the period for making the benefit determination on appeal shall be tolled from the date on which the notification of the extension is sent to the claimant until the date on which the claimant responds to the request for additional information.

	 	
(e)

	
In the case of an adverse benefit determination on appeal, the Plan Administrator will provide written notification to the claimant, set forth in a manner calculated to be understood by the claimant, of:

	
  

	
(i)

	
the specific reason or reasons for the adverse determination on appeal;

	
  

	
(ii)

	
the specific Plan provisions on which the denial of the appeal is based;

	
  

	
(iii)

	
a statement that the claimant is entitled to receive, upon request and free of charge, reasonable access to, and copies of all documents, records, and other information “relevant” to the claimant’s claim for benefits; and

	
  

	
(iv)

	
a statement of the claimant’s right to bring a civil action under ERISA Section 502(a) and the time limits applicable thereto.

	 	
(f)

	
For purposes of this Section, a document, record or other information shall be considered “relevant” to a claimant’s claim if such document, record or other information: (i) was relied upon in making the benefit determination; (ii) was submitted, considered, or generated in the course of making the benefit determination, without regard to whether such document, record, or other information was relied upon in making the benefit determination; and (iii) demonstrates compliance with the administrative processes and safeguards required in making the benefit determination.

 

	 	
(g)

	
Limitations. Effective January 1, 2011, if a claimant fails to timely file a request for an initial review or an appeal according to the procedures outlined in Section 8.04, such claimant will have no rights of review and will have no right to bring action (whether at law, in equity or otherwise) in any court, and the denial of the claim will become final and binding on all persons for all purposes. No action (whether at law, in equity or otherwise) will be commenced seeking judicial review of an adverse determination under Section 8.04 later than one (1) year

  

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after the date of the notice of the adverse determination on which judicial review is sought, provided that the Plan shall object to any attempt to seek judicial review unless the claimant has timely filed an administrative appeal under Section 8.04(c). Further, no administrative claim regarding an error in the amount of a contribution to a Participant’s Account or an error in processing a Participant’s investment instructions may be made more than one (1) year after a notification described in Section 5.03 or made pursuant to Section 5.01(b)(iii) and relating to the period in which such error allegedly occurred was issued to the Participant.

	
8.05

	
Voting and Tender of Qualifying Employer Securities

Voting rights with respect to Qualifying Employer Securities will be passed through to Participants. The Trustee shall exercise all voting rights with respect to Qualifying Employer Securities which are allocated to Accounts in accordance with instructions from Participants. Before each meeting of shareholders, the Employer shall cause to be sent to each Participant (or, if applicable, Beneficiary or Alternate Payee) a copy of any notice and any other information provided to shareholders and, if applicable, a form for instructing the Trustee how to vote at such meeting (or any adjournment thereof) the number of full and fractional shares subject to such person’s voting control. The Trustee may establish a deadline in advance of the meeting by which such forms must be received in order to be effective.

If a Participant (or, if applicable, Beneficiary or Alternate Payee) controls voting rights, he or she shall be entitled to one vote for each share credited to his or her Account.

If Participants (or, if applicable, Beneficiaries or Alternate Payees) control voting rights, and if some or all of such persons have not directed or have not timely directed the Trustee on how to vote, then the Trustee shall vote such Qualifying Employer Securities in the same proportion as those shares of Qualifying Employer Securities for which the Trustee has received proper direction for such matter.

Tender rights or exchange offers for Qualifying Employer Securities will be passed through to Participants (or, if applicable, Beneficiaries or Alternate Payees). As soon as practicable after the commencement of a tender or exchange offer for Qualifying Employer Securities, the Company shall cause each person with power to control the response to such tender or exchange offer to be advised in writing the terms of the offer and, if applicable, to be provided with a form for instructing the Trustee, or for revoking such instruction, to tender or exchange shares of Qualifying Employer Securities, to the extent permitted under the terms of such offer. In advising such persons of the terms of the offer, the Company may include statements from the Board setting forth its position with respect to the offer.

If some or all of the Participants (or, if applicable, Beneficiaries or Alternate Payees)have not directed or have not timely directed the Trustee on how to tender, then the Trustee shall not tender such Qualifying Employer Securities.

  

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If the tender or exchange offer is limited so that all of the shares that the Trustee has been directed to tender or exchange cannot be sold or exchanged, the shares that each Participant (or, if applicable, Beneficiary or Alternate Payee) directed to be tendered or exchanged shall be deemed to have been sold or exchanged in the same ratio that the number of shares actually sold or exchanged bears to the total number of shares that the Trustee was directed to tender or exchange.

The Trustee shall hold the individual directions of the Participant (or, if applicable, Beneficiary or Alternate Payee) with respect to voting rights or tender decisions in confidence and, except as required by law or as directed by the Named Fiduciary, shall not divulge or release such individual directions to anyone associated with the Company or an Employer. The Named Fiduciary may require verification of the Trustee’s compliance with the directions received from Participants (or, if applicable, Beneficiaries or Alternate Payees) by any independent auditor selected by the Named Fiduciary, provided that such auditor agrees to maintain the confidentiality of such individual directions.

The Named Fiduciary may develop procedures to facilitate the exercise of votes or tender rights, such as the use of facsimile or electronic transmissions for the Participants (or, if applicable, Beneficiaries or Alternate Payees) located in physically remote areas.

  

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ARTICLE 9

TOP HEAVY RULES

	
9.01

	
Top Heavy Determination

	
  

	
(a)

	
For purposes of this Section, the following definitions shall be applicable:

	
  

	
(i)

	
“Key Employee” means an Employee or former Employee who at any time during the Plan Year containing the Determination Date is or was: (1) an officer of the Employer having annual Limitation Compensation for such Plan Year which is in excess of $130,000 (as adjusted pursuant to Code Section 416(i)(1)(A)), but in no event shall the number of officers taken into account as Key Employees exceed the lesser of (A) 50 or (B) the greater of 3 or 10% of all employees; (2) a 5% owner of the Employer; or (3) a 1% owner of the Employer who has annual Limitation Compensation (as defined in Section 4.04(c)) of more than $150,000. For purposes of determining 5% and 1% owners, neither the aggregation rules nor the rules of Code Sections 414(b), (c) and (m) apply. Beneficiaries of a Key Employee are considered Key Employees, and inherited benefits will retain the character of the benefits of the Employee who performed services for the Employer. The identification of Key Employees will be made in accordance with Code Section 416(i)(1).

	
  

	
(ii)

	
“Non-Key Employee” means any employee of the Employer who is not a Key Employee.

	
  

	
(iii)

	
“Determination Date” means, for any Plan Year, the last day of the preceding Plan Year.

	
  

	
(iv)

	
“Qualified Plan” means any plan maintained by the Employer which satisfies the qualification requirements of Code Section 401(a).

	
  

	
(v)

	
“Aggregation Group” means (A) each Qualified Plan, whether or not terminated, in which one or more Key Employees are (or were) participants, (B) each Qualified Plan (whether or not terminated) that enables a Qualified Plan in which one or more Key Employees are participants to satisfy the requirements of Code Sections 401(a)(4) or Section 410, and (C) each Qualified Plan that the Employer designates as part of the Aggregation Group, provided that the resulting Aggregation Group satisfies the requirements of Code Sections 401(a)(4) and Section 410.

	
  

	
(b)

	
The Plan will be top heavy for any Plan Year if, as of the Determination Date for such Plan Year, the sum of (i) the aggregate of the present value of accrued benefits for Key Employees under each defined benefit plan (as defined in Code Section 414(j)) in the Aggregation Group and (ii) the aggregate of the adjusted balances of the accounts for Key Employees under each defined contribution plan (as defined in Code Section 414(i)) in the Aggregation Group, exceeds 60% of the

  

67

  

 

                                                                   

sum of the present value of accrued benefits and the adjusted account balances for Key Employees and Non -Key Employees under each Qualified Plan in the Aggregation Group. The present values of accrued benefits and the adjusted account balances of any Key Employee or Non-Key Employee as of the Determination Date shall be increased by the distributions made with respect to the Key Employee or Non-Key Employee under the Plan and any Plan aggregated with the Plan under Code Section 4l6(g)(2) during the 1-year period ending on the Determination Date. The preceding sentence also shall apply to distributions under a terminated plan which, had it not been terminated, would have been aggregated with the Plan under Code Section 416(g)(2)(A)(i). In the case of a distribution made for a reason other than separation from service, death, or disability, this provision shall be applied by substituting “5-year period” for “1-year period.” The accrued benefits and accounts of any individual who has not performed services for the Employer during the 1-year period ending on the Determination Date shall not be taken into account. In addition, the present value of accrued benefits under any defined benefit plan shall be determined by using the actuarial assumptions specified by the Employer, which shall be the same as the actuarial assumptions used for this purpose for each other defined benefit plan in the Aggregation Group.

	
9.02

	
Minimum Benefit

If the Plan is top heavy in any Plan Year, each Non-Key Employee who is a Participant eligible to share in Employer Contributions for the Plan Year and who is an employee of the Employer on the last day of the Plan Year shall receive a minimum contribution from the Employer for his account for such Plan Year of 3% of his Total Compensation. Notwithstanding the foregoing:

	
  

	
(a)

	
a minimum contribution shall not be made with respect to a Non- Key Employee to the extent he has been provided with the minimum benefit required by Code Section 416(c) with respect to such Plan Year under a Qualified Plan which is a defined benefit plan;

	
  

	
(b)

	
the minimum contribution percentage under this Section shall in no event exceed the highest percentage of Limitation Compensation (within the meaning of Section 4.04(c)) at which contributions are made by the Employer for such Plan Year for the account of any Key Employee; and

	
  

	
(c)

	
a minimum contribution shall not be made to the extent any of the limitations of Article 4 would be exceeded.

	
9.03

	
Impact on Vesting

	
  

	
(a)

	
If the Plan is top-heavy in any Plan Year, then notwithstanding anything contained in the Plan to the contrary, each Participant with an Hour of Service after the Plan becomes top-heavy shall be vested in the portion of his Account

  

68

  

 

                                                                   

attributable to Employer Contributions (to the extent such portion is not then fully vested and nonforfeitable) as determined under the following table:

	
Years of Vesting Service

	
Vested Percentage

	
Less than 3

	
0%

	
3 or more      

	
100%

	
  

	
(b)

	
A Participant’s vested percentage in his Account shall not be less than that determined as of the last day of the most recent top-heavy Plan Year. Further, if the Plan at any time has been top heavy and then ceases being top-heavy, the vested percentage in the Account of a Participant who has at least three (3) Years of Vesting Service (determined as of the last day of the most recent top-heavy year) shall not be less than what it would be if the Plan had not ceased being top-heavy. For purposes of this Section 9.03, Years of Vesting Service shall be determined as provided in Appendix III.

	
  

	
(c)

	
The provisions of this Section 9.03 apply solely for purposes of Appendix I and Appendix II.

	
9.04

	
Requirements Not Applicable

The requirements of this Article 9 shall not apply with respect to any Plan Year in which the Plan consists solely of a cash or deferred arrangement which meets the requirements of Code Sections 401(k)(12) or 401(k)(13), and matching contributions with respect to which the requirements of Code Sections 401(m)(11) or 401(m)(12) are met.

  

69

  

 

                                                                   

ARTICLE 10

MISCELLANEOUS

	
10.01

	
Nonguarantee of Employment

The establishment of this Plan shall not be construed as conferring any legal or other rights upon any Employee or any person for a continuation of employment, nor shall it interfere with the rights of an Employer to discharge any Employee or refuse to rehire a former Employee or otherwise act with relation to him or her. Each Employer may take any action (including discharge or refusal to rehire) with respect to any Employee or former Employee or other person and may treat him or her without regard to the effect that such action or treatment might have upon him or her as a Participant in this Plan.

	
10.02

	
Assignment and Levy

Except as may be required to comply with a qualified domestic relations order in accordance with Section 6.09, no Account under this Plan shall be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, levy or charge, and any attempt to do so shall be void; nor shall any such Account be in any manner liable for or subject to the debts, contracts, engagements or torts of the person entitled to a benefit. If any Participant, Alternate Payee or Beneficiary under this Plan becomes bankrupt or attempts to anticipate, alienate, sell, transfer, assign, pledge, encumber or charge any Account, except as specifically provided herein, or if any Account shall be levied upon, garnished or attached, then such benefit shall, in the discretion of the Named Fiduciary, cease and terminate. In that event the Named Fiduciary will hold or apply the same or any part thereof to or for the benefit of such Participant, Alternate Payee or Beneficiary, his or her spouse, children or other dependents or any of them in such manner and in such proportion as the Named Fiduciary may deem proper.

	
10.03

	
Infancy or Incompetency

If the Plan Administrator determines that any person to whom a benefit is payable is an infant or incompetent by reason of physical or mental disability, any payment due to such person, unless a prior claim shall have been made by a duly qualified guardian or other legal representative, may be paid to the spouse, parent, brother or sister of such person, or any other person deemed by the Named Fiduciary to be responsible for the care of such person. Any such payment shall be a payment for the account of the person otherwise entitled to payment of the benefit and shall be a complete discharge of any liability therefor under this Plan.

	
10.04

	
Missing Persons

If the Plan Administrator is unable to locate a Participant, Alternate Payee or Beneficiary to whom a benefit is payable under this Plan within six months following the date a certified letter was mailed to such person’s last known address notifying him or her of the benefit, the amount so distributable shall be treated as a forfeiture. If the Participant, Alternate Payee or Beneficiary is subsequently located, such benefit shall be restored.

  

70

  

 

                                                                   

	
10.05

	
Recovery of Overpayment

If the Plan makes an overpayment, the Plan has the right at any time to, as elected by the Plan Administrator:

	
  

	
(a)

	
Recover that overpayment from the person to whom it was made;

	
  

	
(b)

	
Offset the amount of that overpayment from a future payment; or

	
  

	
(c)

	
A combination of both.

The Plan shall be considered to have established an equitable lien by agreement with the person to whom such overpayment was made. Such Participant, Beneficiary, Alternate Payee or other person shall, upon request, execute and deliver such instruments and papers as may be required and shall do whatever else is necessary to secure such rights of recovery to the Plan.

	
10.06

	
Governing Law and Rules of Construction

To the extent not inconsistent with ERISA, the Plan shall be construed in accordance with and its validity shall be determined under the laws of the State of Maryland (without regard to its conflict of laws provisions). To the extent required by applicable law, for purposes of the Plan “spouse” means the opposite-sex person to whom an individual is legally married and, to the extent provided under a qualified domestic relations order and required by applicable law, the term “spouse” also will include a former opposite-sex spouse. Whenever used herein, unless the context otherwise indicates, the masculine or the feminine includes the neuter and the singular the plural, and vice versa.

	
10.07

	
Titles and Headings

The titles and headings of the respective Articles and Sections are inserted merely for convenience and shall be given no legal effect.

	
10.08

	
Plan Corrections

The Plan Administrator, in conjunction with the Company, may undertake such correction of Plan errors as the Plan Administrator deems necessary, including correction to preserve tax qualification of the Plan under Code Section 401(a) or to correct a possible fiduciary breach under ERISA. Without limiting the Plan Administrator’s authority under the prior sentence, the Plan Administrator may undertake correction of Plan document, operational or demographic failures under a method described in the Plan or permissible under the Employee Plans Compliance Resolution System (“EPCRS”) or any successor program to EPCRS. The Plan Administrator also may undertake or assist the appropriate Plan fiduciary in undertaking correction of a possible fiduciary breach, including correction under the U.S. Department of Labor Voluntary Fiduciary Correction Program or any successor program thereto. Nothing in this Plan shall preclude the Plan Administrator from directing the Trustee to make an additional distribution from the Trust Fund to the extent such distribution is determined by the Plan Administrator to be

  

71

  

 

                                                                   

necessary to correct a qualification defect in accordance with the corrective procedures permissible under the EPCRS or any other voluntary compliance program.

	
10.09

	
Writings and Electronic Communications

All notices and other communications with respect to the Plan, including signatures relating to such documentation, may be executed and stored on paper, electronically or in another medium. Any documentation executed or stored electronically shall comply with the Electronic Signatures Act. The Plan Administrator and the Plan’s recordkeeper may use telephonic or electronic media to satisfy any notice requirements of this Plan, to the extent permissible under applicable regulations. In addition, a Participant’s consent to immediate distribution may be provided through telephonic or electronic means, to the extent permissible under applicable regulations. The Plan Administrator and the Plan’s recordkeeper also may use telephonic or electronic media to conduct Plan transactions such as enrolling Participants and other transactions to the extent permissible under applicable regulations.

	
10.10

	
Consent to Plan Terms

An Employee, upon becoming a Participant, and any other person, upon becoming a Beneficiary or an Alternate Payee, shall be deemed conclusively for all purposes hereof to have consented to the terms and conditions of the Plan and to be bound thereby.

	
10.11

	
Income Tax Withholding

Amounts shall be withheld from any payment due under this Plan as required to conform with applicable income tax laws.

	
10.12

	
Tax Treatment

This Plan is intended to comply with Code Sections 401(a) and 401(k), and shall be interpreted accordingly. Notwithstanding the foregoing, the Company does not guarantee the tax treatment of any payments or benefits under this Plan including, without limitation, under the Code, federal, state, municipal, local or foreign laws.

	
10.13

	
Counterparts

The Plan and the Trust Agreement may be executed in any number of counterparts, each of which shall constitute but one and the same instrument and may be sufficiently evidenced by any one counterpart.

[REMAINDER OF PAGE INTENTIONALLY BLANK]

  

72

  

 

                                                                   

IN WITNESS WHEREOF, this Coventry Health Care, Inc. Retirement Savings Plan as amended and restated is hereby adopted this 26 day of January, 2011, effective as of January 1, 2011, except as otherwise specified herein or as required by law.

	  	
COVENTRY HEALTH CARE, INC.

 

 

	  
	  	
By:

	
 /s/ Allan Wise

	  
	  	
Title:

	
 

Chief Executive Officer    

	  

  

 

  

APPENDIX I

FIRST HEALTH GROUP CORP. RETIREMENT SAVINGS PLAN

PROTECTED BENEFITS

Notwithstanding any other provision of the Plan to the contrary, the following shall apply with respect to benefits accrued by employees of First Health Group Corp. and its affiliates before January 1, 2006, under the First Health Group Corp. Retirement Savings Plan (the “FH Plan”) who were participants in the FH Plan as of December 31, 2005 and became Participants in the Plan effective as of January 1, 2006.

	
1)

	
Vesting in Employer Contributions

	
  

	
a)

	
Except as otherwise provided below with respect to former participants in the CCN, Inc. 401(k) Plan (the “CCN Plan”) and the Claims Administration Corporation Employees’ Savings Plan (the “CAC Plan”), the FH Plan provided for vesting on the following schedule:

	
Less than 2 Years of Vesting Service

	
0% vested

	
After 2 Years of Vesting Service

	
25% vested

	
After 3 Years of Vesting Service

	
50% vested

	
After 4 Years of Vesting Service

	
75% vested

	
After 5 Years of Vesting Service

	
100% vested

Participants also become 100% vested in their Account balance in the event of their death or Total and Permanent Disability or attainment of Normal Retirement Age while still employed.

	
  

	
b)

	
CCN Plan Participants. The CCN Plan merged into the First Health Plan as of January 1, 2002. The CCN Plan provided for vesting on the following schedule:

	
Less than 1 Year of Vesting Service

	
0% vested

	
At least 1 but less than 2 Years of Vesting Service

	
33.3% vested

	
At least 2 but less than 3 Years of Vesting Service

	
66.7% vested

	
3 or more Years of Vesting Service

	
100% vested

	
  

	
c)

	
CAC Plan Participants. The CAC Plan merged into the First Health Plan as of December 31, 2002. The CAC Plan provided for vesting on the following schedule:

	
Less than 1 Year of Vesting Service

	
0% vested

	
After 1 Year of Vesting Service

	
20% vested

	
After 2 Years of Vesting Service

	
40% vested

	
After 3 Years of Vesting Service

	
60% vested

	
After 4 Years of Vesting Service

	
80% vested

	
After 5 Years of Vesting Service

	
100% vested

  

APP. I - 1

  

 

 

	
2)

	
In-Service Withdrawals

	
  

	
a)

	
HealthCare Value Management, Inc. Profit Sharing Plan (“HCVM Plan”) Participants.

	
  

	
i)

	
Age 591⁄2. Except as otherwise permitted under Section 6.06, an individual who has attained age 591⁄2 who participated in the HCVM Plan may withdraw all or any portion of his or her vested HCVM account at any time for any reason upon written notice to the Plan Administrator. Such withdrawals are limited to two (2) in any 12-month period.

	
  

	
ii)

	
Matching and Discretionary Contribution Account. A participant in the HCVM Plan who has been an active participant in the HCVM Plan, the FH Plan and this Plan for at least five (5) years may withdraw any part of his or her vested HCVM Matching Contribution Account and HCVM Discretionary Contribution Account at any time. Such withdrawals are limited to two (2) in any 12-month period.

	
  

	
b)

	
CAC Plan Participants.

	
  

	
i)

	
Age 591⁄2. Except as otherwise permitted under Section 6.06, an individual who has attained age 591⁄2 who participated in the CAC Plan may withdraw all or a portion of his or her CAC Plan vested matching account, CAC Plan 401(k) account and CAC Plan after-tax account at any time upon written notice to the Plan Administrator. Such withdrawals are limited to two (2) in any Plan Year. The minimum amount of any such withdrawal is $1,000.

	
  

	
ii)

	
Withdrawal of CAC Plan Matching Account. A participant in the CAC Plan who has been an active participant in the CAC Plan, the FH Plan and this Plan for at least five (5) years may withdraw all or a portion of his or her vested CAC Plan matching account at any time upon written notice to the Plan Administrator. A participant in the CAC Plan who has fewer than five (5) years of participation may withdraw any portion of his or her CAC matching account in the CAC Plan that has been in the CAC Plan, the FH Plan and this Plan for at least two (2) years. Such withdrawals are limited to two (2) in any Plan Year. The minimum amount of any such withdrawal is $1,000.

	
  

	
iii)

	
Withdrawal of CAC Plan After-Tax Account. A participant in the CAC Plan who has a CAC Plan after-tax account may withdraw all or a portion of such account at any time upon written notice to the Plan Administrator. Such withdrawals shall be limited to two (2) during any Plan Year. The minimum amount of any such withdrawal is $1,000.

	
  

	
c)

	
CCN Plan Participants. A participant in the CCN Plan who has a CCN Plan after-tax account may withdraw all or a portion of the balance of his or her CCN Plan

  

APP. I - 2

  

 

after-tax account or employer contribution account at any time written notice to the Plan Administrator.

	 	
d)

	
Other FH Plan Participants. The provisions for in-service withdrawals under the Plan are at least as favorable as those under the FH Plan.

  

APP. I - 3

  

 

APPENDIX II

FIRST HEALTH PRIORITY SERVICES, INC.

401(k) PLAN

PROTECTED BENEFITS

Notwithstanding any other provision of the Plan to the contrary, the following shall apply with respect to benefits accrued by employees of First Health Priority Services, Inc. (“FHPS”) before January 1, 2006 under the First Health Priority Services, Inc. 401(k) Plan (the “FHPS Plan”) who were participants in the FHPS Plan on December 31, 2005 and become Participants in the Plan effective as of January 1, 2006.

	
1)

	
Vesting

Except for those participants who attained Normal Retirement Age while employed, vesting of benefits accrued under the FHPS Plan occurred in accordance with the following schedule:

	
Less than 2 Years of Vesting Service

	
0% vested

	
After 2 Years of Vesting Service

	
20% vested

	
After 3 Years of Vesting Service

	
40% vested

	
After 4 Years of Vesting Service

	
60% vested

	
After 5 Years of Vesting Service

	
80% vested

	
After 6 Years of Vesting Service

	
100% vested

	
2)

	
Vesting Service

For purposes of determining Vesting Service under this Plan, the date of hire as used by the FHPS Plan for First Health Priority Services employees who were participants in the FHPS Plan on December 31, 2005 and who became Participants in this Plan as of January 1, 2006 shall be used as the date of hire under this Plan. In no event will the amount of Vesting Service for such Participants under this Plan be less than the Vesting Service under the FHPS Plan as of December 31, 2005.

	
3)

	
In-Service Withdrawals

Except as otherwise permitted under Section 6.06, an individual who has attained age 591⁄2 who participated in the FHPS Plan may withdraw all or a portion of his or her vested FHPS account at any time upon written notice to the Plan Administrator.

  

APP. II - 1

  

 

APPENDIX III

PROVISIONS APPLICABLE TO

APPENDIX I, APPENDIX II AND

CERTAIN PRE-2006 BENEFITS

The following provisions shall apply with respect to application of vesting rules to participants in the FH Plan or the FHPS Plan who are not fully vested, or to Participants in the Plan who may not be fully vested in Employer Contributions made before 2006. In this regard, the provision of Appendix II relating to the date of hire of certain FHPS Plan participants also shall be taken into consideration.

	
1)

	
“Years of Vesting Service” mean an Employee’s Period of Service, expressed as years and fractional parts of a year on the basis that 365 days equals one year, measured from the Employee’s Employment Commencement Date to the Employee’s most recent Severance from Service Date, adjusted as follows:

	
  

	
(a)

	
Reduced by any Period of Severance that occurred prior to the Employee’s most recent Severance from Service Date, unless such Period of Severance is included under the service spanning rule set forth in (e) below.

	
  

	
(b)

	
To include an Employee’s service with a predecessor employer (as defined in Section 4.05(a)) that did not maintain this Plan. This service includes service performed while a proprietor or partner.

	
  

	
(c)

	
To include service with an entity while that entity was an Affiliate, to the extent it has not already been credited.

	
  

	
(d)

	
To include an Employee’s Qualified Military Service to the extent it has not already been credited.

	
  

	
(e)

	
To include a Period of Severance under either of the following conditions (service spanning rule):

	
  

	
(i)

	
the Period of Severance immediately follows a period during which an Employee is not absent from work and ends within 12 months; or

	
  

	
(ii)

	
the Period of Severance immediately follows a period during which an Employee is absent from work for any reason other than quitting, being discharged, or retiring (such as a leave of absence or layoff) and ends within 12 months of the date he or she was first absent.

If an Employee has more than one Period of Service or if all or a part of a Period of Service is not counted, his or her Vesting Service shall be determined by adjusting his or her Employment Commencement Date so that he or she has one continuous period of Vesting Service equal to the aggregate of all his or her countable Periods of Service.

  

APP. III - 1

  

 

 

	
2)

	
Vesting

	
  

	
(a)

	
Vesting Percentage: The Vesting Percentage is the percentage used to determine the nonforfeitable portion of a Participant’s Account attributable to Employer Contributions that were not 100% vested when made.

	
  

	
(i)

	
Except as provided in Appendix I or Appendix II, the applicable Vesting Percentage for a Participant is determined based on his or her Vesting Service, as shown below:

	
VESTING SERVICE

	  
	
(whole years)

	
VESTING PERCENTAGE

	
Less than 1 Year

	
0%

	
1 Year

	
50%

	
2 or more years

	
100%

	
  

	
(ii)

	
However, the Vesting Percentage shall be 100% for a Participant who is an Employee on or after the date he or she reaches Normal Retirement Age. In addition, the Vesting Percentage for a Participant on the date he or she becomes Totally and Permanently Disabled or dies shall be 100%.

	
  

	
(iii)

	
If the schedule used to determine a Participant’s Vesting Percentage is changed, the new schedule shall not apply to a Participant unless he or she is credited with an Hour of Service on or after the date of the change and his or her nonforfeitable percentage on the day before the date of the change is not reduced under this Plan.

	
  

	
(b)

	
In-Service Distributions When Not Fully Vested: If a distribution is made from a Participant’s pre-2006 Matching Contributions at a time when the Participant is not 100% vested in such contributions and his or her employment with an Employer has not terminated, then:

	
  

	
(i)

	
A separate remainder sub-account will be established for his or her interest in such Matching Contributions at the time of the distribution; and

	
  

	
(ii)

	
At any subsequent time, his or her vested portion of such sub-account will be equal to an amount “X” determined under the formula:

X = P(AB + (RxD)) – (RxD), where:

	
  

	
P = the Participant’s vested percentage determined at the relevant time.

	
  

	
AB = the amount in such separate sub-account at the relevant time.

	
  

	
R = the ratio of AB to the amount in the sub-account after the distribution.

D =   the amount of the distribution.

  

APP. III - 2

  

 

 

	
3)

	
Forfeitures

	
  

	
(a)

	
General Rule: Generally, any portion of a Participant’s Account in which he or she is not vested upon at his or her Severance from Service Date shall be forfeited as of the earlier (the Participant’s “Forfeiture Date”) of: (i) the date of his or her death; or (ii) the last day of the Plan Year in which he or she incurs five (5) consecutive one year Periods of Severance.

All or a portion of a Participant’s nonvested Account shall be forfeited before such Forfeiture Date if, after he or she ceases to be an Employee, he or she receives, or is deemed to receive, a distribution of his or her entire vested Account or a distribution of his or her vested Account derived from Employer Contributions which were not 100% vested when made. The forfeiture shall occur as of the date the Participant receives, or is deemed to receive, the distribution. If a Participant receives, or is deemed to receive, his or her entire vested Account, his or her entire nonvested Account shall be forfeited. If a Participant receives a distribution of his or her vested Account from Employer Contributions which were not 100% vested when made, but less than his entire vested Account from such contributions, the amount to be forfeited shall be determined by multiplying his nonvested Account from such contributions by a fraction. The numerator of the fraction is the amount of the distribution derived from Employer Contributions which were not 100% vested when made and the denominator of the fraction is his entire vested Account derived from such contributions on the date of distribution.

	
  

	
(b)

	
Application of Forfeitures: Forfeitures shall be determined at least once during each Plan Year. Forfeitures may first be used to pay administrative expenses of the Plan. Forfeitures that have not been used to pay administrative expenses shall be applied to reduce Employer Contributions made after the Forfeitures are determined and then used either for corrective contributions under Section 3.10 or for restorative contributions as described below.

	
4)

	
Repayments

If a Participant again becomes an Eligible Employee after receiving a distribution which caused all or a portion of his or her nonvested Account to be forfeited, he or she shall have the right to repay to the Plan the entire amount of the distribution he or she received (but excluding any Rollover Contributions). The repayment must be made in a single sum before the earlier of the date five (5) years after the date he or she again becomes an Eligible Employee, or the end of the first period of five (5) consecutive one year Periods of Severance which begin after the date of the distribution.

If the Participant makes the repayment above, the Plan Administrator shall restore to his or her Account an amount equal to his or her nonvested Account which was forfeited on the date of distribution, unadjusted for any investment gains or losses.

  

APP. III - 3

  

 

 

If no amount is to be repaid because the Participant had no vested portion (other than Rollover Contributions), and he or she again performs an Hour of Service as an Eligible Employee within the repayment period, the Plan Administrator shall restore the forfeited portion of the Participant’s Account as if he or she had made a required repayment on the date he or she performed such Hour of Service. Restoration of the Participant’s Account shall include restoration of all Code Section 411(d)(6) protected benefits with respect to that restored Account, according to applicable Regulations; provided, however, the Plan Administrator shall not restore the nonvested Account if: (i) a Forfeiture Date has occurred after the date of the distribution and on or before the date of repayment; and (ii) that Forfeiture Date would result in a complete forfeiture of the amount the Plan Administrator would otherwise restore.

The Plan Administrator shall restore the Participant’s Account by the close of the Plan Year following the Plan Year in which repayment is made or deemed to be made. Permissible sources for the restoration of the Participant’s Account are forfeitures or additional Employer Contributions. Such special Employer Contributions shall be made without regard to profits. The repaid and restored amounts are not included in the Participant’s Annual Additions, as defined in Section 4.04.

  

APP. III - 4

  

 

 

ATTACHMENT A

 

EMPLOYERS

(as of January 1, 2011)

An Affiliate of the Company will be an Employer provided that:

	
  

	
1.

	
the Affiliate has Employees; and

	
  

	
2.

	
the Affiliate is not specifically excluded from participation in the Plan.

Any Affiliate specified on a list maintained by the Company, furnished to the Named Fiduciary and the Plan Administrator, and updated whenever there is a change in the entities so listed, shall not be eligible to become a participating Employer in the Plan.

 

 

 

 

 

 

 

 

 

  

ATT. A - 1

  

 

AMENDMENT NUMBER ONE

TO THE

COVENTRY HEALTH CARE, INC.

RETIREMENT SAVINGS PLAN

 

(Amended and Restated as of January 1, 2011)

 

WHEREAS, Coventry Health Care, Inc. (the “Company”) maintains the Coventry Health Care, Inc. Retirement Savings Plan (the “Plan”); and

 

WHEREAS, pursuant to Section 7.01 of the Plan, the Company may amend the Plan at any time; and

 

WHEREAS, the Company wishes to amend the Plan to permit participants, in accordance with section 404(k) of the Code, to elect to receive in cash or to reinvest dividends paid in cash on Qualifying Employer Securities;

 

NOW, THEREFORE, BE IT RESOLVED, that the Plan is hereby amended as follows, effective as of the date of execution:

 

1.           Section 1.37 (“Participant”) is amended by adding the following sentences at the end thereof:

 

“An alternate payee under a qualified domestic relations order for whom an Account has been established under Section 6.09 is considered a Participant for purposes of electing Investment Funds for his or her Account, making an election under Section 6.11, being charged expenses to his or her Account and designating a beneficiary for his or her Account.  Similarly, a Beneficiary of a deceased Participant for whom an Account has been established, or an Eligible Employee who has not otherwise commenced participation in the Plan but has made a rollover contribution, is considered a Participant for purposes of electing Investment Funds for his or her Account, making an election under Section 6.11, being charged expenses to his or her Account and designating a beneficiary for his or her Account.”

 

2.           Section 1.44 is amended in its entirety to provide as follows:

 

	
  

	
“1.44

	
‘Qualifying Employer Securities’ means any class of common stock of the Company (or of a corporation that is a member of the Company’s controlled group) or any class of noncallable preferred stock of the Company (or of a corporation that is a member of the Company’s controlled group) that is convertible into common stock of the Company (or of a corporation that is a member of the Company’s controlled group) that is readily tradable on an established securities market (such terms as defined under Code Section 409(l)), that meet the requirements of ERISA Section 407(d)(5) and that are held under the Qualifying Employer Securities Fund.  This term also includes any securities that met the requirements above when those securities were assigned to the Plan and first held under the Qualifying Employer Securities Fund.”

 

  

 

  

 

3.           A new Section 1.44A is added to provide as follows:

 

	
  

	
“1.44A

	
‘Qualifying Employer Securities Dividend Sub-Account’ means the portion of a Participant’s Account comprised of cash dividends received on or after September 1, 2012 under the Qualifying Employer Securities Fund that is associated with the portion of the Participant’s Account that is not fully vested.  The Qualifying Employer Securities Dividend Sub-Account shall be further divided into sub-sub-accounts that shall be associated with, and have the characteristics and properties of, the sub-account that was the source of the dividends.  Upon vesting of the source sub-account, the relevant sub-sub-account portion of the Qualifying Employer Securities Dividend Sub-Account may, at the direction of the Plan Administrator, be combined with and into the source sub-account.”

 

4.           Section 3.07(a) is amended in its entirety to provide as follows:

 

	
  

	
“(a)

	
Vested Account:  A Participant’s Elective Deferral Contributions and Rollover Contributions shall be fully (100%) vested and nonforfeitable at all times.  Notwithstanding any other provision of the Plan to the contrary, all Matching Contributions made on or after January 1, 2006 shall be 100% vested at all times.  A Participant’s Qualifying Employer Securities Dividend sub-account shall be fully (100%) vested and nonforfeitable at all times.”

 

5.           Section 5.02(b) is renumbered Section 5.02(c) and a new subsection 5.02(b) is added to provide as follows:

 

	
  

	
“(b)

	
Notwithstanding anything in the Plan to the contrary, one of the Investment Funds shall be the Qualifying Employer Securities Fund.  The Qualifying Employer Securities Fund will be invested primarily in Qualifying Employer Securities, provided that such stock qualifies as qualifying employer securities within the meaning of ERISA Section 407(d)(5).  The Plan is intended to be an eligible individual account plan under ERISA Section 407(d)(3).  The portion of the Plan comprised of the Qualifying Employer Securities Fund shall be an employee stock ownership plan under ERISA Section 407(d)(6) and Code Sections 409 and 4975(e)(7), which shall include the share distribution requirements of Code Section 409(h) and the participant pass-through voting rights required under Code Section 409(e).  The level of Plan assets invested in such fund shall be determined by Participants’ Investment Fund elections and may consist of up to 100% of all Plan assets; provided that in no event may any portion of a Participant’s Account be required to be maintained in the Qualifying Employer Securities Fund.  With respect to the Qualifying Employer Securities Fund, the Plan is intended to comply with the Company’s securities law compliance policy and with applicable federal and state securities laws.”

 

 

  

2

  

6.           Section 5.02(c)(ii) (i.e., former Section 5.02(b)(ii)) is amended in its entirety to provide as follows:

 

	
  

	
“(ii)

	
Except as Participants may elect pursuant to Section 6.11, cash dividends, if any, payable on Qualifying Employer Securities shall be reinvested in additional shares of such securities.  In the event of any cash or stock dividend or any stock split on Qualifying Employer Securities, such dividend or split shall be credited to Accounts based on the number of shares of Qualifying Employer Securities held by each Account as of the record date of such dividend or split.”

 

7.           The first sentence of Section 6.04(a) is amended by renumbering clause (viii) as clause (ix) and adding a new clause (viii) to provide as follows:

 

“(viii) dividends on Qualifying Employer Securities paid directly to a Participant pursuant to an election under Section 6.11;”

 

8.           Section 6.06(b) is amended in its entirety to provide as follows:

 

	
  

	
“(b)

	
A Participant who has attained age 591⁄2 at any time may withdraw any part of his or her vested Account attributable to Elective Deferral Contributions, Matching Contributions or, except with respect to dividends on Qualifying Employer Securities arising from assets attributable to a money purchase pension plan or assets transferred directly from a plan subject to Code Section 417, the Qualifying Employer Securities Dividend sub-account.”

 

9.           A new Section 6.07(f) is added to provide as follows:

 

	
  

	
“(f)

	
A Participant who has requested a hardship distribution and who has any portion of his or her Account invested in the Qualifying Employer Securities Fund shall be subject to restrictions on his or her reinvestment election under Section 6.11 to the extent so provided in Section 6.11(a).”

 

10.           A new Section 6.11 is added to provide as follows:

 

	
  

	
“6.11

	
Elections regarding Cash Dividends on Qualifying Employer Securities

 

	
  

	
(a)

	
Under procedures established by the Plan Administrator, a Participant may elect:

 

	
  

	
(i)

	
to receive a direct payment of any cash dividends on Qualifying Employer Securities otherwise allocable to his or her Account; or

 

	
  

	
(ii)

	
to have such cash dividends reinvested and allocated to his or her Account.

 

A Participant who does not have in effect an election under subsection (a)(i) will be deemed to have elected reinvestment under subsection (a)(ii).   If a Participant has made a request for a hardship withdrawal pursuant to Section 6.07 which is pending during the period beginning ten (10)

 

  

3

  

 

business days prior to any dividend payment date and ending three (3) business days prior to that dividend payment date (or such other period as the Plan Administrator may determine), he or she will be deemed to have elected a direct cash payment under subsection (a)(i) for that dividend payment.  Such cash payment will be considered in determining the amount of any hardship distribution and, on or after that dividend payment date, such Participant may make a new election under this Section 6.11 with respect to subsequent dividend payments.

 

	
  

	
(b)

	
In no event shall any distribution of cash dividends on Qualifying Employer Securities paid into the Trust Fund be made pursuant to this Section 6.11 later than 90 days following the end of the Plan Year in which such dividends were paid into the Trust Fund.

 

	
  

	
(c)

	
Stock dividends on Qualifying Employer Securities shall be reinvested in the Qualifying Employer Securities Fund.

 

	
  

	
(d)

	
An election to receive direct payment of dividends under Section 6.11(a)(i) made not later than 4 p.m. eastern time on the last business day prior to a dividend payment date (or such other time as the Plan Administrator may determine) will be effective as of that dividend payment date; otherwise the election will be effective only as to subsequent dividend payment dates.  Except as provided in subsection (g) below, the dividends with respect to which he or she may elect a direct payment under Section 6.11(a)(i) are 100% of the cash dividends on shares of Qualifying Employer Securities in the Qualifying Employer Securities Fund and allocated to his or her Account as of the record date for the dividend.  For purposes of this Section 6.11, “business days” do not include legal holidays or weekend days.

 

	
  

	
(e)

	
Any election under this Section 6.11 shall continue in effect until revoked prospectively by the Participant.  Any such election or revocation shall be made at such time and in such manner as the Plan Administrator shall specify.

 

	
  

	
(f)

	
Notwithstanding subsections (d) and (e), under subsection (a) a Participant’s election to reinvest may be revoked in connection with his or her request for a hardship distribution under Section 6.07, and a Participant’s election to receive a cash payment also may be revoked if necessary under the Plan’s procedures for making domestic relations order determinations described in Section 6.09.

 

	
  

	
(g)

	
If, with respect to cash dividends declared on shares of Qualifying Employer Securities, the Company authorizes the direct payment under Section 6.11(a)(i) of less than 100% of such dividends, a Participant may elect, under procedures established by the Plan Administrator, a direct payment under this Section 6.11 of such percentage.

 

	
  

	
(h)

	
Cash dividends on Qualifying Employer Securities that are received on the portion of a Participant’s Account that is not fully vested, and that is

 

  

4

  

 

	
  

	
allocated to the Qualifying Employer Securities Fund, shall be directed to the Qualifying Employer Securities Dividend sub-account when received by the Trust Fund and shall be 100% vested upon receipt.

 

	
  

	
(i)

	
Any dividend payment check that is not cashed within six months after issuance shall be treated in accordance with Section 10.04.

 

	
  

	
(j)

	
This Section 6.11 is intended to comply with the requirements of Code Section 404(k) and shall be administered and interpreted accordingly.”

 

11.           Section 2) of Appendix I is amended in its entirety to provide as follows:

 

“2)           In-Service Withdrawals

 

	
  

	
a)

	
HealthCare Value Management, Inc. Profit Sharing Plan (“HCVM Plan”) Participants.

 

	
  

	
i)

	
Age 591⁄2.  In addition to those withdrawals permitted under Section 6.06, an individual who has attained age 591⁄2 who participated in the HCVM Plan may withdraw all or any portion of his or her vested HCVM account at any time for any reason upon written notice to the Plan Administrator.

 

	
  

	
ii)

	
Matching and Discretionary Contribution Accounts.  A participant in the HCVM Plan who has been a participant in the HCVM Plan, the FH Plan and this Plan for at least five (5) years may withdraw any part of his or her vested HCVM Matching Contribution and HCVM Discretionary Contribution Accounts at any time.

 

	
  

	
b)

	
CAC Plan Participants.

 

	
  

	
i)

	
Age 591⁄2.  In addition to those withdrawals permitted under Section 6.06, an individual who has attained age 591⁄2 who participated in the CAC Plan may withdraw all or a portion of his or her CAC Plan 401(k) account at any time upon written notice to the Plan Administrator.

 

	
  

	
ii)

	
Withdrawal of CAC Plan Matching Account.  A participant in the CAC Plan who has been a participant in the CAC Plan, the FH Plan and this Plan for at least five (5) years may withdraw all or a portion of his or her vested CAC Plan matching account at any time upon written notice to the Plan Administrator.

 

	
  

	
iii)

	
Withdrawal of CAC Plan After-Tax Account.  A participant in the CAC Plan who has a CAC Plan after-tax account may withdraw all or a portion of such account at any time upon written notice to the Plan Administrator.

 

	
  

	
c)

	
CCN Plan Participants.  A participant in the CCN Plan who has a CCN Plan after-tax account may withdraw all or a portion of the balance of his or her CCN Plan after-tax account or employer contribution account at any time upon written notice to the Plan Administrator.

 

 

  

5

  

 

	
  

	
d)

	
Other FH Plan Participants.  A participant in the FH Plan who has been a participant in the FH Plan and this Plan for at least five (5) years may withdraw all or a portion of his or her vested FH Plan matching or employer contribution accounts at any time upon written notice to the Plan Administrator.”

 

12.           Section 3) of Appendix II is amended in its entirety to provide as follows:

 

“3)           In-Service Withdrawals

 

	
  

	
a)

	
Age 591⁄2.  In addition to those withdrawals permitted under Section 6.06, an individual who has attained age 591⁄2 who participated in the FHPS Plan may withdraw all or a portion of his or her FHPS Plan 401(k) account at any time upon written notice to the Plan Administrator.

 

	
  

	
b)

	
Withdrawal of FHPS Plan Matching and Employer Contribution Accounts.  In addition to those withdrawals permitted under Section 6.06, an individual who has who has been a participant in the FHPS Plan and this Plan for at least five (5) years may withdraw all or a portion of his or her vested FHPS matching and employer contribution accounts at any time upon written notice to the Plan Administrator.”

 

IN WITNESS WHEREOF, the Company has caused this amendment to the Plan to be executed by its duly authorized officer this 17th day of September, 2012.

 

	  	
COVENTRY HEALTH CARE, INC.

 

 

 

	  
	  	
By:

	
 /s/ Allan Wise

	  
	  	
Title:

	
 

 

Chief Executive Officer

	  

 

 

 

  

6

  

 

AMENDMENT NUMBER TWO

TO THE

COVENTRY HEALTH CARE, INC.

RETIREMENT SAVINGS PLAN

(Amended and Restated as of January 1, 2011)

 

WHEREAS, Coventry Health Care, Inc. (the “Company”) maintains the Coventry Health Care, Inc. Retirement Savings Plan (the “Plan”); and

 

WHEREAS, pursuant to Section 7.01 of the Plan, the Company may amend the Plan at any time; and

 

WHEREAS, the Company wishes to amend the Plan to clarify certain aspects of the Plan document and to modify certain aspects of the Plan’s operation;

 

NOW, THEREFORE, BE IT RESOLVED, that the Plan is hereby amended as follows, effective as of January 1, 2012 except as expressly stated herein:

 

1.           Section 1.13 is clarified to provide as follows:

 

	
  

	
“1.13

	
“Compensation” generally means, except for purposes of Section 4.04, the total wages within the meaning of Code Section 3401(a) and all other payments of compensation to an Employee by an Employer (in the course of an Employer’s trade or business) for which an Employer is required to furnish the Employee a written statement under Code Sections 6041(d), 6051(a)(3) and 6052.  The amount reported in the “Wages, Tips and Other Compensation” box on Form W-2 generally satisfies this definition.

 

	
  

	
(a)

	
Compensation also shall include “elective contributions,” which mean amounts contributed or deferred by the Employer pursuant to a salary reduction agreement and which are not includible in the gross income of the Employee under Code Sections 125, 132(f)(4), 402(e)(3), 402(h)(1)(B), 403(b), 408(p) or 457(b).

 

	
  

	
(i)

	
Amounts under Code Section 125 shall be deemed to include any amounts not available to an Employee in cash in lieu of group health coverage because the Employee is unable to certify that he or she has other health coverage; but

 

	
  

	
(ii)

	
only if the Employer does not request or collect information regarding the Employee’s other health coverage as part of the enrollment process for the health plan.

 

	
  

	
(b)

	

Notwithstanding the above, the annual Compensation of each Participant taken into account for determining all benefits provided under the Plan for any determination period shall not exceed $200,000, as adjusted for increases in the cost-of-living in accordance with Code Section 401(a)(17)(B).

 

	
  

	
(c)

	
Notwithstanding any other provision of the Plan to the contrary, Compensation shall not include:

 

 

  

1

  

 

	
  

	
(i)

	
severance pay or other form of post-termination compensation;

 

	
  

	
(ii)

	
bonuses;

 

	
  

	
(iii)

	
amounts realized from the exercise of a nonstatutory stock option, or when restricted stock (or property) held by an employee either becomes freely transferable or is no longer subject to a substantial risk of forfeiture;

 

	
  

	
(iv)

	
amounts realized from the sale, exchange or other disposition of stock acquired under a statutory stock option;

 

	
  

	
(v)

	
other amounts which receive special tax benefits, such as premiums for group-term life insurance (but only to the extent that the premiums are not includible in the gross income of the employee and are not salary reduction amounts that are described in Code Section 125);

 

	
  

	
(vi)

	
other items of remuneration that are similar to any of the items listed in paragraphs (ii)-(iv) above including, but not limited to, dividends on unvested restricted stock (or property); and

 

	
  

	
(vii)

	
reimbursements or other expense allowances, fringe benefits (cash and non-cash), deferred compensation, non-cash compensation and welfare benefits.

 

	
  

	
(d)

	
Notwithstanding any other provision of the Plan to the contrary, Participants may not make Elective Deferral Contributions with respect to amounts that are not Limitation Compensation (as defined in Section 4.04(c)).  Further, notwithstanding any other provision of the Plan to the contrary, the limit imposed by Code Section 401(a)(17)(B) on Compensation incorporated under subsection (b) above is not applicable for the purpose of determining the amount of Compensation from which Elective Deferral Contributions can be made.”

 

2.           Section 3.01(a)(i) is amended in its entirety, effective July 28, 2012, to provide as follows:

 

	
  

	
“(i)

	
The Automatic Deferral Election applies to an Eligible Employee upon his or her first becoming eligible to make Elective Deferral Contributions (or again becoming eligible after a period during which he or she was not an Active Participant, e.g., during a leave of absence or during a suspension on account of a hardship distribution).  Such automatic Elective Deferral Contributions will begin with the first pay cycle commencing 31 days, or such other period as the Plan Administrator may determine, from the date when an Eligible Employee first becomes (or again becomes) eligible to make Elective Deferral Contributions unless he or she affirmatively elects to modify or revoke the Automatic Deferral Election (e.g., by making his or her own election).”

 

 

  

2

  

3.           Section 5.01(c) is amended by deleting the last two sentences thereof.

 

4.           Section 10.04 is amended in its entirety, effective September 10, 2012, to provide as follows:

 

“10.04    Missing Persons; Uncashed Checks

 

If the Plan Administrator is unable to locate a Participant, Alternate Payee or Beneficiary to whom a benefit is payable under this Plan within six months following the date a certified letter was mailed to such person’s last known address notifying him or her of the benefit, or if a check was sent to a Participant, Alternate Payee or Beneficiary that remains uncashed for six months, the amount so distributable (or distributed) shall be treated in accordance with the Plan’s then-current procedures for processing of “stale-dated” checks (in the former situation, acting as if a check had in fact been issued).

 

5.           New Appendix IV to the Plan is added in the form attached hereto.

 

IN WITNESS WHEREOF, the Company has caused this amendment to the Plan to be executed by its duly authorized officer this 18 day of  December, 2012.

 

	  	
COVENTRY HEALTH CARE, INC.

 

 

	  
	  	
By:

	
/s/ Allan Wise

	  
	  	
Title:

	
 

Chief Executive Officer

	  

 

  

3

  

APPENDIX IV

 

SPECIAL DISTRIBUTION PROVISIONS

 

The provisions of this Appendix IV apply to a Participant who has a portion of his Account attributable to a sub-account attributable to a money purchase pension plan or his or her Account includes assets transferred directly from a plan subject to Code Section 417 (collectively, a “Money Purchase Pension Plan Sub-Account”).  Such provisions may be waived through a “Qualified Election” described in paragraph 5. below.  This Appendix IV applies only to the Money Purchase Pension Plan Sub-Account portion of his or her Account.

 

1.           Restrictions on In-Service Withdrawals.  If a Participant has a Money Purchase Pension Plan Sub-Account, such sub-account may not be distributed prior to the earlier of his or her attainment of Normal Retirement Age, death, Total and Permanent Disability or Severance from Service Date, and prior to Plan termination.  In particular, hardship withdrawals shall not be permitted from a Money Purchase Pension Plan Sub-Account.

 

2.           Restrictions on Loans.  A married Participant with a portion of his or her vested Account attributable to the Money Purchase Pension Plan Sub-Account may not make a loan under Section 6.08 from such portion unless, during the 180-day period ending on the date on which the loan is secured, his or her spouse has filed a written consent to such loan with the Plan Administrator, which consent shall be notarized or witnessed by a representative of the Plan Administrator, and shall acknowledge the effect of the loan.  In the absence of such spousal consent, such portion of his or her vested Account shall be disregarded for purposes of Section 6.08(a)(iii)(B).

 

3.           Automatic and Optional Annuity Requirements.  If a Participant has a Money Purchase Pension Plan Sub-Account, distribution shall be made to him or her through the purchase of an annuity contract that provides for payment in one of the following annuity forms unless he or she elects a different form of payment available under Section 6.01.

 

	
  

	
a)

	
The “automatic annuity form” for a Participant who is married on his or her Benefit Payment Date is a 50% Qualified Joint and Survivor Annuity.

 

	
  

	
b)

	
The “optional annuity form” for a Participant who is married on his or her Benefit Payment Date is a 75% Qualified Joint and Survivor Annuity.

 

	
  

	
c)

	
The “automatic annuity form” for a Participant who is not married on his or her Benefit Payment Date is a Single Life Annuity.

 

His or her election of any form of payment other than the “automatic annuity form” shall not be effective unless it is a “qualified election;” provided that consent of his or her spouse shall not be required if he or she elects the optional form of Qualified Joint and Survivor Annuity.

 

4.           Qualified Preretirement Survivor Annuity Requirements.  If a married Participant who has a Money Purchase Pension Plan Sub-Account dies before his or her Benefit Payment Date, his or her spouse shall receive distribution of the value of his or her vested interest in such sub-account through the purchase of an annuity contract that provides for payment over the life

 

  

i

  

 

of the spouse.  His or her spouse may elect to receive distribution under Section 6.01 instead of in the Qualified Preretirement Survivor Annuity form.  Such Participant may designate a non-spouse Beneficiary to receive distribution of such sub-account only pursuant to a “qualified election” unless his or her spouse has previously consented to the naming of such non-spouse Beneficiary as the sole Beneficiary.

 

5.           Qualified Election Procedures.

 

	
  

	
a)

	
No less than seven (7) and no more than 180 days before distribution of such a Participant’s benefit commences, he or she and his or her spouse (if any) shall be given a written notice to the effect that if he or she is married on the date of commencement of payments, benefits will be payable in form of a 50% (or 75%) Qualified Joint and Survivor Annuity under this Appendix unless he or she, with the consent of his or her spouse, elects to the contrary prior to the commencement of payments.  Consent of the spouse is not required for an election if the Beneficiary is not the spouse.  The notice shall describe, in a manner intended to be understood by him or her and his or her spouse, the terms and conditions of the Qualified Joint and Survivor Annuity, the financial effect of the election of an optional form or to revoke such an election, and the rights of the spouse to consent to an election of an optional form.  In addition, the notice shall inform him or her that he has 30 days to elect whether to have benefits paid in the form described in Section 6.01 in lieu of the automatic form under paragraph 3. above.

 

	
  

	
b)

	
A Participant who desires to have his or her benefit under this Appendix IV paid in the form provided in Section 6.01 shall make such an election through a written form furnished by the Plan Administrator.  His or her election to receive his or her retirement benefit under the form provided in Section 6.01 may be revoked by him or her at any time, and any number of times, during the 180-day period ending on the day his or her benefit payments commence.  After retirement benefit payments have been made, no elections or revocations of the optional method of distribution will be permitted under any circumstances.

 

	
  

	
c)

	
The date payment of his or her benefit is to be made for a distribution in a form other than the 50% (or 75%) Qualified Joint and Survivor Annuity under this Appendix may be less than 30 days after receipt of the written notice described above if:

 

	
  

	
i)

	
he or she has been provided with information that clearly indicates that he or she has at least 30 days to consider whether to waive the 50% (or 75%) Qualified Joint and Survivor Annuity, and elects (with written consent of his or her spouse, if necessary) another form of distribution;

 

	
  

	
ii)

	
he or she is permitted to revoke any affirmative distribution election at least until the Benefit Payment Date or, if later, at any time prior to the expiration of the seven (7) day period that begins the day after he or she is provided the explanation of the 50% (or 75%) Qualified Joint and Survivor Annuity; and

 

	
  

	
iii)

	
the date payment of his or her benefit is to commence is a date after the date that the written notice was provided to him or her.

 

 

  

ii

  

6.           For purposes of this Appendix IV, the following terms have the following meanings:

 

	
  

	
a)

	
“Qualified Joint and Survivor Annuity” means an immediate annuity payable at earliest retirement age under the Plan, as defined in Regulations under Code Section 401(a)(11), that is payable for the life of a Participant with a survivor annuity payable for the life of his or her spouse that is equal to at least 50% but no more than 100% of the amount of the annuity payable during the joint lives of him or her and his or her spouse.  No survivor annuity shall be payable to his or her spouse under a Qualified Joint and Survivor Annuity if such spouse is not the same spouse to whom he was married on his or her Benefit Payment Date.

 

	
  

	
b)

	
“Qualified Pre-Retirement Survivor Annuity” means an annuity payable for the life of a Participant’s surviving spouse upon his or her death prior to his or her Benefit Payment Date.

 

	
  

	
c)

	
“Benefit Payment Date” means:

 

	
  

	
i)

	
the first day of the first period for which an amount is payable as an annuity, as described in Code Section 417(f)(2)(A)(i);

 

	
  

	
ii)

	
in the case of a benefit not payable in the form of an annuity, the starting date for the Qualified Joint and Survivor Annuity that is payable under the Plan at the same time and form as the benefit that is not payable as an annuity;

 

	
  

	
iii)

	
in the case of an amount payable under a retroactive annuity starting date, the retroactive annuity starting date; or

 

	
  

	
iv)

	
the date of the purchase of an irrevocable commitment from an insurer to pay the benefits due under the Plan.

 

 

 

 

iii

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