Document:

Exhibit 4.2

 

THE CORPORATEPLAN

FOR RETIREMENTSM

 

(PROFIT SHARING/401(K) PLAN)

 

A FIDELITY PROTOTYPE PLAN

 

Non-Standardized Adoption Agreement No. 001

For use With

Fidelity Basic Plan Document No. 02

 

	
  Plan Number: 23770

  	
   

  	
   

  	
   

  	
  Non-Std PS Plan

  
	
  The CORPORATEplan for RetirementSM

  	
   

  	
   

  	
   

  	
  10/09/2003

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  © 2003 FMR Corp.

  	
   

  	
   

  
	
   

  	
   

  	
  All rights reserved.

  	
   

  	
   

  

 

 

ADOPTION AGREEMENT

ARTICLE 1

NON-STANDARDIZED PROFIT SHARING/401(K) PLAN

 

1.01                        PLAN
INFORMATION

 

(a)                                  Name
of Plan:

 

This
is the Overstock.com 401(k) Plan (the “Plan”)

 

(b)                                  Type
of Plan:

 

(1)                                 o                                    401(k) Only

 

(2)                                 x                                  401(k) and
Profit Sharing

 

(3)                                 o                                    Profit Sharing
Only

 

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

 

 Address:

 

 Telephone
Number:

 

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

 

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

 

(e)                                  Three
Digit Plan Number:                                                 001

 

(f)                                    Limitation
Year (check one):

 

(1)                                 o                                    Calendar Year

 

(2)                                 x                                  Plan Year

 

(3)                                 o                                    Other:

 

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

 

(1)                                 o                                    New Plan
Effective Date:

 

(2)                                 x                                  Amendment
Effective Date:                                              2/1/2009

 

This
is (check one):

 

1

 

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

 

(B)                               x                                  a conversion to
a Basic Plan Document No. 02 Adoption Agreement.

 

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

 

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

 

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

 

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

 

1.02                        EMPLOYER

 

	
   

  	
  (a)

  	
   Employer Name:

  	
   

  	
  Overstock.com, Inc.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   Address:

  	
   

  	
  6350
  S. 3000 East

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Salt
  Lake City, UT 84121

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   Contact’s Name:

  	
   

  	
  Ms. Marci
  Osterberg

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   Telephone Number:

  	
   

  	
  (801)
  947-3123

  	
   

  

 

(1)                                 Employer’s Tax
Identification Number:                                    87-0634302

 

(2)                                 Employer’s
fiscal year end:                12/31

 

(3)                                 Date business
commenced:                                               05/07/1997

 

	
   

  	
  (b)

  	
   The term “Employer” includes the following Related
  Employer(s) (as defined in Subsection 2.01(rr)) (list each 

  	
   

  
	
   

  	
   

  	
   participating
  Related Employer and its Employer Tax Identification Number):

  	
   

  

 

	
  Employer:

  	
  Tax
  ID:

  
	
   

  	
   

  
	
  OTravel.com
  Inc.

  	
  20-3170830

  

 

2

 

1.03                        TRUSTEE

 

	
   

  	
  (a)

  	
  Trustee Name:

  	
  Fidelity
  Management Trust Company

  	
   

  
	
   

  	
   

  	
  Address:

  	
  82
  Devonshire Street

  	
   

  
	
   

  	
   

  	
   

  	
  Boston,
  MA 02109

  	
   

  

 

1.04                        COVERAGE

 

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

 

(a)                                  Age
Requirement (check one):

 

(1)                                 o                                    no age
requirement.

 

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

 

(b)                                  Eligibility
Service Requirement

 

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

 

(A)                               o                                    no Eligibility
Service requirement.

 

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

 

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

 

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

 

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

 

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

 

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

 

(i)                                    o                                    Deferral
Contributions.

 

(ii)                                o                                    Matching
Employer Contributions.

 

(B)                               The special
Eligibility Service requirement is:        (Fill
in (A), (B), or (C) from Subsection 1.04 (b) (1) above).

 

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

 

3

 

	
   

  	
   

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

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (1)

  	
  o

  	
  includes all Employees of the Employer.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (2)

  	
  x

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

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (A)

  	
  x

  	
  employees covered by a collective bargaining
  agreement.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (B)

  	
  o

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

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (C)

  	
  o

  	
  Leased Employees as defined in Subsection 2.01(cc).

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (D)

  	
  x

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

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (E)

  	
  o

  	
  other:

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

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

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (d)

  	
  The Entry Dates
  shall be
  (check one):

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (1)

  	
  o

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

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (2)

  	
  o

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

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (3)

  	
  x

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

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (4)

  	
  o

  	
  the first day of each month.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (5)

  	
  o

  	
  the first day of each Plan Year. (Do not select if there is an
  Eligibility Service requirement of more than six months in Subsection
  1.04(b) or if there is an age requirement of more than 20 1/2 in
  Subsection 1.04(a).)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (e)

  	
  o

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

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (1)

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

  

 

4

 

	
   

  	
   

  	
   

  	
  (A)

  	
  o

  	
  Deferral Contributions.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (B)

  	
  o

  	
  Matching Employer Contributions.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (2)

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

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (f)

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

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (1)

  	
  o

  	
  no exceptions.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (2)

  	
  o

  	
  Employees employed on the Effective Date in
  Subsection 1.01(g)(1) or (2) shall become Participants on that
  date.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (3)

  	
  x

  	
  Employees who meet the age and service
  requirement(s) of Subsections 1.04(a) and (b) on the Effective
  Date in Subsection 1.01(g)(1) or (2) shall become Participants on
  that date.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.05

  	
  COMPENSATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

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

  
	
   

  	
   

  	
   

  
	
   

  	
  (a)

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

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (1)

  	
  o

  	
  No exclusions.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (2)

  	
  o

  	
  Overtime Pay.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (3)

  	
  o

  	
  Bonuses.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (4)

  	
  o

  	
  Commissions.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (5)

  	
  o

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

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (6)

  	
  x

  	
  Severance Pay.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (b)

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

  

 

5

 

	
   

  	
   

  	
  (1)

  	
  o

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

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (2)

  	
  o

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

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

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

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (c)

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

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (1)

  	
  o

  	
  for the entire Plan Year.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (2)

  	
  x

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

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

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

  
	
   

  	
   

  	
   

  	
   

  
	
  1.06

  	
  TESTING RULES

  
	
   

  	
   

  
	
   

  	
  (a)

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

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (1)

  	
  x

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

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (2)

  	
  o

  	
  Prior Year Testing Method - The “ADP” or “ACP” of Highly
  Compensated Employees for the Plan Year shall be compared to the “ADP” or
  “ACP” of Non-Highly Compensated Employees for the immediately preceding Plan
  Year. (Do not
  choose if Option 1.10(a)(3), Safe Harbor Matching Employer Contributions, or
  Option 1.11(a)(3), Safe Harbor Formula, with respect to Nonelective Employer
  Contributions is checked.)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (3)

  	
  o

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

  

 

6

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

1.07                        DEFERRAL CONTRIBUTIONS

 

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

 

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

 

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

 

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

 

7

 

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

 

(i)                                    x                                  as of the beginning of each payroll period.

 

(ii)                                o                                    as of the first day of each month.

 

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

 

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

 

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

 

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

 

(i)                                    o                                    the first day of the next Plan Year.

 

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

 

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

 

the beginning of each
payroll period

 

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

 

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

 

Note:  A Participant’s
contributions under Subsection 1.07(a)(2) and/or (3) may not cause
the Participant to exceed the percentage limit specified by the Employer in
Subsection 1.07(a)(1) for the full Plan Year.  If the 

 

8

 

Administrator anticipates that the Plan will not
satisfy the “ADP” and/or “ACP” test for the year, the Administrator may reduce
the rate of Deferral Contributions of Participants who are Highly Compensated
Employees to an amount objectively determined by the Administrator to be
necessary to satisfy the “ADP” and/or “ACP” test.

 

1.08                        EMPLOYEE CONTRIBUTIONS
(AFTER-TAX CONTRIBUTIONS)

 

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

 

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

 

(2)                                 o                                     Frozen Employee
Contributions -
Participants may not currently make after-tax Employee Contributions to the
Plan, but the Employer does maintain frozen Employee Contributions Accounts.

 

1.09                        QUALIFIED NONELECTIVE
CONTRIBUTIONS

 

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

 

(1)                                 o                                    Qualified Nonelective Employer
Contributions shall be allocated to Participants as a percentage of the lowest
paid Participant’s “testing compensation”, as defined in Subsection 6.01(t),
for the Plan Year up to the lower of (A) the maximum amount contributable
under the Plan or (B) the amount necessary to satisfy the “ADP” or “ACP”
test.  If any Qualified Nonelective
Employer Contribution remains, allocation shall continue in the same manner to
the next lowest paid Participants until the Qualified Nonelective Employer
Contribution is exhausted.

 

1.10                        MATCHING EMPLOYER CONTRIBUTIONS  (Only if
Option 1.07(a), Deferral Contributions, is checked)

 

(a)                                  x                                  Basic
Matching Employer Contributions (check one):

 

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

 

Note:  Effective for
Plan Years beginning on or after January 1, 1999, if the Employer elected
Option 1.11 (a) (3), Safe Harbor Formula, with respect to Nonelective
Employer Contributions and meets the requirements for deemed satisfaction of
the “ADP” test in Section 6.10 for a Plan Year, the Plan will also be deemed
to satisfy the “ACP” test for such Plan Year with respect to Matching Employer
Contributions if Matching Employer Contributions hereunder meet the
requirements in Section 6.11.

 

9

 

(A)                               o                                    Single Percentage Match:            %

 

(B)                               o                                    Tiered Match:

 

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

 

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

 

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

 

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

 

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

 

(i)                                    o                                    Deferral Contributions in excess of           % of the Participant’s Compensation
for the period in question shall not be considered for non-discretionary
Matching Employer Contributions.

 

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

 

(ii)                                o                                    Matching Employer Contributions for each Participant
for each Plan Year shall be limited to $          .

 

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

 

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

 

(3)                                 o                                    Safe Harbor Matching
Employer Contributions - Effective only for Plan Years beginning on or after January 1,
1999, if the Employer elects one of the safe harbor formula Options provided in
the Safe Harbor Matching Employer Contribution Addendum to the Adoption
Agreement and provides written notice each Plan Year to all Active Participants
of their rights and obligations 

 

10

 

under the Plan, the Plan
shall be deemed to satisfy the “ADP” test and, under certain circumstances, the
“ACP” test.

 

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

 

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

 

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

 

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

 

(1)                                 o                                    each calendar month.

 

(2)                                 o                                    each Plan Year quarter.

 

(3)                                 o                                    each Plan Year.

 

(4)                                 x                                  each payroll period.

 

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

 

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

 

(1)                                 x                                  No requirements.

 

(2)                                 o                                    Is employed by the Employer or a Related
Employer on the last day of the Contribution Period.

 

11

 

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

 

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

 

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

 

(6)                                 o                                    Is not a Highly Compensated Employee for
the Plan Year.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

1.11                        NONELECTIVE EMPLOYER
CONTRIBUTIONS

 

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

 

12

 

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

 

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

 

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

 

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

 

(A)                               o                                    Each paid hour.

 

(B)                               o                                    Each payroll period.

 

(C)                               o                                    Each Plan Year.

 

(D)                               o                                    Other:

 

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

 

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

 

(1)                                 x                                  Non-Integrated
Allocation Formula
- In the ratio that each eligible Active Participant’s Compensation bears to
the total Compensation paid to all eligible Active Participants for the Plan
Year.

 

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

 

Note: An Employer that has elected the Safe Harbor formula
in Subsection 1.11(a)(3) above may not take Nonelective Employer
Contributions made to satisfy the safe harbor into account in applying the
integrated allocation formula described above.

 

13

 

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

 

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

 

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

 

“Permitted
disparity limit” means the percentage provided by the following table:

 

	
  The “Integration Level” is

  % of the Taxable Wage

  Base

  	
   

  	
  The “Permitted

  Disparity

  Limit” is

  
	
  20% or less

  	
   

  	
  5.7%

  
	
  More than 20%, but not more than 80%

  	
   

  	
  4.3%

  
	
  More than 80%, but less than 100%

  	
   

  	
  5.4%

  
	
  100%

  	
   

  	
  5.7%

  

 

Note:  An Employer
who maintains any other plan that provides for Social Security Integration
(permitted disparity) may not elect Option 1.11(b)(2).

 

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

 

(1)                                 o                                    No
requirements.

 

(2)                                 x                                  Is employed by
the Employer or a Related Employer on the last day of the Plan Year.

 

(3)                                 o                                    Earns at least
501 Hours of Service during the Plan Year.

 

(4)                                 o                                    Earns at least
1,000 Hours of Service during the Plan Year.

 

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

 

(6)                                 o                                    Is not a Highly
Compensated Employee for the Plan Year.

 

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

 

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

 

14

 

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

 

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

 

1.12                        EXCEPTIONS
TO CONTINUING ELIGIBILITY REQUIREMENTS

 

x                                  Death,
Disability, and Retirement Exception to Eligibility Requirements - Active
Participants who do not meet any last day or Hours of Service requirement under
Subsection 1.10(d) or 1.11(c) because they become disabled, as
defined in Section 1.14, retire, as provided in Subsection 1.13(a), (b),
or (c), or die shall nevertheless receive an allocation of Nonelective Employer
and/or Matching Employer Contributions. 
No Compensation shall be imputed to Active Participants who become
disabled for the period following their disability.

 

1.13                        RETIREMENT

 

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

 

(1)                                 x                                  age 65.

 

(2)                                 o                                    age      
(specify between 55 and 64).

 

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

 

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

 

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

 

(c)                                  x                                  A
Participant who becomes disabled, as defined in Section 1.14, is eligible
for disability retirement.

 

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

 

1.14                        DEFINITION
OF DISABLED

 

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

 

(a)                                  o                                    satisfies the
requirements for benefits under the Employer’s long-term disability plan.

 

(b)                                  x                                  satisfies the
requirements for Social Security disability benefits.

 

(c)                                  x                                  is determined
to be disabled by a physician approved by the Employer.

 

15

 

1.15                        VESTING

 

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

 

(a)                                  o                                    Years
of Vesting Service shall exclude:

 

(1)                                 o                                    for new plans,
service prior to the Effective Date as defined in Subsection 1.01(g)(1).

 

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

 

(b)                                  Vesting
Schedule(s)

 

Note:  The vesting
schedule selected below applies only to Nonelective Employer Contributions and
Matching Employer Contributions other than safe harbor contributions under
Option 1.11(a)(3) or Option 1.10(a)(3). 
Safe harbor contributions under Options 1.11(a)(3) and 1.10(a)(3) are
always 100% vested immediately.

 

	
  (1)  Nonelective Employer
  Contributions

  (check one):

  	
   

  	
  (2)  Matching Employer
  Contributions

  (check one):

  
	
   

  	
   

  	
   

  
	
  (A) o N/A - No
  Nonelective

  Employer Contributions

  	
   

  	
  (A)  o N/A - No
  Matching

  Employer Contributions

  
	
   

  	
   

  	
   

  
	
  (B)  o 100% Vesting
  immediately

  	
   

  	
  (B)  o 100%Vesting
  immediately

  
	
   

  	
   

  	
   

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

  	
   

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

  
	
   

  	
   

  	
   

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

  	
   

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

  
	
   

  	
   

  	
   

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

  	
   

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

  
	
   

  	
   

  	
   

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

  	
   

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

  
	
   

  	
   

  	
   

  
	
  (G)  x Other
  vesting

  (complete G1 below)

  	
   

  	
  (G) x Other
  vesting

  (complete G2 below)

  

 

16

 

	
   

  	
   

  	
  Applicable Vesting
  Schedule(s)

  	
   

  
	
  Years of

  Vesting Service

  	
   

  	
  C

  	
   

  	
  D

  	
   

  	
  E

  	
   

  	
  F

  	
   

  	
  G1

  	
   

  	
  G2

  	
   

  
	
  0

  	
   

  	
  0

  	
  %

  	
  0

  	
  %

  	
  0

  	
  %

  	
  0

  	
  %

  	
  0.00

  	
  %

  	
  0.00

  	
  %

  
	
  1

  	
   

  	
  0

  	
  %

  	
  0

  	
  %

  	
  0

  	
  %

  	
  0

  	
  %

  	
  20.00

  	
  %

  	
  20.00

  	
  %

  
	
  2

  	
   

  	
  0

  	
  %

  	
  0

  	
  %

  	
  20

  	
  %

  	
  0

  	
  %

  	
  40.00

  	
  %

  	
  40.00

  	
  %

  
	
  3

  	
   

  	
  100

  	
  %

  	
  0

  	
  %

  	
  40

  	
  %

  	
  20

  	
  %

  	
  60.00

  	
  %

  	
  60.00

  	
  %

  
	
  4

  	
   

  	
  100

  	
  %

  	
  0

  	
  %

  	
  60

  	
  %

  	
  40

  	
  %

  	
  80.00

  	
  %

  	
  80.00

  	
  %

  
	
  5

  	
   

  	
  100

  	
  %

  	
  100

  	
  %

  	
  80

  	
  %

  	
  60

  	
  %

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  
	
  6

  	
   

  	
  100

  	
  %

  	
  100

  	
  %

  	
  100

  	
  %

  	
  80

  	
  %

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  
	
  7 or more

  	
   

  	
  100

  	
  %

  	
  100

  	
  %

  	
  100

  	
  %

  	
  100

  	
  %

  	
  100

  	
  %

  	
  100

  	
  %

  

 

Note:  A schedule
elected under G1 or G2 above must be at least as favorable as one of the
schedules in C, D, E or F above.

 

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

 

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

 

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

 

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

 

(2)                                 x                                  applied to
reduce Employer contributions.

 

(3)                                 o                                    allocated among
the Accounts of eligible Participants in the manner provided in Section 1.11.  (Only if Option 1.11(a) or
(b) is checked.)

 

1.16                        PREDECESSOR
EMPLOYER SERVICE

 

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

 

D2
Discounts Direct

 

17

 

1.17                        PARTICIPANT
LOANS

 

Participant loans (check one):

 

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

 

(b)                                  x                                  are
not allowed.

 

1.18                        IN-SERVICE
WITHDRAWALS

 

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

 

(a)                                  x                                  Hardship
Withdrawals - Hardship withdrawals from a Participant’s
Deferral Contributions Account shall be allowed in accordance with Section 10.05,
subject to a $500 minimum amount.

 

(b)                                  x                                  Age
59 1/2 - Participants shall be entitled to receive a
distribution of all or any portion of the following Accounts upon attainment of
age 59 1/2 (check one):

 

(1)                                 o                                    Deferral
Contributions Account.

 

(2)                                 x                                  All vested account
balances.

 

(c)                                  Withdrawal
of Employee Contributions and Rollover Contributions -

 

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

 

(A)                               o                                    Employees may
not make withdrawals of Employee Contributions more frequently than:

 

                            .

 

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

 

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

 

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

 

(A)                               o                                    for at
least            (24 or more) months.

 

18

 

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

 

(B)                               o                                    after the
Participant has at least 60 months of participation.

 

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

 

(2)                                 o                                    another
in-service withdrawal option that is a “protected benefit” under Code Section 411(d)(6) or
an in-service hardship withdrawal option not otherwise described in Section 1.18(a).  Please complete the Protected In-Service
Withdrawals Addendum to the Adoption Agreement identifying the in-service
withdrawal option(s).

 

1.19                        FORM OF
DISTRIBUTIONS

 

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

 

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

 

(b)                                  x                                  Installment
Payments - Participants may elect distribution under a
systematic withdrawal plan (installments).

 

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

 

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

 

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

 

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

 

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

 

(A)                               o                                    A lump sum
payment.

 

19

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

1.20                        TIMING
OF DISTRIBUTIONS

 

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

 

20

 

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

 

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

 

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

 

1.21                        TOP
HEAVY STATUS

 

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

 

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

 

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

 

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

 

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

 

(1)                                 o                                    Interest
rate:      % per annum.

 

(2)                                 o                                    Mortality
table:                      .

 

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

 

(c)                                  If
the Plan is or is treated as a “top-heavy plan” for a Plan Year, each non-key
Employee shall receive an Employer Contribution of at least 3.0 (3, 4,
5, or 7 1/2)% of Compensation for the Plan Year in accordance with Section 15.03.  The minimum Employer Contribution provided in
this Subsection 1.21(c) shall be made under this Plan only if the
Participant is not entitled to such contribution under another qualified plan
of the Employer, unless the Employer elects otherwise below:

 

(1)                                 o                                    The minimum
Employer Contribution shall be paid under this Plan in any event.

 

21

 

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

 

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

 

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

 

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

 

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

 

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

 

(3)                                 x                                  Graded vesting:

 

	
  Years of Vesting Service

  	
   

  	
  Vesting

  Percentage

  	
   

  	
  Must be

  at Least

  	
   

  
	
  0

  	
   

  	
  0.00

  	
  %

  	
  0

  	
  %

  
	
  1

  	
   

  	
  20.00

  	
  %

  	
  0

  	
  %

  
	
  2

  	
   

  	
  40.00

  	
  %

  	
  20

  	
  %

  
	
  3

  	
   

  	
  60.00

  	
  %

  	
  40

  	
  %

  
	
  4

  	
   

  	
  80.00

  	
  %

  	
  60

  	
  %

  
	
  5

  	
   

  	
  100.00

  	
  %

  	
  80

  	
  %

  
	
  6 or more

  	
   

  	
  100.00

  	
  %

  	
  100

  	
  %

  

 

 

Note:  If the Plan
provides for Nonelective Employer Contributions and the schedule elected in
Subsection 1.15(b)(1) is more favorable in all cases than the schedule
elected in Subsection 1.21(d) above, then the schedule in Subsection
1.15(b)(1) shall continue to apply even in Plan Years in which the Plan is
a “top-heavy plan”.

 

1.22                        CORRECTION
TO MEET 415 REQUIREMENTS UNDER MULTIPLE DEFINED CONTRIBUTION PLANS

 

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

 

22

 

(a)                                  o                                    Other
Order for Limiting Annual Additions

 

1.23                        INVESTMENT
DIRECTION

 

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

 

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

 

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

 

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

 

(1)                                 o                                    Nonelective
Employer Contributions

 

(2)                                 o                                    Matching
Employer Contributions

 

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

 

1.24                        RELIANCE
ON OPINION LETTER

 

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

 

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

 

1.25                        PROTOTYPE
INFORMATION:

 

	
  Name
  of Prototype Sponsor:

  	
   

  	
  Fidelity Management & Research Company

  
	
  Address
  of Prototype Sponsor:

  	
   

  	
  82
  Devonshire Street

  
	
   

  	
   

  	
  Boston, MA 02109

  

 

Questions
regarding this prototype document may be directed to the following telephone
number:

1-800-343-9184.

 

23

 

EXECUTION PAGE

(Fidelity’s Copy)

 

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

 

day
of               ,                 .

 

	
   

  	
  Employer:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Employer:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  

 

 

Accepted
by:

 

Fidelity
Management Trust Company, as Trustee

 

 

	
  By:

  	
   

  	
   

  	
  Date:

  	
   

  
	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  

 

24

 

EXECUTION PAGE

(Employer’s Copy)

 

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

 

day
of                    ,                 .

 

 

	
   

  	
  Employer:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Employer:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  

 

 

Accepted
by:

 

Fidelity
Management Trust Company, as Trustee

 

 

	
  By:

  	
   

  	
   

  	
  Date:

  	
   

  
	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  

 

25

 

AMENDMENT EXECUTION PAGE

 

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

 

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

 

	
  Section Amended

  	
   

  	
  Page

  	
   

  	
  Effective Date

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

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

 

,                 .

 

	
  Employer:

  	
   

  	
   

  	
  Employer:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
  Title:

  	
   

  

 

 

Accepted
by:

 

Fidelity
Management Trust Company, as Trustee

 

	
  By:

  	
   

  	
   

  	
  Date:

  	
   

  
	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  

 

26

 

ADDENDUM

 

Re:  SPECIAL EFFECTIVE DATES

for

 

	
  Plan
  Name:

  	
   

  	
  Overstock.com
  401(k) Plan

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (a)

  	
   

  	
  o

  	
   

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

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (b)

  	
   

  	
  o

  	
   

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

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (1)

  	
   

  	
  Name
  of merged plan:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Effective
  date:

  	
   

  	
   

  
								

 

27

 

	
   

  	
   

  	
  (2)

  	
   

  	
  Name
  of merged plan:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Effective
  date:

  	
   

  	
   

  
								

 

	
   

  	
   

  	
  (3)

  	
   

  	
  Name
  of merged plan:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Effective
  date:

  	
   

  	
   

  
								

 

	
   

  	
   

  	
  (4)

  	
   

  	
  Name
  of merged plan:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Effective
  date:

  	
   

  	
   

  
								

 

	
   

  	
   

  	
  (5)

  	
   

  	
  Name
  of merged plan:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Effective
  date:

  	
   

  	
   

  
								

 

28

 

ADDENDUM

 

Re:  SAFE HARBOR MATCHING
EMPLOYER CONTRIBUTION

for

 

Plan
Name:                                 Overstock.com
401(k) Plan

 

(a)                                  Safe
Harbor Matching Employer Contribution Formula

 

Note:  Matching
Employer Contributions made under this Option must be 100% vested when made and
may only be distributed because of death, disability, separation from service,
age 59 1/2, or termination of the Plan without the establishment of a successor
plan.  In addition, each Plan Year, the
Employer must provide written notice to all Active Participants of their rights
and obligations under the Plan.

 

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

 

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

 

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

 

(2)                                 o                                    Other Enhanced
Match:

 

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

 

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

 

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

 

Note:  To satisfy
the safe harbor contribution requirement for the “ADP” test, the percentages
specified above for Matching Employer Contributions may not increase as the
percentage of Compensation contributed increases, and the aggregate amount of
Matching Employer Contributions at such rates must at least equal the aggregate
amount of Matching Employer Contributions which would be made under the
percentages described in (a)(1) of this Addendum.

 

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

 

29

 

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

 

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

 

30

 

ADDENDUM

 

Re:  SAFE HARBOR NONELECTIVE
EMPLOYER CONTRIBUTION

for

 

Plan
Name:                                 Overstock.com
401(k) Plan

 

(a)                                  Safe
Harbor Nonelective Employer Contribution Election

 

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

 

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

 

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

 

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

 

Note:  Safe harbor
Nonelective Employer Contributions must be 100% vested when made and may only
be distributed because of death, disability, separation from service, age 59
1/2, or termination of the Plan without the establishment of a successor
plan.  In addition, each Plan Year, the
Employer must provide written notice to all Active Participants of their rights
and obligations under the Plan.

 

	
  (b)

  	
   

  	
    o

  	
   

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

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (c)

  	
   

  	
    o

  	
   

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

  

 

31

 

ADDENDUM

 

Re:  PROTECTED IN-SERVICE
WITHDRAWALS

for

 

Plan
Name:                                 Overstock.com
401(k) Plan

 

(a)                                  Restrictions
on In-Service Withdrawals of Amounts Held for Specified Period - The
following restrictions apply to in-service withdrawals made in accordance with
Subsection 1.18(d)(1)(A) (cannot include any
mandatory suspension of contributions restriction):

 

 

(b)                                  Restrictions
on In-Service Withdrawals Because of Participation in Plan for 60 or More
Months - The following restrictions apply to in-service
withdrawals made in accordance with Subsection 1.18(d)(1)(B) (cannot include any mandatory suspension of
contributions restriction):

 

 

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

 

 

32

 

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

 

 

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

 

 

33

 

ADDENDUM

 

Re:  FORMS OF PAYMENT

for

 

Plan
Name:                                 Overstock.com
401(k) Plan

 

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

 

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

 

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

 

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

 

(1)                                 o                                    Installment
Payments.

 

(2)                                 o                                    Annuities.

 

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

 

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

 

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

 

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

 

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

 

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

 

34

 

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

 

35

 

ADDENDUM

 

Re:  VESTING SCHEDULE

for

 

Plan
Name:                                 Overstock.com
401(k) Plan

 

(a)                                  More
Favorable Vesting Schedule

 

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

 

 

 

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

 

 

 

(b)                                  o                                    Additional
Vesting Schedule

 

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

 

 

 

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

 

 

 

36

 

ADDENDUM

 

Re:  POSTPONED DISTRIBUTIONS

for

 

Plan
Name:                                 Overstock.com
401(k) Plan

 

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

 

 

 

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

 

37

 

ADDENDUM

 

Re:  415 CORRECTION

for

 

Plan
Name:                                 Overstock.com
401(k) Plan

 

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

 

38

 

ADDENDUM

 

Re:  416 CONTRIBUTION

for

 

Plan
Name:                                 Overstock.com
401(k) Plan

 

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

 

39

 

THE CORPORATEPLAN FOR RETIREMENTSM 
(PROFIT SHARING/401(K) PLAN)

 

ADDENDUM TO ADOPTION AGREEMENT

 

FIDELITY BASIC PLAN DOCUMENT No. 02

 

RE: ECONOMIC GROWTH AND TAX RELIEF RECONCILIATION ACT OF 2001 (“EGTRRA”)
AMENDMENTS for

 

Plan Name:      Overstock.com 401(k) Plan

 

PREAMBLE

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

1

 

than catch-up contributions will apply to Matching
Employer Contributions on catch-up contributions.

 

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

 

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

 

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

 

o    100% Vesting immediately

o    3-Year Cliff (see C below)

o    6-Year Graded (see E below)

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

 

Applicable Vesting Schedule

 

	
  Years of

  Vesting Service

  	
   

  	
  C

  	
   

  	
  E

  	
   

  	
  G3

  	
   

  
	
  0

  	
   

  	
  0

  	
  %

  	
  0

  	
  %

  	
       

  	
  %

  
	
  1

  	
   

  	
  0

  	
  %

  	
  0

  	
  %

  	
       

  	
  %

  
	
  2

  	
   

  	
  0

  	
  %

  	
  20

  	
  %

  	
       

  	
  %

  
	
  3

  	
   

  	
  100

  	
  %

  	
  40

  	
  %

  	
       

  	
  %

  
	
  4

  	
   

  	
  100

  	
  %

  	
  60

  	
  %

  	
       

  	
  %

  
	
  5

  	
   

  	
  100

  	
  %

  	
  80

  	
  %

  	
       

  	
  %

  
	
  6 or more

  	
   

  	
  100

  	
  %

  	
  100

  	
  %

  	
  100

  	
  %

  

 

(2)   Delayed Effective Date for Plans
Subject to Collective Bargaining.  If the plan is maintained pursuant to one or
more collective bargaining agreements ratified by June 7, 2001, the
effective date for faster vesting of Matching Employer Contributions for
Participants covered by such a collective bargaining agreement can be delayed
by checking the box below and inserting the effective date, which is the first
day of the first Plan Year beginning on or after the earlier of (i) January 1,
2006, or (ii) the later of the date on which the last of the collective
bargaining agreements described above terminates (without regard to any
extension on or after June 7, 2001), or January 1, 2002.

 

o    The vesting schedule elected
by the Employer in (d)(1) above shall apply to those Participants covered
by a collective bargaining agreement(s) ratified by June 7, 2001, who
have at least one Hour of Service on or
after              .  Unless the Employer selects the box in (d)(3) below,
the vesting schedule selected in (d)(1) above shall apply to 

 

2

 

the
entire accrued benefit derived from Matching Employer Contributions of such
Participants with an Hour of Service in a Plan Year beginning on or after the
date specified herein.  For all other
Participants, the vesting schedule shall apply as of the date and in the manner
described in (d)(1) and, where applicable, (d)(3).

 

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

 

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

 

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

 

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

 

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

 

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

 

3

 

Amendment Execution

 

(Fidelity’s Copy)

 

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

 

 

	
  Employer:

  	
   

  	
   

  	
  Employer:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
  Title:

  	
   

  

 

 

Accepted
by:   Fidelity Management
Trust Company, as Trustee

 

	
  By:

  	
   

  	
   

  	
  Date:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  	
   

  

 

4

 

Amendment Execution

(Employer’s Copy)

 

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

 

 

	
  Employer:

  	
   

  	
   

  	
  Employer:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
  Title:

  	
   

  

 

 

Accepted
by:  Fidelity Management Trust
Company, as Trustee

 

	
  By:

  	
   

  	
   

  	
  Date:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  	
   

  

 

5

 

The CORPORATEplan for RetirementSM

ADDENDUM TO ADOPTION AGREEMENT

FIDELITY BASIC PLAN DOCUMENT No. 02

 

RE: ECONOMIC GROWTH AND TAX RELIEF RECONCILIATION ACT OF 2001 (“EGTRRA”)
AUTOMATIC ROLLOVER AMENDMENTS for

 

Plan
Name:           Overstock.com
401(k) Plan

Fidelity
5-digit Plan Number:  23770

 

PREAMBLE

 

Adoption
and Effective Date of Amendment.  This amendment of the Plan is adopted to
reflect the automatic rollover rules enacted as part of the Economic
Growth and Tax Relief Reconciliation Act of 2001 (“EGTRRA”). This amendment is
intended as good faith compliance with the requirements of EGTRRA and is to be
construed in accordance with EGTRRA and guidance issued thereunder.  This amendment shall be effective March 28,
2005, unless a later effective date is elected below.

 

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

 

Cash Out of Small Accounts. If the
Employer elects to apply this provision, then $1,000 is not substituted for
$5,000 each time it appears in Section 13.02.

 

o            This election shall apply
effective March 28, 2005, unless a later effective date is specified
herein                                                  .

 

Note:  Mandatory
distributions in excess of $1,000 are subject to the automatic rollover
provisions of Section 13.02.

 

1

 

 

The CORPORATEplan for RetirementSM

 

ADDENDUM TO ADOPTION AGREEMENT

 

FIDELITY BASIC PLAN DOCUMENT No. 02

 

RE: Roth Deferral Contributions

 

Plan
Name:           Overstock.com
401(k) Plan

Fidelity
5-digit Plan Number:  23770

 

PREAMBLE

 

Adoption
and Effective Date of Amendment.  This amendment of the Plan is adopted to
reflect the final regulations under Code sections 401(k) and 401(m) and
under Code section 402A as added by section 617 of the Economic Growth and Tax
Relief Reconciliation Act of 2001. This amendment is intended as good faith
compliance with the requirements of Code sections 401(k), 401(m) and 402A
and is to be construed in accordance with guidance issued thereunder.  This amendment shall be effective as provided
below.

 

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

 

Roth
Deferral Contributions

 

(a)   o    Roth Deferral Contributions.  A Participant shall be permitted to irrevocably
designate a portion or all of the Participant’s Deferral Contributions the
Participant is otherwise eligible to make under the Plan as Roth Deferral
Contributions, pursuant to Section 5.03(c).

 

(1)           o  Roth Deferral
Contributions are permitted effective
                                  
(must be January 1, 2006 or later).

 

(2)           o  Roth Deferral
Contributions will no longer be permitted on or after
                                          .

 

(b)   o    Roth Direct Rollovers.  An Employee otherwise eligible to make a
rollover contribution under the Plan shall be permitted to make Roth direct
rollover contributions to the Plan, pursuant to Section 5.03(c).

 

(1)           o  
Roth direct rollover contributions are permitted
effective                                            (must
be January 1, 2006 or later).

 

1

 

(2)           o  Roth direct
rollover contributions will no longer be permitted on or after
                                          .

 

Amendment Execution

 

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

 

 

	
  Employer:

  	
   

  	
   

  	
  Employer:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
  Title:

  	
   

  

 

 

Accepted
by:  Fidelity Management Trust
Company, as Trustee

 

	
  By:

  	
   

  	
   

  	
  Date:

  	
   

  

 

2

 

The CORPORATEplan for RetirementSM

 

ADDENDUM TO ADOPTION AGREEMENT

 

FIDELITY BASIC PLAN DOCUMENT No. 02

 

RE: Automatic Enrollment Contributions

 

Plan
Name:           Overstock.com
401(k) Plan

 

Fidelity
5-digit Plan Number:  23770

 

PREAMBLE

 

Adoption
and Effective Date of Amendment.  This amendment of the Plan is adopted to
reflect certain provisions of the Pension Protection Act of 2006.  This amendment is intended as good faith
compliance with the PPA and such regulations and is to be construed in
accordance with applicable guidance. 
This amendment shall be effective with respect to The CORPORATEplan for  RetirementSM on March 1, 2007, and with respect to the
Employer’s Plan as provided below.

 

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

 

Automatic
Enrollment Contributions

 

(a)           o            Automatic Enrollment Contributions.  Beginning on the effective date of this
Subsection (a) specified below (the “Automatic Enrollment Effective Date”)
and subject to the remainder of this Subsection (a), unless an Eligible
Employee affirmatively elects otherwise, his Compensation will be reduced by
          % (the “Automatic
Enrollment Rate”), such percentage to be increased in accordance with
Subsection (b) (if applicable), for each payroll period in which he is an
Active Participant, beginning as indicated in (1) below, and the Employer
will make a  pre-tax Deferral
Contribution in such amount on the Participant’s behalf in accordance with the
provisions of Section 5.03 of the Basic Plan Document (an “Automatic
Enrollment Contribution”).

 

Automatic
Enrollment Effective Date:

 

(1)           With respect to
an affected Participant, Automatic Enrollment Contributions will begin as soon
as administratively feasible on or after (check one):

 

(A)          o            The Participant’s Entry
Date.

 

(B)          o            (minimum of 30) days
following the Participant’s date of hire, but no sooner than the Participant’s
Entry Date.

 

Within
a reasonable period ending no later than the day prior to the date Compensation
subject to the reduction would otherwise become available to the Participant,
an Eligible Employee may make an affirmative election not to have Automatic
Enrollment Contributions made on his behalf. 
If an Eligible Employee makes no such affirmative election, his
Compensation shall be reduced and Automatic Enrollment Contributions will be
made on his behalf in accordance with the provisions of this
Subsection (a), and Subsection (b), if applicable, until such Active
Participant elects to change or revoke such Deferral Contributions as provided
in Subsection 1.07(a)(1).  Automatic
Enrollment 

 

1

 

Contributions
shall be made only on behalf of Active Participants who are first hired by the
Employer on or after the Automatic Enrollment Effective Date and do not have a
Reemployment Commencement Date, unless otherwise provided below.

 

(2)           o            Additionally, subject to the
Note below, unless such affected Participant affirmatively elects otherwise
within the reasonable period established by the Plan Administrator, Automatic
Enrollment Contributions will be made with respect to the Employees described
below. (check all that apply):

 

(A)          o            Inclusion of Previously
Hired Employees.  On the later of the
date specified in Subsection (a)(1) with regard to such Eligible Employee
or as soon as administratively feasible on or after the 30th day following the
Notification Date specified in (iii) below, Automatic Enrollment
Contributions will begin for the following Eligible Employees who were hired
before the Automatic Enrollment Effective Date and have not had a Reemployment
Commencement Date. (Check (i) or (ii), complete (iii), and complete (iv),
if applicable.)

 

(i)            o            Unless otherwise elected in (iv) below,
all such Employees who have never had a Deferral Contribution election in
place.

 

(ii)           o            Unless otherwise elected in (iv) below,
all such Employees who have never had a Deferral Contribution election in place
and were hired by the Employer before the Automatic Enrollment Effective Date,
but after the following date: .

 

(iii)         Notification Date:
                          .  (Date must be on or after the Automatic
Enrollment Effective Date.)

 

(iv)          o            In addition to the group of
Employees elected in (i) or (ii) above, any Employee described in (i) or
(ii) above, as applicable, even if he has had a Deferral Contribution
election in place previously, provided he is not suspended from making Deferral
Contributions pursuant to the Plan and has a deferral rate of zero on the
Notification Date.

 

(B)          o            Inclusion of Rehired
Employees.  Unless otherwise stated
herein, each Eligible Employee having a Reemployment Commencement Date on the
date indicated in Subsection (a)(1) above. 
If Subsection (a)(2)(A)(ii) is selected, only such Employees with a
Reemployment Commencement on or after the date specified in Subsection
(a)(2)(A)(ii) will be automatically enrolled. 
If Subsection (a)(2)(A) is not selected, only such Employees with a
Reemployment Commencement on or after the Automatic Enrollment Effective Date
will be automatically enrolled.  If
Subsection (a)(1)(B) has been elected above, for purposes of Subsection
(a)(1) only, such Employee’s Reemployment Commencement Date will be
treated as his date of hire.

 

Note:  Once a
Participant who has received notice of the automatic enrollment provisions
applicable to him makes an affirmative election following the effective date of
the Employer’s election of this Subsection (a) not to have Automatic
Enrollment Contributions made on his behalf, he shall not be subject to a
further automatic enrollment pursuant to this Subsection (a).

 

(b)           o            Automatic Deferral
Increase (Choose only if Automatic Enrollment Contributions are elected in
Subsection (a) above) - Unless an Eligible
Employee affirmatively elects otherwise after receiving 

 

2

 

appropriate notice, Deferral Contributions for each Active Participant
having Automatic Enrollment Contributions made on his behalf shall be increased
annually by the whole percentage of Compensation stated in (1) below until
the deferral percentage stated in Section 1.07(a)(1) is reached (except
that the increase will be limited to only the percentage needed to reach the
limit stated in Section 1.07(a)(1), if applying the percentage in (1) would
exceed the limit stated in Section 1.07(a)(1)), unless the Employer has
elected a lower percentage limit in Subsection (b)(2) below.

 

(1)           Increase by
          % (not to exceed 10%) of Compensation.  Such increased Deferral Contributions shall
be pre-tax Deferral Contributions regardless of any election made by the
Participant to have any portion of his Deferral Contributions treated as a Roth
401(k) Contribution.

 

(2)           o            Limited to
          % of Compensation (not to exceed the percentage indicated in Subsection 1.07(a)(1).

 

(3)           Notwithstanding
the above, the automatic deferral increase shall not apply to a Participant
within the first six months following the date described in Subsection (a)(1) hereof.

 

(c)           o            Change to Addendum
Provisions.  The Employer
has amended the provisions of Subsection (a) and/or (b) to be as
indicated above on the following effective date:
                                .

 

Amendment Execution

 

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

 

 

	
  Employer:

  	
   

  	
   

  	
  Employer:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
  Title:

  	
   

  

 

 

Accepted
by:  Fidelity Management Trust
Company, as Trustee

 

	
  By:

  	
   

  	
   

  	
  Date:

  	
   

  

 

3Exhibit 10.67

 

FIRST AMENDMENT TO REVOLVING LOAN PROMISSORY
NOTE

 

This
First Amendment to Revolving Loan Promissory Note (this “Amendment”) is entered
into as of June 30, 2009, by and between AMERICAN
AGCREDIT, PCA, an agricultural credit association chartered pursuant
to the Farm Credit Act of 1971 (“Lender”), and ML MACADAMIA ORCHARDS, L.P., a Delaware limited partnership,
and ML RESOURCES, INC., a Hawaii
corporation (together, “Borrower”).

 

R  E
C  I  T  A  L  S:

 

A.                                   Borrower and Lender entered in to a Third
Amended and Restated Credit Loan Agreement dated June 30, 2009 (the “Credit
Agreement”) whereby Lender agreed, among other things, to modify the terms of
repayment and extend the maturity date of that certain Revolving Loan
Promissory Note dated July 8, 2008 in the amount of Six Million Dollars
($6,000,000.00) made by Borrower in favor of Lender (the “Revolving Note”).

 

B.                                    The
parties are entering into this Amendment to evidence the extension of the
maturity of the Revolving Note.

 

NOW, THEREFORE,
taking the forgoing Recitals into account, and for other good and valuable
consideration, the receipt of which are hereby acknowledged, the parties agree
as follows:

 

A  G
R  E  E  M  E  N  T

 

1.                                      Amendment.  The
maturity date of the Revolving Note, as stated in the third paragraph thereof,
is hereby extended from May 1, 2009 to June 29, 2010.

 

2.                                      No Other Amendments. 
Except as modified expressly or by necessary implication herein or in
the Credit Agreement, all of the terms and conditions of the Revolving Note
shall remain unchanged and in full force and effect.

 

3.                                      Security Remains. 
All security and collateral now securing the indebtedness and
obligations evidenced by the Revolving Note remain in effect and secure the
Revolving Note and indebtedness thereunder as amended by these presents
(including, without limitation, the Mortgage and Security Agreements described
in the Credit Agreement).

 

4.                                      Applicable Law.  This Amendment
has been executed, delivered and accepted at Santa Rosa, California, and shall
be governed by, and interpreted and construed in accordance with, the laws of
the State of California.

 

1

 

IN
WITNESS WHEREOF,
this First Amendment to Revolving Loan Promissory Note has been duly executed
as of the date first written above.

 

	
   

  	
  ML
  MACADAMIA ORCHARDS, L.P., a Delaware limited partnership

  
	
   

  	
   

  
	
   

  	
  By:

  	
  ML RESOURCES, INC., a
  Hawaii corporation, its managing general partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Dennis J. Simonis

  
	
   

  	
   

  	
  Name:

  	
  Dennis J. Simonis

  
	
   

  	
   

  	
  Title:

  	
  CEO and President

  
	
   

  	
   

  
	
   

  	
  ML
  RESOURCES, INC.,
  a Hawaii corporation, as Borrower

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Dennis J. Simonis

  
	
   

  	
  Name:

  	
  Dennis J. Simonis

  
	
   

  	
  Title:

  	
  CEO and President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  AMERICAN
  AGCREDIT, PCA

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Sean O’Day

  
	
   

  	
  Name:

  	
  Sean O’Day

  
	
   

  	
  Title:

  	
  SeniorVice President

  

 

2

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