Document:

Exhibit 10.1

CORNERSTONE COMMUNITY BANK EMPLOYEE STOCK OWNERSHIP PLAN

TABLE OF CONTENTS

ARTICLE I
 DEFINITIONS

ARTICLE II
 ADMINISTRATION

	
  
2.1
  	
  
POWERS AND   RESPONSIBILITIES OF THE EMPLOYER
  	
  
12
  
	
  
 
  	
  
 
  	
   
 
	
  
2.2
  	
  
DESIGNATION   OF ADMINISTRATIVE AUTHORITY
  	
  
13
  
	
  
 
  	
  
 
  	
   
 
	
  
2.3
  	
  
ALLOCATION   AND DELEGATION OF RESPONSIBILITIES
  	
  
13
  
	
   
  	
  
 
  	
   
 
	
  
2.4
  	
  
POWERS AND   DUTIES OF THE ADMINISTRATOR
  	
  
13
  
	
  
 
  	
  
 
  	
   
 
	
  
2.5
  	
  
RECORDS AND   REPORTS
  	
  
14
  
	
  
 
  	
  
 
  	
   
 
	
  
2.6
  	
  
APPOINTMENT   OF ADVISERS
  	
  
15
  
	
  
 
  	
  
 
  	
   
 
	
  
2.7
  	
  
PAYMENT OF   EXPENSES
  	
  
15
  
	
   
  	
  
 
  	
   
 
	
  
2.8
  	
  
CLAIMS   PROCEDURE
  	
  
15
  
	
  
 
  	
  
 
  	
   
 
	
  
2.9
  	
  
CLAIMS REVIEW   PROCEDURE
  	
  
15
  
	
  
 
  	
  
 
  	
   
 
	
  
 
  	
  
ARTICLE III
   ELIGIBILITY
  	
   
 
	
  
 
  	
   
 	
   
 
	
  
3.1
  	
  
CONDITIONS   OF ELIGIBILITY
  	
  
16
  
	
   
  	
  
 
  	
   
 
	
  
3.2
  	
  
EFFECTIVE   DATE OF PARTICIPATION
  	
  
16
  
	
  
 
  	
  
 
  	
   
 
	
  
3.3
  	
  
DETERMINATION   OF ELIGIBILITY
  	
  
17
  
	
  
 
  	
  
 
  	
   
 
	
  
3.4
  	
  
TERMINATION   OF ELIGIBILITY
  	
  
17
  
	
  
 
  	
  
 
  	
   
 
	
  
3.5
  	
  
OMISSION OF   ELIGIBLE EMPLOYEE
  	
  
17
  
	
   
  	
  
 
  	
   
 
	
  
3.6
  	
  
INCLUSION OF   INELIGIBLE EMPLOYEE
  	
  
17
  
	
  
 
  	
  
 
  	
   
 
	
  
3.7
  	
  
REHIRED   EMPLOYEES AND BREAKS IN SERVICE
  	
  
17
  
	
  
 
  	
  
 
  	
   
 
	
  
3.8
  	
  
ELECTION NOT   TO PARTICIPATE
  	
  
18
  
	
  
 
  	
  
 
  	
   
 
	
  
 
  	
  
ARTICLE IV
   CONTRIBUTION AND ALLOCATION
  	
   
 
	
   
  	
  
 
  	
   
 
	
  
4.1
  	
  
FORMULA FOR   DETERMINING EMPLOYER CONTRIBUTION
  	
  
18
  
	
  
 
  	
  
 
  	
   
 
	
  
4.2
  	
  
TIME OF   PAYMENT OF EMPLOYER CONTRIBUTION
  	
  
19
  
	
  
 
  	
  
 
  	
   
 
	
  
4.3
  	
  
ALLOCATION   OF CONTRIBUTION, FORFEITURES AND EARNINGS
  	
  
19
  
	
  
 
  	
  
 
  	
   
 
	
  
4.4
  	
  
MAXIMUM   ANNUAL ADDITIONS
  	
  
22
  
	
   
  	
  
 
  	
   
 
	
  
4.5
  	
  
ADJUSTMENT   FOR EXCESSIVE ANNUAL ADDITIONS
  	
  
24
  
	
  
 
  	
  
 
  	
   
 
	
  
4.6
  	
  
PLAN-TO-PLAN   TRANSFERS FROM QUALIFIED PLANS
  	
  
25
  
	
  
 
  	
  
 
  	
   
 
	
  
4.7
  	
  
ROLLOVERS   FROM OTHER PLANS
  	
  
26
  
	
  
 
  	
  
 
  	
   
 
	
  
4.8
  	
  
DIRECTED   INVESTMENT ACCOUNT
  	
  
27
  
	
   
  	
  
 
  	
   
 
	
  
4.9
  	
  
QUALIFIED   MILITARY SERVICE
  	
  
28
  

	
  
 
  	
  
ARTICLE V
   FUNDING AND INVESTMENT POLICY
  	
   
 
	
  
 
  	
  
 
  	
   
 
	
  
5.1
  	
  
INVESTMENT   POLICY
  	
  
28
  
	
  
 
  	
  
 
  	
   
 
	
  
5.2
  	
  
TRANSACTIONS   INVOLVING COMPANY STOCK
  	
  
29
  
	
   
  	
  
 
  	
   
 
	
  
 
  	
  
ARTICLE VI
   VALUATIONS
  	
   
 
	
  
 
  	
  
 
  	
   
 
	
  
6.1
  	
  
VALUATION OF   THE TRUST FUND
  	
  
30
  
	
  
 
  	
  
 
  	
   
 
	
  
6.2
  	
  
METHOD OF   VALUATION
  	
  
30
  
	
  
 
  	
  
 
  	
   
 
	
  
 
  	
  
ARTICLE VII
   DETERMINATION AND DISTRIBUTION OF BENEFITS
  	
   
 
	
   
  	
  
 
  	
   
 
	
  
7.1
  	
  
DETERMINATION   OF BENEFITS UPON RETIREMENT
  	
  
30
  
	
  
 
  	
  
 
  	
   
 
	
  
7.2
  	
  
DETERMINATION   OF BENEFITS UPON DEATH
  	
  
31
  
	
  
 
  	
  
 
  	
   
 
	
  
7.3
  	
  
DETERMINATION   OF BENEFITS IN EVENT OF DISABILITY
  	
  
32
  
	
  
 
  	
  
 
  	
   
 
	
  
7.4
  	
  
DETERMINATION   OF BENEFITS UPON TERMINATION
  	
  
32
  
	
   
  	
  
 
  	
   
 
	
  
7.5
  	
  
DISTRIBUTION   OF BENEFITS
  	
  
34
  
	
  
 
  	
  
 
  	
   
 
	
  
7.6
  	
  
HOW PLAN   BENEFIT WILL BE DISTRIBUTED
  	
  
39
  
	
  
 
  	
  
 
  	
   
 
	
  
7.7
  	
  
DISTRIBUTION   FOR MINOR OR INCOMPETENT BENEFICIARY
  	
  
40
  
	
  
 
  	
  
 
  	
   
 
	
  
7.8
  	
  
LOCATION OF   PARTICIPANT OR BENEFICIARY UNKNOWN
  	
  
40
  
	
   
  	
  
 
  	
   
 
	
  
7.9
  	
  
PRE-RETIREMENT   DISTRIBUTION
  	
  
40
  
	
  
 
  	
  
 
  	
   
 
	
  
7.10
  	
  
QUALIFIED   DOMESTIC RELATIONS ORDER DISTRIBUTION
  	
  
41
  
	
  
 
  	
  
 
  	
   
 
	
  
 
  	
  
ARTICLE VIII
   TRUSTEE
  	
   
 
	
  
 
  	
  
 
  	
   
 
	
  
8.1
  	
  
BASIC   RESPONSIBILITIES OF THE TRUSTEE
  	
  
41
  
	
   
  	
  
 
  	
   
 
	
  
8.2
  	
  
INVESTMENT   POWERS AND DUTIES OF THE TRUSTEE
  	
  
42
  
	
  
 
  	
  
 
  	
   
 
	
  
8.3
  	
  
OTHER POWERS   OF THE TRUSTEE
  	
  
42
  
	
  
 
  	
  
 
  	
   
 
	
  
8.4
  	
  
VOTING   COMPANY STOCK
  	
  
45
  
	
  
 
  	
  
 
  	
   
 
	
  
8.5
  	
  
DUTIES OF   THE TRUSTEE REGARDING PAYMENTS
  	
  
46
  
	
   
  	
  
 
  	
   
 
	
  
8.6
  	
  
TRUSTEE’S   COMPENSATION AND EXPENSES AND TAXES
  	
  
46
  
	
  
 
  	
  
 
  	
   
 
	
  
8.7
  	
  
ANNUAL REPORT   OF THE TRUSTEE
  	
  
46
  
	
  
 
  	
  
 
  	
   
 
	
  
8.8
  	
  
AUDIT
  	
  
47
  
	
  
 
  	
  
 
  	
   
 
	
  
8.9
  	
  
RESIGNATION,   REMOVAL AND SUCCESSION OF TRUSTEE
  	
  
47
  
	
   
  	
  
 
  	
   
 
	
  
8.10
  	
  
TRANSFER OF   INTEREST
  	
  
48
  
	
  
 
  	
  
 
  	
   
 
	
  
8.11
  	
  
TRUSTEE   INDEMNIFICATION
  	
  
48
  
	
  
 
  	
  
 
  	
   
 
	
  
8.12
  	
  
DIRECT   ROLLOVER
  	
  
48
  

	
  
 
  	
  
ARTICLE IX
   AMENDMENT, TERMINATION AND MERGERS
  	
   
 
	
   
  	
  
 
  	
   
 
	
  
9.1
  	
  
AMENDMENT
  	
  
49
  
	
  
 
  	
  
 
  	
   
 
	
  
9.2
  	
  
TERMINATION
  	
  
50
  
	
  
 
  	
  
 
  	
   
 
	
  
9.3
  	
  
MERGER,   CONSOLIDATION OR TRANSFER OF ASSETS
  	
  
51
  
	
  
 
  	
  
 
  	
   
 
	
  
 
  	
  
ARTICLE X
   TOP HEAVY
  	
   
 
	
   
  	
  
 
  	
   
 
	
  
10.1
  	
  
TOP HEAVY   PLAN REQUIREMENTS
  	
  
51
  
	
  
 
  	
  
 
  	
   
 
	
  
10.2
  	
  
DETERMINATION   OF TOP HEAVY STATUS
  	
  
51
  
	
  
 
  	
  
 
  	
   
 
	
  
 
  	
  
ARTICLE XI
   MISCELLANEOUS
  	
   
 
	
  
 
  	
  
 
  	
   
 
	
  
11.1
  	
  
PARTICIPANT’S   RIGHTS
  	
  
54
  
	
   
  	
  
 
  	
   
 
	
  
11.2
  	
  
ALIENATION
  	
  
54
  
	
  
 
  	
  
 
  	
   
 
	
  
11.3
  	
  
CONSTRUCTION   OF PLAN
  	
  
55
  
	
  
 
  	
  
 
  	
   
 
	
  
11.4
  	
  
GENDER AND   NUMBER
  	
  
55
  
	
  
 
  	
  
 
  	
   
 
	
  
11.5
  	
  
LEGAL ACTION
  	
  
55
  
	
   
  	
  
 
  	
   
 
	
  
11.6
  	
  
PROHIBITION   AGAINST DIVERSION OF FUNDS
  	
  
55
  
	
  
 
  	
  
 
  	
   
 
	
  
11.7
  	
  
EMPLOYER’S   AND TRUSTEE’S PROTECTIVE CLAUSE
  	
  
56
  
	
  
 
  	
  
 
  	
   
 
	
  
11.8
  	
  
INSURER’S   PROTECTIVE CLAUSE
  	
  
56
  
	
  
 
  	
  
 
  	
   
 
	
  
11.9
  	
  
RECEIPT AND   RELEASE FOR PAYMENTS
  	
  
56
  
	
   
  	
  
 
  	
   
 
	
  
11.10
  	
  
ACTION BY   THE EMPLOYER
  	
  
57
  
	
  
 
  	
  
 
  	
   
 
	
  
11.11
  	
  
NAMED   FIDUCIARIES AND ALLOCATION OF RESPONSIBILITY
  	
  
57
  
	
  
 
  	
  
 
  	
   
 
	
  
11.12
  	
  
HEADINGS
  	
  
57
  
	
  
 
  	
  
 
  	
   
 
	
  
11.13
  	
  
APPROVAL BY   INTERNAL REVENUE SERVICE
  	
  
58
  
	
   
  	
  
 
  	
   
 
	
  
11.14
  	
  
UNIFORMITY
  	
  
58
  
	
  
 
  	
  
 
  	
   
 
	
  
11.15
  	
  
SECURITIES   AND EXCHANGE COMMISSION APPROVAL
  	
  
58
  

	
  
 
  	
  
ARTICLE XII
   PARTICIPATING EMPLOYERS
  	
   
 
	
  
 
  	
  
 
  	
   
 
	
  
12.1
  	
  
ADOPTION BY   OTHER EMPLOYERS
  	
  
58
  
	
   
  	
  
 
  	
   
 
	
  
12.2
  	
  
REQUIREMENTS   OF PARTICIPATING EMPLOYERS
  	
  
58
  
	
  
 
  	
  
 
  	
   
 
	
  
12.3
  	
  
DESIGNATION   OF AGENT
  	
  
59
  
	
  
 
  	
  
 
  	
   
 
	
  
12.4
  	
  
EMPLOYEE   TRANSFERS
  	
  
59
  
	
  
 
  	
  
 
  	
   
 
	
  
12.5
  	
  
PARTICIPATING   EMPLOYER CONTRIBUTION AND FORFEITURES
  	
  
59
  
	
   
  	
  
 
  	
   
 
	
  
12.6
  	
  
AMENDMENT
  	
  
59
  
	
  
 
  	
  
 
  	
   
 
	
  
12.7
  	
  
DISCONTINUANCE   OF PARTICIPATION
  	
  
60
  
	
  
 
  	
  
 
  	
   
 
	
  
12.8
  	
  
ADMINISTRATOR’S   AUTHORITY
  	
  
60
  

CORNERSTONE COMMUNITY BANK EMPLOYEE STOCK OWNERSHIP
 PLAN

                    THIS AGREEMENT, hereby made and entered into this __________ day of _________________________, by and between Cornerstone Community Bank (herein referred to as the “Employer”) and Nathaniel F. Hughes (herein referred to as the “Trustee”).

W I T N E S S E T H:

                    WHEREAS, the Employer desires an Employee Stock Ownership Plan so as to enable its eligible employees to acquire a proprietary interest in capital stock of the Employer; and

                    WHEREAS, the Employer desires to recognize the contribution made to its successful operation by its employees and to reward such contribution by means of an Employee Stock Ownership Plan for those employees who shall qualify as Participants hereunder; and

                    WHEREAS, contributions to the Plan will be made by the Employer and such contributions made to the trust will be invested primarily in the capital stock of the Employer;

                    NOW, THEREFORE, effective July 1, 2005, (hereinafter called the “Effective Date”), the Employer hereby establishes an Employee Stock Ownership Plan (ESOP) and creates this trust (which plan and trust are hereinafter called the “Plan”) for the exclusive benefit of the Participants and their Beneficiaries, which is intended to qualify as an “ESOP”, and the Trustee hereby accepts the Plan on the following terms:

ARTICLE I
 DEFINITIONS

          1.1     “Act” means the Employee Retirement Income Security Act of 1974, as it may be amended from time to time.

          1.2     “Administrator” means the Employer unless another person or entity has been designated by the Employer pursuant to Section 2.2 to administer the Plan on behalf of the Employer.

          1.3     “Affiliated Employer” means any corporation which is a member of a controlled group of corporations (as defined in Code Section 414(b)) which includes the Employer; any trade or business (whether or not incorporated) which is under common control (as defined in Code Section 414(c)) with the Employer; any organization (whether or not incorporated) which is a member of an affiliated service group (as defined in Code Section 414(m)) which includes the Employer; and any other entity required to be aggregated with the Employer pursuant to Regulations under Code Section 414(o).

          1.4     “Aggregate Account” means, with respect to each Participant, the value of all accounts maintained on behalf of a Participant, whether attributable to Employer or Employee contributions, subject to the provisions of Section 10.2.

1

          1.5     “Anniversary Date” means the last day of the Plan Year.

          1.6     “Beneficiary” means the person (or entity) to whom the share of a deceased Participant’s total account is payable, subject to the restrictions of Sections 7.2 and 7.5. For purposes of Sections 7.5(e) and 7.5(f), “designate Beneficiary” is the person designated under Code Section 401(a)(9) and Regulation 1.401(a)(9)-4.

          1.7     “Code” means the Internal Revenue Code of 1986, as amended or replaced from time to time.

          1.8     “Company Stock” means common stock issued by the Employer (or by a corporation which is a member of the controlled group of corporations of which the Employer is a member) which is readily tradeable on an established securities market. If there is no common stock which meets the foregoing requirement, the term “Company Stock” means common stock issued by the Employer (or by a corporation which is a member of the same controlled group) having a combination of voting power and dividend rights equal to or in excess of: (A) that class of common stock of the Employer (or of any other such corporation) having the greatest voting power, and (B) that class of common stock of the Employer (or of any other such corporation) having the greatest dividend rights. Noncallable preferred stock shall be deemed to be “Company Stock” if such stock is
convertible at any time into stock which constitutes “Company Stock” hereunder and if such conversion is at a conversion price which (as of the date of the acquisition by the Trust) is reasonable. For purposes of the preceding sentence, pursuant to Regulations, preferred stock shall be treated as noncallable if after the call there will be a reasonable opportunity for a conversion which meets the requirements of the preceding sentence.

          1.9     “Company Stock Account” means the account of a Participant which is credited with the shares of Company Stock purchased and paid for by the Trust Fund or contributed to the Trust Fund.

                     A separate accounting shall be maintained with respect to that portion of the Company Stock Account attributable to a Participant’s or the Participant’s Beneficiary’s election pursuant to Section 7.5(c)(3) to reinvest cash dividends in Company Stock. Any such Company Stock allocated to the Company Stock Account shall be fully Vested at all times and shall not be subject to Forfeiture for any reason.

          1.10     “Compensation” with respect to any Participant means such Participant’s wages as defined in Code Section 3401(a) and all other payments of compensation by the Employer (in the course of the Employer’s trade or business) for a Plan Year for which the Employer is required to furnish the Participant a written statement under Code Sections 6041(d), 6051(a)(3) and 6052. Compensation must be determined without regard to any rules under Code Section 3401(a) that limit the remuneration included in wages based on the nature or location of the employment or the services performed (such as the exception for agricultural labor in Code Section 3401(a)(2)). 

                     For purposes of this Section, the determination of Compensation shall be made by:

	
  
 
  	
  
          (a)     excluding   amounts which are contributed by the Employer pursuant to a salary reduction   agreement and which are not includible in the gross income of the Participant   under Code Sections 125, 132(f)(4), 402(e)(3), 402(h)(1)(B), 403(b) or   457(b), and Employee contributions described in Code Section 414(h)(2)   that are treated as Employer contributions.
  

2

                    For a Participant’s initial year of participation, Compensation shall be recognized as of such Employee’s effective date of participation pursuant to Section 3.2.

                    Compensation in excess of $200,000 (or such other amount provided in the Code) shall be disregarded. Such amount shall be adjusted for increases in the cost of living in accordance with Code Section 401(a)(17)(B), except that the dollar increase in effect on January 1 of any calendar year shall be effective for the Plan Year beginning with or within such calendar year. For any short Plan Year the Compensation limit shall be an amount equal to the Compensation limit for the calendar year in which the Plan Year begins multiplied by the ratio obtained by dividing the number of full months in the short Plan Year by twelve (12).

                    If any class of Employees is excluded from the Plan, then Compensation for any Employee who becomes eligible or ceases to be eligible to participate during a Plan Year shall only include Compensation while the Employee is an Eligible Employee.

                    For purposes of this Section, if the Plan is a plan described in Code Section 413(c) or 414(f) (a plan maintained by more than one Employer), the limitation applies separately with respect to the Compensation of any Participant from each Employer maintaining the Plan.

          1.11   “Contract” or “Policy” means any life insurance policy, retirement income policy or annuity policy (group or individual) issued pursuant to the terms of the Plan. In the event of any conflict between the terms of this Plan and the terms of any contract purchased hereunder, the Plan provisions shall control.

          1.12    “Distribution Calendar Year” means a calendar year for which a minimum distribution pursuant to Sections 7.5(e) and 7.5(f) is required. For distributions beginning before the Participant’s death, the first Distribution Calendar Year is the calendar year immediately preceding the calendar year which contains the Participant’s required beginning date under Section 7.5(e). For distributions beginning after the Participant’s death, the first Distribution Calendar Year is the calendar year in which distributions are required to begin under Section 7.5(f)(2). The required minimum distribution for the Participant’s first Distribution Calendar Year will be made on or before the Participant’s required beginning date. The required minimum distribution for other Distribution Calendar Years, including the required minimum distribution for the
Distribution Calendar Year in which the Participant’s required beginning date occurs, will be made on or before December 31st of that Distribution Calendar Year.

          1.13    “Early Retirement Date.” This Plan does not provide for a retirement date prior to Normal Retirement Date. 

          1.14    “Eligible Employee” means any Employee. 

                      Employees who are Leased Employees within the meaning of Code Sections 414(n)(2) and 414(o)(2) shall not be eligible to participate in this Plan.

                     Employees whose employment is governed by the terms of a collective bargaining agreement between Employee representatives (within the meaning of Code Section 7701(a)(46)) and the Employer under which retirement benefits were the subject of good faith bargaining between the parties will not be eligible to participate in this Plan unless such agreement expressly provides for coverage in this Plan.

3

                    Employees who are nonresident aliens (within the meaning of Code Section 7701(b)(1)(B)) and who receive no earned income (within the meaning of Code Section 911(d)(2)) from the Employer which constitutes income from sources within the United States (within the meaning of Code Section 861(a)(3)) shall not be eligible to participate in this Plan.

                    Employees of Affiliated Employers shall not be eligible to participate in this Plan unless such Affiliated Employers have specifically adopted this Plan in writing.

                    Employees classified by the Employer as independent contractors who are subsequently determined by the Internal Revenue Service to be Employees shall not be Eligible Employees.

          1.15   “Employee” means any person who is employed by the Employer or Affiliated Employer, and excludes any person who is employed as an independent contractor. Employee shall include Leased Employees within the meaning of Code Sections 414(n)(2) and 414(o)(2) unless such Leased Employees are covered by a plan described in Code Section 414(n)(5) and such Leased Employees do not constitute more than 20% of the recipient’s non-highly compensated work force.

          1.16    “Employer” means Cornerstone Community Bank and any successor which shall maintain this Plan; and any predecessor which has maintained this Plan. The Employer is a corporation with principal offices in the State of Tennessee. In addition, where appropriate, the term Employer shall include any Participating Employer (as defined in Section 12.1) which shall adopt this Plan.

          1.17    “ESOP” means an employee stock ownership plan that meets the requirements of Code Section 4975(e)(7) and Regulation 54.4975-11.

          1.18    “Fiduciary” means any person who (a) exercises any discretionary authority or discretionary control respecting management of the Plan or exercises any authority or control respecting management or disposition of its assets, (b) renders investment advice for a fee or other compensation, direct or indirect, with respect to any monies or other property of the Plan or has any authority or responsibility to do so, or (c) has any discretionary authority or discretionary responsibility in the administration of the Plan.

          1.19    “Fiscal Year” means the Employer’s accounting year of 12 months commencing on January 1 of each year and ending the following December 31.

4

          1.20    “Forfeiture” means that portion of a Participant’s Account that is not Vested, and occurs on the last day of the Plan Year in which the Participant incurs five (5) consecutive 1-Year Breaks in Service. In addition, the term Forfeiture shall also include amounts deemed to be Forfeitures pursuant to any other provision of this Plan.

          1.21    “Former Participant” means a person who has been a Participant, but who has ceased to be a Participant for any reason.

          1.22    “415 Compensation” with respect to any Participant means such Participant’s wages as defined in Code Section 3401(a) and all other payments of compensation by the Employer (in the course of the Employer’s trade or business) for a Plan Year for which the Employer is required to furnish the Participant a written statement under Code Sections 6041(d), 6051(a)(3) and 6052. “415 Compensation” must be determined without regard to any rules under Code Section 3401(a) that limit the remuneration included in wages based on the nature or location of the employment or the services performed (such as the exception for agricultural labor in Code Section 3401(a)(2)).

                    For purposes of this Section, the determination of “415 Compensation” shall include any elective deferral (as defined in Code Section 402(g)(3)), and any amount which is contributed or deferred by the Employer at the election of the Participant and which is not includible in the gross income of the Participant by reason of Code Sections 125, 132(f)(4) and 457.

          1.23    “Highly Compensated Employee” means an Employee described in Code Section 414(q) and the Regulations thereunder, and generally means any Employee who: 

	
  
 
  	
  
          (a)     was   a “five percent owner” as defined in Section 1.27(b) at any time during the   “determination year” or the “look-back year”; or
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (b)     for   the “look-back year” had “415 Compensation” from the Employer in excess of   $80,000 and were in the Top Paid Group of Employees for the Plan Year. The   $80,000 amount is adjusted at the same time and in the same manner as under   Code Section 415(d), except that the base period is the calendar quarter   ending September 30, 1996.
  

                    The “determination year” means the Plan Year for which testing is being performed, and the “look back year” means the immediately preceding twelve (12) month period.

                    A highly compensated former Employee is based on the rules applicable to determining Highly Compensated Employee status as in effect for the “determination year,” in accordance with Regulation 1.414(q)-1T, A-4 and IRS Notice 97-45 (or any superseding guidance).

                    In determining who is a Highly Compensated Employee, Employees who are non-resident aliens and who received no earned income (within the meaning of Code Section 911(d)(2)) from the Employer constituting United States source income within the meaning of Code Section 861(a)(3) shall not be treated as Employees. Additionally, all Affiliated Employers shall be taken into account as a single employer and Leased Employees within the meaning of Code Sections 414(n)(2) and 414(o)(2) shall be considered Employees unless such Leased Employees are covered by a plan described in Code Section 414(n)(5) and are not covered in any qualified plan maintained by the Employer. 

5

The exclusion of Leased Employees for this purpose shall be applied on a uniform and consistent basis for all of the Employer’s retirement plans. Highly Compensated Former Employees shall be treated as Highly Compensated Employees without regard to whether they performed services during the “determination year.”

          1.24    “Highly Compensated Participant” means any Highly Compensated Employee who is eligible to participate in the component of the Plan being tested.

          1.25    “Hour of Service” means (1) each hour for which an Employee is directly or indirectly compensated or entitled to compensation by the Employer for the performance of duties (these hours will be credited to the Employee for the computation period in which the duties are performed); (2) each hour for which an Employee is directly or indirectly compensated or entitled to compensation by the Employer (irrespective of whether the employment relationship has terminated) for reasons other than performance of duties (such as vacation, holidays, sickness, jury duty, disability, lay-off, military duty or leave of absence) during the applicable computation period (these hours will be calculated and credited pursuant to Department of Labor regulation 2530.200b-2 which is incorporated herein by reference); (3) each hour for which back pay is awarded or agreed to
by the Employer without regard to mitigation of damages (these hours will be credited to the Employee for the computation period or periods to which the award or agreement pertains rather than the computation period in which the award, agreement or payment is made). The same Hours of Service shall not be credited both under (1) or (2), as the case may be, and under (3).

                    Notwithstanding (2) above, (i) no more than 501 Hours of Service are required to be credited to an Employee on account of any single continuous period during which the Employee performs no duties (whether or not such period occurs in a single computation period); (ii) an hour for which an Employee is directly or indirectly paid, or entitled to payment, on account of a period during which no duties are performed is not required to be credited to the Employee if such payment is made or due under a plan maintained solely for the purpose of complying with applicable worker’s compensation, or unemployment compensation or disability insurance laws; and (iii) Hours of Service are not required to be credited for a payment which solely reimburses an Employee for medical or medically related expenses incurred by the Employee.

                    For purposes of (2) above, a payment shall be deemed to be made by or due from the Employer regardless of whether such payment is made by or due from the Employer directly, or indirectly through, among others, a trust fund, or insurer, to which the Employer contributes or pays premiums and regardless of whether contributions made or due to the trust fund, insurer, or other entity are for the benefit of particular Employees or are on behalf of a group of Employees in the aggregate.

                    For purposes of this Section, Hours of Service will be credited for employment with other Affiliated Employers. The provisions of Department of Labor regulations 2530.200b-2(b) and (c) are incorporated herein by reference.

          1.26    “Investment Manager” means an entity that (a) has the power to manage, acquire, or dispose of Plan assets and (b) acknowledges fiduciary responsibility to the Plan in writing. Such entity must be a person, firm, or corporation registered as an investment adviser under the Investment Advisers Act of 1940, a bank, or an insurance company.

6

          1.27    “Key Employee” means an Employee as defined in Code Section 416(i) and the Regulations thereunder. Generally, any Employee or former Employee (as well as each of the Employee’s or former Employee’s Beneficiaries) is considered a Key Employee if the Employee’s or former Employee’s, at any time during the Plan Year that contains the “determination date,” has been included in one of the following categories:

	
  
 
  	
  
          (a)     an   officer of the Employer (as that term is defined within the meaning of the   Regulations under Code Section 416) having annual “415 Compensation”   greater than $130,000 adjusted at the same time and in the same manner as   under Code Section 415(d).
  
	
   
  	
  
 
  
	
  
 
  	
  
          (b)     a   “five percent owner” of the Employer. “Five percent owner” means any person   who owns (or is considered as owning within the meaning of Code   Section 318) more than five percent (5%) of the outstanding stock of the   Employer or stock possessing more than five percent (5%) of the total   combined voting power of all stock of the Employer or, in the case of an   unincorporated business, any person who owns more than five percent (5%) of   the capital or profits interest in the Employer. In determining percentage   ownership hereunder, employers that would otherwise be aggregated under Code   Sections 414(b), (c), (m) and (o) shall be treated as separate   employers.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (c)     a   “one percent owner” of the Employer having an annual “415 Compensation” from   the Employer of more than $150,000. “One percent owner” means any person who   owns (or is considered as owning within the meaning of Code Section 318)   more than one percent (1%) of the outstanding stock of the Employer or stock   possessing more than one percent (1%) of the total combined voting power of   all stock of the Employer or, in the case of an unincorporated business, any   person who owns more than one percent (1%) of the capital or profits interest   in the Employer. In determining percentage ownership hereunder, employers   that would otherwise be aggregated under Code Sections 414(b), (c), (m)   and (o) shall be treated as separate employers. However, in determining   whether an individual has “415 Compensation” of more
than $150,000, “415   Compensation” from each employer required to be aggregated under Code   Sections 414(b), (c), (m) and (o) shall be taken into account.
  

                    For purposes of this Section, the determination of “415 Compensation” shall be made by including amounts which are contributed by the Employer pursuant to a salary reduction agreement and which are not includible in the gross income of the Participant under Code Sections 125, 132(f)(4), 402(e)(3), 402(h)(1)(B), 403(b) or 457(b), and Employee contributions described in Code Section 414(h)(2) that are treated as Employer contributions.

          1.28    “Late Retirement Date” means the first day of the month coinciding with or next following a Participant’s actual Retirement Date after having reached Normal Retirement Date.

7

          1.29    “Leased Employee” means any person (other than an Employee of the recipient Employer) who pursuant to an agreement between the recipient Employer and any other person or entity (“leasing organization”) has performed services for the recipient (or for the recipient and related persons determined in accordance with Code Section 414(n)(6)) on a substantially full time basis for a period of at least one year, and such services are performed under primary direction or control by the recipient Employer. Contributions or benefits provided a Leased Employee by the leasing organization which are attributable to services performed for the recipient Employer shall be treated as provided by the recipient Employer. Furthermore, Compensation for a Leased Employee shall only include Compensation from the leasing organization that is attributable to services performed for
the recipient Employer. A Leased Employee shall not be considered an Employee of the recipient Employer:

	
   
  	
  
          (a)     if   such employee is covered by a money purchase pension plan providing:
  
	
  
 
  	
  
 
  
	
  
 
  	

          (1)     a   nonintegrated employer contribution rate of at least 10% of compensation, as   defined in Code Section 415(c)(3);
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (2)     immediate   participation;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (3)     full   and immediate vesting; and
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (b)     if   Leased Employees do not constitute more than 20% of the recipient Employer’s   nonhighly compensated work force.
  

          1.30    “Life Expectancy” computed, for purposes of Sections 7.5(e) and 7.5(f), using the Single Life Table in Regulation 1.401(a)(9)-9.

          1.31    “Non-Highly Compensated Participant” means any Participant who is not a Highly Compensated Employee.

          1.32    “Non-Key Employee” means any Employee or former Employee (and such Employee’s or former Employee’s Beneficiaries) who is not a Key Employee.

          1.33    “Normal Retirement Age” means the Participant’s 65th birthday. A Participant shall become fully Vested in the Participant’s Account upon attaining Normal Retirement Age.

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

          1.35    “1-Year Break in Service” means the applicable computation period during which an Employee has not completed more than 500 Hours of Service with the Employer. Further, solely for the purpose of determining whether a Participant has incurred a 1-Year Break in Service, Hours of Service shall be recognized for “authorized leaves of absence” and “maternity and paternity leaves of absence.” Years of Service and 1-Year Breaks in Service shall be measured on the same computation period.

                    “Authorized leave of absence” means an unpaid, temporary cessation from active employment with the Employer pursuant to an established nondiscriminatory policy, whether occasioned by illness, military service, or any other reason.

8

                    A “maternity or paternity leave of absence” means an absence from work for any period by reason of the Employee’s pregnancy, birth of the Employee’s child, placement of a child with the Employee in connection with the adoption of such child, or any absence for the purpose of caring for such child for a period immediately following such birth or placement. For this purpose, Hours of Service shall be credited for the computation period in which the absence from work begins, only if credit therefore is necessary to prevent the Employee from incurring a 1-Year Break in Service, or, in any other case, in the immediately following computation period. The Hours of Service credited for a “maternity or paternity leave of absence” shall be those which would normally have been credited but for such absence, or, in any case in
which the Administrator is unable to determine such hours normally credited, eight (8) Hours of Service per day. The total Hours of Service required to be credited for a “maternity or paternity leave of absence” shall not exceed the number of Hours of Service needed to prevent the Employee from incurring a 1-Year Break in Service.

          1.36    “Other Investments Account” means the account of a Participant which is credited with such Participant’s share of the net gain (or loss) of the Plan, Forfeitures and Employer contributions in other than Company Stock and which is debited with payments made to pay for Company Stock.

          1.37    “Participant” means any Eligible Employee who participates in the Plan and has not for any reason become ineligible to participate further in the Plan.

          1.38    “Participant’s Account” means the account established and maintained by the Administrator for each Participant with respect to such Participant’s total interest in the Plan and Trust resulting from the Employer contributions.

          1.39    “Participant’s Account Balance” means the account balance as of the last Valuation Date in the calendar year immediately preceding the Distribution Calendar Year (valuation calendar year) increased by the amount of any contributions made and allocated or Forfeitures allocated to the account balance as of dates in the valuation calendar year after the Valuation Date and decreased by distributions made in the valuation calendar year after the Valuation Date. The account balance for the valuation calendar year includes any amounts rolled over or transferred to the Plan either in the valuation calendar year or in the Distribution Calendar Year if distributed or transferred in the valuation calendar year.

          1.40    “Participant’s Rollover Account” means the account established and maintained by the Administrator for each Participant with respect to such Participant’s interest in the Plan resulting from amounts transferred from another plan or “conduit” Individual Retirement Account in accordance with Section 4.7.

                    A separate accounting shall be maintained with respect to that portion of the Participant’s Rollover Account attributable to after-tax Employee contributions.

          1.41    “Participant’s Transfer Account” means the account established and maintained by the Administrator for each Participant with respect to the Participant’s total interest in the Plan resulting from amounts transferred to this Plan from a direct plan-to-plan transfer and/or with respect to such Participant’s interest in the Plan resulting from amounts transferred from another qualified plan or “conduit” Individual Retirement Account in accordance with Section 4.6.

9

          1.42    “Plan” means this instrument, including all amendments thereto.

          1.43    “Plan Year” means the Plan’s accounting year of twelve (12) months commencing on January 1 of each year and ending the following December 31.

          1.44    “Regulation” means the Income Tax Regulations as promulgated by the Secretary of the Treasury or a delegate of the Secretary of the Treasury, and as amended from time to time.

          1.45    “Retired Participant” means a person who has been a Participant, but who has become entitled to retirement benefits under the Plan.

          1.46    “Retirement Date” means the date as of which a Participant retires for reasons other than Total and Permanent Disability, whether such retirement occurs on a Participant’s Normal Retirement Date or Late Retirement Date (see Section 7.1).

          1.47    “Terminated Participant” means a person who has been a Participant, but whose employment has been terminated other than by death, Total and Permanent Disability or retirement.

          1.48    “Top Heavy Plan” means a plan described in Section 10.2(a).

          1.49    “Top Heavy Plan Year” means a Plan Year during which the Plan is a Top Heavy Plan.

          1.50    “Top-Paid Group” means the top 20 percent of Employees who performed services for the Employer during the applicable year, ranked according to the amount of “415 Compensation” received from the Employer during such year. All Affiliated Employers shall be taken into account as a single employer, and Leased Employees within the meaning of Code Sections 414(n)(2) and 414(o)(2) shall be considered Employees unless such Leased Employees are covered by a plan described in Code Section 414(n)(5) and are not covered in any qualified plan maintained by the Employer. Employees who are non-resident aliens and who received no earned income (within the meaning of Code Section 911(d)(2)) from the Employer constituting United States source income within the meaning of Code Section 861(a)(3) shall not be treated as Employees. Furthermore, for the purpose of
determining the number of active Employees in any year, the following additional Employees shall also be excluded, however, such Employees shall still be considered for the purpose of identifying the particular Employees in the Top-Paid Group:

	
  
 
  	
  
          (a)     Employees   with less than six (6) months of service;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (b)     Employees   who normally work less than 17 1/2 hours per week;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (c)     Employees   who normally work less than six (6) months during a year; and
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (d)     Employees   who have not yet attained age twenty-one (21).
  

10

                    In addition, if 90 percent or more of the Employees of the Employer are covered under agreements the Secretary of Labor finds to be collective bargaining agreements between Employee representatives and the Employer, and the Plan covers only Employees who are not covered under such agreements, then Employees covered by such agreements shall be excluded from both the total number of active Employees as well as from the identification of particular Employees in the Top-Paid Group.

                    The foregoing exclusions set forth in this Section shall be applied on a uniform and consistent basis for all purposes for which the Code Section 414(q) definition is applicable.

          1.51    “Total and Permanent Disability” means a physical or mental condition of a Participant resulting from bodily injury, disease, or mental disorder which renders such Participant incapable of continuing usual and customary employment with the Employer. The disability of a Participant shall be determined by a licensed physician chosen by the Administrator. The determination shall be applied uniformly to all Participants. 

          1.52    “Trustee” means the person or entity named as trustee herein or in any separate trust forming a part of this Plan, and any successors.

          1.53    “Trust Fund” means the assets of the Plan and Trust as the same shall exist from time to time.

          1.54    “Valuation Date” means the Anniversary Date and may include any other date or dates deemed necessary or appropriate by the Administrator for the valuation of the Participant’s accounts during the Plan Year, which may include any day that the Trustee, any transfer agent appointed by the Trustee or the Employer or any stock exchange used by such agent, are open for business.

          1.55    “Vested” means the nonforfeitable portion of any account maintained on behalf of a Participant.

          1.56    “Year of Service” means the computation period of twelve (12) consecutive months, herein set forth, during which an Employee has at least 1000 Hours of Service.

                    For purposes of eligibility for participation, the initial computation period shall begin with the date on which the Employee first performs an Hour of Service. The participation computation period beginning after a 1-Year Break in Service shall be measured from the date on which an Employee again performs an Hour of Service. The participation computation period shall shift to the Plan Year which includes the anniversary of the date on which the Employee first performed an Hour of Service. An Employee who is credited with the required Hours of Service in both the initial computation period (or the computation period beginning after a 1-Year Break in Service) and the Plan Year which includes the anniversary of the date on which the Employee first performed an Hour of Service, shall be credited with two (2) Years of Service for purposes of
eligibility to participate.

                    For vesting purposes, the computation periods shall be the Plan Year, excluding periods prior to the Effective Date of the Plan.

                    The computation period shall be the Plan Year if not otherwise set forth herein.

11

                    Notwithstanding the foregoing, for any short Plan Year, the determination of whether an Employee has completed a Year of Service shall be made in accordance with Department of Labor regulation 2530.203-2(c). However, in determining whether an Employee has completed a Year of Service for benefit accrual purposes in the short Plan Year, the number of the Hours of Service required shall be proportionately reduced based on the number of full months in the short Plan Year.

                    Years of Service with any Affiliated Employer shall be recognized.

ARTICLE II
 ADMINISTRATION

2.1     POWERS AND RESPONSIBILITIES OF THE EMPLOYER

	
  
 
  	
  
          (a)     In   addition to the general powers and responsibilities otherwise provided for in   this Plan, the Employer shall be empowered to appoint and remove the Trustee   and the Administrator from time to time as it deems necessary for the proper   administration of the Plan to ensure that the Plan is being operated for the   exclusive benefit of the Participants and their Beneficiaries in accordance   with the terms of the Plan, the Code, and the Act. The Employer may appoint   counsel, specialists, advisers, agents (including any nonfiduciary agent) and   other persons as the Employer deems necessary or desirable in connection with   the exercise of its fiduciary duties under this Plan. The Employer may   compensate such agents or advisers from the assets of the Plan as fiduciary   expenses (but not including any business (settlor) expenses of the Employer),   to the extent
not paid by the Employer.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (b)     The   Employer may, by written agreement or designation, appoint at its option an   Investment Manager (qualified under the Investment Company Act of 1940 as   amended), investment adviser, or other agent to provide direction to the   Trustee with respect to any or all of the Plan assets. Such appointment shall   be given by the Employer in writing in a form acceptable to the Trustee and   shall specifically identify the Plan assets with respect to which the   Investment Manager or other agent shall have authority to direct the   investment.
  
	
   
  	
  
 
  
	
  
 
  	
  
          (c)     The   Employer shall establish a “funding policy and method,” i.e., it shall   determine whether the Plan has a short run need for liquidity (e.g., to pay   benefits) or whether liquidity is a long run goal and investment growth (and   stability of same) is a more current need, or shall appoint a qualified person   to do so. The Employer or its delegate shall communicate such needs and goals   to the Trustee, who shall coordinate such Plan needs with its investment   policy. The communication of such a “funding policy and method” shall not,   however, constitute a directive to the Trustee as to the investment of the   Trust Funds. Such “funding policy and method” shall be consistent with the   objectives of this Plan and with the requirements of Title I of the Act.
  

12

	
  
 
  	
  
          (d)     The   Employer shall periodically review the performance of any Fiduciary or other   person to whom duties have been delegated or allocated by it under the   provisions of this Plan or pursuant to procedures established hereunder. This   requirement may be satisfied by formal periodic review by the Employer or by   a qualified person specifically designated by the Employer, through   day-to-day conduct and evaluation, or through other appropriate ways.
  
	
   
  	
  
 
  
	
  
 
  	
  
          (e)     The   Employer will furnish Plan Fiduciaries and Participants with notices and   information statements when voting rights must be exercised pursuant to   Section 8.4.
  

2.2     DESIGNATION OF ADMINISTRATIVE AUTHORITY

                    The Employer shall be the Administrator. The Employer may appoint any person, including, but not limited to, the Employees of the Employer, to perform the duties of the Administrator. Any person so appointed shall signify acceptance by filing written acceptance with the Employer. Upon the resignation or removal of any individual performing the duties of the Administrator, the Employer may designate a successor.

2.3     ALLOCATION AND DELEGATION OF RESPONSIBILITIES

                    If more than one person is appointed as Administrator, the responsibilities of each Administrator may be specified by the Employer and accepted in writing by each Administrator. In the event that no such delegation is made by the Employer, the Administrators may allocate the responsibilities among themselves, in which event the Administrators shall notify the Employer and the Trustee in writing of such action and specify the responsibilities of each Administrator. The Trustee thereafter shall accept and rely upon any documents executed by the appropriate Administrator until such time as the Employer or the Administrators file with the Trustee a written revocation of such designation.

2.4     POWERS AND DUTIES OF THE ADMINISTRATOR

                    The primary responsibility of the Administrator is to administer the Plan for the exclusive benefit of the Participants and their Beneficiaries, subject to the specific terms of the Plan. The Administrator shall administer the Plan in accordance with its terms and shall have the power and discretion to construe the terms of the Plan and to determine all questions arising in connection with the administration, interpretation, and application of the Plan. Any such determination by the Administrator shall be conclusive and binding upon all persons. The Administrator may establish procedures, correct any defect, supply any information, or reconcile any inconsistency in such manner and to such extent as shall be deemed necessary or advisable to carry out the purpose of the Plan; provided, however, that any procedure, discretionary act,
interpretation or construction shall be done in a nondiscriminatory manner based upon uniform principles consistently applied and shall be consistent with the intent that the Plan shall continue to be deemed a qualified plan under the terms of Code Section 401(a), and shall comply with the terms of the Act and all regulations issued pursuant thereto. The Administrator shall have all powers necessary or appropriate to accomplish the Administrator’s duties under the Plan.

13

                    The Administrator shall be charged with the duties of the general administration of the Plan as set forth under the terms of the Plan, including, but not limited to, the following:

	
  
 
  	
  
          (a)     the   discretion to determine all questions relating to the eligibility of   Employees to participate or remain a Participant hereunder and to receive   benefits under the Plan;
  
	
   
  	
  
 
  
	
  
 
  	
  
          (b)        to compute, certify, and direct the Trustee   with respect to the amount and the kind of benefits to which any Participant   shall be entitled hereunder;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (c)        to authorize and direct the Trustee with   respect to all nondiscretionary or otherwise directed disbursements from the   Trust;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (d)        to maintain all necessary records for the   administration of the Plan;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (e)        to interpret the provisions of the Plan and to   make and publish such rules for regulation of the Plan as are consistent with   the terms hereof;
  
	
   
  	
  
 
  
	
  
 
  	
  
          (f)        to determine the size and type of any Contract   to be purchased from any insurer, and to designate the insurer from which   such Contract shall be purchased;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (g)        to compute and certify to the Employer and to   the Trustee from time to time the sums of money necessary or desirable to be   contributed to the Plan;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (h)        to consult with the Employer and the Trustee   regarding the short and long-term liquidity needs of the Plan in order that   the Trustee can exercise any investment discretion in a manner designed to   accomplish specific objectives;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (i)        to establish and communicate to Participants a   procedure for allowing each Participant to direct the Trustee as to the   distribution of such Participant’s Company Stock Account pursuant to   Section 4.8;
  
	
   
  	
  
 
  
	
  
 
  	
  
          (j)        to establish and communicate to Participants a   procedure and method to insure that each Participant will vote Company Stock   allocated to such Participant’s Company Stock Account pursuant to   Section 8.4;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (k)     to   determine the validity of, and take appropriate action with respect to, any   qualified domestic relations order received by it; and
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (l)     to   assist any Participant regarding the Participant’s rights, benefits, or   elections available under the Plan.
  

2.5     RECORDS AND REPORTS

                    The Administrator shall keep a record of all actions taken and shall keep all other books of account, records, policies, and other data that may be necessary for proper administration of the Plan and shall be responsible for supplying all information and reports to the Internal Revenue Service, Department of Labor, Participants, Beneficiaries and others as required by law.

14

2.6     APPOINTMENT OF ADVISERS

                    The Administrator, or the Trustee with the consent of the Administrator, may appoint counsel, specialists, advisers, agents (including nonfiduciary agents) and other persons as the Administrator or the Trustee deems necessary or desirable in connection with the administration of this Plan, including but not limited to agents and advisers to assist with the administration and management of the Plan, and thereby to provide, among such other duties as the Administrator may appoint, assistance with maintaining Plan records and the providing of investment information to the Plan’s investment fiduciaries.

2.7     PAYMENT OF EXPENSES

                    All expenses of administration may be paid out of the Trust Fund unless paid by the Employer. Such expenses shall include any expenses incident to the functioning of the Administrator, or any person or persons retained or appointed by any Named Fiduciary incident to the exercise of their duties under the Plan, including, but not limited to, fees of accountants, counsel, Investment Managers, and other specialists and their agents, the costs of any bonds required pursuant to Act Section 412, and other costs of administering the Plan. Until paid, the expenses shall constitute a liability of the Trust Fund.

2.8     CLAIMS PROCEDURE

                    Claims for benefits under the Plan may be filed in writing with the Administrator. Written or electronic notice of the disposition of a claim shall be furnished to the claimant within 90 days (45 days if the claim involves disability benefits) after the application is filed, or such period as is required by applicable law or Department of Labor regulation. In the event the claim is denied, the reasons for the denial shall be specifically set forth in the notice in language calculated to be understood by the claimant, pertinent provisions of the Plan shall be cited, and, where appropriate, an explanation as to how the claimant can perfect the claim will be provided. In addition, the claimant shall be furnished with an explanation of the Plan’s claims review procedure.

2.9     CLAIMS REVIEW PROCEDURE

                    Any Employee, former Employee, or Beneficiary of either, who has been denied a benefit by a decision of the Administrator pursuant to Section 2.8 shall be entitled to request the Administrator to give further consideration to a claim by filing with the Administrator a written request for a hearing. Such request, together with a written statement of the reasons why the claimant believes the claim should be allowed, shall be filed with the Administrator no later than 60 days (180 days if the denied benefit involves disability benefits) after receipt of the written or electronic notification provided for in Section 2.8. The Administrator shall then conduct a hearing within the next 60 days (45 days if the claim involves disability benefits), at which the claimant may be represented by an attorney or any other representative of such
claimant’s choosing and expense and at which the claimant shall have an opportunity to submit written and oral evidence and arguments in support of the claim. At the hearing the claimant or the claimant’s representative shall have an opportunity to review all documents in the possession of the Administrator which are pertinent to the claim at issue and its disallowance. 

15

Either the claimant or the Administrator may cause a court reporter to attend the hearing and record the proceedings. In such event, a complete written transcript of the proceedings shall be furnished to both parties by the court reporter. The full expense of any such court reporter and such transcripts shall be borne by the party causing the court reporter to attend the hearing. A final decision as to the allowance of the claim shall be made by the Administrator within 60 days (45 days if the claim involves disability benefits) of receipt of the appeal (unless there has been an extension of 60 days (45 days if the claim involves disability benefits) due to special circumstances, provided the delay and the special circumstances occasioning it are communicated to the claimant within the 60 day period (45 day period if the claim involves disability benefits). Such communication shall be written in a manner calculated to be understood by the claimant and shall
include specific reasons for the decision and specific references to the pertinent Plan provisions on which the decision is based.

ARTICLE III
 ELIGIBILITY

3.1     CONDITIONS OF ELIGIBILITY

                    Any Eligible Employee who has completed one (1) Year of Service and has attained age 19 shall be eligible to participate hereunder as of the date such Employee has satisfied such requirements.

3.2     EFFECTIVE DATE OF PARTICIPATION

                    An Eligible Employee shall become a Participant effective as of the earlier of the first day of the Plan Year or the first day of the seventh month of such Plan Year coinciding with or next following the date such Employee met the eligibility requirements of Section 3.1, provided said Employee was still employed as of such date (or if not employed on such date, as of the date of rehire if a 1-Year Break in Service has not occurred or, if later, the date that the Employee would have otherwise entered the Plan had the Employee not terminated employment).

                    If an Employee, who has satisfied the Plan’s eligibility requirements and would otherwise have become a Participant, shall go from a classification of a noneligible Employee to an Eligible Employee, such Employee shall become a Participant on the date such Employee becomes an Eligible Employee or, if later, the date that the Employee would have otherwise entered the Plan had the Employee always been an Eligible Employee.

                    If an Employee, who has satisfied the Plan’s eligibility requirements and would otherwise become a Participant, shall go from a classification of an Eligible Employee to a noneligible class of Employees, such Employee shall become a Participant in the Plan on the date such Employee again becomes an Eligible Employee, or, if later, the date that the Employee would have otherwise entered the Plan had the Employee always been an Eligible Employee. However, if such Employee incurs a 1-Year Break in Service, eligibility will be determined under the Break in Service rules set forth in Section 3.7.

16

3.3     DETERMINATION OF ELIGIBILITY

                    The Administrator shall determine the eligibility of each Employee for participation in the Plan based upon information furnished by the Employer. Such determination shall be conclusive and binding upon all persons, as long as the same is made pursuant to the Plan and the Act. Such determination shall be subject to review pursuant to Section 2.9.

3.4     TERMINATION OF ELIGIBILITY

                    In the event a Participant shall go from a classification of an Eligible Employee to an ineligible Employee, such Former Participant shall continue to vest in the Plan for each Year of Service completed while a noneligible Employee, until such time as the Participant’s Account shall be forfeited or distributed pursuant to the terms of the Plan. Additionally, the Former Participant’s interest in the Plan shall continue to share in the earnings of the Trust Fund.

3.5     OMISSION OF ELIGIBLE EMPLOYEE

                    If, in any Plan Year, any Employee who should be included as a Participant in the Plan is erroneously omitted and discovery of such omission is not made until after a contribution by the Employer for the year has been made and allocated, then the Employer shall make a subsequent contribution, if necessary after the application of Section 4.3(e), so that the omitted Employee receives a total amount which the Employee would have received (including both Employer contributions and earnings thereon) had the Employee not been omitted. Such contribution shall be made regardless of whether it is deductible in whole or in part in any taxable year under applicable provisions of the Code.

3.6     INCLUSION OF INELIGIBLE EMPLOYEE

                    If, in any Plan Year, any person who should not have been included as a Participant in the Plan is erroneously included and discovery of such inclusion is not made until after a contribution for the year has been made and allocated, the Employer shall be entitled to recover the contribution made with respect to the ineligible person provided the error is discovered within twelve (12) months of the date on which it was made. Otherwise, the amount contributed with respect to the ineligible person shall constitute a Forfeiture for the Plan Year in which the discovery is made.

3.7     REHIRED EMPLOYEES AND BREAKS IN SERVICE 

	
  
 
  	
  
          (a)     If   any Participant becomes a Former Participant due to severance from employment   with the Employer and is reemployed by the Employer before a 1-Year Break in   Service occurs, the Former Participant shall become a Participant as of the   reemployment date.
  

17

	
  
 
  	
  
          (b)     If   any Participant becomes a Former Participant due to severance from employment   with the Employer and is reemployed after a 1-Year Break in Service has   occurred, Years of Service shall include Years of Service prior to the 1-Year   Break in Service subject to the following rules:
  
	
   
  	
  
 
  
	
  
 
  	
  
 
  	
  
(1)     In   the case of a Former Participant who under the Plan does not have a   nonforfeitable right to any interest in the Plan resulting from Employer   contributions, Years of Service before a period of 1-Year Break in Service   will not be taken into account if the number of consecutive 1-Year Breaks in   Service equal or exceed the greater of (A) five (5) or (B) the aggregate   number of pre-break Years of Service. Such aggregate number of Years of   Service will not include any Years of Service disregarded under the preceding   sentence by reason of prior 1-Year Breaks in Service.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
(2)     A   Former Participant who has not had Years of Service before a 1-Year Break in   Service disregarded pursuant to (1) above, and completes a Year of Service   for eligibility purposes shall participate in the Plan as of the date   immediately following completion of a Year of Service.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
          (c)     After   a Former Participant who has severed employment with the Employer incurs   five (5) consecutive 1-Year Breaks in Service, the Vested portion of   said Former Participant’s Account attributable to pre-break service shall not   be increased as a result of post-break service. In such case, separate   accounts will be maintained as follows:
  
	
   
  	
  
 
  
	
  
 
  	
  
 
  	

(1)     one   account for nonforfeitable benefits attributable to pre-break service; and
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
(2)     one   account representing the Participant’s Employer derived account balance in   the Plan attributable to post-break service.
  

3.8     ELECTION NOT TO PARTICIPATE

                    An Employee may, subject to the approval of the Employer, elect voluntarily not to participate in the Plan. The election not to participate must be communicated to the Employer, in writing, within a reasonable period of time before the beginning of a Plan Year.

ARTICLE IV
 CONTRIBUTION AND ALLOCATION

4.1     FORMULA FOR DETERMINING EMPLOYER CONTRIBUTION

	
  
 
  	
  
          (a)     For   each Plan Year, the Employer shall contribute to the Plan such amount as   shall be determined by the Employer.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (b)     The   Employer contribution shall not be limited to years in which the Employer has   current or accumulated net profit. Additionally, to the extent necessary, the   Employer shall contribute to the Plan the amount necessary to provide the top   heavy minimum contribution. All contributions by the Employer shall be made   in cash or in such property as is acceptable to the Trustee.
  

18

4.2     TIME OF PAYMENT OF EMPLOYER CONTRIBUTION

                    The Employer may make its contribution to the Plan for a particular Plan Year at such time as the Employer, in its sole discretion, determines. If the Employer makes a contribution for a particular Plan Year after the close of that Plan Year, the Employer will designate to the Trustee the Plan Year for which the Employer is making its contribution.

4.3     ALLOCATION OF CONTRIBUTION, FORFEITURES AND EARNINGS

	
  
 
  	
  
          (a)     The   Administrator shall establish and maintain an account in the name of each   Participant to which the Administrator shall credit as of each Anniversary   Date, or other Valuation Date, all amounts allocated to each such Participant   as set forth herein.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (b)        The Employer shall provide the Administrator   with all information required by the Administrator to make a proper   allocation of the Employer contribution for each Plan Year. Within a   reasonable period of time after the date of receipt by the Administrator of   such information, the Administrator shall allocate such contribution to each   Participant’s Account in the same proportion that each such Participant’s   Compensation for the year bears to the total Compensation of all Participants   for such year.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
                    Only   Participants who have completed a Year of Service during the Plan Year and   are actively employed on the last day of the Plan Year shall be eligible to   share in the discretionary contribution for the year.
  
	
   
  	
  
 
  
	
  
 
  	
  
          (c)        The Company Stock Account of each Participant   shall be credited as of each Anniversary Date with Forfeitures of Company   Stock and the Participant’s allocable share of Company Stock (including   fractional shares) purchased and paid for by the Plan or contributed in kind   by the Employer. Stock dividends on Company Stock held in the Participant’s   Company Stock Account shall be credited to the Participant’s Company Stock   Account when paid to the Plan. Cash dividends on Company Stock held in the   Participant’s Company Stock Account shall be credited to the Participant’s   Other Investments Account when paid to the Plan.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (d)        As of each Valuation Date, before the current   valuation period allocation of Employer contributions and Forfeitures, any   earnings or losses (net appreciation or net depreciation) of the Trust Fund   shall be allocated in the same proportion that each Participant’s and Former   Participant’s nonsegregated accounts (other than each Participant’s Company   Stock Account) bear to the total of all Participants’ and Former   Participants’ nonsegregated accounts (other than each Participant’s Company   Stock Account) as of such date.
  

19

	
  
 
  	
  
                    Participants’   transfers from other qualified plans deposited in the general Trust Fund   shall share in any earnings and losses (net appreciation or net depreciation)   of the Trust Fund in the same manner provided above. Each segregated account   maintained on behalf of a Participant shall be credited or charged with its   separate earnings and losses.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (e)        On or before each Anniversary Date any amounts   which became Forfeitures since the last Anniversary Date may be used to   satisfy any contribution that may be required pursuant to Section 3.5   and/or 7.8, or used to pay any administrative expenses of the Plan. The   remaining Forfeitures, if any, shall be allocated each year among the   Participants’ Accounts of Participants otherwise eligible to share in the   allocation of discretionary contributions in the same proportion that each   such Participant’s Compensation for the year bears to the total Compensation   of all such Participants for the year.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
                    Provided,   however, that in the event the allocation of Forfeitures provided herein   shall cause the “annual addition” (as defined in Section 4.4) to any   Participant’s Account to exceed the amount allowable by the Code, the excess   shall be reallocated in accordance with Section 4.5.
  
	
   
  	
  
 
  
	
  
 
  	
  
          (f)        For any Top Heavy Plan Year, Employees not   otherwise eligible to share in the allocation of contributions and   Forfeitures as provided above, shall receive the minimum allocation provided   for in Section 4.3(h) if eligible pursuant to the provisions of Section 4.3(j).
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (g)        Notwithstanding the foregoing, Participants who   are not actively employed on the last day of the Plan Year due to Retirement   (Normal or Late), Total and Permanent Disability or death shall share in the   allocation of contributions and Forfeitures for that Plan Year.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (h)        Minimum Allocations Required for Top Heavy Plan   Years: Notwithstanding the foregoing, for any Top Heavy Plan Year, the sum of   the Employer contributions and Forfeitures allocated to the Participant’s Account   of each Employee shall be equal to at least three percent (3%) of such   Employee’s “415 Compensation” (reduced by contributions and forfeitures, if   any, allocated to each Employee in any defined contribution plan included   with this Plan in a Required Aggregation Group). However, if (1) the sum   of the Employer contributions and Forfeitures allocated to the Participant’s   Account of each Key Employee for such Top Heavy Plan Year is less than three   percent (3%) of each Key Employee’s “415 Compensation” and (2) this Plan   is not required to be included in an Aggregation Group to enable a defined
benefit plan to meet the requirements of Code Section 401(a)(4) or 410,   then the sum of the Employer contributions and Forfeitures allocated to the   Participant’s Account of each Employee shall be equal to the largest   percentage allocated to the Participant’s Account of any Key Employee.
  
	
   
  	
  
 
  
	
  
 
  	
  
                    However,   no such minimum allocation shall be required in this Plan for any Employee   who participates in another defined contribution plan subject to Code   Section 412 included with this Plan in a Required Aggregation Group.
  

20

	
  
 
  	
  
          (i)        For purposes of the minimum allocations set   forth above, the percentage allocated to the Participant’s Account of any Key   Employee shall be equal to the ratio of the sum of the Employer contributions   and Forfeitures allocated on behalf of such Key Employee divided by the “415   Compensation” for such Key Employee.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (j)        For any Top Heavy Plan Year, the minimum   allocations set forth above shall be allocated to the Participant’s Account   of all Employees who are Participants and who are employed by the Employer on   the last day of the Plan Year, including Employees who have (1) failed to   complete a Year of Service; and (2) declined to make mandatory   contributions (if required) to the Plan.
  
	
   
  	
  
 
  
	
  
 
  	
  
          (k)        For the purposes of this Section, “415   Compensation” in excess of $150,000 (or such other amount provided in the   Code) shall be disregarded. Such amount shall be adjusted for increases in   the cost of living in accordance with Code Section 401(a)(17)(B), except   that the dollar increase in effect on January 1 of any calendar year shall be   effective for the Plan Year beginning with or within such calendar year. If   “415 Compensation” for any prior determination period is taken into account   in determining a Participant’s minimum benefit for the current Plan Year, the   “415 Compensation” for such determination period is subject to the applicable   annual “415 Compensation” limit in effect for that prior period. For this   purpose, in determining the minimum benefit in Plan Years beginning on or   after January
1, 1989, the annual “415 Compensation” limit in effect for   determination periods beginning before that date is $200,000 (or such other   amount as adjusted for increases in the cost of living in accordance with   Code Section 415(d) for determination periods beginning on or after   January 1, 1989, and in accordance with Code Section 401(a)(17)(B) for   determination periods beginning on or after January 1, 1994). For   determination periods beginning prior to January 1, 1989, the $200,000   limit shall apply only for Top Heavy Plan Years and shall not be adjusted.   For any short Plan Year the “415 Compensation” limit shall be an amount equal   to the “415 Compensation” limit for the calendar year in which the Plan Year   begins multiplied by the ratio obtained by dividing the number of full months   in the short Plan Year by twelve (12).
  
	
  
 
  	
  
 
  
	
   
  	
  
          (l)        Notwithstanding anything in this Section to the   contrary, all information necessary to properly reflect a given transaction   may not be available until after the date specified herein for processing   such transaction, in which case the transaction will be reflected when such   information is received and processed. Subject to express limits that may be   imposed under the Code, the processing of any contribution, distribution or   other transaction may be delayed for any legitimate business reason   (including, but not limited to, failure of systems or computer programs,   failure of the means of the transmission of data, force majeure, the failure   of a service provider to timely receive values or prices, and the correction   for errors or omissions or the errors or omissions of any service provider).   The processing date of a transaction will be binding for all
purposes of the   Plan.
  

21

4.4     MAXIMUM ANNUAL ADDITIONS

	
  
 
  	
  
          (a)        Notwithstanding the foregoing, the maximum   “annual additions” credited to a Participant’s accounts for any “limitation   year” shall equal the lesser of: (1) $40,000 adjusted annually as   provided in Code Section 415(d) pursuant to the Regulations, or   (2) one-hundred percent (100%) of the Participant’s “415 Compensation”   for such “limitation year.” If the Employer contribution that would otherwise   be contributed or allocated to the Participant’s accounts would cause the   “annual additions” for the “limitation year” to exceed the maximum “annual   additions,” the amount contributed or allocated will be reduced so that the   “annual additions” for the “limitation year” will equal the maximum “annual   additions,” and any amount in
excess of the maximum “annual additions,” which   would have been allocated to such Participant may be allocated to other   Participants. For any short “limitation year,” the dollar limitation in (1)   above shall be reduced by a fraction, the numerator of which is the number of   full months in the short “limitation year” and the denominator of which is   twelve (12).
  
	
   
  	
  
 
  
	
  
 
  	
  
          (b)        For purposes of applying the limitations of   Code Section 415, “annual additions” means the sum credited to a   Participant’s accounts for any “limitation year” of (1) Employer   contributions, (2) Employee contributions, (3) forfeitures, (4) amounts   allocated, after March 31, 1984, to an individual medical account,   as defined in Code Section 415(l)(2) which is part of a pension or   annuity plan maintained by the Employer, (5) amounts derived from   contributions paid or accrued after December 31, 1985, in taxable   years ending after such date, which are attributable to post-retirement   medical benefits allocated to the separate account of a key employee (as   defined in Code Section 419A(d)(3)) under a welfare benefit plan (as   defined in Code Section 419(e)) maintained
by the Employer and   (6) allocations under a simplified employee pension plan. Except,   however, the “415 Compensation” percentage limitation referred to in   paragraph (a)(2) above shall not apply to: (1) any contribution for   medical benefits after separation from service (within the meaning of Code   Sections 401(h) or 419A(f)(2)) which is otherwise treated as an “annual   addition,” or (2) any amount otherwise treated as an “annual addition”   under Code Section 415(l)(1).
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (c)     For   purposes of applying the limitations of Code Section 415, the transfer   of funds from one qualified plan to another is not an “annual addition.” In   addition, the following are not Employee contributions for the purposes of   Section 4.4(b): (1) rollover contributions (as defined in Code   Sections 402(c), 403(a)(4), 403(b)(8), 408(d)(3) and 457(e)(16));   (2) repayments of loans made to a Participant from the Plan;   (3) repayments of distributions received by an Employee pursuant to Code   Section 411(a)(7)(B) (cash-outs); (4) repayments of distributions   received by an Employee pursuant to Code Section 411(a)(3)(D) (mandatory   contributions); and (5) Employee contributions to a simplified employee   pension excludable from gross income under Code Section 408(k)(6).
  
	
   
  	
  
 
  
	
  
 
  	
  
          (d)        For purposes of applying the limitations of   Code Section 415, the “limitation year” shall be the Plan Year.
  

22

	
  
 
  	
  
          (e)        For the purpose of this Section, all qualified   defined contribution plans (whether terminated or not) ever maintained by the   Employer shall be treated as one defined contribution plan.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (f)        For the purpose of this Section, if the   Employer is a member of a controlled group of corporations, trades or   businesses under common control (as defined by Code Section 1563(a) or   Code Section 414(b) and (c) as modified by Code Section 415(h)), is   a member of an affiliated service group (as defined by Code   Section 414(m)), or is a member of a group of entities required to be aggregated   pursuant to Regulations under Code Section 414(o), all Employees of such   Employers shall be considered to be employed by a single Employer.
  
	
   
  	
  
 
  
	
  
 
  	
  
          (g)     If   this is a plan described in Code Section 413(c) (other than a plan   described in Code Section 413(f)), then all of the benefits or   contributions attributable to a Participant from all of the Employers   maintaining this Plan shall be taken into account in applying the limits of   this Section with respect to such Participant. Furthermore, in applying the   limitations of this Section with respect to such a Participant, the total   “415 Compensation” received by the Participant from all of the Employers   maintaining the Plan shall be taken into account.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (h)(1)  If   a Participant participates in more than one defined contribution plan   maintained by the Employer which have different Anniversary Dates, the   maximum “annual additions” under this Plan shall equal the maximum “annual   additions” for the “limitation year” minus any “annual additions” previously   credited to such Participant’s accounts during the “limitation year.”
  
	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
(2)     If   a Participant participates in both a defined contribution plan subject to   Code Section 412 and a defined contribution plan not subject to Code   Section 412 maintained by the Employer which have the same Anniversary   Date, “annual additions” will be credited to the Participant’s accounts under   the defined contribution plan subject to Code Section 412 prior to   crediting “annual additions” to the Participant’s accounts under the defined   contribution plan not subject to Code Section 412.
  
	
   
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
(3)     If   a Participant participates in more than one defined contribution plan not   subject to Code Section 412 maintained by the Employer which have the   same Anniversary Date, the maximum “annual additions” under this Plan shall   equal the product of (A) the maximum “annual additions” for the   “limitation year” minus any “annual additions” previously credited under   subparagraphs (1) or (2) above, multiplied by (B) a fraction   (i) the numerator of which is the “annual additions” which would be   credited to such Participant’s accounts under this Plan without regard to the   limitations of Code Section 415 and (ii) the denominator of which   is such “annual additions” for all plans described in this subparagraph.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
          (i)     Notwithstanding   anything contained in this Section to the contrary, the limitations,   adjustments and other requirements prescribed in this Section shall at all times   comply with the provisions of Code Section 415 and the Regulations   thereunder.
  

23

4.5     ADJUSTMENT FOR EXCESSIVE ANNUAL ADDITIONS

	
  
 
  	
  
          (a)     If,   as a result of the allocation of Forfeitures, a reasonable error in   estimating a Participant’s Compensation, a reasonable error in determining   the amount of elective deferrals (within the meaning of Code   Section 402(g)(3)) that may be made with respect to any Participant   under the limits of Section 4.4 or other facts and circumstances to   which Regulation 1.415-6(b)(6) shall be applicable, the “annual   additions” under this Plan would cause the maximum “annual additions” to be   exceeded for any Participant, the “excess amount” will be disposed of in one   of the following manners, as uniformly determined by the Administrator for   all Participants similarly situated.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
(1)     If   the Participant is covered by the Plan at the end of the “limitation year,”   then the “excess amount” will be used to reduce the Employer contribution   (including allocation of any Forfeitures) for such Participant in the next   “limitation year,” and each succeeding “limitation year” if necessary;
  
	
   
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
(2)     If,   after the application of subparagraph (1) above, an “excess amount” still   exists, and the Participant is not covered by the Plan at the end of the   “limitation year,” then the “excess amount” will be held unallocated in a   “Section 415 suspense account.” The “Section 415 suspense account”   will be applied to reduce future Employer contributions (including allocation   of any Forfeitures) for all remaining Participants in the next “limitation   year,” and each succeeding “limitation year” if necessary;
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
(3)     If   a “Section 415 suspense account” is in existence at any time during the   “limitation year” pursuant to this Section, it will not participate in the   allocation of investment gains and losses of the Trust Fund. If a   “Section 415 suspense account” is in existence at any time during a   particular “limitation year,” all amounts in the “Section 415 suspense   account” must be allocated and reallocated to Participants’ accounts before   any Employer contributions or any Employee contributions may be made to the   Plan for that “limitation year.” “Excess amounts” may not be distributed to   Participants or Former Participants.
  
	
   
  	
  
 
  	
  
 
  
	
  
 
  	
  
          (b)     For   purposes of this Article, “excess amount” for any Participant for a   “limitation year” shall mean the excess, if any, of (1) the “annual   additions” which would be credited to the Participant’s account under the   terms of the Plan without regard to the limitations of Code Section 415   over (2) the maximum “annual additions” determined pursuant to   Section 4.4.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (c)     For   purposes of this Section, “Section 415 suspense account” shall mean an   unallocated account equal to the sum of “excess amounts” for all Participants   in the Plan during the “limitation year.”
  

24

4.6     PLAN-TO-PLAN TRANSFERS FROM QUALIFIED PLANS

	
  
 
  	
  
          (a)     With   the consent of the Administrator, amounts may be transferred (within the   meaning of Code Section 414(l)) to this Plan from other tax qualified   plans under Code Section 401(a) by Eligible Employees, provided that the   trust from which such funds are transferred permits the transfer to be made   and the transfer will not jeopardize the tax exempt status of the Plan or   Trust or create adverse tax consequences for the Employer. Prior to accepting   any transfers to which this Section applies, the Administrator may require an   opinion of counsel that the amounts to be transferred meet the requirements   of this Section. The amounts transferred shall be set up in a separate   account herein referred to as a Participant’s Transfer Account. Furthermore,   for vesting purposes, the Participant’s portion of the Participant’s Transfer   Account
attributable to any transfer shall be subject to Section 7.4(b).
  
	
   
  	
  
 
  
	
  
 
  	
  
                    Except   as permitted by Regulations (including Regulation 1.411(d)-4), amounts   attributable to elective contributions (as defined in   Regulation 1.401(k)-1(g)(3)), including amounts treated as elective   contributions, which are transferred from another qualified plan in a   plan-to-plan transfer (other than a direct rollover) shall be subject to the   distribution limitations provided for in Regulation 1.401(k)-1(d).
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (b)     Amounts   in a Participant’s Transfer Account shall be held by the Trustee pursuant to   the provisions of this Plan and may not be withdrawn by, or distributed to   the Participant, in whole or in part, except as provided in Section 7.9   and paragraph (c) of this Section. The Trustee shall have no duty or   responsibility to inquire as to the propriety of the amount, value or type of   assets transferred, nor to conduct any due diligence with respect to such   assets; provided, however, that such assets are otherwise eligible to be held   by the Trustee under the terms of this Plan.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (c)     At   Normal Retirement Date, or such other date when the Participant or the   Participant’s Beneficiary shall be entitled to receive benefits, the   Participant’s Transfer Account shall be used to provide additional benefits   to the Participant or the Participant’s Beneficiary. Any distributions of   amounts held in a Participant’s Transfer Account shall be made in a manner   which is consistent with and satisfies the provisions of Section 7.5,   including, but not limited to, all notice and consent requirements of Code   Section 411(a)(11) and the Regulations thereunder. Furthermore, such   amounts shall be considered as part of a Participant’s benefit in determining   whether an involuntary cash-out of benefits may be made without Participant   consent.
  
	
   
  	
  
 
  
	
  
 
  	
  
          (d)     The   Administrator may direct that Employee transfers made after a Valuation Date   be segregated into a separate account for each Participant until such time as   the allocations pursuant to this Plan have been made, at which time they may   remain segregated or be invested as part of the general Trust Fund.
  

25

	
  
 
  	
  
          (e)     This   Plan shall not accept any direct or indirect transfers (as that term is   defined and interpreted under Code Section 401(a)(11) and the   Regulations thereunder) from a defined benefit plan, money purchase plan   (including a target benefit plan), stock bonus or profit sharing plan which   would otherwise have provided for a life annuity form of payment to the   Participant.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (f)     Notwithstanding   anything herein to the contrary, a transfer directly to this Plan from   another qualified plan (or a transaction having the effect of such a transfer)   shall only be permitted if it will not result in the elimination or reduction   of any “Section 411(d)(6) protected benefit” as described in   Section 9.1.
  

	
  
 
  	
  
Regulations   thereunder) from a defined benefit plan, money purchase plan (including a   target benefit plan), stock bonus or profit sharing plan which would   otherwise have provided for a life annuity form of payment to the   Participant.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (f)     Notwithstanding   anything herein to the contrary, a transfer directly to this Plan from   another qualified plan (or a transaction having the effect of such a   transfer) shall only be permitted if it will not result in the elimination or   reduction of any “Section 411(d)(6) protected benefit” as described in   Section 9.1.
  

4.7          ROLLOVERS FROM OTHER PLANS

	
  
 
  	
  
          (a)     With   the consent of the Administrator, the Plan may accept a “rollover” by   Eligible Employees, provided the “rollover” will not jeopardize the   tax-exempt status of the Plan or create adverse tax consequences for the   Employer. Prior to accepting any “rollovers” to which this Section applies,   the Administrator may require the Employee to establish (by providing an   opinion of counsel, or otherwise) that the amounts to be rolled over to this   Plan meet the requirements of this Section. The amounts rolled over shall be   set up in a separate account herein referred to as a Participant’s Rollover   Account. Such account shall be fully Vested at all times and shall not be   subject to Forfeiture for any reason.
  
	
   
  	
  
 
  
	
  
 
  	
  
          (b)     Amounts   in a Participant’s Rollover Account shall be held by the Trustee pursuant to   the provisions of this Plan and may not be withdrawn by, or distributed to the   Participant, in whole or in part, except as provided in Section 7.9 and   paragraph (c) of this Section. The Trustee shall have no duty or   responsibility to inquire as to the propriety of the amount, value or type of   assets transferred, nor to conduct any due diligence with respect to such   assets; provided, however, that such assets are otherwise eligible to be held   by the Trustee under the terms of this Plan.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (c)     At   such date when the Participant or the Participant’s Beneficiary shall be entitled   to receive benefits, the Participant’s Rollover Account shall be used to   provide additional benefits to the Participant or the Participant’s   Beneficiary. Furthermore, amounts in the Participant’s Rollover Account shall   not be considered as part of a Participant’s benefit in determining whether   an involuntary cash-out of benefits may be made without Participant consent.   Any distributions of amounts held in a Participant’s Rollover Account shall   be made in a manner which is consistent with and satisfies the provisions of   Section 7.5, including, but not limited to, all notice and consent   requirements of Code Section 411(a)(11) and the Regulations thereunder.
  
	
   
  	
  
 
  
	
  
 
  	
  
          (d)     The   Administrator may direct that Employee “rollovers” made after a Valuation   Date be segregated into a separate account for each Participant until such   time as the allocations pursuant to this Plan have been made, at which time   they may remain segregated or be invested as part of the general Trust Fund.
  

26

	
  
 
  	
  
          (e)     For   purposes of this Section the following definitions shall apply:
  
	
  
 
  	
  
 
  
	
  
 
  	
  
(1)     A   “rollover” means: (i) amounts transferred to this Plan directly from   another “eligible retirement plan;” (ii) distributions received by an   Employee from other “eligible retirement plans” which are eligible for   tax-free rollover to an “eligible retirement plan” and which are transferred   by the Employee to this Plan within sixty (60) days following receipt   thereof; (iii) amounts transferred to this Plan from a conduit   individual retirement account provided that the conduit individual retirement   account has no assets other than assets which (A) were previously   distributed to the Employee by another “eligible retirement plan,”   (B) were eligible for tax-free rollover to an “eligible retirement plan”   and (C) were deposited in such conduit individual retirement account   within sixty (60) days of receipt thereof;
(iv) amounts distributed   to the Employee from a conduit individual retirement account meeting the   requirements of clause (iii) above, and transferred by the Employee to this   Plan within sixty (60) days of receipt thereof from such conduit   individual retirement account; and (v) any other amounts which are   eligible to be rolled over to this Plan pursuant to the Code.
  
	
   
  	
  
 
  
	
  
 
  	
  
(2)     An   “eligible retirement plan” means an individual retirement account described   in Code Section 408(a), an individual retirement annuity described in   Code Section 408(b) (other than an endowment contract), a qualified   trust (an employees’ trust described in Code Section 401(a) which is   exempt from tax under Code Section 501(a)), an annuity plan described in   Code Section 403(a), an eligible deferred compensation plan described in   Code Section 457(b) which is maintained by an eligible employer   described in Code Section 457(e)(1)(A), and an annuity contract   described in Code Section 403(b).
  

4.8     DIRECTED INVESTMENT ACCOUNT

	
  
 
  	
  
          (a)     Each   “Qualified Participant” may elect within ninety (90) days after the close of   each Plan Year during the “Qualified Election Period” to direct the Trustee   in writing as to the distribution in cash and/or Company Stock of 25 percent   of the total number of shares of Company Stock acquired by or contributed to   the Plan that have ever been allocated to such “Qualified Participant’s”   Company Stock Account (reduced by the number of shares of Company Stock   previously distributed in cash and/or Company Stock pursuant to a prior   election). In the case of the election year in which the last election can be   made by the Participant, the preceding sentence shall be applied by   substituting “50 percent” for “25 percent.” If the “Qualified Participant”   elects to direct the Trustee as to the
distribution of the Participant’s   Company Stock Account, such direction shall be effective no later than 180   days after the close of the Plan Year to which such direction applies.
  
	
   
  	
  
 
  
	
  
 
  	
  

                    

Notwithstanding the above, if the fair market value (determined pursuant to
Section 6.1 at the Plan Valuation Date immediately preceding the first day
on which a Qualified Participant is eligible to make an election) of Company
Stock acquired by or contributed to the Plan and allocated to a Qualified
Participant s Company Stock Account is $500 or less, then such Company Stock
shall not be subject to this paragraph. For purposes of determining whether the
fair market value exceeds $500, Company Stock held in accounts of all employee
stock ownership plans (as defined in Code Section 4975(e)(7)) and tax
credit employee stock ownership plans (as defined in Code Section 409(a))
maintained by the Employer or any Affiliated Employer shall be considered as
held by the Plan.

 
 

27

	
  
 
  	
  
day on which   a “Qualified Participant” is eligible to make an election) of Company Stock   acquired by or contributed to the Plan and allocated to a “Qualified   Participant’s” Company Stock Account is $500 or less, then such Company Stock   shall not be subject to this paragraph. For purposes of determining whether   the fair market value exceeds $500, Company Stock held in accounts of all   employee stock ownership plans (as defined in Code Section 4975(e)(7))   and tax credit employee stock ownership plans (as defined in Code   Section 409(a)) maintained by the Employer or any Affiliated Employer   shall be considered as held by the Plan.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (b)     For   the purposes of this Section the following definitions shall apply:
  
	
   
  	
  
 
  
	
  
 
  	
  
(1)        “Qualified Participant” means any Participant   or Former Participant who has completed ten (10) Years of Service as a   Participant and has attained age 55.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
(2)        “Qualified Election Period” means the six (6)   Plan Year period beginning with the first Plan Year in which the Participant   first became a “Qualified Participant.”
  

4.9     QUALIFIED MILITARY SERVICE

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

ARTICLE V
 FUNDING AND INVESTMENT POLICY

5.1     INVESTMENT POLICY

	
  
 
  	
  
          (a)     The   Plan is designed to invest primarily in Company Stock.
  
	
   
  	
  
 
  
	
  
 
  	
  
          (b)     With   due regard to subparagraph (a) above, the Administrator may also direct   the Trustee to invest funds under the Plan in other property described in the   Trust or in life insurance policies to the extent permitted by   subparagraph (c) below, or the Trustee may hold such funds in cash or cash   equivalents.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (c)     With   due regard to subparagraph (a) above, the Administrator may also direct   the Trustee to invest funds under the Plan in insurance policies on the life   of any “keyman” Employee. The proceeds of a “keyman” insurance policy may not   be used for the repayment of any indebtedness owed by the Plan which is   secured by Company Stock. In the event any “keyman” insurance is purchased by   the Trustee, the premiums paid thereon during any Plan Year, net of any   policy dividends and increases in cash surrender values, shall be treated as   the cost of Plan investment and any death benefit or cash surrender value   received shall be treated as proceeds from an investment of the Plan.
  

28

	
   
  	
  
          (d)     The   Plan may not obligate itself to acquire Company Stock from a particular   holder thereof at an indefinite time determined upon the happening of an   event such as the death of the holder.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (e)     The   Plan may not obligate itself to acquire Company Stock under a put option   binding upon the Plan. However, at the time a put option is exercised, the   Plan may be given an option to assume the rights and obligations of the   Employer under a put option binding upon the Employer.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (f)     All   purchases of Company Stock shall be made at a price which, in the judgment of   the Administrator, does not exceed the fair market value thereof. All sales   of Company Stock shall be made at a price which, in the judgment of the   Administrator, is not less than the fair market value thereof. The valuation   rules set forth in Article VI shall be applicable.
  

5.2     TRANSACTIONS INVOLVING COMPANY STOCK

	
   
  	
  
          (a)     No   portion of the Trust Fund attributable to (or allocable in lieu of) Company   Stock acquired by the Plan in a sale to which Code Section 1042 applies   may accrue or be allocated directly or indirectly under any plan maintained   by the Employer meeting the requirements of Code Section 401(a):
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
          (1)     during   the “Nonallocation Period,” for the benefit of
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
(i)     any   taxpayer who makes an election under Code Section 1042(a) with respect   to Company Stock,
  
	
  
 
  	
  
 
  	
  
 
  
	
   
  	
  
 
  	
  
(ii)     any   individual who is related to the taxpayer (within the meaning of Code   Section 267(b)), or
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
          
(2)     for   the benefit of any other person who owns (after application of Code   Section 318(a) applied without regard to the employee trust exception in   Code Section 318(a)(2)(B)(i)) more than 25 percent of
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
(i)     any   class of outstanding stock of the Employer or Affiliated Employer which   issued such Company Stock, or
  
	
  
 
  	
  
 
  	
  
 
  
	
   
  	
  
 
  	
  
(ii)     the   total value of any class of outstanding stock of the Employer or Affiliated   Employer.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
          (b)     Except,   however, subparagraph (a)(1)(ii) above shall not apply to lineal   descendants of the taxpayer, provided that the aggregate amount allocated to   the benefit of all such lineal descendants during the “Nonallocation Period”   does not exceed more than five (5) percent of the Company Stock (or amounts   allocated in lieu thereof) held by the Plan which are attributable to a sale   to the Plan by any person related to such descendants (within the meaning of   Code Section 267(c)(4)) in a transaction to which Code Section 1042   is applied.
  

29

	
  
 
  	
  
          (c)     A   person shall be treated as failing to meet the stock ownership limitation   under paragraph (a)(2) above if such person fails such limitation:
  
	
   
  	
  
 
  
	
  
 
  	
  
          (1)     at   any time during the one (1) year period ending on the date of sale of   Company Stock to the Plan, or
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (2)     on   the date as of which Company Stock is allocated to Participants in the Plan.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (d)     For   purposes of this Section, “Nonallocation Period” means the period beginning   on the date of the sale of the Company Stock and ending on the date which is   ten (10) years after the date of sale.
  

ARTICLE VI
 VALUATIONS

6.1     VALUATION OF THE TRUST FUND

                    The Administrator shall direct the Trustee, as of each Valuation Date, to determine the net worth of the assets comprising the Trust Fund as it exists on the Valuation Date. In determining such net worth, the Trustee shall value the assets comprising the Trust Fund at their fair market value (or their contractual value in the case of a Contract or Policy) as of the Valuation Date and shall deduct all expenses for which the Trustee has not yet obtained reimbursement from the Employer or the Trust Fund.

6.2     METHOD OF VALUATION

                    Valuations must be made in good faith and based on all relevant factors for determining the fair market value of securities. In the case of a transaction between a Plan and a disqualified person, value must be determined as of the date of the transaction. For all other Plan purposes, value must be determined as of the most recent Valuation Date under the Plan. An independent appraisal will not in itself be a good faith determination of value in the case of a transaction between the Plan and a disqualified person. However, in other cases, a determination of fair market value based on at least an annual appraisal independently arrived at by a person who customarily makes such appraisals and who is independent of any party to the transaction will be deemed to be a good faith determination of value. Company Stock not readily tradeable on an
established securities market shall be valued by an independent appraiser meeting requirements similar to the requirements of the Regulations prescribed under Code Section 170(a)(1).

ARTICLE VII
 DETERMINATION AND DISTRIBUTION OF BENEFITS

7.1     DETERMINATION OF BENEFITS UPON RETIREMENT

                    Every Participant may terminate employment with the Employer and retire for the purposes hereof on the Participant’s Normal Retirement Date. However, a Participant may postpone the termination of employment with the Employer to a later date, in which event the participation of such Participant in the Plan, including the right to receive allocations pursuant to 

30

Section 4.3, shall continue until such Participant’s Late Retirement Date. Upon a Participant’s Retirement Date or attainment of Normal Retirement Date without termination of employment with the Employer, or as soon thereafter as is practicable, the Trustee shall distribute, at the election of the Participant, all amounts credited to such Participant’s Account in accordance with Sections 7.5 and 7.6.

7.2     DETERMINATION OF BENEFITS UPON DEATH

	
  
 
  	
  
          (a)     Upon   the death of a Participant before the Participant’s Retirement Date or other   termination of employment, all amounts credited to such Participant’s Account   shall become fully Vested. If elected, distribution of the Participant’s   Account shall commence not later than one (1) year after the close of the   Plan Year in which such Participant’s death occurs. The Administrator shall   direct the Trustee, in accordance with the provisions of Sections 7.5   and 7.6, to distribute the value of the deceased Participant’s accounts to   the Participant’s Beneficiary.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (b)     Upon   the death of a Former Participant, the Administrator shall direct the   Trustee, in accordance with the provisions of Sections 7.5 and 7.6, to   distribute any remaining Vested amounts credited to the accounts of a   deceased Former Participant to such Former Participant’s Beneficiary.
  
	
  
 
  	
  
 
  
	
   
  	
  
          (c)     The   Administrator may require such proper proof of death and such evidence of the   right of any person to receive payment of the value of the account of a   deceased Participant or Former Participant as the Administrator may deem   desirable. The Administrator’s determination of death and of the right of any   person to receive payment shall be conclusive.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (d)     The   Beneficiary of the death benefit payable pursuant to this Section shall be   the Participant’s spouse. Except, however, the Participant may designate a   Beneficiary other than the spouse if:
  
	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
(1)     the   spouse has waived the right to be the Participant’s Beneficiary, or
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
(2)     the   Participant is legally separated or has been abandoned (within the meaning of   local law) and the Participant has a court order to such effect (and there is   no “qualified domestic relations order” as defined in Code   Section 414(p) which provides otherwise), or
  
	
   
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
(3)     the   Participant has no spouse, or
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
(4)     the   spouse cannot be located.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
                    In   such event, the designation of a Beneficiary shall be made on a form   satisfactory to the Administrator. A Participant may at any time revoke a   designation of a Beneficiary or change a Beneficiary by filing written (or in   such other form as permitted by the Internal Revenue Service) notice of such   revocation or change with the Administrator. However, the Participant’s   spouse 
  

31

	
  
 
  	
  
must again   consent in writing (or in such other form as permitted by the Internal   Revenue Service) to any change in Beneficiary unless the original consent   acknowledged that the spouse had the right to limit consent only to a   specific Beneficiary and that the spouse voluntarily elected to relinquish   such right.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (e)     In   the event no valid designation of Beneficiary exists, or if the Beneficiary   is not alive at the time of the Participant’s death, the death benefit will   be paid in the following order of priority to:
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (1)     the   Participant’s surviving spouse;
  
	
  
 
  	
  
 
  
	
   
  	
  
          (2)     the   Participant’s children, including adopted children, per stirpes;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (3)     the   Participant’s surviving parents in equal shares; or
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (4)     the   Participant’s estate.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
                    If   the Beneficiary does not predecease the Participant, but dies prior to   distribution of the death benefit, the death benefit will be paid to the   Beneficiary’s estate.
  
	
  
 
  	
  
 
  
	
   
  	
  
          (f)     Notwithstanding   anything in this Section to the contrary, if a Participant has designated the   spouse as a Beneficiary, then a divorce decree or a legal separation that   relates to such spouse shall revoke the Participant’s designation of the   spouse as a Beneficiary unless the decree or a qualified domestic relations   order (within the meaning of Code Section 414(p)) provides otherwise.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (g)     Any   consent by the Participant’s spouse to waive any rights to the death benefit   must be in writing (or in such other form as permitted by the Internal   Revenue Service), must acknowledge the effect of such waiver, and be   witnessed by a Plan representative or a notary public. Further, the spouse’s   consent must be irrevocable and must acknowledge the specific nonspouse Beneficiary.
  

7.3     DETERMINATION OF BENEFITS IN EVENT OF DISABILITY

                    In the event of a Participant’s Total and Permanent Disability prior to the Participant’s Retirement Date or other termination of employment, all amounts credited to such Participant’s Account shall become fully Vested. In the event of a Participant’s Total and Permanent Disability, the Administrator, in accordance with the provisions of Sections 7.5 and 7.6, shall direct the distribution to such Participant of all Vested amounts credited to such Participant’s Account. If such Participant elects, distribution shall commence not later than one (1) year after the close of the Plan Year in which Total and Permanent Disability occurs.

7.4     DETERMINATION OF BENEFITS UPON TERMINATION

	
  
 
  	
  
          (a)     If   a Participant’s employment with the Employer is terminated for any reason   other than death, Total and Permanent Disability or retirement, then such   Participant shall be entitled to such benefits as are provided hereinafter   pursuant to this Section 7.4.
  

32

	
  
 
  	
  
                    If   a portion of a Participant’s Account is forfeited, Company Stock allocated to   the Participant’s Company Stock Account must be forfeited only after the   Participant’s Other Investments Account has been depleted. If interest in   more than one class of Company Stock has been allocated to a Participant’s   Account, the Participant must be treated as forfeiting the same proportion of   each such class.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
                    Distribution   of the funds due to a Terminated Participant shall be made on the occurrence   of an event which would result in the distribution had the Terminated   Participant remained in the employ of the Employer (upon the Participant’s   death, Total and Permanent Disability or Normal Retirement). However, at the   election of the Participant, the Administrator shall direct the Trustee that   the entire Vested portion of the Terminated Participant’s Account to be   payable to such Terminated Participant as soon as administratively feasible   after termination of employment. Any distribution under this paragraph shall   be made in a manner which is consistent with and satisfies the provisions of   Section 7.5 and 7.6, including, but not limited to, all notice and   consent requirements of Code Section 411(a)(11) and the
Regulations   thereunder.
  
	
   
  	
  
 
  
	
  
 
  	
  
                    If   the value of a Terminated Participant’s Vested benefit derived from Employer   and Employee contributions does not exceed $5,000, then the Administrator   shall direct the Trustee to cause the entire Vested benefit to be paid to   such Participant in a single lump sum as soon as administratively feasible   after termination of employment.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (b)     The   Vested portion of any Participant’s Account shall be a percentage of the   total amount credited to the Participant’s Account determined on the basis of   the Participant’s number of Years of Service according to the following   schedule:
  

Vesting Schedule

	
  
Years of   Service
  	
   
 	
  
Percentage
  	
   
 
	
  
	
   
 	
  

  	
   
 
	
  Less than 3
  	
  
 
  	
  
 
  	
  
0
  	
  
%
  
	
  
3
  	
  
 
  	
  
 
  	
  
100
  	
  
%
  
	
  
 
  	
  
 
  	
  
 
  	
   
 	
  
 
  

	
  
 
  	
  
          (c)     Notwithstanding   the vesting schedule above, upon the complete discontinuance of the Employer   contributions to the Plan or upon any full or partial termination of the   Plan, all amounts then credited to the account of any affected Participant   shall become 100% Vested and shall not thereafter be subject to Forfeiture.
  
	
   
  	
   
  
	
   
  	
            (d)     The   computation of a Participant’s nonforfeitable percentage of such   Participant’s interest in the Plan shall not be reduced as the result of any   direct or indirect amendment to this Plan. In the event that the Plan is   amended to change or modify any vesting schedule, or if the Plan is amended   in any way that
  

33

7.5     DISTRIBUTION OF BENEFITS

	
  
 
  	
  
          (a)     The   Administrator, pursuant to the election of the Participant, shall direct the   Trustee to distribute to a Participant or such Participant’s Beneficiary any   amount to which the Participant is entitled under the Plan in one or more of   the following methods:
  

	
  
 
  	
  
(1)     One   lump-sum payment.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
(2)     For   purposes of Sections 7.5(e) and 7.5(f), payments over a period certain   in monthly, quarterly, semiannual, or annual installments. The period over which   such payment is to be made shall not extend beyond the earlier of the   Participant’s life expectancy (or the joint life expectancy of the   Participant and the Participant’s “designated Beneficiary”).
  

	
  
 
  	
  
          (b)     Any   distribution to a Participant who has a benefit which exceeds $5,000, shall   require such Participant’s written (or in such other form as permitted by the   Internal Revenue Service) consent if such distribution commences prior to the   time the benefit is “immediately distributable.” A benefit is “immediately   distributable” if any part of the benefit could be distributed to the   Participant (or surviving spouse) before the Participant attains (or would   have attained if not deceased) the later of the Participant’s Normal   Retirement Age or age 62. With regard to this required consent:
  

	
  
 
  	
  
(1)     The   Participant must be informed of the right to defer receipt of the   distribution. If a Participant fails to consent, it shall be deemed an   election to defer the commencement of payment of any benefit. However, any   election to defer the receipt of benefits shall not apply with respect to   distributions which are required under Section 7.5(e).
  

34

	
  
 
  	
  
(2)     Notice   of the rights specified under this paragraph shall be provided no less than   thirty (30) days and no more than ninety (90) days before the date   the distribution commences.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
(3)     Written   (or such other form as permitted by the Internal Revenue Service) consent of   the Participant to the distribution must not be made before the Participant   receives the notice and must not be made more than ninety (90) days   before the date the distribution commences.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
(4)     No   consent shall be valid if a significant detriment is imposed under the Plan   on any Participant who does not consent to the distribution.
  

	
   
  	
  
                    Any   such distribution may commence less than thirty (30) days after the   notice required under Regulation 1.411(a)-11(c) is given, provided that:   (1) the Administrator clearly informs the Participant that the   Participant has a right to a period of at least thirty (30) days after   receiving the notice to consider the decision of whether or not to elect a   distribution (and, if applicable, a particular distribution option), and   (2) the Participant, after receiving the notice, affirmatively elects a   distribution.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (c)     Notwithstanding   anything herein to the contrary, the Administrator may direct that cash   dividends on shares of Company Stock allocable to Participants’ Company Stock   Accounts be:
  

	
  
 
  	
  
(1)     Paid   by the Employer directly in cash to the Participants in the Plan or their   Beneficiaries.
  
	
  
 
  	
  
 
  
	
   
  	
  
(2)     Paid   to the Plan and distributed in cash to Participants in the Plan or their   Beneficiaries no later than ninety (90) days after the close of the Plan   Year in which paid.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
(3)     At   the election of Participants or their Beneficiaries, paid in accordance with   paragraph (1) or (2) above, or paid to the Plan and reinvested in   Company Stock; provided, however, that if cash dividends are reinvested in   Company Stock, then Company Stock allocated to the Participant’s Company   Stock Account shall have a fair market value not less than the amount of cash   dividends which would have been allocated to such Participant’s Other   Investment Account for the year.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
(4)     Allocated   to Participants’ Other Investment Accounts.
  

	
  
 
  	
  
          (d)     Any   part of a Participant’s benefit which is retained in the Plan after the   Anniversary Date on which the Participant’s participation ends will continue   to be treated as a Company Stock Account or as an Other Investments Account   (subject to Section 7.4(a)) as provided in Article IV. However,   neither account will be credited with any further Employer contributions or   Forfeitures.
  

35

	
  
 
  	
  
          (e)     Notwithstanding   any provision in the Plan to the contrary, the distribution of a   Participant’s benefits will be made in accordance with the following   requirements and will otherwise comply with Code Section 401(a)(9) and   the Regulations thereunder, the provisions of which are incorporated herein   by reference:
  

	
  
 
  	
  
(1)     A   Participant’s benefits will be distributed not later than April 1st of   the calendar year following the later of (i) the calendar year in which   the Participant attains age 70 1/2 or (ii) the calendar year in   which the Participant retires, provided, however, that this clause (ii)   shall not apply in the case of a Participant who is a “five (5) percent   owner” at any time during the Plan Year ending with or within the calendar   year in which such owner attains age 70 1/2. Such distribution shall be   equal to or greater than any required distribution.
  
	
  
 
  	
  
 
  
	
   
  	
  
Alternatively,   distributions to a Participant must begin no later than the applicable   April 1st as determined above and must be made over a period certain   measured by the Life Expectancy of the Participant (or joint Life   Expectancies of the Participant and the Participant’s “designated   Beneficiary”) in accordance with Regulations. Such distributions will be   equal to or greater than any required distribution.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
(2)     Distributions   to a Participant and the Participant’s Beneficiaries will only be made in   accordance with the incidental death benefit requirements of Code   Section 401(a)(9)(G) and the Regulations thereunder.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
(3)     Unless   the Participant’s interest is distributed in a single sum on or before the   required beginning date specified in (1) above, the minimum amount that will   be distributed for each Distribution Calendar Year (including the first   Distribution Calendar Year and the Distribution Calendar Year that includes   the Participant’s date of death) is the lesser of:
  

	
   
  	
  
(i)        the quotient obtained by dividing the Participant’s Account Balance by the   distribution period in the Uniform Lifetime Table set forth in   Regulation 1.401(a)(9)-9, using the Participant’s age as of the   Participant’s birthday in the Distribution Calendar Year; or
  
	
  
 
  	
  
 
  
	
  
 
  	
  
(ii)     if   the Participant’s sole “designated Beneficiary” for the Distribution Calendar   Year is the Participant’s spouse, the quotient obtained by dividing the   Participant’s Account Balance by the number in the Joint and Last Survivor   Table set forth in Regulation 1.401(a)(9)-9, using the Participant’s and   spouse’s attained ages as of the Participant’s and spouse’s birthdays in the   Distribution Calendar Year.
  

	
  
 
  	
  
(f)     Notwithstanding   any provision in the Plan to the contrary, distributions upon the death of a   Participant will be made in accordance with the following requirements and   will otherwise comply with Code Section 401(a)(9) and the Regulations   thereunder, the provisions of which are incorporated be reference.
  

36

	
  
 
  	
  
(1)     If   the Participant dies on or after the date distributions begin and there is a   “designated Beneficiary,” then the minimum amount that will be distributed   for each Distribution Calendar Year after the year of the Participant’s death   is the quotient obtained by dividing the Participant’s Account Balance by the   longer of the remaining Life Expectancy of the Participant or the remaining   Life Expectancy of the Participant’s “designated Beneficiary,” determined as   follows:
  

	
  
 
  	
  
(i)     The   Participant’s remaining Life Expectancy is calculated using the age of the   Participant in the year of death, reduced by one for each subsequent year.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
(ii)     If   the Participant’s surviving spouse is the Participant’s sole “designated   Beneficiary,” then the remaining Life Expectancy of the surviving spouse is   calculated for each Distribution Calendar Year after the year of the   Participant’s death using the surviving spouse’s age as of the spouse’s   birthday in that year. For Distribution Calendar Years after the year of the   surviving spouse’s death, the remaining Life Expectancy of the surviving   spouse is calculated using the age of the surviving spouse as of the spouse’s   birthday in the calendar year of the spouse’s death, reduced by one for each   subsequent calendar year.
  
	
   
  	
  
 
  
	
  
 
  	
  
(iii)     If   the Participant’s surviving spouse is not the Participant’s sole “designated   Beneficiary,” then the “designated Beneficiary’s” remaining Life Expectancy   is calculated using the age of the beneficiary in the year following the year   of the Participant’s death, reduced by one for each subsequent year.
  

	
  
 
  	
  
          However,   if there is no “designated Beneficiary” as of September 30th of the year   after the year of the Participant’s death, then the minimum amount that will   be distributed for each Distribution Calendar Year after the year of the   Participant’s death is the quotient obtained by dividing the Participant’s   Account Balance by the Participant’s remaining Life Expectancy calculated   using the age of the Participant in the year of death, reduced by one for   each subsequent year.
  

	
  
 
  	
  
(2)        If a Participant dies before the date distributions begin, then the   Participant’s entire interest will be distributed, or begin to be   distributed, no later than as follows:
  

	
  
 
  	
  
(i)     If   the Participant’s surviving spouse is the Participant’s sole “designated   Beneficiary,” then distributions to the surviving spouse will begin by   December 31st of the calendar year immediately following the calendar   year in which the Participant died, or by December 31st of the calendar   year in which the Participant would have attained age 70 1/2, if   later.
  

37

	
  
 
  	
  
(ii)     If   the Participant’s surviving spouse is not the Participant’s sole “designated   Beneficiary,” then distributions to the “designated Beneficiary” will begin   by December 31st of the calendar year immediately following the calendar   year in which the Participant died.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
(iii)     If   there is no “designated Beneficiary” as of September 30th of the year   following the year of the Participant’s death, the Participant’s entire   interest will be distributed by December 31st of the calendar year   containing the fifth anniversary of the Participant’s death.
  
	
   
  	
  
 
  
	
  
 
  	
  
(iv)     If   the Participant is survived by a “designated Beneficiary,” then the minimum   amount that will be distributed for each Distribution Calendar Year after the   year of the Participant’s death is the quotient obtained by dividing the   Participant’s Account Balance by the remaining Life Expectancy of the   Participant’s “designated Beneficiary,” determined as provided in   Section 7.5(f)(1).
  
	
  
 
  	
  
 
  
	
  
 
  	
  
(v)     If   the Participant’s surviving spouse is the Participant’s sole “designated   Beneficiary” and the surviving spouse dies after the Participant but before   distributions to the surviving spouse begin, then this   Section 7.5(f)(2), other than Section 7.5(f)(2)(i), will apply as   if the surviving spouse were the Participant.
  

	
  
 
  	
  
(3)     For   purposes of this Section 7.5(f), the Participant’s death benefit will be   distributed to the Participant’s Beneficiaries subject to the following   rules:
  

	
  
 
  	
  
(i)   Distributions are considered to begin on the Participant’s required beginning   date. However, if Section 7.5(f)(2)(v) applies, distributions are   considered to begin on the date distributions are required to begin to the   surviving spouse.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
(ii)     Unless   the Participant’s interest is distributed in a single sum on or before the   required beginning date, as of the first Distribution Calendar Year   distributions will be made in accordance with Section 7.5(f).
  

	
  
 
  	
  
          (g)     Except   as limited by Sections 7.5 and 7.6, whenever the Trustee is to make a   distribution or to commence a series of payments, the distribution or series   of payments may be made or begun on such date or as soon thereafter as is   practicable. However, unless a Former Participant elects in writing to defer   the receipt of benefits (such election may not result in a death benefit that   is more than incidental), the payment of benefits shall begin not later than   the sixtieth (60th) day after the close of the Plan Year in which the latest   of the following events occurs:
  

38

	
  
 
  	
  
(1)     the   date on which the Participant attains the earlier of age 65 or the Normal   Retirement Age specified herein;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
(2)     the   tenth (10th) anniversary of the year in which the Participant commenced   participation in the Plan; or
  
	
  
 
  	
  
 
  
	
  
 
  	
  
(3)        date the Participant terminates his service with the Employer.
  

	
  
 
  	
  
          (h)     If   a distribution is made to a Participant who has not severed employment and   who is not fully Vested in the Participant’s Account and the Participant may   increase the Vested percentage in such account, then, at any relevant time   the Participant’s Vested portion of the account will be equal to an amount   (“X”) determined by the formula:
  

	
  
 
  	
  
X equals   P(AB plus D) - D
  

	
  
 
  	
  
                    For   purposes of applying the formula: P is the Vested percentage at the relevant   time, AB is the account balance at the relevant time, and D is the amount of   distribution.
  

7.6     HOW PLAN BENEFIT WILL BE DISTRIBUTED

	
  
 
  	
  
          (a)    Distribution   of a Participant’s benefit may be made in cash or Company Stock or both,   provided, however, that if a Participant or Beneficiary so demands, such   benefit shall be distributed only in the form of Company Stock. Prior to   making a distribution of benefits, the Administrator shall advise the   Participant or the Participant’s Beneficiary, in writing (or such other form   as permitted by the Internal Revenue Service), of the right to demand that   benefits be distributed solely in Company Stock.
  
	
   
  	
  
 
  
	
  
 
  	
  
          (b)     If   a Participant or Beneficiary demands that benefits be distributed solely in   Company Stock, distribution of a Participant’s benefit will be made entirely   in whole shares or other units of Company Stock. Any balance in a   Participant’s Other Investments Account will be applied to acquire for   distribution the maximum number of whole shares or other units of Company   Stock at the then fair market value. Any fractional unit value unexpended   will be distributed in cash. If Company Stock is not available for purchase   by the Trustee, then the Trustee shall hold such balance until Company Stock   is acquired and then make such distribution, subject to Sections 7.5(g)   and 7.5(e).
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (c)     The   Trustee will make distribution from the Trust only on instructions from the   Administrator.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (d)     Notwithstanding   anything contained herein to the contrary, if the Employer charter or by-laws   restrict ownership of substantially all shares of Company Stock to Employees   and the Trust Fund, as described in Code Section 409(h)(2)(B)(ii)(I),   then the Administrator shall distribute a Participant’s Account entirely in   cash without granting the Participant the right to demand distribution in   shares of Company Stock.
  

39

	
  
 
  	
  
          (e)     Except   as otherwise provided herein, Company Stock distributed by the Trustee may be   restricted as to sale or transfer by the by-laws or articles of incorporation   of the Employer, provided restrictions are applicable to all Company Stock of   the same class. If a Participant is required to offer the sale of Company   Stock to the Employer before offering to sell Company Stock to a third party,   in no event may the Employer pay a price less than that offered to the   distributee by another potential buyer making a bona fide offer and in no   event shall the Trustee pay a price less than the fair market value of the   Company Stock.
  

7.7     DISTRIBUTION FOR MINOR OR INCOMPETENT BENEFICIARY

                    In the event a distribution is to be made to a minor or incompetent Beneficiary, then the Administrator may direct that such distribution be paid to the legal guardian, or if none in the case of a minor Beneficiary, to a parent of such Beneficiary or a responsible adult with whom the Beneficiary maintains residence, or to the custodian for such Beneficiary under the Uniform Gift to Minors Act or Gift to Minors Act, if such is permitted by the laws of the state in which said Beneficiary resides. Such a payment to the legal guardian, custodian or parent of a minor Beneficiary shall fully discharge the Trustee, Employer, and Plan from further liability on account thereof.

7.8     LOCATION OF PARTICIPANT OR BENEFICIARY UNKNOWN

                    In the event that all, or any portion, of the distribution payable to a Participant or Beneficiary hereunder shall, at the later of the Participant’s attainment of age 62 or Normal Retirement Age, remain unpaid solely by reason of the inability of the Administrator, after sending a registered letter, return receipt requested, to the last known address, and after further diligent effort, to ascertain the whereabouts of such Participant or Beneficiary, the amount so distributable shall be treated as a Forfeiture pursuant to the Plan. Notwithstanding the foregoing, if the value of a Participant’s Vested benefit derived from Employer and Employee contributions does not exceed $5,000, then the amount distributable may, in the sole discretion of the Administrator, either be treated as a Forfeiture, or be paid directly to an individual
retirement account described in Code Section 408(a) or individual retirement annuity described in Code Section 408(b) at the time it is determined that the whereabouts of the Participant or the Participant’s Beneficiary cannot be ascertained. In the event a Participant or Beneficiary is located subsequent to the Forfeiture, such benefit shall be restored, first from Forfeitures, if any, and then from an additional Employer contribution if necessary. However, regardless of the preceding, a benefit which is lost by reason of escheat under applicable state law is not treated as a Forfeiture for purposes of this Section nor as an impermissible forfeiture under the Code.

7.9     PRE-RETIREMENT DISTRIBUTION

                    At such time as a Participant shall have attained the age of 65 years, the Administrator, at the election of the Participant who has not severed employment with the Employer, shall direct the Trustee to distribute all or a portion of the amount then credited to the accounts maintained on behalf of the Participant. However, no distribution from the Participant’s 

40

account shall occur prior to 100% vesting. In the event that the Administrator makes such a distribution, the Participant shall continue to be eligible to participate in the Plan on the same basis as any other Employee. Any distribution made pursuant to this Section shall be made in a manner consistent with Sections 7.5 and 7.6, including, but not limited to, all notice and consent requirements of Code Section 411(a)(11) and the Regulations thereunder.

7.10     QUALIFIED DOMESTIC RELATIONS ORDER DISTRIBUTION

                    All rights and benefits, including elections, provided to a Participant in this Plan shall be subject to the rights afforded to any “alternate payee” under a “qualified domestic relations order.” Furthermore, a distribution to an “alternate payee” shall be permitted if such distribution is authorized by a “qualified domestic relations order,” even if the affected Participant has not separated from service and has not reached the “earliest retirement age” under the Plan. For the purposes of this Section, “alternate payee,” “qualified domestic relations order” and “earliest retirement age” shall have the meaning set forth under Code Section 414(p).

ARTICLE VIII
 TRUSTEE

8.1     BASIC RESPONSIBILITIES OF THE TRUSTEE

	
  
 
  	
  
(a)     The   Trustee shall have the following categories of responsibilities:
  
	
  
 
  	
  
 
  
	
   
  	
  
(1)     Consistent   with the “funding policy and method” determined by the Employer, to invest,   manage, and control the Plan assets subject, however, to the direction of the   Employer or an Investment Manager appointed by the Employer or any agent of   the Employer;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
(2)     At   the direction of the Administrator, to pay benefits required under the Plan   to be paid to Participants, or, in the event of their death, to their   Beneficiaries; and
  
	
  
 
  	
  
 
  
	
  
 
  	
  
(3)     To   maintain records of receipts and disbursements and furnish to the Employer   and/or Administrator for each Plan Year a written annual report pursuant to   Section 8.7.
  

	
  
 
  	
  
          (b     )In   the event that the Trustee shall be directed by the Employer, or an   Investment Manager or other agent appointed by the Employer with respect to   the investment of any or all Plan assets, the Trustee shall have no liability   with respect to the investment of such assets, but shall be responsible only   to execute such investment instructions as so directed.
  

	
  
 
  	
  
(1)     The   Trustee shall be entitled to rely fully on the written (or other form   acceptable to the Administrator and the Trustee, including, but not limited   to, voice recorded) instructions of the Employer, or any Fiduciary or   nonfiduciary agent of the Employer, in the discharge of such duties, and   shall not be liable for any loss or other liability, resulting from such   direction (or lack of direction) of the investment of any part of the Plan   assets.
  

41

	
  
 
  	
  
(2)     The   Trustee may delegate the duty of executing such instructions to any   nonfiduciary agent, which may be an affiliate of the Trustee or any Plan   representative.
  

	
  
 
  	
  
          (c)     If   there shall be more than one Trustee, they shall act by a majority of their   number, but may authorize one or more of them to sign papers on their behalf.
  

8.2     INVESTMENT POWERS AND DUTIES OF THE TRUSTEE

	
  
 
  	
  
          (a)     The   Trustee shall invest and reinvest the Trust Fund to keep the Trust Fund   invested without distinction between principal and income and in such   securities or property, real or personal, wherever situated, as the Trustee   shall deem advisable, including, but not limited to, stocks, common or   preferred, open-end or close-end mutual funds, bonds and other evidences of   indebtedness or ownership, and real estate or any interest therein. The   Trustee shall at all times in making investments of the Trust Fund consider,   among other factors, the short and long-term financial needs of the Plan on   the basis of information furnished by the Employer. In making such   investments, the Trustee shall not be restricted to securities or other   property of the character expressly authorized by the applicable law for   trust investments; however, the Trustee shall give due
regard to any   limitations imposed by the Code or the Act so that at all times the Plan may   qualify as an Employee Stock Ownership Plan and Trust.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (b)     The   Trustee may employ a bank or trust company pursuant to the terms of its usual   and customary bank agency agreement, under which the duties of such bank or   trust company shall be of a custodial, clerical and record-keeping nature.
  
	
   
  	
  
 
  
	
  
 
  	
  
          (c)     In   the event the Trustee invests any part of the Trust Fund, pursuant to the   directions of the Administrator, in any shares of stock issued by the   Employer, and the Administrator thereafter directs the Trustee to dispose of   such investment, or any part thereof, under circumstances which, in the   opinion of counsel for the Trustee, require registration of the securities   under the Securities Act of 1933 and/or qualification of the securities under   the Blue Sky laws of any state or states, then the Employer at its own   expense, will take or cause to be taken any and all such action as may be   necessary or appropriate to effect such registration and/or qualification.
  

8.3     OTHER POWERS OF THE TRUSTEE

                    The Trustee, in addition to all powers and authorities under common law, statutory authority, including the Act, and other provisions of the Plan, shall have the following powers and authorities, to be exercised in the Trustee’s sole discretion:

	
  
 
  	
  
          (a)     To   purchase, or subscribe for, any securities or other property and to retain   the same. In conjunction with the purchase of securities, margin accounts may   be opened and maintained;
  

42

	
  
 
  	
  
          (b)     To   sell, exchange, convey, transfer, grant options to purchase, or otherwise   dispose of any securities or other property held by the Trustee, by private   contract or at public auction. No person dealing with the Trustee shall be   bound to see to the application of the purchase money or to inquire into the   validity, expediency, or propriety of any such sale or other disposition,   with or without advertisement;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (c)     To   vote upon any stocks, bonds, or other securities; to give general or special   proxies or powers of attorney with or without power of substitution; to   exercise any conversion privileges, subscription rights or other options, and   to make any payments incidental thereto; to oppose, or to consent to, or   otherwise participate in, corporate reorganizations or other changes   affecting corporate securities, and to delegate discretionary powers, and to   pay any assessments or charges in connection therewith; and generally to   exercise any of the powers of an owner with respect to stocks, bonds,   securities, or other property. However, the Trustee shall not vote proxies   relating to securities for which it has not been assigned full investment   management responsibilities. In those cases where another party has such   investment authority or discretion, the Trustee
will deliver all proxies to   said party who will then have full responsibility for voting those proxies;
  
	
   
  	
  
 
  
	
  
 
  	
  
          (d)     To   cause any securities or other property to be registered in the Trustee’s own   name or in the name of one or more of the Trustee’s nominees, in a clearing   corporation, in a depository, or in entry form or in bearer form, but the   books and records of the Trustee shall at all times show that all such   investments are part of the Trust Fund;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (e)     To   borrow or raise money for the purposes of the Plan in such amount, and upon   such terms and conditions, as the Trustee shall deem advisable; and for any   sum so borrowed, to issue a promissory note as Trustee, and to secure the   repayment thereof by pledging all, or any part, of the Trust Fund; and no   person lending money to the Trustee shall be bound to see to the application   of the money lent or to inquire into the validity, expediency, or propriety   of any borrowing;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (f)     To   keep such portion of the Trust Fund in cash or cash balances as the Trustee   may, from time to time, deem to be in the best interests of the Plan, without   liability for interest thereon;
  
	
   
  	
  
 
  
	
  
 
  	
  
          (g)     To   accept and retain for such time as the Trustee may deem advisable any   securities or other property received or acquired as Trustee hereunder,   whether or not such securities or other property would normally be purchased   as investments hereunder;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (h)     To   make, execute, acknowledge, and deliver any and all documents of transfer and   conveyance and any and all other instruments that may be necessary or   appropriate to carry out the powers herein granted;
  

43

	
  
 
  	
  
          (i)     To   settle, compromise, or submit to arbitration any claims, debts, or damages   due or owing to or from the Plan, to commence or defend suits or legal or administrative   proceedings, and to represent the Plan in all suits and legal and   administrative proceedings;
  
	
   
  	
  
 
  
	
  
 
  	
  
(j)     To   employ suitable agents and counsel and to pay their reasonable expenses and   compensation, and such agent or counsel may or may not be agent or counsel   for the Employer;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (k)     To   apply for and procure from responsible insurance companies, to be selected by   the Administrator, as an investment of the Trust Fund such annuity, or other   Contracts (on the life of any Participant) as the Administrator shall deem   proper; to exercise, at any time or from time to time, whatever rights and   privileges may be granted under such annuity, or other Contracts; to collect,   receive, and settle for the proceeds of all such annuity or other Contracts   as and when entitled to do so under the provisions thereof;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (l)     To   invest funds of the Trust in time deposits or savings accounts bearing a   reasonable rate of interest or in cash or cash balances without liability for   interest thereon;
  
	
  
 
  	
  
 
  
	
   
  	
  
          (m)     To   invest in Treasury Bills and other forms of United States government   obligations;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (n)     To   invest in shares of investment companies registered under the Investment   Company Act of 1940;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (o)     To   deposit monies in federally insured savings accounts or certificates of   deposit in banks or savings and loan associations;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (p)     To   vote Company Stock as provided in Section 8.4;
  
	
  
 
  	
  
 
  
	
   
  	
  
          (q)     To   consent to or otherwise participate in reorganizations, recapitalizations,   consolidations, mergers and similar transactions with respect to Company   Stock or any other securities and to pay any assessments or charges in   connection therewith;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (r)     To   deposit such Company Stock (but only if such deposit does not violate the   provisions of Section 8.4 hereof) or other securities in any voting   trust, or with any protective or like committee, or with a trustee or with   depositories designated thereby;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (s)     To   sell or exercise any options, subscription rights and conversion privileges   and to make any payments incidental thereto;
  
	
  
 
  	
  
          (t)     To   exercise any of the powers of an owner, with respect to such Company Stock   and other securities or other property comprising the Trust Fund. The   Administrator, with the Trustee’s approval, may authorize the Trustee to act   on any administrative matter or class of matters with respect to which   direction or instruction to the Trustee by the Administrator is called for   hereunder without specific direction or other instruction from the   Administrator;
  

44

	
  
 
  	
  
          (u)     To   sell, purchase and acquire put or call options if the options are traded on   and purchased through a national securities exchange registered under the   Securities Exchange Act of 1934, as amended, or, if the options are not   traded on a national securities exchange, are guaranteed by a member firm of   the New York Stock Exchange regardless of whether such options are covered;   and
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (v)     To   do all such acts and exercise all such rights and privileges, although not   specifically mentioned herein, as the Trustee may deem necessary to carry out   the purposes of the Plan.
  

8.4     VOTING COMPANY STOCK

                    The Trustee shall vote all Company Stock held by it as part of the Plan assets at such time and in such manner as the Administrator shall direct. Provided, however, that if any agreement entered into by the Trust provides for voting of any shares of Company Stock pledged as security for any obligation of the Plan, then such shares of Company Stock shall be voted in accordance with such agreement. If the Administrator fails or refuses to give the Trustee timely instructions as to how to vote any Company Stock as to which the Trustee otherwise has the right to vote, the Trustee shall not exercise its power to vote such Company Stock and shall consider the Administrator’s failure or refusal to give timely instructions as an exercise of the Administrator’s rights and a directive to the Trustee not to vote said Company Stock.

                    Notwithstanding the foregoing, if the Employer has a registration-type class of securities, each Participant or Beneficiary shall be entitled to direct the Trustee as to the manner in which the Company Stock which is entitled to vote and which is allocated to the Company Stock Account of such Participant or Beneficiary is to be voted. If the Employer does not have a registration-type class of securities, each Participant or Beneficiary in the Plan shall be entitled to direct the Trustee as to the manner in which voting rights on shares of Company Stock which are allocated to the Company Stock Account of such Participant or Beneficiary are to be exercised with respect to any corporate matter which involves the voting of such shares with respect to the approval or disapproval of any corporate merger or consolidation, recapitalization,
reclassification, liquidation, dissolution, sale of substantially all assets of a trade or business, or such similar transaction as prescribed in Regulations. For purposes of this Section the term “registration-type class of securities” means: (A) a class of securities required to be registered under Section 12 of the Securities Exchange Act of 1934; and (B) a class of securities which would be required to be so registered except for the exemption from registration provided in subsection (g)(2)(H) of such Section 12.

                    If the Employer does not have a registration-type class of securities and the by-laws of the Employer require the Plan to vote an issue in a manner that reflects a one-man, one-vote philosophy, each Participant or Beneficiary shall be entitled to cast one vote on an issue and the Trustee shall vote the shares held by the Plan in proportion to the results of the votes cast on the issue by the Participants and Beneficiaries.

45

8.5     DUTIES OF THE TRUSTEE REGARDING PAYMENTS

                    At the direction of the Administrator, the Trustee shall, from time to time, in accordance with the terms of the Plan, make payments out of the Trust Fund. The Trustee shall not be responsible in any way for the application of such payments.

8.6     TRUSTEE’S COMPENSATION AND EXPENSES AND TAXES

                    The Trustee shall be paid such reasonable compensation as set forth in the Trustee’s fee schedule (if the Trustee has such a schedule) or as agreed upon in writing by the Employer and the Trustee. However, an individual serving as Trustee who already receives full-time pay from the Employer shall not receive compensation from the Plan. In addition, the Trustee shall be reimbursed for any reasonable expenses, including reasonable counsel fees incurred by it as Trustee. Such compensation and expenses shall be paid from the Trust Fund unless paid or advanced by the Employer. All taxes of any kind whatsoever that may be levied or assessed under existing or future laws upon, or in respect of, the Trust Fund or the income thereof, shall be paid from the Trust Fund.

8.7     ANNUAL REPORT OF THE TRUSTEE

	
  
 
  	
  
          (a)     Within   a reasonable period of time after the later of the Anniversary Date or   receipt of the Employer contribution for each Plan Year, the Trustee, or its   agent, shall furnish to the Employer and Administrator a written statement of   account with respect to the Plan Year for which such contribution was made   setting forth:
  

	
   
  	
  
(1)     the   net income, or loss, of the Trust Fund;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
(2)     the   gains, or losses, realized by the Trust Fund upon sales or other disposition   of the assets;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
(3)     the   increase, or decrease, in the value of the Trust Fund;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
(4)     all   payments and distributions made from the Trust Fund; and
  
	
  
 
  	
  
 
  
	
  
 
  	
  
(5)     such   further information as the Trustee and/or Administrator deems appropriate.
  

	
  
 
  	
  
          (b)     The   Employer, promptly upon its receipt of each such statement of account, shall   acknowledge receipt thereof in writing and advise the Trustee and/or   Administrator of its approval or disapproval thereof. Failure by the Employer   to disapprove any such statement of account within thirty (30) days after its   receipt thereof shall be deemed an approval thereof. The approval by the   Employer of any statement of account shall be binding on the Employer and the   Trustee as to all matters contained in the statement to the same extent as if   the account of the Trustee had been settled by judgment or decree in an   action for a judicial settlement of its account in a court of competent   jurisdiction in which the Trustee, the Employer and all persons having or   claiming an interest in the Plan were parties. However, nothing contained in   this Section shall deprive the
Trustee of its right to have its accounts   judicially settled if the Trustee so desires.
  

46

8.8     AUDIT

	
  
 
  	
  
          (a)     If   an audit of the Plan’s records shall be required by the Act and the   regulations thereunder for any Plan Year, the Administrator shall direct the   Trustee to engage on behalf of all Participants an independent qualified   public accountant for that purpose. Such accountant shall, after an audit of   the books and records of the Plan in accordance with generally accepted   auditing standards, within a reasonable period after the close of the Plan   Year, furnish to the Administrator and the Trustee a report of the audit   setting forth the accountant’s opinion as to whether any statements,   schedules or lists that are required by Act Section 103 or the Secretary   of Labor to be filed with the Plan’s annual report, are presented fairly in   conformity with generally accepted accounting principles applied   consistently.
  
	
   
  	
  
 
  
	
  
 
  	
  
          (b)     All   auditing and accounting fees shall be an expense of and may, at the election   of the Employer, be paid from the Trust Fund.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (c)     If   some or all of the information necessary to enable the Administrator to   comply with Act Section 103 is maintained by a bank, insurance company,   or similar institution, regulated, supervised, and subject to periodic   examination by a state or federal agency, then it shall transmit and certify   the accuracy of that information to the Administrator as provided in Act   Section 103(b) within one hundred twenty (120) days after the end   of the Plan Year or by such other date as may be prescribed under regulations   of the Secretary of Labor.
  

8.9     RESIGNATION, REMOVAL AND SUCCESSION OF TRUSTEE

	
  
 
  	
  
          (a)     Unless   otherwise agreed to by both the Trustee and the Employer, a Trustee may   resign at any time by delivering to the Employer, at least thirty (30) days   before its effective date, a written notice of resignation.
  
	 	 
	
   
  	
  
          (b)     Unless   otherwise agreed to by both the Trustee and the Employer, the Employer may   remove a Trustee at any time by delivering to the Trustee, at least thirty   (30) days before its effective date, a written notice of such Trustee’s   removal.
  
	 	 
	
  
 
  	
  
          (c)     Upon   the death, resignation, incapacity, or removal of any Trustee, a successor   may be appointed by the Employer; and such successor, upon accepting such   appointment in writing and delivering same to the Employer, shall, without   further act, become vested with all the powers and responsibilities of the   predecessor as if such successor had been originally named as a Trustee   herein. Until such a successor is appointed, the remaining Trustee or   Trustees shall have full authority to act under the terms of the Plan.
  

47

	
  
 
  	
  
          (d)     The   Employer may designate one or more successors prior to the death,   resignation, incapacity, or removal of a Trustee. In the event a successor is   so designated by the Employer and accepts such designation, the successor   shall, without further act, become vested with all the powers and   responsibilities of the predecessor as if such successor had been named as   Trustee herein immediately upon the death, resignation, incapacity, or   removal of the predecessor.
  
	
   
  	
  
 
  
	
  
 
  	
  
          (e)     Whenever   any Trustee hereunder ceases to serve as such, the Trustee shall furnish to   the Employer and Administrator a written statement of account with respect to   the portion of the Plan Year during which the individual or entity served as   Trustee. This statement shall be either (i) included as part of the   annual statement of account for the Plan Year required under Section 8.7 or   (ii) set forth in a special statement. Any such special statement of   account should be rendered to the Employer no later than the due date of the   annual statement of account for the Plan Year. The procedures set forth in   Section 8.7 for the approval by the Employer of annual statements of   account shall apply to any special statement of account rendered hereunder   and approval by the Employer of any such special statement in the manner   provided in
Section 8.7 shall have the same effect upon the statement as   the Employer’s approval of an annual statement of account. No successor to   the Trustee shall have any duty or responsibility to investigate the acts or   transactions of any predecessor who has rendered all statements of account   required by Section 8.7 and this subparagraph.
  

8.10     TRANSFER OF INTEREST

                    Notwithstanding any other provision contained in this Plan, the Trustee at the direction of the Administrator shall transfer the Vested interest, if any, of a Participant to another trust forming part of a pension, profit sharing or stock bonus plan maintained by such Participant’s new employer and represented by said employer in writing as meeting the requirements of Code Section 401(a), provided that the trust to which such transfers are made permits the transfer to be made.

8.11     TRUSTEE INDEMNIFICATION

                    The Employer agrees to indemnify and hold harmless the Trustee against any and all claims, losses, damages, expenses and liabilities the Trustee may incur in the exercise and performance of the Trustee’s power and duties hereunder, unless the same are determined to be due to gross negligence or willful misconduct.

8.12     DIRECT ROLLOVER

	
  
 
  	
  
          (a)     Notwithstanding   any provision of the Plan to the contrary that would otherwise limit a   “distributee’s” election under this Section, a “distributee” may elect, at   the time and in the manner prescribed by the Administrator, to have any   portion of an “eligible rollover distribution” that is equal to at least $500   paid directly to an “eligible retirement plan” specified by the “distributee”   in a “direct rollover.”
  

48

	
  
 
  	
  
 (b)     For   purposes of this Section the following definitions shall apply:
  

	
  
 
  	
  
(1)     An   “eligible rollover distribution” is any distribution of all or any portion of   the balance to the credit of the “distributee,” except that an “eligible   rollover distribution” does not include: any distribution that is one of a   series of substantially equal periodic payments (not less frequently than   annually) made for the life (or life expectancy) of the “distributee” or the   joint lives (or joint life expectancies) of the “distributee” and the   “distributee’s” designated beneficiary, or for a specified period of ten   years or more; any distribution to the extent such distribution is required   under Code Section 401(a)(9); the portion of any other distribution that   is not includible in gross income (determined without regard to the exclusion   for net unrealized appreciation with respect to employer securities); any   hardship distribution
described in Code Section 401(k)(2)(B)(i)(IV); and   any other distribution that is reasonably expected to total less than $200   during a year.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
(2)     An   “eligible retirement plan” is an individual retirement account described in   Code Section 408(a), an individual retirement annuity described in Code   Section 408(b), (other than an endowment contract), a qualified trust   (an employees’ trust) described in Code Section 401(a) which is exempt   from tax under Code Section 501(a), an annuity plan described in Code   Section 403(a), an eligible deferred compensation plan described in Code   Section 457(b) which is maintained by an eligible employer described in   Code Section 457(e)(1)(A), and an annuity contract described in Code   Section 403(b), that accepts the “distributee’s” “eligible rollover   distribution.” However, in the case of an “eligible rollover distribution” to   the surviving spouse, an “eligible retirement plan” is an individual   retirement account or
individual retirement annuity.
  
	
   
  	
  
 
  
	
  
 
  	
  
(3)     A   “distributee” includes an Employee or former Employee. In addition, the   Employee’s or former Employee’s surviving spouse and the Employee’s or former   Employee’s spouse or former spouse who is the alternate payee under a   qualified domestic relations order, as defined in Code Section 414(p),   are “distributees” with regard to the interest of the spouse or former   spouse.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
(4)     A   “direct rollover” is a payment by the Plan to the “eligible retirement plan”   specified by the “distributee.”
  

ARTICLE IX
 AMENDMENT, TERMINATION AND MERGERS

9.1     AMENDMENT

	
  
 
  	
  
          (a)     The   Employer shall have the right at any time to amend this Plan subject to the   limitations of this Section. However, any amendment which affects the rights,   duties or responsibilities of the Trustee or Administrator, may only be made   with the Trustee’s or Administrator’s written consent. Any such amendment   shall become effective as provided therein upon its execution. The Trustee   shall not be required to execute any such amendment unless the amendment   affects the duties of the Trustee hereunder.
  

49

	
  
 
  	
  
          (b)     No   amendment to the Plan shall be effective if it authorizes or permits any part   of the Trust Fund (other than such part as is required to pay taxes and   administration expenses) to be used for or diverted to any purpose other than   for the exclusive benefit of the Participants or their Beneficiaries or   estates; or causes any reduction in the amount credited to the account of any   Participant; or causes or permits any portion of the Trust Fund to revert to   or become property of the Employer.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (c)     Except   as permitted by Regulations (including Regulation 1.411(d)-4) or other   IRS guidance, no Plan amendment or transaction having the effect of a Plan amendment   (such as a merger, plan transfer or similar transaction) shall be effective   if it eliminates or reduces any “Section 411(d)(6) protected benefit” or   adds or modifies conditions relating to “Section 411(d)(6) protected   benefits” which results in a further restriction on such benefit unless such   “Section 411(d)(6) protected benefits” are preserved with respect to   benefits accrued as of the later of the adoption date or effective date of   the amendment. “Section 411(d)(6) protected benefits” are benefits   described in Code Section 411(d)(6)(A), early retirement benefits and   retirement-type subsidies, and optional forms of
benefit. A Plan amendment   that eliminates or restricts the ability of a Participant to receive payment   of the Participant’s interest in the Plan under a particular optional form of   benefit will be permissible if the amendment satisfies the conditions in (1)   and (2) below:
  

	
  
 
  	
  
(1)     The   amendment provides a single-sum distribution form that is otherwise identical   to the optional form of benefit eliminated or restricted. For purposes of   this condition (1), a single-sum distribution form is otherwise identical   only if it is identical in all respects to the eliminated or restricted   optional form of benefit (or would be identical except that it provides   greater rights to the Participant) except with respect to the timing of   payments after commencement.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
(2)     The   amendment is not effective unless the amendment provides that the amendment   shall not apply to any distribution with an annuity starting date earlier   than the earlier of: (i) the ninetieth (90th) day after the date the   Participant receiving the distribution has been furnished a summary that   reflects the amendment and that satisfies the Act requirements at 29 CFR   2520.104b-3 (relating to a summary of material modifications) or (ii) the   first day of the second Plan Year following the Plan Year in which the   amendment is adopted.
  

9.2     TERMINATION

	
   
  	
  
          (a)     The   Employer shall have the right at any time to terminate the Plan by delivering   to the Trustee and Administrator written notice of such termination. Upon any   full or partial termination, all amounts credited to the affected   Participants’ Accounts shall become 100% Vested as provided in   Section 7.4 and shall not thereafter be subject to forfeiture, and all   unallocated amounts, including Forfeitures, shall be allocated to the   accounts of all Participants in accordance with the provisions hereof.
  

50

	
  
 
  	
  
          (b)     Upon   the full termination of the Plan, the Employer shall direct the distribution   of the assets of the Trust Fund to Participants in a manner which is   consistent with and satisfies the provisions of Sections 7.5 and 7.6.   Except as permitted by Regulations, the termination of the Plan shall not   result in the reduction of “Section 411(d)(6) protected benefits” in   accordance with Section 9.1(c).
  

9.3     MERGER, CONSOLIDATION OR TRANSFER OF ASSETS

                    This Plan and Trust may be merged or consolidated with, or its assets and/or liabilities may be transferred to any other plan and trust only if the benefits which would be received by a Participant of this Plan, in the event of a termination of the Plan immediately after such transfer, merger or consolidation, are at least equal to the benefits the Participant would have received if the Plan had terminated immediately before the transfer, merger or consolidation, and such transfer, merger or consolidation does not otherwise result in the elimination or reduction of any “Section 411(d)(6) protected benefits” in accordance with Section 9.1(c).

ARTICLE X
 TOP HEAVY

10.1     TOP HEAVY PLAN REQUIREMENTS

                    For any Top Heavy Plan Year, the Plan shall provide the special vesting requirements of Code Section 416(b) pursuant to Section 7.4 of the Plan and the special minimum allocation requirements of Code Section 416(c) pursuant to Section 4.3 of the Plan.

10.2     DETERMINATION OF TOP HEAVY STATUS

	
  
 
  	
  
          (a)        This Plan shall be a Top Heavy Plan for any Plan Year in which, as of the   “determination date,” (1) the Present Value of Accrued Benefits of Key   Employees and (2) the sum of the Aggregate Accounts of Key Employees   under this Plan and all plans of an Aggregation Group, exceeds sixty percent   (60%) of the Present Value of Accrued Benefits and the Aggregate Accounts of   all Key and Non-Key Employees under this Plan and all plans of an Aggregation   Group.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
                    If   any Participant is a Non-Key Employee for any Plan Year, but such Participant   was a Key Employee for any prior Plan Year, such Participant’s Present Value   of Accrued Benefit and/or Aggregate Account balance shall not be taken into   account for purposes of determining whether this Plan is a Top Heavy Plan (or   whether any Aggregation Group which includes this Plan is a Top Heavy Group).   In addition, if a Participant or Former Participant has not performed any   services for any Employer maintaining the Plan at any time during the   one-year period ending on the “determination date,” any accrued benefit for   such Participant or Former Participant shall not be taken into account for   the purposes of determining whether this Plan is a Top Heavy Plan.
  

51

	
  
 
  	
  
          (b)     Aggregate   Account: A Participant’s Aggregate Account as of the “determination date” is   the sum of:
  

	
  
 
  	
  
(1)     the   Participant’s Account balance as of the most recent valuation occurring   within a twelve (12) month period ending on the “determination date.”   However, with respect to Employees not performing services for the Employer   during the year ending on the “determination date,” the Participant’s Account   balance as of the most recent valuation occurring within a twelve (12)   month period ending on the “determination date” shall not be taken into   account for purposes of this Section.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
(2)     an   adjustment for any contributions due as of the “determination date.” Such   adjustment shall be the amount of any contributions actually made after the   Valuation Date but due on or before the “determination date,” except for the   first Plan Year when such adjustment shall also reflect the amount of any   contributions made after the “determination date” that are allocated as of a   date in that first Plan Year.
  
	
   
  	
  
 
  
	
  
 
  	
  
(3)     any   Plan distributions made within the Plan Year that includes the “determination   date” or, with respect to distributions made for a reason other than   separation from service, disability or death, within the five (5)   preceding Plan Years. The preceding sentence shall also apply to   distributions under a terminated plan which, had it not been terminated,   would have been aggregated with the Plan under Code   Section 416(g)(2)(A)(i). In the case of distributions made after the   Valuation Date and prior to the “determination date,” such distributions are   not included as distributions for top heavy purposes to the extent that such   distributions are already included in the Participant’s Aggregate Account   balance as of the Valuation Date.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
(4)     any   Employee contributions, whether voluntary or mandatory. However, amounts   attributable to tax deductible qualified voluntary employee contributions   shall not be considered to be a part of the Participant’s Aggregate Account   balance.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
(5)     with   respect to unrelated rollovers and plan-to-plan transfers (ones which are both   initiated by the Employee and made from a plan maintained by one employer to   a plan maintained by another employer), if this Plan provides the rollovers   or plan-to-plan transfers, it shall always consider such rollovers or   plan-to-plan transfers as a distribution for the purposes of this Section. If   this Plan is the plan accepting such rollovers or plan-to-plan transfers, it   shall not consider such rollovers or plan-to-plan transfers as part of the   Participant’s Aggregate Account balance.
  

52

	
  
 
  	
  
(6)     with   respect to related rollovers and plan-to-plan transfers (ones either not   initiated by the Employee or made to a plan maintained by the same employer),   if this Plan provides the rollover or plan-to-plan transfer, it shall not be   counted as a distribution for purposes of this Section. If this Plan is the   plan accepting such rollover or plan-to-plan transfer, it shall consider such   rollover or plan-to-plan transfer as part of the Participant’s Aggregate   Account balance, irrespective of the date on which such rollover or   plan-to-plan transfer is accepted.
  

	
  
 
  	
  
(7)     For   the purposes of determining whether two employers are to be treated as the   same employer in (5) and (6) above, all employers aggregated under Code   Section 414(b), (c), (m) and (o) are treated as the same employer.
  

	
   
  	
  
          c)        “Aggregation Group” means either a Required Aggregation Group or a Permissive   Aggregation Group as hereinafter determined.
  

	
  
 
  	
  
(1)     Required   Aggregation Group: In determining a Required Aggregation Group hereunder,   each plan of the Employer in which a Key Employee is a participant in the   Plan Year containing the Determination Date or any of the four preceding Plan   Years, and each other plan of the Employer which enables any plan in which a   Key Employee participates to meet the requirements of Code   Sections 401(a)(4) or 410, will be required to be aggregated. Such group   shall be known as a Required Aggregation Group.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
In the case   of a Required Aggregation Group, each plan in the group will be considered a   Top Heavy Plan if the Required Aggregation Group is a Top Heavy Group. No   plan in the Required Aggregation Group will be considered a Top Heavy Plan if   the Required Aggregation Group is not a Top Heavy Group.
  
	
  
 
  	
  
 
  
	
   
  	
  
(2)     Permissive   Aggregation Group: The Employer may also include any other plan not required   to be included in the Required Aggregation Group, provided the resulting   group, taken as a whole, would continue to satisfy the provisions of Code   Sections 401(a)(4) and 410. Such group shall be known as a Permissive   Aggregation Group.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
In the case   of a Permissive Aggregation Group, only a plan that is part of the Required   Aggregation Group will be considered a Top Heavy Plan if the Permissive   Aggregation Group is a Top Heavy Group. No plan in the Permissive Aggregation   Group will be considered a Top Heavy Plan if the Permissive Aggregation Group   is not a Top Heavy Group.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
(3)     Only   those plans of the Employer in which the Determination Dates fall within the   same calendar year shall be aggregated in order to determine whether such   plans are Top Heavy Plans.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
(4)     An   Aggregation Group shall include any terminated plan of the Employer if it was   maintained within the last five (5) years ending on the Determination Date.
  

53

	
  
 
  	
  
          (d)        “Determination date” means (a) the last   day of the preceding Plan Year, or (b) in the case of the first Plan   Year, the last day of such Plan Year.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (e)     Present   Value of Accrued Benefit: In the case of a defined benefit plan, the Present   Value of Accrued Benefit for a Participant other than a Key Employee, shall   be as determined using the single accrual method used for all plans of the   Employer and Affiliated Employers, or if no such single method exists, using   a method which results in benefits accruing not more rapidly than the slowest   accrual rate permitted under Code Section 411(b)(1)(C). The   determination of the Present Value of Accrued Benefit shall be determined as   of the most recent valuation date that falls within or ends with the 12-month   period ending on the Determination Date except as provided in Code   Section 416 and the Regulations thereunder for the first and second plan   years of a defined benefit plan.
  
	
  
 
  	
  
 
  
	
   
  	
  
          (f)     “Top   Heavy Group” means an Aggregation Group in which, as of the Determination   Date, the sum of:
  

	
  
 
  	
  
(1)     the   Present Value of Accrued Benefits of Key Employees under all defined benefit   plans included in the group, and
  
	
  
 
  	
  
 
  
	
  
 
  	
  
(2)     the   Aggregate Accounts of Key Employees under all defined contribution plans   included in the group, exceeds sixty percent (60%) of a similar sum   determined for all Participants.
  

ARTICLE XI
 MISCELLANEOUS

11.1     PARTICIPANT’S RIGHTS

                    This Plan shall not be deemed to constitute a contract between the Employer and any Participant or to be a consideration or an inducement for the employment of any Participant or Employee. Nothing contained in this Plan shall be deemed to give any Participant or Employee the right to be retained in the service of the Employer or to interfere with the right of the Employer to discharge any Participant or Employee at any time regardless of the effect which such discharge shall have upon the Employee as a Participant of this Plan.

11.2     ALIENATION 

	
  
 
  	
  
          (a)     Subject   to the exceptions provided below, and as otherwise permitted by the Code and   Act, no benefit which shall be payable out of the Trust Fund to any person (including   a Participant or the Participant’s Beneficiary) shall be subject in any   manner to anticipation, alienation, sale, transfer, assignment, pledge,   encumbrance, or charge, and any attempt to anticipate, alienate, sell,   transfer, assign, pledge, encumber, or charge the same shall be void; and no   such benefit shall in any manner be liable for, or subject to, the debts,   contracts, liabilities, engagements, or torts of any such person, nor shall   it be subject to attachment or legal process for or against such person, and   the same shall not be recognized by the Trustee, except to such extent as may   be required by law.
  

54

	
  
 
  	
  
          (b)     Subsection (a)   shall not apply to a “qualified domestic relations order” defined in Code   Section 414(p), and those other domestic relations orders permitted to   be so treated by the Administrator under the provisions of the Retirement   Equity Act of 1984. The Administrator shall establish a written procedure to   determine the qualified status of domestic relations orders and to administer   distributions under such qualified orders. Further, to the extent provided   under a “qualified domestic relations order,” a former spouse of a   Participant shall be treated as the spouse or surviving spouse for all   purposes under the Plan.
  
	
   
  	
  
 
  
	
  
 
  	
  
          (c)     Subsection (a)   shall not apply to an offset to a Participant’s accrued benefit against an   amount that the Participant is ordered or required to pay the Plan with   respect to a judgment, order, or decree issued, or a settlement entered into   in accordance with Code Sections 401(a)(13)(C) and (D).
  

11.3     CONSTRUCTION OF PLAN

                    This Plan and Trust shall be construed and enforced according to the Code, the Act and the laws of the State of Tennessee, other than its laws respecting choice of law, to the extent not pre-empted by the Act.

11.4     GENDER AND NUMBER

                    Wherever any words are used herein in the masculine, feminine or neuter gender, they shall be construed as though they were also used in another gender in all cases where they would so apply, and whenever any words are used herein in the singular or plural form, they shall be construed as though they were also used in the other form in all cases where they would so apply.

11.5     LEGAL ACTION

                    In the event any claim, suit, or proceeding is brought regarding the Trust and/or Plan established hereunder to which the Trustee, the Employer or the Administrator may be a party, and such claim, suit, or proceeding is resolved in favor of the Trustee, the Employer or the Administrator, they shall be entitled to be reimbursed from the Trust Fund for any and all costs, attorney’s fees, and other expenses pertaining thereto incurred by them for which they shall have become liable.

11.6     PROHIBITION AGAINST DIVERSION OF FUNDS

	
  
 
  	
  
          (a)        Except as provided below and otherwise specifically permitted by law, it   shall be impossible by operation of the Plan or of the Trust, by termination   of either, by power of revocation or amendment, by the happening of any   contingency, by collateral arrangement or by any other means, for any part of   the corpus or income of any Trust Fund maintained pursuant to the Plan or any   funds contributed thereto to be used for, or diverted to, purposes other than   the exclusive benefit of Participants, Former Participants, or their   Beneficiaries.
  

55

	
  
 
  	
  
          (b)     In   the event the Employer shall make an excessive contribution under a mistake   of fact pursuant to Act Section 403(c)(2)(A), the Employer may demand   repayment of such excessive contribution at any time within one (1) year   following the time of payment and the Trustees shall return such amount to   the Employer within the one (1) year period. Earnings of the Plan   attributable to the contributions may not be returned to the Employer but any   losses attributable thereto must reduce the amount so returned.
  
	
   
  	
  
 
  
	
  
 
  	
  
          (c)     Except   for Sections 3.5, 3.6, and 4.1(b), any contribution by the Employer to   the Trust Fund is conditioned upon the deductibility of the contribution by   the Employer under the Code and, to the extent any such deduction is   disallowed, the Employer may, within one (1) year following the final   determination of the disallowance, whether by agreement with the Internal   Revenue Service or by final decision of a competent jurisdiction, demand   repayment of such disallowed contribution and the Trustee shall return such   contribution within one (1) year following the disallowance. Earnings of the   Plan attributable to the contribution may not be returned to the Employer,   but any losses attributable thereto must reduce the amount so returned.
  

11.7     EMPLOYER’S AND TRUSTEE’S PROTECTIVE CLAUSE

                    The Employer, Administrator and Trustee, and their successors, shall not be responsible for the validity of any Contract issued hereunder or for the failure on the part of the insurer to make payments provided by any such Contract, or for the action of any person which may delay payment or render a Contract null and void or unenforceable in whole or in part.

11.8     INSURER’S PROTECTIVE CLAUSE

                    Except as otherwise agreed upon in writing between the Employer and the insurer, an insurer which issues any Contracts hereunder shall not have any responsibility for the validity of this Plan or for the tax or legal aspects of this Plan. The insurer shall be protected and held harmless in acting in accordance with any written direction of the Trustee, and shall have no duty to see to the application of any funds paid to the Trustee, nor be required to question any actions directed by the Trustee. Regardless of any provision of this Plan, the insurer shall not be required to take or permit any action or allow any benefit or privilege contrary to the terms of any Contract which it issues hereunder, or the rules of the insurer.

11.9     RECEIPT AND RELEASE FOR PAYMENTS

                    Any payment to any Participant, the Participant’s legal representative, Beneficiary, or to any guardian or committee appointed for such Participant or Beneficiary in accordance with the provisions of the Plan, shall, to the extent thereof, be in full satisfaction of all claims hereunder against the Trustee and the Employer, either of whom may require such Participant, legal representative, Beneficiary, guardian or committee, as a condition precedent to such payment, to execute a receipt and release thereof in such form as shall be determined by the Trustee or Employer.

56

11.10     ACTION BY THE EMPLOYER

                    Whenever the Employer under the terms of the Plan is permitted or required to do or perform any act or matter or thing, it shall be done and performed by a person duly authorized by its legally constituted authority.

11.11     NAMED FIDUCIARIES AND ALLOCATION OF RESPONSIBILITY

                    The “named Fiduciaries” of this Plan are (1) the Employer, (2) the Administrator and (3) the Trustee, and (4) any Investment Manager appointed hereunder. The named Fiduciaries shall have only those specific powers, duties, responsibilities, and obligations as are specifically given them under the Plan including, but not limited to, any agreement allocating or delegating their responsibilities, the terms of which are incorporated herein by reference. In general, the Employer shall have the sole responsibility for making the contributions provided for under Section 4.1; and shall have the authority to appoint and remove the Trustee and the Administrator; to formulate the Plan’s “funding policy and method;” and to amend or terminate, in whole or in part, the Plan. The Administrator shall have the
sole responsibility for the administration of the Plan, including, but not limited to, the items specified in Article II of the Plan, as the same may be allocated or delegated thereunder. The Trustee shall have the sole responsibility of management of the assets held under the Trust, except to the extent directed pursuant to Article II or with respect to those assets, the management of which has been assigned to an Investment Manager, who shall be solely responsible for the management of the assets assigned to it, all as specifically provided in the Plan. Each named Fiduciary warrants that any directions given, information furnished, or action taken by it shall be in accordance with the provisions of the Plan, authorizing or providing for such direction, information or action. Furthermore, each named Fiduciary may rely upon any such direction, information or action of another named Fiduciary as being proper under the Plan, and is not required under the Plan to inquire into the propriety of
any such direction, information or action. It is intended under the Plan that each named Fiduciary shall be responsible for the proper exercise of its own powers, duties, responsibilities and obligations under the Plan as specified or allocated herein. No named Fiduciary shall guarantee the Trust Fund in any manner against investment loss or depreciation in asset value. Any person or group may serve in more than one Fiduciary capacity.

11.12     HEADINGS

                    The headings and subheadings of this Plan have been inserted for convenience of reference and are to be ignored in any construction of the provisions hereof.

57

11.13     APPROVAL BY INTERNAL REVENUE SERVICE

                    Notwithstanding anything herein to the contrary, if, pursuant to an application for qualification filed by or on behalf of the Plan by the time prescribed by law for filing the Employer’s return for the taxable year in which the Plan is adopted, or such later date that the Secretary of the Treasury may prescribe, the Commissioner of Internal Revenue Service or the Commissioner’s delegate should determine that the Plan does not initially qualify as a tax-exempt plan under Code Sections 401 and 501, and such determination is not contested, or if contested, is finally upheld, then if the Plan is a new plan, it shall be void ab initio and all amounts contributed to the Plan by the Employer, less expenses paid, shall be returned within one (1) year and the Plan shall terminate, and the Trustee shall be discharged from all further
obligations. If the disqualification relates to an amended plan, then the Plan shall operate as if it had not been amended.

11.14     UNIFORMITY

                    All provisions of this Plan shall be interpreted and applied in a uniform, nondiscriminatory manner. In the event of any conflict between the terms of this Plan and any Contract purchased hereunder, the Plan provisions shall control.

11.15     SECURITIES AND EXCHANGE COMMISSION APPROVAL

                    The Employer may request an interpretative letter from the Securities and Exchange Commission stating that the transfers of Company Stock contemplated hereunder do not involve transactions requiring a registration of such Company Stock under the Securities Act of 1933. In the event that a favorable interpretative letter is not obtained, the Employer reserves the right to amend the Plan and Trust retroactively to their Effective Dates in order to obtain a favorable interpretative letter or to terminate the Plan.

ARTICLE XII
 PARTICIPATING EMPLOYERS

12.1     ADOPTION BY OTHER EMPLOYERS

                    Notwithstanding anything herein to the contrary, with the consent of the Employer and Trustee, any other corporation or entity, whether an affiliate or subsidiary or not, may adopt this Plan and all of the provisions hereof, and participate herein and be known as a Participating Employer, by a properly executed document evidencing said intent and will of such Participating Employer.

12.2     REQUIREMENTS OF PARTICIPATING EMPLOYERS

	
  
 
  	
  
          (a)     Each   such Participating Employer shall be required to use the same Trustee as   provided in this Plan.
  
	
  
 
  	
  
 
  
	
   
  	
  
          (b)     The   Trustee may, but shall not be required to, commingle, hold and invest as one   Trust Fund all contributions made by Participating Employers, as well as all   increments thereof.
  

58

	
  
 
  	
  
          (c)     Any   expenses of the Plan which are to be paid by the Employer or borne by the   Trust Fund shall be paid by each Participating Employer in the same   proportion that the total amount standing to the credit of all Participants   employed by such Employer bears to the total standing to the credit of all   Participants.
  

12.3     DESIGNATION OF AGENT

                    Each Participating Employer shall be deemed to be a party to this Plan; provided, however, that with respect to all of its relations with the Trustee and Administrator for the purpose of this Plan, each Participating Employer shall be deemed to have designated irrevocably the Employer as its agent. Unless the context of the Plan clearly indicates the contrary, the word “Employer” shall be deemed to include each Participating Employer as related to its adoption of the Plan.

12.4     EMPLOYEE TRANSFERS

                    In the event an Employee is transferred between Participating Employers, accumulated service and eligibility shall be carried with the Employee involved. No such transfer shall effect a termination of employment hereunder, and the Participating Employer to which the Employee is transferred shall thereupon become obligated hereunder with respect to such Employee in the same manner as was the Participating Employer from whom the Employee was transferred.

12.5     PARTICIPATING EMPLOYER CONTRIBUTION AND FORFEITURES

                    Any contribution or Forfeiture subject to allocation during each Plan Year shall be allocated only among those Participants of the Employer or Participating Employer making the contribution or by which the forfeiting Participant was employed. However, if the contribution is made, or the forfeiting Participant was employed, by an Affiliated Employer, in which event such contribution or Forfeiture shall be allocated among all Participants of all Participating Employers who are Affiliated Employers in accordance with the provisions of this Plan. On the basis of the information furnished by the Administrator, the Trustee may keep separate books and records concerning the affairs of each Participating Employer hereunder and as to the accounts and credits of the Employees of each Participating Employer. The Trustee may, but need not, register Contracts
so as to evidence that a particular Participating Employer is the interested Employer hereunder, but in the event of an Employee transfer from one Participating Employer to another, the employing Participating Employer shall immediately notify the Trustee thereof.

12.6     AMENDMENT

                    Amendment of this Plan by the Employer at any time when there shall be a Participating Employer hereunder shall only be by the written action of each and every Participating Employer and with the consent of the Trustee where such consent is necessary in accordance with the terms of this Plan.

59

12.7     DISCONTINUANCE OF PARTICIPATION

                    Any Participating Employer shall be permitted to discontinue or revoke its participation in the Plan at any time. At the time of any such discontinuance or revocation, satisfactory evidence thereof and of any applicable conditions imposed shall be delivered to the Trustee. The Trustee shall thereafter transfer, deliver and assign Contracts and other Trust Fund assets allocable to the Participants of such Participating Employer to such new trustee as shall have been designated by such Participating Employer, in the event that it has established a separate qualified retirement plan for its Employees provided, however, that no such transfer shall be made if the result is the elimination or reduction of any “Section 411(d)(6) protected benefits” as described in Section 9.1(c). If no successor is designated, the Trustee shall
retain such assets for the Employees of said Participating Employer pursuant to the provisions of Article VII hereof. In no such event shall any part of the corpus or income of the Trust as it relates to such Participating Employer be used for or diverted for purposes other than for the exclusive benefit of the Employees of such Participating Employer.

12.8     ADMINISTRATOR’S AUTHORITY

                    The Administrator shall have authority to make any and all necessary rules or regulations, binding upon all Participating Employers and all Participants, to effectuate the purpose of this Article.

60

                    IN WITNESS WHEREOF, this Plan has been executed the day and year first above written. 

	
  
 
  	
  
CORNERSTONE COMMUNITY   BANK
  
	
  
 
  	
  
 
  
	
  
 
  	
  
By
  	
  
 
  
	
  
 
  	
  
 
  	
  

  
	
  
 
  	
  
 
  	
  
EMPLOYER
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
ATTEST
  	
  
 
  
	
   
  	
  
 
  	
  

  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
NATHANIEL F. HUGHES
  
	
  
 
  	
  
 
  
	
  
 
  	
  
By
  	
  
 
  
	
  
 
  	
  
 
  	
  

  
	
  
 
  	
  
 
  	
  
TRUSTEE
  

61

DEAR SUNGARD CORBEL CLIENT:

Enclosed is the package you ordered. This package includes IRS Forms 5300 and 5309.

There is a sheet enclosed entitled “Form 5300 Submission Instructions” which you should review and follow carefully. It’s especially important to pay close attention to the 5300 and other forms since there is information not available in our files which you or the employer must complete.

Finally, if requesting a ruling as to qualification of coverage and nondiscrimination requirements, then IRS Schedule Q, Elective Determination Requests (Schedule Q enclosed), must be included with IRS Forms 5300 and 5309. In addition to Schedule Q, you must also include various demonstrations pursuant to Schedule Q. SunGard Corbel has provided demonstrations 4 and 9. If requesting a ruling as to the form of the Plan and not on qualifications of coverage and nondiscrimination requirements, then Schedule Q is not required.

Thanks for the opportunity to serve you.

SUNGARD CORBEL

CERTIFICATE OF CORPORATE RESOLUTION

                    The undersigned Secretary of Cornerstone Community Bank (the Corporation) hereby certifies that the following resolutions were duly adopted by the board of directors of the Corporation on ______________________, and that such resolutions have not been modified or rescinded as of the date hereof:

                    RESOLVED, that the form of Employee Stock Ownership Plan and Trust effective July 1, 2005, presented to this meeting is hereby approved and adopted and that the proper officers of the Corporation are hereby authorized and directed to execute and deliver to the Trustee of the Plan one or more counterparts of the Plan.

                    RESOLVED, that for purposes of the limitations on contributions and benefits under the Plan, prescribed by Section 415 of the Internal Revenue Code, the “limitation year” shall be the Plan Year.

                    RESOLVED, that not later than the due date (including extensions hereof) of the Corporation’s federal income tax return for each of its fiscal years hereafter, the Corporation shall contribute to the Plan for each such fiscal year such amount as shall be determined by the board of directors of the Corporation and that the Treasurer of the Corporation is authorized and directed to pay such contribution to the Trustee of the Plan in cash or property and to designate to the Trustee the year for which such contribution is made.

                    RESOLVED, that the proper officers of the Corporation shall act as soon as possible to notify the employees of the Corporation of the adoption of the Employee Stock Ownership Plan by delivering to each employee a copy of the summary description of the Plan in the form of the Summary Plan Description presented to this meeting, which form is hereby approved.

                    The undersigned further certifies that attached hereto as Exhibits A, B and C, respectively, are true copies of Cornerstone Community Bank Employee Stock Ownership Plan, Summary Plan Description and Funding Policy and Method approved and adopted in the foregoing resolutions.

	
  
 
  	
  

  
	
  
 
  	
  
Secretary
  
	
   
  	
   
  
	
   
  	
  

  
	
   
  	
  Date
  

CORNERSTONE COMMUNITY BANK EMPLOYEE STOCK OWNERSHIP PLAN

 FUNDING POLICY AND METHOD

                    A pension benefit plan (as defined in the Employee Retirement Income Security Act of 1974) has been adopted by the company for the purpose of rewarding long and loyal service to the company by providing to employees additional financial security at retirement. Incidental benefits are provided in the case of disability, death or other termination of employment.

                    Since the principal purpose of the plan is to provide benefits at normal retirement age, the principal goal of the investment of the funds in the plan should be both security and long-term stability with moderate growth commensurate with the anticipated retirement dates of participants. Investments, other than “fixed dollar” investments, should be included among the plan’s investments to prevent erosion by inflation. However, investments should be sufficiently liquid to enable the plan, on short notice, to make some distributions in the event of the death or disability of a participant.EX-10.1

STOCK OPTION PURCHASE AGREEMENT

This Stock Option Purchase Agreement (“Agreement”) is entered into as of this
19th day of July, 2005, by and between CKE Restaurants, Inc., a Delaware corporation
(the “Company”), and William P. Foley II, an individual (“Optionee”).

R E C I T A L S:

WHEREAS, Optionee currently holds options (collectively, the “Options”) to purchase an
aggregate of 1,715,512 shares of common stock of the Company, as set forth in Exhibit A
attached hereto, and desires to sell all of the Options to the Company pursuant to the terms and
conditions set forth in this Agreement; and

WHEREAS, the Company is willing to purchase the Options pursuant to the terms and conditions
set forth in this Agreement.

A G R E E M E N T:

NOW, THEREFORE, in consideration of the promises and mutual covenants in this Agreement, and
for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto hereby agree as follows:

1. Purchase and Sale of Options.

1.1 Purchase and Sale. The aggregate purchase price payable to Optionee for the Options shall
be Eleven Million Dollars ($11,000,000) (the “Purchase Price”). Each party hereto
acknowledges that the Purchase Price was the result of arm’s length negotiations and represents the
full and fair consideration for the Options and the rights to purchase the shares of the Company’s
common stock represented thereby.

1.2 Cancellation and Surrender of Options. Concurrent with the date hereof, Optionee agrees
and acknowledges that, upon payment by the Company of the Purchase Price, the Company will cancel
and terminate the Options and all rights to purchase shares of common stock of the Company
thereunder. In addition, promptly following the payment by the Company of the Purchase Price,
Optionee agrees to deliver to the Company for cancellation those stock option agreements pursuant
to which the Options were granted. The Optionee agrees that any stock option agreements or similar
instruments relating to the Options previously entered into between the Company and the Optionee
are hereby irrevocably terminated automatically upon delivery of the Purchase Price to the Optionee
and that the Optionee waives and relinquishes any and all rights to the Options, including the
right to exercise any such Options prior to, on or after the date hereof.

2. Withholding. Optionee acknowledges that all appropriate federal, state and other tax
withholdings may be deducted from the payments provided for in Section 1. Optionee shall
be solely responsible for all applicable taxes relating to the payments provided for in Section
1 above.

3. Representations and Warranties of Optionee. Optionee hereby represents and warrants to the
Company as follows:

3.1 Title. Optionee owns the Options free and clear of all liens, charges, claims,
encumbrances, security interests, equities, restrictions on transfer or other defects in title of
any kind or description. Optionee has not transferred any of the Options or granted any option,
warrant, right to purchase or any similar right or interest in or to any of the Options.

3.2 Legal Power. Optionee has the full legal right and authority to enter into this Agreement
and to consummate the transactions contemplated hereby.

3.3 Enforceability; No Conflict. This Agreement has been duly executed and delivered by
Optionee, and constitutes Optionee’s legal, valid and binding obligation, enforceable against him
in accordance with its terms. The execution, delivery and performance by Optionee of this
Agreement, and the consummation of the transactions contemplated hereby, do not and will not result
in or constitute (i) a default, breach or violation under any mortgage, deed of trust, indenture,
note, bond, license, lease agreement or other instrument to which he is a party or by which any of
his properties or assets are bound or (ii) a violation of any statute, rule, regulation, order,
judgment or decree of any court, public body or authority applicable to Optionee or the Options.

3.4 Access to Information; Informed Decision. Optionee is familiar with and understands the
Company’s business, assets and operations and the regulatory, industry and market conditions under
which the Company operates. Optionee also has been provided access to and the opportunity to
review all material financial and business records of the Company, and to ask such questions of the
current officers of the Company, as he deemed necessary to make a deliberate and informed decision
as to whether to sell the Options on the terms and conditions provided for in this Agreement. In
addition, Optionee has retained or has had the opportunity to retain counsel of his own choosing to
represent him in connection with the negotiation and preparation of this Agreement and has not
relied upon counsel for the Company in connection herewith.

3.5 Consideration. Optionee acknowledges and agrees that no additional consideration has been
promised to Optionee and that the consideration to be paid pursuant to the terms of this Agreement
is full and fair consideration for the Options.

4. Miscellaneous.

4.1 Severability. Should any provision or portion of this Agreement be held to be
unenforceable or invalid for any reason, the remaining provisions and portions of this Agreement
shall be unaffected by such holding.

4.2 Entire Agreement. This Agreement constitutes the entire agreement between the parties
hereto pertaining to the subject matter hereof and supersedes all prior agreements, understandings,
negotiations and discussions, whether oral or written. No supplement, modification, waiver or
termination of this Agreement shall be binding unless executed in writing by the party to be bound
thereby. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute
a waiver of any other provisions hereof (whether or not similar), nor shall such waiver constitute
a continuing waiver unless otherwise expressly provided.

4.3 Further Assurances. Each party hereto shall, from time to time at and after the date
hereof, execute and deliver such instruments, documents and assurances and take such further
actions as the other party may reasonably request in order to carry out the purpose and intent of
this Agreement.

4.4 Governing Law; Successors and Assigns. This Agreement shall be governed by the laws of
the State of California without regard for conflicts of laws principles and shall be binding upon
the heirs, personal representatives, executors, administrators, successors and assigns of the
Optionee.

4.5 Waivers. No waiver of any breach or default hereunder shall be considered valid unless in
writing, and no such waiver shall be deemed a waiver of any subsequent breach or default of the
same or similar nature.

4.6 Counterparts; Delivery. This Agreement may be executed in two or more counterparts, each
of which shall be deemed an original and all of which together shall be deemed one instrument.
This Agreement may be delivered by facsimile.

[SIGNATURE PAGE FOLLOWS]

1

IN WITNESS WHEREOF, this Stock Option Purchase Agreement has been executed as of the date and
year first above written.

	 	 	 	 	 
	OPTIONEE:	 	COMPANY:
	 	 	CKE RESTAURANTS, INC.,
	 	 	a Delaware corporation
	 
	 	/s/ Andrew F. Puzder
	/s/ William P. Foley II
	 	 	—	 
	—
	 	Andrew F. Puzder

	William P. Foley II
	 	President and Chief Executive Officer

2

Exhibit A

Outstanding Options

	 	 	 	 	 
	Date of Option Grant	 	Number of Options
	Vested Options	 	 	 	 
	01/10/96
	 	 	272,250	 
	11/14/96
	 	 	226,875	 
	06/18/97
	 	 	242,000	 
	03/24/99
	 	 	200,000	 
	04/09/99
	 	 	179,312	 
	04/09/99
	 	 	20,688	 
	06/18/02
	 	 	100,000	 
	06/10/03
	 	 	33,334	 
	06/14/04
	 	 	16,667	 
	05/13/99
	 	 	147,300	 
	01/05/00
	 	 	73,650	 
	10/25/00
	 	 	104,337	 
	10/31/01
	 	 	49,100	 
	 
	 	 	 	 
	Total Vested Options
	 	 	1,665,513	 
	Unvested Options
	 	 	 	 
	06/10/03
	 	 	16,666	 
	06/14/04
	 	 	33,333	 
	 
	 	 	 	 
	Total Unvested Options
	 	 	49,999	 
	Total Outstanding Options
	 	 	1,715,512	 

3

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