Document:

ex101.htm

    THIS
      PRIVATE PLACEMENT SUBSCRIPTION AGREEMENT (THE "SUBSCRIPTION AGREEMENT") RELATES
      TO AN OFFERING OF SECURITIES IN AN OFFSHORE TRANSACTION TO PERSONS WHO ARE
      NOT
      U.S. PERSONS (AS DEFINED HEREIN) PURSUANT TO REGULATION S UNDER THE UNITED
      STATES SECURITIES ACT OF 1933, AS AMENDED (THE "1933
      ACT").

     

    NONE
      OF THE SECURITIES TO WHICH THIS SUBSCRIPTION AGREEMENT RELATES HAVE BEEN
      REGISTERED UNDER THE 1933 ACT, OR ANY U.S. STATE SECURITIES LAWS, AND, UNLESS
      SO
      REGISTERED, NONE MAY BE OFFERED OR SOLD, DIRECTLY OR INDIRECTLY, IN THE UNITED
      STATES OR TO U.S. PERSONS (AS DEFINED HEREIN) EXCEPT IN ACCORDANCE WITH THE
      PROVISIONS OF REGULATION S UNDER THE 1933 ACT, PURSUANT TO AN EFFECTIVE
      REGISTRATION STATEMENT UNDER THE 1933 ACT, OR PURSUANT TO AN AVAILABLE EXEMPTION
      FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF
      THE
      1933 ACT AND IN EACH CASE ONLY IN ACCORDANCE WITH APPLICABLE STATE SECURITIES
      AND PROVINCIAL LAWS.  IN ADDITION, HEDGING TRANSACTIONS INVOLVING THE
      SECURITIES MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE 1933
      ACT.

     

    SUBSCRIPTION
      AGREEMENT

     

    THIS
      SUBSCRIPTION AGREEMENT (the "Agreement") made as of September 1,
      2007.

     

    
      	
              BETWEEN:

            	
              AVRO
                ENERGY INC. (the
                "Company")

            

    

     

    

     

    

    
      	
              AND:

            	
              JURG
                HERMANN  (the
                "Subscriber")

            

    

    

    

     

    
      	
               

            	
               WHEREAS:

            

    

     

    The
      Subscriber wishes to purchase
264,000 shares of common stock in the Company for a purchase
      price of $66,000;

     

    Avro
      Energy Inc. has agreed to sell
      certain shares of common stock to the Subscriber; and

     

    NOW
      THEREFORE THIS AGREEMENT witnesses
      that, for good and valuable consideration, the receipt and sufficiency of which
      is hereby acknowledged, the parties hereto agree as follows:

     

    
      	
              1.  

            	
              Interpretation

            

    

     

    1.1  In
      this
      Agreement, words importing the singular number only shall include the plural
      and
      vice versa, words importing gender shall include all genders and words importing
      persons shall include individuals, corporations, partnerships, associations,
      trusts, unincorporated organizations, governmental bodies and other legal or
      business entities of any kind whatsoever.

     

    1.2  Any
      reference to currency is to the currency of the United States of America unless
      otherwise indicated.

     

    

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    
      	
              2.  

            	
              Documents
                Required from
                Subscriber

            

    

     

    2.1  The
      Subscriber must complete, sign and return to the Company:

     

    
      	
              (a)  

            	
              an
                executed copy of this Agreement,
                and

            

    

     

    2.2  The
      Subscriber shall complete, sign and return to the Company as soon as possible,
      on request by the Company, any documents, questionnaires, notices and
      undertakings as may be required by regulatory authorities, the National
      Association of Securities Dealers Over-the-Counter Bulletin Board (the “OTC
      Bulletin Board”) and applicable law.

     

    
      	
              3.  

            	
              Closing

            

    

     

     

    3.1  Closing
      of the offering of the Shares (the "Closing") shall occur on or before September
      15, 2007, or on such other date as may be determined by the Company (the
      "Closing Date"), payment shall be as follows:

     

    
      	
              (a)  

            	
              $66,000
                upon signing of this
                subscription;

            

    

     

    
      	
              4.  

            	
              Acknowledgements
                of Subscriber

            

    

     

    4.1  The
      Subscriber acknowledges and agrees that:

     

    
      	
              (a)  

            	
              none
                of the Shares have been or will be registered under the 1933 Act,
                or under
                any state securities or "blue sky" laws of any state of the United
                States,
                and, unless so registered, may not be offered or sold in the United
                States
                or, directly or indirectly, to U.S. Persons, as that term is defined
                in
                Regulation S under the 1933 Act ("Regulation S"), except in accordance
                with the provisions of Regulation S, pursuant to an effective registration
                statement under the 1933 Act, or pursuant to an exemption from, or
                in a
                transaction not subject to, the registration requirements of the
                1933 Act
                and in each case only in accordance with applicable state and provincial
                securities laws;

            

    

     

    
      	
              (b)  

            	
              the
                Company has not undertaken, and will have no obligation, to register
                any
                of the Shares under the 1933 Act or any other securities
                legislation;

            

    

     

    
      	
              (c)  

            	
              he
                has received and carefully read this
                Agreement;

            

    

     

    
      	
              (d)  

            	
              the
                decision to execute this Agreement and purchase the Shares agreed
                to be
                purchased hereunder has not been based upon any oral or written
                representation as to fact or otherwise made by or on behalf of the
                Company
                and such decision is based entirely upon a review of any public
                information which has been filed by the Company with the Securities
                and
                Exchange Commission ("SEC") in compliance, or intended compliance,
                with
                applicable securities legislation;

            

    

     

    
      	
              (e)  

            	
              he
                and his advisor(s) have had a reasonable opportunity to ask questions
                of
                and receive answers from the Company in connection with the sale
                of the
                Shares hereunder, and to obtain additional information, to the extent
                possessed or obtainable by the Company without unreasonable effort
                or
                expense;

            

    

     

    
      	
              (f)  

            	
              the
                books and records of the Company were available upon reasonable notice
                for
                inspection, subject to certain confidentiality restrictions, by the
                Subscriber during reasonable business hours at its principal place
                of
                business and that all documents, records and books in connection
                with the
                sale of the Shares hereunder have been made available for inspection
                by
                him and his attorney and/or
                advisor(s);

            

    

     

    
      	
              (g)  

            	
              the
                Company is entitled to rely on the representations and warranties
                of the
                Subscriber contained in this Agreement and the Subscriber will hold
                harmless the Company from any loss or damage it or they may suffer
                as a
                result of the Subscriber's failure to correctly complete this
                Agreement;

            

    

     

     

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    
      	
              (h)  

            	
              the
                Subscriber will indemnify and hold harmless the Company and, where
                applicable, its respective directors, officers, employees, agents,
                advisors and shareholders from and against any and all loss, liability,
                claim, damage and expense whatsoever (including, but not limited
                to, any
                and all fees, costs and expenses whatsoever reasonably incurred in
                investigating, preparing or defending against any claim, lawsuit,
                administrative proceeding or investigation whether commenced or
                threatened) arising out of or based upon any representation or warranty
                of
                the Subscriber contained herein or in any document furnished by the
                Subscriber to the Company in connection herewith being untrue in
                any
                material respect or any breach or failure by the Subscriber to comply
                with
                any covenant or agreement made by the Subscriber to the Company in
                connection therewith;

            

    

     

    
      	
              (i)  

            	
              the
                Subscriber has been advised to consult the Subscriber's own legal,
                tax and
                other advisors with respect to the merits and risks of an investment
                in
                the Shares and with respect to applicable resale restrictions, and
                it is
                solely responsible (and the Company is not in any way responsible)
                for
                compliance with:

            

    

     

    
      	
              (i)  

            	
              any
                applicable laws of the jurisdiction in which the Subscriber is resident
                in
                connection with the distribution of the Shares hereunder,
                and

            

    

     

    
      	
              (ii)  

            	
              applicable
                resale restrictions;

            

    

     

    
      	
              (j)  

            	
              in
                addition to resale restrictions imposed under U.S. securities laws,
                there
                are additional restrictions on the Subscriber's ability to resell
                the
                Shares under the Securities Act (British Columbia) and Multilateral
                Instrument 45-102 adopted by the British Columbia Securities
                Commission;

            

    

     

    
      	
              (k)  

            	
              the
                Company has advised the Subscriber that the Company is relying on
                an
                exemption from the requirements to provide the Subscriber with a
                prospectus to sell the Shares and, as a consequence of acquiring
                the
                Shares pursuant to such exemption certain protections, rights and
                remedies
                provided by the applicable securities legislation of British Columbia
                including statutory rights of rescission or damages, will not be
                available
                to the Subscriber;

            

    

     

    
      	
              (l)  

            	
              none
                of the Shares are listed on any stock exchange or automated dealer
                quotation system and no representation has been made to the Subscriber
                that any of the Shares will become listed on any stock exchange or
                automated dealer quotation system, except that currently certain
                market
                makers make market in the common shares of the Company on the OTC
                Bulletin
                Board;

            

    

     

    
      	
              (m)  

            	
              the
                Subscriber is outside the United States when receiving and executing
                this
                Agreement and is acquiring the Shares as principal for its own account,
                for investment purposes only, and not with a view to, or for, resale,
                distribution or fractionalization thereof, in whole or in part, and
                no
                other person has a direct or indirect beneficial interest in such
                Shares;

            

    

     

    
      	
              (n)  

            	
              none
                of the Shares may be offered or sold to a U.S. Person or for the
                account
                or benefit of a U.S. Person (other than a distributor) prior to the
                end of
                the Distribution Compliance Period (as defined
                herein);

            

    

     

    
      	
              (o)  

            	
              neither
                the SEC nor any other securities commission or similar regulatory
                authority has reviewed or passed on the merits of the
                Shares;

            

    

     

    
      	
              (p)  

            	
              no
                documents in connection with the sale of the Shares hereunder have
                been
                reviewed by the SEC or any state securities
                administrators;

            

    

     

    
      	
              (q)  

            	
              there
                is no government or other insurance covering any of the
                Shares;

            

    

     

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    
      	
              (r)  

            	
              the
                issuance and sale of the Shares to the Subscriber will not be completed
                if
                it would be unlawful or if, in the discretion of the Company acting
                reasonably, it is not in the best interests of the
                Company;

            

    

     

    
      	
              (s)  

            	
              the
                Subscriber is purchasing the Shares pursuant to an exemption from
                the
                registration and the prospectus requirements of applicable securities
                legislation on the basis that the Subscriber is an accredited investor
                of
                the Company and, as a consequence:

            

    

     

    
      	
              (i)  

            	
              is
                restricted from using most of the civil remedies available under
                securities legislation,

            

    

     

    
      	
              (ii)  

            	
              may
                not receive information that would otherwise be required to be provided
                under securities legislation, and

            

    

     

    
      	
              (iii)  

            	
              the
                Company is relieved from certain obligations that would otherwise
                apply
                under securities legislation;

            

    

     

    
      	
              (t)  

            	
              the
                statutory and regulatory basis for the exemption claimed for the
                offer and
                sale of the Shares, although in technical compliance with Regulation
                S,
                would not be available if the offering is part of a plan or scheme
                to
                evade the registration provisions of the 1933 Act;
                and

            

    

     

    
      	
              (u)  

            	
              this
                Agreement is not enforceable by the Subscriber unless it has been
                accepted
                by the Company.

            

    

     

    
      	
              5.  

            	
              Representations,
                Warranties and Covenants of the
                Subscriber

            

    

     

    5.1  The
      Subscriber hereby represents and warrants to and covenants with the Company
      (which representations, warranties and covenants shall survive the Closing)
      that:

     

    
      	
              (a)  

            	
              the
                Subscriber is not a U.S. Person;

            

    

     

    
      	
              (b)  

            	
              by
                completing the Questionnaire, the Subscriber is representing and
                warranting that the Subscriber is an “Accredited Investor”, as that term
                is defined in National Instrument 45-106 adopted by the British Columbia
                Securities Commission;

            

    

    

     

    
      	
              (c)  

            	
              the
                Subscriber is not acquiring the Shares for the account or benefit
                of,
                directly or indirectly, any U.S.
                Person;

            

    

     

    
      	
              (d)  

            	
              the
                Subscriber is resident in the jurisdiction set out under the heading
                "Name
                and Address of Subscriber" on the signature page of this Agreement
                and the
                sale of the Shares to the Subscriber as contemplated in this Agreement
                complies with or is exempt from the applicable securities legislation
                of
                the jurisdiction of residence of the
                Subscriber;

            

    

     

    
      	
              (e)  

            	
              the
                Subscriber is purchasing the Shares as principal for investment purposes
                only and not with a view to resale or distribution and, in particular,
                the
                Subscriber has no intention to distribute, either directly or indirectly,
                any of the Shares in the United States or to U.S.
                Persons;

            

    

     

    
      	
              (f)  

            	
              the
                Subscriber is outside the United States when receiving and executing
                this
                Agreement;

            

    

     

    
      	
              (g)  

            	
              the
                Subscriber is aware that an investment in the Company is speculative
                and
                involves certain risks, including the possible loss of the entire
                investment;

            

    

     

    
      	
              (h)  

            	
              the
                Subscriber has made an independent examination and investigation
                of an
                investment in the Shares and the Company and has depended on the
                advice of
                its legal and financial advisors and agrees that the Company will
                not be
                responsible in any way whatsoever for the Subscriber's decision to
                invest
                in the Shares and the Company;

            

    

     

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    
      	
              (i)  

            	
              the
                Subscriber (i) has adequate net worth and means of providing for
                its
                current financial needs and possible personal contingencies, (ii)
                has no
                need for liquidity in this investment, (iii) is able to bear the
                economic
                risks of an investment in the Shares for an indefinite period of
                time and
                can afford the complete loss of such investment and (iv) has such
                knowledge and experience in financial and business matters as to
                be
                capable of evaluating the merits and risks of its investment in the
                Shares
                and the Company;

            

    

     

    
      	
              (j)  

            	
              the
                Subscriber understands and agrees that the Company and others will
                rely
                upon the truth and accuracy of the acknowledgements, representations
                and
                agreements contained in this Agreement and agrees that if any of
                such
                acknowledgements, representations and agreements are no longer accurate
                or
                have been breached, the Subscriber shall promptly notify the
                Company;

            

    

     

    
      	
              (k)  

            	
              the
                Subscriber has the legal capacity and competence to enter into and
                execute
                this Agreement and to take all actions required pursuant
                hereto;

            

    

     

    
      	
              (l)  

            	
              the
                Subscriber has duly executed and delivered this Agreement and it
                constitutes a valid and binding agreement of the Subscriber enforceable
                against the Subscriber in accordance with its
                terms;

            

    

     

    
      	
              (m)  

            	
              the
                Subscriber is not an underwriter of, or dealer in, the common shares
                of
                the Company, nor is the Subscriber participating, pursuant to a
                contractual agreement or otherwise, in the distribution of the
                Shares;

            

    

     

    
      	
              (n)  

            	
              the
                Subscriber understands and agrees that none of the Shares have been
                registered under the 1933 Act, or under any state securities or "blue
                sky"
                laws of any state of the United States, and, unless so registered,
                may not
                be offered or sold in the United States or, directly or indirectly,
                to
                U.S. Persons except in accordance with the provisions of Regulation
                S,
                pursuant to an effective registration statement under the 1933 Act,
                or
                pursuant to an exemption from, or in a transaction not subject to,
                the
                registration requirements of the 1933 Act and in each case only in
                accordance with applicable state and provincial securities
                laws;

            

    

     

    
      	
              (o)  

            	
              it
                is not an underwriter of, or dealer in, the common shares of the
                Company,
                nor is the Subscriber participating, pursuant to a contractual agreement
                or otherwise, in the distribution of the
                Shares;

            

    

     

    
      	
              (p)  

            	
              the
                Subscriber understands and agrees that offers and sales of any of
                the
                Shares prior to the expiration of a period of one year after the
                date of
                original issuance of the Shares (the one year period hereinafter
                referred
                to as the "Distribution Compliance Period") shall only be made in
                compliance with the safe harbor provisions set forth in Regulation
                S,
                pursuant to the registration provisions of the 1933 Act or an exemption
                therefrom, and that all offers and sales after the Distribution Compliance
                Period shall be made only in compliance with the registration provisions
                of the 1933 Act or an exemption therefrom and in each case only in
                accordance with applicable state and provincial securities
                laws;

            

    

     

    
      	
              (q)  

            	
              the
                Subscriber understands and agrees not to engage in any hedging
                transactions involving any of the Shares unless such transactions
                are in
                compliance with the provisions of the 1933 Act and in each case only
                in
                accordance with applicable state and provincial securities
                laws;

            

    

     

    
      	
              (r)  

            	
              the
                Subscriber understands and agrees that the Company will refuse to
                register
                any transfer of the Shares not made in accordance with the provisions
                of
                Regulation S, pursuant to an effective registration statement under
                the
                1933 Act or pursuant to an available exemption from the registration
                requirements of the 1933 Act;

            

    

     

    
      	
              (s)  

            	
              the
                Subscriber acknowledges that it has not acquired the Shares as a
                result
                of, and will not itself engage in, any "directed selling efforts"
                (as
                defined in Regulation S under the 1933 Act) in the United States
                in
                respect of any of the Shares which would include any activities undertaken
                for the purpose of, or that could reasonably be expected to have
                the
                effect of, conditioning the market in the United States for the resale
                of
                any of the Shares; provided, however, that the Subscriber may sell
                or
                otherwise dispose of any of the Shares pursuant to registration of
                any of
                the Shares pursuant to the 1933 Act and any applicable state securities
                laws or under an exemption from such registration requirements and
                as
                otherwise provided herein;

            

    

     

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    
      	
              (t)  

            	
              the
                Subscriber is not aware of any advertisement of any of the Shares
                and is
                not acquiring the Shares as a result of any form of general solicitation
                or general advertising including advertisements, articles, notices
                or
                other communications published in any newspaper, magazine or similar
                media
                or broadcast over radio or television, or any seminar or meeting
                whose
                attendees have been invited by general solicitation or general
                advertising; and

            

    

     

    
      	
              (u)  

            	
              no
                person has made to the Subscriber any written or oral
                representations:

            

    

     

    
      	
              (i)  

            	
              that
                any person will resell or repurchase any of the
                Shares;

            

    

     

    
      	
              (ii)  

            	
              that
                any person will refund the purchase price of any of the
                Shares;

            

    

     

    
      	
              (iii)  

            	
              as
                to the future price or value of any of the Shares;
                or

            

    

     

    
      	
              (iv)  

            	
              that
                any of the Shares will be listed and posted for trading on any stock
                exchange or automated dealer quotation system or that application
                has been
                made to list and post any of the Shares of the Company on any stock
                exchange or automated dealer quotation
                system.

            

    

     

    5.2  In
      this
      Agreement, the term "U.S. Person" shall have the meaning ascribed thereto in
      Regulation S.

     

    
      	
              6.  

            	
              Representations
                and Warranties will be Relied Upon by the
                Company

            

    

     

    6.1  The
      Subscriber acknowledges that the representations and warranties contained herein
      are made by it with the intention that such representations and warranties
      may
      be relied upon by the Company and its legal counsel in determining the
      Subscriber's eligibility to purchase the Shares under applicable securities
      legislation, or (if applicable) the eligibility of others on whose behalf it
      is
      contracting hereunder to purchase the Shares under applicable securities
      legislation.  The Subscriber further agrees that by accepting delivery
      of the certificates representing the Shares on the Closing Date, it will be
      representing and warranting that the representations and warranties contained
      herein are true and correct as at the Closing Date with the same force and
      effect as if they had been made by the Subscriber on the Closing Date and that
      they will survive the purchase by the Subscriber of Shares and will continue
      in
      full force and effect notwithstanding any subsequent disposition by the
      Subscriber of such Shares.

     

    
      	
              7.  

            	
              Resale
                Restrictions

            

    

     

    7.1  The
      Subscriber acknowledges that any resale of the Shares will be subject to resale
      restrictions contained in the securities legislation applicable to each
      Subscriber or proposed transferee.  The Subscriber acknowledges that
      the Shares have not been registered under the 1933 Act of the securities laws
      of
      any state of the United States.  The Shares may not be offered or sold
      in the United States unless registered in accordance with United States federal
      securities laws and all applicable state and provincial securities laws or
      exemptions from such registration requirements are available.

     

    7.2  The
      Subscriber acknowledges that restrictions on the transfer, sale or other
      subsequent disposition of the Shares by the Subscriber may be imposed by
      securities laws in addition to any restrictions referred to in Section 7.1 above, and, in particular, the Subscriber
      acknowledges and agrees that:

     

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    
      	
              (a)  

            	
              none
                of the Shares may be offered or sold to a U.S. Person or for the
                account
                or benefit of a U.S. Person (other than a distributor) prior to the
                end of
                the Distribution Compliance Period;
                and

            

    

     

    
      	
              (b)  

            	
              the
                Company is not a reporting issuer in any of the Provinces of Canada
                and
                therefore resale of any of the Shares in Canada is restricted except
                pursuant to an exemption from applicable securities
                legislation.

            

    

     

    
      	
              8.  

            	
              Acknowledgement
                and Waiver

            

    

     

    8.1  The
      Subscriber has acknowledged that the decision to purchase the Shares was solely
      made on the basis of publicly available information.  The Subscriber
      hereby waives, to the fullest extent permitted by law, any rights of withdrawal,
      rescission or compensation for damages to which the Subscriber might be entitled
      in connection with the distribution of any of the Shares.

     

    
      	
              9.  

            	
              Legending
                and Registration of Subject
                Shares

            

    

     

    9.1  The
      Subscriber hereby acknowledges that a legend may be placed on the certificates
      representing any of the Shares to the effect that the Shares represented by
      such
      certificates are subject to a hold period and may not be traded until the expiry
      of such hold period except as permitted by applicable securities
      legislation.

     

    9.2  The
      Subscriber hereby acknowledges and agrees to the Company making a notation
      on
      its records or giving instructions to the registrar and transfer agent of the
      Company in order to implement the restrictions on transfer set forth and
      described in this Agreement.

     

    
      	
              10.  

            	
              Costs

            

    

     

    10.1  The
      Subscriber acknowledges and agrees that all costs and expenses incurred by
      the
      Subscriber (including any fees and disbursements of any special counsel retained
      by the Subscriber) relating to the purchase of the Shares shall be borne by
      the
      Subscriber.

     

    
      	
              11.  

            	
              Governing
                Law

            

    

     

    11.1  This
      Agreement is governed by the laws of the State of Nevada applicable
      herein.

     

    
      	
              12.       
                

            	
              Survival

            

    

     

    12.1  This
      Agreement, including without limitation the representations, warranties and
      covenants contained herein, shall survive and continue in full force and effect
      and be binding upon the parties hereto notwithstanding the completion of the
      purchase of the Shares by the Subscriber pursuant hereto.

     

    
      	
              13.        
                

            	
              Assignment

            

    

     

    13.1  This
      Agreement is not transferable or assignable.

     

    
      	
              14.        
                

            	
              Execution

            

    

     

    14.1  The
      Company shall be entitled to rely on delivery by facsimile machine of an
      executed copy of this Agreement and acceptance by the Company of such facsimile
      copy shall be equally effective to create a valid and binding agreement between
      the Subscriber and the Company in accordance with the terms hereof.

     

    
      	
              15.       
                

            	
              Severability

            

    

     

    15.1  The
      invalidity or unenforceability of any particular provision of this Agreement
      shall not affect or limit the validity or enforceability of the remaining
      provisions of this Agreement.

     

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

     

    
      	
              16.       
                

            	
              Entire
                Agreement

            

    

     

    16.1  Except
      as
      expressly provided in this Agreement and in the agreements, instruments and
      other documents contemplated or provided for herein, this Agreement contains
      the
      entire agreement between the parties with respect to the sale of the Shares
      and
      there are no other terms, conditions, representations or warranties, whether
      expressed, implied, oral or written, by statute or common law, by the Company
      or
      by anyone else.

     

    
      	
              17.        
                

            	
              Notices

            

    

     

    17.1  All
      notices and other communications hereunder shall be in writing and shall be
      deemed to have been duly given if mailed or transmitted by any standard form
      of
      telecommunication.  Notices to the Subscriber shall be directed to the
      address on page 9and
      notices to the Company shall be directed to it at the address set forth on
      page
      1 of this Agreement.

     

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

     

    
      	
              18.        
                

            	
              Counterparts

            

    

     

    18.1  This
      Agreement may be executed in any number of counterparts, each of which, when
      so
      executed and delivered, shall constitute an original and all of which together
      shall constitute one instrument.

     

    IN
      WITNESS WHEREOF the Subscriber has duly executed this Agreement as of
      the date first above mentioned.

     

    DELIVERY
      INSTRUCTIONS

     

    
      	
              1.  

            	
              Delivery
                - please deliver the certificates
                to:

            

    

     

    
      	
               

            	
            

    

     

    
      	
               

            	 

    

     

    
      	
              2.  

            	
              Registration
                - registration of the certificates which are to be delivered at closing
                should be made as follows:

            

    

     

    
      	
               

            	 

    

    
      	
               

            	
              (name)

            

    

     

    
      	
               

            	 

    

    
      	
               

            	
              (address)

            

    

     

    
      	
              3.  

            	
              The
                undersigned hereby acknowledges that it will deliver to the Company
                all
                such additional completed forms in respect of the Subscriber's purchase
                of
                the Shares as may be required for filing with the appropriate securities
                commissions and regulatory
                authorities.

            

    

     

     

    
      	 	JURG
              HERMANN                                                      
	 	(Name
              of Subscriber – Please type
              or print)
	 	 
	 	/s/
              JURG HERMANN
	 	(Signature
              and, if applicable,
              Office)
	 	 
	 	Austrasse
              6
	 	(Address
              of
              Subscriber)
	 	 
	 	Adliswil,
              CH
              8134                                                      
	 	(City,
              State or Province, Postal Code of Subscriber)
	 	 
	 	Switzerland   
	 	(Country
              of Subscriber)

    

     

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

     

    

    

    A
      C C E P T A N C E

     

    The
      above-mentioned Agreement in respect of the Shares is hereby accepted by AVRO
      ENERGY, INC.

     

     

    
      	 	
              AVRO
                ENERGY INC.

            	 
	 	 	 	 
	
              DATED
                , the
                1st  day
                of September, 2007.

            	
              By:
                

            	/s/ Mike
              Kurtanjek	 
	 	 	MIKE  KURTANJEK	 
	 	 	 	 
	 	 	 	 

    

     

     

     

    10ffe_8k-ex1001.htm

     

    EXHIBIT
      10.1

     

    FIRST
      AMENDMENT TO THE

     

    FROZEN
      FOOD EXPRESS INDUSTRIES, INC. 401(K) SAVINGS PLAN

     

    This
      Amendment is adopted by FROZEN
      FOOD EXPRESS INDUSTRIES, INC. (the “Company”), a Texas
      Corporation, having its principal office in Dallas, Texas.

     

    R
      e c i t a l s:

     

    WHEREAS,
      the Company has previously established the Frozen Food Express Industries,
      Inc.
      401(k) Savings Plan, as amended and restated, effective January 1, 2007 (the
      “Plan”), for the benefit of those employees who qualify thereunder and for their
      beneficiaries; and

     

    WHEREAS,
      the restatement of the Plan reflects provisions of Treasury Regulation
      Section 1.401(k) and Treasury Regulation Section 1.401(m) that are
      effective for Plan Years beginning on and after January 1, 2006;
      and

     

    WHEREAS,
      the Company desires to amend the Plan to further reflect and clarify certain
      provisions of Treasury Regulation Section 1.401(k) and Treasury Regulation
      Section 1.401(m) that are effective for Plan Years beginning on and after
      January 1, 2006.

     

    NOW,
      THEREFORE, pursuant to Section 15.1 of the Plan, the Plan is hereby
      amended as follows, effective January 1, 2006:

     

    
      	
              1.

            	
              Section
                4.1(b) of the Plan is hereby amended to be and read as
                follows:

            

    

     

    
      	
               

            	
              (b)

            	
              A
                Participant who does not have an election to have Savings Contributions
                made on his behalf in effect, or any Participant who would like to
                amend
                his election, may make such election or amend such election, effective
                as
                of the next following payroll period by filing an election with the
                Plan
                Administrator within a reasonable time prior to commencement of such
                payroll period.  The Plan Administrator may permit a Participant
                to make an election under this Section through any written, electronic
                or
                telephonic means authorized by the Committee.   Any
                contributions made pursuant to a deferral election shall not be made
                before the earlier of (1) the Participant’s performance of Service with
                respect to which the contribution is made and (2) when the compensation
                that is subject to the election would be currently available to the
                Employee in the absence of an election to
                defer.

            

    

     

    
      	
              2.

            	
              Section
                4.1(f) of the Plan is hereby amended to be and read as
                follows:

            

    

     

    
      	
               

            	
              (f)

            	
              Limitations
                on Savings Contributions.

            

    

     

    
      	
               

            	
              (i)

            	
              Actual
                Deferral Percentage Test. The annual allocation derived from Savings
                Contributions to a Participant’s Savings Account shall satisfy one of the
                following Actual Deferral Percentage (“ADP”)
                Tests:

            

    

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    
      	
               

            	
              (A)

            	
              The
                Average Actual Deferral Percentage for Participants who are Eligible
                Highly Compensated Employees for the Plan Year shall not exceed the
                Average Actual Deferral Percentage for Participants who are Eligible
                Nonhighly Compensated Employees for the current Plan Year multiplied
                by
                1.25; or

            

    

     

    
      	
               

            	
              (B)

            	
              The
                Average Actual Deferral Percentage for Participants who are Eligible
                Highly Compensated Employees for the Plan Year shall not exceed the
                Average Actual Deferral Percentage for Participants who are Eligible
                Nonhighly Compensated Employees for the current Plan Year multiplied
                by
                two (2); provided that the Average Actual Deferral Percentage for
                Participants who are Eligible Highly Compensated Employees for the
                Plan
                Year does not exceed the Average Actual Deferral Percentage for
                Participants who are Eligible Nonhighly Compensated Employees for
                the
                current Plan Year by more than two (2) percentage
                points.

            

    

     

    
      	
               

            	
              (ii)

            	
              Definitions.
                For the purposes of this Section, the following definitions shall
                apply:

            

    

     

    
      	
               

            	
              (A)

            	
              Actual
                Deferral Ratio means the ratio, expressed as a percentage, of (A) the
                amount of Savings Contributions actually paid to the Trust Fund on
                behalf
                of the Eligible Participant for the Plan Year to (B) the Eligible
                Participant’s Testing Compensation for the Plan Year, whether or not the
                Employee was a Participant for the entire Plan Year. Employer
                Contributions on behalf of any Participant shall include: (A) any
                Savings
                Contributions made pursuant to the Eligible Participant’s Elective
                Deferrals (including Excess Elective Deferrals of Highly Compensated
                Employees), but excluding (1) Excess Elective Deferrals of Nonhighly
                Compensated Employees that arise solely from Elective Deferrals made
                under
                the plan or plans of the Employer, and (2) Savings Contributions
                that are
                taken into account in the Actual Contribution Percentage Test (provided
                the ADP Test is satisfied both with and without exclusion of these
                Savings
                Contributions); and (B) at the election of the Employer, Qualified
                Non-Elective Contributions and Qualified Matching Contributions.
                An
                Employer Elective Contribution will be taken into account under the
                ADP
                Test for a Plan Year only if it relates to compensation that either
                would
                have been received by the Employee in the Plan Year, but for the
                deferral
                election, or is attributable to services performed by the Employee
                in the
                Plan Year and would have been received by the Employee within two
                and
                one-half (21⁄2) months after the close of the Plan Year, but for the
                deferral election. In computing the Actual Deferral Ratios, an Employee
                who would be a Participant but for the failure to make Elective Deferrals
                shall be treated as a Participant on whose behalf no Savings Contributions
                are made.

            

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    
      	
               

            	
              (B)

            	
              Average
                Actual Deferral Percentage means the average, expressed as a
                percentage, of the Actual Deferral Percentages of the Eligible
                Participants in a group.

            

    

     

    
      	
               

            	
              (C)

            	
              Eligible
                Participant means any Employee of the Employer who is otherwise
                authorized under the Plan to have Savings Contributions (or Qualified
                Non-Elective Contributions or Qualified Matching Contributions, or
                both,
                if treated as Savings Contributions for the ADP Test) allocated to
                his or
                her Savings Account for the Plan
                Year.

            

    

     

    
      	
               

            	
              (D)

            	
              Qualified
                Matching Contributions means Matching Employer Contributions allocated
                to Participants’ accounts which are 100% Nonforfeitable at all times and
                which are subject to the distribution restrictions described in Section
                4.1(h). Matching Contributions are not 100% Nonforfeitable at all
                times if
                the Employee has a 100% Nonforfeitable interest because of Years
                of
                Service taken into account under a vesting schedule. Any Matching
                Contributions allocated to a Participant’s Savings Account under the Plan
                automatically satisfy the definition of Qualified Matching
                Contributions.

            

    

     

    
      	
               

            	
              (E)

            	
              Qualified
                Non-Elective Contributions means Employer Contributions, other than
                Savings Contributions and Matching Contributions, allocated to
                Participants’ accounts which are 100% Nonforfeitable at all times and
                which are subject to the distribution restrictions described in Section
                4.1(h). Non-Elective Contributions are not 100% Nonforfeitable at
                all
                times if the Employee has a 100% Nonforfeitable interest because
                of Years
                of Service taken into account under a vesting schedule. Any Non-Elective
                Contributions allocated to a Participant’s Savings Account under the Plan
                automatically satisfy the definition of Qualified Non-Elective
                Contributions.

            

    

     

    
      	
               

            	
              (F)

            	
              Testing
                Compensation, for purposes of this Section, means compensation as
                defined in Code Section 414(s) and Treasury Regulation
                Section 1.414(s)-1. The period used to determine an Eligible
                Participant’s Testing Compensation for a Plan Year shall be the Plan Year.
                The Administrator may elect to limit the period taken into account
                to that
                portion of the Plan Year in which the Employee was an Eligible
                Participant, provided such limit is applied uniformly to all Eligible
                Participants under the Plan for such Plan Year. In the case of a
                Highly
                Compensated Employee whose Actual Deferral Ratio is determined under
                Subsection (iii)(A) of this Section 4.1(f), such period of participation
                shall include any periods under any other plan for which Savings
                Contributions, and amounts treated as such contributions for testing
                purposes, are aggregated.

            

    

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    
      	
               

            	
              (iii)

            	
              Special
                Testing Rules

            

    

     

    
      	
               

            	
              (A)

            	
              Determining
                the Actual Deferral Ratio of a Highly Compensated Employee Participating
                in More than One Plan of the Employer. For purposes of this Section,
                the Actual Deferral Ratio (“ADR”) for any Participant who is a Highly
                Compensated Employee for the Plan Year and who is eligible to have
                Savings
                Contributions (or Qualified Non-Elective Contributions or Qualified
                Matching Contributions, or both, if treated as Savings Contributions
                for
                the ADP Test) allocated to his or her account under two (2) or more
                plans
                or arrangements described in Code Section 401(k) that are maintained
                by
                the Employer or a Related Employer shall be determined as if all
                Savings
                Contributions (and, if applicable, Qualified Non-Elective Contributions
                or
                Qualified Matching Contribution, or both) were made under a single
                arrangement. If a Highly Compensated Employee participates in two
                (2) or
                more cash or deferred arrangements sponsored by the Employer or any
                Related Employer, then all such contributions made on behalf of such
                Employee shall be aggregated for purposes of the ADP Test, without
                regard
                to whether the other plan(s) uses an inconsistent ADP testing method
                or
                operates on a different plan year. If the 12-month plan year for
                the other
                plan(s) is different, the ADR for the Highly Compensated Employee
                for a
                Plan Year shall be determined by aggregating all Savings Contributions
                made on behalf of such Employee within the Plan Year under this Plan
                (the
                plan being tested). In determining the Highly Compensated Employee’s
                Testing Compensation for purposes of calculating the ADR, only Testing
                Compensation paid during the Plan Year of this Plan shall be considered.
                Notwithstanding the foregoing, certain plans shall be treated as
                separate
                plans if mandatorily disaggregated under applicable Treasury Regulations
                pursuant to Code Section 401(k).

            

    

     

    
      	
               

            	
              (B)

            	
              Permissive
                Aggregation. If this Plan satisfies the requirements of Code Sections
                401(k), 401(a)(4) or 410(b) only if aggregated with one or more other
                plans, or if one or more other plans satisfy the requirements of
                the Code
                Sections only if aggregated with this Plan, then this Section shall
                be
                applied by determining the ADR of Employees as if all such plans
                were a
                single plan. However, this Plan may not be aggregated with a plan
                that
                either (i) uses the prior year testing method for the ADP Test or
                (ii)
                uses the safe harbor provisions of Code Section
                401(k)(12).

            

    

     

    
      	
               

            	
              (C)

            	
              Timing
                of Allocation. To be taken into account in the ADP Test, Savings
                Contributions must be allocated to the Eligible Participant’s account
                within the Plan Year and contributed to the Trust Fund no later than
                the
                last day of the Plan Year being tested. Qualified Non-Elective
                Contributions and Qualified Matching Contributions must be contributed
                to
                the Trust Fund no later than the last day of the Plan Year being
                tested.

            

    

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    
      	
               

            	
              (D)

            	
              Excluded
                Savings Contributions. The following Elective Contributions are
                excluded from the ADP Test:

            

    

     

    
      	
               

            	
              (i)

            	
              Savings Contributions
                that do not satisfy the definition of Elective Contributions under
                Treasury Regulation
                Section 1.401(k)-6;

            

    

     

    
      	
               

            	
              (ii)

            	
              Savings Contributions
                of an Eligible Participant who is a Nonhighly Compensated Employee
                and
                that are attributable to Excess Deferrals under Code Section 402(g),
                to
                the extent the Excess Deferrals are prohibited under Code Section
                401(a)(30).

            

    

     

    
      	
               

            	
              (iii)

            	
              Savings Contributions
                used to satisfy the Average Contribution Percentage
                Test.

            

    

     

    
      	
               

            	
              (E)

            	
              Exclusion
                of Qualified Matching Contributions. To the extent Qualified Matching
                Contributions are precluded from being taken into account under the
                Average Contribution Percentage Test for the Plan Year under the
                rules of
                Treasury Regulation Section 1.401(m)-2(a)(5)(ii), such amounts are
                excluded from the ADP Test.

            

    

     

    
      	
               

            	
              (F)

            	
              Exclusion
                of Disproportionate Qualified Non-Elective Contributions. Qualified
                Non-Elective Contributions shall not be taken into account for a
                Plan Year
                for a Nonhighly Compensated Employee to the extent such contributions
                exceed the product of that Nonhighly Compensated Employee’s Annual
                Compensation multiplied by the greater of: 5% or two times the Plan’s
                “representative contribution rate”. Any Qualified Non-Elective
                Contribution taken into account under the Average Contribution Percentage
                Test for the Plan Year, including the determination of the “representative
                contribution rate”, shall not be taken into account for any purpose under
                the ADP Test.

            

    

     

    
      	
               

            	
              (i)

            	
              The
                Plan’s “representative contribution rate” is the lowest “applicable
                contribution rate” of any Eligible Participant who is a Nonhighly
                Compensated Employee and a member of the group of Eligible Participants
                who are Nonhighly Compensated Employees for the Plan Year and consist
                of
                half of all such eligible Nonhighly Compensated Employees for the
                Plan
                Year or, if greater, the lowest “applicable contribution rate” of any
                eligible Nonhighly Compensated Employee in the group of all eligible
                Nonhighly Compensated Employees for the Plan Year (and who is employed
                by
                the Employer on the last day of the Plan
                Year).

            

    

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    
      	
               

            	
              (ii)

            	
              The
                “applicable contribution rate” for an eligible Nonhighly Compensated
                Employee is the sum of the Qualified Matching Contributions taken
                into
                account under the ADP Test for such eligible Nonhighly Compensated
                Employee for the Plan Year and the Qualified Non-Elective Contributions
                made for such eligible Nonhighly Compensated Employee for the Plan
                Year,
                divided by the eligible Nonhighly Compensated Employee’s Annual
                Compensation for the Plan Year.

            

    

     

    
      	
               

            	
              (G)

            	
              Exclusion
                of Savings Contributions Pursuant to Code Section 414(u). Additional
                Savings Contributions made pursuant to Code Section 414(u) by reason
                of an
                Eligible Participant’s qualified military service shall not be taken into
                account for purposes of the ADP Test for the Plan Year for which
                the
                contributions are made, or for any other Plan
                Year.

            

    

     

    
      	
               

            	
              (H)

            	
              Exclusion
                of Certain Qualified Non-Elective Contributions and Qualified Matching
                Contributions. Qualified Non-Elective Contributions
                and Qualified Matching Contributions shall not be taken into account
                for
                purposes of the ADP Test to the extent such contributions are taken
                into
                account for purposes of satisfying any other ADP test or any Actual
                Contribution Percentage Test.

            

    

     

    
      	
               

            	
              (I)

            	
              The
                Employer shall maintain records sufficient to demonstrate satisfaction
                of
                the Actual Deferral Percentage Test and the amount of Qualified
                Non-Elective Contributions or Qualified Matching Contributions, or
                both,
                used in the test.

            

    

     

    
      	
               

            	
              (J)

            	
              The
                determination and treatment of the Actual Deferral Percentage amounts
                of
                any Participant shall satisfy other requirements prescribed by applicable
                Treasury Regulations.

            

    

     

    
      	
               

            	
              (K)

            	
              Other
                than an organization that is a Related Employer to the Plan Sponsor,
                for
                purposes of this Section, Participants who are Leased Employees of
                a
                recipient organization under an employee leasing agreement with the
                Plan
                Sponsor shall be treated as Participants in a separate plan maintained
                by
                the recipient organization, and all contributions on behalf of such
                Participants shall be treated as contributed to such separate plan
                for
                purposes of applying the requirements of this
                Section.

            

    

     

    
      	
               

            	
              (iv)

            	
              Fail-Safe
                Provisions.  If the initial allocations of the Savings
                Contributions do not satisfy one of the tests set forth in paragraph
                (i)
                of this Section 4.1(f), the Administrator shall adjust the accounts
                of the
                Participants pursuant to one (1) or more of the following
                options:

            

    

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    
      	
               

            	
              (A)

            	
              Distribution
                of Excess Contributions.  If the Committee determines that
                the initial allocations of the Savings Contributions do not satisfy
                one of
                the Actual Deferral Percentage Tests set forth in paragraph (i) of
                this
                Section 4.1(f), the Administrator must distribute the Excess
                Contributions, as adjusted for allocable income, during the next
                Plan
                Year.  However, the Employer will incur an excise tax equal to
                10% of the amount of Excess Contributions for a Plan Year not distributed
                to the appropriate Highly Compensated Employees during the first
                two and
                one-half (21⁄2) months of the next Plan Year.  The Excess
                Contributions are the amount of Savings Contributions made at the
                election
                of the Highly Compensated Employees which causes the Plan to fail
                to
                satisfy the Actual Deferral Percentage Test.  The Administrator
                shall make distributions to each Highly Compensated Employee of his
                or her
                respective share of the Excess Contributions pursuant to the following
                steps:

            

    

     

    
      	
               

            	
              (i)

            	
              The
                Administrator shall calculate total Excess Contributions for the
                Highly
                Compensated Employees.

            

    

     

    
      	
               

            	
              (ii)

            	
              The
                Administrator shall calculate the total dollar amount by which the
                Excess
                Contributions for the Highly Compensated Employees must be reduced
                in
                order to satisfy the Average Deferral Percentage
                Test.

            

    

     

    
      	
               

            	
              (iii)

            	
              The
                Administrator shall calculate the total dollar amount of the Excess
                Contributions for each Highly Compensated
                Employee.

            

    

     

    
      	
               

            	
              (iv)

            	
              The
                Administrator shall reduce the Excess Contributions of the Highly
                Compensated Employee(s) with the highest dollar amount of Excess
                Contributions by refunding such contributions to such Highly Compensated
                Employee(s) in the amount required to cause the dollar amount of
                such
                Highly Compensated Employee(s)' Savings Contributions to equal the
                dollar
                amount of the Savings Contributions of the Highly Compensated Employee(s)
                with the next highest dollar amount of Savings
                Contributions.  If an Employee’s Excess Contribution consists in
                part of Savings Contributions and in part of Roth Savings Contributions,
                the Savings Contributions shall be distributed
                first.

            

    

     

    
      	
               

            	
              (v)

            	
              If
                the total dollar amount distributed pursuant to Step (iv) above is
                less
                than the total dollar amount of Excess Contributions, Step (iv) shall
                be
                applied to the Highly Compensated Employee(s) with the next highest
                dollar
                amount of Excess Contributions until the total amount of distributed
                Excess Contributions equals the total dollar amount calculated in
                Step
                (ii).

            

    

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    
      	
               

            	
              (vi)

            	
              When
                calculating the amount of a distribution under Step (iv), if a lesser
                reduction, when added to any amounts already distributed under this
                Section, would equal the total amount of distributions necessary
                to permit
                the Plan to satisfy the requirements of paragraph (i) of this Section
                4.1(f), the lesser amount shall be distributed from the
                Plan.

            

    

     

    
      	
               

            	
              (B)

            	
              Allocable
                Income.  To determine the amount of the corrective
                distribution required under this Section, the Committee must calculate
                the
                allocable income up to the date of distribution.  The income or
                loss allocable to Excess Contributions is the sum of (1) income or
                loss
                allocable to the Participant’s Savings Account for the taxable year
                multiplied by a fraction, the numerator of which is such Participant’s
                Excess Contributions for the year and the denominator is the Participant’s
                account balance attributable to Savings Contributions without regard
                to
                any income or loss occurring during such taxable year; and (2) ten
                (10)
                percent of the amount determined under (1) multiplied by the number
                of
                whole calendar months between the end of the Participant’s taxable year
                and the date of distribution, counting the month of distribution
                if
                distribution occurs after the 15th of the month. The Committee shall
                be
                deemed to have used a reasonable method for computing allocable income
                if
                the computation is determined on a date that is no more than seven
                days
                before the corrective distribution.

            

    

     

    
      	
               

            	
              (C)

            	
              Recharacterization
                of Matching Contributions.  A portion of the Matching
                Employer Contribution shall be deemed a Savings Contribution for
                purposes
                of paragraph (i) of this Section 4.1(f) and for vesting and withdrawal
                purposes.  The portion shall be equal to an amount necessary to
                satisfy one of the tests set forth in paragraph (i) of this Section
                4.1(f), taking into account the Administrator's action under any
                option
                herein and shall be reallocated to the Savings
                Account.  Reallocation of the Matching Employer Contribution
                shall be made on behalf of Participants who are Non-Highly Compensated
                Employees.

            

    

     

    
      	
               

            	
              (D)

            	
              Qualified
                Non-Elective and Qualified Matching Contributions.  The
                Employer shall make Qualified Non-Elective Contributions or Qualified
                Matching Contributions on behalf of Participants who are Non-Highly
                Compensated Employees in an amount sufficient to satisfy one of the
                tests
                set forth in paragraph (i) of this Section 4.1(f), taking into account
                the
                Committee’s action under any option herein. These contributions shall be
                made in the minimum amount of dollars required to satisfy the requirements
                of paragraph (i) of this Section 4.1(f) and shall be allocated to
                all
                Non-Highly Compensated Participants electing salary reductions in
                the same
                proportion that each such Non-Highly Compensated Participant’s
                Compensation for the year bears to the total Compensation of all
                such
                Non-Highly Compensated Participants for such year.  Such
                additional contributions shall be fully vested and subject to the
                distribution restrictions of Section 4.1(h) hereof, and must be made
                prior
                to the last day of the twelve month period immediately following
                the Year
                to which they relate.

            

    

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    The
      Qualified Non-Elective and Qualified Matching Contributions may be treated
      as
      Savings Contributions provided that each of the following requirements, to
      the
      extent applicable, is satisfied:

     

    
      	
               

            	
              (i)

            	
              The
                amount of Employer Contributions, including those Qualified Non-Elective
                Contributions treated as Savings Contributions for purposes of the
                Actual
                Deferral Percentage Test, satisfies the requirements of Code Section
                401(a)(4).

            

    

     

    
      	
               

            	
              (ii)

            	
              The
                amount of Employer Contributions, excluding those Qualified Non-Elective
                Contributions treated as Savings Contributions for purposes of the
                Actual
                Deferral Percentage Test and those Qualified Non-Elective Contributions
                treated as Matching Contributions under Treasury Regulations Section
                1.401(m)-1(b)(5) for purposes of the Average Contribution Percentage
                Test,
                satisfies the requirements of Code Section
                401(a)(4).

            

    

     

    
      	
               

            	
              (iii)

            	
              The
                Matching Contributions, including those Qualified Matching Contributions
                treated as Savings Contributions for purposes of the Actual Deferral
                Percentage Test, satisfy the requirements of Code Section
                401(a)(4).

            

    

     

    
      	
               

            	
              (iv)

            	
              The
                Matching Contributions, excluding those Qualified Matching Contributions
                treated as Savings Contributions for purposes of the Actual Deferral
                Percentage Test, satisfy the requirements of Code Section
                401(a)(4).

            

    

     

    
      	
               

            	
              (v)

            	
              The
                Qualified Non-Elective Contributions and Qualified Matching Contributions
                satisfy the requirements of Treasury Regulations Section
                1.401(k)-1(b)(4)(i) for the Plan Year as if the contributions were
                Savings
                Contributions.

            

    

     

    
      	
               

            	
              (vi)

            	
              The
                plan that includes the cash or deferred arrangement and the plan
                or plans
                to which the Qualified Non-Elective Contributions and Qualified Matching
                Contributions are made could be aggregated for purposes of Code Section
                410(b).

            

    

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    
      	
              3.

            	
              Section
                4.3(a) of the Plan is hereby amended as underlined to be and read
                as
                follows:

            

    

     

    
      	
               

            	
              (a)

            	
              Matching
                Employer Contributions.  In addition to the total amount of
                Savings Contributions elected for each month pursuant to Section
                4.1, but
                subject to the limits of Section 4.3(c), each Employer shall, as
                a
                Matching Employer Contribution to the Plan, pay to the Trustee for
                each
                calendar quarter an amount equal to fifty percent (50%) of each
                Participant’s Savings Contributions and Roth Savings Contributions for
                each payroll period pursuant to Section 4.1 hereof which does not
                exceed
                four percent (4%) of his Compensation for such payroll period. A
                Matching Employer Contribution may be contributed to the Plan concurrently
                with a Participant’s Savings Contribution to which the Matching Employer
                Contribution relates but in no event shall the Matching Employer
                Contribution be contributed to the Plan prior to such Savings
                Contribution. Matching Employer Contributions may be made in either
                Company Stock in accordance with the closing market price on the
                business
                day immediately preceding the day such Contributions are made or
                in
                cash.  In accordance with Section 7.2(a), such Contributions may
                be re-invested by the Trustee in accordance with Participant
                direction.

            

    

     

    
      	
              4.

            	
              Section
                4.3(c) of the Plan is hereby amended to be and read as
                follows:

            

    

     

    (c)           Limitations
      on Matching Employer Contributions.

     

    
      	
               

            	
              (i)

            	
              Average
                Contribution Percentage Test.  The annual allocation derived
                from Matching Employer Contributions and Qualified Matching Contributions
                to a Participant's Individual Account shall satisfy one of the following
                tests:

            

    

     

    
      	
               

            	
              (A)

            	
              The
                Average Contribution Percentage for Participants who are Eligible
                Highly
                Compensated Employees for the Plan Year shall not exceed the Average
                Contribution Percentage for Participants who are Eligible Non-Highly
                Compensated Employees for the current Plan Year multiplied by 1.25;
                or

            

    

    

    
      	
               

            	
              (B)

            	
              The
                Average Contribution Percentage for Participants who are Eligible
                Highly
                Compensated Employees for the Plan Year shall not exceed the Average
                Contribution Percentage for Participants who are Eligible Non-Highly
                Compensated Employees for the current Plan Year multiplied by two
                (2);
                provided that the Average Contribution Percentage for Participants
                who are
                Eligible Highly Compensated Employees for the Plan Year does not
                exceed
                the Average Contribution Percentage for Participants who are Eligible
                Non-Highly Compensated Employees for the current Plan Year by more
                than
                two (2) percentage points.

            

    

    

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    (ii)           Definitions

     

    
      	
               

            	
              (A)

            	
              Actual
                Contribution Rate means for an Eligible Participant the sum of the
                Employee Contributions, Matching Employer Contributions and Qualified
                Matching Contributions to the extent not taken into account for purposes
                of the ADP Test, and the Qualified Non-Elective Contributions and
                Savings
                Contributions taken into account for the Plan Year, divided by the
                Eligible Participant’s Testing Compensation for such Plan Year.
                Forfeitures of Excess Aggregate Contributions or Matching Contributions
                allocated to the Participant’s account shall be taken into account in the
                year in which the Forfeiture is allocated. Notwithstanding the foregoing,
                Matching Employer Contributions that are forfeited either to correct
                Excess Aggregate Contributions or because the contributions to which
                they
                relate are Excess Deferrals, Excess Contributions, or Excess Aggregate
                Contributions shall not be included. The Employer may take into account
                Qualified Non-Elective Contributions to the extent not limited under
                Subsection (iii)(G) of this Section 4.3(c) and may also elect to
                include
                Employer Elective Contributions if the ADP Test is met before the
                Employer
                Elective Contributions are used in the ACP Test and continues to
                be met
                following the exclusion of those Employer Elective Contributions
                that are
                used to meet the ACP Test.

            

    

     

    
      	
               

            	
              (B)

            	
              Average
                Actual Contribution Percentage means the average, expressed as a
                percentage, of the Actual Contribution Rates of the Eligible Participants
                in a group.

            

    

     

    
      	
               

            	
              (C)

            	
              Eligible
                Participant means any Employee who is eligible to make an Employee
                Contribution or a Savings Contribution, if the Employer takes the
                contributions into account in calculating the Actual Contribution
                Rate, or
                to receive a Matching Employer Contribution, including Forfeitures,
                or a
                Qualified Matching Contribution or Qualified Non-Elective Contribution.
                Notwithstanding the foregoing, if an Employee must perform 1,000
                Hours of
                Service or be employed on the Anniversary Date of the Plan year in
                order
                to make Employee Contributions or to receive an allocation of Matching
                Employer Contributions for the Plan Year, the Plan shall not take
                the
                Employee into consideration in applying the ACP Test unless the Employee
                actually performs the required
                Service.

            

    

     

    
      	
               

            	
              (D)

            	
              Employee
                Contribution means any contribution made to the Plan by or on behalf
                of a Participant that is included in the Participant’s gross income in the
                year in which made and that is maintained under a separate account
                to
                which earnings and losses are allocated. Employer Elective Contributions,
                designated Roth contributions, repayment of loans, Rollover Contributions,
                repayment of distributions described in Code Section 411(a)(7)(C),
                or
                employee contributions that are transferred to the Plan from another
                plan
                are not Employee Contributions.

            

    

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    
      	
               

            	
              (E)

            	
              Matching
                Employer Contribution means an Employer Contribution made to this or
                any other defined contribution plan on behalf of a Participant on
                account
                of an Employee Contribution made by the Participant, or on account
                of a
                Participant’s election to defer a portion of his or her Annual
                Compensation under a plan maintained by the Employer. Notwithstanding
                the
                foregoing, an Employer Contribution shall not be treated as a matching
                contribution made on account of an Employee Contribution if it is
                contributed before the cash or deferred election is made or before
                the
                Employee’s performance of Service with respect to which the Savings
                Contributions are made (or when the cash that is subject to the cash
                or
                deferred election would be currently available, if earlier). In addition,
                an Employer Contribution shall not be treated as a matching contribution
                made on account of an Employee Contribution if it is contributed
                before
                the Employee Contribution. The limitations described in the preceding
                sentence, however, shall not apply to a Forfeiture that is allocated
                as a
                Matching Contribution.

            

    

     

    
      	
               

            	
              (F)

            	
              Qualified
                Matching Contributions means Matching Employer Contributions allocated
                to Participants’ accounts which are 100% Nonforfeitable at all times and
                which are subject to the distribution restrictions described in Section
                4.1(h). Matching Employer Contributions are not 100% Nonforfeitable
                at all
                times if the Employee has a 100% Nonforfeitable interest because
                of Years
                of Service taken into account under a vesting schedule. Any Matching
                Employer Contributions allocated to a Participant’s Savings Account under
                the Plan automatically satisfy the definition of Qualified Matching
                Contributions.

            

    

     

    
      	
               

            	
              (G)

            	
              Qualified
                Non-Elective Contributions means Employer Contributions, other than
                Savings Contributions and Matching Employer Contributions, allocated
                to
                Participants’ accounts which are 100% Nonforfeitable at all times and
                which are subject to the distribution restrictions described in Section
                4.1(h). Employer Non-Elective Contributions are not 100% Nonforfeitable
                at
                all times if the Employee has a 100% Nonforfeitable interest because
                of
                Years of Service taken into account under a vesting schedule. Any
                Employer
                Non-Elective Contributions allocated to a Participant’s Savings Account
                under the Plan automatically satisfy the definition of Qualified
                Non-Elective Contributions.

            

    

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    
      	
               

            	
              (H)

            	
              Testing
                Compensation, for purposes of this Section, means compensation as
                defined in Code Section 414(s) and Treasury Regulation
                Section 1.414(s)-1. The period used to determine an Eligible
                Participant’s Testing Compensation for a Plan Year shall be the Plan Year.
                The Administrator may elect to limit the period taken into account
                to that
                portion of the Plan Year in which the Employee was an Eligible
                Participant, provided such limit is applied uniformly to all Eligible
                Participants under the Plan for such Plan Year. In the case of a
                Highly
                Compensated Employee whose Actual Contribution Ratio is determined
                under
                Subsection (iii)(B) of this Section 4.3(c), such period of participation
                shall include any periods under any other plan for which Matching
                Contributions, and amounts treated as such contributions for testing
                purposes, are aggregated.

            

    

     

    
      	
               

            	
              (iii)

            	
              Special
                Testing Rules

            

    

     

    
      	
               

            	
              (A)

            	
              Restructuring
                Prohibited. Restructuring under Treasury Regulation
                Section 1.401(a)(4)-9(c) may not be used to demonstrate compliance
                with the requirements of Code Section
                401(m).

            

    

     

    
      	
               

            	
              (B)

            	
              Determining
                the Actual Contribution Rate of Highly Compensated Employees Participating
                in More than One Plan of the Employer. The Actual Contribution Rate
                (“ACR”) of any Participant who is an eligible Highly Compensated Employee
                for the Plan Year and who is eligible to have Employee Contributions
                and
                Matching Employer Contributions allocated under two (2) or more plans
                described in Code Section 401(a) or arrangements described in Code
                Section
                401(k) that are maintained by the Employer or a Related Employer
                shall be
                determined as though all such plans were a single plan. If the 12-month
                plan year for the other plan(s) is different, the ACR for the Highly
                Compensated Employee for a Plan Year is determined by aggregating
                all
                Matching Employer Contributions and Employee Contributions allocated
                on
                behalf of such Employee within the Plan Year of the Plan being tested.
                In
                determining the Highly Compensated Employee’s Testing Compensation for
                purposes of calculating the ACR, only Testing Compensation paid during
                the
                Plan Year of the Plan being tested is considered. For purposes of
                this
                Section, inconsistent ACP testing methods between or among such plans
                or
                the fact that one or more of such plans operates on a different plan
                year
                shall be disregarded. Notwithstanding the foregoing, certain plans
                shall
                be treated as separate if mandatorily disaggregated under regulations
                pursuant to Code Section 401(m).

            

    

     

    
      	
               

            	
              (C)

            	
              Permissive
                Aggregation. If this Plan satisfies the requirements of Code Sections
                401(m), 401(a)(4) or 410(b) only if aggregated with one (1) or more
                other
                plans, or if one (1) or more other plans satisfy the requirements
                of the
                Code Sections only if aggregated with this Plan, then this Section
                shall
                be applied by determining the ACR of Eligible Participants as if
                all such
                plans were a single plan. This Plan may not be aggregated with a
                plan that
                either (i) uses the prior year testing method for purposes of the
                ACP Test
                or (ii) uses the safe harbor provisions of Code Section
                401(k)(12).

            

    

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    
      	
               

            	
              (D)

            	
              Inclusion
                of Excess Contributions in the ACP Test. Excess Contributions that are
                recharacterized in accordance with
                Treasury Regulation Section 1.401(k)-2(b)(3) shall be taken
                into account as Employee Contributions for the Plan Year that includes
                the
                time at which the Excess Contribution is includable in the gross
                income of
                the Employee under Treasury Regulation
                Section 1.401(k)-2(b)(3)(ii).

            

    

     

    
      	
               

            	
              (E)

            	
              Exclusion
                of Certain Matching Contributions from the ACP
                Test.

            

    

     

    
      	
               

            	
              (i)

            	
              Disproportionate
                Matching Contributions in Excess of 100%. A Matching Employer
                Contribution with respect to a Savings Contribution for a Nonhighly
                Compensated Employee shall not be taken into account under the ACP
                Test
                for a Plan Year to the extent such Matching Employer Contribution
                exceeds
                the greatest of:

            

    

     

    
      	
               

            	
              (A)

            	
              Five
                percent (5%) of the Nonhighly Compensated Employee’s Annual
                Compensation;

            

    

     

    
      	
               

            	
              (B)

            	
              The
                Nonhighly Compensated Employee’s Savings Contribution for a Plan Year;
                or

            

    

     

    
      	
               

            	
              (C)

            	
              The
                product of 2 times the Plan’s “representative matching rate” times the
                Employee’s Savings Contributions for a Plan
                Year.

            

    

     

    The
      Plan’s “representative matching rate” is the lowest matching rate for any
      eligible Nonhighly Compensated Employee among a group of Nonhighly Compensated
      Employees that consists of half of all eligible Nonhighly Compensated Employees
      in the Plan for the Plan Year who make Savings Contributions for the Plan Year
      (or, if greater, the lowest matching rate for all eligible Nonhighly Compensated
      Employees in the Plan who are employed by the Employer on the last day of the
      Plan Year and who make Savings Contributions for the Plan Year). For purposes
      of
      this Section, the matching rate for an Employee generally is the Matching
      Employer Contributions made for such Employee divided by the Employee’s Savings
      Contributions for the Plan Year. If the matching rate is not the same for all
      levels of Savings Contributions for an employee, the Employee’s matching rate is
      determined assuming that an Employee’s Savings Contributions are equal to six
      percent (6%) of Compensation. The limitations of this Section shall also apply
      if the Plan provides a matching contribution with respect to the sum of the
      Employee’s Employee Contributions and Savings Contributions or solely to
      Employee Contributions.

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    
      	
               

            	
              (ii)

            	
              Safe
                Harbor Contributions. Any Matching Contributions taken into account
                under Code Section 401(m)(11) and
                Treasury Regulation Section 1.401(k)-3 for a Plan Year
                shall be disregarded, provided that such amounts shall be disregarded
                with
                respect to all Eligible
                Participants.

            

    

     

    
      	
               

            	
              (iii)

            	
              Qualified
                Matching Contributions. To the extent Qualified Matching Contributions
                are taken into account for the ADP Test, such amounts shall not be
                taken
                into account in determining an Eligible Participant’s
                ACR.

            

    

     

    
      	
               

            	
              (iv)

            	
              Forfeited
                Matching Contributions. A Matching Contribution that is forfeited
                because the Savings Contributions to which it relates is treated
                as an
                Excess Contribution, Excess Deferral or Excess Aggregate Contribution
                shall not be taken into account.

            

    

     

    
      	
               

            	
              (v)

            	
              Contributions
                Pursuant to Code Section 414(u). Additional Employee Contributions and
                Matching Employer Contributions made by reason of an eligible
                Participant’s qualified military service under Code Section 414(u) shall
                not be taken into account for the Plan Year for which the contributions
                are made, or for any other Plan
                Year.

            

    

     

    
      	
               

            	
              (F)

            	
              Exclusion
                of Disproportionate Qualified Non-Elective Contributions.
                Qualified Non-Elective Contributions shall not be taken
                into
                account for Nonhighly Compensated Employee for a Plan Year to the
                extent
                such contributions exceed the greater of: 5% times such Participant’s
                eligible Annual Compensation for the Plan Year or two times the Plan’s
                “representative contribution rate” times the Nonhighly Compensated
                Employee’s eligible Annual Compensation for the Plan Year. In determining
                the “representative contribution rate” for this purpose, the Qualified
                Non-Elective Contributions included in the ADP Test shall not be
                counted.
                For purposes of this paragraph, the Plan’s “representative contribution
                rate” is the lowest “applicable contribution rate” of any Nonhighly
                Compensated Employee who is among a group of eligible Nonhighly
                Compensated Employees that consists of half of all eligible Nonhighly
                Compensated Employees for the Plan Year and who is employed by the
                Employer on the last day of the Plan Year. The “applicable contribution
                rate” for a Nonhighly Compensated Employee is the sum of the Matching
                Contributions taken into account for such Participant for the Plan
                Year
                and the Qualified Non-Elective Contributions made for such Participant
                for
                the Plan year, divided by that Participant’s Annual Compensation for the
                Plan Year.

            

    

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    
      	
               

            	
              (G)

            	
              Exclusion
                of Certain Qualified Non-Elective Contributions. Qualified
                Non-Elective Contributions cannot be taken into account to the extent
                such
                contributions are taken into account for purposes of satisfying any
                other
                ACP Test, any ADP Test, or the requirements of
                Treasury Regulation Section 1.401(k)-3, 1.401(m)-3 or
                1.401(k)-4.

            

    

     

    
      	
               

            	
              (H)

            	
              The
                Employer shall maintain records sufficient to demonstrate satisfaction
                of
                the ACP Test.

            

    

     

    
      	
               

            	
              (I)

            	
              The
                determination and treatment of the Actual Contribution Percentage
                of any
                Participant shall satisfy other requirements prescribed by applicable
                Treasury Regulations.

            

    

     

    
      	
               

            	
              (J)

            	
              Other
                than an organization that is a Related Employer to the Plan Sponsor,
                for
                purposes of this Section, Participants who are Leased Employees of
                a
                recipient organization under an employee leasing agreement with the
                Plan
                Sponsor shall be treated as Participants in a separate plan maintained
                by
                the recipient organization, and all contributions on behalf of such
                Participants shall be treated as contributed to such separate plan
                for
                purposes of applying the requirements of this
                Section.

            

    

     

    
      	
               

            	
              (iv)

            	
              Fail
                Safe Provisions.  If the initial allocations of the Matching
                Employer Contributions do not satisfy one of the tests set forth
                in
                paragraph (i) of this Section 4.3(c), the Administrator shall adjust
                the
                accounts of the Participants pursuant to one (1) or more of the following
                options:

            

    

    

    
      	
               

            	
              (A)

            	
              Distribution
                of Excess Aggregate Contributions.  The Administrator will
                determine Excess Aggregate Contributions after determining Excess
                Elective
                Deferrals under Section 4.1(e) and Excess Contributions under Section
                4.1(f).  If the Administrator determines that the Plan fails to
                satisfy the Average Contribution Percentage Test for a Plan Year,
                it must
                distribute the Excess Aggregate Contributions, as adjusted for allocable
                income, during the next Plan Year.  However, the Employer will
                incur an excise tax equal to 10% of the amount of Excess Aggregate
                Contributions for a Plan Year not distributed to the appropriate
                Highly
                Compensated Employees during the first two and one-half
                (21⁄2)  months of the next Plan Year.  The Excess
                Aggregate Contributions are the amount of aggregate contributions
                allocated on behalf of the Highly Compensated Employees which cause
                the
                Plan to fail to satisfy the Average Contribution Percentage
                Test.  The Administrator shall make distributions to each Highly
                Compensated Employee of his or her respective share of the Excess
                Aggregate Contributions in accordance with the following
                steps:

            

    

    

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

    
      	
               

            	
              (i)

            	
              The
                Administrator shall calculate total Excess Aggregate Contributions
                for the
                Highly Compensated Employees.

            

    

    

    
      	
               

            	
              (ii)

            	
              The
                Administrator shall calculate the total dollar amount by which the
                Excess
                Aggregate Contributions for the Highly Compensated Employees must
                be
                reduced in order to satisfy the Average Contribution Percentage
                Test.

            

    

    

    
      	
               

            	
              (iii)

            	
              The
                Administrator shall calculate the total dollar amount of the Excess
                Aggregate Contributions for each Highly Compensated
                Employee.

            

    

    

    
      	
               

            	
              (iv)

            	
              The
                Administrator shall reduce the Excess Aggregate Contributions of
                the
                Highly Compensated Employee(s) with the highest dollar amount of
                Excess
                Aggregate Contributions by refunding such contributions to such Highly
                Compensated Employee(s) in the amount required to cause the dollar
                amount
                of such Highly Compensated Employee(s)' Matching Employer Contributions
                to
                equal the dollar amount of  the Matching Employer Contributions
                of the Highly Compensated Employee(s) with the next highest dollar
                amount
                of such contributions.

            

    

    

    
      	
               

            	
              (v)

            	
              If
                the total dollar amount distributed pursuant to Step (iv) above is
                less
                than the total dollar amount of Excess Aggregate Contributions, Step
                (iv)
                shall be applied to the Highly Compensated Employee(s) with the next
                highest dollar amount of Excess Aggregate Contributions until the
                total
                amount of distributed Excess Aggregate Contributions equals the total
                dollar amount calculated in Step
                (ii).

            

    

    

    
      	
               

            	
              (vi)

            	
              When
                calculating the amount of a distribution under Step (iv), if a lesser
                reduction, when added to any amounts already distributed under this
                Section, would equal the total amount of distributions necessary
                to permit
                the Plan to satisfy the requirements of Section 4.3(c)(i), the lesser
                amount shall be distributed from the
                Plan.

            

    

    

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

    
      	
               

            	
              (B)

            	
              Allocable
                Income.  To determine the amount of the corrective
                distribution required under this Section, the Committee must calculate
                the
                allocable income up to the date of distribution.  The income or
                loss allocable to Excess Aggregate Contributions is the sum of (1)
                income
                or loss allocable to the Participant’s Savings Account for the taxable
                year multiplied by a fraction, the numerator of which is such
                Participant’s Excess Aggregate Contributions for the year and the
                denominator is the Participant’s account balance attributable to Savings
                Contributions without regard to any income or loss occurring during
                such
                taxable year; and (2) ten (10) percent of the amount determined under
                (1)
                multiplied by the number of whole calendar months between the end
                of the
                Participant’s taxable year and the date of distribution, counting the
                month of distribution if distribution occurs after the 15th of the
                month.
                The Committee shall be deemed to have used a reasonable method for
                computing allocable income if the computation is determined on a
                date that
                is no more than seven days before the corrective
                distribution.

            

    

    

    
      	
               

            	
              (C)

            	
              Characterization
                of Excess Aggregate Contributions.  The Administrator will
                treat a Highly Compensated Employee's allocable share of Excess Aggregate
                Contributions in the following priority:  (i) first as
                attributable to his or her Matching Contributions allocable with
                respect
                to Excess Contributions determined under the Actual Deferral Percentage
                Test described in Section 4.1(f);  (ii) then on a pro rata basis
                to Matching Contributions and to the Savings Contributions relating
                to
                those Matching Contributions which the Administrator has included
                in the
                Average Contribution Percentage Test; (iii) then on a pro rata basis
                to
                Savings Contributions which are mandatory contributions, if any,
                and to
                the Matching Contributions allocated on the basis of those mandatory
                contributions; and (iv) last to Qualified Non-Elective Contributions
                used
                in the Average Contribution Percentage Test.  To the extent the
                Highly Compensated Employee's Excess Aggregate Contributions are
                attributable to Matching Contributions, and he or she is not 100%
                vested
                in the Account Balance attributable to Matching Contributions, the
                Administrator will distribute only the vested portion and forfeit
                the
                nonvested portion.  The vested portion of the Highly Compensated
                Employee's Excess Aggregate Contributions attributable to Matching
                Employer Contributions is the total amount of the Excess Aggregate
                Contributions (as adjusted for allocable income) multiplied by his
                or her
                vested percentage (determined as of the last day of the Plan Year
                for
                which the Employer made the Matching
                Contribution).

            

    

    

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

    
      	
               

            	
              (D)

            	
              Qualified
                Non-Elective and Qualified Matching Contributions.  The
                Employer shall make Qualified Non-Elective Contributions or Qualified
                Matching Contributions that, in combination with Matching Contributions,
                satisfy one of the tests set forth in paragraph (i) of Section 4.3(c),
                taking into account the Administrator's action under any option
                herein.  Any such contribution shall be treated as a Participant
                Savings Contribution and shall be allocated to the Savings Account
                of each
                Participant.  The Qualified Non-Elective and Qualified Matching
                Contributions may be treated as Matching Contributions provided that
                each
                of the following requirements, to the extent applicable, is
                satisfied:

            

    

    

    
      	
               

            	
              (i)

            	
              The
                amount of Employer Contributions, including those Qualified Non-Elective
                and Qualified Matching Contributions treated as Matching Contributions
                for
                purposes of the Average Contribution Percentage Test, satisfies the
                requirements of Code Section
                401(a)(4).

            

    

    

    
      	
               

            	
              (ii)

            	
              The
                amount of Employer Contributions, excluding those Qualified Non-Elective
                Contributions and Qualified Matching treated as Matching Contributions
                for
                purposes of the Average Contribution Percentage Test and those Qualified
                Non-Elective Contributions treated as Elective and Qualified Matching
                Contributions under Treasury Regulations Section 1.401(k)-1(b)(5)
                for
                purposes of the Actual Deferral Percentage Test, satisfies the
                requirements of Code Section
                401(a)(4).

            

    

    

    
      	
               

            	
              (iii)

            	
              The
                Savings Contributions, including those treated as Qualified Matching
                Contributions for purposes of the Average Contribution Percentage
                Test,
                satisfy the requirements of Code Section 401(k)(3) for the Plan
                Year.

            

    

    

    
      	
               

            	
              (iv)

            	
              The
                Qualified Non-Elective and Qualified Matching Contributions are allocated
                to the Employee under the Plan as of a date within the Plan Year,
                and the
                Savings Contributions satisfy the requirements of Treasury Regulations
                Section 1.401(k)-1(b)(4)(i) for the Plan
                Year.

            

    

    

    
      	
               

            	
              (v)

            	
              The
                plan that takes Qualified Non-Elective Contributions and Qualified
                Matching Contributions into account in determining whether Savings
                and
                Matching Contributions satisfy the requirements of Code Section
                401(m)(2)(A), and the plans to which the Qualified Non-Elective
                Contributions and Qualified Matching Contributions are made, are
                or could
                be aggregated for purposes of Code Section
                410(b).

            

    

    

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

    
      	
               

            	
              (E)

            	
              Forfeiture
                of Non-Vested Matching Employer Contributions.  Matching
                Employer Contributions that are not vested may be forfeited to correct
                Excess Aggregate Contributions.  Notwithstanding the foregoing
                sentence, Excess Aggregate Contributions for a Plan Year may not
                remain
                unallocated or be allocated to a suspense account for allocation
                to one or
                more Employees in any future year.  Forfeitures of Matching
                Contributions to correct Excess Aggregate Contributions shall be
                applied
                to reduce the Employers' Matching Employer Contributions for the
                Plan Year
                in which the excess arose.

            

    

    

    
      	
               

            	
              (F)

            	
              Forfeiture
                of Vested or Non-Vested Matching Contributions Due to Distribution
                of
                Excess Contributions.  If as a result of a determination
                that the initial allocations of Savings Contributions do not satisfy
                one
                of the ADP Tests set forth in Section 4.1(f) above, the Committee
                distributes Excess Contributions in accordance with Section 4.1(f)(iv),
                then any Matching Contribution attributable to such distributed Excess
                Contribution shall be forfeited, whether or not vested.  Such
                forfeited Matching Contribution shall be reallocated in the same
                manner as
                paragraph (E) above.  For purposes of this paragraph, Excess
                Contributions shall be deemed to be first from Employer Elective
                Contributions which are not subject to a Matching
                Contribution.

            

    

    

     

    
      	
              5.

            	
              Section
                15.6 of the Plan is hereby amended as underlined to be and read as
                follows:

            

    

     

    In
      the
      event that the Plan is merged or consolidated with any other plan, or in the
      event that any assets or liabilities of the Plan are transferred to any other
      plan, the benefit any Participant, Former Participant or Beneficiary under
      the
      Plan would be entitled to receive if such other plan were terminated immediately
      after such merger, consolidation, or transfer shall be equal to or greater
      than
      the benefit such Participant, Former Participant or Beneficiary would be
      entitled to receive if the Plan terminated immediately before such merger,
      consolidation, or transfer. Prior to receiving a direct transfer of assets
      from a plan that includes an arrangement qualifying under Code Section 401(k)
      or
      prior to initiating a direct transfer of assets from this Plan to another plan
      qualifying under Code Section 401(a), the Trustee must determine that the
      transferee plan will continue the distribution restrictions of Code Sections
      401(k)(2) and 401(k)(10) on any transferred amounts that are attributable to
      Savings Contributions of Participants (including any amounts treated as Savings
      Contributions for any purpose).

     

    

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, FROZEN FOOD EXPRESS INDUSTRIES, INC.
      has caused this First Amendment to be executed this 17th day of September,
      2007,
      effective as of January 1, 2006, by the undersigned duly appointed and
      authorized officer.

     

    FROZEN
      FOOD EXPRESS INDUSTRIES, INC.

     

    By:
      /s/ Thomas G. Yetter

     

    Name: 
      Thomas G. Yetter

     

    Title: 
      Senior Vice President and Chief Financial Officer

     

     

     

    21

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