Document:

Exhibit 4.7

 

GREAT LAKES SAVINGS PLAN

 

 

	
  Plan Number 004

  	
   

  	
  Amended and Restated

  
	
   

  	
   

  	
  as of January 1, 2003

  

 

 

TABLE OF CONTENTS

 

	
  ARTICLE I

  	
   

  	
  RESTATEMENT OF PLAN

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE II

  	
   

  	
  DEFINITIONS AND CONSTRUCTION

  	
   

  
	
   

  	
   

  
	
  Section 2.01.

  	
   

  	
  Definitions

  	
   

  
	
  Section 2.02.

  	
   

  	
  Construction and Governing Law

  	
   

  
	
   

  	
   

  
	
  ARTICLE III

  	
   

  	
  PARTICIPATION

  	
   

  
	
   

  	
   

  
	
  Section 3.01.

  	
   

  	
  Participation

  	
   

  
	
  Section 3.02.

  	
   

  	
  Cessation of Participation

  	
   

  
	
  Section 3.03.

  	
   

  	
  Reemployment

  	
   

  
	
  Section 3.04.

  	
   

  	
  Change in Employment Status

  	
   

  
	
  Section 3.05.

  	
   

  	
  Completion of Forms by Participants and
  Beneficiaries

  	
   

  
	
   

  	
   

  
	
  ARTICLE IV.

  	
   

  	
  CONTRIBUTIONS

  	
   

  
	
   

  	
   

  
	
  Section 4.01.

  	
   

  	
  Contributions

  	
   

  
	
  Section 4.02.

  	
   

  	
  Pre-Tax Contributions

  	
   

  
	
  Section 4.03.

  	
   

  	
  Matching Contributions

  	
   

  
	
  Section 4.04.

  	
   

  	
  OSCA Profit Sharing Contributions

  	
   

  
	
  Section 4.05.

  	
   

  	
  Rollover Contributions

  	
   

  
	
  Section 4.06.

  	
   

  	
  Payment, Deductibility, and Nature of
  Contributions

  	
   

  
	
  Section 4.07.

  	
   

  	
  Expenses of Plan

  	
   

  
	
  Section 4.08.

  	
   

  	
  Profits Not Required

  	
   

  
	
   

  	
   

  
	
  ARTICLE V.

  	
   

  	
  LIMITATIONS ON CONTRIBUTIONS AND OTHER
  ADDITIONS

  	
   

  
	
   

  	
   

  
	
  Section 5.01.

  	
   

  	
  Applicability of Article

  	
   

  
	
  Section 5.02.

  	
   

  	
  Definitions

  	
   

  
	
  Section 5.03.

  	
   

  	
  Distribution of Excess Deferral Amounts

  	
   

  
	
  Section 5.04.

  	
   

  	
  Limits on Contributions Under Code
  Section 401(k) and Distribution of Excess Contributions

  	
   

  
	
  Section 5.05.

  	
   

  	
  Limits on Contributions under Code
  Section 401(m), and the Distribution of Excess Aggregate Matching
  Contributions

  	
   

  
	
  Section 5.06.

  	
   

  	
  Multiple Use Test

  	
   

  
	
  Section 5.07.

  	
   

  	
  Limitation under Code Section 415

  	
   

  
	
  Section 5.08.

  	
   

  	
  Priority of Limitations

  	
   

  
	
   

  	
   

  
	
  ARTICLE VI.

  	
   

  	
  ACCOUNTING

  	
   

  
	
   

  	
   

  
	
  Section 6.01.

  	
   

  	
  Participant Accounts

  	
   

  
	
  Section 6.02.

  	
   

  	
  Valuation

  	
   

  
	
   

  	
   

  
	
  ARTICLE VII.

  	
   

  	
  BENEFITS

  	
   

  
	
   

  	
   

  
	
  Section 7.01.

  	
   

  	
  Timing and Form of Distribution

  	
   

  
	
  Section 7.02.

  	
   

  	
  Notice and Consent Requirements

  	
   

  
	
  Section 7.03.

  	
   

  	
  Beneficiaries

  	
   

  
	
  Section 7.04.

  	
   

  	
  Plan Distributions and Withholding
  Requirements

  	
   

  
														

 

i

 

	
  Section 7.05.

  	
   

  	
  Direct Transfer from Another Plan

  	
   

  
	
  Section 7.06.

  	
   

  	
  Direct Transfer to Another Plan

  	
   

  
	
  Section 7.07.

  	
   

  	
  Merger,
  Consolidation of Plans, or Transfer of Plan Assets

  	
   

  
	
  Section 7.08.

  	
   

  	
  Other
  Distribution Rules Imposed by Federal Law

  	
   

  
	
  Section 7.09.

  	
   

  	
  In-Service Withdrawals

  	
   

  
	
  Section 7.10.

  	
   

  	
  Charge or Discount

  	
   

  
	
  Section 7.11.

  	
   

  	
  Persons Under Legal Disability

  	
   

  
	
  Section 7.12.

  	
   

  	
  Voting Shares in Company Stock Fund

  	
   

  
	
   

  	
   

  
	
  ARTICLE VIII.

  	
   

  	
  PLAN LOANS

  	
   

  
	
   

  	
   

  
	
  Section 8.01.

  	
   

  	
  Plan Loans

  	
   

  
	
  Section 8.02.

  	
   

  	
  Terms and Conditions

  	
   

  
	
   

  	
   

  
	
  ARTICLE IX.

  	
   

  	
  VESTING

  	
   

  
	
   

  	
   

  
	
  Section 9.01.

  	
   

  	
  Vesting Standards

  	
   

  
	
  Section 9.02.

  	
   

  	
  Forfeitures

  	
   

  
	
   

  	
   

  
	
  ARTICLE X.

  	
   

  	
  ADMINISTRATION OF THE PLAN

  	
   

  
	
   

  	
   

  
	
  Section 10.01.

  	
   

  	
  Administrator

  	
   

  
	
  Section 10.02.

  	
   

  	
  Claims Procedure

  	
   

  
	
  Section 10.03.

  	
   

  	
  Employment of Consultants

  	
   

  
	
  Section 10.04.

  	
   

  	
  Delegation by Administrator

  	
   

  
	
  Section 10.05.

  	
   

  	
  Qualified Public Accountant

  	
   

  
	
  Section 10.06.

  	
   

  	
  Fiduciary Insurance

  	
   

  
	
   

  	
   

  
	
  ARTICLE XI.

  	
   

  	
  TRUST

  	
   

  
	
   

  	
   

  
	
  Section 11.01.

  	
   

  	
  Trust Fund

  	
   

  
	
  Section 11.02.

  	
   

  	
  Investments

  	
   

  
	
  Section 11.03.

  	
   

  	
  Company Stock

  	
   

  
	
  Section 11.04.

  	
   

  	
  Investment Manager

  	
   

  
	
  Section 11.05.

  	
   

  	
  ERISA Section 404(c)

  	
   

  
	
  Section 11.06.

  	
   

  	
  Custodian

  	
   

  
	
   

  	
   

  
	
  ARTICLE XII.

  	
   

  	
  AMENDMENT OR TERMINATION OF PLAN

  	
   

  
	
   

  	
   

  
	
  Section 12.01.

  	
   

  	
  Amendment or Termination

  	
   

  
	
  Section 12.02.

  	
   

  	
  Amendment for Qualification of Plan

  	
   

  
	
  Section 12.03.

  	
   

  	
  Restrictions on Amendments

  	
   

  
	
  Section 12.04.

  	
   

  	
  Discontinuance or Suspension of
  Contributions

  	
   

  
	
  Section 12.05.

  	
   

  	
  Allocation of Assets on Termination

  	
   

  
	
   

  	
   

  
	
  ARTICLE XIII.

  	
   

  	
  ENTRY AND WITHDRAWAL OF EMPLOYERS

  	
   

  
	
   

  	
   

  
	
  Section 13.01.

  	
   

  	
  Entry of Employers

  	
   

  
	
  Section 13.02.

  	
   

  	
  Withdrawal from Plan

  	
   

  
	
   

  	
   

  
	
  ARTICLE XIV.

  	
   

  	
  TOP-HEAVY PROVISIONS

  	
   

  
	
   

  	
   

  
	
  Section 14.01.

  	
   

  	
  Definitions

  	
   

  
	
  Section 14.02.

  	
   

  	
  Top-Heavy Plan Provisions

  	
   

  
														

 

 

ii

 

	
  ARTICLE XV.

  	
   

  	
  NONALIENATION OF BENEFITS AND DOMESTIC
  RELATIONS ORDERS

  	
   

  
	
   

  	
   

  
	
  Section 15.01.

  	
   

  	
  Nonalienation of Benefits

  	
   

  
	
  Section 15.02.

  	
   

  	
  Procedures Regarding Domestic Relations
  Orders

  	
   

  
	
  Section 15.03.

  	
   

  	
  Surviving Spouse

  	
   

  
	
   

  	
   

  
	
  ARTICLE XVI.

  	
   

  	
  MISCELLANEOUS

  	
   

  
	
   

  	
   

  
	
  Section 16.01.

  	
   

  	
  Non-Diversion

  	
   

  
	
  Section 16.02.

  	
   

  	
  Military Service

  	
   

  
	
  Section 16.03.

  	
   

  	
  Allocation of Fiduciary Responsibilities

  	
   

  
	
  Section 16.04.

  	
   

  	
  Limitation of Rights and Obligations

  	
   

  
	
  Section 16.05.

  	
   

  	
  Notice

  	
   

  
	
  Section 16.06.

  	
   

  	
  Right of Recovery

  	
   

  
	
  Section 16.07.

  	
   

  	
  Legal Counsel

  	
   

  
	
  Section 16.08.

  	
   

  	
  Evidence of Action

  	
   

  
	
  Section 16.09.

  	
   

  	
  Audit

  	
   

  
	
  Section 16.10.

  	
   

  	
  Bonding

  	
   

  
	
  Section 16.11.

  	
   

  	
  Receipt and Release

  	
   

  
	
  Section 16.12.

  	
   

  	
  Legal Actions

  	
   

  
	
  Section 16.13.

  	
   

  	
  Reliance

  	
   

  
	
  Section 16.14.

  	
   

  	
  Entire Plan

  	
   

  
	
  Section 16.15.

  	
   

  	
  Counterparts

  	
   

  
	
   

  	
   

  
	
  ARTICLE XVII.

  	
   

  	
  EGTRRA PLAN AMENDMENTS

  	
   

  
	
   

  	
   

  
	
  Section 17.01.

  	
   

  	
  Preamble

  	
   

  
	
  Section 17.02.

  	
   

  	
  Pre-Tax Contributions Limitation

  	
   

  
	
  Section 17.03.

  	
   

  	
  Repeal of Multiple Use Test

  	
   

  
	
  Section 17.04.

  	
   

  	
  Limitations on Contributions

  	
   

  
	
  Section 17.05.

  	
   

  	
  Distribution upon Severance from Employment

  	
   

  
	
  Section 17.06.

  	
   

  	
  Modification of Top-Heavy Rules

  	
   

  
	
  Section 17.07.

  	
   

  	
  Direct Rollovers of Plan Distributions

  	
   

  
	
  Section 17.08.

  	
   

  	
  Increase in Compensation Limit

  	
   

  
	
  Section 17.09.

  	
   

  	
  Suspension Period Following Hardship Withdrawal.

  	
   

  
	
  Section 17.10.

  	
   

  	
  Catch-Up Contributions

  	
   

  
	
  Section 17.11.

  	
   

  	
  Rollovers from Other Plans

  	
   

  
	
   

  	
   

  
	
  APPENDIX A

  	
   

  	
   

  	
   

  
								

 

iii

 

GREAT
LAKES SAVINGS PLAN

 

THE PLAN, as
amended and restated herein, is hereby executed on behalf of Great Lakes
Chemical Corporation, an Indiana corporation (“Company”), effective as
specifically provided herein.

 

PRELIMINARY INFORMATION

 

The plan
designated as the “Great Lakes Savings Plan,” as set forth herein (the “Plan”),
is a continuation and complete restatement, effective as of January 1,
2003 (except where otherwise indicated), of the qualified defined contribution
plan which was originally effective as of May 1, 1985, most recently
amended and restated in its entirety effective as of January 1, 2001,
except as otherwise specifically provided therein, to comply with “GUST” and “EGTRRA,”
and subsequently amended on one (1) occasion.

 

As reflected
in prior restatements and amendments and as reflected in this current
restatement, other defined contribution plans maintained by the Company or a
Related Company were merged into the Plan and/or certain assets were
transferred to this Plan via a trust-to-trust transfer.  Furthermore, various divestitures have
occurred.  These mergers, trust-to-trust
transfers, and divestitures are reflected in this current restatement to the
extent not previously addressed in prior restatements and amendments.

 

The Plan shall
comply with the Employee Retirement Income Security Act of 1974, as amended,
and the Internal Revenue Code of 1986, as amended.  Furthermore, the Plan provisions are designed
to comply with the Uniformed Services Employment and Reemployment Rights Act of
1994, as amended, the Small Business Job Protection Act of 1996, as amended,
the Taxpayer Relief Act of 1997, the Internal Revenue Service Restructuring and
Reform Act of 1998, the Community Renewal Tax Relief Act of 2000 (collectively
referred to as “GUST”) and the Economic Growth and Tax Relief Reconciliation
Act of 2001 (referred to as “EGTRRA”). 
The amendment and restatement of the Plan is conditioned on receipt of a
determination letter, in a form satisfactory to the Company, from the Internal
Revenue Service with respect to the Plan.

 

The Company
has entered into a trust agreement with Vanguard Fiduciary Trust Company, as
Trustee, creating a trust to hold the assets of the Plan.

 

ARTICLE I.

RESTATEMENT OF PLAN

 

The Great
Lakes Savings Plan (“Plan”) is
hereby amended and restated, generally
effective as of January 1, 2003, except as otherwise specifically provided
herein, for the purpose of providing retirement and other benefits to
participants.

 

Except as
otherwise specifically provided herein, the Plan as hereinafter set forth
establishes the rights and obligations with respect to individuals who are
employees on and after such dates, as applicable, and to transactions under the
Plan on and after such dates, as

 

 

applicable.  The rights and benefits, if any, of
individuals who are not employees on or after such dates, as applicable, shall
be determined in accordance with the terms and provisions of the Plan that were
in effect on the date that their employment terminated.  The Plan is a profit sharing plan under Code Section 401(a)(27).  Except as otherwise specifically provided
herein, contributions to the Plan may be made without regard to profits.

 

ARTICLE II.

DEFINITIONS AND CONSTRUCTION

 

Section 2.01.  Definitions.  When the initial letter of a word or phrase
is capitalized herein, the meaning of such word or phrase shall be as follows:

 

(a)           “Account” means the
following separate bookkeeping accounts maintained for each Participant,
reflecting his accrued benefit in the Plan:

 

(1)           “Pre-Tax
Contribution Account” means the account maintained to reflect the benefit of
the Participant attributable to his Pre-Tax Contributions.

 

(2)           “Matching
Account” means the account maintained to reflect the benefit of the Participant
attributable to his share of Matching Contributions.

 

(3)           “Profit
Sharing Account” means the account maintained to reflect the benefit of the
Participant attributable to his share of Profit Sharing Contributions.  Profit Sharing Contributions under the Plan
ceased as of June 30, 2000.

 

(4)           “Rollover
Account” means the account maintained to reflect the benefit of the Participant
attributable to his Rollover Contributions.

 

The “Pre-Tax
Contribution Account,” “Matching Account,” “Profit Sharing Account,” and “Rollover
Account” shall be collectively referred to as the “Accounts.”

 

(b)           “Administrator” means
the Company.

 

(c)           “Adrian Union Employee”
means an Employee who is covered by a collective bargaining agreement and is
employed by BioLab, Inc. (“BioLab”), a division of the Company, at the
Adrian, Michigan location.

 

(d)           “Anzon Employee” means
an Employee who was employed by Anzon, Inc., a wholly-owned subsidiary of
Cookson-US, prior to November 1, 1997 and who became an employee of Sequel
Acquisition, Inc., a wholly-owned subsidiary of the Company (“Sequel”), on
November 1, 1997 when Sequel acquired the Anzon Worldwide Business from
Cookson Group plc on October 31, 1997. 
Sequel’s name subsequently changed to Anzon, Inc. (“Anzon”).

 

(e)           “Applicable Form” means
the appropriate form as designated by the Administrator and furnished by the
Administrator or its designee to make the election or provide

 

2

 

the notice required by the
Plan.  In those circumstances where a
written election or consent is not required by the Plan, the Code, or ERISA,
the Administrator may prescribe an oral, electronic, or telephonic form in lieu
of or in addition to a written form.

 

(f)            “Aqua Clear Account”
means that portion of an active or former Aqua Clear Employee’s Account balance
that was transferred to this Plan from the Aqua Plan.

 

(g)           “Aqua Clear Employee”
mean a former Employee of Aqua Clear Industries, LLC, which entity was
subsequently merged into BioLab, Inc., a division of the Company,
effective as of February 5, 2001 (“Aqua Clear”).

 

(h)           “Aqua Plan” means the
plan known as the “Aqua Clear Industries, LLC Profit Sharing 401(k) Plan” which
was previously maintained by Aqua Clear Industries, LLC and merged into this
Plan as of February 5, 2001.

 

(i)            “Board of Directors”
means the board of directors of the Company.

 

(j)            “Break in Service”
means, prior to January 1, 2002, with respect to an Employee, a
Computation Period during which an Employee completes five hundred (500) or
fewer Hours of Service.  Solely for
purposes of determining whether a Break in Service has occurred in a
Computation Period after 1984 and prior to 2002 for eligibility and Vesting
purposes, an Employee who is absent from work (i) by reason of the
pregnancy of the Employee, (ii) by reason of the birth of a child of the
Employee, (iii) by reason of the placement of a child with the Employee in
connection with the adoption of such child by such Employee, or (iv) for
purposes of caring for such child for a period beginning immediately following
such birth or placement shall receive credit for the Hours of Service that
would otherwise have been credited to the Employee but for the absence (or if
such hours cannot be determined, eight (8) Hours of Service per normal
work day of absence).  The total number
of such hours treated as Hours of Service by reason of any absence shall not
exceed five hundred one (501).  Such
Hours of Service shall be credited (i) to the Computation Period in which
the absence begins if the crediting is necessary to prevent a Break in Service
in that period, or (ii) in all other cases, to the following Computation
Period.  No such Hours of Service shall
be credited unless the Employee furnishes to the Administrator such timely
information as the Administrator may reasonably require to establish (i) that
the absence from work is for reasons provided above, and (ii) the number
of days for which there was such an absence.

 

To the extent required by the FMLA and the regulations thereunder, an
Employee shall not incur a Break in Service for eligibility and Vesting
purposes on or after August 5, 1993 on account of an absence from work
which qualifies as a family or medical leave under the FMLA.

 

To the extent required by USERRA, an Employee shall not incur a Break
in Service for eligibility and Vesting purposes on or after December 12,
1994 on account of a period of qualified military service to the extent
required under USERRA and Code Section 414(u)(8)(A).

 

(k)           “Code” means the “Internal
Revenue Code of 1986,” as amended from time to time.

 

3

 

(l)            “Company” means Great
Lakes Chemical Corporation or any successor thereto.

 

(m)          “Company Stock” means
any common share issued by the Company that is an employer security within the
meaning of Code Section 409(l).

 

(n)           “Computation Period”
means, with regard to an Employee, for purposes of computing Years of Service
prior to January 1, 2002, the twelve (12) consecutive month period
beginning on the date he first completes an Hour of Service and each twelve
(12) month period beginning on an anniversary thereof.  If an Employee Terminates Employment or
Retires, thereafter incurs a Break in Service, and later completes an Hour of
Service, his Computation Period with respect to service after his reemployment
shall be determined as if he had not previously been employed; provided,
however, his prior service shall be disregarded only to the extent expressly
provided in the Plan.

 

(o)           “Contributions” means
the following types of contributions to the Plan:

 

(1)           “Pre-Tax
Contributions” means contributions (i) made to the Plan by an Employer at
the election of a Participant pursuant to a salary deferral agreement pursuant
to Section 4.02 or (ii) transferred to the Plan pursuant to a plan
merger or a plan-to-plan transfer of assets.

 

(2)           “Matching
Contributions” means contributions (i) made by an Employer by reason of
Pre-Tax Contributions of a Participant pursuant to Section 4.03 or (ii) transferred
to the Plan pursuant to a plan merger or a plan-to-plan transfer of assets.

 

(3)           “Profit
Sharing Contributions” means contributions (i) made by OSCA on behalf of
OSCA Employees under this Plan after September 30, 1995 and prior to the
cessation of such contributions as of June 30, 2000, which are designated
as Profit Sharing Contributions and held on behalf of OSCA Employees in such
Employees’ Profit Sharing Accounts, (ii) transferred to the Plan on October 1,
1995 from the Equi-Pen-Plus Master Profit Sharing Plan as adopted by OSCA and
sponsored by OSCA for its employees prior to October 1, 1995, or (iii) otherwise
transferred to the Plan pursuant to a plan merger or a plan-to-plan transfer of
assets.

 

(4)           “Rollover
Contribution” means with respect to any Participant any rollover (i) which
meets the applicable requirements of Code Section 402, 403(b), or 408 or (ii) transferred
to the Plan pursuant to a plan merger or a plan-to-plan transfer of assets.

 

(p)           “Cost of Living
Adjustment” means the cost of living adjustment prescribed by the Secretary of
the Treasury under Code Section 415(d) for any applicable year.

 

(q)           “Disability” or “Disabled”
means a physical or mental condition that permits the Participant to receive
disability benefits under the Company’s long term disability plan.  The
Administrator may require subsequent proof of continued Disability.  A Participant shall not be considered
Disabled until he has shown to the Administrator’s satisfaction, determined in
a

 

4

 

nondiscriminatory manner, that
he has a condition that satisfies the requirements of this subsection.  All determinations of disability shall comply
with the Americans with Disabilities Act.

 

(r)            “Effective Date” means
May 1, 1985, the original effective
date of the Plan.

 

(s)           “Eligible Employee”
means an Employee of an Employer who is compensated by that Employer.  “Eligible Employee” shall not include (i) an
employee who is represented by any collective bargaining agent, or included in
any collective bargaining unit, recognized by the Employer, unless and until
such Employee and the collective bargaining agent agree that the Plan shall
apply to such unit, (ii) a “leased employee” as defined under subsection (t),
(iii) any person designated in good faith by an Employer as an independent
contractor, regardless of whether such person is later determined to be a
common law employee for tax purposes, (iv) any person who is employed on
the basis that he shall not be eligible for any retirement benefits under the
Plan, and (v) OSCA Employees, effective as of June 30, 2000, the date
as of which Profit Sharing Contributions ceased under the Plan.

 

(t)            “Employee” means any
individual employed by a Related Company, except an individual who is a
nonresident alien and who receives no earned income (within the meaning of Code
Section 911(d)(2)) from an Employer which constitutes income from sources
within the United States within the meaning of Code Section 861(a)(3).

 

Notwithstanding any other provision of the Plan, for purposes of
satisfying the requirements of Code Section 414(n)(3), a “leased employee”
shall be treated as an Employee; provided, however, such leased employee shall
not become a Participant unless he is an Employee without regard to this
sentence and he satisfies the participation requirements of Article III.  Effective for Plan Years beginning on or
after January 1, 1997, the term “leased employee” means any person (other
than an individual employed by a Related Company) who pursuant to an agreement
between the Related Company and any other person (“leasing organization”) has
performed services for the Related Company (or for the Related Company and
related persons determined in accordance with Code Section 414(n)(6)) on a
substantially full-time basis for a period of at least one (1) year, and
such services are performed under the primary direction or control of the
Related Company.  Contributions or
benefits provided to a leased employee by the leasing organization that are
attributable to services performed for the Related Company shall be treated as
provided by the Related Company.  A
leased employee shall not be considered an Employee if (i) such employee
is covered by a money purchase pension plan providing (1) a nonintegrated
employer contribution rate of at least ten percent (10%) of compensation, as
defined in Code Section 415(c)(3), but effective for Plan Years beginning
on and after January 1, 1998, including amounts excludable from the
employee’s gross income under Code Section 125, 402(e)(3), 402(h) or
403(b), and for Plan Years beginning on and after January 1, 2001, Code Section 132(f)(4),
(2) immediate participation, and (3) full and immediate vesting; and (ii) leased
employees do not constitute more than twenty percent (20%) of the Related
Company’s nonhighly compensated workforce, as defined in Code Section 414(n)(5)(C)(ii).

 

5

 

(u)           “Employer” means,
severally, the Company and any other Related Company or any part or division
thereof which becomes a participating employer in accordance with Article XIII.

 

(v)           “Employment Date”
means, effective on and after January 1, 2002, the date on which an
Employee first performs an Hour of Service for the Company or any other Related
Company.

 

(w)          “Entry Date” means each January 1,
April 1, July 1, and October 1 of the Plan Year.

 

(x)            “ERISA” means the
Employee Retirement Income Security Act of 1974, as amended from time to time.

 

(y)           “FMC Employee” means a
former Employee of FMC Corporation, Process Additives Division (“FMC”), who is
now employed by the Company at the Nitro, West Virginia location.

 

(z)            “FMLA” means the
Family and Medical Leave Act of 1993, as amended from time to time.

 

(aa)         “Fund” means a separate
investment fund which forms part of the Trust Fund established by the Trustee
at the direction of the Administrator.

 

(bb)         “Highly Compensated
Employee” means, effective for Plan Years beginning on or after January 1,
1997, an employee described in Code Section 414(q) and the regulations
promulgated thereunder and, generally, includes highly compensated active
employees and highly compensated former employees as described below:

 

(1)           Highly
compensated active employees include any Employee who performs service for a
Related Company during the Determination Year and is in one (1) or more of
the following groups:

 

(A)          Employees
who were five percent (5%) owners of a Related Company at any time during the
Determination Year or the Look-Back Year; or

 

(B)           Employees
who received compensation (as defined in Code Section 414(q)(4)) from a
Related Company in excess of Eighty Thousand Dollars ($80,000) (as increased by
the Cost of Living Adjustment) during the Look-Back Year.

 

(2)           Highly
compensated former employees include former Employees who:

 

(A)          Terminated
Employment or Retired prior to the Determination Year;

 

6

 

(B)           performed
no service for a Related Company during the Determination Year; and

 

(C)           were
highly compensated active employees, as described in paragraph (1) above,
during the year of Termination of Employment or Retirement or any Plan Year
ending on or after the date the Employee attained age fifty-five (55).

 

(3)           For
purposes of the definition of Highly Compensated Employee, “Determination Year”
means the Plan Year for which the determination of highly compensated employees
is being made.

 

(4)           For
purposes of the definition of Highly Compensated Employee, “Look-Back Year”
means the twelve (12) month period immediately preceding the Determination
Year.

 

(cc)         “Hour of Service” means
each hour for which an Employee is credited, as follows:

 

(1)           “Hours
of Service” shall be credited on and after December 12, 1994 on account of
a period of qualified military service to the extent required under USERRA and
Code Section 414(u)(8)(A).

 

(2)           An
Employee shall be credited with Hours of Service as required by 29 C.F.R. § 2530.200b-2
and such other regulations promulgated from time to time by the United States
Department of Labor under ERISA regarding the definition of hours of service.

 

(3)           For
purposes of determining eligibility to participate and Vesting only, Hours of
Service shall be credited for a leave which qualifies as family or medical
leave under the FMLA; provided, however, such Hours of Service shall be
credited only to the extent required by the FMLA and the regulations
thereunder.

 

(4)           Prior
to January 1, 2002, “Hour of Service” shall also mean each hour for which
an Employee is credited, as follows:

 

(A)          An
Employee is entitled to credit for each hour for which he is paid, or entitled
to payment, for the performance of duties for a Related Company.  An Hour of Service described in this
paragraph shall be credited to an Employee for the Computation Period in which
the duties are performed.

 

(B)           An
Employee is entitled to credit for each hour for which he is paid, or entitled
to payment, by a Related Company on account of a period during which no duties
are performed (irrespective of whether the employment relationship has
terminated) due to vacation, holiday, illness, incapacity (including
disability), layoff, jury duty, military duty, or leave of absence;

 

7

 

provided, however, that no
Hours of Service shall be credited under this paragraph for periods during
which no duties are performed and for which the Employee is paid or entitled to
payment, if such payment is made or due solely to reimburse an Employee for
medical or medically related expenses or solely for the purpose of complying
with applicable workers’ compensation, unemployment compensation, or disability
insurance laws.  Not more than five
hundred one (501) Hours of Service shall be credited to an Employee on account
of any single continuous period during which the Employee performs no duties
(whether or not this period occurs in a single Plan Year) unless the Hours of
Service are credited pursuant to paragraph (2). 
An Hour of Service credited to an Employee pursuant to this paragraph
shall be credited to the Computation Period or Periods during which no duties
are performed.

 

(C)           An
Employee is entitled to credit for each hour for which back pay, irrespective
of mitigation of damages, is either awarded or agreed to by a Related
Company.  The same Hour of Service shall
not be credited under paragraph (A) or paragraph (B), as the case may be,
and under this paragraph.  An Hour of
Service described in this paragraph shall be credited to the Computation Period
or Periods to which the award or agreement for back pay pertains, rather than
to the Computation Period in which the award, agreement, or payment is made.

 

(D)          In
the case of an Employee whose Compensation is not determined on the basis of
certain amounts for each hour worked during the given period and whose hours of
employment are not counted and recorded, each such Employee shall be credited with
forty-five (45) Hours of Service for each week for which the Employee would be
required to be credited with at least one (1) Hour of Service as required
by 29 C.F.R. § 2530.200b-2.

 

(5)           On
and after January 1, 2002, “Hour of Service” shall be defined using the
elapsed time method and shall mean each hour for which an Employee is paid or
entitled to payment for performance of duties for Related Companies as
determined under IRS Regulation 1.410(a)-7 and ERISA Section 2530.200b-9
and such other regulations issued from time to time by the IRS and/or the
United States Department of Labor under ERISA regarding the definition of Hours
of Service.

 

(dd)         “Investment Manager”
means any person other than the Trustee, in its capacity as trustee, or the
Administrator who:

 

(1)           has
the power to manage, acquire, or dispose of any assets of the Plan;

 

(2)           is
qualified to act as an investment manager under ERISA;

 

(3)           has
acknowledged in writing that it is a fiduciary with respect to the Plan; and

 

8

 

(4)           has
been designated by the Administrator as the investment manager for the Plan.

 

(ee)         “Merged Plans” means,
individually or collectively as the context so requires, the plans that were
merged into this Plan, as follows:  (i) the
Aqua Plan, (ii) the Four Seasons Industrial Services, Inc. Retirement
Savings Plan (“Four Seasons Plan”) as merged as of January 1, 1993; (iii) the
Pentech/QO Profit Sharing and Employee Savings Plan for Salaried Employees (“QO
Salaried Plan”) as merged as of December 31, 1993; (iv) the
Pentech/QO Employees’ Savings Plan for Omaha Hourly Employees (“Omaha Plan”) as
merged as of December 31, 1993; (v) the Pentech/QO Employees’ Savings
Plan for Memphis Union Employees (“Memphis Plan”) as merged as of October 1,
1994; and (vi) the Equi-Pen-Plus Master Profit Sharing Plan as adopted by
OSCA (“OSCA Plan”) as merged as of October 1, 1995.

 

(ff)           “Nitro Union Employee”
is a former FMC employee now employed by the Company, located in Nitro, West
Virginia, who is covered by a collective bargaining agreement and a member of
the United Steelworkers of America, District 8, Local 12757.

 

(gg)         “Non-Highly Compensated
Employee” means an Employee who is not a Highly Compensated Employee.

 

(hh)         “NSC Employee” means a former
Employee of NSC Technologies (“NSC”), a division of Monsanto, who became an
Employee of the Company as of January 1, 2001, and was subsequently
transferred to employment with Albany Molecular Research, Inc. effective
as of October 31, 2001.

 

(ii)           “Optical Monomers
Employee” means an Employee of Optical Monomers, formerly a division of Akzo
Nobel Polymer Chemicals and currently a division of the Company (“Optical
Monomers”).

 

(jj)           “OSCA” means OSCA, Inc.,
a division of the Company, that was sold to BJ Services effective May 31,
2002.

 

(kk)         “OSCA Employee” means an
Employee of OSCA, Inc., or any of OSCA’s subsidiaries and divisions.

 

(ll)           “Participant” means an
Eligible Employee or former Eligible Employee who is, or may become, eligible
to receive a benefit of any type from the Plan and who has commenced
participation in the Plan.

 

(mm)       “Plan” means the plan
created and embodied herein, as amended from time to time, known as the “Great
Lakes Savings Plan.”

 

(nn)         “Plan Compensation” for a
Plan Year means the Participant’s base salary, overtime, and bonuses received
from his Employer, while an Eligible Employee, plus any Pre-Tax Contributions
pursuant to Section 4.02 or any other amounts excludable from taxable

 

9

 

income because of an election
under Code Section 401(k), 125, 402(g), or 457, and for Plan Years
beginning on and after January 1, 2001, Code Section 132(f)(4).  Effective for Plan Years beginning on or
after January 1, 1997, to the extent required by Code Section 401(a)(17),
the compensation of a Participant for any year taken into account under the
Plan shall not exceed One Hundred Fifty Thousand Dollars ($150,000) (as
increased by the Cost of Living Adjustment for the year, pursuant to Code Section 401(a)(17)).  If a determination period for a Participant
consists of fewer than twelve (12) months, the annual limit required by Code Section 401(a)(17)
will be multiplied by a fraction, the numerator of which is the number of
months in the determination period, and the denominator of which is twelve
(12).

 

(oo)         “Plan Year” means any
twelve (12) month period beginning on January 1 and ending on the
following December 31.

 

(pp)         “Period of Service”
means, effective on and after January 1, 2002, the period of time
commencing on the Employment Date or the Reemployment Date and ending on the
Severance from Service Date of an Employee.

 

(qq)         “Period of Severance”
means, effective on and after January 1, 2002, the period of time
commencing on the Severance from Service Date and ending on the date on which
the Employee again performs an Hour of Service.

 

(rr)           “Preserved Accounts”
means that portion of an active or former Participant’s Account balance that
was transferred to this Plan from a Merged Plan.

 

(ss)         “Related Company” means
an Employer and any corporation which is a member of a controlled group of
corporations (as defined in Code Section 414(b)) which includes an
Employer; any trade or business (whether or not incorporated) which is under
common control (as defined in Code Section 414(c)) with an Employer; any
organization (whether or not incorporated) which is a member of an affiliated
service group (as defined in Code Section 414(m)) which includes an
Employer; and any other entity required to be aggregated with an Employer
pursuant to regulations under Code Section 414(o).  For purposes of Code Section 415, in
applying Code Section 414(b) and (c) to determine a Related
Company, the phrase “more than 50 percent” shall be substituted for the phrase “at
least 80 percent” each place it appears in Code Section 1563(a)(1).  Each such Related Company shall be included
as a Related Company only for such period or periods during which such employer
is under such common control, so affiliated, or so aggregated and only to the
extent required by any applicable provision of the Code.

 

(tt)           “Reemployment Date”
means the first date, following a Severance from Service Date, an Employee
performs an Hour of Service for a Related Company.

 

(uu)         “Retire” or “Retirement”
means that a Participant separates from the service of all Related Companies on
or after reaching age sixty-five (65).

 

(vv)         “Section” means, when not
preceded by the word Code or ERISA, a section of the Plan.

 

10

 

(ww)       “Severance from Service
Date” means, effective on and after January 1, 2002, the earlier of (i) the
date an Employee Terminates Employment or Retires or dies; provided, however, a
Severance from Service Date shall be deemed not to occur if an Employee
Terminates Employment and again performs an Hour of Service within twelve (12)
months thereafter, or (ii) the date twelve (12) months after the date an
Employee is absent from employment (with or without pay) with all Related
Companies for any reason other than Termination of Employment, Retirement, or
death, such as vacation, holiday, sickness, disability, leave of absence, or
layoff; provided, however, the Severance from Service Date of an Employee who
is absent from service beyond the first anniversary of the first day of absence
by reason of a maternity or paternity absence described in Code Section 410(a)(5)(E)(i) or
411(a)(6)(E)(i) is the second anniversary of the first day of such
absence, and the period between the first and second anniversaries of the first
day of absence from work is neither a Period of Service nor a Period of
Severance.  A Severance from Service
shall not be deemed to occur if an Employee is on military service to the
extent required under USERRA and Code Section 414(u)(8)(A).

 

(xx)          “Terminate Employment”
or “Termination of Employment” means the Employee had a severance from
employment with all Related Companies prior to being eligible for Retirement
and prior to death; provided, however, it shall not include:  (i) temporary absence of such Employee
due to vacation, sickness (not including Disability), or non-permanent layoff; (ii) military
service to the extent required under USERRA and Code Section 414(u)(8)(A);
(iii) a leave which qualifies as a family or medical leave under the FMLA;
or (iv) a leave of absence for any reason approved by a Related Company on
a nondiscriminatory basis.

 

(yy)         “Trust” means the trust
established and maintained under the Trust Agreement to hold the Trust Fund.

 

(zz)          “Trust Agreement” means
the Great Lakes Savings Trust.

 

(aaa)       “Trust Fund” means the
assets of the Plan held by the Trustee pursuant to the terms of the Plan and
the Trust.

 

(bbb)      “Trustee” means the
corporation or individuals appointed by the (i) Chairman, President, and
Chief Executive Officer of the Company, or (ii) Senior Vice President of
Human Resources and Communications of the Company, each of them acting singly,
to administer the Trust or any successor trustee or trustees designated and
appointed under the Trust.

 

(ccc)       “USERRA” means the
Uniformed Services Employment and Reemployment Rights Act of 1994, as amended
from time to time.

 

(ddd)      “Valuation Date” means each
day of the Plan Year or such other valuation dates as the Administrator may
establish.  In the case of the valuation of
an asset or Account as of a Valuation Date, such valuation shall be determined
as of the close of business on such Valuation Date, or if the New York Stock
Exchange is not open on such date, as of the close of business on the first day
prior to such Valuation Date that the New York Stock Exchange is open.

 

11

 

(eee)       “Vested” or “Vesting,” with
respect to an Account, refers to the interest of the Participant or his
beneficiary in the Account, which is unconditional, legally enforceable, and
nonforfeitable.  Notwithstanding the
preceding sentence, an amendment to the Plan may reduce the Vested right of any
Participant to an Account if such amendment satisfies the requirements of ERISA
and the Code.

 

(fff)         “Years of Service” means,
for an Employee, each Computation Period prior to January 1, 2002 during
which the Employee completes at least one thousand (1,000) Hours of
Service.  Provided, however, prior to January 1,
2002, any Years of Service occurring prior to any period of consecutive one (1) year
Breaks in Service shall not be taken into account if (i) the number of
consecutive one (1) year Breaks in Service within such period equals or
exceeds the greater of five (5) or the aggregate number of Years of Service
of the Employee prior to such period, and if (ii) the Employee had no
Vested right to any portion of his Account balances derived from Employer
contributions at the commencement of such Break in Service; provided, however,
any Years of Service excluded pursuant to this subsection shall also be
excluded from any subsequent determination of Years of Service.

 

“Years of Service,” on and after January 1, 2002, shall be
calculated using elapsed time and shall mean the aggregate Periods of Service
of an Employee whether or not such Periods of Service are completed
consecutively.  A Year of Service shall
constitute twelve (12) months. 
Notwithstanding the preceding sentences; for the transition period of
calculating service from the hours of service method to the elapsed time
method, Employees shall be credited for service consisting of: (i) a
number of years equal to the number of years credited to the Employee under the
hours of service method before the Computation Period during which the change
to the elapsed time method occurrs; and (ii) for the Computation Period in
which the change to elapsed time occurs, the greater of: (a) the Period of
Service that would be credited under the elapsed time method for the Employee’s
service from the first day of that Computation Period through the date of the
change, or (b) the service that would be taken into account under the
hours of service method for that Computation Period as of the date of the
change.  Credit shall be given for
service subsequent to the change beginning with the day after the last day of
the Computation Period in which the change occurs.

 

The Years of Service of any Employee shall include any Years of Service
of such Employee while he was an Employee for any Related Company.

 

For purposes
of Vesting under this Plan, each Aqua Clear Employee, FMC Employee, Lime-O-Sol
Company, NSC Employee, and Optical Monomers Employee shall be credited with
Years of Service for Vesting purposes for his period of employment with Aqua
Clear, FMC, Lime-O-Sol Company, NSC and Optical Monomers, respectively.  For purposes of Vesting under this Plan, each
salaried Anzon Employee who was covered under the Anzon, Inc. Salaried
401(k) Plan as of October 31, 1997 shall be credited for the Years of
Service he earned under the Anzon, Inc. Salaried 401(k) Plan as of October 31,
1997.

 

(ggg)      “Lime-O-Sol Company” means a
former employee of Line-O-Sol Company, who as a result of the stock acquisition
of Lime-O-Sol Company by BioLab, Inc. on February 28, 2003, continued
as an Employee of Lime-O-Sol Company, a division of BioLab, Inc.

 

12

 

Section 2.02.  Construction and Governing Law.  The following rules of construction
shall govern any interpretation of the Plan:

 

(a)           The Plan shall be construed,
enforced, and administered and the validity thereof determined in accordance
with ERISA, the Code, and, when not inconsistent with ERISA or the Code, the
laws of the State of Indiana.

 

(b)           Words used herein in
the masculine gender shall be construed to include the feminine gender where
appropriate and words used herein in the singular or plural shall be construed
as being in the plural or singular where appropriate.

 

(c)           In resolving any
conflict between provisions of the Plan and in resolving any other uncertainty
as to the meaning or intention of any provision of the Plan, the interpretation
that (i) causes the Plan to constitute a qualified plan under the
provisions of Code Section 401 and the Trust as exempt from tax under Code
Section 501, (ii) causes the contributions of any Employer to the
Trust to be deductible by such Employer from net income for federal income tax
purposes, (iii) causes the Plan to contain a qualified cash or deferred
arrangement described in Code Section 401(k), and (iv) causes the
Plan to comply with all applicable requirements of ERISA and the Code shall
prevail over any different interpretation.

 

(d)           The headings and
subheadings in the Plan are inserted for convenience of reference only and are
not to be considered in the construction of any provision of the Plan.

 

(e)           If any provision of the
Plan shall be held to violate the Code or ERISA or be illegal or invalid for
any other reason, that provision shall be deemed to be null and void, but the
invalidation of that provision shall not otherwise impair or affect the Plan.

 

ARTICLE III.

PARTICIPATION

 

Section 3.01.  Participation.

 

(a)           Any individual who was
a Participant in the Plan on December 31, 2002 shall be a Participant in
accordance with the terms of the Plan effective January 1, 2003.

 

(b)           Except as provided in
subsection (a), an Eligible Employee shall become a Participant on the
Entry Date on or after the date he completes an Hour of Service for an
Employer, provided that he is an Eligible Employee on that Entry Date.  If an individual who has satisfied the
eligibility requirements of this subsection (b) is not an Eligible
Employee on the applicable Entry Date, and the individual later completes an
Hour of Service as an Eligible Employee, he shall become a Participant upon
completing that Hour of Service.

 

(c)           Notwithstanding
subsections (a) and (b), any FMC Employee, who became an Employee of the
Company on August 2, 1999 in connection with the consummation of the

 

13

 

transactions contemplated by
the U.S. Asset Purchase and Framework Agreement between FMC and the Company
dated as of May 4, 1999, became a Participant on August 2, 1999.

 

(d)           Notwithstanding
subsections (a) and (b), any Lime-O-Sol Employee shall become a
Participant on March 16, 2003.

 

Section 3.02.  Cessation of Participation.  A Participant shall cease to be a Participant
on the distribution or forfeiture of his entire interest in the Plan.

 

Section 3.03.  Reemployment.

 

(a)           A former Participant
shall become a Participant as of the date he again performs an Hour of Service
as an Eligible Employee.

 

(b)           A former Employee who
was not a Participant at the time of his Termination of Employment shall become
a Participant only in accordance with Section 3.01.

 

Section 3.04.  Change in Employment Status.

 

(a)           A Participant whose
employment status changes so that he no longer satisfies the definition of
Eligible Employee, but who remains an Employee shall become a limited
Participant hereunder as of the date of the change in employment status.  Such limited Participant shall cease to share
in contributions hereunder as of the date of such change in employment status
but shall continue to accrue Years of Service pursuant to Section 2.01(fff).  If such limited Participant does not again
become an Eligible Employee prior to Retirement or Termination of Employment,
the Vested Accounts of the limited Participant, if any, shall be paid as
provided in Article VII.

 

(b)           A limited Participant
who again has a change in employment status, and becomes an Eligible Employee,
shall become a full Participant as of such change in employment status.  Thereafter, such Participant shall be
entitled to accrue benefits in accordance with the terms of the Plan as in
effect as of the subsequent date of change in employment status.  In no event, however, shall such a
Participant receive a greater benefit under the Plan than that which the
Participant would have received had the Participant not had a change in
employment status.

 

(c)           An Employee of the
Employer or a Related Company who first becomes an Eligible Employee due to a
change in employment status shall become a Participant as provided in Section 3.01.

 

Section 3.05.  Completion of Forms by Participants and
Beneficiaries.  Each Participant
and any beneficiary eligible to receive, or claiming a right to receive, any
benefits under the Plan shall complete such Applicable Form and furnish
such proofs and information as may be required at any time by the Trustee or
the Administrator.

 

14

 

ARTICLE IV.

CONTRIBUTIONS

 

Section 4.01.  Contributions.  Contributions shall be made to the Plan in
accordance with this Article and subject to the limitations under Article V.  Notwithstanding anything contained in this Article to
the contrary, OSCA Employees were only eligible for Profit Sharing
Contributions under the Plan.  Effective
as of June 30, 2000, OSCA Employees ceased to be eligible for Profit
Sharing Contributions set forth in this Article.

 

Section 4.02.  Pre-Tax Contributions.

 

(a)           A Participant who is an
Eligible Employee may make Pre-Tax Contributions as provided in this
Section.  An Eligible Employee who is a
Non-Highly Compensated Employee may enter into a payroll reduction agreement
with his Employer agreeing to contribute Pre-Tax Contributions to the Plan of a
specified whole percentage, from one percent (1%) to fifty percent (50%), of
his Plan Compensation each pay period. 
An Eligible Employee who is a Highly Compensated Employee may enter into
a payroll reduction agreement with his Employer agreeing to contribute Pre-Tax
Contributions to the Plan of a specified whole percentage, from one percent
(1%) to fifty percent (50%) of his Plan Compensation each pay period, or such
lesser maximum percentage as determined by the Administrator to the extent it
anticipates that such adjustment is necessary to satisfy the test under Section 5.04(a).  Pre-Tax Contributions made on behalf of a
Participant under the Plan, or any other qualified plan maintained by the
Employer, during any taxable year shall not exceed the dollar limitation
contained in Code Section 402(g) in effect for such taxable year,
except to the extent permitted under Section 17.10 and Code Section 414(v),
if applicable.

 

(b)           Pre-Tax Contributions
shall reduce the cash compensation otherwise payable to a Participant and shall
be paid in cash to the Trustee by the Employer on a basis consistent with its
payroll practices within a reasonable period after being withheld from the cash
compensation of a Participant and within the time period prescribed by
law.  Pre-Tax Contributions made on
behalf of a Participant for a Plan Year shall be allocated to the Pre-Tax
Contribution Account.

 

(c)           A Participant may elect
to make or change an election to make Pre-Tax Contributions at any time by
completing the Applicable Form within such period before the effective
date of the change as the Administrator may establish to become effective as of
the first payroll period on or following such election.  A Participant may suspend his Pre-Tax
Contributions at any time on an Applicable Form filed with the
Administrator within such period before the effective date of the suspension as
the Administrator may establish. 
Notwithstanding the first sentence of this subsection, a Participant may
not resume Pre-Tax Contributions after having suspended them pursuant to the
preceding sentence until the first payroll period on or following the first
Entry Date after the suspension. Except as provided in Section 4.02(a) or
Section 7.09(c)(3), the election of a Participant to make, change, or
suspend Pre-Tax Contributions shall remain continuously in effect until changed
by the Participant or the Participant Terminates Employment or Retires.

 

15

 

(d)           An election to make
Pre-Tax Contributions shall not be valid with respect to any period during
which the Participant is not an Eligible Employee.  No election to make, change, or discontinue
Pre-Tax Contributions shall be given retroactive effect.

 

(e)           The Administrator may
establish additional nondiscriminatory rules and procedures governing the
manner and timing of elections by Employees to make, change, or discontinue
Pre-Tax Contributions.

 

Section 4.03.  Matching Contributions.

 

(a)           Effective January 1,
2000, unless the Board of Directors determines otherwise before the beginning
of a Plan Year, and except as otherwise provided in this Section 4.03,
each Employer shall contribute for the Plan Year on behalf of each Participant
(other than as provided in subsections (b) and (c) below) a Matching
Contribution equal to fifty percent (50%) of the first six percent (6%) of the
Pre-Tax Contributions of the Participant for the Plan Year.  Matching Contributions made on behalf of a
Participant for a Plan Year shall be made in Company Stock and shall be
allocated to his Matching Account as of each payroll.

 

(b)           Notwithstanding
anything in this Section to the contrary, effective January 1, 2000,
Adrian Union Employees who are Participants, shall receive a Matching
Contribution equal to:

 

(1)           fifty
percent (50%) of the first two percent (2%) of the Pre-Tax Contributions of
such Participant for the Plan Year, which shall be made in cash and shall be
allocated to his Matching Account as of each payroll;

 

(2)           a
second tier Matching Contribution equal to fifty percent (50%) of the next two
percent (2%) of the Pre-Tax Contributions of such Participant for the Plan
Year, which additional Matching Contribution shall be made in Company Stock and
shall be allocated to his Matching Account as of each payroll; and

 

(3)           a
third tier discretionary Matching Contribution, if any, as may be determined by
the Plan Administrator or its designee if financial goals are met for the Plan
Year, equal to fifty percent (50%) of the next two percent (2%) of Pre-Tax
Contributions of such Participant for the Plan Year (in excess of the four
percent (4%) referred to in paragraphs (1) and (2) above), which
Matching Contributions shall be made in Company Stock and shall be allocated to
his Matching Account as of the last day of the Plan Year.

 

(c)           Notwithstanding
anything in this Section to the contrary, no Matching Contributions shall
be made at any time on behalf of any Nitro Union Employee.

 

(d)           Matching Contributions
may be made in cash or Company Stock, as designated above, to the Trustee by
the Employer on a basis consistent with its payroll practices concurrently with
Pre-Tax Contributions on which the Matching Contributions are based, or
annually as designated above.

 

16

 

(e)           Matching Contributions
made on behalf of a Participant shall be allocated, for accounting purposes, to
the Plan Year with respect to which the Pre-Tax Contributions were made, and
shall be allocated to the Matching Account of the Participant.

 

(f)            If a Participant is
employed by more than one (1) Employer during a Plan Year, the portion of
the total Matching Contribution of the Participant for the Plan Year that is
paid by each Employer shall be based on the percentage of the Pre-Tax
Contributions of the Participant for the Plan Year paid by the Employer.

 

Section 4.04.  OSCA Profit Sharing Contributions.  After June 30, 2000, no Profit Sharing
Contributions for OSCA Employees shall be made under the Plan.

 

Section 4.05.  Rollover Contributions.  At any time during a Plan Year, an Eligible
Employee may contribute to the Plan in cash as a Rollover Contribution a prior
distribution from a qualified plan, a conduit individual retirement account, or
a direct rollover provided that the Administrator, in its discretion,
determines that the contribution satisfies all applicable requirements of the
Code.  Before a Rollover Contribution is
made, the Eligible Employee shall designate the Fund or Funds in which he wishes
his Rollover Contribution to be invested. 
A Rollover Contribution shall be allocated to the Rollover Contribution
Account of the Eligible Employee as of the date of the contribution.

 

Section 4.06.  Payment, Deductibility, and Nature of
Contributions.

 

(a)           For deduction purposes,
the Matching Contributions under Section 4.03 shall be made effective as
of the last day of the Plan Year and shall actually be paid within such time
period as permitted by law.

 

(b)           If an Employer is
unable to make any contribution provided under Section 4.03, any other
Employer may make such contributions on behalf of such Employer, as determined
in the sole discretion of the Board of Directors.

 

(c)           The total contributions
of an Employer for any Plan Year under the Plan shall not exceed the amount
allowable as a deduction from the income of the Employer for purposes of income
tax under the Code, and any such contributions are conditioned on such
deductibility.

 

Section 4.07.  Expenses of Plan.  All reasonable expenses of administering the
Plan shall be paid by the Trustee and shall be charged against and paid from
the Trust Fund, unless an Employer pays such expenses, or as paid by the
Participants as allowed by law.

 

Section 4.08.  Profits Not Required.  The Employer may make Contributions to the
Plan without regard to current or accumulated earnings and profits for such
Plan Year.  However, the Plan is designed
to qualify as a profit sharing plan for purposes of Code Sections 401(a), 401(k),
402, 412, and 417.

 

17

 

ARTICLE V.

LIMITATIONS ON CONTRIBUTIONS AND OTHER ADDITIONS

 

Section 5.01.  Applicability of Article.  Notwithstanding any provision of the Plan to
the contrary, contributions to the Plan and additions to Accounts of
Participants shall be limited as provided in Code Sections 401(k), 401(m), and
415 as provided in this Article. 
Notwithstanding any provision in this Article V to the contrary,
the provisions discussed herein shall be administered to comply with the provisions
of Code Section 401(k), 401(m), and 415, and the regulations thereunder,
which provisions are incorporated herein by reference.

 

Section 5.02.  Definitions.  As used in this Article, the following terms,
when capitalized, shall have the following meanings, unless otherwise expressly
provided:

 

(a)           “Allocable Income”
means the sum of the allocable gain or loss for the year or partial year, and
for the period from the end of the year to the date of distribution or
correction, as the case may be, determined in accordance with Code Section 401(k),
401(m), or 402(g), and the regulations promulgated thereunder.

 

(b)           “Average Contribution
Percentage” means the average (expressed as a percentage to the nearest
one-hundredth of one percent) of the Contribution Percentages of the Eligible
Participants in a group.

 

(c)           “Average Deferral
Percentage” means the average (expressed as a percentage to the nearest
one-hundredth of one percent) of the Deferral Percentages of the Eligible
Participants in a group.

 

(d)           “Compensation” means,
for purposes of Code Sections 401(k) and 401(m), compensation as defined in
Code Section 414(s); provided, however, to the extent permitted by the
Code, Compensation for any period during which an individual is not a
Participant may be disregarded.  For Plan
Years beginning on or before December 31, 1997, the Company may elect to
include elective deferrals described in Code Section 414(s)(2) in
Compensation.  For Plan Years beginning
after December 31, 1997, elective deferrals described in Code Section 414(s)(2) shall
be included in Compensation unless the Company elects to exclude such elective
deferrals.  In general, Code Section 414(s)
defines compensation as having the meaning given such term by Section 5.07(g).  In general, elective deferrals described in
Code Section 414(s)(2) include any amount which is contributed by a
Related Company pursuant to a salary reduction agreement and which is not
includible in the gross income of an Employee under Code Section 125,
402(e)(3), 402(h), 403(b), or 457, and for Plan Years beginning on and after January 1,
2001, Code Section 132(f)(4).

 

(e)           “Contribution
Percentage” means the ratio (expressed as a percentage to the nearest
one-hundredth of one percent) of the Matching Contributions of an Eligible
Participant for the Plan Year to the extent not used to satisfy the test under Section 5.04(a) to
the Compensation of the Participant for the Plan Year.  As may be necessary to satisfy the test under
Section 5.05(a), and in the sole discretion of the Administrator, the
Pre-Tax Contributions of a

 

18

 

Participant which are not
necessary to meet the test under Section 5.04(a) for the Plan Year
may be included in the determination of such Contribution Percentage for the
Plan Year.  The Contribution Percentage
for Participants shall be determined in accordance with the following:

 

(1)           The
Contribution Percentage for any Highly Compensated Participant for the Plan
Year who is eligible to make employee contributions, or to receive matching
contributions, qualified nonelective contributions, or Elective Deferrals
allocated to his accounts under two (2) or more plans described in Code Section 401(a) or
arrangements described in Code Section 401(m), and that are maintained by
a Related Company, shall be determined as if all such contributions and
deferrals were made under a single plan.

 

(2)           In
the event that the Plan satisfies the requirements of Code Section 410(b) only
if aggregated with one (1) or more other plans, or if one (1) or more
other plans satisfy the requirements of Code Section 410(b) only if
aggregated with the Plan, the Contribution Percentages of Eligible Participants
shall be determined as if all such plans were a single plan.

 

(f)            “Current Plan Year”
means the Plan Year for which tests given in Section 5.04 or 5.05 are
being performed.

 

(g)           “Deferral Percentage”
means for an Eligible Participant the ratio (expressed as a percentage to the
nearest one-hundredth of one percent) of Pre-Tax Contributions of the
Participant for the Plan Year to the Compensation of the Eligible Participant
for the Plan Year.  The Deferral
Percentage for Participants shall be determined in accordance with the
following:

 

(1)           The
Deferral Percentage for any Highly Compensated Participant for the Plan Year
who is eligible to make Elective Deferrals, or to receive matching
contributions or qualified nonelective contributions allocated to his accounts
under two (2) or more plans described in Code Section 401(a) or
arrangements described in Code Section 401(k), and that are maintained by
a Related Company, shall be determined as if all such contributions and
deferrals were made under a single plan.

 

(2)           In
the event that the Plan satisfies the requirements of Code Section 410(b) only
if aggregated with one (1) or more other plans, or if one (1) or more
other plans satisfy the requirements of Code Section 410(b) only if
aggregated with the Plan, the Deferral Percentages of Eligible Participants
shall be determined as if all such plans were a single plan.

 

(h)           “Elective Deferrals”
means elective deferrals as defined by Code Section 402(g)(3).

 

(i)            “Eligible Participant”
means for a Plan Year any Eligible Employee who is eligible, in accordance with
Code Section 401(k), to make Pre-Tax Contributions for the Plan Year;
provided, however, if so elected by the Administrator for any Plan Year
beginning after December 31, 1998, any Non-Highly Compensated Employee who
has not attained age twenty-one (21) or has not completed one (1) Year of
Service shall not be an “Eligible Participant” for

 

19

 

purposes of determining the
Average Deferral Percentage and/or Average Contribution Percentage.

 

(j)            “Excess Aggregate
Matching Contributions” means the total amount of Matching Contributions with
respect to Highly Compensated Participants for the Plan Year which, if reduced,
would result in the Plan satisfying the test under Section 5.05(a).  The Excess Aggregate Matching Contributions
are determined for the group of Highly Compensated Participants under a
leveling method, starting with the Participant with the highest Contribution
Percentage.  The first amount of excess
attributable to that Participant is the amount of said Matching Contributions
which, if reduced, would result in the Contribution Percentage of the
Participant being equal to the greater of (i) the Contribution Percentage
of the Participant with the next highest Contribution Percentage, or (ii) the
Contribution Percentage for the Participant which would result in the Plan
satisfying the test under Section 5.05(a). 
If the test under Section 5.05(a) is not then satisfied, the
same process is repeated with the Highly Compensated Participant with the next
highest Contribution Percentages until such test is satisfied.  The total amount of Excess Aggregate Matching
Contributions is equal to the total of such reductions in Matching
Contributions of all affected Participants after application of this Section.

 

(k)           “Excess Contributions”
means the total amount of Pre-Tax Contributions with respect to Highly
Compensated Participants for the Plan Year which, if reduced, would result in
the Plan satisfying the test under Section 5.04(a).  Excess Contributions are determined for the
group of Participants who are Highly Compensated Participants under a leveling
method, starting with the Participant with the highest Deferral
Percentage.  The first amount of excess
attributable to that Participant is the amount of Pre-Tax Contributions which,
if reduced, would result in the Deferral Percentage of the Participant being
equal to the greater of (i) the Deferral Percentage of the Highly
Compensated Participant with the next highest Deferral Percentage or (ii) the
Deferral Percentage which would result in the Plan satisfying the test under Section 5.04(a).  If the test under Section 5.04(a) is
not then satisfied, the same process is repeated with the Highly Compensated
Participant with the next highest Deferral Percentage until such test is
satisfied.  The total amount of Excess
Contributions is equal to the total of such reductions in Pre-Tax Contributions
of all affected Participants after application of this Section.

 

(l)            “Excess Deferral
Amount” means the amount of Pre-Tax Contributions for a calendar year that the
Participant timely claims pursuant to the following procedure:

 

(1)           A
Participant may submit a claim on the Applicable Form to the Administrator
not later than the March 1 following the close of the calendar year for
which the claim for an Excess Deferral Amount is made, specifying the Excess
Deferral Amount claimed by the Participant for the preceding calendar year for
the Plan.

 

(2)           Said
claim shall be accompanied by the written statement of such Participant that if
such amounts are not distributed, such claimed Excess Deferral Amount, when
added to amounts deferred under other plans or arrangements described in Code
Sections 401(k), 403(b), or 408(k), exceeds the limit imposed on the
Participant by Code Section 402(g) for the calendar year in which the
deferral occurred.

 

20

 

(m)          “Highly Compensated
Participant” means any Participant who is a Highly Compensated Employee and who
is an “eligible employee” within the meaning of Code Section 401(k) or
401(m), as the case may be.

 

(n)           “Non-Highly Compensated
Participant” means any Participant who is not a Highly Compensated Participant
and who is an “eligible employee” within the meaning of Code Section 401(k)
or 401(m), as the case may be.

 

(o)           “Prior Plan Year” means
the Plan Year immediately preceding the Current Plan Year.

 

Section 5.03.  Distribution of Excess Deferral Amounts.  Excess
Deferral Amounts, adjusted for Allocable Income, may be distributed at the
discretion of the Administrator not later than each April 15 to
Participants who claim such Excess Deferral Amounts for the preceding calendar
year.

 

Section 5.04.  Limits on Contributions Under Code Section 401(k)
and Distribution of Excess Contributions.

 

(a)           The Plan shall be
administered to satisfy the test under Code Section 401(k)(3), the
regulations promulgated thereunder, and any subsequent guidance issued by the
Internal Revenue Service, which are incorporated herein by reference, based on
the Average Deferral Percentage for the group of Non-Highly Compensated
Participants for the Prior Plan Year for the Plan Years beginning January 1,
1997 and January 1, 1998, and for the Current Plan Year for each Plan Year
beginning on or after January 1, 1999.

 

(b)           In the event there are
Excess Contributions for a Plan Year, the test under subsection (a) shall
be met by distributing to each affected Participant the Excess Contributions,
adjusted for Allocable Income, attributable to such Participant on or before
the last day of the following Plan Year pursuant to subsection (d).  Notwithstanding anything in the Plan to the
contrary, no Matching Contributions shall be made with respect to any such
Excess Contributions.

 

(c)           The Excess
Contributions shall be distributed to the group of Highly Compensated
Participants under a leveling method, starting with the Participant with the
highest dollar amount of Pre-Tax Contributions for the Plan Year.  The first amount of excess distributed to
that Participant is the amount of said Pre-Tax Contributions which, if reduced,
would result in the dollar amount of Pre-Tax Contributions of the Participant
being equal to the greater of (i) the dollar amount of Pre-Tax
Contributions of the Participant with the next highest dollar amount of Pre-Tax
Contributions, or (ii) the dollar amount of contributions for the
Participant which would result in the Plan satisfying the test under Section 5.04(a).  If the test under Section 5.04(a) is
not then satisfied, the same process is repeated with the Highly Compensated
Participant with the next highest dollar amount of Pre-Tax Contributions until
such test is satisfied.  The Excess
Contributions, adjusted for Allocable Income, shall be distributed to the
affected Participants no later than the last day of the succeeding Plan Year.

 

21

 

(d)           The Administrator may
adjust the Pre-Tax Contributions of any Highly Compensated Participant to the
extent it anticipates that such adjustment is necessary to satisfy the test
under Section 5.04(a).

 

Section 5.05.  Limits on Contributions under Code Section 401(m),
and the Distribution of Excess Aggregate Matching Contributions.

 

(a)           The Plan shall be
administered to satisfy the test under Code Section 401(m)(2), the
regulations promulgated thereunder, and any subsequent guidance issued by the
Internal Revenue Service, which are incorporated herein by reference, based on
the Average Contribution Percentage for the group of Non-Highly Compensated
Participants for the Prior Plan Year for the Plan Years beginning January 1,
1997 and January 1, 1998, and for the Current Plan Year for each Plan Year
beginning on or after January 1, 1999.

 

(b)           In the event there are
Excess Aggregate Matching Contributions for a Plan Year, such Excess Aggregate
Matching Contributions to the extent Vested, adjusted for Allocable Income,
shall be distributed to the affected Participants no later than the last day of
the succeeding Plan Year.  To the extent
Excess Aggregate Matching Contributions are not Vested, such Excess Aggregate
Matching Contributions, adjusted for allocable income, shall be forfeited
effective as of the last day of the Plan Year. 
Any forfeiture of Excess Aggregate Matching Contributions shall be
treated in accordance with Section 9.02(c).  The Excess Aggregate Matching Contributions
shall be distributed to the group of Highly Compensated Participants under a
leveling method, starting with the Participant with the highest dollar amount
of Matching Contributions for the Plan Year. 
The first amount of excess distributed to that Participant is the amount
of said Matching Contributions which, if reduced, would result in the dollar
amount of Matching Contributions of the Participant being equal to the greater
of (i) the dollar amount of Matching Contributions of the Participant with
the next highest dollar amount of Matching Contributions, or (ii) the
dollar amount of Matching Contributions for the Participant which would result
in the Plan satisfying the test under subsection (a).  If the test under subsection (a) is
not then satisfied, the same process is repeated with the Highly Compensated
Participant with the next highest dollar amount of Matching Contributions until
such test is satisfied.

 

(c)           The determination of
the Excess Aggregate Matching Contributions for the Plan Year shall be made
after application of the provisions of Section 5.04 for the Plan Year.

 

Section 5.06.  Multiple Use Test.  The Plan shall be administered so as to
comply with Code Sections 401(k) and 401(m), the regulations promulgated
thereunder, and any subsequent guidance issued by the Internal Revenue Service,
which are incorporated herein by reference, so as to prevent the multiple use
of the alternative limitation with respect to Highly Compensated Participants.

 

Section 5.07.  Limitation Under Code Section 415.  Notwithstanding anything in the Plan to the
contrary, the following limitations shall apply:

 

(a)           To the extent required
under Code Section 415(c), in no event shall the “annual addition,” as
defined in subsection (f), for a Participant for any Plan Year, exceed the
lesser of:

 

22

 

(1)           Thirty
Thousand Dollars ($30,000) (as increased by the Cost of Living Adjustment); or

 

(2)           twenty-five
percent (25%) of the “compensation,” as defined in subsection (g), of such
Participant received from a Related Company during the Plan Year.

 

(b)           The Plan shall be
administered so as to comply with the limitations of Code Section 415.  Notwithstanding anything in Article IV,
the Contributions on behalf of any Participant shall be reduced to the extent
necessary to comply with such limitations. For limitation years beginning on or
after January 1, 2000, any benefit limitations applied pursuant to Code Section 415(e) shall
no longer apply for Employees or Former Employees who are Participants with an
account balance under the Plan on or after January 1, 2000.

 

(c)           Notwithstanding
anything in subsection (a) to the contrary, to the extent permitted
under Code Section 415, the Tax Equity and Fiscal Responsibility Act of 1982,
the Tax Reform Act of 1986, or the Technical and Miscellaneous Revenue Act of
1988, the annual additions and annual benefit of a Participant shall be
adjusted so as to produce the maximum annual benefit and maximum annual
additions for such Participant under Code Section 415.

 

(d)           For purposes of this Section and
subject to Code Section 415(h), all defined contribution plans of a
Related Company are to be treated as a single defined contribution plan, and
all Related Companies shall be considered as a single employer.

 

(e)           If the annual addition
for a Participant under the Plan, determined without regard to the limitation
under subsection (a), would have been greater than the annual addition for
such Participant as limited by subsection (a), then the excess, if due to
a reasonable error in estimating compensation, a reasonable error in
determining the amount of Pre-Tax Contributions, the allocation of forfeitures,
or such other circumstances as found by the Secretary of the Treasury to
justify application of this subsection, shall be reduced, to the extent
necessary to satisfy such limitation, in the following priority, by:

 

(1)           distributing
to the Participant any Pre-Tax Contributions of the Participant for the Plan
Year to the extent not matched by Matching Contributions under Section 4.03,
as adjusted for any gains or losses allocated thereto; and

 

(2)           distributing
to the Participant any remaining Pre-Tax Contributions of the Participant for
the Plan Year, as adjusted for any gains or losses allocated thereto, and
forfeiting any related Matching Contributions under Section 4.03; and

 

(3)           reducing
any remaining Excess Contribution attributable to Matching Contributions under Section 4.03,
without any allocation of gain or loss thereto, in the Accounts of the
Participant to be used to reduce Matching Contributions in the next Limitation
Year and each succeeding Limitation Year if necessary.

 

(f)            For purposes of this
Section, “annual addition” means the annual addition as defined in Code Section 415(c) and
as modified in Code Section 415(l)(1) and 419A(d)(2).  In

 

23

 

general, Code Section 415(c) defines
the annual addition as the sum of the following amounts credited to a
Participant’s accounts for the limitation year under this Plan and any other
plan maintained by a Related Company:

 

(1)           employer
contributions;

 

(2)           employee
contributions; and

 

(3)           forfeitures.

 

Amounts
allocated, after March 31, 1984, to an individual medical account, as
defined in Code Section 415(l)(2), which is part of a pension or annuity
plan maintained by a Related Company are treated as annual additions to a
defined contribution plan.  Also, amounts
derived from contributions paid or accrued after December 31, 1985, in
taxable years ending after such date, which are attributable to post-retirement
medical benefits, allocated to the separate account of a key employee, as
defined in Code Section 419A(d)(3), under a welfare benefit fund, as
defined in Code Section 419(e), maintained by a Related Company are
treated as annual additions to a defined contribution plan.

 

(g)           For purposes of this
Section, “compensation” means compensation as defined in Code Section 415(c)(3).  In general, Code Section 415(c)(3) defines
compensation as all of a Participant’s wages within the meaning of Code Section 3401(a) and
all other payments of compensation to an employee by his employer in the course
of the employer’s trade or business) for which the employer is required to
furnish the employee a written statement under Code Section 6041(d),
6051(a)(3), and 6052, determined without regard to any rules under Code Section 3401(a) that
limit the remuneration included in wages based on the nature or location of the
employment or the services performed (such as the exception for agricultural
labor in Code Section 3401(a)(2)); provided, however, for Plan Years
beginning after December 31, 1997, compensation shall also include the
amount of any elective deferrals, as defined in Code Section 402(g)(3),
and any amount contributed or deferred by the employer at election of the
employee and which is not includible in the gross income of the employee by
reason of Code Section 125 or 457, and for Plan Years beginning on and
after January 1, 2001, Code Section 132(f)(4).

 

Section 5.08.  Priority of Limitations.  The provisions of Sections 5.03, 5.04, 5.05,
and 5.07 shall be applied in the following order: (i) Section 5.03; (ii) Section 5.04;
(iii) Section 5.05; and (iv) Section 5.07.

 

ARTICLE VI.

ACCOUNTING

 

Section 6.01.  Participant Accounts.  The Administrator shall establish and
maintain adequate records to reflect the Accounts of each Participant and
beneficiary.  Credits and charges shall
be made to such Accounts pursuant to the Plan to reflect additions,
distributions, and withdrawals and the following provisions of this Article to
reflect gains or losses.  Each
Participant shall have a separate Pre-Tax Contribution Account, Matching
Account, Profit

 

24

 

Sharing Account, and Rollover
Account.  The maintenance of individual
accounts is for accounting purposes only, and a segregation of Plan assets to
each Account shall not be required.

 

Section 6.02.  Valuation.

 

(a)           As of the last
Valuation Date in each Plan Year, the Trustee shall determine the fair market
value of the Trust Fund and each separate Fund in accordance with the Trust
Agreement.  On any other Valuation Date,
the Trustee may determine the fair market value of the Trust Fund or any
separate Fund, as the Trustee deems appropriate.  Based on such valuation, the Administrator
shall determine the value of the Accounts of each Participant.

 

(b)           The value of an Account
as of any date shall be the value of the Account as of the most recent
Valuation Date after all adjustments and allocations as of such Valuation Date,
increased by the amount of any Contributions allocated to the Account after
such Valuation Date and reduced by the amount of any payments or withdrawals
made from the Account after such Valuation Date.

 

ARTICLE VII.

BENEFITS

 

The Accounts
of a Participant shall be distributed pursuant to this Article VII.  Notwithstanding the prior sentence, for
purposes of the optional forms of benefit available for Preserved Accounts with
a distribution commencement date that is prior to July 1, 2002 or, if
later, the ninetieth (90th) day after the date the Participant has been
furnished a summary that reflects this restatement and that satisfies the
requirements of 29 CFR 2520.104b-3, a Participant shall be entitled to all optional
forms of benefit as described in the provisions of the Plan in effect
immediately prior to this January 1, 2003 restatement of the Plan.

 

Section 7.01.  Timing and Form of Distribution

 

(a)           If a Participant
Retires, Terminates Employment, or dies, his Vested Accounts shall be paid in a
lump sum as provided in this Section.

 

(b)           If the present value of
the Participant’s Vested Accounts does not exceed Five Thousand Dollars
($5,000) at the time of distribution, his Vested Accounts shall be paid to the
Participant or his designated beneficiary in a lump sum as soon as
administratively feasible on or after the date the Participant Retires,
Terminates Employment, or dies, as applicable. 
The determination of whether a distribution may be made pursuant to this
subsection shall be made when a Participant or beneficiary is first
eligible to receive a distribution under the Plan, and if applicable, at such
later date or dates as determined by the Administrator in its sole discretion.

 

(c)           If the present value of
the Participant’s Vested Accounts exceeds Five Thousand Dollars ($5,000) at the
time of distribution, his Vested Accounts shall be distributed at the time
elected by the Participant or his designated beneficiary on the Applicable
Form, subject to the requirements of Sections 7.02 and 7.08 and any other legal
requirements.  The determination of

 

25

 

whether a distribution may be
made pursuant to this subsection shall be made when a Participant or
beneficiary is first eligible to receive a distribution under the Plan, and if
applicable, at such later date or dates as determined by the Administrator in
its sole discretion.  An election of no
benefit distribution is deemed to be made by a Participant if the Participant
receives a distribution packet and does not make an affirmative distribution
election.

 

(d)           In the event of death,
a distribution under subsection (b) or (c) shall not occur until
the Administrator is in receipt of all necessary information to process the
distribution and is able to determine the appropriate beneficiary.

 

(e)           If the distribution to
a Participant under subsection (b) or (c) is less than his
entire Account, and it occurs before the Account is one hundred percent (100%)
Vested, then until the Participant incurs (i) prior to January 1,
2002, five (5) consecutive Breaks in Service, or (ii) on and after January 1,
2002, a five (5) year Period of Severance, the Vested portion of the
Account shall be the amount (“X”) determined by the formula:  X=P(AB+(RxD))-(RxD), where P is the Vested
percentage at any relevant time; AB is the balance of the Account at the
relevant time; D is the amount of the distribution; and R is the ratio of the
balance of the Account at the relevant time over the balance of the Account
after the distribution.

 

Section 7.02.  Notice and Consent Requirements.

 

(a)           At least thirty (30)
days and not more than ninety (90) days before the distribution to a
Participant or beneficiary pursuant to Section 7.01(b), the Administrator
shall provide the Participant or beneficiary with notice of his right to make a
direct rollover (as permitted under Section 7.04), unless otherwise waived
by the Participant or beneficiary pursuant to subsection (c).

 

(b)           A Participant or
beneficiary shall notify the Administrator of the date as of which he wishes
for distribution of his Vested Account to be made pursuant to Section 7.01(c) above
within ninety (90) days before the designated distribution date.  After receipt of such notice from the Participant
or beneficiary and at least thirty (30) days before the distribution date
designated by the Participant or beneficiary, unless otherwise waived by the
Participant or beneficiary pursuant to subsection (c), the Administrator
shall provide the Participant or beneficiary (i) who has not attained age
sixty-five (65) with an explanation of his right to defer receipt of the
distribution (if permitted under Section 7.08) and (ii) notice of his
right to make a direct rollover (as permitted under Section 7.04).  Distribution of the Vested Accounts of a
Participant or beneficiary shall not be made before the Participant or
beneficiary elects such distribution, except as required under Section 7.08,
which election must be made in writing after receipt of the explanation and
notice under (i) and (ii) respectively from the Administrator
described in the preceding sentence and within ninety (90) days before the
designated distribution date.

 

(c)           Distribution may
commence fewer than thirty (30) days after the direct rollover notice in subsection (a) and
(b), and the distribution explanation in subsection (b) is given to
the Participant or beneficiary; provided that (i) the Administrator
clearly informs the Participant that the Participant has a right to a period of
at least thirty (30) days after receiving such notice and explanation to
consider the decision of whether or not to elect a distribution (and, if
applicable, a

 

26

 

particular distribution option)
or a direct rollover, as applicable, and (ii) the Participant, after
having received such notice, affirmatively elects to receive a distribution.

 

Section 7.03.  Beneficiaries.

 

(a)           The primary
beneficiary of a married Participant shall be his spouse, unless he designates
a different primary beneficiary under subsection (b).

 

(b)           Each Participant may
designate on the Applicable Form one or more primary and contingent
beneficiaries to receive any death benefits payable under the Plan on his
death.  Each such designation may be
revoked, amended, or changed by the Participant by notice in writing on the
Applicable Form to the Administrator. 
The designation of a beneficiary other than the spouse of such
Participant shall not be effective unless:

 

(1)           the consent of the spouse of the
Participant (i) is obtained on the Applicable Form, (ii) acknowledges
the effect of the election, (iii) applies only to a specific beneficiary
designation which may not be changed without spousal consent (or the consent of
the spouse expressly permits future elections by the Participant without any
requirement of further consent by the spouse), and (iv) is witnessed by an
authorized representative of the Administrator, or by a notary public; or

 

(2)           the Participant establishes to the
satisfaction of the Administrator, in its sole discretion, that the consent
under paragraph (1) cannot be obtained because (i) the Participant
has no spouse, (ii) the spouse of the Participant cannot be located, or (iii) of
such other circumstances as the Secretary of the Treasury by regulation may
prescribe.

 

Any consent by
a spouse of a Participant, or establishment that consent of such spouse cannot
be obtained, shall be effective only with respect to such spouse.

 

(c)           In the absence of a
designation by the Participant pursuant to subsection (b), or if all
designated beneficiaries predecease the Participant, the benefits, if any,
shall be paid to the spouse of the Participant, if living at the time of the
death of the Participant, or if no such spouse is then living, to the estate of
the Participant.

 

Section 7.04.  Plan Distributions and Withholding
Requirements.  Notwithstanding any
provision of the Plan to the contrary that would otherwise limit a Distributee’s
election under this Section, a Distributee may elect, at the time and in the
manner prescribed by the Administrator, to have any portion of an Eligible
Rollover Distribution paid directly to an Eligible Retirement Plan specified by
the Distributee in a Direct Rollover. 
The following definitions shall apply to this Section:

 

(a)           An “Eligible
Rollover Distribution” is any distribution of all or any portion of the balance
to the credit of the Distributee, except that an Eligible Rollover Distribution
does not include: (i) any distribution that is one of a series of
substantially equal periodic payments (not less frequently than annually) made
for the life (or life expectancy) of the Distributee or the joint lives (or
joint life expectancies) of the Distributee and the Distributee’s designated
beneficiary, or 

 

27

 

for a specified period of ten (10) years
or more; (ii) any distribution to the extent such distribution is required
under Code Section 401(a)(9); (iii) the portion of any distribution
that is not includible in gross income (determined without regard to the
exclusion for net unrealized appreciation with respect to employer securities);
or (iv) on and after January 1, 1999, an Eligible Rollover
Distribution does not include hardship withdrawals, as defined in Code Section 401(k)(2)(B)(i)(IV),
which are attributable to the elective contributions of a Participant under
Treasury Regulations Section 1.401(k)-1(d)(2)(ii).

 

(b)           An “Eligible
Retirement Plan” is an individual retirement account described in Code Section 408(a),
an individual retirement annuity described in Code Section 408(b), an
annuity plan described in Code Section 403(a), or a qualified trust
described in Code Section 401(a), that accepts the Distributee’s Eligible
Rollover Distribution; provided, however, in the case of an Eligible Rollover
Distribution to the surviving spouse, an Eligible Retirement Plan is such an
individual retirement account or individual retirement annuity.

 

(c)           A “Distributee” includes
an employee or former employee.  In
addition, the employee’s or former employee’s surviving spouse and the employee’s
or former employee’s spouse or former spouse who is the alternate payee under a
qualified domestic relations order, as defined in Code Section 414(p), are
Distributees with regard to the interest of the spouse or former spouse.

 

(d)           A “Direct Rollover”
is a payment by the Plan to the Eligible Retirement Plan specified by the
Distributee.

 

Section 7.05.  Direct Transfer from Another Plan.  

 

(a)           A direct transfer to
the Trustee of this Plan from the trustee of another plan that is qualified
under Code Section 401(a) shall be made in connection with the merger
of such other plan into this Plan or the transfer under Code Section 414(l)
of the benefit of any Participant who was a participant under such other
plan.  Any such direct transfer must be
made directly by the trustee or other funding agent of the other plan rather
than by the Participant and shall only be made in cash.

 

(b)           A direct transfer
made pursuant to this Section 7.05 shall be recorded in the Accounts of a
Participant with like sources.  The
direct transfer shall be invested in the Fund or Funds as elected by
Participant on an Applicable Form prior to the direct transfer.  It is noted that separate accounting may be
maintained with respect to any amounts transferred to this Plan pursuant to
this Section 7.05.

 

(c)           Effective as of February 5,
2001, the Aqua Plan was merged into this Plan in compliance with the
requirements under Code Section 414(l). 
At the time of such merger all active and deferred vested participants
under the Aqua Plan were one hundred percent (100%) vested in all of their Aqua
Clear Account balances under this Plan. 
All monies were directly transferred into this Plan into like sources.

 

28

 

Section 7.06.  Direct Transfer to Another Plan.

 

(a)           A direct transfer to
the trustee of another Plan from the Trustee of this Plan that is qualified
under Code Section 401(a) shall be made in connection with the merger
of this Plan or spinoff of a portion of this Plan into another plan or the
transfer under Code Section 414(l) of the benefits of any Participant
under this Plan.  Any such direct
transfer must be made directly by the Trustee or other funding agent of this
Plan rather than by the Participant.

 

(b)           A direct transfer
may be made in cash or property; provided, however, that the trustees of the
other Plan may have the right to reject a direct transfer if the assets are in
a form inconsistent with the investment philosophy of that trustee.  Alternatively, that trustee may have the
authority to convert noncash transferred assets to cash, securities or other
investments.  Any expenses incurred in
converting such assets shall be paid from the assets received in the direct
transfer.

 

(c)           A direct transfer
made pursuant to this Section 7.06 shall be recorded as agreed to by the
plan administrators and trustees of both plans.

 

(d)           Specifically, a
direct transfer of assets and liabilities meeting the requirements of Code Section 411(d)(6) occurred
as follows:

 

(1)           Effective October 7, 1998, all
assets and liabilities were transferred for active and former Participants
employed by Octel America, Inc. from this Plan to the Octel America, Inc.
401(k) Retirement Savings Plan, with all Account balances at the time of
transfer being one hundred percent (100%) Vested.  All such active and former Participants under
this paragraph (1) ceased to be eligible for Contributions under the Plan
as of May 22, 1998, the effective date of the divestiture.

 

(2)           Effective August 2, 1999, all
assets and liabilities were transferred for active and former participants
employed by QO Chemicals, Inc. from this Plan to the Penn Specialties
Chemical, Inc. Employees’ Savings Plan, with all Account balances at the
time of transfer being one hundred percent (100%) Vested.  All such active and former Participants under
this paragraph (2) ceased to be eligible for Contributions under the Plan
as of June 29, 1999, the effective date of the divestiture.

 

(3)           Effective August 1, 2000, all
assets and liabilities were transferred for active Participants employed by
OSCA from this Plan to the OSCA, Inc. Savings Plan, with all Account
balances at the time of transfer being one hundred percent (100%) Vested.  The assets and liabilities of former
Participants, who had been employed by OSCA but were no longer active
Participants as of August 1, 2000, continue to be held under this
Plan.  All Participants under this paragraph
(3) ceased to be eligible for Contributions under the Plan as of June 15,
2000, the effective date of the divestiture.

 

(4)           Effective December 13, 2001, all
assets and liabilities were transferred for active and former participants
employed by NSC Technologies, from this Plan to the Albany Molecular Research, Inc.
401(k) & Profit Sharing Plan, with all Account balances 

 

29

 

at the time of transfer being one hundred
percent (100%) Vested.  All such active
and former Participants under this paragraph (4) ceased to be eligible for
Contributions under the Plan as of October 31, 2001, the effective date of
the divestiture.

 

Section 7.07.  Merger, Consolidation of Plans, or
Transfer of Plan Assets.  In the case
of any merger or consolidation with, or transfer of assets or liabilities to,
any other plan, each Participant in the Plan shall be entitled to a benefit (as
if the Plan had been terminated) immediately after the merger, consolidation,
or transfer which is equal to or greater than the benefit he would have been
entitled to receive immediately before the merger, consolidation, or transfer
(as if the Plan had been terminated).

 

Section 7.08.  Other Distribution Rules Imposed by
Federal Law.  Notwithstanding any
provision of this Plan to the contrary, any distribution under the Plan shall
be made in accordance with Code Section 401(a)(9) and the regulations
promulgated thereunder and shall comply with the following rules in this
Section:

 

(a)           Unless a Participant
elects otherwise, the payment of his benefits under the Plan must begin not
later than the sixtieth (60th) day after the end of the Plan Year in which
occurs the latest of (i) the Participant’s sixty-fifth (65th) birthday, (ii) the
tenth (10th) anniversary of the Plan Year in which the Participant began
participation in the Plan, (iii) the Participant’s Termination of
Employment or Retirement, or (iv) a date specified in an election by the
Participant as provided under Section 7.01(c).

 

(b)           To the extent
required by Code Section 401(a)(9) and the regulations promulgated
thereunder, payment of the Accounts of a Participant shall begin not later than
the “required beginning date.”  For
purposes of this Section, “required beginning date” means April 1 of the
calendar year following the later of (i) the calendar year in which the
Participant reaches age seventy and one-half (70-1/2), or (ii) the
calendar year in which the Participant Retires; provided, however, for a
Participant who is a five percent (5%) owner, as defined in Code Section 416,
“required beginning date” means April 1 of the calendar year following the
calendar year in which the Participant reaches age seventy and one-half (70-1/2),
regardless of whether he has Retired.

 

(c)           With respect to distributions
under the Plan made for calendar years beginning on or after January 1,
2002, the Plan will apply the minimum distribution requirements of Code Section 401(a)(9) in
accordance with the regulations under Code Section 401(a)(9) that
were proposed on January 17, 2001, notwithstanding any provision of the
Plan to the contrary.  This subsection (d) shall
continue in effect until the end of the last calendar year beginning before the
effective date of final regulations under Code Section 401(a)(9) or such
other date as may be specified in guidance published by the Internal Revenue
Service.

 

Section 7.09.  In-Service Withdrawals.

 

(a)           A Participant who
has not Terminated Employment or Retired may request on the Applicable Form,
for reason of financial hardship as defined under regulations of the Internal
Revenue Service, to withdraw in cash all or part of his Pre-Tax Contribution
Account, excluding

 

30

 

any earnings of the Trust Fund
allocated to such Pre-Tax Contribution Account after December 31, 1988,
his Rollover Account, and the Vested portion of his Matching Account; provided,
however, no portion of a Participant’s Accounts that has been pledged as
security for a loan pursuant to Section 8.02(h), nor shall any Profit
Sharing Account be available for a withdrawal under this subsection (a).  Such withdrawal may also include all or a
portion of his Accounts eligible for withdrawal under this Section 7.09
that has been invested in Company Stock pursuant to the Participant’s election
under Section 11.02 but shall not include all or a portion of his Accounts
that have been contributed in Company Stock pursuant to Section 4.03.  Such a request must be on the Applicable
Form.  Any withdrawal pursuant to this Section shall
be taken on a pro rata basis from the investment Funds in which the Accounts
are invested pursuant to the Participant’s election.  The request shall be approved only if it
satisfies all the requirements of this Section.

 

(b)           A withdrawal for
reason of financial hardship must be on account of:

 

(1)           expenses
for medical care as described in Code Section 213(d) incurred by the
Participant, his spouse, or any dependent of the Participant as defined in Code
Section 152 or expenses necessary for such persons to obtain such medical
care;

 

(2)           purchase (excluding mortgage
payments) of a principal residence for the Participant;

 

(3)           payment
of tuition, room and board expenses, and related educational fees for the next
twelve (12) months of post-secondary education for the Participant, his spouse,
children, or any dependents of the Participant as defined in Code Section 152;

 

(4)           the need to prevent the eviction of
the Participant from his principal residence or foreclosure on the mortgage of
the principal residence of the Participant; or

 

(5)           such other financial circumstances as
declared by the Commissioner of Internal Revenue to constitute immediate and
heavy financial need under Code Section 401(k) or the regulations
thereunder.

 

(c)           Any withdrawal for
reason of financial hardship must satisfy all of the following requirements:

 

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

 

(2)           The Participant must have obtained
all distributions, other than hardship distributions, and all nontaxable loans
currently available under all plans maintained by the Related Companies.

 

31

 

(3)           The
Pre-Tax Contributions of the Participant under Section 4.02 of the Plan
and any elective contributions or employee contributions of the Participant
under any other plan maintained by an Employer, except for employee
contributions under a health or welfare benefit plan, including one that is
part of a cafeteria plan under Code Section 125, shall be suspended for
twelve (12) months after receipt of any withdrawal.  The Participant must submit an Applicable Form to
elect to resume Pre-Tax Contributions following the period of suspension.

 

(4)           The Participant may not make Pre-Tax
Contributions under the Plan or elective contributions under any other plans
(excluding health and welfare benefit plans) maintained by an Employer for the
taxable year of the Participant immediately following the taxable year of the
hardship withdrawal in excess of the applicable limit under Code Section 402(g) for
such next taxable year less the amount of such Pre-Tax Contributions and
elective contributions of the Participant for the taxable year of the hardship
withdrawal.

 

(d)           The request by a
Participant for a withdrawal shall specify the reason of the financial
hardship, specify the amount the Participant wishes to withdraw to meet the
need caused by the financial hardship, and state the need cannot be met:

 

(1)           through reimbursement or compensation
by insurance or otherwise;

 

(2)           by
reasonable liquidation of the assets of the Participant, to the extent such
liquidation would not itself cause an immediate and heavy financial need;

 

(3)           by cessation of Pre-Tax Contributions
under the Plan; or

 

(4)           by other distributions or nontaxable
(at the time of the loan) loans from plans maintained by the Employers or by
any other employer, or by borrowing from commercial sources on reasonable
commercial terms.

 

The
Administrator shall determine whether financial hardship exists, and its
determination shall be final and conclusive. 
Denial of a withdrawal request shall be made in accordance with the
claims procedure of the Plan.  In making
this determination, the Administrator may rely on the representation by the
Participant that the need cannot be met by any of the aforementioned resources
or from any other resources that are reasonably available to the
Participant.  For purposes of this
Section, the resources of the Participant include those assets of the spouse of
the Participant and the minor children of the Participant that are reasonably
available to the Participant.  The
determination of whether resources are reasonably available to the Participant
is to be made on the basis of all relevant facts and circumstances.  If the Administrator requires further
information in order to determine whether financial hardship exists, it may
request this information.

 

(e)           The Administrator
shall apply uniform and nondiscriminatory standards in administering the
provisions of this Section.

 

32

 

(f)            As of any date
after a Participant attains age fifty-nine and one-half (59-1/2), he may
request a withdrawal of all or any part of his Pre-Tax Contribution Account,
Rollover Account, the Vested portion of his Profit Sharing Account, and the
Vested portion of his Matching Account; provided, however, no portion of a
Participant’s Accounts that has been pledged as security for a loan pursuant to
Section 8.02(h) shall be available for a withdrawal under this subsection (f).  Such withdrawal may include all or a portion
of his Accounts that has been contributed in Company Stock pursuant to Section 4.03
or invested in Company Stock pursuant to the Participant’s election under Section 11.02.  Only one (1) such request shall be
permitted in any calendar year and must be made on the Applicable Form filed
with the Administrator.  A distribution
under this subsection (f) shall be distributed as soon as
administratively feasible.

 

Section 7.10.  Charge or Discount.  If any charge or discount is incurred by the
Trustee as an incident to the payment of any benefits hereunder, such charge or
discount shall be charged against the benefits of the Participant or
beneficiary to which the same relates.

 

Section 7.11.  Persons Under Legal Disability.  If the Administrator is advised in writing
that any benefit is payable to a minor or other person under a legal
disability, the Administrator may direct that such payments be made to the
legal guardian of such person or to such other person or organization as a court
of competent jurisdiction may direct in full satisfaction of any payment due
under the Plan.

 

Section 7.12.  Voting of Shares in Company Stock Fund.  With respect to the prorata interest of a
Participant in any investment Fund that holds shares (and fractional shares) of
common stock of the Company each Participant, as a named fiduciary, shall have
the right to direct the Trustee as to the manner of voting and the exercise of
all other rights which a shareholder of record has with respect to the Participant’s
pro rata interest in such investment Fund (including, but not limited to, the
right to sell or retain such shares in a public or private tender or exchange
offer).  In the event that a Participant
shall fail to direct the Trustee as to the manner of voting of his pro rata
interest in such investment Fund or as to the exercise of other rights in
respect of such shares, such shares shall not be voted and no exercise of such
rights shall be made.

 

ARTICLE VIII.

PLAN LOANS

 

Section 8.01.  Plan Loans.

 

(a)           Any “party in
interest,” as defined in ERISA Section 3(14), may apply on the Applicable Form to
the Administrator for a loan from the balance of his Vested Accounts under the
Plan pursuant to this Article and such other procedures as may be
established by the Administrator; provided, however, a Participant who is an
OSCA Employee may not borrow from his Profit Sharing Account.  Such loans will be available to all such
Participants and beneficiaries on a uniform and nondiscriminatory basis.  Such loans will not be made available to

 

33

 

Highly Compensated Employees,
officers, or shareholders in an amount greater than the amount made available
to other Participants, as determined in accordance with ERISA and the Code.

 

(b)           The amount of such
loan, when added to the outstanding balance of all other loans from the Plan,
shall not exceed the lesser of:

 

(1)           Fifty Thousand Dollars ($50,000),
reduced by the excess, if any, of the highest outstanding balance of loans from
the Plan during the one (1) year period ending on the day before the date
on which the loan is made, over the outstanding balance of loans from the Plan
on the date on which such loan is made; or

 

(2)           one-half (1/2) of the Vested Accounts
of the Participant under the Plan.

 

For purposes
of the above limitations, all loans from all plans of the Related Companies
shall be aggregated.  Notwithstanding the
foregoing, the minimum amount of a loan shall be One Thousand Dollars ($1,000).  The amount of a loan may also include all or
a portion of the Participant’s Accounts eligible for a loan under this Section 8.01
that has been invested in Company Stock pursuant to the Participant’s election
under Section 11.02 but shall not include all or any portion of the Participant’s
Accounts that have been contributed in Company Stock pursuant to Section 4.03.

 

Section 8.02.  Terms and Conditions.  The loan program described in this Article shall
be administered by the Administrator. 
All loans under Section 8.01 shall comply with the loan rules established
by the Administrator and incorporated herein:

 

(a)           All loans shall be
subject to the approval of the Administrator which shall investigate each
application for a loan.

 

(b)           An eligible
Participant or beneficiary may apply for a loan by completing the Applicable
Forms.  No more than one (1) loan
may be outstanding at any time for a Participant or beneficiary.  Prior to August 14, 2001, a Participant
or beneficiary shall be required to wait at least ninety (90) days after the
repayment of any prior loan before making application for another loan.

 

(c)           Each loan shall be
amortized on a substantially level basis with payments not less frequently than
quarterly.  The period of repayment shall
not exceed four (4) years (fifteen (15) years in the event the loan is for
purchase or construction of the Participant’s principal residence); provided,
however, the term of the loan shall not extend beyond the earlier of (i) in
the case of a distribution which begins after the date of the loan, the date
such distribution of the Accounts under Article VII begins; provided,
however, a withdrawal for reason of financial hardship pursuant to Section 7.09
shall not be taken into account under this subsection unless the amount
withdrawn from the Accounts of the Participant affects the security of the
loan, (ii) the date of distribution or separation of the Accounts pursuant
to a qualified domestic relations order under Code Section 414(p) or any
portion of the Accounts if the amount distributed or separated from the
Accounts of the Participant pursuant to such order affects the security of the
loan, (iii) the date a Participant Terminates Employment or Retires,
unless the Participant is a party in

 

34

 

interest immediately after such
Termination of Employment or Retirement, or (iv) the date of a default on
the loan.

 

(d)           Participants on a
leave of absence or a temporary/nonpermanent layoff may initiate a loan, under
the Plan, subject to the terms and conditions of this Article.

 

Loan repayments may continue during a leave of absence or a
temporary/nonpermanent layoff and shall be made through payroll deduction for a
paid leave of absence or paid temporary/nonpermanent layoff or, if permitted as
described in the next sentence and if elected by the Participant, may be paid
by check by the Participant.  In the
event of a leave of absence or temporary/nonpermanent layoff (i) without
pay from a Related Company, (ii) at a rate of pay (after income and
employment taxes withholding) from a Related Company that is less than the
amount of loan repayments required under the term of the loan, or (iii) with
long-term disability payments or workers’ compensation payments paid from an
unrelated third party, a Participant who wishes to continue loan repayments
must repay the loan by delivering a check payable to the Participant’s Employer
in substantially equal installment payments as would have been deductible from
the Participant’s pay.

 

Notwithstanding
subsection (c), loan repayments may be suspended during a Participant’s
leave of absence or temporary/nonpermanent layoff if (i) such leave or
layoff is either without pay from a Related Company or at a rate of pay (after
income and employment tax withholding) that is less than the amount of the loan
repayments required under the term of the loan or (ii) long-term
disability payments or workers’ compensation payments are received from an
unrelated third party.  Such suspension
shall be for a period of not longer than one (1) year, with such one (1) year
period commencing with the later of (i) the
beginning date of such leave of absence or temporary/nonpermanent layoff, or (ii) the
date of the loan.  Notwithstanding the
foregoing, the loan must be repaid in full not later than four (4) years
(fifteen 15 years in the event the loan is for purchase or construction of the
Participant’s principal residence) after the date of the loan.  Loan repayments due after the leave of
absence or temporary/nonpermanent layoff ends (or if earlier, after the first
year of the leave of absence or temporary/nonpermanent layoff) shall be (i) reamortized
on a substantially level basis with payments not less frequently than
quarterly, or (ii) paid in a lump sum payment in the amount of the
suspended loan repayments.

 

(e)           Loan repayments
shall be suspended under the Plan as permitted under Code Section 414(u)
and USERRA.  If a Participant or
beneficiary has an outstanding loan(s) during the period when performing
service in the uniformed services, (i) loan payments shall be suspended
during such period, (ii) the time for repayment of such loan(s) shall be
extended for a period of time equal to the period when performing service in
the uniformed services, (iii) loan payments shall resume upon the completion
of such military service, and (iv) the frequency and amount of the
periodic installments following the period of such military service shall not
be less than the frequency and amount of the periodic installments required
under the terms of the original loan.

 

(f)            The Participant or
beneficiary receiving the loan shall make the required repayments in accordance
with the loan agreement.

 

35

 

(g)           Rates of interest
shall be the effective annual rate equal to the prime rate of interest plus one
percent (1%) charged by persons in the business of lending money for loans that
would be made under similar conditions as loans made under the Plan (or such
other commercially reasonable rate determined from time to time by the
Administrator in accordance with ERISA) at the time the loan application is
received by the Administrator from the Participant or beneficiary.

 

(h)           Each loan shall be
adequately secured.  The Plan shall have
a security interest in the Accounts of the Participant; provided however, such
security interest of the Plan shall not exceed fifty percent (50%) of the value
of such Accounts, at the inception of the loan, or from time to time
thereafter, whichever is greater.

 

(i)            The Administrator
may declare a loan in default no later than the last day of the calendar
quarter following the calendar quarter in which the Participant fails to make a
payment, unless the Participant pays the amount due plus accrued interest prior
to such date.

 

(j)            If the Participant
or beneficiary is in default, the Rollover Account, Profit Sharing Account, and
Matching Account of the Participant may in the discretion of the Administrator
be applied against the outstanding loan to the extent necessary to fully repay
the same.  In the event the loan remains
outstanding after application of the Accounts in the preceding sentence, the
Pre-Tax Contribution Account of the Participant may in the discretion of the
Administrator be applied against the outstanding loan provided that the Participant
(i) is age fifty-nine and one-half (59-1/2), (ii) is deceased, (iii) is
Disabled, or (iv) has Terminated Employment or Retired.

 

(k)           No distributions or
in-service withdrawals to a Participant or beneficiary shall be made prior to
repayment of all outstanding loans, except as provided in subsection (c) and
Section 7.09 for financial hardship distributions; provided, however, if
there is a distributable event with respect to the Participant, the Vested
Accounts of the Participant shall be applied against such outstanding loans to
the extent necessary to fully repay the same. 
A default is a distributable event, to the extent permitted by the Code.

 

(l)            The Participant or
beneficiary may repay in a form acceptable to the Administrator and without penalty,
the entire outstanding principal balance of the loan and accrued interest to
date of repayment.

 

(m)          If the Company sells
any Related Company that has adopted this Plan to a third party and if at the
time of the sale Participants who are employed by the Related Company have
loans outstanding under this Plan, such Participants shall be allowed to repay
the loan in full.

 

(n)           The Administrator or
its designee shall approve any loan application which satisfies the
requirements set forth in this Article.  Denial of a loan shall be made in accordance
with the claims procedure of the Plan.

 

(o)           Any loan to a
Participant or beneficiary shall be considered to be a separate asset of the
Trust Fund segregated for the benefit of such Participant.  The interest and principal paid on the loan
shall be credited to the Account or Accounts of the Participant on a pro rata
basis and

 

36

 

invested pro rata in such Fund
or Funds as elected by the Participant pursuant to Section 11.02.  The loan proceeds shall be taken pro rata
from such Fund or Funds as elected by the Participant or beneficiary on the
Applicable Form in effect on the date of the loan.

 

(p)           The Administrator
may establish and charge a processing fee with respect to any loan.  Such fee shall be paid by the Participant or
beneficiary to the Administrator.

 

ARTICLE IX.

VESTING

 

Section 9.01.  Vesting Standards.

 

(a)           A Participant shall
be one hundred percent (100%) Vested in his Pre-Tax Contribution Account and Rollover
Account at all times.

 

(b)           A Participant who
has not Terminated Employment or Retired shall be one hundred percent (100%)
Vested in his Matching Account and Profit Sharing Account on and after the
earlier of reaching age sixty-five (65), becoming Disabled, or death.

 

(c)           A Participant shall
be Vested in his Matching Account in the following percentages as of the
completion of the following Years of Service:

 

	
  Number of 

  Years of Service

  	
   

  	
  Vested 

  Percentage

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Less than 

  	
  2

  	
   

  	
  0

  	
  %

  
	
   

  	
  2

  	
   

  	
  20

  	
  %

  
	
   

  	
  3

  	
   

  	
  40

  	
  %

  
	
   

  	
  4

  	
   

  	
  60

  	
  %

  
	
   

  	
  5

  	
   

  	
  80

  	
  %

  
	
   

  	
  6 or more

  	
   

  	
  100

  	
  %

  

 

(d)           Notwithstanding
anything in subsection (c) to the contrary, each Participant shall be
one hundred percent (100%) Vested in any Aqua Clear Account on and after February 5,
2001.

 

(e)           Notwithstanding
anything in this Section to the contrary, a Participant shall be one
hundred percent (100%) Vested in his Matching Account and any Profit Sharing
Account, as provided under Section 7.06(d).

 

(f)            Service shall be
credited for Vesting purposes pursuant to Section 2.01(fff).

 

(g)           A Plan amendment
changing any Vesting schedule under the Plan shall not affect the Vested
portion of a Participant’s Accounts (determined as of the day prior to the
later of the day such amendment is adopted, or the day such amendment becomes
effective).  Each 

 

37

 

Participant having not less
than three (3) Years of Service shall be permitted to elect on an
Applicable Form, within a reasonable period after the adoption of such
amendment, to have his Vested Accounts computed under the Plan without regard
to such amendment.  The reasonable period
shall end no earlier than the latest of the following dates (i) the date
that is sixty (60) days after the day the amendment is adopted, (ii) the
date that is sixty (60) days after the day the amendment becomes effective, or (iii) the
date that is sixty (60) days after the day the Participant is issued written
notice of the amendment by the Employer or Administrator.

 

Section 9.02.  Forfeitures.

 

(a)           Except as otherwise
provided in subsection (b), the
non-Vested Accounts of a Participant shall be forfeited at the time he incurs (i) prior
to January 1, 2002, five (5) consecutive Breaks in Service, or (ii) on
and after January 1, 2002, a five (5) year Period of Severance.

 

(b)           Upon distribution of
the entire Vested Accounts of a Participant before the end of the second Plan
Year following the Plan Year in which the Participant Terminates Employment,
his non-Vested Accounts shall be forfeited. 
If at the time a Participant Terminates Employment, his Accounts are
entirely non-Vested, he shall be deemed to have received a distribution of his
Vested Accounts upon Termination of Employment, and his non-Vested Accounts
shall be forfeited.  If a former
Participant whose non-Vested Accounts are forfeited pursuant to this subsection is
reemployed by the Employer, the forfeited amounts shall be restored, provided
that if the Participant received a distribution described in the first sentence
of this subsection, he repays to the Trust the full amount distributed to him
before the date on which he incurs (i) prior to January 1, 2002, five
(5) consecutive Breaks in Service, or (ii) on and after January 1,
2002, a five (5) year Period of Severance, after the date of the
distribution.  Amounts restored shall
come from Trust income and, to the extent necessary, forfeitures.  If Trust income and forfeitures are
insufficient to restore the forfeited amounts, the Employer shall make an
additional contribution sufficient to restore the forfeited amount.  This additional contribution shall not
constitute an annual addition under Code Section 415.

 

(c)           Amounts forfeited
during a Plan Year shall be held unallocated until they are used as provided in
this subsection; provided, however, forfeited amounts arising from a
Participant’s Profit Sharing Account shall be allocated to the Profit Sharing
Account of each remaining Participant who is an OSCA Employee in the same
proportion that the OSCA Employee’s Compensation for the Plan Year bears to the
total Compensation of all OSCA Employees who are Participants for such Plan
Year.  Forfeited amounts shall be used to
offset expenses incurred in the administration of the Plan as allowed by law
and, to the extent not needed to offset expenses, to reduce Employer
contributions required under Section 4.03.

 

38

 

ARTICLE X.

ADMINISTRATION OF THE PLAN

 

Section 10.01.  Administrator.

 

(a)           The Administrator
shall serve as the administrator of the Plan within the meaning of ERISA.  The Administrator shall have the authority to
control and manage the operation and administration of the Plan and shall be
the named fiduciary of the Plan.  The
Administrator is authorized to accept service of legal process.

 

(b)           The Administrator
shall have such power and authority (including discretion with respect to the
exercise of that power and authority) as may be necessary, advisable,
desirable, or convenient to enable the Administrator to carry out its duties
under the Plan.  By way of illustration
and not limitation, the Administrator is empowered and authorized:

 

(1)           to make rules and regulations
with respect to the Plan not inconsistent with the Plan, the Code, or ERISA and
to amend or rescind such rules and regulations;

 

(2)           to determine, consistently therewith,
all questions of law or fact that may arise as to the eligibility, benefits,
status, and rights of any person claiming benefits or rights under the Plan,
including without limitation, Participants, former Participants, surviving
spouses of Participants, beneficiaries, Employees, and former Employees;

 

(3)           to direct the Trustee to make
payments from the Trust Fund to Participants, their beneficiaries, and other
persons as the Administrator may determine; and

 

(4)           subject to and consistent with the
Code and ERISA, to construe and interpret the Plan and to correct any defects,
supply any omissions, or reconcile any inconsistencies in the Plan.

 

(c)           Benefits under the
Plan shall be paid only if the Administrator decides, in its sole discretion,
that the applicant is entitled to such benefits.

 

(d)           Any action by the
Administrator, which is not found to be an abuse of discretion, shall be final,
conclusive, and binding on all individuals affected thereby.  The Administrator may take any such action in
such manner and to such extent as the Administrator in its sole discretion may
deem expedient and the Administrator shall be the sole and final judge of such
expediency.

 

Section 10.02.  Claims Procedure.

 

(a)           Any person who
believes that he is entitled to any benefits under the Plan shall present such
claim in writing to the Administrator. 
The Administrator shall within ninety (90) days provide adequate notice
in writing to any claimant as to the decision on any such claim.  If

 

39

 

such claim has been denied, in
whole or in part, such notice shall set forth (i) the specific reasons for
such denial, (ii) specific reference to any pertinent provisions of the
Plan on which denial is based, (iii) a description of any additional
material or information necessary for the claimant to perfect the claim and an
explanation of why such material or information is necessary, and (iv) an
explanation of the review procedure for the Plan.  Such notice shall be written in a manner
calculated to be understood by the Participant. 
Within sixty (60) days after receipt by the claimant of notification of
denial, the claimant shall have the right to present a written appeal to the
Administrator.  If such appeal is not
filed within said sixty (60) day period, the decision of the Administrator
shall be final and binding.  The
Administrator shall act as a fiduciary in making a full and fair review of such
denial.  The claimant or his duly
authorized representative may review any Plan documents which are pertinent to
the claim and may submit issues and comments to the Administrator in writing.

 

(b)           A decision by the
Administrator shall be made promptly, and in any event not later than sixty
(60) days after its receipt of the appeal; provided, however, if the
Administrator decides a hearing at which the claimant or his duly authorized
representative may be present is necessary and such a hearing is held, such
decision shall be rendered as soon as possible, but not later than one hundred
twenty (120) days after its receipt of the appeal.  Any such decision of the Administrator shall
be in writing and provide adequate notice to the claimant setting forth the
specific reasons for any denial and written in a manner calculated to be
understood by a Participant.  Any such
decision by the Administrator shall be final. 
All claims procedures shall be governed by the regulations promulgated
by the Secretary of Labor.

 

Section 10.03.  Employment of Consultants.  The Administrator or a fiduciary named by the
Administrator may employ one (1) or more persons to render advice with
regard to their respective responsibilities under the Plan.

 

Section 10.04.  Delegation by Administrator.  The Administrator may from time to time
delegate to an individual, committee, or organization certain of its fiduciary
responsibilities under the Plan.  Any
such individual, committee, or organization shall remain a fiduciary until such
delegation is revoked by the Administrator, which revocation may be without
cause and without advance notice.  To the
extent permitted under ERISA, such individual, committee, or organization shall
have such power and authority with respect to such delegated fiduciary
responsibilities as the Administrator has under the Plan.  The Administrator shall not be liable for any
act or omission of such fiduciary in carrying out such responsibility, except
as may be otherwise provided in ERISA.

 

Section 10.05.  Qualified Public Accountant.  If required under ERISA, the Administrator
shall engage on behalf of all Participants an independent qualified public
accountant who is qualified to act as such under ERISA and who shall conduct
such an examination of any financial statements of the Plan, and of other books
and records of the Plan, as the qualified public accountant may deem necessary
to enable him to form an opinion as to whether the financial statements and
schedules required to be included in the annual report of the Plan under ERISA
are presented fairly in conformity with generally accepted accounting
principles applied on a basis consistent with that of the preceding Plan Year
and who shall perform such other services for the Plan as the Administrator may
require.

 

40

 

Section 10.06.  Fiduciary Insurance.  The Plan may purchase fiduciary liability
insurance for any of its fiduciaries, or for itself, to cover liability or
losses occurring by reason of the act or omission of a fiduciary, provided that
such insurance permits recourse by the insurer against the fiduciary in the
case of a breach of a fiduciary obligation under ERISA by such fiduciary.

 

ARTICLE XI.

TRUST

 

Section 11.01.  Trust Fund.

 

(a)           All contributions
under the Plan shall be transferred to the Trust to be held, managed, invested,
and distributed as part of the Trust Fund by the Trustee in accordance with the
provisions of the Plan.  All benefits
under the Plan shall be distributed solely from the Trust Fund, and the
Employer shall have no liability therefor other than the obligation to make
contributions to the Trust Fund as provided in the Plan.

 

(b)           In accordance with
guidelines established by the Administrator, the Trustee shall cause the Trust
Fund to consist of one or more Funds. 
The Administrator may add additional Funds or delete Funds.  Any such Funds may invest through the medium
of any common, collective, or commingled fund maintained by the Trustee which
is invested principally in property of the kind specified for such Fund.  The Administrator shall establish investment
guidelines or policies applicable to each such Fund.  A portion of each Fund may be maintained in
cash or cash equivalents.  Income or
losses from investments in each Fund shall be credited or debited to the same
Fund.

 

Section 11.02.  Investments.

 

(a)           Each Participant
shall have the right to direct the investment of his Accounts in accordance
with this Section.

 

(b)           Except with regard
to Matching Contributions made in Company Stock pursuant to Section 4.03,
subject to the limitations of Section 11.03, contributions shall be
invested as elected by the Participant, or as subsequently changed, on the
Applicable Form filed with the Administrator, subject to such conditions
as it may prescribe.

 

(c)           Contributions shall
be invested, on or after June 1, 2000, in multiples of five percent (5%)
in any one (1) or more of the Funds, as elected by the Participant on the
Applicable Form filed with the Administrator, or its designee, or by such
other means as may be provided for the Funds, subject to such conditions as the
Administrator, or its designee, may prescribe. 
If a Participant does not complete an Applicable Form electing the
investment of his Accounts, his Accounts shall be invested in the Fund or Funds
designated by the Administrator, from time to time.

 

(d)           Except with regard
to Matching Contributions made in Company Stock pursuant to Section 4.03,
a Participant may change his investment election with respect to contributions
to

 

41

 

be made thereafter and may
elect to transfer all or any portion of the Accounts of the Participant which
may be invested in any one (1) Fund to another Fund, subject to Section 11.03
and the limitations of the Funds, by filing a request on the Applicable Form with
the Administrator, or its designee, or by such other means as may be provided
for the Funds.

 

(e)           Where excessive
trading can undermine any of the Funds or exceed the available liquidity for
any such Fund, the Company reserves the right to modify or suspend transfer and
withdrawal privileges on any of the Funds, at any time, upon notice to
Participants.

 

(f)            A reasonable annual
administrative fee, as determined by the Administrator, may be charged to the
Accounts of a Participant who has Terminated Employment or Retired for related
expenses after the first Plan Year of the Participant’s Termination of
Employment or Retirement.

 

Section 11.03.  Company Stock.

 

(a)           Participants may
direct the investment of their Accounts into Company Stock as provided in Section 11.02.

 

(b)           No employer
securities shall be distributed from the Plan for any type of Plan
distribution, whether Retirement, Termination of Employment, death, in-service
withdrawal or loan.  All Company Stock
shall be liquidated under the Plan, as allowed under the terms and conditions
of the Plan, in order to effectuate any distribution.  All distributions from
the Plan shall be paid in cash.

 

(c)           As provided under Article IV,
certain Matching Contributions shall be made in Company Stock.  Once allocated to the Plan, Participants may
not redirect such Matching Contributions out of Company Stock.  Provided, however, effective as of August 24,
2000, if a Participant is age fifty-five (55) or older, a Participant shall be
permitted to transfer the portion of his Matching Contribution Account
contributed in Company Stock, in whole or in part, to any other Fund, by
completing an Applicable Form.  Trading
Impact Procedures may apply.  Otherwise,
no such transfer shall be permitted.

 

(d)           Elections with
respect to investments in Company Stock by Participants who are members of the
Board of Directors of the Company or who are officers of the Company within the
meaning of Securities and Exchange Commission Rule 16a-1(f), will be
given effect only if one of the following conditions is met:

 

(1)           if the election is made in connection
with the death, Disability, Retirement or Termination of Employment of the
Participant; or

 

(2)           the election is required to be made
available to the Participant pursuant to the Internal Revenue Code; or

 

(3)           if the election involves a transfer
of existing Account balances into Company Stock, it is not made within six (6) months
following the most recent election, 

 

42

 

with respect
to any employee benefit plan of the Company, that effected a transaction that
was a disposition of Company Stock; or, if the election involves a transfer of
Account balances out of the Company Stock, it is not made within six (6) months
following the most recent election, with respect to any employee benefit plan
of the Company, that effected a transaction that was an acquisition of Company
Stock; or

 

(4)           if the election results in the
investment of future contributions (e.g., new money) into Company Stock; or

 

(5)           the election is determined by the
Trustee, based upon the advice of counsel to the Company, to be otherwise
exempt from Section 16(b) of the Exchange Act.

 

Section 11.04.  Investment Manager.  The Administrator may designate one (1) or
more Investment Managers with authority to manage, acquire or dispose of any
assets of the Plan.

 

Section 11.05.  ERISA Section 404(c).  The Plan is intended to comply with ERISA Section 404(c),
and such compliance shall limit the liability of Plan fiduciaries with regard
to Participant directed investments.  In
accordance with the provisions of ERISA Section 404(c), each Participant
shall have the right to direct the investment of his Accounts in one (1) or
more Funds in accordance with this Article, the Trust Agreement, and any rules promulgated
and adopted by the Administrator.

 

Section 11.06.  Custodian.  The Administrator may establish one or more
custodial accounts pursuant to Code Section 401(f) for the
safekeeping, possession and servicing of the Trust Fund and appoint a bank to
serve as Custodian for all or part of the assets of the Plan to be held in such
custodial accounts.

 

ARTICLE XII.

AMENDMENT OR TERMINATION

 

Section 12.01.  Amendment or Termination.

 

(a)           The (i) Chairman,
President, and Chief Executive Officer of the Company or the (ii) Senior
Vice President of Human Resources and Communications, each of them acting
singly, shall have the right, in his sole and final discretion, to amend the
Plan at any time and from time to time to any extent which it may deem advisable,
subject to the provisions of any applicable collective bargaining agreement;
provided, however, that no amendment shall retroactively increase the duties or
responsibilities of the Trustee without its written consent.  A certified copy of the resolution of such
officer taking such action shall be delivered to the Administrator and Trustee,
and the Plan shall be amended in the manner and effective as of the date set
forth in such resolution, and the Employers, Employees, Participants,
beneficiaries, Trustee, Administrator, and all other persons having any
interest under the Plan shall be bound thereby. 
Provided, however, that no such officer action shall operate to
recapture for an Employer any

 

43

 

contributions or payments
previously made to the Plan, nor to adversely affect any benefits otherwise
payable to Participants and their beneficiaries.

 

(b)           The Board of
Directors shall have the right, in its sole and final discretion, to terminate
the Plan at any time.  A certified copy
of the resolution of the Board of Directors taking such action shall be
delivered to the Administrator and Trustee, and the Plan shall be terminated in
the manner and effective as of the date set forth in such resolution, and the
Employers, Employees, Participants, beneficiaries, Trustee, Administrator, and
all other persons having any interest under the Plan shall be bound thereby.

 

Section 12.02.  Amendment for Qualification of Plan.  It is the intent of the Company that the Plan
shall be and remain qualified for tax purposes under the Code.  The Company shall promptly submit the Plan
for approval under the Code and all expenses incident thereto shall be borne by
the Company.  The (i) Chairman,
President, and Chief Executive Officer of the Company or the (ii) Senior
Vice President of Human Resources and Communications, each of them acting
singly, may make any modifications, alterations, or amendments to the Plan
necessary to obtain and retain approval of the Secretary of the Treasury or his
delegate as may be necessary to establish and maintain the status of the Plan
as qualified and the deductibility for income tax purposes of Employer
contributions thereto under the provisions of the Code or other federal
legislation, as now in effect or hereafter enacted, and the regulations issued
thereunder.  Any modification,
alteration, or amendment of the Plan, made in accordance with this Section, may
be made retroactively, if necessary or appropriate.  A copy of such amendment shall be delivered
to the Administrator and Trustee, and the Plan shall be amended in the manner
and effective as of the date set forth in the resolution of such officer, and
the Employers, Employees, Participants, beneficiaries, Trustee, Administrator,
and all others having any interest under the Plan shall be bound thereby.

 

Section 12.03.  Restrictions on Amendments.  Any amendment may be made to the Plan which
is not contrary to ERISA or the Code.  No
amendment may be made to the Plan that violates Code Section 411(d)(6).

 

Section 12.04.  Discontinuance or Suspension of
Contributions.  An Employer may
discontinue completely or suspend temporarily for a definite or indefinite
period its contributions under the Plan, or terminate the Plan, at any time or
from time to time without any liability whatsoever, as contributions by the
Employers are completely voluntary and the Employers are under no contractual
obligation to continue contributions. 
Temporary suspension of contributions by an Employer shall not result in
any Accounts becoming Vested.

 

Section 12.05.  Allocation of Assets on Termination.  In the case of the complete or partial
termination of the Plan, as to one (1) or more Employers, including a
termination arising from the complete discontinuance of contributions, the
Accounts of each affected Participant shall become irrevocably Vested.  On such complete or partial termination, the
affected portion of the Trust Fund shall be liquidated pursuant to the
direction of the (i) Chairman, President, and Chief Executive Officer of
the Company or the (ii) Senior Vice President of Human Resources and
Communications, each of them acting singly. 
The Plan shall remain in full effect with respect to each Employer, and
Participants who are Employees of such Employer, which does

 

44

 

not terminate its participation
in the Plan on behalf of its Employees; provided, however, the termination of
participation by less than all of the Employers shall not affect the Plan as it
applies to Participants who are not, at the time of termination, Employees of a
terminating Employer.

 

ARTICLE XIII.

ENTRY AND WITHDRAWAL OF EMPLOYERS

 

Section 13.01.  Entry of Employers.  Any organization classified as an Employer by
the (i) Chairman, President, and Chief Executive Officer of the Company or
the (ii) Senior Vice President of Human Resources and Communications, each
of them acting singly, may become a party to the Plan as of the first day of
any Plan Year, or such other date specified by such officer, by delivering to
the Administrator an appropriate resolution by the board of directors of such
organization.  With the consent of such
officer, such organization shall become an Employer hereunder, as of the
specified date, and shall be subject to the terms and provisions of the Plan as
then in effect and thereafter amended.

 

Section 13.02.  Withdrawal from Plan.  An Employer may withdraw from the Plan if
authorized by the (i) Chairman, President, and Chief Executive Officer of
the Company or the (ii) Senior Vice President of Human Resources and
Communications, each of them acting singly, upon written notice together with a
resolution of the Employer’s board of directors, or with respect to a limited
partnership its general partner, authorizing its withdrawal as an Employer
hereunder.  Any Employer hereunder which
elects to withdraw from the Plan shall deliver such notice to either of such
officers at least thirty (30) days prior to the date withdrawal is to be
effective, unless such requirement is waived by joint action of such
officers.  Provided, however, the (i) Chairman,
President, and Chief Executive Officer of the Company or the (ii) Senior
Vice President of Human Resources and Communications, each of them acting
singly, shall have complete authority, in their discretion, to determine the
actual date of withdrawal and the terms and conditions of such withdrawal,
subject to any applicable provisions of the Code and ERISA.

 

ARTICLE XIV.

TOP-HEAVY PROVISIONS

 

Section 14.01.  Definitions.  For purposes of this Article, the following
definitions shall apply:

 

(a)           “Aggregation Group”
means each qualified plan of the Employers (including any terminated plan if it
was maintained in the last five (5) year period ending on the
Determination Date) in which at least one (1) Key Employee participates in
the Plan Year containing the Determination Date or any of the four (4) preceding
Plan Years and each other plan of the Employers which, during such period,
enables any plan in which a Key Employee participates to meet the requirements
of Code Sections 401(a)(4) or 410.  “Aggregation
Group” also includes each other qualified plan of the Employers designated by
the Employers as part of such group, if

 

45

 

such group, taking into account
such plan, would continue to meet the requirements of Code Sections 401(a)(4) and
410.

 

(b)           “Determination Date”
means, for the first Plan Year, the last day of the first Plan Year, and for
any other Plan Year, the last day of the preceding Plan Year.

 

(c)           “Key Employee” means
any Employee or former Employee, and the beneficiaries of such Employee, who at
any time during the Plan Year or the preceding four (4) Plan Years, was:

 

(1)           an officer of an Employer having
annual compensation, as defined in Code Section 414(q)(4), from the
Employer greater than fifty percent (50%) of the amount in effect under Code Section 415(b)(1)(A) for
any such Plan Year, provided, however, no more than fifty (50) employees (or,
if lesser, the greater of three (3) or ten percent (10%) of the employees)
shall be treated as officers;

 

(2)           one (1) of ten (10) Employees,
having annual compensation, as defined in Code Section 414(q)(4), from an
Employer greater than the amount in effect under Code Section 415(c)(1)(A) for
any such Plan Year, and owning (or considered as owning under Code Section 318)
the largest interests in an Employer;

 

(3)           a five percent (5%) owner of an
Employer; or

 

(4)           a one percent (1%) owner of an
Employer with annual compensation, as defined in Code Section 414(q)(4),
from such Employer of more than One Hundred Fifty Thousand Dollars ($150,000).

 

The status of
an Employee as a Key Employee shall be determined with reference to the Plan
Year containing the Determination Date, and shall be determined in accordance
with Code Section 416(i)(1) and the regulations thereunder.

 

(d)           “Non-Key Employee”
means any Employee or former Employee, and the beneficiaries of such Employee,
who is not a Key Employee.

 

(e)           “Top-Heavy
Allocation Date” means, for any Plan Year, the date of the most recent
valuation immediately preceding or coincident with the Determination Date for
the Plan Year.

 

(f)            “Top-Heavy Plan”
means, for any Plan Year the Plan if the “top-heavy ratio” for the Aggregation
Group as of the Determination Date exceeds sixty percent (60%).  The top-heavy ratio is a fraction, the
numerator of which is the present value of the cumulative accrued benefits as
of the Top-Heavy Allocation Date under the defined benefit plans for all Key
Employees plus the sum of account balances as of the Determination Date under
the defined contribution plans for all Key Employees, and the denominator of
which is the present value of the cumulative accrued benefits as of the
Top-Heavy Allocation Date under the defined benefit plans plus the sum of
account balances as of the Determination Date under the defined 

 

46

 

contribution plans for all
Participants, including Key-Employees, former Participants, and the
beneficiaries of such Participants. 
Provided, however, in the calculation of the top-heavy ratio (i) if
any Participant has not performed any services for an Employer at any time
during the five (5) year period ending on the Determination Date, the
accounts of such Participant shall not be taken in account; (ii) the value
of account balances and cumulative accrued benefits of a Participant who is a
Non-Key Employee but who was a Key Employee in a prior year shall be
disregarded; (iii) the value of account balances and cumulative accrued
benefits for the Aggregation Group shall be calculated with reference to the
Determination Date of each plan which falls within the same calendar year; (iv) the
extent to which distributions, rollovers, and transfers are taken into account
shall be made in accordance with Code Section 416 and the regulations
thereunder; and (v) the present value of the cumulative accrued benefits
and account balances of a Participant shall be increased by the aggregate
distributions made with respect to such Participant during the five (5) year
period ending on the Determination Date, including such distributions from
terminated plans which, if not terminated, would be required to be included in
the Aggregation Group.  The accrued
benefit of a Participant other than a Key Employee shall be determined
under:  (i) the method, if any, that
uniformly applies for accrual purposes under all defined benefit plans
maintained by the Employers, or (ii) if there is no such method, as if
such benefit accrued not more rapidly than the slowest accrual rate permitted
under the fractional rule of Code Section 411(b)(1)(C).

 

(g)           “Top-Heavy Year”
means any Plan Year in which the Plan is a Top-Heavy Plan.

 

Section 14.02.  Top-Heavy Plan Provisions.  If the Plan is a Top-Heavy Plan in any one (1) or
more Plan Years, and notwithstanding Article V, in each Top-Heavy Year the
following provisions shall apply:

 

(a)           The minimum accrued
benefit derived from Employer contributions for each Participant who is a
Non-Key Employee, shall equal a percent of the compensation of each such
Participant from an Employer for the Top-Heavy Year which is the lesser of (i) three
percent (3%), or (ii) the percent of compensation for the Top-Heavy Year
allocated to the Accounts of the Key Employee with the highest percentage
allocation for the Top-Heavy Year. 
Provided, however, the minimum allocation may not be less than three
percent (3%) if the Plan is required to be included in an Aggregation Group and
the Plan enables a defined benefit plan required to be included in such group
to meet the requirements of Code Section 401(a)(4) or 410.  This minimum allocation shall include all
amounts allocated to the Accounts of such Participant for the Top-Heavy Year
pursuant to Section 4.03 but not 4.02. 
This minimum allocation shall include amounts allocated to the Accounts
of a Participant who is a Key Employee for the Top-Heavy Year pursuant to
Sections 4.02 and 4.03.

 

(b)           Notwithstanding subsection (a),
if an Employer maintains another Top-Heavy Plan, which is a defined
contribution plan, and the other plan satisfies subsection (a) with
respect to a Participant who is a Non-Key Employee in both plans, then subsection (a) will
not apply to this Plan with respect to such Participant.

 

(c)           Notwithstanding subsection (a),
if an Employer maintains another Top-Heavy Plan, which is a defined benefit
plan, then either (i) the other plan must satisfy the defined

 

47

 

benefit minimum provisions of
Code Section 416(c)(1) with respect to a Participant who is a Non-Key
Employee in both plans, or (ii) this Plan must provide a minimum accrued
benefit derived from Employer contributions for such Participant equal to five
percent (5%) of the compensation of such Participant from the Employer for the
Top-Heavy Year.

 

ARTICLE XV.

NONALIENATION OF BENEFITS AND DOMESTIC RELATIONS ORDERS

 

Section 15.01.  Nonalienation of Benefits.

 

(a)           Except as provided
in subsection (b) or (c), no benefit under the Plan, prior to actual
receipt thereof by a Participant or a beneficiary, shall be subject to any
debt, liability, contract, engagement, or tort of any Participant or his
beneficiary, nor subject to anticipation, sale, assignment, transfer,
encumbrance, pledge, charge, attachment, garnishment, execution, alienation, or
other voluntary or involuntary alienation or other legal or equitable process,
nor transferable by operation of law.

 

(b)           The benefits of a
Participant shall be paid to an “Alternate Payee” as defined in Code Section 414(p)
pursuant to the applicable requirements of any “Qualified Domestic Relations
Order” under Code Sections 401(a)(13) and 414(p).  The Alternate Payee shall be able to direct
the investment of his or her portion of the benefit under the Plan and shall be
able to designate a beneficiary, as applicable.

 

(c)           The benefits of a
Participant under the Plan may be reduced to the extent permitted under Code Section 401(a)(13),
which, in general, provides a reduction to satisfy the Participant’s liability
to the Plan due to (i) the Participant’s conviction of a crime involving
the Plan, (ii) a judgment, consent order, or decree in an action for
violation of fiduciary standards, or (iii) a settlement involving the
Department of Labor or the Pension Benefit Guaranty Corporation.

 

(d)           Notwithstanding any
other provision of the Plan, any benefit payable to a Participant or a
beneficiary of a Participant shall be reduced by any benefit paid or
payable  from the benefits of the
Participant under the Plan pursuant to subsection (b) or (c).  The Administrator, in its sole discretion,
may direct the Trustee to separately account for any benefit payable pursuant
to subsection (b) or (c).

 

(e)           Notwithstanding any
other provision of the Plan, the Plan may make a distribution to an Alternate
Payee pursuant to a Qualified Domestic Relations Order prior to the date the
Participant attains his earliest retirement age, as defined in Code Section 414(p)(4)(B),
only if the domestic relations order specifically requires the Plan to make a
distribution prior to such date.  If the
present value of any such benefits payable to the Alternate Payee is less than
Five Thousand Dollars ($5,000) at the time the order is determined to be a
Qualified Domestic Relations Order, the benefits shall be paid to the Alternate
Payee in the form of a single lump sum payment as soon as administratively
reasonable.

 

48

 

Section 15.02.  Procedures Regarding Domestic Relations
Orders.

 

(a)           If the Plan receives
any order which may be a Qualified Domestic Relations Order, the Administrator
shall:

 

(1)           promptly notify the Participant and
any prospective Alternate Payee of (i) the receipt of such order, and (ii) the
procedures under the Plan for determining whether such order is a Qualified
Domestic Relations Order; and

 

(2)           within a reasonable period after
receipt of such order, and in accordance with regulations which the Secretary
of Labor may prescribe, determine whether such order is a Qualified Domestic
Relations Order and notify the Participant and each Alternate Payee of such
decision.

 

(b)           The Administrator
shall establish reasonable procedures to determine whether any order is a
Qualified Domestic Relations Order and to administer the distribution of
benefits with respect to such orders. 
The procedures shall (i) be in writing, (ii) provide prompt
notice of such procedures to each person specified in the order as entitled to
the payment of benefits, at the address specified in the order, and (iii) permit
an Alternate Payee to designate a representative for receipt of copies of
notices that are sent to Alternate Payees with respect to a Qualified Domestic
Relations Order.

 

(c)           During any period of
time in which the issue of whether an order is a Qualified Domestic Relations
Order is being determined by the Administrator, a court of competent
jurisdiction, or otherwise, the Administrator shall provide the Trustee with
written direction to separately account under the Trust for the amounts, if
any, which would be payable to an Alternate Payee during such period if such
order is determined to be a Qualified Domestic Relations Order.  If within the eighteen (18) month period
beginning on the date on which the first payment would be required to be made
under the order, the order, or modification thereof, is determined to be a
Qualified Domestic Relations Order, the Administrator shall pay such separately
accounted amounts, plus any gain or loss, to the Alternate Payee or Payees
entitled thereto.  If within the eighteen
(18) month period the order is determined to not be a Qualified Domestic
Relations Order, or if such issue has not been resolved, the Administrator
shall direct the Trustee to pay such separately accounted amounts, plus any
interest thereon, to the Participant or beneficiary entitled to such amounts as
if there had been no order.  Any
determination that an order is a Qualified Domestic Relations Order after the
close of the eighteen (18) month period shall have only prospective application.  Notwithstanding the preceding provisions, and
in accordance with such regulations as the Secretary of the Treasury may
prescribe, the Administrator, in the sole discretion of the Administrator, may
delay payment of any amounts payable under the Plan to a Participant (i) to
the end of said eighteen (18) month period, if an order is found to be
defective within said eighteen (18) month period and the Administrator has
notice that the parties with respect to the order are attempting to rectify any
defects in the order, or (ii) for a reasonable period of time, if the
Administrator receives notice that an order which may be a Qualified Domestic
Relations Order is being sought with respect to the Participant; provided,
however, for these purposes, a court stay to the Administrator during the time
an appeal is pending is notice that the parties with respect to an order are
attempting to 

 

49

 

cure any defects in an order,
and the Administrator shall honor a restraining order prohibiting the
disposition of any amounts with respect to a Participant pending resolution of
a dispute with respect to an order which may be a Qualified Domestic Relations
Order.

 

Section 15.03.  Surviving Spouse.  To the extent so provided in any Qualified
Domestic Relations Order, the former spouse of a Participant shall be treated
as the surviving spouse of the Participant under the Plan for purposes of Code
Sections 401(a)(11) and 417 and the spouse of the Participant shall not be
treated as a spouse of the Participant for such purposes.

 

ARTICLE XVI.

MISCELLANEOUS

 

Section 16.01.  Non-Diversion.  The
assets of the Plan shall never inure to the benefit of an Employer and shall be
held for the exclusive purposes of providing benefits to Participants in the
Plan and their beneficiaries and defraying reasonable expenses of administering
the Plan, except as follows:

 

(a)           In the case of a
contribution which is made by an Employer under a mistake of fact, such
contribution shall be returned to the Employer, upon demand, within one (1) year
after the payment of the contribution and shall be reduced for any loss
incurred but unadjusted for any gains earned during the time the mistaken
contribution was part of the Trust.

 

(b)           Contributions by an
Employer are conditioned on the deductibility of the contribution under the
Code.  To the extent the deduction is
disallowed, such contributions to the extent disallowed shall be returned to
the Employer, upon demand, within one (1) year after the disallowance of
such deduction.  Any amount not returned
to the Employer shall be deductible in subsequent taxable periods as provided
in the Code.

 

Section 16.02.  Military Service.  Notwithstanding any other provision in the
Plan to the contrary, any Participant who is entitled to the rights,
protections, and privileges afforded by USERRA and is reemployed with a Related
Company as provided in USERRA, shall (i) as otherwise provided in the
Plan, receive credit for the period served in the military for purposes of
vesting and benefit accrual under the terms of the Plan, (ii) be entitled
to receive any employer contributions the Participant failed to receive as a
result of his or her military service as required by USERRA, and (iii) be
entitled to make-up any contributions the Participant missed as a result of his
or her military service, to the extent required by USERRA and permitted under
the Code.  However, any make-up
contributions shall not exceed the amount the Participant would have been
permitted to contribute to the Plan had the Participant remained continuously
employed by the Employer throughout the period of his or her military
service.  Any make-up contributions to
the Plan described in this Section shall be made during the period
beginning with the date of reemployment and ending on the date that occurs on
the earliest of (i) three (3) times the period of the Participant’s
military service, or (ii) five (5) years.

 

Section 16.03.  Allocation of Fiduciary Responsibilities.  To the extent permitted under ERISA, each
fiduciary under the Plan shall be responsible only for the specific duties
assigned 

 

50

 

under the Plan and shall not be
directly or indirectly responsible for the duties assigned to another
fiduciary.  Any person or a group of
persons may serve in more than one (1) fiduciary capacity with respect to
the Plan.

 

Section 16.04.  Limitation of Rights and Obligations.  Neither the establishment nor maintenance of
the Plan nor any amendment thereof, nor any act or omission under the Plan or
resulting from the operation of the Plan shall be construed:

 

(a)           as conferring upon
any Participant, beneficiary, or any other person a right or claim against the
Trust, Trustee, Employer, or Administrator, except to the extent that such
right or claim shall be specifically expressed and provided in the Plan or
provided under ERISA;

 

(b)           as creating any
responsibility or liability of the Employer for the validity or effect of the
Plan;

 

(c)           as a contract or
agreement between the Employer and any Participant or other person;

 

(d)           as being
consideration for, or an inducement or condition of, employment of any
Participant or other person, or as affecting or restricting in any manner or to
any extent whatsoever the rights or obligations of the Employer or any Participant
or other person to continue or terminate the employment relationship at any
time, except as otherwise provided under any applicable collective bargaining
agreement; or

 

(e)           as giving any
Participant the right to be retained in the service of the Employer or to
interfere with the right of the Employer to discharge any Participant or other
person at any time; provided, however, that the foregoing shall not be deemed
to modify the provisions of any collective bargaining agreements which may have
been entered into by an Employer with the bargaining representatives of any
Participant.

 

Section 16.05.  Notice.  Any notice given under the Plan shall be
sufficient if given to the Administrator, when addressed to its office, or if
given to a Participant, when addressed to the Participant at his or her address
as it appears in the records of the Administrator.

 

Section 16.06.  Right of Recovery.  If the Trustee makes any payment that
according to the terms of the Plan and the benefits provided hereunder should
not have been made, the Trustee or the Administrator may recover that incorrect
payment, whether or not it was made due to the error of the Trustee, from the
person to whom it was made, or from any other appropriate party.  If any such incorrect payment is made
directly to a Participant, the Trustee or Administrator may recover such amount
as allowed by law.

 

Section 16.07.  Legal Counsel.  The Administrator and/or its designee, may
from time to time consult with counsel, who may be counsel for the Company, and
shall be fully protected in acting upon the advice of such counsel.

 

51

 

Section 16.08.  Evidence of Action.  Any action by any Employer pursuant to any of
the provisions of the Plan shall be evidenced by resolution of its governing
body, and the Administrator shall be fully protected in acting in accordance
with such resolution so certified to it. 
All orders, requests, and instructions to the Administrator by an Employer
or by any duly authorized representative, shall be in writing and the
Administrator shall act and shall be fully protected in acting in accordance
with such orders, requests, and instructions.

 

Section 16.09.  Audit. 
If an audit of the Plan and Trust is required under ERISA for any Plan
Year, the Administrator shall engage an independent qualified public
accountant.  Such audit shall be
conducted in accordance with the requirements of ERISA Section 103.

 

Section 16.10.  Bonding.  Each fiduciary of the Plan, unless exempted
under ERISA, shall be bonded in an amount not less than ten percent (10%) of
the amounts of assets of the Plan handled by such fiduciary; provided, however,
such bond shall not be less than One Thousand Dollars ($1,000) and need not be
for more than Five Hundred Thousand Dollars ($500,000).  The expense of such bond shall be paid from
the assets of the Plan unless paid by the Company.

 

Section 16.11.  Receipt and Release.  Any payments to any Participant shall, to the
extent thereof, be in full satisfaction of the claim of such Participant being
paid thereby and the Trustee or Administrator may condition payment thereof on
the delivery by the Participant of the duly executed receipt and release in
such form as may be determined by the Trustee or Administrator.

 

Section 16.12.  Legal Actions.  If the Administrator is made a party to any
legal action regarding the Trust or the Plan, except for a breach of fiduciary
responsibility of such person or persons, any and all costs and expenses,
including reasonable attorneys’ fees, incurred by the Administrator in
connection with such proceeding shall be paid from the assets of the Trust Fund
unless paid by the Company.

 

Section 16.13.  Reliance.  The Administrator shall not incur any
liability in acting upon any notice, request, signed letter, telegram, or other
paper or document believed by the Administrator to be genuine or to be executed
or sent by an authorized person.

 

Section 16.14.  Entire Plan.  The Plan document and the documents
incorporated by reference herein shall constitute the only legally governing
documents for the Plan.  No statement by
the Company, Trustees, Employer,
or Administrator shall be used in any claim unless in writing, signed by the
party against whom the claim is being made.

 

Section 16.15.  Counterparts.  The Plan may be executed in any number of
counterparts, each of which shall be deemed to be an original.  All the counterparts shall constitute but one
(1) and the same instrument and shall be sufficiently evidenced by any one
(1) counterpart.

 

52

 

ARTICLE XVII.

EGTRRA PLAN AMENDMENTS

 

Section 17.01.  Preamble.  This Article is intended to reflect
certain provisions of the Economic Growth and Tax Relief Reconciliation Act of
2001 (“EGTRRA”).  This Article is
intended as good faith compliance with the requirements of EGTRRA and is to be
construed in accordance with EGTRRA and guidance issued thereunder.  Except as otherwise provided, this Article shall
be effective for Plan Years beginning on and after January 1, 2002. This Article shall
supersede the provisions of the Plan to the extent those provisions are
inconsistent with the provisions of this Article.

 

Section 17.02.  Pre-Tax Contributions
Limitation.  No Participant
shall be permitted to have Pre-Tax Contributions made under this Plan, or any
other qualified plan maintained by the Employer during any taxable year, in
excess of the dollar limitation contained in Code Section 402(g) in
effect for such taxable year, except to the extent permitted under Section 17.10
and Code Section 414(v), if applicable.

 

Section 17.03.  Repeal of Multiple Use Test.  The multiple use test described in Treasury
Regulation Section 1.401(m)-2 and Section 5.06 of the Plan
shall not apply for Plan Years beginning after December 31, 2001.

 

Section 17.04.  Limitations on Contributions.  This Section shall be effective
for Plan Years beginning after December 31, 2001.  Except to the extent permitted under Section 17.10
and Code Section 414(v), if applicable, the annual addition that may be
contributed or allocated to a Participant’s Account under the Plan for any Plan
Year shall not exceed the lesser of:

 

(1)           Forty Thousand Dollars ($40,000) (as
increased by the Cost of Living Adjustment), or

 

(2)           one hundred percent (100%) of the Participant’s
compensation, as defined in Section 5.07(g), for the Plan Year.

 

The compensation limit referred to in paragraph (2) shall not
apply to any contribution for medical benefits after separation from service
(within the meaning of Code Section 401(h) or Code Section 419A(f)(2))
which is otherwise treated as an annual addition.

 

Section 17.05.  Distribution upon Severance from
Employment.  Effective for
distributions after December 31, 2001, a Participant’s Pre-Tax
Contributions, qualified nonelective contributions, qualified matching
contributions, and earnings attributable to these contributions shall be
distributed on account of the Participant’s severance from employment.  However, such a distribution shall be subject
to the other provisions of the Plan regarding distributions, other than
provisions that require a separation from service before such amounts may be
distributed.

 

53

 

Section 17.06.  Modification of Top-Heavy Rules.  This Section shall apply for purposes of
determining whether the Plan is a top-heavy plan under Code Section 416(g) for
Plan Years beginning after December 31, 2001, and whether the Plan
satisfies the minimum benefits requirements of Code Section 416(c) for
such years.  This Section amends Article XIV
of the Plan.

 

(a)           “Key Employee” means
any Employee or former Employee (including any deceased Employee) who at any
time during the Plan Year that includes the Determination Date was an officer
of a Related Company having annual compensation greater than One Hundred Thirty
Thousand Dollars ($130,000) (as adjusted under Code Section 416(i)(1) for
Plan Years beginning after December 31, 2002), a five percent (5%) owner
of a Related Company, or a one percent (1%) owner of a Related Company having
annual compensation of more than One Hundred Fifty Thousand Dollars
($150,000).  For this purpose, annual
compensation means compensation within the meaning of Code Section 415(c)(3).  The determination of who is a Key Employee
shall be made in accordance with Code Section 416(i)(1) and the
applicable regulations and other guidance of general applicability issued
thereunder.

 

(b)           This subsection (b) shall
apply for purposes of determining the amounts of Account balances of Employees
as of the Determination Date.

 

(1)           The amounts of Account balances of an
Employee as of the Determination Date shall be increased by the distributions
made with respect to the Employee under the Plan and any plan aggregated with
the Plan under Code Section 416(g)(2) during the one (1) year
period ending on the Determination Date. 
The preceding sentence shall also apply to distributions under a
terminated plan which, had it not been terminated, would have been aggregated
with the Plan under Code Section 416(g)(2)(A)(i).  In the case of a distribution made for a
reason other than separation from service, death, or disability, this provision
shall be applied by substituting “five (5) year period” for “ one (1) year
period.”

 

(2)           The Accounts of any individual who
has not performed services for a Related Company during the one (1) year
period ending on the Determination Date shall not be taken into account.

 

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

 

Section 17.07.  Direct Rollovers of Plan Distributions.  This Section shall apply to
distributions made after December 31, 2001.

 

(a)           For purposes of the
direct rollover provisions in Section 7.04 of the Plan, an Eligible
Retirement Plan shall also mean an annuity contract described in Code Section 403(b) 

 

54

 

and an eligible plan under Code
Section 457(b) which is maintained by a state, political subdivision
of a state, or any agency or instrumentality of a state or political
subdivision of a state and which agrees to separately account for amounts
transferred into such plan from this Plan. 
The definition of Eligible Retirement Plan shall also apply in the case
of a distribution to a surviving spouse, or to a spouse or former spouse who is
the alternate payee under a qualified domestic relation order, as defined in
Code Section 414(p).

 

(b)           For purposes of the
direct rollover provisions in Section 7.04 of the Plan, any amount that is
distributed on account of hardship shall not be an Eligible Rollover
Distribution and the Distributee may not elect to have any portion of such
distribution paid directly to an Eligible Retirement Plan.

 

Section 17.08.  Increase in Compensation Limit.  The annual compensation of each Participant taken
into account in determining allocations for any Plan Year beginning after December 31,
2001, shall not exceed Two Hundred Thousand Dollars ($200,000) (as increased by
the Cost of Living Adjustment for the Plan Year).  Annual compensation means compensation during
the Plan Year or such other consecutive twelve (12) month period over which
compensation is otherwise determined under the Plan (the determination
period).  The cost-of-living adjustment
in effect for a calendar year applies to annual compensation for the
determination period that begins with or within such calendar year.

 

Section 17.09.  Suspension Period Following Hardship
Withdrawal.  A Participant who
receives a distribution of elective deferrals on account of hardship on or
after January 1, 2001 but prior to July 1, 2001, shall be prohibited
from making Pre-Tax Contributions and any employee contributions under all
other plans of a Related Company until January 1, 2002.  A Participant who receives a distribution of
elective deferrals on account of hardship on or after July 1, 2001 shall
be prohibited from making Pre-Tax Contributions and any employee contributions
under all other plans of a Related Company for six (6) months after
receipt of the distribution. 
Furthermore, the limit on Pre-Tax Contributions in the taxable year
following the taxable year of a hardship distribution set forth in Section 7.09(c)(4) shall
not apply to a distribution of Pre-Tax Contributions on account of hardship
after December 31, 2000 pursuant to Internal Revenue Service Notice 2002-4.

 

Section 17.10.  Catch-Up Contributions. For
contributions on and after January 1, 2003, Employees who are eligible to
make Pre-Tax Contributions under this Plan and who have attained age fifty (50)
before the close of the Plan Year shall be eligible to make catch-up
contributions in accordance with, and subject to the limitations of, Code Section 414(v).  Such catch-up contributions shall not be
taken into account for purposes of the provisions of the Plan implementing the
required limitations of Code Sections 402(g) and 415.  The Plan shall not be treated as failing to
satisfy the provisions of the Plan implementing the requirements of Code Section 401(k)(3),
401(k)(11), 410(b), or 416, as applicable, by reason of the making of such
catch-up contributions.  There shall be
no Matching Contributions made for catch-up contributions.

 

55

 

Section 17.11.  Rollovers from Other Plans.

 

(a)           Effective January 1,
2002, the Plan shall accept direct rollovers in cash of Eligible Rollover
Distributions made after December 31, 2001, from a qualified plan
described in Code Section 401(a) or 403(a) or an annuity
contract described in Code Section 403(b), excluding after-tax employee
contributions.

 

(b)           Effective January 1,
2002, the Plan shall accept a Participant contribution in cash of an Eligible
Rollover Distribution from a qualified plan described in Code Section 401(a) or
403(a) or an annuity contract described in Code Section 403(b),
excluding after-tax employee contributions.

 

The Plan is executed this                    
day of                    ,
20                   .

 

	
   

  	
   

  	
  GREAT LAKES CHEMICAL CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Signature

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Printed Name

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Title

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Attest:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Signature

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Printed Name

  	
   

  	
   

  	
   

  	
   

  
							

 

56

 

APPENDIX A

INVESTMENT FUNDS

 

The twelve (12) funds available through the Great Lakes Savings Plan
are as follows:

 

•                  Vanguard®
Prime Money Market Fund (cash reserves fund)

 

•                  Vanguard®
Retirement Savings Trust (stable value fund)

 

•                  Vanguard®
Total Bond Market Index Fund (bond fund)

 

•                  Vanguard®
Wellesley® Income Fund (balanced fund – stocks/bonds)

 

•                  Vanguard®
WindsorTM Fund (growth and income stock fund)

 

•                  Vanguard®
500 Index Fund (growth and income stock fund)

 

•                  Vanguard®
U.S. Growth Fund (growth stock fund)

 

•                  Vanguard®
Extended Market Index Fund (growth stock fund)

 

•                  Vanguard®
Small-Cap Index Fund (aggressive growth stock fund)

 

•                  Vanguard®
ExplorerTM Fund (aggressive growth stock fund)

 

•                  Vanguard®
International Growth Fund (international stock fund)

 

•                  Great
Lakes Stock Fund (a company stock fund)

 

57Exhibit 4.8

 

AMENDMENT NUMBER ONE TO THE

GREAT LAKES SAVINGS PLAN

 

THIS AMENDMENT
NUMBER ONE is executed this                 day
of December, 2003 by Great Lakes Chemical Corporation (“Corporation”).

 

WITNESSETH:

 

WHEREAS, the
Corporation adopted the Great Lakes Savings Plan (“Plan”) effective as of May 1,
1985, which was most recently restated in its entirety effective as of January 1,
2003;

 

WHEREAS, the
Corporation reserved the right to amend the Plan pursuant to Section 12.01
of the Plan; and

 

WHEREAS, the
Corporation now desires to amend the Plan to comply with (1) Final and
Temporary Treasury Regulations under Code Section 401(a)(9) issued on
April 17, 2002, (2) the final loan rules under Code Section 72
(p), and (3) the final claims regulations under ERISA Section 513, as
hereinafter set forth.  The provisions of
this Amendment Number One shall take precedence over any inconsistent
provisions of this Plan.

 

NOW,
THEREFORE, the Plan is hereby amended effective as of the dates indicated
herein, as follows:

 

1.             Effective
as of February 28, 2003, Section 2.01(ggg)
of the Plan, regarding the definition of Lime-O-Sol, is hereby amended due to a
scriveners error to be and read as follows:

 

“(ggg)    “Lime-O-Sol”
means a former employee of Lime-O-Sol Company, who as a result of the stock
acquisition of Lime-O-Sol Company by BioLab, Inc.
on February 28, 2003, continued as an Employee of Lime-O-Sol Company, a
subsidiary of BioLab, Inc.”

 

2.             Effective
as of January 1, 2003, Sections 7.01 and 7.03 of the Plan, regarding
timing and form of distribution, death benefits and beneficiaries, are hereby
amended to be and read as follows:

 

 

“Section 7.01.  Retirement and Termination Benefits.

 

(a)           If
a Participant Retires, or Terminates Employment before he retires for a reason
other than death, he is entitled to receive his Vested Accounts as provided in
this Section.

 

(b)           If the present value of the Vested Accounts of a
Participant does not exceed Five Thousand Dollars ($5,000) at the time of
distribution, his Accounts shall be paid to him in a lump sum as soon as
administratively feasible on or after the date the Participant Retires or
Terminates Employment, as applicable. 
The determination of whether a distribution may be made pursuant to this
subsection shall be made when a Participant is first eligible to receive a
distribution under the Plan, and, if applicable, at such later date or dates as
determined by the Administrator in its sole discretion.

 

(c)           If
the present value of the Vested Accounts of a Participant exceeds Five Thousand
Dollars ($5,000) at the time of distribution, his Vested Accounts shall be
distributed, at the time elected by the Participant on the Applicable Form, in
a lump sum payment, subject to the requirements under Section 7.02 and Section 7.08.  An election of no benefit distribution is
deemed to be made by a Participant if the Participant receives a distribution
packet and does not make an affirmative distribution election, subject to Section 7.08.  Distributions payable as of any date shall be
made on or as soon as administratively feasible after that date.  The determination of whether a distribution
may be made pursuant to this subsection shall be made when a Participant
is first eligible to receive a distribution under the Plan, and, if applicable,
at such later date or dates as determined by the Administrator in its sole
discretion.

 

(d)           If
the distribution to a Participant under subsection (b) or (c) is
less than his entire Account, and it occurs before the Account is one hundred
percent (100%) Vested, then until the Participant incurs a five (5) year
Period of Severance, the Vested portion of the Account shall be the amount (“X”)
determined by the formula:  X=P(AB+(RxD))-(RxD), where P is the
Vested percentage at any relevant time; AB is the balance of the Account at the
relevant time; D is the amount of the distribution; and R is the ratio of the
balance of the Account at the relevant time over the balance of the Account
after the distribution.

 

Section 7.03.  Death Benefits and Beneficiaries.

 

(a)           If
a Participant dies before any benefits are received under Section 7.01 or
if a Participant dies after having received benefits under Section 7.01
but in either case with a Vested Account balance remaining, his Vested Accounts
shall be distributed to his beneficiary in a lump sum payment as soon as
administratively feasible after his death and after the Administrator
determines the appropriate benefit and is in receipt of all necessary
information to

 

2

 

process the distribution. 
Notwithstanding the preceding sentence, distribution to the designated
beneficiary will be made on or before December 31 of the calendar year
immediately following the calendar year in which the Participant died.

 

(b)           The
primary beneficiary of a married Participant shall be his spouse, unless he
designates a different primary beneficiary under subsection (c).

 

(c)           Each
Participant may designate on the Applicable Form one or more primary and
contingent beneficiaries to receive any death benefits payable under the Plan
on his death.  Each such designation may
be revoked, amended, or changed by the Participant by notice in writing on the
Applicable Form to the Administrator. 
The designation of a beneficiary other than the spouse of such
Participant shall not be effective unless:

 

(1)           the consent of the
spouse of the Participant (i) is obtained on the Applicable Form, (ii) acknowledges
the effect of the election, (iii) applies only to a specific beneficiary
designation which may not be changed without spousal consent (or the consent of
the spouse expressly permits future elections by the Participant without any
requirement of further consent by the spouse), and (iv) is witnessed by an
authorized representative of the Administrator, or by a notary public; or

 

(2)           the Participant
establishes to the satisfaction of the Administrator, in its sole discretion,
that the consent under paragraph (1) cannot be obtained because (i) the
Participant has no spouse, (ii) the spouse of the Participant cannot be
located, or (iii) of such other circumstances as the Secretary of the
Treasury by regulation may prescribe.

 

Any consent by a spouse of a Participant, or
establishment that consent of such spouse cannot be obtained, shall be
effective only with respect to such spouse.

 

(d)           In
the absence of a designation by the Participant pursuant to subsection (c),
or if all designated beneficiaries predecease the Participant, the benefits, if
any, shall be paid to the spouse of the Participant, if living at the time of
the death of the Participant, or if no such spouse is then living, to the
estate of the Participant.”

 

3.             Effective
as of January 1, 2003, Section 7.08(b) through (d) of the
Plan, regarding other distribution rules imposed by federal law, is hereby
amended to be and read as follows:

 

“(b)         To
the extent required by Code Section 401(a)(9) and the regulations
promulgated thereunder, the Participant’s entire Vested Accounts shall be
distributed not later than the Participant’s “required beginning date.”  For purposes of this Section, “required
beginning date” means April 1 of the calendar

 

3

 

year following the later of:  (i) the
calendar year in which the Participant reaches age seventy and one-half (701⁄2),
or (ii) the calendar year in which the Participant retires; provided,
however, for a Participant who is a 5% owner, as defined in Code Section 416,
“required beginning date” means April 1 of the calendar year following the
calendar year in which the Participant reaches age seventy and one-half (701⁄2),
regardless of whether he has retired.

 

(c)           For
purposes of this Section 7.08, “designated beneficiary” means the
individual who is designated as the beneficiary, as such term is defined under Section 7.03
of the Plan, and is the designated beneficiary under Section 401(a)(9) of
the Internal Revenue Code and Section 1.401(a)(9)-1, Q&A-4, of the
Treasury regulations.

 

(d)           With
respect to distributions under the Plan made for the calendar year beginning on
January 1, 2002, the Plan will apply the minimum distribution requirements
of Code Section 401(a)(9) in accordance with the regulations under
Code Section 401(a)(9) that were proposed on January 17, 2001,
notwithstanding any provision of the Plan to the contrary.  With respect to distributions under the Plan
made for calendar years beginning on or after January 1, 2003, the Plan
will apply the minimum distribution requirements of Code Section 401(a)(9) in
accordance with the Final and Temporary Treasury Regulations under Code Section 401(a)(9) issued
on April 17, 2002.  This prior
sentence shall take precedence over any inconsistent provisions of the Plan.”

 

4.             Effective
January 1, 2004, Section 8.02(e) of the Plan regarding loan
payments is hereby amended to be and read as follows:

 

“(e)         Loan repayments may be
suspended under the Plan as permitted under Code Section 414(u) and
USERRA.  If a Participant or beneficiary
has an outstanding loan(s) during the period when performing service in the
uniformed services, and loan payments are suspended during such period, (i) interest
shall accrue on the loan during such period at a rate equal to the lesser of
six percent (6%) as provided under the Soldiers and Sailor’s Civil Relief Act
Amendments of 1942 or the rate of interest determined at the inception of the
loan pursuant to Section 8.02(g), (ii) the time for repayment of such
loan(s) shall be extended for a period of time equal to the period when
performing service in the uniformed services, and if the original term of the
loan was less than the maximum term permitted under Section 8.02(c), the
time for repayment may be extended for a period of time equal to the maximum
term permitted under Section 8.02(c) plus the period when performing
service in the uniformed service, (iii) loan payments shall resume upon
the completion of such military service, and (iv) the frequency and amount
of the periodic installments following the period of such military service
shall not be less than the frequency and

 

4

 

amount of the
periodic installments required under the terms of the original loan.”

 

5.             Effective
January 1, 2004, Section 8.02(g) of the Plan regarding loan
interest rates is hereby amended to be and read as follows:

 

“(g)         Rates of
interest shall be the effective annual rate equal to the prime rate of interest
plus one percent (1%) charged by persons in the business of lending money for
loans that would be made under similar conditions as loans made under the Plan
(or such other commercially reasonable rate determined from time to time by the
Administrator in accordance with ERISA) at the time the loan application is
received by the Administrator from the Participant or beneficiary, except as
otherwise provided under Section 8.02(e).”

 

6.             Effective
January 1, 2004, Section 8.02(j) of the Plan regarding loan interest
rates is hereby amended to be and read as follows:

 

“(j)          If a Participant
defaults on a loan and the loan is not repaid (including interest accruing
thereafter), such as by an offset of his Accounts under this subsection (j),
then:

 

(i)            the loan
shall be considered outstanding,

 

(ii)           the amount
available for any subsequent loan requested by the Participant shall be reduced
by the amount of the outstanding loan, and

 

(iii)          any
subsequent loan shall be included in the Participant’s taxable income for the
year the subsequent loan is taken,

 

unless the
Participant agrees to repay the defaulted loan through payroll deductions under
a legally enforceable arrangement or adequate security is given for the
defaulted loan in addition to the Participant’s Account balance.”

 

7.             Effective
January 1, 2002, Section 10.02 of the Plan regarding claims
procedures is hereby amended to be and read as follows:

 

“Section 10.02.  Claims
Procedure.

 

(a)           Any person who believes
that he is entitled to any benefits under the Plan shall present such claim in
writing to the Administrator.  The
Administrator shall within ninety (90) days after receipt of the claim, provide
notice in writing to any claimant as to the decision on any such claim.  This determination shall be made without
regard to whether all information that is

 

5

 

needed
accompanies the claim filing.  If such
claim has been denied, in whole or in part, such notice shall set forth (i) the
specific reasons for such denial, (ii) specific reference to any pertinent
provisions of the Plan on which denial is based, (iii) a description of
any additional material or information necessary for the claimant to perfect
the claim and an explanation of why such material or information is necessary,
and (iv) an explanation of the review procedure and time limits for the
Plan, including the right to bring action under ERISA Code Section 502(a) in
specific circumstances as set forth in (e) below.  Such notice shall be written in a manner
calculated to be understood by the Participant. 
If the Administrator determines that special circumstances require an
extension of time to process any claim, the Administrator shall give the
claimant written notice of the extension within the initial ninety (90) day
period under this subsection (a). 
Any extension under the preceding sentence shall not be longer than an
additional ninety (90) days after the initial ninety (90) day period.  The extension notice shall indicate the
special circumstances requiring an extension of time and the date by which the
Plan expects to render a determination on the claim.

 

(b)           If the Administrator’s
determination to deny a claim is not acceptable to the claimant, an appeal for
benefits may be filed with the Administrator. 
Within sixty (60) days after receipt by the claimant of notification of
denial, the claimant shall have the right to present a written appeal to the
Administrator.  If such appeal is not
filed within said sixty (60) day period, the decision of the Administrator
shall be final and binding.  The claimant
or his duly authorized representative may review any Plan documents which are
pertinent to the claim and may submit issues and comments to the Administrator
in writing.  The claimant will be
provided, upon request and free of charge, reasonable access to and copies of
documents and information relevant to the claim.  When reviewing an appeal, the Administrator
will consider all comments, documents, and other information submitted by the
claimant, regardless of whether the information was submitted in the initial
determination.  The Administrator shall
act as a fiduciary in making a full and fair review of such denial.

 

(c)           If the claimant does
appeal the claim denial, a decision by the Administrator shall be made promptly
and, in any event, not later than sixty (60) days after its receipt of the
appeal, without regard to whether all information needed to make a determination
is included with the appeal.  If the
Administrator determines that special circumstances require an extension of
time to process any claim (such as through a hearing, and the Administrator’s
procedures provide for such a hearing, such a hearing may be held), the
Administrator may extend the decision, but not later than an additional sixty
(60) days after the initial sixty (60) day period following receipt of the
appeal.  The extension notice shall
indicate the special circumstances requiring an extension of time and the date
by which the Plan expects to render a determination on the claim.  If the period for reviewing the appeal is
extended because of the failure of the claimant to submit information needed to
decide the claim, the period for making the benefit determination on review will
be tolled until the date on which the claimant responds to the request for
additional information.

 

6

 

(d)           If the Administrator
denies the claimant’s appeal as to any claim, the Administrator’s decision
shall be in writing and provide adequate notice to the claimant (i) setting
forth the specific reasons for any denial, (ii) identifying the Plan
sections on which the denial is based, (iii) notifying the claimant of
entitlement to receive, upon request and free of charge, reasonable access to,
and copies of, all documents, records, and other information relevant to the
claimant’s claim for benefits, and (iv) stating the claimant’s right to
bring an action under ERISA Section 502(a) in specific circumstances,
as set forth in (e) below

 

(e)           Any such decision by
the Administrator shall be written in a manner calculated to be understood by
the claimant and shall be final and binding. 
If the claimant disagrees with the Administrator’s decision and has
followed the claims procedures in this Section 10.02, the claimant shall
have the right to bring a civil action in a court of law under ERISA Section 502(a).  Failure to follow the claim’s procedures
described in this Section 10.02 shall indicate acceptance of any benefit
denial, and the claimant shall no longer have the right to appeal or dispute
the denial.

 

(f)            All claims procedures
shall be governed by the regulations promulgated by the Secretary of Labor.”

 

8.             In all
other respects, the Plan shall be and remain unchanged.

 

This Amendment
Number One to the Great Lakes Savings Plan is executed as of the date first
above written.

 

	
   

  	
  “COMPANY”

  
	
   

  	
   

  
	
   

  	
  GREAT LAKES CHEMICAL CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

7

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