Document:

Exhibit 4.3

 

Your plan is an important legal document. This sample plan has been
prepared based on our understanding of the desired provisions. It may not fit
your situation. You should consult with your lawyer on the plan’s legal and tax
implications. Neither Principal Life Insurance Company nor its agents can be
responsible for the legal or tax aspects of the plan nor its appropriateness
for your situation. If you wish to change the provisions of this sample plan,
you may ask us to prepare new sample wording for you and your lawyer to review.

 

 

EXACT
SCIENCES CORPORATION

401(k) PLAN

 

 

401(k) Plan CL2008

Restated November 15, 2009

 

 

TABLE OF
CONTENTS

 

	
  INTRODUCTION

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE I

  	
  FORMAT AND DEFINITIONS

  	
  2

  
	
   

  	
   

  	
   

  
	
  Section 1.01—
  FORMAT

  	
  2

  
	
  Section 1.02—
  DEFINITIONS

  	
  2

  
	
   

  	
   

  	
   

  
	
  ARTICLE II

  	
  PARTICIPATION

  	
  20

  
	
   

  	
   

  	
   

  
	
  Section 2.01—
  ACTIVE PARTICIPANT

  	
  20

  
	
  Section 2.02—
  INACTIVE PARTICIPANT

  	
  20

  
	
  Section 2.03—
  CESSATION OF PARTICIPATION

  	
  21

  
	
   

  	
   

  	
   

  
	
  ARTICLE III

  	
  CONTRIBUTIONS

  	
  22

  
	
   

  	
   

  	
   

  
	
  Section 3.01—
  EMPLOYER CONTRIBUTIONS

  	
  22

  
	
  Section 3.02—
  FORFEITURES

  	
  26

  
	
  Section 3.03—
  ALLOCATION

  	
  26

  
	
  Section 3.04—
  CONTRIBUTION LIMITATION

  	
  29

  
	
  Section 3.05— EXCESS AMOUNTS

  	
  34

  
	
  Section 3.06—
  401(k) SAFE HARBOR PROVISIONS

  	
  46

  
	
  Section 3.07— PROHIBITED
  ALLOCATIONS OF QUALIFYING EMPLOYER SECURITIES

  	
  48

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV

  	
  INVESTMENT OF CONTRIBUTIONS

  	
  51

  
	
   

  	
   

  	
   

  
	
  Section 4.01— INVESTMENT AND
  TIMING OF CONTRIBUTIONS

  	
  51

  
	
  Section 4.02— INVESTMENT IN
  QUALIFYING EMPLOYER SECURITIES

  	
  52

  
	
   

  	
   

  	
   

  
	
  ARTICLE V

  	
  BENEFITS

  	
  59

  
	
   

  	
   

  	
   

  
	
  Section 5.01— RETIREMENT
  BENEFITS

  	
  59

  
	
  Section 5.02— DEATH BENEFITS

  	
  59

  
	
  Section 5.03— VESTED
  BENEFITS

  	
  59

  
	
  Section 5.04— WHEN BENEFITS
  START

  	
  59

  
	
  Section 5.05— WITHDRAWAL
  BENEFITS

  	
  60

  
	
  Section 5.06— DISTRIBUTIONS
  UNDER QUALIFIED DOMESTIC RELATIONS ORDERS

  	
  62

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI

  	
  DISTRIBUTION OF BENEFITS

  	
  64

  
	
   

  	
   

  	
   

  
	
  Section 6.01— AUTOMATIC
  FORMS OF DISTRIBUTION

  	
  64

  
	
  Section 6.02— OPTIONAL FORMS
  OF DISTRIBUTION

  	
  64

  

 

i

 

	
  Section 6.03— ELECTION
  PROCEDURES

  	
  65

  
	
  Section 6.04— NOTICE
  REQUIREMENTS

  	
  67

  
	
  Section 6.05— FORMS OF
  DISTRIBUTION FOR QUALIFYING EMPLOYER SECURITIES

  	
  67

  
	
  Section 6.06— PUT OPTION

  	
  68

  
	
  Section 6.07— RIGHT OF FIRST
  REFUSAL

  	
  70

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII

  	
  REQUIRED MINIMUM DISTRIBUTIONS

  	
  72

  
	
   

  	
   

  	
   

  
	
  Section 7.01— APPLICATION

  	
  72

  
	
  Section 7.02— DEFINITIONS

  	
  72

  
	
  Section 7.03— REQUIRED
  MINIMUM DISTRIBUTIONS

  	
  73

  
	
  Section 7.04— TRANSITION
  RULES

  	
  77

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII

  	
  TERMINATION OF THE PLAN

  	
  78

  
	
   

  	
   

  	
   

  
	
  ARTICLE IX

  	
  ADMINISTRATION OF THE PLAN

  	
  80

  
	
   

  	
   

  	
   

  
	
  Section 9.01—
  SECTION 9.01—ADMINISTRATION

  	
  80

  
	
  Section 9.02— EXPENSES

  	
  80

  
	
  Section 9.03— RECORDS

  	
  80

  
	
  Section 9.04— INFORMATION
  AVAILABLE

  	
  81

  
	
  Section 9.05— CLAIM
  PROCEDURES

  	
  81

  
	
  Section 9.06— DELEGATION OF
  AUTHORITY

  	
  85

  
	
  Section 9.07— EXERCISE OF
  DISCRETIONARY AUTHORITY

  	
  85

  
	
  Section 9.08— TRANSACTION
  PROCESSING

  	
  85

  
	
  Section 9.09— VOTING AND
  TENDER OF QUALJFYING EMPLOYER SECURITIES

  	
  86

  
	
   

  	
   

  	
   

  
	
  ARTICLE X

  	
  GENERAL PROVISIONS

  	
  88

  
	
   

  	
   

  	
   

  
	
  Section 10.01— AMENDMENTS

  	
  88

  
	
  Section 10.02— DIRECT
  ROLLOVERS

  	
  89

  
	
  Section 10.03— MERGERS AND
  DIRECT TRANSFERS

  	
  90

  
	
  Section 10.04— PROVISIONS
  RELATING TO THE INSURER AND OTHER PARTIES

  	
  91

  
	
  Section 10.05— EMPLOYMENT
  STATUS

  	
  92

  
	
  Section 10.06— RIGHTS TO
  PLAN ASSETS

  	
  92

  
	
  Section 10.07— BENEFICIARY

  	
  92

  
	
  Section 10.08— NONALIENATION
  OF BENEFITS

  	
  92

  
	
  Section 10.09— CONSTRUCTION

  	
  93

  
	
  Section 10.10— LEGAL ACTIONS

  	
  93

  
	
  Section 10.11— SMALL AMOUNTS

  	
  93

  
	
  Section 10.12— WORD USAGE

  	
  93

  
	
  Section 10.13— CHANGE IN
  SERVICE METHOD

  	
  94

  
	
  Section 10.14— MILITARY
  SERVICE

  	
  96

  
	
   

  	
   

  	
   

  
	
  ARTICLE XI 

  	
  TOP-HEAVY PLAN REQUIREMENTS

  	
  97

  

 

ii

 

	
  Section 11.01— APPLICATION

  	
  97

  
	
  Section 11.02— DEFINITIONS

  	
  97

  
	
  Section 11.03— MODIFICATION
  OF VESTING REQUIREMENTS

  	
  100

  
	
  Section 11.04— MODIFICATION
  OF CONTRIBUTIONS

  	
  100

  
	
   

  	
   

  	
   

  
	
  PLAN
  EXECUTION

  	
   

  	
   

  

 

iii

 

INTRODUCTION

 

The Primary Employer
previously established a 401(k) plan on January 1, 1998.

 

The Primary Employer is of
the opinion that the plan should be changed. It believes that the best means to
accomplish these changes is to completely restate the plan’s terms, provisions
and conditions. The restatement, effective November 15, 2009, is set forth
in this document and is substituted in lieu of the prior document with the
exception of any good faith compliance amendment and any model amendment. Such
amendment(s) shall continue to apply to this restated plan until such
provisions are integrated into the plan or such amendment(s) are
superseded by another amendment.

 

The restated plan continues
to be for the exclusive benefit of employees of the Employer. All persons
covered under the plan on November 14, 2009, shall continue to be covered
under the restated plan with no loss of benefits.

 

It is intended that the
Plan, as restated, shall consist of two components. One component of the Plan
is intended to qualify as a profit sharing plan under Code Section 401(a) that
includes a qualified cash or deferred arrangement under Code Section 401(k) under
the Internal Revenue Code of 1986, including any later amendments to the Code.
This component includes contributions that are invested in funds other than
company stock. This component of the Plan provides for participant-directed
investments and is intended to comply with ERISA Section 404(c). This
component is to be considered the non-ESOP component of the Plan. The other
component is intended to qualify as a qualified stock bonus plan under Code Section 401(a),
and as an employee stock ownership plan (ESOP) under Code Section 4975(e)(7) under
the Internal Revenue Code of 1986, including any later amendments to the Code.
This component includes contributions invested in company stock and shall be
considered the ESOP component of the Plan. The ESOP component of the Plan is
intended to primarily invest in common stock of the Employer. The underlying
Trust for both components of the Plan is intended to be exempt from taxation
under Code Section 501.

 

This plan includes the
statutory, regulatory, and guidance changes specified in the 2008 Cumulative
List of Changes in Plan Qualification Requirements (2008 Cumulative List)
contained in Internal Revenue Service Notice 2008-108 and the qualification
requirements and guidance published before the issuance of such list. The
provisions of this plan apply as of the effective date of the restatement
unless otherwise specified.

 

1

 

ARTICLE I

FORMAT AND DEFINITIONS

 

SECTION 1.01—FORMAT.

 

Words and phrases defined in
the DEFINITIONS SECTION of Article I shall have that defined meaning
when used in this Plan, unless the context clearly indicates otherwise.

 

These words and phrases have
an initial capital letter to aid in identifying them as defined terms.

 

SECTION 1.02—DEFINITIONS.

 

Account means, for a Participant,
his share of the Plan Fund. Separate accounting records are kept for those
parts of his Account that result from:

 

(a)                                  Pre-tax Elective Deferral Contributions

 

(b)                                 Roth Elective Deferral Contributions

 

(c)                                  Matching Contributions

 

(d)                                 Qualified Nonelective Contributions

 

(e)                                  Other Employer Contributions

 

(f)                                    Rollover Contributions

 

(g)                                 ESOP Discretionary Contributions

 

(h)                                 Cash dividends paid on shares of Qualifying Employer
Securities credited to the account maintained to reflect Contributions (with a
separate dividend source account for each such type of contribution) that are
initially reinvested in Qualifying Employer Securities at the election of the
Participant.

 

A Participant’s Account
shall be reduced by any distribution of his Vested Account and by any
Forfeitures. A Participant’s Account shall participate in the earnings
credited, expenses charged, and any appreciation or depreciation of the
Investment Fund. His Account is subject to any minimum guarantees applicable
under the Annuity Contract or other investment arrangement and to any expenses
associated therewith.

 

Accrual Computation Period means a consecutive 12-month
period ending on the last day of each Plan Year, including corresponding
consecutive 12-month periods before January 1, 1998.

 

ACP Test  means the
nondiscrimination test described in Code Section 401(m)(2) as
provided for in subparagraph (d) of the EXCESS AMOUNTS SECTION of Article III.

 

2

 

ACP Test Safe Harbor  means the
method described in subparagraph (c) of the 401(k) SAFE HARBOR
PROVISIONS SECTION of Article III for satisfying the ACP Test with
respect to Matching Contributions.

 

Active Participant  means an
Eligible Employee who is actively participating in the Plan according to the
provisions in the ACTIVE PARTICIPANT SECTION of Article II.

 

ADP Test  means the
nondiscrimination test described in Code Section 401(k)(3) as
provided for in subparagraph (c) of the EXCESS AMOUNTS SECTION of Article III.

 

ADP Test Safe Harbor  means the
method described in subparagraph (b) of the 401(k) SAFE HARBOR
PROVISIONS SECTION of Article III for satisfying the ADP Test.

 

Affiliated Service Group  means any group
of corporations, partnerships or other organizations of which the Employer is a
part and which is affiliated within the meaning of Code Section 414(m) and
the regulations thereunder. Such a group includes at least two organizations
one of which is either a service organization (that is, an organization the
principal business of which is performing services), or an organization the
principal business of which is performing management functions on a regular and
continuing basis. Such service is of a type historically performed by
employees. In the case of a management organization, the Affiliated Service
Group shall include organizations related, within the meaning of Code Section 144(a)(3),
to either the management organization or the organization for which it performs
management functions. The term Controlled Group, as it is used in this Plan,
shall include the term Affiliated Service Group.

 

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

 

Annual Compensation  means, for a
Plan Year, the Employee’s Compensation for the Compensation Year ending with or
within the consecutive 12-month period ending on the last day of the Plan Year.

 

Annuity Contract  means the
annuity contract or contracts into which the Trustee or the Primary Employer
enters with the Insurer for guaranteed benefits, for the investment of
Contributions in separate accounts, and for the payment of benefits under this
Plan.

 

Annuity Starting Date  means, for a
Participant, the first day of the first period for which an amount is payable
as an annuity or any other form.

 

Beneficiary  means the
person or persons named by a Participant to receive any benefits under the Plan
when the Participant dies. See the BENEFICIARY SECTION of Article X.

 

Catch-up Contributions  means Elective
Deferral Contributions made to the Plan that are in excess of an otherwise
applicable Plan limit and that are made by Participants who 

 

3

 

are age 50 or older by the
end of the taxable year. An otherwise applicable Plan limit is a limit in the
Plan that applies to Elective Deferral Contributions without regard to Catch-up
Contributions, such as the limits on the Maximum Annual Additions, as defined
in the CONTRIBUTION LIMITATION SECTION of Article III, the dollar
limitation on Elective Deferral Contributions under Code Section 402(g) (not
counting Catch-up Contributions), and the limit imposed by the ADP Test.

 

Catch-up
Contributions are not subject to the limits on the Maximum Annual
Additions, as defined in the CONTRIBUTION LIMITATION SECTION of Article III,
are not counted in the ADP Test, and are not counted in determining the minimum
allocation under Code Section 416 (but Catch-up Contributions made in
prior years are counted in determining whether the Plan is top-heavy).

 

Claimant means any
person who makes a claim for benefits under this Plan. See the CLAIM PROCEDURES
SECTION of Article IX.

 

Code means the
Internal Revenue Code of 1986, as amended.

 

Compensation means, except
for purposes of the CONTRIBUTION LIMITATION SECTION of Article III
and Article XI, the total earnings, except as modified in this definition,
from the Employer during any specified period.

 

“Earnings”
in this definition means wages within the meaning of Code Section 3401(a) for
the purposes of income tax withholding at the source but determined without
regard to any rules that limit the remuneration included in wages based on
the nature or location of the employment or the services performed (such as the
exception for agricultural labor in Code Section 3401(a)(2)).

 

For any Self-employed
Individual, Compensation means Earned Income.

 

Except as provided herein,
Compensation for a specified period is the Compensation actually paid or made
available (or if earlier, includible in gross income) during such period.

 

For Plan Years beginning on
or after July 1, 2007, Compensation for a Plan Year shall also include
Compensation paid by the later of 2 1/2 months after an Employee’s Severance
from Employment with the Employer maintaining the Plan or the end of the Plan
Year that includes the date of the Employee’s Severance from Employment with
the Employer maintaining the Plan, if the payment is regular Compensation for
services during the Employee’s regular working hours, or Compensation for
services outside the Employee’s regular working hours (such as overtime or
shift differential), commissions, bonuses, or other similar payments, and,
absent a Severance from Employment, the payments would have been paid to the Employee
while the Employee continued in employment with the Employer.

 

Any payments not described
above shall not be considered Compensation if paid after Severance from
Employment, even if they are paid by the later of 2 1/2 months after the date
of Severance from Employment or the end of the Plan Year that includes the date
of 

 

4

 

Severance from Employment,
except, payments to an individual who does not currently perform services for
the Employer by reason of qualified military service (as that term is used in
Code Section 414(u)(1)) to the extent these payments do not exceed the
amounts the individual would have received if the individual had continued to
perform services for the Employer rather than entering qualified military
service.

 

Back pay, within the meaning
of section 1.415(c)-2(g)(8) of the regulations, shall be treated as
Compensation for the Plan Year to which the back pay relates to the extent the
back pay represents wages and compensation that would otherwise be included in
this definition.

 

Compensation paid or made
available during a specified period shall include amounts that would otherwise
be included in Compensation but for an election under Code Section 125(a),
132(f)(4), 402(e)(3), 402(h)(1)(B), 402(k), or 457(b). Compensation shall also
include employee contributions “picked up” by a governmental entity and,
pursuant to Code Section 414(h)(2), treated as Employer contributions.

 

Compensation shall exclude
reimbursements or other expense allowances, fringe benefits (cash and noncash),
moving expenses, deferred compensation (other than elective contributions), and
welfare benefits.

 

For purposes of the EXCESS
AMOUNTS SECTION of Article III, the Employer may elect to use an
alternative nondiscriminatory definition of Compensation in accordance with the
regulations under Code Section 414(s).

 

For Plan Years beginning on
or after January 1, 2002, the annual Compensation of each Participant
taken into account in determining contributions and allocations for any
determination period (the period over which Compensation is determined) shall
not exceed $200,000, as adjusted for cost-of-living increases in accordance
with Code Section 401(a)(17)(B). The cost-of-living adjustment in effect
for a calendar year applies to any determination period beginning with or
within such calendar year.

 

If a determination period
consists of fewer than 12 months, the annual compensation limit is an amount
equal to the otherwise applicable annual compensation limit multiplied by a
fraction. The numerator of the fraction is the number of months in the short
determination period, and the denominator of the fraction is 12.

 

If Compensation for any
prior determination period is taken into account in determining a Participant’s
contributions or allocations for the current Plan Year, the Compensation for
such prior determination period is subject to the applicable annual
compensation limit in effect for that determination period. For this purpose,
in determining contributions and allocations in Plan Years beginning on or
after January 1, 2002, the annual compensation limit in effect for
determination periods beginning before that date is $200,000.

 

Compensation
means, for a Leased Employee, Compensation for the services the Leased
Employee performs for the Employer, determined in the same manner as the
Compensation of Employees who are not Leased Employees, regardless of whether
such Compensation is received directly from the Employer or from the leasing
organization.

 

5

 

Compensation Year means the consecutive
12-month period ending on the last day of each Plan Year, including
corresponding periods before January 1, 1998.

 

Contributions  means Employer
Contributions and Rollover Contributions as set out in Article III, unless
the context clearly indicates only specific contributions are meant.

 

Controlled Group means any group of
corporations, trades, or businesses of which the Employer is a part that is
under common control. A Controlled Group includes any group of corporations,
trades, or businesses, whether or not incorporated, which is either a
parent-subsidiary group, a brother-sister group, or a combined group within the
meaning of Code Section 414(b), Code Section 414(c) and the
regulations thereunder and, for purposes of determining contribution
limitations under the CONTRIBUTION LIMITATION SECTION of Article III,
as modified by Code Section 415(h). The term Controlled Group, as it is
used in this Plan, shall include the term Affiliated Service Group and any
other employer required to be aggregated with the Employer under Code Section 414(o) and
the regulations thereunder.

 

Designated Beneficiary means the individual who is
designated by the Participant (or the Participant’s surviving spouse) as the
Beneficiary of the Participant’s interest under the Plan and who is the
designated beneficiary under Code Section 401(a)(9) and section
1.401(a)(9)-4 of the regulations.

 

Direct Rollover means a payment by the Plan
to the Eligible Retirement Plan specified by the Distributee.

 

Discretionary Contributions means discretionary
contributions made by the Employer to fund this Plan. See the EMPLOYER
CONTRIBUTIONS SECTION of Article III.

 

Distributee means 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.

 

Early Retirement Age means age 55.

 

Early Retirement Date means the first day of any
month before a Participant’s Normal Retirement Date that the Participant
selects for the start of his retirement benefits. This day shall be on or after
the date he has a Severance from Employment and reaches Early Retirement Age.
If a Participant has a Severance from Employment before satisfying any age
requirement for Early Retirement Age, the Participant shall be entitled to
elect an early retirement benefit upon satisfying such age requirement.

 

Earned Income means, for a Self-employed
Individual, net earnings from self-employment in the trade or business for
which this Plan is established if such Self-employed Individual’s personal
services are a material income producing factor for that trade or business. Net
earnings shall be determined without regard to items not included in gross
income and the deductions properly allocable to or chargeable against such 

 

6

 

items. Net earnings shall be
reduced for the employer contributions to the employer’s qualified retirement
plan(s) to the extent deductible under Code Section 404.

 

Net earnings shall be
determined with regard to the deduction allowed to the employer by Code Section 164(f) for
taxable years beginning after December 31, 1989.

 

Elective Deferral Contributions means
contributions made by the Employer in accordance with elective deferral
agreements between Eligible Employees and the Employer.

 

Elective deferral agreements
shall be made, changed, or terminated according to the provisions of the
EMPLOYER CONTRIBUTIONS SECTION of Article III.

 

Elective Deferral
Contributions shall be 100% vested and subject to the distribution restrictions
of Code Section 401(k) when made. See the WHEN BENEFITS START SECTION of
Article V.

 

Elective
Deferral Contributions means Pre-tax Elective Deferral Contributions
and Roth Elective Deferral Contributions, unless the context clearly indicates
only one is meant.

 

Eligible Employee means
any Employee of the Employer excluding the following:

 

An Employee considered by
the Employer to be an independent contractor, or the employee of an independent
contractor, who is later determined by the Internal Revenue Service to be an
Employee.

 

However, to the extent an
Employee becomes an Employee as a result of a Code Section 410(b)(6)(C) transaction,
that Employee shall not be an Eligible Employee during the period beginning on
the date of the transaction and ending on the last day of the first Plan Year
beginning after the date of the transaction. This period is called the
transition period. The transition period may end earlier if there is a
significant change in the coverage under the Plan or if the Employer chooses to
cover all similarly situated Employees as of an earlier date. A Code Section 410(b)(6)(C) transaction
is an asset or stock acquisition, merger, or similar transaction involving a
change in the employer of the employees of a trade or business.

 

Eligible
Retirement Plan means 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, an
individual retirement account described in Code Section 408(a), an
individual retirement annuity described in Code Section 408(b), for
taxable years beginning on or after January 1, 2008, an individual
retirement plan described in Code Section 408A(b) subject to any
limitations described in Code Section 408A(c), an annuity plan described
in Code Section 403(a), an annuity contract described in Code Section 403(b),
or a qualified plan described in Code Section 401(a), that accepts the
Distributee’s Eligible Rollover Distribution. The definition of Eligible
Retirement Plan shall also apply in the case of a distribution to a surviving 

 

7

 

spouse, or to a spouse or
former spouse who is the Alternate Payee under a qualified domestic relations
order, as defined in Code Section 414(p).

 

For taxable years beginning
on or after January 1, 2006, if any portion of an Eligible Rollover
Distribution is attributable to payments or distributions from a designated
Roth account, an Eligible Retirement Plan with respect to such portion shall
include only (i) another designated Roth account of the individual from
whose Account the payments or distributions were made under an annuity plan
described in Code Section 403(a) or a qualified plan described in
Code Section 401(a); (ii) another designated Roth account of such
individual under an annuity contract described in Code Section 403(b); or (iii) a
Roth IRA described in Code Section 408A of such individual.

 

Eligible
Rollover Distribution means any distribution of all or any portion
of the balance to the credit of the Distributee, except that an Eligible
Rollover Distribution does not include: (i) any distribution that is one
of a series of substantially equal periodic payments (not less frequently than
annually) made for the life (or life expectancy) of the Distributee or the
joint lives (or joint life expectancies) of the Distributee and the Distributee’s
Designated Beneficiary, or for a specified period of ten years or more; (ii) any
distribution to the extent such distribution is required under Code Section 401(a)(9);
(iii) any hardship distribution; (iv) the portion of any other
distribution(s) that is not includible in gross income (determined without
regard to the exclusion for net unrealized appreciation with respect to
employer securities); and (v) any other distribution(s) that is
reasonably expected to total less than $200 during a year.

 

A portion of a distribution
shall not fail to be an Eligible Rollover Distribution merely because the
portion consists of after-tax employee contributions that are not includible in
gross income. However, such portion may be transferred only to (i) an
individual retirement account or individual retirement annuity described in
Code Section 408(a) or (b); (ii) for taxable years beginning on
or after January 1, 2007, a qualified plan (defined contribution or
defined benefit) or an annuity contract described in Code Section 403(b) that
agrees to separately account for amounts so transferred, including separately
accounting for the portion of such distribution which is includible in gross
income and the portion of such distribution which is not so includible; or (iii) for
taxable years beginning on or after January 1, 2008, an individual
retirement plan described in Code Section 408A(b) subject to any
limitations in Code Section 408A(c) that agrees to separately account
for amounts so transferred, including separately accounting for the portion of
such distribution which is includible in gross income and the portion of such
distribution which is not so includible.

 

A portion of a distribution
shall not fail to be an Eligible Rollover Distribution merely because the
portion consists of the portion of a designated Roth account that is not
includible in a Participant’s gross income. However, for taxable years
beginning on or after January 1, 2006, such portion may be transferred
only to a Roth IRA described in Code Section 408A or to a designated Roth
account under another plan that agrees to separately account for amounts so
transferred, including separately accounting for the portion of such
distribution which is includible in gross income and the portion of such
distribution which is not so includible.

 

8

 

If the distribution includes
any portion of a designated Roth account, in determining if (v) above
applies: (i) any portion of the distribution from the designated Roth
account shall not be treated as an Eligible Rollover Distribution if it is
reasonably expected to total less than $200 during a year and (ii) the
balance of the distribution, if any, shall not be treated as an Eligible
Rollover Distribution if it is reasonably expected to total less than $200
during a year. In addition, for taxable years beginning on or after January 1,
2006, a designated Roth account and all other accounts under the Plan shall be
treated as accounts held under two separate plans and shall not be combined in
determining a mandatory distribution of an Eligible Rollover Distribution
greater than $1,000 in the DIRECT ROLLOVERS SECTION of Article X.

 

Employee
means an individual who is employed by the Employer or any other
employer required to be aggregated with the Employer under Code Sections
414(b), (c), (m), or (o). A Controlled Group member is required to be
aggregated with the Employer.

 

The term Employee shall
include any Self-employed Individual treated as an employee of any employer
described in the preceding paragraph as provided in Code Section 401(c)(1).
The term Employee shall also include any Leased Employee deemed to be an
employee of any employer described in the preceding paragraph as provided in
Code Section 414(n) or (o).

 

Employer
means, except for purposes of the CONTRIBUTION LIMITATION SECTION of
Article III, the Primary Employer. This will also include any successor
corporation or firm of the Employer which shall, by written agreement, assume
the obligations of this Plan or any Predecessor Employer that maintained this
Plan.

 

Employer
Contributions means

 

	
  Elective

  	
  Deferral

  	
  Contributions

  
	
  Matching

  	
   

  	
  Contributions

  
	
  Qualified

  	
  Nonelective

  	
  Contributions

  
	
  Discretionary

  	
   

  	
  Contributions

  
	
  ESOP Discretionary
  Contributions

  	
   

  	
   

  

 

as set out in Article III
and contributions made by the Employer to fund this Plan in accordance with the
provisions of the MODIFICATION OF CONTRIBUTIONS SECTION of Article XI,
unless the context clearly indicates only specific contributions are meant.

 

Employment Commencement Date means the date an Employee
first performs an Hour of Service.

 

Entry Date  means the date
an Employee first enters the Plan as an Active Participant. See the ACTIVE
PARTICIPANT SECTION of Article II.

 

ERISA  means the
Employee Retirement Income Security Act of 1974, as amended.

 

9

 

ESOP Discretionary Contributions  means Contributions contributed by the Employer or an Adopting Employer
in the form of Qualifying Employer Securities or in cash designated by the Employer
to be invested in Qualifying Employer Securities or designated to repay any
outstanding Exempt Loan. See the EMPLOYER CONTRIBUTIONS SECTION of Article III.

 

Exempt Loan means a loan or other
extension of credit to the Plan to enable the Plan to acquire shares of
Qualifying Employer Securities, or to refinance a prior Exempt Loan.

 

Forfeiture means the part, if any, of a
Participant’s Account that is forfeited. See the FORFEITURES SECTION of Article III.

 

Highly Compensated Employee means any Employee who:

 

(a)                                  was a 5-percent owner at any time during the year or the
preceding year, or

 

(b)                                 for the preceding year had compensation from the Employer in
excess of $80,000 and, if the Employer so elects, was in the top-paid group for
the preceding year. The $80,000 amount is adjusted at the same time and in the
same manner as under Code Section 415(d), except that the base period is
the calendar quarter ending September 30, 1996.

 

For this purpose the
applicable year of the plan for which a determination is being made is called a
determination year and the preceding 12-month period is called a look-back
year. If the Employer makes a calendar year data election, the look-back year
shall be the calendar year beginning with or within the look-back year. The Plan
may not use such election to determine whether Employees are Highly Compensated
Employees on account of being a 5-percent owner.

 

In determining who is a
Highly Compensated Employee, the Employer makes a top-paid group election. The
effect of this election is that an Employee (who is not a 5-percent owner at
any time during the determination year or the look-back year) with compensation
in excess of $80,000 (as adjusted) for the look-back year is a Highly
Compensated Employee only if the Employee was in the top-paid group for the
look-back year. In determining who is a Highly Compensated Employee, the
Employer does not make a calendar year data election.

 

Calendar year data elections
and top-paid group elections, once made, apply for all subsequent years unless
changed by the Employer. If the Employer makes one election, the Employer is
not required to make the other. If both elections are made, the look-back year
in determining the top-paid group must be the calendar year beginning with or
within the look-back year. These elections must apply consistently to the
determination years of all plans maintained by the Employer which reference the
highly compensated employee definition in Code Section 414(q), except as
provided in Internal Revenue Service Notice 97-45 (or superseding guidance).

 

The determination of who is
a highly compensated former Employee is based on the rules applicable to
determining Highly Compensated Employee status as in effect for that

 

10

 

determination year, in
accordance with section 1.414(q)-1T, A-4 of the temporary Income Tax
Regulations and Internal Revenue Service Notice 97-45.

 

The determination of who is
a Highly Compensated Employee, including the determinations of the number and identity
of Employees in the top-paid group, the compensation that is considered, and
the identity of the 5-percent owners, shall be made in accordance with Code Section 414(q) and
the regulations thereunder.

 

Hour of Service means, for the elapsed time
method of crediting service in this Plan, each hour for which an Employee is
paid, or entitled to payment, for performing duties for the Employer. Hour of Service means, for the hours method of crediting
service in this Plan, the following:

 

(a)                                  Each hour for which an Employee is paid, or entitled to
payment, for performing duties for the Employer during the applicable
computation period.

 

(b)                                 Each hour for which an Employee is paid, or entitled to
payment, by the Employer on account of a period of time in 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. Notwithstanding the preceding
provisions of this subparagraph (b), no credit will be given to the Employee:

 

(1)                                  for more than
501 Hours of Service under this subparagraph (b) on account of any single
continuous period in which the Employee performs no duties (whether or not such
period occurs in a single computation period); or

 

(2)                                  for an Hour of
Service for which the Employee is directly or indirectly paid, or entitled to
payment, on account of a period in which no duties are performed if such
payment is made or due under a plan maintained solely for the purpose of
complying with applicable worker’s or workmen’s compensation, or unemployment
compensation, or disability insurance laws; or

 

(3)                                  for an Hour of
Service for a payment which solely reimburses the Employee for medical or
medically related expenses incurred by him.

 

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

 

(c)                                  Each hour for which back pay, irrespective of mitigation of
damages, is either awarded or agreed to by the Employer. The same Hours of
Service shall not be 

 

11

 

credited
both under subparagraph (a) or subparagraph (b) above (as the case
may be) and under this subparagraph (c). Crediting of Hours of Service for back
pay awarded or agreed to with respect to periods described in subparagraph (b) above
will be subject to the limitations set forth in that subparagraph.

 

The crediting of Hours of
Service above shall be applied under the rules of paragraphs (b) and (c) of
the Department of Labor Regulation 2530.200b-2 (including any interpretations
or opinions implementing such rules); which rules, by this reference, are
specifically incorporated in full within this Plan. The reference to paragraph (b) applies
to the special rule for determining Hours of Service for reasons other
than the performance of duties such as payments calculated (or not calculated)
on the basis of units of time and the rule against double credit. The
reference to paragraph (c) applies to the crediting of Hours of Service to
computation periods.

 

Hours of Service shall be
credited for employment with any other employer required to be aggregated with
the Employer under Code Sections 414(b), (c), (m), or (o) and the
regulations thereunder for purposes of eligibility and vesting. Hours of
Service shall also be credited for any individual who is considered an employee
for purposes of this Plan pursuant to Code Section 414(n) or (o) and
the regulations thereunder.

 

Solely for purposes of
determining whether a one-year break in service has occurred for eligibility or
vesting purposes, during a Parental Absence an Employee shall be credited with
the Hours of Service which would otherwise have been credited to the Employee
but for such absence, or in any case in which such hours cannot be determined,
eight Hours of Service per day of such absence. The Hours of Service credited
under this paragraph shall be credited in the computation period in which the
absence begins if the crediting is necessary to prevent a break in service in
that period; or in all other cases, in the following computation period.

 

Inactive Participant means a former Active
Participant who has an Account. See the INACTIVE PARTICIPANT SECTION of Article II.

 

Insurer means Principal Life
Insurance Company or the insurance company or companies named by (i) the
Primary Employer or (ii) the Trustee in its discretion or as directed
under the Trust Agreement.

 

Investment Fund means the total of Plan
assets, excluding any Unallocated Reserve. All or a portion of these assets may
be held under, or invested pursuant to, the terms of a Trust Agreement.

 

The Investment Fund shall be
valued at current fair market value as of the Valuation Date. The valuation
shall take into consideration investment earnings credited, expenses charged,
payments made, and changes in the values of the assets held in the Investment
Fund.

 

The Investment Fund shall be
allocated at all times to Participants, except as otherwise expressly provided
in the Plan. The Account of a Participant shall be credited with its share of
the gains and losses of the Investment Fund. That part of a Participant’s
Account 

 

12

 

invested in a funding
arrangement that establishes one or more accounts or investment vehicles for
such Participant thereunder shall be credited with the gain or loss from such
accounts or investment vehicles. The part of a Participant’s Account that is
invested in other funding arrangements shall be credited with a proportionate
share of the gain or loss of such investments. The share shall be determined by
multiplying the gain or loss of the investment by the ratio of the part of the
Participant’s Account invested in such funding arrangement to the total of the
Investment Fund invested in such funding arrangement.

 

Investment Manager means any fiduciary (other
than a trustee or Named Fiduciary)

 

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

 

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

 

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

 

Late Retirement Date means the first day of any
month that is after a Participant’s Normal Retirement Date and on which
retirement benefits begin. If a Participant continues to work for the Employer
after his Normal Retirement Date, his Late Retirement Date shall be the
earliest first day of the month on or after the date he has a Severance from
Employment. An earlier Retirement Date may apply if the Participant so elects.
A later Retirement Date may apply if the Participant so elects. See the WHEN
BENEFITS START SECTION of Article V.

 

Leased Employee means any person (other than
an employee of the recipient) who, pursuant to an agreement between the
recipient and any other person (“leasing organization”), has performed services
for the recipient (or for the recipient and related persons determined in
accordance with Code Section 414(n)(6)) on a substantially full time basis
for a period of at least one year, and such services are performed under
primary direction or control by the recipient. Contributions or benefits
provided by the leasing organization to a Leased Employee, which are
attributable to service performed for the recipient employer, shall be treated
as provided by the recipient employer.

 

A Leased Employee shall not
be considered an employee of the recipient if:

 

(a)                                  such employee is covered by a money purchase pension plan
providing (i) a nonintegrated employer contribution rate of at least 10
percent of compensation, as defined in Code Section 415(c)(3), (ii) immediate
participation, and (iii) full and immediate vesting, and

 

13

 

(b)                                 Leased Employees do not constitute more than 20 percent of
the recipient’s nonhighly compensated work force.

 

Matching Contributions means contributions made by
the Employer to fund this Plan that are contingent on a Participant’s Elective
Deferral Contributions. See the EMPLOYER CONTRIBUTIONS SECTION of Article III.

 

Named Fiduciary means the person or persons
who have authority to control and manage the operation and administration of
the Plan.

 

The Named Fiduciaries are
the Employer, Plan Administrator, Trustee and Investment Manager.

 

Nonhighly Compensated Employee means an
Employee of the Employer who is not a Highly Compensated Employee.

 

Normal Retirement Age means the age at which the
Participant’s normal retirement benefit becomes nonforfeitable if he is an
Employee. A Participant’s Normal Retirement Age is 65.

 

Normal Retirement Date means the earliest first day
of the month on or after the date the Participant reaches his Normal Retirement
Age. Unless otherwise provided in this Plan, a Participant’s retirement
benefits shall begin on his Normal Retirement Date if he has had a Severance
from Employment on such date. Even if the Participant is an Employee on his
Normal Retirement Date, he may choose to have his retirement benefit begin on
such date.

 

Parental Absence means an Employee’s absence
from work:

 

(a)                                  by reason of pregnancy of the Employee,

 

(b)                                 by reason of birth of a child of the Employee,

 

(c)                                  by reason of the placement of a child with the Employee in
connection with adoption of such child by such Employee, or

 

(d)                                 for purposes of caring for such child for a period beginning
immediately following such birth or placement.

 

Participant means either an Active
Participant or an Inactive Participant.

 

Period of Military Duty means, for an Employee

 

(a)                                  who served as a member of the armed forces of the United
States, and

 

(b)                                 who was reemployed by the Employer at a time when the
Employee had a right to reemployment in accordance with seniority rights as
protected under Chapter 43 of Title 38 of the U.S. Code,

 

14

 

the period of time from the
date the Employee was first absent from active work for the Employer because of
such military duty to the date the Employee was reemployed.

 

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

 

Period of Severance means a period of time
beginning on an Employee’s Severance Date and ending on the date he again
performs an Hour of Service.

 

A
one-year Period of Severance means a Period of Severance
of 12 consecutive months.

 

Solely for purposes of
determining whether a one-year Period of Severance has occurred for eligibility
or vesting purposes, the consecutive 12-month period beginning on the first
anniversary of the first date of a Parental Absence shall not be a one-year
Period of Severance.

 

Plan means the 401(k) plan of the Employer
set forth in this document, including any later amendments to it.

 

Plan Administrator means the person or persons
who administer the Plan. The Plan Administrator is the Employer.

 

Plan Fund means the total of the
Investment Fund and any Unallocated Reserve. The Investment Fund shall be valued
as stated in its definition. The guaranteed benefit policy portion of any
Annuity Contract shall be determined in accordance with the terms of the
Annuity Contract and, to the extent that such Annuity Contract allocates
contract values to Participants, allocated to Participants in accordance with
its terms. The total value of all amounts held under the Plan Fund shall equal
the value of the aggregate Participants’ Accounts under the Plan.

 

Plan Year means a period beginning on
a Yearly Date and ending on the day before the next Yearly Date.

 

Predecessor Employer means, except for purposes
of the CONTRIBUTION LIMITATION SECTION of Article III, a firm of
which the Employer was once a part (e.g., due to a spinoff or change of
corporate status) or a firm absorbed by the Employer because of a merger or
acquisition (stock or asset, including a division or an operation of such
company).

 

Pre-tax Elective Deferral Contributions means a
Participant’s Elective Deferral Contributions that are not includible in the
Participant’s gross income at the time deferred.

 

Primary Beneficiary means an individual who is
named as a Beneficiary under the Plan and has an unconditional right to all or
a portion of the Participant’s Account balance under the Plan upon the death of
the Participant.

 

15

 

Primary Employer means Exact Sciences
Corporation.

 

Qualified Matching Contributions means Matching
Contributions that are 100% vested when made to the Plan and that are
distributable only in accordance with the distribution provisions (other than
for hardships) applicable to Elective Deferral Contributions. See the EMPLOYER
CONTRIBUTIONS SECTION of Article III and the WHEN BENEFITS START SECTION of
Article V.

 

Qualified Nonelective Contributions means
contributions made by the Employer to fund this Plan (other than Elective
Deferral Contributions and Qualified Matching Contributions) that are 100%
vested when made to the Plan and that are distributable only in accordance with
the distribution provisions (other than for hardships) applicable to Elective
Deferral Contributions. See the EMPLOYER CONTRIBUTIONS SECTION of Article III
and the WHEN BENEFITS START SECTION of Article V.

 

Qualified Reservist Distribution means any
distribution to an individual if: (i) such distribution is from an
individual retirement plan, or from amounts attributable to employer
contributions made pursuant to elective deferrals described in Code Section 402(g)(3)(A) or
(C) or Code Section 501(c)(18)(D)(iii); (ii) such individual was
(by reason of being a member of a reserve component (as defined in Section 101
of Title 37 of the U.S. Code)) ordered or called to active duty after September 11,
2001 for a period in excess of 179 days or for an indefinite period; and (iii) such
distribution is made during the period beginning on the date of such order or
call and ending at the close of the active duty period.

 

Qualifying Employer Securities means any
security which is issued by the Employer or any Controlled Group member and
which meets the requirements of Code Section 409(0 and ERISA Section 407(d)(5).
This shall also include any securities that satisfied the requirements of the
definition when these securities were assigned to the Plan.

 

Qualifying Employer Securities Fund means that part
of the assets of the Trust Fund that are designated to be held primarily or
exclusively in Qualifying Employer Securities for the purpose of providing
benefits for Participants. Such fund shall be the employee stock ownership plan
(ESOP) component of the Plan.

 

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

 

Reentry Date means the date a former
Active Participant reenters the Plan. See the ACTIVE PARTICIPANT SECTION of
Article II.

 

Retirement Date means the date a retirement
benefit will begin and is a Participant’s Early, Normal, or Late Retirement
Date, as the case may be.

 

Rollover Contributions means the Rollover
Contributions which are made by an Eligible Employee or an Inactive Participant
according to the provisions of the ROLLOVER CONTRIBUTIONS SECTION of Article III.

 

16

 

Roth Elective Deferral Contributions means a
Participant’s Elective Deferral Contributions that are not excludible from the
Participant’s gross income at the time deferred and have been irrevocably
designated as Roth Elective Deferral Contributions by the Participant in his
elective deferral agreement. Whether an Elective Deferral Contribution is not
excludible from a Participant’s gross income will be determined in accordance
with section 1.401(k)-1(f)(2) of the regulations. In the case of a
Self-employed Individual, an Elective Deferral Contribution is not excludible
from gross income only if the individual does not claim a deduction for such
amount.

 

Self-employed Individual means, with respect to any
taxable year, an individual who has Earned Income for the taxable year (or who
would have Earned Income but for the fact the trade or business for which this
Plan is established did not have net profits for such taxable year).

 

Severance Date means the earlier of:

 

(a)                                  the date on which an Employee quits, retires, dies, or is
discharged, or

 

(b)                                 the first anniversary of the date an Employee begins a
one-year absence from service (with or without pay). This absence may be the
result of any combination of vacation, holiday, sickness, disability, leave of
absence, or layoff.

 

Solely to determine whether
a one-year Period of Severance has occurred for eligibility or vesting purposes
for an Employee who is absent from service beyond the first anniversary of the
first day of a Parental Absence, Severance Date is the second anniversary of
the first day of the Parental Absence. The period between the first and second
anniversaries of the first day of the Parental Absence is not a Period of
Service and is not a Period of Severance.

 

Severance from Employment means, except for purposes
of the CONTRIBUTION LIMITATION SECTION of Article III, an Employee has
ceased to be an Employee. The Plan Administrator shall determine if a Severance
from Employment has occurred in accordance with section 1.401(k)-1(d)(2) of
the regulations.

 

Significant Corporate Event means any corporate merger
or consolidation, recapitalization, reclassification, liquidation, dissolution,
sale of substantially all assets of a trade or business, or such similar
transaction as may be prescribed in regulations under Code Section 409(e)(3).

 

Totally and Permanently Disabled means that a Participant
is incapable of continuing usual or customary employment by reason of a
medically determined physical or mental impairment resulting from bodily
injury, disease or mental disorder. Such disability shall be determined by a
licensed physician chosen by the Plan Administrator.

 

Trust Agreement means an agreement or
agreements of trust between the Primary Employer and Trustee established for
the purpose of holding and distributing the Trust Fund under the provisions of
the Plan. The Trust Agreement may provide for the 

 

17

 

investment of all or any
portion of the Trust Fund in the Annuity Contract or any other investment
arrangement.

 

Trust Fund means the total funds held
under an applicable Trust Agreement. The term Trust Fund when used within a
Trust Agreement shall mean only the funds held under that Trust Agreement.

 

Trustee means the party or parties
named in the applicable Trust Agreement.

 

Unallocated Reserve means the portion of the
Trust Fund that consists of the proceeds of an Exempt Loan, the shares of
Qualifying Employer Securities that were acquired with the proceeds of an
Exempt Loan and have not yet been allocated to Participant Accounts, the
dividends and other investment earnings on the assets held in the Unallocated
Reserve, and the proceeds from any sale of shares of qualifying Employer
Securities held in the Unallocated Reserve.

 

Valuation Date means the date on which the
value of the assets of the Investment Fund is determined. The value of each
Account that is maintained under this Plan shall be determined on the Valuation
Date. In each Plan Year, the Valuation Date shall be the last day of the Plan
Year. At the discretion of the Plan Administrator, Trustee, or Insurer
(whichever applies) and in a nondiscriminatory manner, assets of the Investment
Fund may be valued more frequently. These dates shall also be Valuation Dates.

 

Vested Account means the vested part of a
Participant’s Account. The Participant’s Vested Account is equal to his Account.

 

Yearly Date means January 1, 1998,
and each following January 1.

 

Years of Service means an Employee’s Period
of Service. Years of Service shall be measured from his Employment Commencement
Date to his most recent Severance Date. Years of Service shall be reduced by
any Period of Severance that occurred prior to his most recent Severance Date,
unless such Period of Severance is included under the service spanning rule below.
This period of Years of Service shall be expressed as years and fractional
parts of a year (to four decimal places) on the basis that 365 days equal one
year.

 

However, Years of Service is
modified as follows:

 

Period of Military Duty
included:

 

A Period of Military Duty
shall be included as service with the Employer to the extent it has not already
been credited.

 

Period of Severance included
(service spanning rule):

 

A
Period of Severance shall be deemed to be a Period of Service under either of
the following conditions:

 

18

 

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

 

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

 

Controlled Group service
included:

 

An Employee’s service with a
member firm of a Controlled Group while both that firm and the Employer were
members of the Controlled Group shall be included as service with the Employer.

 

19

 

ARTICLE II

PARTICIPATION

 

SECTION 2.01—ACTIVE PARTICIPANT.

 

(a)                                  An Employee shall first become an Active Participant (begin
active participation in the Plan) on the earliest date on which he is an
Eligible Employee. This date is his Entry Date.

Each Employee who was an Active Participant on November 15, 2009, shall
continue to be an Active Participant if he is still an Eligible Employee on November 14,
2009, and his Entry Date shall not change.

In the event an Employee who is not an Eligible Employee becomes an Eligible
Employee, such Eligible Employee shall become an Active Participant immediately
if such Eligible Employee has satisfied the eligibility requirements above and
would have otherwise previously become an Active Participant had he met the
definition of Eligible Employee. This date is his Entry Date.

 

(b)                                 An Inactive Participant shall again become an Active
Participant (resume active participation in the Plan) on the date he again
performs an Hour of Service as an Eligible Employee. This date is his Reentry
Date.

Upon again becoming an Active Participant, he shall cease to be an Inactive
Participant.

 

(c)                                  A former Participant shall again become an Active
Participant (resume active participation in the Plan) on the date he again
performs an Hour of Service as an Eligible Employee. This date is his Reentry
Date.

 

There shall be no duplication
of benefits for a Participant because of more than one period as an Active
Participant.

 

SECTION 2.02—INACTIVE PARTICIPANT.

 

An Active Participant shall
become an Inactive Participant (stop accruing benefits) on the earlier of the
following:

 

(a)                                  the date the Participant ceases to be an Eligible Employee,
or

 

(b)                                 the effective date of complete termination of the Plan under
Article VIII.

 

An Employee or former
Employee who was an Inactive Participant on November 14, 2009, shall
continue to be an Inactive Participant on November 15, 2009. Eligibility
for any benefits payable to the Participant or on his behalf and the amount of
the benefits shall be determined according to the provisions of the prior
document, unless otherwise stated in this document or any subsequent documents.

 

20

 

SECTION 2.03—CESSATION OF PARTICIPATION.

 

A Participant shall cease to
be a Participant on the date he is no longer an Eligible Employee and his
Account is zero.

 

21

 

ARTICLE III

CONTRIBUTIONS

 

SECTION 3.01—EMPLOYER
CONTRIBUTIONS.

 

Employer Contributions shall
be made without regard to current or accumulated net income, earnings, or
profits of the Employer. Notwithstanding the foregoing, the Plan shall continue
to be designed to qualify as a profit sharing plan for purposes of Code
Sections 401(a), 402, 412, and 417. Such Contributions shall be equal to the
Employer Contributions as described below:

 

(a)                                  The amount of each Elective Deferral Contribution for a
Participant shall be equal to a portion of Compensation as specified in the
elective deferral agreement. An Employee who is eligible to participate in the
Plan for purposes of Elective Deferral Contributions may file an elective
deferral agreement with the Employer. The Participant shall modify or terminate
the elective deferral agreement by filing a new elective deferral agreement.
The elective deferral agreement may not be made retroactively and shall remain
in effect until modified or terminated.

 

The elective deferral
agreement to start or modify Elective Deferral Contributions shall be effective
as soon as administratively feasible on or after the Participant’s Entry Date
(Reentry Date, if applicable) or any following date. The elective deferral
agreement must be entered into on or before the date it is effective.

 

The elective deferral
agreement to stop Elective Deferral Contributions may be entered into on any
date. Such elective deferral agreement shall be effective as soon as
administratively feasible following the date on which the elective deferral
agreement is entered into.

 

Elective Deferral
Contributions cannot be more than 100% of Compensation. A Participant who is
eligible to make Catch-up Contributions shall be limited to the maximum
deferral percentage and the maximum deferral percentage shall apply to his
Elective Deferral Contributions, including Catch-up Contributions.

 

A Participant who is age 50
or older by the end of the taxable year shall be eligible to make Catch-up
Contributions.

 

On and after January 1,
2010, a Participant may elect to designate all or any portion of his future
Elective Deferral Contributions as Roth Elective Deferral Contributions.

 

No Participant shall be
permitted to have Elective Deferral Contributions, as defined in the EXCESS
AMOUNTS SECTION of this article, made under this Plan, or any other plan,
contract, or arrangement maintained by the Employer, during any calendar year,
in excess of the dollar limitation contained in Code Section 402(g) in
effect for the Participant’s taxable year beginning in such calendar year. The
dollar limitation in the preceding sentence shall be increased 

 

22

 

by the dollar limit on
Catch-up Contributions under Code Section 414(v)(2)(B)(i) for the
taxable year for any Participant who will be age 50 or older by the end of the
taxable year.

 

The dollar limitation
contained in Code Section 402(g) is $10,500 for taxable years
beginning in 2000 and 2001, increasing to $11,000 for taxable years beginning
in 2002, and increasing by $1,000 for each year thereafter up to $15,000 for
taxable years beginning in 2006 and later years. After 2006, the $15,000 limit
will be adjusted by the Secretary of the Treasury for cost-of-living increases
under Code Section 402(g)(4). Any such adjustments will be in multiples of
$500.

 

Catch-up Contributions for a
Participant for a taxable year may not exceed the dollar limit on Catch-up
Contributions under Code Section 414(v)(2)(B)(i) for the taxable
year. The dollar limit on Catch-up Contributions under Code Section 414(v)(2)(B)(i) is
$1,000 for taxable years beginning in 2002, increasing by $1,000 for each year
thereafter up to $5,000 for taxable years beginning in 2006 and later years.
After 2006, the $5,000 limit will be adjusted by the Secretary of the Treasury
for cost-of-living increases under Code Section 414(v)(2)(C). Any such
adjustments will be in multiples of $500.

 

An elective deferral
agreement (or change thereto) must be made in such manner and in accordance
with such rules as the Employer may prescribe in a nondiscriminatory
manner (including by means of voice response or other electronic system under
circumstances the Employer permits) and may not be made retroactively.

 

Elective Deferral
Contributions are 100% vested and nonforfeitable.

 

(b)                                 Prior to January 1, 2010, the Employer may make
discretionary Matching Contributions. The percentage of Elective Deferral
Contributions matched, if any, shall be a percentage as determined by the
Employer.

 

On and after January 1,
2010, the Employer shall make Matching Contributions in an amount equal to 100%
of Elective Deferral Contributions. Elective Deferral Contributions that are
over 6% of Compensation won’t be matched.

 

Matching Contributions are
calculated based on Elective Deferral Contributions and Compensation for the
Plan Year. Matching Contributions shall be made for all persons who were Active
Participants at any time during the Plan Year.

 

Any percentage determined by
the Employer shall apply to all eligible persons for the entire Plan Year.

 

Matching Contributions made
prior to January 1, 2010, are 100% vested when made. Matching
Contributions made on and after January 1, 2010, are Qualified Matching
Contributions. These Contributions are 100% vested and are 

 

23

 

distributable only in
accordance with the distribution provisions (other than for hardships)
applicable to Elective Deferral Contributions.

 

(c)                                  Qualified Nonelective Contributions may be made for each
Plan Year in an amount determined by the Employer to be used to reduce Excess
Aggregate Contributions and Excess Contributions, as defined in the EXCESS
AMOUNTS SECTION of this article. If the Plan is treated as separate plans
because it is mandatorily disaggregated under the regulations of Code Section 401(k),
a separate Qualified Nonelective Contribution may be determined for each
separate plan.

 

On and after January 1,
2010, the Employer will no longer make Qualified Nonelective Contributions.

 

Qualified Nonelective
Contributions are 100% vested and are distributable only in accordance with the
distribution provisions (other than for hardships) applicable to Elective
Deferral Contributions.

 

(d)                                 On and after January 1, 2010, Discretionary
Contributions may be made for each Plan Year in an amount determined by the
Employer.

 

Discretionary Contributions
are 100% vested when made.

 

(e)                                  ESOP Discretionary Contributions will be made for each Plan
Year for which a payment is due on an Exempt Loan, if any. The amount of the
ESOP Discretionary Contribution for the Plan Year will be determined at the
sole discretion of the Primary Employer, but will not be less than the minimum
amount sufficient to enable the Trustee to make the payment due on the Exempt
Loan to the extent that such payment cannot be satisfied from cash dividends or
S corporation distributions paid on shares of Qualifying Employer Securities
held in the Participants’ Accounts (if the Primary Employer directs that such
dividends or S corporation distributions be applied to the Exempt Loan), or
cash dividends or S corporation distributions paid on shares of Qualifying
Employer Securities held in the Unallocated Reserve or other investment
earnings of the Unallocated Reserve.

 

ESOP Discretionary
Contributions are 100% vested when made.

 

Employer Contributions are
allocated according to the provisions of the ALLOCATION SECTION of this
article.

 

A portion of the Plan assets
resulting from Employer Contributions (but not more than the original amount of
those Contributions) may be returned if the Employer Contributions are made
because of a mistake of fact or are more than the amount deductible under Code Section 404
(excluding any amount which is not deductible because the Plan is
disqualified). The amount involved must be returned to the Employer within one
year after the date the Employer Contributions are made by mistake of fact or
the date the deduction is disallowed, whichever applies. Except as provided
under this paragraph and in Article VIII, the assets of the Plan shall
never be used for the benefit of the Employer and are held for the exclusive
purpose of providing 

 

24

 

benefits to Participants and their Beneficiaries and for defraying
reasonable expenses of administering the Plan.

 

SECTION 3.01A—ROLLOVER
CONTRIBUTIONS.

 

A Rollover Contribution may
be made by an Eligible Employee or Inactive Participant if the following
conditions are met:

 

(a)                                  The Contribution is a
Participant Rollover Contribution or a direct rollover of a distribution made
after December 31, 2001 from the types of plans specified below. A
Participant Rollover Contribution or a direct rollover of a distribution from a
designated Roth account applies only to distributions made in taxable years
beginning on or after January 1, 2006.

 

Direct
Rollovers.  The Plan
will accept a direct rollover of an Eligible Rollover Distribution from (i) a
qualified plan described in Code Section 401(a) or 403(a), including
after-tax employee contributions and any portion of a designated Roth account; (ii) an
annuity contract described in Code Section 403(b), including after-tax
employee contributions and any portion of a designated Roth account; and (iii) 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.

 

Participant
Rollover Contributions from Other Plans.  The Plan will accept a Participant
contribution of an Eligible Rollover Distribution from (i) a qualified
plan described in Code Section 401(a) or 403(a), including
distributions of a designated Roth account only to the extent such amount would
otherwise be includible in a Participant’s gross income; (ii) an annuity
contract described in Code Section 403(b), including distributions of a
designated Roth account only to the extent such amount would otherwise be
includible in a Participant’s gross income; and (iii) 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.

 

Participant
Rollover Contributions from IRAs.  The Plan will accept a Participant Rollover
Contribution of the portion of a distribution from an individual retirement
account or individual retirement annuity described in Code Section 408(a) or
(b) that is eligible to be rolled over and would otherwise be includible
in the Participant’s gross income.

 

(b)                                 The Contribution is of
amounts that the Code permits to be transferred to a plan that meets the
requirements of Code Section 401(a).

 

(c)                                  The Contribution is made in
the form of a direct rollover under Code Section 401(a)(31) or is a
rollover made under Code Section 402(c) or 408(d)(3)(A) within
60 days after the Eligible Employee or Inactive Participant receives the
distribution.

 

25

 

(d)                                 The Eligible Employee or
Inactive Participant furnishes evidence satisfactory to the Plan Administrator
that the proposed rollover meets conditions (a), (b), and (c) above.

 

(e)                                  In the case of an Inactive
Participant, the Contribution must be of an amount distributed from another
plan of the Employer or a plan of a Controlled Group member.

 

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

 

If the Eligible Employee is
not an Active Participant when the Rollover Contribution is made, he shall be
deemed to be an Active Participant only for the purpose of investment and
distribution of the Rollover Contribution. Employer Contributions shall not be
made for or allocated to the Eligible Employee until the time he meets all of
the requirements to become an Active Participant.

 

Rollover Contributions made
by an Eligible Employee or an Inactive Participant shall be credited to his
Account. The part of the Participant’s Account resulting from Rollover
Contributions is 100% vested and nonforfeitable at all times. Separate
accounting records shall be maintained for those parts of his Rollover
Contributions consisting of (i) voluntary contributions which were
deducted from the Participant’s gross income for Federal income tax purposes; (ii) after-tax
employee contributions, including the portion that would not have been includible
in the Participant’s gross income if the contributions were not rolled over
into this Plan; and (iii) any portion of a designated Roth account,
including the portion that would not have been includible in the Participant’s
gross income if the contributions were not rolled over into this Plan.

 

SECTION 3.02—FORFEITURES.

 

A Forfeiture shall occur as
provided in the EXCESS AMOUNTS SECTION of this article.

 

Forfeitures shall be
determined at least once during each Plan Year. Forfeitures may first be used
to pay administrative expenses. Forfeitures of Matching Contributions that
relate to excess amounts as provided in the EXCESS AMOUNTS SECTION of this
article, that have not been used to pay administrative expenses, shall be
applied to reduce the earliest Employer Contributions made after the
Forfeitures are determined. Upon their application to reduce Employer
Contributions, Forfeitures shall be deemed to be Employer Contributions.

 

SECTION 3.03—ALLOCATION.

 

A person meets the
allocation requirements of this section if he is an Active Participant on the
last day of the Plan Year and has at least 1,000 Hours of Service during the
latest Accrual Computation Period ending on or before that date. A person shall
also meet the requirements of this section if he was an Active Participant at
any time during the Plan Year and reaches his Normal Retirement Date, becomes
Totally and Permanently Disabled, or dies.

 

26

 

Elective Deferral
Contributions shall be allocated to the Participants for whom such
Contributions are made under the EMPLOYER CONTRIBUTIONS SECTION of this
article. Such Contributions shall be allocated when made and credited to the
Participant’s Account.

 

Matching Contributions shall
be allocated to the persons for whom such Contributions are made under the
EMPLOYER CONTRIBUTIONS SECTION of this article. Such Contributions shall
be allocated as of the last day of the Plan Year and shall be credited to the
person’s Account.

 

The discretionary Qualified
Nonelective Contributions to be used to reduce excess amounts, as described in
the EMPLOYER CONTRIBUTIONS SECTION of this article, shall be allocated as
of the last day of the Plan Year only to Nonhighly Compensated Employees who
were Active Participants on the last day of the Plan Year. Such Contributions
(or separate Contributions) shall be allocated first to the eligible person
under the Plan (or separate plan) with the lowest Annual Compensation for the
Plan Year, then to the eligible person under the Plan (or separate plan) with
the next lowest Annual Compensation, and so forth. The amount of such
Contributions shall be limited in each case to 5% of the eligible person’s
Compensation used for purposes of the ADP Test. This amount shall be credited
to the person’s Account.

 

The ESOP Discretionary
Contribution for the Plan Year (if any), plus any Forfeitures of Qualifying
Employer Securities, shall be allocated as of the last day of the Plan Year to
each person who meets the allocation requirements of this section, together
with the cash dividends or S corporation distributions paid on Qualifying
Employer Securities held in the Participants’ Accounts (if the Primary Employer
directs that such dividends or S corporation distributions be applied to the
Exempt Loan), cash dividends or S corporation distributions paid on Qualifying
Employer Securities held in the Unallocated Reserve and other investment
earnings of the Unallocated Reserve (if any), shall be applied to make the
payment due on any Exempt Loan for the Plan Year. The Qualifying Employer
Securities released from t he Unallocated Reserve as a result of that payment
shall be allocated as of the last day of the Plan Year as follows:

 

STEP ONE This step one shall
apply only if the cash dividends or S corporation distributions paid on
Qualifying Employer Securities held in the Participants’ Accounts are applied
to the Exempt Loan.

 

The allocation in this step
one shall be made to each person who received a cash dividend or S corporation
distribution on Qualifying Employer Securities held in his/her Account that was
applied to the Exempt Loan.

 

The number of shares of
Qualifying Employer Securities allocated under this step one shall be the
number of shares with a value equal to or greater than the total cash dividends
or S corporation distributions paid on Qualifying Employer Securities held in
the Participants’ Accounts and applied to the Exempt Loan. The number of shares
of Qualifying Employer Securities allocated to each such person shall be
determined by multiplying the number of shares of Qualifying Employer
Securities to be allocated under this step one by a fraction, the numerator of
which is the cash dividends or S corporation distributions paid on Qualifying
Employer Securities held in the Account of such person and applied to the
Exempt Loan, and the denominator of which is t he total cash dividends or S
corporation distributions paid on 

 

27

 

Qualifying Employer
Securities held in the Accounts of all such persons and applied to the Exempt
Loan.

 

STEP TWO: The allocation in
this step two shall be made among those persons who meet the allocation
requirements of this section, but subject to the PROHIBITED ALLOCATION OF
QUALIFYING EMPLOYER SECURITIES SECTION of this article.

 

The number of shares of
Qualifying Employer Securities allocated to each such person shall be
determined by multiplying the number of shares of Qualifying Employer
Securities released from the Unallocated Reserve (and not allocated under step
one) by a fraction, the numerator of which is the Annual Compensation of such
person for the Plan Year, and the denominator of which is the aggregate Annual
Compensation of all such persons for the Plan Year. However, if the aggregate
amount of Qualifying Employer Securities that would be allocated under this
paragraph to Highly Compensated Employees exceeds one-third of the total
Qualifying Employer Securities allocated, then the amount of Qualifying
Employer Securities in excess of one-third shall be reallocated to the
Nonhighly Compensated Employees in proportion to each Nonhighly Compensated
Employee’s Annual Compensation to the total Annual Compensation of all such
Nonhighly Compensated Employees.

 

If the ESOP Discretionary
Contributions exceed the amount needed to make the payment for the Exempt Loan
for the Plan Year, or if there is no Exempt Loan for the Plan Year in which the
ESOP Discretionary Contribution is made, the ESOP Discretionary Contribution
shall be allocated in the same manner as STEP TWO above.

 

Discretionary Contributions
shall be allocated as of the last day of the Plan Year, using Annual
Compensation for the Plan Year. In years in which the Plan is a Top-heavy Plan,
as defined in the DEFINITIONS SECTION of Article XI, and the minimum
contribution under the MODIFICATION OF CONTRIBUTIONS SECTION of Article XI
is not being provided by other contributions to this Plan or another plan of
the Employer, the allocation shall be made to each person meeting the
allocation requirements of this section and each person entitled to a minimum
contribution under the MODIFICATION OF CONTRIBUTIONS SECTION of Article Xl.
In all other years, the allocation shall be made to each person meeting the
allocation requirements of this section. The amount allocated shall be equal to
the Discretionary Contributions multiplied by the ratio of such person’s Annual
Compensation to the total Annual Compensation for all such persons. The
allocation for any person who does not meet the allocation requirements of this
section shall be limited to the amount necessary to fund the minimum
contribution.

 

In years in which the Plan
is a Top-heavy Plan, the minimum contribution under the MODIFICATION OF
CONTRIBUTIONS SECTION of Article XI is not being provided by other
contributions to this Plan or another plan of the Employer, and the allocation
described above (or any subsequent allocation described below) would provide an
allocation for any person less than the minimum contribution required for such
person in the MODIFICATION OF CONTRIBUTIONS SECTION of Article XI,
such minimum contribution shall first be allocated to all such persons. Then
any amount remaining shall be allocated to the remaining persons sharing in the
allocation based on Annual Compensation as described above, as if they were the
only persons sharing in the allocation for the Plan Year.

 

28

 

This amount shall be
credited to the person’s Account.

 

If Leased Employees are
Eligible Employees, in determining the amount of Employer Contributions
allocated to a person who is a Leased Employee, contributions provided by the
leasing organization that are attributable to services such Leased Employee
performs for the Employer shall be treated as provided by the Employer. Those
contributions shall not be duplicated under this Plan.

 

SECTION 3.04—CONTRIBUTION LIMITATION.

 

Contributions to the Plan
shall be limited in accordance with Code Section 415 and the regulations
thereunder. The limitations of this section shall apply to Limitation Years
beginning on or after July 1, 2007, except as otherwise provided herein.

 

(a)                                  Definitions.  For the purpose of determining the
contribution limitation set forth in this section, the following terms are
defined.

 

Annual Additions means the sum of the
following amounts credited to a Participant’s account for the Limitation Year:

 

(1)                                  employer
contributions, provided that ESOP Discretionary Contributions under this Plan
that are applied to pay interest on an Exempt Loan and/or Forfeitures of
Qualifying Employer Securities that were purchased with an Exempt Loan will not
be an Annual Addition if no more than one-third (1/3) of the ESOP Discretionary
Contribution that is applied to pay principal or interest on an Exempt Loan for
the Plan Year is allocated to Highly Compensated Employees. To the extent
Qualifying Employer Securities are allocated to Participants’ Accounts, the
lesser of fair market value of the Qualifying Employer Security allocated or
the employer contribution used to release such share in the case of repayment
of an Exempt Loan, shall be used for purposes of measuring Annual Additions;

 

(2)                                  employee
contributions; and

 

(3)                                  forfeitures.

 

Annual Additions to a
defined contribution plan, as defined in section 1.415(c)-1(a)(2)(i) of
the regulations, shall also include the following:

 

(4)                                  mandatory
employee contributions, as defined in Code Section 411(c)(2)(C) and
section 1.411(c)-1(c)(4) of the regulations, to a defined benefit plan;

 

(5)                                  contributions
allocated to any individual medical benefit account, as defined in Code Section 415(1)(2),
which is part of a pension or annuity plan maintained by the Employer;

 

29

 

(6)                                  amounts
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 the
Employer; and

 

(7)                                  annual
additions under an annuity contract described in Code Section 403(b).

 

Compensation
means wages within the meaning of Code Section 3401(a) for
the purposes of income tax withholding at the source but determined without
regard to any rules that limit the remuneration included in wages based on
the nature or location of the employment or the services performed (such as the
exception for agricultural labor in Code Section 3401(a)(2)).

 

For any Self-employed
Individual, Compensation shall mean Earned Income.

 

Except as provided herein,
Compensation for a Limitation Year is the Compensation actually paid or made
available (or if earlier, includible in gross income) during such Limitation
Year.

 

For Limitation Years
beginning on or after July 1, 2007, Compensation for a Limitation Year
shall also include Compensation paid by the later of 2 1/2 months after an
employee’s Severance from Employment with the Employer maintaining the plan or
the end of the Limitation Year that includes the date of the employee’s
Severance from Employment with the Employer maintaining the plan, if the
payment is regular Compensation for services during the employee’s regular
working hours, or Compensation for services outside the employee’s regular
working hours (such as overtime or shift differential), commissions, bonuses,
or other similar payments, and, absent a Severance from Employment, the
payments would have been paid to the employee while the employee continued in
employment with the Employer.

 

Any payments not described
above shall not be considered Compensation if paid after Severance from Employment,
even if they are paid by the later of 2 1/2 months after the date of Severance
from Employment or the end of the Limitation Year that includes the date of
Severance from Employment, except, payments to an individual who does not
currently perform services for the Employer by reason of qualified military
service (as that term is used in Code Section 414(u)(1)) to the extent
these payments do not exceed the amounts the individual would have received if
the individual had continued to perform services for the Employer rather than
entering qualified military service.

 

Back pay, within the meaning
of section 1.415(c)-2(g)(8) of the regulations, shall be treated as
Compensation for the Limitation Year to which the back pay relates to the
extent the back pay represents wages and compensation that would otherwise be
included in this definition.

 

30

 

Compensation paid or made
available during such Limitation Year shall include amounts that would
otherwise be included in Compensation but for an election under Code Section 125(a),
132(f)(4), 402(e)(3), 402(h)(1)(B), 402(k), or 457(b).

 

Compensation shall not
include amounts paid as Compensation to a nonresident alien, as defined in Code
Section 7701(b)(1)(B), who is not a Participant in the Plan to the extent
the Compensation is excludible from gross income and is not effectively
connected with the conduct of a trade or business within the United States.

 

Defined Contribution Dollar Limitation means,
effective for Limitation Years beginning after December 31, 2001, $40,000,
automatically adjusted under Code Section 415(d), effective January 1
of each year, as published in the Internal Revenue Bulletin. The new limitation
shall apply to Limitation Years ending with or within the calendar year of the
date of the adjustment, but a Participant’s Annual Additions for a Limitation
Year cannot exceed the currently applicable dollar limitation (as in effect
before the January 1 adjustment) prior to January 1. However, after a
January 1 adjustment is made, Annual Additions for the entire Limitation
Year are permitted to reflect the dollar limitation as adjusted on January 1.

 

Employer means the employer that
adopts this Plan, and all members of a controlled group of corporations (as
defined in Code Section 414(b) as modified by Code Section 415(h)),
all commonly controlled trades or businesses (as defined in Code Section 414(c),
as modified, except in the case of a brother-sister group of trades or
businesses under common control, by Code Section 415(h)), or affiliated
service groups (as defined in Code Section 414(m)) of which the adopting
employer is a part, and any other entity required to be aggregated with the
employer pursuant to Code Section 414(o).

 

Limitation Year means the consecutive
12-month period ending on each December 31. If the Limitation Year is
other than the calendar year, execution of this Plan (or any amendment to this
Plan changing the Limitation Year) constitutes the Employer’s adoption of a
written resolution electing the Limitation Year. If the Limitation Year is
amended to a different consecutive 12-month period, the new Limitation Year
must begin on a date within the Limitation Year in which the amendment is made.

 

Maximum Annual Addition means, for Limitation Years
beginning on or after January 1, 2002, except for catch-up contributions
described in Code Section 414(v), the Annual Addition that may be
contributed or allocated to a Participant’s Account under the Plan for any
Limitation Year. This amount shall not exceed the lesser of:

 

(1)                                  The Defined
Contribution Dollar Limitation, or

 

(2)                                  100 percent of
the Participant’s Compensation for the Limitation Year.

 

31

 

A Participant’s Compensation
for a Limitation Year shall not include Compensation in excess of the
limitation under Code Section 401(a)(17) that is in effect for the
calendar year in which the Limitation Year begins.

 

The compensation limitation
referred to in (2) shall not apply to an individual medical benefit
account (as defined in Code Section 415(l); or a post-retirement medical
benefits account for a key employee (as defined in Code Section 419A(d)(1)).

 

If a short Limitation Year
is created because of an amendment changing the Limitation Year to a different
consecutive 12-month period, the Maximum Annual Addition will not exceed the
Defined Contribution Dollar Limitation multiplied by the following fraction:

 

Number of months (including
any fractional parts of a month)

in the short Limitation Year 

12

 

If the Plan is terminated as
of a date other than the last day of the Limitation Year, the Plan is treated
as if the Plan was amended to change the Limitation Year and create a short
Limitation Year ending on the date the Plan is terminated.

 

If a short Limitation Year
is created, the limitation under Code Section 401(a)(17) shall be prorated
in the same manner as the Defined Contribution Dollar Limitation.

 

Predecessor Employer means, with respect to a
Participant, a former employer if the Employer maintains a plan that provides a
benefit which the Participant accrued while performing services for the former
employer. Predecessor Employer also means, with
respect to a Participant, a former entity that antedates the Employer if, under
the facts and circumstances, the Employer constitutes a continuation of all or
a portion of the trade or business of the former entity.

 

Severance from Employment means an employee has ceased
to be an employee of the Employer maintaining the plan. An employee does not
have a Severance from Employment if, in connection with a change of employment,
the employee’s new employer maintains the plan with respect to the employee.

 

(b)                                 If the Participant does not participate in another defined
contribution plan, as defined in section 1.415(c)-1(a)(2)(i) of the
regulations (without regard to whether the plan(s) have been terminated)
maintained by the Employer, the amount of Annual Additions that may be credited
to the Participant’s Account for any Limitation Year shall not exceed the
lesser of the Maximum Annual Addition or any other limitation contained in this
Plan. If the Employer Contribution that would otherwise be contributed or
allocated to the Participant’s Account would cause the Annual Additions for the
Limitation Year to exceed the Maximum Annual Addition, the amount contributed
or allocated shall be reduced so that the 

 

32

 

Annual
Additions for the Limitation Year will equal the Maximum Annual Addition.

 

(c)                                  If, in addition to this Plan, the Participant is covered
under another defined contribution plan, as defined in section 1.415(c)-1(a)(2)(i) of
the regulations, (without regard to whether the plan(s) have been
terminated) maintained by the Employer that provides an Annual Addition during
any Limitation Year, the Annual Additions that may be credited to a Participant’s
Account under this Plan for any such Limitation Year will not exceed the
Maximum Annual Addition, reduced by the Annual Additions credited to a
Participant’s account under the other defined contribution plan(s) for the
same Limitation Year. If the Annual Additions with respect to the Participant
under the other defined contribution plan(s) maintained by the Employer
are less than the Maximum Annual Addition, and the Employer Contribution that
would otherwise be contributed or allocated to the Participant’s Account under
this Plan would cause the Annual Additions for the Limitation Year to exceed
this limitation, the amount contributed or allocated will be reduced so that
the Annual Additions under all such plans and funds for the Limitation Year
will equal the Maximum Annual Addition. If the Annual Additions with respect to
the Participant under the other defined contribution plan(s) in the
aggregate are equal to or greater than the Maximum Annual Addition, no amount
will be contributed or allocated to the Participant’s Account under this Plan
for the Limitation Year.

 

(d)                                 The limitation of this section shall be determined and
applied taking into account the rules in subparagraph (e) below.

 

(e)                                  Other Rules

 

(1)                                  Aggregating
Plans. For purposes of applying the limitations of this section for a Limitation
Year, all defined contribution plans (as defined in section 1.415(c)-1(a)(2)(i) of
the regulations and without regard to whether the plan(s) have been
terminated) ever maintained by the Employer and all defined contribution plans
of a Predecessor Employer (in the Limitation Year in which such Predecessor
Employer is created) under which a Participant receives Annual Additions are
treated as one defined contribution plan.

 

(2)                                  Break-up of
Affiliated Employers. The Annual Additions under a formerly affiliated
plan (as defined in section 1.415(f)-1(b)(2)(ii) of the regulations) of
the Employer are taken into account for purposes of applying the limitations of
this section for the Limitation Year in which the cessation of affiliation took
place.

 

(3)                                  Previously
Unaggregated Plans. The limitations of this section are not exceeded
for the first Limitation Year in which two or more existing plans, which
previously were not required to be aggregated pursuant to section 1.415(f) of
the regulations, are aggregated, provided that no 

 

33

 

Annual Additions are credited to a
Participant after the date on which the plans are required to be aggregated if
the Annual Additions already credited to the Participant in the existing plans
equal or exceed the Maximum Annual Addition.

 

(4)                                  Aggregation
with Multiemployer Plan. If the Employer maintains a multiemployer
plan, as defined in Code Section 414(f), and the multiemployer plan so
provides, only the Annual Additions under the multiemployer plan that are
provided by the Employer shall be treated as Annual Additions provided under a
plan maintained by the Employer for purposes of this section.

 

SECTION 3.05—EXCESS AMOUNTS.

 

(a)                                  Definitions.
For purposes of this section, the following terms are defined:

 

ACP means, for a
specified group of Participants (either Highly Compensated Employees or
Nonhighly Compensated Employees) for a Plan Year, the average (expressed as a
percentage) of the Contribution Percentages of the Eligible Participants in the
group.

 

ADP means, for a
specified group of Participants (either Highly Compensated Employees or
Nonhighly Compensated Employees) for a Plan Year, the average (expressed as a
percentage) of the Deferral Percentages of the Eligible Participants in the
group.

 

Catch-up Contributions means Elective Deferral
Contributions made to a plan that are in excess of an otherwise applicable plan
limit and that are made by participants who are age 50 or older by the end of
the taxable year. An otherwise applicable plan limit is a limit in the plan
that applies to Elective Deferral Contributions without regard to Catch-up
Contributions, such as the limits on the maximum annual additions under Code Section 415,
the dollar limitation on Elective Deferral Contributions under Code Section 402(g) (not
counting Catch-up Contributions), and the limit imposed by the
nondiscrimination test described in Code Section 401(k)(3).

 

Contribution Percentage means the ratio (expressed
as a percentage) of the Eligible Participant’s Contribution Percentage Amounts
to the Eligible Participant’s Compensation for the Plan Year (whether or not
the Eligible Participant was an Eligible Participant for the entire Plan Year).
For an Eligible Participant for whom such Contribution Percentage Amounts for
the Plan Year are zero, the percentage is zero.

 

Contribution Percentage Amounts means the sum
of the Participant Contributions and Matching Contributions (that are not
Qualified Matching Contributions taken into account for purposes of the ADP
Test) made under the plan on behalf of the Eligible Participant for the plan
year. For plan years beginning on or after January 1, 2006, Matching
Contributions cannot be taken 

 

34

 

into account for a plan year
for a Nonhighly Compensated Employee to the extent they are disproportionate
matching contributions as defined in section 1.401(m)-2(a)(5)(ii) of the
regulations. Such Contribution Percentage Amounts shall not include Matching
Contributions that are forfeited either to correct Excess Aggregate
Contributions or because the contributions to which they relate are Excess
Elective Deferrals, Excess Contributions, or Excess Aggregate Contributions.
Under such rules as the Secretary of the Treasury shall prescribe, in
determining the Contribution Percentage the Employer may elect to include
Qualified Nonelective Contributions under this Plan that were not used in
computing the Deferral Percentage. For plan years beginning on or after January 1,
2006, Qualified Nonelective Contributions cannot be taken into account for a
plan year for a Nonhighly Compensated Employee to the extent they are
disproportionate contributions as defined in section 1.401(m)-2(a)(6)(v) of
the regulations. The Employer may also elect to use Elective Deferral
Contributions in computing the Contribution Percentage so long as the ADP Test
is met before the Elective Deferral Contributions are used in the ACP Test and
continues to be met following the exclusion of those Elective Deferral
Contributions that are used to meet the ACP Test.

 

Deferral Percentage means the ratio (expressed
as a percentage) of Elective Deferral Contributions (other than Catch-up
Contributions) under this Plan on behalf of the Eligible Participant for the
Plan Year to the Eligible Participant’s
Compensation for the Plan Year
(whether or not the Eligible Participant was an Eligible Participant for
the entire Plan Year). The Elective
Deferral Contributions used to
determine the Deferral Percentage
shall include Excess Elective Deferrals (other than Excess Elective Deferrals of Nonhighly Compensated Employees that arise solely from Elective Deferral
Contributions made under this Plan or
any other plans of the Employer or a Controlled Group member), but shall
exclude Elective Deferral Contributions
that are used in computing the Contribution Percentage (provided the ADP Test
is satisfied both with and without exclusion of these Elective Deferral Contributions). Under such rules as the Secretary
of the Treasury shall prescribe, the Employer may elect to include Qualified
Nonelective Contributions and Qualified Matching Contributions under this Plan
in computing the Deferral Percentage.
For Plan Years beginning on or after January 1, 2006, Qualified Matching
Contributions cannot be taken into account for a Plan Year for a
Nonhighly Compensated Employee to the extent they are disproportionate matching
contributions as defined in section 1.401(m)-2(a)(5)(ii) of the
regulations. For Plan Years beginning on or after January 1, 2006,
Qualified Nonelective Contributions cannot be taken into account for a Plan Year for a Nonhighly Compensated Employee to the
extent they are disproportionate contributions as defined in section 1.401(k)-
2(a)(6)(iv) of the regulations. For an Eligible Participant for whom such contributions on his behalf for
the Plan Year are zero, the percentage
is zero.

 

Elective
Deferral Contributions means any employer contributions made to a
plan at the election of a participant in lieu of cash compensation. With
respect to any taxable year, a participant’s Elective Deferral Contributions
are the sum of all 

 

35

 

employer contributions made
on behalf of such participant pursuant to an election to defer under any qualified
cash or deferred arrangement described in Code Section 401(k), any salary
reduction simplified employee pension plan described in Code Section 408(k)(6),
any SIMPLE IRA plan described in Code Section 408(p), any plan described
under Code Section 501(c)(18), and any employer contributions made on
behalf of a participant for the purchase of an annuity contract under Code Section 403(b) pursuant
to a salary reduction agreement. For taxable years beginning after December 31,
2005, Elective Deferral Contributions include Pre-tax Elective Deferral
Contributions and Roth Elective Deferral Contributions. Elective Deferral
Contributions shall not include any deferrals properly distributed as excess
annual additions.

 

Eligible
Participant means, for purposes of determining the Deferral
Percentage, any Employee who is otherwise entitled to make Elective Deferral
Contributions under the terms of the plan for the plan year. Eligible Participant means, for purposes of determining the
Contribution Percentage, any Employee who is eligible (i) to make a
Participant Contribution or an Elective Deferral Contribution (if the Employer
takes such contributions into account in the calculation of the Contribution
Percentage), or (ii) to receive a Matching Contribution (including
forfeitures) or a Qualified Matching Contribution. If a Participant
Contribution is required as a condition of participation in the plan, any
Employee who would be a participant in the plan if such Employee made such a
contribution shall be treated as an Eligible Participant on behalf of whom no
Participant Contributions are made.

 

Excess
Aggregate Contributions means, with respect to any Plan Year, the
excess of:

 

(1)                                  The aggregate
Contribution Percentage Amounts taken into account in computing the numerator
of the Contribution Percentage actually made on behalf of Highly Compensated
Employees for such Plan Year, over

 

(2)                                  The maximum
Contribution Percentage Amounts permitted by the ACP Test (determined by
hypothetically reducing contributions made on behalf of Highly Compensated
Employees in order of their Contribution Percentages beginning with the highest
of such percentages).

 

Such determination shall be
made after first determining Excess Elective Deferrals and then determining
Excess Contributions.

 

Excess Contributions means, with respect to any
Plan Year, the excess of:

 

(1)                                  The aggregate
amount of employer contributions actually taken into account in computing the
Deferral Percentage of Highly Compensated Employees for such Plan Year, over

 

(2)                                  The maximum
amount of such contributions permitted by the ADP Test (determined by
hypothetically reducing contributions made on behalf of 

 

36

 

Highly Compensated Employees in the order of
the Deferral Percentages, beginning with the highest of such percentages).

 

Such determination shall be
made after first determining Excess Elective Deferrals.

 

Excess Elective Deferrals means those Elective
Deferral Contributions of a Participant that either (i) are made during
the Participant’s taxable year and exceed the dollar limitation under Code Section 402(g) or
(ii) are made during a calendar year and exceed the dollar limitation
under Code Section 402(g) for the Participant’s taxable year
beginning in such calendar year, counting only Elective Deferral Contributions
made under this Plan and any other plan, contract, or arrangement maintained by
the Employer. The dollar limitation shall be increased by the dollar limit on
Catch-up Contributions under Code Section 414(v), if applicable.

 

Excess Elective Deferrals
shall be treated as Annual Additions, as defined in the CONTRIBUTION LIMITATION
SECTION of this article, under the Plan, unless such amounts are
distributed no later than the first April 15 following the close of the
Participant’s taxable year.

 

Matching Contributions means employer contributions
made to this or any other defined contribution plan, or to a contract described
in Code Section 403(b), on behalf of a participant on account of a
Participant Contribution made by such participant, or on account of a
participant’s Elective Deferral Contributions, under a plan maintained by the
Employer or a Controlled Group member.

 

Participant Contributions means contributions (other
than Roth Elective Deferral Contributions) made to the plan by or on behalf of
a participant that are included in the participant’s gross income in the year
in which made and that are maintained under a separate account to which the
earnings and losses are allocated.

 

Pre-tax Elective Deferral Contributions means a
participant’s Elective Deferral Contributions that are not includible in the
participant’s gross income at the time deferred.

 

Qualified Matching Contributions means Matching
Contributions that are nonforfeitable when made to the plan and that are
distributable only in accordance with the distribution provisions (other than
for hardships) applicable to Elective Deferral Contributions.

 

Qualified Nonelective Contributions means any
employer contributions (other than Matching Contributions) that an Employee may
not elect to have paid to him in cash instead of being contributed to the plan
and that are nonforfeitable when made to the plan and that are distributable
only in accordance with the distribution provisions (other than for hardships)
applicable to Elective Deferral Contributions.

 

37

 

Roth Elective Deferral Contributions means a
participant’s Elective Deferral Contributions that are not excludible from the
participant’s gross income at the time deferred and have been irrevocably
designated as Roth Elective Deferral Contributions by the participant in his
elective deferral agreement. Whether an Elective Deferral Contribution is not
excludible from a participant’s gross income will be determined in accordance
with section 1.40(k)-1(f)(2) of the regulations. In the case of a
self-employed individual, an Elective Deferral Contribution is not excludible
from gross income only if the individual does not claim a deduction for such
amount.

 

(b)                                 Excess Elective Deferrals.  A Participant may assign to this Plan any
Excess Elective Deferrals made during a taxable year of the Participant by
notifying the Plan Administrator in writing on or before the first following March 1
of the amount of the Excess Elective Deferrals to be assigned to the Plan. A
Participant is deemed to notify the Plan Administrator of any Excess Elective
Deferrals that arise by taking into account only those Elective Deferral
Contributions made to this Plan and any other plan, contract, or arrangement of
the Employer or a Controlled Group member. The Participant’s claim for Excess
Elective Deferrals shall be accompanied by the Participant’s written statement
that if such amounts are not distributed, such Excess Elective Deferrals will
exceed the limit imposed on the Participant by Code Section 402(g) (including,
if applicable, the dollar limitation on Catch-up Contributions under Code Section 414(v))
for the year in which the deferral occurred. The Excess Elective Deferrals
assigned to this Plan cannot exceed the Elective Deferral Contributions
allocated under this Plan for such taxable year.

 

Notwithstanding any other
provisions of the Plan, Elective Deferral Contributions in an amount equal to
the Excess Elective Deferrals assigned to this Plan, plus any income and minus
any loss allocable thereto, shall be distributed no later than April 15 to
any Participant to whose Account Excess Elective Deferrals were assigned for
the preceding year and who claims Excess Elective Deferrals for such taxable
year or calendar year.

 

For taxable years beginning
after December 31, 2005, distribution of Excess Elective Deferrals shall
be made on a pro rata basis from the Participant’s Account resulting from
Pre-tax Elective Deferral Contributions and Roth Elective Deferral
Contributions in the same proportion that such Contributions were made for the
applicable year.

 

The Excess Elective
Deferrals shall be adjusted for any income or loss. The income or loss
allocable to such Excess Elective Deferrals shall be equal to the income or
loss allocable to the Participant’s Elective Deferral Contributions for the
taxable year in which the excess occurred multiplied by a fraction. The
numerator of the fraction is the Excess Elective Deferrals. The denominator of
the fraction is the closing balance without regard to any income or loss
occurring during such taxable year (as of the end of such taxable year) of the
Participant’s Account resulting from Elective Deferral Contributions.

 

38

 

For purposes of determining
income or loss on Excess Elective Deferrals for taxable years beginning on or
after January 1, 2008, no adjustment shall be made for income or loss for
the gap period.

 

Any Matching Contributions
that were based on the Elective Deferral Contributions distributed as Excess
Elective Deferrals, plus any income and minus any loss allocable thereto, shall
be forfeited.

 

(c)                                  ADP Test.  As of the end of each Plan Year after Excess
Elective Deferrals have been determined, the Plan must satisfy the ADP Test.
The ADP Test shall be satisfied using the prior year testing method or the
current year testing method, as elected by the Employer.

 

(1)                                  Prior Year
Testing Method.  The ADP for
a Plan Year for Eligible Participants who are Highly Compensated Employees for
each Plan Year and the prior year’s ADP for Eligible Participants who were
Nonhighly Compensated Employees for the prior Plan Year must satisfy one of the
following tests:

 

(i)                                     The ADP for a
Plan Year for Eligible Participants who are Highly Compensated Employees for
the Plan Year shall not exceed the prior year’s ADP for Eligible Participants
who were Nonhighly Compensated Employees for the prior Plan Year multiplied by
1.25; or

 

(ii)                                  The ADP for a
Plan Year for Eligible Participants who are Highly Compensated Employees for
the Plan Year:

 

A.                                   shall not
exceed the prior year’s ADP for Eligible Participants who were Nonhighly
Compensated Employees for the prior Plan Year multiplied by 2, and

 

B.                                     the difference
between such ADPs is not more than 2.

 

If this is not a successor
plan, for the first Plan Year the Plan permits any Participant to make Elective
Deferral Contributions, for purposes of the foregoing tests, the prior year’s
Nonhighly Compensated Employees’ ADP shall be 3 percent or the Plan Year’s ADP
for these Eligible Participants, as elected by the Employer.

 

(2)                                  Current Year
Testing Method.  The ADP for
a Plan Year for Eligible Participants who are Highly Compensated Employees for
each Plan Year and the ADP for Eligible Participants who are Nonhighly
Compensated Employees for the Plan Year must satisfy one of the following
tests:

 

(i)                                     The ADP for a
Plan Year for Eligible Participants who are Highly Compensated Employees for
the Plan Year shall not exceed the 

 

39

 

ADP for Eligible Participants who are
Nonhighly Compensated Employees for the Plan Year multiplied by 1.25; or

 

(ii)                                  The ADP for a
Plan Year for Eligible Participants who are Highly Compensated Employees for
the Plan Year:

 

A.                                   shall not
exceed the ADP for Eligible Participants who are Nonhighly Compensated
Employees for the Plan Year multiplied by 2, and

 

B.                                     the difference
between such ADP’s is not more than 2.

 

If the Employer has elected
to use the current year testing method, that election cannot be changed unless (i) the
Plan has been using the current year testing method for the preceding five Plan
Years, or if less, the number of Plan Years the Plan has been in existence; or (ii) if
as a result of a merger or acquisition described in Code Section 410(b)(6)(C)(i),
the Employer maintains both a plan using the prior year testing method and a
plan using the current year testing method and the change is made within the
transition period described in Code Section 410(b)(6)(C)(ii).

 

A Participant is a Highly
Compensated Employee for a particular Plan Year if he meets the definition of a
Highly Compensated Employee in effect for that Plan Year. Similarly, a
Participant is a Nonhighly Compensated Employee for a particular Plan Year if
he does not meet the definition of a Highly Compensated Employee in effect for
that Plan Year.

 

The Deferral Percentage for
any Eligible Participant who is a Highly Compensated Employee for the Plan Year
and who is eligible to have Elective Deferral Contributions (and Qualified
Nonelective Contributions or Qualified Matching Contributions, or both, if
treated as Elective Deferral Contributions for purposes of the ADP Test)
allocated to his account under two or more arrangements described in Code Section 401(k) that
are maintained by the Employer or a Controlled Group member shall be determined
as if such Elective Deferral Contributions (and, if applicable, such Qualified
Nonelective Contributions or Qualified Matching Contributions, or both) were
made under a single arrangement. For Plan Years beginning on or after January 1,
2006, if a Highly Compensated Employee participates in two or more cash or
deferred arrangements of the Employer or of a Controlled Group member that have
different plan years, all Elective Deferral Contributions made during the Plan
Year shall be aggregated. For Plan Years beginning before January 1, 2006,
all such cash or deferred arrangements ending with or within the same calendar
year shall be treated as a single arrangement. The foregoing notwithstanding,
certain plans shall be treated as separate if mandatorily disaggregated under
the regulations of Code Section 401(k).

 

40

 

In the event this Plan
satisfies the requirements of Code Section 401(k), 401(a)(4), or 410(b) only
if aggregated with one or more other plans, or if one or more other plans
satisfy the requirements of such Code sections only if aggregated with this
Plan, then this section shall be applied by determining the Deferral Percentage
of Employees as if all such plans were a single plan. If more than 10 percent
of the Employer’s Nonhighly Compensated Employees are involved in a plan
coverage change as defined in section 1.401(k)-2(c)(4) of the regulations,
then any adjustments to the Nonhighly Compensated Employee ADP for the prior
year shall be made in accordance with such regulations if the Employer has
elected to use the prior year testing method. Plans may be aggregated in order
to satisfy Code Section 401(k) only if they have the same plan year
and use the same testing method for the ADP Test.

 

For purposes of the ADP
Test, Elective Deferral Contributions, Qualified Nonelective Contributions, and
Qualified Matching Contributions must be made before the end of the 12-month
period immediately following the Plan Year to which the contributions relate.

 

If the Plan Administrator
should determine during the Plan Year that the ADP Test is not being met, the
Plan Administrator may limit the amount of future Elective Deferral
Contributions of the Highly Compensated Employees.

 

Notwithstanding any other
provisions of this Plan, Excess Contributions, plus any income and minus any
loss allocable thereto, shall be distributed no later than 12 months after the
last day of a Plan Year to Participants to whose Accounts such Excess
Contributions were allocated for such Plan Year, except to the extent such
Excess Contributions are classified as Catch-up Contributions. Excess Contributions
are allocated to the Highly Compensated Employees with the largest amounts of
employer contributions taken into account in calculating the ADP Test for the
year in which the excess arose, beginning with the Highly Compensated Employee
with the largest amount of such employer contributions and continuing in
descending order until all of the Excess Contributions have been allocated. For
Plan Years beginning on or after January 1, 2006, if a Highly Compensated
Employee participates in two or more cash or deferred arrangements of the
Employer or of a Controlled Group member, the amount distributed shall not
exceed the amount of the employer contributions taken into account in
calculating the ADP test and made to this Plan for the year in which the excess
arose. If Catch-up Contributions are allowed for the Plan Year being tested, to
the extent a Highly Compensated Employee has not reached his Catch-up
Contribution limit under the Plan for such year, Excess Contributions allocated
to such Highly Compensated Employee are Catch-up Contributions and will not be
treated as Excess Contributions. If such excess amounts (other than Catch-up
Contributions) are distributed more than 2 1/2 months after the last day of the
Plan Year in which such excess amounts arose, a 10 percent excise tax shall be
imposed on the employer maintaining the plan with respect to such amounts.

 

41

 

Excess Contributions shall
be treated as Annual Additions, as defined in the CONTRIBUTION LIMITATION SECTION of
this article, even if distributed.

 

The Excess Contributions
shall be adjusted for any income or loss. The income or loss allocable to such
Excess Contributions allocated to each Participant shall be equal to the income
or loss allocable to the Participant’s Elective Deferral Contributions (and, if
applicable, Qualified Nonelective Contributions or Qualified Matching
Contributions, or both) for the Plan Year in which the excess occurred
multiplied by a fraction. The numerator of the fraction is the Excess
Contributions. The denominator of the fraction is the closing balance without
regard to any income or loss occurring during such Plan Year (as of the end of
such Plan Year) of the Participant’s Account resulting from Elective Deferral
Contributions (and Qualified Nonelective Contributions or Qualified Matching
Contributions, or both, if such contributions are included in the ADP Test).

 

For purposes of determining
income or loss on Excess Contributions for Plan Years beginning on or after January 1,
2008, no adjustment shall be made for income or loss for the gap period.

 

Excess Contributions
allocated to a Participant shall be distributed from the Participant’s Account
resulting from Elective Deferral Contributions. If such Excess Contributions
exceed the amount of Excess Contributions in the Participant’s Account
resulting from Elective Deferral Contributions, the balance shall be
distributed from the Participant’s Account resulting from Qualified Matching
Contributions (if applicable) and Qualified Nonelective Contributions,
respectively.

 

For taxable years beginning
after December 31, 2005, distribution of Excess Contributions shall be
made on a pro rata basis from the Participant’s Account resulting from Pre-tax
Elective Deferral Contributions and Roth Elective Deferral Contributions in the
same proportion that such Contributions were made for the applicable year.

 

Any Matching Contributions
that were based on the Elective Deferral Contributions distributed as Excess
Contributions, plus any income and minus any loss allocable thereto, shall be
forfeited.

 

(d)                                 ACP Test.  As of the end of each Plan Year, the Plan
must satisfy the ACP Test. The ACP Test shall be satisfied using the prior year
testing method or the current year testing method, as elected by the Employer.

 

(1)                                  Prior Year
Testing Method.  The ACP for
a Plan Year for Eligible Participants who are Highly Compensated Employees for
each Plan Year and the prior year’s ACP for Eligible Participants who were
Nonhighly Compensated Employees for the prior Plan Year must satisfy one of the
following tests:

 

42

 

(i)                                     The ACP for a
Plan Year for Eligible Participants who are Highly Compensated Employees for
the Plan Year shall not exceed the prior year’s ACP for Eligible Participants
who were Nonhighly Compensated Employees for the prior Plan Year multiplied by
1.25; or

 

(ii)                                  The ACP for a
Plan Year for Eligible Participants who are Highly Compensated Employees for
the Plan Year:

 

A.                                   shall not
exceed the prior year’s ACP for Eligible Participants who were Nonhighly
Compensated Employees for the prior Plan Year multiplied by 2, and

 

B.                                     the difference
between such ACPs is not more than 2.

 

If this is not a successor
plan, for the first Plan Year the Plan permits any Participant to make
Participant Contributions, provides for Matching Contributions, or both, for
purposes of the foregoing tests, the prior year’s Nonhighly Compensated
Employees’ ACP shall be 3 percent or the Plan Year’s ACP for these Eligible
Participants, as elected by the Employer.

 

(2)                                  Current Year
Testing Method. The ACP for a Plan Year for Eligible Participants
who are Highly Compensated Employees for each Plan Year and the ACP for
Eligible Participants who are Nonhighly Compensated Employees for the Plan Year
must satisfy one of the following tests:

 

(i)                                     The ACP for a
Plan Year for Eligible Participants who are Highly Compensated Employees for
the Plan Year shall not exceed the ACP for Eligible Participants who are
Nonhighly Compensated Employees for the Plan Year multiplied by 1.25; or

 

(ii)                                  The ACP for a
Plan Year for Eligible Participants who are Highly Compensated Employees for
the Plan Year:

 

A.                                   shall not
exceed the ACP for Eligible Participants who are Nonhighly Compensated
Employees for the Plan Year multiplied by 2, and

 

B.                                     the difference
between such ACPs is not more than 2.

 

If the Employer has elected
to use the current year testing method, that election cannot be changed unless (i) the
Plan has been using the current year testing method for the preceding five Plan
Years, or if less, the number of Plan Years the Plan has been in existence; or (ii) if
as a result of a merger or acquisition described in Code Section 410(b)(6)(C)(i),
the Employer maintains both a plan using the prior year testing method and a
plan using the current year testing method and the change is made within the
transition period described in Code Section 410(b)(6)(C)(ii).

 

43

 

A Participant is a Highly Compensated
Employee for a particular Plan Year if he meets the definition of a Highly
Compensated Employee in effect for that Plan Year. Similarly, a Participant is
a Nonhighly Compensated Employee for a particular Plan Year if he does not meet
the definition of a Highly Compensated Employee in effect for that Plan Year.

 

The Contribution Percentage
for any Eligible Participant who is a Highly Compensated Employee for the Plan
Year and who is eligible to have Contribution Percentage Amounts allocated to
his account under two or more plans described in Code Section 401(a) or
arrangements described in Code Section 401(k) that are maintained by
the Employer or a Controlled Group member shall be determined as if the total
of such Contribution Percentage Amounts was made under each plan and
arrangement. For Plan Years beginning on or after January 1, 2006, if a
Highly Compensated Employee participates in two or more such plans or
arrangements that have different plan years, all Contribution Percentage
Amounts made during the Plan Year shall be aggregated. For Plan Years beginning
before January 1, 2006, all such plans and arrangements ending with or
within the same calendar year shall be treated as a single plan or arrangement.
The foregoing notwithstanding, certain plans shall be treated as separate if
mandatorily disaggregated under the regulations of Code Section 401(m).

 

In the event this Plan
satisfies the requirements of Code Section 401(m), 401(a)(4), or 410(b) only
if aggregated with one or more other plans, or if one or more other plans
satisfy the requirements of such Code sections only if aggregated with this
Plan, then this section shall be applied by determining the Contribution
Percentage of Employees as if all such plans were a single plan. If more than
10 percent of the Employer’s Nonhighly Compensated Employees are involved in a
plan coverage change as defined in section 1.401(m)-2(c)(4) of the
regulations, then any adjustments to the Nonhighly Compensated Employee ACP for
the prior year shall be made in accordance with such regulations if the
Employer has elected to use the prior year testing method. Plans may be
aggregated in order to satisfy Code Section 401(m) only if they have
the same plan year and use the same testing method for the ACP Test.

 

For purposes of the ACP
Test, Participant Contributions are considered to have been made in the Plan
Year in which contributed to the Plan. Matching Contributions and Qualified
Nonelective Contributions will be considered to have been made for a Plan Year
if made no later than the end of the 12-month period beginning on the day after
the close of the Plan Year.

 

Notwithstanding any other
provisions of this Plan, Excess Aggregate Contributions, plus any income and
minus any loss allocable thereto, shall be forfeited, if not vested, or
distributed, if vested, no later than 12 months after the last day of a Plan
Year to Participants to whose Accounts such Excess Aggregate Contributions were
allocated for such Plan Year. Excess Aggregate Contributions are allocated to
the Highly Compensated Employees with the largest Contribution 

 

44

 

Percentage Amounts taken
into account in calculating the ACP Test for the year in which the excess
arose, beginning with the Highly Compensated Employee with the largest amount
of such Contribution Percentage Amounts and continuing in descending order
until all of the Excess Aggregate Contributions have been allocated. For Plan
Years beginning on or after January 1, 2006, if a Highly Compensated
Employee participates in two or more plans or arrangements of the Employer or
of a Controlled Group member that include Contribution Percentage Amounts, the
amount distributed shall not exceed the Contribution Percentage Amounts taken
into account in calculating the ACP Test and made to this Plan for the year in
which the excess arose. If such Excess Aggregate Contributions are distributed
more than 2 1/2 months after the last day of the Plan Year in which such excess
amounts arose, a 10 percent excise tax shall be imposed on the employer
maintaining the plan with respect to such amounts.

 

Excess Aggregate
Contributions shall be treated as Annual Additions, as defined in the
CONTRIBUTION LIMITATION SECTION of this article, even if distributed.

 

The Excess Aggregate
Contributions shall be adjusted for any income or loss. The income or loss
allocable to such Excess Aggregate Contributions allocated to each Participant
shall be equal to the income or loss allocable to the Participant’s
Contribution Percentage Amounts for the Plan Year in which the excess occurred
multiplied by a fraction. The numerator of the fraction is the Excess Aggregate
Contributions. The denominator of the fraction is the closing balance without
regard to any income or loss occurring during such Plan Year (as of the end of
such Plan Year) of the Participant’s Account resulting from Contribution
Percentage Amounts.

 

For purposes of determining
income or loss on Excess Aggregate Contributions for Plan Years beginning on or
after January 1, 2008, no adjustment shall be made for income or loss for
the gap period.

 

Excess Aggregate
Contributions allocated to a Participant shall be distributed from the
Participant’s Account resulting from Participant Contributions that are not
required as a condition of employment or participation or for obtaining
additional benefits from Employer Contributions. If such Excess Aggregate
Contributions exceed the balance in the Participant’s Account resulting from
such Participant Contributions, the balance shall be forfeited, if not vested,
or distributed, if vested, on a pro rata basis from the Participant’s Account
resulting from Contribution Percentage Amounts.

 

(e)                                  Employer Elections.
The Employer has made an election to use the current year testing method.

 

45

 

SECTION 3.06—401(K) SAFE HARBOR PROVISIONS.

 

(a)                                  Rules of Application.

 

(1)                                  The provisions
of this section apply on and after January 1, 2010. Any provisions
relating to the ADP Test in the EXCESS AMOUNTS SECTION of this article do
not apply for any Plan Year in which the provisions of this section apply
unless the plan is amended to revoke the 401(k) safe harbor provisions
during the Plan Year in accordance with (e) below. Any provisions relating
to the ACP Test in the EXCESS AMOUNTS SECTION of this article do not apply
with respect to Matching Contributions for any Plan Year in which the
provisions of this section apply unless the Plan is amended to revoke the 401(k) safe
harbor provisions during the Plan Year in accordance with (e) below.

 

(2)                                  The provisions
of this section shall not apply to future Plan Years unless the Plan Year is 12
months long except as provided below:

 

(i)                                     If the Plan has
a short Plan Year as a result of changing its Plan Year, provided that:

 

A.                                   the Plan
satisfied the safe harbor requirements under section 1.401(k)-3 of the
regulations and section 1.401(m)-3 of the regulations for the immediately
preceding Plan Year; and

 

B.                                     the Plan
satisfies the safe harbor requirements under section 1.401(k)-3 of the
regulations (determined without regard to paragraph (g) of that section)
and the safe harbor requirements under section 1.401(m)-3 of the regulations
(determined without regard to paragraph (h) of that section) for the
immediately following Plan Year (or the immediately following 12 months if the
immediately following Plan Year is less than 12 months).

 

(ii)                                  If the Plan has
a short Plan Year due to Plan termination, provided that the Plan satisfies the
safe harbor requirements of section 1.401(k)-3 of the regulations and section
1.401(m)-3 of the regulations through the date of termination and either:

 

A.                                   the Plan would
satisfy the requirements of section 1.401(k)-3(g) of the regulations and
section 1.401(m)-3(h) of the regulations treating the termination of the
Plan as a reduction or suspension of safe harbor matching contributions, other
than the requirement that eligible employees have a reasonable opportunity to
change the amount of their cash or deferred elections; or

 

B.                                     the Plan
termination is in connection with a transaction described in Code Section 410(b)(6)(C) or
the Employer incurs a substantial business hardship comparable to a 

 

46

 

substantial business hardship described in
Code Section 412(c).

 

(3)                                  To the extent
that any other provision of the Plan is inconsistent with the provisions of
this Section, the provisions of this section shall govern.

 

(b)                                 ADP Test Safe Harbor.

 

(1)                                  Contributions. The Plan is
satisfying the ADP Test Safe Harbor using Qualified Matching Contributions as
provided in the EMPLOYER CONTRIBUTIONS SECTION of this article.

 

(2)                                  Notice
Requirement. At least 30 days, but not more than 90 days,
before the beginning of the Plan Year, the Employer shall provide each Active
Participant a comprehensive notice of his rights and obligations under the
Plan, including a description of the Qualified Matching Contributions that will
be made to the Plan to satisfy the ADP Test Safe Harbor.

 

The notice shall be written
in a manner calculated to be understood by the average Active Participant.

 

If an Employee becomes an
Active Participant after the 90th day before the beginning of the Plan Year and
does not receive this notice for that reason, the notice must be provided no
more than 90 days before he becomes an Active Participant but not later than
the date he becomes an Active Participant.

 

(3)                                  Election
Periods. In addition to any other election periods provided under the Plan,
each Active Participant may make or modify a deferral election during the
30-day period immediately following receipt of the notice described in (2) above.

 

(c)                                  ACP Test Safe Harbor.  Matching Contributions are limited as
provided in the EMPLOYER CONTRIBUTIONS SECTION of this article.

 

(d)                                 ACP Test.

 

(1)                                  Application.  The Plan does not provide for Participant
Contributions, as defined in the EXCESS AMOUNTS SECTION of this article.
Any provisions relating to the ACP Test in the EXCESS AMOUNTS SECTION of
this article shall not apply for any Plan Year in which the provisions of this
section apply unless the Plan is amended to revoke the 401(k) safe harbor
provisions during the Plan Year in accordance with (e) below.

 

(e)                                  Revocation of 401(k) Safe Harbor Provisions. The Employer may amend the Plan to revoke the 401(k) safe
harbor provisions during any Plan Year. Active Participants shall be provided a
supplemental notice that explains the 

 

47

 

consequences
of the amendment, informs them of the effective date of the elimination of the
Qualified Matching Contributions and gives them a reasonable opportunity
(including a reasonable period) to change the amount of their Elective Deferral
Contributions. The effective date of the revocation cannot be earlier than the
later of (i) 30 days after the Active Participants are given such notice,
and (ii) the date the amendment revoking such provisions is adopted.

 

If the 401(k) safe
harbor provisions are revoked, the Employer shall perform the ADP Test and ACP
Test for the entire Plan Year using the current year testing method described
in the EXCESS AMOUNTS SECTION of this article. The Employer shall make the
Qualified Matching Contributions for the period prior to the effective date of
the revocation.

 

(f)                                    Top-heavy Rules.  For Plan Years beginning after December 31,
2001, the Plan is deemed to not be a Top-heavy Plan, as defined in the
DEFINITIONS SECTION of ARTICLE XI, for a Plan Year if the exception under
Code Section 416(g)(4)(H) applies for such year.

 

SECTION 3.07—PROHIBITED ALLOCATIONS OF QUALIFYING
EMPLOYER SECURITIES.

 

Notwithstanding any contrary
provision of the Plan, Qualifying Employer Securities will not be allocated
under the following circumstances.

 

(a)                                  Sale under Code Section 1042. Qualifying Employer Securities that have been acquired by
the Plan in a sale to which Code Section 1042 applies shall not be
allocated during the non-allocation period directly or indirectly under the
Plan (or any qualified plan of any Employer) to the Accounts of:

 

(1)                                  The individual
who makes the election under Code Section 1042.

 

(2)                                  Any individual
who is related (within the meaning of Code Section 267(b)) to the
individual who makes the election under Code Section 1042. However, this
paragraph shall not apply to lineal descendents of the individual who makes the
election under Code Section 1042, provided that the aggregate amount
allocated to the benefit of such lineal descendents during the non-allocation
period does not exceed more than five percent (5%) of the Qualifying Employer
Securities (or amounts allocated in lieu thereof) held by the Plan which are
attributable to a sale to the Plan by any person related to such descendents
(within the meaning of Code Section 267(c)(4)) in a transaction subject to
Code Section 1042.

 

The “non-allocation period”
is the period for this purpose beginning on the date of the sale of the
Qualifying Employer Securities to the Plan and ending on the later of the date
which is ten (10) years after the date of sale or the date of the allocation
attributable to the final payment of an Exempt Loan incurred in connection with
such sale to the Plan.

 

48

 

Further, notwithstanding any
contrary provision of the Plan, Qualifying Employer Securities that have been
acquired by the Plan in a sale to which Code Section 1042 applies shall
not be allocated, during or after the non-allocation period, directly or
indirectly under the Plan (or any qualified plan of any Employer) to the
Account of any individual who owns (after application of the aggregation rules of
Code Section 318(a) applied without regard to the employee trust
exception in Code Section 318(a)(2)(B)(i)) more than twenty five percent
(25%) of any class of outstanding stock of any Employer, or the total value of
any class of outstanding stock of the Employer.

 

(b)                                 S-Corporation Shareholders.
For Plan Years beginning after December 31, 2004, if the Plan holds
Qualifying Employer Securities of an S Corporation, no allocations of such
Qualifying Employer Securities shall be made to disqualified persons during any
non-allocation year. The terms “disqualified person” and non-allocation year”
shall have the meaning set forth under Code Section 409(p).

 

In accordance with Code Section 409(p),
no portion of the assets of the Plan attributable to (or allocable in lieu of) “employer
securities” (within the meaning of Code Section 409(I)) consisting of
stock in an S corporation may, during a “non-allocation year,” accrue (or be
allocated directly or indirectly under any plan of the Employer or an
affiliate, including the ESOP, meeting the requirements of Code Section 401(a))
for the benefit of any individual who is a “disqualified person” as described
in Code Section 409(p)(4), or any “family group” constituting a “disqualified
person” as described in Code Section 409(p). For this purpose, a “non-allocation
year” is any plan year of an employee stock ownership plan if, at any time
during such plan year, (a) the plan holds employer securities consisting
of a stock in an S corporation and (b) disqualified persons own (within
the meaning of Section 409(p)) (i) at least 50% of the number of
outstanding shares of stock in the S corporation (including deemed owned ESOP
shares) or (ii) at least 50% of the sum of (1) the outstanding shares
of stock in the S corporation (including deemed owned ESOP shares) plus (2) the
shares of synthetic equity in the S corporation owned by disqualified persons.

 

In addition, no Participant
shall be entitled to any allocation for a Plan Year which, if made pursuant to
any other provision of this Plan or by operation of law, would cause the Plan
to have a non-allocation year. Any amount that would constitute an
impermissible allocation as described in the regulations under Section 409(p) but
for the application of the foregoing sentence shall be allocated to all other
Participants entitled to share in Employer contributions for said Plan Year in
proportion to the Compensation of each such Participant to the Compensation of
all such Participants for said Plan Year, subject to other limitations of the
Plan.

 

If, at any date during a
Plan Year, but for this Section 3.05, the Plan Year would be considered a
non-allocation year (for any reason), then Qualifying Employer Securities in an
amount sufficient to avoid the Plan Year being considered a non-allocation year
shall remain a part of the Plan but shall not be considered as being 

 

49

 

transferred to and held by a
profit sharing plan (a non-ESOP portion of this Plan) and not governed by the
provisions of the Plan which are unique to employee stock ownership plans,
other than any applicable non-lapse provisions. The profit sharing plan shall
be reported as such on the Plan’s annual information return for the Plan Year
and for any Plan Year thereafter that the profit sharing plan contains any
assets. The profit sharing plan shall be an eligible individual account plan as
defined in ERISA Section 407(d)(3), permitted to acquire and hold
qualifying employer securities (as defined in ERISA Section 407(d)(5))
with a value of up to 100 percent of the fair market value of the assets of the
profit sharing plan.

 

The foregoing preventive
measures shall be done in a manner which is uniform and nondiscriminatory. In
the event the foregoing measures would be equally effective if taken with
respect to two or more Participants then, except as otherwise implemented by
the Employer, the measures shall be taken pro-rata as to such two or more
Participants.

 

50

 

ARTICLE IV

INVESTMENT OF CONTRIBUTIONS

 

SECTION 4.01—INVESTMENT AND TIMING OF CONTRIBUTIONS.

 

The handling of
Contributions and Plan assets is governed by the provisions of the Trust
Agreement and any other relevant document, such as an Annuity Contract (for the
purposes of this paragraph alone, the Trust Agreement and such other documents
will each be referred to as a “document” or collectively as the “documents”),
duly entered into by or with regard to the Plan that govern such matters. To
the extent permitted by the documents, the parties named below shall direct the
Contributions for investment in any of the investment options or investment
vehicles available to the Plan under or through the documents, and may request
the transfer of amounts resulting from those Contributions between such
investment options and investment vehicles. A Participant may not direct the
investment of all or any portion of his Account in collectibles. Collectibles
mean any work of art, rug or antique, metal or gem, stamp or coin, alcoholic
beverage, or other tangible personal property specified by the Secretary of the
Treasury. However, for tax years beginning after December 31, 1997,
certain coins and bullion as provided in Code Section 408(m)(3) shall
not be considered collectibles. To the extent that a Participant who has the
ability to provide investment direction fails to give timely investment
direction, the amount for which no investment direction is in place shall be
invested in such investment options and investment vehicles as provided in the
service and expense agreement or such other documents duly entered into by or
with regard to the Plan that govern such matters. If the Primary Employer has
investment direction, the Contributions shall be invested ratably in the investment
options and investment vehicles available to the Plan under or through the
documents. The Primary Employer shall have investment direction for amounts
that have not been allocated to Participants. To the extent an investment is no
longer available, the Primary Employer may require that amounts currently held
in such investment be reinvested in other investments.

 

At least annually, the Named
Fiduciary shall review all pertinent Employee information and Plan data in
order to establish the funding policy of the Plan and to determine appropriate
methods of carrying out the Plan’s objectives. The Named Fiduciary shall inform
the Trustee and any Investment Manager of the Plan’s short-term and long-term
financial needs so the investment policy can be coordinated with the Plan’s
financial requirements.

 

(a)                                  Elective Deferral Contributions: The Participant shall
direct the investment of Elective Deferral Contributions and transfer of
amounts resulting from those Contributions.

 

(b)                                 Employer Contributions other than Elective Deferral
Contributions or ESOP Discretionary Contributions: The Participant shall direct
the investment of such Employer Contributions and transfer of amounts resulting
from those Contributions. The Employer may choose to contribute or direct the
investment of Employer Contributions in the form of Qualifying Employer
Securities.

 

51

 

(c)                                  Rollover Contributions: The Participant shall direct the
investment of Rollover Contributions and transfer of amounts resulting from
those Contributions.

 

(d)                                 ESOP Discretionary Contributions: The Participant shall
direct the investment of ESOP Discretionary Contributions and transfer of
amounts resulting from those Contributions. The Employer may choose to
contribute or direct the investment of Employer Contributions in the form of
Qualifying Employer Securities or for the repayment of an Exempt Loan.

 

However, the Named Fiduciary
may delegate to the Investment Manager investment direction for Contributions
and amounts that are not subject to Participant direction.

 

The Employer shall pay to
the Insurer or Trustee, as applicable, the Qualified Matching Contributions and
Qualified Nonelective Contributions for each Plan Year not later than the end
of the 12-month period immediately following the Plan Year for which they are
deemed to be paid.

 

All Contributions are
forwarded by the Employer to (i) the Trustee to be deposited in the Trust
Fund or otherwise invested by the Trustee in accordance with the relevant
documents; or (ii) the Insurer to be deposited under the Annuity Contract,
as applicable.

 

SECTION 4.02—INVESTMENT IN QUALIFYING EMPLOYER
SECURITIES.

 

(a)                                  ESOP Designation.
The portion of the Plan that consists of Participants’ Accounts holding
Qualified Employer Securities and the Unallocated Reserve is an employee stock
ownership plan (within the meaning of Code Section 4975(e)(7)) and is
designed to invest primarily in Qualified Employer Securities. All shares of
Qualified Employer Securities held under the Plan will be held in the Trust
Fund in the name of the Trustee or the nominee of the Trustee. The Employer may
make contributions in the form of cash and/or Qualified Employer Securities.

 

(b)                                 Diversification.
Each Participant is permitted to elect to direct any publicly traded qualifying
employer securities (as defined in Code Section 401(a)(35(G)(v)) held in
his Account under the Plan to be reinvested in other investment options offered
under the Plan with respect to the portion of his Account that is subject to
Code Section 401(a)(35)(B) or (C). The plan sponsor may permit
diversification of amounts invested in qualifying employer securities earlier
than required as long as the earlier time period is applied consistently to all
employees.

 

The Plan shall offer at
least three investment options, other than Qualifying Employer Securities, to
which the applicable individual may direct all or any portion of his Account
invested in Qualifying Employer Securities, and each investment option must be
diversified and have materially different risk and return characteristics that
satisfy the requirements of section 2550.404c-1(b)(3) of the Department of
Labor regulations. The Plan may limit the time for divestment and reinvestment
to periodic, reasonable opportunities occurring no less frequently than
quarterly. The Plan may not impose any restrictions or conditions 

 

52

 

with respect to the
investment of Qualifying Employer Securities that are not imposed on the investment
options offered under the Plan.

 

(c)                                  Dividends.
For purposes of determining dividends, shares of Qualified Employer Securities
shall be deemed to be credited to the Account of a Participant, Beneficiary or
Alternate Payee as of the record date of a dividend if they are credited to his
Account as of the close of the day prior to the ex-date of such dividend (or,
if the ex-date is after the record date, as of the close of the day prior to
the record date).

 

Dividends paid on Qualifying
Employer Securities shall be 100% vested when made.

 

(1)                                  Stock Dividend. In the event
of any stock dividend or any stock split, such dividend or split shall be
credited to the Accounts based on the number of shares of Qualified Employer
Securities credited to each Account as of the record date of such dividend or
split.

 

(2)                                  Cash Dividend. As determined
by the Employer, cash dividends paid on shares of Qualified Employer Securities
credited to an Account of a Participant, Beneficiary or Alternate Payee as of
the record date of such dividend will be either (i) paid in cash directly
to Participants, (ii) paid to the Plan and distributed to Participants
within 90 days after the end of the Plan Year in which such dividend was paid
to the Plan, (iii) applied to repay an Exempt Loan then outstanding (but
only if such Qualifying Employer Security is attributable to such Exempt Loan);
(iv) made subject to the election procedure described in paragraph (3) below;
or (v) retained in the Trust and treated as net income of the Trust. The
Employer shall not direct that dividends paid on shares of Qualified Employer
Securities held in the Participants’ Accounts be applied to repay an Exempt
Loan, unless the shares of Qualified Employer Securities released from the
Unallocated Reserve will have a value at least sufficient to allow for the full
allocation required in step one under the allocation of Discretionary
Contributions provisions of the ALLOCATIONS SECTION of Article 3 (the
Employer may make Discretionary Contributions necessary to allow for such full
allocation).

 

In addition, dividends or S
corporation distributions attributable to Qualified Employer Securities held in
the Unallocated Suspense Account (as a result of an Exempt Loan) shall be
allocated to Participants’ Accounts as earnings of the Trust available to repay
an Exempt Loan to the extent allowed by ERISA. Such earnings shall be allocated
in proportion to the shares of Qualified Employer Securities held in a
Participant’s Account as of the record date of the dividend or S corporation
distribution.

 

53

 

(3)                                  Cash Dividend
Election. If the Employer elects, cash dividends paid on
shares of Qualified Employer Securities credited to an Account of a
Participant, Beneficiary or Alternate Payee as of the record date of such
dividend will be:

 

A.                                   Paid to the
Participant, Beneficiary or Alternate Payee if so elected under the procedure
outlined below; or

 

B.                                     Otherwise,
added to the balance of his Account as soon as administratively practicable
after such dividends are paid into the Trust Fund.

 

A Participant, Beneficiary
or Alternate Payee may elect to have cash dividends on shares of Qualified
Employer Securities credited to his Account either paid to him in cash or added
to the balance of his Account and reinvested in Qualified Employer Securities.
Cash dividends that the Participant, Beneficiary or Alternate Payee elects to
receive in cash will be paid on or as soon as administratively practicable
following the record date of such dividend. Cash dividends that the
Participant, Beneficiary or Alternate Payee elects to have reinvested in
Qualified Employer Securities will be credited to a separate source account
that reflects only such cash dividends, and shall be reinvested in additional shares
of Qualified Employer Securities on or as soon as administratively practicable
following the record date of such dividend, which may be after the end of the
Plan Year once Qualified Employer Securities can be valued for acquisition
purposes.

 

Shares in Qualified Employer
Securities shall be deemed to be credited to the Account of a Participant,
Beneficiary or Alternate Payee as of the record date of a dividend if they are
credited to his Account as of the close of the day prior to the ex-date of such
dividend (or, if the ex-date is after the record date, as of the close of the
day prior to the record date).

 

An election hereunder must
be made in such manner and in accordance with such rules as may be
prescribed for this purpose by the Plan Administrator (including by means of a
voice response or other electronic system under circumstances so authorized by
the Plan Administrator). In the absence of an affirmative election received by
the deadline established for this purpose by the Plan Administrator (which
shall be no less than thirty (30) days after notice of the dividend election is
provided), a Participant, Beneficiary or Alternate Payee will be deemed to have
elected to have cash dividends added to his Account and reinvested in Qualified
Employer Securities. To the extent so prescribed by the Plan Administrator, an
election hereunder will be “evergreen” - that is, it will continue to apply
until changed by the Participant, Beneficiary or Alternate Payee. Under the rules prescribed
by the Plan Administrator, a Participant, Beneficiary or Alternate Payee shall
be allowed to revise his 

 

54

 

election no less than once a
year, and if there is a change in the terms of the Plan governing the manner in
which dividends are paid or distributed, a Participant, Beneficiary or
Alternate Payee shall be allowed a reasonable opportunity to make a new
election.

 

The Account of a
Participant, Beneficiary or Alternate Payee may be charged with the
distribution costs (for example, the actual check-writing fee) of any
distribution made at his election under this Section.

 

(d)                                 Authorization for Exempt Loan.
The Employer may direct that the Plan engage in an Exempt Loan that satisfies
the following requirements:

 

(1)                                  Lender. The Exempt
Loan may be made by the Employer or any lender acceptable to the Employer, and
may be made or guaranteed by a party in interest (as defined in ERISA Section 3(14))
or a disqualified person (as defined in Code Section 4975).

 

(2)                                  Use of Loan
Proceeds. The Exempt Loan must be used within a reasonable
time after receipt to acquire shares of Qualifying Employer Securities for the
Unallocated Reserve or to repay a prior Exempt Loan (or for any combination of
the foregoing purposes).

 

(3)                                  No Recourse
Against Trust Fund. The Exempt Loan must be without recourse against
the Plan except that:

 

(i)                                     The Qualifying
Employer Securities acquired with the proceeds of the Exempt Loan may be
pledged or otherwise used to secure repayment of the Exempt Loan, and the Qualifying
Employer Securities acquired with the proceeds of a prior Exempt Loan which is
repaid with the proceeds of the Exempt Loan may be pledged or otherwise used to
secure repayment of the Exempt Loan, and

 

(ii)                                  Any
Discretionary Contributions that are made for the purpose of satisfying the
obligations under the Exempt Loan (and earnings thereon) may be pledged or
otherwise used to secure repayment of the Exempt Loan, and

 

(iii)                               The earnings
attributable to shares of Qualifying Employer Securities acquired with the
proceeds of an Exempt Loan may be used to repay that Exempt Loan or any renewal
or extension thereof, and

 

(iv)                              The earnings
attributable to unallocated shares of Qualifying Employer Securities that were
acquired with the proceeds of an Exempt Loan may be pledged or otherwise used
as security for another Exempt Loan.

 

55

 

(4)                                  Term of Loan. The Exempt
Loan must provide for principal and interest to be paid over a specific term,
and not payable upon demand except in the event of default.

 

(5)                                  Release of
Shares from Unallocated Reserve. The number of shares
released each Plan Year shall equal “A” multiplied by “B” where:

 

	
  “A”

  	
  =

  	
  the
  number of shares held in the Unallocated Reserve immediately before the release;

  
	
   

  	
   

  	
   

  
	
  “B”

  	
  =

  	
  a
  fraction, the numerator of which is equal to the principal and interest paid
  on the Exempt Loan for the Plan Year and the denominator of which is equal to
  the sum of the numerator and the total principal and interest scheduled to be
  paid on the Exempt Loan for all future Plan Years (without consideration of
  possible extensions or renewal periods).

  

 

If the interest rate under
the Exempt Loan is variable, the amount of interest to be paid in future Plan
Years shall be calculated by using the interest rate in effect on the last day
of the current Plan Year.

 

Alternatively, if the
conditions of Treasury Regulation 54.4975-7(b)(8)(ii) are met, “B” may be
calculated as a fraction, the numerator of which is equal to the principal paid
on the Exempt Loan for the Plan Year and the denominator of which is equal to
the sum of the numerator and the total principal scheduled to be paid on the
Exempt Loan for all future Plan Years (without consideration of possible
extensions or renewal periods).

 

If an Exempt Loan is repaid
as a result of a refinancing by another Exempt Loan, such repayment shall not
be considered a repayment under this subsection and the release of shares
thereafter shall be determined by aggregating principal and interest on the loan
and any refinancing of the loan.

 

(6)                                  Interest Rate. The Exempt
Loan must bear interest at a fixed or variable rate that is not in excess of a
reasonable rate of interest considering all relevant factors (including, but
not limited to, the amount and duration of the loan, the security given, the
guarantees involved, ,the credit standing of the Plan, the Employer, and the
guarantors, and the generally prevailing rates of interest).

 

(7)                                  Default. The Exempt
Loan must provide that, in the event of default, the fair market value of
Qualifying Employer Securities and other assets which can be transferred in
satisfaction of the loan must not exceed the amount of the loan. If the lender
is a party in interest or disqualified person, the loan must provide for a transfer
of Plan assets upon default 

 

56

 

only upon and to the extent of the failure of
the Plan to satisfy the payment schedule of the Exempt Loan.

 

(8)                                  Restrictions. Unless
required under Code Section 409(h), no options, puts, call, rights of
first refusal or other restrictions on alienability will attach to any shares
of Qualifying Employer Securities acquired with the proceeds of an Exempt Loan
and held in the Trust Fund or distributed from the Plan, whether or not this
Plan continues to be an employee stock ownership plan with the meaning of Code Section 4975(e)(7).

 

(e)                                  Valuation of Qualifying Employer Securities. For purposes of determining the annual valuation of the
Plan, and for reporting to Participants and regulatory authorities, the assets
of the Plan shall be valued at least annually on the Valuation Date which
corresponds to the last day of the Plan Year. The fair market value of
Qualifying Employer Securities shall be determined on such Valuation Date. The
prices of Qualifying Employer Securities as of the date of the transaction
shall apply for purposes of valuing distributions and other transactions of the
Plan to the extent such value is representative of the fair market value of
such securities in the opinion of the Plan Administrator. The value of a
Participant’s Account held in the Qualifying Employer Securities Fund may be
expressed in shares of Qualifying Employer Securities.

 

If the Qualifying Employer
Securities are not publicly traded, or if an extremely thin market exists for
such securities so that reasonable valuation may not be obtained from the
market place, then such securities must be valued at least annually by an
independent appraiser who is not associated with the Employer, the Plan
Administrator, the Trustee, or any person related to any fiduciary under the
Plan. The independent appraiser may be associated with a person who is merely a
contract administrator with respect to the Plan, but who exercises no
discretionary authority and is not a plan fiduciary.

 

If there is a public market
for Qualifying Employer Securities of the type held by the Plan, then the Plan
Administrator may use as the value of the securities the price at which
securities trade in such market. If the Qualifying Employer Securities do not
trade on the relevant date, or if the market is very thin on such date, then
the Plan Administrator may use for the valuation the next preceding trading day
on which the trading prices are representative of the fair market value of such
securities in the opinion of the Plan Administrator.

 

(f)                                    Purchases or Sales of Qualifying Employer Securities. The Plan Administrator may direct the Trustee to sell,
resell, or otherwise dispose of Qualifying Employer Securities to any person,
including the Employer, provided that any such sales to any disqualified person
or party-in-interest, including the Employer, will be made at not less than the
fair market value and no commission will be charged. Any such sale shall be
made in conformance with ERISA Section 408(e). If it is necessary to
purchase Qualifying Employer Securities for the Trust Fund, such purchase may
be on the open market or from the Employer or any member of the 

 

57

 

Controlled
Group. All purchases of Qualifying Employer Securities shall be made at a
price, or prices, which, in the judgement of the Plan Administrator, do not
exceed the fair market value of such securities. If shares are purchased from
or sold to the Employer or a member of the Controlled Group, the purchase or
sale will be made at the price determined under paragraph (e) above.

 

In the event that the
Trustee acquires Qualifying Employer Securities by purchase from a “disqualified
person” as defined in Code Section 4975(e)(2) or from a “party-in-interest”
as defined in ERISA Section 3(14), t he terms of such purchase shall
contain the provision that in the event there is a final determination by the
Internal Revenue Service, the Department of Labor, or court of competent
jurisdiction that the fair market value of such securities as of the date of
purchase was less than the purchase price paid by the Trustee, then the seller
shall pay or transfer, as the case may be, to the Trustee an amount of cash or
shares of Qualifying Employer Securities equal in value to the difference
between the purchase price and such fair market value for all such shares. In
the event that cash or shares of Qualifying Employer Securities are paid or
transferred to the Trustee under this provision, such securities shall be
valued at their fair market value as of the date of such purchase, and interest
at a reasonable rate from the date of purchase to the date of repayment or
transfer shall be paid by the seller on the amount of cash paid.

 

(g)                                 Compliance with Securities Laws. The Employer is responsible for compliance with any
applicable Federal or state securities law with respect to all aspects of the
Plan except for the Trustee’s obligation to report its ownership of Qualifying
Employer Securities. If the Qualifying Employer Securities or interest in this
Plan are required to be registered in order to permit investment in the
Qualifying Employer Securities Fund as provided in this section, then such
investment will not be effective until the later of the effective date of the
Plan or the date such registration or qualification is effective. The Employer,
at its own expense, will take or cause to be taken any and all such actions as
may be necessary or appropriate to effect such registration or qualification.
Further, if the Trustee is directed to dispose of any Qualifying Employer
Securities held under the Plan under circumstances which require registration
or qualification of the securities under applicable Federal or state securities
laws, then the Employer will, at its own expense, take or cause to be taken any
and all such action as may be necessary or appropriate to effect such
registration or qualification. The Employer is responsible for all compliance
requirements under Section 16 of the Securities Act.

 

58

 

ARTICLE V

BENEFITS

 

SECTION 5.01—RETIREMENT BENEFITS.

 

On a Participant’s
Retirement Date, his Vested Account shall be distributed to him according to
the distribution of benefits provisions of Article VI and the provisions
of the SMALL AMOUNTS SECTION of Article X.

 

SECTION 5.02—DEATH BENEFITS.

 

If a Participant dies before
his Annuity Starting Date, his Vested Account shall be distributed according to
the distribution of benefits provisions of Article VI and the provisions
of the SMALL AMOUNTS SECTION of Article X.

 

SECTION 5.03—VESTED BENEFITS.

 

If an Inactive Participant’s
Vested Account is not payable under the SMALL AMOUNTS SECTION of Article X,
he may elect, but is not required, to receive a distribution of any part of his
Vested Account after he has a Severance from Employment. A distribution under
this paragraph shall be a retirement benefit and shall be distributed to the
Participant according to the distribution of benefits provisions of Article VI.

 

A Participant may not elect
to receive a distribution under the provisions of this section after he again
becomes an Employee until he subsequently has a Severance from Employment and
meets the requirements of this section.

 

If an Inactive Participant
does not receive an earlier distribution, upon his Retirement Date or death,
his Vested Account shall be distributed according to the provisions of the
RETIREMENT BENEFITS SECTION or the DEATH BENEFITS SECTION of this
article.

 

SECTION 5.04—WHEN BENEFITS START.

 

(a)                                  Unless otherwise elected, benefits shall begin before the
60th day following the close of the Plan Year in which the latest date below
occurs:

 

(1)                                  The date the
Participant attains age 65 (or Normal Retirement Age, if earlier).

 

(2)                                  The 10th
anniversary of the Participant’s Entry Date.

 

(3)                                  The date the
Participant terminates service with the Employer.

 

Notwithstanding the
foregoing, the failure of a Participant to consent to a distribution while a
benefit is immediately distributable, within the meaning of the ELECTION
PROCEDURES SECTION of Article VI, shall be deemed to be an election
to defer the start of benefits sufficient to satisfy this section.

 

59

 

The Participant may elect to
have benefits begin after the latest date for beginning benefits described
above, subject to the following provisions of this section. The Participant
shall make the election in writing. Such election must be made before his
Normal Retirement Date or the date he has a Severance from Employment, if
later. The Participant shall not elect a date for beginning benefits or a form
of distribution that would result in a benefit payable when he dies which would
be more than incidental within the meaning of governmental regulations.

 

Benefits shall begin on an
earlier date if otherwise provided in the Plan. For example, the Participant’s
Retirement Date or Required Beginning Date, as defined in the DEFINITIONS SECTION of
Article VII.

 

(b)                                 The Participant’s Vested Account that results from Elective
Deferral Contributions, Qualified Matching Contributions, and Qualified
Nonelective Contributions may not be distributed earlier than Severance from
Employment (separation from service, for Plan Years beginning before January 1,
2002), death, or disability. Such amount may also be distributed upon:

 

(1)                                  Termination of
the Plan, as permitted in Article VIII.

 

(2)                                  The attainment
of age 59 1/2 as permitted in the WITHDRAWAL BENEFITS SECTION of this
article or in the definition of Normal Retirement Date in the DEFINITIONS SECTION of
Article I.

 

Elective Deferral
Contributions may also be distributed upon the hardship of the Participant or
as a Qualified Reservist Distribution as permitted in the WITHDRAWAL BENEFITS SECTION of
this article.

 

All distributions that may
be made pursuant to one or more of the foregoing distributable events will be a
retirement benefit and shall be distributed to the Participant according to the
distribution of benefits provisions of Article VI. In addition,
distributions that are triggered by the termination of the Plan must be made in
a lump sum. A lump sum shall include a distribution of an annuity contract.

 

SECTION 5.05—WITHDRAWAL BENEFITS.

 

A Participant may withdraw
any part of his Vested Account resulting from Rollover Contributions. A
Participant may make such a withdrawal at any time.

 

A Participant who has
attained age 59 1/2 may withdraw any part of his Vested Account resulting from
the following Contributions:

 

Elective Deferral Contributions

Matching Contributions

Qualified Nonelective Contributions

Discretionary Contributions (on and after January 1, 2010) 

ESOP Discretionary Contributions

 

60

 

A Participant may make such
a withdrawal at any time.

 

A Participant may withdraw
any part of his Vested Account resulting from the following Contributions:

 

Elective Deferral
Contributions

 

in the event of hardship due
to an immediate and heavy financial need. Withdrawals from the Participant’s
Account resulting from Elective Deferral Contributions shall be limited to the
amount of the Participant’s Elective Deferral Contributions.

 

Immediate and heavy
financial need shall be limited to: (i) expenses incurred or necessary for
medical care that would be deductible under Code Section 213(a) (determined
without regard to whether the expenses exceed 7.5% of adjusted gross income); (ii) the
purchase (excluding mortgage payments) of a principal residence for the
Participant; (iii) payment of tuition, related educational fees, and room
and board expenses, for the next 12 months of post-secondary education for the
Participant, his spouse, children, or dependents (as defined in Code Section 152
without regard to Code Sections 152(b)(1), (b)(2), and (d)(1)(B)); (iv) payments
necessary to prevent the eviction of the Participant from, or foreclosure on
the mortgage of, the Participant’s principal residence; (v) payments for
funeral or burial expenses for the Participant’s deceased parent, spouse,
child, or dependent (as defined in Code Section 152 without regard to Code
Section 152(d))1)(B)); (vi) expenses to repair damage to the
Participant’s principal residence that would qualify for a casualty loss
deduction under Code Section 165 (determined without regard to whether the
loss exceeds 10% of adjusted gross income); or (vii) any other
distribution which is deemed by the Commissioner of Internal Revenue to be made
on account of immediate and heavy financial need as provided in Treasury
regulations. Immediate and heavy financial need shall also include expenses
described in (i), (iii), and (v) (relating to medical, tuition, and
funeral expenses, respectively) of a Primary Beneficiary as of November 15,
2009.

 

No withdrawal shall be
allowed which is not necessary to satisfy such immediate and heavy financial
need. Such withdrawal shall be deemed necessary only if all of the following
requirements are met: (i) the distribution is not in excess of the amount
of the immediate and heavy financial need (including amounts necessary to pay
any Federal, state, or local income taxes or penalties reasonably anticipated
to result from the distribution); (ii) the Participant has obtained all
distributions, other than hardship distributions, and all nontaxable loans
currently available under all plans maintained by the Employer; and (iii) the
Plan, and all other plans maintained by the Employer, provide that the
Participant’s elective contributions and participant contributions will be suspended
for at least six months after receipt of the hardship distribution. The Plan
will suspend elective contributions and participant contributions for six
months as provided in the preceding sentence. A Participant shall not cease to
be an Eligible Participant, as defined in the EXCESS AMOUNTS SECTION of Article III,
merely because his elective contributions or participant contributions are
suspended.

 

Effective as of November 15,
2009, a Participant may withdraw any part of his Vested Account resulting from
Elective Deferral Contributions if such distribution would be a Qualified
Reservist Distribution.

 

61

 

A request for withdrawal
shall be made in such manner and in accordance with such rules as the Employer
will prescribe for this purpose (including by means of voice response or other
electronic means under circumstances the Employer permits). Withdrawals shall
be a retirement benefit and shall be distributed to the Participant according
to the distribution of benefits provisions of Article VI. A forfeiture
shall not occur solely as a result of a withdrawal.

 

SECTION 5.06—DISTRIBUTIONS UNDER QUALIFIED DOMESTIC
RELATIONS ORDERS.

 

The Plan specifically
permits distributions to an Alternate Payee under a qualified domestic
relations order as defined in Code Section 414(p), at any time,
irrespective of whether the Participant has attained his earliest retirement
age, as defined in Code Section 414(p), under the Plan. A distribution to
an Alternate Payee before the Participant has attained his earliest retirement
age is available only if the order specifies that distribution shall be made
prior to the earliest retirement age or allows the Alternate Payee to elect a
distribution prior to the earliest retirement age.

 

Nothing in this section
shall permit a Participant to receive a distribution at a time otherwise not
permitted under the Plan nor shall it permit the Alternate Payee to receive a
form of payment not permitted under the Plan.

 

The benefit payable to an
Alternate Payee shall be subject to the provisions of the SMALL AMOUNTS SECTION of
Article X if the value of the benefit does not exceed $5,000.

 

The Plan Administrator shall
establish reasonable procedures to determine the qualified status of a domestic
relations order. Upon receiving a domestic relations order, the Plan
Administrator shall promptly notify the Participant and each Alternate Payee
named in the order, in writing, of the receipt of the order and the Plan’s
procedures for determining the qualified status of the order. Within a
reasonable period of time after receiving the domestic relations order, the
Plan Administrator shall determine the qualified status of the order and shall
notify the Participant and each Alternate Payee, in writing, of its
determination. The Plan Administrator shall provide notice under this paragraph
by mailing to the individual’s address specified in the domestic relations
order, or in a manner consistent with Department of Labor regulations. The Plan
Administrator may treat as qualified any domestic relations order entered
before January 1, 1985, irrespective of whether it satisfies all the
requirements described in Code Section 414(p).

 

If any portion of the
Participant’s Vested Account is payable during the period the Plan
Administrator is making its determination of the qualified status of the
domestic relations order, a separate accounting shall be made of the amount
payable. If the Plan Administrator determines the order is a qualified domestic
relations order within 18 months of the date amounts are first payable
following receipt of the order, the payable amounts shall be distributed in
accordance with the order. If the Plan Administrator does not make its
determination of the qualified status of the order within the 18-month
determination period, the payable amounts shall be distributed in the manner
the Plan would distribute if the order did not exist and the order shall apply
prospectively if the Plan Administrator later determines the order is a
qualified domestic relations order.

 

62

 

The Plan shall make payments
or distributions required under this section by separate benefit checks or
other separate distribution to the Alternate Payee(s).

 

63

 

ARTICLE VI

DISTRIBUTION OF BENEFITS

 

SECTION 6.01—AUTOMATIC FORMS OF DISTRIBUTION.

 

Unless an optional form of
benefit is selected pursuant to a qualified election within the election period
(see the ELECTION PROCEDURES SECTION of this article), the automatic form
of benefit payable to or on behalf of a Participant is determined as follows:

 

(a)                                  Retirement Benefits.
The automatic form of retirement benefit for a Participant who does not die
before his Annuity Starting Date shall be a single sum payment for that portion
of a Participant’s Account which is not held in the Qualifying Employer
Securities Fund. The automatic form of retirement benefit for that portion of a
Participant’s Account that is held in the Qualifying Employer Securities Fund
shall be a distribution in kind.

 

(b)                                 Death Benefits.
The automatic form of death benefit for a Participant who dies before his
Annuity Starting Date shall be a single sum payment to the Participant’s
Beneficiary.

 

(c)                                  Qualifying Employer Securities. That portion of a Participant’s Account held in the
Qualifying Employer Securities Fund shall be distributed as a single sum
payment or as substantially equal annual installments payable over a period of
no more than five years. Such five year period may be extended as provided in
Code Section 409(o)(1)(C)(ii) up to an additional five years.

 

SECTION 6.02—OPTIONAL FORMS OF DISTRIBUTION.

 

(a)                                  Retirement Benefits.
The optional forms of retirement benefit shall be the following: a fixed period
installment option and a fixed payment installment option. A single sum payment
is also available. That portion of a Participant’s Account that is held in the
Qualifying Employer Securities Fund may will be distributed in kind.

 

The fixed period installment
option is an optional form of benefit under which the Participant elects to
receive substantially equal annual payments over a fixed period of whole years.
The annual payment may be paid in annual, semi-annual, quarterly, or monthly
installments as elected by the Participant. The Participant may elect to
receive additional payments.

 

The fixed payment
installment option is an optional form of benefit under which the Participant
elects to receive a specified dollar amount each year. The annual payment may be
paid in annual, semi-annual, quarterly, or monthly installments as elected by
the Participant. The Participant may elect to receive additional payments.

 

64

 

Under the installment
options the amount payable in the Participant’s first Distribution Calendar
Year, as defined in the DEFINITIONS SECTION of Article VII, must
satisfy the minimum distribution requirements of Article VII for such
year. Distributions for later Distribution Calendar Years must satisfy the
minimum distribution requirements of Article VII for such years. If the
Participant’s Annuity Starting Date does not occur until his second
Distribution Calendar Year, the amount payable for such year must satisfy the
minimum distribution requirements of Article VII for both the first and
second Distribution Calendar Years.

 

Election of an optional form
is subject to the qualified election provisions of the ELECTION PROCEDURES SECTION of
this article and the distribution requirements of Article VII.

 

(b)                                 Death Benefits.
The optional form of death benefit is a single sum payment.

 

(c)                                  Qualifying Employer Securities. That portion of a Participant’s Account held in the
Qualifying Employer Securities Fund shall be distributed as a single sum
payment or as substantially equal annual installments payable over a period of
no more than five years. Such five year period may be extended as provided in
Code Section 409(o)(1)(C)(ii) up to an additional five years.

 

SECTION 6.03—ELECTION PROCEDURES.

 

The Participant or
Beneficiary shall make any election under this section in writing. The Plan
Administrator may require such individual to complete and sign any necessary
documents as to the provisions to be made. Any election permitted under (a) and
(b) below shall be subject to the qualified election provisions of (c) below.

 

(a)                                  Retirement Benefits.
A Participant may elect his Beneficiary and may elect to have retirement
benefits distributed under any of the optional forms of retirement benefit
available in the OPTIONAL FORMS OF DISTRIBUTION SECTION of this article.

 

(b)                                 Death Benefits.
A Participant may elect his Beneficiary and may elect to have death benefits
distributed under any of the optional forms of death benefit available in the
OPTIONAL FORMS OF DISTRIBUTION SECTION of this article.

 

If the Participant has not
elected an optional form of distribution for the death benefit payable to his
Beneficiary, the Beneficiary may, for his own benefit, elect the form of
distribution, in like manner as a Participant.

 

(c)                                  Qualified Election.
The Participant or Beneficiary may make an election at any time during the
election period. The Participant or Beneficiary may revoke the election made
(or make a new election) at any time and any number of times during the
election period. An election is effective only if it meets the consent
requirements below.

 

65

 

(1)                                  Election Period
for Retirement Benefits. The Participant may make an election as to
retirement benefits at any time before the Annuity Starting Date.

 

(2)                                  Election Period
for Death Benefits. A Participant may make an election as to death
benefits at any time before he dies. The Beneficiary’s election period begins
on the date the Participant dies and ends on the date benefits begin.

 

(3)                                  Consent to
Election. If the Participant’s Vested Account exceeds
$5,000, any benefit that is immediately distributable requires the consent of
the Participant.

 

The consent of the
Participant to a benefit that is immediately distributable must not be made
before the date the Participant is provided with the notice of the ability to
defer the distribution. Such consent shall be in writing.

 

Effective as of November 15,
2009, the consent shall not be made more than 180 days before the Annuity Starting
Date. The consent of the Participant shall not be required to the extent that a
distribution is required to satisfy Code Section 401(a)(9) or 415.

 

In addition, upon
termination of this Plan, if the Plan does not offer an annuity option
(purchased from a commercial provider), and if the Employer (or any entity
within the same Controlled Group) does not maintain another defined
contribution plan (other than an employee stock ownership plan as defined in
Code Section 4975(e)(7)), the Participant’s Account balance will, without
the Participant’s consent, be distributed to the Participant. However, if any
entity within the same Controlled Group maintains another defined contribution
plan (other than an employee stock ownership plan as defined in Code Section 4975(e)(7))
the Participant’s Account will be transferred, without the Participant’s
consent, to the other plan if the Participant does not consent to an immediate
distribution.

 

A benefit is immediately
distributable if any part of the benefit could be distributed to the
Participant before the Participant attains the older of Normal Retirement Age
or age 62.

 

Spousal consent is needed to
name a Beneficiary other than the Participant’s spouse. If the Participant
names a Beneficiary other than his spouse, the spouse has the right to limit
consent only to a specific Beneficiary. The spouse can relinquish such right.
Such consent shall be in writing. The spouse’s consent shall be witnessed by a
plan representative or notary public. The spouse’s consent must acknowledge the
effect of the election, including that the spouse had the right to limit
consent only to a specific Beneficiary and that the relinquishment of such
right was 

 

66

 

voluntary. Unless the consent
of the spouse expressly permits designations by the Participant without a
requirement of further consent by the spouse, the spouse’s consent must be
limited to the Beneficiary, class of Beneficiaries, or contingent Beneficiary
named in the election.

 

Spousal consent is not
required, however, if the Participant establishes to the satisfaction of the
plan representative that the consent of the spouse cannot be obtained because
there is no spouse or the spouse cannot be located. A spouse’s consent under
this paragraph shall not be valid with respect to any other spouse. A
Participant may revoke a prior election without the consent of the spouse. Any
new election will require a new spousal consent, unless the consent of the
spouse expressly permits such election by the Participant without further
consent by the spouse. A spouse’s consent may be revoked at any time within the
Participant’s election period.

 

SECTION 6.04—NOTICE REQUIREMENTS.

 

Optional
Forms of Retirement Benefit and Right to Defer. The Plan Administrator
shall furnish to the Participant a written explanation of the right of the
Participant to defer distribution until the benefit is no longer immediately
distributable, including an explanation of the consequences of not deferring
the distribution. Such notice shall include a written explanation of the
optional forms of retirement benefit in the OPTIONAL FORMS OF DISTRIBUTION SECTION of
this article, including a general description of the material features and an
explanation of the relative values of these options, in a manner that would
satisfy the notice requirements of Code Section 417(a)(3) and section
1.417(a)(3)-1 of the regulations.

 

Effective as of November 15,
2009, the Plan Administrator shall furnish the written explanation by a method
reasonably calculated to reach the attention of the Participant no less than 30
days, and no more than 180 days, before the Annuity Starting Date.

 

However, distribution may
begin less than 30 days after the notice described in this subparagraph is
given, provided the Plan Administrator clearly informs the Participant that he
has a right to a period of at least 30 days after receiving the notice to
consider the decision of whether or not to elect a distribution (and if
applicable, a particular distribution option), and the Participant, after
receiving the notice, affirmatively elects a distribution.

 

SECTION 6.05—FORMS OF DISTRIBUTION FOR QUALIFYING
EMPLOYER SECURITIES.

 

Notwithstanding any
provision of this Article VI to the contrary, distributions from the portion
of a Participant’s Account holding Qualifying Employer Securities shall be
governed by this section.

 

(a)                                  Distribution in Cash or Qualifying Employer Securities. At the Plan Administrator’s discretion, the part of a
Participant’s Vested Accounts holding Qualifying Employer Securities will be
distributed in cash or Qualifying Employer Securities unless the Participant
affirmatively elects under paragraph 

 

67

 

(b) below
to receive the distribution in the form of Qualifying Employer Securities with
cash in lieu of fractional shares. The cash value of Qualifying Employer
Securities shall be equal to the fair market value of such stock determined as
of the last Valuation Date prior to the date of distribution.

 

(b)                                 Distribution in Qualifying Employer Securities. Unless subsection (c) applies, a Participant may
elect to have the Participant’s Vested Accounts holding Qualifying Employer
Securities distributed in the form of Qualifying Employer Securities with cash
in lieu of fractional shares. Any cash or other property in the Participant’s
Vested Account (“non-company stock assets”) shall not be used to acquire
Qualifying Employer Securities for distribution, but shall be distributed in
cash.

 

(c)                                  Distribution in Qualifying Employer Securities Prohibited. If the Employer’s corporate charter or by-law provisions
restrict ownership of substantially all outstanding Qualifying Employer
Securities to Employees or to a plan or trust described in Code Section 401(a),
then, at the discretion of the Plan Administrator, any distribution of a
Participant’s Accounts shall be made in cash, or in shares of Qualifying
Employer Securities subject to an immediate put to the Employer pursuant to the
PUT OPTION SECTION of this article.

 

For Plan Years beginning
after December 31, 1997, if the Plan holds Qualifying Employer Securities
of an S Corporation, at the discretion of the Plan Administrator, distribution
of such Participant’s Accounts shall be made in cash, or in shares of Qualifying
Employer Securities subject to an immediate put to the Employer pursuant to the
PUT OPTION SECTION of this article.

 

SECTION 6.06—PUT OPTION.

 

If shares of Qualifying
Employer Securities are distributed from the Trust Fund, and if such shares are
not publicly traded when distributed or are subject to a trading limitation
when distributed, then such shares shall be subject to an initial and second
put option as follows:

 

(a)                                  The put option shall be exercisable by the distributee
(whether the Participant or a Beneficiary), any person to whom shares of
Qualifying Employer Securities have been passed by gift from the distributee,
or any person (including an estate or the distributee from an estate) to whom
the shares of Qualifying Employer Securities passed upon the death of the
distributee (hereinafter referred to as the “holder”).

 

(b)                                 The initial put option must be exercised during the 60-day
period which begins on the date the shares of Qualifying Employer Securities
are distributed from the Trust Fund. If not exercised during that period, the
initial put option shall lapse.

 

(c)                                  As soon as is reasonably practicable following the last day
of the Plan Year in which the initial 60-day period expires, the Employer shall
notify all of the non-electing holders of the valuation of such Qualifying
Employer Securities as of the most recent Valuation Date. During the 60-day
period following the receipt of 

 

68

 

such
valuation notice, any such non-electing holder shall have a second put option.

 

(d)                                 The period during which the put option is exercisable shall
not include any time when a holder is unable to exercise the put option because
the Employer is prohibited from honoring the put option by federal or state
law. If the shares of Qualifying Employer Securities are publicly traded
without restriction when distributed but cease to be traded within either of
the 60-day periods described herein after distribution, the Employer must
notify each holder in writing on or before the tenth day after the date the
shares cease to be so traded that for the remainder of the applicable 60-day
period the shares are subject to a put option. The number of days between such
tenth day and the date on which notice is actually given, if later than the
tenth day, must be added to the duration of the put option. The notice must
inform the holders of the terms of the put option.

 

(e)                                  The put option may be exercised by written notice of
exercise to the Employer or its designee made on such form and in accordance
with such rules as may be prescribed for this purpose by the Plan
Administrator.

 

(f)                                    Upon receipt of such notice, the Employer shall tender to
the holder the fair market value of the Qualifying Employer Securities (as
determined under Sections 4.02(e) and (f)) for such shares.

 

(i)                                     If the
Qualifying Employer Securities were distributed in a total distribution then
the Employer may pay either in a lump sum or substantially equal installments
(bearing a reasonable rate of interest and providing adequate security to the
holder) over a period beginning within 30 days following the date the put
option is exercised and ending not more than five years after the date the put
option is exercised.

 

(ii)                                  If the
Qualifying Employer Securities were not distributed in a total distribution
then the Employer must pay the holder in a single lump sum payment.

 

(iii)                               If payment is
made in installments, the Employer shall, within 30 days of the date the holder
exercises the put option, give the holder a promissory note for the full unpaid
balance of the option’s price. Such note shall, at a minimum, provide adequate
security, state a rate of interest reasonable under the circumstances (but at
least equal to the imputed compound rate in effect as of the exercise date
pursuant to the regulations promulgated under Code Sections 483 or 1274,
whichever shall be applicable) and provide that the full amount of such note
shall accelerate and become due immediately in the event that the Employer
defaults in the payment of a scheduled payment.

 

69

 

(g)                                 The Plan Trust Fund is not bound to purchase shares of
Qualifying Employer Securities pursuant to the put option, but the Employer may
direct the Trustee to cause the Plan Trust Fund to assume the Employer’s rights
and obligations to acquire shares of Qualifying Employer Securities under the
put option.

 

(h)                                 A “trading limitation” for this purpose means a restriction
under any federal or state securities law or under any agreement affecting the
shares that would make the shares not as freely tradable as shares not subject
to such restriction.

 

(i)                                     A “total distribution” for this purpose means a distribution
to a Participant or Beneficiary within one taxable year of such recipient to
the entire balance to the credit of the Participant.

 

SECTION 6.07—RIGHT OF FIRST REFUSAL

 

(a)                                  If any Participant, his Beneficiary or any other person to
whom shares of Qualifying Employer Securities are distributed from the Plan
(the “Selling Participant”) shall, at any time, desire to sell some or all of
such shares (the “Offered Shares”) to a third party (the “Third Party”), the
Selling Participant shall give written notice of such desire to the Employer
and the Administrator, which notice shall contain the number of shares offered
for sale, the proposed terms of the sale and the names and addresses of both
the Selling Participant and the Third Party. Both the Trust Fund and the
Employer shall each have the right of first refusal for a period of fourteen
(14) days from the date the Selling Participant gives such written notice to
the Employer and the Administrator (such fourteen (14) day period to run
concurrently against the Trust Fund and the Employer) to acquire the Offered
Shares. As between the Trust Fund and the Employer, the Trust Fund shall have
priority to acquire the shares pursuant to the right of first refusal. The
selling price and terms shall be the same as offered by the Third Party.

 

(b)                                 If the Trust Fund and the Employer do not exercise their
right of first refusal within the required fourteen (14) day period provided
above, the Selling Participant shall have the right, at any time following the
expiration of such fourteen (14) day period, to dispose of the Offered Shares
to the Third Party; provided, however, that (i) no disposition shall be
made to the Third Party on terms more favorable to the Third Party than those
set forth in the written notice delivered by the Selling Participant above, and
(ii) if such disposition shall not be made to a third party on the terms
offered to the Employer and the Trust Fund, the Offered Shares shall again be
subject to the right of first refusal set forth above.

 

(c)                                  The closing pursuant to the exercise of the right of first
refusal under Section 6.07(a) above shall take place at such place
agreed upon between the Administrator and the Selling Participant, but not
later than ten (10) days after the Employer or the Trust Fund shall have
notified the Selling Participant of the exercise of the right of first refusal.
At such closing, the Selling Participant shall deliver certificates
representing the Offered Shares duly endorsed in blank for

 

70

 

transfer,
or with stock powers attached duly executed in blank with all required transfer
tax stamps attached or provided for, and the Employer or the Trust Fund shall
deliver the purchase price, or an appropriate portion thereof, to the Selling
Participant.

 

The provisions of this Section 6.07
shall apply only to Qualifying Employer Securities which are not publicly
traded, regardless of whether they are acquired with the proceeds of an Exempt
Loan. The term “publicly traded” refers to a securities exchange registered
under Section 6 of the Securities Exchange Act of 1934 (the “1934 Act”)
(15 U.S.C. 78f) or that is actively traded on a system sponsored by a national
securities association registered under Section 15A(b) of the 1934
Act (15 U.S.C. 780).

 

71

 

ARTICLE VII

REQUIRED MINIMUM DISTRIBUTIONS

 

SECTION 7.01—APPLICATION.

 

The optional forms of
distribution are only those provided in Article VI. An optional form of
distribution shall not be permitted unless it meets the requirements of this
article. The timing of any distribution must meet the requirements of this
article.

 

SECTION 7.02—DEFINITIONS.

 

For purposes of this
article, the following terms are defined:

 

Distribution Calendar Year means a calendar year for
which a minimum distribution is required. For distributions beginning before
the Participant’s death, the first Distribution Calendar Year is the calendar
year immediately preceding the calendar year that contains the Participant’s
Required Beginning Date. For distributions beginning after the Participant’s
death, the first Distribution Calendar Year is the calendar year in which
distributions are required to begin under (b)(2) of the REQUIRED MINIMUM
DISTRIBUTIONS SECTION of this article. The required minimum distribution
for the Participant’s first Distribution Calendar Year will be made on or
before the Participant’s Required Beginning Date. The required minimum
distribution for other Distribution Calendar Years, including the required
minimum distribution for the Distribution Calendar Year in which the
Participant’s Required Beginning Date occurs, will be made on or before December 31
of that Distribution Calendar Year.

 

5-percent Owner means a Participant who is
treated as a 5-percent Owner for purposes of this article. A Participant is
treated as a 5-percent Owner for purposes of this article if such Participant
is a 5-percent owner as defined in Code Section 416 at any time during the
Plan Year ending with or within the calendar year in which such owner attains
age 70 1/2.

 

Once distributions have
begun to a 5-percent Owner under this article, they must continue to be
distributed, even if the Participant ceases to be a 5-percent Owner in a
subsequent year.

 

Life Expectancy means life expectancy as
computed by use of the Single Life Table in Q&A-1 in section 1.401(a)(9)-9
of the regulations.

 

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

 

72

 

Required Beginning Date means, for a Participant who
is a 5-percent Owner, April 1 of the calendar year following the calendar
year in which he attains age 70 1/2.

 

Required
Beginning Date means, for any Participant who is not a 5-percent
Owner, April 1 of the calendar year following the later of the calendar
year in which he attains age 70 1/2 or the calendar year in which he retires.

 

The preretirement age 70 1/2
distribution option is only eliminated with respect to Participants who reach
age 70 1/2 in or after a calendar year that begins after the later of December 31,
1998, or the adoption date of the amendment which eliminated such option. The
preretirement age 70 1/2 distribution option is an optional form of benefit
under which benefits payable in a particular distribution form (including any
modifications that may be elected after benefits begin) begin at a time during
the period that begins on or after January 1 of the calendar year in which
the Participant attains age 70 1/2 and ends April 1 of the immediately
following calendar year.

 

The options available for
Participants who are not 5-percent Owners and attained age 70 1/2 in calendar
years before the calendar year that begins after the later of December 31,
1998, or the adoption date of the amendment which eliminated the preretirement
age 70 1/2 distribution option shall be the following. Any such Participant
attaining age 70 1/2 in years after 1995 may elect by April 1 of the
calendar year following the calendar year in which he attained age 70 1/2 (or
by December 31, 1997 in the case of a Participant attaining age 70 1/2 in
1996) to defer distributions until April 1 of the calendar year following
the calendar year in which he retires. If no such election is made, the
Participant shall begin receiving distributions by April 1 of the calendar
year following the year in which he attained age 70 1/2 (or by December 31,
1997 in the case of a Participant attaining age 70 1/2 in 1996). Any such
Participant attaining age 70 1/2 in years prior to 1997 may elect to stop
distributions that are not purchased annuities and recommence by April 1
of the calendar year following the calendar year in which he retires. There shall
be a new Annuity Starting Date upon recommencement.

 

SECTION 7.03—REQUIRED MINIMUM DISTRIBUTIONS.

 

(a)                                  General Rules.

 

(1)                                  The
requirements of this article shall apply to any distribution of a Participant’s
interest and will take precedence over any inconsistent provisions of this
Plan. Unless otherwise specified, the provisions of this article apply to
calendar years beginning after December 31, 2002.

 

(2)                                  All
distributions required under this article shall be determined and made in
accordance with the regulations under Code Section 401(a)(9), including
the incidental death benefit requirement in Code Section 401(a)(9)(G), and
the regulations thereunder.

 

73

 

(b)                                 Time and Manner of Distribution.

 

(1)                                  Required
Beginning Date. The Participant’s entire interest will be
distributed, or begin to be distributed, to the Participant no later than the
Participant’s Required Beginning Date.

 

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

 

(i)                                     If the
Participant’s surviving spouse is the Participant’s sole Designated
Beneficiary, then distributions to the surviving spouse will begin by December 31
of the calendar year immediately following the calendar year in which the
Participant died, or by December 31 of the calendar year in which the
Participant would have attained age 70 1/2, if later, except to the extent that
an election is made to receive distributions in accordance with the 5-year rule under
(e) below. Under the 5-year rule, the Participant’s entire interest will
be distributed to the Designated Beneficiary by December 31 of the
calendar year containing the fifth anniversary of the Participant’s death.

 

(ii)                                  If the
Participant’s surviving spouse is not the Participant’s sole Designated
Beneficiary, then distributions to the Designated Beneficiary will begin by December 31
of the calendar year immediately following the calendar year in which the
Participant died, except to the extent that an election is made to receive
distributions in accordance with the 5-year rule under (e) below.
Under the 5-year rule, the Participant’s entire interest will be distributed to
the Designated Beneficiary by December 31 of the calendar year containing
the fifth anniversary of the Participant’s death.

 

(iii)                               If there is no
Designated Beneficiary as of September 30 of the year following the year
of the Participant’s death, the Participant’s entire interest will be
distributed by December 31 of the calendar year containing the fifth
anniversary of the Participant’s death.

 

(iv)                              If the
Participant’s surviving spouse is the Participant’s sole Designated Beneficiary
and the surviving spouse dies after the Participant but before distributions to
the surviving spouse are required to begin, this (b)(2), other than (b)(2)(i),
will apply as if the surviving spouse were the Participant.

 

For purposes of this (b)(2) and
(d) below, unless (b)(2)(iv) above applies, distributions are
considered to begin on the Participant’s Required Beginning Date. If (b)(2)(iv) above
applies, distributions are considered to begin on the date distributions are
required to begin to the surviving spouse under (b)(2)(i) above. If
distributions under an annuity purchased 

 

74

 

from an insurance company
irrevocably commence to the Participant before the Participant’s Required
Beginning Date (or to the Participant’s surviving spouse before the date
distributions are required to begin to the surviving spouse under (b)(2)(i) above),
the date distributions are considered to begin is the date distributions
actually commence.

 

(3)                                  Forms of
Distribution. Unless the Participant’s interest is distributed
in the form of an annuity purchased from an insurance company or in a single
sum on or before the Required Beginning Date, as of the first Distribution
Calendar Year distributions will be made in accordance with (c) and (d) below.
If the Participant’s interest is distributed in the form of an annuity
purchased from an insurance company, distributions thereunder will be made in
accordance with the requirements of Code Section 401(a)(9) and the
regulations thereunder.

 

(c)                                  Required Minimum Distributions During Participant’s Lifetime.

 

(1)                                  Amount of
Required Minimum Distribution For Each Distribution Calendar Year. During the
Participant’s lifetime, the minimum amount that will be distributed for each
Distribution Calendar Year is the lesser of:

 

(i)                                     the quotient
obtained by dividing the Participant’s Account Balance by the distribution
period in the Uniform Lifetime Table set forth in Q&A-2 in section
1.401(a)(9)-9 of the regulations, using the Participant’s age as of the Participant’s
birthday in the Distribution Calendar Year; or

 

(ii)                                  if the
Participant’s sole Designated Beneficiary for the Distribution Calendar Year is
the Participant’s spouse, the quotient obtained by dividing the Participant’s
Account Balance by the number in the Joint and Last Survivor Table set forth in
Q&A-3 in section 1.401(a)(9)-9 of the regulations, using the Participant’s
and spouse’s attained ages as of the Participant’s and spouse’s birthdays in
the Distribution Calendar Year.

 

(2)                                  Lifetime
Required Minimum Distributions Continue Through Year of Participant’s Death. Required
minimum distributions will be determined under this (c) beginning with the
first Distribution Calendar Year and continuing up to, and including, the
Distribution Calendar Year that includes the Participant’s date of death.

 

(d)                                 Required Minimum Distributions After Participant’s Death.

 

(1)                                  Death On or
After Date Distributions Begin.

 

(i)                                     Participant
Survived by Designated Beneficiary. If the Participant dies on
or after the date distributions begin and there is a Designated Beneficiary,
the minimum amount that will be 

 

75

 

distributed for each Distribution Calendar
Year after the year of the Participant’s death is the quotient obtained by
dividing the Participant’s Account Balance by the longer of the remaining Life
Expectancy of the Participant or the remaining Life Expectancy of the
Participant’s Designated Beneficiary, determined as follows:

 

A.                                   The Participant’s
remaining Life Expectancy is calculated using the age of the Participant in the
year of death, reduced by one for each subsequent year.

 

B.                                     If the
Participant’s surviving spouse is the Participant’s sole Designated
Beneficiary, the remaining Life Expectancy of the surviving spouse is
calculated for each Distribution Calendar Year after the year of the
Participant’s death using the surviving spouse’s age as of the spouse’s
birthday in that year. For Distribution Calendar Years after the year of the
surviving spouse’s death, the remaining Life Expectancy of the surviving spouse
is calculated using the age of the surviving spouse as of the spouse’s birthday
in the calendar year of the spouse’s death, reduced by one for each subsequent
calendar year.

 

C.                                     If the
Participant’s surviving spouse is not the Participant’s sole Designated
Beneficiary, the Designated Beneficiary’s remaining Life Expectancy is
calculated using the age of the Beneficiary in the year following the year of
the Participant’s death, reduced by one for each subsequent year.

 

(ii)                                  No Designated
Beneficiary. If the Participant dies on or after the date
distributions begin and there is no Designated Beneficiary as of September 30
of the year after the year of the Participant’s death, the minimum amount that
will be distributed for each Distribution Calendar Year after the year of the
Participant’s death is the quotient obtained by dividing the Participant’s
Account Balance by the Participant’s remaining Life Expectancy calculated using
the age of the Participant in the year of death, reduced by one for each
subsequent year.

 

(2)                                  Death Before
Date Distributions Begin.

 

(i)                                     Participant
Survived by Designated Beneficiary. If the Participant dies
before the date distributions begin and there is a Designated Beneficiary, the
minimum amount that will be distributed for each Distribution Calendar Year
after the year of the Participant’s death is the quotient obtained by dividing
the Participant’s Account Balance by the remaining Life Expectancy of the
Participant’s 

 

76

 

Designated Beneficiary, determined as
provided in (d)(1) above, except to the extent that an election is made to
receive distributions in accordance with the 5-year rule under (e) below.
Under the 5-year rule, the Participant’s entire interest will be distributed to
the Designated Beneficiary by December 31 of the calendar year containing
the fifth anniversary of the Participant’s death.

 

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

 

(iii)                               Death of
Surviving Spouse Before Distributions to Surviving Spouse Are Required to Begin. If the
Participant dies before the date distributions begin, the Participant’s
surviving spouse is the Participant’s sole Designated Beneficiary, and the
surviving spouse dies before distributions are required to begin to the
surviving spouse under (b)(2)(i) above, this (d)(2) will apply as if
the surviving spouse were the Participant.

 

(e)                                  Election of 5-year Rule.
Participants or Beneficiaries may elect on an individual basis whether the
5-year rule in (b)(2) and (d)(2) above applies to distributions
after the death of a Participant who has a Designated Beneficiary. The election
must be made no later than the earlier of September 30 of the calendar
year in which the distribution would be required to begin under (b)(2) above
if no such election is made, or by September 30 of the calendar year which
contains the fifth anniversary of the Participant’s (or, if applicable, surviving
spouse’s) death.

 

SECTION 7.04—TRANSITION RULES.

 

To the extent the Plan was
effective before 2003, required minimum distributions were made pursuant to (a) and
(b) below:

 

(a)                                  2000 and Before.
Required minimum distributions for calendar years after 1984 and before 2001
were made in accordance with Code Section 401(a)(9) and the proposed
regulations thereunder published in the Federal Register on July 27, 1987
(the 1987 Proposed Regulations).

 

(b)                                 2001 and 2002.
Required minimum distributions for calendar years 2001 and 2002 were made
pursuant to the proposed regulations under Code Section 401(a)(9) published
in the Federal Register on January 17, 2001 (the 2001 Proposed
Regulations). Distributions were made in 2001 under the 1987 Proposed
Regulations prior to June 14, 2001, and the special transition rule in
Announcement 2001-82, 2001-2 C.B. 123, applied.

 

77

 

ARTICLE VIII

TERMINATION OF THE PLAN

 

The Employer expects to
continue the Plan indefinitely but reserves the right to terminate the Plan in
whole or in part at any time upon giving written notice to all parties
concerned. Complete discontinuance of Contributions constitutes complete
termination of the Plan.

 

The Account of each
Participant shall be 100% vested and nonforfeitable as of the effective date of
complete termination of the Plan. The Account of each Participant who is
included in the group of Participants deemed to be affected by the partial
termination of the Plan shall be 100% vested and nonforfeitable as of the
effective date of the partial termination of the Plan. The Participant’s Vested
Account shall continue to participate in the earnings credited, expenses
charged, and any appreciation or depreciation of the Investment Fund until his
Vested Account is distributed.

 

A Participant’s Vested
Account that does not result from the Contributions listed below may be
distributed to the Participant after the effective date of the complete
termination of the Plan:

 

Elective Deferral Contributions

Qualified Matching Contributions

Qualified Nonelective Contributions

 

A Participant’s Vested
Account resulting from such Contributions may be distributed upon complete
termination of the Plan, but only if neither the Employer nor any Controlled
Group member maintain another defined contribution plan (other than an employee
stock ownership plan as defined in Code Section 4975(e)(7) or 409(a),
a simplified employee pension plan as defined in Code Section 408(k), a
SIMPLE IRA plan as defined in Code Section 408(p), a plan or contract that
satisfies the requirements of Code Section 403(b), or a plan described in
Code Section 457(b) or (f)) at any time during the period beginning
on the date of complete termination of the Plan and ending 12 months after all
assets have been distributed from the Plan. Such distribution is made in a lump
sum. A distribution under this article shall be a retirement benefit and shall
be distributed to the Participant according to the provisions of Article VI.
However, the fixed period and fixed payment installment options shall not be
available.

 

If a Participant or
Beneficiary is receiving payments under the fixed period or fixed payment
installment option, the Vested Account shall be paid to such person in a single
sum.

 

The Participant’s entire
Vested Account shall be paid in a single sum to the Participant as of the
effective date of complete termination of the Plan if (i) the requirements
for distribution of Elective Deferral Contributions in the above paragraph are
met and (ii) consent of the Participant is not required in the ELECTION
PROCEDURES SECTION of Article VI to distribute a benefit that is
immediately distributable. This is a small amounts payment. The small amounts
payment is in full settlement of all benefits otherwise payable.

 

Upon complete termination of
the Plan, no more Employees shall become Participants and no more Contributions
shall be made.

 

78

 

The assets of this Plan
shall not be paid to the Employer at any time, except that, after the
satisfaction of all liabilities under the Plan, any assets remaining may be
paid to the Employer. The payment may not be made if it would contravene any
provision of law.

 

79

 

ARTICLE IX

ADMINISTRATION OF THE PLAN

 

SECTION 9.01—SECTION 9.01—ADMINISTRATION.

 

Subject to the provisions of
this article, the Plan Administrator has complete control of the administration
of the Plan. The Plan Administrator has all the powers necessary for it to
properly carry out its administrative duties. Not in limitation, but in
amplification of the foregoing, the Plan Administrator has complete discretion
to construe or interpret the provisions of the Plan, including ambiguous
provisions, if any, and to determine all questions that may arise under the
Plan, including all questions relating to the eligibility of Employees to
participate in the Plan and the amount of benefit to which any Participant or
Beneficiary may become entitled. The Plan Administrator’s decisions upon all
matters within the scope of its authority shall be final.

 

Unless otherwise set out in
the Plan or Annuity Contract, the Plan Administrator may delegate recordkeeping
and other duties which are necessary to assist it with the administration of
the Plan to any person or firm which agrees to accept such duties. The Plan
Administrator shall be entitled to rely upon all tables, valuations,
certificates and reports furnished by the consultant or actuary appointed by
the Plan Administrator and upon all opinions given by any counsel selected or
approved by the Plan Administrator.

 

The Plan Administrator shall
receive all claims for benefits by Participants, former Participants and
Beneficiaries. The Plan Administrator shall determine all facts necessary to
establish the right of any Claimant to benefits and the amount of those
benefits under the provisions of the Plan. The Plan Administrator may establish
rules and procedures to be followed by Claimants in filing claims for
benefits, in furnishing and verifying proofs necessary to determine age, and in
any other matters required to administer the Plan.

 

SECTION 9.02—EXPENSES.

 

Expenses of the Plan, to the
extent that the Employer does not pay such expenses, may be paid out of the
assets of the Plan provided that such payment is consistent with ERISA. Such
expenses include, but are not limited to, expenses for bonding required by
ERISA; expenses for recordkeeping and other administrative services; fees and
expenses of the Trustee or Annuity Contract; expenses for investment education
service; and direct costs that the Employer incurs with respect to the Plan.
Expenses that relate solely to a specific Participant or Alternate Payee may be
assessed against such Participant or Alternate Payee as provided in the service
and expense agreement or such other documents duly entered into by or with
regard to the Plan that govern such matters.

 

SECTION 9.03—RECORDS.

 

All acts and determinations
of the Plan Administrator shall be duly recorded. All these records, together
with other documents necessary for the administration of the Plan, shall be
preserved in the Plan Administrator’s custody.

 

80

 

Writing (handwriting,
typing, printing), photostating, photographing, microfilming, magnetic impulse,
mechanical or electrical recording, or other forms of data compilation shall be
acceptable means of keeping records.

 

SECTION 9.04—INFORMATION AVAILABLE.

 

Any Participant in the Plan
or any Beneficiary may examine copies of the Plan description, latest annual
report, any bargaining agreement, this Plan, the Annuity Contract, or any other
instrument under which the Plan was established or is operated. The Plan
Administrator shall maintain all of the items listed in this section in its
office, or in such other place or places as it may designate in order to comply
with governmental regulations. These items may be examined during reasonable
business hours. Upon the written request of a Participant or Beneficiary
receiving benefits under the Plan, the Plan Administrator shall furnish him
with a copy of any of these items. The Plan Administrator may make a reasonable
charge to the requesting person for the copy.

 

SECTION 9.05—CLAIM PROCEDURES.

 

A Claimant must submit any
necessary forms and needed information when making a claim for benefits under
the Plan.

 

If a claim for benefits
under the Plan is wholly or partially denied, the Plan Administrator shall
provide adequate written notice to the Claimant whose claim for benefits under
the Plan has been denied. The notice must be furnished within 90 days of the
date that the claim is received by the Plan without regard to whether all of
the information necessary to make a benefit determination is received. The
Claimant shall be notified in writing within this initial 90-day period if
special circumstances require an extension of the time needed to process the
claim. The notice shall indicate the special circumstances requiring an
extension of time and the date by which the Plan Administrator’s decision is
expected to be rendered. In no event shall such extension exceed a period of 90
days from the end of the initial 90-day period.

 

The Plan Administrator’s
notice to the Claimant shall: (i) specify the reason or reasons for the
denial; (ii) reference the specific Plan provisions on which the denial is
based; (iii) describe any additional material and information needed for
the Claimant to perfect his claim for benefits; (iv) explain why the
material and information is needed; and (v) inform the Claimant of the
Plan’s appeal procedures and the time limits applicable to such procedures,
including a statement of the Claimant’s right to bring a civil action under
ERISA section 502(a) following an adverse benefit determination on appeal.

 

Any appeal made by a
Claimant must be made in writing to the Plan Administrator within 60 days after
receipt of the Plan Administrator’s notice of denial of benefits. If the
Claimant appeals to the Plan Administrator, the Claimant may submit written
comments, documents, records, and other information relating to the claim for
benefits. The Claimant shall be provided, 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. The Plan
Administrator shall review the claim taking into account all comments,
documents, records, and 

 

81

 

other information submitted by the Claimant relating to the claim,
without regard to whether such information was submitted or considered in the
initial benefit determination.

 

The Plan Administrator shall
provide adequate written notice to the Claimant of the Plan’s benefit
determination on review. The notice must be furnished within 60 days of the
date that the request for review is received by the Plan without regard to
whether all of the information necessary to make a benefit determination on
review is received. The Claimant shall be notified in writing within this
initial 60-day period if special circumstances require an extension of the time
needed to process the claim. The notice shall indicate the special
circumstances requiring an extension of time and the date by which the Plan
Administrator expects to render the determination on review. In no event shall
such extension exceed a period of 60 days from the end of the initial 60-day
period.

 

In the event the benefit
determination is being made by a committee or board of trustees that hold
regularly scheduled meetings at least quarterly, the above paragraph shall not
apply. The benefit determination must be made by the date of the meeting of the
committee or board that immediately follows the Plan’s receipt of a request for
review, unless the request for review is filed within 30 days preceding the
date of such meeting. In such case, the benefit determination must be made by
the date of the second meeting following the Plan’s receipt of the request for
review. The date of the receipt of the request for review shall be determined
without regard to whether all of the information necessary to make a benefit
determination on review is received. The Claimant shall be notified in writing
within this initial period if special circumstances require an extension of the
time needed to process the claim. The notice shall indicate the special
circumstances requiring an extension of time and the date by which the
committee or board expects to render the determination on review. In no event
shall such benefit determination be made later than the third meeting of the
committee or board following the Plan’s receipt of the request for review. The
Plan Administrator shall provide adequate written notice to the Claimant of the
Plan’s benefit determination on review as soon as possible, but not later than
five days after the benefit determination is made.

 

If the claim for benefits is
wholly or partially denied on review, the Plan Administrator’s notice to the
Claimant shall: (i) specify the reason or reasons for the denial; (ii) reference
the specific Plan provisions on which the denial is based; (iii) include a
statement that the Claimant is entitled to receive, upon request and free of
charge, reasonable access to, and copies of, all documents, records, and other
information relevant to the Claimant’s claim for benefits; and (iv) include
a statement of the Claimant’s right to bring a civil action under ERISA section
502(a).

 

A Claimant may authorize a
representative to act on the Claimant’s behalf with respect to a benefit claim
or appeal of an adverse benefit determination. Such authorization shall be made
by completion of a form furnished for that purpose. In the absence of any
contrary direction from the Claimant, all information and notifications to
which the Claimant is entitled shall be directed to the authorized
representative.

 

The Plan Administrator shall
perform periodic examinations, reviews, or audits of benefit claims to
determine whether claims determinations are made in accordance with the
governing Plan documents and, where appropriate, Plan provisions have been
consistently applied with respect to similarly situated Claimants.

 

82

 

Disability
Claim Procedures. In the case of a claim for disability benefits,
the above provisions will be modified as provided below.

 

If a claim for disability
benefits under the Plan is wholly or partially denied, the Plan Administrator
shall provide adequate written notice to the Claimant whose claim for benefits
under the Plan has been denied. The notice must be furnished within 45 days of
the date that the claim is received by the Plan without regard to whether all
of the information necessary to make a benefit determination is received. The period
for furnishing the notice may be extended for up to 30 days if the Plan
Administrator both determines an extension is necessary due to matters beyond
the control of the Plan and notifies the Claimant in writing within this
initial 45-day period. The notice shall indicate the circumstances requiring
the extension of time and the date by which the Plan expects to render a
decision. If prior to the end of the first 30-day extension period, the Plan
Administrator determines that, due to matters beyond the control of the Plan, a
decision cannot be rendered within that extension period, the period may be
extended for up to an additional 30 days, provided the Plan Administrator
notifies the Claimant in writing, within the first 30-day extension period, of
the circumstances requiring the extension and the date by which the Plan
expects to render a decision. In the case of any extension, the notice of
extension shall specifically explain the standards on which entitlement to a
benefit is based, the unresolved issues that prevent a decision on the claim,
and the additional information needed to resolve those issues. The Claimant
shall be afforded at least 45 days within which to provide the specified
information.

 

In the event that a period
of time is extended due to a Claimant’s failure to submit information necessary
to decide a claim, the period for making the benefit determination shall be
tolled from the date on which the notification of the extension is sent to the
Claimant until the date on which the Claimant responds to the request for
additional information.

 

The Plan Administrator’s
notice to the Claimant shall: (i) specify the reason or reasons for the
denial; (ii) reference the specific Plan provisions on which the denial is
based; (iii) describe any additional material and information needed for
the Claimant to perfect his claim for benefits; (iv) explain why the
material and information is needed; (v) inform the Claimant of the Plan’s
appeal procedures and the time limits applicable to such procedures, including
a statement of the Claimant’s right to bring a civil action under ERISA section
502(a) following an adverse benefit determination on appeal; (vi) provide
the Claimant with any internal rule, guideline, protocol, or other similar
criterion that was relied upon in making the adverse determination or a
statement that such rule, guideline, protocol, or other similar criterion was
relied upon and a copy will be provided free of charge upon request; and (vii) provide
the Claimant with an explanation of any scientific or clinical judgment for the
determination if benefit determination is based on a medical necessity or
experimental treatment or similar exclusion or limit or a statement that the
benefit is based on such an exclusion or limit and such explanation will be
provided free of charge.

 

Any appeal made by a
Claimant must be made in writing to the Plan Administrator within 180 days
after receipt of the Plan Administrator’s notice of denial of benefits. The
Claimant may submit written comments, documents, records, and other information
relating to the claim for benefits. The Claimant shall be provided, upon
request and free of charge, reasonable access to, and copies of, all documents,
records, and other information relevant to the 

 

83

 

Claimant’s claim for benefits. The Plan Administrator shall review the
claim taking into account all comments, documents, records, and other
information submitted by the Claimant relating to the claim, without regard to
whether such information was submitted or considered in the initial benefit
determination. The review shall not afford deference to the initial adverse
benefit determination and shall be conducted by an appropriate named fiduciary
who is neither the individual who made the adverse benefit determination that
is the subject of the appeal, nor the subordinate of such individual. If the
adverse benefit determination is based in whole or in part on a medical
judgment, the appropriate named fiduciary shall consult with a health care
professional who has appropriate training and experience in the field of
medicine involved in the medical judgment. Such health care professional shall
be an individual who is neither an individual who was consulted in connection
with the adverse benefit determination that is the subject of the appeal, nor
the subordinate of such individual. The Claimant shall be provided with the
identity of medical or vocational experts whose advice was obtained on behalf
of the Plan in connection with the adverse benefit determination, without
regard to whether the advice was relied on.

 

The Plan Administrator shall
provide adequate written notice to the Claimant of the Plan’s benefit
determination on review. The notice must be furnished within 45 days of the
date that the request for review is received by the Plan without regard to
whether all of the information necessary to make a benefit determination on
review is received. The Claimant shall be notified in writing within this
initial 45-day period if special circumstances require an extension of the time
needed to process the claim. The notice shall indicate the special
circumstances requiring an extension of time and the date by which the Plan
Administrator expects to render the determination on review. In no event shall
such extension exceed a period of 45 days from the end of the initial 45-day
period.

 

In the event the benefit
determination is being made by a committee or board of trustees that hold
regularly scheduled meetings at least quarterly, the above paragraph shall not
apply. The benefit determination must be made by the date of the meeting of the
committee or board that immediately follows the Plan’s receipt of a request for
review, unless the request for review is filed within 30 days preceding the
date of such meeting. In such case, the benefit determination must be made by
the date of the second meeting following the Plan’s receipt of the request for
review. The date of the receipt of the request for review shall be determined
without regard to whether all of the information necessary to make a benefit
determination on review is received. The Claimant shall be notified in writing
within this initial period if special circumstances require an extension of the
time needed to process the claim. The notice shall indicate the special
circumstances requiring an extension of time and the date by which the
committee or board expects to render the determination on review. In no event
shall such benefit determination be made later than the third meeting of the
committee or board following the Plan’s receipt of the request for review. The
Plan Administrator shall provide adequate written notice to the Claimant of the
Plan’s benefit determination on review as soon as possible, but not later than
five days after the benefit determination is made.

 

To the extent that a period
of time is extended due to a Claimant’s failure to submit information necessary
to decide a claim, the period for making the benefit determination on review
shall be tolled from the date on which the notification of the extension is
sent to the Claimant until the date on which the Claimant responds to the
request for additional information.

 

84

 

If the claim for disability benefits is wholly or
partially denied on review, the Plan Administrator’s notice to the Claimant
shall: (i) specify the reason or reasons for the denial; (ii) reference
the specific Plan provisions on which the denial is based; (iii) include a
statement that the Claimant is entitled to receive, upon request and free of
charge, reasonable access to, and copies of, all documents, records, and other
information relevant to the Claimant’s claim for benefits; (iv) include a
statement of the Claimant’s right to bring a civil action under ERISA section
502(a); (v) provide the Claimant with any internal rule, guideline,
protocol, or other similar criterion that was relied upon in making the adverse
determination or a statement that such rule, guideline, protocol, or other
similar criterion was relied upon and a copy will be provided free of charge
upon request; (vi) provide the Claimant with an explanation of any
scientific or clinical judgment for the determination if benefit determination
is based on a medical necessity or experimental treatment or similar exclusion
or limit or a statement that the benefit is based on such an exclusion or limit
and such explanation will be provided free of charge; and (vii) provide
the Claimant with the following statement: “You and your plan may have other
voluntary alternative dispute resolution options, such as mediation. One way to
find out what may be available is to contact your local U.S. Department of
Labor Office and your State insurance regulatory agency.”

 

SECTION 9.06—DELEGATION OF AUTHORITY.

 

All or any part of the
administrative duties and responsibilities under this article may be delegated
by the Plan Administrator to a retirement committee. The duties and
responsibilities of the retirement committee shall be set out in a separate written
agreement.

 

SECTION 9.07—EXERCISE OF DISCRETIONARY AUTHORITY.

 

The Employer, Plan
Administrator, and any other person or entity who has authority with respect to
the management, administration, or investment of the Plan may exercise that
authority in its/his full discretion, subject only to the duties imposed under
ERISA. This discretionary authority includes, but is not limited to, the
authority to make any and all factual determinations and interpret all terms
and provisions of the Plan documents relevant to the issue under consideration.
The exercise of authority will be binding upon all persons; will be given
deference in all courts of law to the greatest extent allowed under law; and
will not be overturned or set aside by any court of law unless found to be
arbitrary and capricious or made in bad faith.

 

SECTION 9.08—TRANSACTION PROCESSING.

 

Transactions (including, but
not limited to, investment directions, trades, loans, and distributions) shall
be processed as soon as administratively practicable after proper directions
are received from the Participant or other parties. No guarantee is made by the
Plan, Plan Administrator, Trustee, Insurer, or Employer that such transactions
will be processed on a daily or other basis, and no guarantee is made in any
respect regarding the processing time of such transactions.

 

Notwithstanding any other
provision of the Plan, the Employer, the Plan Administrator, or the Trustee
reserves the right to not value an investment option on any given Valuation
Date for any reason deemed appropriate by the Employer, the Plan Administrator,
or the Trustee.

 

85

 

Administrative practicality
will be determined by legitimate business factors (including, but not limited
to, failure of systems or computer programs, failure of the means of the
transmission of data, force majeure, the failure of a service provider to
timely receive values or prices, and correction for errors or omissions or the
errors or omissions of any service provider) and in no event will be deemed to
be less than 14 days. The processing date of a transaction shall be binding for
all purposes of the Plan and considered the applicable Valuation Date for any
transaction.

 

SECTION 9.09—VOTING AND TENDER OF QUALJFYING EMPLOYER
SECURITIES.

 

Voting rights with respect
to Qualifying Employer Securities will be passed through to Participants.
Participants will be allowed to direct the voting rights of Qualifying Employer
Securities for any matter put to the vote of shareholders. Before each meeting
of shareholders, the Employer shall cause to be sent to each person with power
to control such voting rights a copy of any notice and any other information
provided to shareholders and, if applicable, a form for instructing the Trustee
how to vote at such meeting (or any adjournment thereof) the number of full and
fractional shares subject to such person’s voting control. The Trustee may
establish a deadline in advance of the meeting by which such forms must be
received in order to be effective.

 

Each Participant shall be
entitled to one vote for each share credited to his Account.

 

If some or all of the
Participants have not directed or have not timely directed the Trustee on how
to vote, then the Trustee shall vote such Qualifying Employer Securities in the
same proportion as those shares of Qualifying Employer Securities for which the
Trustee has received proper direction for such matter.

 

Tender rights or exchange
offers for Qualifying Employer Securities will be passed through to
Participants. As soon as practicable after the commencement of a tender or
exchange offer for Qualifying Employer Securities, the Employer shall cause
each person with power to control the response to such tender or exchange offer
to be advised in writing the terms of the offer and, if applicable, to be
provided with a form for instructing the Trustee, or for revoking such
instruction, to tender or exchange shares of Qualifying Employer Securities, to
the extent permitted under the terms of such offer. In advising such persons of
the terms of the offer, the Employer may include statements from the board of
directors setting forth its position with respect to the offer.

 

If some or all of the
Participants have not directed or have not timely directed the Trustee on how
to tender, then the Trustee shall tender such Qualifying Employer Securities in
the same proportion as those shares of Qualifying Employer Securities for which
the Trustee has received proper direction for such matter.

 

If the tender or exchange
offer is limited so that all of the shares that the Trustee has been directed
to tender or exchange cannot be sold or exchanged, the shares that each
Participant directed to be tendered or exchanged shall be deemed to have been
sold or exchanged in the 

 

86

 

same ratio that the number of shares actually sold or exchanged bears
to the total number of shares that the Trustee was directed to tender or
exchange.

 

The Trustee shall hold the
Participant’s individual directions with respect to voting rights or tender
decisions in confidence and, except as required by law, shall not divulge or
release such individual directions to anyone associated with the Employer. The
Employer may require verification of the Trustee’s compliance with the
directions received from Participants by any independent auditor selected by
the Employer, provided that such auditor agrees to maintain the confidentiality
of such individual directions.

 

The Employer may develop
procedures to facilitate the exercise of votes or tender rights, such as the
use of facsimile transmissions for the Participants located in physically
remote areas.

 

87

 

ARTICLE X

GENERAL PROVISIONS

 

SECTION 10.01—AMENDMENTS.

 

The Employer may amend this
Plan at any time, including any remedial retroactive changes (within the time
specified by Internal Revenue Service regulations), to comply with any law or
regulation issued by any governmental agency to which the Plan is subject. The
Employer may correct obvious and unambiguous typographical errors and cross
references that merely correct a reference but that do not in any way change
the original intended meaning of the provisions.

 

An amendment may not allow
reversion or diversion of Plan assets to the Employer at any time, except as
may be required to comply with any law or regulation issued by any governmental
agency to which the Plan is subject.

 

An amendment may not
eliminate or reduce a section 411(d)(6) protected benefit, as defined in
Q&A-1 in section 1.411(d)-4 of the regulations, that has already accrued,
except as provided in section 1.411(d)-3 or 1.411(d)-4 of the regulations. This
is generally the case even if such elimination or reduction is contingent upon the
Employee’s consent. However, the Plan may be amended to eliminate or reduce
section 411(d)(6) protected benefits with respect to benefits not yet
accrued as of the later of the amendment’s adoption date or effective date
without violating Code Section 411(d)(6). Notwithstanding the preceding
sentences, a Participant’s Account may be reduced to the extent permitted under
Code Section 412(d)(2).

 

If, as a result of an
amendment, an Employer Contribution is removed that is not 100% immediately
vested when made, the applicable vesting schedule shall remain in effect with
respect to that part of his Account resulting from such Contributions after the
date of such amendment. The Participant shall not become immediately 100%
vested in such Contributions as a result of the elimination of such
Contribution except as otherwise specifically provided in the Plan.

 

An amendment shall not
decrease a Participant’s vested interest in the Plan. If an amendment to the
Plan changes the computation of the percentage used to determine that portion
of a Participant’s Account attributable to Employer Contributions which is
nonforfeitable (whether directly or indirectly), in the case of an Employee who
is a Participant as of the later of the date such amendment or change is
adopted or the date it becomes effective, the nonforfeitable percentage
(determined as of such date) of such Employee’s right to his Account
attributable to Employer Contributions shall not be less than the percentage
computed under the Plan without regard to such amendment or change.
Furthermore, each Participant or former Participant

 

(a)                                  who has completed at least three Years of Service on the
date the election period described below ends (five Years of Service if the
Participant does not have at least one Hour of Service in a Plan Year beginning
after December 31, 1988) and

 

88

 

(b)                                 whose nonforfeitable percentage will be determined on any
date after the date of the change

 

may elect, during the
election period, to have the nonforfeitable percentage of his Account that
results from Employer Contributions determined without regard to the amendment.
This election may not be revoked. If after the Plan is changed, the Participant’s
nonforfeitable percentage will at all times be as great as it would have been
if the change had not been made, no election needs to be provided. The election
period shall begin no later than the date the Plan amendment is adopted and end
no earlier than the 60th day after the latest of the date the amendment is
adopted or becomes effective, or the date the Participant is issued written
notice of the amendment by the Employer or the Plan Administrator.

 

For an amendment adopted
after August 9, 2006, with respect to a Participant’s Account attributable
to Employer Contributions accrued as of the later of the adoption or effective
date of the amendment and earnings, the vested percentage of each Participant
will be the greater of the vested percentage under the old vesting schedule or
the vested percentage under the new vesting schedule.

 

SECTION 10.02—DIRECT ROLLOVERS.

 

Notwithstanding any
provision of the Plan to the contrary that would otherwise limit a Distributee’s
election under this section, a Distributee may elect, at the time and in the
manner prescribed by the Plan Administrator, to have any portion of an Eligible
Rollover Distribution paid directly to an Eligible Retirement Plan specified by
the Distributee in a Direct Rollover. Effective as of November 15, 2009,
for distributions made after December 31, 2006, a Designated Beneficiary
of a Participant who is not the surviving spouse of the Participant may elect,
at the time and in the manner prescribed by the Plan Administrator, to have any
portion of a distribution, that would be an Eligible Rollover Distribution if
the Designated Beneficiary were a Distributee, paid in a Direct Rollover to an
individual retirement plan described in Code Section 402(c)(8)(B)(i) or
(ii) established for the purposes of receiving the distribution on behalf
of the Designated Beneficiary. If such Direct Rollover is made: (i) such
Direct Rollover shall be treated as an Eligible Rollover Distribution; (ii) the
individual retirement plan shall be treated as an inherited individual
retirement account or individual retirement annuity (within the meaning of Code
Section 408(d)(3)(C)); and (iii) Code Section 401(a)(9)(B) (other
than clause (iv) thereof) shall apply to such plan. For this purpose,
certain trusts shall be treated as a Designated Beneficiary as provided in Code
Section 402(c)(11)(B).

 

In the event of a mandatory
distribution of an Eligible Rollover Distribution greater than $1,000 in
accordance with the SMALL AMOUNTS SECTION of this article (or which is a
small amounts payment under Article VIII at complete termination of the
Plan), if the Participant does not elect to have such distribution paid
directly to an Eligible Retirement Plan specified by the Participant in a
Direct Rollover or to receive the distribution directly, the Plan Administrator
will pay the distribution in a Direct Rollover to an individual retirement plan
designated by the Plan Administrator.

 

In the event of any other
Eligible Rollover Distribution to a Distributee in accordance with the SMALL
AMOUNTS SECTION of this article (or which is a small amounts payment 

 

89

 

under Article VIII at complete termination of the Plan), if the
Distributee does not elect to have such distribution paid directly to an
Eligible Retirement Plan specified by the Distributee in a Direct Rollover or
to receive the distribution directly, the Plan Administrator will pay the
distribution to the Distributee.

 

A mandatory distribution is
a distribution to a Participant that is made without the Participant’s consent
and is made to the Participant before he attains the older of age 62 or his
Normal Retirement Age.

 

SECTION 10.03—MERGERS AND DIRECT TRANSFERS.

 

The Plan may not be merged
or consolidated with, nor have its assets or liabilities transferred to, any
other retirement plan, unless each Participant in this Plan would (if that plan
then terminated) receive a benefit immediately after the merger, consolidation,
or transfer that is equal to or greater than the benefit the Participant would
have been entitled to receive immediately before the merger, consolidation, or
transfer (if this Plan had then terminated). The Employer may enter into merger
agreements or direct transfer of assets agreements with the employers under
other retirement plans which are qualifiable under Code Section 401(a),
including an elective transfer, and may accept the direct transfer of plan
assets, or may transfer plan assets, as a party to any such agreement. The
Employer shall not consent to, or be a party to a merger, consolidation, or
transfer of assets with a defined benefit plan if such action would result in a
defined benefit feature being maintained under this Plan. The Employer will not
transfer any amounts attributable to elective deferral contributions, qualified
matching contributions, and qualified nonelective contributions unless the
transferee plan provides that the limitations of section 1.401(k)-1(d) of
the regulations shall apply to such amounts (including post-transfer earnings
thereon), unless the amounts could have been distributed at the time of the
transfer (other than for hardship), and the transfer is an elective transfer
described in Q&A-3(b)(1) in section 1.411(d)-4 of the regulations.

 

Notwithstanding any
provision of the Plan to the contrary, to the extent any optional form of
benefit under the Plan permits a distribution prior to the Employee’s
retirement, death, disability, or Severance from Employment, and prior to plan
termination, the optional form of benefit is not available with respect to
benefits attributable to assets (including the post-transfer earnings thereon)
and liabilities that are transferred, within the meaning of Code Section 414(1),
to this Plan from a money purchase pension plan qualified under Code Section 401(a) (other
than any portion of those assets and liabilities attributable to voluntary
employee contributions). The limitations of section 1.401(k)-1(d) of the
regulations applicable to elective deferral contributions, qualified matching
contributions, and qualified nonelective contributions shall continue to apply
to any amounts attributable to such contributions (including post-transfer
earnings thereon) transferred to this Plan, unless the amounts could have been
distributed at the time of the transfer (other than for hardship), and the
transfer is an elective transfer described in Q&A-3(b)(1) in section
1.411(d)-4 of the regulations.

 

The Plan may accept a direct
transfer of plan assets on behalf of an Eligible Employee. If the Eligible
Employee is not an Active Participant when the transfer is made, the Eligible
Employee shall be deemed to be an Active Participant only for the purpose of
investment and distribution of the transferred assets. Employer Contributions
shall not be made for or allocated

 

90

 

to
the Eligible Employee, until the time he meets all of the requirements to
become an Active Participant.

 

The Plan shall hold,
administer, and distribute the transferred assets as a part of the Plan. The
Plan shall maintain a separate account for the benefit of the Employee on whose
behalf the Plan accepted the transfer in order to reflect the value of the
transferred assets.

 

A Participant’s section
411(d)(6) protected benefits, as defined in Q&A-1 in section
1.411(d)-4 of the regulations, may not be eliminated by reason of transfer or
any transaction amending or having the effect of amending a plan or plans to
transfer benefits except as provided below.

 

A Participant’s section
411(d)(6) protected benefits may be eliminated or reduced upon transfer
between qualified defined contribution plans if the conditions in Q&A-3(b)(1) in
section 1.411(d)-4 of the regulations are met. The transfer must meet all of
the other applicable qualification requirements.

 

A Participant’s section
411(d)(6) protected benefits may be eliminated or reduced if a transfer is
an elective transfer of certain distributable benefits between qualified plans
(both defined benefit and defined contribution) and the conditions in
Q&A-3(c)(1) in section 1.411(d)-4 of the regulations are met. The rules applicable
to distributions under the plan would apply to the transfer, but the transfer
would not be treated as a distribution for purposes of the minimum distribution
requirements of Code Section 401(a)(9). Beginning January 1, 2002, if
the Participant is eligible to receive an immediate distribution of his entire
nonforfeitable accrued benefit in a single sum distribution that would consist
entirely of an eligible rollover distribution under Code Section 401(a)(31),
such transfer will be accomplished as a direct rollover under Code Section 401(a)(31).

 

SECTION 10.04—PROVISIONS RELATING TO THE INSURER AND
OTHER PARTIES.

 

The obligations of an
Insurer shall be governed solely by the provisions of the Annuity Contract. The
Insurer shall not be required to perform any act not provided in or contrary to
the provisions of the Annuity Contract. Each Annuity Contract when purchased
shall comply with the Plan. See the CONSTRUCTION SECTION of this article.

 

Any issuer or distributor of
investment contracts or securities is governed solely by the terms of its
policies, written investment contract, prospectuses, security instruments, and
any other written agreements entered into with the Trustee with regard to such
investment contracts or securities.

 

Such Insurer, issuer or
distributor is not a party to the Plan, nor bound in any way by the Plan
provisions. Such parties shall not be required to look to the terms of this
Plan, nor to determine whether the Employer, the Plan Administrator, the
Trustee, or the Named Fiduciary have the authority to act in any particular
manner or to make any contract or agreement.

 

Until notice of any
amendment or termination of this Plan or a change in Trustee has been received
by the Insurer at its home office or an issuer or distributor at their
principal 

 

91

 

address, they are and shall be fully protected in assuming that the
Plan has not been amended or terminated and in dealing with any party acting as
Trustee according to the latest information which they have received at their
home office or principal address.

 

SECTION 10.05—EMPLOYMENT STATUS.

 

Nothing contained in this
Plan gives an Employee the right to be retained in the Employer’s employ or to
interfere with the Employer’s right to discharge any Employee.

 

SECTION 10.06—RIGHTS TO PLAN ASSETS.

 

An Employee shall not have
any right to or interest in any assets of the Plan upon termination of
employment or otherwise except as specifically provided under this Plan, and then
only to the extent of the benefits payable to such Employee according to the
Plan provisions.

 

Any final payment or
distribution to a Participant or his legal representative or to any
Beneficiaries of such Participant under the Plan provisions shall be in full
satisfaction of all claims against the Plan, the Named Fiduciary, the Plan
Administrator, the Insurer, the Trustee, and the Employer arising under or by
virtue of the Plan.

 

SECTION 10.07—BENEFICIARY.

 

Each Participant may name a
Beneficiary to receive any death benefit that may arise out of his
participation in the Plan. The Participant may change his Beneficiary from time
to time. Unless a qualified election has been made, for purposes of
distributing any death benefits before the Participant’s Retirement Date, the
Beneficiary of a Participant who has a spouse shall be the Participant’s
spouse. The Participant’s Beneficiary designation and any change of Beneficiary
shall be subject to the provisions of the ELECTION PROCEDURES SECTION of Article VI.

 

It is the responsibility of
the Participant to give written notice to the Plan Administrator of the name of
the Beneficiary on a form furnished for that purpose. The Plan Administrator
shall maintain records of Beneficiary designations for Participants before
their Retirement Dates. However, the Plan Administrator may delegate to another
party the responsibility of maintaining records of Beneficiary designations. In
that event, the written designations made by Participants shall be filed with
such other party. If a party other than the Insurer maintains the records of
Beneficiary designations and a Participant dies before his Retirement Date,
such other party shall certify to the Insurer the Beneficiary designation on
its records for the Participant.

 

If there is no Beneficiary
named or surviving when a Participant dies, the Participant’s Beneficiary shall
be the Participant’s surviving spouse, or where there is no surviving spouse,
the executor or administrator of the Participant’s estate.

 

SECTION 10.08—NONALIENATION OF BENEFITS.

 

Benefits payable under the
Plan are not subject to the claims of any creditor of any Participant or
Beneficiary. A Participant or Beneficiary does not have any rights to alienate,
anticipate, commute, pledge, encumber, or assign such benefits. The preceding
sentences shall also apply to the creation, assignment, or recognition of a
right to any benefit payable with 

 

92

 

respect to a Participant according to a domestic relations order,
unless such order is determined by the Plan Administrator to be a qualified
domestic relations order, as defined in Code Section 414(p), or any
domestic relations order entered before January 1, 1985. The preceding
sentences shall not apply to any offset of a Participant’s benefits provided
under the Plan against an amount the Participant is required to pay the Plan
with respect to a judgment, order, or decree issued, or a settlement entered
into, on or after August 5, 1997, which meets the requirements of Code
Sections 401(a)(13)(C) or (D).

 

SECTION 10.09—CONSTRUCTION.

 

The validity of the Plan or
any of its provisions is determined under and construed according to Federal
law and, to the extent permissible, according to the laws of the state in which
the Employer has its principal office. In case any provision of this Plan is
held illegal or invalid for any reason, such determination shall not affect the
remaining provisions of this Plan, and the Plan shall be construed and enforced
as if the illegal or invalid provision had never been included.

 

In
the event of any conflict between the provisions of the Plan and the terms of
any Annuity Contract issued hereunder, the provisions of the Plan control.

 

SECTION 10.10—LEGAL ACTIONS.

 

No person employed by the
Employer; no Participant, former Participant, or their Beneficiaries; nor any
other person having or claiming to have an interest in the Plan is entitled to
any notice of process. A final judgment entered in any such action or
proceeding shall be binding and conclusive on all persons having or claiming to
have an interest in the Plan.

 

SECTION 10.11—SMALL AMOUNTS.

 

If consent of the
Participant is not required for a benefit that is immediately distributable in
the ELECTION PROCEDURES SECTION of Article VI, a Participant’s entire
Vested Account shall be paid in a single sum as of the earliest of his
Retirement Date, the date he dies, or the date he has a Severance from
Employment for any other reason (the date the Employer provides notice to the
record keeper of the Plan of such event, if later). This is a small amounts
payment.

 

If a small amounts payment
is made as of the date the Participant dies, the small amounts payment shall be
made to the Participant’s Beneficiary. If a small amounts payment is made while
the Participant is living, the small amounts payment shall be made to the
Participant. The small amounts payment is in full settlement of all benefits
otherwise payable.

 

No other small amounts
payments shall be made.

 

SECTION 10.12—WORD USAGE

 

The masculine gender, where
used in this Plan, shall include the feminine gender and the singular words,
where used in this Plan, shall include the plural, unless the context indicates
otherwise.

 

93

 

The words “in writing” and “written,”
where used in this Plan, shall include any other forms, such as voice response
or other electronic system, as permitted by any governmental agency to which
the Plan is subject.

 

SECTION 10.13—CHANGE IN SERVICE METHOD.

 

(a)                                  Change of Service Method Under This Plan. If this Plan is amended to change the method of crediting
service from the elapsed time method to the hours method for any purpose under
this Plan, the Employee’s service shall be equal to the sum of (1), (2), and (3) below:

 

(1)                                  The number of
whole years of service credited to the Employee under the Plan as of the date
the change is effective.

 

(2)                                  One year of
service for the computation period in which the change is effective if he is
credited with the required number of Hours of Service. For that portion of the
computation period ending on the date of the change (for the first day of the
computation period if the change is made on the first day of the computation
period), the Employee will be credited with the greater of (i) his actual
Hours of Service or (ii) the number of Hours of Service that is equivalent
to the fractional part of a year of elapsed time service credited as of the
date of the change, if any. In determining the equivalent Hours of Service, the
Employee shall be credited with 190 Hours of Service for each month and any
fractional part of a month in such fractional part of a year. The number of
months and any fractional part of a month shall be determined by multiplying
the fractional part of a year, expressed as a decimal, by 12. For the remaining
portion of the computation period (the period beginning on the second day of
the computation period and ending on the last day of the computation period if
the change is made on the first day of the computation period), the Employee
will be credited with his actual Hours of Service.

 

(3)                                  The Employee’s
service determined under this Plan using the hours method after the end of the
computation period in which the change in service method was effective.

 

If this Plan is amended to
change the method of crediting service from the hours method to the elapsed
time method for any purpose under this Plan, the Employee’s service shall be
equal to the sum of (4), (5), and (6) below:

 

(4)                                  The number of
whole years of service credited to the Employee under the Plan as of the
beginning of the computation period in which the change in service method is
effective.

 

(5)                                  The greater of (i) the
service that would be credited to the Employee for that entire computation
period using the elapsed time method or (ii) the service credited to him
under the Plan as of the date the change is effective.

 

94

 

(6)                                  The Employee’s
service determined under this Plan using the elapsed time method after the end
of the applicable computation period in which the change in service method was
effective.

 

(b)                                 Transfers Between Plans with Different Service Methods. If an Employee has been a participant in another plan of
the Employer that credited service under the elapsed time method for any
purpose that under this Plan is determined using the hours method, then the
Employee’s service shall be equal to the sum of (1), (2), and (3) below:

 

(1)                                  The number of
whole years of service credited to the Employee under the other plan as of the
date he became an Eligible Employee under this Plan.

 

(2)                                  One year of
service for the applicable computation period in which he became an Eligible
Employee if he is credited with the required number of Hours of Service. For
that portion of such computation period ending on the date he became an
Eligible Employee (for the first day of such computation period if he became an
Eligible Employee on the first day of such computation period), the Employee
will be credited with the greater of (i) his actual Hours of Service or (ii) the
number of Hours of Service that is equivalent to the fractional part of a year
of elapsed time service credited as of the date he became an Eligible Employee,
if any. In determining the equivalent Hours of Service, the Employee shall be
credited with 190 Hours of Service for each month and any fractional part of a
month in such fractional part of a year. The number of months and any
fractional part of a month shall be determined by multiplying the fractional
part of a year, expressed as a decimal, by 12. For the remaining portion of
such computation period (the period beginning on the second day of such
computation period and ending on the last day of such computation period if he
became an Eligible Employee on the first day of such computation period), the
Employee will be credited with his actual Hours of Service.

 

(3)                                  The Employee’s
service determined under this Plan using the hours method after the end of the
computation period in which he became an Eligible Employee.

 

If an Employee has been a
participant in another plan of the Employer that credited service under the
hours method for any purpose that under this Plan is determined using the
elapsed time method, then the Employee’s service shall be equal to the sum of
(4), (5), and (6) below:

 

(4)                                  The number of
whole years of service credited to the Employee under the other plan as of the
beginning of the computation period under that plan in which he became an
Eligible Employee under this Plan.

 

95

 

(5)                                  The greater of (i) the
service that would be credited to the Employee for that entire computation
period using the elapsed time method or (ii) the service credited to him
under the other plan as of the date he became an Eligible Employee under this
Plan.

 

(6)                                  The Employee’s
service determined under this Plan using the elapsed time method after the end
of the applicable computation period under the other plan in which he became an
Eligible Employee.

 

If an Employee has been a
participant in a Controlled Group member’s plan that credited service under a
different method than is used in this Plan, in order to determine entry and
vesting, the provisions in (b) above shall apply as though the Controlled
Group member’s plan was a plan of the Employer.

 

Any modification of service
contained in this Plan shall be applicable to the service determined pursuant
to this section.

 

SECTION 10.14—MILITARY SERVICE

 

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

 

96

 

ARTICLE XI

TOP-HEAVY PLAN REQUIREMENTS

 

SECTION 11.01—APPLICATION.

 

The provisions of this
article shall supersede all other provisions in the Plan to the contrary. The
provisions of this article shall apply for purposes of determining whether the
Plan is a Top-heavy Plan for Plan Years beginning after December 31, 2001,
and whether the Plan satisfies the minimum benefit requirements of Code Section 416(c) for
such years.

 

For the purpose of applying
the Top-heavy Plan requirements of this article, all members of the Controlled
Group shall be treated as one Employer. The term Employer, as used in this
article, shall be deemed to include all members of the Controlled Group, unless
the term as used clearly indicates only the Employer is meant.

 

The accrued benefit or
account of a participant that results from deductible employee contributions
shall not be included for any purpose under this article.

 

The minimum vesting and
contribution provisions of the MODIFICATION OF VESTING REQUIREMENTS and
MODIFICATION OF CONTRIBUTIONS SECTIONS of this article shall not apply to any
Employee who is included in a group of Employees covered by a collective
bargaining agreement which the Secretary of Labor finds to be a collective
bargaining agreement between employee representatives and one or more
employers, including the Employer, if there is evidence that retirement
benefits were the subject of good faith bargaining between such
representatives. For this purpose, the term “employee representatives” does not
include any organization more than half of whose members are employees who are
owners, officers, or executives.

 

SECTION 11.02—DEFINITIONS.

 

For purposes of this article
the following terms are defined:

 

Aggregation Group means:

 

(a)                                  each of the Employer’s qualified plans in which a Key
Employee is a participant during the Plan Year containing the Determination
Date or any of the four preceding Plan Years (regardless of whether the plans
have terminated),

 

(b)                                 each of the Employer’s other qualified plans which allows
the plan(s) described in (a) above to meet the nondiscrimination requirement
of Code Section 401(a)(4) or the minimum coverage requirement of Code
Section 410, and

 

(c)                                  any of the Employer’s other qualified plans not included in (a) or
(b) above which the Employer desires to include as part of the Aggregation
Group. Such a qualified plan shall be included only if the Aggregation Group
would continue to satisfy the requirements of Code Sections 401(a)(4) and
410.

 

97

 

The plans in (a) and (b) above
constitute the “required” Aggregation Group. The plans in (a), (b), and (c) above
constitute the “permissive” Aggregation Group.

 

Compensation means compensation as
defined in the CONTRIBUTION LIMITATION SECTION of Article III.

 

Determination Date means as to any plan, for
any plan year subsequent to the first plan year, the last day of the preceding
plan year. For the first plan year of the plan, the Determination Date is the
last day of that year.

 

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 is:

 

(a)                                  an officer of the Employer having Compensation for the Plan
Year greater than $130,000 (as adjusted under Code Section 416(i)(1) for
Plan Years beginning after December 31, 2002),

 

(b)                                 a 5-percent owner of the Employer, or

 

(c)                                  a 1-percent owner of the Employer having Compensation for
the Plan Year of more than $150,000.

 

The determination of who is
a Key Employee shall be made according to Code Section 416(i)(1) and
the applicable regulations and other guidance of general applicability issued
thereunder.

 

Nonkey Employee means any Employee who is
not a Key Employee.

 

Top-heavy Plan means a plan that is
top-heavy for any plan year. This Plan shall be top-heavy if any of the following
conditions exist:

 

(a)                                  The Top-heavy Ratio for this Plan exceeds 60 percent and
this Plan is not part of any required Aggregation Group or permissive
Aggregation Group.

 

(b)                                 This Plan is a part of a required Aggregation Group, but not
part of a permissive Aggregation Group, and the Top-heavy Ratio for the
required Aggregation Group exceeds 60 percent.

 

(c)                                  This Plan is a part of a required Aggregation Group and part
of a permissive Aggregation Group and the Top-heavy Ratio for the permissive
Aggregation Group exceeds 60 percent.

 

Top-heavy
Ratio means:

 

(a)                                  If the Employer maintains one or more defined contribution
plans (including any simplified employee pension plan) and the Employer has not
maintained any defined benefit plan which during the five-year period ending on
the Determination Date(s) has or has had accrued benefits, the Top-heavy
Ratio for 

 

98

 

this
Plan alone or for the required or permissive Aggregation Group, as appropriate,
is a fraction, the numerator of which is the sum of the account balances of all
Key Employees as of the Determination Date(s) (including any part of any
account balance distributed in the one-year period ending on the Determination
Date(s) and distributions under a terminated plan which if it had not been
terminated would have been required to be included in the Aggregation Group),
and the denominator of which is the sum of all account balances (including any
part of any account balance distributed in the one-year period ending on the
Determination Date(s) and distributions under a terminated plan which if
it had not been terminated would have been required to be included in the
Aggregation Group), both computed in accordance with Code Section 416 and
the regulations thereunder. In the case of a distribution made for a reason
other than Severance from Employment, death, or disability, this provision
shall be applied by substituting “five-year period” for “one-year period.” Both
the numerator and denominator of the Top-heavy Ratio are increased to reflect
any contribution not actually made as of the Determination Date, but which is
required to be taken into account on that date under Code Section 416 and
the regulations thereunder.

 

(b)                                 If the Employer maintains one or more defined contribution
plans (including any simplified employee pension plan) and the Employer
maintains or has maintained one or more defined benefit plans which during the
five-year period ending on the Determination Date(s) has or has had
accrued benefits, the Top-heavy Ratio for any required or permissive
Aggregation Group, as appropriate, is a fraction, the numerator of which is the
sum of the account balances under the aggregated defined contribution plan or
plans of all Key Employees, determined in accordance with (a) above, and
the present value of accrued benefits under the aggregated defined benefit plan
or plans for all Key Employees as of the Determination Date(s), and the
denominator of which is the sum of the account balances under the aggregated
defined contribution plan or plans for all participants, determined in
accordance with (a) above, and the present value of accrued benefits under
the defined benefit plan or plans for all participants as of the Determination
Date(s), all determined in accordance with Code Section 416 and the
regulations thereunder. The accrued benefits under a defined benefit plan in
both the numerator and denominator of the Top-heavy Ratio are increased for any
distribution of an accrued benefit made in the one-year period ending on the
Determination Date (and distributions under a terminated plan which if it had
not been terminated would have been required to be included in the Aggregation
Group). In the case of a distribution made for a reason other than Severance
from Employment, death, or disability, this provision shall be applied by
substituting “five-year period” for “one-year period.”

 

(c)                                  For purposes of (a) and (b) above, the value of
account balances and the present value of accrued benefits will be determined as
of the most recent Valuation Date that falls within or ends with the 12-month
period ending on the Determination Date, except as provided in Code Section 416
and the regulations thereunder for the first and second plan years of a defined
benefit plan. The account balances and 

 

99

 

accrued
benefits of a participant (i) who is not a Key Employee but who was a Key
Employee in a prior year or (ii) who has not been credited with at least
one hour of service with any employer maintaining the plan at any time during
the one-year period ending on the Determination Date will be disregarded. The
calculation of the Top-heavy Ratio and the extent to which distributions,
rollovers, and transfers are taken into account will be made in accordance with
Code Section 416 and the regulations thereunder. Deductible employee
contributions will not be taken into account for purposes of computing the
Top-heavy Ratio. When aggregating plans, the value of account balances and
accrued benefits will be calculated with reference to the Determination Dates
that fall within the same calendar year.

 

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 Employer, 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).

 

SECTION 11.03—MODIFICATION OF VESTING REQUIREMENTS.

 

A Participant’s Vesting
Percentage is at all times at least as great as the Vesting Percentage required
to satisfy the requirements of Code Section 416.

 

The part of the Participant’s
Vested Account resulting from the minimum contributions required pursuant to
the MODIFICATION OF CONTRIBUTIONS SECTION of this article (to the extent
required to be nonforfeitable under Code Section 416(b)) may not be
forfeited under Code Section 411(a)(3)(B) or (D).

 

SECTION 11.04—MODIFICATION OF CONTRIBUTIONS.

 

During any Plan Year in
which this Plan is a Top-heavy Plan, the Employer shall make a minimum
contribution as of the last day of the Plan Year for each Nonkey Employee who
is an Employee on the last day of the Plan Year and who was an Active
Participant at any time during the Plan Year. A Nonkey Employee is not required
to have a minimum number of Hours of Service or minimum amount of Compensation
in order to be entitled to this minimum. A Nonkey Employee who fails to be an
Active Participant merely because his Compensation is less than a stated amount
or merely because of a failure to make mandatory participant contributions or,
in the case of a cash or deferred arrangement, elective contributions shall be
treated as if he were an Active Participant. The minimum is the lesser of (a) or
(b) below:

 

(a)                                  3 percent of such person’s Compensation for such Plan Year.

 

(b)                                 The “highest percentage” of Compensation for such Plan Year
at which the Employer’s Contributions are made for or allocated to any Key
Employee. The highest percentage shall be determined by dividing the Employer
Contributions made for or allocated to each Key Employee during the Plan Year
by the amount of his Compensation for such Plan Year, and selecting the greatest
quotient (expressed as a percentage). To determine the highest percentage, all
of the 

 

100

 

Employer’s
defined contribution plans within the Aggregation Group shall be treated as one
plan. The minimum shall be the amount in (a) above if this Plan and a
defined benefit plan of the Employer are required to be included in the
Aggregation Group and this Plan enables the defined benefit plan to meet the
requirements of Code Section 401(a)(4) or 410.

 

For purposes of (a) and
(b) above, Compensation shall be limited by Code Section 401(a)(17).

 

If the Employer’s
contributions and allocations otherwise required under the defined contribution
plan(s) are at least equal to the minimum above, no additional contribution
shall be required. If the Employer’s total contributions and allocations are
less than the minimum above, the Employer shall contribute the difference for
the Plan Year.

 

The minimum contribution
applies to all of the Employer’s defined contribution plans in the aggregate
which are Top-heavy Plans. A minimum contribution under a profit sharing plan
shall be made without regard to whether or not the Employer has profits.

 

If a person who is otherwise
entitled to a minimum contribution above is also covered under another defined
contribution plan of the Employer’s which is a Top-heavy Plan during that same
Plan Year, any additional contribution required to meet the minimum above shall
be provided in this Plan.

 

If a person who is otherwise
entitled to a minimum contribution above is also covered under a defined
benefit plan of the Employer’s that is a Top-heavy Plan during that same Plan
Year, the minimum benefits for him shall not be duplicated. The defined benefit
plan shall provide an annual benefit for him on, or adjusted to, a straight
life basis equal to the lesser of:

 

(c)                                  2 percent of his average compensation multiplied by his
years of service, or

 

(d)                                 20 percent of his average compensation.

 

Average compensation and
years of service shall have the meaning set forth in such defined benefit plan
for this purpose.

 

For purposes of this
section, any employer contribution made according to a salary reduction or
similar arrangement shall not apply in determining if the minimum contribution
requirement has been met, but shall apply in determining the minimum
contribution required. Matching contributions, as defined in Code Section 401(m),
shall be taken into account for purposes of satisfying the minimum contribution
requirements of Code Section 416(c)(2) and the Plan. Matching
contributions that are used to satisfy the minimum contribution requirements
shall be treated as matching contributions for purposes of the actual
contribution percentage test and other requirements of Code Section 401(m).

 

The requirements of this
section shall be met without regard to any Social Security contribution.

 

101

 

By executing this Plan, the
Primary Employer acknowledges having counseled to the extent necessary with
selected legal and tax advisors regarding the Plan’s legal and tax
implications.

 

Executed this
                                  
day of                                                 ,
                .

 

 

	
   

  	
  EXACT
  SCIENCES CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Title

  

 

 

ACKNOWLEDGED as NAMED FIDUCIARY this
                
day of
                                        ,

 

 

	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Title

  

 

102Exhibit
10.11.15

 

EXECUTION VERSION

 

FIFTEENTH AMENDMENT TO CREDIT AGREEMENT

 

THIS FIFTEENTH AMENDMENT TO
CREDIT AGREEMENT (this “Fifteenth Amendment”) is made and entered into
as of January 19, 2010, by and among the financial
institutions identified on the signature pages hereof (such financial
institutions, together with their respective successors and assigns, are
referred to hereinafter each individually as a “Lender” and collectively
as the “Lenders”), WELLS FARGO CAPITAL FINANCE, INC. (formerly known as
WELLS FARGO FOOTHILL, INC.), a California corporation, as arranger and
administrative agent for the Lenders (in such capacities, together with any
successor arranger and administrative agent, “Agent”), and TRC
COMPANIES, INC., a Delaware corporation (the “Administrative Borrower”),
on behalf of all Borrowers.

 

WITNESSETH:

 

WHEREAS, the Administrative
Borrower, the Administrative Borrower’s Subsidiaries party thereto, the Lenders
and Agent are parties to that certain Credit Agreement dated as of July 17,
2006 (as amended as of October 31, 2006, as of November 29, 2006, as
of December 29, 2006, as of January 31, 2007, as of July 30,
2007, as of September 25, 2007, as of November 28, 2007, as of December 14,
2007, as of March 3, 2008, as of April 4, 2008, as of April 22,
2008, as of May 20, 2008, as of August 19, 2008, and as of May 29,
2009, and as the same may be further amended, modified, supplemented or amended
and restated from time to time, the “Credit Agreement”); and

 

WHEREAS, Agent, the Lenders
and the Borrowers have agreed to amend the Credit Agreement, all as herein
provided subject to the terms and conditions set forth herein;

 

NOW, THEREFORE, in consideration of the agreements and provisions herein
contained, the parties hereto do hereby agree as follows:

 

Section 1.                                          Definitions.  Any capitalized terms used but not otherwise
defined herein shall have the meanings ascribed to such terms in the Credit
Agreement.

 

Section 2.                                          Amendments to Credit
Agreement.  Subject to the
terms and conditions set forth herein, the Credit Agreement is hereby amended,
as of the Effective Date (as defined in Section 4 below), as follows:

 

2.01.       Amendment to Section 3.3.  Section 3.3 of the Credit Agreement is
hereby amended by deleting the words “July 17, 2011” therein and inserting
“July 17, 2013” in lieu thereof.

 

2.02.       Amendments to Section 6.16 of the Credit Agreement.

 

2.02.1.    Amendment to Section 6.16(a).   Section 6.16(a) of the Credit
Agreement is hereby amended by deleting it in its entirety and inserting the
following in lieu thereof:

 

(a)           Minimum
EBITDA.  Fail to achieve EBITDA, measured on a quarterly basis, of
at least the required amount set forth in the following table for the
applicable period set forth opposite thereto:

 

 

	
  Applicable
  Amount

  	
   

  	
  Applicable Period

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  $

  	
  4,200,000

  	
   

  	
  For the 12 month period
  ending December 31, 2009

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  $

  	
  4,200,000

  	
   

  	
  For the 12 month period
  ending March 31, 2010

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  $

  	
  4,200,000

  	
   

  	
  For the 12 month period
  ending June 30, 2010

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  $

  	
  6,100,000

  	
   

  	
  For the 12 month period
  ending September 30, 2010

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  $

  	
  9,200,000

  	
   

  	
  For the 12 month period
  ending December 31, 2010

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  $

  	
  10,900,000

  	
   

  	
  For the 12 month period
  ending March 31, 2011

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  $

  	
  12,400,000

  	
   

  	
  For the 12 month period
  ending June 30, 2011

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  $

  	
  12,500,000

  	
   

  	
  For the 12 month period
  ending each fiscal quarter thereafter

  	
   

  

 

2.02.2.    Amendment to Section 6.16(c).  Section 6.16(c) of the Credit
Agreement is hereby amended by deleting it in its entirety and inserting the
following in lieu thereof:

 

(c)                                  Capital
Expenditures.  Make Capital Expenditures in any fiscal year
in excess of the amount set forth in the following table for the applicable
period:

 

	
  Applicable
  Amount

  	
   

  	
  Applicable Period

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  $

  	
  7,500,000

  	
   

  	
  fiscal year 2010

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  $

  	
  7,500,000

  	
   

  	
  fiscal year 2011

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  $

  	
  7,500,000

  	
   

  	
  fiscal year 2012

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  $

  	
  8,500,000

  	
   

  	
  fiscal year 2013

  	
   

  

 

2

 

2.02.3.    Amendment to Section 6.16(d).  Section 6.16(d) of the Credit
Agreement is hereby amended by deleting it in its entirety and inserting the
following in lieu thereof:

 

(d)                                  Minimum Fixed Charge
Coverage Ratio.  Fail to achieve
Fixed Charge Coverage
Ratio, measured on a quarterly basis, of at least the required ratio set forth
in the following table for the applicable period set forth opposite thereto; provided
that if for the 30-day period prior to the then most recent quarter-end the
average sum of Borrowers’ and their Restricted Subsidiaries’ Excess
Availability is greater than $20,000,000, then the provisions of this Section 6.16(d) shall
be deemed not to apply to the applicable period ending in such quarter; provided,
further, that notwithstanding the immediately preceding proviso, if the
sum of Borrowers’ and their Restricted Subsidiaries’ Excess Availability is
less than or equal to $15,000,000 at any time during the then most recent
quarter-end, then the provisions of this Section 6.16(d) shall apply
to the applicable period ending in such quarter and all subsequent quarters
during the term of this Agreement, and the immediately preceding proviso shall
no longer be applicable even if for the 30-day period prior to any subsequent
quarter-end the average sum of Borrowers’ and their Restricted Subsidiaries’
Excess Availability is greater than $20,000,000:

 

	
  Applicable Ratio

  	
   

  	
  Applicable
  Period

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  1.00:1.00

  	
   

  	
  For the 12 month period ending December 31, 2009

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  1.00:1.00

  	
   

  	
  For the 12 month period ending March 31, 2010

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  1.00:1.00

  	
   

  	
  For the 12 month period ending June 30, 2010

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  1.00:1.00

  	
   

  	
  For the 12 month period ending September 30, 2010

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  1.00:1.00

  	
   

  	
  For the 12 month period ending December 31, 2010

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  1.00:1.00

  	
   

  	
  For the 12 month period ending March 31, 2011

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  1.00:1.00

  	
   

  	
  For the 12 month period ending June 30, 2011

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  1.00:1.00

  	
   

  	
  For the 12 month period ending each fiscal quarter thereafter

  	
   

  

 

3

 

2.03.       Definition of EBITDA in Schedule 1.1.  The definition of “EBITDA” in Schedule 1.1
to the Credit Agreement is hereby amended by deleting it in its entirety and
inserting the following in lieu thereof:

 

“EBITDA” means, with respect to any fiscal period, Parent’s and
its Subsidiaries’ consolidated net earnings (or loss), minus (a) without
duplication and to the extent included in determining Parent’s and its
Subsidiaries’ consolidated net earnings (or loss) for such period, the sum for
such period of (i) extraordinary gains and (ii) interest income
(excluding interest income related to any Exit Strategy Program), in the case
of each of clauses (a)(i) and (a)(ii) above determined on a
consolidated basis in accordance with GAAP, plus (b) without duplication
and to the extent deducted in determining Parent’s and its Subsidiaries’
consolidated net earnings (or loss) for such period, the sum for such period of
(i) interest expenses, (ii) income taxes, (iii) depreciation and
amortization, (iv) restructuring charges incurred during the fiscal year
ended June 30, 2008 in an aggregate amount not to exceed $2,750,000, (v) restructuring
charges incurred during the fiscal year ended June 30, 2009 in an
aggregate amount not to exceed $1,500,000 (provided that no amount under
this clause (v) shall be added back for purposes of calculating EBITDA
unless and until Agent has received satisfactory documentation and other
evidence relating to any such restructuring charges), (vi) restructuring
charges incurred during the fiscal year ended June 30, 2010 in an
aggregate amount not to exceed $3,000,000 (provided that no amount under
this clause (vi) shall be added back for purposes of calculating EBITDA unless
and until Agent has received satisfactory documentation and other evidence
relating to any such restructuring charges), (vii) restructuring charges
incurred during the fiscal year ended June 30, 2011 in an aggregate amount
not to exceed $1,250,000 (provided that no amount under this clause (vii) shall
be added back for purposes of calculating EBITDA unless and until Agent has
received satisfactory documentation and other evidence relating to any such
restructuring charges), (viii) non-cash losses incurred in connection with
the Exit Strategy Program solely to the extent such losses are reimbursable to
Parent or one of its Subsidiaries under insurance policies with AIG (or another
insurer), and (ix) non-cash goodwill impairment charges and non-cash dividend
and preferred stock accretion charges, in the case of each of clauses (b)(i) through
and including (b)(ix) above, determined on a consolidated basis in
accordance with GAAP.

 

Section 3.                                          Representations
and Warranties.  In order to induce
Agent and the Lenders to enter into this Fifteenth Amendment, the
Administrative Borrower, for itself and on behalf of all of the other
Borrowers, hereby represents and warrants that:

 

3.01.       No Default. 
At and as of the date of this Fifteenth Amendment and at and as of the
Effective Date and both prior to and after giving effect to this Fifteenth
Amendment, no Default or Event of Default exists and is continuing.

 

3.02.       Representations and Warranties True and Correct.  At and as of the date of this Fifteenth
Amendment and both prior to and after giving effect to this Fifteenth
Amendment, each of the representations and warranties contained in the Credit
Agreement and other Loan Documents is true and correct in all material
respects.

 

4

 

3.03.       Corporate Power, Etc. 
Administrative Borrower (a) has all requisite corporate power and
authority to execute and deliver this Fifteenth Amendment and to consummate the
transactions contemplated hereby for itself and, in the case of Administrative
Borrower, on behalf of all of the other Borrowers, and (b) has taken all
action, corporate or otherwise, necessary to authorize the execution and
delivery of this Fifteenth Amendment and the consummation of the transactions
contemplated hereby for itself and, in the case of Administrative Borrower, on
behalf of all of the other Borrowers.

 

3.04.       No Conflict. 
The execution, delivery and performance by Administrative Borrower (on
behalf of itself and all of the other Borrowers) of this Fifteenth Amendment
will not (a) violate any provision of federal, state, or local law or
regulation applicable to any Borrower, the Governing Documents of any Borrower,
or any order, judgment or decree of any court or other Governmental Authority
binding on any Borrower, (b) conflict with or result in any breach of, or
constitute (with due notice or lapse of time or both) a default under any
material contractual obligation of any Borrower, (c) result in or require
the creation or imposition of any Lien of any nature whatsoever upon any
properties or assets of any Borrower, other than Permitted Liens, or (d) require
any approval of any Borrower’s interestholders or any approval or consent of
any Person under any material contractual obligation of any Borrower, other than
consents or approvals that have been obtained and that are still in force and
effect.

 

3.05.       Binding Effect. 
This Fifteenth Amendment has been duly executed and delivered by the
Administrative Borrower (on behalf of itself and all of the other Borrowers)
and constitutes the legal, valid and binding obligation of the Administrative
Borrower (on behalf of itself and all of the other Borrowers), enforceable
against the Administrative Borrower (on behalf of itself and all of the other
Borrowers) in accordance with its terms, except as such enforceability may be
limited by (a) applicable bankruptcy, insolvency, reorganization, moratorium or
other similar laws, now or hereafter in effect, relating to or affecting the
enforcement of creditors’ rights generally, and (b) the application of
general principles of equity (regardless of whether such enforceability is
considered in a proceeding in equity or at law).

 

Section 4.                                          Conditions.  This Fifteenth Amendment shall
be effective upon the fulfillment by the Borrowers, in a manner satisfactory to
Agent and the Lenders, of all of the following conditions precedent set forth
in this Section 4 (such date, the “Effective Date”):

 

4.01.       Execution of the Fifteenth Amendment.  Each of the parties hereto shall have executed
an original counterpart of this Fifteenth Amendment and shall have delivered
(including by way of telefacsimile or electronic mail) the same to Agent.

 

4.02.       Amendment and Extension Fees.  Borrowers shall have paid to Agent, for the ratable
benefit of the Lenders, in immediately available funds, (a) an amendment
fee equal to $25,000 and (b) an extension fee equal to $350,000.

 

4.03.       Amendment of Fee Letter.  Each of the parties thereto shall have
executed an original counterpart of the Second Amendment to the Fee Letter, in
form and substance satisfactory to Agent, and shall have delivered (including
by way of telefacsimile or electronic mail) the same to Agent.

 

5

 

4.04.       Representations and Warranties.  As of the Effective Date, the
representations and warranties set forth in Section 3 hereof shall
be true and correct.

 

4.05.       Compliance with Terms. 
Borrowers shall have complied in all respects with the terms hereof and
of any other agreement, document, instrument or other writing to be delivered
by Borrowers in connection herewith.

 

4.06.       Delivery of Other Documents. 
Agent shall have received all other instruments, documents and
agreements as Agent may reasonably request, in form and substance reasonably
satisfactory to Agent.

 

Section 5.                                          Miscellaneous.

 

5.01.       Continuing Effect. 
Except as specifically provided herein, the Credit Agreement and the
other Loan Documents shall remain in full force and effect in accordance with
their respective terms and are hereby ratified and confirmed in all respects.

 

5.02.       No Waiver; Reservation of Rights.  This Fifteenth Amendment is
limited as specified and the execution, delivery and effectiveness of this
Fifteenth Amendment shall not operate as a modification, acceptance or waiver
of any provision of the Credit Agreement, or any other Loan Document, except as
specifically set forth herein.  Notwithstanding anything contained in
this Fifteenth Amendment to the contrary, Agent and the Lenders expressly
reserve the right to exercise any and all of their rights and remedies under
the Credit Agreement, any other Loan Document and applicable law in respect of
any Default or Event of Default.

 

5.03.       References.

 

(a)           From
and after the Effective Date, (i) the Credit Agreement, the other Loan Documents and all agreements,
instruments and documents executed and delivered in connection with any of the
foregoing shall each be deemed amended hereby to the extent necessary, if any,
to give effect to the provisions of this Fifteenth Amendment and (ii) all
of the terms and provisions of this Fifteenth Amendment are hereby incorporated
by reference into the Credit Agreement, as applicable, as if such terms and
provisions were set forth in full therein, as applicable.

 

(b)           From
and after the Effective Date, (i) all references in the Credit Agreement
to “this Agreement”, “hereto”, “hereof”, “hereunder” or words of like import
referring to the Credit Agreement shall mean the Credit Agreement as amended
hereby and (ii) all references in the Credit Agreement, the other Loan
Documents or any other agreement, instrument or document executed and delivered
in connection therewith to “Credit Agreement”, “thereto”, “thereof”, “thereunder”
or words of like import referring to the Credit Agreement shall mean the Credit
Agreement as amended hereby.

 

5.04.       Governing Law. 
THIS FIFTEENTH AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

 

6

 

5.05.       Severability. 
The provisions of this Fifteenth Amendment are severable, and if any
clause or provision shall be held invalid or unenforceable in whole or in part
in any jurisdiction, then such invalidity or unenforceability shall affect only
such clause or provision, or part thereof, in such jurisdiction and shall not
in any manner affect such clause or provision in any other jurisdiction, or any
other clause or provision in this Fifteenth Amendment in any jurisdiction.

 

5.06.       Counterparts. 
This Fifteenth Amendment may be executed in any number of counterparts,
each of which counterparts when executed and delivered shall be an original,
but all of which shall together constitute one and the same instrument.  Delivery of an executed counterpart of this
Fifteenth Amendment by telefacsimile or electronic mail shall be equally
effective as delivery of a manually executed counterpart.  A complete set of counterparts shall be
lodged with the Administrative Borrower, Agent and each Lender.

 

5.07.       Headings. 
Section headings in this Fifteenth Amendment are included herein
for convenience of reference only and shall not constitute a part of this
Fifteenth Amendment for any other purpose.

 

5.08.       Binding Effect; Assignment.  This Fifteenth Amendment shall be binding
upon and inure to the benefit of Borrowers, Agent and the Lenders and their
respective successors and assigns; provided, however, that the
rights and obligations of Borrowers under this Fifteenth Amendment shall not be
assigned or delegated without the prior written consent of Agent and the
Lenders.

 

5.09.       Expenses. 
Borrowers agree to pay Agent upon demand, for all reasonable expenses,
including reasonable fees of attorneys and paralegals for Agent and the Lenders
(who may be employees of Agent or the Lenders), incurred by Agent and the
Lenders in connection with the preparation, negotiation and execution of this
Fifteenth Amendment and any document required to be furnished herewith.

 

5.10.       Integration.  This Fifteenth Amendment, together with the
other Loan Documents, incorporates all negotiations of the parties hereto with
respect to the subject matter hereof and is the final expression and agreement
of the parties hereto with respect to the subject matter hereof.

 

[Signature page follows]

 

7

 

IN WITNESS WHEREOF, the
parties hereto have caused this Fifteenth Amendment to be executed by their
respective officers thereunto duly authorized, as of the date first above
written.

 

 

	
   

  	
  ADMINISTRATIVE BORROWER:

  
	
   

  	
   

  
	
   

  	
  TRC COMPANIES, INC., a Delaware corporation, as Administrative
  Borrower, on behalf of itself and all other Borrowers

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Martin H. Dodd

  
	
   

  	
  Name:

  	
  Martin H. Dodd

  
	
   

  	
  Title:

  	
  Senior Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  AGENT AND LENDERS:

  
	
   

  	
   

  
	
   

  	
  WELLS
  FARGO CAPITAL FINANCE, INC. (formerly known as WELLS
  FARGO FOOTHILL, INC.),  as Agent and as Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jason P. Shanahan

  
	
   

  	
  Name:

  	
  Jason P. Shanahan

  
	
   

  	
  Title:

  	
  Vice President

  

 

 

[SIGNATURE
PAGE OF FIFTEENTH AMENDMENT]

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