Document:

Exhibit 10.44

 

PROFIT-SHARING/401(K) PLAN

 

FOR EMPLOYEES OF

 

ROCKWOOD SPECIALTIES INC.

 

As Amended and Restated Effective as of January 1, 2008

 

(Except as otherwise Provided)

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  INTRODUCTION

  	
  1

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  I DEFINITIONS

  	
  2

  
	
  1.1

  	
  Account

  	
  2

  
	
  1.2

  	
  Account Balance

  	
  2

  
	
  1.3

  	
  Actual Deferral
  Percentage

  	
  2

  
	
  1.4

  	
  Administrative
  Committee

  	
  2

  
	
  1.5

  	
  Affiliate

  	
  2

  
	
  1.6

  	
  Annuity Contract

  	
  2

  
	
  1.7

  	
  Average Actual
  Deferral Percentage

  	
  3

  
	
  1.8

  	
  Average
  Contribution Percentage

  	
  3

  
	
  1.9

  	
  Beneficiary

  	
  3

  
	
  1.10

  	
  Benefit
  Commencement Date

  	
  3

  
	
  1.11

  	
  Break-in-Service

  	
  3

  
	
  1.12

  	
  Change Date

  	
  4

  
	
  1.13

  	
  Code

  	
  4

  
	
  1.14

  	
  Company

  	
  4

  
	
  1.15

  	
  Compensation

  	
  4

  
	
  1.16

  	
  Contribution
  Percentage

  	
  5

  
	
  1.17

  	
  Defined Benefit
  Plan

  	
  5

  
	
  1.18

  	
  Defined
  Contribution Plan

  	
  6

  
	
  1.19

  	
  Disability

  	
  6

  
	
  1.20

  	
  Effective Date

  	
  6

  
	
  1.21

  	
  Elective
  401(k) Deferrals

  	
  6

  
	
  1.22

  	
  Eligible
  Employee

  	
  6

  
	
  1.23

  	
  Eligible
  Participant

  	
  6

  
	
  1.24

  	
  Employee

  	
  7

  
	
  1.25

  	
  Employer

  	
  7

  
	
  1.26

  	
  Employer-Derived
  Account Balance

  	
  7

  
	
  1.27

  	
  Employer
  Matching Contributions

  	
  7

  
	
  1.28

  	
  Employer
  Matching Contributions Subaccount

  	
  7

  
	
  1.29

  	
  Employment

  	
  7

  
	
  1.30

  	
  Employment
  Commencement Date

  	
  7

  
	
  1.31

  	
  Entry Date

  	
  7

  
	
  1.32

  	
  ERISA

  	
  7

  
	
  1.33

  	
  Excess Aggregate
  Contributions

  	
  7

  
	
  1.34

  	
  Excess
  Contributions

  	
  7

  
	
  1.35

  	
  Excess Deferral

  	
  8

  

 

i

 

	
  1.36

  	
  401(k) Election

  	
  8

  
	
  1.37

  	
  401(k) Subaccount

  	
  8

  
	
  1.38

  	
  Highly
  Compensated Employee

  	
  8

  
	
  1.39

  	
  Hour of Service

  	
  8

  
	
  1.40

  	
  Investment Fund

  	
  9

  
	
  1.41

  	
  Investment
  Manager

  	
  9

  
	
  1.42

  	
  Leased Employee

  	
  9

  
	
  1.43

  	
  Leave of Absence

  	
  10

  
	
  1.44

  	
  Non-Highly
  Compensated Employee

  	
  10

  
	
  1.45

  	
  Normal
  Retirement Age

  	
  10

  
	
  1.46

  	
  Participant

  	
  10

  
	
  1.47

  	
  Participating
  Affiliate

  	
  10

  
	
  1.48

  	
  Period of
  Service

  	
  10

  
	
  1.49

  	
  Period of
  Severance

  	
  10

  
	
  1.50

  	
  Plan

  	
  10

  
	
  1.51

  	
  Plan Year

  	
  10

  
	
  1.52

  	
  Primary Employee

  	
  10

  
	
  1.53

  	
  Profit-Sharing
  Contribution

  	
  10

  
	
  1.54

  	
  Profit-Sharing
  Contributions Subaccount

  	
  10

  
	
  1.55

  	
  Reduction in
  Force

  	
  10

  
	
  1.56

  	
  Rollover
  Contribution

  	
  10

  
	
  1.57

  	
  Rollover
  Contributions Subaccount

  	
  11

  
	
  1.58

  	
  Seconded
  Employee

  	
  11

  
	
  1.59

  	
  Severance from
  Service Date

  	
  11

  
	
  1.60

  	
  Spousal Consent

  	
  11

  
	
  1.61

  	
  Spouse

  	
  11

  
	
  1.62

  	
  Surviving Spouse

  	
  11

  
	
  1.63

  	
  Termination of Employment

  	
  11

  
	
  1.64

  	
  Trust

  	
  11

  
	
  1.65

  	
  Trust Agreement

  	
  11

  
	
  1.66

  	
  Trustee

  	
  11

  
	
  1.67

  	
  Valuation Date

  	
  12

  
	
  1.68

  	
  Vesting Service

  	
  12

  
	
  1.69

  	
  Year of Service

  	
  12

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  II PARTICIPATION

  	
  13

  
	
  2.1

  	
  Admission as a
  Participant

  	
  13

  
	
  2.2

  	
  Rehired
  Employees

  	
  13

  
	
  2.3

  	
  Termination of
  Participation

  	
  14

  
	
  2.4

  	
  Rollover
  Membership

  	
  14

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  III CONTRIBUTIONS

  	
  15

  
	
  3.1

  	
  Employer
  Contributions

  	
  15

  
	
  3.2

  	
  After-Tax
  Contributions

  	
  18

  
	
  3.3

  	
  Elective
  401(k) Deferral Limitations

  	
  18

  
	
  3.4

  	
  Employer
  Matching Contribution Limitations

  	
  21

  

 

ii

 

	
  3.5

  	
  Rollover
  Contributions

  	
  23

  
	
  3.6

  	
  Timing of
  Contributions

  	
  23

  
	
  3.7

  	
  Forfeitures

  	
  24

  
	
  3.8

  	
  Limitation on
  Allocations

  	
  24

  
	
  3.9

  	
  [Reserved]

  	
  27

  
	
  3.10

  	
  Return of
  Employer Contributions Under Special Circumstances

  	
  27

  
	
  3.11

  	
  Profits Not
  Required

  	
  27

  
	
  3.12

  	
  Contributions
  Conditioned on Deductibility

  	
  27

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  IV ACCOUNTS, INVESTMENTS AND ALLOCATIONS

  	
  28

  
	
  4.1

  	
  Establishment of
  Participant Accounts

  	
  28

  
	
  4.2

  	
  Investment of
  Funds

  	
  28

  
	
  4.3

  	
  Allocation of
  Earnings to Accounts

  	
  28

  
	
  4.4

  	
  Allocation
  Report

  	
  29

  
	
  4.5

  	
  Allocation
  Corrections

  	
  29

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  V VESTING AND TOP-HEAVY PROVISIONS

  	
  30

  
	
  5.1

  	
  Determination of
  Vesting

  	
  30

  
	
  5.2

  	
  Rules for
  Crediting Vesting Service

  	
  30

  
	
  5.3

  	
  Rules for
  Crediting Service Upon Termination of Employment

  	
  31

  
	
  5.4

  	
  Top-Heavy Provisions

  	
  32

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  VI AMOUNT AND PAYMENT OF BENEFITS TO PARTICIPANTS

  	
  36

  
	
  6.1

  	
  Termination of
  Employment

  	
  36

  
	
  6.2

  	
  In-Service
  Distributions

  	
  37

  
	
  6.3

  	
  Loans

  	
  38

  
	
  6.4

  	
  Minimum Required
  Distributions

  	
  40

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  VII FORMS OF PAYMENT OF ACCOUNTS

  	
  45

  
	
  7.1

  	
  Methods of
  Distribution

  	
  45

  
	
  7.2

  	
  Election of
  Optional Forms

  	
  45

  
	
  7.3

  	
  Direct Rollovers

  	
  45

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  VIII DEATH BENEFITS

  	
  47

  
	
  8.1

  	
  Payment of
  Account Balances

  	
  47

  
	
  8.2

  	
  Beneficiary

  	
  47

  
	
  8.3

  	
  Required
  Commencement

  	
  47

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  IX FIDUCIARIES

  	
  48

  
	
  9.1

  	
  Named
  Fiduciaries

  	
  48

  
	
  9.2

  	
  Employment of
  Advisers

  	
  48

  
	
  9.3

  	
  Multiple
  Fiduciary Capacities

  	
  48

  
	
  9.4

  	
  Payment of
  Expenses

  	
  48

  
	
  9.5

  	
  Indemnification

  	
  48

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  X TRUSTEE AND TRUST FUND

  	
  50

  

 

iii

 

	
  10.1

  	
  Establishment of
  Trust

  	
  50

  
	
  10.2

  	
  Powers and
  Duties of the Trustee

  	
  50

  
	
  10.3

  	
  Exclusive
  Benefit

  	
  50

  
	
  10.4

  	
  Delegation of
  Responsibility

  	
  50

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  XI PLAN ADMINISTRATION

  	
  51

  
	
  11.1

  	
  The
  Administrative Committee

  	
  51

  
	
  11.2

  	
  Administrative
  Committee Powers and Duties

  	
  51

  
	
  11.3

  	
  Claims Procedure

  	
  52

  
	
  11.4

  	
  Delegation of
  Responsibility

  	
  54

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  XII MANAGEMENT, CONTROL AND INVESTMENT OF PLAN ASSETS

  	
  55

  
	
  12.1

  	
  Investment Funds

  	
  55

  
	
  12.2

  	
  Valuation of
  Accounts

  	
  55

  
	
  12.3

  	
  Investment in
  Insurance Contract

  	
  55

  
	
  12.4

  	
  The Investment
  Manager

  	
  55

  
	
  12.5

  	
  Compensation

  	
  56

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  XIII PLAN AMENDMENT OR TERMINATION

  	
  57

  
	
  13.1

  	
  Plan Amendment

  	
  57

  
	
  13.2

  	
  Limitations of
  Plan Amendment

  	
  57

  
	
  13.3

  	
  Right of the
  Company to Terminate Plan

  	
  57

  
	
  13.4

  	
  Effect of
  Partial or Complete Termination

  	
  58

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  XIV MISCELLANEOUS PROVISIONS

  	
  59

  
	
  14.1

  	
  Plan Not a
  Contract of Employment

  	
  59

  
	
  14.2

  	
  Source of
  Benefits

  	
  59

  
	
  14.3

  	
  Benefits Not
  Assignable

  	
  59

  
	
  14.4

  	
  Domestic
  Relations Orders

  	
  59

  
	
  14.5

  	
  Benefits Payable
  to Minors, Incompetents and Others

  	
  59

  
	
  14.6

  	
  Merger or
  Transfer of Assets

  	
  60

  
	
  14.7

  	
  Participation in
  the Plan By an Affiliate

  	
  60

  
	
  14.8

  	
  Action by the
  Company or a Participating Affiliate

  	
  60

  
	
  14.9

  	
  Provision of
  Information

  	
  61

  
	
  14.10

  	
  Notice of
  Address

  	
  61

  
	
  14.11

  	
  Controlling Law

  	
  61

  
	
  14.12

  	
  Military Service

  	
  61

  
	
  14.13

  	
  Conditional
  Adoption

  	
  61

  
	
  14.14

  	
  Word Usage and
  Article and Section References

  	
  61

  
	
  14.15

  	
  Effect of
  Mistake

  	
  61

  
	
   

  	
   

  	
   

  
	
  SUPPLEMENT A

  	
  64

  
	
   

  	
   

  	
   

  
	
  SUPPLEMENT B

  	
  66

  
	
   

  	
   

  	
   

  
	
  SUPPLEMENT C

  	
  68

  

 

iv

 

	
  SUPPLEMENT D

  	
  70

  
	
   

  	
   

  	
   

  
	
  SUPPLEMENT E

  	
  72

  
			

 

v

 

INTRODUCTION

 

Laporte
Inc. established the Profit-Sharing/401(k) Plan for Employees of Laporte
Inc. (the “Plan”) effective as of January 1, 1989. The Plan was amended
from time to time for administrative reasons, to reflect changes in the Laporte
Inc. corporate structure, and to comply with changes in relevant law.

 

The
Plan was amended and restated effective as of January 1, 1997 (except
where otherwise indicated), to comply with the Uruguay Round Agreements Act (“GATT”),
the Uniformed Services Employment and Reemployment Rights Act of 1994 (“USERRA”),
the Small Business Job Protection Act of 1996 (“SBJPA”), the Taxpayer Relief
Act of 1997 (TRA ‘97), the Internal Revenue Service Restructuring and Reform
Act of 1998 (RRA ‘98), and the Community Renewal Tax Relief Act of 2000 (“CRA”)
(collectively known as “GUST”), and other changes in applicable law.

 

Effective
as of March 1, 2001, the Plan name was changed to the Profit-Sharing/401(k) Plan
for Employees of Rockwood Specialties Inc. to reflect the acquisition of
Laporte Inc. by Rockwood Specialties Inc. (the “Company”).

 

This
Plan was amended and restated effective as of January 1, 2002 (except
where otherwise indicated) to reflect the applicable provisions of the Economic
Growth and Tax Relief Reconciliation Act of 2001 (“EGTRRA”).

 

The
Plan is hereby amended and restated effective as of January 1, 2008
(except where otherwise indicated), to incorporate all effective amendments to
the Plan since the Plan’s last amendments and restatement, and to reflect
applicable legislative changes, including changes under EGTRRA, the Pension
Protection Act of 2006, and the final regulations under Code Section 415.

 

The
Company intends that this Plan and the related Trust qualify under all
applicable provisions of the Internal Revenue Code of 1986, as amended (the “Code”),
and the Employee Retirement Income Security Act of 1974, as amended (“ERISA”),
and each of the terms of this Plan and the related Trust Agreement shall be so
interpreted.

 

The
benefits provided under the Plan to any Participant who terminates Employment,
retires or dies while employed by the Company or any Affiliate thereof shall be
determined in accordance with the provisions of the Plan as in effect on the
date of such Termination of Employment (unless such person is thereafter
reeemployed and again becomes a Participant in the Plan), retirement or death.

 

 

ARTICLE
I

DEFINITIONS

 

Each
of the following terms shall have the meaning set forth in this Article I
for purposes of this Plan:

 

1.1           Account  shall mean a Participant’s collective account
that includes a separate Profit-Sharing Contributions Subaccount, 401(k) Subaccount,
Employer Matching Contributions Subaccount, and Rollover Contributions
Subaccount, as the case may be.

 

1.2           Account
Balance  shall mean the value of a
Participant’s Account, determined as of the applicable Valuation Date.

 

1.3           Actual
Deferral Percentage  shall mean the
ratio (expressed as a percentage to the nearest 1/100th of 1%) of Elective 401(k) Deferrals
on behalf of an Eligible Participant for the Plan Year to the Eligible
Participant’s Compensation for the Plan Year. For purposes of determining
Actual Deferral Percentage, an Eligible Participant’s Compensation for the Plan
Year shall not include Compensation paid during (a) any period prior to
the Employee’s participation date, and (b) any period when the Employee
was not an Eligible Participant. In addition, Excess Deferrals of a Non-Highly
Compensated Employee attributable to elective deferrals to this Plan or any
other plan of the Company or an Affiliate shall not be taken into account.

 

1.4           Administrative
Committee  shall mean the committee
appointed pursuant to, and having the responsibilities specified in, Article XI
of the Plan.  In the event no such committee
has been appointed, the Company shall be the Administrative Committee.

 

1.5           Affiliate  shall mean any corporation or unincorporated
trade or business (other than the Company) while it is:

 

(a)        a member of a controlled group of
corporations (within the meaning of Code Section 414(b)) of which the
Company is a member;

 

(b)        a trade or business under “common
control” (within the meaning of Code Section 414(c)) with the Company;

 

(c)        a member of an “affiliated service group”
(within the meaning of Code Section 414(m)) which includes the Company; or

 

(d)        any other entity required to be
aggregated with the Company under Code Section 414(o).

 

Notwithstanding
the foregoing, for purposes of applying Code Sections 414(b) and (c) to
Code Section 415, the phrase “more than 50 percent” shall be substituted
for the phrase “more than 80% percent” each place it appears in Code Section 1563(a)(i).

 

1.6           Annuity
Contract  shall mean an individual or group annuity
contract issued by an insurance company providing periodic benefits, whether
fixed, variable or both, the benefits or 

 

2

 

value of which a Participant or Beneficiary cannot
transfer, sell, assign, discount, or pledge as collateral for a loan or as
security for the performance of an obligation, or for any other purpose, to any
person other than the issuer thereof. The terms of any Annuity Contract
distributed by the Plan to a Participant or Beneficiary shall comply with the
terms of this Plan.

 

1.7           Average
Actual Deferral Percentage  shall
mean, for any group of Eligible Participants, the average (expressed as a
percentage to the nearest 1/100th of 1%) of the Actual Deferral Percentages for
each of the Eligible Participants in that group, including those not making
Elective 401(k) Deferrals.

 

1.8           Average
Contribution Percentage  shall mean,
for any group of Eligible Participants, the average (expressed as a percentage
to the nearest 1/100th of 1%) of the Contribution Percentages for each of the
Eligible Participants in that group, including those on whose behalf Employer
Matching Contributions are not being made.

 

1.9           Beneficiary  shall mean the person or persons entitled to
receive any payment of benefits from the Plan upon a Participant’s death, as
determined in accordance with Section 8.2.

 

1.10         Benefit
Commencement Date  shall mean the
first day of the first period for which an annuity benefit is payable to the
Participant under the Plan or, if a Participant’s benefit is not payable in the
form of an annuity, the first day on which all events have occurred that
entitle the Participant to receive his or her benefit.

 

1.11         Break-in-Service  shall mean a one-year period of severance
determined on the basis of a 12-consecutive-month period beginning on the
severance from service date and ending on the first anniversary of such date,
provided that the Employee during such 12-consecutive-month period does not
perform an hour of service (within the meaning of Section 2530.200b-2(a)(1) of
the U.S. Department of Labor Regulations) for the Employer; provided, however, (a) if
an Employee severs from service as a result of quit, discharge or retirement
and then returns to service within 12 months, the period of severance shall be
deemed a period of service, and (b) if an Employee is absent from service
for any reason other than quit, discharge, retirement or death and during the
absence a quit, discharge or retirement occurs, the period of time between the
severance from service date (i.e., the date of quit, discharge or retirement)
and the first anniversary of the date on which the employee was first absent
shall be taken in account, if the employee returns to service on or before such
first anniversary date.

 

Solely for purposes of determining whether a Break-in-Service has occurred,
an Employee who is absent from work for any period  by reason of the (a) pregnancy of the
Employee (b) the birth of a child of the Employee, (c) the placement
of a child with the Employee in connection with the adoption of such child by
such Employee, or (d) caring for such child for a period beginning
immediately following such birth or placement, shall be credited with a
sufficient Period of Service to prevent a Break-in-Service; provided, however,
the Employee shall have a Severance from Service Date which is the second
anniversary of the first day of such absence if the Employee is absent from
service beyond the first anniversary of the first day of such absence. The
period between the first and second anniversaries of the first day of absence from
work shall not be deemed a period of service nor a period of severance.

 

3

 

An Employee who is reemployed and is subject to reemployment under the
Uniformed Services Reemployment Rights Act of 1994 (“USERRA”) shall not be
treated as having incurred a Break in Service by reason of the individual’s
period of qualified military service as defined in USERRA.

 

For purposes of this Section 1.11,
a “severance from service” shall occur on the earlier of (a) the date on
which an Employee quits, retires, is discharged or dies, or (ii) the first
anniversary of the first date of a period in which an Employee remains absent
from service (with or without pay) with the Employer for any reason other than
quit, retirement, discharge or death, such as vacation, holiday, sickness,
disability, leave of absence or layoff.

 

1.12         Change
Date  shall mean the first day of
each calendar month and such other dates as may be specified by the
Administrative Committee.

 

1.13         Code  shall mean the Internal Revenue Code of 1986,
as now in effect or as amended from time to time. A reference to a specific
provision of the Code shall include such provision, any successor provision,
and any applicable regulation pertaining thereto.

 

1.14         Company  shall mean Rockwood Specialties Inc. or any
successor legal entity.

 

1.15         Compensation  shall mean all remuneration for services
rendered paid by the Employer to an Employee, including, without limitation,
bonuses, overtime and commissions, but excluding amounts paid or reimbursed by
the Employer for moving expenses incurred by an Employee to the extent that, at
the time of payment, it is reasonable to believe such amounts are deductible by
the Employee under Code Section 217, the value of any non-qualified stock
option granted to a Highly Compensated Employee by the Employer, amounts paid
to a Highly Compensated Employee to enable such Employee to pay taxes on
certain items of compensation received from the Employer, and items which would
be excluded from the definition of “compensation” within the meaning of Treas.
Reg. Section 1.415-2(d)(3). Compensation includes compensation which is
not currently includible in the Participant’s gross income by reason of the
application of Code Section 125, Code Section 402(e)(3), or Code Section 402(h)(1)(B).
Effective as of January 1, 2001, Compensation shall also include amounts
not includible in the Employee’s gross income by reason of the application of
Code Section 132(f).

 

Notwithstanding
the foregoing, the Compensation taken into account for an Employee for any Plan
Year shall not exceed $150,000, as adjusted pursuant to Code Section 401(a)(17)
(the “Code Section 401(a)(17) limitation”). For the 2001 Plan Year, the
Code Section 401(a)(17) limitation is $170,000. Effective for Plan Years
beginning after December 31, 2001, Compensation taken into account for an
Employee for a Plan Year shall not exceed $200,000, as adjusted for
cost-of-living increases in accordance with Section 401 (a)(1 7)(B) of
the Code.

 

Effective
for January 1, 2008, Compensation shall also include Post-Severance
Compensation.  “Post-Severance
Compensation” means, for Plan Years that begin on or after January 1,
2008, the following amount(s) that would have been included in the
definition of Compensation if the amounts were paid prior to the Employee’s
Severance from Service Date from employment with the Employer, provided such
amount(s) are paid to the Employee by the 

 

4

 

later
of 21⁄2 months after the Employee’s Severance from Service Date from employment
with the Employer or the end of the Plan Year that includes the Severance from
Service Date from employment with the Employer:

 

(i)             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

 

(ii)            The
payment would have been paid to the Employee prior to a Severance from Service
Date from employment if the Employee had continued in employment with the
Employer.

 

Post-Severance Compensation shall also include:

 

(i)             Payment
for unused accrued bona fide sick, vacation, or other leave, but only if the
Employee would have been able to use the leave if employment had continued; or

 

(ii)            Received
by an Employee pursuant to a nonqualified unfunded deferred compensation plan,
but only if the payment would have been paid to the Employee at the same time
if the Employee had continued in employment with the Employer and only to that
the payment is includible in the Employee’s gross income.

 

Any
other payment that is not described shall not be considered Post-Severance
Compensation if paid after the Severance from Service Date from employment with
the Employer, even if paid within the time period described above. Accordingly,
Post-Severance Compensation shall not include severance pay, or parachute
payments within the meaning of Code Section 280G(b)(2), if they are paid
after the Severance from Service Date from employment with the Employer, and
shall not include post-severance payments under a non-qualified unfunded
deferred compensation plan unless the payments would have been paid at that
time without regard to the severance from employment.

 

1.16         Contribution
Percentage  shall mean the ratio
(expressed as a percentage to the nearest 1/100th of 1%) of the Employer
Matching Contributions under the Plan on behalf of an Eligible Participant for
the Plan Year to the Eligible Participant’s Compensation for the Plan Year. For
purposes of determining Contribution Percentage, an Eligible Participant’s
Compensation for a Plan Year shall not include Compensation during (i) any
period prior to the date such Eligible Participant entered the Plan, and (ii) any
period when the Eligible Participant was not an Eligible Participant. In
addition, in determining Contribution Percentage, Employer Matching
Contributions which are forfeited because they relate to Excess Contributions
or Excess Deferrals shall not be taken into account.

 

1.17         Defined
Benefit Plan  shall mean any plan of
the type defined in Code Section 414(j) maintained by the Company or
an Affiliate.

 

5

 

1.18         Defined
Contribution Plan  shall mean any
plan of the type defined in Code Section 414(i) maintained by the
Company or an Affiliate.

 

1.19         Disability  shall mean a physical or mental condition
which results in the Participant’s total and permanent inability to meet the
requirements of the Participant’s customary employment in a satisfactory
manner, by reason of any medically determinable physical or mental impairment
which can be expected to result in death or which has lasted or can be expected
to last for a continuous period of not less than 12 months; provided, however,
that such disability:

 

(a)          was not contracted, suffered, or
incurred while the Participant was engaged in, or did not result from his or
her having engaged in, a criminal enterprise; or

 

(b)         was not sustained while the Participant
was employed by anyone other than the Company or an Affiliate. A Participant
shall not be considered to have a Disability unless he or she furnishes proof
of the existence of such Disability to the Administrative Committee in the form
and manner, and at such time, as the Administrative Committee may request.

 

1.20         Effective
Date  shall mean January 1, 2008
the effective date of this amendment and restatement of this Plan, except as
otherwise provided.

 

1.21         Elective
401(k) Deferrals  shall mean
contributions made to the Plan by the Employer pursuant to a Participant’s 401(k) Election.

 

1.22         Eligible
Employee  shall mean all Employees of
the Employer other than: (a) Employees included in a unit of employees
covered by a collective bargaining agreement between the Employer and an
employee representative (not including any organization more than half of whose
members are owners, officers or executives of the Employer) in the negotiation
of which retirement benefits were the subject of good faith bargaining, unless
such bargaining agreement specifically provides for participation in the Plan; (b) Leased
Employees and other individuals providing services to the Employer pursuant to
an agreement between the Employer and a third party, even if they are not “leased
employees” under Section 414(n) of the Code; (c) individuals
providing services pursuant to contracts designating them as independent
contractors or consultants, or individuals designated by the Employer as
independent contractors or consultants; and (d) any other individual who
is compensated, directly or indirectly, by the Employer and with respect to whom
such compensation is not treated by the Employer at the time of payment as
being subject to statutorily required payroll tax withholding, such as
withholding of federal and/or state income tax and/or withholding of the
Employee’s share of Social Security tax, provided that statutorily required
backup withholding shall not be considered to be payroll tax withholding. The
foregoing exclusions from the definition of “Eligible Employee” shall apply
notwithstanding any contrary determination of employee status by any court or
governmental agency including, but not limited to, the Internal Revenue Service
or the Department of Labor.

 

1.23         Eligible
Participant   shall mean any Eligible
Employee who has met the service requirements of Section 2.1.

 

6

 

1.24         Employee 
shall mean any person in an employee-employer relationship with the
Company or an Affiliate (as reported on the Company’s or an Affiliates payroll
records) and shall include Leased Employees.  Notwithstanding the foregoing, if such Leased
Employees do not constitute more than 20% of the nonhighly compensated work
force, within the meaning of Code Section 414(n)(5)(C)(ii), of the Company
and its Affiliates, the term “Employee” shall not include those Leased
Employees covered by a plan described in Code Section 414(n)(5).

 

1.25         Employer  shall mean the Company and each Participating
Affiliate in the Plan pursuant to Section 14.7.

 

1.26         Employer-Derived
Account Balance  shall mean the
balance of a Participant’s Profit-Sharing Contributions Subaccount and Employer
Matching Contributions Subaccount.

 

1.27         Employer
Matching Contributions  shall mean
any contribution to the Plan made by the Employer and allocated to a
Participant’s Employer Matching Contributions Subaccount by reason of the
Participant’s 401(k) Election.

 

1.28         Employer
Matching Contributions Subaccount 
shall mean the separate subaccount established for a Participant
pursuant to Section 4.1(b).

 

1.29         Employment  shall mean services performed for the Company
or an Affiliate as an Employee.

 

1.30         Employment
Commencement Date  shall mean the
date on which an Employee first performs an Hour of Service.

 

1.31         Entry
Date  shall mean the first day of
every calendar month and such other dates as may be specified by the
Administrative Committee.

 

1.32         ERISA  shall mean the Employee Retirement Income
Security Act of 1974, as amended from time to time. Reference to a specific
provision of ERISA shall include such provision, any successor provision, and
any applicable regulation pertaining thereto.

 

1.33         Excess
Aggregate Contributions  shall mean,
with respect to any Plan Year, the aggregate amount of Employer Matching
Contributions made for the Plan Year on behalf of Highly Compensated Employees
in excess of the maximum amount of such contributions permitted under Section 3.4.1,
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.

 

1.34         Excess
Contributions  shall mean, with
respect to any Plan Year, the aggregate amount of Elective 401(k) Deferrals
made for the Plan Year on behalf of Highly Compensated Employees in excess of
the maximum amount of such contributions permitted under Section 3.3.1(b),
determined by hypothetically reducing contributions made on behalf of Highly
Compensated Employees in order of their Actual Deferral Percentages, beginning
with the highest of such percentages.

 

7

 

1.35         Excess
Deferral  shall mean the amount of
Elective 401(k) Deferrals under this Plan in excess of the adjusted annual
dollar limit of Section 3.3.1 below, or the amount of Elective 401(k) Deferrals
that a Participant allocates to this Plan pursuant to the claim procedure set
forth in Section 3.3.1(a).

 

1.36         401(k) Election  shall mean the election by a Participant to
make Elective 401(k) Deferrals in accordance with Section 3.1.2.

 

1.37         401(k) Subaccount  shall mean the separate subaccount established
for a Participant pursuant to Section 4.1(a).

 

1.38         Highly
Compensated Employee  shall mean,
with respect to any Plan Year, an Employee who performs services for the
Company or any Affiliate during the Plan Year, and:

 

(a)          was a 5% owner (as defined in Code Section 414(q)(2))
during the Plan Year or the preceding Plan Year; or

 

(b)         had compensation (as defined in Code Section 415(c)(3))
in excess of $80,000, as adjusted in accordance with Code Section 415(d),
for the preceding Plan Year and was in the top-paid group for such preceding
Plan Year. The top-paid group is the group consisting of the top 20% of
Employees when ranked on the basis of compensation.

 

A former Employee shall be treated as a Highly Compensated Employee if
such Employee was a Highly Compensated Employee when he or she separated from
service or at any time after attaining age 55. 
The determination of who is a Highly Compensated Employee shall be made
in accordance with Code Section 414(q).

 

1.39         Hour
of Service  shall shall mean service credited in accordance
with the elapsed time method under Treas. Reg §1.410(a)-7.  Accordingly,
for purposes of the Employee’s rights with respect to eligibility to
participate, vesting and benefit accrual, the Plan shall credit the period of
time which elapses while the Employee is employed (i.e., while the employment
relationship exists) with the Employer, regardless of the actual number of
hours he or she completes during such period. An Employee’s service shall be
taken into account for purposes of eligibility to participate and vesting as of
the date he or she first performs an hour of service within the meaning of
Treas. Reg. §2530.200b-2(a)(1) for the Employer. Service shall be taken
into account for the period of time from the date the Employee first performs
such an hour of service until the date he or she severs from service with the
Employer.

 

The
date an Employee severs from service shall be the earlier of the date the
Employee quits, is discharged, retires or dies, or the first anniversary of the
date the employee is absent from service for any other reason (e.g.,
disability, vacation, leave of absence, layoff, etc.). If an Employee is
granted a leave of absence (and if no intervening event occurs), the Severance
from Service Date shall occur one year after the date the Employee was first
absent on leave, and this one year of absence shall be taken into account as
service for the Employee. A quit, discharge, retirement or death within the
year after the beginning of an absence for any other reason shall result in an
immediate severance from service.

 

8

 

For
purposes of eligibility to participate and vesting, an Employee who has severed
from service by reason of a quit, discharge or retirement may be entitled to
have a period of time of 12 months or less taken into account by the Employer
if the Employee returns to service within a certain period of time and performs
an hour of service within the meaning of Treas. Reg. §2530.200b-2(a)(1). In general,
the period of time during which the Employee must return to service shall begin
on the date the Employee severs from service as a result of a quit, discharge
or retirement and ends on the first anniversary of such date. However, if the
Employee is absent for any other reason (e.g., layoff) and then quits, is
discharged or retires, the period of time during which the Employee may return
and receive credit shall begin on the Severance from Service Date and end one
year after the first day of absence (e.g., first day of layoff). A severance
from service (e.g., a quit), or an absence (e.g., layoff) followed by a
severance from service, shall not result in a period of time of more than one
year being required to be taken into account after an Employee severs from
service or is absent from service.

 

For
purposes of benefit accrual, an Employee shall be entitled to have his or her
service taken into account from the date he or she begins to participate in the
Plan until the Severance from Service Date. Periods of severance under any
circumstances are not required to be taken into account.

 

Prior to January 1, 2002, an Hour of Service was
determined under the general method of crediting service for an Employee under
Treas. Reg. §2530.200b-2 (i.e., actual counting of hours of service during the
applicable 12-consecutive-month computation period), and/or the equivalencies
set forth in Treas. Reg. §2530.200b-3. Accordingly, an Employee received a year’s
credit (in units of years of service or years of participation) for a
computation period during which the Employee was credited with a specified
number of hours of service. An Employee’s rights with respect to eligibility to
participate, vesting and benefit accrual was determined by totaling the number
of years’ credit to which an Employee was entitled.

 

1.40         Investment
Fund  shall mean an investment fund,
if any, in which the Trust may be invested pursuant to Section 12.1.

 

1.41         Investment
Manager  shall mean any person
appointed pursuant to Section 12.4 having the power to direct the
investment of assets in accordance with that Section.

 

1.42         Leased
Employee  shall mean, pursuant to
Code Section 414(n), any person who is not a common law employee of the
Company or an Affiliate and who provides services to the Company or an
Affiliate if:

 

(a)          Such services are provided pursuant to
an agreement between the Company or the Affiliate and any other person (called
a “leasing company”);

 

(b)         Such person has performed such services
for the Company or the Affiliate on a substantially full-time basis for a
period of at least one year; and

 

(c)          Such services are performed under
primary direction or control by the Company or the Affiliate.

 

9

 

1.43         Leave
of Absence  shall mean a leave
granted by the Employer or an Affiliate in accordance with its standard
personnel policies applied in a nondiscriminatory manner to all Employees
similarly situated. Leave of Absence shall also include an unpaid leave under
the Family and Medical Leave Act of 1993.

 

1.44         Non-Highly
Compensated Employee  shall mean an
Employee of the Company or an Affiliate who is not a Highly Compensated
Employee.

 

1.45         Normal
Retirement Age  shall mean age 65.

 

1.46         Participant  shall mean an Eligible Employee who has commenced,
but not terminated, participation in the Plan as provided in Article II.

 

1.47         Participating
Affiliate  shall mean any Affiliate
which has duly adopted the Plan with the consent of the Company and has not
withdrawn therefrom.

 

1.48         Period
of Service  shall mean a period
beginning on an Employee’s Employment Commencement Date (or re-Employment
Commencement Date, as applicable) and ending on the Employee’s Severance from
Service Date.

 

1.49         Period
of Severance  shall mean a period
beginning on an Employee’s Severance from Service Date and ending on the date
the Employee earns an Hour of Service.

 

1.50         Plan  shall mean the Profit-Sharing/401(k) Plan
for Employees of Rockwood Specialties Inc. and any amendments thereto.

 

1.51         Plan
Year  shall mean the calendar year.

 

1.52         Primary
Employee  shall mean each Eligible
Employee other than a Seconded Employee.

 

1.53         Profit-Sharing
Contribution  shall mean any
contribution made to the Plan and allocated to a Participant’s Profit-Sharing
Contributions Subaccount in accordance with Section 3.1.4.

 

1.54         Profit-Sharing
Contributions Subaccount  shall mean
the separate subaccount established for a Participant pursuant to Section 4.1(c).

 

1.55         Reduction
in Force  shall mean the reduction of
an Employer’s workforce due to a voluntary or involuntary Termination of
Employment where the Participant is eligible to receive severance pay and/or
severance benefits under an employment termination program or severance plan,
program or arrangement offered by an Employer to at least 5 Participants within
a period not exceeding 6 months.

 

1.56         Rollover
Contribution  shall mean a direct rollover of distributions
from the following types of plans: qualified plans described in Code Section 401(a) or
403(a), including after-tax employee contributions; annuity contracts described
in Code Section 403(b), excluding after-tax employee contributions; and
eligible plans under Code Section 457(b) which are maintained by a
state, political subdivision of a state, or any agency or
instrumentality of a state or political 

 

10

 

subdivision of a state. In
addition, Rollover Contributions will include participant rollover
distributions from individual retirement accounts or annuities described in Section 408(a) or
(b) of the Code that are eligible to be rolled over and would otherwise be
includible in gross income.

 

1.57         Rollover
Contributions Subaccount  shall mean
the separate subaccount established for a Participant pursuant to Section 4.1(d).

 

1.58         Seconded
Employee  shall mean an Employee of
the Employer who participates in any non-United States pension plan sponsored
by the Company or any Affiliate.

 

1.59         Severance
from Service Date  shall mean the
earlier of (a) the date the Employee quits, retires, is discharged, or
dies, or (b) the first anniversary of the first date of a period in which
an Employee is absent for any other reason; provided, however, that an Employee
shall not experience a Severance from Service Date while the Employee is on
lay-off or Leave of Absence if the Employee returns to Employment immediately
following the end of the lay-off or Leave of Absence. If the Employee does not
return to Employment immediately following the end of the lay-off or Leave of
Absence, such Employee shall be deemed to have had a Severance from Service
Date as of his first day of absence due to lay-off or Leave of Absence.

 

1.60         Spousal
Consent  shall mean the written
consent of a Participant’s Surviving Spouse to an election or designation by
the Participant under the Plan. Such consent shall acknowledge the effect of
the Participant’s election or designation, shall specify the alternate
Beneficiary or alternate form of benefit, as appropriate (unless a general
consent is executed), and shall be witnessed by either a representative of the
Administrative Committee or a notary public. Spousal Consent shall not be
necessary if the Participant establishes to the satisfaction of the
Administrative Committee that he or she has no Spouse, his or her Spouse cannot
be located or such other circumstances exist as the Administrative Committee
may, in accordance with applicable regulations, deem appropriate to waive the
requirement of Spousal Consent. Spousal Consent, once given, may be revoked
only with the consent of the Participant. Spousal Consent shall be valid and
binding only with respect to the Spouse who gave the consent.

 

1.61         Spouse  shall mean the person legally married to a
Participant.

 

1.62         Surviving
Spouse  shall mean the Spouse of a
Participant on the earlier of: (a) the date of the Participant’s death; or
(b) the Participant’s Benefit Commencement Date.

 

1.63         Termination
of Employment  shall mean the
voluntary or involuntary severance of Employment.

 

1.64         Trust  shall mean the trust established under the Plan
in which Plan assets are held.

 

1.65         Trust
Agreement  shall mean the agreement
between the Company and the Trustee with respect to the Trust.

 

1.66         Trustee  shall mean the person appointed as trustee
pursuant to Article X, and any successor trustee.

 

11

 

1.67         Valuation
Date  shall mean each business day or
such other dates as may be specified by the Administrative Committee.

 

1.68         Vesting
Service  shall mean the service
credited to a Participant under Section 5.2 for purposes of determining
the Participant’s vested percentage in his or her Account.

 

1.69         Year
of Service  shall mean, in
determining service to be taken into account for purposes of eligibility to
participate, vesting and benefit accrual, each Period of Service unit which is
12-consecutive-months.  For purposes of
eligibility to participate and vesting, the Period of Service shall run from
the Employment Commencement Date (or re-Employment Commencement Date, as
applicable) until the Severance from Service Date. For purposes of benefit
accrual, a Period of Service shall run from the date that a Participant
commences participation under the Plan until his or her Severance from Service
Date. An Employee shall be credited with the period of time which runs during
any absence from service (other than for reason of a quit, retirement,
discharge or death) which is 12 months or less. Prior to January 1, 2002,
an Hour of Service was determined under the general method of crediting service
for an Employee under Treas. Reg. §2530.200b-2 (i.e., actual counting of hours
of service during the applicable 12-consecutive-month computation period),
and/or the equivalencies set forth in Treas. Reg. §2530.200b-3.

 

12

 

ARTICLE
II

PARTICIPATION

 

2.1                                Admission as a Participant

 

2.1.1                        Each Eligible Employee who was a Participant in the
Plan immediately prior to the Effective Date shall be a Participant in the Plan
as of the Effective Date.

 

2.1.2                        Each Eligible Employee shall become a Participant in
the Plan on the Entry Date coinciding with or next following such Eligible
Employee’s completion of at least one month of Employment, provided he or she
is an Eligible Employee on such date. 
This paragraph shall be interpreted in accordance with the elapsed time
method set forth in Treas. Reg. §1.410(a)-7.

 

2.1.3                        Notwithstanding Section 2.1.2 above, the Company
may, in its discretion, provide an earlier Entry Date or grant past service
credit for eligibility purposes to individuals who become Employees through an
acquisition of assets or an entity by an Employer or Affiliate or through a
merger or consolidation of an entity with or into an Employer or an Affiliate
or any other similar transaction; provided, however, that any such provision
shall be subject to the nondiscrimination requirements of Code § 401(a)(4).

 

2.1.4                        Each Participant shall be entitled to make Elective
401(k) Deferrals, and each Participant who is a Primary Employee shall be
entitled to have Employer Matching Contributions, contributed to his or her
Account upon (a) execution and delivery to the Administrative Committee of
a 401(k) enrollment form, and (b) submission of any information
reasonably required by the Administrative Committee for proper administration of
the Plan. Any Participant in the Plan shall for all purposes be deemed
conclusively to have assented to the provisions of the Plan.

 

2.1.5                        An Eligible Employee who has attained his or her
Normal Retirement Age and who continues as an Eligible Employee shall continue
to be eligible to actively participate in the Plan until his or her actual
retirement. Participation shall terminate as provided in Section 2.3.

 

2.2                                Rehired Employees

 

2.2.1                        An Employee who has a Termination of Employment before
earning a vested interest in his or her Employer-Derived Account Balance and
who again becomes an Employee shall lose credit for his or her Periods of
Service prior to such Termination of Employment if his or her Period of
Severance equals or exceeds the greater of five years or his or her Periods of
Service prior to such Termination of Employment. This paragraph shall be
interpreted in accordance with the elapsed time method set forth in Treas. Reg
§1.410(a)-7.

 

2.2.2                        If a Participant who has a Termination of Employment
again becomes an Eligible Employee and his or her prior Years of Service (i.e.,
Period of Service) are not disregarded under Section 2.2.1, then he or she
shall again become a Participant in the Plan as of the first date on which he
or she again becomes an Eligible Employee. However, no Elective 401(k) Deferrals
or Employer Matching Contributions shall be contributed to his or her Account
until the first 

 

13

 

payroll period after he or she has again executed and
delivered a 401(k) enrollment form in accordance with Section 2.1.4
above.

 

2.2.3                        If an Employee or Participant who has a Termination of
Employment again becomes an Eligible Employee and his or her prior Years of
Service (i.e., Period of Service) are disregarded under Section 2.2.1,
then he or she shall be treated as a new Employee.

 

2.2.4                        A former Employee who has a Termination of Employment
and subsequently performs an Hour of Service within 12 months of his or her
Severance from Service Date, such Employee’s Period of Severance shall instead
be included as part of his or her Period of Service for purposes of
participation and vesting. This paragraph shall be interpreted in accordance
with the service spanning rules set forth in Treas. Reg §1.410(a)-7.

 

2.3                                Termination of Participation

 

An
individual shall cease to be a Participant on the earliest of:

 

(a)                             payment to him or her or on his or her
behalf of all vested benefits due to him or her under the Plan at a time when
he or she is no longer eligible for any future contributions;

 

(b)                            his or her Termination of Employment when
he or she has no vested interest in his or her Account; or

 

(c)                             his or her death.

 

2.4                                Rollover Membership

 

An
Eligible Employee who makes a Rollover Contribution in accordance with Section 3.5
shall become a Participant as of the date of such contribution even if he or
she has not yet satisfied the requirements of Section 2.1; provided,
however, that such an Eligible Employee shall be a Participant only with
respect to his or her Rollover Contributions Subaccount and shall not be
eligible to make or receive any other type of contribution under the Plan until
he or she has satisfied the requirements under Section 2.1.

 

14

 

ARTICLE
III

CONTRIBUTIONS

 

3.1                                Employer Contributions

 

3.1.1                        Subject to the limitations set forth in this Article III,
the Employer shall contribute to the Trust an amount equal to the sum of:

 

(a)                             Elective 401(k) Deferrals in such
amount as determined in accordance with Section 3.1.2;

 

(b)                            Employer Matching Contributions in such
amount as determined in accordance with Section 3.1.3; and

 

(c)                             Profit-Sharing Contributions in such
amount, if any, as determined in accordance with Section 3.1.4.

 

3.1.2                        Elective 401(k) Deferrals

 

(a)                             Subject to the limitations set forth in
Sections 3.3, 3.8 and 3.9, the Employer shall contribute to the Trust on behalf
of each of its Employees who has a 401(k) Election in effect for any
payroll period an amount equal to the deferral percentage elected by each such
Participant on his or her 401(k) Election, multiplied by his or her
Compensation for the payroll period. The amount elected by a Participant
pursuant to a 401(k) Election cannot be less than 1 % or greater than 25%
(in 1 % increments) of the Participant’s Compensation. The 401(k) Election
shall be made on a form provided by the Administrative Committee. A Participant
may elect to change the percentage of his or her Elective 401(k) Deferral
effective as of any Change Date by filing the appropriate form with the
Administrative Committee on or before the deadline established by the
Administrative Committee for filing such form. A Participant may elect to
cancel any 401(k) Election at any time by filing the appropriate form with
the Administrative Committee, and such election shall become effective as soon
as practicable. A Participant who elects to cancel his or her Elective 401(k) Deferrals
may elect to resume such deferrals as of any Change Date following such
cancellation by filing a new 401(k) Election with the Administrative
Committee. The Administrative Committee may reduce the amount of any 401(k) Election
or may make such other modifications as necessary so that the Plan complies
with the provisions of Code Section 401 and all contributions are
currently deductible under Code Section 404. All contributions pursuant to
a 401(k) Election shall be made by reducing the Participant’s Compensation
for each payroll period by the amount determined pursuant to the 401(k) Election.
The Administrative Committee may establish such additional rules and
procedures with respect to the making, changing and resumption of contributions
pursuant to 401(k) Elections (including suspension from contributions) as
it shall determine.

 

(b)                            Notwithstanding paragraph (a) above,
and as soon as is practicable as determined by the Administrative Committee,
all Employees who are eligible to make Elective 401(k) Deferrals and who
have attained age 50 before the close of the Plan Year shall be eligible to
make catch-up contributions in accordance with, and subject to the limitations
of, Code Section 

 

15

 

414(v). Such catch-up contributions shall not be taken
into account for purposes of the provisions of the Plan implementing the
required limitations of Code Sections 402(g) and 415. The Plan shall not
be treated as failing to satisfy the provisions of the Plan implementing the
requirements of Code Sections 401(k)(3), 401(k)(11), 401(k)(12), 410(b), or
416, as applicable, by reason of making such catch-up contributions. This
paragraph (b) shall apply only if all other applicable employer plans
(within the meaning of Code Section 414(v)(6)(A)) of the Company and the
Affiliates permit all eligible participants (within the meaning of Code Section 414(v)(5))
to make the same catch-up elections, as required under Code Section 414(v)(4);
provided, however, that no eligible participant shall be permitted to make
catch-up contributions under more than one applicable employer plan.

 

(c)                             Notwithstanding any provision of the Plan
to the contrary, except for occasional, bona fide administrative
considerations, Elective 401(k) Deferrals made pursuant to an election
under paragraph (a) above shall not precede the earlier of (1) the performance
of services relating to such Elective 401(k) Deferrals, and (2) when
the Compensation subject to such Elective 401(k) Deferral election would
be currently available to the Employee in the absence of an election to defer.

 

3.1.3                        Employer Matching Contributions

 

Subject
to the limitations set forth in Sections 3.4, 3.8 and 3.9, Employer Matching
Contributions shall be made by the Employer to the Trust on behalf of each of
its Primary Employees, who has participated in the Plan for at least three months
and who has a 401(k) Election in effect for any payroll period, in an
amount equal to 50% of the Participant’s Elective 401(k) Deferral, up to
6% of the Participant’s Compensation, made for the payroll period. An Employer
Matching Contribution shall not be made with respect to a Participant’s
Elective 401(k) Deferrals in excess of 6% of his or her Compensation for
any payroll period.

 

Subject
to the limitations set forth in Sections 3.4 and 3.8, Employer Matching
Contributions also shall be made by the Employer to the Trust on behalf of each
of its Primary Employees who has elected to make a catch-up contribution
pursuant to Section 3.1.2(b) in an amount equal to 50% of the
Participant’s catch-up contribution. However, in no event shall the total Employer
Matching Contributions made on behalf of any Participant exceed 6% of his or
her Compensation.

 

In addition to the Employer Matching Contributions provided in the
preceding paragraphs, a “True-Up Employer Matching Contribution” shall be made
for the benefit of each eligible Participant (as provided below), with respect
to each Plan Year beginning on or after January 1, 2007.  The True-Up Employer Marching Contribution
amount shall be difference between subsection (a) and (b) below, if
any:

 

(a)                             The amount resulting from recalculating
the Employer Matching Contribution for the applicable Plan Year by assuming
that it is an amount equal to 50% of the Participant’s Elective 401(k) Deferral,
up to 6% of the Participant’s total Compensation for the applicable Plan Year
(rather than any payroll period); provided, however, that the resulting
Employer Matching Contribution amount shall not exceed 6% of the Participant’s
Compensation for such 

 

16

 

Plan Year.  Any
Elective 401(k) Deferral distributed to a Participant pursuant to Sections
3.3.1, 3.3.2 and 3.3.3 shall not be considered for this calculation.

 

(b)                            The actual Employer Matching Contribution
credited to the Participant’s Employer Matching Contribution Subaccount for the
applicable Plan Year.  An Employer
Matching Contributions forfeited in connection with the distribution of
Elective 401(k) Deferrals pursuant to Section 3.3.1, 3.3.2 and 3.3.3
shall not be considered for this calculation. 
Further, any Employer Matching Contribution distributed or forfeited
pursuant to the Section 3.4.1, 3.4.2 and 3.4.3 shall not be considered for
this calculation.

 

In
no event shall the total Employer Matching Contribution and True-Up Employer
Matching Contribution for the applicable Plan Year shall not exceed 6% of the
Participant’s Compensation for such Plan Year. 
True-Up Employer Matching Contributions shall be subject to the
applicable limits imposed by the Code.

 

The
True-Up Employer Matching Contribution calculation shall be performed as soon
as administratively practicable following the end of each applicable Plan
Year.  A Participant shall be eligible to
receive a True-Up Employer Matching Contribution (if any) for the applicable Plan
Year if he or she was eligible for Employer Matching Contributions for such
Plan Year.  True-Up Employer Matching
Contributions, if any, shall be contributed to the Plan without adjustment for
any earnings and/or losses.

 

3.1.4                        Profit-Sharing Contributions

 

(a)                             Subject to the limitations set forth in
Sections 3.8 and 3.9, for each Plan Year, the Employer may contribute to the
Plan an amount, if any, to be determined by Employer in its sole and absolute
discretion. Any such contribution by an Employer shall be allocated among each
Employee of the contributing Employer during the Plan Year who:

 

(i)                                 prior to January 1, 2002, is
employed in “eligible employment” (as defined below) on the last day of the
Plan Year and is credited with at least 1,000 Hours of Service for such Plan
Year;

 

(ii)                              effective as of January 1, 2002, is
employed in “eligible employment” (as defined below) on the last day of the
Plan Year and is credited with a Period of Service of at least 6 months during
such Plan Year;

 

(iii)                          is on a Leave of Absence on the last day of the Plan
Year, provided the Primary Employee was employed in “eligible employment”‘
immediately prior to such Leave of Absence;

 

(iv)                               died or became Disabled during the Plan
Year at a time when he or she was employed in “eligible employment;” or

 

(v)                             terminated Employment during the Plan
Year on or after attainment of Normal Retirement Age at a time when he or she
was employed in “eligible employment.”

 

17

 

For
purposes of this Section 3.1.4, “eligible employment” shall mean
employment as a Primary Employee or employment with an Affiliate that is not an
Employer in a position under which the Employee would be a Primary Employee if
the Affiliate were an Employer.

 

(b)                            Profit-Sharing Contributions with respect
to any Plan Year shall be allocated to the Profit-Sharing Contributions
Subaccount of each Employee eligible for such an allocation under (a) above
according to the ratio that the Employee’s Compensation from the Employer for
the portion of the Plan Year that he or she was an Employee bears to the
aggregate of such Compensation of all Employees eligible for such an
allocation.

 

3.2                                 After-Tax Contributions

 

No
Participant after-tax contributions shall be required or permitted under the
Plan.

 

3.3                                 Elective 401(k) Deferral Limitations

 

3.3.1                        Elective 401(k) Deferral Limits

 

Elective
401(k) Deferrals shall be subject to the following:

 

(a)                             Code Section 402(g) Dollar
Limit

 

A Participant’s Elective 401(k) Deferrals made under this Plan and
his or her elective deferrals made under all other plans of the Company and its
Affiliates during any taxable year shall not exceed the adjusted limit imposed
on elective deferrals for such year under Code Section 402(g). This limit
shall not apply to the extent permitted under Plan Section 3.1.2(a) and
Code Section 414(v).

 

A Participant may claim Excess Deferrals for any taxable year by filing
a written claim with the Administrative Committee not later than the March 1
following the taxable year for which the Excess Deferrals were contributed. Any
such claim shall specify the amount of the Participant’s Excess Deferrals for
the year and shall be accompanied by the Participant’s written statement that,
if such amounts are not distributed, such Excess Deferrals, when added to
amounts deferred under other plans or arrangements described in Code Section 402(g)(3) (whether
or not maintained by the Company or an Affiliate), will exceed the limit
imposed on the Participant by Code Section 402(g) for the year in
which the deferral occurred. Excess Deferrals shall be distributed in
accordance with Section 3.3.2 below.

 

(b)                            Average Actual Deferral Percentage Test

 

The Average Actual Deferral Percentage for Eligible Participants who
are Highly Compensated Employees for any Plan Year must satisfy one of the
following tests:

 

(i)                                      The Average Actual Deferral Percentage
for Eligible Participants who are Highly Compensated Employees for the Plan
Year shall not exceed the Average Actual 

 

18

 

Deferral Percentage for Eligible Participants who were Non-Highly
Compensated Employees for the prior Plan Year multiplied by 1.25; or

 

(ii)                                   The Average Actual Deferral Percentage
for Eligible Participants who are Highly Compensated Employees for the Plan
Year shall not exceed the Average Actual Deferral Percentage for Eligible
Participants who were Non-Highly Compensated Employees for the prior Plan Year
multiplied by 2.0, provided that the excess of the Average Actual Deferral
Percentage for Eligible Participants who are Highly Compensated Employees over
the prior Plan Year’s Average Actual Deferral Percentage for Eligible
Participants who were Non-Highly Compensated Employees is not more than two
percentage points.

 

At the Company’s election, the current Plan Year’s Average Actual
Deferral Percentage data for Eligible Participants who are Non-Highly
Compensated Employees may be used; provided, however, that if an election to
use current Plan Year data is made, it cannot be changed except as provided by
the Secretary of the Treasury.

 

This Section 3.3.1(b) shall not apply to the extent permitted
under Plan Section 3.1.2(a) and Code Section 414(v).

 

(c)                             Aggregation of Elective 401(k) Deferrals

 

(i)                                      For purposes of this Section 3.3.1,
the Actual Deferral Percentage for any Eligible Participant who is a Highly
Compensated Employee for the Plan Year and who is eligible to have Elective 401(k) Deferrals
allocated to his or her account under two or more plans or arrangements
described in Code Section 401(k) that are maintained by the Company
or an Affiliate shall be determined as if all such Elective 401(k) Deferrals
were made under a single arrangement.

 

(ii)                                   In the event that this Plan satisfies the
requirements of Code Sections 401(k), 401(a)(4), or 410(b) only if
aggregated with one or more other plans, or if one or more other plans satisfy
the requirements of such Code Sections only if aggregated with this Plan, then
this section shall be applied by determining Average Actual Deferral
Percentages as if all such plans were a single plan.

 

3.3.2                        Distribution of Excess Deferrals

 

(a)                             Notwithstanding any other provision of
the Plan, Excess Deferrals, plus any income and minus any loss allocable
thereto, shall be distributed no later than April 15 following the close
of the taxable year for which the Participant’s Excess Deferrals were
contributed. Excess Deferrals may be returned during the taxable year in which
they were made only if designated as Excess Deferrals. The income or loss
allocable to Excess Deferrals shall be determined through the end of the
taxable year to which the contributions relate by the Administrative Committee
in accordance with applicable regulations.

 

For
taxable years beginning on or after January 1, 2007, gap-period earnings
shall be included with the distribution of Excess Deferrals (as defined in Code
Section 402(g)(2)(A) to 

 

19

 

the
extent the Participant is or would be credited with an allocable gain or loss
on such Excess Deferrals for the gap-period, if the total amount were to be
distributed.  Any income and/or losses
earned during the gap-period shall be allocated to all Participants and to all
corrective distributions for the taxable year in a consistent and non-discriminatory
manner. The gap period income and/or losses allocable to a Participant’s Excess
Deferrals shall be determined by any one of the methods provided in Treas. Reg.
§1.402(g)-1(e)(5).  However, if contrary
legal guidance is promulgated after April 30, 2007, then excess deferrals
shall be adjusted for income and/or losses only to the extent mandated by such
guidance.  For purposes of this
paragraph, the “gap period” means the period between the close of the
applicable Plan Year and prior to the distribution; provided, however, that income
or loss for the “gap period” may be determined as of a date that is no more
than seven days before the date of distribution.

 

(b)                            Employer Matching Contributions related
to Excess Deferrals, together with any allocable income or loss, shall be
forfeited and used to reduce Employer Matching Contributions and Profit-Sharing
Contributions. For this purpose, Excess Deferrals shall be deemed attributable
first to unmatched Elective 401(k) Deferrals.

 

3.3.3                        Distribution of Excess Contributions

 

Notwithstanding
any other provision of the Plan, Excess Contributions, plus any income and
minus any loss allocable thereto, shall be distributed no later than the last
day of the close of the Plan Year following the Plan Year for which the Excess
Contributions were made in accordance with the following:

 

(a)                             The Excess Contributions with respect to
Highly Compensated Employees shall be distributed in accordance with the
following procedure.

 

(i)                                      The total amount of Excess Contributions
for all affected Highly Compensated Employees shall be calculated in accordance
with Section 1.34.

 

(ii)                                   The Elective 401(k) Deferrals of the
Highly Compensated Employee with the highest dollar amount of Elective 401(k) Deferrals
for the Plan Year shall be reduced by the amount required to cause that Highly
Compensated Employee’s Elective 401(k) Deferrals to equal the dollar
amount of Elective Compensated Employee with the next highest dollar amount of
Elective 401(k) Deferrals.  This
amount is then distributed to such Highly Compensated Employee with the highest
dollar amount of Elective 401(k) Deferrals.  However, if a lesser reduction under this Section 3.3.3(a)(ii) would
equal the total Excess Contributions, then such lesser reduction amount shall
be distributed.

 

(iii)                                Notwithstanding anything to the contrary in this
Section, prior to the distribution of any Excess Contributions, all or a part
of the Excess Contributions, as applicable, shall be recharacterized as
catch-up contributions for catch-up contribution eligible Participants, up to
the catch-up contributions limit for the appolicable Plan Year in accordance
with the requirements of Treasury Regulation Section 1.414(v)-1(d)(2)(iii).

 

20

 

(iv)                               If the total dollar amount distributed is
less than the total Excess Contributions for the Plan Year for all affected
Highly Compensated Employees the process described in this Section 3.3.3(a)(ii) shall
be repeated until the total dollar amount distributed equals the Excess
Contributions for the year.

 

(b)                            The income or loss allocable to Excess
Contributions shall be determined through the end of the Plan Year to which the
contributions relate by the Administrative Committee in accordance with
applicable regulations. Effective as of January 1, 2006, the income or
loss allocable to Excess Contributions shall be determined in accordance with
the requirements of Treasury Regulation Section 1.401(k)-2(b)(2)(iv) as
follows:  The income or loss attributable
to the Excess Contributions shall be the sum of (i) the income or loss on
such contributions for the Plan Year, determined under any reasonable method,
and (ii) the income or loss on such Excess Contributions for the “gap
period”, determined under such reasonable method.  Any reasonable method used to determine
income or loss hereunder shall be used consistently for all Participants and
for all corrective distributions under the Plan for the applicable Plan
Year.  For purposes of this paragraph,
the “gap period” means the period between the close of the applicable Plan Year
and prior to the distribution; provided, however, that income or loss for the “gap
period” may be determined as of a date that is no more than seven days before
the date of distribution. 
Notwithstanding anything in this paragraph to the contrary, the
Administrative Committee may elect, in a non-discriminatory manner, not to
distribute “gap period” income with respect to any Plan Year beginning on or
after January 1, 2008.

 

(c)                             Employer Matching Contributions related
to Excess Contributions, together with any allocable income or loss, shall be
forfeited and used to reduce Employer Matching Contributions and Profit-Sharing
Contributions. For this purpose, Excess Contributions shall be deemed
attributable first to unmatched Elective 401(k) Deferrals.

 

3.4                                 Employer Matching Contribution
Limitations

 

3.4.1                        Limit on Employer Matching Contributions

 

For
each Plan Year, Employer Matching Contributions shall be subject to the
following provisions:

 

(a)                                   Contribution Percentage Test

 

For Employer Matching Contributions made on behalf of Highly
Compensated Employees for each Plan Year, the Average Contribution Percentage
for Primary Employees who are Highly Compensated Employees for the Plan Year
must not exceed the greater of:

 

(i)                                      The Average Contribution Percentage for
Primary Employees who were Non-Highly Compensated Employees for the prior Plan
Year, multiplied by 1.25; or

 

(ii)                                   The lesser of (A) the Average
Contribution Percentage for Primary Employees who were Non-Highly Compensated
Employees for the prior Plan Year, multiplied by 2.0; or (B) the prior
Plan Year’s Average Contribution Percentage for 

 

21

 

Primary Employees who were Non-Highly Compensated Employees plus two
percentage points.

 

At the Company’s election, the current Plan Year’s Average Contribution
Percentage data for Primary Employees who are Non-Highly Compensated Employees
may be used; provided, however, that if an election to use prior Plan Year data
is made, it cannot be changed except as provided by the Secretary of the
Treasury.

 

(b)                                  Aggregation of Contributions

 

(i)                                      For purposes of this Section 3.4.1,
the Contribution Percentage for any Primary Employee who is a Highly
Compensated Employee for the Plan Year and who is eligible to receive matching
contributions or to make employee after-tax contributions under one or more
other plans described in Code Section 401 (a) that are maintained by
the Company or an Affiliate shall be determined as if all such contributions
were made under a single plan aggregated with this Plan.

 

(ii)                                   In the event that this Plan satisfies the
requirements of Code Sections 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 Average Contribution Percentages
as if all such plans were a single plan.

 

3.4.2                        Distribution of Excess Aggregate Contributions

 

Notwithstanding
any other provisions of the Plan, Excess Aggregate Contributions, plus any
income and minus any loss allocable thereto, shall be distributed or forfeited
to the extent not vested no later than the last day of the close of the Plan
Year following the Plan Year for which the Excess Aggregate Contributions were
made in accordance with the following:

 

(a)                                   The Excess Aggregate Contributions with
respect to Highly Compensated Employees shall be distributed in accordance with
the following procedure.

 

(i)                                      The total amount of Excess Contributions
for all affected Highly Compensated Employees shall be calculated in accordance
with Section 1.33.

 

(ii)                                   The Employer Matching Contributions of
the Highly Compensated Employee with the highest dollar amount of Employer
Matching Contributions for the Plan Year shall be reduced by the amount
required to cause that Highly Compensated Employee’s Employer Matching
Contributions to equal the dollar amount of Employer Matching Contributions of
the Highly Compensated Employee with the next highest dollar amount of Employer
Matching Contributions.  This amount is
then distributed to such Highly Compensated Employee with the highest dollar
amount of Employer Matching Contributions. 
However, if a lesser reduction under this Section 3.3.3(a)(ii) would
equal the total Excess Aggregate Contributions, then such lesser reduction
amount shall be distributed.

 

22

 

(iii)                                If the total dollar amount distributed in less than
the total Excess Aggregate Contributions for the Plan Year for all affected
Highly Compensated Employees, the process described in Section 3.4.2(a)(ii) is
repeated until the total dollar amount distributed equals the total excess
contributions for the Plan Year.

 

(b)                                  The income or loss allocable to Excess
Aggregate Contributions shall be determined through the end of the Plan Year to
which the contributions relate by the Administrative Committee in accordance
with applicable regulations.  Effective
as of January 1, 2006, the income or loss allocable to the Excess
Aggregate Contributions shall be determined in accordance with the requirements
of Treasury Regulation Section 1.401(m)-2(b)(2)(iv) as follows:  The income or loss attributable to the Excess
Aggregate Contributions shall be the sum of (i) the income or loss on such
contributions for the Plan Year, determined under any reasonable method, and (ii) the
income or loss on such Excess Aggregate Contributions for the “gap period”,
determined under such reasonable method. 
Any reasonable method used to determine income or loss hereunder shall
be used consistently for all Participants and for all corrective distributions
under the Plan for the applicable Plan Year. 
For purposes of this paragraph, the “gap period” means the period
between the close of the applicable Plan Year and prior to the distribution;
provided, however, that income or loss for the “gap period” may be determined
as of a date that is no more than seven days before the date of
distribution.  Notwithstanding anything
in this paragraph to the contrary, the Administrative Committee may elect, in a
non-discriminatory manner, not to distribute “gap period” income with respect
to any Plan Year beginning on or after January 1, 2008.

 

3.4.3                        [Reserved]

 

3.5                                 Rollover Contributions

 

Any
Eligible Employee may make a Rollover Contribution to the Plan. A Rollover
Contribution shall be in cash only or such other property as may be acceptable
under rules established by the Administrative Committee. The
Administrative Committee may condition acceptance of a contribution intended to
be a Rollover Contribution upon receipt of such documents as it may require. In
the event that an Eligible Employee makes a contribution pursuant to this Section 3.5
intended to be a Rollover Contribution but which the Administrative Committee
later concludes did not qualify as a Rollover Contribution, the Trustee shall
distribute to the Eligible Employee, as soon as practicable after that
conclusion is reached, the amount of such contribution, together with any
earnings thereon.

 

3.6                                 Timing of Contributions

 

The
Employer shall transfer Profit-Sharing Contributions to the Trustee no later
than the last day prescribed by law for the filing of the Employer’s federal
income tax return (including extensions thereon) for the taxable year of the
Employer which includes the last day of the Plan Year for which such
contributions were made. The Employer shall transfer Elective 401(k) Deferrals
to the Trustee as soon as practicable following the end of each month, but in
no event later than the 15th business day of the month following the month in
which the Elective 401(k) Deferral would otherwise have been payable to
the Participant in cash. The Employer shall 

 

23

 

transfer
Employer Matching Contributions to the Trustee at such time as it shall
determine, but in no event later than the last day prescribed by law for the
filing of the Employer’s federal income tax (including extensions thereof) for
the taxable year of the Employer which includes the last day of the Plan Year
for which such contributions were made. 
The Employer shall transfer True-Up Employer Matching Contribution (if
any) to the Trustee at such time as it shall determine, but in no event later
than the last day prescribed by law for the filing of the Employer’s federal
income tax (including extensions thereof) for the taxable year of the Employer
which includes the last day of the Plan Year for which such contributions were
made.

 

3.7                                 Forfeitures

 

Any
Forfeitures arising under the Plan shall be applied to reduce Employer Matching
Contributions and Profit-Sharing Contributions.

 

3.8                                 Limitation on Allocations

 

3.8.1                        As used in this Section 3.8 and in Section 3.9,
each of the following terms shall have the meaning for that term set forth in
this Section 3.8.1:

 

(a)                                   Annual Additions means, for each Participant, the sum of
the following amounts credited to the Participant’s Account for the Limitation
Year under this Plan or another Defined Contribution Plan maintained by the
Company or an Affiliate:

 

(i)                                      Company or Affiliate contributions;

 

(ii)                                   Employee contributions;

 

(iii)                                forfeitures;

 

(iv)                               amounts described in Code Section 415(1)(1) and
Code Section 419A(d)(2); and

 

(v)                                  allocations under a simplified employee
pension.

 

Amounts
attributable to Rollover Contributions or trust to trust transfers shall not be
Annual Additions.

 

Excess
Deferrals which are not distributed before the April 15 following the
taxable year to which they relate and Excess Contributions and Excess Aggregate
Contributions shall be treated as Annual Additions.

 

(b)                                  Defined Benefit Fraction means, for any
Participant, the fraction (determined as of the last day of the Limitation
Year) which shall have a numerator equal to the Projected Annual Benefit of the
Participant under all Defined Benefit Plans and a denominator equal to the
lesser of:

 

24

 

(i)                                      1.25 multiplied by the dollar limitation
in effect under Code Section 415(b)(1)(A) for such Limitation Year;
or

 

(ii)                                   1.4 multiplied by 100% of the Participant’s
average Limitation Compensation for his or her high three years.

 

(c)                                   Defined Contribution Dollar Limitation means $30,000, as adjusted pursuant to
Code Section 415(d). Effective for Limitation Years beginning after December 31,
2001, Defined Contribution Dollar Limitation means $40,000, as adjusted for
increases in the cost-of-living under Section 415(d) of the Code.

 

(d)                                  Defined Contribution Fraction means, for any Participant, the fraction
(determined as of the last day of the Limitation Year) which shall have a
numerator equal to the sum of the Participant’s Annual Additions and a
denominator equal to the sum of the lesser of the following amounts determined
for such Limitation Year and for each prior Limitation Year for which the
Participant was credited with a Year of Service:

 

(i)                                      1.25 multiplied by the dollar limitation
in effect under Code Section 415(c)(1)(A) for such Limitation Year;
or

 

(ii)                                   35% of the Participant’s Limitation
Compensation for such Limitation Year.

 

(e)                                   Excess Amount means the excess of the Participant’s
Annual Additions for the Limitation Year involved over the Maximum Permissible
Amount for that Limitation Year.

 

(f)                                     Limitation Compensation means an Employee’s compensation as
determined pursuant to Code Section 415(c)(3). Limitation Compensation
shall be subject to the adjusted dollar limitation under Code Section 401(a)(17).

 

(g)                            Limitation Year means each 12-consecutive month period
ending on the same last day as the Plan Year.

 

(h)                            Maximum Permissible Amount means, for a Limitation Year and with
respect to any Participant, the lesser of (i) the Defined Contribution
Dollar Limitation, or (ii) 100% of the Participant’s Limitation
Compensation for the Limitation Year provided, however, that the percentage of
Limitation Compensation limit shall not apply to (A) any contribution for
medical benefits (within the meaning of Code Section 419A(d)(2)) after
Termination of Employment which is otherwise treated as an Annual Addition, or (B) an
amount otherwise treated as an Annual Addition under Code Section 415(l)(1).
This Section 3.8.1(h) shall not apply to the extent permitted under
Plan Section 3.1.2(a) and Code Section 414(v).

 

(i)                                Protected Annual Benefit means the Participant’s annual benefit
under a Defined Benefit Plan payable in the form of a straight life annuity
computed on the assumptions that the Participant will remain employed until
Normal Retirement Age (or his or her current age, if later) and that his or her
Limitation Compensation will remain at its current level until that time.

 

25

 

3.8.2                        The amount of Annual Additions which may be credited
to the Participant’s Accounts for any Limitation Year shall not exceed the
Maximum Permissible Amount. If the Employer contribution that could otherwise
be made or allocated to the Participant’s Account would cause the Annual
Additions on behalf of the Participant for the Limitation Year to exceed the
Maximum Permissible Amount with respect to that Participant for the Limitation
Year, the amount to be contributed or allocated will be reduced so that the
Annual Additions on behalf of the Participant for the Limitation Year will
equal such Maximum Permissible Amount.

 

(a)                                   Prior to determining the Participant’s
actual Limitation Compensation for a Limitation Year, the Administrative
Committee may determine the Maximum Permissible Amount for the Participant for
the Limitation Year on the basis of a reasonable estimation of the Participant’s
Limitation Compensation for that Limitation Year. Such estimated Limitation
Compensation shall be uniformly determined for all Participants similarly
situated.

 

(b)                                  As soon as is administratively feasible
after the end of a Limitation Year, the Maximum Permissible Amount for the
Limitation Year will be determined on the basis of the Participant’s actual
Limitation Compensation for the Limitation Year.

 

(c)                                   If a Participant is credited with an
Annual Addition under any other Defined Contribution Plan maintained by the
Company or an Affiliate, before any Annual Addition is reduced under such other
Defined Contribution Plan, Annual Additions to this Plan shall be reduced to
bring all such Plans in conformity with Code Section 415(c).

 

(d)                                  If, as a result of the allocation of
forfeitures, a reasonable error in estimating a Participant’s annual Limitation
Compensation, a reasonable error in determining the amount of elective
deferrals that may be made with respect to any Participant under the limits of
Code Section 415, or under other limited facts and circumstances that the
Commissioner of Internal Revenue finds justify the availability of the rules set
forth in this Section 3.8.2(d), the Annual Additions under the Plan for a
particular Participant would cause the limitations of Code Section 415 to
be exceeded, then -

 

(i)                                      Elective 401(k) Deferrals shall be
returned to the Participant to the extent of the Excess Amount.

 

(ii)                                   If, after the application of Section 3.8.2(d)(i),
an Excess Amount still exists and the Participant is covered by the Plan at the
end of the Limitation Year, the Excess Amount in the Participant’s Account will
be used to reduce Employer Matching Contributions for such Participant in the
next Limitation Year and each succeeding Limitation Year, if necessary.

 

(iii)                                If, after the application of Section 3.8.2(d)(ii),
an Excess Amount still exists and the Participant is not covered by the Plan at
the end of a Limitation Year, the Excess Amount will be held unallocated in a
suspense account and applied to reduce Employer Matching Contributions for all
remaining Participants in the next Limitation Year and each succeeding
Limitation Year, if necessary.

 

26

 

If
a suspense account is in existence at any time during a particular Limitation
Year, all amounts in the suspense account must be allocated and reallocated to
Participants’ Accounts before any Employer or Employee contributions may be
made to the Plan for that Limitation Year. Any Elective 401(k) Deferrals
returned under this Section 3.8.2(d) shall be disregarded for
purposes of the Average Actual Deferral Percentage Test set forth in Section 3.3.1(b) and
the annual limit on Elective 401(k) Deferrals under Code Section 402(g).

 

3.9                                                         [Reserved]

 

3.10                           Return of Employer Contributions Under
Special Circumstances

 

Notwithstanding
any provision of this Plan to the contrary, upon timely written demand by an
Employer to the Trustee:

 

(a)                                   Any contribution made by the Employer
under a mistake of fact shall be returned to the Employer by the Trustee within
one year after the payment of the contribution.

 

(b)                                  Any contribution made by the Employer
shall be returned to the Employer within one year after a current deduction for
the contribution under Code Section 404 is disallowed by the Internal
Revenue Service, but only to the extent disallowed.

 

(c)                                   Any contribution made by the Employer
shall be returned to the Employer by the Trustee within one year after
notification from the Internal Revenue Service following a timely application
for determination as to initial qualification that the Plan is not a qualified
plan.

 

Contributions
returned to the Employer under (a) or (b) shall be net of any
investment losses but shall not include any earnings thereon.

 

3.11                           Profits Not Required

 

All
contributions to the Plan may be made without regard to the current or
accumulated earnings or profits of the Employer. The Plan shall, however, continue
to be designated as a profit sharing plan for purposes of the Code.

 

3.12                           Contributions Conditioned on
Deductibility

 

All
contributions made under the Plan are made on the condition that they are
currently deductible under Code Section 404; provided, however, that no
contributions shall be returned to the Employer except as provided in Section 3.10.

 

27

 

ARTICLE
IV

ACCOUNTS, INVESTMENTS AND ALLOCATIONS

 

4.1                                 Establishment of Participant Accounts

 

The
Administrative Committee shall establish and maintain an Account in the name of
each Participant and shall credit or cause to be credited all amounts allocable
to each such Participant to the following subaccounts:

 

(a)                                   401(k) Subaccount. 
Any Elective 401(k) Deferrals allocable to the Participant and the
earnings, losses and expenses attributable thereto.

 

(b)                                  Employer Matching Contributions
Subaccount.  Any Employer Matching Contributions allocable
to the Participant and the earnings, losses and expenses attributable thereto.

 

(c)                                   Profit-Sharing Contributions Subaccount. 
Any Profit-Sharing Contributions allocable to the Participant and the
earnings, losses and expenses attributable thereto.

 

(d)                                  Rollover Contributions Subaccount. 
Any Rollover Contributions allocable to the Participant and the
earnings, losses and expenses attributable thereto.

 

The
maintenance of separate subaccounts under this Section 4.1 is for
accounting purposes only, and a physical segregation of assets of the Trust to
each separate subaccount shall not be required. Any distribution to a
Participant or Beneficiary, or any withdrawal by or loan to a Participant under
Article VI, shall be charged to the appropriate subaccount of the
Participant in accordance with procedures established by the Administrative
Committee.

 

4.2                                 Investment of Funds

 

If
Investment Funds are established pursuant to Section 12.1, then the
contributions and Account Balance of a Participant or the Account Balance of a
Beneficiary of a deceased Participant shall be invested among the Investment
Funds as directed by the Participant or Beneficiary in accordance with and
subject to Section 12.1.2. Investment directions by a Participant or
Beneficiary may be made or changed as of each business day once a calendar
month, subject to such procedures as may be established by the Administrative
Committee (including, but not limited to, requirements for prior notice and
investments in minimum increments). In the event that a Participant, for any
reason, fails to provide proper initial investment directions, contributions
allocated to such Participant shall be entirely invested in the default
Investment Fund or Funds designated by the Administrative Committee from time
to time.

 

4.3                                 Allocation of Earnings to Accounts

 

All
earnings or income received on any investment credited to a Participant’s or
Beneficiary’s Account under the Plan shall be reinvested in additional
interests in such investment and shall be credited to such subaccount.

 

28

 

4.4                                 Allocation Report

 

The
Administrative Committee shall deliver to each Participant and Beneficiary of a
deceased Participant, at least annually, a statement for the Account of such
Participant or Beneficiary which shows the activity since the prior statement
date and the market value of the Account as of the current statement date and
any other information deemed appropriate by the Administrative Committee.

 

4.5                                 Allocation Corrections

 

Any
error or omission in the statement provided pursuant to Section 4.4 shall
be corrected as necessary to remedy such error or omission.

 

29

 

ARTICLE
V

VESTING AND TOP-HEAVY PROVISIONS

 

5.1                                 Determination of Vesting

 

5.1.1                        A Participant shall at all times have a vested percentage
of 100% in the balance of his or her 401(k) Subaccount and Rollover
Contributions Subaccount.

 

5.1.2                        A Participant who has a Termination of Employment due
to death or Disability or who has a Termination of Employment on or after
attainment of Normal Retirement Age shall have a vested percentage of 100% in
his or her Account.

 

5.1.3                        A Participant shall be fully vested at all times in
his or her Employer Matching Contributions Subaccount and Profit-Sharing
Contributions Subaccount; provided, however, prior to July 31, 2004, the
vested percentage of a Participant in his or her Employer Matching
Contributions Subaccount, and Profit-Sharing Contributions Subaccount shall be
determined in accordance with the following schedule:

 

	
  Completed Years

  	
   

  	
  Vested

  	
   

  
	
  of
  Vesting Service

  	
   

  	
  Percentage

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2 years

  	
   

  	
  25

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  3 years

  	
   

  	
  50

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  4 years

  	
   

  	
  75

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  5 years

  	
   

  	
  100

  	
  %

  

 

5.1.4                        Notwithstanding the foregoing, any Participant with 3
or more years of Vesting Service who, prior to attaining Normal Retirement Age,
has an involuntary or voluntary Termination of Employment as a result of a
Reduction in Force shall be 100% vested in his or her Account; provided,
however, that such provision shall be implemented in a uniform and
nondiscriminatory manner.

 

5.2                                 Rules for Crediting Vesting Service

 

5.2.1                        A Participant’s Vesting Service shall equal the sum of
paragraphs (a) and (b) below.

 

(a)                                   Subject to the limitations set forth in
Sections 5.2.2 and 5.2.3, a Participant shall earn a year of Vesting Service
for each one year Period of Service he or she completes. For purposes of
determining a one year Period of Service for vesting, non-successive Periods of
Service shall be aggregated on the basis that Periods of Service totaling 12
months (with 30 days deemed to be a month in the case of the aggregation of
fractional months) or 365 days shall equal a whole year Period of Service. This
paragraph shall be interpreted in accordance with the elapsed time method set
forth in Treas. Reg. §1.410(a)-7.

 

30

 

(b)                                  In addition, the Company may, in its
discretion, grant past service credit for Vesting Service to individuals who
become Employees through an acquisition of assets or an entity by an Employer
or Affiliate or through a merger or consolidation of an entity with or into an
Employer or an Affiliate or any other similar transaction; provided, however,
that any such provision shall be subject to the nondiscrimination requirements
of Code Section 401(a)(4).

 

5.2.2                        A Participant who has no vested percentage in his or
her Employer-Derived Account Balance and who has a Termination of Employment
shall, if he or she again becomes an Employee, receive no credit for his or her
Vesting Service prior to such Termination of Employment if his or her Period of
Severance equals or exceeds the greater of five years or his or her Period
Service prior to such Termination of Employment. This paragraph shall be
interpreted in accordance with the elapsed time method set forth in Treas. Reg.
§1.410(a)-7.

 

5.2.3                        If a Participant who is less than 100% vested in his
or her Employer-Derived Account Balance has a Termination of Employment and
incurs a Period of Severance of at least five consecutive years, then his or
her Period of Service after such Period of Severance shall be disregarded for
purposes of vesting in his or her Employer-Derived Account Balance which
accrued before such Period of Severance. This paragraph shall be interpreted in
accordance with the elapsed time method set forth in Treas. Reg. §1.410(a)-7.

 

5.3                                 Rules for Crediting Service Upon
Termination of Employment

 

5.3.1                        If a Participant who is less than 100% vested in his
or her Employer-Derived Account Balance terminates Employment and receives a
complete distribution of his or her vested Employer-Derived Account Balance
(or, under Section 6.1.2, is deemed to have received a complete
distribution), then the nonvested portion of his or her Employer-Derived
Account balance shall be treated as a forfeiture.

 

5.3.2                        In the event a Participant forfeited any portion of
his or her Account in accordance with Section 5.3.1 and again becomes an
Eligible Employee prior to incurring, a Period of Severance equaling at least
five consecutive years), the nonvested portion of his or her Account shall be
restored to its value as of the date of distribution (or deemed distribution).
If the Participant received a distribution, his or her vested portion shall not
be less than an amount (“X”) determined by the formula: X = P(AB + D) - D. For
purposes of applying the formula: P is the vested percentage at the relevant
time; AB is the Account Balance at the relevant time; D is the amount of the
distribution; and the “relevant time” is any time prior to the time at which,
under the Plan, the vested percentage in the account cannot increase. The
restored amount shall be derived from amounts forfeited during the Plan Year
through such Valuation Date and, if such forfeitures are not sufficient, from a
contribution by the Employer.

 

5.3.3                        The Plan shall disregard Elective 401(k) Deferrals
in applying the vesting provisions of the Plan to other contributions or
benefits under Code Section 411(a)(2). However, the Plan shall otherwise
take a Participant’s Elective 401(k) Deferrals into account in determining
the Participant’s vested benefits under the Plan. Thus, for example, the Plan
shall take Elective 401(k) Deferrals into account in determining whether a
Participant has a nonforfeitable right to contributions under the Plan for
purposes of forfeitures, and for applying provisions permitting 

 

31

 

the repayment of distributions to have forfeited
amounts restored, and the provisions of Code Sections 410(a)(5)(D)(iii) and
411(a)(6)(D)(iii) permitting a plan to disregard certain service completed
prior to breaks-in-service (sometimes referred to as “the rule of parity”).

 

5.4                                 Top-Heavy Provisions

 

5.4.1                        As used in this Section 5.4, each of the
following terms shall have the meanings for that term set forth in this Section 5.4.1:

 

(a)                                   Determination Date means, for any Plan Year subsequent to
the first Plan Year, the last day of the preceding Plan Year, and for the first
Plan Year of the Plan, the last day of such Plan Year.

 

(b)                                  Determination Period means the Plan Year containing the Determination
Date.

 

(c)                                   Key Employee means any Employee or former Employee
(and the beneficiaries of such Employee) who, at any time during the “Determination
Period,” was:

 

(i)                                      an officer of the Company or an Affiliate
having an annual Limited Compensation greater than 50% of the Defined Benefit
Dollar Limitation for any Plan Year within the Determination Period or,
effective for Plan Years beginning after December 31, 2001, an officer of
the Company or an Affiliate having an annual Limited Compensation greater than
$130,000 (as adjusted under Code Section 416(i)(1)(A));

 

(ii)                                   an owner (or considered an owner under
Code Section 318) of one of the ten largest interests in the Company or an
Affiliate if such individual’s compensation exceeds 100% of the Defined
Contribution Dollar Limitation; provided, however, that this subparagraph (ii) shall
not apply for Plan Years beginning after December 31, 2001;

 

(iii)                                a “5% owner” (as defined in Code Section 416(i))
of a Company or an Affiliate; or

 

(iv)                               a “1% owner” (as defined in Code Section 416(i))
of a Company or an Affiliate who has an annual Limitation Compensation in
excess of $150,000.

 

(d)                                  Limitation Compensation means an amount determined in accordance
with Section 3.8.1(f).

 

(e)                                   Non-Key Employee means any Employee who is not a Key
Employee.

 

(f)                                     Permissive Aggregation Group means the Required Aggregation Group of
plans plus any other plan or plans of the Company or an Affiliate which, when
considered as a group with the Required Aggregation Group, would continue to
satisfy the requirements of Code Sections 401(a)(4) and 410.

 

(g)                                  Required Aggregation Group means (i) each Qualified Plan of
the Company or an Affiliate in which at least one Key Employee participates,
and (ii) any other Qualified Plan of the 

 

32

 

Company or an Affiliate which enables a plan described
in (i) to meet the requirements of Code Section 401(a)(4) and
Code Section 410.

 

(h)                                  Super Top-Heavy Plan means the Plan, if the Top-Heavy Ratio,
as determined under the definition of Top-Heavy Plan, exceeds 90%.

 

(i)                                      Top-Heavy Plan means, for any Plan Year, the Plan if
any of the following conditions exists:

 

(i)                                      If the Top-Heavy Ratio for the Plan
exceeds 60% and the Plan is not part of any Required Aggregation Group or
Permissive Aggregation Group of plans.

 

(ii)                                   If the Plan is part of a Required
Aggregation Group of plans but not part of a Permissive Aggregation Group and
the Top-Heavy Ratio for the Required Aggregation Group of plans exceeds 60%.

 

(iii)                                If the Plan is part of a Required Aggregation Group
and part of a Permissive Aggregation Group of plans and the Top-Heavy Ratio for
the Permissive Aggregation Group exceeds 60%.

 

Solely
for the purposes of determining whether the Plan or any other plan included in
an aggregation group is a Top-Heavy Plan, the accrued benefit of a Non-Key
Employee shall be determined (a) under the method, if any, that uniformly
applies for accrual purposes under all plans maintained by the Company and any
Affiliate, or (b) if there is no such method, as if such benefit accrued
not more rapidly than the slowest accrual rate permitted under the fractional
accrual rate set forth in Code Section 411(b)(1)(C).

 

(j)                                      Top-Heavy Ratio means, for the Plan, alone, or for the
Required or Permissive Aggregation Group, as appropriate, either (i) or (ii) or
(iii) below:

 

(i)                                      If the Company or any Affiliate maintains
one or more Defined Contribution Plans (including any “simplified employee
pension” within the meaning of Code Section 408(k)) and the Company or any
Affiliate has never maintained any Defined Benefit Plan which, during the one
year period ending on the Determination Date, has or has had accrued benefits,
the Top-Heavy Ratio is a fraction, the numerator of which is the sum of the
account balances of all Key Employees as of the Determination Date, and the
denominator of which is the sum of all account balances, in each case computed
in accordance with Code Section 416; provided, however, that the numerator
and denominator of the Top-Heavy Ratio shall be adjusted 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
further provided, however, that the numerator and denominator of the Top-Heavy
Ratio shall include any part of any account balance distributed within the one
year period ending on the Determination Date due to severance from employment,
separation from service, death, or disability, and shall also include any part
of any account balance distributed for any other reason within the five year
period ending on the Determination Date.

 

33

 

(ii)                                   If the Company or any Affiliate maintains
one or more Defined Contribution Plans (including any “simplified employee
pension” within the meaning of Code Section 408(k)) and the Company or any
Affiliate maintains or has maintained one or more Defined Benefit Plans which,
during the one year period ending on the Determination Date, has or has had any
accrued benefits, the Top-Heavy Ratio is a fraction, the numerator of which is
the sum of the account balances under the aggregated Defined Contribution Plans
for all Key Employees, determined in accordance with (iv) above, plus the
present value of accrued benefits under the aggregated Defined Benefit Plans
for all Key Employees as of the Determination Date and the denominator of which
is the sum of the account balances under the aggregate Defined Contribution
Plans for all Participants, determined in accordance with (iv) above, plus
the present value of accrued benefits under the Defined Benefit Plans for all
such Participants as of the Determination Date, all determined in accordance
with Code Section 416; provided, however, that the numerator and
denominator of the Top-Heavy Ratio shall include any accrued benefit under a
Defined Benefit Plan distributed within the one year period ending on the
Determination Date due to severance from employment, separation from service,
death, or disability, and shall also include any part of any account balance
distributed for any other reason within the five year period ending on the
Determination Date.

 

(iii)                                For purposes of determining the Top-Heavy
Ratio, the value of account balances will be determined as of the most recent
Top-Heavy Valuation Date that falls within or ends with the twelve (12) month
period ending on the Determination Date, except as provided in Code Section 416
for the first and second plan years of a Defined Benefit Plan. The account
balances of any Participant who (a) is a Non-Key Employee, but who was a
Key Employee in a prior year, or (b) has not performed an Hour of Service
with the Company or any Affiliate 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.
When aggregating plans, the value of account balances will be calculated with
reference to the Determination Dates that fall within the same calendar year.

 

(k)                                   Top-Heavy Valuation Date means the date as of which account
balances or accrued benefits are valued to calculate the Top-Heavy Ratio.

 

5.4.2                        If the Plan is determined to be a Top-Heavy Plan as of
any Determination Date, then notwithstanding any Plan provision to the
contrary, it shall be subject to the rules set forth in the balance of
this Section 5.4, beginning with the first Plan Year commencing after such
Determination Date.

 

5.4.3                        (a)  Except as provided in Section 5.4.3(b),
and except to the extent any other Defined Contribution Plan (except for The
Rockwood Specialties Inc. Money Purchase Pension Plan) or Defined Benefit Plan
provides such minimum benefit to the Participant, for any Plan Year in which
the Plan is a Top-Heavy Plan, contributions and forfeitures allocated to the
Profit-Sharing Contributions Subaccount of any Participant who is a Non-Key
Employee (whether or not such 

 

34

 

Participant has completed 1,000 Hours of Service in
that Plan Year) with respect to that Plan Year shall not be less than the
smaller of-

 

(i)                                      3% of such Participant’s Limitation
Compensation, or

 

(ii)                                   the largest percentage of contributions
and forfeitures, as a percentage of the Key Employee’s Compensation, allocated
to the Account of any Key Employee for that year.

 

Effective
for Plan Years beginning after December 31, 2001, Employer Matching
Contributions shall be taken into account for purposes of satisfying the
minimum contribution requirements of Section 416(c)(2) of the Code
and this paragraph (a). The preceding sentence shall apply with respect to
Employer Matching Contributions under this Plan or, if the Plan provides that
the minimum contribution requirement shall be met in another plan, employer
matching contributions under such other plan. Employer Matching Contributions
that are used to satisfy the minimum contribution requirements shall also be
counted for purposes of the Average Contribution Percentage test of Plan Section 3.4.1
and other requirements of Code Section 401(m).

 

(b)                                  The provision in (a) above shall not
apply to any Participant who was not employed by the Company or an Affiliate on
the last day of the Plan Year.

 

5.4.4                        In the event that any provision of this Section 5.4
is no longer required to qualify the Plan under the Code, then such provision
shall thereupon be void without the necessity of further amendment of the Plan.

 

35

 

ARTICLE
VI

AMOUNT AND PAYMENT OF BENEFITS TO
PARTICIPANTS

 

6.1                                 Termination of Employment

 

6.1.1                        A Participant shall be entitled to receive the vested
portion of his or her Account Balance upon a Termination of Employment which
constitutes a “severance from employment” under Code Section 401(k).

 

6.1.2                        Subject to (a) and (b) below, and Section 6.2,
a Participant’s Benefit Commencement Date shall be the date determined under Section 6.1.3.

 

(a)                                   A Participant who terminates Employment
prior to his or her Normal Retirement Date may make a written election (with
Spousel Consent, if married) to receive his or her vested Account Balance as of
a date prior to his or her Normal Retirement Date, provided such election is
made during the 180-day period preceding his Benefit Commencement Date. The
Administrative Committee shall notify the Participant (and the Participant’s
Spouse, if any) of the right to defer any distribution until the Participant’s
Required Distribution Date. Such notification shall include a general
description of the material features of the optional forms of benefit under the
Plan in a manner which would satisfy the notice requirements of Treasury
Regulations Section 1.411 (a)-11. Such notice shall be provided no less
than 30 days and no more than 180 days prior to the Benefit Commencement Date.
However, distribution may commence less than 30 days after such notice is
provided, so long as (i) the Participant (and his or her Spouse, if
applicable) has been provided with information that clearly indicates that he
or she has at least 30 days to consider whether to consider the decision of
whether or not to elect a distribution; and (ii) the Participant (and his
or her Spouse, if applicable) affirmatively elects a distribution.

 

(b)                                  Notwithstanding (b) above, if a
Participant’s vested Account Balance does not exceed $1,000, the Participant’s
vested Account Balance shall be paid to him or her in a lump sum distribution
as soon as practicable following his or her Termination of Employment. For this
purpose, if a Participant does not have a vested interest in any subaccount
(and thus is not entitled to any distribution from such subaccount), the Participant
shall be deemed to have received a complete distribution of his or her interest
in such subaccount upon termination of Employment.

 

6.1.3                        Unless the Participant otherwise elects, in no event
shall he or she begin to receive a benefit later than the sixtieth day after
the close of the Plan Year in which the latest of the following events occurs:

 

(a)                                   the date the Participant attains his or
her Normal Retirement Age;

 

(b)                                  the Participant’s termination of
employment; or

 

(c)                                   the 10th anniversary of the year in which
the Participant commenced participation in the Plan.

 

36

 

Notwithstanding
the foregoing, a Participant who terminates employment may elect to defer
receipt of his or her benefit until his or her Required Distribution Date. In
no event shall a Participant begin to receive his or her benefit later than is
required under Section 6.2.3.

 

6.2                                 In-Service Distributions

 

6.2.1                        Prior to Termination of Employment, a Participant who
is at least age 59-1/2 may elect to withdraw all or any part of his or her
vested Account Balance; provided, however, that any such withdrawal shall be
permitted only if Spousal Consent (if married) to the withdrawal is obtained
within 90 days prior to the date of the withdrawal, and provided, further, that
any such withdrawal shall be subject to such rules and procedures as the
Administrative Committee may establish. 
A Participant who has incurred a Disability may also elect to withdraw
all or any part of his or her vested Account Balance in accordance with this Section 6.2.1.

 

6.2.2                        Prior to Termination of Employment, a
Participant may request a distribution from his or her 401(k) Subaccount
due to hardship. The amount of a hardship withdrawal from a Participant’s 401(k) Subaccount
shall not exceed the amount of his or her Elective 401(k) Deferrals
(without earnings). A hardship withdrawal shall be permitted only if (1) the
Administrative Committee determines that it is due to an immediate and heavy
financial need (in accordance with (a) below) and is necessary to satisfy
such financial need (in accordance with (b) below), and (2) the
Participant obtains Spousal Consent to such withdrawal within 90 days prior to
the date of the withdrawal. A withdrawal under this Section 6.2.2 shall be
subject to such rules and procedures as the Administrative Committee may
establish.

 

(a)                                   A distribution shall be considered due to
an immediate and heavy financial need only if it is due to:

 

(i)                                      medical expenses described in Code Section 213(d) of
the Participant, the Participant’s Spouse, or any dependents of the Participant
(as defined in Code Section 152);

 

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

 

(iii)                                the payment of tuition and related educational
fees for the next 12 months of post-secondary education for the Participant or
his or her Spouse, children or dependents;

 

(iv)                               the need to prevent the eviction of the
Participant from his or her principal residence or foreclosure on the mortgage
of the Participant’s principal residence:

 

(v)                                  the funeral expenses of a member of the
Participant’s family; or

 

(vi)                               any other condition or event which the
Commissioner of the Internal Revenue Service determines is a deemed immediate
and financial need.

 

37

 

(b)                                  A distribution will be considered
necessary to satisfy an immediate and heavy financial need of a Participant if
all of the following requirements are satisfied:

 

(i)                                      the distribution will not be in excess of
(A) the amount of the immediate and heavy financial need of the
Participant, plus (B) such amount as the Administrative Committee deems
necessary to provide for federal, state and local income and penalty taxes
which may reasonably be anticipated to result from the distribution;

 

(ii)                                   the Participant is unable to satisfy the
need by borrowing from commercial sources on reasonable commercial terms;

 

(iii)                                the Participant has made reasonable
liquidation of his or her assets;

 

(iv)                               the Participant has obtained all
distributions, other than hardship distributions, and all nontaxable loans
currently available under all plans maintained by the Employer and the
Affiliates;

 

(v)                                     the Participant’s Elective 401(k) Deferrals
and any other elective contributions and employee contributions, to the Plan
and all other plans maintained by the Employer (as defined in Treas. Reg.
§1.401(k)-1(d)(3)(iv)(F)) will be suspended for at least 6 months after receipt
of the hardship distribution;

 

(vi)                                  Effective for Plan Years beginning on or
before December 31, 2001, the Participant may not make Elective 401(k) Deferrals
for the Participant’s taxable year immediately following the taxable year of
the hardship distribution in excess of the applicable limit under Code Section 402(g) for
such next taxable year.

 

(c)                                   Effective as of January 1, 2002, Section 6.4
shall apply with respect to the minimum required distributions under Code Section 401(a)(9).

 

6.2.3                        [Reserved]

 

6.2.4                        Prior to Termination of Employment, a Participant may
elect to withdraw all or any part of his or her Rollover Contributions
Subaccount; provided, however, that any such withdrawal shall be permitted only
if Spousal Consent to the withdrawal is obtained within 90 days prior to the
date of the withdrawal, and provided, further, that any such withdrawal shall
be subject to such rules and procedures as the Administrative Committee
may establish.

 

6.3                                 Loans

 

6.3.1                        A Participant or Beneficiary who is a “party in
interest” within the meaning of ERISA Section 3(14) may submit an
application to the Administrative Committee to borrow from his or her Account
an amount which, when added to the outstanding balance of all other loans to
the Participant from all qualified plans of the Employer and Affiliates, is not
in excess of the lesser of:

 

38

 

(a)                                   $50,000, reduced by the excess, if any,
of (i) the highest outstanding balance of loans from the Plan or any other
qualified retirement plan maintained by the Employer or an Affiliate during the
one-year period ending on the day before the date on which such loan was made,
over (ii) the outstanding balance of any such other loan on the date on
which the loan is made, or

 

(b)                                  50% of the vested portion of his or her
Account Balance.

 

6.3.2                        If approved, each such loan shall comply
with the following conditions:

 

(a)                                   It shall be evidenced by a negotiable
promissory note.

 

(b)                                  The rate of interest payable on the
unpaid balance of such loan shall be a reasonable rate determined by the
Administrative Committee.

 

(c)                                   The loan, by its terms, must require
substantial level amortization of repayments (to be made not less frequently
than quarterly) within five years; provided, however, that if the proceeds of
the loan are used to acquire any dwelling unit which, within any reasonable
time (determined at the time the loan is made), will be used as the principal
residence of the Participant, the repayment schedule may be for a reasonable
term in excess of five years.

 

(d)                                  In the event of a default, foreclosure on
the promissory note will not occur until a distributable event occurs under Article VI
or Article VIII. Notwithstanding the foregoing, upon the failure of a
Participant to make loan payments because of the bankruptcy of the Participant
or some other event of default set forth in the promissory note, or upon the
occurrence of a distributable event under Article VI or Article VIII,
such loan will become due and payable, and the unpaid balance of such loan,
including any unpaid interest, may, in the Administrative Committee’s
discretion, be charged against the Participant’s Account Balance. The unpaid
balance of such loan, including unpaid interest, shall be charged
against the Participant’s Account Balance before any distribution to the Participant
or a Beneficiary.

 

(e)                                   The loan shall be adequately secured;
provided however, that not more than 50% of the Participant’s vested Account
Balance shall be used as security for a loan.

 

(f)                                     A Participant must obtain Spousal Consent
to any loan within the 90-day period prior to the time any portion of the
Participant’s Account Balance is used to secure the loan. A new Spousal Consent
must be obtained in the event the loan is renegotiated, extended, renewed, or
otherwise revised.

 

6.3.3                        Any loan of a Participant shall be charged solely
against the Account of the borrowing Participant. Principal and interest
payments with respect to the loan shall be credited solely to the Account of
the borrowing Participant from which the loan was made. Any loss caused by
nonpayment or other default on a Participant’s loan obligations shall be borne
solely by that Account.

 

6.3.4                        The Administrative Committee may adopt written rules and
procedures for loans which are hereby incorporated by reference.

 

39

 

6.3.5                        Loans shall be made available to all
Participants on a reasonably equivalent basis, except that the Administrative
Committee may make reasonable distinctions based upon creditworthiness, other
obligations of the Participant, the ability to repay through payroll deductions
and other factors that may adversely affect the ability to assure repayment
through payroll deduction.

 

6.3.6                        Plan loans under this Section 6.3
shall be administered in accordance with Code Section 72(p) and the
regulations thereunder.

 

6.4                                 Minimum Required Distributions

 

6.4.1                        General Requirements

 

(a)                                   Effective Date. 
The provisions of this Section will apply for purposes of
determining required minimum distributions for calendar years beginning with
the 2002 calendar year.

 

(b)                                  Coordination with Minimum Distribution
Requirements Previously in Effect.  The required
minimum distributions for 2002 under this Section will be determined as
follows.  If the total amount of 2002
required minimum distributions under the Plan made to the distributee prior to
the effective date of this Section equals or exceeds the required minimum
distributions determined under this Section, then no additional distributions
will be required to be made for 2002 on or after such date to the
distributee.  If the total amount of 2002
required minimum distributions under the Plan made to the distributee prior to
the effective date of this Section is less than the amount determined
under this Section, then required minimum distributions for 2002 on and after
such date will be determined so that the total amount of required minimum
distributions for 2002 made to the distributee will be the amount determined
under this Section.

 

(c)                                   Precedence.  The
requirements of this Section will take precedence over any inconsistent
provisions of the Plan.

 

(d)                                  Requirements of Treasury Regulations
Incorporated.  All distributions required under this Section will
be determined and made in accordance with the Treasury Regulations under Code Section 401(a)(9).

 

6.4.2                        Time and Manner of Distribution

 

(a)                                   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.

 

(b)                                  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, except as provided in Article VIII,
distributions to the Surviving Spouse will begin by December 31 of the
calendar year immediately following the calendar year 

 

40

 

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.

 

(ii)                                   If the Participant’s Surviving Spouse is
not the Participant’s sole designated beneficiary, then, except as provided in Article VIII,
distributions to the designated beneficiary will begin in December 31 of
the calendar year immediately following the calendar year in which the
Participant died.

 

(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 begin,
this subsection 6.4.2(b), other than subection 6.4.2(b)(i), will apply as if
the Surviving Spouse were the Participant.

 

For purposes of this subsection 6.4.2(b) and
subsection 6.4.4, unless subsection 6.4.2(b)(iv) applies, distributions
are considered to begin on the Participant’s required beginning date.  If subsection 6.4.2(b)(iv) applies,
distributions are considered to begin on the date distributions are required to
begin to the Surviving Spouse under subsection 6.4.2(b)(i).  If distributions under an annuity purchased
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 subsection 6.4.2(b)(i), the date distributions are considered to begin is
the date distributions actually commence.

 

(c)                                   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 subsections 6.4.2(b)(i) and 6.4.4 of this
Section.  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 Treasury Regulations.

 

6.4.3                        Required Minimum Distributions During
Participant’s Lifetime

 

(a)                                   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 Section 1.401(a)(9)-9 of the Treasury
regulations, using the Participant’s age as of the Participant’s birthday in
the distribution calendar year; or

 

41

 

(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 Section 1.401(a)(9)-9 of
the Treasury regulations, using the Participant’s and Spouse’s attained ages as
of the Participant’s and Spouse’s birthdays in the distribution calendar year.

 

(b)                                  Lifetime Required Minimum Distributions
Continue Through Year of Participant’s Death.  Required
minimum distributions will be determined under this subsection 6.4.3 beginning
with the first distribution calendar year and up to and including the
distribution calendar year that includes the Participant’s date of death.

 

6.4.4                        Required Minimum Distributions After Participant’s
Death

 

(a)                                   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 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 

 

42

 

expectancy calculated using the age of the Participant in the year of
death, reduced by one for each subsequent year.

 

(b)                                  Death Before Date Distributions Begin.

 

(i)                                      Participant Survived by Designated
Beneficiary.  Except as provided in Article VIII, 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 designated beneficiary,
determined as provided in subsection 6.4.4(a).

 

(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 subsection 6.4.2(b)(i), this subsection 6.4.4(b) will
apply as if the Surviving Spouse were the Participant.

 

6.4.5                        Definitions

 

For
purposes of this Section 6.4, the following definitions shall apply:

 

(a)                                   Designated beneficiary. 
The individual who is designated as the Beneficiary under the Plan and
is the designated beneficiary under Code Section 401(a)(9) and Treas.
Reg. §1.401(a)(9)-1, Q&A-4.

 

(b)                                  Distribution calendar year. 
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 which 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 subsection 6.4.2(b).  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.

 

(c)                                   Life expectancy. 
Life expectancy as computed by use of the Single Life Table in Treas.
Reg. §1.401(a)(9)-9.

 

43

 

(d)                                  Participant’s account balance. 
The account balance as of the last valuation date in the calendar year
immediately preceding the distribution calendar year (valuation calendar year)
increased by the amount of any contributions made and allocated or forfeitures
allocated to the account balance as of dates in the valuation calendar year
after the valuation date and decreased by distributions made in the valuation
calendar year after the valuation date. 
The account balance for the valuation calendar year includes any amounts
rolled over or transferred to the Plan either in the valuation calendar year or
in the distribution calendar year if distributed or transferred in the
valuation calendar year.

 

(e)                                   Required beginning date. 
The date specified in the Plan when distributions under Code Section 401(a)(9) are
required to begin.

 

44

 

ARTICLE
VII

FORMS OF PAYMENT OF ACCOUNTS

 

7.1                                 Methods of Distribution

 

The
“Normal Form” of benefit for all Participants shall be a lump sum distribution.
Distributions from a Participant’s vested Account under Article VI (other
than a loan), shall be distributed in the Normal Form unless the
Participant elects to receive his or her benefit in monthly, quarterly or
annual installments, payable over any period not exceeding the life expectancy
of the Participant or the joint life expectancies of the Participant and the
Participant’s designated Beneficiary.

 

A
Participant who has elected to receive an installment distribution may at any
time elect to discontinue such installment payments and have the unpaid vested
Account Balance paid in a lump sum distribution. In the event a Participant who
has elected to receive an installment distribution dies after his or her
Benefit Commencement Date but before the payment of the final installment, the
unpaid installments shall be paid to the Participant’s Beneficiary. The
Beneficiary may elect to continue receiving such installments or to have the
unpaid vested Account Balance paid in a lump sum distribution. In the event a
Participant dies before his or her Benefit Commencement Date, any election of a
form of payment shall be void, and the Participant’s vested Account Balance
shall be distributed in accordance with Article VIII.

 

Distributions
shall be subject to the requirements of Code Section 401(a)(9).

 

7.2                                 Election of Optional Forms

 

7.2.1                        An optional form of benefit payment provided for in Section 7.1
may be elected in accordance with procedures established by the Administrative
Committee, which are hereby incorporated by reference.

 

7.2.2                        [Reserved]

 

7.2.3                        [Reserved]

 

7.2.4                        [Reserved]

 

7.3                                 Direct Rollovers

 

7.3.1                        Notwithstanding any provision in this Plan to the
contrary, a Participant or a Beneficiary who is the Surviving Spouse of a
Participant may elect to have all or a portion of any amount payable to him or
her from the Plan which is an “eligible rollover distribution” (as defined in Section 7.3.2
below) transferred directly to an “eligible retirement plan” (as defined in Section 7.3.2
below).  Without limiting the generality
of the foregoing, the Administrative Committee shall be permitted to allow a
direct rollover of a Participant’s loan under the Plan (and related promissory
note) to a qualified trust described in Code Section 401(a) or a
qualified annuity plan described in Code Section 403(a).

 

45

 

Effective as of January 1,
2008, a distributee may elect to have an eligible rollover distribution paid
directly to a Roth IRA (as defined in Code Section 408A); provided,
however, for taxable years beginning prior to January 1, 2010, a
distributee shall not be permitted to make a qualified rollover contribution
(as defined in Code Section 408A(e)) from the Plan to a Roth IRA if, for
the year the eligible rollover distribution is made, the Participant has a
modified adjusted gross income exceeding $100,000 or is married and files a
separate return (as provided in Code Section 408A(c)(3)(b)).  Any such election shall be made in accordance with
such uniform rules and procedures as the Administrative Committee may
prescribe from time to time as to the time and manner of the election in
accordance with Code Section 401(a)(31).

 

7.3.2                        Definitions for purposes of this Section 7.3

 

(a)                                   “Eligible rollover distribution” shall
mean any distribution of all or any portion of the balance to the credit of the
distributee other than: (1) 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; (2) any distribution for a specified period of ten years or
more; (3) any distribution to the extent such distribution is required
under Code Section 401(a)(9); or (4) the portion of any distribution
that is not includable in gross income. 
Hardship withdrawals under Section 6.2.2 shall not be eligible
rollover distributions, and the distributee may not elect to have any portion
of such a distribution paid directly to an eligible retirement plan.

 

(b)                                  “Eligible retirement plan” shall mean,
with respect to a Participant, an individual retirement account or annuity
described in Code Section 408(a) or 408(b)(“IRA”), an annuity plan
described in Code Section 403(a) or a qualified plan described in
Code Section 401(a), that accepts the distributee’s eligible rollover
distribution. An eligible retirement plan shall also mean an annuity contract
described in Section 403(b) of the Code and an eligible plan under Section 457(b) of
the Code 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.

 

46

 

ARTICLE
VIII

DEATH BENEFITS

 

8.1                                 Payment of Account Balances. 
In the event of the death of a Participant while an Employee, the
Participant’s entire Account Balance shall be payable to his or her
Beneficiary. In the event of the death of a Participant after Termination of
Employment but before his or her Benefit Commencement Date, the Participant’s
vested Account Balance shall be payable to his or her Beneficiary. If Section 8.1.2
does not apply, benefits shall be payable as soon as practicable after the Participant’s
death in a lump sum distribution unless the Beneficiary instead elects one of
the optional forms of benefit available under Section 7.1. In the event of
a Participant’s death after his or her Benefit Commencement Date, any unpaid
vested Account Balance shall be payable in accordance with the form of benefit
elected by the Participant under Article VII.

 

8.2                                 Beneficiary

 

8.2.1                        Subject to Sections 8.2.2, 8.2.3, 8.2.4, and 8.2.5
below, a Participant may, with Spousal Consent (if married), designate a person
or persons as his or her Beneficiary by filing a written designation of
Beneficiary with the Administrative Committee in the time and manner
established by the Committee. If no valid designation of Beneficiary is in
effect at the time of the Participant’s death, or if the designated Beneficiary
does not survive the Participant, the Beneficiary shall be the Participant’s
Surviving Spouse or, if there is no Surviving Spouse, the Participant’s estate.
For this purpose, if the Participant and the Beneficiary die simultaneously, or
if there is not sufficient evidence to establish who died first, the
Participant shall be deemed to have survived the Beneficiary.

 

8.2.2                        [Reserved]

 

8.2.3                        Any prior designation of a Beneficiary shall be
automatically revoked upon the subsequent marriage or remarriage of the
Participant.

 

8.2.4                        To the extent permitted by law and
subject to any valid qualified domestic relations order (as defined in Code Section 414(p)),
a Participant’s designation of his or her Spouse as Beneficiary shall be
automatically revoked upon the Participant’s subsequent divorce. The
Participant shall not be prevented from re-designating a former Spouse as his
or her Beneficiary following a divorce.

 

8.3                                 Required Commencement

 

Notwithstanding
any other provision of the Plan to the contrary, if a Participant dies before
his or her Benefit Commencement Date, the Participant’s entire interest must be
distributed within five years after the Participant’s death, except that if the
designated Beneficiary is the Participant’s Surviving Spouse, then
distributions must begin (a) within one year of the Participant’s death,
or (b) the date the Participant would have attained age 70-1/2.

 

47

 

ARTICLE
IX

FIDUCIARIES

 

9.1                                 Named Fiduciaries

 

9.1.1                        The Administrative Committee (or its
delegate) shall be a “named fiduciary” (within the meaning of Section 402(a)(2) of
ERISA) of the Plan, with authority to control and manage the operation and
administration of the Plan.

 

9.1.2                        The Company (or its delegate) shall be
the “administrator” and “plan administrator” (within the meaning of ERISA Section 3(16)(A) and
Code Section 414(g), respectively) with respect to the Plan.

 

9.1.3                        The Trustee shall be a “named fiduciary”
(within the meaning of ERISA Section 402(a)(2)) of the Plan, with the
authority to manage and control Trust assets in accordance with the terms of
the Trust Agreement.

 

9.1.4                        There are no “named fiduciaries” of the
Plan other than the Administrative Committee and the Trustee.

 

9.2                                 Employment of Advisers

 

Each
named fiduciary shall be authorized, to the extent it deems advisable, to
designate persons who are not named fiduciaries to carry out fiduciary
responsibilities allocated to it, to retain accountants, agents, attorneys,
actuaries and other professional consultants and to rely upon information,
statistics or analysis provided by any of such persons.

 

9.3                                 Multiple Fiduciary Capacities

 

Any
“named fiduciary” with respect to the Plan (as defined in ERISA Section 402(a)(2))
and any other “fiduciary” (as defined in ERISA Section 3(21)) with respect
to the Plan may serve in more than one fiduciary capacity.

 

9.4                                 Payment of Expenses

 

The
reasonable expenses incident to the operation of the Plan, including, without
limitation, the compensation of the Trustee, consultants, attorneys,
fiduciaries and other advisors, shall be paid out of the Trust, to the extent
permitted by law and not paid by the Employer. All members of the
Administrative Committee shall serve without compensation from the Trust. Any
determination by the Employer to pay all or part of any expense shall not in
any way limit the Employer’s right to determine to have similar or other
expenses paid out of the Trust assets at any other time.

 

9.5                                 Indemnification

 

To
the extent not prohibited by state or federal law, the Company and each
Participating Affiliate, jointly and severally, agree to, and shall, indemnify
and hold harmless any member of 

 

48

 

the
Administrative Committee or any other Employee, officer or director of an
Employer from all claims for liability, loss, damage or expense (including
payment of reasonable expenses in connection with defense against any such
claim) which result from any exercise or failure to exercise any of the
indemnified person’s responsibilities with respect to the Plan, other than by
reason of gross negligence, willful misconduct or a willful failure to act.

 

49

 

ARTICLE
X

TRUSTEE AND TRUST FUND

 

10.1                           Establishment of Trust. 
A Trust Agreement shall be executed between the Company and the Trustee,
which agreement shall provide for the creation of the Trust to receive and hold
all contributions and earnings therefrom. Benefits provided under the Plan and
expenses of administration of the Plan shall be paid from the assets held in
the Trust as directed by the Administrative Committee and the Company,
respectively.

 

10.2                           Powers and Duties of the Trustee. 
The Trustee shall have exclusive authority and discretion to manage and
control the assets of the Plan in accordance with the terms of the Trust
Agreement.

 

10.3                           Exclusive Benefit. 
Except as provided in Section 3.10, the Trust shall be maintained
for the exclusive purpose of providing Plan benefits to Participants and their
beneficiaries and paying the expenses of administration of the Plan and the
Trust to the extent not paid by the Employer.

 

10.4                           Delegation of Responsibility. 
The Trustee may designate persons, including persons other than “named
fiduciaries” (as defined in ERISA Section 402(a)(2)), to carry out the
specified responsibilities of the Trustee and shall not be liable for any act
or omission of a person so designated.

 

50

 

ARTICLE
XI

PLAN ADMINISTRATION

 

11.1                           The Administrative Committee

 

11.1.1                  Administrative Committee members shall be
appointed by the Company and may be removed by the Company at its discretion.
Unless the Company otherwise provides, any member of the Administrative
Committee who is an Employee of the Company or an Affiliate at the time of his
or her appointment will be considered to have resigned from the Administrative
Committee when no longer an Employee. Employees of the Company or an Affiliate
shall receive no compensation for their services rendered to or as members of
the Administrative Committee.

 

11.1.2                  If more than one member is appointed, the Administrative Committee
shall act by a majority of its members at the time in office, and such action
may be taken either by a vote at a meeting or in writing without a meeting.
However, if less than three members are appointed, the Administrative Committee
shall act only upon the unanimous consent of its members. The Administrative
Committee may authorize in writing any person to execute any document or
documents on its behalf, and any interested person, upon receipt of notice of
such authorization directed to it, may thereafter accept and rely upon any
document executed by such authorized person until the Administrative Committee
shall deliver to such interested person a written revocation of such
authorization.

 

11.1.3                  A member of the Administrative Committee who is also a Participant
shall not vote or act upon any matter relating solely to himself or herself
unless such person is the sole member of the Administrative Committee.

 

11.2                           Administrative Committee Powers and
Duties

 

The
Administrative Committee is allocated such duties and powers as may be
necessary to discharge its duties hereunder including, without limitation, the
exclusive and discretionary authority to perform the following functions:

 

(a)                             To make such rules and regulations
as it shall deem necessary or proper for the efficient administration of the
Plan;

 

(b)                            To interpret and construe the Plan, to resolve
any Plan ambiguities and to decide any and all matters arising hereunder
including, without limitation, questions of fact as to eligibility to
participate in the Plan or receive benefits under the Plan or the amount and
timing of benefits under the Plan; provided however, that all such
interpretations and decisions shall be applied in a uniform and
nondiscriminatory manner to all similarly situated persons and shall be
conclusively binding upon all persons interested in the Plan. The Administrative
Committee has discretionary authority to grant or deny benefits under this
Plan. Benefits under the Plan will be provided only if the Administrative
Committee decides, in its sole discretion, that the applicant is entitled to
them;

 

(c)                             To select the Investment Funds;

 

51

 

(d)                            To appoint one or more insurance
companies;

 

(e)                             To appoint one or more Investment
Managers;

 

(f)                               To establish and carry out a funding
policy and method consistent with the objectives of the Plan and the
requirements of ERISA;

 

(g)                            To monitor the limits on contributions
under Article III and to take action to assure that such limits are
satisfied for each Plan Year;

 

(h)                            To authorize disbursements from the
Trust;

 

(i)                                To prescribe procedures to be followed by
Participants or Beneficiaries who file applications for benefits;

 

(j)                                To approve the design of enrollment
forms, Beneficiary designation forms and any other forms utilized in the
administration of the Plan;

 

(k)                             To prepare and distribute, in such manner
as the Administrative Committee determines to be appropriate, information
concerning the Plan;

 

(l)                                To receive from the Employer and from
Participants such information as shall be necessary for the proper
administration of the Plan;

 

(m)                          To establish such written procedures as
it shall deem necessary or proper to determine the qualified status, pursuant
to Code Section 414(p) of any domestic relations order received by
the Administrative Committee which affects the right of a Participant and any
alternate payee to payment of benefits under the Plan, and to administer
distributions pursuant to any domestic relations order which the Administrative
Committee determines to be a qualified domestic relations order within the
meaning of Code Section 414(p);

 

(n)                            To delegate, by written instrument to one
or more administrative subcommittees with respect to each Employer, such of the
powers and duties allocated herein to the Administrative Committee as it deems
advisable; any such subcommittee shall consist of persons appointed by the
Administrative Committee, taking into consideration designations recommended by
the principal executive officer of any Employer; and

 

(o)                            To make recommendations to the Company
concerning amendments to the Plan.

 

11.3                           Claims Procedure

 

The
Administrative Committee hereby adopts the procedure set forth below for
reviewing benefits claims under the Plans:

 

(a)                             A Participant or Beneficiary shall submit
all claims for benefits under the Plans in writing to the Administrative
Committee.

 

52

 

(b)                            The Administrative Committee shall send
to the Participant or Beneficiary written notice of its decision within ninety
(90) days of receiving the claim. The period may be extended to one hundred
eighty (180) days if the Administrative Committee notifies the claimant in
writing within the initial ninety (90) day period that special circumstances
exist which require an extension of the period. 
The written decision from the Administrative Committee shall set forth:

 

(i)                                      the specific reasons for the decision;

 

(ii)                                   the specific Plan provisions upon which
the decision is based;

 

(iii)                                a description of any additional material or
information necessary for the Participant or Beneficiary to perfect the claim
for benefits and an explanation of the reasons why such material or information
is necessary;

 

(iv)                               information regarding procedures for
submitting a request for review of the decision on the claim; and

 

(v)                                  a statement of the claimant’s right to
bring an action under ERISA Section 502(a) following an adverse
benefit determination on review.

 

(c)                             If the Administrative Committee denies
the claim in whole or in part, the Participant or Beneficiary may submit a
written request for review to the Administrative Committee within sixty (60)
days of the notice of denial, pursuant to the procedures referenced in
paragraph (b)(iv) above. The Participant or Beneficiary shall set forth
all the grounds upon which the request for review is based and may submit
issues or comments in writing. The Participant or Beneficiary (or his or her
duly authorized representative) shall be entitled to receive, upon request and
free of charge, reasonable access to, and copies of, all documents, records,
and other information relevant to the claim for benefits.

 

(d)                            The Administrative Committee shall send
the Participant or Beneficiary written notice of its decision within sixty (60)
days after the Administrative Committee receives the request for review. The
review period may be extended to one hundred twenty (120) days if the
Administrative Committee notifies the claimant within the initial sixty (60)
day period that special circumstances exist which require an extension of the
review period. The Administrative Committee’s written decision shall set forth
the specific reasons for the decision and the Plan provision on which the
decision is based. The Administrative Committee’s written decision
shall also 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 a statement of the claimant’s right to bring an action under ERISA Section 502(a).
All such decisions of the Administrative Committee shall be final, conclusive
and binding upon all Participants, Beneficiaries, and other interested persons.
If no decision is received after sixty (60) days, the Participant should deem
the claim on review denied.

 

(e)                             If applicable, claims for benefits due to
Disability shall be decided in accordance with the applicable disability claims
procedures under Section 2560.503-1 of the U.S. 

 

53

 

Department of Labor regulations (such procedures are
hereby fully incorporated herein by this reference).

 

11.4                           Delegation of Responsibility

 

The
Administrative Committee may designate persons, including persons other than “named
fiduciaries” (as defined in ERISA Section 402(a)(2)), to carry out the
specified responsibilities of the Administrative Committee and shall not be
liable for any act or omission of a person so designated.

 

54

 

ARTICLE
XII

MANAGEMENT, CONTROL AND INVESTMENT OF PLAN
ASSETS

 

12.1         Investment Funds

 

12.1.1      The Administrative Committee may
establish one or more Investment Funds as it shall from time to time determine
for the investment of a Participant’s Accounts. Notwithstanding the foregoing,
the Administrative Committee, in accordance with Section 404(c) of
ERISA, shall make available at all times at least three investment
alternatives, each of which is diversified and has materially different risk
and return characteristics. The investment alternatives in the aggregate shall
enable each Participant, by choosing among them, to achieve a portfolio with
aggregate risk and return characteristics at any point within the range
normally appropriate for the Participant and which, in the aggregate, tend to
minimize through diversification the overall risk of the Participant’s
portfolio. The Plan is intended to constitute a plan described in Section 404(c) of
ERISA and Section 2550.404c-1 of the U.S. Department of Labor Regulations,
such that, to the extent applicable, the fiduciaries of the Plan may be
relieved of liability for any losses that are the direct and necessary result
of the investments instructions given by Participants and Beneficiaries
under the Plan.

 

12.1.2      Each Participant shall exercise control
over the assets in his Accounts and is solely responsible for his investment
elections. The Plan fiduciaries are not empowered to advise a Participant as to
the manner in which his Accounts shall be invested. The fact that an Investment
Fund is available to Participants for investment under the Plan shall not be
construed as a recommendation for investment in that fund.

 

12.2         Valuation of Accounts

 

A
Participant’s Accounts shall be revalued at fair market value on each Valuation
Date, with earnings and losses since the previous Valuation Date being credited
to the Participant’s Account. Earnings and losses of the particular Investment
Funds shall be allocated in the ratio that the portion of the Account Balance
of a Participant invested in a particular Investment Fund bears to the total
amount invested in such fund.

 

12.3         Investment in Insurance Contract

 

The
Administrative Committee may appoint one or more insurance companies to hold
assets of the Plan, and may purchase insurance contracts or policies from one
or more insurance companies with assets of the Plan. Neither the Trustee nor
the Administrative Committee shall be liable for any act or omission of an
insurance company with respect to any duties delegated to any insurance
company.

 

12.4         The Investment Manager

 

12.4.1      The Administrative Committee may, by an
instrument in writing, appoint one or more persons as an Investment Manager.
Each person so appointed shall be (a) an investment adviser registered
under the Investment Advisers Act of 1940, (b) a bank as defined in that
Act, or (c) an 

 

55

 

insurance company qualified to manage, acquire or
dispose of any asset of the Plan under the laws of more than one state.

 

12.4.2      Each Investment Manager shall acknowledge
in writing that it is a fiduciary (as defined in ERISA Section 3(21)) with
respect to the Plan. The Company or the Administrative Committee shall enter
into an agreement with each Investment Manager specifying the duties and
compensation of such Administrative Manager and the other terms and conditions
under which such Investment Manager shall be retained. Neither the Trustee nor
the Administrative Committee shall be liable for any act or omission of any Investment
Manager and shall not be liable for following the advice of any Investment
Manager with respect to any duties delegated to any Investment Manager.

 

12.4.3      The Administrative Committee shall have
the power to determine the Trust assets to be invested pursuant to the
direction of a designated Investment Manager and to set investment objectives
and guidelines for the Investment Manager.

 

12.5         Compensation

 

Each
insurance company, Investment Manager and Trustee shall be paid such reasonable
compensation, in addition to their expenses, as shall from time to time be
agreed to by the Company or other person making such appointment; provided,
however, that no such compensation shall be paid to any person who is an
Employee.

 

56

 

ARTICLE
XIII

PLAN AMENDMENT OR TERMINATION

 

13.1         Plan Amendment

 

The
Company shall have the right at any time to amend the Plan, by an instrument in
writing, effective retroactively or otherwise, provided that no such amendment
shall have any of the effects specified in Section 13.2.

 

13.2         Limitations of Plan Amendment

 

No
Plan amendment shall:

 

(a)          authorize any part of the Trust to be used for, or
diverted to, purposes other than for the exclusive benefit of Participants or
their Beneficiaries;

 

(b)         decrease the Account Balance of any Participant or his
or her Beneficiary under the Plan;

 

(c)          reduce the vested percentage of any Participant;

 

(d)         eliminate an optional form of benefit except to the
extent permitted by Code Section 411(d)(6); or

 

(e)          change the vesting schedule, either directly or
indirectly, unless each Participant having not less than three years of Vesting
Service is permitted to elect, within a reasonable period specified by the
Administrative Committee after the adoption of such amendment, to have his or
her vested percentage computed without regard to such amendment. The period
during which the election may be made shall commence with the date the
amendment is adopted and shall end as the later of:

 

(i)             sixty days after the amendment is
adopted;

 

(ii)            sixty days after the amendment becomes
effective; or

 

(iii)           sixty
days after the Participant is issued written notice by the Administrative
Committee.

 

13.3         Right of the Company to Terminate Plan

 

The
Company intends and expects that, from year to year, it will be able to and
will deem it advisable to continue this Plan in effect and to make
contributions as herein provided. The Company reserves the right, however, to
terminate the Plan at any time.

 

57

 

13.4         Effect of Partial or Complete Termination

 

13.4.1      As of
the date of a “partial termination” of the Plan or a complete discontinuance of
contributions under the Plan, each affected Participant who is then an Employee
shall become 100% vested in his or her Account Balance.

 

13.4.2      As of
the date of a “complete termination” of the Plan, each affected Participant who
is then an Employee shall become 100% vested in his or her Account Balance, and
distributions shall be made as soon as practicable thereafter, as determined by
the Administrative Committee, in accordance with Article VII; provided,
however, if the Company or an Affiliate maintains another “alternative defined
contribution plan” (other than an employee stock ownership plan as defined in
Code Section 4975(e)(7), a simplified employee pension, a SIMPLE IRA as
defined in Code Section 408(p), a contract or plan under Code Section 403(b),
and a plan under Code Section 457), no 401(k) Subaccounts shall be
distributed solely in connection with the Plan’s termination.  For purposes this paragraph, a plan is an “alternative
defined contribution plan” only if it exists at any time during the period
beginning on the date of Plan termination and ending 12 months after
distribution of all assets from the terminated Plan.  However, if at all times during the 24-month
period beginning 12 months before the date of Plan termination, fewer than 2%
of the employees who were eligible under this Plan as of the date of Plan
termination are eligible under the other defined contribution plan, the other
plan is not an alternative defined contribution plan.

 

58

 

ARTICLE
XIV

MISCELLANEOUS PROVISIONS

 

14.1         Plan Not a Contract of Employment

 

The
Plan is not a contract of Employment, and the terms of Employment of any
Employee shall not be affected in any way by the Plan or related instruments
except as specifically provided therein.

 

14.2         Source of Benefits

 

Benefits
under the Plan shall be paid or provided for solely from the Trust, and neither
the Employer, the Administrative Committee, Trustee, Investment Manager or
insurance company shall assume any liability therefor.

 

14.3         Benefits Not Assignable

 

Except
as permitted in Code Section 401(a)(13) and ERISA Section 206(d),
benefits provided under the Plan may not be assigned or alienated, either
voluntarily or involuntarily. The preceding sentence shall not apply to (a) loans
under Article VI, or (b) the creation, assignment or recognition of a
right to any benefit payable with respect to a Participant pursuant to a
domestic relations order which the Administrative Committee determines to be a “qualified
domestic relations order” (as defined in Code Section 414(p)).

 

14.4         Domestic Relations Orders

 

Any
other provision of the Plan to the contrary notwithstanding, the Administrative
Committee shall have all powers necessary with respect to the Plan for the
proper operation of Code Section 414(p) with respect to qualified
domestic relations orders referred to in Section 14.3, including, but not
limited to, the power to establish all necessary or appropriate procedures, to
authorize the establishment of new accounts with such assets and, subject to
such investment control by the Administrative Committee as the Administrative
Committee may deem appropriate, and the Administrative Committee may decide
upon and make direct appropriate distributions therefrom. To the extent
provided in a qualified domestic relations order, distribution of any portion
of a Participant’s vested Account Balance allocated to an alternate payee may
be made whether or not the Participant has terminated Employment or is
otherwise eligible to receive a distribution. Effective as of April 6,
2007, a domestic relations order shall not fail to be treated as a qualified
domestic relations order, pursuant to this Section 14.4, solely because (1) the
order is issued after, or revises, another domestic relations order or
qualified domestic relations order, and/or (2) solely because of the time
at which it is issued; provided, however, any such domestic relations order
shall be subject to the same requirements and protections that apply to
qualified domestic relations orders under ERISA Section 206(d)(3).

 

14.5         Benefits Payable to Minors, Incompetents and
Others

 

In
the event any benefit is payable to a minor or to a person otherwise under a
legal disability, or who, in the sole discretion of the Administrative
Committee, is by reason of 

 

59

 

advanced
age, illness or other physical or mental incapacity incapable of handling and
disposing of his or her property, or otherwise is in such position or condition
that the Administrative Committee believes that he or she could not utilize the
benefit for his or her support or welfare, the Administrative Committee shall
have discretion to apply the whole or any part of such benefit directly to the
care, comfort, maintenance, support, education or use of such person, or to pay
the whole or any part of such benefit to the parent of such person; to the
guardian, committee, conservator or other legal representative, wherever
appointed, of such person; the person with whom such person is residing; or to
any other person having the care and control of such person. The receipt by any
such person to whom any such payment on behalf of any Participant or
Beneficiary is made shall be a sufficient discharge therefor.

 

14.6         Merger or Transfer of Assets

 

14.6.1      Subject
to Section 14.6.2, the Company may direct that the Plan be merged or
consolidated with, or may transfer all or a portion of its assets and
liabilities to, another plan or may receive assets and liabilities from another
plan; without limiting the generality of the foregoing, the Company may direct
that the Plan accept from, or transfer to, another plan any outstanding plan
loan balances.  The Administrative
Committee may take whatever action it deems necessary or appropriate to effect
any such merger, consolidation or transfer. Any optional forms of benefit or
other special provisions applicable to a Participant for whom an account
balance has been transferred to this Plan from another plan shall be set forth
in an Appendix hereto.

 

14.6.2      The
Plan may not merge or consolidate with, or transfer any assets or liabilities to,
any other plan, unless each Participant would (if the Plan then terminated)
receive a benefit immediately after the merger, consolidation or transfer which
is equal to or greater than the benefit he or she would have been entitled to
receive immediately before the merger, consolidation or transfer (if the Plan
had then terminated).

 

14.7         Participation in the Plan By an Affiliate

 

14.7.1      With
the consent of the Company and by duly authorized action, an Affiliate may
adopt the Plan. Participating Affiliate contributions shall be allocated solely
to Eligible Employees of the Participating Affiliate. Company contributions
shall be allocated solely to Eligible Employees of the Company.

 

14.7.2      With
the consent of the Company and by duly authorized action, any other Employer
may terminate its participation in the Plan or withdraw from the Plan and the
Trust.

 

14.7.3      A
Participating Affiliate shall have no independent power with respect to the
Plan except as specifically provided by this Section 14.7.

 

14.8         Action by the Company or a Participating
Affiliate

 

Any
action required to be taken by the Company or any Participating Affiliate
pursuant to the terms of the Plan shall be taken by its board of directors or
any person or persons duly empowered to act on its behalf.

 

60

 

14.9         Provision of Information

 

For
purposes of the Plan, each Employee shall execute such forms as may be
reasonably required by the Administrative Committee, and the Employee shall
make available to the Administrative Committee and the Trustee any information
they may reasonably request in this regard.

 

14.10       Notice of Address

 

Each
person entitled to benefits under this Plan must file with the Administrative
Committee, in writing, his or her post office address and each subsequent
change of post office address. Any communication, statement or notice addressed
to such person at his or her latest reported post office address will be
binding on him or her for all purposes under the Plan.

 

14.11       Controlling Law

 

The
Plan is intended to qualify under Code Section 401(a) and to comply
with ERISA, and its terms shall be interpreted accordingly. Otherwise, to the
extent not preempted by ERISA, the laws of the State of New York shall control
the interpretation and performance of the terms of the Plan.

 

14.12       Military Service

 

Notwithstanding
any provision of this Plan to the contrary, effective as of December 12,
1994, contributions, benefits, and service credit with respect to qualified
military service will be provided in accordance with Code Section 414(u).

 

14.13       Conditional Adoption

 

Anything
in the foregoing to the contrary notwithstanding, the Plan has been adopted on
the express condition that the Plan will be considered by the Internal Revenue
Service as qualifying under the provisions of Code Section 401(a), and the
Trust will be considered as qualifying for exemption from taxation under Code Section 501(a).
If the Internal Revenue Service determines that the Plan or Trust does not so
qualify, the Plan shall be amended or terminated as decided by the Company.

 

14.14       Word Usage and Article and Section References

 

As
used in the Plan, the masculine includes the feminine, the singular includes
the plural, and the plural includes the singular, unless qualified by the
context. Titles of Articles and Sections of the Plan are for convenience of
reference only and are to be disregarded in applying the provisions of the
Plan.

 

14.15       Effect of Mistake

 

In
the event of a mistake or misstatement as to the age, eligibility,
participation of an Eligible Employee, Vesting Service, the amount of
contributions made by or on behalf of a 

 

61

 

Participant
or the amount of distributions made or to be made to a Participant or Beneficiary,
the Administrative Committee shall, to the extent it deems it possible, make
the necessary adjustments (including, but not limited to, recoupment, reduction
in benefit payments, offset of benefit payments or return of overpayments) to
grant to such Participant or Beneficiary the credits or distributions to which
he is properly entitled under the Plan.

 

62

 

IN
WITNESS WHEREOF, this Plan is hereby adopted, effective as of January 1,
2008, to be signed this
             day of
                              ,
2008.

 

	
   

  	
  Rockwood
  Specialties Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  

 

63

 

SUPPLEMENT
A

 

Merger of the CeramTec NA Innovative Ceramic Engineering Corp. portion

of the

MG North America Holdings Inc. Saving Plan

 

A-1         Introduction.  Effective July 31, 2004 (the “merger
date”), plan assets and liabilities related to Ceram Tec NA Innovative Ceramic
Engineering Corp. (“Ceram Tec”) participants and beneficiaries under the MG
North America Holdings Inc. Savings Plan (the “MG Savings Plan”) shall be
spun-off and merged into the Plan.  The
merger of the Ceram Tec portion of the MG Savings Plan into the Plan (and any
resulting transfer of assets) shall comply with Sections 401(a)(12), 411(d)(6),
and 414(l) of the Code and the regulations thereunder.  The purpose of this Supplement A is to
provide for the plan spin-off and merger. 
Each participant and beneficiary in the Ceram Tec portion of the MG
Savings Plan shall be referred to herein as a “Supplement A member.”

 

A-2         Transfer
of Account Balances.  As of the
merger date, liabilities equal to the aggregate account balances, as adjusted
through the merger date in accordance with the provisions of the MG Savings
Plan, of each Supplement A member shall be transferred to the Plan and shall be
credited to corresponding accounts established for each such Supplement A
member under the Plan.  Thereafter, such
balances shall be subject to the terms and conditions of the Plan, except as
otherwise provided herein in this Supplement A. 
The accounts of the Supplement A members under this Plan shall be
adjusted for earnings, gains, and losses after such accounts have been invested
in the investment funds as provided in Paragraph A-3 below.

 

A-3         Transfer
of Assets.  On, or as soon as
practicable following, the merger date, the assets of the trust that serves as
the funding vehicle for the Ceram Tec portion of the MG Savings Plan shall be
transferred to the Profit-Sharing/401(k) Plan for Employees of Rockwood
Specialties Inc. Trust.  Such transfers
shall be in cash, except that promissory notes related to Supplement A members’
loans from the MG Savings Plan shall be transferred in-kind.  Such transferred assets (other than
promissory notes) shall be invested in the investment funds designated by the
Administrative Committee on or as soon as practicable following the transfer of
assets to the Profit-Sharing/401(k) Plan for Employees of Rockwood
Specialties Inc. Trust.

 

A-4         Participation
in the Plan.  Each Supplement A
member who is employed by an Employer on the merger date shall become a member
of the Plan on the merger date, subject to the conditions and limitations of
the Plan, except as otherwise provided herein in this Supplement A.  Each other Supplement A member shall, on and
after the merger date, be treated as an inactive member or a beneficiary
(whichever is applicable) of the Plan, subject to the conditions and
limitations of the Plan, except as otherwise provided herein in this Supplement
A.

 

A-5         Contributions
under the Plan.  Each Supplement A
member who becomes a participant under the Plan shall be eligible to make
Elective 401(k) Deferrals as provided under Section 3.1.2 of the
Plan.  Each Supplement A member who
becomes a participant under the Plan shall be eligible for an Employer Matching
Contribution after three months of such participation in the Plan, in an amount
equal to the following:

 

64

 

200% of each Supplement A
member’s Elective 401(k) Deferrals not exceeding 1% of the Supplement A
member’s Compensation for each Plan Year, plus 100% of the Supplement A member’s
Elective 401(k) Deferrals that exceed 1% but do not exceed 2% of the
Supplement A member’s Compensation that Year, plus 25% of the Supplement A
member’s Elective 401(k) Deferrals that exceed 2% but no more than 6% of
the Supplement A member’s Compensation for that Year, for a maximum Employer
Matching Contribution of 4% of the Supplement A member’s Compensation for that
Plan Year.

 

Effective as of January 1,
2007, each Supplement A member who becomes a participant under the Plan shall
be eligible for an Employer Matching Contribution after three months of such
participation in the Plan, in an amount equal to 50% of each Supplement A
member’s Elective 401(k) Deferrals that do not exceed 6% of the Supplement
A member’s Compensation each Plan Year, for a maximum Employer Matching Contribution
of 3% of the Supplement A member’s Compensation for that Plan Year.

 

Effective
January 1, 2007, Supplement A members shall be eligible for Profit-Sharing
Contributions as otherwise provided under Section 3.1.4 of the Plan.

 

A-6         Loans.  Any outstanding loan on the merger date that
had been made to a Supplement A member under the MG Savings Plan shall be
maintained on after that date under the Plan until all amounts of principal and
interest thereon have been repaid.  The
terms and conditions relating to such outstanding loans of Supplement A members
will continue as in existence prior to merger date.

 

A-7         In-Service
Withdrawals.  On and after the merger
date, a Supplement A member (other than a beneficiary) may obtain any
in-service withdrawal described in Article VI of the Plan from such member’s
accounts, including any balances attributable to transferred MG Savings Plan
balances, subject to all applicable Plan provisions.

 

A-8         Administrative
Committee’s Actions.  The
Administrative Committee shall take such actions as it deems necessary or
desirable to accomplish the plan merger as described in this Supplement A.

 

A-9         Transfer
of Records.  On or as soon as
practicable after the merger date, the administrator of the MG Savings Plan
shall transfer to the Administrative Committee all the administrative records
maintained with respect to Supplement A members.

 

A-10       Use
of Terms.  Terms used in this
Supplement A shall, unless defined in this Supplement A or otherwise noted,
have the meanings give those terms elsewhere in the Plan.

 

65

 

SUPPLEMENT
B

 

Merger of the Chemetall Foote Corporation portion

of the

MG North America Holdings Inc. Savings Plan

 

B-1          Introduction.  Effective July 31, 2004 (the “merger
date”), plan assets and liabilities related to the Chemetall Foote Corporation
(“Chemetall”) participants and beneficiaries under the MG North America
Holdings Inc. Savings Plan (the “MG Savings Plan”) shall be spun-off and merged
into the Plan.  The merger of the
Chemetall portion of the MG Savings Plan into the Plan (and any resulting
transfer of assets) shall comply with Sections 401(a)(12), 411(d)(6), and 414(l) of
the Code and the regulations thereunder. 
The purpose of this Supplement B is to provide for the plan spin-off and
merger.  Each participant and beneficiary
in the Chemetall portion of the MG Savings Plan shall be referred to herein as
a “Supplement B member.”

 

B-2          Transfer
of Account Balances.  As of the
merger date, liabilities equal to the aggregate account balances, as adjusted
through the merger date in accordance with the provisions of the MG Savings
Plan, of each Supplement B member shall be transferred to the Plan and shall be
credited to corresponding accounts established for each such Supplement B
member under the Plan.  Thereafter, such
balances shall be subject to the terms and conditions of the Plan, except as
otherwise provided herein in this Supplement B. 
The accounts of the Supplement B members under this Plan shall be
adjusted for earnings, gains, and losses after such accounts have been invested
in the investment funds as provided in Paragraph B-3 below.

 

B-3          Transfer
of Assets.  On, or as soon as
practicable following, the merger date, the assets of the trust that serves as
the funding vehicle for the Chemetall portion of the MG Savings Plan shall be
transferred to the Profit-Sharing/401(k) Plan for Employee of Rockwood
Specialties Inc. Trust.  Such transfers
shall be in cash, except that promissory notes related to Supplement B members’
loans from the MG Savings Plan shall be transferred in-kind.  Such transferred assets (other than
promissory notes) shall be invested in the investment funds designated by the
Administrative Committee on or as soon as practicable following the transfer of
assets to the Profit-Sharing/401(k) Plan for Employees of Rockwood
Specialties Inc. Trust.

 

B-4.         Participation
in the Plan.  Each Supplement B
member who is employed by an Employer on the merger date shall become a member
of the Plan on the merger date, subject to the conditions and limitations of
the Plan, except as otherwise provided herein in this Supplement B.  Each other Supplement B member shall, on and
after the merger date, be treated as an inactive member or a beneficiary
(whichever is applicable) of the Plan, subject to the conditions and
limitations of the Plan, except as otherwise provided herein in this Supplement
B.

 

B-5          Contributions
under the Plan.  Each Supplement B
member who becomes a participant under the Plan shall be eligible to make
Elective 401(k) Deferrals as provided under Section 3.1.2 of the
Plan.  Each Supplement C member who
becomes a participant under the Plan shall be eligible for an Employer Matching
Contribution after three months of such participation in the Plan, in an amount
equal to the following:

 

66

 

100% of each
Supplement B member’s Elective 401(k) Deferrals that do not exceed 3% of
the Supplement B member’s Compensation each Plan Year, for a maximum Employer
Matching Contribution of 3% of the Supplement C member’s Compensation for that
Plan Year.

 

Effective January 1, 2007, Supplement B members shall be eligible
for Profit-Sharing Contributions as provided under Section 3.1.4 of the
Plan.

 

B-6          Loans.  Any outstanding loan on the merger date that
had been made to a Supplement B member under the MG Savings Plan shall be
maintained on after that date under the Plan until all amounts of principal and
interest thereon have been repaid.  The
terms and conditions relating to such outstanding loans of Supplement B members
will continue as in existence prior to merger date.

 

B-7          In-Service
Withdrawals.  On and after the merger
date, a Supplement B member (other than a beneficiary) may obtain any
in-service withdrawal described in Article VI of the Plan from such member’s
accounts, including any balances attributable to transferred MG Savings Plan
balances, subject to all applicable Plan provisions.

 

B-8          Administrative
Committee’s Actions.  The
Administrative Committee shall take such actions as it deems necessary or
desirable to accomplish the plan merger as described in this Supplement B.

 

B-9          Transfer
of Records.  On or as soon as
practicable after the merger date, the administrator of the MG Savings Plan
shall transfer to the Administrative Committee all the administrative records
maintained with respect to Supplement B members.

 

B-10        Use
of Terms.  Terms used in this
Supplement B shall, unless defined in this Supplement B or otherwise noted,
have the meanings give those terms elsewhere in the Plan.

 

67

 

SUPPLEMENT
C

 

Merger of the Oakite Products, Inc. portion

of the

MG North America Holdings Inc. Savings Plan

 

C-1          Introduction.  Effective as of July 31, 2004 or as soon
as administratively practicable thereafter (the “merger date”), the plan assets
and liabilities attributable to the Oakite Products, Inc. (“Oakite”)
participants and beneficiaries under the MG North America Holdings Inc. Savings
Plan (the “MG Savings Plan”) shall be spun-off and immediately merged with and
into the Plan; provided, however, the assets and liabilities
which are attributable to the participants who are covered by the collective
bargaining agreement between Oakite and USWA Local Union 2659, as of July 31,
2004, shall remain in the MG Savings Plan and not be subject to the spin-off
and merger transaction with the Plan. 
The merger of the Oakite portion of the MG Savings Plan into the Plan
(and any resulting transfer of assets) shall comply with all the applicable
legal requirements, including Sections 401(a)(12), 411(d)(6), and 414(l) of
the Code and the regulations thereunder. 
The purpose of this Supplement C is to provide for the plan spin-off and
merger.  Each participant and beneficiary
in the Oakite portion of the MG Savings Plan whose account is subject to the
spin-off and merger transaction with the Plan shall be referred to herein as a “Supplement
C member.”

 

C-2          Transfer
of Account Balances.  As of the
merger date, liabilities equal to the aggregate account balances, as adjusted
through the merger date in accordance with the provisions of the MG Savings
Plan, of each Supplement C member shall be transferred to the Plan and shall be
credited to corresponding accounts established for each such Supplement C
member under the Plan.  Thereafter, such
balances shall be subject to the terms and conditions of the Plan, except as
otherwise provided herein in this Supplement C. 
The accounts of the Supplement C members under this Plan shall be
adjusted for earnings, gains, and losses after such accounts have been invested
in the investment funds as provided in Paragraph C-3 below.

 

C-3          Transfer
of Assets.  On, or as soon as
administratively practicable following, the merger date, the assets of the
trust that serves as the funding vehicle for the Oakite portion of the MG
Savings Plan shall be transferred to the Profit-Sharing/401(k) Plan for
Employees of Rockwood Specialties Inc. Trust. 
Such transfers shall be in cash, except that promissory notes related to
Supplement C members’ loans from the MG Savings Plan shall be transferred
in-kind.  Such transferred assets (other
than promissory notes) shall be invested in the investment funds designated by
the Administrative Committee on or as soon as practicable following the
transfer of assets to the Profit-Sharing/401(k) Plan for Employees of
Rockwood Specialties Inc. Trust.

 

C-4          Participation
in the Plan.  Each Supplement C
member who is employed by the Employer on July 31, 2004 (or immediately
thereafter) shall become a member of the Plan as of such date, subject to the
conditions and limitations of the Plan, except as otherwise provided herein in
this Supplement C.  Each other Supplement
C member shall, on and after the merger date, be treated as an inactive member
or a beneficiary (whichever is applicable) of the Plan, 

 

68

 

subject
to the conditions and limitations of the Plan, except as otherwise provided
herein in this Supplement C.

 

C-5          Contributions
under the Plan.  Each Supplement C
member who becomes a participant under the Plan shall be eligible to make
Elective 401(k) Deferrals as provided under Section 3.1.2 of the
Plan.  Each Supplement C member who
becomes a participant under the Plan shall be eligible for an Employer Matching
Contribution after three months of such participation in the Plan, in amount
equal to the following:

 

100% of each Supplement C
member’s Elective 401(k) Deferrals that do not exceed 3% of the Supplement
C member’s Compensation each Plan Year, for a maximum Employer Matching
Contribution of 3% of the Supplement C member’s Compensation for that Year.

 

Effective
January 1, 2005, Supplement C members shall be eligible for Profit-Sharing
Contributions as provided under Section 3.1.4 of the Plan.

 

C-6          Loans.  Any outstanding loan on the merger date that
had been made to a Supplement C member under the MG Savings Plan shall be
maintained on after that date under the Plan until all amounts of principal and
interest thereon have been repaid.  The
terms and conditions relating to such outstanding loans of Supplement C members
will continue as in existence prior to merger date.

 

C-7          In-Service
Withdrawals.  On and after the merger
date, a Supplement C member (other than a beneficiary) may obtain any in-service
withdrawal described in Article VI of the Plan from such member’s
accounts, including any balances attributable to transferred MG Savings Plan
balances, subject to all applicable Plan provisions.

 

C-8          Administrative
Committee’s Actions.  The Administrative
Committee shall take such actions as it deems necessary or desirable to
accomplish the plan merger as described in this Supplement C.

 

C-9          Transfer
of Records.  On or as soon as
practicable after the merger date, the administrator of the MG Savings Plan
shall transfer to the Administrative Committee all the administrative records
maintained with respect to Supplement C members.

 

C-10        Use
of Terms.  Terms used in this
Supplement C shall, unless defined in this Supplement C or otherwise noted,
have the meanings give those terms elsewhere in the Plan.

 

69

 

SUPPLEMENT
D

 

Merger of the Sachtleben Corporation portion

of the

MG North America Holdings Inc. Saving Plan

 

D-1          Introduction.  Effective July 31, 2004 (the “merger
date”), plan assets and liabilities related to Sachtleben Corporation (“Sachtleben”)
participants and beneficiaries under the MG North America Holdings Inc. Savings
Plan (the “MG Savings Plan”) shall be spun-off and merged into the Plan.  The merger of the Sachtleben portion of the
MG Savings Plan into the Plan (and any resulting transfer of assets) shall
comply with Sections 401(a)(12), 411(d)(6), and 414(l) of the Code and the
regulations thereunder.  The purpose of
this Supplement D is to provide for the plan spin-off and merger.  Each participant and beneficiary in the
Sachtleben portion of the MG Savings Plan shall be referred to herein as a “Supplement
D member.”

 

D-2          Transfer
of Account Balances.  As of the
merger date, liabilities equal to the aggregate account balances, as adjusted
through the merger date in accordance with the provisions of the MG Savings
Plan, of each Supplement D member shall be transferred to the Plan and shall be
credited to corresponding accounts established for each such Supplement D
member under the Plan.  Thereafter, such
balances shall be subject to the terms and conditions of the Plan, except as
otherwise provided herein in this Supplement D. 
The accounts of the Supplement D members under this Plan shall be adjusted
for earnings, gains, and losses after such accounts have been invested in the
investment funds as provided in Paragraph D-3 below.

 

D-3          Transfer
of Assets.  On, or as soon as
practicable following, the merger date, the assets of the trust that serves as
the funding vehicle for the Sachtleben portion of the MG Savings Plan shall be
transferred to the Profit-Sharing/401(k) Plan for Employees of Rockwood
Specialties Inc. Trust.  Such transfers
shall be in cash, except that promissory notes related to Supplement D members’
loans from the MG Savings Plan shall be transferred in-kind.  Such transferred assets (other than
promissory notes) shall be invested in the investment funds designated by the
Administrative Committee on or as soon as practicable following the transfer of
assets to the Profit-Sharing/401(k) Plan for Employees of Rockwood
Specialties Inc. Trust.

 

D-4          Participation
in the Plan.  Each Supplement D
member who is employed by an Employer on the merger date shall become a member
of the Plan on the merger date, subject to the conditions and limitations of
the Plan, except as otherwise provided herein in this Supplement D.  Each other Supplement D member shall, on and
after the merger date, be treated as an inactive member or a beneficiary (whichever
is applicable) of the Plan, subject to the conditions and limitations of the
Plan, except as otherwise provided herein in this Supplement D.

 

D-5          Contributions
under the Plan.  Each Supplement D
member who becomes a participant under the Plan shall be eligible to make
Elective 401(k) Deferrals as provided under Section 3.1.2 of the
Plan.  Each Supplement D member who
becomes a participant under the Plan shall be eligible for an Employer Matching
Contribution after three months of such participation in the Plan, in an amount
equal to the following:

 

70

 

100 % of each Supplement
D member’s Elective 401(k) Deferrals that do not exceed 3% of the
Supplement D member’s Compensation each Plan Year, for a maximum Employer
Matching Contribution of 3% of the Supplement D member’s Compensation for that
Plan Year.

 

In addition, each Supplement D member shall be
eligible for a Profit-Sharing Contribution under the Plan as provided under Section 3.1.4
of the Plan.

 

D-6          Loans.  Any outstanding loan on the merger date that
had been made to a Supplement D member under the MG Savings Plan shall be
maintained on after that date under the Plan until all amounts of principal and
interest thereon have been repaid.  The
terms and conditions relating to such outstanding loans of Supplement D members
will continue as in existence prior to merger date.

 

D-7          In-Service
Withdrawals.  On and after the merger
date, a Supplement D member (other than a beneficiary) may obtain any in-service
withdrawal described in Article VI of the Plan from such member’s
accounts, including any balances attributable to transferred MG Savings Plan
balances, subject to all applicable Plan provisions.

 

D-8          Administrative
Committee’s Actions.  The
Administrative Committee shall take such actions as it deems necessary or
desirable to accomplish the plan merger as described in this Supplement D.

 

D-9          Transfer
of Records.  On or as soon as
practicable after the merger date, the administrator of the MG Savings Plan
shall transfer to the Administrative Committee all the administrative records
maintained with respect to Supplement D members.

 

D-10        Use
of Terms.  Terms used in this
Supplement D shall, unless defined in this Supplement D or otherwise noted,
have the meanings give those terms elsewhere in the Plan.

 

71

 

SUPPLEMENT
E

 

MERGER OF THE GLOBAL COLOR PIGMENTS BUSINESS

EMPLOYEES’ ACCOUNTS IN THE

 

ELEMENTIS WORLDWIDE RETIREMENT SAVINGS PLAN

 

E-1          Introduction.  Effective as of December 10, 2007 (the “Merger
Date”), the plan assets and liabilities related to employees of Elementis
Worldwide Inc. and/or its affiliates who are employed by the Company or a
Participating Affiliate in connection with the closing of the transactions
under the Asset Purchase Agreement between Rockwood Specialties Group, Inc.
and Elementis Holdings Ltd. Dated May 10, 2007 shall be spun-off from the
Elementis Worldwide Retirement Savings Plan (subject to the approval of
Elementis Worldwide Inc.) and merged with and into the Plan (the “Global
Pigments Portion”).  The merger of
the Global Pigments Portion of the Elementis Worldwide Retirement Savings Plan
(the “Elementis Plan”) into the Plan (and any resulting transfer of
assets) shall comply with the applicable requirements under Sections
401(a)(12), 411(d)(6), and 414(l) of the Code and the regulations
thereunder.  The Elementis Plan was known
as the “Elementis America Retirement Savings Plan” prior to February 8,
2006. The purpose of this Supplement E is to provide for the plan spin-off and
merger of the Global Pigments Portion. 
Each participant and beneficiary in the Global Pigments Portion of the
Elementis Plan shall be referred to herein as a “Supplement E Member.”

 

E-2          Transfer of Account Balances.  As of the Merger Date, assets and liabilities
equal to the aggregate account balances, as adjusted through the Merger Date in
accordance with the provisions of the Elementis Plan, of each Supplement E
Member shall be transferred to the Plan and shall be credited to corresponding
accounts established for each such Supplement E Member under the Plan. The
transfer to the Plan shall include any after-tax accounts and outstanding plan
loans (and the promissory notes connected to such plan loans).  Thereafter, such balances and loans shall be
subject to the terms and conditions of the Plan, except as otherwise provided
herein in this Supplement E.  The
accounts of the Supplement E Members under the Plan shall be adjusted for
earnings, gains, and losses after such accounts have been invested in the
Investment Funds as provided in Section E-3 below.

 

E-3          Transfer of Assets. 
On, or as soon as practicable following, the Merger Date, the assets of
the trust that serves as the funding vehicle for the Global Pigments Portion of
the Elementis Plan shall be transferred to the Trust.  Such transfers shall be in cash, except that

 

(a)                                  any promissory
notes related to Supplement E Members’ loans from the Elementis Plan, and

 

(b)                                 any shares of
Pfizer Inc. stock related to Supplement E Members’ investment in the Pfizer
Stock Fund under the Elementis Plan,

 

shall be transferred in-kind.  Such transferred assets (other than
promissory notes and shares of Pfizer Inc. stock) shall be invested in the
Investment Funds designated by the Administrative Committee on or as soon as
practicable following the transfer of assets to the Trust.

 

72

 

E-4          Participation in the Plan. Each
Supplement E Member who is employed by an Employer on the Merger Date shall
become a member of the Plan on the Merger Date, subject to the conditions and
limitations of the Plan.

 

E-5          After-Tax Contribution Account.  No after-tax contributions shall be permitted
under the Plan; provided, however, any after-tax contribution accounts
transferred to the Plan from the Elementis Plan as of the Merger Date shall be
maintained as “frozen” after-tax accounts (“After-Tax Contribution
Subaccount”) to the extent necessary to account for such assets.

 

E-6          Withdrawals from After-Tax
Contribution Subaccount.  A
Supplement E Member, while still employed, may request a withdrawal of all or a
portion of his After-Tax Contribution Subaccount at any time.

 

E-7          Withdrawals from Rollover
Subaccount.  A Supplement E Member,
while still employed, may request a withdrawal of all or a portion of his
Rollover Contributions Subaccount attributable to the amounts transferred to
the Plan from the Elementis Plan as of the Merger Date.

 

E-8          Withdrawals of Employer
Contributions from Chemicals Subaccount. 
Any amounts transferred to the Plan from the Elementis Plan as of the
Merger Date which are attributable to amounts previously transferred to the
Elementis Plan from the Harcros Chemicals Inc. Employee Savings Plan (as in
effect through December 31, 1992) shall be maintained in the “Chemicals
Subaccount.”  A Supplement E Member,
while still employed, may request a withdrawal of all or a portion of his
Chemicals Subaccount attributable to vested employer contributions and earnings
thereon.

 

E-9          Withdrawals of Employer
Contributions from NL Subaccount. 
Any amounts transferred to the Plan from the Elementis Plan as of the
Merger Date which are attributable to amounts previously transferred to the
Elementis Plan from the NL Industries, Inc. Retirement Savings Plan (as in
effect through January 30, 1998) shall be maintained in the “NL
Subaccount.”  A Supplement E Member,
while still employed, may request a withdrawal of all or a portion of his NL
Subaccount attributable to vested employer contributions and earnings thereon.

 

E-10        Pfizer Stock Fund

 

E-10.1             Pfizer Stock
Fund. Any shares of Pfizer Inc. stock transferred to the Plan from the
Elementis Plan as of the Merger Date shall be maintained as the “Pfizer
Stock Fund.”

 

E-10.2             Investment
Elections. Schedule E Members (and any other Participant) shall not be
permitted to elect to have any future contributions, or the proceeds from any
other Investment Fund, invested in the Pfizer Stock Fund. Also, Schedule E
Members may not elect to have any amount that is less than the full value of
their Pfizer Stock Fund investment transferred from the Pfizer Stock Fund to
any other Investment Fund. Finally, any dividends paid with respect to the
Pfizer Stock Fund shall be reinvested in other Investment Funds in accordance
with the Schedule E Members’ most recent instructions directing the investment
of new contributions to the Plan.

 

73

 

E-10.3             Tender
Offers.  To the extent that shares of
Pfizer Inc. stock under the Pfizer Stock Fund are allocated to a Schedule E
Member’s Account, the Trustee shall vote or tender such shares solely in
accordance with written instructions furnished to it by each Schedule E Member
(or Beneficiary of a deceased Schedule E Member); provided that the Trustee
shall be responsible for delivery to each Schedule E Member (or Beneficiary of
a deceased Schedule E Member) of all notices, proxies and proxy soliciting
materials related to any such shares. 
Any such instructions shall remain in the strict confidence of the
Trustee.  Any and all fractional shares
of Pfizer Inc. stock allocated to a Schedule E Member’s Account shall be
combined with other fractional shares of other Schedule E Members and shall be
voted, to the extent possible, to reflect the direction of Schedule E Members
holding such fractional shares.  Shares,
including fractional shares, for which no voting or tender instructions are
received shall not be voted by the Trustee.

 

E-10.4             In-Kind
Distribution Right. If, as of the date a Schedule E Member terminates his
employment, part of his Account is invested in the Pfizer Stock Fund, and if
the Schedule E Member’s benefit is to be paid in the form of a lump sum, then
the Schedule E Member or Beneficiary to whom such payment is made shall have
that portion of the Accounts that is so invested paid in common stock or shares
held in the Pfizer Stock Fund unless the Schedule E Member or Beneficiary
elects to have such portion paid in cash; provided, however, that cash will be
paid in lieu of any fractional shares allocated to the Schedule E Member’s
Account.

 

E-11        Wayne Profit
Sharing Subaccount

 

E-11.1             Wayne Profit
Sharing Subaccount. Any assets transferred to the Plan from the Elementis
Plan as of the Merger Date which are attributable to amounts previously
transferred to the Elementis Plan from the New Wayne Chemical Corporation
Profit Sharing Plan (as in effect through December 31, 1992) shall be
maintained in the “Wayne Profit Sharing Subaccount.”

 

E-11.2             Investment
Elections.  Schedule E Members (and
any other Participant) shall not be permitted to elect to have any future
contributions, or the proceeds from any other Investment Fund, invested in any
insured contracts held in the Wayne Profit Sharing Subaccount. Also, Schedule E
Members shall not be permitted to transfer to an Investment Fund any portion of
his Wayne Profit Sharing Subaccount that is held under an insured contract. Any
life insurance policies held in the Wayne Profit Sharing Subaccount shall be
continued and will be subject to the provisions of the Plan.  No new insurance policies may be purchased
under the Plan.

 

E-12        Vesting. Schedule E Members shall
be fully vested in the portion of this Account consisting of the Global
Pigments Portion upon the earliest to occur of (a) his attainment of age
55; (b) his Disability while actively employed; (c) his death while
actively employed; or (d) his Normal Retirement Date.

 

E-13        Loans.  Any outstanding loan on the Merger Date that
had been made to a Supplement E Member under the Elementis Plan shall be
maintained on after that date under the Plan until all amounts of principal and
interest thereon have been repaid.  The
terms and conditions relating to such outstanding loans of Supplement E Members
will continue as in 

 

74

 

existence
immediately prior to Merger Date. A Schedule E Member may not apply to the
Administrative Committee for a loan from his NL Subaccount (as defined in Section E-9).

 

E-14        Forms of Benefit Payment for Wayne
Pension Subaccount, H&C Subaccount, Northland Subaccount and Chemicals
Account

 

E-14.1     Definitions

 

(a)           H&C
Subaccount. Any assets transferred to the Plan from the Elementis Plan as
of the Merger Date which are attributable to amounts previously transferred to
the Elementis Plan from the Harrisons & Crosfield (America) Inc. Money
Purchase Pension Plan and Trust (as in effect through December 31, 1992)
shall be maintained in the “H&C Subaccount.”

 

(b)           Northland
Subaccount. Any assets transferred to the Plan from the Elementis Plan as
of the Merger Date which are attributable to amounts previously transferred to
the Elementis Plan from the Northland Chemical, Inc. Pension Plan and
Trust (as in effect through December 31, 1992) shall be maintained in the “Northland
Subaccount.”

 

(c)           Wayne Pension
Subaccount.  Any assets transferred
to the Plan from the Elementis Plan as of the Merger Date which are
attributable to amounts previously transferred to the Elementis Plan from the
Wayne Chemical Pension Plan and Trust (as in effect through December 31,
1992) shall be maintained in the “Wayne Pension Subaccount.”

 

E-14.2             Automatic Form of
Payment

 

(a)           Married Schedule
E Members.  If the Schedule E Member
is married on his benefit payment date, the Schedule E Member’s Wayne Pension
Account, H&C Account and Northland Account shall be paid in the form of an
annuity for the joint lives of the Schedule E Member and his spouse with a
periodic benefit payable after the death of the Schedule E Member to the spouse
equal to 50% of the periodic benefit payable to the Schedule E during his
lifetime, if such spouse survives the Schedule E, unless such Schedule E Member
elects another form of payment in the manner described below.  If the Schedule E Member makes no election,
the survivor percentage shall be 50%.

 

(b)           Unmarried
Schedule E Members.  If the Schedule
E Member is not married on his benefit payment date, the Schedule E Member’s
Wayne Pension Account, H&C Account and Northland Account shall be paid in
the form of an annuity for the life of the Schedule E Member only, unless he
elects another form of payment in the manner described below.

 

E-14.3             Optional Form of
Payment.  A Schedule E Member who is
not subject to the provisions above may elect, in writing, to have his Wayne
Pension Account, H&C Account and Northland Account paid to him in a single
sum.

 

75

 

E-14.4             Spousal
Consent Requirement

 

(a)           Consent
Requirement. A Schedule E Member described in this subparagraph E-14.4(a) who
does not establish to the satisfaction of the Administrative Committee that he
has no spouse on his benefit payment date may elect to receive a form of
benefit other than the automatic form applicable to the Schedule E Member only
if his spouse (or the spouse’s legal guardian if the spouse is legally
incompetent) consents, in the manner described in subparagraph E-14.4(b) not
to receive the automatic form of payment described in subparagraph E-14.2(a) and
to the specific alternative form elected by the Schedule E Member, or to the
Schedule E Member’s right to choose any alternative form without any further consent
by the spouse, or the spouse’s consent is not required for the reason specified
in subparagraph 14.4(c).

 

(b)           Form and
Content of Spouse’s Consent. A spouse may consent to the designation of one
or more Beneficiaries other than such spouse provided that such consent shall
be in writing, must consent to the specific alternate beneficiary or
beneficiaries designated (or permit beneficiary designations by the Schedule E
Member without the spouse’s further consent), must acknowledge the effect of
such consent, and must be witnessed by a Plan representative or notary
public.  Such spouse’s consent shall be
irrevocable, unless expressly made revocable. 
The consent of a spouse in accordance with this subsection E-14.4(b) shall
not be effective with respect to any subsequent spouse of the Schedule E
Member.

 

(c)           Spouse as
Beneficiary. A Schedule E Member may designate a Beneficiary other than his
spouse pursuant to Section 8.2 of the Plan if

 

the
Schedule E Member has no spouse, or the Administrative Committee determines
that the spouse cannot be located or such other circumstances exist under which
spousal consent is not required, as prescribed by Treasury regulations.

 

E-14.5             Revocation
of Election.  A Schedule E Member may
revoke an election to waive the automatic form of payment described in
subparagraph E-14.2(a).  Such revocation
may be made at any time during the election period in which such election can
be made.  Such revocation shall not void
any prospectively effective consent given by his spouse in connection with the
revoked election.

 

E-14.6             Explanations
to Schedule E Members.  Each Schedule
E Member described in this section E-14 shall receive, no less than 30 days and
no more than 180 days before the date his benefits are to begin, a written explanation
of:

 

(a)           the
terms and conditions of the automatic form of payment and each alternative form
of payment available to the Schedule E Member, including information explaining
the relative values of each form of payment;

 

(b)           the
Schedule E Member’s right to waive the automatic form of payment and the effect
of such waiver;

 

76

 

(c)           the
rights of the Schedule E Member’s spouse with respect to such waiver; and

 

(d)           the
right to revoke an election to receive an alternative form of payment and the
effect of such revocation.

 

Notwithstanding
the foregoing, the Schedule E Member’s benefit payment date may be less than 30
days after the explanation described in this Section is provided if (A) the
Schedule E Member is given notice of his right to a 30-day period in which to
consider whether to (i) waive the normal form of benefit and elect an
optional form and (ii) to the extent applicable, consent to the
distribution; (B) the Schedule E Member affirmatively elects a
distribution and a form of benefit and the spouse, if necessary, consents to
the form of benefit elected; (C) the Schedule E Member is permitted to
revoke his affirmative election at any time prior to his benefit payment date
or, if later, the expiration of a 7-day period beginning on the day after the
explanation described in this section is provided to the Schedule E Member; (D) the
benefit payment date is after the date the explanation described in this
section is provided to the Schedule E Member; and (E) distribution to the
Schedule E Member does not commence before the expiration of the 7-day period
described in clause (C) above.

 

E-14.7             Death
Benefits from the Wayne Pension Subaccount, H&C Subaccount, Northland
Subaccount and Chemicals Subaccount

 

(a)           If
the Schedule E Member dies after his benefit payment date, death benefits, if
any, from the Schedule E Member’s Wayne Pension Subaccount, H&C Subaccount,
Northland Subaccount and Chemicals Subaccount shall be determined by the form
of payment in effect for the Schedule E Member at the time of his death.

 

(b)           If
the Schedule E Member dies before his benefit payment date and his spouse is
the Beneficiary with respect to all or a portion of his Wayne Pension
Subaccount, H&C Subaccount and Northland Subaccount, death benefits payable
from his Wayne Pension Subaccount, H&C Subaccount and Northland Subaccount
to his surviving spouse shall be paid in the form of life annuity for the
spouse, unless the spouse elects, in writing in the manner prescribed by the
Administrative Committee, to receive the Wayne Pension Subaccount in the form
of a single sum.

 

(c)           If
the Schedule E Member dies before his benefit payment date and has designated a
Beneficiary other than his spouse for all or a portion of his Chemicals
Subaccount, death benefits payable from his Chemicals Subaccount to such
Beneficiary shall be paid, at the election of the Schedule E Member or the
Beneficiary, in the form of a single sum or quarterly installments over five (5) years.

 

E-14.8             Beneficiary
Designation. An election to designate one or more Beneficiaries other than
the Schedule E Member’s spouse for the Schedule E Member’s Wayne Pension
Subaccount, H&C Subaccount and Northland Subaccount shall become invalid on
January 1 of the calendar year in which the Schedule E Member attains age
35.  The Schedule E Member’s spouse
shall, on such date, become the Beneficiary with respect to the Schedule E
Member’s 

 

77

 

Wayne
Pension Subaccount, H&C Subaccount and Northland Subaccount, unless the
Schedule E Member subsequently designates, in accordance with the provisions of
this Section and Plan, one or more Beneficiaries with respect to his Wayne
Pension Subaccount, H&C Subaccount and Northland Subaccount.

 

E-14.9             Qualified
Domestic Relations Orders. The benefit payable to an alternate payee shall
be paid in the form of a single sum in cash, except that the alternate payee
may elect to receive the portion of the benefit, if any, attributable to a
Schedule E Member’s Wayne Pension Subaccount, H&C Subaccount, Northland
Subaccount and Chemicals Subaccount distributed in any form provided under Section E-14
with respect to such account to the extent permitted by section 401(a)(9) of
the Code and regulations issued thereunder.

 

E-15                Distribution
Restrictions on Wayne Pension Subaccount. A Schedule E Member shall not be
permitted to take an age 59-1/2 or hardship distribution from his Wayne Pension
Subaccount.

 

E-16                Elimination
of Forms of Benefit Payments. Any and all forms of distribution applicable
to the Global Pigments Portion are eliminated as of the Merger Date, except to
the extent the form of benefit distribution is provided in this Schedule E
and/or the Plan. This provision shall be interpreted in a manner consistent
with the requirements of Code Section 411(d)(6)(E).

 

E-17                Administrative
Committee Actions. The Administrative Committee shall take such actions as
it deems necessary or desirable to accomplish the plan merger as described in
this Supplement E.

 

E-18                Transfer of
Records.  On or as soon as
practicable after the Merger Date, the administrator of the Elementis Plan
shall transfer to the Administrative Committee all the administrative records
maintained with respect to Supplement E Members.

 

E-19                Use of
Terms.  Terms used in this Supplement
E shall, unless defined in this Supplement E or otherwise noted, have the
meanings give those terms elsewhere in the Plan.

 

78Exhibit 10.45

 

THE ROCKWOOD SPECIALTIES INC.

 

MONEY PURCHASE PENSION PLAN

 

As Amended and Restated Effective as of January 1,
2008

 

(Except as otherwise Provided)

 

1

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  INTRODUCTION

  	
  1

  
	
   

  	
   

  
	
  ARTICLE I DEFINITIONS

  	
  2

  
	
  1.1

  	
  Account

  	
  2

  
	
  1.2

  	
  Account Balance

  	
  2

  
	
  1.3

  	
  Administrative Committee

  	
  2

  
	
  1.4

  	
  Affiliate

  	
  2

  
	
  1.5

  	
  Annuity Contract

  	
  2

  
	
  1.6

  	
  Beneficiary

  	
  2

  
	
  1.7

  	
  Benefit Commencement Date

  	
  2

  
	
  1.8

  	
  Break-in-Service

  	
  2

  
	
  1.9

  	
  Code

  	
  3

  
	
  1.10

  	
  Company

  	
  3

  
	
  1.11

  	
  Compensation

  	
  3

  
	
  1.12

  	
  Defined Benefit Plan

  	
  5

  
	
  1.13

  	
  Defined Contribution Plan

  	
  5

  
	
  1.14

  	
  Disability

  	
  5

  
	
  1.15

  	
  Effective Date

  	
  5

  
	
  1.16

  	
  Eligible Employee

  	
  5

  
	
  1.17

  	
  Employee

  	
  6

  
	
  1.18

  	
  Employer

  	
  6

  
	
  1.19

  	
  Employer Contributions

  	
  6

  
	
  1.20

  	
  Employment

  	
  6

  
	
  1.21

  	
  Employment Commencement Date

  	
  6

  
	
  1.22

  	
  Entry Date

  	
  6

  
	
  1.23

  	
  ERISA

  	
  6

  
	
  1.24

  	
  Highly Compensated Employee

  	
  6

  
	
  1.25

  	
  Hour of Service

  	
  7

  
	
  1.26

  	
  Investment Fund

  	
  8

  
	
  1.27

  	
  Investment Manager

  	
  8

  
	
  1.28

  	
  Leased Employee

  	
  8

  
	
  1.29

  	
  Leave of Absence

  	
  8

  
	
  1.30

  	
  Normal Retirement Age

  	
  8

  
	
  1.31

  	
  Participant

  	
  8

  
	
  1.32

  	
  Participating Affiliate

  	
  8

  
	
  1.33

  	
  Period of Service

  	
  8

  
	
  1.34

  	
  Period of Severance

  	
  8

  
	
  1.35

  	
  Plan

  	
  8

  
	
  1.36

  	
  Plan Year

  	
  8

  
	
  1.37

  	
  Qualified Joint and Survivor Annuity

  	
  9

  
	
  1.38

  	
  Qualified Pre-Retirement Survivor Annuity

  	
  9

  
	
  1.39

  	
  Reduction in Force

  	
  9

  
	
  1.40

  	
  Severance from Service Date

  	
  9

  

 

i

 

	
  1.41

  	
  Spousal Consent

  	
  9

  
	
  1.42

  	
  Spouse

  	
  9

  
	
  1.43

  	
  Surviving Spouse

  	
  9

  
	
  1.44

  	
  Termination of Employment

  	
  9

  
	
  1.45

  	
  Trust

  	
  10

  
	
  1.46

  	
  Trust Agreement

  	
  10

  
	
  1.47

  	
  Trustee

  	
  10

  
	
  1.48

  	
  Valuation Date

  	
  10

  
	
  1.49

  	
  Vesting Service

  	
  10

  
	
  1.50

  	
  Year of Service

  	
  10

  
	
   

  	
   

  	
   

  
	
  ARTICLE II

  	
  11

  
	
  2.1

  	
  Admission as a Participant

  	
  11

  
	
  2.2

  	
  Rehired Employees

  	
  11

  
	
  2.3

  	
  Termination of Participation

  	
  12

  
	
   

  	
   

  	
   

  
	
  ARTICLE III CONTRIBUTIONS

  	
  13

  
	
  3.1

  	
  Employer Contributions

  	
  13

  
	
  3.2

  	
  Participant Contributions

  	
  13

  
	
  3.3

  	
  Timing of Contributions

  	
  13

  
	
  3.4

  	
  Forfeitures

  	
  14

  
	
  3.5

  	
  Limitation on Allocations

  	
  14

  
	
  3.6

  	
  [Reserved]

  	
  16

  
	
  3.7

  	
  Return of Employer Contributions Under Special
  Circumstances

  	
  16

  
	
  3.8

  	
  Contributions Conditioned on Deductibility

  	
  17

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV ACCOUNTS, INVESTMENTS AND ALLOCATIONS

  	
  18

  
	
  4.1

  	
  Establishment of Participant Accounts

  	
  18

  
	
  4.2

  	
  Investment of Funds

  	
  18

  
	
  4.3

  	
  Allocation of Earnings to Accounts

  	
  18

  
	
  4.4

  	
  Allocation Report

  	
  18

  
	
  4.5

  	
  Allocation Corrections

  	
  18

  
	
   

  	
   

  	
   

  
	
  ARTICLE V VESTING AND TOP-HEAVY PROVISIONS

  	
  19

  
	
  5.1

  	
  Determination of Vesting

  	
  19

  
	
  5.2

  	
  Rules for Crediting Vesting Service

  	
  19

  
	
  5.3

  	
  Rules for Crediting; Service Upon Termination
  of Employment

  	
  20

  
	
  5.4

  	
  Top-Heavy Provisions

  	
  21

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI AMOUNT AND PAYMENT OF BENEFITS TO PARTICIPANTS,

  	
  25

  
	
  6.1

  	
  Termination of Employment

  	
  25

  
	
  6.2

  	
  Age 70-1/2 Distributions

  	
  26

  
	
  6.3

  	
  No In-Service Withdrawals or Loans

  	
  26

  
	
  6.4

  	
  Minimum Required Distributions

  	
  26

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII FORMS OF PAYMENT OF ACCOUNTS

  	
  31

  
	
  7.1

  	
  Methods of Distribution

  	
  31

  

 

ii

 

	
  7.2

  	
  Election of Optional Forms

  	
  31

  
	
  7.3

  	
  Direct Rollovers

  	
  33

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII DEATH BENEFITS

  	
  34

  
	
  8.1

  	
  Payment of Account Balances

  	
  34

  
	
  8.2

  	
  Beneficiary

  	
  34

  
	
  8.3

  	
  Required Commencement

  	
  35

  
	
   

  	
   

  	
   

  
	
  ARTICLE IX FIDUCIARIES

  	
  36

  
	
  9.1

  	
  Named Fiduciaries

  	
  36

  
	
  9.2

  	
  Employment of Advisers

  	
  36

  
	
  9.3

  	
  Multiple Fiduciary Capacities

  	
  36

  
	
  9.4

  	
  Payment of Expenses

  	
  36

  
	
  9.5

  	
  Indemnification

  	
  36

  
	
   

  	
   

  	
   

  
	
  ARTICLE X TRUSTEE AND TRUST FUND

  	
  38

  
	
  10.1

  	
  Establishment of Trust

  	
  38

  
	
  10.2

  	
  Powers and Duties of the Trustee

  	
  38

  
	
  10.3

  	
  Exclusive Benefit

  	
  38

  
	
  10.4

  	
  Delegation of Responsibility

  	
  38

  
	
   

  	
   

  	
   

  
	
  ARTICLE XI PLAN ADMINISTRATION

  	
  39

  
	
  11.1

  	
  The Administrative Committee

  	
  39

  
	
  11.2

  	
  Administrative Committee Powers and Duties

  	
  39

  
	
  11.3

  	
  Claims Procedure

  	
  40

  
	
  11.4

  	
  Delegation of Responsibility

  	
  42

  
	
   

  	
   

  	
   

  
	
  ARTICLE XII MANAGEMENT, CONTROL AND INVESTMENT OF PLAN ASSETS

  	
  43

  
	
  12.1

  	
  Investment Funds

  	
  43

  
	
  12.2

  	
  Valuation of Accounts

  	
  43

  
	
  12.3

  	
  Investment in Insurance Contract

  	
  43

  
	
  12.4

  	
  The Investment Manager

  	
  43

  
	
  12.5

  	
  Compensation

  	
  44

  
	
   

  	
   

  	
   

  
	
  ARTICLE XIII PLAN AMENDMENT OR TERMINATION

  	
  45

  
	
  13.1

  	
  Plan Amendment

  	
  45

  
	
  13.2

  	
  Limitations of Plan Amendment

  	
  45

  
	
  13.3

  	
  Right of the Company to Terminate Plan

  	
  45

  
	
  13.4

  	
  Effect of Partial or Complete Termination

  	
  46

  
	
   

  	
   

  	
   

  
	
  ARTICLE XIV MISCELLANEOUS PROVISIONS

  	
  47

  
	
  14.1

  	
  Plan Not a Contract of Employment

  	
  47

  
	
  14.2

  	
  Source of Benefits

  	
  47

  
	
  14.3

  	
  Benefits Not Assignable

  	
  47

  
	
  14.4

  	
  Domestic Relations Orders

  	
  47

  
	
  14.5

  	
  Benefits Payable to Minors, Incompetents and Others

  	
  47

  
	
  14.6

  	
  Merger or Transfer of Assets

  	
  48

  

 

iii

 

	
  14.7

  	
  Participation in the Plan by an Affiliate

  	
  48

  
	
  14.8

  	
  Action by the Company or a Participating Affiliate

  	
  48

  
	
  14.9

  	
  Provision of Information

  	
  48

  
	
  14.10

  	
  Notice of Address

  	
  49

  
	
  14.11

  	
  Controlling Law

  	
  49

  
	
  14.12

  	
  Military Service

  	
  49

  
	
  14.13

  	
  Conditional Adoption

  	
  49

  
	
  14.14

  	
  Word Usage and Article and
  Section References

  	
  49

  
	
  14.15

  	
  Effect of Mistake

  	
  49

  

 

iv

 

INTRODUCTION

 

Effective as of January 1, 1989, Laporte Inc. established The
Laporte Inc. Money Purchase Pension Plan (the “Plan”). The Plan was amended
from time to time for administrative reasons, to reflect changes in the Laporte
Inc. corporate structure, and to comply with changes in relevant law.

 

The Plan was amended and restated effective as of January 1, 1997
(except where otherwise indicated), to comply with the Uruguay Round Agreements
Act (“GATT”), the Uniformed Services Employment and Reemployment Rights Act of
1994 (“USERRA”), the Small Business Job Protection Act of 1996 (“SBJPA”), the
Taxpayer Relief Act of 1997 (“TRA ‘97”), the Internal Revenue Service
Restructuring and Reform Act of 1998 (“RRA ‘98”) and the Community Renewal Tax
Relief Act of 2000 (“CRA”) (collectively known as “GUST”), and other changes in
applicable law. Effective as of March 1, 2001, the Plan name was changed
to The Rockwood Specialties Inc. Money Pension Plan to reflect the acquisition
of Laporte Inc. by Rockwood Specialties Inc. (the “Company”). This Plan, was
amended and restated effective as of January 1, 1997 (except where
otherwise indicated) to reflect certain provisions of the Economic Growth and
Tax Relief Reconciliation Act of 2001 (“EGTRRA”), and is intended as good faith
compliance with the requirements of EGTRRA and is to be construed in accordance
with EGTRRA and any guidance issued thereunder. The Plan is hereby amended and
restated effective as of January 1, 2008 to incorporate all effective
prior amendments since the Plan’s last amendment and restatement, and to
reflect applicable legislative changes, including changes under the Pension
Protection Act of 2006, changes under EGTRRA, and the final regulations under
Code Section 415.

 

The Company intends that this Plan and related Trust qualify under all
applicable provisions of the Internal Revenue Code of 1986, as amended (the “Code”),
and the Employee Retirement Income Security Act of 1974, as amended (“ERISA”),
and each of the terms of this Plan and Trust shall be so interpreted.

 

The benefits provided under the Plan to any participant who terminates
Employment, retires or dies while employed by the Company or any Affiliate
thereof shall be determined in accordance with the provisions of the Plan as in
effect on the date of such Termination of Employment, unless such person is
thereafter reemployed and again becomes a Participant in the Plan.

 

1

 

ARTICLE I

 

DEFINITIONS

 

Each of the following terms shall have the meaning set forth in this Article I
for purposes of this Plan:

 

1.1                                 Account  shall mean the separate account established
and maintained for each Participant pursuant to Section 4.1.

 

1.2                                 Account
Balance  shall mean the value of a
Participant’s Account determined as of the applicable Valuation Date.

 

1.3                                 Administrative
Committee  shall mean the committee
appointed pursuant to, and having the responsibilities specified in, Article XI
of the Plan.

 

1.4                                 Affiliate  shall mean any corporation or unincorporated
trade or business (other than the Company) while it is: (a) a member of a
controlled group of corporations (within the meaning of Code Section 414(b))
of which the Company is a member; (b) a trade or business under “common
control” (within the meaning of Code Section 414(c)) with the Company; (c) a
member of an “affiliated service group” (within the meaning of Code Section 414(m))
which includes the Company; or (d) any other entity required to be
aggregated with the Company under Code Section 414(o).

 

Notwithstanding
the foregoing, for purposes of applying Code Section 414 (b) and (c) to
Code Section 415, the phrase “more than 50 percent” shall be substituted
for the phrase “at least 80 percent” each place it appears in Code Section 1563(a)(1).

 

1.5                                 Annuity
Contract  shall mean an individual or
group annuity contract issued by an insurance company providing periodic
benefits, whether fixed, variable or both, the benefits or value of which a
Participant or Beneficiary cannot transfer, sell, assign, discount, or pledge
as collateral for a loan or as security for the performance of an obligation,
or for any other purpose, to any person other than the issuer thereof. The
terms of any Annuity Contract distributed by the Plan to a Participant or
Beneficiary shall comply with the terms of this Plan.

 

1.6                                 Beneficiary  shall mean the person or persons entitled to
receive any payment of benefits from the Plan upon a Participant’s death, as
determined in accordance with Section 8.2.

 

1.7                                 Benefit
Commencement Date  shall mean the
first day of the first period for which an annuity benefit is payable to the
Participant under the Plan or, if a Participant’s benefit is not payable in the
form of an annuity, the first day on which all events have occurred that
entitle the Participant to receive his or her benefit.

 

1.8                                 Break-in-Service  shall mean a one-year period of severance
determined on the basis of a 12-consecutive-month period beginning on the
severance from service date and ending on the first anniversary of such date,
provided that the Employee during such 12-consecutive-month period does not
perform an hour of service (within the meaning of Section 2530.200b-2(a)(1) of
the U.S. Department of Labor Regulations) for the Employer; provided, however, (a) if
an 

 

2

 

Employee severs from service as
a result of quit, discharge or retirement and then returns to service within 12
months, the period of severance shall be deemed a period of service, and (b) if
an Employee is absent from service for any reason other than quit, discharge,
retirement or death and during the absence a quit, discharge or retirement
occurs, the period of time between the severance from service date (i.e., the
date of quit, discharge or retirement) and the first anniversary of the date on
which the employee was first absent shall be taken in account, if the employee
returns to service on or before such first anniversary date.

 

Solely for purposes of determining whether a
Break-in-Service has occurred, an Employee who is absent from work for any
period by reason of the (a) pregnancy of the Employee (b) the birth
of a child of the Employee, (c) the placement of a child with the Employee
in connection with the adoption of such child by such Employee, or (d) caring
for such child for a period beginning immediately following such birth or
placement, shall be credited with a sufficient Period of Service to prevent a
Break-in-Service; provided, however, the Employee shall have a Severance from
Service Date which is the second anniversary of the first day of such absence
if the Employee is absent from service beyond the first anniversary of the
first day of such absence. The period between the first and second
anniversaries of the first day of absence from work shall not be deemed a
period of service nor a period of severance.

 

An Employee who is reemployed and is subject
to reemployment under the Uniformed Services Reemployment Rights Act of 1994 (“USERRA”)
shall not be treated as having incurred a Break in Service by reason of the
individual’s period of qualified military service as defined in USERRA.

 

For purposes of this Section 1.8, a “severance from service” shall
occur on the earlier of (a) the date on which an Employee quits, retires,
is discharged or dies, or (ii) the first anniversary of the first date of
a period in which an Employee remains absent from service (with or without pay)
with the Employer for any reason other than quit, retirement, discharge or
death, such as vacation, holiday, sickness, disability, leave of absence or
layoff.

 

1.9                                 Code  shall mean the Internal Revenue Code of 1986,
as now in effect or as amended from time to time. A reference to a specific
provision of the Code shall include such provision, any successor provision,
and any applicable regulations pertaining thereto.

 

1.10                           Company  shall mean Rockwood Specialties Inc. or any
successor legal entity.

 

1.11                           Compensation  shall mean all remuneration for services
rendered paid by the Employer to an Employee, including, without limitation,
bonuses, overtime and commissions, but excluding amounts paid or reimbursed by
the Employer for moving expenses incurred by an Employee to the extent that at
the time of payment it is reasonable to believe such amounts are deductible by
the Employee under Code Section 217, the value of any non-qualified stock
option granted to a Highly Compensated Employee by the Employer, amounts paid
to a Highly Compensated Employee to enable such Employee to pay taxes on
certain items of compensation received from the Employer, and items which be
excluded from the definition of “compensation” within the meaning of Treas.
Reg. Section 1.415-2(d)(3). 
Compensation includes compensation which is not currently includible in
the Participant’s gross income by reason of the application of Code Section 125,
Code Section 402(e)(3) or Code Section 402(h)(1)(B). Effective
as of January 1, 

 

3

 

2001, Compensation shall also
include amounts includible in the Employee’s gross income by reason of the
application of Code Section 132(f).

 

Notwithstanding the foregoing, the Compensation taken into account for
an Employee for any Plan Year shall not exceed $150,000, as adjusted pursuant
to Code Section 401(a)(17) (the “Code Section 401(a)(17) limitation”).
For the 2001 Plan Year, the Code Section 401(a)(17) limitation is
$170,000. Effective for Plan Years beginning after December 31, 2001,
Compensation taken into account for an Employee for a Plan Year shall not
exceed $200,000, as adjusted for cost-of-living increases in accordance with Section 401(a)(17)(B) of
the Code.

 

Effective
for January 1, 2008, Limitation Compensation shall also include Post-Severance
Compensation.  “Post-Severance
Compensation” means, for Limitation Years that begin on or after January 1,
2008, the following amount(s) that would have been included in the
definition of Limitation Compensation if the amounts were paid prior to the
Employee’s Severance from Service Date from employment with the Employer,
provided such amount(s) are paid to the Employee by the later of 21⁄2 months
after the Employee’s Severance from Service Date from employment with the
Employer or the end of the Limitation Year that includes the Severance from
Service Date from employment with the Employer:

 

(i)            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

 

(ii)           The payment would have been paid to
the Employee prior to a Severance from Service Date from employment if the
Employee had continued in employment with the Employer.

 

Post-Severance Compensation shall also include:

 

(i)            Payment for unused accrued bona fide
sick, vacation, or other leave, but only if the Employee would have been able
to use the leave if employment had continued; or

 

(ii)           Received by an Employee pursuant to a
nonqualified unfunded deferred compensation plan, but only if the payment would
have been paid to the Employee at the same time if the Employee had continued
in employment with the Employer and only to that the payment is includible in
the Employee’s gross income.

 

Any
other payment that is not described shall not be considered Post-Severance
Compensation if paid after the Severance from Service Date from employment with
the Employer, even if paid within the time period described above. Accordingly,
Post-Severance Compensation shall not include severance pay, or parachute
payments within the meaning of Code Section 280G(b)(2), if they are paid
after the Severance from Service Date from employment with the Employer, and
shall not include post-severance payments under a non-qualified unfunded
deferred compensation plan unless the payments would have been paid at that
time without regard to the severance from employment.

 

4

 

1.12         Defined Benefit Plan  shall mean any plan of the type defined in
Code Section 414(j) maintained by the Company or an Affiliate.

 

1.13         Defined Contribution
Plan  shall mean any plan of the type
defined in Code Section 414(i) maintained by the Company or an
Affiliate.

 

1.14         Disability  shall mean a Participant’s total and
permanent inability to meet the requirements of the Participant’s customary
employment in a satisfactory manner by reason of any medically determinable
physical or mental impairment which can be expected to result in death or which
has lasted or can be expected to last for a continuous period of not less than
12 months; provided, however, that such disability:

 

(a)           was
not contracted, suffered, or incurred while the Participant was engaged in, or
did not result from his or her having engaged in, a criminal enterprise; or

 

(b)           was
not sustained while the Participant was employed by anyone other than the
Company or an Affiliate. A Participant shall not be considered to have a
Disability unless he or she furnishes proof of the existence of such Disability
to the Administrative Committee in the form and manner, and at such time, as
the Administrative Committee may request.

 

1.15         Effective Date  shall mean January 1, 2008.

 

1.16         Eligible Employee  shall mean all Employees of the Employer
other than: (a) Employees included in a unit of employees covered by a
collective bargaining agreement between the Employer and an employee
representative (not including any organization more than half of whose members
are owners, officers or executives of the Employer) in the negotiation of which
retirement benefits were the subject of good faith bargaining, unless such
bargaining agreement specifically provides for participation in the Plan; (b) Leased
Employees and other individuals providing services to the Employer pursuant to
an agreement between the Employer and a third party, even if they are not “leased
employees” under Code Section 414(n); (c) “seconded employees” who
participate in any non-United States pension plan sponsored by the Company or
any Affiliate; (d) individuals providing services pursuant to contracts
designating them as independent contractors or consultants, or individuals
designated by the Employer as independent contractors or consultants; and (e) any
other individual who is compensated, directly or indirectly, by the Employer
and with respect to whom such compensation is not treated by the Employer at
the time of payment as being subject to statutorily required payroll tax
withholding, such as withholding of federal and/or state income tax and/or
withholding of the Employee’s share of Social Security tax, provided that
statutorily required backup withholding shall not be considered to be payroll
tax withholding. The foregoing exclusions from the definition of “Eligible
Employee” shall apply notwithstanding any contrary determination of employee
status by any court or governmental agency including, but not limited to, the
Internal Revenue Service or the Department of Labor.

 

Effective July 31,
2004, an employee of the Sachtleben Company shall become an Eligible Employee
under the Plan in accordance with this Section 1.16 and shall be eligible
to participate in the Plan in accordance with Section 2.1.

 

5

 

Effective January 1,
2005, an employee of Oakite Products, Inc. shall become an Eligible
Employee under the Plan in accordance with this Section 1.16 of the Plan
and shall be eligible to participate in the Plan in accordance with Section 2.1.

 

Effective January 1,
2007, an employee of Chemetall Foote Corp. and an employee of CeramTec North
America Innovative Ceramic Engineering Corporation shall become an Eligible
Employee under the Plan in accordance with Section 1.16 of the Plan and
shall be eligible to participate in the Plan in accordance with Section 2.1.

 

1.17         Employee  shall mean any person in an employee-employer
relationship with the Company or an Affiliate and shall include Leased
Employees. Notwithstanding the foregoing, if such Leased Employees do not
constitute more than 20% of the nonhighly compensated work force, within the
meaning of Code Section 414(n)(5)(C)(ii), of the Company and its
Affiliates, the term “Employee” shall not include those Leased Employees
covered by a plan described in Code Section 414(n)(5).

 

1.18         Employer  shall mean the Company and each Participating
Affiliate in the Plan pursuant to Section 14.7.

 

1.19         Employer Contributions  shall mean any contribution to the Plan made
by the Employer and allocated to a Participant’s Account in accordance with Section 3.1.

 

1.20         Employment  shall mean services performed for the Company
or an Affiliate.

 

1.21         Employment
Commencement Date  shall mean the
date on which an Employee first performs an Hour of Service.

 

1.22         Entry Date  shall mean the first day of every calendar
month.

 

1.23         ERISA  shall mean the Employee Retirement Income
Security Act of 1974, as amended from time to time. Reference to a specific
provision of ERISA shall include such provision, any successor provision and
any applicable regulation pertaining thereto.

 

1.24         Highly Compensated
Employee  shall mean, with respect to
any Plan Year, an Employee who performs services for the Company or any
Affiliate during the Plan Year, and:

 

(a)           was
a 5% owner (as defined in Code Section 414(q)(2)) during the Plan Year or
the preceding Plan Year; or

 

(b)           had
compensation (as defined in Code Section 415(c)(3)) in excess of $80,000,
as adjusted in accordance with Code Section 415(d), for the preceding Plan
Year and was in the top-paid group of employees for such preceding Plan Year.
The top-paid group of employees is the group consisting of the top 20% of
employees when ranked on the basis of compensation.

 

A former Employee shall be treated as a Highly Compensated Employee if
such Employee was a Highly Compensated Employee when he or she separated from
service or at any time after attaining age 55.

 

6

 

The determination of who is a Highly Compensated Employee shall be made
in accordance with Code Section 414(q).

 

1.25         Hour of Service  shall mean service credited in accordance
with the elapsed time method under Treas. Reg §1.410(a)-7.  Accordingly, for purposes of the Employee’s
rights with respect to eligibility to participate, vesting and benefit accrual,
the Plan shall credit the period of time which elapses while the Employee is
employed (i.e., while the employment relationship exists) with the Employer,
regardless of the actual number of hours he or she completes during such
period. An Employee’s service shall be taken into account for purposes of
eligibility to participate and vesting as of the date he or she first performs
an hour of service within the meaning of Treas. Reg. §2530.200b-2(a)(1) for
the Employer. Service shall be taken into account for the period of time from
the date the Employee first performs such an hour of service until the date he
or she severs from service with the Employer.

 

The date an Employee severs from service shall be the earlier of the
date the Employee quits, is discharged, retires or dies, or the first
anniversary of the date the employee is absent from service for any other
reason (e.g., disability, vacation, leave of absence, layoff, etc.). If an
Employee is granted a leave of absence (and if no intervening event occurs),
the Severance from Service Date shall occur one year after the date the
Employee was first absent on leave, and this one year of absence shall be taken
into account as service for the Employee. A quit, discharge, retirement or
death within the year after the beginning of an absence for any other reason
shall result in an immediate severance from service.

 

For purposes of eligibility to participate and vesting, an Employee who
has severed from service by reason of a quit, discharge or retirement may be
entitled to have a period of time of 12 months or less taken into account by
the Employer if the Employee returns to service within a certain period of time
and performs an hour of service within the meaning of Treas. Reg. §2530.200b-2(a)(1).
In general, the period of time during which the Employee must return to service
shall begin on the date the Employee severs from service as a result of a quit,
discharge or retirement and ends on the first anniversary of such date.
However, if the Employee is absent for any other reason (e.g., layoff) and then
quits, is discharged or retires, the period of time during which the Employee
may return and receive credit shall begin on the Severance from Service Date
and end one year after the first day of absence (e.g., first day of layoff). A
severance from service (e.g., a quit), or an absence (e.g., layoff) followed by
a severance from service, shall not result in a period of time of more than one
year being required to be taken into account after an Employee severs from
service or is absent from service.

 

For purposes of benefit accrual, an Employee shall be entitled to have
his or her service taken into account from the date he or she begins to
participate in the Plan until the Severance from Service Date. Periods of
severance under any circumstances are not required to be taken into account.

 

Prior to January 1,
2002, an Hour of Service was determined under the general method of crediting
service for an Employee under Treas. Reg. §2530.200b-2 (i.e., actual counting
of hours of service during the applicable 12-consecutive-month computation
period), and/or the equivalencies set forth in Treas. Reg. §2530.200b-3.
Accordingly, an Employee received a year’s credit (in units of years of service
or years of participation) for a computation period during 

 

7

 

which the Employee was credited
with a specified number of hours of service. An Employee’s rights with respect
to eligibility to participate, vesting and benefit accrual was determined by
totaling the number of years’ credit to which an Employee was entitled.

 

1.26         Investment Fund  shall mean an investment fund, if any, in
which the Trust may be invested pursuant to Section 12.1.

 

1.27         Investment Manager  shall mean any person appointed pursuant to Section 12.4
having the power to direct the investment of assets in accordance with that
Section.

 

1.28         Leased Employee  shall mean, pursuant to Code Section 414(n),
any person who is not a common law employee of the Company or an Affiliate and
who provides services to the Company or an Affiliate if

 

(a)           Such
services are provided pursuant to an agreement between the Company or the
Affiliate and any other person (called a “leasing company”);

 

(b)           Such
person has performed such services for the Company or the Affiliate on a
substantially full-time basis for a period of at least one year; and

 

(c)           Such
services are performed under primary direction or control by the Company or the
Affiliate.

 

1.29         Leave of Absence  shall mean a leave granted by the Employer or
an Affiliate in accordance with its standard personnel policies applied in a
nondiscriminatory manner to all Employees similarly situated. Leave of Absence
shall also include an unpaid leave under the Family and Medical Leave Act of
1993.

 

1.30         Normal Retirement Age  shall mean age 65.

 

1.31         Participant  shall mean an Employee who has commenced, but
not terminated, participation in the Plan as provided in Article II.

 

1.32         Participating
Affiliate  shall mean any Affiliate
which has duly adopted the Plan with the consent of the Company and has not
withdrawn therefrom.

 

1.33         Period of Service  shall mean a period beginning on an Employee’s
Employment Commencement Date and ending on the Employee’s Severance from Service
Date.

 

1.34         Period of Severance  shall mean a period beginning on an Employee’s
Severance from Service Date and ending on the date the Employee earns an Hour
of Service.

 

1.35         Plan  shall mean The Rockwood Specialties Inc.
Money Purchase Pension Plan and any amendments thereto.

 

1.36         Plan Year  shall mean the calendar year.

 

8

 

1.37         Qualified Joint and
Survivor Annuity  shall mean an
Annuity Contract purchased from an insurance company with a Participant’s
distribution amount which is payable for the life of the Participant with a
survivor annuity continuing after the Participant’s death to the Participant’s
Surviving Spouse for the Surviving Spouse’s life in an amount which is equal to
50% of the amount of the annuity payable to the Participant.

 

1.38         Qualified
Pre-Retirement Survivor Annuity 
shall mean an Annuity Contract purchased from an insurance company with
a Participant’s vested Account Balance providing level monthly benefits for the
lifetime of the Participant’s Surviving Spouse.

 

1.39         Reduction in  Force 
shall mean the reduction of an Employer’s workforce due to a voluntary
or involuntary Termination of Employment where the Participant is  eligible to receive severance pay and/or
severance benefits under an employment termination program or severance plan,
program or arrangement offered by an Employer to at least 5 Participants within
a period not exceeding 6 months.

 

1.40         Severance from Service
Date  shall mean the earlier of (a) the
date the Employee quits, retires, is discharged, or dies, or (b) the first
anniversary of the first date of a period in which an Employee is  absent for any other reason; provided, however, that an Employee shall not
experience a Severance from Service Date while the Employee is on lay-off or
Leave of Absence if the Employee returns to Employment immediately following
the end of the lay-off or Leave of Absence. If the Employee does not return to
Employment immediately following the end of the lay-off or Leave of Absence,
such Employee shall be deemed to have had a Severance from Service Date as of
his first day of absence due to lay-off or Leave of Absence.

 

1.41         Spousal Consent  shall mean the written consent of a
Participant’s Surviving Spouse to an election or designation by the Participant
under the Plan. Such consent shall acknowledge the effect of the Participant’s
election or designation, shall specify the alternate Beneficiary or form of
benefit (if not a  general
consent), as applicable, and shall be witnessed by either a representative of
the Administrative Committee or a notary public Spousal Consent shall not be
necessary if the Participant establishes to the satisfaction of the
Administrative Committee that he or she has no Spouse, his or her Spouse cannot
be located or such other circumstances exist as the Administrative Committee
may, in accordance with applicable regulations, deem appropriate to waive the
requirement of Spousal Consent. Spousal Consent, once given, may be revoked
only with  the consent of the
Participant. Spousal Consent shall be valid and binding only with respect to  the Spouse who gave the consent.

 

1.42         Spouse  shall mean the person legally married to a
Participant.

 

1.43         Surviving Spouse  shall mean the Spouse of a Participant on the
earlier of

 

(a)           the
date of the Participant’s death; or

 

(b)           the
Participant’s Benefit Commencement Date.

 

1.44         Termination of
Employment  shall mean the voluntary
or involuntary severance of Employment.

 

9

 

1.45         Trust  shall mean the trust established under the
Plan in which Plan assets are held.

 

1.46         Trust Agreement  shall mean the agreement between the Company
and the Trustee with respect to the Trust.

 

1.47         Trustee  shall mean the person appointed as trustee pursuant
to Article X, and any successor trustee.

 

1.48         Valuation Date  shall mean each business day or such other
dates as may be specified by the Administrative Committee.

 

1.49         Vesting Service  shall mean the service credited to a
Participant under Section 5.2 for purposes of determining the Participant’s
vested percentage in his or her Account.

 

1.50         Year of Service  shall mean, in determining service to be
taken into account for purposes of eligibility to participate, vesting and
benefit accrual, each Period of Service unit which is
12-consecutive-months.  For purposes of
eligibility to participate and vesting, the Period of Service shall run from
the Employment Commencement Date (or re-Employment Commencement Date, as
applicable) until the Severance from Service Date. For purposes of benefit
accrual, a Period of Service shall run from the date that a Participant
commences participation under the Plan until his or her Severance from Service
Date. An Employee shall be credited with the period of time which runs during
any absence from service (other than for reason of a quit, retirement,
discharge or death) which is 12 months or less. Prior to January 1, 2002,
an Hour of Service was determined under the general method of crediting service
for an Employee under Treas. Reg. §2530.200b-2 (i.e., actual counting of hours
of service during the applicable 12-consecutive-month computation period),
and/or the equivalencies set forth in Treas. Reg. §2530.200b-3.

 

10

 

ARTICLE II

 

PARTICIPATION

 

2.1           Admission as a
Participant

 

2.1.1        Each Eligible Employee who
was a Participant in the Plan immediately prior to the Effective Date shall be
a Participant in the Plan as of the Effective Date.

 

2.1.2        (a) each Eligible
Employee not eligible to become a Participant under Section 2.1.1 above,
shall become a Participant in the Plan on the Entry Date coinciding with or
next following such Eligible Employee’s completion of a Period of Service of at
least one month, provided he or she is an Eligible Employee on such date.  This paragraph shall be interpreted in
accordance with the elapsed time method set forth in Treas. Reg. §1.410(a)-7.

 

(b)           Effective
July 31, 2004, an Eligible Employee who is an employee of the Sachtleben
Company shall be credited with his or her prior service with the Sachtleben
Company for eligibility purposes under the Plan.

 

(c)           Effective
January 1, 2005, an Eligible Employee who is an employee of Oakite
Products, Inc. shall be credited with his or her prior service with Oakite
Products, Inc. for eligibility purposes under the Plan.

 

(d)           Effective
January 1, 2007, an Eligible Employee who is an employee of Chemetall
Foote Corp. and CeramTec North America Innovative Ceramic Engineering
Corporation, shall be credited with his or her prior service with said
companies for eligibility purposes under the Plan.

 

2.1.3        Notwithstanding Section 2.1.2
above, the Employer may, in its discretion, provide an earlier Entry Date or
grant past service credit for eligibility purposes to individuals who become
Employees through an acquisition of assets or an entity by the Company or
Affiliate or through a merger or consolidation of an entity with or into the
Company or an Affiliate or any other similar transaction; provided, however, that
any such provision shall be subject to the nondiscrimination requirements of
Code Section 401(a)(4).

 

2.1.4        An Eligible Employee who
has attained his or her Normal Retirement Age and who continues as an Eligible
Employee shall continue to be eligible to actively participate in the Plan
until his or her actual retirement. 
Participation shall terminate as provided in Section 2.3.

 

2.2           Rehired Employees

 

2.2.1        An Employee who has a
Termination of Employment before earning a vested interest in his or her Account
Balance and who again becomes an Employee shall lose credit for his or her
Periods of Service prior to such Termination of Employment if his or her Period
of Severance equals or exceeds the greater of five years or his or her Periods
of Service prior to such Termination of Employment. This paragraph shall be
interpreted in accordance with the elapsed time method set forth in Treas. Reg.
§1.410(a)-7.

 

11

 

2.2.2        If a Participant who has a
Termination of Employment again becomes an Eligible Employee and his or her
prior Years of Service (or Periods of Service) are not disregarded under Section 2.2.1,
then he or she shall again become a Participant in the Plan as of the first
date on which he or she again becomes an Eligible Employee.

 

2.2.3        A former Employee or
Participant who has a Termination of Employment and whose prior Years of
Service (or Periods of Service) are disregarded under Section 2.2.1 shall
be treated as a new Employee.

 

2.2.4        A former Employee who has
a Termination of Employment and subsequently performs an Hour of Service within
12 months of his or her Severance from Service Date, such Employee’s Period of
Severance shall instead be included as part of his or her Period of Service for
purposes of participation and vesting. This Section 2.2.4 shall be
interpreted in accordance with the service spanning rules of the elapsed
time method, as set forth in Treas. Reg. §4.10(a)-7.

 

2.3           Termination of
Participation

 

An individual shall cease to be a Participant on the earliest of

 

(a)           payment
to him or her or on his or her behalf of all vested benefits due to him or her
under the Plan at a time when he or she is no longer eligible for any future
contributions;

 

(b)           his
or her Termination of Employment when he or she has no vested interest in his
or her Account; or

 

(c)           his
or her death.

 

12

 

ARTICLE III

 

CONTRIBUTIONS

 

3.1           Employer
Contributions

 

3.1.1        Subject to the limitations
of Sections 3.5 and 3.6, for each Plan Year, an Employer shall make an Employer
Contribution (in an amount determined under Section 3.1.2) on behalf of
each of Participant who was employed by it during the Plan Year and who:

 

(a)           is
employed in “eligible employment” (as defined below) on the last day of the
Plan Year and is credited with a Period of Service of at least 6 months during
such Plan Year;

 

(b)           is
on a Leave of Absence on the last day of the Plan Year, provided the
Participant was employed in “eligible employment” immediately prior to such
Leave of Absence;

 

(c)           died
or became Disabled during the Plan Year at a time when he or she was employed
in “eligible employment;” or

 

(d)           terminated
Employment during the Plan Year on or after attainment of Normal Retirement Age
at a time when he or she was employed in “eligible employment;”

 

(e)           effective
as of January 1, 2007, is employed in “eligible employment” (as defined
below) on the last day of the Plan Year and is credited with a Period of
Service of at least one month during such Plan Year.

 

For purposes of this Section 3.1.1, “eligible employment” shall
mean employment as an Eligible Employee or employment with an Affiliate that is
not an Employer in a position under which the Employee would be an Eligible
Employee if the Affiliate were an Employer.

 

3.1.2        The amount of the Employer
Contribution made on behalf of any Participant who is eligible to receive an
allocation shall be 3% of such Participant’s Compensation received from the
Employer for that portion of the Plan Year during which he or she was a
Participant.

 

3.2           Participant
Contributions

 

No Participant contributions shall be required or permitted under the
Plan.

 

3.3           Timing of
Contributions

 

The Employer shall transfer Employer Contributions to the Trustee no
later than the last day prescribed by law for the filing of the Employer’s
federal income tax return (including extensions thereof) for the taxable year
of the Employer which includes the last day of the Plan Year for which such
contributions were made.

 

13

 

3.4           Forfeitures

 

Any forfeitures arising under the Plan shall be applied to reduce
Employer Contributions.

 

3.5           Limitation on
Allocations

 

3.5.1        As used in this Section 3.5
and in Section 3.6, each of the following terms shall have the meaning for
that term set forth in this Section 3.5.1:

 

(a)           Annual
Additions means, for each Participant, the sum of the following amounts
credited to the Participant’s Account for the Limitation Year under this Plan
or another Defined Contribution Plan maintained by an Employer:

 

(i)            Employer or Affiliate
contributions;

 

(ii)           Employee contributions;

 

(iii)          forfeitures;

 

(iv)          amounts described in
Code Sections 415(1)(1) and 419A(d)(2); and

 

(v)           allocations under a
simplified employee pension.

 

Amounts attributable to rollover contributions or trust to trust
transfers shall not be Annual Additions.

 

(b)           Defined
Benefit Fraction means, for any Participant, the fraction (determined as of
the last day of the Limitation Year) which shall have a numerator equal to the
Projected Annual Benefit of the Participant under all Defined Benefit Plans and
a denominator equal to the lesser of:

 

(i)            1.25 multiplied by the
dollar limitation in effect under Code Section 415(b)(1)(A) for such
Limitation Year; or

 

(ii)           1.4 multiplied by 100%
of the Participant’s average Limitation Compensation for his or her high three
years.

 

(c)           Defined
Contribution Dollar Limitation means $30,000, as adjusted pursuant to Code Section 415(d).
Effective for Limitation Years beginning after December 31, 2001, Defined
Contribution Dollar Limitation means $40,000, as adjusted for increases in the
cost-of-living under Section 415(d) of the Code.

 

(d)           Defined
Contribution Fraction means, for any Participant, the fraction (determined
as of the last day of the Limitation Year) which shall have a numerator equal
to the sum of the Participant’s Annual Additions and a denominator equal to the
sum of the lesser of the following amounts determined for such Limitation Year
and for each prior Limitation Year for which the Participant was credited with
a Year of Service:

 

14

 

(i)            1.25 multiplied by the
dollar limitation in effect under Code Section 415(c)(1)(A) for such
Limitation Year.

 

(ii)           35% of the Participant’s
Limitation Compensation for such Limitation Year.

 

(e)           Excess
Amount means the excess of the Participant’s Annual Additions for the
Limitation Year involved over the Maximum Permissible Amount for that
Limitation Year.

 

(f)            Limitation
Compensation means an Employee’s compensation as determined pursuant to
Code Section 415(c)(3). Limitation Compensation shall be subject to the
adjusted dollar limitation under Code Section 401(a)(17). Effective for
Plan Years beginning after December 31, 2001, Limitation Compensation for
a Participant for a Plan Year shall not exceed $200,000, as adjusted.

 

(g)           Limitation
Year means each 12-consecutive month period ending on the same last day as
the Plan Year.

 

(h)           Maximum
Permissible Amount means, for a Limitation Year and with respect to any
Participant, the lesser of (i) the Defined Contribution Dollar Limitation,
or (ii) 25% of the Participant’s Limitation Compensation for the
Limitation Year (or 100% of the Participant’s Limitation Compensation for the Limitation
Year, effective for Limitation Years beginning after December 31, 2001);
provided, however, that the percentage of Limitation Compensation limit shall
not apply to (A) any contribution for medical benefits (within the meaning
of Code Section 419A(d)(2)) after Termination of Employment which is
otherwise treated as an Annual Addition, or (B) an amount otherwise
treated as an Annual Addition under Code Section 415(1)(1).

 

(i)            Projected
Annual Benefit means the Participant’s annual benefit under a Defined
Benefit Plan payable in the form of a straight life annuity computed on the
assumptions that the Participant will remain employed until Normal Retirement
Age (or his or her current age, if later) and that his or her Limitation
Compensation will remain at its current level until that time.

 

3.5.2        The amount of Annual
Additions which may be credited to the Participant’s Accounts for any
Limitation Year shall not exceed the Maximum Permissible Amount. If the
Employer contribution that would otherwise be made or allocated to the
Participant’s Account would cause the Annual Additions on behalf of the
Participant for the Limitation Year to exceed the Maximum Permissible Amount
with respect to that Participant for the Limitation Year, the amount to be
contributed or allocated will be reduced so that the Annual Additions on behalf
of the Participant for the Limitation Year will equal such Maximum Permissible
Amount.

 

(a)           Prior
to determining the Participant’s actual Limitation Compensation for a
Limitation Year, the Administrative Committee may determine the Maximum
Permissible Amount for the Participant for the Limitation Year on the basis of
a reasonable estimation of the Participant’s Limitation Compensation for that
Limitation Year. Such estimated Limitation Compensation shall be uniformly
determined for all Participants similarly situated.

 

15

 

(b)                                 As
soon as is administratively feasible after the end of a Limitation Year, the
Maximum Permissible Amount for the Limitation Year will be determined on the
basis of the Participant’s actual Limitation Compensation for the Limitation
Year.

 

(c)                                  If
a Participant is credited with an Annual Addition under any other Defined
Contribution Plan maintained by the Company or an Affiliate, before any Annual
Addition is reduced under this Plan, Annual Additions to such other Defined
Contribution Plan shall be reduced to bring all such Plans into conformity with
Code Section 415(c).

 

(d)                                 If,
as a result of the allocation of forfeitures, a reasonable error in estimating
a Participant’s annual Limitation Compensation, a reasonable error in
determining the amount of elective deferrals that may be made with respect to
any Participant under the limits of Code Section 415, or under other
limited facts and circumstances that the Commissioner of Internal Revenue finds
justify the availability of the rules set forth in this Section 3.5.2(d),
the Annual Additions under the Plan for a particular Participant would cause
the limitations of Code Section 415 to be exceeded, then -

 

(i)            The Excess Amount in
the Participant’s Account will be used to reduce Employer Contributions for such
Participant in the next Limitation Year, and each succeeding Limitation Year if
necessary.

 

(ii)           If, after the
application of subparagraph (i), an Excess Amount still exists and the
Participant is not covered by the Plan at the end of a Limitation Year, the
Excess Amount will be held unallocated in a suspense account and applied to
reduce Employer Contributions for all remaining Participants in the next
Limitation Year, and each succeeding Limitation Year if necessary.

 

If a suspense account is in existence at any time during a particular
Limitation Year, all amounts in the suspense account must be allocated and
reallocated to Participants’ Accounts before any Employer contributions may be
made to the Plan for that Limitation Year.

 

3.6                                 [Reserved]

 

3.7                                 Return
of Employer Contributions Under Special Circumstances

 

Notwithstanding any provision of this Plan to the contrary, upon timely
written demand by an Employer to the Trustee:

 

(a)           Any
contribution made by the Employer under a mistake of fact shall be returned to
the Employer by the Trustee within one year after the payment of the
contribution.

 

(b)           Any
contribution made by the Employer shall be returned to the Employer within one
year after a current deduction for the contribution under Code Section 404
is disallowed by the Internal Revenue Service, but only to the extent
disallowed.

 

(c)           Any
contribution made by the Employer shall be returned to the Employer by the
Trustee within one year after notification from the Internal Revenue Service
following a timely application for determination as to initial qualification
that the Plan is not a qualified plan.

 

16

 

Contributions returned to the Employer under (a) or (b) above
shall be net of any investment losses but shall not include any earnings
thereon.

 

3.8                                 Contributions
Conditioned on Deductibility

 

All contributions made under the Plan are made on the condition that
they are currently deductible under Code Section 404; provided, however,
that no contributions shall be returned to the Employer except as provided in Section 3.7.

 

17

 

ARTICLE IV

 

ACCOUNTS, INVESTMENTS AND ALLOCATIONS

 

4.1                                 Establishment
of Participant Accounts

 

The Administrative Committee shall establish and maintain an Account in
the name of each Participant. The Administrative Committee shall credit or
cause to be credited all Employer Contributions allocable to the Participant,
and any earnings, losses and expenses attributable thereto, to the Participant’s
Account.

 

The maintenance of separate Accounts under this Section 4.1 is for
accounting purposes only, and a physical segregation of assets of the Trust to
each separate Account shall not be required. Any distribution to a Participant
or Beneficiary shall be charged to the Participant’s Account in accordance with
procedures established by the Administrative Committee.

 

4.2                                 Investment
of Funds

 

If Investment Funds are established pursuant to Section 12.1, then
the contributions and Account Balance of a Participant or the Account Balance
of a Beneficiary of a deceased Participant shall be invested among the
Investment Funds as directed by the Participant or Beneficiary in accordance
with and subject to Section 12.1.2. Investment directions by a Participant
or Beneficiary may be made or changed on each business day once a calendar
month, subject to such procedures as may be established by the Administrative
Committee (including, but not limited to, requirements for prior notice and
investments in minimum increments). In the event that a Participant for any
reason fails to provide proper initial investment directions, contributions
allocated to such Participant shall be entirely invested in an Investment Fund
or Funds specified by the Administrative Committee.

 

4.3                                 Allocation
of Earnings to Accounts

 

All earnings or income received on any investment credited to a
Participant’s or Beneficiary’s Account under the Plan shall be reinvested in
such investment.

 

4.4                                 Allocation
Report

 

The Administrative Committee shall deliver to each Participant and
Beneficiary of a deceased Participant, at least annually, a statement for the
Account of such Participant or Beneficiary which shows the activity since the
prior statement date and the market value of the Account as of the current
statement date and any other information deemed appropriate by the
Administrative Committee.

 

4.5                                 Allocation
Corrections

 

Any error or omission in the statement provided pursuant to Section 4.4
shall be corrected as necessary to remedy such error or omission.

 

18

 

ARTICLE V

 

VESTING AND TOP-HEAVY PROVISIONS

 

5.1                                 Determination
of Vesting

 

5.1.1                        A
Participant who has a Termination of Employment either because of his or her
death or Disability or who has a Termination of Employment on or after
attainment of Normal Retirement Age shall have a vested percentage of 100% in
his or her Account.

 

5.1.2                        Effective
January 1, 2007, a Participant shall be fully vested at all times in his
or her Account; provided, however, the vested percentage of a Participant in
his or her Account prior to July 31, 2004 shall be determined in
accordance with the following schedule:

 

	
  Completed Years of

  Vesting Service

  	
   

  	
  Vested

  Percentage

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2 years

  	
   

  	
  25

  	
  %

  
	
  3 years

  	
   

  	
  50

  	
  %

  
	
  4 years

  	
   

  	
  75

  	
  %

  
	
  5 years

  	
   

  	
  100

  	
  %

  

 

Effective July 31, 2004, an employee of the Sachtleben Company who
is a Participant under the Plan shall be credited with his or her prior service
with the Sachtleben Company for purposes of this Section 5.1.2 and Article V.  Notwithstanding the Vesting Schedule listed
above, effective July 31, 2004, a Participant shall be fully vested at all
times in his or her Account. Effective January 1, 2005, an employee of
Oakite Products, Inc. who is a Participant under the Plan shall be
credited with his or her prior service with Oakite Products, Inc. for
purposes of this Section 5.1.2 and Article V. Notwithstanding the
Vesting Schedule listed above, effective January 1, 2005, a Participant
shall be fully vested at all times in his or her Account.  Effective January 1, 2007, an employee
of Chemetall Foote Corp. and CeramTec North America Innovative Ceramic
Engineering Corporation who is a Participant under the Plan shall be credited
with his or her prior service with said companies for purposes of this Section 5.1.2
and Article V notwithstanding.

 

5.1.3                        Notwithstanding
the foregoing, any Participant who, prior to attaining Normal Retirement Age,
has an involuntary or voluntary Termination of Employment as a result of a
Reduction in Force shall be 100% vested in his or her Account; provided,
however, that such provision shall be implemented in a uniform and
nondiscriminatory manner. Effective as of March 1, 2002, this Section 5.1.3
shall apply only to Participants with 3 or more years of Vesting Service on March 1,
2002.

 

5.2                                 Rules for
Crediting Vesting Service

 

5.2.1                        A
Participant’s Vesting Service shall equal the sum of paragraphs (a) and (b) below:

 

(a)           Subject
to the limitations set forth in Sections 5.2.2 and 5.2.3, a Participant shall
earn a year of Vesting Service for each one year Period of Service he or she
completes. For 

 

19

 

purposes of
determining a one year Period of Service for vesting, non-successive Periods of
Service shall be aggregated on the basis that Periods of Service totaling 12
months (with 30 days deemed to be a month in the case of the aggregation of
fractional months) or 365 days shall equal a whole year Period of Service. This
paragraph shall be interpreted in accordance with the elapsed time method set
forth in Treas. Reg. §1.410(a)-7.

 

(b)           In
addition, the Company may, in its discretion, grant past service credit for
Vesting Service to individuals who become Employees through an acquisition of
assets or an entity by the Company or an Affiliate or through a merger or
consolidation of an entity with or into the Company or an Affiliate or any
other similar transaction; provided, however, that any such provision shall be
subject to the nondiscrimination requirements of Code Section 401 (a)(4).

 

5.2.2                        A
Participant who has no vested percentage in his or her Account Balance and who
has a Termination of Employment shall, if he or she again becomes an Employee,
receive no credit for his or her Vesting Service prior to such Termination of
Employment if his or her Period of Severance equals or exceeds the greater of
five years or his or her Period of Service prior to such Termination of
Employment. This paragraph shall be interpreted in accordance with the elapsed
time method set forth in Treas. Reg. §1.410(a)-7.

 

5.2.3                        If
a Participant who is less than 100% vested in his or her Account Balance has a
Termination of Employment and incurs a Period of Severance of at least five
consecutive years, then his or her Period of Service after such Period of
Severance shall be disregarded for purposes of vesting in his or her Account
Balance which accrued before such Period of Severance This paragraph shall be
interpreted in accordance with the elapsed time method set forth in Treas. Reg.
§1.410(a)-7.

 

5.3                                 Rules for
Crediting; Service Upon Termination of Employment

 

5.3,1 If a Participant who is less than 100% vested in his or her
Account Balance terminates Employment and receives a complete distribution of
his or her vested Account Balance (or, under Section 6.1.2, is deemed to
have received a complete distribution), then the nonvested portion of his or
her Account Balance shall be treated as a forfeiture.

 

5.3.1                        In
the event a Participant forfeited any portion of his or her Account in accordance
with Section 5.3.1 and again becomes an Eligible Employee prior to
incurring a Period of Severance equaling at least five consecutive years, the
nonvested portion of his or her Account shall be restored to its value as of
the date of distribution (or deemed distribution). If the Participant received
a distribution, his or her vested portion shall not be less than an amount (“X”)
determined by the formula: X = P(AB + D) - D. For purposes of applying the
formula: P is the vested percentage at the relevant time; AB is the Account
Balance at the relevant time; D is the amount of the distribution; and the “relevant
time” is any time prior to the time at which, under the Plan the vested
percentage in the account cannot increase. The restored amount shall be derived
from amounts forfeited during the Plan Year through such Valuation Date and, if
such forfeitures are not sufficient, from a contribution by the Employer.

 

20

 

5.4                                 Top-Heavy
Provisions

 

5.4.1                        As
used in this Section 5.4, each of the following terms shall have the
meanings for that term set forth in this Section 5.4.1:

 

(a)                                  Determination
Date means, for any Plan Year subsequent to the first Plan Year, the last
day of the preceding Plan Year, and for the first Plan Year of the Plan, the
last day of such Plan Year.

 

(b)                                 Determination
Period means the Plan Year containing the Determination Date and the four
preceding Plan Years. Notwithstanding the foregoing, effective for Plan Years
beginning after December 31, 2001, Determination Period means the Plan
Year containing the Determination Date.

 

(c)                                  Key
Employee means any Employee or former Employee (and the beneficiaries of
such Employee) who, at any time during the “Determination Period,” was:

 

(i)            an officer of the
Company or an Affiliate having an annual Limitation Compensation greater than
50% of the Defined Benefit Dollar Limitation for any Plan Year within the
Determination Period or, effective for Plan Years beginning after December 31,
2001, an officer of the Company or an Affiliate having an annual Limitation
Compensation greater than $130,000 (as adjusted under Code Section 416(i)(1)(A));

 

(ii)           a “5% owner” (as
defined in Code Section 416(i)) of a Company or an Affiliate; or

 

(iii)          a “1 % owner” (as
defined in Code Section 416(i)) of a Company or an Affiliate who has an
annual Limitation Compensation in excess of $150,000.

 

(d)                                 Limitation
Compensation means an amount determined in accordance with Section 3.5.1(f
).

 

(e)                                  Non-Key
Employee means any Employee who is not a Key Employee.

 

(f)                                    Permissive
Aggregation Group means the Required Aggregation Group of plans plus any
other plan or plans of the Company or an Affiliate which, when considered as a
group with the Required Aggregation Group, would continue to satisfy the
requirements of Code Section 401(a)(4) and Code Section 410.

 

(g)                                 Required
Aggregation Group means (i) each Qualified Plan of the Company or an
Affiliate in which at least one Key Employee participates, and (ii) any
other Qualified Plan of the Company or an Affiliate which enables a plan
described in (i) to meet the requirements of Code Section 401(a)(4) and
Code Section 410.

 

(h)                                 Super
Top-Heavy Plan means the Plan, if the Top-Heavy Ratio, as determined under
the definition of Top-Heavy Plan, exceeds 90%.

 

21

 

(i)                                     Top-Heavy
Plan means, for any Plan Year, the Plan if any of the following conditions
exists:

 

(i)            If the Top-Heavy Ratio
for the Plan exceeds 60% and the Plan is not part of any Required Aggregation
Group or Permissive Aggregation Group of plans.

 

(ii)           If the Plan is a part
of a Required Aggregation Group of plans but not part of a Permissive
Aggregation Group and the Top-Heavy Ratio for the Required Aggregation Group of
plans exceeds 60%.

 

(iii)          If the Plan is a part of
a Required Aggregation Group and part of a Permissive Aggregation Group of
plans and the Top-Heavy Ratio for the Permissive Aggregation Group exceeds 60%.

 

Solely for the purposes of determining whether the Plan or any other
plan included in an aggregation group is a Top-Heavy Plan, the accrued benefit
of a Non-Key Employee shall be determined (a) under the method, if any,
that uniformly applies foil accrual purposes under all plans maintained by the
Company and any Affiliate, or (b) if there is no such method, as if such
benefit accrued not more rapidly than the slowest accrual rate permitted under
the fractional accrual rate set forth in Code Section 411(b)(1)(C).

 

(j)                                     Top-Heavy
Ratio means, for the Plan alone, or for the Required or Permissive
Aggregation Group as appropriate, either (i) or (ii) or (iii) below:

 

(i)            If the Company or any
Affiliate maintains one or more Defined Contribution Plans (including any “simplified
employee pension” within the meaning of Code Section 408(k)) and the
Company or any Affiliate has never maintained any Defined Benefit Plan which,
during the one year period ending on the Determination Date, has or has had
accrued benefits, the Top-Heavy Ratio is a fraction, the numerator of which is
the sum of the account balances of all Key Employees as of the Determination
Date, and the denominator of which is the sum of all account balances, in each
case computed in accordance with Code Section 416; provided, however, that
the numerator and denominator of the Top-Heavy Ratio shall be adjusted 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 further provided, however, that the numerator and denominator of the
Top-Heavy Ratio shall include any part of any account balance distributed
within the one year period ending on the Determination Date due to severance
from employment, separation from service, death, or disability, and shall also include
any part of any account balance distributed for any other reason within the
five year period ending on the Determination Date.

 

(ii)           If the Company or any
Affiliate maintains one or more Defined Contribution Plans (including any “simplified
employee pension” within the meaning of Code Section 408(k)) and the
Company or any Affiliate maintains or has maintained one or more Defined
Benefit Plans which, during the one year period ending on the Determination
Date, has or has had any accrued benefits, the Top-Heavy Ratio is a fraction,
the numerator of which is the sum of the account balances under the aggregated 

 

22

 

Defined Contribution Plans for
all Key Employees, determined in accordance with (iv) above, plus the
present value of accrued benefits under the aggregated Defined Benefit Plans
for all Key Employees as of the Determination Date and the denominator of which
is the sum of the account balances under the aggregate Defined Contribution
Plans for all Participants, determined in accordance with (iv) above, plus
the present value of accrued benefits under the Defined Benefit Plans for all
such Participants as of the Determination Date, all determined in accordance
with Code Section 416; provided, however, that the numerator and
denominator of the Top-Heavy Ratio shall include any accrued benefit under a
Defined Benefit Plan distributed within the one year period ending on the
Determination Date due to severance from employment, separation from service, death,
or disability, and shall also include any part of any account balance
distributed for any other reason within the five year period ending on the
Determination Date.

 

(iii)          For purposes of
determining the Top-Heavy Ratio, the value of account balances will be
determined as of the most recent Top-Heavy Valuation Date that falls within or
ends with the twelve (12) month period ending on the Determination Date, except
as provided in Code Section 416 for the first and second plan years of a
Defined Benefit Plan. The account balances of any Participant who (a) is a
Non-Key Employee, but who was a Key Employee in a prior year, or (b) has
not performed an Hour of Service with the Company or any Affiliate 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. When aggregating plans, the value of
account balances will be calculated with reference to the Determination Dates
that fall within the same calendar year.

 

(k)                                  Top-Heavy
Valuation Date means the date as of which account balances, or accrued
benefits, are valued to calculate the Top-Heavy Ratio.

 

5.4.2                        If
the Plan is determined to be a Top-Heavy Plan as of any Determination Date,
then notwithstanding any Plan provision to the contrary, it shall be subject to
the rules set forth in the balance of this Section 5.4, beginning
with the first Plan Year commencing after such Determination Date.

 

5.4.3                        (a)           Except as provided in Section 5.4.3(b),
and except to the extent any other Defined Contribution Plan or Defined Benefit
Plan provides such minimum benefit to the Participant, for any Plan Year in
which the Plan is a Top-Heavy Plan, contributions and forfeitures allocated to
the Employer Account of any Participant who is a Non-Key Employee (whether or
not such Participant has completed 1,000 Hours of Service in that Plan Year) in
respect of that Plan Year shall not be less than the smaller of:

 

(i)            3% of such Participant’s
Limitation Compensation, or

 

(ii)           the largest percentage
of contributions and forfeitures, as a percentage of the Key Employee’s
Compensation, allocated to the Account of any Key Employee for that year.

 

23

 

(b)           The
provision in (a) above shall not apply to any Participant who was not
employed by the Company or an Affiliate on the last day of the Plan Year.

 

5.4.4                        In
the event that any provision of this Section 5.4 is no longer required to
qualify the Plan under the Code, then such provision shall thereupon be void
without the necessity of further amendment of the Plan.

 

24

 

ARTICLE VI

 

AMOUNT AND PAYMENT OF BENEFITS TO PARTICIPANTS,

 

6.1                                 Termination
of Employment

 

6.1.1                        Upon
a termination of Employment, a Participant shall be entitled to receive the
vested portion of his or her Account Balance, determined as of the Valuation
Date next following his or her Benefit Commencement Date, as determined under Section 6.1.2.

 

6.1.2                        (a)           Subject to (b) and
(c) below, and Section 6.2, a Participant’s Benefit Commencement Date
shall be the date determined under Section 6.1.3.

 

(b)           A
Participant who terminates Employment prior to his or her Normal Retirement
Date may make a written election (with Spousal Consent, if married) to receive
his or her vested Account Balance as of a date prior to his or her Normal
Retirement Date, provided such election is made during the 90-day period
preceding his Benefit Commencement Date. 
The Administrative Committee shall notify the Participant (and the
Participant’s Spouse, if any) of the right to any distribution until the
Participant’s Required Distribution Date. Such notification shall include a
general description of the material features of the optional forms of benefit
under the Plan in a manner which would satisfy the notice requirements of
Treasury Regulations Section 1.411(a)-l1. Such notice shall be provided no
less than 30 days and no more than 90 days prior to the Benefit Commencement
Date. However, distribution may commence less than 30 days after such notice is
provided, so long as (i) the Participant (and his or her Spouse, if
applicable) has been provided with information that clearly indicates that he
or she has at least 30 days to consider whether to consider the decision of
whether or not to elect a distribution; and (ii) the Participant (and his
or her Spouse, if applicable) affirmatively elects a distribution.

 

(c)           Notwithstanding
(b) above, if a Participant’s vested Account Balance does not exceed
$1,000, the Participant’s vested Account Balance under this Plan shall be paid
to him or her in a lump sum distribution as soon as practicable following his
or her Termination of Employment. For this purpose, if a Participant does not
have a vested interest in his or her Account (and thus is not entitled to any
distribution from such Account), the Participant shall be deemed to have
received a complete distribution of his or her interest in such Account upon
termination of Employment.

 

6.1.3                        Unless
the Participant otherwise elects, in no event shall he or she begin to receive
a benefit later than the sixtieth day after the close of the Plan Year in which
the latest of the following events occurs:

 

(a)           the
date the Participant attains his or her Normal Retirement Age;

 

(b)           the
Participant’s Termination of Employment; or

 

(c)           the
10th anniversary of the year in which the Participant commenced participation
in the Plan.

 

25

 

Notwithstanding the foregoing, a Participant who terminates employment
may elect to defer receipt of his or her benefit until his or her Required
Beginning Date.

 

6.2           Age 70-1/2
Distributions

 

Distribution of a Participant’s vested Account Balance shall be subject
to the requirements of this Section 6.2 and Section 8.3 and shall be
made in accordance with Code Section 401(a)(9) and the regulations
thereunder. With respect to distributions under the Plan made for calendar
years beginning on or after January 1, 2002, Section 6.4 shall apply
the minimum distribution requirements of Code Section 401(a)(9).

 

6.3           No In-Service
Withdrawals or Loans

 

There shall be no distributions to Participants prior to Termination of
Employment, except as provided in Section 6.2 above, and there shall be no
loans to Participants or beneficiaries.

 

6.4           Minimum Required
Distributions

 

6.4.1        General Requirements

 

(a)           Effective
Date.  The provisions of this Section will
apply for purposes of determining required minimum distributions for calendar
years beginning with the 2002 calendar year.

 

(b)           Coordination
with Minimum Distribution Requirements Previously in Effect.  The required minimum distributions for 2002
under this Section will be determined as follows.  If the total amount of 2002 required minimum
distributions under the Plan made to the distributee prior to the effective
date of this Section equals or exceeds the required minimum distributions
determined under this Section, then no additional distributions will be
required to be made for 2002 on or after such date to the distribute.  If the total amount of 2002 required minimum
distributions under the Plan made to the distribute prior to the effective date
of this Section is less than the amount determined under this Section,
then required minimum distributions for 2002 on and after such date will be
determined so that the total amount of required minimum distributions for 2002
made to the distribute will be the amount determined under this Section.

 

(c)           Precedence.  The requirements of this Section will
take precedence over any inconsistent provisions of the Plan.

 

(d)           Requirements
of Treasury Regulations Incorporated. 
All distributions required under this Section will be determined
and made in accordance with the Treasury regulations under Code Section 401(a)(9).

 

6.4.2        Time and Manner of
Distribution

 

(a)           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.

 

26

 

 

(b)           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, except
as provided in Article VIII, 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.

 

(ii)           If the Participant’s
Surviving Spouse is not the Participant’s sole designated beneficiary, then,
except as provided in Article VIII, distributions to the designated
beneficiary will begin by December 31 of the calendar year immediately
following the calendar year in which the Participant died.

 

(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 begin, this subsection 6.4.2(b), other than subsection
6.4.2(b)(i), will apply as if the Surviving Spouse were the Participant.

 

For purposes of
this subsection 6.4.2(b) and subsection 6.4.4, unless subsection 6.4.2(b)(iv) applies,
distributions are considered to begin on the Participant’s required beginning
date.  If subsection 6.4.2(b)(iv) applies,
distributions are considered to begin on the date distributions are required to
begin to the Surviving Spouse under subsection 6.4.2(b)(i).  If distributions under an annuity purchased
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 subsection 6.4.2(b)(i), the date distributions are considered to begin is
the date distributions actually commence.

 

(c)           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 subsections 6.4.2(b)(i) and 6.4.4 of this Section.  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 Treasury regulations.

 

27

 

6.4.3        Required Minimum
Distributions During Participant’s Lifetime

 

(a)           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 Treas. Reg. §1.401(a)(9)-9, using the
Participant’s age as of the Participant’s birthday in the distribution calendar
year; or

 

(ii)           if the Participant’s
sole designated beneficiary for the distribution calendar year is the
Participant’s Spouse, the quotient obtained by dividing the Participant’s
account balance by the number in the Joint and Last Survivor Table Treas. Reg.
§1.401(a)(9)-9, using the Participant’s and Spouse’s attained ages as of the
Participant’s and Spouse’s birthdays in the distribution calendar year.

 

(b)           Lifetime
Required Minimum Distributions Continue Through Year of Participant’s Death.  Required minimum distributions will be
determined under this subsection 6.4.3 beginning with the first distribution
calendar year and up to and including the distribution calendar year that
includes the Participant’s date of death.

 

6.4.4        Required Minimum
Distributions After Participant’s Death

 

(a)           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 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 under 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.

 

28

 

(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 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.

 

(b)           Death
Before Date Distributions Begin.

 

(i)            Participant
Survived by Designated Beneficiary. 
Except as provided in Article VIII, 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 designated beneficiary, determined as provided in subsection
6.4.4(a).

 

(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 subsection 6.4.2(b)(i),
this subsection 6.4.4(b) will apply as if the Surviving Spouse were the
Participant.

 

6.4.5        Definitions

 

For
purposes of this Section 6.4, the following definitions shall apply:

 

(a)           Designated
beneficiary.  The individual who is
designated as the Beneficiary under the Plan and is the designated beneficiary
under Code Section 401(a)(9) and Treas. Reg. §1.401(a)(9)-1,
Q&A-4.

 

(b)           Distribution
calendar year.  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 which contains the Participant’s required beginning date.  For distributions beginning after the
Participant’s death, 

 

29

 

the first
distribution calendar year is the calendar year in which distributions are
required to begin under subsection 6.4.2(b). 
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.

 

(c)           Life
expectancy.  Life expectancy as
computed by use of the Single Life Table in Treas. Reg. §1.401(a)(9)-9.

 

(d)           Participant’s
account balance.  The account balance
as of the last valuation date in the calendar year immediately preceding the
distribution calendar year (valuation calendar year) increased by the amount of
any contributions made and allocated or forfeitures allocated to the account
balance as of dates in the valuation calendar year after the valuation date and
decreased by distributions made in the valuation calendar year after the
valuation date.  The account balance for
the valuation calendar year includes any amounts rolled over or transferred to
the Plan either in the valuation calendar year or in the distribution calendar
year if distributed or transferred in the valuation calendar year.

 

(e)           Required
beginning date.  The date specified
in the Plan when distributions under Code Section 401(a)(9) are
required to begin.

 

30

 

ARTICLE VII

 

FORMS OF PAYMENT OF ACCOUNTS

 

7.1           Methods of
Distribution

 

For married Participants, the “Normal Form” of benefit is a Qualified
Joint and Survivor Annuity. For Participants who do not have a spouse on their
Benefit Commencement Dates, the Normal Form of benefit is a single life
Annuity purchased from an insurance company with the Participant’s distribution
amount which is payable for the Participant’s life. All distributions from a
Participant’s vested Account under Article VI shall be distributed in the
Normal Form unless the Participant elects one of the following optional
forms of distribution in accordance with Section 7.2:

 

(a)           a
lump sum distribution;

 

(b)           an
Annuity Contract which may be purchased from an insurance company with the
Participant’s distribution amount;

 

(c)           on
or after April 3, 2000, monthly, quarterly or annual installments of the
Participant’s distribution payable over any period not exceeding the life
expectancy of the Participant or the joint life expectancies of the Participant
and the Participant’s designated Beneficiary.

 

(d)           effective
as of January 1, 2008, any married Participant, with an Annuity Starting
Date after that date may elect a Qualified Optional Survivor Annuity or may
elect to waive such form of benefit in accordance with Code Section 417(a)(1)(A).  A “Qualified Optional Survivor Annuity” shall
mean an annuity which is payable for the life of the Participant with a
survivor annuity continuing after the Participant’s death to the Participant’s
Surviving Spouse for the Surviving Spouse’s life in amount which is equal to
75% of the amount of the annuity which is payable during the joint lives of the
Participant and the Surviving Spouse.

 

Distributions shall be subject to the requirements of Code Section 401(a)(9).
Effective as of April 3, 2000, a Participant who has elected to receive an
installment distribution may at any time elect to discontinue such installment
payments and have the unpaid vested Account Balance paid in a lump sum distribution.
In the event a Participant who has elected to receive an installment
distribution dies after his or her Benefit Commencement Date but before the
payment of the final installment, the unpaid installments shall be paid to the
Participant’s Beneficiary. The Beneficiary may elect to continue receiving such
installments or to have the unpaid vested Account Balance paid in a lump sum
distribution. In the event a Participant dies before his or her Benefit
Commencement Date, any election of a form of payment shall be void, and the
Participant’s vested Account Balance shall be distributed in accordance with Article VIII.

 

7.2           Election of Optional
Forms

 

7.2.1        At any time within the
90-day period preceding a Participant’s Benefit Commencement Date, the Participant
may elect in writing not to receive the Normal Form of benefit and to
receive instead an optional form of benefit payment provided for in Section 7.1.
Married 

 

31

 

Participants
must have Spousal Consent in order to waive the Normal Form and elect an
optional benefit form. Any Spousal Consent to a Participant’s election of an
optional form of benefit shall specify the form of benefit and the Beneficiary.

 

7.2.2        The Administrative
Committee shall provide to each Participant, within the period beginning 180
days before and ending 30 days before the Participant’s Benefit Commencement
Date, a written explanation in non-technical terms of:

 

(a)           the
terms and conditions of the Qualified Joint and Survivor Annuity and the
optional forms of benefit;

 

(b)           the
Participant’s right to make, and the effect of, an election to waive the
Qualified Joint and Survivor Annuity;

 

(c)           the
rights of the Participant’s Spouse under this Section 7.2;

 

(d)           the
right to make, and the effect of, a revocation of a previous election to waive
the Qualified Joint and Survivor Annuity; and

 

(e)           if
applicable, the right to defer distribution until Normal Retirement Age.

 

Notwithstanding the foregoing, the Administrative Committee may provide
a Participant with the above written explanation after the Participant’s
Benefit Commencement Date so long as the actual distribution does not commence
until at least 30 days after such written explanation is provided, subject to Section 7.2.3.
The Administrative Committee may, on a uniform and nondiscriminatory basis,
provide for such other notices, information or election periods or take such
other action as the Administrative Committee considers necessary or appropriate
so that this Section 7.2 is implemented in such a manner as to comply with
Code Section 401(a)(11) and Code Section 417.

 

7.2.3        Notwithstanding Section 7.2.2
above, distribution of a Participant’s benefit may begin less than 30 days
after receipt of the written explanation if:

 

(a)           The
Participant has been provided with information that clearly indicates that he
or she has at least 30 days to consider whether to waive the Qualified Joint
and Survivor Annuity; and

 

(b)           The
Participant is permitted to revoke any affirmative election at least until the
Benefit Commencement Date or, if later, at any time within the seven-day period
beginning the day after the written explanation is provided.

 

7.2.4        A Participant may revoke
his or her election to take an optional form of benefit without Spousal Consent
and take the Qualified Joint and Survivor Annuity or elect a different optional
form of benefit in accordance with Section 7.2 at any time within the
90-day period prior to the Participant’s Benefit Commencement Date. The number
of revocations shall not be limited.

 

32

 

7.3           Direct Rollovers

 

7.3.1        Notwithstanding any
provision in this Plan to the contrary, a Participant or a Beneficiary who is
the Surviving Spouse of a Participant may elect to have all or a portion of any
amount payable to him or her from the Plan which is an “eligible rollover
distribution” (as defined in Section 7.3.2 below) transferred directly to
an “eligible retirement plan” (as defined in Section 7.3.2 below). Any
such election shall be made in accordance with such uniform rules and
procedures as the Administrative Committee may prescribe from time to time as
to the time and manner of the election in accordance with Code Section 401(a)(31).

 

7.3.2        Definitions for
purposes of this Section 7.3

 

(a)           “Eligible
rollover distribution” shall mean any distribution of all or any portion of the
balance to the credit of the distributee other than: (1) 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; (2) any distribution for a specified period of ten
years or more; (3) any distribution to the extent such distribution is
required under Code Section 401(a)(9); or (4) the portion of any
distribution that is not includable in gross income.

 

(b)           “Eligible
retirement plan” shall mean, with respect to a Participant, an individual
retirement account or annuity described in Code Section 408(a) or
408(b)(“IRA”), an annuity plan described in Code Section 403(a) or a
qualified plan described in Code Section 401(a) that accepts the
distributee’s eligible rollover distribution. Notwithstanding the foregoing,
effective for distributions made after December 31, 2001, an eligible
retirement plan shall also mean an annuity contract described in Code Section 403(b) and
an eligible plan under Code Section 457(b) which is maintained by a
state, political subdivision of a state, or any agency or instrumentality of a
state or political subdivision of a state and which agrees to separately
account for amounts transferred into such plan from this Plan.  Effective as of January 1, 2008, an eligible
retirement plan shall also mean a Roth IRA (as defined in Code Section 408A);
provided, however, for taxable years beginning prior to January 1, 2010, a
distributee shall not be permitted to make a qualified rollover distribution
(as defined in Code Section 408A(e)) from the Plan to a Roth IRA if, for
the year the eligible rollover distribution is made, the Participant has a
modified adjusted gross income exceeding $100,000 or is married and files a
separate return (as provided in Code Section 408A(c)(3)(b)).

 

33

 

ARTICLE VIII

 

DEATH BENEFITS

 

8.1           Payment of Account
Balances

 

8.1.1        In the event of the death
of a Participant while an Employee, the Participant’s entire Account Balance
shall be payable to his or her Beneficiary. In the event of the death of a
Participant after Termination of Employment but before his or her Benefit
Commencement Date, the Participant’s vested Account Balance shall be payable to
his or her Beneficiary. In the event of a Participant’s death after his or her
Benefit Commencement Date, any unpaid vested Account Balance shall be payable
in accordance with the form of benefit elected by the Participant under Article VII.

 

8.1.2        (a)           Except in the event of a Participant’s death
after the distribution of his or her benefit has begun, if the Participant’s
Beneficiary is the Participant’s Surviving Spouse, the benefit payable under Section 8.1.1
shall be paid in the form of a Qualified Pre-Retirement Survivor Annuity unless
the Surviving Spouse elects one of the optional forms available under Section 7.1
in lieu of the Qualified Pre-Retirement Survivor Annuity within the 90-day
period preceding the Benefit Commencement Date. This election must satisfy the
requirements of Section 7.2. Such Qualified Pre-Retirement Survivor
Annuity benefit shall be payable as soon as practicable after the Participant’s
death, provided that distribution shall not be made prior to the date which
would have been the Participant’s Normal Retirement Date without the Surviving
Spouse’s written consent. Notwithstanding the preceding two sentences, if the
benefit payable to a Surviving Spouse under Section 8.1.1 does not exceed
$1,000 it shall be paid as soon as practicable following the Participant’s
death in a lump sum distribution. A Surviving Spouse to whom a lump sum
distribution is payable may elect a direct rollover to the extent permitted by Section 7.3.

 

(b)           If
the Participant’s Beneficiary is not the Participant’s Surviving Spouse, the
benefit payable under Section 8.1.1 shall be payable as soon as
practicable after the Participant’s death in a lump sum distribution unless the
Beneficiary instead elects one of the optional forms of benefit available under
Section 7.1.

 

8.2           Beneficiary

 

8.2.1        Subject to Sections 8.2.2
and 8.2.3 below, a Participant may, with Spousal Consent (if married),
designate a person or persons as his or her Beneficiary by filing a written
designation of Beneficiary with the Administrative Committee in the time and
manner established by the Committee. If no valid designation of Beneficiary is
in effect at the time of the Participant’s death, or if the designated
Beneficiary does not survive the Participant, the Beneficiary shall be the
Participant’s Surviving Spouse or, if there is no Surviving Spouse, the
Participant’s estate. For this purpose, if the Participant and the Beneficiary
die simultaneously, or if there is not sufficient evidence to establish who
died first, the Participant shall be deemed to have survived the Beneficiary.

 

34

 

8.2.2        (a)           Except as provided in (b) below, a
married Participant may only waive the Qualified Pre-Retirement Survivor
Annuity form of benefit and designate someone other than his or her Spouse as
Beneficiary after the first day of the Plan Year in which the Participant
reaches age 35 or, if earlier, after the date the Participant terminates
Employment, in accordance with Section 8.2.1 above. Such a waiver and
Beneficiary designation shall not be valid unless the Participant receives,
within the period beginning on the first day of the Plan Year in which the
Participant attains age 32 and ending with the close of the Plan Year in which
the Participant attains age 35, a written explanation of the Qualified Pre-Retirement
Survivor Annuity in such terms and in such manner as would be compared to the
explanation provided for meeting the requirements applicable to a Qualified
Joint and Survivor Annuity in Section 7.2 above and must satisfy
requirements comparable to those provided in Section 7.2, including notice
and Spousal Consent requirements.

 

(b)           A
married Participant who will not have attained age 35 as of the end of the
current Plan Year may make a special qualified election to waive the Qualified
Pre-Retirement Survivor Annuity form of benefit and may, in accordance with Section 8.2.1
above, designate a non-Spouse Beneficiary. Such election shall not be valid
unless the Participant receives a written explanation of the Qualified
Pre-Retirement Survivor Annuity in such terms as are comparable to the
explanation required under Section 7.2. Qualified Pre-Retirement Survivor
Annuity coverage will be automatically reinstated as of the first day of the
Plan Year in which the Participant attains age thirty-five (35). Any new waiver
on or after such date shall be subject to the full requirements of this
Section. Such election shall be automatically revoked on the first day of the
Plan Year in which the Participant will reach age 35. The Participant’s Spouse
will then be his or her Beneficiary unless the Participant makes another
designation of Beneficiary in accordance with Section 8.2.1 above. The
Administrative Committee shall provide a married Participant with a notice
similar to that provided under Section 7.2.2 with respect to a Participant’s
right to designate someone other than his or her Spouse as Beneficiary. Such
notice shall be provided within the one year period ending after the date the
individual first becomes a Participant.

 

8.2.3        Any prior designation of a
Beneficiary shall be automatically revoked upon the subsequent marriage or
remarriage of the Participant.

 

8.2.4        To the extent permitted by
law and subject to any valid qualified domestic relations order (as defined in
Code Section 414(p)), a Participant’s designation of his or her Spouse as
Beneficiary shall be automatically revoked upon the Participant’s subsequent
divorce. The Participant shall not be prevented from re-designating a former
Spouse as his or her Beneficiary following a divorce.

 

8.3           Required
Commencement

 

Notwithstanding any other provision of the Plan to the contrary, if a
Participant dies before his or her Benefit Commencement Date, the Participant’s
entire interest must be distributed within five years after the year containing
the Participant’s death, except that if the designated Beneficiary is the
Participant’s Surviving Spouse, then distributions must begin within the year
containing (a) the one-year anniversary of the Participant’s death or, if
later, (b) the date the Participant would have attained age 70%.

 

35

 

ARTICLE IX

 

FIDUCIARIES

 

9.1           Named Fiduciaries

 

9.1.1        The Administrative
Committee (or its delegate) shall be a “named fiduciary” (within the meaning of
Section 402(a)(2) of ERISA) of the Plan, with authority to control
and manage the operation and administration of the Plan.

 

9.1.2        The Company (or its
delegate) shall be the “administrator” and “plan administrator” (within the
meaning of ERISA Section 3(16)(A) and Code Section 414(g),
respectively) with respect to the Plan.

 

9.1.3        The Trustee shall be a “named
fiduciary” (within the meaning of ERISA Section 402(a)(2)) of the Plan,
with the authority to manage and control Trust assets in accordance with the
terms of the Trust Agreement.

 

9.1.4        There are no “named
fiduciaries” of the Plan other than the Administrative Committee and the
Trustee.

 

9.2           Employment of
Advisers

 

Each named fiduciary shall be authorized, to the extent it deems
advisable, to designate persons who are not named fiduciaries to carry out
fiduciary responsibilities allocated to it, to retain accountants, agents,
attorneys, actuaries and other professional consultants and to rely upon
information, statistics or analysis provided by any of such persons.

 

9.3           Multiple Fiduciary
Capacities

 

Any “named fiduciary” with respect to the Plan (as defined in ERISA Section 402(a)(2))
and any other “fiduciary” (as defined in ERISA Section 3(21)) with respect
to the Plan may serve in more than one fiduciary capacity.

 

9.4           Payment of Expenses

 

The reasonable expenses incident to the operation of the Plan,
including, without limitation, the compensation of the Trustee, consultants,
attorneys, fiduciaries and other advisors, shall be paid out of the Trust to
the extent permitted by law and to the extent not paid by the Employer. All
members of the Administrative Committee shall serve without compensation from
the Trust. Any determination by the Employer to pay all or part of any expense
shall not in any way limit the Employer’s right to determine to have similar or
other expenses paid out of the Trust assets at any other time.

 

9.5           Indemnification

 

To the extent not prohibited by state or federal law, the Company and
each Participating Affiliate, jointly and severally, agree to, and shall,
indemnify and hold harmless any member of 

 

36

 

the Administrative Committee or any other Employee, officer or director
of an Employer from all claims for liability, loss, damage or expense
(including payment of reasonable expenses in connection with defense against
any such claim) which result from any exercise or failure to exercise any of
the indemnified person’s responsibilities with respect to the Plan, other than
by reason of willful misconduct or a willful failure to act.

 

37

 

ARTICLE X

 

TRUSTEE AND TRUST FUND

 

10.1         Establishment of Trust

 

A Trust Agreement shall be executed between the Company and the
Trustee, which agreement shall provide for the creation of the Trust to receive
and hold all contributions and earnings therefrom. Benefits provided under the
Plan and expenses of administration of the Plan shall be paid from the assets
held in the Trust as directed by the Administrative Committee and the Company,
respectively.

 

10.2         Powers and Duties of
the Trustee

 

10.2.1      The Trustee shall have
exclusive authority and discretion to manage and control the assets of the Plan
in accordance with the terms of the Trust Agreement.

 

10.3         Exclusive Benefit

 

Except as provided in Section 3.7, the Trust shall be maintained
for the exclusive purpose of providing Plan benefits to Participants and their
Beneficiaries and paying the expenses of administration of the Plan and the
Trust to the extent not paid by the Employer.

 

10.4         Delegation of
Responsibility

 

The Trustee may designate persons, including persons other than “named
fiduciaries” (as defined in ERISA Section 402(a)(2)), to carry out the
specified responsibilities of the Trustee and shall not be liable for any act
or omission of a person so designated.

 

38

 

ARTICLE XI

 

PLAN ADMINISTRATION

 

11.1         The Administrative
Committee

 

11.1.1      Administrative Committee
members shall be appointed by the Company and may be removed by the Company at
its discretion.  Unless the Company
otherwise provides, any member of the Administrative Committee who is an
Employee of the Company or an Affiliate at the time of his or her appointment
will be considered to have resigned from the Administrative Committee when no
longer an Employee. Employees of the Company or an Affiliate shall receive no
compensation for their services rendered to or as members of the Administrative
Committee.

 

11.1.2      If more than one member is
appointed, the Administrative Committee shall act by a majority of its members
at the time in office, and such action may be taken either by a vote at a
meeting or in writing without a meeting. However, if less than three members
are appointed, the Administrative Committee shall act only upon the unanimous
consent of its members. The Administrative Committee may authorize in writing
any person to execute any document or documents on its behalf, and any
interested person, upon receipt of notice of such authorization directed to it,
may thereafter accept and rely upon any document executed by such authorized
person until the Administrative Committee shall deliver to such interested
person a written revocation of such authorization.

 

11.1.3      A member of the
Administrative Committee who is also a Participant shall not vote or act upon
any matter relating solely to himself or herself unless such person is the sole
member of the Administrative Committee.

 

11.2         Administrative
Committee Powers and Duties

 

The Administrative Committee is allocated such duties and powers as may
be necessary to discharge its duties hereunder including, without limitation,
the exclusive and discretionary authority to perform the following functions:

 

(a)           To
make such rules and regulations as it shall deem necessary or proper for
the efficient administration of the Plan;

 

(b)           To
interpret and construe the Plan, to resolve any ambiguities and to decide any
and all matters arising hereunder including, without limitation, questions of
fact as to eligibility to participate in the Plan or receive benefits under the
Plan or the amount and timing of benefits under the Plan; provided,  however,
that all such interpretations and decisions shall be applied in a uniform and
nondiscriminatory manner to all similarly situated persons and shall be
conclusively binding upon all persons interested in the Plan. The
Administrative Committee has discretionary authority to grant or deny benefits
under this Plan. Benefits under the Plan will be provided only if the
Administrative Committee decides, in its sole discretion, that the applicant is
entitled to them;

 

(c)           To
select the Investment Funds;

 

39

 

(d)           To
appoint one or more insurance companies;

 

(e)           To
appoint one or more Investment Managers;

 

(f)            To
establish and carry out a funding policy and method consistent with the
objectives of the Plan and the requirements of ERISA;

 

(g)           To
monitor the limits on contributions under Article III and to take action
to assure that such limits are satisfied for each Plan Year;

 

(h)           To
authorize disbursements from the Trust;

 

(i)            To
prescribe procedures to be followed by Participants or Beneficiaries who file
applications for benefits;

 

(j)            To
approve the design of enrollment forms, Beneficiary designation forms and any
other forms utilized in the administration of the Plan;

 

(k)           To
prepare and distribute, in such manner as the Administrative Committee
determines to be appropriate, information concerning the Plan;

 

(l)            To
receive from the Employer and from Participants such information as shall be
necessary for the proper administration of the Plan;

 

(m)          To
establish such written procedures as it shall deem necessary or proper to
determine the qualified status, pursuant to Code Section 414(p) of
any domestic relations order received by the Administrative Committee which
affects the right of a Participant and any alternate payee to payment of
benefits under the Plan, and to administer distributions pursuant to any
domestic relations order which the Administrative Committee determines to be a
qualified domestic relations order within the meaning of Code Section 414(p).  However,
effective April 6, 2007, a domestic relations order shall not fail
to be treated as a “qualified domestic relations order” solely because (1) the
order is issued after, or revises, another domestic relations order or
qualified domestic relations order, and/or (2) solely because of the time
at which it is issued; provided, however, any such domestic relations order
shall be subject to the same requirements and protections that apply to
qualified domestic relations orders under ERISA § 206(d)(3);

 

(n)           To
delegate, by written instrument to one or more administrative subcommittees
with respect to each Employer, such of the powers and duties allocated herein
to the Administrative Committee as it deems advisable; any such subcommittee
shall consist of persons appointed by the Administrative Committee, taking into
consideration designations recommended by the principal executive officer of
any Employer; and

 

(o)           To
make recommendations to the Company concerning amendments to the Plan.

 

11.3         Claims Procedure

 

The Administrative hereby adopts the procedure set forth below for
reviewing benefits claims under the Plans:

 

40

 

(a)           A
Participant or Beneficiary shall submit all claims for benefits under the Plans
in writing to the Administrative Committee.

 

(b)           The
Administrative Committee shall send to the Participant or Beneficiary written
notice of its decision within ninety (90) days of receiving the claim. The
period may be extended to one hundred eighty (180) days if the Administrative
Committee notifies the claimant in writing within the initial ninety (90) day
period that special circumstances exist which require an extension of the
period.  The written decision from the
Administrative Committee shall set forth:

 

(i)            the specific reasons
for the decision;

 

(ii)           the specific Plan
provisions upon which the decision is based;

 

(iii)          a description of any
additional material or information necessary for the Participant or Beneficiary
to perfect the claim for benefits and an explanation of the reasons why such
material or information is necessary;

 

(iv)          information regarding
procedures for submitting a request for review of the decision on the claim;
and

 

(v)           a statement of the
claimant’s right to bring an action under ERISA Section 502(a) following
an adverse benefit determination on review.

 

(c)           If
the Administrative Committee denies the claim in whole or in part, the
Participant or Beneficiary may submit a written request for review to the
Administrative Committee within sixty (60) days of the notice of denial,
pursuant to the procedures referenced in paragraph (b)(iv) above. The
Participant or Beneficiary shall set forth all the grounds upon which the
request for review is based and may submit issues or comments in writing. The
Participant or Beneficiary shall also be entitled to receive, upon request and
free of charge, reasonable access to, and copies of, all documents, records,
and other information relevant to the claim for benefits.

 

(d)           The
Administrative Committee shall send the Participant or Beneficiary written
notice of its decision within sixty (60) days after the Administrative
Committee receives the request for review. The review period may be extended to
one hundred twenty (120) days if the Administrative Committee notifies the
claimant within the initial sixty (60) day period that special circumstances
exist which require an extension of the review period. The Administrative
Committee’s written decision shall set forth the specific reasons for the
decision and the Plan provision on which the decision is based. The
Administrative Committee’s written decision shall also 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 a statement of the claimant’s
right to bring an action under ERISA Section 502(a). All such decisions of
the Administrative Committee shall be final, conclusive and binding upon all
Participants, Beneficiaries, and other interested persons.

 

(e)           If
applicable, claims for benefits due to Disability shall be decided in
accordance with Section 2560.503-1 of the U.S. Department of Labor
regulations.

 

41

 

11.4         Delegation of
Responsibility

 

The Administrative Committee may designate persons, including persons
other than “named fiduciaries” (as defined in ERISA Section 402(a)(2)), to
carry out the specified responsibilities of the Administrative Committee and
shall not be liable for any act or omission of a person so designated.

 

42

 

ARTICLE XII

 

MANAGEMENT, CONTROL AND INVESTMENT OF PLAN ASSETS

 

12.1         Investment Funds

 

12.1.1      The Administrative Committee
may establish one or more Investment Funds as it shall from time to time
determine for the investment of a Participant’s Accounts. Notwithstanding the
foregoing, the Administrative Committee, in accordance with Section 404(c) of
ERISA, shall make available at all times at least three investment
alternatives, each of which is diversified and has materially different risk
and return characteristics. The investment alternatives in the aggregate shall
enable each Participant, by choosing among them, to achieve a portfolio with
aggregate risk and return characteristics at any point within the range
normally appropriate for the Participant and which, in the aggregate, tend to
minimize through diversification the overall risk of the Participant’s
portfolio. The Plan is intended to constitute a plan described in Section 404(c) of
ERISA and Section 2550.404c-1 of the Department of Labor Regulations, such
that, to the extent applicable, the fiduciaries of the Plan may be relieved of
liability for any losses that are the direct and necessary result of the
investments instructions given by Participants and Beneficiaries under the
Plan.

 

12.1.2      Each Participant shall
exercise control over the assets in his Accounts and is solely responsible for
his investment elections. The Plan fiduciaries are not empowered to advise a
Participant as to the manner in which his Accounts shall be invested. The fact
that an Investment Fund is available to Participants for investment under the
Plan shall not be construed as a recommendation for investment in that fund.

 

12.2         Valuation of Accounts

 

A Participant’s Accounts shall be revalued at fair market value on each
Valuation Date, with earnings and losses since the previous Valuation Date
being credited to the Participant’s Account. Earnings and losses of the
particular Investment Funds shall be allocated in the ratio that the portion of
the Account Balance of a Participant invested in a particular Investment Fund
bears to the total amount invested in such fund.

 

12.3         Investment in
Insurance Contract

 

The Administrative Committee may appoint one or more insurance
companies to hold assets of the Plan, and may purchase insurance contacts or
policies from one or more insurance companies with assets of the Plan. Neither
the Trustee nor the Administrative Committee shall be liable for any act or
omission of an insurance company with respect to any duties delegated to any
insurance company.

 

12.4         The Investment Manager

 

12.4.1      The Administrative Committee
may, by an instrument in writing, appoint one or more persons as an Investment
Manager. Each person so appointed shall be (a) an investment adviser
registered under the Investment Advisers Act of 1940, (b) a bank as
defined in that Act, or (c) an 

 

43

 

insurance
company qualified to manage, acquire or dispose of any asset of the Plan under
the laws of more than one state.

 

12.4.2      Each Investment Manager
shall acknowledge in writing that it is a fiduciary (as defined in ERISA Section 3(21))
with respect to the Plan. The Company or the Administrative Committee shall
enter into an agreement with each Investment Manager specifying the duties and
compensation of such Administrative Manager and the other terms and conditions
under which such Investment Manager shall be retained. Neither the Trustee nor
the Administrative Committee shall be liable for any act or omission of any
Investment Manager and shall not be liable for following the advice of any
Investment Manager with respect to any duties delegated to any Investment
Manager.

 

12.4.3      The Administrative Committee
shall have the power to determine the Trust assets to be invested pursuant to
the direction of a designated Investment Manager and to set investment
objectives and guidelines for the Investment Manager.

 

12.5         Compensation

 

Each insurance company, Investment Manager and Trustee shall be paid
such reasonable compensation, in addition to their expenses, as shall from time
to time be agreed to by the Company or other person making such appointment;
provided, however, that no such compensation shall be paid to any person who is
an Employee.

 

44

 

ARTICLE XIII

 

PLAN AMENDMENT OR TERMINATION

 

13.1         Plan Amendment

 

The Company shall have the right at any time to amend the Plan, by an
instrument in writing, effective retroactively or otherwise, provided that no
such amendment shall have any of the effects specified in Section 1.3.2.

 

13.2         Limitations of Plan
Amendment

 

No Plan amendment shall:

 

(a)           authorize
any part of the Trust to be used for, or diverted to, purposes other than for
the exclusive benefit of Participants or their Beneficiaries;

 

(b)           decrease
the Account Balance of any Participant or his or her Beneficiary under the Plan
except to the extent permitted under Code Section 412(c)(8);

 

(c)           reduce
the vested percentage of any Participant;

 

(d)           eliminate
an optional form of benefit except to the extent permitted by Code Section 411
(d)(6); or

 

(e)           change
the vesting schedule, either directly or indirectly, unless each Participant
having not less than three years of Vesting Service is permitted to elect,
within a reasonable period specified by the Administrative Committee after the
adoption of such amendment, to have his or her vested percentage computed
without regard to such amendment. The period during which the election may be
made shall commence with the date the amendment is adopted and shall end as the
later of:

 

(i)            sixty days after the
amendment is adopted;

 

(ii)           sixty days after the
amendment is becomes effective; or

 

(iii)          sixty days after the
Participant is issued written notice by the Administrative Committee.

 

13.3         Right of the Company
to Terminate Plan

 

The Company intends and expects that from year to year it will be able
to and will deem it advisable to continue this Plan in effect and to make
contributions as herein provided. The Company reserves the right, however, to
terminate the Plan at any time.

 

45

 

13.4         Effect of Partial or
Complete Termination

 

13.4.1      As of the date of a “partial
termination” of the Plan or a complete discontinuance of contributions under
the Plan, each affected Participant who is then an Employee shall become 100%
vested in his or her Account Balance.

 

13.4.2      As of the date of a “complete
termination” of the Plan, each affected Participant who is then an Employee
shall become 100% vested in his or her Account balance, and distributions shall
be made as soon as practicable thereafter, as determined by the Administrative
Committee, in accordance with Article VII.

 

46

 

ARTICLE XIV

 

MISCELLANEOUS PROVISIONS

 

14.1         Plan Not a Contract of
Employment

 

The Plan is not a contract of Employment, and the terms of Employment
of any Employee shall not be affected in any way by the Plan or related
instruments except as specifically provided therein.

 

14.2         Source of Benefits

 

Benefits under the Plan shall be paid or provided for solely from the
Trust, and neither the Employer, the Administrative Committee, Trustee,
Investment Manager or insurance company shall assume any liability therefor.

 

14.3         Benefits Not
Assignable

 

Except as permitted in Code Section 401(a)(13) and ERISA Section 206(d),
benefits provided under the Plan may not be assigned or alienated, either
voluntarily or involuntarily. The preceding sentence shall not apply to the
creation, assignment or recognition of a right to any benefit payable with
respect to a Participant pursuant to a domestic relations order which the
Administrative Committee determines to be a “qualified domestic relations order”
(as defined in Code Section 414(p)).

 

14.4         Domestic Relations Orders

 

Any other provision of the Plan to the contrary notwithstanding, the
Administrative Committee shall have all powers necessary with respect to the
Plan for the proper operation of Code Section 414(p) with respect to
qualified domestic relations orders referred to in Section 14.3,
including, but not limited to, the power to establish all necessary or
appropriate procedures, to authorize the establishment of new accounts with
such assets and, subject to such investment control by the Administrative
Committee as the Administrative Committee may deem appropriate, and the
Administrative Committee may decide upon and make direct appropriate
distributions therefrom. To the extent provided in a qualified domestic
relations order, within the meaning of Code Section 414(p), distribution
of any portion of a Participant’s vested Account Balance allocated to an
alternate payee may be made whether or not the Participant has terminated
Employment or is otherwise eligible to receive a distribution.

 

14.5         Benefits Payable to
Minors, Incompetents and Others

 

In the event any benefit is payable to a minor or to a person otherwise
under a legal disability, or who, in the sole discretion of the Administrative
Committee, is by reason of advanced age, illness or other physical or mental
incapacity incapable of handling and disposing of his or her property, or
otherwise is in such position or condition that the Administrative Committee
believes that he or she could not utilize the benefit for his or her support or
welfare, the Administrative Committee shall have discretion to apply the whole
or any part of such benefit directly to the care, comfort, maintenance,
support, education or use of such person, or to 

 

47

 

pay the whole or any part of
such benefit to the parent of such person; to the guardian, committee,
conservator or other legal representative, wherever appointed, of such person;
to the person with whom such person is residing; or to any other person having
the care and control of such person.  The
receipt by any such person to whom any such payment on behalf of any
Participant or Beneficiary is made shall be a sufficient discharge therefor.

 

14.6         Merger or Transfer of
Assets

 

14.6.1      Subject to Section 14.6.2,
the Company may direct that the Plan be merged or consolidated with, or may
transfer all or a portion of its assets and liabilities to, another plan or may
receive assets and liabilities from another plan. The Administrative Committee
may take whatever action it deems necessary or appropriate to effect any such
merger, consolidation or transfer. Any optional forms of benefit or other
special provisions applicable to a Participant for whom an account balance has
been transferred to this Plan from another plan shall be set forth in an
Appendix hereto.

 

14.6.2      The Plan may not merge or
consolidate with, or transfer any assets or liabilities to, any other plan,
unless each Participant would (if the Plan then terminated) receive a benefit
immediately after the merger, consolidation or transfer which is equal to or
greater than the benefit he or she would have been entitled to receive
immediately before the merger, consolidation or transfer (if the Plan had then
terminated).

 

14.7         Participation in the
Plan by an Affiliate

 

14.7.1      With the consent of the
Company and by duly authorized action, an Affiliate may adopt the Plan.
Participating Affiliate contributions shall be allocated solely to Eligible
Employees of the Participating Affiliate. Company contributions shall be
allocated solely to Eligible Employees of the Company.

 

14.7.2      With the consent of the
Company and by duly authorized action, any other Employer may terminate its
participation in the Plan or withdraw from the Plan and the Trust.

 

14.7.3      A Participating Affiliate shall
have no independent power with respect to the Plan except as specifically
provided by this Section 14.7.

 

14.8         Action by the Company
or a Participating Affiliate

 

Any action required to be taken by the Company or any Participating
Affiliate pursuant to the terms of the Plan shall be taken by its board of
directors or any person or persons duly empowered to act on its behalf.

 

14.9         Provision of
Information

 

For purposes of the Plan, each
Employee shall execute such forms as may be reasonably required by the
Administrative Committee, and the Employee shall make available to the
Administrative Committee and the Trustee any information they may reasonably
request in this regard.

 

48

 

14.10       Notice of Address

 

Each person entitled to benefits under this Plan must file with the
Administrative Committee, in writing, his or her post office address and each
subsequent change of post office address. Any communication, statement or
notice addressed to such person at his or her latest reported post office
address will be binding on him or her for all purposes under the Plan.

 

14.11       Controlling Law

 

The Plan is intended to qualify under Code Section 401(a) and
to comply with ERISA, and its terms shall be interpreted accordingly.
Otherwise, to the extent not preempted by ERISA, the laws of the State of New
York shall control the interpretation and performance of the terms of the Plan.

 

14.12       Military Service

 

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

 

14.13       Conditional Adoption

 

Anything in the foregoing to the contrary notwithstanding, the Plan has
been adopted on the express condition that the Plan will be considered by the
Internal Revenue Service as qualifying under the provisions of Code Section 401(a),
and the Trust will be considered as qualifying for exemption from taxation
under Code Section 501(a). If the Internal Revenue Service determines that
the Plan or Trust does not so qualify, the Plan shall be amended or terminated
as decided by the Company.

 

14.14       Word Usage and Article and
Section References

 

As used in the Plan, the masculine includes the feminine, the singular
includes the plural, and the plural includes the singular, unless qualified by
the context. Titles of Articles and Sections of the Plan are for convenience of
reference only and are to be disregarded in applying the provisions of the
Plan.

 

14.15       Effect of Mistake

 

In the event of a mistake or misstatement as to the age, eligibility,
participation of an Eligible Employee, Vesting Service, the amount of
contributions made by or on behalf of a Participant or the amount of
distributions made or to be made to a Participant or Beneficiary, the
Administrative Committee shall, to the extent it deems it possible, make the
necessary adjustments (including, but not limited to, recoupment, reduction in
benefit payments, offset of benefit payments or return of overpayments) to
grant to such Participant or Beneficiary the credits or distributions to which
he is properly entitled under the Plan.

 

49

 

IN WITNESS WHEREOF, this Plan is hereby adopted, effective as of January 1,
2008 to be signed this
            day of
                                   ,
2008.

 

	
   

  	
  ROCKWOOD SPECIALTIES INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  

 

50

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