Document:

f8k062509ex10_310holdings.htm

    

    

    Exhibit
10.1

    
      	
               

               

               

               

              ASSET
      PURCHASE AGREEMENT

               

            
	
               

              by
      and between

               

              JOHN
      BORDYNUIK, INC.

               

              as
      Seller

               

              and

               

              310
      HOLDINGS, INC.

               

              as
      Purchaser

               

               

               

               

              June
      25, 2009

               

            

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    ASSET
PURCHASE AGREEMENT

     

    This
Agreement (“Agreement”) is entered into as of June 25, 2009, by and between 310
Holdings, Inc., a Nevada Corporation (the “Purchaser”), and John Bordynuik,
Inc., a Delaware corporation (the “Seller”).

     

    WHEREAS,
Seller is a business primarily centered around reading high volume legacy data
computer tapes (the “Business”);

     

    WHEREAS,
Seller wishes to sell to Purchaser and Purchaser wishes to purchase and assume
from Seller, certain assets with respect to the Business on the terms and
subject to the conditions set forth in this Agreement.

     

    NOW
THEREFORE, In consideration of the mutual covenants, agreements, representations
and warranties contained in this Agreement, the parties agree as
follows:

     

    ARTICLE
I

    PURCHASE AND SALE OF
ASSETS

     

    1.1      Sale and Transfer of
Assets.  On and subject to the terms and conditions set forth
in this Agreement, Seller agrees to sell, convey, transfer, assign and deliver
to Purchaser, and Purchaser agrees to purchase and acquire from Seller, free and
clear of any encumbrances, all of Seller’s right, title, and interest in and to
all of the assets of Seller as set forth on Exhibit A attached
hereto (“Purchased Assets”) at the Closing in consideration for the payment by
Purchaser of the Purchase Price as specified below in Section 1.3.

     

    1.2    
No Assumption of
Liabilities.  The Purchaser shall in no event assume or be
responsible for any liabilities, liens, security interests, claims, obligations
or encumbrances of Seller, contingent or otherwise.

     

    1.3    
Consideration.  Upon
the terms and subject to the satisfaction of the conditions contained in this
Agreement, in consideration of the aforesaid sale, assignment, transfer and
delivery of the Purchased Assets, Purchaser will pay or cause to be paid a
purchase price consisting of eight hundred nine thousand five hundred
ninety-three (809,593) shares of the Buyer’s common stock, par value $0.001 per
share (the “Common Stock”).

     

    

    ARTICLE
II

    REPRESENTATIONS AND
WARRANTIES OF SELLER

    

    Seller
represents and warrants to Purchaser that the statements contained in this
Article II are correct and complete as of the date hereof:

     

    2.1.     Due
Incorporation.  Seller is a corporation duly organized, validly
existing and in good standing under the laws of the jurisdiction of its
incorporation and has the requisite corporate power to own its properties and to
carry on its business as now being conducted.  Seller is duly
qualified as a foreign corporation to do business and is in good standing in
each jurisdiction where the nature of the business conducted or property owned
by it makes such qualification necessary, other than those jurisdictions in
which the failure to so qualify would not have a material adverse effect on the
business, operations or financial condition of Seller.

     

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

     

    2.2.     Authority;
Enforceability.  This Agreement and any other agreements
delivered together with this Agreement or in connection herewith have been duly
authorized, executed and delivered by Seller and are valid and binding
agreements enforceable in accordance with their terms, subject to bankruptcy,
insolvency, fraudulent transfer, reorganization, moratorium and similar laws of
general applicability relating to or affecting creditors' rights generally and
to general principles of equity; and Seller has full corporate power and
authority necessary to enter into this Agreement, and such other agreements
delivered together with this Agreement or in connection herewith and to perform
its obligations hereunder and under all other agreements entered into by Seller
relating hereto.

    

    2.3.     Approvals;
Consents.  Seller has, and on the Closing Date will have, the
right, power and authority to enter into this Agreement and to sell, transfer
and deliver the Purchased Assets and to perform all undertakings and obligations
hereunder.  No approval, authorization, consent, order or other action
of, or filing with, any third party, including without limitation, any public,
governmental, administrative or regulatory authority, agency or body
(collectively, “consents”), is required in connection with the execution,
delivery and/or performance of this Agreement by Seller or the consummation of
the transactions contemplated hereby.

     

    2.4.     Liens.  Seller
has good and marketable title to  the Purchased Assets and has full
power and authority to sell, assign and transfer to Purchaser all of the
Purchased Assets free and clear of restrictions on or conditions to transfer or
assignment, and free and clear of mortgages, liens, pledges, charges,
encumbrances, equities, claims, covenants, conditions, or
restrictions.  All of the Purchased Assets are in good operating
condition and repair, ordinary wear and tear excepted.

     

    2.5.    
Taxes.  Seller
has filed all federal, state, local, foreign or other tax returns which are
required Taxes to be filed by any of them or been approved for an extension of
same, and such returns are, to the best knowledge of Seller, true and
correct.  There is no material liability for the payment of any
federal, state, local, foreign or other taxes whatsoever (including any interest
or penalties) with respect to Seller except for which non-compliance would not
have a material adverse effect on the business, operations or financial
condition of Seller.

     

    2.6.     Applicable
Laws.  Seller has complied with all applicable laws, rules and
regulations of the City, County, State and federal government as required except
for which non-compliance would not have a material adverse effect on the
business, operations or financial condition of the Seller.

    

    2.7.     Material
Information.  No material fact regarding Seller has been
omitted which would reasonably affect a prudent investor’s decision to purchase
the assets being sold to Purchaser herein; and the information furnished by or
on behalf of Seller in connection with this Agreement and the transactions
contemplated hereby do not contain any untrue statement of a material fact, or
omit to state a material fact, necessary in order to make the statements made,
in light of the circumstances under which they were made, not
misleading.

     

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    
 

    2.8.     No
Brokers.  No broker, finder or intermediary has been employed
by or on behalf of Purchaser in connection with the transactions contemplated
hereby, and there is no such person entitled, as a result of Purchaser’s action,
to any fee or commission upon the consummation of the transactions contemplated
hereby.

    

    2.9.     Legal
Proceedings.  To the best knowledge of the Seller, there is no
(a) legal proceeding pending or threatened, against, involving or affecting the
Seller and/or any of its respective assets or rights, including the Purchased
Assets; (b) judgment, decree, injunction, rule, or order of any governmental
entity applicable to the Seller that has had or is reasonably likely to have,
either individually or in the aggregate, a Material Adverse Effect; (c) legal
proceeding pending or threatened, against the Seller that seeks to restrain,
enjoin or delay the consummation of this Agreement or any of the other
transactions contemplated by this Agreement or that seeks damages in connection
therewith; or (d) injunction, of any type.

     

    2.10.   Licenses; Compliance with
Regulatory Requirements.

     

      The
Seller holds all licenses, franchises, ordinances, authorizations, permits,
certificates, variances, exemptions, concessions, leases, rights of way,
easements, instruments, orders and approvals, domestic or foreign (collectively,
the “Licenses”) required for or which are material to the ownership of the
Purchased Assets. The Seller is in compliance with, and has conducted its
business so as to comply with, the terms of its respective Licenses and with all
applicable laws, rules, regulations, ordinances and codes (domestic or
foreign).  Without limiting the generality of the foregoing, the
Seller (i) has all Licenses of foreign, state and local governmental entities
required for the operation of the facilities being operated on the date hereof
by the Seller (the “Permits”), (ii) has duly and currently filed all reports and
other information required to be filed with any governmental entity in
connection with such Permits and (iii) is not in violation of any of such
Permits.    

     

     

    ARTICLE
III

    PURCHASER'S
REPRESENTATIONS

     

    Purchaser
hereby represents and warrants to Seller that the statements contained in this
Article III are correct and complete as of the date hereof:

     

    3.1.    Due
Incorporation.  Purchaser is a corporation duly organized,
validly existing and in good standing under the laws of the jurisdiction of its
incorporation and has the requisite corporate power to own its properties and to
carry on its business as now being conducted.  Purchaser is duly
qualified as a foreign corporation to do business and is in good standing in
each jurisdiction where the nature of the business conducted or property owned
by it makes such qualification necessary, other than those jurisdictions in
which the failure to so qualify would not have a material adverse effect on the
business, operations or financial condition of Purchaser or its
subsidiaries.

     

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

     

    3.2.     Authority;
Enforceability.  This Agreement and any other agreements
delivered together with this Agreement or in connection herewith have been duly
authorized, executed and delivered by Purchaser and are valid and binding
agreements enforceable in accordance with their terms, subject to bankruptcy,
insolvency, fraudulent transfer, reorganization, moratorium and similar laws of
general applicability relating to or affecting creditors' rights generally and
to general principles of equity; and Purchaser has full corporate power and
authority necessary to enter into this Agreement and such other agreements
delivered together with this Agreement or in connection herewith and to perform
its obligations hereunder and under all other agreements entered into by
Purchaser relating hereto.

     

    3.3.     No
Brokers.  No broker, finder or intermediary has been employed
by or on behalf of Purchaser in connection with the transactions contemplated
hereby, and there is no such person entitled, as a result of Purchaser’s action,
to any fee or commission upon the consummation of the transactions contemplated
hereby.

     

    3.4.     Valid
Issuance.  The Common Stock, when issued pursuant to this
Agreement, will be duly and validly authorized and issued, fully paid and
non-assessable. The issuance of the Securities to the Seller is exempt from the
registration requirements of the Securities Act of 1933, as amended (the
“Securities Act”), pursuant to an exemption provided by Section 4(2) and Rule
506 promulgated thereunder.

     

    ARTICLE
IV.

    THE
CLOSING

     

    4.1.     The
Closing.  The closing (“Closing”) of the transactions
contemplated by this Agreement shall take place at the offices of Anslow &
Jaclin, LLP on July 15, 2009 (“the Closing Date”).

     

    4.2      Seller's Obligations at
Closing.  At the Closing, Seller shall deliver or cause to be
delivered to Purchaser:

     

    4.2.1.
Instruments transferring to Purchaser all right, title and interest in and to
Purchased Assets, or such other forms as Purchaser may reasonably
request.

     

    4.2.2. Such
other items as may be reasonably necessary for the Closing to
occur.

     

    4.3.     Cooperation by
Seller.  Seller, at any time before or after the Closing Date,
will execute, acknowledge, and deliver any further assignments, conveyances, and
other assurances, documents, and instruments of transfer, reasonably requested
by Purchaser, and will take any other Seller consistent with the terms of this
Agreement that may reasonably be requested by Purchaser for the purpose of
assigning, transferring, granting, conveying, and confirming to Purchaser, or
reducing to possession, any or all property to be conveyed and transferred by
this Agreement.

     

    4.4.     Purchaser's Obligations at
Closing.  Purchaser will deliver or cause to be delivered the
required consideration; and such other items as may be reasonably necessary for
the Closing to occur.

    

    4.4.1.  a certificate
registered in the name of Seller representing the number of shares of Common
Stock to be issued to Seller.

     

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

     

     

    ARTICLE
V

    GENERAL

    

    5.1.     Indemnities.

    

    (a) Seller shall indemnify, defend and
hold Purchaser, each of the officers, agents and directors and current
shareholders of Purchaser as of the Closing Date, harmless against and in
respect of any and all claims, demands, losses, costs, expenses, obligations,
liabilities, damages, recoveries and deficiencies, including, without
limitation, reasonable attorneys' fees (collectively, “Losses”), that it shall
incur or suffer, which directly or indirectly arise out of, result from, or
relate to any breach, or failure to perform, any of Seller's representations,
warranties, covenants, or agreements in this Agreement or in any schedule,
certificate, exhibit, or other instrument furnished or to be furnished by Seller
under this Agreement.  The indemnification described herein shall also
apply in the event of an assertion against Purchaser, or the Purchased Assets,
by any person, entity, government or subdivision thereof, of any claim, demand,
penalty, fine, or tax accruing prior to the Closing.    The
indemnification provided for in this paragraph shall survive the Closing and
consummation of the transactions contemplated hereby and termination of this
Agreement.

    

    (b) Upon Notice to Seller specifying in
reasonable detail the basis therefore.  Purchaser may set off any
amount to which it may be entitled under this Article V against amounts
otherwise payable under this Agreement.  Neither the exercise nor the
failure to exercise such right of setoff shall limit Purchaser in any manner in
the enforcement of any other remedies that may be available to it.

    

    5.2.     Confidentiality.  Each
party hereto agrees with the other party that, unless and until the transactions
contemplated by this Agreement have been consummated, they and their
representatives will hold in strict confidence all data and information obtained
with respect to another party or any subsidiary thereof from any representative,
officer, director or employee, or from any books or records or from personal
inspection, of such other party, and shall not use such data or information or
disclose the same to others, except:  (i)  to the extent
such data is a matter of public knowledge or is required by law to be published;
and (ii)  to the extent that such data or information must be used or
disclosed in order to consummate the transactions contemplated by this
Agreement.

    

    5.3.     Transition.  Seller
shall cooperate and shall use best efforts to assist Purchaser in the smooth
transition of the ownership of the Purchased Assets and in the preservation for
Purchaser of the goodwill of Seller’s advertisers, customers, suppliers, and
others having business relations with Sellers and related to the Purchased
Assets.

     

    5.4.     Effect of
Heading.  The subject headings of the paragraphs and
subparagraphs of this Agreement are included for purposes of convenience only
and shall not affect the construction or interpretation of any of its
provisions.

     

    5.5.     Counterparts.  This
Agreement may be executed simultaneously in two or more counterparts, each of
which shall be deemed an original, but all of which together shall constitute
one and the same instrument.  Fax or PDF copies of signatures shall be
treated as originals for all purposes.

     

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

     

     

    5.6.     Schedules.  All
schedules referred to herein shall be deemed incorporated by reference in their
entirety as though fully set forth at the places to which they are
referred.  Unless otherwise stated, all references to schedules are
references to schedules to this Agreement.

     

    5.7.     Gender.  Wherever
appropriate in this Agreement, plural shall be deemed also to refer to the
singular, the neuter shall be deemed to refer to the masculine, and vice
versa.

     

    5.8.     Parties in
Interest.  Nothing in this Agreement whether express or
implied, is intended to confer any rights or remedies under or by reason of this
Agreement on any persons other than the parties to it and their respective
successors and assigns, nor is anything in this Agreement intended to relieve or
discharge the obligation or liability of any third persons to any party to this
Agreement, nor shall any provision give any third person any right of
subrogation or Seller over or against any party to this Agreement.

     

    5.9.     Assignment.  This
Agreement shall be binding on, and shall inure to the benefit of, the parties to
it and their respective heirs, legal representatives, successors and assigns;
provided, however, no party may assign any or all of its rights under this
Agreement without the prior written consent of the others.

     

    5.10.   Survival. All
representations, warrants and covenants contained in this Agreement shall
survive the Closing and remain in full force and effect until the third
anniversary of the Closing Date.

     

    5.11.   Preparation of
Agreement.  Each party acknowledges that:  (i) the
party had the advice of, or sufficient opportunity to obtain the advice of,
legal counsel separate and independent of legal counsel for any other party
hereto; (ii) the terms of the transactions contemplated by this Agreement are
fair and reasonable to such party; and (iii) such party has voluntarily entered
into the transactions contemplated by this Agreement without duress or
coercion.  Each party further acknowledges that such party was not
represented by the legal counsel of any other party hereto in connection with
the transactions contemplated by this Agreement, nor was he or it under any
belief or understanding that such legal counsel was representing his or its
interests.  Each party agrees that no conflict, omission or ambiguity
in this Agreement, or the interpretation thereof, shall be presumed, implied or
otherwise construed against any other party to this Agreement on the basis that
such party was responsible for drafting this Agreement.

     

    5.12.   Governing Law; Waiver of
Jury Trial.  All questions concerning the construction,
interpretation and validity of this Agreement shall be governed by and construed
and enforced in accordance with the domestic laws of the State of New York
without giving effect to any choice or conflict of law provision or rule
(whether in the State of New York or any other jurisdiction) that would cause
the application of the laws of any jurisdiction other than the State of New
York.  In furtherance of the foregoing, the internal law of the State
of New York will control the interpretation and construction of this Agreement,
even if under such jurisdiction's choice of law or conflict of law analysis, the
substantive law of some other jurisdiction would ordinarily or necessarily
apply.

     

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

     

    BECAUSE
DISPUTES ARISING IN CONNECTION WITH COMPLEX FINANCIAL TRANSACTIONS ARE MOST
QUICKLY AND ECONOMICALLY RESOLVED BY AN EXPERIENCED AND EXPERT PERSON AND THE
PARTIES WISH APPLICABLE LAWS TO APPLY (RATHER THAN ARBITRATION RULES), THE
PARTIES DESIRE THAT THEIR DISPUTES BE RESOLVED BY A JUDGE APPLYING SUCH
APPLICABLE LAWS.  THEREFORE, TO ACHIEVE THE BEST COMBINATION OF THE
BENEFITS OF THE JUDICIAL SYSTEM AND OF ARBITRATION, THE PARTIES HERETO WAIVE ALL
RIGHT TO TRIAL BY JURY IN ANY SELLER, SUIT OR PROCEEDING BROUGHT TO ENFORCE OR
DEFEND ANY RIGHTS OR REMEDIES UNDER THIS AGREEMENT OR ANY DOCUMENTS RELATED
HERETO

     

    .5.13.  Submission to
Jurisdiction.  Any legal action or proceeding with respect to
this Agreement must be brought in the courts of the State of New York or the
appropriate federal court located in New York and, by execution and delivery of
this Agreement, the parties hereby accept for themselves and in respect to their
property, generally and unconditionally, the jurisdiction of the aforesaid
courts.  The parties hereby irrevocably waive, in connection with any
such Seller or proceeding, any objection, including, without limitation, any
objection to the venue or based on the grounds of forum non-convenience, which
it may now or hereafter have to the bringing of any such Seller or proceeding in
such respective jurisdictions.

     

    5.14.   Injunctive
Relief.  The Parties agree that a breach of this Agreement may
cause Purchaser irreparable harm for which monetary damages are not
adequate.  In addition to all other available legal remedies,
Purchaser shall have the right to injunctive relief to enforce this
Agreement.

     

    5.15.   Severability.  It
is the desire and intent of the parties that the provisions of this Agreement be
enforced to the fullest extent permissible under the law and public policies
applied in each jurisdiction in which enforcement is
sought.  Accordingly, in the event that any provision of this
Agreement would be held in any jurisdiction to be invalid, prohibited or
unenforceable for any reason, such provision, as to such jurisdiction, shall be
ineffective, without invalidating the remaining provisions of this Agreement or
affecting the validity or enforceability of such provision in any
jurisdiction.  Notwithstanding the foregoing, if such provision could
be more narrowly drawn so as not to be invalid, prohibited or unenforceable in
such jurisdiction, it shall, as to such jurisdiction, be so narrowly drawn,
without invalidating the remaining provisions of this Agreement or affecting the
validity or enforceability of such provision in any other
jurisdiction.

     

    5.16.  Expenses.   Each
of Seller and Purchaser will bear its own costs and expenses (including, without
limitation, fees and expenses of attorneys, accountants, investment bankers and
other advisors) incurred in connection with this Agreement and the transactions
contemplated hereby.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    

     

    5.17.   Notices.  Any
notices or other communications required or permitted hereunder shall be
sufficiently given if personally delivered to it or sent by registered mail or
certified mail, postage prepaid, or by facsimile addressed as
follows:

    

    If to
Seller:

    John Bordynuik, Inc.

    Attn:                      John
Bordynuik

    4536 Portage Road

    Niagara Falls, Ontario Canada
L2E6A8

    Tel: (905) 354-7222

    Fax: (   )
-

    

    With a copy
to:

    Anslow
& Jaclin, LLP

    Attn:
Gregg E. Jaclin, Esq.

    195 Route
9 South, Suite 204

    Manalapan,
New Jersey 07726

    Tel:
(732) 409-1212

    Fax:
(732) 577-1188

     

    If to
Purchaser:

    310
Holdings, Inc.

    Attn:
John Bordynuik

    4536
Portage Road

    Niagara
Falls, Ontario Canada L2E 6A8

    Tel:
(289) 668-7222

    Fax:
(   ) ___-___

    

    or such
other addresses as shall be furnished in writing by any party in the manner for
giving notices hereunder, and any such notice or communication shall be deemed
to have been given as of  the date so delivered, mailed or
faxed.

     

    5.18.   Entire Agreement;
Modification; Waiver.  This Agreement and the exhibits attached
hereto constitute the entire agreement between the parties pertaining to the
subject matter contained in it and supersedes all prior and contemporaneous
agreements, representations and understandings of the parties.  No
supplement, modification, or amendment of this Agreement shall be binding unless
executed in writing by all parties.  No waiver of any of the
provisions of this Agreement shall be deemed, or shall constitute, a waiver of
any other provision, whether or not similar, nor shall any waiver constitute a
continuing waiver.  No waiver shall be binding unless executed in
writing by the party making the waiver.

     

     [Signature
page follows]

     

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    
 

     

    IN WITNESS WHEREOF the parties
have duly executed this Asset Purchase Agreement as of the date first written
above.

    
      	
               

              “Seller”

               

              JOHN
      BORDYNUIK, INC.

               

               

              By:                                                 
       
                  
                                                                     

              Name:

              Title:

            
	 
      
	 
      
	
              “Purchaser”

               

              310
      HOLDINGS, INC.

               

               

               

              By:                                                            
                                                       

              Name:

              Title:  President,
      Chief Executive Officer

            

    

    

    

    

    

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    

    

     

    

    EXHIBIT
A

    

    PURCHASED
ASSETS

    

    
      
        
          	
                  Equipment

                	
                  $6,267

                
	
                  Office
      Furniture & Equipment

                	
                  $57,942

                
	
                  Telephone
      System

                	
                  $7,524

                
	
                  Computer
      Software

                	
                  $1,991

                
	
                  Tape
      Reading Equipment

                	
                  $259,511

                
	
                  Tape
      Ovens

                	
                  $6,753

                
	
                  Drive
      Cooling System

                	
                  $1,423

                
	
                  Moisture
      Control Device

                	
                  $4,389

                
	
                  Tools

                	
                  $3,297

                
	
                  Mobile
      Data Recovery Unit

                	
                  $120,091

                
	
                  Liftruck

                	
                  $8,473

                
	 
      	
                  $477,600

                

        

      

    

    

    

    

    11ex4_4.htm

    Exhibit
4.4

    

    Non-Standardized
401(k) Profit Sharing
Plan             

    

     

    ADOPTION
AGREEMENT FOR

    

    WYSTAR
GLOBAL RETIREMENT SOLUTIONS

    

    NON-STANDARDIZED
401(K) PROFIT SHARING

    PLAN
AND TRUST

     

    

    The
undersigned Employer adopts WySTAR Global Retirement Solutions Prototype
Non-Standardized 401(k) Profit Sharing Plan and Trust and elects the following
provisions:

    

    
      	
              CAUTION:

            	
              Failure
      to properly fill out this Adoption Agreement may result in
      disqualification of the Plan.

            

    

    

    EMPLOYER
INFORMATION

    (An
amendment to the Adoption Agreement is not needed solely to reflect a change in
the information in this Employer Information Section.)

    

    
      
        	
                1.

              	
                EMPLOYER’S
      NAME. ADDRESS AND TELEPHONE NUMBER

              
	 
      	
                Name:

              	
                The
      Talbots Group, LP 

              
	 
      	 
      	 
      
	 
      	
                Address:

              	
                One
      Talbots Drive  

              
	 
      	 
      	
                Street

              	 
      	 
      
	 
      	 
      	
                Hingham

              	 
      	
                Massachusetts

              	 
      	
                02043

              
	 
      	 
      	
                City

              	 
      	
                State

              	 
      	
                Zip

              
	 
      	
                Telephone:

              	
                 781-749-7600

              	 
      	 
      	 
      

      

    

    

    
      
        
          	
                  2.

                	
                  EMPLOYER’S
      TAXPAYER IDENTIFICATION NUMBER     

                	
                  XXXX  
      

                	 
      	 
      

        

      

    

    

    
      	
              3.

            	
              TYPE
      OF ENTITY

            
	 
      	
              a.

            	
              [   ]

            	
              Corporation
      (including Tax-exempt or Non-profit Corporation)

            	 
      	 
      	 
      
	 
      	
              b.

            	
              [   ]

            	
              Professional
      Service Corporation

            	 
      	 
      	 
      
	 
      	
              c.

            	
              [   ]

            	
              S
      Corporation

            	 
      	 
      	 
      
	 
      	
              d.

            	
              [   ]

            	
              Limited
      Liability Company that is taxed as:

            	 
      	 
      	 
      
	 
      	 
      	 
      	
              1.

            	
              [   ]

            	
              a
      partnership or sole proprietorship

            	 
      	 
      	 
      
	 
      	 
      	 
      	
              2.

            	
              [   ]

            	
              a
      Corporation

            	 
      	 
      	 
      
	 
      	 
      	 
      	
              3.

            	
              [   ]

            	
              an
      S Corporation

            	 
      	 
      	 
      
	 
      	
              e.

            	
              [   ]

            	
              Sole
      Proprietorship

            	 
      	 
      	 
      
	 
      	
              f.

            	
              [X]

            	
              Partnership
      (including Limited Liability)

            	 
      	 
      	 
      
	 
      	
              g.

            	
              [   ]

            	
              Other:
      ________________________________________________

            	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	
              AND,
      the Employer is a member of (select all that apply):

            	 
      	 
      	 
      
	 
      	
              h.

            	
              [X]

            	
              a
      controlled group

            	 
      	 
      	 
      
	 
      	
              i.

            	
              [   ]

            	
              an
      affiliated service group

            	 
      	 
      	 
      

    

    

    
      
        
          
            
              	
                      4.

                    	
                      EMPLOYER
      FISCAL YEAR means the 12 consecutive month period:

                    
	 
      	
                      Beginning
      on

                    	 
      	
                      January
      1st

                    	
                       (e.g.,
      January 1st)

                    
	 
      	 
      	 
      	
                      month

                    	
                      day

                    	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	
                      and
      ending on

                    	 
      	
                      December
      31st

                    	 
      	 
      	 
      
	 
      	 
      	 
      	
                      month

                    	
                      day

                    	 
      	 
      	 
      

            

          

        

      

    

    

    PLAN
INFORMATION

    (An
amendment to the Adoption Agreement is not needed solely to reflect a change in
the information in Questions 9. through 11.)

    

    
      	
              5.

            	
              PLAN
      NAME:

            
	 
      	
              THE
      J. JILL GROUP 401(k) PLAN

            

    

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    
      	
              6.

            	
              EFFECTIVE
      DATE

            

    

    
      	
               
      

            	
              a.

            	
              [   ]

            	
              This
      is a new Plan effective as of __________ (hereinafter called the
      “Effective Date”).

            

    

    
      	
               
      

            	
              b.

            	
              [X]

            	
              This
      is an amendment and restatement of a previously established qualified plan
      of the Employer which was originally effective January 1, 1994
      (hereinafter called the “Effective Date”). The effective date of this
      amendment and restatement is January 2,
      2008.

            

    

    
      	
               
      

            	
              c.

            	
              [   ]

            	
              FOR
      GUST RESTATEMENTS: This is an amendment and restatement of a previously
      established qualified plan of the Employer to bring the Plan into
      compliance with GUST (GATT, USERRA, SBJPA and TRA ‘97). The original Plan
      effective date was _______ (hereinafter called the “Effective Date’).
      Except as specifically provided in the Plan, the effective date of this
      amendment and restatement is _____________.

              
                (May
      enter a restatement date that is the first day of the current P]an Year.
      The Plan contains appropriate retroactive effective dates with respect to
      provisions for the appropriate
laws.)

              

            

    

    
      
      

    

     

    
      
        
          
            
              
                
                  
                    
                      
                        	
                                7.

                              	
                                PLAN
      YEAR means the 12 consecutive month period:

                              
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	
                                Beginning
      on

                              	 
      	
                                January
      1st

                              	 
      	
                                (e.g.,
      January 1st)

                              	 
      
	 
      	 
      	 
      	
                                month

                              	
                                day

                              	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	
                                and
      ending on

                              	 
      	
                                December
      31st

                              	 
      	 
      	 
      
	 
      	 
      	 
      	
                                month

                              	
                                day

                              	 
      	 
      	 
      

                      

                    

                    

                    
                      
                        
                          	 
      	
                                  EXCEPT
      that there will be a Short Plan Year:

                                
	 
      	
                                  a.

                                	
                                  [X]

                                	
                                  N/A

                                	 
      	 
      	 
      
	 
      	
                                  b.

                                	
                                  [   ]

                                	
                                  Beginning
      on

                                	 
      	
                                   (e.g.,
      July 1, 2000)

                                	 
      
	 
      	 
      	 
      	 
      	
                                  month

                                	
                                  day,
      year

                                	 
      	 
      
	 
      	 
      	 
      	
                                  and
      ending on

                                	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	
                                  month

                                	
                                  day,
      year

                                	 
      	 
      

                        

                      

                    

                     

                  

                

              

            

          

        

      

    

    
      	
              8.

            	
              VALUATION
      DATE means:

            

    

    
      
        	 	
                a.

              	
                [X]

              	
                Every
      day that the Trustee, any transfer agent appointed by the Trustee or the
      Employer, and any stock exchange used by such agent are open for business
      (daily valuation).

              

      

    

    
      	
               
      

            	
              b.

            	
              [   ]

            	
              The
      last day of each Plan Year.

            

    

    
      	
               
      

            	
              c.

            	
              [   ]

            	
              The
      last day of each Plan Year half
(semi-annual).

            

    

    
      	
               
      

            	
              d.

            	
              [   ]

            	
              The
      last day of each Plan Year quarter.

            

    

    
      	
               
      

            	
              e.

            	
              [   ]

            	
              Other
      (specify day or dates): _________________ (must be at least once each Plan
      Year).

            

    

    

    
      	
              9.

            	
              PLAN
      NUMBER assigned by the Employer

            

    

    
      	
               
      

            	
              a.

            	
              [X]

            	
              001

            

    

    
      	
               
      

            	
              b.

            	
              [   ]

            	
              002

            

    

    
      
        	
                 
      

              	
                c.

              	
                [   ]

              	
                003

              
	 	
                d.

              	
                [   ]

              	
                Other:______________________________________________

              

      

    

    
      
      

    

    

    
      	
              10.

            	
              TRUSTEE(S):

            

    

    
      
        	
                 
      

              	
                a.

              	
                [   ]

              	
                Individual
      Trustee(s) who serve as discretionary Trustee(s) over assets not subject
      to control by a corporate Trustee.

              
	 	 	 	 
	 	 	 	Name(s)	 	Title(s)
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 

      

    

     

         
Address and Telephone number

    
      	
               
      

            	
              1.

            	
              [   ]

            	
              Use
      Employer address and telephone
number.

            

    

    
      	
               
      

            	
              2.

            	
              [   ]

            	
              Use
      address and telephone number below:

            

    

    
      
        	  	
                Address:

              	    
      	 
      
	 
      	 
      	 
      	
                Street

              
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	
                City

              	 
      	
                State

              	 
      	
                Zip

              

      

    

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    
      
        	
                 
      

              	
                b.

              	
                [X]

              	
                Corporate
      Trustee

              

      

      

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                	 
      	
                                        Name:

                                      	 
      	
                                        Wachovia
      Bank, NA.

                                      
	 
      	 
      	 
      	 
      
	 
      	
                                        Address:

                                      	 
      	
                                        1525
      West W.T. Harris Blvd.

                                      
	 
      	 
      	 
      	
                                        City

                                      	 
      	
                                            
      Street

                                      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	
                                        Charlotte

                                      	 
      	
                                        North
      Carolina

                                      	 
      	 
      	
                                        28288-1176

                                      
	 
      	 
      	 
      	
                                        City

                                      	 
      	
                                            
      State

                                      	 
      	
                                        Zip

                                      
	 
      	
                                        Telephone:

                                      	 
      	
                                        800-669-5812

                                      

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

      

      
        	 
      	
                AND, the corporate
      Trustee shall serve as:

              
	 
      	
                1.

              	
                [X]

              	
                a
      directed (nondiscretionary) Trustee over all Plan assets except for the
      following:

              
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	
                N/A

              
	 
      	 
      	 
      	 
      
	 
      	
                2.

              	
                [   ]

              	
                a
      discretionary Trustee over all Plan assets except for the
      following:

              
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      

      

       

                     
AND, shall a separate trust agreement be used with this Plan?

      
        	
                 
      

              	
                c.

              	
                [X]

              	
                Yes

              

      

      
        	
                 
      

              	
                d.

              	
                [   ]

              	
                No

              

      

      
        	
                NOTE:        
      

              	
                If
      Yes is selected, an executed copy of the trust agreement between the
      Trustee and the Employer must be attached to this Plan. The Plan and trust
      agreement will be read and construed together. The responsibilities,
      rights and powers of the Trustee shall be those specified in the trust
      agreement.

              

      

      

      
        	
                11.

              	
                PLAN
      ADMINISTRATOR’S NAME, ADDRESS AND TELEPHONE NUMBER:

                
                  (If
      none is named, the Employer will become the
      Administrator.)

                

              

      

      
        
        

      

      
        	
                 
      

              	
                a.

              	
                [X]

              	
                Employer
      (Use Employer address and telephone
number).

              

      

      
        	
                 
      

              	
                b.

              	
                [   ]

              	
                Use
      name, address and telephone number
below:

              

      

      

      
        	 
      	
                Name:

              	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	
                Address:

              	 
      	 
      
	 
      	 
      	 
      	
                Street

              
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	
                City

              	 
      	
                                       State

              	 
      	
                Zip

              
	 
      	
                Telephone:

              	 
      	 
      

      

       

    

    
      	
              12.

            	
              CONSTRUCTION
      OF PLAN

            

    

    
      
        	
                 
      

              	
                This
      Plan shall be governed by the laws of the state or commonwealth where the
      Employer’s (or, in the case of a corporate Trustee, such Trustees)
      principal place of business is located unless another state or
      commonwealth is specified:

              
	 	 
	 	Massachusetts                                                                	                                                                                  
      

      

    

     

    
      ELIGIBILITY
REQUIREMENTS

       

      
        
          ELIGIBLE
EMPLOYEES (Plan Section 1.18)

        

      

    

    
      
      

    

    

    
      
      

    

    
      
      

    

    
      
        	
                13. 
      

              	
                ELIGIBLE
      EMPLOYEES (Plan Section 1.18)

                FOR
      ALL PURPOSES OF THE PLAN (EXCEPT AS ELECTED IN d. or e. BELOW FOR
      EMPLOYER

                CONTRIBUTIONS)
      means all Employees (including Leased Employees)
EXCEPT:

              
	 	
                NOTE:

              	
                If
      different exclusions apply to Elective Deferrals than to other Employer
      contributions, complete this part a.-h. for the Elective Deferral
      component of the Plan.

              

      

    

    
      
      

    

    
      	
               
      

            	
              a.

            	
              [   ]

            	
              N/A.
      No exclusions.

            

    

    
      	
               
      

            	
              b.

            	
              [X]

            	
              The
      following are excluded, except that if b.3. is selected, such Employees
      will be included (select all that
apply):

            

    

    
      	
               
      

            	
              1.

            	
              [   ]

            	
              Union
      Employees (as defined in Plan Section
1.18).

            

    

    
      	
               
      

            	
              2.

            	
              [   ]

            	
              Non-resident
      aliens (as defined in Plan Section
1.18).

            

    

    
      	
               
      

            	
              3.

            	
              [   ]

            	
              Employees
      who became Employees as the result of a “Code Section 410(b)(6)(C)
      transaction” (as defined in Plan Section
1.18).

            

    

    
      	
               
      

            	
              4.

            	
              [   ]

            	
              Salaried
      Employees

            

    

    
      	
               
      

            	
              5.

            	
              [   ]

            	
              Highly
      Compensated Employees

            

    

    
      	
               
      

            	
              6.

            	
              [X]

            	
              Leased
      Employees

            

    

    
      	
               
      

            	
              7.

            	
              [X]

            	
              Other:
      Employees who
      are not normally scheduled to work at least 500 hours during the plan year
      and who are not classified as part-time employees and Employees shall not
      include an individual who is employed by a Talbots brand business unit, as
      classified by the particular business
  unit.

            

    

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              HOWEVER,
      different exclusions will apply (select e. OR d. and/or
    e.):

            

    

    
      	
               
      

            	
              c.

            	
              [X]

            	
              N/A.
      The options elected in a.-b. above apply for all purposes of the
      Plan.

            

    

    
      	
               
      

            	
              d.

            	
              [   ]

            	
              For
      purposes of all Employer contributions (other than Elective Deferrals and
      matching contributions)...

            

    

    
      	
               
      

            	
              e.

            	
              [   ]

            	
              For
      purposes of Employer matching
contributions...

            

    

    

    
      	
               
      

            	
              IF
      d. OR e. IS SELECTED, the following exclusions apply for such purposes
      (select f. or g.):

            

    

    
      	
               
      

            	
              f.

            	
              [   ]

            	
              N/A.
      No exclusions.

            

    

    
      	
               
      

            	
              g.

            	
              [   ]

            	
              The
      following are excluded, except that if g.3. is selected, such Employees
      will be included (select all that
apply):

            

    

    
      	
               
      

            	
              1.

            	
              [   ]

            	
              Union
      Employees (as defined in Plan Section
1.18).

            

    

    
      	
               
      

            	
              2.

            	
              [   ]

            	
              Non-resident
      aliens (as defined in Plan Section
1.18).

            

    

    
      	
               
      

            	
              3.

            	
              [   ]

            	
              Employees
      who became Employees as the result of a “Code Section 4l0(b)(6)(C)
      transaction” (as defined in Plan Section
1.18).

            

    

    
      	
               
      

            	
              4.

            	
              [   ]

            	
              Salaried
      Employees

            

    

    
      	
               
      

            	
              5.

            	
              [   ]

            	
              Highly
      Compensated Employees

            

    

    
      	
               
      

            	
              6.

            	
              [   ]

            	
              Leased
      Employees

            

    

    
      	
               
      

            	
              7.

            	
              [   ]

            	
              Other:
      _____________

            

    

    

    
      
        	
                14.

              	
                THE
      FOLLOWING AFFILIATED EMPLOYER (Plan Section 1.6) will adopt this Plan as a
      Participating Employer (if there is more than one, or if Affiliated
      Employers adopt this Plan after the date the Adoption Agreement is
      executed, attach a list to this Adoption Agreement of such Affiliated
      Employers including their names, addresses, taxpayer identification
      numbers and types of entities):

              
	 	NOTE:    
      Employees
      of an Affiliated Employer that does not adopt this Adoption Agreement as a
      Participating Employer shall not be Eligible Employees. This Plan could
      violate the Code Section 410(b) coverage rules if all Affiliated Employers
      do not adopt the
Plan.

      

    

    
      
      

    

    
      	
               
      

            	
              a.

            	
              [   ]

            	
              N/A

            

    

    
      
        	
                 
      

              	
                b.

              	
                [X]

              	Name
      of First Affiliated Employer:  	
                J. Jill, LLC

              	
                 

              

      

    

    

    
      
        
          
            	 
      	 
      	
                    Address:

                  	 
      	
                    One
      Talbots Drive    

                  
	 
      	 
      	 
      	 
      	
                    Street

                  
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	
                    Hingham

                  	 
      	
                    Massachusetts

                  	 
      	
                    02043    

                  
	 
      	 
      	 
      	 
      	
                    City

                  	 
      	
                    State

                  	 
      	
                    Zip

                  
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                    Telephone:

                  	 
      	
                    781-749-7600

                  	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                    Taxpayer
      Identification Number:

                  	
                    XXXX

                  	 
      	 
      	 
      	 
      	 
      

          

        

      

    

    

    
      	
               
      

            	
              AND,
      the Affiliated Employer is:

            

    

    
      	
               
      

            	
              c.

            	
              [   ]

            	
              Corporation
      (including Tax-exempt, Non-profit or Professional Service
      Corporation)

            

    

    
      	
               
      

            	
              d.

            	
              [   ]

            	
              S
      Corporation

            

    

    
      	
               
      

            	
              e.

            	
              [X]

            	
              Limited
      Liability Company that is taxed as:

            

    

    
      	
               
      

            	
              1.

            	
              [   ]

            	
              a
      partnership or sole proprietorship

            

    

    
      	
               
      

            	
              2.

            	
              [X]

            	
              a
      Corporation

            

    

    
      	
               
      

            	
              3.

            	
              [   ]

            	
              an
      S Corporation

            

    

    
      
        	
                 
      

              	
                f.

              	
                [   ]

              	
                Sole
      Proprietorship

              
	 	
                g.

              	
                [   ]

              	
                Partnership
      (including Limited Liability)

              
	 	
                h.

              	
                [   ]

              	
                Other:__________________________________________________________________________________________________________________________________________.

              

      

    

    
      
      

    

    
      
      

    

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    
      
        	
                15.

              	
                CONDITIONS
      OF ELIGIBILITY (Plan Section 3.1)

              
	 	Any
      Eligible Employee will be eligible to participate in the Plan upon
      satisfaction of the following:
	 	NOTE:	
                If
      the Year(s) of Service selected is or includes a fractional year, an
      Employee will not be required to complete any specified number of Hours of
      Service to receive credit for such fractional year. If expressed in months
      of service, an Employee will not be required to complete any specified
      number of Hours of Service in a particular month, unless elected m b.4. or
      i.4. below.

              

      

    

    
      
      

    

    
      
      

    

    

    
      
        	
                 
      

              	
                ELIGIBILITY
      FOR ALL PURPOSES OF THE PLAN (EXCEPT AS ELECTED 1N e.-k. BELOW FOR
      EMPLOYER CONTRIBUTIONS) (select a. or all that apply of b., c., and
      d.):

              
	 	
                NOTE:

              	
                If
      different conditions apply to Elective Deferrals than to other Employer
      contributions, complete this part a.-d. for the Elective Deferral
      component of the Plan.

              

      

    

    
      
      

    

    
      	
               
      

            	
              a.

            	
              [   ]

            	
              No
      age or service required. (Go to e.-g.
below)

            

    

    
      	
               
      

            	
              b.

            	
              [X]

            	
              Completion
      of the following service requirement which is based on Years of Service
      (or Periods of Service if the Elapsed Time Method is
    elected):

            

    

    
      	
               
      

            	
              1.

            	
              [X]

            	
              No
      service requirement

            

    

    
      	
               
      

            	
              2.

            	
              [   ]

            	
              1/2
      Year of Service or Period of
Service

            

    

    
      	
               
      

            	
              3.

            	
              [   ]

            	
              Year
      of Service or Period of Service

            

    

    
      	
               
      

            	
              4.

            	
              [   ]

            	
              __________
      (not to exceed 1,000) Hours of Service within _____ (not to exceed 12)
      months from the

            

    

    
      	
               
      

            	
              Eligible
      Employee’s employment commencement date. If an Employee does not complete
      the stated Hours of Service during the specified time period, the Employee
      is subject to the Year of Service requirement in b.3.
    above.

            

    

    
      	
               
      

            	
              5.

            	
              [   ]

            	
              Other:
      ________________________________________________________________________________.

              (may
      not exceed one (1) Year of Service or Period of
  Service)

            

    

    
      	
               
      

            	
              c.

            	
              [X]

            	
              Attainment
      of age:

            

    

    
      	
               
      

            	
              1.

            	
              [   ]

            	
              No
      age requirement

            

    

    
      	
               
      

            	
              2.

            	
              [   ]

            	
              20
      1/2

            

    

    
      	
               
      

            	
              3.

            	
              [   ]

            	
              21

            

    

    
      	
               
      

            	
              4.

            	
              [X]

            	
              Other:  
      18    (may not exceed
21)

            

    

    
      	
               
      

            	
              d.

            	
              [   ]

            	
              The
      service and/or age requirements specified above shall be waived with
      respect to any Eligible Employee who was employed on _____ and such
      Eligible Employee shall enter the Plan as of such date.

               

              The requirements to be waived are (select
      one or both):

            

    

    
      	
               
      

            	
              1.

            	
              [   ]

            	
              service
      requirement (will let part-time Eligible Employees in
  Plan)

            

    

    
      	
               
      

            	
              2.

            	
              [   ]

            	
              age
      requirement

            

    

    

    
      	
               
      

            	
              HOWEVER,
      DIFFERENT ELIGIBILITY CONDITIONS WILL APPLY (select e. OR f. and/or
      g.):

            

    

    
      	
               
      

            	
              e.

            	
              [   ]

            	
              N/A.
      The options elected in a.-d. above apply for all purposes of the
      Plan.

            

    

    
      	
               
      

            	
              f.

            	
              [   ]

            	
              For
      purposes of all Employer contributions (other than Elective Deferrals and
      matching contributions)...

            

    

    
      	
               
      

            	
              g.

            	
              [X]

            	
              For
      purposes of Employer matching
contributions...

            

    

    

    
      	
               
      

            	
              If
      f. OR g. IS SELECTED, the following eligibility conditions apply for such
      purposes:

            

    

    
      	
               
      

            	
              h.

            	
              [   ]

            	
              No
      age or service requirements

            

    

    
      	
               
      

            	
              i.

            	
              [X]

            	
              Completion
      of the following service requirement which is based on Years of Service
      (or Periods of Service if the Elapsed Time Method is
    elected):

            

    

    
      	
               
      

            	
              1.

            	
              [   ]

            	
              No
      service requirement

            

    

    
      	
               
      

            	
              2.

            	
              [   ]

            	
              1/2
      Year of Service or Period of
Service

            

    

    
      	
               
      

            	
              3.

            	
              [X]

            	
              I
      Year of Service or Period of
Service

            

    

    
      	
               
      

            	
              4.

            	
              [   ]

            	
              ______
      (not to exceed 1,000) Hours of Service within _______ (not to exceed 12)
      months from the Eligible Employee’s employment commencement date. If an
      Employee does not complete the stated Hours of’ Service during the
      specified time period, the Employee is subject to the Year of Service
      requirement in i.3. above.

            

    

    
      
        	
                 
      

              	
                5.

              	
                [   ]

              	
                1
      1/2 Years of Service or Periods of Service

              
	 	
                6.

              	
                [   ]

              	
                2
      Years of Service or Periods of Service

              
	 	
                7.

              	
                [   ]

              	
                Other:
      ____________________________________________________________________________________________________________________________________

                
                  (may
      not exceed two (2) Years of Service or Periods of
      Service)

                

              

      

    

    
      
      

    

    
      
      

    

    
      	
               
      

            	
              NOTE:

            	
              If
      more than one (1) Year of Service is elected 100% immediate vesting is
      required.

            

    

    
      	
               
      

            	
              j.

            	
              [X]

            	
              Attainment
      of age:

            

    

    
      	
               
      

            	
              1.

            	
              [   ]

            	
              No
      age requirement

            

    

    
      	
               
      

            	
              2.

            	
              [   ]

            	
              20
      1/2

            

    

    
      	
               
      

            	
              3.

            	
              [   ]

            	
              21

            

    

    
      	
               
      

            	
              4.

            	
              [X]

            	
              Other:   18  (may
      not exceed 21)

            

    

    

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    

    
      	
               
      

            	
              k.

            	
              [X]

            	
              The
      service and/or age requirements specified above shall be waived with
      respect to any Eligible Employee who was employed on January 1, 2008
      and such Eligible Employee shall enter the Plan as of such
      date.

               

              
                The
      requirements to be waived are (select one or
  both):

              

            

    

    
      	
               
      

            	
              1.

            	
              [X]

            	
              service
      requirement (will let pan-time Eligible Employees in
  Plan)

            

    

    
      	
               
      

            	
              2.

            	
              [   ]

            	
              age
      requirement

            

    

    

    
      
        	
                16.

              	
                EFFECTIVE
      DATE OF PARTICIPATION (Plan Section 3.2)

                
                  An
      Eligible Employee who has satisfied the eligibility requirements will
      become a Participant for all purposes of the Plan (except as elected in
      g.-p. below for Employer
contributions):

                

              

      

    

    
      
      

    

    
      
        	 	
                NOTE:

              	
                If
      different entry dates apply to Elective Deferrals than to other Employer
      contributions, complete this part a-f. for the Elective Deferral component
      of the Plan.

              

      

    

    
      	
               
      

            	
              a.

            	
              [X]

            	
              the
      day on which such requirements are
satisfied.

            

    

    
      	
               
      

            	
              b.

            	
              [   ]

            	
              the
      first day of the month coinciding with or next following the date on which
      such requirements are satisfied.

            

    

    
      	
               
      

            	
              c.

            	
              [   ]

            	
              the
      first day of the Plan Year quarter coinciding with or next following the
      date on which such requirements are
satisfied.

            

    

    
      	
               
      

            	
              d.

            	
              [   ]

            	
              the
      earlier of the first day of the seventh month or the first day of the Plan
      Year coinciding with or next following the date on which such requirements
      are satisfied.

            

    

    
      
        	
                 
      

              	
                e.

              	
                [   ]

              	
                the
      first day of the Plan Year next following the date on which such
      requirements are satisfied. (Eligibility must be 1/2 Year of Service (or
      Period of Service) or less and age must be 20 1/2 or
  less.)

              
	 	
                f.

              	
                [   ]

              	
                other:
                                                                                                                                                                                    ,

                
                  provided
      that an Eligible Employee who has satisfied the maximum age (21) and
      service requirements (one (1) Year or Period of Service) and who is
      otherwise entitled to participate, shall commence participation no later
      than the earlier of(a) 6 months after such requirements are satisfied, or
      (b) the first day of the first Plan Year after such requirements are
      satisfied, unless the Employee separates from service before such
      participation date.

                

              

      

    

    
      
      

    

    
      
      

    

    

    
      	
               
      

            	
              HOWEVER,
      different entry dates will apply (select g. OR h. and/or
    j):

            

    

    
      	
               
      

            	
              g.

            	
              [X]

            	
              N/A.
      The options elected in a-f. above apply for all purposes of the
      Plan,

            

    

    
      	
               
      

            	
              h.

            	
              [   ]

            	
              For
      purposes of all Employer contributions (other than Elective Deferrals and
      matching contributions)...

            

    

    
      	
               
      

            	
              i.

            	
              [   ]

            	
              For
      purposes of Employer matching
contributions...

            

    

    

    
      	
               
      

            	
              IF
      h. OR i. IS SELECTED, the following entry dates apply for such purposes
      (select one):

            

    

    
      	
               
      

            	
              j.

            	
              [   ]

            	
              the
      first day of the month coinciding with or next following the date on which
      such requirements are satisfied.

            

    

    
      
      

    

    
      	
               
      

            	
              k.

            	
              [   ]

            	
              the
      first day of the Plan Year quarter coinciding with or next following the
      date on which such requirements are
satisfied.

            

    

    
      	
               
      

            	
              l.

            	
              [   ]

            	
              the
      first day of the Plan Year in which such requirements are
      satisfied.

            

    

    
      	
               
      

            	
              m.

            	
              [   ]

            	
              the
      first day of the Plan Year in which such Requirements are satisfied, if
      such requirements are satisfied in the first 6 months of the Plan Year, or
      as of the first day of the next succeeding Plan Year if such requirements
      are satisfied in the last 6 months of the Plan
  Year.

            

    

    
      
        	
                 
      

              	
                n.

              	
                [   ]

              	
                the
      earlier of the first day of the seventh month or the first day of the Plan
      Year coinciding with or next following the date on which such requirements
      are satisfied.

              
	 	
                o.

              	
                [   ]

              	
                the
      first day of the Plan Year next following the date on which such
      requirements are satisfied. (Eligibility must be 1/2 (or 11/2 if 100%
      immediate Vesting is selected) Year of Service (or Period of Service) or
      less and age must be 20 1/2 or less.)

              
	 	
                p.

              	
                [   ]

              	
                Other:____________________________________________________________________________________________________________________________________
      

                  provided
      that an Eligible Employee who has satisfied the maximum age (21) and
      service requirements (one (1) Year or Period of Service (or more than one
      (1) year if full and immediate vesting)) and who is otherwise entitled to
      participate, shall commence participation no later than the earlier of (a)
      6 months after such requirements are satisfied, or (b) the first day of
      the first Plan Year after such requirements are satisfied, unless the
      Employee separates from service before such participation
      date.

                

              

      

    

    
      
      

    

    
      
      

    

    
      
      

    

     

    
      SERVICE

    

    
      
      

    

    

    
      	
              17.

            	
              RECOGNITION
      OF SERVICE WITH PREDECESSOR EMPLOYER (Plan Sections 1.57 and
      1.85)

            

    

    
      	
               
      

            	
              a.

            	
              [X]

            	
              No
      service with a predecessor Employer shall be
  recognized.

            

    

    
      	
               
      

            	
              b.

            	
              [   ]

            	
              Service
      with ________ will be recognized except as follows (select 1. or all that
      apply of 2. through 4.):

            

    

    
      	
               
      

            	
              1.

            	
              [   ]

            	
              N/A,
      no limitations.

            

    

    
      	
               
      

            	
              2.

            	
              [   ]

            	
              service
      will only be recognized for vesting
purposes.

            

    

    
      	
               
      

            	
              3.

            	
              [   ]

            	
              service
      will only be recognized for eligibility
  purposes.

            

    

    
      	
               
      

            	
              4.

            	
              [   ]

            	
              service
      prior to _______ will not be
recognized.

            

    

    
      	
               
      

            	
              NOTE:

            	
              If
      the predecessor Employer maintained this qualified Plan, then Years of
      Service (and/or Periods of Service) with such predecessor Employer shall
      be recognized pursuant to Plan Sections 1.57 and 1.85 and b.1 will
      apply.

            

    

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    
      
        	
                18.

              	
                SERVICE
      CREDITING METHOD (Plan Sections 1.57 and 1.85)

              
	 	 
	 	 

      

    

    
      	
                              
      NOTE:

            	
              If
      no elections are made in this Section, then the Hours of Service Method
      will be used and the provisions set forth in the definition of Year of
      Service in Plan Section 1.85 will
apply.

            

    

    
      	
               
      

            	
              ELAPSED
      TIME METHOD shall be used for the following purposes (select all that
      apply’):

            

    

    
      	
               
      

            	
              a.

            	
              [   ]

            	
              N/A.
      Plan only uses the Hours of Service
Method.

            

    

    
      	
               
      

            	
              b.

            	
              [X]

            	
              all
      purposes. (If selected, skip to Question
19.)

            

    

    
      	
               
      

            	
              e.

            	
              [   ]

            	
              eligibility
      to participate.

            

    

    
      	
               
      

            	
              d.

            	
              [   ]

            	
              vesting.

            

    

    
      	
               
      

            	
              e.

            	
              [   ]

            	
              sharing
      in allocations or contributions.

            

    

    

    
      	
               
      

            	
              HOURS
      OF SERVICE METHOD shall be used for the following purposes (select all
      that apply):

            

    

    
      	
               
      

            	
              f.

            	
              [   ]

            	
              N/A.  Plan
      only uses the Elapsed Time Method.

            

    

    
      	
               
      

            	
              g.

            	
              [   ]

            	
              Eligibility
      to participate in the Plan.  The eligibility computation period
      after the initial eligibility computation period
  shall...

            

    

    
      	
               
      

            	
              1.

            	
              [   ]

            	
              shift
      to the Plan Year after the initial computation
  period.

            

    

    
      	
               
      

            	
              2.

            	
              [   ]

            	
              be
      based on the date an Employee first performs an Hour of Service (initial
      computation period) and subsequent computation periods shall be based on
      each anniversary date thereof.

            

    

    
      	
               
      

            	
              h.

            	
              [   ]

            	
              vesting.
      The vesting computation period shall
be...

            

    

    
      	
               
      

            	
              1.

            	
              [   ]

            	
              the
      Plan Year.

            

    

    
      	
               
      

            	
              2.

            	
              [   ]

            	
              the
      date an Employee first performs an Hour of Service and each anniversary
      thereof.

            

    

    
      	
               
      

            	
              i.

            	
              [   ]

            	
              sharing
      in allocations or contributions (the computation period shall be the Plan
      Year).

            

    

    

    
      	
               
      

            	
              AND,
      IF THE HOURS OF SERVICE METHOD IS BEING USED, the Hours of Service will be
      determined on the basis of the method selected below. Only one method may
      be selected. The method selected below will be applied to (select j or
      k.):

            

    

    
      	
               
      

            	
              j.

            	
              [   ]

            	
              all
      Employees.

            

    

    
      	
               
      

            	
              k.

            	
              [   ]

            	
              salaried
      Employees only (for hourly Employees, actual Hours of Service will be
      used).

            

    

    

    
      	
               
      

            	
              ON
      THE BASIS OF:

            

    

    
      	
               
      

            	
              l.

            	
              [   ]

            	
              actual
      hours for which an Employee is paid or entitled to
  payment.

            

    

    
      	
               
      

            	
              m.

            	
              [   ]

            	
              days
      worked. An Employee will be credited with ten (10) Hours of Service if
      under the Plan such Employee would be credited with at least one (1) Hour
      of Service during the day.

            

    

    
      	
               
      

            	
              n.

            	
              [   ]

            	
              weeks
      worked. An Employee will be credited with forty-five (45) Hours of Service
      if under the Plan such Employee would be credited with at least one (1)
      Hour of Service during the week.

            

    

    
      	
               
      

            	
              o.

            	
              [   ]

            	
              semi-monthly
      payroll periods worked. An Employee will be credited with ninety-live (95)
      Hours of Service if under the Plan such Employee would be credited with at
      least one (1) Hour of Service during the semi-monthly payroll
      period.

            

    

    
      	
               
      

            	
              p.

            	
              [   ]

            	
              months
      worked. An Employee will be credited with one hundred ninety (190) Hours
      of Service if under the Plan such Employee would be credited with at least
      one (1) Hour of Service during the
month.

            

    

    

    
      	
               
      

            	
              AND,
      a Year of Service means the applicable computation period during which an
      Employee has completed at least:

            

    

    
      	
               
      

            	
              q.

            	
              [   ]

            	
              _______
      (may not be more than 1,000) Hours of Service (if left blank, the Plan
      will use 1,000 Hours of Service).

            

    

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    

    VESTING

    

    
      
        	
                19.

              	
                VESTING
      OF PARTICIPANT’S INTEREST (Plan Section 6.4(b))

              
	 	Vesting
      for Employer Contributions (except as otherwise elected in j. - q. below
      for matching contributions). The vesting schedule, based on a
      Participant’s Years of Service (or Periods of Service if the Elapsed Time
      Method is elected), shall be as
follows:

      

    

    
      	
               
      

            	
              a.

            	
              [   ]

            	
              100%
      upon entering Plan. (Required if eligibility requirement is greater than
      one (1) Year of Service or Period of
Service.)

            

    

     

    
      	
            	
              b.

            	
              [   ]     
      3
      Year Cliff:

            	
               

            	
              c.

            	
              [   ]

            	
              
                5
      Year Cliff:

              

            

    

     

    
      
      

    

                                    0-2
years            
 0%                                                                                                                                          
0-4
years               
   0%

                                    3
years             
100%                                                                                                                                             
5 years      
100%

    

    
      	
               
      

            	
              d.

            	
              [   ]     
      6
      Year Graded:

            	
               

            	
              e.

            	
              [   ]

            	
              4
      Year Graded:

            

    

                                    0-1
year               
0%                                                                                                                                              
1 year          
25%

                                    2
years               
20%                                                                                                                                              
2 years       
50%

                                    3
years               
40%                                                                                                                                           
   3 years      
 75%

                                    4
years               
60%                                                                                                                                               4
years      100%

                                    5
years               
80%

                                    6
years             
100%

    

    
      	
               
      

            	
              f.

            	
              [X]    
      5
      Year Graded:

            	
               

            	
              g.

            	
              [   ]

            	
              7
      Year Graded:

            

    

                                     l
year            
 
   20%                                                                                          
0-2 years          
0%

                                     2
years           
   40%                                                                                                                                             
3 years         20%

                                     3
years            
  60%                                                                                                                                            
 4 years         40%

                                     4
years             
 80%                                                                                                                                            
 5 years         60%

                                     5
years            
100%                                                                                                                                             
6 years        
80%

                                                                                                                                                                                                                     
7 years      
100%

    

    
      	
               
      

            	
              h.

            	
              [   ]

            	
              Other
      - Must be at least as liberal as either c. or g.
  above.

            

    

    Service                            Percentage

    _____                              _____

    _____                              _____

    _____                              _____

    _____                              _____

    _____                              _____

    _____                              _____

    _____                              _____

    

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    
      
        	
                 
      

              	
                VESTING
      FOR EMPLOYER MATCHING CONTRIBUTIONS

              
	 	
                The
      vesting schedule for Employer matching contributions, based on a
      Participant's Years of Service (or Periods of

                Service
      if the Elapsed Time Method is elected) shall be as
  follows:

              

      

    

    
      	
               
      

            	
              i.

            	
              [   ]

            	
              N/A.
      There are no matching contributions subject to a vesting schedule OR the
      schedule in a.-h. above shall also apply to matching
      contributions.

            

    

    
      	
               
      

            	
              j.

            	
              [   ]

            	
              100%
      upon entering Plan. (Required if eligibility requirement is greater than
      one (1) Year of Service or Period of
Service.)

            

    

    
      	
               
      

            	
              k.

            	
              [   ]

            	
              3
      Year Cliff

            

    

    
      	
               
      

            	
              l.

            	
              [   ]

            	
              5
      Year Cliff

            

    

    
      	
               
      

            	
              m.

            	
              [   ]

            	
              6
      Year Graded

            

    

    
      	
               
      

            	
              n.

            	
              [   ]

            	
              4
      Year Graded

            

    

    
      	
               
      

            	
              o.

            	
              [X]

            	
              5
      Year Graded

            

    

    
      	
               
      

            	
              p.

            	
              [   ]

            	
              7
      Year Graded

            

    

    
      	
               
      

            	
              q.

            	
              [   ]

            	
              Other
      - Must be at least as liberal as either 1. or p.
  above.

            

    

        Service                           Percentage

        _____                              _____

        _____                              _____

        _____                              _____

        _____                              _____

        _____                              _____

        _____                              _____

        _____                              _____

    

    

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    

    
      	
              20.

            	
              FOR
      AMENDED PLANS (Plan Section 6.4(f))

            

    

    If the
vesting schedule has been amended to a less favorable schedule, enter the
pre-amended schedule below:

    
      	
               
      

            	
              a.

            	
              [   ]

            	
              Vesting
      schedule has not been amended, amended schedule is more favorable in all
      years or prior schedule was immediate 100%
  vesting.

            

    

    
      	
               
      

            	
              b.

            	
              [X]

            	
              Pro-amended
      schedule:

            

    

               
Service                                 Percentage

                
None                                   
 100%

    

    
      	
              21.

            	
              TOP
      HEAVY VESTING (Plan Section 6.4(c))

            

    

    If this
Plan becomes a Top Heavy Plan. the following vesting schedule, based on number
of Years of Service (or Periods of Service if the Elapsed Time Method is
elected), shall apply and shall be treated as a Plan amendment pursuant to this
Plan. Once effective, this schedule shall also apply to any contributions made
before the Plan became a Top Heavy Plan and shall continue to apply if the Plan
ceases to be a Top Heavy Plan unless an amendment is made to change the vesting
schedule.

    
      	
               
      

            	
              a.

            	
              [X]

            	
              N/A
      (the regular vesting schedule already satisfies one of the minimum top
      heavy schedules).

            

    

    
      	
               
      

            	
              b.

            	
              [   ]

            	
              6
      Year Graded:

            

    

                                            0-1
year  0%

                                            2
years 20%

                                            3
years 40%

                                            4
years 60%

                                            5
years 80%

                                            6
years 100%

    
      	
               
      

            	
              c.

            	
              [   ]

            	
              3
      Year Cliff:

            

    

                                            0-2
years 0%

                                            3
years 100%

    
      	
               
      

            	
              d.

            	
              [   ]

            	
              Other
      - Must be at least as liberal as either h. or e.
  above.

            

    

    

             
Service                      Percentage

                                               _____         _____

                                               _____         _____

                                               _____         _____

                                               _____         _____

                                               _____         _____

                                               _____         _____

                      
_____         _____

    
 

     

    
      	
                              
      NOTE:

            	
              This
      Section does not apply to the account balances of any Participant who does
      not have an Hour of Service after the Plan has initially become top
      heavy.  Such Participant’s Account balance attributable to
      Employer contributions and Forfeitures will be determined without regard
      to this Section.

            

    

    

    
      	
              22.

            	
              EXCLUDED
      Vesting SERVICE

            

    

    
      	
               
      

            	
              a.

            	
              [X]

            	
              No
      exclusions.

            

    

    
      	
               
      

            	
              b.

            	
              [   ]

            	
              Service
      prior to the Effective Date of the Plan or a predecessor
    plan.

            

    

    
      	
               
      

            	
              c.

            	
              [   ]

            	
              Service
      prior 10 the time an Employee has attained age
  18.

            

    

    

    
      
        	
                23.

              	
                VESTING
      FOR DEATH AND TOTAL AND PERMANENT DISABILITY

              
	 	Regardless
      of the vesting schedule. Participants shall become fully Vested upon
      (select a. or all that apply of b. and
c.)

      

    

    
      	
               
      

            	
              a.

            	
              [   ]

            	
              N/A.
      Apply vesting schedule, or all contributions to the Plan are fully
      vested.

            

    

    
      	
               
      

            	
              b.

            	
              [X]

            	
              Death.

            

    

    
      	
               
      

            	
              c.

            	
              [X]

            	
              Total
      and Permanent Disability.

            

    

    

    
      	
              24.

            	
              NORMAL
      RETIREMENT AGE (“NRA’) (Plan Section 1.45) means
  the:

            

    

    
      	
               
      

            	
              a.

            	
              [X]

            	
              date
      of a Participant’s  65th birthday
      (not to exceed 65th).

            

    

    
      	
               
      

            	
              b.

            	
              [   ]

            	
              later
      of a Participant’s ______ birthday (not to exceed 65th) or the ______ (not
      to exceed 65th) anniversary of the first day of the Plan Year in which
      participation in the Plan
commenced.

            

    

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    
      	
              25.

            	
              NORMAL
      RETIREMENT’ DATE (Plan Section 1.46) means
the:

            

    

    
      	
               
      

            	
              a.

            	
              [X]

            	
              Participant’s
      “NRA”.

            

    

    

    OR
(select one)

    
      	
               
      

            	
              b.

            	
              [   ]

            	
              first
      day of the month coinciding with or next following the Participant’s
      “NRA”.

            

    

    
      	
               
      

            	
              c.

            	
              [   ]

            	
              first
      day of the month nearest the Participant’s
  “NRA”.

            

    

    
      	
               
      

            	
              d.

            	
              [   ]

            	
              Anniversary
      Date coinciding with or next following the Participant’s
      “NRA”.

            

    

    
      	
               
      

            	
              e.

            	
              [   ]

            	
              Anniversary
      Date nearest the Participant’s
“NRA”.

            

    

    

    
      	
              26.

            	
              EARLY
      RETIREMENT DATE (Plan Section 1.15) means
the:

            

    

    
      	
               
      

            	
              a.

            	
              [X]

            	
              No
      Early Retirement provision
provided.

            

    

    
      	
               
      

            	
              b.

            	
              [   ]

            	
              date
      on which a Participant...

            

    

    
      	
               
      

            	
              c.

            	
              [   ]

            	
              first
      day of the month coinciding with or next following the date on which a
      Participant...

            

    

    
      	
               
      

            	
              d.

            	
              [   ]

            	
              Anniversary
      Date coinciding with or next following the date on which a
      Participant...

            

    

    

    AND, if b., c., or d. is
selected...

    
      	
               
      

            	
              e.

            	
              [   ]

            	
              attains
      age _______

            

    

    
      	
               
      

            	
              f.

            	
              [   ]

            	
              attains
      age _______ and completes at least _______ Years of Service (or Periods of
      Service) for vesting purposes.

            

    

    

    AND, if b., c. or d. is
selected, shall a Participant become fully Vested upon attainment of the Early
Retirement Date?

    
      	
               
      

            	
              g.

            	
              [   ]

            	
              Yes

            

    

    
      	
               
      

            	
              h.

            	
              [   ]

            	
              No

            

    

    

    COMPENSATION

    

    
      	
              27.

            	
              COMPENSATION
      (Plan Section 1.11) with respect to any Participant
  means:

            

    

    
      	
               
      

            	
              a.

            	
              [   ]

            	
              Wages,
      tips and other compensation on Form
W-2.

            

    

    
      	
               
      

            	
              b.

            	
              [X]

            	
              Section
      3401(a) wages (wages for withholding
purposes).

            

    

    
      	
               
      

            	
              c.

            	
              [   ]

            	
              415
      safe-harbor compensation.

            

    

    

    COMPENSATION
shall be based on the following determination period:

    
      	
               
      

            	
              d.

            	
              [X]

            	
              the
      Plan Year.

            

    

    
      	
               
      

            	
              e.

            	
              [   ]

            	
              the
      Fiscal Year coinciding with or ending within the Plan
  Year.

            

    

    
      	
               
      

            	
              f.

            	
              [   ]

            	
              the
      calendar year coinciding with or ending within the Plan
    Year.

            

    

    
      	
                              
      NOTE:

            	
              The
      Limitation Year for Code Section 415 purposes shall be the same as the
      determination period for Compensation unless an alternative period is
      specified: _______ (must be a consecutive twelve month
      period).

            

    

    

    ADJUSTMENTS
TO COMPENSATION

    
      	
               
      

            	
              g.

            	
              [   ]

            	
              N/A.
      No adjustments.

            

    

    
      	
               
      

            	
              h.

            	
              [X]

            	
              Compensation
      shall be adjusted by: (select all that
apply)

            

    

    
      	
               
      

            	
              1.

            	
              [   ]

            	
              including
      compensation which is not currently includible in the Participant’s gross
      income by reason of the application of Code Sections 125 (cafeteria plan),
      132(f)(4) (qualified transportation fringe), 402(e)(3) (401(k) plan),
      402(h)(1)(B) (simplified employee pension plan), 414(h) (employer pickup
      contributions under a governmental plan). 403(b) (tax sheltered annuity)
      or 457(b) (eligible deferred compensation
plan).

            

    

    
      	
               
      

            	
              2.

            	
              [X]

            	
              excluding
      reimbursements or other expense allowances, fringe benefits (cash or
      non-cash), moving expenses, deferred compensation (other than deferrals
      specified in 1. above) and welfare
benefits.

            

    

    
      	
               
      

            	
              3.

            	
              [X]

            	
              excluding
      Compensation paid during the determination period while not a Participant
      in the component of the Plan for which the definition is being
      used.

            

    

    
      	
               
      

            	
              4.

            	
              [   ]

            	
              excluding
      overtime.

            

    

    
      	
               
      

            	
              5.

            	
              [   ]

            	
              excluding
      bonuses.

            

    

    
      	
               
      

            	
              6.

            	
              [   ]

            	
              excluding
      commissions.

            

    

    
      	
               
      

            	
              7.

            	
              [X]

            	
              other:  Severance
      Pay                                                                                                                              
      

            	 

    

    
      	
               
      

            	
              NOTE:

            	
              Options
      4., 5., 6. or 7. may not be selected if an integrated allocation formula
      is selected (i.e., if 33.f. is selected). In addition, if 4., 5., 6., or
      7. is selected, the definition of Compensation could violate the
      nondiscrimination rules.

            

    

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    HOWEVER,
FOR SALARY DEFERRAL AND MATCHING PURPOSES Compensation shall be adjusted by
(for

    such
purposes, the Plan automatically includes Elective Deferrals and other amounts
in h.1. above):

    
      	
               
      

            	
              i.

            	
              [X]

            	
              N/A.
      No adjustments or same adjustments as in
above.

            

    

    
      	
               
      

            	
              j.

            	
              [   ]

            	
              Compensation
      shall be adjusted by: (select all that
apply)

            

    

    
      	
               
      

            	
              1.

            	
              [   ]

            	
              excluding
      reimbursements or other expense allowances, fringe benefits (cash or
      non-cash), moving expenses, deferred compensation (other than deferrals
      specified in h.1. above) and welfare
benefits.

            

    

    
      	
               
      

            	
              2.

            	
              [   ]

            	
              excluding
      Compensation paid during the determination period while not a Participant
      in the component of the Plan for which the definition is being
      used.

            

    

    
      	
               
      

            	
              3.

            	
              [   ]

            	
              excluding
      overtime

            

    

    
      	
               
      

            	
              4.

            	
              [   ]

            	
              excluding
      bonuses

            

    

    
      	
               
      

            	
              5.

            	
              [   ]

            	
              excluding
      commissions

            

    

    
      	
               
      

            	
              6.

            	
              [   ]

            	
              other:

            	 

    

    

    CONTRIBUTIONS
AND ALLOCATIONS

    

    
      	
              28.

            	
              SALARY
      REDUCTION ARRANGEMENT - ELECTIVE DEFERRALS (Plan Section
    12.2)

            

    

    Each
Participant may elect to have Compensation deferred by:

    
      	
               
      

            	
              a.

            	
              [   ]

            	
              _______%.

            

    

    
      	
               
      

            	
              b.

            	
              [X]

            	
              up
      to 60%

            

    

    
      	
               
      

            	
              c.

            	
              [   ]

            	
              from
      _______% to _______%.

            

    

    
      	
               
      

            	
              d.

            	
              [   ]

            	
              up
      to the maximum percentage allowable not to exceed the limits of Code
      Sections 401(k), 402(g), 404 and
415.

            

    

    

    AND,
Participants who are Highly Compensated Employees determined as of the beginning
of a Plan Year may only  elect to defer Compensation by:

    
      	
               
      

            	
              e.

            	
              [X]

            	
              Same
      limits as specified above.

            

    

    
      	
               
      

            	
              f.

            	
              [   ]

            	
              The
      percentage equal to the deferral limit in effect under Code Section
      402(g)(3) for the calendar year that begins with or within the Plan Year
      divided by the annual compensation limit in effect for the Plan Year under
      Code Section 401(a)(17).

            

    

    

    MAY
PARTICIPANTS make a special salary deferral election with respect to
bonuses?

    
      	
               
      

            	
              g.

            	
              [X]

            	
              No.

            

    

    
      	
               
      

            	
              h.

            	
              [   ]

            	
              Yes,
      a Participant may elect to defer up to  _____ % of any
      bonus.

            

    

    

    PARTICIPANTS
MAY commence salary deferrals on the effective date of participation and on
the first day of each
month (must be at least once each calendar year).

    

    Participants
may modify salary deferral elections:

    
      	
               
      

            	
              1.

            	
              [   ]

            	
              As
      of each payroll period

            

    

    
      	
               
      

            	
              2.

            	
              [X]

            	
              On
      the first day of the month

            

    

    
      	
               
      

            	
              3.

            	
              [   ]

            	
              On
      the first day of each Plan Year
quarter

            

    

    
      	
               
      

            	
              4.

            	
              [   ]

            	
              On
      the first day of the Plan Year or the first day of the 7th month of the
      Plan Year

            

    

    
      	
               
      

            	
              5.

            	
              [   ]

            	
              Other:
      _____ (must be at least once each calendar
year)

            

    

    

    AUTOMATIC
ELECTION: Shall Participants who do not affirmatively elect to receive cash or
have a specified amount contributed to the Plan automatically have Compensation
deferred?

    

    
      	
               
      

            	
              i.

            	
              [X]

            	
              No.

            

    

    
      	
               
      

            	
              j.

            	
              [   ]

            	
              Yes,
      by _____% of Compensation.

            

    

    

    SHALL
THERE BE a special effective date for the salary deferral component of the
Plan?

    
      	
               
      

            	
              k.

            	
              [X]

            	
              No.

            

    

    
      	
               
      

            	
              l.

            	
              [   ]

            	
              Yes,
      the effective date of the salary deferral component of the Plan is ______
      (enter month day. year).

            

    

    

    
      	
              29.

            	
              SIMPLE
      401(k) PLAN ELECTION (Plan Section
13.1)

            

    

    Shall the
simple 401(k) provisions of Article XIII apply?

    
      	
               
      

            	
              a.

            	
              [X]

            	
              No.
      The simple 401(k) provisions will not
apply.

            

    

    
      	
               
      

            	
              b.

            	
              [   ]

            	
              Yes.
      The simple 401(k) provisions will
apply.

            

    

    

    
      	
              30.

            	
              401(k)
      SAFE HARBOR PROVISIONS (Plan Section
12.8)

            

    

    Will the
ADP and/or ACP test safe harbor provisions be used? (select a., b. or
c.)

    
      	
               
      

            	
              a.

            	
              [X]

            	
              No.
      (If selected, skip to Question 31.)

            

    

    
      	
               
      

            	
              b.

            	
              [   ]

            	
              Yes,
      but only the ADP (and NOT the ACP) Test Safe Harbor provisions will be
      used.

            

    

    
      	
               
      

            	
              c.

            	
              [   ]

            	
              Yes,
      both the ADP and ACP Test Sate Harbor provisions will be
    used.

            

    

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              IF
      c. is selected, does the Plan permit matching contributions in addition to
      any safe harbor contributions elected in d. or e.
  below?

            

    

    
      	
               
      

            	
              1.

            	
              [   ]

            	
              No
      or N/A. Any matching contributions, other than any Safe Harbor Matching
      Contributions elected in d. below, will be suspended in any Plan Year in
      which the safe harbor provisions are
used.

            

    

    
      	
               
      

            	
              2.

            	
              [   ]

            	
              Yes,
      the Employer may make matching contributions in addition to any Safe
      Harbor Matching contributions elected in d. below. (If elected, complete
      the provisions of the Adoption Agreement relating to matching
      contributions (i.e., Questions 31. and 32.) that will apply in addition to
      any elections made in d. below. NOTE: Regardless of any election made in
      Question 31., the Plan automatically provides that only Elective Deferrals
      up to 6% of Compensation are taken into account in applying the match set
      forth in that Question and that the maximum discretionary matching
      contribution that may be made on behalf of any Participant is 4% of
      Compensation.)

            

    

     

    THE
EMPLOYER WILL MAKE THE FOLLOWING ADP TEST SAFE HARBOR CONTRIBUTION FOR THE
PLAN
YEAR:

    
      	
                             
      NOTE:

            	
              The
      ACP Test Safe Harbor is automatically satisfied if the only matching
      contribution made to the Plan is either (1) a Basic Matching Contribution
      or (2) an Enhanced Matching Contribution that does not provide a match on
      Elective Deferrals in excess of 6% of
  Compensation.

            

    

    

    
      	
               
      

            	
              d.

            	
              [   ]

            	
              Safe
      Harbor Matching Contribution (select I. or 2. AND
  3.)

            

    

    
      	
               
      

            	
              1.

            	
              [   ]

            	
              Basic Matching
      Contribution. The Employer will make Matching Contributions to the
      account of each “Eligible Participant” in an amount equal to the sum of
      100% of the amount of the Participant’s Elective Deferrals that do not
      exceed 3% of the Participant’s Compensation, plus 50% of the amount of the
      Participant’s Elective Deferrals that exceed 3% of the Participant’s
      Compensation but do not exceed 5% of the Participant’s
      Compensation.

            

    

    
      	
               
      

            	
              2.

            	
              [   ]

            	
              Enhanced Matching
      Contribution. The Employer will make Matching Contributions to the
      account of each “Eligible Participant” in an amount equal to the sum
      of:

            

    

    
      	
               
      

            	
              a.

            	
              [   ]

            	
              _______%
      (may not be less than 100%) of the Participant’s Elective Deferrals that
      do not exceed _______% (if over 6% or if left blank, the ACP test will
      still apply) of the Participant’s Compensation,
  plus

            

    

    
      	
               
      

            	
              b.

            	
              [   ]

            	
              _______%
      of the Participant’s Elective Deferrals that exceed _______% of the
      Participant’s Compensation but do not exceed % (if over 6% or if left
      blank, the ACP test will still apply) of the Participant’s
      Compensation.

            

    

    
      	
               
      

            	
              NOTE:

            	
              a.
      and b. must be completed so that, at any rate of Elective Deferrals, the
      matching contribution is at least equal to the matching contribution
      receivable if the Employer were making Basic Matching Contributions, but
      the rate of match cannot increase as deferrals increase. For example, if
      a. is completed to provide a match equal to 100% of deferrals up to 4% of
      Compensation. then b. need not be
completed.

            

    

    
      	
               
      

            	
              3.

            	
              [   ]

            	
              The
      safe harbor matching contribution will be determined on the following
      basis (and Compensation for such purpose will be based on the applicable
      period.

            

    

    
      	
               
      

            	
              a.

            	
              [   ]

            	
              the
      entire Plan Year.

            

    

    
      	
               
      

            	
              b.

            	
              [   ]

            	
              each
      payroll period.

            

    

    
      	
               
      

            	
              c.

            	
              [   ]

            	
              all
      payroll periods ending with or within each
  month.

            

    

    
      	
               
      

            	
              d.

            	
              [   ]

            	
              all
      payroll periods ending with or within the Plan Year
    quarter.

            

    

    
      	
               
      

            	
              e.

            	
              [   ]

            	
              Nonelective
      Safe Harbor Contributions (select
one)

            

    

    
      	
               
      

            	
              1.

            	
              [   ]

            	
              The
      Employer will make a Safe Harbor Nonelective Contribution to the account
      of each “Eligible Participant” in an amount equal to _______% (may not be
      less than 3%) of the Employee’s Compensation for the Plan
      Year.

            

    

    
      	
               
      

            	
              2.

            	
              [   ]

            	
              The
      Employer will make a Safe Harbor Nonelective Contribution to another
      defined contribution plan maintained by the Employer (specify the name of
      the other plan): _______.

            

    

    

    FOR
PURPOSES OF THE ADP Test Safe Harbor contribution. the term “Eligible
Participant” means any Participant who is eligible to make Elective Deferrals
with the following exclusions:

    

    
      
        	
                 
      

              	
                f.

              	
                [   ]

              	
                Highly
      Compensated Employees.

              
	 	
                g.

              	
                [   ]

              	 
      

                Employees
      who have not satisfied the greatest minimum age and service conditions
      permitted under Code Section 410(a).

              
	 	
                h.

              	
                [   ]

              	
                Other:____________________________________________________________________________________________________________________________________
      

                  (must
      be a category that could be excluded under the permissive or mandatory
      disaggregation rules of Regulations 1.401(k)- (b)(3) and
      1.401(m)-1(b)(3)).

                

              

      

    

    
      
      

    

    
      
      

    

    
      
      

    

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    SPECIAL
EFFECTIVE DATE OF ADP AND ACP TEST SAFE HARBOR PROVISIONS

    
      	
               
      

            	
              i.

            	
              [   ]

            	
              N/A.
      The safe harbor provisions are effective as of the later of the Effective
      Date of this Plan or, if this is an amendment or restatement, the
      effective date of the amendment or
restatement.

            

    

    
      
        	
                 
      

              	
                j.

              	
                [   ]

              	
                The
      ADP and ACP Test Safe Harbor provisions are effective for the Plan Year
      beginning:

              
	 	 	 	_______________________________________________________
      (enter the first day of the Plan Year for which the provisions are (or,
      for GUST updates, were) effective and, if necessary, enter any other
      special effective dates that apply with respect to the
    provisions).

      

    

       

    
      
        	
                31.

              	
                FORMULA
      FOR DETERMINING EMPLOYER MATCHING CONTRIBUTIONS (Plan Section
      l2.1(a)(2))

              

      

    

    
      	
                             
      NOTE:

            	
              Regardless
      of any election below, if the ACP test safe harbor is being used (i.e.,
      Question 30.c. is selected), then the Plan automatically provides that
      only Elective Deferrals up to 6% of Compensation are taken into account in
      applying the match set forth below and that the maximum discretionary
      matching contribution that may be made on behalf of any Participant is 4%
      of Compensation.

            

    

    
      	
               
      

            	
              a.

            	
              [   ]

            	
              N/A.
      There will not be any matching contributions (Skip to Question
      33).

            

    

    
      	
               
      

            	
              b.

            	
              [X]

            	
              The
      Employer ... (select 1. or 2.)

            

    

    
      	
               
      

            	
              1.

            	
              [X]

            	
              may
      make matching contributions equal to a discretionary percentage. to be
      determined by the Employer, of the Participant’s Elective
      Deferrals.

            

    

    
      	
               
      

            	
              2.

            	
              [   ]

            	
              will
      make matching contributions equal to ____________% (e.g., 50) of the
      Participant’s Elective Deferrals,
plus:

            

    

    
      	
               
      

            	
              a.

            	
              [   ]

            	
              N/A.

            

    

    
      	
               
      

            	
              b.

            	
              [   ]

            	
              an
      additional discretionary percentage. to be determined by the
      Employer.

            

    

    

    AND, in determining the
matching contribution above, only Elective Deferrals up to the percentage or
dollar amount specified below will be matched: (select 3. and/or 4. OR
5.)

    
      	
               
      

            	
              3.

            	
              [   ]

            	
              _______%
      of a Participant’s Compensation.

            

    

    
      	
               
      

            	
              4.

            	
              [   ]

            	
              $_______

            

    

    
      	
               
      

            	
              5.

            	
              [X]

            	
              a
      discretionary percentage of a Participant’s Compensation or a
      discretionary dollar amount, the percentage or dollar amount to be
      determined by the Employer on a uniform basis to all
      Participants.

            

    

    
      	
               
      

            	
              c.

            	
              [   ]

            	
              The
      Employer may make matching contributions equal to a discretionary
      percentage, to be determined by the Employer, of each tier, to be
      determined by the Employer, of the Participant’s Elective
      Deferrals.

            

    

    
      	
               
      

            	
              d.

            	
              [   ]

            	
              The
      Employer will make matching contributions equal to the sum of _______% of
      the portion of the Participant’s Elective Deferrals which do not exceed
      ______% of the Participant’s Compensation or $_______ plus _______% of the
      portion of the Participant’s Elective Deferrals which exceed _______% of
      the Participant’s Compensation or $______ but does not exceed _______% of
      the Participant’s Compensation or

            

    

    
      	
                              NOTE:

            	
              If
      c. or d. above is elected, the Plan may violate the Code Section 401(a)(4)
      nondiscrimination requirements if the rate of matching contributions
      increases as a Participant’s Elective Deferrals or Years of Service (or
      Periods of Service) increase.

            

    

    

    PERIOD OF
DETERMINING MATCHING CONTRIBUTIONS

    Matching
contributions will be determined on the following basis (and any Compensation or
dollar limitation used in determining the match will be based on the applicable
period):

    
      	
               
      

            	
              e.

            	
              [   ]

            	
              the
      entire Plan Year.

            

    

    
      	
               
      

            	
              f.

            	
              [X]

            	
              each
      payroll period.

            

    

    
      	
               
      

            	
              g.

            	
              [   ]

            	
              all
      payroll periods ending within each
month.

            

    

    
      	
               
      

            	
              h.

            	
              [   ]

            	
              all
      payroll periods ending with or within the Plan Year
    quarter.

            

    

    

    THE
MATCHING CONTRIBUTION MADE ON BEHALF OF ANY PARTICIPANT for any Plan Year will
not exceed:

    
      	
               
      

            	
              i.

            	
              [X]

            	
              N/A.

            

    

    
      	
               
      

            	
              j.

            	
              [   ]

            	
              $______________

            

    

    

    MATCHING
CONTRIBUTIONS WILL BE MADE ON BEHALF OF:

    
      	
               
      

            	
              k.

            	
              [X]

            	
              all
      Participants.

            

    

    
      	
               
      

            	
              l.

            	
              [   ]

            	
              only
      Non-Highly Compensated Employees.

            

    

    

    SHALL THE
MATCHING CONTRIBUTIONS BE QUALIFIED MATCHING CONTRIBUTIONS?

    
      	
               
      

            	
              m.

            	
              [   ]

            	
              Yes.
      If elected, ALL matching contributions will be fully Vested and will be
      subject to restrictions on withdrawals. In addition. Qualified Matching
      Contributions may be used in ether the ADP or ACP
  test.

            

    

    
      	
               
      

            	
              n.

            	
              [X]

            	
              No.

            

    

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    
      
        	
                32.

              	
                ONLY
      PARTICIPANTS WHO SATISFY THE FOLLOWING CONDITIONS WILL BE ELIGIBLE TO
      SHARE IN THE ALLOCATION OF MATCHING
  CONTRIBUTIONS:

              

      

    

    

    REQUIREMENTS
FOR PARTICIPANTS WHO ARE ACTIVELY EMPLOYED AT THE END OF THE PLAN
YEAR.

    
      	
               
      

            	
              a.

            	
              [   ]

            	
              N/A.

            

    

    
      	
               
      

            	
              b.

            	
              [X]

            	
              No
      service requirement.

            

    

    
      	
               
      

            	
              c.

            	
              [   ]

            	
              A
      Participant must complete a Year of Service (or Period of Service if the
      Elapsed Time Method is elected), (Could cause the Plan to violate coverage
      requirements under Code Section
410(b).)

            

    

    
      	
               
      

            	
              d.

            	
              [   ]

            	
              Participant
      must complete at least ______ (may not be more than 1,000) Hours of
      Service during the Plan Year. (Could cause the Plan to violate coverage
      requirements under Code Section
410(b).)

            

    

    

    REQUIREMENTS
FOR PARTICIPANTS WHO ARE NOT ACTIVELY EMPLOYED AT THE END OF THE PLAN
YEAR

    (except
as otherwise provided in i. through k. below).

    
      	
               
      

            	
              e.

            	
              [   ]

            	
              A
      Participant must complete more than ______ Hours of Service (not more than
      500) (or _______ months of service (not more than three (3)) if the
      Elapsed Time Method is elected).

            

    

    
      	
               
      

            	
              f.

            	
              [   ]

            	
              A
      Participant must complete a Year of Service (or Period of Service if the
      Elapsed Time Method is elected). (Could cause the Plan to violate coverage
      requirements under Code Section
410(b).)

            

    

    
      	
               
      

            	
              g.

            	
              [   ]

            	
              Participants
      will NOT share in such allocations, regardless of service. (Could cause
      the Plan to violate coverage requirements under Code Section
      410(b).)

            

    

    
      	
               
      

            	
              h.

            	
              [X]

            	
              Participants
      will share in such allocations, regardless of
  service.

            

    

    

    PARTICIPANTS
WHO ARE NOT ACTIVELY EMPLOYED AT THE END OF THE PLAN YEAR due to the following
shall be eligible to share in the allocation of matching contributions
regardless of the above conditions (select all that apply):

    
      	
               
      

            	
              i.

            	
              [X]

            	
              Death.

            

    

    
      	
               
      

            	
              j.

            	
              [X]

            	
              Total
      and Permanent Disability.

            

    

    
      	
               
      

            	
              k.

            	
              [X]

            	
              Early
      or Normal Retirement.

            

    

    

    AND, if 32.c., d., f., org. is
selected, shall the 410(b) ratio percentage fail safe provisions apply (Plan
Section 12.3(f))?

    
      	
               
      

            	
              l.

            	
              [   ]

            	
              No
      or N/A

            

    

    
      	
               
      

            	
              m.

            	
              [X]

            	
              Yes
      (if selected, the Plan must satisfy the ratio percentage test of Code
      Section 410(b).)

            

    

    

    
      
        	
                33.

              	
                FORMULA
      FOR DETERMINING EMPLOYER’S PROFIT SHARING Contribution (Plan Section
      12.l(a)(3)) (d. may be selected in addition to b. or
  c.)

              

      

    

    
      	
               
      

            	
              a.

            	
              [X]

            	
              N/A.
      No Employer Profit Sharing Contributions may be made (other than top heavy
      minimum contributions) (Skip to Question
34.)

            

    

    
      	
               
      

            	
              b.

            	
              [   ]

            	
              Discretionary,
      to be determined by the Employer, not limited to current or accumulated
      Net Profits.

            

    

    
      	
               
      

            	
              c.

            	
              [   ]

            	
              Discretionary,
      to be determined by the Employer, out of current or accumulated Net
      Profits.

            

    

    
      	
               
      

            	
              d.

            	
              [   ]

            	
              Prevailing
      Wage Contribution. The Employer will make a Prevailing Wage Contribution
      on behalf of each Participant who performs services subject to the Service
      Contract Act, Davis-Bacon Act or similar Federal, State, or Municipal
      Prevailing Wage statutes. The Prevailing Wage Contribution shall be an
      amount equal to the balance of the fringe benefit payment for health and
      welfare for each Participant (after deducting the cost of cash
      differential payments for the Participant) based on the hourly
      contribution rate for the Participant’s employment classification, as
      designated on Schedule A as attached to this Adoption Agreement.
      Notwithstanding anything in the Plan to the contrary, the Prevailing Wage
      Contribution shall be fully Vested. Furthermore, the Prevailing Wage
      Contribution shall not be subject to any age or service requirements set
      forth in Question 15. nor to any service or employment conditions set
      forth in Question 35.

            

    

     

          
AND, if d. is selected, is the Prevailing Wage Contribution considered a
Qualified Non-Elective Contribution?

               1.     [   ]        
Yes.

               2.     [   ]        
No.

     

    AND, if d. is selected, shall
the amounts allocated on behalf of a Participant for a Plan Year pursuant to e.
or f. below be reduced (offset) by the Prevailing Wage Contribution made on
behalf of such Participant for the Plan Year under this Plan?

    3.     [   ]         No
(if selected, then the Prevailing Wage Contribution will be added to amounts
allocated pursuant to e. or f. below.)

    4.     [   ]         Yes.

    

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    

    CONTRIBUTION
ALLOCATIONS

    If b. or
c. above is selected, the Employer’s discretionary profit sharing contribution
for a Plan Year will be allocated as follows:

    

    
      
        	
                 
      

              	
                e.

              	
                [   ]

              	
                NON-INTEGRATED
      ALLOCATION

              
	 	 	 	1.    
      [   ]    In the same ratio as each
      Participant’s Compensation hears to the total of such Compensation of all
      Participants.
	 	 	 	2.    
      [   ]    In the same dollar amount to
      all Participants (per capita).
	 	 	 	3.    
      [   ]    In the same dollar amount per Hour
      of Service completed by each Participant.
	 	 	 	4.    
      [   ]    In the same proportion that each
      Participant’s points bears to the total of such points of all
      Participants. A Participant’s points with respect to any Plan Year shall
      be computed as follows (select all that
apply):

      

    

    
      	
               
      

            	
              a.

            	
              [   ]

            	
              ______
      point(s) shall be allocated for each Year of Service (or Period of Service
      if the Elapsed Time Method is elected). However, the maximum Years of
      Service (or Periods of Service) taken into account shall not exceed _____
      (leave blank if no limit on service
applies).

            

    

    
      	
               
      

            	
              b.

            	
              [   ]

            	
              _______
      point(s) shall be allocated for each full $_______ (may not exceed $200)
      of Compensation.

            

    

    
      	
               
      

            	
              c.

            	
              [   ]

            	
              _______
      point(s) shall be allocated for each year of age as of the end of the Plan
      Year.

            

    

    

    
      
        	
                 
      

              	
                f.

              	
                [   ]

              	
                INTEGRATED
      ALLOCATION

              
	 	 	 	In
      accordance with Plan Section 4.3(b)(2) based on a Participant’s
      Compensation in excess of
	 	 	 	1.    
      [   ]   The Taxable Wage Base.
	 	 	 	2.    
      [   ]   _____% (not to exceed 100%) of the
      Taxable Wage Base. (See Note below)
	 	 	 	3.    
      [   ]   80% of the Taxable Wage Base plus
      $1.00.
	 	 	 	4.    
      [   ]   $_________, (not greater than the
      Taxable Wage Base). (See Note below)
	 	 	 	NOTE:  The
      integration percentage of 5.7% shall be reduced to:
	 	 	 	              1.    4.3%
      if 2. Or 4. above
      is more than 20% and less than or equal to 80% of the Taxable Wage
      Base.
	 	 	 	              2.    5.4% if 3. is elected
      or if 2, or 4. above is more than 80% of the Taxable Wage
  Base.

      

    

     

    
      
        	
                34.

              	
                QUALIFIED
      NON-ELECTIVE CONTRIBUTIONS (Plan Section
  12.l(a)(4))

              

      

    

    
      	
                              
      NOTE:

            	
              Regardless
      of any election made in this Question, the Plan automatically permits
      Qualified Non-Elective Contributions to correct a failed ADP or ACP
      test.

            

    

    
      	
               
      

            	
              a.

            	
              [X]

            	
              N/A.
      There will be no additional Qualified Non-Elective Contributions except as
      otherwise provided in the Plan.

            

    

    
      	
               
      

            	
              b.

            	
              [   ]

            	
              The
      Employer will make a Qualified Non-Elective Contribution equal to _______%
      of the total Compensation of those Participants eligible to share in the
      allocations.

            

    

    
      	
               
      

            	
              c.

            	
              [   ]

            	
              The
      Employer may make a Qualified Non-Elective Contribution in an amount to be
      determined by the Employer, to be allocated in proportion to the
      Compensation of those Participants eligible to share in the
      allocations.

            

    

    
      	
               
      

            	
              d.

            	
              [   ]

            	
              The
      Employer may make a Qualified Non-Elective Contribution in an amount to be
      determined by the Employer, to be allocated equally to all Participants
      eligible to share in the allocations (per
  capita).

            

    

    

    AND, if b, c., or d. is
selected, the Qualified Non-Elective Contributions above will be made on behalf
of:

    
      	
               
      

            	
              e.

            	
              [   ]

            	
              all
      Participants.

            

    

    
      	
               
      

            	
              f.

            	
              [   ]

            	
              only
      Non-Highly Compensated Employees.

            

    

    

    
      
        	
                35.

              	
                REQUIREMENTS
      TO SHARE IN ALLOCATIONS OF EMPLOYER DISCRETIONARY PROFIT SHARING
      CONTRIBUTION, QUALIFIED NON-ELECTIVE CONTRIBUTIONS (other than Qualified
      Non-Elective Contributions under Plan Sections 12.5(c) and 12.7(g)) AND
      FORFEITURES

              

      

    

    
      	
               
      

            	
              a.

            	
              [   ]

            	
              N/A.
      Plan does not permit such
contributions.

            

    

    
      	
               
      

            	
              b.

            	
              [   ]

            	
              Requirements
      for Participants who are actively employed at the end of the Plan
      Year.

            

    

    
      	
               
      

            	
              1.

            	
              [   ]

            	
              No
      service requirement.

            

    

    
      	
               
      

            	
              2.

            	
              [   ]

            	
              A
      Participant must complete a Year of Service (or Period of Service if the
      Elapsed Time Method is elected). (Could cause the Plan to violate coverage
      requirements under Code Section
410(b).)

            

    

    
      	
               
      

            	
              3.

            	
              [   ]

            	
              A
      Participant must complete at least (may not be more than 1,000) Hours of
      Service during the Plan Year. (Could cause the Plan to violate coverage
      requirements under Code Section
410(b).)

            

    

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

    REQUIREMENTS
FOR PARTICIPANTS WHO ARE NOT ACTIVELY EMPLOYED AT THE END OF THE PLAN YEAR
(except as otherwise provided in g. through i. below).

    
      	
               
      

            	
              c.

            	
              [   ]

            	
              A
      Participant must complete more than _______ Hours of Service (not more
      than 500) (or ______ months of service (not more than three (3)) if the
      Elapsed Time Method is elected).

            

    

    
      	
               
      

            	
              d.

            	
              [   ]

            	
              A
      Participant must complete a Year of Service (or Period of Service if the
      Elapsed Time Method is elected). (Could cause the Plan to violate coverage
      requirements under Code Section
410(b).)

            

    

    
      	
               
      

            	
              e.

            	
              [   ]

            	
              Participants
      will NOT share in such allocations, regardless of service. (Could cause
      the Plan to violate coverage requirements under Code Section
      410(b).)

            

    

    
      	
               
      

            	
              f.

            	
              [   ]

            	
              Participants
      will share in such allocations, regardless of
  service.

            

    

    

    PARTICIPANTS
WHO ARE NOT ACTIVELY EMPLOYED AT THE END OF THE PLAN YEAR due to the following
will be eligible to share in the allocations regardless of the above conditions
(select all that apply):

    
      	
               
      

            	
              g.

            	
              [   ]

            	
              Death,

            

    

    
      	
               
      

            	
              h.

            	
              [   ]

            	
              Total
      and Permanent Disability.

            

    

    
      	
               
      

            	
              i.

            	
              [   ]

            	
              Early
      or Normal Retirement.

            

    

    

    AND, if 35.b, 2, b.3, d or e.
is selected, shall the 410(b) ratio percentage fail safe provisions apply (Plan
Section 12.3(f))?

    
      	
               
      

            	
              j.

            	
              [   ]

            	
              No
      or N/A

            

    

    
      	
               
      

            	
              k.

            	
              [   ]

            	
              Yes
      (If selected, the Plan must satisfy the ratio percentage test of Code
      Section 410(b)).

            

    

    

    
      
        	
                36.

              	
                FORFEITURES
      (Plan Sections 1.27 and 4.3(e))

              
	 	Except
      as provided in Plan Section 1.27, a Forfeiture will occur (if no election
      is made, a. will apply):

      

    

    
      	
               
      

            	
              a.

            	
              [X]

            	
              as
      of the earlier of (1) the last day of the Plan Year in which the Former
      Participant incurs five (5) consecutive 1-Year Breaks in Service, or (2)
      the distribution of the entire Vested portion of the Participant’s
      Account.

            

    

    
      	
               
      

            	
              b.

            	
              [   ]

            	
              as
      of the last day of the Plan Year in which the Former Participant incurs
      five (5) consecutive 1-Year Breaks in
Service.

            

    

    

    Will
Forfeitures first be used to pay any administrative expenses?

    
      	
               
      

            	
              c.

            	
              [   ]

            	
              Yes.

            

    

    
      	
               
      

            	
              d.

            	
              [X]

            	
              No.

            

    

    

    AND,
EXCEPT as otherwise provided below with respect to Forfeitures attributable to
matching contributions, any remaining Forfeitures will be...

    
      	
               
      

            	
              e.

            	
              [   ]

            	
              added
      to any Employer discretionary
contribution.

            

    

    
      	
               
      

            	
              f.

            	
              [X]

            	
              used
      to reduce any Employer
contribution.

            

    

    
      	
               
      

            	
              g.

            	
              [   ]

            	
              added
      to any Employer matching contribution and allocated as an additional
      matching contribution.

            

    

    
      	
               
      

            	
              h.

            	
              [   ]

            	
              allocated
      to all Participants eligible to share in the allocations in the same
      proportion that each Participant’s Compensation for the Plan Year bears to
      the Compensation of all Participants for such
  year.

            

    

    

    FORFEITURES
OF MATCHING CONTRIBUTIONS WILL BE...

    
      	
               
      

            	
              i.

            	
              [X]

            	
              N/A.
      Same as above or no matching
contributions.

            

    

    
      	
               
      

            	
              j.

            	
              [   ]

            	
              used
      to reduce the Employer’s matching
contribution.

            

    

    
      	
               
      

            	
              k.

            	
              [   ]

            	
              added
      to any Employer matching contribution and allocated as an additional
      matching contribution.

            

    

    
      	
               
      

            	
              1.

            	
              [   ]

            	
              added
      to any Employer discretionary profit sharing
  contribution.

            

    

    
      	
               
      

            	
              m.

            	
              [   ]

            	
              allocated
      to all Participants eligible to share in the matching allocations
      (regardless of whether a Participant elected any salary reductions) in
      proportion to each such Participant’s Compensation for the
      year.

            

    

    
      	
               
      

            	
              n.

            	
              [   ]

            	
              allocated
      to all Non-Highly Compensated Employees eligible to share in the matching
      allocations (regardless of whether a Participant elected any salary
      reductions) in proportion to each such Participant’s Compensation for the
      year.

            

    

    

    
      
        	
                37.

              	
                ALLOCATIONS
      OF EARNINGS (Plan Section
4.3(c))

              

      

    

    Allocations
of earnings with respect to amounts which are not subject to Participant
directed investments and which are contributed to the Plan after the previous
Valuation Date will be determined.

    
      	
               
      

            	
              a.

            	
              [X]

            	
              N/A.
      All assets in the Plan are subject to Participant investment
      direction.

            

    

    
      	
               
      

            	
              b.

            	
              [   ]

            	
              by
      using a weighted average based on the amount of time that has passed
      between the date a contribution or distribution was made and the date of
      the prior Valuation Date.

            

    

    
      	
               
      

            	
              c.

            	
              [   ]

            	
              by
      treating one-half of all such contributions as being a part of the
      Participant’s nonsegregated account balance as of the previous Valuation
      Date.

            

    

    
      
        	
                 
      

              	
                d.

              	
                [   ]

              	
                by
      using the method specified in Plan Section 4.3(c) (balance forward
      method).

              
	 	
                e.

              	
                [   ]

              	
                other:                                                                                                                                                                                                                                                  
      

                  (must
      be a definite predetermined formula that is not based on Compensation and
      that satisfies the nondiscrimination requirements of Regulation
      l.401(a)(4)-4 and is applied uniformly to all
      Participants).

                

              

      

    

    
      
      

    

    
      
      

    

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

    
      
        	
                38.

              	
                LIMITATIONS
      ON ALLOCATIONS (Plan Section
4.4)

              

      

    

    If any
Participant is covered under another qualified defined contribution plan
maintained by the Employer, other than a Master or Prototype Plan, or if the
Employer maintains a welfare benefit find, as defined in Code Section 419(e), or
an individual medical account, as defined in Code Section 415(1)(2), under which
amounts are treated as Annual Additions with respect to any Participant in this
Plan:

    
      	
               
      

            	
              a.

            	
              [X]

            	
              N/A.
      The Employer does not maintain another qualified defined contribution
      plan.

            

    

    
      
        	
                 
      

              	
                b.

              	
                [   ]

              	
                The
      provisions of Plan Section 4.4(b) will apply as if the other plan were a
      Master or Prototype Plan.

              
	 	
                c.

              	
                [   ]

              	
                Specify
      the method under which the plans will limit total Annual Additions to the
      Maximum Permissible  Amount, and will properly reduce any Excess
      Amounts, in a manner that precludes Employer discretion: 

                                  
                                                                                                                                                                                                                                                                                              

                

              

      

    

    
      
        
        

      

    

     

    DISTRIBUTIONS

    

    
      
        	
                39.

              	
                FORM
      OF DISTRIBUTIONS (Plan Sections 6.5 and
6.6)

              

      

    

    Distributions
under the Plan may be made in (select all that apply)...

    
      	
               
      

            	
              a.

            	
              [X]

            	
              lump-sums.

            

    

    
      	
               
      

            	
              b.

            	
              [   ]

            	
              substantially
      equal installments.

            

    

    
      	
               
      

            	
              c.

            	
              [   ]

            	
              partial
      withdrawals provided the minimum withdrawal is
  $______.

            

    

    

    AND.
pursuant to Plan Section 6.12,

    
      	
               
      

            	
              d.

            	
              [X]

            	
              no
      annuities are allowed (Plan Section 6.12(b) will apply and the joint and
      survivor rules of Code Sections

            

    

    
      	
               
      

            	
              401(a)(11)
      and 417 will not apply to the
Plan).

            

    

    

    AND, if this is an amendment
that is eliminating annuities, then an annuity form of payment is not
available

    with
respect to distributions that have an Annuity Starting Date beginning on or
after:                  

    
      
        	 	1.    	[X] 	N/Ax
	
                 
      

              	
                2.

              	
                [   ]

              	
                (may
      not be a retroactive date), except that regardless of the date entered,
      the amendment will not be effective prior to the time set forth in Plan
      Section 8.1(e).

              

      

    

    

    
      
        	
                 
      

              	
                e.

              	
                [   ]

              	
                annuities
      are allowed as the normal form of distribution (Plan Section 6.12 will not
      apply and the joint and

              
	 	 	 	survivor
      rules of Code Sections 401(a)(11) and 417 will automatically apply). If
      elected, the Pre-Retirement Survivor
      Annuity (minimum spouse’s death benefit) will be equal
  to:

      

    

    
      	
               
      

            	
              1.

            	
              [   ]

            	
              100%
      of Participant’s interest in the
Plan.

            

    

    
      	
               
      

            	
              2.

            	
              [   ]

            	
              50%
      of Participant’s interest in the
Plan.

            

    

    
      	
               
      

            	
              3.

            	
              [   ]

            	
              _____%
      (may not be less than 50%) of a Participant’s interest in the
      Plan.

            

    

    

    AND, the normal form of the
Qualified Joint and Survivor Annuity will be a joint and 50% survivor
annuity

    unless
otherwise elected below:

    
      	
               
      

            	
              4.

            	
              [   ]

            	
              N/A.

            

    

    
      	
               
      

            	
              5.

            	
              [   ]

            	
              Joint
      and 100% survivor annuity.

            

    

    
      	
               
      

            	
              6.

            	
              [   ]

            	
              Joint
      and 75% survivor annuity.

            

    

    
      	
               
      

            	
              7.

            	
              [   ]

            	
              Joint
      and 66 2/3% survivor annuity.

            

    

    

    
      	
                             
      NOTE:

            	
              If
      only a portion of the Plan assets may be distributed in an annuity form of
      payment, then select d. AND e. and the assets subject to the joint and
      survivor annuity provisions will be those assets attributable to
      (specify):

              _________
      (e.g., the money purchase pension plan that was merged into this
      Plan).

            

    

     

    
      	
               
      

            	
              AND,
      distributions maybe made in...

            

    

    
      	
               
      

            	
              f.

            	
              [X]

            	
              cash
      only (except for insurance or annuity
  contracts).

            

    

    
      	
               
      

            	
              g.

            	
              [   ]

            	
              cash
      or property.

            

    

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

     

    
      
        	
                40.

              	
                CONDITIONS
      FOR DISTRIBUTIONS UPON TERMINATION OF EMPLOYMENT

              
	 	Distributions
      upon termination of employment pursuant to Plan Section 6.4(a) of the Plan
      will not be made unless the following conditions have been
      satisfied:

      

    

    
      	
               
      

            	
              a.

            	
              [   ]

            	
              No
      distributions may be made until a Participant has reached Early or Normal
      Retirement Date.

            

    

    
      	
               
      

            	
              b.

            	
              [X]

            	
              Distributions
      may be made as soon as administratively feasible at the Participant’s
      election.

            

    

    
      	
               
      

            	
              c.

            	
              [   ]

            	
              The
      Participant has incurred  _____ 1-Year Break(s) in Service (or
      Period(s) of Severance if the Elapsed Time Method is
    elected).

            

    

    
      	
               
      

            	
              d.

            	
              [   ]

            	
              Distributions
      may be made at the Participant’s election as soon as administratively
      feasible after the Plan Year coincident with or next following termination
      of employment.

            

    

    
      	
               
      

            	
              e.

            	
              [   ]

            	
              Distributions
      may be made at the Participant’s election as soon as administratively
      feasible after the Plan Year quarter coincident with or next (allowing
      termination of employment.

            

    

    
      	
               
      

            	
              f.

            	
              [   ]

            	
              Distributions
      maybe made at the Participant’s election as soon as administratively
      feasible after the Valuation Date coincident with or next following
      termination of employment.

            

    

    
      
        	
                 
      

              	
                g.

              	
                [   ]

              	
                Distributions
      may be made at the Participant’s election as soon as administratively
      feasible _______ months following termination of
    employment.

              
	 	
                h.

              	
                [   ]

              	
                Other:
      ____________________________________________________________________________
      

                  (must
      be objective conditions which are ascertainable and are not subject to
      Employer discretion except as otherwise permitted in Regulation 1.411(d)-4
      and may not exceed the limits of Code Section 40l(a)(14) as set forth in
      Plan Section 6.7).

                

              

      

    

    
      
      

    

    
      
      

    

    

    
      
        	
                41.

              	
                INVOLUNTARY
      DISTRIBUTIONS

              
	 	Will
      involuntary distributions of amounts less than $5,000 be made in
      accordance with the provisions of Sections 6.4, 6.5  and
      6.6?

      

    

    
      	
               
      

            	
              a.

            	
              [X]

            	
              Yes

            

    

    
      	
               
      

            	
              b.

            	
              [   ]

            	
              No

            

    

    

    
      
        	
                42.

              	
                MINIMUM
      DISTRIBUTION TRANSITIONAL RULES (Plan Section
  6.5(e))

              

      

    

    
      	
                              
      NOTE:

            	
              This
      Section does not apply to (1) a new Plan or (2) an amendment or
      restatement of an existing Plan that never contained the provisions of
      Code Section 401(a)(9) as in effect prior to the amendments made by the
      Small Business Job Protection Act of 1996
  (SBJPA).

            

    

    The
“required beginning date” for a Participant who is not a “five percent (5%)
owner” is:

    
      	
               
      

            	
              a.

            	
              [   ]

            	
              N/A.
      (This is a new Plan or this Plan has never included the pre-SBJPA
      provisions.)

            

    

    
      	
               
      

            	
              b.

            	
              [   ]

            	
              April
      1st of the calendar year following the year in which the Participant
      attains age 70 1/2. (The pre-SBJPA rules will continue to
      apply.)

            

    

    
      	
               
      

            	
              c.

            	
              [X]

            	
              April
      1st of the calendar year following the later of the year in which the
      Participant attains age 70 1/2 or retires (the post-SBJPA rules), with the
      following exceptions (select one or both and if no election is made, both
      will apply effective as of January 1,
1996):

            

    

    
      	
               
      

            	
              1.

            	
              [X]

            	
              A
      Participant who was already receiving required minimum distributions under
      the pre-SBJPA rules as of January 1, 1996
      (not earlier than January 1, 1996) may elect to stop receiving
      distributions and have them recommence in accordance with the post-SBJPA
      rules. Upon the recommencement of distributions, if the Plan permits
      annuities as a form of distribution then the following will
      apply:

            

    

    
      	
               
      

            	
              a.

            	
              [X]

            	
              N/A.
      Annuity distributions are not
permitted.

            

    

    
      	
               
      

            	
              b.

            	
              [   ]

            	
              Upon
      the recommencement of distributions, the original Annuity Starting Date
      will be retained.

            

    

    
      	
               
      

            	
              c.

            	
              [   ]

            	
              Upon
      the recommencement of distributions, a new Annuity Starting Date is
      created.

            

    

    
      	
               
      

            	
              2.

            	
              [X]

            	
              A
      Participant who had not begun receiving required minimum distributions as
      of January 1, 1996 (not earlier than January 1, 1996) may elect to defer
      commencement of distributions until retirement. The option to defer the
      commencement of distributions (i.e., to elect to receive in-service
      distributions upon attainment of age 70 1/2) will apply to all such
      Participants unless the option below is
elected:

            

    

    
      	
               
      

            	
              a.

            	
              [X]

            	
              N/A.

            

    

    
      	
               
      

            	
              b.

            	
              [   ]

            	
              The
      in-service distribution option is eliminated with respect to Participants
      who attain age 70 1/2 in or after the calendar year that begins after the
      later of (1) December 31, 1998, or (2) the adoption date of the amendment
      and restatement to bring the Plan into compliance with SBJPA. (This option
      may only be elected if the amendment to eliminate the in-service
      distribution is adopted no later than the last day of the remedial
      amendment period that applies to the Plan for changes under
      SBJPA.)

            

    

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

     

    
      
        	
                43.

              	
                DISTRIBUTIONS
      UPON DEATH (Plan Section 6.6(h))

              
	 	Distributions
      upon the death of a Participant prior to receiving any benefits
      shall...

      

    

    
      	
               
      

            	
              a.

            	
              [X]

            	
              be
      made pursuant to the election of the Participant or
      beneficiary.

            

    

    
      	
               
      

            	
              b.

            	
              [   ]

            	
              begin
      within 1 year of death for a designated beneficiary and be payable over
      the life (or over a period not exceeding the life expectancy) of such
      beneficiary, except that if the beneficiary is the Participant’s spouse,
      begin prier to December 31st of the year in which the Participant would
      have attained age 70 1/2.

            

    

    
      	
               
      

            	
              c.

            	
              [   ]

            	
              be
      made within 5 (or if lesser _________) years of death for all
      beneficiaries.

            

    

    
      	
               
      

            	
              d.

            	
              [   ]

            	
              be
      made within 5 (or if lesser _________) years of death for all
      beneficiaries, except that if the beneficiary is the Participant’s spouse,
      begin prior to December 31st of the year in which the Participant would
      have attained age 70 1/2 and be payable over the life (or over a period
      not exceeding the life expectancy) of such surviving
    spouse.

            

    

    

    
      
        	
                44.

              	
                HARDSHIP
      DISTRIBUTIONS (Plan Sections 6.11 and/or
12.9)

              

      

    

    
      	
               
      

            	
              a.

            	
              [   ]

            	
              No
      hardship distributions are
permitted.

            

    

    
      	
               
      

            	
              b.

            	
              [X]

            	
              Hardship
      distributions are permitted from the following accounts (select all that
      apply):

            

    

    
      	
               
      

            	
              1.

            	
              [   ]

            	
              All
      accounts.

            

    

    
      	
               
      

            	
              2.

            	
              [X]

            	
              Participant’s
      Elective Deferral Account.

            

    

    
      	
               
      

            	
              3.

            	
              [   ]

            	
              Participant’s
      Account attributable to Employer matching
  contributions.

            

    

    
      	
               
      

            	
              4.

            	
              [   ]

            	
              Participant’s
      Account attributable to Employer profit sharing
    contributions.

            

    

    
      	
               
      

            	
              5.

            	
              [   ]

            	
              Participant’s
      Rollover Account.

            

    

    
      	
               
      

            	
              6.

            	
              [   ]

            	
              Participant’s
      Transfer Account.

            

    

    
      	
               
      

            	
              7.

            	
              [   ]

            	
              Participant’s
      Voluntary Contribution Account.

            

    

    
      	
                             
      NOTE:

            	
              Distributions
      from a Participant’s Elective Deferral Account are limited to the portion
      of such account attributable to such Participant’s Elective Deferrals (and
      earnings attributable thereto up to December 3l, 1988). Hardship
      distributions are not permitted from a Participant’s Qualified
      Non-Elective Account (including any 401(k) Safe Harbor Contributions) or
      Qualified Matching Contribution
Account.

            

    

    

    AND,
shall the safe harbor hardship rules of Plan Section 12.9 apply to distributions
made from all accounts? (Note: The safe
harbor hardship rules automatically apply to hardship distributions of Elective
Deferrals.)

    
      	
               
      

            	
              c.

            	
              [   ]

            	
              No
      or N/A. The provisions of Plan Section 6.11 apply to hardship
      distributions from all accounts other than a Participant’s Elective
      Deferral Account.

            

    

    
      	
               
      

            	
              d.

            	
              [X]

            	
              Yes.
      The provisions of Plan Section 12.9 apply to all hardship
      distributions.

            

    

    

    AND, are
distributions restricted to those accounts in which a Participant is fully
Vested?

    
      	
               
      

            	
              e.

            	
              [X]

            	
              Yes,
      distributions may only be made from accounts which are fully
      Vested.

            

    

    
      	
               
      

            	
              f.

            	
              [   ]

            	
              No.
      (If elected, the fraction at Plan Section 6.5(h) shall apply in
      determining vesting of the portion of the account balance not
      withdrawn).

            

    

    

    AND, the
minimum hardship distribution shall be...

    
      	
               
      

            	
              g.

            	
              [   ]

            	
              N/A.
      There is no minimum.

            

    

    
      	
               
      

            	
              h.

            	
              [X]

            	
              $500 (may not
      exceed $1,000).

            

    

    

    
      
        	
                45.

              	
                IN-SERVICE
      DISTRIBUTIONS (Plan Section
6.10)

              

      

    

    
      	
               
      

            	
              a.

            	
              [   ]

            	
              In-service
      distributions may not be made (except as otherwise elected for Hardship
      Distributions).

            

    

    
      	
               
      

            	
              b.

            	
              [X]

            	
              In-service
      distributions may be made to a Participant who has not separated from
      service provided any of the following conditions have been satisfied
      (select all that apply):

            

    

    
      	
               
      

            	
              1.

            	
              [X]

            	
              the
      Participant has attained age 59
      1⁄2.

            

    

    
      	
               
      

            	
              2.

            	
              [   ]

            	
              the
      Participant has reached Normal Retirement
Age.

            

    

    
      	
               
      

            	
              3.

            	
              [   ]

            	
              the
      Participant has been a Participant in the Plan for at least ____ years
      (may not be less than five (5)).

            

    

    
      	
               
      

            	
              4.

            	
              [   ]

            	
              the
      amounts being distributed have accumulated in the Plan for at least two
      (2) years.

            

    

    

    AND,
in-service distributions are permitted from the following accounts (select all
that apply):

    
      
        	 	c. 	[X] 	All
      accounts.
	 	d.	[   ]	Participant’s
      Elective Deferral Account,
	 	
                e.

              	
                [   ]

              	
                Qualified
      Matching Contribution Account and portion of Participant’s Account
      attributable to Employer matching contributions.

              
	 	f. 	
                [   ] 

              	Participant’s
      Account attributable to Employer profit sharing
contributions.
	 	g.	
                [   ] 

              	Qualified
      Non-Elective Contribution Account.
	 	h. 	
                [   ] 

              	Participant’s
      Rollover Account.
	 	i. 	
                [   ] 

              	Participant’s
      Transfer Account.
	
                 
      

              	
                j.

              	
                [   ]

              	
                Participant’s
      Voluntary Contribution
Account.

              

      

    

    
      	
                             
      NOTE:

            	
              Distributions
      from a Participant’s Elective Deferral Account. Qualified Matching
      Contribution Account and Qualified Non-Elective Account (including 401(k)
      Safe Harbor Contributions) are subject to restrictions and generally may
      not be distributed prior to age 59
1/2.

            

    

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

     

    AND, are
distributions restricted to those accounts in which a Participant is fully
Vested?

    
      	
               
      

            	
              k.

            	
              [   ]

            	
              Yes,
      distributions may only be made from accounts which are fully
      Vested.

            

    

    
      	
               
      

            	
              l.

            	
              [X]

            	
              No.
      (If elected, the fraction at Plan Section 6.5(h) will apply in determining
      vesting of the portion of the account balance not
    withdrawn.)

            

    

    

    AND, the
minimum distribution shall be...

    
      	
               
      

            	
              m.

            	
              [X]

            	
              N/A.
      There is no minimum.

            

    

    
      	
               
      

            	
              n.

            	
              [   ]

            	
              $______
      (may not exceed $1,000).

            

    

    

    NONDISCRIMINATION
TESTING

    

    
      
        	
                46.

              	
                HIGHLY
      COMPENSATED EMPLOYEE (Plan Section
1.31)

              

      

    

    
      	
                             
      NOTE:

            	
              If
      this is a GUST restatement, complete the questions in this Section
      retroactively to the first Plan Year beginning after
  1996.

            

    

    

    Top-Paid Group Election. Will
the top-paid group election be made? (The election made below for the latest
year will continue to apply to subsequent Plan Years unless a different election
is made.)

    
      	
               
      

            	
              a.

            	
              [   ]

            	
              Yes,
      for the Plan Year beginning in:
________.

            

    

    
      	
               
      

            	
              b.

            	
              [X]

            	
              No,
      for the Plan Year beginning in:  2007.

            

    

    

    Calendar Year Data Election.
Will the calendar year data election be used?

    (The
election made below for the latest year will continue to apply to subsequent
Plan Years unless a different election is made.)

    
      	
               
      

            	
              c.

            	
              [   ]

            	
              Yes,
      for the Plan Year beginning in:
________

            

    

    
      	
               
      

            	
              d.

            	
              [X]

            	
              No,
      for the Plan Year beginning in: 2007.

            

    

    

    
      
        	
                47.

              	
                ADP
      AND ACP TESTS (Plan Sections 12.4 and 12.6). The ADP ratio and ACP ratio
      for Non-Highly Compensated Employees will be based on the following. The
      election made below for the latest year will continue to apply to
      subsequent Plan Years unless the Plan is amended to a different
      election.

              

      

    

    
      	
               
      

            	
              a.

            	
              [   ]

            	
              N/A.
      This Plan satisfies the ADP Test Safe Harbor rules and there are no
      contributions subject to an ACP test or for all Plan Years beginning in or
      after the Effective Date of the Plan or, in the case of an amendment and
      restatement, for all Plan Years to which the amendment and restatement
      relates.

            

    

    
      	
               
      

            	
              b.

            	
              [   ]

            	
              PRIOR
      YEAR TESTING: The prior year ratio will be used for the Plan Year
      beginning in _______. (Note: If this election is made for the first year
      the Code Section 401(k) or 401(m) feature is added to this Plan (unless
      this Plan is a successor plan), the amount taken into account as the ADP
      and ACP of Non-Highly Compensated Employees for the preceding Plan Year
      will be 3%.)

            

    

    
      
        	
                 
      

              	
                c.

              	
                [X]

              	
                CURRENT
      YEAR TESTING: ‘the current year ratio will be used for the Plan Year
      beginning in 2007.

              

      

    

    
      
        	                 
      NOTE:  	In any Plan Year
      where the ADP Test Safe Harbor is being used but not the ACP Test Safe
      Harbor, then c above
      must be used if an ACP test applies to such Plan
  Year.

      

    

    

    TOP
HEAVY REQUIREMENTS

    

    
      
        	
                48.

              	
                TOP
      HEAVY DUPLICATIONS (Plan Section 4.3(i)): When a Non-Key Employee is a
      Participant in this Plan and a Defined Benefit Plan maintained by the
      Employer, indicate which method shall be utilized to avoid duplication of
      top heavy minimum benefits: (If b, c, d, or e is elected, f. must be
      completed.)

              

      

    

    
      	
               
      

            	
              a.

            	
              [X]

            	
              N/A.
      The Employer does not maintain a Defined Benefit Plan. (Go to next
      Question)

            

    

    
      	
               
      

            	
              b.

            	
              [   ]

            	
              The
      full top heavy minimum will be provided in each plan (if selected, Plan
      Section 4.3(i) shall not apply).

            

    

    
      	
               
      

            	
              c.

            	
              [   ]

            	
              5%
      defined contribution minimum.

            

    

    
      
        	
                 
      

              	
                d.

              	
                [   ]

              	
                2%
      defined benefit minimum.

              
	 	 
      

                e.

              	 
      

                [   ]

              	 
      

                Specify
      the method under which the Plans will provide top heavy minimum benefits
      for Non-Key Employees that will preclude Employer discretion and avoid
      inadvertent omissions:

              
	 	 	 	__________________________________________________________________ 
      _________________

      

    

    
      
        	 	 	 	 

      

    

    
      	
                              
      NOTE:

            	
              If
      c., d., or e. is selected and the Defined Benefit Plan and this Plan do
      not benefit the same Participants. the uniformity requirement of the
      Section 401(a)(4) Regulations maybe
violated.

            

    

    

    AND, the “Present Value of
Accrued Benefit” (Plan Section 9.2) for Top Heavy purposes shall be based
on...

    
      	
               
      

            	
              f.

            	
              [   ]

            	
              Interest
      Rate:                                                                                                                                                                               

            

    

    
      	
               
      

            	
              Mortality
      Table:                    
                                                                                                                                                            

            

    

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

     

    
      
        	
                49.

              	
                TOP
      HEAVY DUPLICATIONS (Plan Section 4.3(f)): When a Non-Key Employee is a
      Participant in this Plan and another defined contribution plan maintained
      by the Employer, indicate which method shall be utilized to avoid
      duplication of top heavy minimum
benefits:

              

      

    

    
      	
               
      

            	
              a.

            	
              [X]

            	
              N/A.
      The Employer does not maintain another qualified defined contribution
      plan.

            

    

    
      	
               
      

            	
              b.

            	
              [   ]

            	
              The
      full top heavy minimum will be provided in each
  plan.

            

    

    
      	
               
      

            	
              c.

            	
              [   ]

            	
              A
      minimum, non-integrated contribution of 3% of each Non-Key Employee’s 415
      Compensation shall be provided in the Money Purchase Plan (or other plan
      subject to Code Section 412).

            

    

    
      	
               
      

            	
              d.

            	
              [   ]

            	
              Specify
      the method under which the Plans will provide top heavy minimum benefits
      for Non-Key Employees that will preclude Employer discretion and avoid
      inadvertent omissions, including any adjustments required under Code
      Section 415:

              _____________________________________________________________________________________

            

    

    

    
      	
                              
      NOTE:

            	
              If
      c. or d. is selected and both plans do not benefit the same Participants,
      the uniformity requirement of the Section 401(a)(4) Regulations may be
      violated.

            

    

    

    MISCELLANEOUS

    

    
      
        	
                50.

              	
                LOANS
      TO PARTICIPANTS (Plan Section
7.6)

              

      

    

    
      	
               
      

            	
              a.

            	
              [   ]

            	
              Loans
      are not permitted.

            

    

    
      	
               
      

            	
              b.

            	
              [X]

            	
              Loans
      are permitted.

            

    

    

    IF loans
are permitted (select all that apply)...

    
      	
               
      

            	
              c.

            	
              [X]

            	
              loans
      will be treated as a Participant directed
  investment.

            

    

    
      	
               
      

            	
              d.

            	
              [   ]

            	
              loans
      will only be made for hardship or financial
  necessity.

            

    

    
      	
               
      

            	
              e.

            	
              [X]

            	
              the
      minimum loan will be $500 may not
      exceed $1,000).

            

    

    
      	
               
      

            	
              f.

            	
              [X]

            	
              a
      Participant may only have one (1) (e.g.,
      one (1) loan(s) outstanding at any
time.

            

    

    
      	
               
      

            	
              g.

            	
              [   ]

            	
              all
      outstanding loan balances will become due and payable in their entirety
      upon the occurrence of a distributable event (other than satisfaction of
      the conditions for an in-service
distribution).

            

    

    
      	
               
      

            	
              h.

            	
              [X]

            	
              loans
      will only be permitted from the following accounts (select all that
      apply):

            

    

    
      	
               
      

            	
              1.

            	
              [X]

            	
              All
      accounts.

            

    

    
      	
               
      

            	
              2.

            	
              [   ]

            	
              Participant’s
      Elective Deferral Account.

            

    

    
      	
               
      

            	
              3.

            	
              [   ]

            	
              Qualified
      Matching Contribution Account and/or portion of Participant’s Account
      attributable to Employer matching
contributions.

            

    

    
      	
               
      

            	
              4.

            	
              [   ]

            	
              Participant’s
      Account attributable to Employer profit sharing
    contributions.

            

    

    
      	
               
      

            	
              5.

            	
              [   ]

            	
              Qualified
      Non-Elective Contribution Account.

            

    

    
      	
               
      

            	
              6.

            	
              [   ]

            	
              Participant’s
      Rollover Account.

            

    

    
      	
               
      

            	
              7.

            	
              [   ]

            	
              Participant’s
      Transfer Account.

            

    

    
      	
               
      

            	
              8.

            	
              [   ]

            	
              Participant’s
      Voluntary Contribution Account.

            

    

    
      	
                             
      NOTE:

            	
              Department
      of Labor Regulations require the adoption of a separate written loan
      program setting forth the requirements outlined in Plan Section
      7.6.

            

    

    

    51.           DIRECTED
INVESTMENT ACCOUNTS (Plan Section 4.10)

    
      	
               
      

            	
              a.

            	
              [   ]

            	
              Participant
      directed investments are not
permitted.

            

    

    
      	
               
      

            	
              b.

            	
              [X]

            	
              Participant
      directed investments are permitted for the following accounts (select all
      that apply):

            

    

    
      	
               
      

            	
              1.

            	
              [X]

            	
              All
      accounts.

            

    

    
      	
               
      

            	
              2.

            	
              [   ]

            	
              Participant’s
      Elective Deferral Account.

            

    

    
      	
               
      

            	
              3.

            	
              [   ]

            	
              Qualified
      Matching Contribution Account and/or portion of Participant’s Account
      attributable to Employer matching
contributions.

            

    

    
      	
               
      

            	
              4.

            	
              [   ]

            	
              Participant’s
      Profit Sharing Account.

            

    

    
      	
               
      

            	
              5.

            	
              [   ]

            	
              Qualified
      Non-Elective Contribution Account.

            

    

    
      	
               
      

            	
              6.

            	
              [   ]

            	
              Participant’s
      Rollover Account.

            

    

    
      	
               
      

            	
              7.

            	
              [   ]

            	
              Participant’s
      Transfer Account.

            

    

    
      	
               
      

            	
              8.

            	
              [   ]

            	
              Participant’s
      Voluntary Contribution Account.

            

    

    
      	
               
      

            	
              9.

            	
              [   ]

            	
              Other
      ...______________

            

    

    

    AND, is
it intended that the Plan comply with Act Section 404(c) with respect to the
accounts subject to Participant investment direction?

    
      	
               
      

            	
              c.

            	
              [   ]

            	
              No.

            

    

    
      	
               
      

            	
              d.

            	
              [X]

            	
              Yes.

            

    

    

    AND, will
voting rights on directed investments be passed through to
Participants?

    
      	
               
      

            	
              e.

            	
              [   ]

            	
              No.
      Employer stock is not an alternative OR Plan is not intended to comply
      with Act Section 404(c).

            

    

    
      	
               
      

            	
              f.

            	
              [X]

            	
              Yes,
      for Employer stock only.

            

    

    
      	
               
      

            	
              g.

            	
              [   ]

            	
              Yes,
      for all investments.

            

    

    

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

    

    
      
        	
                52.

              	
                ROLLOVERS
      (Plan Section 4.6)

              

      

    

    
      	
               
      

            	
              a.

            	
              [   ]

            	
              Rollovers
      will not be accepted by this Plan.

            

    

    
      	
               
      

            	
              b.

            	
              [X]

            	
              Rollovers
      will be accepted by this Plan.

            

    

    

    AND, if
b. is elected, rollovers may be accepted...

    
      	
               
      

            	
              c.

            	
              [X]

            	
              from
      any Eligible Employee, even if not a
  Participant.

            

    

    
      	
               
      

            	
              d.

            	
              [   ]

            	
              from
      Participants only.

            

    

     

    
      	
               

            	
              AND,
      distributions from a Participant’s Rollover Account may be
      made...

            

      
        	
                 
      

              	
                e.

              	
                [X]

              	
                at
      any time.

              

      

      
        	
                 
      

              	
                f.

              	
                [   ]

              	
                only
      when the Participant is otherwise entitled to a distribution under the
      Plan.

              

      

    

    

    
      
        	
                53.

              	
                AFTER-TAX
      VOLUNTARY EMPLOYEE CONTRIBUTIONS (Plan Section
  4.8)

              

      

    

    
      	
               
      

            	
              a.

            	
              [X]

            	
              After-tax
      voluntary Employee contributions will not be
  allowed.

            

    

    
      	
               
      

            	
              b.

            	
              [   ]

            	
              After-tax
      voluntary Employee contributions will be
  allowed.

            

    

    

    
      
        	
                54.

              	
                LIFE
      INSURANCE (Plan Section 7.5)

              

      

    

    
      	
               
      

            	
              a.

            	
              [X]

            	
              Life
      insurance may not be purchased.

            

    

    
      	
               
      

            	
              b.

            	
              [   ]

            	
              Life
      insurance may be purchased at the option of the
    Administrator.

            

    

    
      	
               
      

            	
              c.

            	
              [   ]

            	
              Life
      insurance may be purchased at the option of the
    Participant.

            

    

     

    AND, if
b. or c. is elected, the purchase of initial or additional life insurance will
be subject to the following limitations (select all that apply):

    
      	
               
      

            	
              d.

            	
              [   ]

            	
              N/A,
      no limitations.

            

    

    
      	
               
      

            	
              e.

            	
              [   ]

            	
              each
      initial Contract will have a minimum face amount of
    $_______

            

    

    
      	
               
      

            	
              f.

            	
              [   ]

            	
              each
      additional Contract will have a minimum face amount of
      $_______

            

    

    
      	
               
      

            	
              g.

            	
              [   ]

            	
              the
      Participant has completed _____ Years of Service (or Periods of
      Service).

            

    

    
      	
               
      

            	
              h.

            	
              [   ]

            	
              the
      Participant has completed _____ Years of Service (or Periods of Service)
      while a Participant in the Plan.

            

    

    
      	
               
      

            	
              i.

            	
              [   ]

            	
              the
      Participant is under age _____ on the Contract issue
  date.

            

    

    
      	
               
      

            	
              j.

            	
              [   ]

            	
              the
      maximum amount of all Contracts on behalf of a Participant may not exceed
      $_______.

            

    

    
      	
               
      

            	
              k.

            	
              [   ]

            	
              the
      maximum face amount of any life insurance Contract will be
      $_________.

            

    

    

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

    

    The
adopting Employer may rely on an opinion letter issued by the Internal Revenue
Service as evidence that the plan is qualified under Code Section 401 only to
the extent provided in Announcement 2001-77, 2001-30 L.R.B.

     

    The
Employer may not rely on the opinion letter in certain other circumstances or
with respect to certain qualification requirements, which are specified in the
opinion letter issued with respect to the plan and in Announcement
2001-77.

     

    In order
to have reliance in such circumstances or with respect to such qualification
requirements. application for a determination  letter must be made to
Employee Plans Determinations of the Internal Revenue Service.

     

    This
Adoption Agreement may be used only in conjunction with basic Plan document #01.
This Adoption Agreement and the  basic Plan document shall together be
known as WySTAR Global Retirement Solutions Prototype Non-Standardized 401(k)
Profit Sharing Plan and Trust #01-005.

    

    The
adoption of this Plan, its qualification by the IRS. and the related tax
consequences are the responsibility of the Employer  and its
independent tax and legal advisors.

     

    WySTAR
Global Retirement Solutions will notify the Employer of any amendments made to
the Plan or of the discontinuance or abandonment of the Plan. Furthermore, in
order to be eligible to receive such notification, we agree to notify WySTAR
Global Retirement Solutions of any change in address.

     

    This Plan
may not be used, and shall not be deemed to be a Prototype Plan, unless an
authorized representative of WySTAR  Global Retirement Solutions has
acknowledged the use of the Plan. Such acknowledgment is for administerial
purposes only.  It acknowledges that the Employer is using the Plan
but does not represent that this Plan, including the choices selected on the
Adoption Agreement, has been reviewed by a representative of the sponsor or
constitutes a qualified retirement plan.

     

    WySTAR
Global Retirement Solutions

    

    By:   
/s/                                                                                          

    

    With
regard to any questions regarding the provisions of the Plan, adoption of the
Plan, or the effect of an opinion letter from the IRS, call or write (this
information must be completed by the sponsor of this Plan or its designated
representative):

     

    

    Name:         
    WySTAR Global Retirement
Solutions                                                                                                                                                                                                                                 

    

    Address:        1700 West 82nd Street, Suite
200                                                                                                                                  

    Bloomington, Minnesota
55431                                                                                                                                   
                                                                                                           

    

    Telephone:     (952)
703-1700                                                 

     

     

                                                                    

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

         

        The
Employer and Trustee hereby cause this Plan to be executed on January 1,
2008

      

    

    Furthermore,
this Plan may not be used unless acknowledged by WySTAR Global Retirement
Solutions or its authorized  representative.

     

    EMPLOYER:

    

    
      By:           
/s/ John
Fiske,
III                                                       

    

    
                       
The Talbots Group, LP

    

    

    

    [X]           The
signature of the Trustee appears on a separate trust agreement attached to the
Plan,

    

    OR

    
___________________________________________

    TRUSTEE

    

    

    PARTICIPATING
EMPLOYER

    

    
      By:            
/s/ John
Fiske,
III                                                       

    

    
                        
J. Jill, LLC

       

       

       

    

     

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

     

    
       

       

       

       

       

       

      EGTRRA

      AMENDMENT
TO THE

      

      
        
          	
                  THE
      J. JILL GROUP

                

        

      

      
        
          	
                  401(K)
      PLAN

                

        

      

       

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        
          	
                  EGTRRA
      - Employer

                

        

      

      ARTICLE
I

      PREAMBLE

      

      
        
          	
                  1.1

                	
                  Adoption and effective
      date of amendment. This amendment of the plan is adopted to reflect
      certain provisions of the Economic Growth and Tax Relief Reconciliation
      Act of 2001 (‘EGTRRA’). This amendment is intended as good faith
      compliance with the requirements of EGTRRA and is to be construed in accordance with
      EGTRRA and guidance issued thereunder. Except as otherwise provided, this
      amendment shall be effective as of the first day of the first plan year
      beginning after December 31,
2001.

                

        

      

       

      
        
          	
                  1.2

                	
                  Supersession of
      inconsistent provisions. This amendment shall supersede the
      provisions of the plan to the extent those provisions are inconsistent
      with the provisions of this
amendment.

                

        

      

       

      ARTICLE
II

      ADOPTION
AGREEMENT ELECTIONS

       

      
        
          
            
              
                
                  
                    
                      	
                              The
      questions in this Article II only need to be completed in  order
      to override the default provisions set forth below. If all of the default
      provisions will apply, then these questions should be
    skipped.

                            
	 
      
	
                              Unless
      the employer elects otherwise in this Article II, the following defaults
      apply:

                            
	
                              1) 
      

                            	
                              The vesting schedule for
      matching contributions will be a 6 year graded schedule (if the plan
      currently has a graded schedule that does not satisfy EGTRRA) or a 3 year cliff
      schedule (if the plan currently has a cliff schedule that does not satisfy
      EGTRRA), and such schedule will apply to all matching contributions (even
      those made prior to 2002).

                            
	
                              2)

                            	
                              Rollovers
      are automatically excluded in determining whether the $5,000 threshold has
      been exceeded for automatic cash-outs (if the plan is not subject to the
      qualified joint and survivor annuity rules and provides for automatic
      cash-outs). This is applied to alt participants regardless of when the
      distributable event occurred.

                            
	
                              3)

                            	
                              The
      suspension period after a hardship distribution is made will be 6 months
      and this will only apply to hardship distributions made after
      2001.

                            
	
                              4)

                            	
                              Catch-up
      contributions will be allowed.

                            
	
                              5)

                            	
                              For
      target benefit plans, the increased compensation limit of $200,000 will be
      applied retroactively (i.e., to years prior to 2002).

                            
	 
      

                    

                  

                

              

            

          

        

      

       

      
        
          	
                  2.1

                	
                  Vesting
      Schedule for Matching
Contributions

                

        

      

       

      If there
are matching contributions subject to a vesting schedule that does not satisfy
EGTRRA, then unless otherwise elected below  for participants who
complete an hour of service in a plan year beginning on December  31,
2001, the following vesting schedule will apply to all matching contributions
subject to a vesting schedule:

       

      If the
plan has a graded vesting schedule (i.e., the vesting schedule includes a vested
percentage that is more than 0% and less than 100%) the following will
apply:

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                	 
      	
                                        Years
      of vesting service

                                      	
                                        Nonforfeitable
      percent age

                                      	 
      
	 
      	
                                        2

                                      	
                                        20%

                                      	 
      
	 
      	
                                        3

                                      	
                                        40%

                                      	 
      
	 
      	
                                        4

                                      	
                                        60%

                                      	 
      
	 
      	
                                        5

                                      	
                                        50%

                                      	 
      
	 
      	
                                        6

                                      	
                                        100%

                                      	 
      

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

      

      If the
plan does not have a graded vesting schedule, then matching contributions will
be nonforfeitable upon the completion of 3 years of vesting
service.

       

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

       

      In lieu of the above vesting
schedule, the employer elects the following schedule:

      
        	
                 
      

              	
                a.
      [   ]

              	
                3
      year cliff (a participant’s accrued benefit derived from employer matching
      contributions shall be nonforfeitable 

                upon
      the participant’s completion of three years of vesting
      service).

              

      

      
        	
                 
      

              	
                b.
      [   ]

              	
                6
      year graded schedule (20% after 2 years of vesting service and an
      additional 20% for each year
thereafter).

              

      

      
        	
                 
      

              	
                c.
      [   ]

              	
                Other
      (must be at least as liberal as a. or the b.
  above):

              

      

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  	 
      	
                                          Years
      of vesting service

                                        	
                                          Non
      forfeitable percentage

                                        	 
      
	 
      	
                                          _____

                                        	
                                          _____%

                                        	 
      
	 
      	
                                          _____

                                        	
                                          _____%

                                        	 
      
	 
      	
                                          _____

                                        	
                                          _____%

                                        	 
      
	 
      	
                                          _____

                                        	
                                          _____%

                                        	 
      
	 
      	
                                          _____

                                        	
                                          _____%

                                        	 
      

                                

                              

                            

                          

                        

                      

                       

                    

                  

                

              

            

          

        

      

      The
vesting schedule set forth herein shall only apply to participants who complete
an hour of service in a plan year beginning after December 31, 2001, and, unless
the option below is elected, shall apply to all matching contributions subject
to a vesting schedule.

      
        	
                 
      

              	
                d.
      [   ]

              	
                The
      vesting schedule will only apply to matching contributions made in plan
      years beginning after December 31, 2001 (the prior schedule will apply to
      matching contributions made in prior plan
  years).

              

      

      

      
        
          	
                  2.2

                	
                  Exclusion of Rollovers in
      Application of Involuntary Cash-out Provisions (for profit sharing and
      401(k) plans only). If the plan is not subject to the qualified
      joint and survivor annuity rules and includes involuntary cash-out
      provisions, then unless one of the options below is elected, effective for
      distributions made after December 31, 2001, rollover contributions will be
      excluded in determining the value of the participant’s nonforfeitable
      account balance for purposes of the plan’s involuntary cash-out
      rules.

                

        

      

       

      
        	
              	
                a.
      [X] 

              	
                Rollover
      contributions will not be excluded.

              

        
          	
                   
      

                	
                  b.
      [   ]

                	
                  Rollover
      contributions will be excluded only with respect In distributions made
      after ____________.  (Enter a 

                  date
      no earlier than December 31,
2001.)

                

        

        
          	
                   
      

                	
                  c.
      [   ]

                	
                  Rollover
      contributions will only be excluded with respect to participants who
      separated from service after 

                  __________.  (Enter
      a date. The date maybe earlier than December 31,
    2001.)

                

        

         

      

      
        
          	
                  2.3

                	
                  Suspension period of hardship
      distributions. If the plan provides for hardship distributions upon
      satisfaction of the safe harbor (deemed) standards as set forth in Treas.
      Reg. Section 1.401(k)-l(d)(2)(iv), then, unless the option below is
      elected, the suspension period following a hardship distribution shall
      only apply to hardship distributions made after December 31,
      2001,

                

        

      

      
        
          	
                    

                	
                   
    

                	[   ] 	
                  With regard to
      hardship distributions made during 2001, a participant shall be prohibited
      from making 

                  elective
      deferrals and employee contributions under this and all other plans until
      the later of January 1, 

                  2002,
      or 6 months after receipt of the
      distribution.

                

        

         

      

      
        
          	
                  2.4

                	
                  Catch-up contributions (for
      401(k) profit sharing plans only): The plan permits catch-up
      contributions (Article VI) unless the option below is
    elected.

                

        

      

      
        
          
            	
                      

                  	
                     
    

                  	[   ] 	
                    The plan does not
      permit catch-up contributions to be
  made.

                  

          

                  

        

      

      ARTICLE
III

      VESTING
OF MATCHING CONTRIBUTIONS

      

      
        
          	
                  3.1

                	
                  Applicability.
      This Article shall apply to participants who complete an Hour of Service
      after December 31, 2001, with respect to accrued benefits derived from
      employer matching contributions made in plan years beginning after
      December 31, 2001. Unless otherwise elected by the employer in Section 2.1
      above, this Article shall also apply to all such participants with respect
      to accrued benefits derived from e employer matching contributions made in
      plan years beginning prior to January 1,
2002.

                

        

      

      

      
        
          	
                  3-2

                	
                  Vesting
      schedule. A participant's accrued benefit derived from employer
      matching contributions shall vest as provided in Section 2.1 of this
      amendment.

                

        

      

      

      ARTICLE
IV

      INVOLUNTARY
CASH-OUTS

      

      
        
          	
                  4.1

                	
                  Applicability and
      effective date. If the plan provides for involuntary cash-outs of
      amounts less than $5,000, then unless otherwise elected in Section 2.2 of
      this amendment, this Article shall apply for distributions made after
      December 31, 2001, and shall apply to all participants. However,
      regardless of the preceding, this Article shall not apply if the plan is
      subject to the qualified joint and survivor annuity requirements of
      Sections 401(a)(l1)and 417 of the
Code.

                

        

      

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

      
 

      
        
          	
                  4.2

                	
                  Rollovers disregarded
      in determining, value of account balance for involuntary
      distributions. For purposes of the Sections of the plan that
      provide for the involuntary distribution of vested accrued benefits of
      $5,000 or less, the value of a participant’s nonforfeitable account
      balance shall be determined without regard to that portion of the account
      balance that is attributable to rollover contributions (and earnings
      allocable thereto) within the meaning of Sections 402(c), 403(a)(4),
      403(b)(8), 408(d)(3)(A)(ii), and 457(e)(l6) of the Code. If the value of
      the participant’s nonforfeitable account balance as so determined is
      $5,000 or less, then the plan shall immediately distribute the
      participant’s entire nonforfeitable account
  balance.

                

        

      

      

      ARTICLE
V

      HARDSHIP
DISTRIBUTIONS

      

      
        
          	
                  5.1

                	
                  Applicability and
      effective date. If the plan provides for hardship distributions
      upon satisfaction of the safe harbor (deemed) standards as set forth in
      Treas. Reg. Section 1.401(k)-l(d)(2)(iv), then this Article shall apply
      for calendar years beginning after
2001.

                

        

      

      

      
        
          	
                  5.2

                	
                  Suspension period
      following hardship distribution. A participant who receives a
      distribution of elective deferrals after December 31, 2001, on account of
      hardship shall be prohibited from making elective deferrals and employee
      contributions under this and all other plans of the employer for 6 months
      after receipt of the distribution. Furthermore, if elected by the employer
      in Section 2.3 of this amendment, a participant who receives a
      distribution of elective deferrals in calendar year 2001 on account of
      hardship shall be prohibited from making elective deferrals and employee
      contributions under this and all other plans until the later of January 1,
      2002, or 6 months after receipt of the
  distribution.

                

        

      

      

      ARTICLE
VI

      CATCH-UP
CONTRIBUTIONS

      

      Catch-Up
Contributions.  Unless otherwise elected in Section 2.4 of this
amendment, all employees who are eligible to make elective deferrals under this
plan 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 Section 414(v) of the Code. Such catch-up contributions shall not
be taken into account for purposes of the provisions of the plan implementing
the required limitations of Sections 402(g) and 415 of the Code. The plan shall
not be treated as failing to satisfy the provisions of the plan implementing the
requirements of Section 40l(k)(3), 40l(k)(l1), 401(k)(12). 4l0(b), or 416 of the
Code, as applicable, by reason of the making of such catch-up
contributions.

      

      ARTICLE
VII

      INCREASE
IN COMPENSATION LIMIT

      Increase in Compensation
Limit. The annual compensation of each participant taken into account in
determining allocations for any plan year beginning after December 31, 2001,
shall not exceed $200,000. as adjusted for cost-of-living increases in
accordance with Section 401(a)(l7)(8) of the Code. Annual compensation means
compensation during the plan year or such other consecutive 12-month period over
which compensation is otherwise determined under the plan (the determination
period). If this is a target benefit plan, then except as otherwise elected in
Section 2.5 of this amendment, for purposes of determining benefit accruals in a
plan year beginning after December 31, 2001. compensation for any prior
determination period shall be limited to $200,000. The cost-of-living adjustment
in effect for a calendar year applies to annual compensation for the
determination period that begins with or within such calendar year.

      

      ARTICLE
VIII

      PLAN
LOANS

      

      Plan loans for
owner-employees or shareholder-employees. If the plan permits loans to be
made to participants, then effective for plan loans made after December 31,
2001, plan provisions prohibiting loans to any owner-employee or
shareholder-employee shall cease to apply.

      

      ARTICLE
IX

      LIMITATIONS
ON CONTRIBUTIONS (IRC SECTION 415 LIMITS)

      

      
        
          	
                  9.1

                	
                  Effective
      date.  This Section shall be effective for limitation
      years beginning after December 31,
2001.

                

        

      

      

      
        
          	
                  9.2

                	
                  Maximum annual
      addition. Except to the extent permitted under Article VI of this
      amendment and Section 414(v) of the Code, if applicable, the annual
      addition that may be contributed or allocated to a participant’s account
      under the plan for any limitation year shall nor exceed the lesser
      of

                

        

      

      

      
        	
                 
      

              	
                a.

              	
                $40,000,
      as adjusted for increases in the cost-of-living under Section 415(d) of
      the Code, or

              

      

      

      
        	
                 
      

              	
                b.

              	
                100
      percent of the participant’s compensation, within the meaning of Section
      415(c){3) of the Code, for the limitation
year.

              

      

      

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

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

      ARTICLE
X

      MODIFICATION
OF TOP-HEAVY RULES

      

      
        	
                10.1

              	
                Effective
      Date.  This Article shall apply for purposes of
      determining whether the plan is a top-heavy plan under Section 416(g) of
      the Code for plan years beginning after December 31, 2001, and whether the
      plan satisfies the minimum benefits requirements of Section 416(c) of the
      Code for such years. This Article amends the top-heavy provisions of the
      plan.

              

      

      

      
        
          	
                  10.2

                	
                  Determination of
      top-heavy status.

                

        

      

      

      
        
          	
                  10.2.1

                	
                  Key employee.
      Key employee means any employee or former employee (including any deceased
      employee) who at any time during the plan year that includes the
      determination date was an officer of the employer having annual
      compensation greater than $130,000 (as adjusted under Section 416(i)(l) of
      the Cede for plan years beginning after December 31, 2002), a 5-percent
      owner of the employer, or a 1-percent owner of the employer having annual
      compensation of more than $150,000. For this purpose, annual compensation
      means compensation within the meaning of Section 415(c)(3) of the Code.
      The determination of who is a key employee will be made in accordance with
      Section 416(i)(l) of the Code and the applicable regulations and other
      guidance of general applicability issued
  thereunder.

                

        

      

      

      
        
          	
                  10.2.2

                	
                  Determination of
      present values and amounts. This Section 10.2.2 shall apply for
      purposes of determining the present values of accrued benefits and the
      amounts of account balances of employees as of the determination
      date.

                

        

      

      

      
        	
                 
      

              	
                a.

              	
                Distributions during
      year ending on the determination date. The present valises of
      accrued benefits and the amounts of account balances of an employee as of
      the determination date shall be increased by the distributions made with
      respect to the employee under the plan and any plan aggregated with the
      plan under Section 416(g)(2) of the Code during the 1-year period ending
      on the determination date. The preceding sentence shall also apply to
      distributions under a terminated plan which, had it not been terminated,
      would have been aggregated with the plan under Section 416(g)(2)(A)(i) of
      the Code. In the ease of a distribution made for a reason other than
      separation from service, death, or disability, this provision shall be
      applied by substituting “5-year period” for “1-year
    period.”

              

      

      

      
        	
                 
      

              	
                b.

              	
                Employees not
      performing services during year ending on the determination date.
      The accrued benefits and accounts of any individual who has not performed
      services for the employer during the 1-year period ending on the
      determination date shall not be taken into
  account.

              

      

      

      
        
          	
                  10.3

                	
                  Minimum
      benefits.

                

        

      

      

      
        
          	
                  10.3.1

                	
                  Matching
      contributions. 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 the plan. The preceding sentence
      shall apply with respect to matching
      contributions under the plan or, if the plan provides that the minimum
      contribution requirement shall be met in another plan, such other plan.
      Employer matching contributions that are used to satisfy the minimum
      contribution requirements shall be treated as matching contributions for
      purposes of the actual contribution percentage test and other requirements
      of Section 401(m) of the
Code.

                

        

      

      

      
        
          	
                  10.3.2

                	
                  Contributions under
      other plans. The employer may provide, in an addendum to this
      amendment, that the minimum benefit requirement shall be met in another
      plan (including another plan that consists solely of a cash or deferred
      arrangement which meets the requirements of Section 401(k)(12) of the Code
      and matching contributions with respect to which the requirements of
      Section 401(m)(11) of the Code are met). The addendum should include the
      name of the other plan. the minimum benefit that will be provided under
      such other plan, and the employees who will receive the minimum benefit
      under such other plan.

                

        

      

      

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

      

      ARTICLE
Xl

      DIRECT
ROLLOVERS

      

      
        
          	
                  11.1

                	
                  Effective
      Date.  This Article shall apply to distributions made
      after December 31, 2001.

                

        

      

      

      
        
          	
                  11.2

                	
                  Modification of
      definition of eligible retirement plan. For purposes of the direct
      rollover provisions of the plan, 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.
      The definition of eligible retirement plan shall also apply in the ease of
      a distribution to a surviving spouse. or to a spouse or former spouse who
      is the alternate payee under a qualified domestic relation order, as
      defined in Section 414(p) of the
Code.

                

        

      

      

      
        
          	
                  11.3

                	
                  Modification of
      definition of eligible rollover distribution to exclude hardship
      distributions. For purposes of the direct rollover provisions of
      the plan, any amount that is distributed on account of hardship shall not
      be an eligible rollover distribution and the distributee may not elect to
      have any portion of such a distribution paid directly to an eligible
      retirement plan.

                

        

      

      

      
        
          	
                  11.4

                	
                  Modification of
      definition of eligible rollover distribution to include after-tax employee
      contributions. For purposes of the direct rollover provisions in
      the plan, a portion of a distribution shall not fail to be an eligible
      rollover distribution merely because the portion consists of after-tax
      employee contributions which are not includible in gross income. However,
      such portion may be transferred only to an individual retirement account
      or annuity described in Section 408(a) or (b) of the Code, or to a
      qualified defined contribution plan described in Section 401(a) or 403(a)
      of the Code that agrees to separately account for amounts so transferred,
      including separately accounting for the portion of such distribution which
      is includible in gross income and the portion of such distribution which
      is not so ineludible.

                

        

      

      

      ARTICLE
XII

      ROLLOVERS
FROM OTHER PLANS

      

      Rollovers from other
plans. The employer, operationally and on a nondiscriminatory basis, may
limit the source of rollover contributions that may be accepted by this
plan.

      

      ARTICLE
XIII

      REPEAL
OF MULTIPLE USE TEST

      

      Repeal of Multiple Use
Test. The multiple use test described in Treasury Regulation Section
1.40l(m)-2 and the plan shall not apply for plan years beginning after December
31, 2001.

      

      ARTICLE
XIV

      ELECTIVE
DEFERRALS

      

      
        
          	
                  14.1

                	
                  Elective Deferrals –
      Contribution Limitation. No participant shall be permitted to have
      elective deferrals made under this plan, or any other qualified plan
      maintained by the employer during any taxable year, in excess of the
      dollar limitation contained in Section 402(g) of the Code in effect for
      such taxable year, except to the extent permitted under Article Vl of this
      amendment and Section 414(v) of the Code, if
  applicable.

                

        

      

      

      
        
          	
                  14.2

                	
                  Maximum Salary
      Reduction Contributions for SIMPLE plans.  If this is a
      SIMPLE 401(k) plan, then except to the extent permitted under Article VI
      of this amendment and Section 414(v) of the Code, if applicable, the
      maximum salary reduction contribution that can be made to this plan is the
      amount determined under Section 408(p)(2)(A)(ii) of the Code for the
      calendar year.

                

        

      

      

      ARTICLE
XV

      SAFE
HARBOR PLAN PROVISIONS

      

      Modification of Top-Heavy
Rules.  The top-heavy requirements of Section 416 of the Code
and the plan shall not apply in any year beginning after December 31, 2001, in
which the plan consists solely of a cash or deferred arrangement which meets the
requirements of Section 401(k)(12) of the Code and matching contributions with
respect to which the requirements of Section 40l(m)(11) of the Code are
met.

      

      ARTICLE
XVI

      DISTRIBUTION
UPON SEVERANCE OF EMPLOYMENT

      

      
        
          	
                  16.1

                	
                  Effective.  This
      Article shall apply for distributions and transactions made after December
      31, 2001. regardless of when the severance of employment
      occurred.

                

        

      

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

       

      
        
          	
                  16.2

                	
                  New distributable
      event.  A participant’s elective deferrals, qualified
      nonelective contributions, qualified matching contributions, and earnings
      attributable to these contributions shall be distributed on account of the
      participant’s severance from employment. However, such a distribution
      shall be subject to the other provisions of the plan regarding
      distributions, other than provisions that require a separation front
      service before such amounts may be
distributed.

                

        

      

      

      

       

      This
amendment has been executed this 1st day of January, 2008.

       

      
        
          
            
              
                	
                        Name
      of Plan:  

                      	
                        THE
      J. JILL GROUP 401(k)
PLAN

                      

              

            

          

        

         

        
          
            
              
                	
                        Name
      of Employer:  

                      	
                        The
      Talbots Group, LP

                      

              

            

          

        

         

        
          
            
              
                	
                        By:
       

                      	

                        /s/
      John Fiske, III

                      
	 
      	
                        EMPLOYER

                      

              

            

          

        

         

        
          
            
              
                	
                        Name
      of Participating Employer:  

                      	
                        J.
      Jill, LLC

                      

              

            

          

        

         

        
          
            
              
                	
                        By:
       

                      	

                        /s/
      John Fiske, III

                      
	 
      	
                        PARTICIPATING
      EMPLOYER

                      

              

            

          

        

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

       

       

       

       

       

      

      POST-EGTRRA

      AMENDMENT
TO THE

      

      THE
J. JILL GROUP

      401(K)
PLAN

       

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      ARTICLE
I

      PREAMBLE

      

      
        
          	
                  1.1

                	
                  Adoption and effective
      date of amendment.  This amendment of the plan is adopted
      to reflect certain provisions of the Economic Growth and Tax Relief
      Reconciliation Act of 2001 (“EGTRRA”), the Job Creation and Worker
      Assistance Act of 2002, and other IRS guidance. This amendment is intended
      as good faith compliance with the requirements of EGTRRA and is to be
      construed in accordance with EGTRRA and guidance issued thereunder. Except
      as otherwise provided, this amendment shall be effective as of the first
      day of the first plan year beginning after December 31,
    2001.

                

        

      

      

      
        
          	
                  1.2

                	
                  Supersession of
      inconsistent provisions. This amendment shall supersede the
      provisions of the plan to the extent those provisions are inconsistent
      with the provisions of this
amendment.

                

        

      

      

      ARTICLE
II

      ADOPTION
AGREEMENT ELECTIONS

      

      The
questions in this Article II only need to be completed in order to override the
default provisions set forth below. If all of the default provisions will apply,
then these questions should be skipped.

      

      Unless
the employer elects otherwise in this Article II, the following defaults
apply:

      

      
        	
                 
      

              	
                1.

              	
                If
      catch-up contributions are permitted, then the catch-up contributions are
      treated like any other elective deferrals for purposes of determining
      matching contributions under the
plan.

              

      

      

      
        	
                 
      

              	
                2.

              	
                For
      plans subject to the qualified joint and survivor annuity rule; rollovers
      are automatically excluded in determining whether the $5,000 threshold has
      been exceeded for automatic cash-outs (if the plan provides for automatic
      cash-outs), This is applied to all participants regardless of when the
      distributable event occurred,

              

      

      

      
        	
                 
      

              	
                3.

              	
                Amounts
      that are “deemed 125 compensation” are not included in the definition of
      compensation.

              

      

      

      
        
          	
                  2.1

                	
                  Exclusion of Rollovers in
      Application of Involuntary Cash-out Provisions.  If the
      plan is subject to the joint and survivor annuity rules and includes
      involuntary cash-out provisions, then unless one of the options below is
      elected, effective for distributions made after December 31, 2001,
      rollover contributions will be excluded in determining the value of a
      participant’s nonforfeitable account balance for purposes of the plan’s
      involuntary cash-out rules.

                
	 	
                  a.  [X] 

                	
                  Rollover
      contributions will not be excluded.

                
	 	
                  b.  [   ]

                	
                  Rollover
      contributions will be excluded only with respect to distributions made
      after _______ 

                  (Enter
      a date no earlier than December 3 1. 2001).

                
	 	
                  c.  [   ]

                	
                  Rollover
      contributions will only be excluded with respect to participants who
      separated from service 

                  after
      _________.  (Enter a date. The date may be earlier than December
      31, 2001.)

                

        

      

      
        
          
          

          
            
            

          

          
            
            

          

           

        

      

      
        
          	
                  2.2

                	
                  Catch-up contributions (for
      401(k) profit sharing plans only):  The plan permits
      catch-up contributions effective for calendar years beginning after
      December 31, 2001, (Article V) unless otherwise elected
    below.

                

        

      

      a.     [   ]            The
plan does not permit catch-up contributions to be made.

      
        b.     [   ]            Catch-up
contributions are permitted effective as of: __________.(enter a date no earlier
than January 1, 2002).

      

      
        
        

      

      

      And, catch-up contributions
will be taken into account in applying any matching contribution under the Plan
unless otherwise elected below.

      c.     [X]            Catch-up
contributions will not be taken into account in applying any matching
contribution under the Plan.

      

      
        
          	
                  2.3

                	
                  Deemed 125
      Compensation.  Article VI of this amendment shall not
      apply unless otherwise elected
below.

                

        

      

      

      
        	
                 
      

              	
                [   ]

              	
                Article
      VI of this amendment (Deemed 125 Compensation) shall apply effective as of
      Plan Years and Limitation Years beginning on or after __________ (insert
      the later of January 1, 1998, or the first day of the first plan year the
      Plan used this definition).

              

      

       

      ARTICLE
III

      INVOLUNTARY
CASH-OUTS

      

      
        
          	
                  3.1

                	
                  Applicability
      and Effective Date.  If the plan is subject to the qualified
      joint and survivor annuity rules and provides for involuntary cash-outs of
      amounts less than $5,000, then unless otherwise elected in Section 2.1 of
      this amendment, this Article shall apply for distributions made after
      December 31, 2001 and shall apply to all
  participants.

                

        

      

       

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

       

      
        
          	
                  3.2

                	
                  Rollovers Disregarded
      in determining value a. account balance for involuntary
      distribution.  For purposes of the Sections of the plan
      that provide for the involuntary distribution of vested accrued benefits
      of $5,000 or less, the value of a participant’s nonforfeitable account
      balance shall be determined without regard to that portion of the account
      balance that is attributable to rollover contributions (and earnings
      allocable thereto) within the meaning of Sections 402(c), 403(a)(4).
      403(b)(8), 408(d)(3)(A)(ii), and 457(e)(16) of the Code. If the value of
      the participant’s nonforfeitable account balance as so determined is
      $5,000 or less, then the plan shall immediately distribute the
      participant’s entire nonforfeitable account
  balance.

                

        

      

      

      ARTICLE
IV

      HARDSHIP
DISTRIBUTIONS

      

      Reduction of Section 402(g)
of the Code following hardship distribution.  If the plan
provides for hardship distributions upon satisfaction of the safe harbor
(deemed) standards as set forth in Treas. Reg. Section 1.401(k)-1(d)(2)(iv),
then effective as of the date the elective deferral suspension period is reduced
from 12 months to 6 months pursuant to EGTRRA. there shall be no reduction in
the maximum amount of elective deferrals that a Participant may make pursuant to
Section 402(g) of the Code solely because of a hardship distribution made by
this plan or any other plan of the Employer.

      

      ARTICLE
V

      CATCH-UP
CONTRIBUTIONS

      

      Catch-up
Contributions. Unless otherwise elected in Section 2.2 of this amendment,
effective for calendar years beginning after December 31, 2001, all employees
who are eligible to make elective deferrals under this plan and who have
attained age 50 before the close of the calendar year shall be eligible to make
catch-up contributions in accordance with, and subject to the limitations of,
Section 414(v) of the Code. Such catch-tip contributions shall not be taken into
account for purposes of the provisions of the plan implementing the required
limitations of Sections 402(g) and 415 of the Code. The plan shall not be
treated as failing to satisfy the provisions of the plan implementing the
requirements of Sections 401(k)(3), 401(k)(11), 401(k)(12), 410(b), or 416 of
the Code, as applicable, by reason of the making of such catch-up
contributions.

      

      If
elected in Section 2.2, catch-up contributions shall not be treated as elective
deferrals for purposes of applying any Employer matching contributions under the
plan.

      

      ARTICLE
VI

      DEEMED
125 COMPENSATION

      

      If
elected, this Article shall apply as of the effective date specified in Section
2.3 of this amendment.  For purposes of any definition of compensation
under this Plan that includes a reference to amounts under Section 125 of the
Code, amounts under Section 125 of the Code include any amounts not available to
a Participant in cash in lieu of group health coverage because the Participant
is unable to certify that he or she has other health coverage. An amount will be
treated as an amount under Section 125 of the Code only if the Employer does not
request or collect information regarding the Participant’s other health coverage
as part of the enrollment process for the health plan.

      

       

      This
amendment has been executed this 1st day of January, 2008.

       

      
        
          
            
              
                	
                        Name
      of Plan:  

                      	
                        THE
      J. JILL GROUP 401(k)
PLAN

                      

              

            

          

        

         

        
          
            
              
                	
                        Name
      of Employer:  

                      	
                        The
      Talbots Group, LP

                      

              

            

          

        

         

        
          
            
              
                	
                        By:
       

                      	

                        /s/
      John Fiske, III

                      
	 
      	
                        EMPLOYER

                      

              

            

          

        

         

        
          
            
              
                	
                        Name
      of Participating Employer:  

                      	
                        J.
      Jill, LLC

                      

              

            

          

        

         

        
          
            
              
                	
                        By:
       

                      	

                        /s/
      John Fiske, III

                      
	 
      	
                        PARTICIPATING
      EMPLOYER

                      

              

            

          

        

       

      

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      

      

      

       

      
 

      401(a)(9)
MODEL

      AMENDMENT
TO THE

      

      THE
J. JILL GROUP

      401(K)
PLAN

       

       

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      401(a)(9)
- Sponsor

      MINIMUM
DISTRIBUTION REQUIREMENTS AMENDMENT

      

      ARTICLE
I

      GENERAL
RULES

      

      
        
          	
                  1.1

                	
                  Effective
      Date.  Unless a later effective date is specified in
      Section 6.1 of this Amendment, the provisions of this Amendment will apply
      for purposes of determining required minimum distributions for calendar
      years beginning with the 2002 calendar
year.

                

        

      

      

      
        
          	
                  1.2

                	
                  Coordination with
      Minimum Distribution Requirements Previously in
      Effect.  If the effective date of this Amendment is
      earlier than calendar years beginning with the 2003 calendar year.
      required minimum distributions for 2002 under this Amendment 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 Amendment equals or exceeds the required minimum
      distributions determined under this Amendment, 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 Amendment is less than the amount determined under
      this Amendment, 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
Amendment.

                

        

      

      

      
        
          	
                  1.3

                	
                  Precedence.  The
      requirements of this Amendment will take precedence over any inconsistent
      provisions of the Plan.

                

        

      

      

      
        
          	
                  1.4

                	
                  Requirements of
      Treasury Regulations Incorporated.  All distributions
      required under this Amendment will be determined and made in accordance
      with the Treasury regulations under Section 40l(a)(9) of the Internal
      Revenue Code.

                

        

      

      

      
        
          	
                  1.5

                	
                  TEFRA Section
      242(b)(2) Elections.  Notwithstanding the other
      provisions of this Amendment, distributions maybe made under a designation
      made before January I, 1984, in accordance with Section 242(b)(2) of the
      Tax Equity and Fiscal Responsibility Act (TEFRA) and the provisions of the
      Plan that relate to Section 242(b)(2) of
TEFRA.

                

        

      

      

      
        
          	
                  1.6

                	
                  Adoption by prototype
      sponsor.  Except as otherwise provided herein, pursuant
      to Section 5.01 of Revenue Procedure 2000-20, the sponsoring organization
      hereby adopts this amendment on behalf of all adopting
      employers.

                

        

      

      

      ARTICLE
II

      TIME
AND MANNER OF DISTRIBUTION

      

      
        
          	
                  2.1

                	
                  Required Beginning
      Date.  The Participant’s entire interest will be
      distributed, or begin to be distributed, to the Participant no later than
      the Participant’s required beginning
date.

                

        

      

      

      
        
          	
                  2.2

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

                

        

      

      

      (a) 
If the Participant’s surviving spouse is the Participant’s sole designated
beneficiary, hen, except as provided in Article VI, 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.

      

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

      

      (c) 
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.

      

      {d) 
If the Participant’s surviving spouse is the Participant’s sole designated
beneficiary and the surviving spouse dies after the Participant hut before
distributions to the surviving spouse begin, this Section 2.2, other than
Section 2.2(a), will apply as if the surviving spouse were the
Participant.

       

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

       

      For
purposes of this Section 2.2 and Article IV, unless Section 2.2(d) applies,
distributions are considered to begin on the Participant’s required beginning
date. If Section 2.2(d) applies, distributions are considered to begin on the
date distributions are required to begin to the surviving spouse under Section
2.2(a). 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 Section
2.2(a)), the date distributions are considered to begin is the date
distributions actually commence.

      

      
        
          	
                  2.3

                	
                  Forms of
      Distribution.  Unless the Participant’s interest is
      distributed in the form of an annuity purchased from an insurance company
      or in a single sum on or before the required beginning date, as of the
      first distribution calendar year distributions will be made in accordance
      with Articles III and IV of this Amendment. 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 Section 401(a)(9) of the Code and the Treasury
      regulations.

                

        

      

      

      ARTICLE
III

      REQUIRED
MINIMUM DISTRIBUTIONS DURING PARTICIPANT’S LIFETIME

      

      
        
          	
                  3.1

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

                

        

      

      

      (a)       the
quotient obtained by dividing the Participant’s account balance by the
distribution period in the Uniform Lifetime Table set forth in Section
l.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

      

      (b)       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.

      

      
        
          	
                  3
      2

                	
                  Lifetime Required
      Minimum Distributions Continue Through Year of Participant’s
      Death.  Required minimum distributions will be determined
      under this Article 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.

                

        

      

      

      ARTICLE
IV

      REQUIRED
MINIMUM DISTRIBUTIONS AFTER PARTICIPANTS DEATH

      

      
        
          	
                  4.1

                	
                  Death On Or After Date
      Distributions Begin.

                

        

      

      

      (a)       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:

      

      (1)       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.

      

      (2)       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.

      

      (3)       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.

      

      (b)       No Designated
Beneficiary.  If the Participant dies on or after the date
distributions begin and there is no designated beneficiary as of September 30 of
the year after the year of the Participant’s death, the minimum amount that will
be distributed for each distribution calendar year after the year of the
Participant’s death is the quotient obtained by dividing the Participant’s
account balance by the Participant’s remaining life expectancy calculated using
the age of the Participant in the year of death. reduced by one for each
subsequent year.

      

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

      

      
        
          	
                  4.2

                	
                  Death Before Date
      Distribution Begins.

                

        

      

      

      (a)      Participant Survived by
Designated Beneficiary.  Except as provided in Article VI, 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 Section 4.1.

      

      (b)      No Designated
Beneficiary.  lf 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 Participants 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.

      

      (c)      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 Section 2.2(a), this Section 4.2 will apply
as if the surviving spouse were the Participant.

      

      ARTICLE
V

      DEFINITIONS

      

      
        
          	
                  5.1

                	
                  Designated
      beneficiary.  The individual who is designated as the
      Beneficiary under the Plan and is the designated beneficiary under Section
      401(a)(9) of the Internal Revenue Code and Section 1.401(a)(9)-1,
      Q&A-4, of the Treasury
regulations.

                

        

      

      

      
        
          	
                  5.2

                	
                  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 Section 2.2.  The required minimum
      distribution for the Participant’s first distribution calendar year will
      be made on or before the Participant’s required beginning date. The
      required minimum distribution for other distribution calendar years,
      including the required minimum distribution for the distribution calendar
      year in which the Participant’s required beginning date occurs, will be
      made on or before December 31 of that distribution calendar
      year.

                

        

      

      

      
        
          	
                  5.3

                	
                  Life
      expectancy.  Life expectancy as computed by use of the
      Single Life Table in Section 1.401(a)(9)-9 of the Treasury
      regulations.

                

        

      

      

      
        
          	
                  5.4

                	
                  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 contribution made
      and allocated or forfeitures allocated to the account balance as of the
      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.

                

        

      

      

      
        
          	
                  5.5

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

                

        

      

      

      ARTICLE
VI

      ADOPTION
AGREEMENT ELECTIONS

      

      The
questions in this Article VI only need to be completed in order to override the
default provisions set forth below.  If all of the default provisions
will apply then these questions should be skipped.

      

      Unless
the employer elects otherwise in this Article VI, the following defaults
apply:

      

      
        
          	
                  1)

                	
                  The
      minimum distribution requirements are effective for distribution calendar
      years beginning with the 2002 calendar year unless a later date Is
      specified in Section 6.1 of this
Amendment.

                

        

      

      

      
        
          	
                  2)

                	
                  Participants
      or beneficiaries may elect on an individual basis whether the 5-year rule
      or the life expectancy rule in the Plan applies to distributions after the
      death of a Participant who has a designated
  beneficiary.

                

        

      

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

      
        

        
          
            	
                    6.1

                  	
                    Effective Date of Plan
      Amendment for Section 401(a)(9) Final and Temporary Treasury
      Regulations.

                  

          

        

         

      

      
        	
                 
      

              	
                [   ]

              	
                This
      Amendment applies for purposes of determining required minimum
      distributions for distribution calendar years beginning with the 2003
      calendar year. as well as required minimum distributions for the 2002
      distribution calendar year that are made on or after __________ (leave
      blank if this Amendment does not apply to any minimum distributions for
      the 2002 distribution calendar
year).

              

      

      

      
        
          	
                  6.2

                	
                  Election to not permit
      Participants or Beneficiaries to Elect 5-Year
  Rule.

                

        

      

      

      Unless
elected below. Participants or beneficiaries may elect on an individual basis
whether the 5-year rule or the life expectancy rule in Sections 2.2 and 4.2 of
this Amendment applies to distributions after the death of a Participant who has
a designated beneficiary. The election must be made no later than the earlier of
September 30 of the calendar year in which distribution would be required to
begin under Section 2.2 of this Amendment, or by September 31) of the calendar
year which contains the fifth anniversary of the Participant’s (or, if
applicable, surviving spouse’s) death.  If neither the Participant nor
beneficiary makes an election under this paragraph, distributions will be made
in accordance with Sections 2.2 and 4.2 of this Amendment arid, if applicable,
the elections in Section 6.3 of this Amendment below.

      

      
        	
                 
      

              	
                [   ]

              	
                The
      provision set forth above in this Section 6.2 shall not apply. Rather,
      Sections 2.2 and 4.2 of this Amendment shall apply except as elected in
      Section 6.3 of this Amendment
below.

              

      

      

      
        
          	
                  6.3

                	
                  Election to Apply 5-Year Rule
      to Distributions to Designated
  Beneficiaries.

                

        

      

      

      
        	
                 
      

              	
                [   ]

              	
                If
      the Participant dies before distributions begin and there is a designated
      beneficiary, distribution to the designated beneficiary is not required to
      begin by the date specified in the Plan, but the Participant’s entire
      interest will be distributed to the designated beneficiary by December 31
      of the calendar year containing the fifth anniversary of the Participant’s
      death. 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 either the Participant or the surviving spouse
      begin, this election will apply as if the surviving spouse were the
      Participant.

              

      

      

      If the
above is elected, then this election will apply to

      

      
        
          	 	
                   
      

                	
                  [   ]

                	
                  All
      distributions.

                

        

      

      

      
        
          	 	
                   
      

                	
                  [   ]

                	
                  The
      following distributions:

                

        

      

      

      
        
          	
                  6.4

                	
                  Election to Allow Designated
      Beneficiary Receiving Distributions Under 5-Year Rule to Elect Life
      Expectancy
Distributions.

                

        

      

      

      
        	
                 
      

              	
                [   ]

              	
                A
      designated beneficiary who is receiving payments under the 5-year rule may
      make a new ejection to receive payments under the life expectancy rule
      until December 31, 2003, provided that all amounts that would have been
      required to be distributed under the life expectancy rule for all
      distribution calendar years before 2004 are distributed by the earlier of
      December 31, 2003 or the end of the 5-year
  period.

              

      

      

      Except
with respect to any election made by the employer in Article VI, this amendment
is hereby adopted by the prototype sponsoring organization on behalf of all
adopting employers on:

      

      [Sponsor’s
signature and Adoption Date are on file with Sponsor]

      

      
        	
                NOTE:

              	
                The
      employer only needs to execute this amendment if an election has been made
      in Article VI of this amendment.

              

      

      

      This
amendment has been executed this 1st day of January, 2008.

       

      
        
          
            
              
                
                  	
                          Name
      of Plan:  

                        	
                          THE
      J. JILL GROUP 401(k)
PLAN

                        

                

              

            

          

           

          
            
              
                
                  	
                          Name
      of Employer:  

                        	
                          The
      Talbots Group, LP

                        

                

              

            

          

           

          
            
              
                
                  	
                          By:
       

                        	

                          /s/
      John Fiske, III

                        
	 
      	
                          EMPLOYER

                        

                

              

            

          

           

          
            
              
                
                  	
                          Name
      of Participating Employer:  

                        	
                          J.
      Jill, LLC

                        

                

              

            

          

           

          
            
              
                
                  	
                          By:
       

                        	

                          /s/
      John Fiske, III

                        
	 
      	
                          PARTICIPATING
      EMPLOYER

                        

                

              

            

          

         

         

      

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

      Sponsor
– lower cash-out threshold

      MANDATORY
DISTRIBUTION AMENDMENT

      (Code
Section 401(a)(31)(B))

      

      ARTICLE
I

      APPLICATION
OF AMENDMENT

      

      
        
          	
                  1.
      1

                	
                  Effective
      Date.  Unless a later effective date is specified in
      Article III of this Amendment, the provisions of this Amendment will apply
      with respect to distributions made on or after March 28,
    2005.

                

        

      

      

      
        
          	
                  1.2

                	
                  Precedence.  This
      Amendment supersedes any inconsistent provision of the
    Plan.

                

        

      

      

      
        
          	
                  1.3

                	
                  Adoption by prototype
      sponsor.  Except as otherwise provided herein, pursuant
      to authority granted by Section 5.01 of Revenue Procedure 2000-20, the
      sponsoring organization of the prototype hereby adopts this amendment on
      behalf of all adopting
employers.

                

        

      

      

      ARTICLE
II

      DEFAULT
PROVISION: LOWER MANDATORY CASH-OUT

      THRESHOLD
TO $1,000

      

      Unless
the Employer otherwise elects in Article III of this Amendment, the provisions
of the Plan for the mandatory distribution of amounts not exceeding $5,000, are
amended as follows:

      

      The
$5,000 threshold in such provisions is reduced to $1,000 and the value of the
Participant’s interest in the Plan for such purpose shall include any rollover
contributions (and earnings thereon) within the meaning of Code Sections 402(c),
403(a)(4), 403(b)(8), 408(d)(3)(A)(ii). and 457(e)(16).

      

      ARTICLE
III

      EMPLOYER’S
ALTERNATIVE ELECTIONS

      

      3.1            [   ]           Effective Date of Plan
Amendment

      

      This
Amendment applies with respect to distributions made on or after __________ (may
be a date later than March 28, 2005, only if the terms of the Plan already
comply with Code Section 40l(a)(31)(B)).

      

      3.2            [X]           Election to implement automatic IRA
rollover rules

       

      
        

        
          	
                   
      

                	
                  a. 
      [X]

                	
                  IRA rollover of
      amounts over $1,000.  In lieu of the default provision in
      Article 11 of this Amendment, the provisions of the Plan concerning
      mandatory distributions of amounts not exceeding $5,000 are amended as
      follows:

                

        

         

      

      In the
event of a mandatory distribution greater than $1,000 that is made in accordance
with the provisions of the Plan providing for an automatic distribution to a
Participant without the Participant’s consent, if the Participant does not elect
to have such distribution paid directly to an “eligible retirement plan”
specified by the Participant in a direct rollover (in accordance with the direct
rollover provisions of the Plan) or to receive the distribution directly. then
the Administrator shall pay the distribution in a direct rollover to an
individual retirement plan designated by the Administrator.

      

      
        	
                 
      

              	
                b. 
      [   ]

              	
                IRA rollover of amounts over
      and under $5,000.  In lieu of the default provision in
      Article II of this Amendment, the provisions of the Plan concerning
      mandatory distributions of amounts not exceeding $5,000 are amended as
      follows:

              

      

      

      In the
event of a mandatory distribution that is made in accordance with the provisions
of the Plan providing for an automatic distribution to a Participant without the
Participant’s consent, if the Participant does not elect to have such
distribution paid directly to an “eligible retirement plan” specified by the
Participant in a direct rollover (in accordance with the direct rollover
provisions of the Plan) or to receive the distribution directly, then the
Administrator shall pay the distribution in a direct rollover to an individual
retirement plan designated by the Administrator.

       

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

       

      3.3            [   ]           Election to modify mandatory
distribution threshold (may not be elected if 3.2 above is
elected)

      
        
        

      

      

      In lieu
of the default provision in Article II of this Amendment, the provisions of the
Plan that provide for the involuntary distribution of vested accrued benefits of
$5,000 or less, are modified as follows:

       

      
        
          	
                   
      

                	
                  a. 
      [   ]

                	
                  No
      mandatory distributions.  Participant consent to the
      distribution shall now be required before the distribution
      may be
made.

                

        

        
          

          
            	
                     
      

                  	
                    b. 
      [   ]

                  	
                    
                      Reduction
      of threshold to amount less than $1,000.  The $5,000
      dollar threshold in such provisions is reduced to $__________ (enter an
      amount less than $1,000) and the value of the Participant’s interest in
      the Plan for such purpose shall include any rollover contributions (and
      earnings thereon) within the meaning of Code Sections 402(c), 403(a)(4),
      403(b)(8), 408(d)(3)(A)(ii), and
      457(e)(16).

                    

                  

          

           

        

      

      

      Except
with respect to any election made by the employer in Article III, this amendment
is hereby adopted by the prototype sponsor on behalf of all adopting employers
on:

      

      [Sponsor’s
signature and Adoption Date are on file with Sponsor]

      

      
        	
                NOTE:

              	
                The
      employer only needs to execute this amendment if an election has been made
      in Article III of this amendment.

              

      

      

      This
amendment has been executed this 1st day of January, 2008.

       

      
        
          
            
              
                
                  
                    	
                            Name
      of Plan:  

                          	
                            THE
      J. JILL GROUP 401(k)
PLAN

                          

                  

                

              

            

            

            
              
                
                  
                    	
                            Name
      of Employer:  

                          	
                            The
      Talbots Group, LP

                          

                  

                

              

            

            

            
              
                
                  
                    	
                            By:
       

                          	

                            /s/
      John Fiske, III

                          
	 
      	
                            EMPLOYER

                          

                  

                

              

            

            

            
              
                
                  
                    	
                            Name
      of Participating Employer:  

                          	
                            J.
      Jill, LLC

                          

                  

                

              

            

            

            
              
                
                  
                    	
                            By:
       

                          	

                            /s/
      John Fiske, III

                          
	 
      	
                            PARTICIPATING
      EMPLOYER

                          

                  

                

              

            

          

           

          
            

          

        

      

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      Final
401(k) Amendment

      

      FINAL
401(k)/401(m) REGULATIONS AMENDMENT

      ARTICLE
I

      PREAMBLE

      

      
        
          	
                  1.1

                	
                  Adoption and effective
      date of amendment.  The sponsor adopts this Amendment to
      the Plan to reflect certain provisions of the Final Regulations under Code
      Sections 401(k) and 401(m) that were published on December 29, 2004
      (hereinafter referred to as the “Final 401(k)
      Regulations”).  The sponsor intends this Amendment as good faith
      compliance with the requirements of these provisions. This Amendment shall
      be effective with respect to Plan Years beginning after December 31, 2005
      unless the Employer otherwise elects in Section 2.1
  below.

                

        

      

      

      
        
          	
                  1.2

                	
                  Supersession of
      inconsistent provisions.  This Amendment shall supersede
      the provisions of the Plan to the extent those provisions are inconsistent
      with the provisions of this
Amendment.

                

        

      

      

      
        
          	
                  1.3

                	
                  Application of
      provisions. Certain provisions of this Amendment relate to elective
      deferrals of a 401(k) plan: if the Plan to which this Amendment relates is
      not a 401(k) plan. then those provisions of this Amendment do not apply
      Certain provisions of this Amendment relate to matching contributions
      and/or after-tax employee contributions subject to Code Section 401(m); if
      the Plan to which this Amendment relates is not subject to Code Section
      401(m), then those provisions of this Amendment do not
    apply.

                

        

      

      

      
        
          	
                  1.4

                	
                  Adoption by prototype
      sponsor.  Except as otherwise provided herein, pursuant
      to the provisions of the Plan and Section 5.01 of Revenue Procedure
      2005-16, the sponsor hereby adopts this Amendment on behalf of all
      adopting employers.

                

        

      

      

      ARTICLE
II

      EMPLOYER
ELECTIONS

      

      
        
          	
                  2.1

                	
                  Effective
      Date.  This Amendment is effective, and the Plan shall
      implement the provisions of the Final 401(k) Regulations, with respect to
      Plan Years beginning after December 31, 2005 unless the Employer elects an
      earlier effective date in either a or
b:

                

        

      

       

      
        
          
            
              	
                       
      

                    	
                      a. 
      [   ]

                    	
                      The Amendment is effective and the Final
      401(k) Regulations apply to Plan Years beginning after December
      31, 2004 (2005 and subsequent Plan
      Years).

                    	  
    
	 	
                      b. 
      [   ]

                    	The
      Amendment is effective and the Final 401(k) Regulations apply to Plan
      Years ending after December
      29. 2004(2004 and subsequent Plan Years).	 

            

          

          
             

          

        

      

      
        
          	
                  2.2

                	
                  ACP Test Safe
      Harbor.  Unless otherwise selected below, if this Plan
      uses the ADP Test Safe Harbor provisions, then the provisions of Amendment
      Section 9.2(a) apply and all matching contributions under the Plan will be
      applied without regard to any allocation conditions except as provided in
      that Section.

                

        

      

       

      
        
          
            
              	
                       
      

                    	
                      a. 
      [   ]

                    	
                      The provisions of Amendment Section 9.2(b)
      apply.  The allocation conditions applicable to matching contributions
      under the Plan continue to apply (if selected, the Plan is not an ACP Test
      Safe Harbor Plan).

                    	  
    
	 	
                      b. 
      [   ]

                    	The
      provisions of Amendment Section 9.2(c) apply. All matching contributions
      under the Plan will be applied
      without regard to any allocation conditions as of the effective date of
      this Amendment. 	 

            

          

          
             

          

        

      

      ARTICLE
III

      GENERAL
RULES

      

      
        
          	
                  3.1

                	
                  Deferral
      elections.  A cash or deferred arrangement (“CODA”) is an
      arrangement under which eligible Employees may make elective deferral
      elections. Such elections cannot relate to compensation that is currently
      available prior to the adoption or effective date of the CODA. In
      addition, except for occasional, bona fide administrative considerations,
      contributions made pursuant to such an election cannot precede the earlier
      of (l) the performance of services relating to the contribution and (2)
      when the compensation that is subject to the election would be currently
      available to the Employee in the absence of an election to
      defer.

                

        

      

      

      
        
          	
                  3.2

                	
                  Vesting
      Provisions. Elective Contributions are always fully vested and
      nonforfeitable. The Plan shall disregard Elective Contributions 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 Contributions into account in determining
      the Participant’s vested benefits under the Plan. Thus, for example, the
      Plan shall take Elective Contributions 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 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 us “the rule of
      parity”).

                

        

      

       

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

       

      ARTICLE
IV

      HARDSHIP
DISTRIBUTIONS

      

      
        
          	
                  4.1

                	
                  Applicability.  The
      provisions of this Article IV apply if the Plan provides for hardship
      distributions upon satisfaction of the deemed immediate and heavy
      financial need standards set forth in Regulation Section
      1.401(k)-1(d)(2)(iv)(A) as in effect prior to the issuance of the Final
      401(k) Regulations.

                

        

      

      

      
        
          	
                  4.2

                	
                  Hardship
      events. A distribution under the Plan is hereby deemed to be on
      account of an immediate and heavy financial need of an Employee if the
      distribution is for one of the following or any other item permitted under
      Regulation Section
1.401(k)-1(d)(3)(iii)(B):

                

        

      

      

      
        	
                 
      

              	
                (a)

              	
                Expenses
      for (or necessary to obtain) medical care that would be deductible under
      Code Section 213(d) (determined without regard to whether the expenses
      exceed 7.5% of adjusted gross
income);

              

      

      

      
        	
                 
      

              	
                (b)

              	
                Costs
      directly related to the purchase of a principal residence for the Employee
      (excluding mortgage payments):

              

      

      

      
        	
                 
      

              	
                (c)

              	
                Payment
      of tuition, related educational fees, and room and board expenses, for up
      to the next twelve (12) months of post-secondary education for the
      Employee, the Employee’s spouse, children, or dependents (as defined in
      Code Section 152, and, for taxable years beginning on or after January 1,
      2005, without regard to Code Section 152(b)(1), (b)(2), and
      (d)(1)(B);

              

      

      

      
        	
                 
      

              	
                (d)

              	
                Payments
      necessary to prevent the eviction of the Employee from the Employee’s
      principal residence or foreclosure on the mortgage on that
      residence:

              

      

      

      
        	
                 
      

              	
                (e)

              	
                Payments
      for burial or funeral expenses for the Employee’s deceased parent, spouse,
      children or dependents (as defined in Code Section 152, and, for taxable
      years beginning on or after January 1, 2005, without regard to Code
      Section l52(d)(1)(B)); or

              

      

      

      
        	
                 
      

              	
                (f)

              	
                Expenses
      for the repair of damage to the Employee’s principal residence that would
      qualify for the casualty deduction under Code Section 165 (determined
      without regard to whether the loss exceeds 10% of adjusted gross
      income).

              

      

      

      
        
          	
                  4.3

                	
                  Reduction of Code
      Section 402(g) limit following hardship distribution.  If
      the Plan provides for hardship distributions upon satisfaction of the safe
      harbor standards set forth in Regulation Sections 1.401(k)-1(d)(3)(iii)(B)
      (deemed immediate and heavy financial need) and l.401(k)-l(d)(3)(iv)(E)
      (deemed necessary to satisfy immediate need), then there shall be no
      reduction in the maximum amount of elective deferrals that a Participant
      may make pursuant to Code Section 402(g) solely because of a hardship
      distribution made by this Plan or any other plan of the
      Employer.

                

        

      

      

      ARTICLE
V

      ACTUAL
DEFERRAL PERCENTAGE (ADP) TEST

      

      
        
          	
                  5.1

                	
                  Targeted contribution
      limit.  Qualified Nonelective Contributions (as defined
      in Regulation Section 1.401(k)-(6) cannot be taken into account in
      determining the Actual Deferral Ratio (ADR) for a Plan Year for a
      Non-Highly Compensated Employee (NHCE) to the extent such contributions
      exceed the product of that NHCE’s Code Section 414(s) compensation and the
      greater of five percent (5%) or two (2) times the Plan’s “representative
      contribution rate.” Any Qualified Nonelective Contribution taken into
      account under an Actual Contribution Percentage (ACP) test under
      Regulation, Section 1.40l(m)-2(a)(6) (including the determination of the
      representative contribution rare for purposes of Regulation Section
      1.401(m)-2(a)(6)(v)(B)), is not permitted to be taken into account for
      purposes of this Section (including the determination of the
      “representative contribution rate” under this Section). For purposes of
      this Section:

                

        

      

      

      
        	
                 
      

              	
                (a)

              	
                The
      Plan’s “representative contribution rate” is the lowest “applicable
      contribution rate” of any eligible NHCE among a group of eligible NHCEs
      that consists of half of all eligible NHCEs for the Plan Year (or. if
      greater. the lowest “applicable contribution rate” of any eligible NHCE
      who is in the group of all eligible NHCEs for the Plan Year and who is
      employed by the Employer on the last day of the Plan Year).
      and

              

      

      

      
        	
                 
      

              	
                (b)

              	
                The
      “applicable contribution rate” for an eligible NHCE is the sum of the
      Qualified Matching Contributions

              

      

      (as
defined in Regulation Section 1.401(k)-6) taken into account in determining the
ADR for the eligible

      NHCE for
the Plan Year and the Qualified Nonelective Contributions made for the eligible
NHCE for the

      Plan
Year, divided by the eligible NHCE’s Code Section 414(s) compensation for the
same period.

      

      Notwithstanding
the above, Qualified Nonelective Contributions that are made in connection with
an Employer’s obligation to pay prevailing wages under the Davis-Bacon Act (46
Stat. 1494), Public Law 71-798, Service Contract Act of 1965 (79 Stat. 1965),
Public Law 89-256, or similar legislation can be taken into account for a Plan
Year for an  NHCE to the extent such contributions do not exceed 10
percent (10%) of that NHCE’s Code Section 414(s) compensation.

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      Qualified
Matching Contributions may only be used to calculate an ADR to the extent that
such Qualified Matching Contributions are matching contributions that are not
precluded from being taken into account under the ACP test for the Plan Year
under the rules of Regulation Section 1.401(m)-2(a)(5)(ii) and as set forth in
Section 7.1.

      

      
        
          	
                  5.2

                	
                  Limitation on QNECs
      and QMACs. Qualified Nonelective Contributions and Qualified
      Matching Contributions cannot be taken into account to determine an ADR to
      the extent such contributions are taken into account for purposes of
      satisfying any other ADP test, any ACP test, or the requirements of
      Regulation Section 1.401(k)-3, 1.401(m)-3, or 1.401(k)-4.  Thus,
      for example, matching contributions that are made pursuant to Regulation
      Section 1.401(k)-3(c) cannot be taken into account under the ADP test.
      Similarly, if a plan switches from the current year testing method to the
      prior year testing method pursuant to Regulation Section 1.40l(k)-2(c),
      Qualified Nonelective Contributions that are taken into account under the
      current year testing method for a year may not be taken into account under
      the prior year testing method for the next
year.

                

        

      

      

      
        
          	
                  5.3

                	
                  ADR of HCE if multiple
      plans. The Actual Deferral Ratio (ADR) of any Participant who is a
      Highly Compensated Employee (HCE) for the Plan Year and who is eligible to
      have Elective Contributions (as defined in Regulation Section 1.401(k)-6)
      (and Qualified Nonelective Contributions and/or Qualified Matching
      Contributions, if treated as Elective Contributions for purposes of the
      ADP test) allocated to such Participant’s accounts under two (2) or more
      cash or deferred arrangements described in Code Section 401(k), that are
      maintained by the same Employer, shall be determined as if such Elective
      Contributions (and, if applicable, such Qualified Nonelective
      Contributions and/or Qualified Matching Contributions) were made under a
      single arrangement. lf an HCE participates in two or more cash or deferred
      arrangements of the Employer that have different Plan Years, then all
      Elective Contributions made during the Plan Year being tested under all
      such cash or deferred arrangements shall be aggregated, without regard to
      the plan years of the other plans. However. for Plan Years beginning
      before the effective date of this Amendment, if the plans have different
      Plan Yeats. then all such cash or deferred arrangements ending with or
      within the same calendar year shall be treated as a single cash or
      deferred arrangement. Notwithstanding the foregoing, certain plans shall
      be treated as separate if mandatorily disaggregated under the Regulations
      of Code Section 401(k).

                

        

      

      

      
        
          	
                  5.4

                	
                  Plans using different
      testing methods for the ADP and ACP test.  Except as
      otherwise provided in this Section. the Plan may use the current year
      testing method or prior year testing method for the ADP test for a Plan
      Year without regard to whether the current year testing method or prior
      year testing method is used for the ACP test for that Plan Year. However,
      if different testing methods are used, then the Plan cannot
      use:

                

        

      

      

      
        	
                 
      

              	
                (a)

              	
                The
      recharacterization method of Regulation Section 1.40 l(k)-2(b)(3) to
      correct excess contributions for a Plan
Year;

              

      

      

      
        	
                 
      

              	
                (b)

              	
                The
      rules of Regulation Section 1.401(m)-2(a)(6)(ii) to take Elective
      Contributions into account under the ACP test (rather than the ACP test);
      or

              

      

      

      
        	
                 
      

              	
                (c)

              	
                The
      rules of Regulation Section 1.401(k)-2(a)(6)(v) to take Qualified Matching
      Contributions into account under the ADP test (rather than the ACP
      test).

              

      

      

      ARTICLE
VI

      ADJUSTMENT
TO ADP TEST

      

      
        
          	
                  6.1

                	
                  Distribution of Income
      attributable to Excess Contributions.  Distributions of
      Excess Contributions must be adjusted for income (gain or loss), including
      an adjustment for income for the period between the end of the Plan Year
      and the date of the distribution (the “gap period”). The Administrator has
      the discretion to determine and allocate income using any of the methods
      set forth below:

                

        

      

      

      
        	
                 
      

              	
                (a)

              	
                Reasonable method of
      allocating income.  The Administrator may use any
      reasonable method for computing the income allocable to Excess
      Contributions, provided that the method does not violate Code Section
      40l(a)(4). is used consistently for all Participants and for all
      corrective distributions under the Plan for the Plan Year, and is used by
      the Plan for allocating income to Participant’s accounts. A Plan will not
      fail to use a reasonable method for computing the income allocable to
      Excess Contributions merely because the income allocable to Excess
      Contributions is determined on a date that is no more than seven (7) days
      before the distribution.

              

      

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

      
        	
                 
      

              	
                (b)

              	
                Alternative method of
      allocating income.  The Administrator may allocate income
      to Excess Contributions for the Plan Year by multiplying the income for
      the Plan Year allocable to the Elective Contributions and other amounts
      taken into account under the ADP test (including contributions made for
      the Plan Year). by a fraction, the numerator of which is the Excess
      Contributions for the Employee for the Plan Year, and the denominator of
      which is the sum of the:

              

      

      

      
        	
                 
      

              	
                (1)

              	
                Account
      balance attributable to Elective Contributions and other amounts taken
      into account under the ADP test as of the beginning of the Plan Year.
      and

              

      

      

      
        	
                 
      

              	
                (2)

              	
                Any
      additional amount of such contributions made for the Plan
      Year.

              

      

      

      
        	
                 
      

              	
                (c)

              	
                Safe harbor method of
      allocating gap period income.  The Administrator may use
      the safe harbor method in this paragraph to determine income on Excess
      Contributions for the gap period. Under this safe harbor method, income on
      Excess Contributions for the gap period is equal to ten percent (10%) of
      the income allocable to Excess Contributions for the Plan Year that would
      be determined under paragraph (b) above. multiplied by the number of
      calendar months that have elapsed since the end of the Plan Year. For
      purposes of calculating the number of calendar months that have elapsed
      under the sate harbor method, a corrective distribution that is made on or
      before the fifteenth (15th) day of a month is treated as made on the last
      day of the preceding month and a distribution made after the fifteenth day
      of a month is treated as made on the last day of the
  month.

              

      

      

      
        	
                 
      

              	
                (d)

              	
                Alternative method for
      allocating Plan Year and gap period income.  The
      Administrator may determine the income for the aggregate of the Plan Year
      and the gap period, by applying the alternative method provided by
      paragraph (b) above to this aggregate period. This is accomplished by (1)
      substituting the income for the Plan Year and the gap period, for the
      income for the Plan Year, and (2) substituting the amounts taken into
      account under the ADP test for the Plan Year and the gap period, for the
      amounts taken into account under the ADP test for the Plan Year in
      determining the fraction that is multiplied by that
  income.

              

      

      

      
        
          	
                  6.2

                	
                  Corrective
      contributions.  If a failed ADP test is to be corrected
      by making an Employer contribution, then the provisions of the Plan for
      the corrective contributions shall be applied by limiting the contribution
      made on behalf of any NHCE pursuant to such provisions to an amount that
      does not exceed the targeted contribution limits of Section 5.1 of this
      Amendment, or in the case of a corrective contribution that is a Qualified
      Matching Contribution, the targeted contribution limit of Section 7.1 of
      this Amendment.

                

        

      

      

      ARTICLE
VII

      ACTUAL
CONTRIBUTION PERCENTAGE (ACP) TEST

      

      
        
          	
                  7.1

                	
                  Targeted matching
      contribution. limit.  A matching contribution with
      respect to an Elective Contribution for a Plan Year is not taken into
      account under the Actual Contribution Percentage (ACP) test for an NHCE to
      the extent it exceeds the greatest
of:

                

        

      

      

      
        	
                 
      

              	
                (a)

              	
                five
      percent (5%) of the NHCE’s Code Section 414(s) compensation for the Plan
      Year;

              

      

      

      
        	
                 
      

              	
                (b)

              	
                the
      NHCE's Elective Contributions for the Plan Year;
  and

              

      

      

      
        	
                 
      

              	
                (c)

              	
                the
      product of two (2) times the Plan’s “representative matching rate” and the
      NHCE’s Elective Contributions for the Plan
Year.

              

      

      

      For
purposes of this Section, the Plan’s “representative matching rate” is the
lowest “matching rate” for any eligible NHCE among a group of NHCEs that
consists of’ half of all eligible NHCEs in the Plan for the Plan Year who make
Elective Contributions for the Plan Year (or, if greater, the lowest “matching
rate” for all eligible NHCEs in the Plan who are employed by the Employer on the
last day of the Plan Year and who make Elective Contributions for the Plan
Year).

      

      For
purposes of this Section, the “matching rate” for an Employee generally is the
matching contributions made for such Employee divided by the Employee’s Elective
Contributions for the Plan Year. If the matching rate is not the same for all
levels of Elective Contributions for an Employee, then the Employee’s “matching
rate” is determined assuming that an Employee’s Elective Contributions are equal
to six percent (6%) of Code Section 414(s) compensation.

      

      If the
Plan provides a match with respect to the sum of the Employee’s after-tax
Employee contributions and Elective Contributions, then for purposes of this
Section, that sum is substituted for the amount of the Employee’s Elective
Contributions in subsections (b) & (c) above and in determining the
“matching rate,” and Employees who make either after-tax Employee contributions
or Elective Contributions are taken into account in determining she Plan’s
“representative matching rate.” Similarly, if the Plan provides a match with
respect to the Employee’s after-tax Employee contributions, but not Elective
Contributions, then for purposes of tins subsection, the Employee’s after-tax
Employee contributions are substituted for the amount of the Employee’s Elective
Contributions in subsections (b) & (c) above and in determining the
“matching rate,” and Employees who make after-tax Employee contributions are
taken into account in determining the Plan’s “representative matching
rate.”

      

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

      

      
        
          	
                  7.2

                	
                  Targeted QNEC
      Limit.  Qualified Nonelective Contributions (as defined
      in Regulation Section 1.40l(k)-6) cannot be taken into account under the
      Actual Contribution Percentage (ACP) test for a Plan Year for an NHCE to
      the extent such contributions exceed the product of that NHCE’s Code
      Section 414(s) compensation and the greater of five percent (5%) or two
      (2) times the Plan’s “representative contribution rate.” Any Qualified
      Nonelective Contribution taken into account under an Actual Deferral
      Percentage (ADP) test under Regulation Section 1.401(k)-2(a)(6) (including
      the determination of the “representative contribution rate” for purposes
      of Regulation Section l.401(k)-2(a)(6)(iv)(B)) is not permitted to be
      taken into account for purposes of this Section (including the
      determination of the “representative contribution rate” for purposes of
      subsection (a) below).  For purposes of this
      Section:

                

        

      

      

      
        	
                 
      

              	
                (a)

              	
                The
      Plan’s “representative contribution rate” is the lowest “applicable
      contribution rate” of any eligible NHCE among a group of eligible NHCE
      that consists of half of all eligible NHCEs for the Plan Year (or, if
      greater, the lowest “applicable contribution rate” of any eligible NHCE
      who is in the group of all eligible NHCEs for the Plan Year and who is
      employed by the Employer on the last day of the Plan Year),
      and

              

      

      

      
        	
                 
      

              	
                (b)

              	
                The
      “applicable contribution rate” for an eligible NHCE is the sum of the
      matching contributions (as defined in Regulation Section 1.401(m)-1(a)(2))
      taken into account in determining the ACR for the eligible NHCE for the
      Plan Year and the Qualified Nonelective Contributions made for that NHCE
      for the Plan Year, divided by that NHCE’s Code Section 414(s) compensation
      for the Plan Year.

              

      

      

      Notwithstanding
the above, Qualified Nonelective Contributions that are made in connection with
an Employer’s obligation to pay prevailing wages under the Davis-Bacon Act (46
Stat. 1494), Public Law 71-798, Service Contract Act of 1965 (79 Stat. 1965),
Public Law 89-286, or similar legislation can be taken into account for a Plan
Year for an NHCE to the extent such contributions do not exceed 10 percent (10%)
of that NHCE’s Code Section 414(s) compensation.

      

      
        
          	
                  7.3

                	
                  ACR
      of HCE if multiple plans. The Actual Contribution Ratio (ACR) for any
      Participant who is a Highly Compensated Employee (HCE) and who is eligible
      to have matching contributions or after-tax Employee contributions
      allocated to his or her account under two (2) or more plans described in
      Code Section 401(a), or arrangements described in Code Section 401(k) that
      are maintained by the same Employer, shall be determined as if the total
      of such contributions was made under each plan and arrangement. If an HCE
      participates in two (2) or more such plans or arrangements that have
      different plan years. then all matching contributions and after-tax
      Employee contributions made during the Plan Year being tested under all
      such plans and arrangements shall be aggregated, without regard to the
      plan years of the other plans. For plan years beginning before the
      effective date of this Amendment, all such plans and arrangements ending
      with or within the same calendar year shall be treated as a single plan or
      arrangement. Notwithstanding the foregoing, certain plans shall be treated
      as separate if mandatorily disaggregated under the Regulations of Code
      Section 401(m).

                

        

      

      

      
        
          	
                  7.4

                	
                  Plans using different
      testing methods for the ACP and ADP test.  Except as
      otherwise provided in this Section, the Plan may use the current year
      testing method or prior year testing method for the ACP test for a Plan
      Year without regard to whether the current year testing method or prior
      year testing method is used for the ADP test for that Plan Year. However,
      if different testing methods are used, then the Plan cannot
      use:

                

        

      

      

      
        	
                 
      

              	
                (a)

              	
                The
      recharacterization method of Regulation Section 1.401(k)-2(b)(3) to
      correct excess contributions for a Plan
Year;

              

      

      

      
        	
                 
      

              	
                (b)

              	
                The
      rules of Regulation Section 1.40l(m)-2(a)(6)(ii) to take Elective
      Contributions into account under the ACP test (rather than the ADP test);
      or

              

      

      

      
        	
                 
      

              	
                (c)

              	
                The
      rules of Regulation Section 1.401(k)-2(a)(6) to take Qualified Matching
      Contributions into account under the ADP test (rather than the ACP
      test).

              

      

      

      ARTICLE
VIII

      ADJUSTMENT
TO ACP TEST

      

      
        
          	
                  8.1

                	
                  Distribution of Income
      attributable to Excess Aggregate
      Contributions.  Distributions of Excess Aggregate
      Contributions must be adjusted for income (gain or loss), including an
      adjustment for income for the period between the end of the Plan Year and
      the date of the distribution (the “gap period”). For the purpose of this
      Section, “income” shall be determined arid allocated in accordance with
      the provisions of Section 6. 1 of this Amendment, except that such Section
      shall be applied by substituting “Excess Contributions” with “Excess
      Aggregate Contributions” and by substituting amounts taken into account
      under the ACP test for amounts taken into account under the ADP
      test.

                

        

      

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

       

      
        	
                8.2

              	
                Corrective
      contributions.  If a failed ACP test is to be corrected
      by making an Employer contribution, then the provisions of the Plan for
      the corrective contributions shall be applied by limiting the contribution
      made on behalf of any NHCE pursuant to such provisions to an amount that
      does not exceed the targeted contribution limits of Sections 7.1 and 7.2
      of this Amendment.

              

      

      

      

      ARTICLE
IX

      SAFE
HARBOR PLAN PROVISIONS

      

      
        
          	
                  9.1

                	
                  Applicability.  The
      provisions of this Article IX apply if the Plan uses the alternative
      method of satisfying the Actual Deferral Percentage (ADP) test set forth
      in Code Section 401(k)(12) (ADP Test Safe Harbor) and/or the Actual
      Contribution Percentage (ACP) test set forth in Code Section 401(m)(11)
      (ACP Test Safe Harbor).

                

        

      

      

      
        
          	
                  9.2

                	
                  Elimination of
      conditions on matching contributions.  Unless otherwise
      provided in Section 2.2 of this Amendment, the provisions of subsection
      (a) below shall apply. However, if the Employer so elects in Section 2.2
      of this Amendment, then the provisions of subsection (b) or (c) below
      shall apply.

                

        

      

      

      
        	
                 
      

              	
                (a)

              	
                Default
      provision.  If, prior to the date this Amendment has been
      executed, an ADP Test Safe harbor notice has been given for a Plan Year
      for which this Amendment is effective (see Amendment Section 1.1) and such
      notice provides that there are no allocation conditions imposed on any
      matching contributions under the Plan, then (1) the Plan will be an ACP
      Test Safe Harbor plan, provided the ACP Test Safe Harbor requirements are
      met and (2) the Plan will not impose any allocation conditions on matching
      contributions. However, if, prior to the date this Amendment has been
      executed, an ADP Test Safe Harbor notice has been given for a Plan Year
      for which this Amendment is effective and such notice provides that there
      are allocation conditions imposed on any matching contributions under the
      Plan, then the provisions of this Amendment do not modify any such
      allocation conditions or provisions for that Plan Year and the Plan must
      satisfy the ACP Test for such Plan Year using the current year testing
      method. With respect to any Plan Year beginning after the date this
      Amendment has been executed, if the Plan uses the ADP Test Safe Harbor and
      provides for matching contributions, then (1) the Plan will be an ACP Test
      Safe Harbor plan. provided the ACP Test Safe Harbor requirements are met
      and (2) the Plan will not impose any allocation conditions on matching
      contributions.

              

      

      

      
        	
                 
      

              	
                (b)

              	
                Retention of
      allocations conditions. If the Employer so elects in Section 2.2 of
      this Amendment, then the Plan will retain any allocation conditions
      contained in the Plan with regard to matching contributions for any Plan
      Year for which this Amendment is effective. In that case, the Plan must
      satisfy the ACP Test for each such Plan
Year.

              

      

      

      
        	
                 
      

              	
                (c)

              	
                Elimination of
      allocation conditions.  If the Employer so elects in
      Section 2.2 of this Amendment, then (1) the Plan will be an ACP Test Sale
      Harbor plan, provided the ACP Test Safe Harbor requirements are met, and
      (2) the Plan will not impose any allocation conditions on matching
      contributions.

              

      

      

      
        
          	
                  9.3

                	
                  Matching Catch-up
      contributions.  If the Plan provides for ADP Test Safe
      Harbor matching contributions or ACP Test Safe Harbor matching
      contributions, then catch-up contributions (as defined in Code Section
      414(v)) will be taken into account in applying such matching contributions
      under the Plan.

                

        

      

      

      
        
          	
                  9.4

                	
                  Plan Year
      requirement.  Except as provided in Regulation Sections
      l.401(k)-3(e) and 1.40l(k)-3(f), and below, the Plan will fail to satisfy
      the requirements of Code Section 401(k)(l2) and this Section for a Plan
      Year unless such provisions remain in effect for an entire twelve (12)
      month Plan Year.

                

        

      

      

      
        
          	
                  9.5

                	
                  Change of Plan
      Year.  If a Plan has a short Plan Year as a result of
      changing its Plan Year, then the Plan will not fail to satisfy the
      requirements of Section 9.4 of this Amendment merely because the Plan Year
      has less than twelve (12) months, provided
that:

                

        

      

      

      
        	
                 
      

              	
                (a)

              	
                The
      Plan satisfied the ADP Test Safe Harbor and/or ACP Test Safe Harbor
      requirements for the immediately preceding Plan Year;
  and

              

      

      

      
        	
                 
      

              	
                (b)

              	
                The
      Plan satisfies the ADP Test Safe Harbor and/or ACP Test Safe Harbor
      requirements (determined without regard to Regulation Section
      1.40l(k)-3(g)) for the immediately following Plan Year (or for the
      immediately following twelve (12) months if the immediately following Plan
      Year is less than twelve (12)
months).

              

      

      

      
        
          	
                  96

                	
                  Timing of matching
      contributions.  If the ADP Test Safe Harbor contribution
      being made to the Plan is a matching contribution (or any ACP Test Safe
      Harbor matching contribution) that is made separately with respect to each
      payroll period (or with respect to all payroll periods ending with or
      within each month or quarter of a Plan Year) taken into account under the
      Plan for the Plan Year, then safe harbor marching contributions with
      respect to any elective deferrals and/or after-tax employee contributions
      made during a Plan Year quarter must be contributed to the Plan by the
      last day of the immediately following Plan Year
  quarter.

                

        

      

      

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

      

      
        
          	
                  9.7

                	
                  Exiting Safe Harbor
      matching.  The Employer may amend the Plan during a Plan
      Year to reduce or eliminate prospectively any or all matching
      contributions under the Plan (including any ADP Test Safe Harbor matching
      contributions) provided: (a) the Plan Administrator provides a
      supplemental notice to the Participants which explains the consequences of
      the amendment, specifies the amendment’s effective date, and informs
      Participants that they will have a reasonable opportunity to modify their
      cash or deferred elections and, if applicable, after-tax Employee
      contribution elections; (b) Participants have a reasonable opportunity
      (including a reasonable period after receipt of the supplemental notice)
      prior to the effective date of the amendment to modify their cash or
      deferred elections and, if applicable, after-tax Employee contribution
      elections: and (c) the amendment is not effective earlier than the later
      of: (i) thirty (30) days after the Plan Administrator gives supplemental
      notice: or (ii) the date the Employer adopts the amendment.  An
      Employer which amends its Plan to eliminate or reduce any matching
      contribution under this Section effective during the Plan Year, must
      continue to apply all of the ADP Test Safe Harbor and/or ACP Test Safe
      Harbor requirements of the Plan until the amendment becomes effective and
      also must apply for the entire Plan Year. using current year testing, the
      ADP test and the ACP test.

                

        

      

      

      
        
          	
                  9.8

                	
                  Plan
      termination.  An Employer may terminate the Plan during a
      Plan Year in accordance with Plan termination provisions of the Plan and
      this Section.

                

        

      

      

      
        	
                 
      

              	
                (a)

              	
                Acquisition/disposition
      or substantial business hardship.  If the Employer
      terminates the Plan resulting in a short Plan Year, and the termination is
      on account of an acquisition or disposition transaction described in Code
      Section 4l0(b)(6)(C), or if the termination is on account of the
      Employer’s substantial business hardship within the meaning of Code
      Section 412(d), then the Plan remains an ADP Test Safe Harbor and/or ACP
      Test Safe Harbor Plan provided that the Employer satisfies the ADP Test
      Safe Harbor and/or ACP Test Safe Harbor provisions through the effective
      date of the Plan termination.

              

      

      

      
        	
                 
      

              	
                (b)

              	
                Other
      termination.  If the Employer terminates the Plan for any
      reason other than as described in Section 9.8(a) above, and the
      termination results in a short Plan Year. the Employer must conduct the
      termination under the provisions of Section 9.7 those, except that the
      Employer need not provide Participants with the right to change their cash
      or deferred elections.

              

      

      

      

      Except
with respect to any election made by the employer in Article II, this amendment
is hereby adopted by the prototype sponsor on behalf of all adopting employers
on:

      

      [Sponsor’s
signature and Adoption Date are on file with Sponsor]

      

      NOTE:  The
Employer only needs to execute this Amendment if an election has been made in
Article II of this Amendment.

      

      

      This
amendment has been executed this 1st
day of January, 2008.

       

      
        
          
            
              
                
                  
                    	
                            Name
      of Plan:      
          

                          	
                            THE
      J. JILL GROUP 401(k)
PLAN

                          

                  

                

              

            

             

            
              
                
                  
                    	
                            Name
      of Employer:  

                          	
                            The
      Talbots Group, LP

                          

                  

                

              

            

             

            
              
                
                  
                    	
                            By:
       

                          	

                            /s/
      John Fiske, III

                          
	 
      	
                            EMPLOYER

                          

                  

                

              

            

             

            
              
                
                  
                    	
                            Name
      of Participating Employer:  

                          	
                            J.
      Jill, LLC

                          

                  

                

              

            

             

            
              
                
                  
                    	
                            By:
       

                          	

                            /s/
      John Fiske, III

                          
	 
      	
                            PARTICIPATING
      EMPLOYER

                          

                  

                

              

            

           

           

        

      

       

       

      
7

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