Common use of SPECIAL RULES AND OPTIONS Clause in Contracts

SPECIAL RULES AND OPTIONS. If you miss the 60-day rollover deadline Generally, the 60-day rollover deadline cannot be extended. However, the IRS has the limited authority to waive the deadline under certain extraordinary circumstances, such as when external events prevented you from completing the rollover by the 60-day rollover deadline. To apply for a waiver, you must file a private letter ruling request with the IRS. Private letter ruling requests require the payment of a nonrefundable user fee. For more information, see IRS Publication 590, Individual Retirement Arrangements (IRAs). If you were born on or before January 1, 1936 If you were born on or before January 1, 1936 and receive a lump sum distribution that you do not roll over, special rules for calculating the amount of the tax on the payment might apply to you. For more information, see IRS Publication 575, Pension and Annuity Income. If you roll over your payment to a Xxxx XXX If you roll over the payment to a Xxxx XXX, a special rule applies under which the amount of the payment rolled over will be taxed. However, the 10% additional income tax on early distributions will not apply (unless you take the amount rolled over out of the Xxxx XXX within 5 years, counting from January 1 of the year of the rollover). If you roll over the payment to a Xxxx XXX, later payments from the Xxxx XXX that are qualified distributions will not be taxed (including earnings after the rollover). A qualified distribution from a Xxxx XXX is a payment made after you are age 59 1⁄2 (or after your death or disability, or as a qualified first-time homebuyer distribution of up to $10,000) and after you have had a Xxxx XXX for at least 5 years. In applying this 5-year rule, you count from January 1 of the year for which your first contribution was made to a Xxxx XXX. Payments from the Xxxx XXX that are not qualified distributions will be taxed to the extent of earnings after the rollover, including the 10% additional income tax on early distributions (unless an exception applies). You do not have to take required minimum distributions from a Xxxx XXX during your lifetime. For more information, see IRS Publication 590, Individual Retirement Arrangements (IRAs). You cannot roll over a payment from the Plan to a designated Xxxx account in an employer plan. If you are not a plan participant Payments after death of the participant. If you receive a distribution after the participant’s death that you do not roll over, the distribution will generally be taxed in the same manner described elsewhere in this notice. However, the 10% additional income tax on early distributions does not apply, and the special rule described under the section “If you were born on or before January 1, 1936” applies only if the participant was born on or before January 1, 1936. • If you are a surviving spouse. If you receive a payment from the Plan as the surviving spouse of a deceased participant, you have the same rollover options that the participant would have had, as described elsewhere in this notice. In addition, if you choose to do a rollover to an IRA, you may treat the IRA as your own or as an inherited IRA. An IRA you treat as your own is treated like any other IRA of yours, so that payments made to you before you are age 591⁄2 will be subject to the 10% additional income tax on early distributions (unless an exception applies) and required minimum distributions from your IRA do not have to start until after you are age 701⁄2. If you treat the IRA as an inherited IRA, payments from the IRA will not be subject to the 10% additional income tax on early distributions. However, if the participant had started taking required minimum distributions, you will have to receive required minimum distributions from the inherited IRA. If the participant had not started taking required minimum distributions from the Plan, you will not have to start receiving required minimum distributions from the inherited IRA until the year the participant would have been age 701⁄2. • If you are a surviving beneficiary other than a spouse. If you receive a payment from the Plan because of the participant’s death and you are a designated beneficiary other than a surviving spouse, the only rollover option you have is to do a direct rollover to an inherited IRA. Payments from the inherited IRA will not be subject to the 10% additional income tax on early distributions. You will have to receive required minimum distributions from the inherited IRA.

SPECIAL RULES AND OPTIONS. If you miss the 60-day rollover deadline Generally, the 60-day rollover deadline cannot be extended. However, the IRS has the limited authority to waive the deadline under certain extraordinary circumstances, such as when external events prevented you from completing the rollover by the 60-day rollover deadline. To apply for a waiver, you must file file a private letter ruling request with the IRS. Private letter ruling requests require the payment of a nonrefundable user fee. For more information, see IRS Publication 590, Individual Retirement Arrangements (IRAs). If you were born on or before January 1, 1936 If you were born on or before January 1, 1936 and receive a lump sum distribution that you do not roll over, special rules for calculating the amount of the tax on the payment might apply to you. For more information, see IRS Publication 575, Pension and Annuity Income. If you roll over your payment to a Xxxx XXX You can roll over a payment made before January 1, 2010 to a Xxxx XXX only if your modified adjusted gross income is not more than $100,000 for the year the payment is made to you and, if married, you file a joint return. These limitations do not apply to payments made to you after 2009. If you wish to roll over the payment to a Xxxx XXX, but you are not eligible to do a rollover to a Xxxx XXX until after 2009, you can do a rollover to a traditional IRA and then, after 2009, elect to convert the traditional IRA into a Xxxx XXX. If you roll over the payment to a Xxxx XXX, a special rule applies under which the amount of the payment rolled over (reduced by any after-tax amounts) will be taxed. However, the 10% additional income tax on early distributions will not apply (unless you take the amount rolled over out of the Xxxx XXX within 5 years, counting from January 1 of the year of the rollover). For payments during 2010 that are rolled over to a Xxxx XXX, the taxable amount can be spread over a 2-year period starting in 2011. If you roll over the payment to a Xxxx XXX, later payments from the Xxxx XXX that are qualified qualified distributions will not be taxed (including earnings after the rollover). A qualified qualified distribution from a Xxxx XXX is a payment made after you are age 59 1⁄2 59½ (or after your death or disability, or as a qualified firstqualified first-time homebuyer distribution of up to $10,000) and after you have had a Xxxx XXX for at least 5 years. In applying this 5-5- year rule, you count from January 1 of the year for which your first first contribution was made to a Xxxx XXX. Payments from the Xxxx XXX that are not qualified qualified distributions will be taxed to the extent of earnings after the rollover, including the 10% additional income tax on early distributions (unless an exception applies). You do not have to take required minimum distributions from a Xxxx XXX during your lifetime. For more information, see IRS Publication 590, Individual Retirement Arrangements (IRAs). You cannot roll over a payment from the Plan to a designated Xxxx account in an employer plan. If you are not a plan participant Payments after death of the participant. If you receive a distribution after the participant’s death that you do not roll over, the distribution will generally be taxed in the same manner described elsewhere in this notice. However, the 10% additional income tax on early distributions does not apply, and the special rule described under the section “If you were born on or before January 1, 1936” applies only if the participant was born on or before January 1, 1936. • If you are a surviving spouse. If you receive a payment from the Plan Settlement as the surviving spouse of a deceased participant, you have the same rollover options that the participant would have had, as described elsewhere in this notice. In addition, if you choose to do a rollover to an IRA, you may treat the IRA as your own or as an inherited IRA. An IRA you treat as your own is treated like any other IRA of yours, so that payments made to you before you are age 591⁄2 59½ will be subject to the 10% additional income tax on early distributions (unless an exception applies) and required minimum distributions from your IRA do not have to start until after you are age 701⁄2. 70½. If you treat the IRA as an inherited IRA, payments from the IRA will not be subject to the 10% additional income tax on early distributions. However, if the participant had started taking required minimum distributions, you will have to receive required minimum distributions from the inherited IRA. If the participant had not started taking required minimum distributions from the Plan, you will not have to start receiving required minimum distributions from the inherited IRA until the year the participant would have been age 701⁄2. • 70½. If you are a surviving beneficiary other than a spouse. If you receive a payment from the Plan Settlement because of the participant’s death and you are a designated beneficiary beneficiary other than a surviving spouse, the only rollover option you have is to do a direct rollover to an inherited IRA. Payments from the inherited IRA will not be subject to the 10% additional income tax on early distributions. You will have to receive required minimum distributions from the inherited IRA. Payments under a qualified domestic relations order. If you are the spouse or former spouse of the participant who receives a payment from the Settlement under a qualified domestic relations order (QDRO), you generally have the same options the participant would have (for example, you may rollover the payment to your own IRA or an eligible employer plan that will accept it). Payments under the QDRO will not be subject to the 10% additional income tax on early distributions. If you are a nonresident alien If you are a nonresident alien and you do not do a direct rollover to a U.S. IRA or U.S. employer plan, instead of withholding 20%, the Settlement is generally required to withhold 30% of the payment for federal income taxes. If the amount withheld exceeds the amount of tax you owe (as may happen if you do a 60- day rollover), you may request an income tax refund by filing Form 1040NR and attaching your Form 1042- S. See Form W-8BEN for claiming that you are entitled to a reduced rate of withholding under an income tax treaty. For more information, see also IRS Publication 519, U.S. Tax Guide for Aliens, and IRS Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Entities. If you are based outside of the United States If you are based outside of the United States, a Settlement payment may be subject to other taxes for which you are responsible. You should contact an independent adviser if you have any questions about such taxes. Other special rules If your payments for the year are less than $200 (not including payments from a designated Xxxx account in the Plan), the Settlement is not required to allow you to do a direct rollover and is not required to withhold for federal income taxes. However, you may do a 60-day rollover. You may have special rollover rights if you recently served in the U.S. Armed Forces. For more information, see IRS Publication 3, Armed Forces’ Tax Guide.

SPECIAL RULES AND OPTIONS. If you miss the 60-day rollover deadline Generally, the 60-day rollover deadline cannot be extended. However, the IRS has the limited authority to waive the deadline under certain extraordinary circumstances, such as when external events prevented you from completing the rollover by the 60-day rollover deadline. To apply for a waiver, you must file file a private letter ruling request with the IRS. Private letter ruling requests require the payment of a nonrefundable user fee. For more information, see IRS Publication 590, Individual Retirement Arrangements (IRAs). If you were born on or before January 1, 1936 If you were born on or before January 1, 1936 and receive a lump sum distribution that you do not roll over, special rules for calculating the amount of the tax on the payment might apply to you. For more information, see IRS Publication 575, Pension and Annuity Income. If you roll over your payment to a Xxxx XXX You can roll over a payment made before January 1, 2010 to a Xxxx XXX only if your modified adjusted gross income is not more than $100,000 for the year the payment is made to you and, if married, you file a joint return. These limitations do not apply to payments made to you after 2009. If you wish to roll over the payment to a Xxxx XXX, but you are not eligible to do a rollover to a Xxxx XXX until after 2009, you can do a rollover to a traditional XXX and then, after 2009, elect to convert the traditional XXX into a Xxxx XXX. If you roll over the payment to a Xxxx XXX, a special rule applies under which the amount of the payment rolled over (reduced by any after-tax amounts) will be taxed. However, the 10% additional income tax on early distributions will not apply (unless you take the amount rolled over out of the Xxxx XXX within 5 years, counting from January 1 of the year of the rollover). For payments during 2010 that are rolled over to a Xxxx XXX, the taxable amount can be spread over a 2-year period starting in 2011. If you roll over the payment to a Xxxx XXX, later payments from the Xxxx XXX that are qualified qualified distributions will not be taxed (including earnings after the rollover). A qualified qualified distribution from a Xxxx XXX is a payment made after you are age 59 1⁄2 59½ (or after your death or disability, or as a qualified firstqualified first-time homebuyer distribution of up to $10,000) and after you have had a Xxxx XXX for at least 5 years. In applying this 5-year rule, you count from January 1 of the year for which your first first contribution was made to a Xxxx XXX. Payments from the Xxxx XXX that are not qualified qualified distributions will be taxed to the extent of earnings after the rollover, including the 10% additional income tax on early distributions (unless an exception applies). You do not have to take required minimum distributions from a Xxxx XXX during your lifetime. For more information, see IRS Publication 590, Individual Retirement Arrangements (IRAs). You cannot roll over a payment from the Plan to a designated Xxxx account in an employer plan. If you are not a plan participant Payments after death of the participant. If you receive a distribution after the participant’s death that you do not roll over, the distribution will generally be taxed in the same manner described elsewhere in this notice. However, the 10% additional income tax on early distributions does not apply, and the special rule described under the section “If you were born on or before January 1, 1936” applies only if the participant was born on or before January 1, 1936. • If you are a surviving spouse. If you receive a payment from the Plan Settlement as the surviving spouse of a deceased participant, you have the same rollover options that the participant would have had, as described elsewhere in this notice. In addition, if you choose to do a rollover to an IRAXXX, you may treat the IRA XXX as your own or as an inherited IRAXXX. An IRA XXX you treat as your own is treated like any other IRA XXX of yours, so that payments made to you before you are age 591⁄2 59½ will be subject to the 10% additional income tax on early distributions (unless an exception applies) and required minimum distributions from your IRA XXX do not have to start until after you are age 701⁄2. 70½. If you treat the IRA XXX as an inherited IRAXXX, payments from the IRA XXX will not be subject to the 10% additional income tax on early distributions. However, if the participant had started taking required minimum distributions, you will have to receive required minimum distributions from the inherited IRAXXX. If the participant had not started taking required minimum distributions from the Plan, you will not have to start receiving required minimum distributions from the inherited IRA XXX until the year the participant would have been age 701⁄2. • 70½. If you are a surviving beneficiary other than a spouse. If you receive a payment from the Plan Settlement because of the participant’s death and you are a designated beneficiary beneficiary other than a surviving spouse, the only rollover option you have is to do a direct rollover to an inherited IRAXXX. Payments from the inherited IRA XXX will not be subject to the 10% additional income tax on early distributions. You will have to receive required minimum distributions from the inherited IRAXXX. Payments under a qualified domestic relations order. If you are the spouse or former spouse of the participant who receives a payment from the Settlement under a qualified domestic relations order (QDRO), you generally have the same options the participant would have (for example, you may rollover the payment to your own XXX or an eligible employer plan that will accept it). Payments under the QDRO will not be subject to the 10% additional income tax on early distributions. If you are a nonresident alien If you are a nonresident alien and you do not do a direct rollover to a U.S. XXX or U.S. employer plan, instead of withholding 20%, the Settlement is generally required to withhold 30% of the payment for federal income taxes. If the amount withheld exceeds the amount of tax you owe (as may happen if you do a 60-day rollover), you may request an income tax refund by filing Form 1040NR and attaching your Form 1042-S. See Form W-8BEN for claiming that you are entitled to a reduced rate of withholding under an income tax treaty. For more information, see also IRS Publication 519, U.S. Tax Guide for Aliens, and IRS Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Entities. If you are based outside of the United States If you are based outside of the United States, a Settlement payment may be subject to other taxes for which you are responsible. You should contact an independent adviser if you have any questions about such taxes. Other special rules If your payments for the year are less than $200 (not including payments from a designated Xxxx account in the Plan), the Settlement is not required to allow you to do a direct rollover and is not required to withhold for federal income taxes. However, you may do a 60-day rollover. You may have special rollover rights if you recently served in the U.S. Armed Forces. For more information, see IRS Publication 3, Armed Forces’ Tax Guide.

SPECIAL RULES AND OPTIONS. If you miss the 60-day rollover deadline Generally, the 60-day rollover deadline cannot be extended. However, the IRS has the limited authority to waive the deadline under certain extraordinary circumstances, such as when external events prevented you from completing the rollover by the 60-day rollover deadline. To apply for a waiver, you must file a private letter ruling request with the IRS. Private letter ruling requests require the payment of a nonrefundable user fee. For more information, see IRS Publication 590, Individual Retirement Arrangements (IRAs). If you were born on or before January 1, 1936 If you were born on or before January 1, 1936 and receive a lump sum distribution that you do not roll over, special rules for calculating the amount of the tax on the payment might apply to you. For more information, see IRS Publication 575, Pension and Annuity Income. If you roll over your payment to a Xxxx XXX You can roll over a payment made before January 1, 2010 to a Xxxx XXX only if your modified adjusted gross income is not more than $100,000 for the year the payment is made to you and, if married, you file a joint return. These limitations do not apply to payments made to you after 2009. If you wish to roll over the payment to a Xxxx XXX, but you are not eligible to do a rollover to a Xxxx XXX until after 2009, you can do a rollover to a traditional XXX and then, after 2009, elect to convert the traditional XXX into a Xxxx XXX. If you roll over the payment to a Xxxx XXX, a special rule applies under which the amount of the payment rolled over (reduced by any after-tax amounts) will be taxed. However, the 10% additional income tax on early distributions will not apply (unless you take the amount rolled over out of the Xxxx XXX within 5 years, counting from January 1 of the year of the rollover). For payments during 2010 that are rolled over to a Xxxx XXX, the taxable amount can be spread over a 2-year period starting in 2011. If you roll over the payment to a Xxxx XXX, later payments from the Xxxx XXX that are qualified distributions will not be taxed (including earnings after the rollover). A qualified distribution from a Xxxx XXX is a payment made after you are age 59 1⁄2 59½ (or after your death or disability, or as a qualified first-time homebuyer distribution of up to $10,000) and after you have had a Xxxx XXX for at least 5 years. In applying this 5-year rule, you count from January 1 of the year for which your first contribution was made to a Xxxx XXX. Payments from the Xxxx XXX that are not qualified distributions will be taxed to the extent of earnings after the rollover, including the 10% additional income tax on early distributions (unless an exception applies). You do not have to take required minimum distributions from a Xxxx XXX during your lifetime. For more information, see IRS Publication 590, Individual Retirement Arrangements (IRAs). You cannot roll over a payment from the Plan to a designated Xxxx account in an employer plan. If you are not a plan participant Payments after death of the participant. If you receive a distribution after the participant’s death that you do not roll over, the distribution will generally be taxed in the same manner described elsewhere in this notice. However, the 10% additional income tax on early distributions does not apply, and the special rule described under the section “If you were born on or before January 1, 1936” applies only if the participant was born on or before January 1, 1936. • If you are a surviving spouse. If you receive a payment from the Plan Settlement as the surviving spouse of a deceased participant, you have the same rollover options that the participant would have had, as described elsewhere in this notice. In addition, if you choose to do a rollover to an IRAXXX, you may treat the IRA XXX as your own or as an inherited IRAXXX. An IRA XXX you treat as your own is treated like any other IRA XXX of yours, so that payments made to you before you are age 591⁄2 59½ will be subject to the 10% additional income tax on early distributions (unless an exception applies) and required minimum distributions from your IRA XXX do not have to start until after you are age 701⁄2. 70½. If you treat the IRA XXX as an inherited IRAXXX, payments from the IRA XXX will not be subject to the 10% additional income tax on early distributions. However, if the participant had started taking required minimum distributions, you will have to receive required minimum distributions from the inherited IRAXXX. If the participant had not started taking required minimum distributions from the Plan, you will not have to start receiving required minimum distributions from the inherited IRA XXX until the year the participant would have been age 701⁄2. • 70½. If you are a surviving beneficiary other than a spouse. If you receive a payment from the Plan Settlement because of the participant’s death and you are a designated beneficiary other than a surviving spouse, the only rollover option you have is to do a direct rollover to an inherited IRAXXX. Payments from the inherited IRA XXX will not be subject to the 10% additional income tax on early distributions. You will have to receive required minimum distributions from the inherited IRAXXX. Payments under a qualified domestic relations order. If you are the spouse or former spouse of the participant who receives a payment from the Settlement under a qualified domestic relations order (QDRO), you generally have the same options the participant would have (for example, you may rollover the payment to your own XXX or an eligible employer plan that will accept it). Payments under the QDRO will not be subject to the 10% additional income tax on early distributions. If you are a nonresident alien If you are a nonresident alien and you do not do a direct rollover to a U.S. XXX or U.S. employer plan, instead of withholding 20%, the Settlement is generally required to withhold 30% of the payment for federal income taxes. If the amount withheld exceeds the amount of tax you owe (as may happen if you do a 60-day rollover), you may request an income tax refund by filing Form 1040NR and attaching your Form 1042-S. See Form W-8BEN for claiming that you are entitled to a reduced rate of withholding under an income tax treaty. For more information, see also IRS Publication 519, U.S. Tax Guide for Aliens, and IRS Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Entities. If you are based outside of the United States If you are based outside of the United States, a Settlement payment may be subject to other taxes for which you are responsible. You should contact an independent adviser if you have any questions about such taxes. Other special rules If your payments for the year are less than $200 (not including payments from a designated Xxxx account in the Plan), the Settlement is not required to allow you to do a direct rollover and is not required to withhold for federal income taxes. However, you may do a 60-day rollover. You may have special rollover rights if you recently served in the U.S. Armed Forces. For more information, see IRS Publication 3, Armed Forces’ Tax Guide.