Document:

EX-4.(A) AMENDED/RESTATED STOCK INCENTIVE PLAN

 

Exhibit 4(a)

CheckFree Corporation

Amended and Restated

2002 Stock Incentive Plan

     1. Purpose of the Plan. This plan (the “Plan”) is intended as an incentive
to further the growth and profitability of the Company and to encourage stock ownership on the part
of (a) associates of the Company and its Affiliates, (b) consultants and advisers who provide
significant services to the Company and its Affiliates, and (c) directors of the Company who are
not associates of the Company. By encouraging such stock ownership, the Company seeks to attract,
retain, and motivate Associates, Consultants, and Directors with training, experience, and ability.
All management and Associates, Consultants and Directors of the Company are eligible to receive
Awards under the Plan.

     2. Effective Date. The Plan shall become effective on November 6, 2002 (the
“Effective Date”), subject to ratification by an affirmative vote of the holders of a majority of
the Shares which are present, in person or by proxy, and entitled to vote at the 2002 Annual
Meeting of Stockholders.

     3. Administration.

          3.01 Administration of the Plan. The Plan shall be administered by a Committee of the
Board. If any class of equity securities of the Company is registered under section 12 of the
Exchange Act, all members of the Committee will be “non-employee directors” as defined in Rule
16b-3(b)(2)(i) promulgated under the Exchange Act (or any successor rule of like tenor and effect)
and “outside directors” as defined in section 162(m) of the Code and the regulations promulgated
thereunder.

          3.02 Authority of the Committee. It shall be the duty of the Committee to administer
the Plan in accordance with the Plan’s provisions. Subject to the provisions of the Plan, the
Committee is authorized to establish, amend and rescind such rules and regulations as it may deem
appropriate for its conduct and for the proper administration of the Plan, to make all
determinations under and interpretations of, and to take such actions in connection with, the Plan
or the Awards granted thereunder as it may deem necessary or advisable, including, but not limited
to, the power to (a) determine which Associates and Consultants shall be granted Awards, (b)
prescribe the terms and conditions of the Awards (other than the Options and Restricted Stock
granted to Non-Employee Directors pursuant to Section 9), (c) interpret the Plan and the Awards,
(d) adopt such procedures and subplans as are necessary or appropriate to permit participation in
the Plan by Associates, Consultants and Directors who are foreign nationals or employed outside of
the United States, (e) adopt rules for the administration, interpretation and application of the
Plan as are consistent therewith, and (f) interpret, amend or revoke any such rules. Subject to
the terms and provisions of the Plan, the Committee, in its sole discretion, may grant, at any time
and from time to time as determined by the Committee, Options, SARs, Restricted Stock, Performance
Units, Performance Shares, or a combination thereof.

          3.03 Non-Employee Directors. Notwithstanding any contrary provision of this Section
3, the Board shall administer Section 9 of the Plan, and the Committee shall exercise no discretion
with respect to Section 9. In the Board’s administration of Section 9 and the Options, Restricted
Stock and any Shares granted to Non-Employee Directors, the Board shall have all of the authority
and discretion otherwise granted to the Committee with respect to the administration of the Plan.

          3.04 Decisions Binding. All actions, determinations and decisions made by the
Committee pursuant to the provisions of the Plan shall be final, conclusive, and binding on all
persons, and shall be given the maximum deference permitted by law. No member of the Committee
shall be liable for any action taken or determination made relating to the Plan, except for gross
negligence or willful misconduct.

          3.05 Delegation by the Committee. The Committee, in its sole discretion and on such
terms and conditions as it may provide, may delegate all or any part of its authority and powers
under the Plan to one or more directors or officers of the Company; provided,
however, that the Committee may not delegate its authority

 

 

and powers (a) with respect to Section 16 Persons, or (b) in any way which would jeopardize the
Plan’s qualification under Section 162(m) of the Code or Rule 16b-3 of the Exchange Act.

          3.06 Indemnification. Each member of the Committee shall be indemnified by the
Company against costs, expenses and liabilities (other than amounts paid in settlements to which
the Company does not consent, which consent shall not be unreasonably withheld) reasonably incurred
by such member in connection with any action taken in relation to the Plan to which he or she may
be a party by reason of service as a member of the Committee, except in relation to matters as to
which he or she shall be adjudged in such action to be personally guilty of gross negligence or
willful misconduct in the performance of his or her duties. The foregoing right to indemnification
shall be in addition to such other rights as the Committee member may enjoy as a matter of law, by
reason of insurance coverage of any kind, or otherwise.

     4. Stock Subject to Plan.

          4.01 Number of Shares. The stock subject to Awards under the Plan shall be shares of
the common stock, $.01 par value, of CheckFree Corporation (the “Shares”). The Shares issued
pursuant to Awards granted under the Plan may be authorized and unissued Shares, Shares purchased
on the open market or in a private transaction, Shares held as treasury stock, or Shares which
remain available for future awards under the Company’s 1995 Stock Option Plan, as amended, as of
the Effective Date of this Plan (including Shares represented by awards under the Company’s 1995
Stock Option Plan which are forfeited, expire, cancelled without delivery of shares, or otherwise
result in return of Shares to the Company). The aggregate number of Shares for which Awards may be
granted under the Plan shall not exceed 6,000,000 Shares, subject to adjustment in accordance with
the terms of Section 4.04 hereof.

          4.02 Lapsed Awards. Any Shares subject to an Award which for any reason expires or is
terminated unexercised as to such Shares and any Shares reacquired by the Company pursuant to any
forfeiture hereunder may again be the subject of an Award under the Plan.

          4.03 Exercise; Proceeds. The Committee, in its sole discretion, may permit the
exercise or issuance of any Award as to full Shares or fractional Shares. Proceeds from the sale
of Shares under Awards shall constitute general funds of the Company.

          4.04 Stock Splits; Mergers; Reorganizations.

               (a) In the event of a stock split, stock dividend, combination or exchange of shares, exchange
for other securities, reclassification, reorganization, redesignation or other change in the
Company’s capitalization, the aggregate number of Shares for which Awards may be granted under this
Plan, the number of Shares subject to outstanding Awards and the Exercise Price of the Shares
subject to outstanding Options shall be proportionately adjusted or substituted to reflect the
same. The Committee shall make such other adjustments to the Awards, the provisions of the Plan
and the Awards Agreements, which adjustments may provide for the elimination of fractional Shares.

               (b) In the event of a change of the Company’s common stock resulting from a merger or similar
reorganization as to which the Company is the surviving corporation, the number and kind of Shares
which thereafter may be purchased pursuant to an Award under the Plan and the number and kind of
Shares then subject to Options granted hereunder and the price per Share thereof shall be
appropriately adjusted in such manner as the Committee may deem equitable to prevent dilution or
enlargement of the rights available or granted hereunder.

     5. Stock Options.

          5.01 Grant of Options. Subject to the terms and provisions of the Plan, Options may
be granted to Associates and Consultants at any time and from time to time as determined by the
Committee in its sole discretion. The Committee, in its sole discretion, shall determine the
number of Shares subject to each Option. The

 

 

Committee may grant Incentive Stock Options, Nonqualified Stock Options, or a combination thereof.
More than one Option may be granted to an individual under the Plan.

          5.02 Award Agreement.

               (a) Each Option shall be evidenced by an Award Agreement that shall specify the Exercise
Price, the expiration date of the Option, the number of Shares to which the Option pertains, any
conditions to exercise of the Option, and such other terms and conditions as the Committee, in its
discretion, shall determine. The Award Agreement shall specify whether the Option is intended to
be an Incentive Stock Option or a Nonqualified Stock Option.

               (b) The Committee may grant Options having terms and provisions which vary from those
specified in the Plan if such Options are granted in substitution for, or in connection with the
assumption of, existing options granted by another corporation and assumed or otherwise agreed to
be provided for by the Company pursuant to or by reason of a transaction involving a corporate
merger, consolidation, acquisition of property or stock, separation, reorganization or liquidation
to which the Company is a party.

          5.03 Exercise Price. Subject to the provisions of this Section 5.03, the Exercise
Price for each Option granted under the Plan shall be determined by the Committee in its sole
discretion.

               5.03.1 Fair Market Value. The Exercise Price of any Option granted under the Plan
shall be not less than the Fair Market Value of a Share on the Grant Date.

               5.03.2 Incentive Stock Options. In the case of an Incentive Stock Option, no
Incentive Stock Option may be granted to an Associate (together with persons whose stock ownership
is attributed to the Associate pursuant to section 424(d) of the Code) who, on the Grant Date, is
considered under Section 422(b)(6) of the Code to own stock possessing more than ten percent (10%)
of the total combined voting power of all classes of stock of the Company or of its Parent or any
Subsidiary corporation; provided, however, this restriction shall not apply if at
the time such Incentive Stock Option is granted the Exercise Price of such Incentive Stock Option
shall be at least 110% of the Fair Market Value of such Share.

               5.03.3 Substitute Options. Notwithstanding the provisions of Sections 5.03.1 and
5.03.2, in the event that the Company or an Affiliate consummates a transaction described in
section 424(a) of the Code (e.g., the acquisition of property or stock from an unrelated
corporation), persons who become Associates or Consultants on account of such transaction may be
granted Options in substitution for options granted by their former employer. If such substitute
Options are granted, the Committee, in its sole discretion and consistent with section 424(a) of
the Code, shall determine the exercise price of such substitute Options.

          5.04 Expiration of Options.

               5.04.1 Expiration Dates. Each Option shall terminate no later than the first to occur
of the following events:

     (a) The date for termination of the Option set forth in the written
Award Agreement;

       (b) The expiration of ten (10) years from the Grant Date (except as
provided in Section 5.08.4 regarding Incentive Stock Options);

     (c) Upon Termination of Service For Cause;

       (d) The expiration of thirty (30) days from the date and time of the
Participant’s Termination of Service for a reason other than the
Participant’s death, Disability, or Retirement, or Termination of Service
For Cause, unless the Committee in

 

 

its sole discretion elects to extend the exercisability of an Option to
not more than three (3) months from Termination of Service;

       (e) The expiration of one (1) year from the date of the Participant’s
death or the Participant’s Termination of Service by reason of death or
Disability (except as provided in Section 5.08.2 regarding Incentive Stock
Options);

       (f) The expiration of three (3) years from the date of the
Participant’s Termination of Service by reason of Retirement (except as
provided in Section 5.08.2 regarding Incentive Stock Options); or

       (g) Upon the Committee’s determination that, after a Participant’s
Termination of Service, the Participant engages or engaged in employment or
activities contrary, in the sole opinion of the Committee, to the best
interests of the Company.

               5.04.2 Committee Discretion. Subject to the limits of Sections 5.04.1, the Committee,
in its sole discretion, (a) shall provide in each Award Agreement when each Option expires and
becomes unexercisable, and (b) may, after an Option is granted, extend the maximum term of the
Option (subject to Section 5.08.4 regarding Incentive Stock Options).

          5.05 Exercisability of Options. Options granted under the Plan will be exercisable at
such times and be subject to such terms and conditions as the Committee shall determine in its sole
discretion. After an Option is granted, the Committee, in its sole discretion, may accelerate the
exercisability of the Option. In no event, however, may any Option granted to a Section 16 Person
be exercisable until at least six (6) months following the Grant Date.

          5.06 Payment. Options shall be exercised by the Participant’s delivery of a written
notice of exercise to the Company’s Chief Financial Officer or any other officer of the Company
designated by the Committee to accept such notices on its behalf, specifying the number of Shares
for which it is exercised.

          On the date of exercise of an Option, the Participant or other person exercising the Option
shall make full payment of the Exercise Price (a) in cash; (b) with the consent of the Committee,
by tendering previously acquired Shares which have been held by the Participant for at least six
months (valued at their Fair Market Value as of the date of tender); (c) with the consent of the
Committee, and to the extent permitted by applicable law, with a full recourse promissory note of
the Participant for the portion of the Exercise Price in excess of the par value of Shares subject
to the Option, under terms and conditions determined by the Committee and in cash for the par value
of the Shares; (d) by any other means which the Committee, in its sole discretion, determines to
both provide legal consideration for the Shares, and to be consistent with the purposes of the Plan
(e) with the consent of the Committee, any combination of (a), (b), (c), or (d); or (f) with the
consent of the Committee, if the Shares subject to the Option have been registered under the
Securities Act, and there is a regular public market for the Shares, by delivering to the Company
on the date of exercise of the Option written notice of exercise together with:

               (i) written instructions to forward a copy of such notice of exercise to a broker or dealer as
defined in Section 3(a)(4) and 3(a)(5) of the Exchange Act, and designated in such notice
(“Broker”), and to deliver to the specified account maintained with the Broker by the person
exercising the Option a certificate for the Shares purchased upon the exercise of the Option, and

               (ii) a copy of irrevocable instructions to the Broker to deliver promptly to the Company a sum
equal to the purchase price of the Shares purchased upon exercise of the Option.

          If previously acquired Shares are to be used to pay the Exercise Price of an Incentive Stock
Option, the Company prior to such payment must be furnished with evidence satisfactory to it that
the acquisition of such Shares and their transfer in payment of the exercise price satisfy the
requirements of Section 422 of the Code and other applicable laws.

 

 

          As soon as practicable after receipt of a written notification of exercise and full payment
for the Shares purchased, the Company shall deliver to the Participant (or the Participant’s
designated broker), Share certificates (which may be in book entry form) representing such Shares.

          5.07 Restrictions on Share Transferability. The Committee may impose such
restrictions on any Shares acquired pursuant to the exercise of an Option as it may deem advisable,
including, but not limited to, restrictions related to applicable federal securities laws, the
requirements of the Nasdaq Stock Market or any national securities exchange or system upon which
Shares are then listed or traded, or any blue sky or state securities laws.

          5.08 Certain Additional Provisions for Incentive Stock Options. Notwithstanding
anything to the contrary contained in this Section 5, the following provisions shall apply to any
Incentive Stock Option granted pursuant to the Plan.

               5.08.1 Exercisability. The aggregate Fair Market Value (determined on the Grant
Date(s)) of the Shares with respect to which Incentive Stock Options are exercisable for the first
time by any Associate during any calendar year (under all plans of the Company and its
Subsidiaries) shall not exceed $100,000. If an Incentive Stock Option which exceeds the $100,000
limitation of this Section 5.08.1 is granted, the portion of such Option which is exercisable for
Shares in excess of the $100,000 limitation shall be treated as a Nonqualified Stock Option
pursuant to Section 422(d) of the Code. Except as otherwise expressly provided in the immediately
preceding sentence, this Section 5.08.1 has no application to Options granted under the Plan as
Nonqualified Stock Options.

               5.08.2 Termination of Service. No Incentive Stock Option may be exercised more than
three (3) months after the Participant’s Termination of Service for any reason other than
Disability or death, unless (a) the Participant dies during such three-month period, or (b) the
Award Agreement or the Committee permits later exercise, in which case the Incentive Stock Option
shall be deemed a Nonqualified Stock Option.

               5.08.3 Company and Subsidiaries Only. Incentive Stock Options may be granted only to
persons who are Associates of the Company or a Subsidiary on the Grant Date.

               5.08.4 Expiration. No Incentive Stock Option may be exercised after the expiration of
ten (10) years from the Grant Date; provided, however, that if the Option is
granted to an Associate who, together with persons whose stock ownership is attributed to the
Associate pursuant to section 424(d) of the Code, owns stock possessing more than 10% of the total
combined voting power of all classes of the stock of the Company or any of its Subsidiaries, the
Option may not be exercised after the expiration of five (5) years from the Grant Date.

          5.09 Special Vesting Rule for Death and Disability. Unless and until an Option is
earlier terminated pursuant to Section 5.04, the time elapsed from the date of death or the date of
a Participant’s Termination of Service by reason of a Participant’s Disability to the date of an
exercise of an Option shall accrue toward any vesting requirements in the Award Agreement
evidencing such Option as if the Participant had remained employed by the Company.

          5.10 Special Rule for Retirement. Unless and until an Option is earlier terminated
pursuant to Section 5.04, the time elapsed from the date of a Participant’s Termination of Service
by reason of a Participant’s Retirement to the date of an exercise of an Option shall accrue toward
any vesting requirements in the Award Agreement evidencing such Option as if the Participant had
remained employed by the Company; provided, however, notwithstanding the foregoing,
at the time of the exercise of an Option by a Participant following Termination of Service by
reason of Retirement, the Participant must represent and warrant to the Company that he or she has
been in material compliance with the terms and conditions of the Retirement Agreement with the
Company; and provided, further, that in the event the Participant violates the
Retirement Agreement, all of the Participant’s unexercised Options shall immediately terminate and
the Participant shall return to the Company the economic value of any Option which was realized or
obtained (measured at the date of exercise) by the Participant after the violation of the
Retirement Agreement.

 

 

     6. Stock Appreciation Rights.

          6.01 Grant of SARs; Exercise Price and Other Terms.

               (a) Subject to the terms and conditions of the Plan, an SAR may be granted to Associates and
Consultants at any time and from time to time as shall be determined by the Committee, in its sole
discretion. The Committee may grant Affiliated SARs, Freestanding SARs, Tandem SARs, or any
combination thereof. The Committee shall have complete discretion to determine the number of SARs
granted to any Participant.

               (b) The Committee, subject to the provisions of the Plan, shall have complete discretion to
determine the terms and conditions of SARs granted under the Plan. However, the exercise price of
a Freestanding SAR shall be not less than the Fair Market Value of a Share on the Grant Date. The
exercise price of Tandem or Affiliated SARs shall equal the Exercise Price of the related Option.
In no event shall an SAR granted to a Section 16 Person become exercisable until at least six (6)
months after the Grant Date (or such shorter period as may be permissible while maintaining
compliance with Rule 16b-3).

          6.02 Exercise of Tandem SARs. Tandem SARs may be exercised for all or part of the
Shares subject to the related Option upon the surrender of the right to exercise the equivalent
portion of the related Option. A Tandem SAR may be exercised only with respect to the Shares for
which its related Option is then exercisable. With respect to a Tandem SAR granted in connection
with an Incentive Stock Option: (a) the Tandem SAR shall expire no later than the expiration of
the underlying Incentive Stock Option; (b) the value of the payout with respect to the Tandem SAR
shall be for no more than one hundred percent (100%) of the difference between the Exercise Price
of the underlying Incentive Stock Option and the Fair Market Value of the Shares subject to the
underlying Incentive Stock Option at the time the Tandem SAR is exercised; and (c) the Tandem SAR
shall be exercisable only when the Fair Market Value of the Shares subject to the Incentive Stock
Option exceeds the Exercise Price of the Incentive Stock Option.

          6.03 Exercise of Freestanding SARs. Freestanding SARs shall be exercisable on such
terms and conditions as the Committee, in its sole discretion, shall determine. However, no SAR
granted to a Section 16 Person shall be exercisable until at least six (6) months after the Grant
Date (or such shorter period as may be permissible while maintaining compliance with Rule 16b-3).

          6.04 SAR Agreement. Each SAR grant shall be evidenced by an Award Agreement that
shall specify the exercise price, the term of the SAR, the conditions of exercise, and such other
terms and conditions as the Committee, in its sole discretion, shall determine.

          6.05 Expiration of SARs. An SAR granted under the Plan shall expire upon the date
determined by the Committee, in its sole discretion, and set forth in the Award Agreement.
Notwithstanding the foregoing, the rules of Section 5.04 also shall apply to SARs.

          6.06 Payment of SAR Amount. Upon exercise of an SAR, a Participant shall be entitled
to receive payment from the Company in an amount determined by multiplying:

               (a) The difference between the Fair Market Value of a Share on the date of exercise over the
exercise price; times

               (b) The number of Shares with respect to which the SAR is exercised.

At the discretion of the Committee, payment for an SAR may be in cash, Shares or a combination
thereof.

     7. Restricted Stock.

          7.01 Grant of Restricted Stock. Subject to the terms and provisions of the Plan, the
Committee, at any time and from time to time, may grant Shares of Restricted Stock to Associates
and Consultants

 

 

in such amounts as the Committee, in its sole discretion, shall determine. The Committee, in its
sole discretion, shall determine the number of Shares to be granted to each Participant.

          7.02 Restricted Stock Agreement. Each Award of Restricted Stock shall be evidenced by
an Award Agreement that shall specify the Period of Restriction, the number of Shares granted, any
price to be paid for the Shares, and such other terms and conditions as the Committee, in its sole
discretion, shall determine. Unless the Committee determines otherwise, Shares of Restricted Stock
shall be held by the Company as escrow agent until the restrictions on such Shares have lapsed.

          7.03 Transferability. Shares of Restricted Stock may not be sold, transferred,
pledged, assigned, or otherwise alienated or hypothecated until the end of the applicable Period of
Restriction. In no event may the restrictions on Restricted Stock granted to a Section 16 Person
lapse prior to six (6) months following the Grant Date.

          7.04 Other Restrictions. The Committee, in its sole discretion, may impose such other
restrictions on Shares of Restricted Stock as it may deem advisable or appropriate, in accordance
with this Section 7.04. For example, the Committee may set restrictions based upon the achievement
of specific performance objectives (Company-wide, divisional, or individual), applicable Federal or
state securities laws, or any other basis determined by the Committee in its discretion. The
Committee, in its discretion, may legend the certificates representing Restricted Stock to give
appropriate notice of the restrictions applicable to such Shares.

          7.05 Removal of Restrictions. Shares of Restricted Stock covered by each Restricted
Stock grant made under the Plan shall be released from escrow as soon as practicable after the last
day of the Period of Restriction. The Committee, in its discretion, may accelerate the time at
which any restrictions shall lapse, and remove any restrictions; provided, however,
that the Period of Restriction on Shares granted to a Section 16 Person may not lapse until at
least six (6) months after the Grant Date. After the restrictions have lapsed, the Participant
shall be entitled to have any legend or legends under Section 7.04 removed from his or her Share
certificate, and the Shares shall be freely transferable by the Participant.

          7.06 Voting Rights. During the Period of Restriction, Participants holding Shares of
Restricted Stock granted hereunder may exercise full voting rights with respect to those Shares,
unless otherwise provided in the Award Agreement.

          7.07 Dividends and Other Distributions. During the Period of Restriction,
Participants holding Shares of Restricted Stock shall be entitled to receive all dividends and
other distributions paid with respect to such Shares unless otherwise provided in the Award
Agreement. If any such dividends or distributions are paid in Shares, the Shares shall be subject
to the same restrictions on transferability and forfeitability as the Shares of Restricted Stock
with respect to which they were paid. With respect to Restricted Stock granted to a Section 16
Person, any dividend or distribution that constitutes a “derivative security” or an “equity
security” under Section 16 of the Exchange Act shall be subject to a Period of Restriction equal to
the longer of: (a) the remaining Period of Restriction on the Shares of Restricted Stock with
respect to which the dividend or distribution is paid; or (b) six (6) months.

          7.08 Return of Restricted Stock to Company. On the date set forth in the Award
Agreement, the Restricted Stock for which restrictions have not lapsed shall revert to the Company
and again shall become available for grant under the Plan.

     8. Performance Units and Performance Shares.

          8.01 Grant of Performance Units/Shares. Performance Units and Performance Shares may
be granted to Associates and Consultants at any time and from time to time, as shall be determined
by the Committee, in its sole discretion. The Committee shall have complete discretion in
determining the number of Performance Units and Performance Shares granted to any Participant.

 

 

          8.02 Initial Value. Each Performance Unit shall have an initial value that is
established by the Committee on or before the Grant Date. Each Performance Share shall have an
initial value equal to the Fair Market Value of a Share on the Grant Date.

          8.03 Performance Objectives and Other Terms. The Committee shall set performance
objectives in its discretion which, depending on the extent to which they are met, will determine
the number or value of Performance Units or Shares that will be paid out to the Participants. The
Committee may set performance objectives based upon the achievement of Company-wide, divisional, or
individual goals, or any other basis determined by the Committee in its discretion. The time
period during which the performance objectives must be met shall be called the “Performance
Period”. Performance Periods of Awards granted to Section 16 Persons shall exceed six (6) months
in length (or such shorter period as may be permissible while maintaining compliance with Rule
16b-3). Each Award of Performance Units/Shares shall be evidenced by an Award Agreement that shall
specify the Performance Period, and such other terms and conditions as the Committee, in its sole
discretion, shall determine. The determination of whether performance objectives have been
achieved shall be in the sole discretion of the Committee.

          8.04 Earning of Performance Units and Performance Shares. After the applicable
Performance Period has ended, the Participant shall be entitled to receive a payout of the number
of Performance Units or Shares earned during the Performance Period, depending upon the extent to
which the applicable performance objectives have been achieved. After the grant of a Performance
Unit or Share, the Committee, in its sole discretion, may reduce or waive any performance
objectives for Award; provided that Performance Periods of Awards granted to Section 16 Persons
shall not be less than six (6) months (or such shorter period as may be permissible while
maintaining compliance with Rule 16b-3).

          8.05 Form and Timing of Payment. Payment of earned Performance Units or Performance
Shares shall be made as soon as practicable after the expiration of the applicable Performance
Period, but in no event later than the 15th day of the third month after the end of the later of
the Company’s or the Participant’s taxable year in which the Performance Shares or Performance
Units vest. The Committee, in its sole discretion, may pay earned Performance Units or Performance
Shares in cash, Shares or a combination thereof.

          8.06 Cancellation. On the date set forth in the Award Agreement, all unearned or
unvested Performance Units or Performance Shares shall be forfeited to the Company, and again shall
be available for grant under the Plan.

     9. Non-Employee Directors.

          9.01 Granting of Options. If any class of equity securities of the Company is
registered under Section 12 of the Exchange Act, the Board, in its sole discretion, will determine
from time to time the number of Nonqualified Stock Options each Non-Employee Director will receive
under the Plan. Future grants will cease and be suspended at any time that there are not
sufficient Shares available under the Plan.

          9.02 Terms of Options.

               9.02.1 Option Agreement. Each Option granted pursuant to this Section 9 shall be
evidenced by a written stock option agreement which shall be executed by the Participant and the
Company.

               9.02.2 Exercise Price. The Exercise Price for the Shares subject to each Option
granted pursuant to this Section 9 shall be 100% of the Fair Market Value of such Shares on the
Grant Date.

               9.02.3 Exercisability. Each Option granted pursuant to this Section 9 shall become
exercisable in full one year after the date the Option is granted. If a Non-Employee Director
incurs a Termination of Service for a reason other than Retirement, death or Disability, his or her
Options which are not exercisable on the date of such Termination shall never become exercisable.
If the Termination of Service is on account of Retirement, death or Disability, the Option shall
become exercisable in full on the date of the Termination of Service.

 

 

               9.02.4 Expiration of Options. Each Option shall terminate upon the first to occur of
the following events:

     (a) The expiration of ten (10) years from the Grant Date;

     (b) The expiration of thirty (30) days from the date and time of the
Participant’s Termination of Service for a reason other than death,
Disability or Retirement, unless the Committee in its sole discretion elects
to extend the exercisability of an Option to not more than three (3) months
from Termination of Service;

     (c) The expiration of one (1) year from the date of the Participant’s
death or Termination of Service by reason of death or Disability; or

     (d) The expiration of three (3) years from the date of the
Participant’s Termination of Service by reason of Retirement.

               9.02.5 Death of Director. Notwithstanding Section 9.02.4, if a Director dies prior to
the expiration of his or her options in accordance with Section 9.02.4, his or her options shall
terminate one (1) year after the date of his or her death.

               9.02.6 Special Rule for Retirement. Notwithstanding the provisions of Section 9.02.4,
if the exercisability of an Option is accelerated under Section 9.02.3 on account of the
Participant’s Retirement, such Option shall terminate upon the first to occur of: (a) the
expiration of three (3) years from the date the Option was granted; or (b) the expiration of one
year from the date of the Participant’s death.

               9.02.7 Not Incentive Stock Options. Options granted pursuant to this Section 9 shall
not be designated as Incentive Stock Options.

               9.02.8 Other Terms. All provisions of the Plan not inconsistent with this Section 9
shall apply to Options granted to Non-Employee Directors; provided, however, that
Section 5.02 (relating to the Committee’s discretion to set the terms and conditions of Options)
shall be inapplicable with respect to Non-Employee Directors.

          9.03 Elections by Non-Employee Directors.

               9.03.1 Election to Receive Cash or Shares. Pursuant to such procedures as the Board
(in its discretion) may adopt from time to time, each Non-Employee Director may elect to forego
receipt of all or a portion of committee fees and meeting fees otherwise due to the Non-Employee
Director in exchange for Shares. The number of Shares received by any Non-Employee Director shall
equal the amount of foregone compensation divided by the Fair Market Value of a Share on the date
that the compensation otherwise would have been paid to the Non-Employee Director, rounded up to
the nearest whole number of Shares. The procedures adopted by the Board for elections under this
Section 9.03 shall be designed to ensure that any such election by a Non-Employee Director will not
disqualify him or her as a “non-employee director” under Rule 16b-3.

               9.03.2 Election to Defer Receipt of Shares. Each Non-Employee Director who
elected, in accordance with Section 9.03.1 of this Plan, to receive committee fees and meeting fees
in the form of shares may also elect to receive such shares as soon as practicable after the date
such fees are otherwise payable or defer receipt of the shares until the date the Non-Employee
Director’s service on the Board terminates for any reason. If the Non-Employee Director makes such
a deferral election, the shares shall be paid no later than the 15th day of the third month after
the end of the later of the Company’s or the Non-Employee Director’s taxable year in which the
termination of Board service occurs. Such a deferral election also shall be made pursuant to the
procedures the Board (in it is discretion) may adopt from time to time and by completing and
delivering an election form (the “Election Form”) to the Company. An Election Form effective for a
calendar year shall be delivered to the Company prior to the first day of such calendar year unless
otherwise provided by Section 409A of the Code, and shall be irrevocable for that calendar year.
An Election Form shall remain in effect for subsequent calendar

 

 

years until a written notice to revise the Election Form is delivered to the Company on or before
the first day of the calendar year in which the revision is to become effective. Except as
provided below, an initial Election Form or a revised Election Form shall apply only to fees
otherwise payable to the Non-Employee Director after the end of the calendar year in which such
initial or revised Election Form is delivered to the Company. Notwithstanding the foregoing, an
election made by a Non-Employee Director in the calendar year in which such Non-Employee Director
first becomes eligible to defer his or her fees and otherwise participate in this Plan, may be made
pursuant to an Election Form delivered to the Company within 30 days after the date on which the
Non-Employee Director initially becomes eligible to defer such Director Fees and otherwise
participate in the Plan. Such Election Form shall be effective with respect to fees earned after
the date such Election Form is delivered to the Company.

          9.04 Restricted Stock. Subject to the terms and conditions of the Plan, the Board,
at any time and from time to time, may grant Shares of Restricted Stock to Non-Employee Directors
in such amounts as the Board, in its sole discretion, shall determine. The Board, in its sole
discretion, shall determine the number of Shares to be granted to each Non-Employee Director.
Awards of Restricted Stock to Non-Employee Directors shall be subject to the provisions of Section
7 of this Plan; provided, however, that the Board shall have all of the authority
and discretion otherwise granted to the Committee with respect to the administration of Section 7
regarding Non-Employee Directors only.

     10. Section 162(m) Deduction Qualification. Except as otherwise
provided in Section 10.05, the provisions of this Section 10 shall apply only to Awards of Covered
Officers.

          10.01 Awards for Covered Officers. Any other provision of the Plan notwithstanding,
all Awards to Covered Officers shall be made in a manner that allows for the full deductibility of
the Award by the Company or its Subsidiaries under Section 162(m) of the Code; unless the Committee
determines that compliance with Section 162(m) of the Code is not desired with respect to any
specified Award or Awards. In addition, if changes are made to Code Section 162(m) to permit
greater flexibility with respect to any Award or Awards available under the Plan, the Committee may
make adjustments as it deems appropriate. All Awards for Covered Officers shall comply with the
provisions of this Section 10.

          10.02 Designation of Covered Officers. For each Performance Period, the Committee
will designate which Participants are Covered Officers within 90 days of the beginning of the
Performance Period (or such earlier or later date as is permitted or required by Section 162(m) of
the Code).

          10.03 Establishment of Performance Goals and Awards for Covered Officers. Within 90
days of the beginning of a Performance Period (or such earlier or later date as is permitted or
required by Section 162(m) of the Code), the Committee shall in its sole discretion, for each such
Performance Period: (a) determine and establish in writing one or more Performance Goals
applicable to the Performance Period for each Covered Officer; and (b) either (i) assign each
Covered Officer a target Award expressed as a fixed number of Shares or a whole dollar amount or
(ii) establish a payout table or formula for purposes of determining the Award payable to each
Covered Officer. Each payout table or formula: (a) shall be in writing; (b) shall be based on a
comparison of actual performance to the Performance Goals; (c) may include a “floor” which is the
level of achievement of the Performance Goal in which payout begins; and (d) shall provide for an
actual Award equal to, less than or greater than the Covered Officer’s target Award, depending on
the extent to which actual performance approached, reached, or exceeded the Performance Goal. Such
pre-established Performance Goals and Awards must state, in terms of an objective formula or
standard, the method for computing the amount of the Award payable to each Covered Officer if the
Performance Goal is met. A formula or standard is objective if a third party having knowledge of
the relevant performance results could calculate the amount to be paid to the Covered Officer. The
Committee may from time to time establish any number of Performance Periods, Performance Goals and
Awards for any Covered Officer running concurrently, in whole or in part, provided, that in so
doing the Committee does not jeopardize the Company’s deduction for such Awards under Section
162(m) of the Code. The Committee may select different Performance Goals and Awards for different
Covered Officers.

          10.04 Certification of Achievement of Performance Goals and Amount of Awards. After
the end of each Performance Period, or such earlier date if the Performance Goals are achieved (and
such date otherwise complies with Section 162(m) of the Code), the Committee shall certify in
writing, prior to the

 

 

unconditional payment of any Award, that the Performance Goals for the Performance Period and all
other material terms of the Plan were satisfied and to what extent they were satisfied. The
Committee shall determine the actual Award for each Covered Officer based on the payout
table/formula established in Section 10.03, as the case may be. Extraordinary Events shall either
be excluded or included in determining the extent to which the corresponding Performance Goal has
been achieved, whichever will produce the higher Award; provided, however,
notwithstanding the attainment of specified Performance Goals, the Committee has the discretion to
reduce or eliminate an Award that would otherwise be paid to any Participant, including any Covered
Officer, based on the Committee’s evaluation of Extraordinary Events or other factors. Without
limiting the manner of computing Awards set forth in the preceding sentence, with respect to
Covered Officers, the Committee may not under any circumstances increase the amount of an Award.

          10.05 Maximum Award. Any other provision of the Plan notwithstanding, the maximum
aggregate Awards payable to any Participant under the Plan during any one or more Performance
Periods during a Fiscal Year shall not exceed 500,000 Shares, which maximum number of Shares shall
be adjusted pursuant to Section 4.04.

     11. Miscellaneous.

          11.01 Forfeiture. Notwithstanding anything in the Plan or in any Award Agreement to
the contrary, in the event of a breach of conduct by a Participant or former Participant
(including, without limitation, any conduct prejudicial to or in conflict with the Company or an
Affiliate), or any activity of a Participant or former Participant in competition with any of the
businesses of the Company or an Affiliate, the Committee may (a) cancel any outstanding Award
granted to the Participant, in whole or in part, whether or not vested, and/or (b) if such conduct
or activity occurs within one year following the exercise or payment of an Award, require the
former Participant to repay to the Company any gain realized or payment received upon the exercise
or payment of such Award (with such gain or repayment valued as of the date of exercise or
payment). Such cancellation or repayment obligation shall be effective as of the date specified by
the Committee. Any repayment obligation may be satisfied in Shares or cash or a combination
thereof (based upon the Fair Market Value of the Shares on the day prior to the date of payment),
and the Committee may provide for an offset to any future payments owed by the Company or Affiliate
to such individual if necessary to satisfy the repayment obligation. The determination of whether
any Participant or former Participant has engaged in a breach of conduct or any activity in
competition with any of the businesses of the Company or an Affiliate shall be determined by the
Committee in good faith and in its sole discretion.

          11.02 No Contract of Employment. Nothing in the Plan or in any Award or Award
Agreement shall confer on any Participant any right to continue in the employ or service of the
Company or any Parent or Subsidiary of the Company or interfere with the right of the Company to
terminate such Participant’s employment or other services at any time. The establishment of the
Plan shall in no way, now or hereafter, reduce, enlarge or modify the employment relationship
between the Company or any Parent or Subsidiary of the Company and the Participant. Awards granted
under the Plan shall not be affected by any change of duties or position of the Participant with
the Company.

          11.03 Participation. No Associate or Consultant shall have the right to be selected
to receive an Award under this Plan, or, having been so selected, to be selected to receive a
future Award.

          11.04 Change in Control. In the event of a Change in Control, all outstanding Awards
granted under this Plan shall then be immediately exercisable to the extent of 100% of the Shares
subject thereto notwithstanding any contrary waiting or vesting periods specified in this Plan or
in any applicable Award Agreement. In addition to the foregoing, the Board of Directors may, in
its discretion, accelerate the vesting of Awards granted under the Plan in circumstances that do
not constitute a change in control as defined herein.

          11.05 Successors. All obligations of the Company under the Plan, with respect to
Awards granted hereunder, shall be binding on any successor to the Company, whether the existence
of such successor is the result of a direct or indirect purchase, merger, consolidation, or
otherwise, of all or substantially all of the business or assets of the Company.

 

 

          11.06 Beneficiary Designations. If permitted by the Committee, a Participant under
the Plan may name a beneficiary or beneficiaries to whom any vested but unpaid Award shall be paid
in the event of the Participant’s death. Each such designation shall revoke all prior designations
by the Participant and shall be effective only if given in a form and manner acceptable to the
Committee. In the absence of any such designation, any vested benefits remaining unpaid at the
Participant’s death shall be paid to the Participant’s estate and, subject to the terms of the Plan
and of the applicable Award Agreement, any unexercised vested Award may be exercised by the
administrator or executor of the Participant’s estate.

          11.07 Nontransferability of Awards; Unfunded Plan. No Award granted under the Plan
may be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated, other than (a)
by will or the laws of descent and distribution, (b) pursuant to a qualified domestic relations
order (as defined in Section 401(a)(13) of the Code or Section 206(d)(3) of the Employee Retirement
Income Security Act of 1974, as amended, or (c) to the limited extent provided in Section 11.05;
provided that in the case of an Incentive Stock Option, such transfer or assignment may occur only
to the extent it will not result in disqualifying such option as an incentive stock option under
Section 422 of the Code, or any successor provision. All rights with respect to an Award granted to
a Participant shall be available during his or her lifetime only to the Participant or his or her
guardian or legal representative. Notwithstanding the foregoing, to the extent provided in the
applicable Award Agreement, a Participant may transfer a Nonqualified Stock Option either (i) to
members of his or her immediate family (as defined in Rule 16a-1 promulgated under the Exchange
Act), to one or more trusts for the benefit of such family members, or to partnerships or other
entities in which such family members are the only partners or owners, provided that the
Participant does not receive any consideration for the transfer, or (ii) if such transfer is
approved by the Committee. If such transfer is permitted under the Award Agreement, any
Nonqualified Stock Option held by such transferees are subject to the same terms and conditions
that applied to such Nonqualified Stock Options immediately prior to transfer based on the
transferor Participant’s continuing relationship with the Company. It is intended that the Plan be
an “unfunded” plan for incentive compensation. The Plan does not give a Participant any interest,
lien or claim against any specific asset of the Company. No Participant or beneficiary shall have
any rights under this Plan other than as a general unsecured creditor of the Company.

          11.08 No Rights as Stockholder. Except to the limited extent provided in Sections
7.06 and 7.07, no Participant (nor any beneficiary) shall have any of the rights or privileges of a
stockholder of the Company with respect to any Shares issuable pursuant to an Award (or exercise
thereof), unless and until certificates representing such Shares shall have been issued, recorded
on the records of the Company or its transfer agents or registrars, and delivered to the
Participant (or beneficiary).

          11.09 Agreements and Representations of Optionees. As a condition to the exercise of
an Award, the Committee may, in its sole determination, require the Participant to represent in
writing that the Shares being purchased are being purchased only for investment and without any
present intent at the time of the acquisition of such Shares to sell or otherwise dispose of the
same.

          11.10 Tax Withholding Requirements.

               (a) The Company’s obligation to deliver Shares upon issuance or exercise of an Award shall be
subject to the Participant’s satisfaction of all applicable federal, state or local tax withholding
obligations. Prior to the delivery of any Shares or cash pursuant to an Award (or exercise
thereof), the Company shall have the power and the right to deduct or withhold from any salary,
wages, or other compensation for services payable by the Company to or with respect to a
Participant, or require a Participant to remit to the Company, an amount sufficient to satisfy any
federal, state, and local withholding tax liability (including the Participant’s FICA obligation)
attributable to such Participant’s (or any beneficiary’s or personal representative’s) receipt or
disposition of Shares purchased or acquired under any Award or to take any such other action as it
deems necessary to enable it to satisfy any such tax withholding obligations.

               (b) The Committee, in its sole discretion and pursuant to such procedures as it may specify
from time to time, may permit or require a Participant to satisfy all or part of the Participant’s
tax withholding liabilities in connection with an Award by (i) having the Company withhold
otherwise deliverable

 

 

Shares, or (ii) delivering to the Company already-owned Shares having a Fair Market Value equal to
the amount required to be withheld. The amount of the withholding requirement shall be deemed to
include any amount which the Committee determines, not to exceed the amount determined by using the
minimum federal, state or local marginal income tax rates applicable to the Participant with
respect to the Award on the date that the amount of tax to be withheld is to be determined. The
Fair Market Value of the Shares to be withheld or delivered shall be determined as of the date that
the taxes are required to be withheld.

          11.11 Reserved.

          11.12 Exchanges. The Committee may permit the voluntary surrender of all or
a portion of any Award granted under the Plan to be conditioned upon the granting to the
Participant of a new Award for the same or a different type and number of Shares as the Award
surrendered, or may require such voluntary surrender as a condition precedent to a grant of a new
Award to such Participant. Subject to the provisions of the Plan, such new Award shall be on such
other terms and conditions as are specified by the Committee at the time the new Award is granted.
Upon surrender, the Awards surrendered shall be cancelled and the Shares previously subject to them
shall be available for the grant of other Awards.

          11.13 Repurchase of Shares by the Company. Any Shares purchased or acquired upon
issuance or exercise of an Award may, in the sole discretion of the Committee, be subject to
repurchase by or forfeiture to the Company if and to the extent and at the repurchase price, if
any, specifically set forth in the Award Agreement pursuant to which the Shares were purchased or
acquired. Certificates representing Shares subject to such repurchase or forfeiture may be subject
to such escrow and stock legend provisions as may be set forth in the Award Agreement pursuant to
which the Shares were purchased or acquired.

          11.14 Sale of Option Shares. If any class of equity securities of the Company is
registered pursuant to Section 12 of the Exchange Act, any Participant or other person exercising
or acquiring the Award who is a Section 16 Person shall not sell or otherwise dispose of the Shares
subject to the Award unless at least six months have elapsed from the date of grant of the Award.

          11.15 Confidentiality Agreements. Upon the Company’s request, each Participant shall
execute, prior to or contemporaneously with the grant of any Award hereunder, the Company’s then
current standard form of agreement relating to nondisclosure of confidential information,
noncompetition and/or assignment of inventions and related matters.

          11.16 Compliance with Laws and Regulations. The Plan, the grant, issuance, and
exercise of Awards thereunder, and the obligation of the Company to sell and deliver the Shares
under such Awards, shall be subject to all applicable federal and state laws, rules and regulations
and to such approvals by any government or regulatory agency as may be required. Awards issued
under the Plan shall not be exercisable prior to (a) the date upon which the Company shall have
registered the Shares for which Awards may be issued hereunder under the Securities Act, and (b)
the completion of any registration or qualification of such Shares under state law, or any ruling
or regulation of any governmental body which the Company shall, in its sole discretion, determine
to be necessary or advisable in connection therewith, or alternatively, unless the Company shall
have received an opinion from counsel to the Company stating that the grant, issuance, or exercise
of such Awards may be effected without registering the Shares subject to such Awards under the
Securities Act, or under state or other law.

          11.17 Expenses. All expenses and costs in connection with administration of the Plan
shall be borne by the Company.

          11.18 Limitation of Liability. The liability of the Company and its
Affiliates under this Plan or in connection with any grant, issuance, or exercise of an Award is
limited to the obligations expressly set forth in the Plan and in any Award Agreements, and no term
or provision of this Plan or of any Award Agreements shall be construed to impose any further or
additional duties, obligations or costs on the Company and its Affiliates not expressly set forth
in the Plan or the Award Agreements.

     12. Amendment, Termination, and Duration.

 

 

          12.01 Amendment, Suspension, or Termination. The Committee may amend, modify, or
terminate the Plan at any time without further action on the part of the stockholders of the
Company; provided, however, that (a) in no event shall any amendment be made to the
Plan which would cause the Incentive Stock Option granted hereunder to fail to qualify as incentive
stock options under the Code; (b) any amendment to the Plan which requires the approval of the
stockholders of the Company under the Code or the regulations promulgated thereunder shall be
subject to approval by the stockholders of the Company in accordance with the Code or such
regulations; and (c) any amendment to the Plan which requires the approval of the stockholders of
the Company under any rules promulgated under the Exchange Act shall be subject to the approval of
the stockholders of the Company in accordance with such rules. In addition, as required by Rule
16b-3 of the Exchange Act, the provisions of Section 9 regarding the formula for determining the
amount, exercise price, and timing of Non-Employee Director Options shall in no event be amended
more than once every six (6) months, other than to comport with changes in the Code. No amendment,
modification, suspension, or termination of the Plan shall in any manner adversely affect any Award
previously granted to a Participant under the Plan without the consent of the Participant or the
transferee of such Award. No Award may be granted during any period of suspension or after
termination of the Plan.

          With the consent of the Participant affected, the Committee may amend outstanding Awards or
related agreements in a manner not inconsistent with the Plan. The Committee shall have the right
to amend or modify the terms and provisions of the Plan and of any outstanding Incentive Stock
Options granted under the Plan to the extent necessary to qualify any or all such Incentive Stock
Options for such favorable federal income tax treatment (including deferral of taxation upon
exercise) as may be afforded incentive stock options under Section 422 of the Code.
Notwithstanding any provision of this Plan to the contrary, if the Committee determines that any
Award may not comply with Section 409A of the Code or may not be exempt from coverage under Section
409A of the Code, the Committee may amend the Plan and any affected Award Agreement, or take any
other action, without the Participant’s consent, that the Committee believes necessary or
appropriate to (1) exempt the Plan and any Award from coverage under Section 409A of the Code, or
(2) comply with the requirements of Section 409A of the Code.

          12.02 Term of the Plan. The Plan shall become effective on the Effective Date,
subject to the approval of the Plan by the holders of a majority of the shares of common stock of
the Company entitled to vote on, or within twelve months of, the date of the Plan’s adoption by the
Board, and all Awards granted prior to such approval shall be subject to such approval. The Plan
shall terminate on the tenth anniversary of the Effective Date, or such earlier date as may be
determined by the Board. Termination of the Plan, however, shall not affect the rights of
Participants under Awards previously granted to them, and all unexpired Awards shall continue in
force and operation after termination of the Plan except as they may lapse or be terminated by
their own terms and conditions.

     13. Definitions. As used in this Plan, the following words and
phrases shall have the meanings indicated unless a different meaning is plainly required by the
context:

          13.01 Affiliate. “Affiliate” means any corporation or any other entity (including,
but not limited to, partnerships, limited liability corporations and joint ventures) controlling,
controlled by, or under common control with the Company.

          13.02 Affiliated SAR. “Affiliated SAR” means an SAR that is granted in connection
with a related Option, and which automatically will be deemed to be exercised at the same time that
the related Option is exercised. The deemed exercise of an Affiliated SAR shall not necessitate a
reduction in the number of Shares subject to the related Option, except to the extent of the
exercise of the related Option.

          13.03 Associate. “Associate” means any officer, management or associate of the
Company or of an Affiliate, whether such associate is so employed at the time the Plan is adopted
or becomes so employed subsequent to the adoption of the Plan.

 

 

          13.04 Award. “Award” means, individually or collectively, a grant under the Plan of
Nonqualified Stock Options, Incentive Stock Options, SARs, Restricted Stock, Performance Units, or
Performance Shares.

          13.05 Award Agreement. “Award Agreement” means the written agreement setting forth
the terms and provisions applicable to each Award granted under the Plan.

          13.06 Board. “Board” means the Board of Directors of the Company.

          13.07 Change in Control. “Change in Control” of the Company shall be deemed to have
occurred if, as a result of a tender offer, merger, consolidation, sale of assets or contested
election, or any combination of the foregoing transactions (a “Transaction”), the persons who were
directors of the Company immediately before the Transaction shall cease to constitute a majority of
the Board or of any successor to the Company; provided, however, that any Transaction shall not be
deemed to be a change in control if the Transaction causing such change shall have been approved by
the affirmative vote of at least a majority of the members of the Board in office immediately prior
to the change in control.

          13.08 Code. “Code” means the Internal Revenue Code of 1986, as amended. Reference to
a specific section of the Code or regulation thereunder shall include such section or regulation,
any valid regulation promulgated under such section, and any comparable provision of any future
legislation or regulation amending, supplementing or superseding such section or regulation.

          13.09 Committee. “Committee” means the committee appointed by the Board (pursuant to
Section 3.01) to administer the Plan.

          13.10 Company. “Company” means CheckFree Corporation, a Delaware corporation, and any
current or future Subsidiary or Parent thereof.

          13.11 Consultant. “Consultant” means any consultant, adviser, independent contractor,
or other person who provides significant services to the Company or its Affiliates, but who is
neither an Associate nor a Director.

          13.12 Covered Officers. “Covered Officers” means those Participants who the Committee
designates, for each Performance Period, in order to maintain qualified performance-based
compensation within the meaning of Code Section 162(m).

          13.13 Director. “Director” means any individual who is a member of the Board.

          13.14 Disability. “Disability” means any injury of the body or any disorder of the
body or mind which renders the Participant unable to perform the material and substantial duties of
his regular employment by the Company at the time of the Company’s termination of employment by the
Company. The Company’s determination that a termination of employment was not a Disability related
Termination of Service may be disputed by the Participant for purposes of any Award held by the
Participant under this Plan upon written notice to the Company’s Chief Financial Officer within 30
days after termination of employment. If so disputed, the Company will promptly select a
physician, the Participant will promptly select a physician, and the physicians so selected will
select a third physician (“Independent Physician”) who will make a binding determination of
Disability for purposes of this Plan. The Participant will make himself available for and submit to
examinations by such physicians as may be directed by the Company. Failure of the Participant to
submit to any examination or failure of the Independent Physician to make his determination within
90 days after the date of the notice that the Participant disputed the Company’s determination
shall constitute acceptance of the Company’s determination as to Disability. If the decision of
the Independent Physician upholds the Company’s determination, any outstanding Award held by the
Participant shall be exercisable for 30 days from the date of such decision (but not later than the
expiration of the date of the Award Agreement) to the extent that the Award was exercisable on the
date of the Participant’s termination of employment and thereafter the Award shall terminate.

 

 

          13.15 Exchange Act. “Exchange Act” means the Securities Exchange Act of 1934, as
amended. Reference to a specific section of the Exchange Act or regulation thereunder shall
include such section or regulation, any valid regulation promulgated under such section, and any
comparable provision of any future legislation or regulation amending, supplementing or superseding
such section or regulation.

          13.16 Exercise Price. “Exercise Price” means the price at which a Share may be
purchased by a Participant pursuant to the exercise of an Option.

          13.17 Extraordinary Events. “Extraordinary Events” shall mean (a) asset write-downs;
(b) litigation, claims, judgments, or settlements; (c) the effect of changes in tax law, accounting
principles or other such laws or provisions affecting reported results; (d) accruals for
reorganization and restructuring programs; (e) capital gains and losses, (f) special charges in
connection with mergers and acquisitions; and (g) any extraordinary non-recurring items as
described in Accounting Principles Board Opinion No. 30 and/or in management’s discussion and
analysis of financial condition and results of operation appearing or incorporated by reference in
the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission for the
applicable year.

          13.18 Fair Market Value. If the Shares are publicly traded, the term “Fair Market
Value” shall mean (a) the closing price quoted in the Nasdaq Stock Market, if the Shares are so
quoted, (b) the last quote reported by Nasdaq for small-cap issues, if the Shares are so quoted,
(c) the mean between the bid and asked prices as reported by Nasdaq, if the Shares are so quoted,
or (d) if the Shares are listed on another securities exchange, the closing price at which the
Shares are quoted on such exchange, in each case at the close of the Grant Date or, if there be no
quotation or sale on that date, the next trading day after the Grant Date on which the Shares are
quoted or traded. In all other cases, Fair Market Value of the Shares shall be determined by and in
accordance with procedures established in good faith by the Committee and, with respect to
Incentive Stock Options, conforming to regulations issued by the Internal Revenue Service regarding
incentive stock options.

          13.19 Fiscal Year. “Fiscal Year” means the fiscal year of the Company.

          13.20 Freestanding SAR. “Freestanding SAR” means an SAR that is granted independently
of any Option.

          13.21 Grant Date. “Grant Date” means, with respect to an Award, the date that the
Committee acts to grant the Award or such later date as the Committee shall specify.

          13.22 Incentive Stock Option. “Incentive Stock Option” means an Option to purchase
Shares which is designated as an Incentive Stock Option and is intended to meet the requirements of
section 422 of the Code.

          13.23 Non-Employee Director. “Non-Employee Director” means a Director who does not an
Associate of the Company.

          13.24 Nonqualified Stock Option. “Nonqualified Stock Option” means an option to
purchase Shares which does not meet the requirements of section 422 of the Code.

          13.25 Option. “Option” means an Incentive Stock Option or a Nonqualified Stock
Option.

          13.26 Participant. “Participant” means an Associate, Consultant, or Non-Employee
Director who has an outstanding Award.

          13.27 Parent. “Parent” shall have the meaning set forth in section 424(e) of the
Code.

          13.28 Performance Goal. “Performance Goal” shall mean any one or more of the
following performance criteria:

 

 

               (a) Income (loss) per common share from continuing operations as disclosed in the Company’s
annual report to stockholders for a particular Fiscal Year;

               (b) Income (loss) per common share disclosed in the Company’s annual report to stockholders
for a particular Fiscal Year;

               (c) Income (loss) per common share or income (loss) per common share from continuing
operations, excluding (i) extraordinary charge(s); (ii) any accruals for restructuring programs,
merger integration costs, or merger transaction costs; and/or (iii) other unusual or infrequent
items (whether gains or losses) as defined by generally accepted accounting principles (GAAP) which
are disclosed as a separate component of income or loss on the face of the income statement or as
may be disclosed in the notes to the financial statements (hereinafter “EPS”);

               (d) Ratio of (i) operating profit, or other objective and specific income (loss) category
results to (ii) average common shares outstanding (adjustments to (i) in this paragraph may be made
at the time of the goal/target establishment by the Committee in its discretion);

               (e) Any of items (a), (b), (c) or (d) on a diluted basis as described in Statement of
Financial Accounting Standards No. 128 including official interpretations or amendments thereof
which may be issued from time to time as long as such interpretations or amendments are utilized on
the face of the income statement or in the notes to the financial statements disclosed in the
Company’s annual report to stockholders;

               (f) Share price;

               (g) Total stockholder return expressed on a dollar or percentage basis as is customarily
disclosed in the proxy statement accompanying the notice of annual meetings of stockholders;

               (h) Income (loss) (i) from continuing operations before extraordinary charge(s), (ii) before
extraordinary charge(s), or (iii) net, as the case may be, adjusted to remove the effect of any
accruals for restructuring programs or other unusual or infrequent items as defined by generally
accepted accounting principles (GAAP) disclosed as a separate component of income on the face of
the income statement or in the notes to the financial statements;

               (i) Net income;

               (j) Income (loss) before income taxes;

               (k) Percentage increase in the (i) number of consumers using the Company’s billing and payment
services, (ii) the number of transactions processed by the Company, or (iii) the percentage of
transactions processed electronically by the Company, each as disclosed in the Company’s Annual
Report on Form 10-K;

               (1) Any of items (a) through (k) above with respect to any Parent, Subsidiary, Affiliate,
division, business unit or business group of the Company whether or not such information is
included in the Company’s annual report to stockholders, proxy statement or notice of annual
meeting of stockholders;

               (m) Any of items (a) though (k) above with respect to a Performance Period whether or not such
information is included in the Company’s annual report to stockholders, proxy statement or notice
of annual meetings of stockholders;

               (n) Total Stockholder Return Ranking Position — meaning the relative placement of the
Company’s Total Stockholder Return compared to those publicly held companies in the Company’s peer
group as established by the Committee prior to the beginning of a vesting period or such later date
as permitted under the Code. The peer group shall be comprised of not less than six (6) companies,
including the Company; or

 

 

               (o) Any other objective criteria established by the Committee and approved by the stockholders
of the Company prior to payment of any Award based on the criteria.

          With respect to items (a), (b), (c) and (d) above, other terminology may be used for “income
(loss) per common share” (such as “Basic EPS”, “earnings per common share”, “diluted EPS”, or
“earnings per common share-assuming dilution”) as contemplated by Statement of Financial Accounting
Standards No. 128.

          13.29 Performance Period. “Performance Period” means the Fiscal Year except in the
following cases: (a) the Associate’s service period within a Fiscal Year in the case of a new hire
or promoted Associate; or (b) a period of service determined at the discretion of the Committee
prior to the expiration of more than 25% of the period. Notwithstanding any provision contained
herein, Performance Periods of Awards granted to Section 16 Persons shall exceed six (6) months in
length (or such shorter period as may be permissible while maintaining compliance with Rule 16b-3).

          13.30 Performance Shares. “Performance Share” means a Performance Share granted to a
Participant pursuant to Section 8.

          13.31 Performance Unit. “Performance Unit” means a Performance Unit granted to a
Participant pursuant to Section 8.

          13.32 Period of Restriction. “Period of Restriction” means the period during which
shares of Restricted Stock are subject to forfeiture and/or restrictions on transferability;
provided, however, that the Period of Restriction on Shares granted to a Section 16
Person may not lapse until at least six (6) months after the Grant Date.

          13.33 Plan. “Plan” means the CheckFree Corporation 2002 Stock Incentive Plan, as set
forth in this instrument and as hereafter amended from time to time.

          13.34 Restricted Stock. “Restricted Stock” means an Award granted to a Participant
pursuant to Section 7.

          13.35 Retirement. “Retirement” means, in the case of an Associate, a Termination of
Service by a Participant who has attained the age of at least 59 1/2, who has been continuously
employed by the Company for at least five years, and who has entered into a written confidentiality
and non-competition agreement with the Company (“Retirement Agreement”) in a form acceptable to the
Committee at the time of such termination of employment. With respect to a Consultant, no
Termination of Service shall be deemed to be on account of “Retirement.” With respect to a
Non-Employee Director, “Retirement” means termination of service on the Committee with the consent
of the remaining Directors.

          13.36 Rule 16b-3. “Rule 16b-3” means Rule 16b-3 promulgated under the Exchange Act,
as amended, and any future regulation amending, supplementing or superseding such regulation.

          13.37 Section 16 Person. “Section 16 Person” means a person who, with respect to the
Shares, is subject to section 16 of the Exchange Act.

          13.38 Securities Act. “Securities Act” means the Securities Act of 1933, as amended.
Reference to a specific section of the Securities Act or regulation thereunder shall include such
section or regulation, any valid regulation promulgated under such section, and any comparable
provision of any future legislation or regulation amending, supplementing or superseding such
section or regulation.

          13.39 Shares. “Shares” means the shares of the Company’s common stock, $.01 par
value.

          13.40 Stock Appreciation Right or SAR. “Stock Appreciation Right” or “SAR” means an
Award, granted alone or in connection with a related Option, that pursuant to Section 6 is
designated as an SAR.

 

 

          13.41 Subsidiary. “Subsidiary” means any entity in an unbroken chain of entities
beginning with the Company if each of the entities other than the last entity in the chain then
owns fifty percent (50%) or more of the total combined voting power in one of the other entities in
the chain.

          13.42 Tandum SAR. “Tandem SAR” means an SAR that is granted in connection with a
related Option, the exercise of which shall require forfeiture of the right to purchase an equal
number of Shares under the related Option (and when a Share is purchased under the Option, the SAR
shall be cancelled to the same extent).

          13.43 Termination of Service. “Termination of Service” means (a) in the case of an
Associate, a cessation of the employee-employer relationship between an Associate and the Company
or an Affiliate for any reason, including, but not by way of limitation, a termination by
resignation, discharge, death, Disability, Retirement, or the disaffiliation of an Affiliate, but
excluding, with the consent of the Committee, any such termination where there is a simultaneous
re-employment by the Company or an Affiliate or where there is a simultaneous re-engagement of the
Associate as a Consultant by the Company or an Affiliate; (b) in the case of a Consultant, a
cessation of the service relationship between a Consultant and the Company or an Affiliate for any
reason, including, but not by way of limitation, a termination by resignation, discharge, death,
Disability, or the disaffiliation of an Affiliate, but excluding, with the consent of the
Committee, any such termination where there is a simultaneous re-engagement of the Consultant by
the Company or an Affiliate or where there is a simultaneous re-employment of the Consultant as an
Associate by the Company or an Affiliate; and (c) in the case of a Non-Employee Director, a
cessation of the Non-Employee Director’s service on the Board for any reason. For purposes of the
Plan, transfer of employment of a Participant between the Company and any one of its Affiliates (or
between Affiliates) shall not be deemed a Termination of Service.

          13.44 Termination of Service For Cause. “Termination of Service For Cause” means
Termination of Service for (a) the commission of an act of dishonesty, including but not limited to
misappropriation of funds or property of the Company; (b) the engagement in activities or conduct
injurious to the reputation of the Company; (c) the conviction or entry of a guilty or no contest
plea to a misdemeanor involving an act of moral turpitude or a felony; (d) the violation of any of
the terms and conditions of any written agreement the Participant may have from time to time with
the Company (following 30 days’ written notice from the Company specifying the violation and the
Participant’s failure to cure such violation within such 30-day period); or (e) any refusal to
comply with the written directives, policies or regulations established from time to time by the
Board.

     14. Legal Construction.

          14.01 Gender and Number. Except where otherwise indicated by the context, any
masculine term used herein also shall include the feminine; the plural shall include the singular
and the singular shall include the plural.

          14.02 Severability. In the event any provision of the Plan shall be held illegal or
invalid for any reason, the illegality or invalidity shall not affect the remaining parts of the
Plan, and the Plan shall be construed and enforced as if the illegal or invalid provision had not
been included.

          14.03 Requirements of Law. The granting of Awards and the issuance of Shares under
the Plan shall be subject to all applicable laws, rules, and regulations, and to such approvals by
any governmental agencies, the Nasdaq National Market, or national securities exchanges as may be
required.

          14.04 Compliance with Rule 16b-3. Transactions under this Plan with respect to
Section 16 Persons are intended to comply with all applicable conditions of Rule 16b-3 of the
Exchange Act. To the extent any provision of the Plan, Award Agreement or action by the Committee
fails to so comply, it shall be deemed null and void, to the extent permitted by law and deemed
advisable by the Committee. Notwithstanding any contrary provision of the Plan, if the Committee
specifically determines that compliance with Rule 16b-3 of the Exchange Act no longer is required,
all references in the Plan to Rule 16b-3 of the Exchange Act shall be null and void.

 

 

          14.05 Governing Law. The Plan and all Award Agreements shall be construed in
accordance with and governed by the laws of the State of Delaware.

          14.06 Captions. Captions are provided herein for convenience only, and shall not
serve as a basis for interpretation or construction of the Plan.

Adopted: August 8, 2002

Amended and Restated: July 26, 2007EX-10.(A) 401K PLAN ADOPTION AGREEMENT

 

Exhibit 10(a)

CHECKFREE SERVICES CORPORATION

VOLUME SUBMITTER 401(K) PLAN

By executing this volume submitter 401(k) plan Adoption Agreement (the “Agreement”), the
Employer agrees to establish or continue a 401(k) plan for its Employees. The 401(k) plan adopted
by the Employer consists of the Basic Plan Document (the “BPD”) and the elections made under this
Agreement (collectively referred to as the “Plan”). Other Employers may jointly co-sponsor the Plan
by signing a Co-Sponsor Adoption Page, which is attached to this Agreement. (See Section 1.3 of the
BPD for rules regarding the adoption of this Plan by other Employers.) This Plan is effective as of
the Effective Date identified on the Signature Page of this Agreement.

1. Employer Information

	 	a.	 	Name and address of Employer executing the Signature Page of this Agreement:
CheckFree Services Corporation, 4411 East Jones Bridge Road, Norcross, Georgia
30092
	 
	 	b.	 	Employer Identification Number (EIN) for the Employer: 31-1013521
	 
	 	c.	 	Business entity of Employer (optional):

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	þ

	 	 	(1	)	 	C-Corporation
	 	o
	 	 	(2	)	 	S-Corporation
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	o

	 	 	(3	)	 	Limited Liability Corporation
	 	o
	 	 	(4	)	 	Sole Proprietorship
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	o

	 	 	(5	)	 	Partnership
	 	o
	 	 	(6	)	 	Limited Liability Partnership
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	o

	 	 	(7	)	 	Government
	 	o
	 	 	(8	)	 	Other                     

	 	d.	 	Last day of Employer’s taxable year (optional): June 30
	 
	 	e.	 	Does the Employer have any Related Employers (as defined in Section 22.143 of the BPD)?

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	þ

	 	 	(1	)	 	Yes
	 	o
	 	 	(2	)	 	No

	 	f.	 	If e. is yes, list the Related Employers (optional):
	 
	 	 	 	Bastogne, Inc., CheckFree Investment Corporation, American Payment Holdco, Inc.,
CheckFreePay Corporation of California, CheckFree i-Solutions Corp, CheckFree i-Solutions,
Inc., CheckFree Software & Services UK Limited, CheckFree E-Commerce Solutions Limited,
Heliograph Inc., Heliograph Limited, CheckFree Corporation, CheckFreePay Corporation,
CheckFreePay Corporation of New York, CheckFree PhonePay Services, Inc., Accurate Software
Inc., CheckFree Solutions Limited, CheckFree Solutions S.A., CheckFree Solutions (Australia)
PTY Limited, Carreker Corporation and Corillian Corporation.
	 
	 	 	 	[Note: This Plan will cover Employees of a Related Employer only if such Related Employer
executes a Co-Sponsor Adoption Page. Failure to cover the Employees of a Related Employer
may result in a violation of the minimum coverage rules under Code §410(b). See Section 1.3
of the BPD.]
	 
	 	o g.	 	Multiple Employer Plan. Check this g. if this Plan is a Multiple Employer Plan. A
Multiple Employer Plan exists if an Employer (other than a Related Employer) will execute a
Co-Sponsor Page under this Agreement. (See Sections 1.3 and 21.6 of the BPD for special
rules applicable to Multiple Employer Plans.)

2. Plan Information

	 	a.	 	Name of Plan: CheckFree Services Corporation 401(k) Plan
	 
	 	b.	 	Plan number (as identified on the Form 5500 series filing for the Plan): 003
	 
	 	c.	 	Trust identification number (optional): 76-0765786
	 
	 	d.	 	Plan Year: [Check (1) or (2). Selection (3) may be selected in addition to (1) or (2) to
identify a Short Plan Year.]

	 	 	 	 	 	 	 
	þ

	 	 	(1	)	 	The calendar year.
	 
	 	 	 	 	 	 
	o

	 	 	(2	)	 	The 12-consecutive month period ending                     .
	 
	 	 	 	 	 	 
	þ

	 	 	(3	)	 	The Plan has a Short Plan Year beginning July 1, 2006 and ending December 31, 2006.

3. Types of Contributions

	 	 	 	The following types of contributions are authorized under this Plan. The selections made
below should correspond with the selections made under Parts 4A, 4B, 4C, 4D and 4E of this
Agreement.

	 	 	 	 	 
	þ

	 	a.
	 	Section 401(k) Deferrals (Part 4A).

Ó 2002

1

 

	 	 	 	 	 
	þ

	 	b.
	 	Employer Matching Contributions (Part 4B).
	 
	 	 	 	 
	þ

	 	c.
	 	Employer Nonelective Contributions (Part 4C).
	 
	 	 	 	 
	o

	 	d.
	 	Employee After-Tax Contributions (Part 4D).
	 
	 	 	 	 
	o

	 	e.
	 	Safe Harbor Matching Contributions (Part 4E).
	 
	 	 	 	 
	o

	 	f.
	 	Safe Harbor Nonelective Contributions (Part 4E).
	 
	 	 	 	 
	o

	 	g.
	 	None. This Plan is a frozen Plan effective ___(see Section 2.1(c) of the BPD).

Part 1 — Eligibility Conditions

(See Article 1 of the BPD)

	4.	 	Excluded Employees. [Check a. or any combination of b. — g. for those contributions the
Employer elects to make under Part 4 of this Agreement. See Section 1.2 of the BPD for rules
regarding the determination of Excluded Employees for Employee After-Tax Contributions, QNECs,
QMACs and Safe Harbor Contributions.]

	 	 	 	 	 	 	 	 	 
	 	 	(1)	 	(2)	 	(3)	 	 
	 	 	§401(k)	 	Employer	 	Employer	 	 
	 	 	Deferrals	 	Match	 	Nonelective	 	 
	a.

	 	o
	 	o
	 	o
	 	No excluded categories of Employees.
	 
	 	 	 	 	 	 	 	 
	b.

	 	o
	 	o
	 	o
	 	Union Employees (see Section 22.177 of the BPD).
	 
	 	 	 	 	 	 	 	 
	c.

	 	þ
	 	þ
	 	þ
	 	Nonresident Alien Employees (see Section 22.109 of the BPD).
	 
	 	 	 	 	 	 	 	 
	d.

	 	þ
	 	þ
	 	þ
	 	Leased Employees (see Section 1.2(b) of the BPD).
	 
	 	 	 	 	 	 	 	 
	e.

	 	þ
	 	þ
	 	þ
	 	Independent Contractors.
	 
	 	 	 	 	 	 	 	 
	f.

	 	þ
	 	þ
	 	þ
	 	Interns, Temporary Employees.
	 
	 	 	 	 	 	 	 	 
	g.

	 	o
	 	o
	 	o
	 	Highly Compensated Employees.

	5.	 	Minimum age and service conditions for becoming an Eligible Participant. [Check a. or check
b. and/or any one of c. — e. for those contributions the Employer elects to make under Part 4
of this Agreement. See Section 1.4 of the BPD for the application of the minimum age and
service conditions for purposes of Employee After-Tax Contributions, QNECs, QMACs and Safe
Harbor Contributions. See Part 7 of this Agreement for special service crediting rules.]

	 	 	 	 	 	 	 	 	 
	 	 	(1)	 	(2)	 	(3)	 	 
	 	 	§401(k)	 	Employer	 	Employer	 	 
	 	 	Deferrals	 	Match	 	Nonelective	 	 
	a.

	 	o
	 	o
	 	o
	 	None (conditions are met on Employment Commencement Date).
	 
	 	 	 	 	 	 	 	 
	b.

	 	þ
	 	þ
	 	þ
	 	Age 18 (cannot exceed age 21).
	 
	 	 	 	 	 	 	 	 
	c.

	 	o
	 	o
	 	o
	 	One Year of Service.
	 
	 	 	 	 	 	 	 	 
	d.

	 	o
	 	þ
	 	þ
	 	Six (6) consecutive months (not more than 12) during which the
Employee completes at least ___ Hours of Service (cannot exceed 1,000). If an
Employee does not satisfy this requirement in the first designated period of
months following his/her Employment Commencement Date, such Employee will be
deemed to satisfy this condition upon completing a Year of Service (as defined
in Section 1.4(b) of the BPD).
	 
	 	 	 	 	 	 	 	 
	e.

	 	N/A
	 	o
	 	o
	 	Two Years of Service. [Full and immediate vesting must be selected
under Part 6 of this Agreement.]

Ó 2002

2

 

	o 6.	 	Dual eligibility. Any Employee (other than an Excluded Employee) who is employed on the date designated
under a. or b. below, as applicable, is deemed to be an Eligible Participant as of the later of the date
identified under this #6 or the Effective Date of this Plan, without regard to any Entry Date selected
under Part 2. See Section 1.4(d)(2) of the BPD. [Note: If this #6 is checked, also check a. or b. If this
#6 is not checked, the provisions of Section 1.4(d)(1) of the BPD apply.]

	 	 	 	 	 
	o

	 	a.
	 	The Effective Date of this Plan.
	 
	 	 	 	 
	o

	 	b.
	 	(Identify date)                                                             

	 	 	[Note: Any date specified under b. may not cause the Plan to violate the provisions of Code
§410(a). See Section 1.4 of the BPD.]

Part 2 — Commencement of Participation

(See Section 1.5 of the BPD)

	7.	 	Entry Date upon which participation begins after completing minimum age and service
conditions under Part 1, #5 above. [Check one of a. — e. for those contributions the Employer
elects to make under Part 4 of this Agreement. See Section 1.5 of the BPD for determining the
Entry Date applicable to Employee After-Tax Contributions, QNECs, QMACs and Safe Harbor
Contributions.]

	 	 	 	 	 	 	 	 	 
	 	 	(1)	 	(2)	 	(3)	 	 
	 	 	§401(k)	 	Employer	 	Employer	 	 
	 	 	Deferrals	 	Match	 	Nonelective	 	 
	a.

	 	o
	 	o
	 	o
	 	The next following Entry Date (as defined in #8 below).
	 
	 	 	 	 	 	 	 	 
	b.

	 	o
	 	o
	 	o
	 	The Entry Date (as defined in #8 below) coinciding with or next following the
completion of the age and service conditions.
	 
	 	 	 	 	 	 	 	 
	c.

	 	N/A
	 	o
	 	o
	 	The nearest Entry Date (as defined in #8 below).
	 
	 	 	 	 	 	 	 	 
	d.

	 	N/A
	 	o
	 	o
	 	The preceding Entry Date (as defined in #8 below).
	 
	 	 	 	 	 	 	 	 
	e.

	 	þ
	 	þ
	 	þ
	 	The date the age and service conditions are satisfied. [Also check #8.e.
below for the same type of contribution(s) checked here.] The Entry Date
for the Employer Matching Contribution Account is eliminated effective July
1, 2006.

	8.	 	Definition of Entry Date. [Check one of a. — e. for those contributions the Employer elects
to make under Part 4 of this Agreement. Selection f. may be checked instead of or in addition
to a. — e. See Section 1.5 of the BPD for determining the Entry Date applicable to Employee
After-Tax Contributions, QNECs, QMACs and Safe Harbor Contributions.]

	 	 	 	 	 	 	 	 	 
	 	 	(1)	 	(2)	 	(3)	 	 
	 	 	§401(k)	 	Employer	 	Employer	 	 
	 	 	Deferrals	 	Match	 	Nonelective	 	 
	a.

	 	o
	 	o
	 	o
	 	The first day of the Plan Year and the first day of 7th month of the Plan
Year.
	 
	 	 	 	 	 	 	 	 
	b.

	 	o
	 	o
	 	o
	 	The first day of each quarter of the Plan Year.
	 
	 	 	 	 	 	 	 	 
	c.

	 	o
	 	o
	 	o
	 	The first day of each month of the Plan Year.
	 
	 	 	 	 	 	 	 	 
	d.

	 	o
	 	o
	 	o
	 	The first day of the Plan Year. [If #7.a. or #7.b. above is checked for the
same type of contribution as checked here, see the restrictions in Section
1.5(b) of the BPD.]
	 
	 	 	 	 	 	 	 	 
	e.

	 	þ
	 	þ
	 	þ
	 	The date the conditions in Part 1, #5. above are satisfied. [This e. should
be checked for a particular type of contribution only if #7.e. above is also
checked for that type of contribution.]
	 
	 	 	 	 	 	 	 	 
	f.

	 	o
	 	o
	 	o
	 	(Describe Entry Date)
	 

	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	[Note: Any Entry Date designated in f. must comply with
the requirements of Code §410(a)(4) and must satisfy the
nondiscrimination requirements under §1.401(a)(4) of the
regulations. See Section 1.5(a) of the BPD.]

Ó 2002

3

 

Part 3 — Compensation Definitions

(See Sections 22.92 and 22.172 of the BPD)

	9.	 	Definition of Total Compensation:

	 	 	 	 	 
	þ

	 	a.
	 	W-2 Wages.
	 
	 	 	 	 
	o

	 	b.
	 	Withholding Wages.
	 
	 	 	 	 
	o

	 	c.
	 	Code §415 Safe Harbor Compensation.

	 	 	[Note: Each of the above definitions is increased for Elective Deferrals (as defined in
Section 22.55 of the BPD), for pre-tax contributions to a cafeteria plan or a Code §457
plan, and for qualified transportation fringes under Code §132(f)(4). See Section 22.172 of
the BPD.]
	 
	10.	 	Definition of Included Compensation for allocation of contributions or forfeitures: [Check a.
or b. for those contributions the Employer elects under Part 4 of this Agreement. If b. is
selected for a particular contribution, also check any combination of c. through i. for that
type of contribution. See Section 22.92 of the BPD for determining Included Compensation for
Employee After-Tax Contributions, QNECs, QMACs and Safe Harbor Contributions.]

	 	 	 	 	 	 	 	 	 
	 	 	(1)	 	(2)	 	(3)	 	 
	 	 	§401(k)	 	Employer	 	Employer	 	 
	 	 	Deferrals	 	Match	 	Nonelective	 	 
	a.

	 	o
	 	o
	 	o
	 	Total Compensation, as defined in #9 above.
	 
	 	 	 	 	 	 	 	 
	b.

	 	þ
	 	þ
	 	þ
	 	Total Compensation, as defined in #9 above, with the following exclusions:
	 
	 	 	 	 	 	 	 	 
	c.

	 	N/A
	 	o
	 	o
	 	Elective Deferrals, pre-tax contributions to a cafeteria plan or a Code
§457 plan, and qualified transportation fringes under Code §132(f)(4) are
excluded. See Section 22.92 of the BPD.

	 
	 	 	 	 	 	 	 	 
	d.

	 	þ
	 	þ
	 	þ
	 	Fringe benefits, expense reimbursements, deferred compensation, welfare
benefits, President’s Club, Stock awards, and Stock options are excluded.

	 
	 	 	 	 	 	 	 	 
	e.

	 	o
	 	o
	 	o
	 	Compensation above $___ is excluded.

	 
	 	 	 	 	 	 	 	 
	f.

	 	o
	 	þ
	 	þ
	 	Sign-on Bonuses are excluded.

	 
	 	 	 	 	 	 	 	 
	g.

	 	o
	 	þ
	 	þ
	 	Retention/Stay Bonuses are excluded.

	 
	 	 	 	 	 	 	 	 
	h.

	 	o
	 	þ
	 	þ
	 	Relocation Pay is excluded.

	 
	 	 	 	 	 	 	 	 
	i.

	 	o
	 	o
	 	o
	 	Amounts paid for services performed for a Related Employer that does not
execute the Co-Sponsor Adoption Page under this Agreement are excluded.

	 	 	[Note: Any exclusions selected under f. through i. above do not apply to Nonhighly
Compensated Employees in determining allocations under the Safe Harbor 401(k) Plan
provisions under Part 4E of this Agreement.]
	 

	o 11.	 	Special rules.

	 	 	 	 	 
	o

	 	a.
	 	Highly Compensated Employees only. For all purposes under the Plan, the modifications to Included
Compensation elected in #10.f. through #10.i. above will apply only to Highly Compensated Employees.
	 
	 	 	 	 
	o

	 	b.
	 	Measurement period (see the operating rules under Section 2.2(c)(3) of the BPD). Instead of the Plan Year,
Included Compensation is determined on the basis of the period elected under (1) or (2) below.

	 	 	 	 	 	 	 
	o

	 	 	(1	)	 	The calendar year ending in the Plan Year.
	 
	 	 	 	 	 	 
	o

	 	 	(2	)	 	The 12-month period ending on ___ which ends during the Plan Year.
	 
	 	 	 	 	 	 
	[Note: If this selection b. is checked, Included Compensation will be determined on
the basis of the period designated in (1) or (2) for all contribution types. If this
selection b. is not checked, Included Compensation is based on the Plan Year. See
Part 4 for the ability to use partial year Included Compensation.]
	 
	 	 	 	 	 	 
	[Practitioner Tip: If #11.b is checked, it is recommended that the Limitation Year
for purposes of applying the Annual Additions Limitation under Code §415 correspond
to the period used to determine Included Compensation. This modification to the
Limitation Year may be made in Part 13, #69.a. of this Agreement.]

Ó 2002

4

 

Part 4A — Section 401(k) Deferrals

(See Section 2.3(a) of the BPD)

	þ	 	Check this selection and complete the applicable sections of this Part 4A to allow for
Section 401(k) Deferrals under the Plan.
	 
	þ 12.	 	Section 401(k) Deferral limit. 80% of Included Compensation. [If this #12 is not
checked, the Code §402(g) deferral limit described in Section 17.1 of the BPD and the Annual
Additions Limitation under Article 7 of the BPD still apply.]

	 	 	 	 	 
	þ

	 	a.
	 	Applicable period. The limitation selected under #12 applies with respect to Included Compensation earned during:

	 	 	 	 	 	 	 
	o

	 	 	(1	)	 	the Plan Year.
	 
	 	 	 	 	 	 
	þ

	 	 	(2	)	 	the portion of the Plan Year in which the Employee is an Eligible Participant.
	 
	 	 	 	 	 	 
	o

	 	 	(3	)	 	each separate payroll period during which the Employee is an Eligible Participant.
	 
	 	 	 	 	 	 
	[Note: If Part 3, #11.b. is checked, any period selected under this a. will be
determined as if the Plan Year were the period designated under Part 3, #11.b. See
Section 2.2(c)(3) of the BPD.]

	 	 	 	 	 
	o

	 	b.
	 	Limit applicable only to Highly Compensated Employees. [If this b. is not checked, any limitation selected under
#12 applies to all Eligible Participants.]

	 	 	 	 	 	 	 
	o

	 	 	(1	)	 	The limitation selected under #12 applies only to Highly Compensated Employees.
	 
	 	 	 	 	 	 
	o

	 	 	(2	)	 	The limitation selected under #12 applies only to
Nonhighly Compensated Employees. Highly Compensated Employees may defer up to
___% of Included Compensation (as determined under a. above). [The
percentage inserted in this (2) for Highly Compensated Employees must be lower
than the percentage inserted in #12 for Nonhighly Compensated Employees.]

	þ 13.	 	Minimum deferral rate: [If this #13 is not checked, no minimum deferral rate applies to
Section 401(k) Deferrals under the Plan.]

	 	 	 	 	 
	þ

	 	a.
	 	1% of Included Compensation for a payroll period.
	 
	 	 	 	 
	o

	 	b.
	 	$___ for a payroll period.

	þ 14.	 	Automatic deferral election. (See Section 2.3(a)(2) of the BPD.) Effective January 1,
2006, an Eligible Participant will automatically defer 2% of Included Compensation for each
payroll period, unless the Eligible Participant makes a contrary Salary Reduction Agreement
election. This automatic deferral election will apply to:

	 	 	 	 	 
	þ

	 	a.
	 	all Eligible Participants.
	 
	 	 	 	 
	o

	 	b.
	 	only those Employees who become Eligible Participants on or after the following date:

	o 15.	 	Effective Date. If this Plan is being adopted as a new 401(k) plan or to add a 401(k)
feature to an existing plan, Eligible Participants may begin making Section 401(k) Deferrals
as of:___

Ó 2002

5

 

Part 4B — Employer Matching Contributions

(See Sections 2.3(b) and (c) of the BPD)

	þ	 	Check this selection and complete this Part 4B to allow for Employer Matching Contributions.
Each formula allows for Employer Matching Contributions to be allocated to Section 401(k)
Deferrals and/or Employee After-Tax Contributions (referred to as “applicable contributions”).
If a matching formula applies to both types of contributions, such contributions are
aggregated to determine the Employer Matching Contribution allocated under the formula. If any
formula applies to Employee After-Tax Contributions, Part 4D must be completed. [Note: Do not
check this selection if the only Employer Matching Contributions authorized under the
Plan are Safe Harbor Matching Contributions. Instead, complete the applicable elections under
Part 4E of this Agreement. If a “regular” Employer Matching Contribution will be made in
addition to a Safe Harbor Matching Contribution, complete this Part 4B for the “regular”
Employer Matching Contribution and Part 4E for the Safe Harbor Matching Contribution. To avoid
ACP Testing with respect to any “regular” Employer Matching Contributions, such contributions
may not be based on applicable contributions in excess of 6% of Included Compensation and any
discretionary “regular” Employer Matching Contributions may not exceed 4% of Included
Compensation.]
	 
	16.	 	Employer Matching Contribution formula(s): [See the operating rules under #17 below.]

	 	 	 	 	 	 	 
	 	 	(1)	 	(2)	 	 
	 	 	§401(k)	 	Employee	 	 
	 	 	Deferrals	 	After-Tax	 	 
	a.

	 	þ
	 	o
	 	Fixed matching contribution. Effective July 1, 2006, The Company’s Matching
Contribution is equal to the greater of 50% of the first 6% of eligible earnings or 100%
of deferrals up to $500.00.
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Effective January 1, 2007, the Company’s Matching Contribution is
equal to 50% of the first 6% of eligible earnings.
	 
	 	 	 	 	 	 
	b.

	 	o
	 	o
	 	Discretionary matching contribution. The Employer may make an
additional enhanced matching contribution each year based on performance goals
established by the Employer or the compensation committee of its parent company.
	 
	 	 	 	 	 	 
	c.

	 	o
	 	o
	 	Tiered matching contribution. A uniform percentage of each tier of
each Eligible Participant’s applicable contributions, determined as follows:

	 	 	 
	Tiers of contributions	 	Matching percentage
	(indicate $ or %)	 	 
	(a) First                     

	 	(b)                     
	 
	 	 
	(c) Next                     

	 	(d)                     
	 
	 	 
	(e) Next                     

	 	(f)                     
	 
	 	 
	(g) Next                     

	 	(h)                     
	 
	 	 
	[Note: Fill in only percentages or dollar amounts, but
not both. If percentages are used, each tier represents the
amount of the Participant’s applicable contributions that
equals the specified percentage of the Participant’s Included
Compensation.]

Ó 2002

6

 

	 	 	 	 	 	 	 
	d.

	 	o
	 	o
	 	Discretionary tiered matching contribution. The Employer will
determine a matching percentage for each tier of each Eligible Participant’s applicable
contributions. Tiers are determined in increments of:

	 	 	 
	Tiers of contributions	 	 
	(indicate $ or %)	 	 
	(a) First                     
	 	 
	 
	 	 
	(b) Next                     
	 	 
	 
	 	 
	(c) Next                     
	 	 
	 
	 	 
	(d) Next                     
	 	 
	 
	 	 
	[Note: Fill in only percentages or dollar amounts, but
not both. If percentages are used, each tier represents the
amount of the Participant’s applicable contributions that
equals the specified percentage of the Participant’s
Included Compensation.]

	 	 	 	 	 	 	 
	e.

	 	o
	 	o
	 	Year of Service matching contribution. A uniform percentage of each
Eligible Participant’s applicable contributions based on Years of Service with the
Employer, determined as follows:

	 	 	 
	Years of Service	 	Matching Percentage
	(a)                     

	 	(b)                     %
	 
	 	 
	(c)                     

	 	(d)                     %
	 
	 	 
	(e)                     

	 	(f)                     %

	 	 	 	 	 	 	 
	o

	 	 	1.	 	 	In applying the Year of Service matching contribution formula, a Year of Service is: [If not checked, a Year of
Service is 1,000 Hours of Service during the Plan Year.]

	 	 	 	 	 
	o

	 	a.
	 	as defined for purposes of eligibility under Part 7.
	 
	 	 	 	 
	o

	 	b.
	 	as defined for purposes of vesting under Part 7.

	 	 	 	 	 	 	 
	o

	 	 	2.	 	 	Special limits on Employer Matching Contributions under the Year of Service formula:

	 	 	 	 	 
	o

	 	a.
	 	The Employer Matching Contribution allocated to any Eligible Participant may
not exceed ___% of Included Compensation.
	 
	 	 	 	 
	o

	 	b.
	 	The Employer Matching Contribution will apply only to a Participant’s
applicable contributions that do not exceed:

	 	 	 	 	 	 	 
	o

	 	 	(1	)	 	___% of Included Compensation.
	 
	 	 	 	 	 	 
	o

	 	 	(2	)	 	$___.

Ó 2002

7

 

	17.	 	Operating rules for applying the matching contribution formulas:

	 	a.	 	Applicable contributions taken into account: (See Section 2.3(b)(3) of the
BPD.) The matching contribution formula(s) elected in #16. above (and any limitations
on the amount of a Participant’s applicable contributions considered under such
formula(s)) are applied separately for each:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	þ

	 	 	(1	)	 	Plan Year. (For the short Plan Year from
July 1, 2006 through December 31, 2006.)
	 	o
	 	 	(2	)	 	Plan Year quarter.
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	o

	 	 	(3	)	 	calendar month.
	 	þ
	 	 	(4	)	 	payroll period, effective January 1, 2007

	 	 	 	[Note: If Part 3, #11.b. is checked, the period selected under this a. (to the
extent such period refers to the Plan Year) will be determined as if the Plan Year
were the period designated under Part 3, #11.b.]
	 
	 	b.	 	Special rule for partial period of participation. If an Employee is an Eligible
Participant for only part of the period designated in a. above, Included Compensation
is taken into account for:

	 	 	 	 	 	 	 
	þ

	 	 	(1	)	 	the entire period, including the portion of the period
during which the Employee is not an Eligible Participant.
	 
	 	 	 	 	 	 
	o

	 	 	(2	)	 	the portion of the period in which the Employee is an
Eligible Participant.
	 
	 	 	 	 	 	 
	o

	 	 	(3	)	 	the portion of the period during which the Employee’s
election to make the applicable contributions is in effect.

	 	o c.	 	Special rule for discretionary Employer Matching Contribution. The period selected in a. above does not apply to
the discretionary matching contribution selected under #16.b. above. [Note: This c. should be selected only if
#16.b. is selected in combination with another matching contribution formula under #16 and a period other than
the Plan Year is selected for such other matching contribution formula. If this c. is checked, the discretionary
matching contribution selected under #16.b. will be based on the Plan Year, regardless of any other selection
under a. above.]

	þ 18.	 	Qualified Matching Contributions (QMACs): [Note: Regardless of any elections under this #18, the Employer may make a QMAC to the Plan to correct a
failed ADP or ACP Test, as authorized under Sections 17.2(d)(2) and 17.3(d)(2) of the BPD. Any QMAC allocated to correct the ADP or ACP Test which
is not specifically authorized under this #18 will be allocated to all Eligible Participants who are Nonhighly Compensated Employees as a uniform
percentage of Section 401(k) Deferrals made during the Plan Year. QMACs may only be used in the ADP or ACP Test if the Current Year Testing Method
is selected under #31 below. See Section 2.3(c) of the BPD.]

	 	 	 	 	 
	þ

	 	a.
	 	All Employer Matching Contributions are designated as QMACs.
	 
	 	 	 	 
	o

	 	b.
	 	Only Employer Matching Contributions described in selection(s) ___ under #16 above are designated as QMACs.
	 
	 	 	 	 
	o

	 	c.
	 	In addition to any Employer Matching Contribution provided under #16 above, the Employer may make a discretionary
QMAC that is allocated equally as a percentage of Section 401(k) Deferrals made during the Plan Year. The
Employer may allocate QMACs only on Section 401(k) Deferrals that do not exceed a specific dollar amount or a
percentage of Included Compensation that is uniformly determined by the Employer. QMACs will be allocated to:

	 	 	 	 	 	 	 
	o

	 	 	(1	)	 	Eligible Participants who are Nonhighly Compensated Employees.
	 
	 	 	 	 	 	 
	o

	 	 	(2	)	 	all Eligible Participants.

	19.	 	Allocation conditions. An Eligible Participant must satisfy the following allocation
conditions for an Employer Matching Contribution: [Check a. or b. or any combination of c. —
f. Selection e. may not be checked if b. or d. is checked. Selection g. and/or h. may be
checked in addition to b. — f.]

	 	 	 	 	 
	o

	 	a.
	 	None.
	 
	 	 	 	 
	o

	 	b.
	 	Safe harbor allocation condition. An Employee must be
employed by the Employer on the last day of the Plan Year
OR must have more than ___ (not more than 500) Hours of
Service for the Plan Year.
	 
	 	 	 	 
	þ

	 	c.
	 	Last day of employment condition. An Employee must be
employed with the Employer on the last day of the Plan
Year. The last day of employment condition is effective
for the short plan year from July 1, 2006 through December
31, 2006. Effective January 1, 2007, the last day of
employment condition is deleted.
	 
	 	 	 	 
	o

	 	d.
	 	Hours of Service condition. An Employee must be credited
with at least ___ Hours of Service (may not exceed
1,000) during the Plan Year.
	 
	 	 	 	 
	þ

	 	e.
	 	Elapsed Time Method. (See Section 2.5(c) of the BPD.)

Ó 2002

8

 

	 	 	 	 	 	 	 
	o

	 	 	(1	)	 	Safe harbor allocation condition. An Employee must be
employed by the Employer on the last day of the Plan Year OR must have more
than ___ (not more than 91) consecutive days of employment with the
Employer during the Plan Year.
	 
	 	 	 	 	 	 
	þ

	 	 	(2	)	 	Service condition. For the short plan Year from July 1,
2006 to December 31, 2006, in order to receive an allocation of the Employer
Matching Contribution, an Employee must be hired prior to July 1, 2006, and
must be employed from July 1, 2006 through December 31, 2006. Effective
January 1, 2007, there is no service condition for an allocation of the
Employer Matching Contribution.

	 	 	 	 	 
	o

	 	f.
	 	Distribution restriction. An Employee must not have taken a distribution
of the applicable contributions eligible for an Employer Matching Contribution prior to
the end of the period for which the Employer Matching Contribution is being made (as
defined in #17.a. above). See Section 2.5(d) of the BPD.
	 
	 	 	 	 
	o

	 	g.
	 	Application to a specified period. In applying the allocation
condition(s) designated under b. through e. above, the allocation condition(s) will be
based on the period designated under #17.a. above. In applying an Hours of Service
condition under d. above, the following method will be used: [This g. should be checked
only if a period other than the Plan Year is selected under #17.a. above. Selection (1)
or (2) must be selected only if d. above is also checked.]

	 	 	 	 	 	 	 
	o

	 	 	(1	)	 	Fractional method (see Section 2.5(e)(2)(i) of the BPD).
	 
	 	 	 	 	 	 
	o

	 	 	(2	)	 	Period-by-period method (see Section 2.5(e)(2)(ii) of the BPD).
	 
	 	 	 	 	 	 
	[Practitioner Note: If this g. is not checked, any allocation condition(s) selected
under b. through e. above will apply with respect to the Plan Year, regardless of
the period selected under #17.a. above. See Section 2.5(e) of the BPD for procedural
rules for applying allocation conditions for a period other than the Plan Year.]

	 	 	 	 	 
	o

	 	h.
	 	The above allocation condition(s) will not apply if:

	 	 	 	 	 	 	 
	o

	 	 	(1	)	 	the Participant dies during the Plan Year.
	 
	 	 	 	 	 	 
	o

	 	 	(2	)	 	the Participant is Disabled.
	 
	 	 	 	 	 	 
	o

	 	 	(3	)	 	the Participant, by the end of the Plan Year, has reached:

	 	 	 	 	 
	o

	 	(a)
	 	Normal Retirement Age.
	 
	 	 	 	 
	o

	 	(b)
	 	Early Retirement Age.

	 	 	 	 	 
	o

	 	i.
	 	Special rule for designated matching contributions. The allocation conditions designated under this #19 do not
apply to the Employer Matching Contributions described in selection(s) ___ of #16 above. [Note: If this i. is
checked, insert in the blank line the appropriate section(s) of #16. The allocation conditions designated under
this #19 will not apply to such designated contributions.]

Part 4C — Employer Nonelective Contributions

	þ	 	Check this selection and complete this Part 4C to allow for Employer Nonelective Contributions. [Note: Do not check
this selection if the only Employer Nonelective Contributions authorized under the Plan are Safe Harbor Nonelective
Contributions. Instead, complete the applicable elections under Part 4E of this Agreement.]
	 
	þ 20.	 	Employer Nonelective Contribution (other than QNECs): The Employer will determine each Plan Year, in its sole
discretion, the amount it will contribute to the Plan as an Employer Nonelective Contribution. Any Employer Nonelective
Contribution made for the Plan Year will be allocated in accordance with the allocation formula selected in #21 below.
[Note: Check this #20 to permit the Employer to make a discretionary Employer Nonelective Contribution (other than a
QNEC). If this #20 is checked, also check #21 and select the appropriate allocation formula.]
	 
	þ 21.	 	Allocation formula for Employer Nonelective Contributions (other than QNECs):

	 	 	 	 	 
	þ

	 	a.
	 	Pro Rata Allocation Method. Any Employer Nonelective
Contribution will be allocated to each Eligible
Participant as a uniform percentage of Included
Compensation.
	 
	 	 	 	 
	o

	 	b.
	 	Permitted Disparity Method. The allocation for each
Eligible Participant is determined under the following
formula:

	 	 	 	 	 	 	 
	o

	 	 	(1	)	 	Two-Step Formula.
	 
	 	 	 	 	 	 
	o

	 	 	(2	)	 	Four-Step Formula.

	 	 	 	 	 
	o

	 	c.
	 	Allocation for designated groups (see Section 2.2(b)(3)
of the BPD). The Employer Nonelective Contribution made
for each allocation group designated below will be
allocated to the Eligible Participants

Ó 2002

9

 

	 	 	 
	within such allocation groups as a uniform
percentage of Included Compensation
(unless elected otherwise under d. below).
The Employer may make a different
discretionary Employer Nonelective
Contribution for each allocation group. In
determining the allocation for a
particular allocation group, only Eligible
Participants in such allocation group are
taken into account.
	 
	 	 
	o (1)  Group A:
	 	 
	 

	 	 
	 
	 	 
	o (2)  Group B:
	 	 
	 

	 	 
	 
	 	 
	o (3)  Group C:
	 	 
	 

	 	 
	 
	 	 
	o (4)  Group D:
	 	 
	 

	 	 
	 
	 	 
	o (5)  Group E:
	 	 
	 

	 	 
	 
	 	 
	[Note: The allocation groups designated above must be clearly defined in a manner
that will not violate the definite predetermined allocation formula requirement of
Treas. Reg. §1.401-1(b)(1)(ii). The Employer must notify the Trustee in writing of
the amount of the contribution to be allocated to each designated group. See Section
2.2(b)(3) of the BPD for administrative procedures for determining the allocation of
the Employer Contribution among the designated allocation groups. If additional
allocation groups are needed, attach a separate Exhibit B to this Agreement listing
the appropriate allocation groups.]

	 	 	 	 	 
	o

	 	d.
	 	Uniform dollar allocation. In determining the allocation
for designated groups under c. above, the Employer
Nonelective Contribution allocated to Eligible Participants
within the following allocation group(s) will be the same
dollar amount of contribution rather than a uniform
percentage of Included Compensation: [Note: This d. may be
checked only if c. above is also checked. Designate on the
blank line the allocation group(s) listed under c. above
for which a uniform dollar allocation will apply.]                                                  
	 
	 	 	 	 
	o

	 	e.
	 	Age-weighted allocation formula. The Employer Contribution
for the Plan Year will be allocated to each Eligible
Participant in accordance with the age-weighted allocation
formula described in Section 2.2(b)(5) of the BPD. Under
the age-weighted allocation formula, the Employer
Contribution is allocated on the basis of each Eligible
Participant’s Normalization Factor. A Participant’s
Normalization Factor is the Participant’s Included
Compensation multiplied by the Actuarial Factor determined
under Exhibit A of this Agreement. In determining a
Participant’s Actuarial Factor, the following assumptions
apply:

	 	 	 
	(1)

	 	Applicable interest rate. [Check (a), (b) or (c).]

	 	 	 	 	 
	o (a)  8.5%

	 	o (b)  8.0%
	 	o  (c) 7.5%

	 	 	 
	(2)

	 	Applicable mortality table. [Check (a) or (b).]

	 	 	 	 	 
	o

	 	(a)
	 	UP-1984 mortality table.
	 
	 	 	 	 
	o

	 	(b)
	 	(Specify mortality table) ___
	 
	 	 	 	 
	[Note: The Actuarial Factors included in Appendix A are based on the UP-1984
mortality table. If a mortality table other than UP-1984 is selected, the
appropriate Actuarial Factors based on the selected mortality table must be
attached as Appendix A.]

	þ 22.	 	Qualified Nonelective Contribution (QNEC). The Employer may make a discretionary QNEC that is allocated under the
following method. [Note: Regardless of any elections under this #22, the Employer may make a QNEC to the Plan to
correct a failed ADP or ACP Test, as authorized under Sections 17.2(d)(2) and 17.3(d)(2) of the BPD. Any QNEC allocated
to correct the ADP or ACP Test which is not specifically authorized under this #22 will be allocated as a uniform
percentage of Included Compensation to all Eligible Participants who are Nonhighly Compensated Employees. QNECs may
only be used in the ADP or ACP Test if the Current Year Testing Method is selected under #31, below. See Section 2.3(e)
of the BPD.]

	 	 	 	 	 
	þ

	 	a.
	 	Pro Rata Allocation method. (See Section 2.3(e)(1) of the BPD.) The QNEC will be
allocated as a uniform percentage of Included Compensation to:

	 	 	 	 	 	 	 
	þ

	 	 	(1	)	 	all Eligible Participants who are Nonhighly Compensated Employees.
	 
	 	 	 	 	 	 
	o

	 	 	(2	)	 	all Eligible Participants.

	 	 	 	 	 
	o

	 	b.
	 	Bottom-up QNEC method. The QNEC will be allocated to Eligible Participants who are
Nonhighly Compensated Employees in reverse order of Included Compensation. (See
Section 2.3(e)(2) of the BPD.)
	 
	 	 	 	 
	þ

	 	c.
	 	Application of allocation conditions. If this c. is checked, QNECs will be allocated
only to Eligible Participants who have satisfied the allocation conditions under #24
below. [If this c. is not checked, QNECs will be allocated without regard to the
allocation conditions under #24 below.]

Ó 2002

10

 

	23.	 	Operating rules for determining amount of Employer Nonelective Contributions.

	 	a.	 	Special rules regarding Included Compensation.

	 	(1)	 	Applicable period for determining Included Compensation. In
determining the amount of Employer Nonelective Contributions to be allocated to
an Eligible Participant under this Part 4C, Included Compensation is determined
separately for each: [If #21.b. above is checked, the Plan Year must be
selected under (a) below.]

	 	 	 
	þ (a) Plan Year.

	 	o (b) Plan Year quarter.
	 
	o (c) calendar month.

	 	o (d) payroll period.
	 
	[Note: If Part 3, #11.b. is checked, the period selected under this (1) (to the
extent such period refers to the Plan Year) will be determined as if the Plan
Year were the period designated under Part 3, #11.b. See Section 2.2(c)(3) of
the BPD.]

			
	        o    (2)	 	Special rule for partial period of participation. If an Employee is an
Eligible Participant for only part of the period designated under (1) above, Included
Compensation is taken into account for the entire period, including the portion of the
period during which the Employee is not an Eligible Participant. [If this selection (2)
is not checked, Included Compensation is taken into account only for the portion of the
period during which the Employee is an Eligible Participant.]

			
	        o b.	 	Special rules for applying the Permitted Disparity Method. [Complete
this b. only if #21.b. above is also checked.]

	 	 	 	 	 	 	 	 	 	 	 
	 	 	o (1)	 	Application of Four-Step Formula for Top-Heavy Plans.
If this (1) is checked, the Four-Step Formula applies instead of the Two-Step
Formula for any Plan Year in which the Plan is a Top Heavy Plan. [This (1) may
only be checked if #21.b.(1) above is also checked.]
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	o (2)	 	Excess Compensation under the Permitted Disparity
Method is the amount of Included Compensation that exceeds: [If this selection
(2) is not checked, Excess Compensation under the Permitted Disparity Method is
the amount of Included Compensation that exceeds the Taxable Wage Base.]
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	o (a)   ____% (may not exceed 100%) of the Taxable Wage Base.
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	o 1.	 	The amount determined under (a) is not rounded.
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	o 2.	 	The amount determined
under (a) is rounded (but not above the Taxable Wage Base) to
the next higher:
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	o a. 
	$	1.
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	o b. 
	$	100.
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	o c. 
	$	1,000.
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	o (b) _____________ (may not exceed the Taxable Wage
Base).
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	[Note: The maximum integration percentage of 5.7% must be reduced to (i)
5.4% if Excess Compensation is based on an amount that is greater than 80%
but less than 100% of the Taxable Wage Base or (ii) 4.3% if Excess
Compensation is based on an amount that is greater than 20% but less than or
equal to 80% of the Taxable Wage Base. See Section 2.2(b)(2) of the BPD.]

	24.	 	Allocation conditions. An Eligible Participant must satisfy the following allocation
conditions for an Employer Nonelective Contribution: [Check a. or b. or any combination of c.
— e. Selection e. may not be checked if b. or d. is checked. Selection f. and/or g. may be
checked in addition to b. — e.]

			
	        o a.	 	None.

			
	        o b.	 	Safe harbor allocation condition. An Employee must be
employed by the Employer on the last day of the Plan Year
OR must have more than ____ (not more than 500) Hours of
Service for the Plan Year.

			
	        þ c.	 	Last day of employment condition. An Employee must be
employed with the Employer on the last day of the Plan
Year.

			
	        o d.	 	Hours of Service condition. An Employee must be credited
with at least _____ Hours of Service (may not exceed
1,000) during the Plan Year.

			
	        o e.	 	Elapsed Time Method. (See Section 2.6(d) of the BPD.)

Ó 2002

11

 

			
	          o (1)	 	Safe harbor allocation condition. An Employee must be
employed by the Employer on the last day of the Plan Year OR must have more
than ____ (not more than 91) consecutive days of employment
with the Employer during the Plan Year.

			
	          o (2)	 	Service condition.

			
	o  f.	 	Application to a specified period. In applying the allocation
condition(s) designated under b. through e. above, the allocation condition(s) will be
based on the period designated under #23.a.(1) above. In applying an Hours of Service
condition under d. above, the following method will be used: [This f. should be checked
only if a period other than the Plan Year is selected under #23.a.(1) above. Selection
(1) or (2) must be selected only if d. above is also checked.]

			
	          o (1)	 	Fractional method (see Section 2.6(e)(2)(i) of the BPD).

			
	          o (2)	 	Period-by-period method (see Section 2.6(e)(2)(ii) of the BPD).

[Practitioner Note: If this f. is not checked, any allocation condition(s) selected
under b. through e. above will apply with respect to the Plan Year, regardless of
the period selected under #23.a.(1) above. See Section 2.6(e) of the BPD for
procedural rules for applying allocation conditions for a period other than the Plan
Year.]

			
	o  g.	 	The above allocation condition(s) will not apply if:

			
	          o (1)	 	the Participant dies during the Plan Year.

			
	          o (2)	 	the Participant is Disabled.

			
	          o (3)	 	the Participant, by the end of the Plan Year, has reached:

			
	                         o (a)	 	Normal Retirement Age.

			
	                         o (b)	 	Early Retirement Age.

Part 4D — Employee After-Tax Contributions

(See Section 3.1 of the BPD)

			
	o	 	Check this selection to allow for Employee After-Tax Contributions. If Employee After-Tax Contributions will not be permitted
under the Plan, do not check this selection and skip the remainder of this Part 4D. [Note: The eligibility conditions for making
Employee After-Tax Contributions are listed in Part 1 of this Agreement under “§401(k) Deferrals.”]

			
	o 25.	 	Maximum. ____% of Included Compensation for:

			
	             o a.	 	the entire Plan Year.

			
	             o b.	 	the portion of the Plan Year during which the Employee is an Eligible Participant.

			
	             o c.	 	each separate payroll period during which the Employee is an Eligible Participant.

[Note: If this #25 is not checked, the only limit on Employee After-Tax Contributions is the
Annual Additions Limitation under Article 7 of the BPD. If Part 3, #11.b. is checked, any
period selected under this #25 will be determined as if the Plan Year were the period
designated under Part 3, #11.b. See Section 2.2(c)(3) of the BPD.]

			
	o 26.	 	Minimum. For any payroll period, no less than:

			
	             o a.	 	____% of Included Compensation.

			
	             o b.	 	$____.

Part 4E — Safe Harbor 401(k) Plan Election

(See Section 17.6 of the BPD)

			
	o	 	Check this selection and complete this Part 4E if the Plan is designed to be a Safe Harbor 401(k) Plan.

			
	o 27.	 	Safe Harbor Matching Contribution: The Employer will make an Employer Matching Contribution with respect to an Eligible
Participant’s Section 401(k) Deferrals and/or Employee After-Tax Contributions (“applicable contributions”) under the following
formula: [Complete selection a. or b. In addition, complete selection c. Selection d. may be checked in addition to a. or b. and
c.]

			
	             o a.	 	Basic formula: 100% of applicable contributions up to the first 3% of
Included Compensation, plus 50% of applicable contributions up to the next
2% of Included Compensation.

Ó 2002

12

 

	 	o  b.	 	Enhanced formula:

	 	o  (1)	 	___% (not less than 100%) of applicable
contributions up to
____% of Included
Compensation (not
less than 4% and not
more than 6%).
	 
	 	o  (2)	 	The sum of: [The contributions under
this (2) must not be
less than the
contributions that
would be calculated
under a. at each
level of applicable
contributions.]

	 	o  (a)	 	___% of applicable
contributions up to the first (b)___% of Included
Compensation, plus
	 
	 	o  (c)	 	___% of applicable
contributions up to the next (d)___% of Included
Compensation.

[Note: The percentage in (c) may not be greater than the percentage in (a).
In addition, the sum of the percentages in (b) and (d) may not exceed 6%.]

	 	     c.	 	Applicable contributions taken into account: (See Section
17.6(a)(1)(i) of the BPD.) The Safe Harbor Matching Contribution formula elected
in a. or b. above (and any limitations on the amount of a Participant’s applicable
contributions considered under such formula(s)) are applied separately for each:

	 	 	 	 	 
	 

	 	o (1) Plan Year.
	 	o (2) Plan Year quarter.
	 
	 

	 	o (3) calendar month.
	 	o (4) payroll period.
	 
	 	 	[Note: If Part 3, #11.b. is checked, any
period selected under this #25 will be
determined as if the Plan Year were the
period designated under Part 3, #11.b. See
Section 2.2(c)(3) of the BPD.]

	 	o  d.	 	Definition of applicable contributions. Check
this d. if the Plan permits Employee
After-Tax Contributions but the Safe Harbor
Matching Contribution formula selected under
a. or b. above does not apply to such
Employee After-Tax Contributions.

	o  28.	 	Safe Harbor Nonelective Contribution: ____% (no less than 3%) of Included Compensation.

	 	o  a.	 	Check this selection if the Employer will
make this Safe Harbor Nonelective
Contribution pursuant to a supplemental
notice as described in Section 17.6(a)(1)(ii)
of the BPD. If this a. is checked, the Safe
Harbor Nonelective Contribution will be
required only for a Plan Year for which the
appropriate supplemental notice is provided.
For any Plan Year in which the supplemental
notice is not provided, the Plan is not a
Safe Harbor 401(k) Plan.
	 
	 	o  b.	 	Check this selection to provide the Employer
with the discretion to increase the above
percentage to a higher percentage.
	 
	 	o  c.	 	Check this selection if the Safe Harbor
Nonelective Contribution will be made under
another plan maintained by the Employer and
identify the plan:
	 
	 	 	 	 

	 
	 	o  d.	 	Check this d. if the Safe Harbor Nonelective
Contribution offsets the allocation that would otherwise be made
to the Participant under Part 4C, #21 above. If the Permitted
Disparity Method is elected under Part 4C, #21.b., this offset
applies only to the second step of the Two-Step Formula or the
fourth step of the Four-Step Formula, as applicable.

	o  29.	 	Special rule for partial period of participation. If an Employee
is an Eligible Participant for only part of a Plan Year,
Included Compensation is taken into account for the entire Plan
Year, including the portion of the Plan Year during which the
Employee is not an Eligible Participant. [If this #29 is not
checked, Included Compensation is taken into account only for
the portion of the Plan Year in which the Employee is an
Eligible Participant.]
	 
	30.	 	Eligible Participant. For purposes of the Safe Harbor Contributions elected above, “Eligible
Participant” means: [Check a., b. or c. Selection d. may be checked in addition to a., b. or
c.]

	 	o  a.	 	All Eligible Participants (as determined for Section 401(k) Deferrals).
	 
	 	o  b.	 	All Nonhighly Compensated Employees who are Eligible Participants (as determined for Section 401(k) Deferrals).
	 
	 	o  c.	 	All Nonhighly Compensated Employees who are Eligible Participants (as determined for Section 401(k) Deferrals)
and all Highly Compensated Employees who are Eligible Participants (as determined for Section 401(k) Deferrals) but who are not Key Employees.
	 
	 	o  d. 	 	
Check this d. if the selection under a., b. or c., as applicable, applies only to Employees who would be
Eligible Participants for any portion of the Plan Year if the eligibility conditions selected for Section 401(k)
Deferrals in Part 1, #5 of this Agreement were one Year of Service and age 21. (See Section 17.6(a)(1) of the
BPD.)

Ó 2002

13

 

Part 4F — Special 401(k) Plan Elections

(See Article 17 of the BPD)

	31.	 	ADP/ACP testing method. In performing the ADP and ACP tests, the Employer will use the
following method: (See Sections 17.2 and 17.3 of the BPD for an explanation of the ADP/ACP
testing methods.)

	 	o  a.	 	Prior Year Testing Method.
	 
	 	þ  b.	 	Current Year Testing Method.

[Practitioner Note: If this Plan is intended to be a Safe-Harbor 401(k) Plan under Part 4E
above, the Current Year Testing Method must be elected under b. See Section 17.6 of the
BPD.]

	o  32.	 	First Plan Year for Section 401(k) Deferrals. (See Section
17.2(b) of the BPD.) Check this selection if this Agreement
covers the first Plan Year that the Plan permits Section 401(k)
Deferrals. The ADP for the Nonhighly Compensated Employee Group
for such first Plan Year is determined under the following
method:

	 	o  a.	 	the Prior Year Testing
Method, assuming a 3%
deferral percentage for the
Nonhighly Compensated
Employee Group.
	 
	 	o  b.	 	the Current Year Testing
Method using the actual
deferral percentages of the
Nonhighly Compensated
Employee Group.

	o  33.	 	First Plan Year for Employer Matching Contributions or Employee
After-Tax Contributions. (See Section 17.3(b) of the BPD.) Check
this selection if this Agreement covers the first Plan Year that
the Plan includes either an Employer Matching Contribution
formula or permits Employee After-Tax Contributions. The ACP for
the Nonhighly Compensated Employee Group for such first Plan
Year is determined under the following method:

	 	o  a.	 	the Prior Year Testing
Method, assuming a 3%
contribution percentage for
the Nonhighly Compensated
Employee Group.
	 
	 	o  b.	 	the Current Year Testing
Method using the actual
contribution percentages of
the Nonhighly Compensated
Employee Group.

Part 5 — Retirement Ages

(See Sections 22.51 and 22.111 of the BPD)

	34.	 	Normal Retirement Age:

	 	þ  a.	 	Age 62 (not to exceed 65).
	 
	 	o  b.	 	The later of (1) age ___ (not to exceed 65) or (2) the ___ (not to exceed 5th) anniversary of the date the
Employee commenced participation in the Plan.
	 
	 	o  c.	 	___ (may not be later than the maximum age permitted under b.)

	35.	 	Early Retirement Age: [Check a. or check b. and/or c.]

	 	o  a.	 	Not applicable.
	 
	 	þ  b.	 	Age 55.
	 
	 	o  c.	 	Completion of ___ Years of Service, determined as follows:

	 	o  (1)	 	Same as for eligibility.
	 
	 	o  (2)	 	Same as for vesting.

Ó 2002

14

 

Part 6 — Vesting Rules

(See Article 4 of the BPD)

	v	 	Complete this Part 6 only if the Employer has elected to make Employer Matching
Contributions under Part 4B or Employer Nonelective Contributions under Part 4C. Section
401(k) Deferrals, Employee After-Tax Contributions, QMACs, QNECs, Safe Harbor Contributions,
and Rollover Contributions are always 100% vested. (See Section 4.2 of the BPD for the
definitions of the various vesting schedules.)

	36.	 	Normal vesting schedule: [Check one of a. — f. for those contributions the Employer elects to
make under Part 4 of this Agreement.]

	 	 	 	 	 	 	 	 	 
	 	 	 	 	(1)	 	(2)	 	 
	 	 	 	 	Employer	 	Employer	 	 
	 	 	 	 	Match	 	Nonelective	 	 
	 

	 	a.
	 	þ
	 	þ
	 	Full and immediate vesting.
	 
	 	 	 	 	 	 	 	 
	 

	 	b.
	 	o
	 	o
	 	7-year graded vesting schedule.
	 
	 	 	 	 	 	 	 	 
	 

	 	c.
	 	o
	 	o
	 	6-year graded vesting schedule.
	 
	 	 	 	 	 	 	 	 
	 

	 	d.
	 	o
	 	o
	 	5-year cliff vesting schedule.
	 
	 	 	 	 	 	 	 	 
	 

	 	e.
	 	o
	 	o
	 	3-year cliff vesting schedule.
	 
	 	 	 	 	 	 	 	 
	 

	 	f.
	 	o
	 	o
	 	Modified vesting schedule:

	 	 	 	(1) ___% after 1 Year of Service
	 
	 	 	 	(2) ___% after 2 Years of Service
	 
	 	 	 	(3) ___% after 3 Years of Service
	 
	 	 	 	(4) ___% after 4 Years of Service
	 
	 	 	 	(5) ___% after 5 Years of Service
	 
	 	 	 	(6) ___% after 6 Years of Service,
and
	 
	 	 	 	(7) 100% after 7 Years of Service.

[Note: The percentages selected under the modified vesting schedule
must not be less than the percentages that would be required under the
7-year graded vesting schedule, unless 100% vesting occurs after no
more than 5 Years of Service.]

	37.	 	Vesting schedule when Plan is top-heavy: [Check one of a. — d. for those contributions the
Employer elects to make under Part 4 of this Agreement.]

	 	 	 	 	 	 	 	 	 
	 	 	 	 	(1)	 	(2)	 	 
	 	 	 	 	Employer	 	Employer	 	 
	 	 	 	 	Match	 	Nonelective	 	 
	 

	 	a.
	 	þ
	 	þ
	 	Full and immediate vesting.
	 
	 	 	 	 	 	 	 	 
	 

	 	b.
	 	o
	 	o
	 	6-year graded vesting schedule.
	 
	 	 	 	 	 	 	 	 
	 

	 	c.
	 	o
	 	o
	 	3-year cliff vesting schedule.
	 
	 	 	 	 	 	 	 	 
	 

	 	d.
	 	o
	 	o
	 	Modified vesting schedule:

	 	(1)	 	____% after 1 Year of Service
	 
	 	(2)	 	____% after 2 Years of Service
	 
	 	(3)	 	____% after 3 Years of Service
	 
	 	(4)	 	____% after 4 Years of Service
	 
	 	(5)	 	____% after 5 Years of Service,
and
	 
	 	(6)	 	____100% after 6 Years of Service.

[Note: The percentages selected under the modified vesting schedule
must not be less than the percentages that would be required under the
6-year graded vesting schedule, unless 100% vesting occurs after no
more than 3 Years of Service.]

Ó 2002

15

 

	o  38.	 	Service excluded under the above vesting schedule(s):

	 	o  a.	 	Service before the original Effective Date of this Plan. (See Section 4.5(b)(1) of the BPD for
rules that require service under a Predecessor Plan to be counted.)
	 
	 	o  b.	 	Years of Service completed before the Employee’s ____ birthday (cannot exceed the 18th birthday).

	o  39.	 	Special 100% vesting. An Employee’s vesting percentage increases to 100% if, while employed with the Employer, the
Employee:

	 	o  a.	 	dies.
	 
	 	o  b.	 	becomes Disabled (as defined in Section 22.47 of the BPD).
	 
	 	o  c.	 	reaches Early Retirement Age (as defined in Part 5, #35 above).

	o  40.	 	Special vesting provisions. Check this #40 and attach an addendum to the Agreement describing any special vesting
provisions that are not otherwise described under the BPD or this Agreement.

Part 7 — Special Service Crediting Rules

(See Article 6 of the BPD)

If no minimum service requirement applies under Part 1, #5 of this Agreement and all contributions
are 100% vested under Part 6, skip this Part 7.

	v	 	Year of Service — Eligibility. 1,000 Hours of Service during an Eligibility Computation Period. Hours of
Service are calculated using the Actual Hours Crediting Method. [To modify, complete #41 below.]
	 
	v	 	Eligibility Computation Period. If one Year of Service is required for eligibility, the Shift-to-Plan-Year
Method is used. If two Years of Service are required for eligibility, the Anniversary Year Method is used.
[To modify, complete #42 below.]
	 
	v	 	Year of Service — Vesting. 1,000 Hours of Service during a Vesting Computation Period. Hours of Service are
calculated using the Actual Hours Crediting Method. [To modify, complete #43 below.]
	 
	v	 	Vesting Computation Period. The Plan Year. [To modify, complete #44 below.]
	 
	v	 	Break in Service Rules. The Rule of Parity Break in Service rule applies for both eligibility and vesting
but the one-year holdout Break in Service rule is NOT used for eligibility or vesting. [To modify, complete
#45 below.]

	o  41.	 	Alternative definition of Year of Service for eligibility.

	 	o  a.	 	A Year of Service is ____ Hours of Service (may not exceed
1,000) during an Eligibility Computation Period.
	 
	 	o  b.	 	Use the Equivalency Method (as defined in Section 6.5(a) of
the BPD) to count Hours of Service. If this b. is checked,
each Employee will be credited with 190 Hours of Service for
each calendar month for which the Employee completes at least
one Hour of Service, unless a different Equivalency Method is
selected under #46 below. The Equivalency Method applies to:

	 	o  (1)	 	All Employees.
	 
	 	o  (2)	 	Employees who are not paid on an hourly basis. For hourly Employees, the Actual Hours Method will be used.

	 	o  c.	 	Use the Elapsed Time Method instead of counting Hours of Service. (See Section 6.5(b) of the BPD.)

	o  42.	 	Alternative method for determining Eligibility Computation Periods. (See Section 1.4(c) of the BPD.)

	 	o  a.	 	One Year of Service eligibility. Eligibility Computation Periods are determined using the Anniversary Year Method
instead of the Shift-to-Plan-Year Method.
	 
	 	o  b.	 	Two Years of Service eligibility. Eligibility Computation Periods are determined using the Shift-to-Plan-Year Method
instead of the Anniversary Year Method.

Ó 2002

16

 

	o  43.	 	Alternative definition of Year of Service for vesting.

	 	o  a.	 	A Year of Service is ____ Hours of Service (may not exceed 1,000) during a Vesting Computation Period.
	 
	 	o  b.	 	Use the Equivalency Method (as defined in Section 6.5(a) of the BPD) to count Hours of Service. If this b. is
checked, each Employee will be credited with 190 Hours of Service for each calendar month for which the Employee
completes at least one Hour of Service, unless a different Equivalency Method is selected under #46 below. The
Equivalency Method applies to:

	 	o  (1)	 	All Employees.
	 
	 	o  (2)	 	Employees who are not paid on an hourly basis. For hourly Employees, the Actual Hours Method will be used.

	 	o  c.	 	Use the Elapsed Time Method instead of counting Hours of Service. (See Section 6.5(b) of the BPD.)

	o  44.	 	Alternative method for determining Vesting Computation Periods. Instead of Plan Years, use:

	 	o  a.	 	Anniversary Years. (See Section 4.4 of the BPD.)
	 
	 	o  b.	 	(Describe Vesting Computation Period):
	 	 	 	 

	 
	 	 	 	[Practitioner Note: Any Vesting Computation Period described in b. must be a 12-consecutive month period and must apply uniformly to all
Participants.]

	o  45.	 	Break in Service rules.

	 	o  a.	 	The Rule of Parity Break in Service rule does not apply for purposes of determining eligibility or vesting under the Plan. [If this selection a. is
not checked, the Rule of Parity Break in Service Rule applies for purposes of eligibility and vesting. (See Sections 1.6 and 4.6 of the BPD.)]
	 
	 	o  b.	 	One-year holdout Break in Service rule.

	 	o  (1)	 	Applies to determine eligibility for: [Check one or both.]

	 	o  (a)	 	Employer Contributions (other than Section 401(k) Deferrals).
	 
	 	o  (b)	 	Section 401(k) Deferrals. (See Section 1.6(c) of the BPD.)

	 	o  (2)	 	Applies to determine vesting. (See Section 4.6(a) of the BPD.)

	o  46.	 	Special rules for applying Equivalency Method. [This #46 may only be checked if
#41.b. and/or #43.b. is checked above.]

	 	o  a.	 	Alternative method. Instead of applying the Equivalency Method on the
basis of months worked, the following method will apply. (See Section 6.5(a) of the
BPD.)

	 	o  (1)	 	Daily method. Each Employee will be credited with 10
Hours of Service for each day worked.
	 
	 	o  (2)	 	Weekly method. Each Employee will be credited with 45
Hours of Service for each week worked.
	 
	 	o  (3)	 	Semi-monthly method. Each Employee will be credited
with 95 Hours of Service for each semi-monthly payroll period worked.

	 	o  b.	 	Application of special rules. The alternative method elected in a.
applies for purposes of: [Check (1) and/or (2).]

	 	o  (1)	 	Eligibility. [Check this (1) only if #41.b. is checked above.]
	 
	 	o  (2)	 	Vesting. [Check this (2) only if #43.b. is checked above.]

Ó 2002

17

 

Part 8 — Allocation of Forfeitures

(See Article 5 of the BPD)

	o 	 	Check this selection if ALL contributions under the Plan are 100% vested and skip this
Part 8. (See Section 5.5 of the BPD for the default forfeiture rules if no forfeiture
allocation method is selected under this Part 8.)
	 
	47.	 	Timing of forfeiture allocations:

	 	 	 	 	 	 	 	 	 
	 	 	 	 	(1)	 	(2)	 	 
	 	 	 	 	Employer	 	Employer	 	 
	 	 	 	 	Match	 	Nonelective	 	 
	 

	 	a.
	 	þ
	 	þ
	 	In the same Plan Year in which the forfeitures occur.
	 
	 	 	 	 	 	 	 	 
	 

	 	b.
	 	o
	 	o
	 	In the Plan Year following the Plan Year in which the forfeitures occur.

	48.	 	Method of allocating forfeitures: (See the operating rules in Section 5.5 of the BPD.)

	 	 	 	 	 	 	 	 	 
	 	 	 	 	(1)	 	(2)	 	 
	 	 	 	 	Employer	 	Employer	 	 
	 	 	 	 	Match	 	Nonelective	 	 
	 

	 	a.
	 	o
	 	o
	 	Reallocate as additional Employer Nonelective Contributions using the
allocation method specified in Part 4C, #21 of this Agreement. If no
allocation method is specified, use the Pro Rata Allocation Method under
Part 4C, #21.a. of this Agreement.
	 
	 	 	 	 	 	 	 	 
	 

	 	b.
	 	o
	 	o
	 	Reallocate as additional Employer Matching Contributions using the
discretionary allocation method in Part 4B, #16.b. of this Agreement.
	 
	 	 	 	 	 	 	 	 
	 

	 	c.
	 	þ
	 	þ
	 	Reduce the: [Check one or both.]

	 	þ  (a)	 	Employer Matching Contributions
	 
	 	þ  (b)	 	Employer Nonelective Contributions
	 
	 	the Employer would otherwise make for the Plan Year in which the
forfeitures are allocated. [Note: If both (a) and (b) are checked, the
Employer may adjust its contribution deposits in any manner, provided
the total Employer Matching Contributions and Employer Nonelective
Contributions (as applicable) properly take into account the
forfeitures used to reduce such contributions for that Plan Year.]

	o  49.	 	Payment of Plan expenses. Forfeitures are first used to pay Plan
expenses for the Plan Year in which the forfeitures are to be
allocated. (See Section 5.5(c) of the BPD.) Any remaining
forfeitures are allocated as provided in #48 above.
	 
	o  50.	 	Modification of cash-out rules. The Cash-Out Distribution rules
are modified in accordance with Sections 5.3(a)(1)(i)(C) and
5.3(a)(1)(ii)(C) of the BPD to allow for an immediate
forfeiture, regardless of any additional allocations during the
Plan Year.

Part 9 — Distributions After Termination of Employment

(See Section 8.3 of the BPD)

	v	 	The elections in this Part 9 are subject to the operating rules in Articles 8 and 9 of the
BPD.

	51.	 	Vested account balances in excess of $5,000. Distribution is first available as soon as
administratively feasible following:

	 	þ  a.	 	the Participant’s employment termination date.
	 
	 	o  b.	 	the end of the Plan Year that contains the Participant’s employment termination date.
	 
	 	o  c.	 	the first Valuation Date following the Participant’s termination of employment.
	 
	 	o  d.	 	the Participant’s Normal Retirement Age (or Early Retirement Age, if
applicable) or, if later, the Participant’s employment termination date.
	 
	 	o  e.	 	(Describe distribution event)
	 	 	 	 

	 
	 	 	 	[Practitioner Note: Any distribution event described in e. will apply uniformly to
all Participants under the Plan.]

Ó 2002

18

 

	52.	 	Vested account balances of $5,000 or less. Distribution will be made in a lump sum as soon as
administratively feasible following:

	 	o  a.	 	the Participant’s employment termination date.
	 
	 	o  b.	 	the end of the Plan Year that contains the Participant’s employment termination date.
	 
	 	o  c.	 	the first Valuation Date following the Participant’s termination of employment.
	 
	 	þ  d.	 	(Describe distribution event): Effective March 1, 2005, 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 Plan Administrator shall pay the distribution in a
direct rollover to an individual retirement plan designated by the Plan Administrator.
	 
	 	 	 	[Practitioner Note: Any distribution event described in d. will apply uniformly to
all Participants under the Plan.]

	þ  53.	 	Disabled Participant. A Disabled Participant (as defined in Section 22.53 of the BPD) may request a
distribution (if earlier than otherwise permitted under #51 or #52 (as applicable)) as soon as
administratively feasible following:

	 	þ  a.	 	the date the Participant becomes Disabled.
	 
	 	o  b.	 	the end of the Plan Year in which the Participant becomes Disabled.
	 
	 	o  c.	 	(Describe distribution event):
	 	 	 	 

	 
	 	 	 	[Practitioner Note: Any distribution event described in c. will apply uniformly to
all Participants under the Plan.]

	o  54.	 	Hardship withdrawals following termination of employment. A
terminated Participant may request a Hardship withdrawal (as
defined in Section 8.6 of the BPD) before the date selected in
#51 or #52 above, as applicable.
	 
	o  55.	 	Special operating rules.

	 	o  a.	 	Modification of Participant consent requirement. A Participant must
consent to a distribution from the Plan, even if the Participant’s vested Account
Balance does not exceed $5,000. See Section 8.3(b) of the BPD. [Note: If this a. is not
checked, the involuntary distribution rules under Section 8.3(b) of the BPD apply.]
	 
	 	o  b.	 	Distribution upon attainment of Normal Retirement Age (or age 62, if
later). A distribution from the Plan will be made without a Participant’s consent if
such Participant has terminated employment and has attained Normal Retirement Age (or
age 62, if later). See Section 8.7 of the BPD.

Ó 2002

19

 

Part 10 — In-Service Distributions

(See Section 8.5 of the BPD)

	v	 	The elections in this Part 10 are subject to the operating rules in Articles 8 and 9 of the
BPD.

	56.	 	Permitted in-service distribution events: [Elections under the §401(k) Deferrals column also
apply to any QNECs, QMACs, and Safe Harbor Contributions.]

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	(1)	 	(2)	 	(3)	 	 
	 	 	 	 	§401(k)	 	Employer	 	Employer	 	 
	 	 	 	 	Deferrals	 	Match	 	Nonelective	 	 
	 

	 	a.
	 	o
	 	o
	 	o
	 	In-service distributions are not available.
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	b.
	 	þ
	 	þ
	 	þ
	 	After age 59 1/2 . [If earlier than age 59 1/2, age is deemed to be age
59 1/2 for Section 401(k) Deferrals if the selection is checked under that
column.]
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	c.
	 	þ
	 	o
	 	o
	 	A safe harbor Hardship described in Section 8.6(a) of the BPD.
[Note: Not applicable to QNECs, QMACs and Safe Harbor Contributions.]
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	d.
	 	N/A
	 	o
	 	o
	 	A Hardship described in Section 8.6 (b) of the BPD.
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	e.
	 	N/A
	 	o
	 	o
	 	After the Participant has participated in the Plan for at least ____ years (cannot
be less than 5 years).
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	f.
	 	N/A
	 	o
	 	o
	 	At any time with respect to the portion of the vested Account Balance derived from
contributions accumulated in the Plan for at least 2 years.
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	g.
	 	o
	 	o
	 	o
	 	Upon a Participant becoming Disabled (as defined in Section 22.47).
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	h.
	 	o
	 	o
	 	o
	 	Attainment of Normal Retirement Age. [If earlier than age 59 1/2, age is deemed to be 59
1/2 for Section 401(k) Deferrals if the selection is checked under that column.]
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	i.
	 	N/A
	 	o
	 	o
	 	Attainment of Early Retirement Age.

	57.	 	Limitations that apply to in-service distributions:

	 	o  a.	 	Available only if the Account which is subject to withdrawal is 100% vested. (See Section 4.8 of the BPD for
special vesting rules if not checked.)

	 
	 	o  b.	 	No more than ____ in-service distribution(s) in a Plan Year.
	 
	 	o  c.	 	The minimum amount of any in-service distribution will be $____ (may not exceed $1,000).
	 
	 	o  d.	 	In applying the Hardship provision under Section 8.6(b) of the BPD (if selected under #56.d. above), the
following additional Hardship events apply: ____ [Note: Any additional Hardship events must be clearly defined
in a manner that precludes Employer discretion.]

Ó 2002

20

 

Part 11 — Distribution Options

(See Section 8.1 of the BPD)

	 	 	 	 	 	 	 	 	 	 	 
	58.	 	Optional forms of payment available upon termination of employment:
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	þ	 	a.	 	Lump sum distribution of entire vested Account Balance.
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	o	 	b.	 	Single sum distribution of a portion of vested Account Balance.
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	þ	 	c.	 	Installments for a specified term.
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	o	 	d.	 	Installments for required minimum distributions only.
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	þ	 	e.	 	Annuity payments (see Section 8.1 of the BPD). The following forms of annuity shall be available:
	 

	 	 	 	 	 	(1	)	 	 	single life annuity
	 

	 	 	 	 	 	(2	)	 	 	single life annuity with certain periods of 5, 10, or 15 years
	 

	 	 	 	 	 	(3	)	 	 	single life annuity with installment refund
	 

	 	 	 	 	 	(4	)	 	 	survivorship life annuities with installment refund and
survivor percentages of 50, 66 2/3, 75, or 100
	 

	 	 	 	 	 	(5	)	 	 	fixed period annuities for any period of whole months which is
not less than 60 and does not exceed the life expectancy of the participant and
the named beneficiary
	 	 	[Practitioner Note: A Participant may receive a distribution in any combination of the forms
of payment selected in a. through e.]

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	59.	 	Application of the Qualified Joint and Survivor Annuity (QJSA) and Qualified Preretirement
Survivor Annuity (QPSA) provisions: (See Article 9 of the BPD.)
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	o	 	a.	 	Do not apply. [Note: The QJSA and QPSA provisions
automatically apply to any assets of the Plan that
were received as a transfer from another plan that
was subject to the QJSA and QPSA rules. If this a.
is checked, the QJSA and QPSA rules generally will
apply only with respect to transferred assets or if
distribution is made in the form of life annuity.
See Section 9.1(b) of the BPD.]
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	þ	 	b.	 	Apply, with the following modifications: [Check
this b. to have all assets under the Plan be
subject to the QJSA and QPSA requirements. See
Section 9.1(a) of the BPD.]
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	þ	 	 	(1	)	 	No modifications.
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	o	 	 	(2	)	 	Modified QJSA benefit. Instead of a 50% survivor
benefit, the normal form of the QJSA provides the following survivor benefit to
the spouse:
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	o
	 	(a)
	 	100%. 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	o
	 	(b)
	 	75%. 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	o
	 	(c)
	 	66 2/3%. 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	o	 	 	(3	)	 	Modified QPSA benefit. Instead of a 50% QPSA benefit,
the QPSA benefit is 100% of the Participant’s vested Account Balance.
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	o	 	c.	 	One-year marriage rule. The one-year marriage rule under Sections
8.4(c)(4) and 9.3 of the BPD applies. Under this rule, a Participant’s spouse will not
be treated as a surviving spouse unless the Participant and spouse were married for at
least one year at the time of the Participant’s death.

Part 12 — Administrative Elections

	 	 	 	 	 	 	 	 	 	 	 	 	 
	v	 	Use this Part 12 to identify administrative elections authorized by the BPD. These
elections may be changed without reexecuting this Agreement by substituting a replacement of
this page with new elections. To the extent this Part 12 is not completed, the default
provisions in the BPD apply.
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	60.	 	Are Participant loans permitted? (See Article 14 of the BPD.)
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	o
	 	a.
	 	No	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	þ
	 	b.
	 	Yes	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	o
	 	 	(1	)	 	Use the default loan procedures under Article 14 of the BPD.
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	þ
	 	 	(2	)	 	Use a separate written loan policy to modify the default
loan procedures under Article 14 of the BPD.

Ó 2002

21

 

	 	 	 	 	 	 	 	 	 	 	 
	61.	 	Are Participants permitted to direct investments? (See Section 13.5(c) of the BPD.)
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	o
	 	a.
	 	No
	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	þ
	 	b.
	 	Yes
	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	þ
	 	 	(1	)	 	Specify Accounts: All Accounts are Participant directed
except for specific investment conditions applied to the Employer Matching
Contributions as set forth in Part 13, #76.
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	þ
	 	 	(2	)	 	Check this selection if the Plan is intended to comply with
ERISA §404(c). (See Section 13.5(c)(2) of the BPD.)

	 	 	 	 	 	 	 
	62.	 	Is any portion of the Plan daily valued? (See Section 13.2(b) of the BPD.)
	 
	 	 	 	 	 	 
	 

	 	o
	 	a.
	 	No
	 
	 	 	 	 	 	 
	 

	 	þ
	 	b.
	 	Yes. Specify Accounts and/or investment options: All Accounts 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	63.	 	Is any portion of the Plan valued periodically (other than daily)? (See Section 13.2(a) of
the BPD.)
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	þ
	 	a.
	 	No
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	o
	 	b.
	 	Yes
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	o	 	 	(1	)	 	Specify Accounts and/or investment options:                     
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	o	 	 	(2	)	 	Specify valuation date(s):                                         
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	o	 	 	(3	)	 	The following special allocation rules apply: [If this
(3) is not checked, the Balance Forward Method under Section 13.4(a) of the BPD
applies.]
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	o
	 	(a)
	 	Weighted average method. (See Section
13.4(a)(2)(i) of the BPD.)
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	o
	 	(b)
	 	Adjusted percentage method, taking into
account ___% of contributions made during the valuation
period. (See Section 13.4(a)(2)(ii) of the BPD.)
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	o
	 	(c)
	 	(Describe allocation rules)           
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	[Practitioner Note: Any allocation rules described in (c) must be in
accordance with a definite predetermined formula that is not based on
compensation, that satisfies the nondiscrimination requirements of
§1.401(a)(4) of the regulations, and that is applied uniformly to all
Participants.]

	 	 	 	 	 	 	 	 	 	 	 	 	 
	64.	 	Does the Plan accept Rollover Contributions? (See Section 3.2 of the BPD.)
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	o
	 	a.
	 	No
	 	þ
	 	b.
	 	Yes
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	65.	 	Are life insurance investments permitted? (See Article 15 of the BPD.)
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	þ
	 	a.
	 	No
	 	o
	 	b.
	 	Yes
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	66.	 	Do the default QDRO procedures under Section 11.5 of the BPD apply?
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	o
	 	a.
	 	No
	 	þ
	 	b.
	 	Yes
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	67.	 	Do the default claims procedures under Section 11.6 of the BPD apply?
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	o
	 	a.
	 	No
	 	þ
	 	b.
	 	Yes

Part 13 — Miscellaneous Elections

	 	 	 	 	 	 	 
	v	 	The following elections override certain default provisions under the BPD and provide special rules for administering the Plan. Complete the following
elections to the extent they apply to the Plan.
	 
	 	 	 	 	 	 
	þ 68.	 	Determination of Highly Compensated Employees.
	 
	 	 	 	 	 	 
	 

	 	þ
	 	a.
	 	The Top-Paid Group Test applies. [If this selection a. is not checked, the Top-Paid Group
Test will not apply. See Section 22.89(b)(4) of the BPD.]
	 
	 	 	 	 	 	 
	 

	 	þ
	 	b.
	 	The Calendar Year Election applies. [This selection b. may only be chosen if the Plan
Year is not the calendar year. See Section 22.89(b)(5) of the BPD.]

Ó 2002

22

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	o 69.	 	Special elections for applying the Annual Additions Limitation under Code §415.
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	o	 	a.	 	The Limitation Year is the 12-month period ending ___. [If this selection a. is not
checked, the Limitation Year is the same as the Plan Year.]
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	o	 	b.	 	Total Compensation includes imputed compensation for a terminated Participant who is
permanently and totally Disabled. (See Section 7.4(g)(3) of the BPD.)
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	o 70.	 	Election to use Old-Law Required Beginning Date. The Old-Law Required Beginning Date (as defined in Section 10.3(a)(2) of the BPD) applies instead of the
Required Beginning Date rules under Section 10.3(a)(1) of the BPD.
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	þ 71.	 	Service credited with Predecessor Employers: (See Section 6.7 of the BPD.)
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	þ	 	a.	 	(Identify Predecessor Employers) Employees shall become participants on the Entry Date
coincident with or next following the completion of the minimum age and service
requirements selected in this Adoption Agreement; provided however, that by resolution of
the Board of Directors of CheckFree Services Corporation or any Affiliated Employer,
employees of companies that may be acquired by CheckFree Services Corporation or an
Affiliated Employer may, in the discretion of CheckFree Services Corporation or the
Affiliated Employer, have their service with the acquired company treated as service with
CheckFree Services Corporation or an Affiliated Employer for purposes of eligibility to
participate in the Plan and receive Employer Nonelective Contributions under the Plan.
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	o	 	b.	 	Service is credited with these Predecessor Employers for the following purposes:
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	o
	 	 	(1	)	 	The eligibility service requirements elected in Part 1 of this Agreement.	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	o
	 	 	(2	)	 	The vesting schedule(s) elected in Part 6 of this Agreement.	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	o
	 	 	(3	)	 	The allocation requirements elected in Part 4 of this Agreement.	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	o	 	c.	 	In applying this #71, service before ___ will not be recognized.
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	[Note: If the Employer is maintaining the Plan of a Predecessor Employer, service
with such Predecessor Employer must be counted for all purposes under the Plan. This
#71 may be completed with respect to such Predecessor Employer indicating all
service under selections (1), (2) and (3) will be credited. The failure to complete
this #71 where the Employer is maintaining the Plan of a Predecessor Employer will
not override the requirement that such predecessor service be credited for all
purposes under the Plan. (See Section 6.7 of the BPD.) If the Employer is not
maintaining the Plan of a Predecessor Employer, service with such Predecessor
Employer will be credited under this Plan only if specifically elected under this
#71. If the above crediting rules are to apply differently to service with different
Predecessor Employers, attach separately completed elections for this item, using
the same format as above but listing only those Predecessor Employers to which the
separate attachment relates.]
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	o 72.	 	Special rules where Employer maintains more than one plan.
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	o	 	a.	 	Top-heavy minimum contribution — Employer maintains this Plan and one or more Defined Contribution Plans. If
this Plan is a Top-Heavy Plan, the Employer will provide any required top-heavy minimum contribution under:
(See Section 16.2(a)(5)(i) of the BPD.)
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	o
	 	 	(1	)	 	This Plan.	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	o
	 	 	(2	)	 	The following Defined Contribution Plan maintained by the Employer:                                    	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	o	 	b.	 	Top-heavy minimum benefit — Employer maintains this Plan and one or more
Defined Benefit Plans. If this Plan is a Top-Heavy Plan, the Employer will provide any
required top-heavy minimum contribution or benefit under: (See Section 16.2(a)(5)(ii)
of the BPD.)
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	o
	 	 	(1	)	 	This Plan, but the minimum required contribution is
increased from 3% to 5% of Total Compensation for the Plan Year.	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	o
	 	 	(2	)	 	The following Defined Benefit Plan maintained by the Employer:                                         	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	o	 	c.	 	Limitation on Annual Additions. This c. should be checked only if the
Employer maintains another Defined Contribution Plan in which any Participant is a
participant, and the Employer will not apply the rules set forth under Section 7.2 of
the BPD. [Note: If this c. is checked, attach an addendum to this Agreement describing
how the Employer will limit Annual Additions.]
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	o	 	d.	 	Allocation offset. An Eligible Participant’s allocation under this Plan
is reduced by allocations under ___ [insert name of plan(s)]. (See Section
2.1(d) of the BPD.) [Note: If this d. is checked, attach an addendum to this Agreement
describing how such offset will be applied.]

Ó 2002

23

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	þ 73.	 	Special definition of Disabled. In applying the allocation conditions under Parts 4B and 4C, the special vesting provisions under Part 6, and the distribution provisions under Parts 9 and 10 of
this Agreement, the definition of Disabled is the definition described in the addendum attached to this Agreement rather than the definition described under Section 22.47 of the BPD. [Any
definition described in an addendum to this Agreement must satisfy the requirements of §1.401(a)(4) of the regulations and must be applied uniformly to all Participants.]
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	þ 74.	 	Fail-Safe Coverage Provision. [This selection #74 must be checked to apply the Fail-Safe Coverage Provision under Section 2.6 of the BPD.]
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	þ	 	a.	 	The Fail-Safe Coverage Provision described in Section 2.6 of the BPD applies without modification.
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	o	 	b.	 	The Fail-Safe Coverage Provisions described in Section 2.6 of the BPD applies with the following modifications:
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	o
	 	 	(1	)	 	The special rule for Top-Heavy Plans under Section 2.6(a) of the BPD does not apply.
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	o
	 	 	(2	)	 	The Fail-Safe Coverage Provision is based on Included
Compensation as described under Section 2.6(d) of the BPD.
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	o 75.	 	Election not to participate (see Section 1.10 of the BPD). An
Employee may make a one-time irrevocable election not to
participate under the Plan upon inception of the Plan or at any
time prior to the time the Employee first becomes eligible to
participate under any plan maintained by the Employer. [Note:
Use of this provision could result in a violation of the minimum
coverage rules under Code §410(b).]
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	þ 76.	 	Protected Benefits. If there are any Protected Benefits provided
under this Plan that are not specifically provided for under
this Agreement, check this #76 and attach an addendum to this
Agreement describing the Protected Benefits.

Ó 2002

24

 

Signature Page

By signing this page, the Employer agrees to adopt (or amend) the Plan which consists of the
BPD and the provisions elected in this Agreement. The Employer agrees that the Volume Submitter
Sponsor has no responsibility or liability regarding the suitability of the Plan for the Employer’s
needs or the options elected under this Agreement. It is recommended that the Employer consult with
legal counsel before executing this Agreement.

	 	 	 	 	 	 	 
	77.	 	Name and title of authorized representative(s):	 	Signature(s):	 	Date:
	 
	 	 	 	 	 	 
	 

	 	Stephen E. Olsen, COO
	 	/s/ Stephen E. Olsen
	 	June 15, 2007
	 
	 	 	 	 	 	 
	 

	 	David E. Mangum, EVP and CFO
	 	/s/ David E. Mangum
	 	June 15, 2007

	78.	 	Effective Date of this Agreement:

	 	 	 	 	 	 	 
	 

	 	o
	 	a.
	 	New Plan. Check this selection if this is a new Plan. Effective Date of the Plan is:                     
	 
	 

	 	þ
	 	b.
	 	Restated Plan. Check this selection if this is a restatement of an existing plan.
Effective Date of the restatement is: June 16, 2007.

	 	(1)	 	Designate the plan(s) being amended by this restatement:
CheckFree Services Corporation 401(k) Plan

	 	(2)	 	Designate the original Effective Date of this Plan (optional):
April 1, 1984

	 	 	 	 	 	 	 
	 

	 	o
	 	c.
	 	Amendment by page substitution. Check this selection if this is an
amendment by substitution of certain pages of this Adoption Agreement. [If this c. is
checked, complete the remainder of this Signature Page in the same manner as the
Signature Page being replaced.]

	 	(1)	 	Identify the page(s) being replaced:
	 	 	 	 

	 	(2)	 	Effective Date(s) of such changes:
	 	 	 	 

	 	 	 	 	 	 	 
	 

	 	o
	 	d.
	 	Substitution of sponsor. Check this selection if a successor to the
original plan sponsor is continuing this Plan as a successor sponsor, and substitute
page 1 to identify the successor as the Employer.

	 	(1)	 	Effective Date of the amendment is:
	 	 	 	 

	 	 	 
	o 79.

	 	Check this #79 if any special Effective Dates apply under Appendix A of this
Agreement and complete the relevant sections of Appendix A.

	80.	 	Important information about this Volume Submitter Plan. A failure to properly complete the
elections in this Agreement or to operate the Plan in accordance with applicable law may
result in disqualification of the Plan. The Employer may rely on the Favorable IRS Letter
issued by the Internal Revenue Service to the Volume Submitter Sponsor as evidence that the
Plan is qualified under §401 of the Code, to the extent provided in Announcement 2001-77. The
Employer may not rely on the Favorable IRS Letter in certain circumstances or with respect to
certain qualification requirements, which are specified in the Favorable IRS Letter issued
with respect to the Plan and in Announcement 2001-77. In order to obtain reliance in such
circumstances or with respect to such qualification requirements, the Employer must apply to
the office of Employee Plans Determinations of the Internal Revenue Service for a
determination letter. See Section 22.80 of the BPD.

Ó 2002

25

 

Addendum to CheckFree Services Corporation 401(k) Plan

#73 Special Definition of Disabled:

     Disability means the Participant, because of a physical or mental disability, will be unable
to perform the duties of his/her customary position of employment (or is unable to engage in any
substantial gainful activity) for an indefinite period which the Plan Administrator considers will
be of long continued duration. A Participant also is disabled if he/she incurs the permanent loss
or loss of use of a member or function of the body, or is permanently disfigured, and incurs a
Separation from Service.

#76 Protected Benefits:

     Employer Securities:

     The Committee shall be authorized to direct the Trustee to establish an Employer stock fund
for the purpose of receiving and holding any shares of Employer stock contributed to the Plan as
Employer Matching Contributions and/or Employer Nonelective Contributions. To the extent amounts
allocated to a Participant’s separate account are invested in Employer stock, the distribution of
such amounts shall be made in cash or shares of Employer stock, as elected by the Participant or
Beneficiary. Any Participant who receives a distribution of Employer stock under the Plan and
desires to dispose of such Employer stock shall not be required to first offer to sell such
Employer stock to the Employer. Each Participant or his Beneficiary shall not be entitled to
direct the Trustee as to the manner in which shares of Employer stock allocated to the
Participant’s separate accounts shall be voted with respect to any corporate matter that involves
voting the Employer stock allocated to the Participant’s separate accounts.

     Effective January 1, 2007, Employer Matching Contributions will be made only in cash.

     Effective January 1, 2007, a Participant is permitted to direct the investment or reinvestment
of any portion of his Account held in the Employer Stock Fund to another investment option under
the Plan at any time that is administratively reasonable.

Ó 2002

26

 

Trustee Declaration

By signing this Trustee Declaration, the Trustee agrees to the duties, responsibilities and
liabilities imposed on the Trustee by the BPD and this Agreement.

	 	 	 	 	 	 	 
	81.	 	Name(s) of Trustee(s):	 	Signature(s) of Trustee(s):	 	Date:
	 
	 	 	 	 	 	 
	 

	 	SunTrust Bank
	 	/s/ Jeffrey S. Rhineheart
	 	June 15, 2007
	 
	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 

	82.	 	Effective date of this Trustee Declaration: June 16, 2007

	83.	 	The Trustee’s investment powers are:

	 	 	 	 	 
	o

	 	a.
	 	Discretionary Trustee. The Trustee has discretion to invest
Plan assets. This discretion is limited to the extent
Participants are permitted to give investment direction, or
to the extent the Trustee is subject to direction from the
Plan Administrator, the Employer, an Investment Manager or
other Named Fiduciary.
	 
	 	 	 	 
	þ

	 	b.
	 	Directed Trustee only. The Trustee may only invest Plan
assets as directed by Participants or by the Plan
Administrator, the Employer, an Investment Manager or other
Named Fiduciary.
	 
	 	 	 	 
	o

	 	c.
	 	Separate trust agreement. The Trustee’s investment powers
are determined under a separate trust document which
replaces (or is adopted in conjunction with) the trust
provisions under the BPD. [Note: The separate trust
document is incorporated as part of this Plan and must be
attached hereto. The responsibilities, rights and powers of
the Trustee are those specified in the separate trust
agreement. If this c. is checked, the Trustee need not sign
or date this Trustee Declaration under #81 above.]

Ó 2002

27

 

Co-Sponsor Adoption Page #1

	þ	 	Check this selection and complete the remainder of this page if an Employer (other than the
Employer that signs the Signature Page above) will participate under this Plan as a
Co-Sponsor. [Note: See Article 21 of the BPD for rules relating to the adoption of the Plan by
a Co-Sponsor. If there is more than one Co-Sponsor, each one should execute a separate
Co-Sponsor Adoption Page. Any reference to the “Employer” in this Agreement is also a
reference to the Co-Sponsor, unless otherwise noted.]
	 
	84.	 	Name of Co-Sponsor: CheckFreePay Corporation
	 
	85.	 	Employer Identification Number (EIN) of the Co-Sponsor: 06-1291316

By signing this page, the Co-Sponsor agrees to adopt (or to continue its participation in) the Plan
identified on page 1 of this Agreement. The Plan consists of the BPD and the provisions elected in
this Agreement.

	 	 	 	 	 	 	 
	86.	 	Name and title of authorized representative(s):	 	Signature(s):	 	Date:
	 
	 	 	 	 	 	 
	 

	 	Mark A. Johnson, Chairman of the Board
	 	/s/ Mark A. Johnson
	 	June 15, 2007
	 
	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 

	87.	 	Effective date of this Co-Sponsor Adoption Page: June 16, 2007
	 
	 	 	 

	 
	 	 	 

	 	o	 	a.   Check here if this is the initial adoption of a new Plan by the Co-Sponsor.
	 
	 	o	 	b.   Check here if this is an amendment or restatement of an existing plan
maintained by the Co-Sponsor, which is merging into the Plan being adopted.

	 	(1)	 	Designate the plan(s) being amended by this restatement:
	 	 	 	 

	 
	 	(2)	 	Designate the original Effective Date of the Co-Sponsor’s Plan
(optional):
	 	 	 	 

	 	 	 
	o 88.

	 	Allocation of contributions. If this #88 is checked,
contributions made by the Employer signing this Co-Sponsor
Adoption Page (and any forfeitures relating to such
contributions) will be allocated only to Participants actually
employed by the Employer making the contribution and Employees
of such Employer will not share in an allocation of
contributions (or forfeitures relating to such contributions)
made by any other Employer. [Note: The selection of this #88 may
require additional testing of the Plan. See Section 21.3 of the
BPD.]
	 
	 	 
	o 89.

	 	Special rules.

	 	 	 	 	 	 	 
	 

	 	o
	 	a.
	 	Modification of Adoption Agreement elections. Check
this a. if the Co-Sponsor
will apply different Plan
provisions than those
elected under the
Agreement.

	 	 	 	 	 	 	 
	 

	 	 	(1	)	 	Page(s)       of the Agreement are being modified for
this Co-Sponsor. [Note: Attach the modified pages as an addendum to this
Co-Sponsor Adoption Page.]
	 

	 	 	(2	)	 	The modified provisions are effective      . [Note: An
Appendix A may be attached as an addendum to this Co-Sponsor Adoption Page to
describe any special Effective Dates that apply to the Co-Sponsor.]

Ó 2002

28

 

Co-Sponsor Adoption Page #2

	þ	 	Check this selection and complete the remainder of this page if an Employer (other than the
Employer that signs the Signature Page above) will participate under this Plan as a
Co-Sponsor. [Note: See Article 21 of the BPD for rules relating to the adoption of the Plan by
a Co-Sponsor. If there is more than one Co-Sponsor, each one should execute a separate
Co-Sponsor Adoption Page. Any reference to the “Employer” in this Agreement is also a
reference to the Co-Sponsor, unless otherwise noted.]
	 
	90.	 	Name of Co-Sponsor: Bastogne, Inc.
	 
	91.	 	Employer Identification Number (EIN) of the Co-Sponsor: 42-1535458

By signing this page, the Co-Sponsor agrees to adopt (or to continue its participation in) the Plan
identified on page 1 of this Agreement. The Plan consists of the BPD and the provisions elected in
this Agreement.

	 	 	 	 	 	 	 
	92.

	 	Name and title of authorized representative(s):
	 	Signature(s):
	 	Date:
	 
	 	 	 	 	 	 
	 

	 	David E. Mangum, President
	 	/s/ David E. Mangum
	 	June 15, 2007
	 
	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 

	93.	 	Effective date of this Co-Sponsor Adoption Page: June 16, 2007
	 
	 	 	 

	 
	 	 	 

	 	o a.	 	Check here if this is the initial adoption of a new Plan by the Co-Sponsor.
	 
	 	o b.	 	Check here if this is an amendment or restatement of an existing plan
maintained by the Co-Sponsor, which is merging into the Plan being adopted.

	 	(1)	 	Designate the plan(s) being amended by this restatement:
	 	 	 	 

	 
	 	(2)	 	Designate the original Effective Date of the Co-Sponsor’s Plan
(optional):
	 	 	 	 

	o 94.	 	Allocation of contributions. If this #94 is checked,
contributions made by the Employer signing this Co-Sponsor
Adoption Page (and any forfeitures relating to such
contributions) will be allocated only to Participants actually
employed by the Employer making the contribution and Employees
of such Employer will not share in an allocation of
contributions (or forfeitures relating to such contributions)
made by any other Employer. [Note: The selection of this #94 may
require additional testing of the Plan. See Section 21.3 of the
BPD.]
	 
	o 95.	 	Special rules.

	 	o a.	 	Modification of Adoption
Agreement elections. Check
this a. if the Co-Sponsor
will apply different Plan
provisions than those
elected under the
Agreement.

	 	(1)	 	Page(s)                      of the Agreement are being modified for
this Co-Sponsor. [Note: Attach the modified pages as an addendum to this
Co-Sponsor Adoption Page.]
	 
	 	(2)	 	The modified provisions are effective                     . [Note: An
Appendix A may be attached as an addendum to this Co-Sponsor Adoption Page to
describe any special Effective Dates that apply to the Co-Sponsor.]

Ó 2002

29

 

Co-Sponsor Adoption Page #3

	þ	 	Check this selection and complete the remainder of this page if an Employer (other than the
Employer that signs the Signature Page above) will participate under this Plan as a
Co-Sponsor. [Note: See Article 21 of the BPD for rules relating to the adoption of the Plan by
a Co-Sponsor. If there is more than one Co-Sponsor, each one should execute a separate
Co-Sponsor Adoption Page. Any reference to the “Employer” in this Agreement is also a
reference to the Co-Sponsor, unless otherwise noted.]
	 
	96.	 	Name of Co-Sponsor: CheckFree Investment Corporation
	 
	97.	 	Employer Identification Number (EIN) of the Co-Sponsor: 51-0372193

By signing this page, the Co-Sponsor agrees to adopt (or to continue its participation in) the Plan
identified on page 1 of this Agreement. The Plan consists of the BPD and the provisions elected in
this Agreement.

	 	 	 	 	 	 	 
	98.

	 	Name and title of authorized representative(s):
	 	Signature(s):
	 	Date:
	 
	 	 	 	 	 	 
	 

	 	David E. Mangum, EVP & Treasurer
	 	/s/ David E. Mangum
	 	June 15, 2007
	 
	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 

	99.	 	Effective date of this Co-Sponsor Adoption Page: June 16, 2007
	 
	 	 	 

	 
	 	 	 

	 	o a.	 	Check here if this is the initial adoption of a new Plan by the
Co-Sponsor.
	 
	 	o b.	 	Check here if this is an amendment or restatement of an existing plan
maintained by the Co-Sponsor, which is merging into the Plan being adopted.

	 	(1)	 	Designate the plan(s) being amended by this restatement:
	 	 	 	 

	 
	 	(2)	 	Designate the original Effective Date of the Co-Sponsor’s Plan
(optional):
	 	 	 	 

	o 100.	 	Allocation of contributions. If this #100 is checked,
contributions made by the Employer signing this Co-Sponsor
Adoption Page (and any forfeitures relating to such
contributions) will be allocated only to Participants actually
employed by the Employer making the contribution and Employees
of such Employer will not share in an allocation of
contributions (or forfeitures relating to such contributions)
made by any other Employer. [Note: The selection of this #100
may require additional testing of the Plan. See Section 21.3 of
the BPD.]
	 
	o 101.	 	Special rules.

	 	o a.	 	Modification of Adoption
Agreement elections. Check
this a. if the Co-Sponsor
will apply different Plan
provisions than those
elected under the
Agreement.

	 	(1)	 	Page(s)                      of the Agreement are being modified for
this Co-Sponsor. [Note: Attach the modified pages as an addendum to this
Co-Sponsor Adoption Page.]
	 
	 	(2)	 	The modified provisions are effective                     . [Note: An
Appendix A may be attached as an addendum to this Co-Sponsor Adoption Page to
describe any special Effective Dates that apply to the Co-Sponsor.]

Ó 2002

30

 

Co-Sponsor Adoption Page #4

	þ	 	Check this selection and complete the remainder of this page if an Employer (other than the
Employer that signs the Signature Page above) will participate under this Plan as a
Co-Sponsor. [Note: See Article 21 of the BPD for rules relating to the adoption of the Plan by
a Co-Sponsor. If there is more than one Co-Sponsor, each one should execute a separate
Co-Sponsor Adoption Page. Any reference to the “Employer” in this Agreement is also a
reference to the Co-Sponsor, unless otherwise noted.]
	 
	102.	 	Name of Co-Sponsor: CheckFree PhonePay Services, Inc.
	 
	103.	 	Employer Identification Number (EIN) of the Co-Sponsor: 11-3214844

By signing this page, the Co-Sponsor agrees to adopt (or to continue its participation in) the Plan
identified on page 1 of this Agreement. The Plan consists of the BPD and the provisions elected in
this Agreement.

	 	 	 	 	 	 	 
	104.

	 	Name and title of authorized representative(s):
	 	Signature(s):
	 	Date:
	 
	 	 	 	 	 	 
	 

	 	David E. Mangum, EVP & CFO
	 	/s/ David E. Mangum
	 	June 15, 2007
	 
	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 

	105.	 	Effective date of this Co-Sponsor Adoption Page: June 16, 2007
	 
	 	 	 

	 
	 	 	 

	 	o a.	 	 Check here if this is the initial adoption of a new Plan by the
Co-Sponsor.
	 
	 	o b.	 	 Check here if this is an amendment or restatement of an existing plan
maintained by the Co-Sponsor, which is merging into the Plan being adopted.

	 	(1)	 	Designate the plan(s) being amended by this restatement:
	 	 	 	 

	 
	 	(2)	 	Designate the original Effective Date of the Co-Sponsor’s Plan
(optional):
	 	 	 	 

	o 106.	 	Allocation of contributions. If this #106 is checked,
contributions made by the Employer signing this Co-Sponsor
Adoption Page (and any forfeitures relating to such
contributions) will be allocated only to Participants actually
employed by the Employer making the contribution and Employees
of such Employer will not share in an allocation of
contributions (or forfeitures relating to such contributions)
made by any other Employer. [Note: The selection of this #106
may require additional testing of the Plan. See Section 21.3 of
the BPD.]
	 
	o 107.	 	Special rules.

	 	o  a.	 	Modification of Adoption
Agreement elections. Check
this a. if the Co-Sponsor
will apply different Plan
provisions than those
elected under the
Agreement.

	 	(1)	 	Page(s)                      of the Agreement are being modified for
this Co-Sponsor. [Note: Attach the modified pages as an addendum to this
Co-Sponsor Adoption Page.]
	 
	 	(2)	 	The modified provisions are effective                     . [Note: An
Appendix A may be attached as an addendum to this Co-Sponsor Adoption Page to
describe any special Effective Dates that apply to the Co-Sponsor.]

Ó 2002

31

 

Co-Sponsor Adoption Page #5

	108.	 	Name of Co-Sponsor: Carreker Corporation
	 
	109.	 	Employer Identification Number (EIN) of the Co-Sponsor: 75-1622836

By signing this page, the Co-Sponsor agrees to adopt (or to continue its participation in) the Plan
identified on page 1 of this Agreement. The Plan consists of the BPD and the provisions elected in
this Agreement.

	 	 	 	 	 	 	 
	110.

	 	Name and title of authorized representative(s):
	 	Signature(s):
	 	Date:
	 
	 	 	 	 	 	 
	 

	 	Laura E. Binion, SVP & Secretary
	 	/s/ Laura E. Binion
	 	June 15, 2007
	 
	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 

	111.	 	Effective date of this Co-Sponsor Adoption Page: June 16, 2007
	 
	 	 	 
	 
	 	 	 

	 	o a.	 	Check here if this is the initial adoption of a new Plan by the
Co-Sponsor.
	 
	 	o b.	 	Check here if this is an amendment or restatement of an existing plan
maintained by the Co-Sponsor, which is merging into the Plan being adopted.

	 	(1)	 	Designate the plan(s) being amended by this restatement:
	 	 	 	 

	 
	 	(2)	 	Designate the original Effective Date of the Co-Sponsor’s Plan
(optional):
	 	 	 	 

	o 112.	 	Allocation of contributions. If this #112 is checked,
contributions made by the Employer signing this Co-Sponsor
Adoption Page (and any forfeitures relating to such
contributions) will be allocated only to Participants actually
employed by the Employer making the contribution and Employees
of such Employer will not share in an allocation of
contributions (or forfeitures relating to such contributions)
made by any other Employer. [Note: The selection of this #112
may require additional testing of the Plan. See Section 21.3 of
the BPD.]
	 
	o 113.	 	Special rules.

	 	o  a.	 	Modification of Adoption
Agreement elections. Check
this a. if the Co-Sponsor
will apply different Plan
provisions than those
elected under the
Agreement.

	 	(1)	 	Page(s)                      of the Agreement are being modified for
this Co-Sponsor. [Note: Attach the modified pages as an addendum to this
Co-Sponsor Adoption Page.]
	 
	 	(2)	 	The modified provisions are effective                     . [Note: An
Appendix A may be attached as an addendum to this Co-Sponsor Adoption Page to
describe any special Effective Dates that apply to the Co-Sponsor.]

Ó 2002

32

 

Co-Sponsor Adoption Page #6

	114.	 	Name of Co-Sponsor: Corillian Corporation
	 
	115.	 	Employer Identification Number (EIN) of the Co-Sponsor: 91-1795219

By signing this page, the Co-Sponsor agrees to adopt (or to continue its participation in) the Plan
identified on page 1 of this Agreement. The Plan consists of the BPD and the provisions elected in
this Agreement.

	 	 	 	 	 	 	 
	116.

	 	Name and title of authorized representative(s):
	 	Signature(s):
	 	Date:
	 
	 	 	 	 	 	 
	 

	 	Laura E. Binion, SVP & Secretary
	 	/s/ Laura E. Binion
	 	June 15, 2007
	 
	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 

	117.	 	Effective date of this Co-Sponsor Adoption Page: June 16, 2007
	 
	 	 	 

	 
	 	 	 

	 	o  a.	 	Check here if this is the initial adoption of a new Plan by the
Co-Sponsor.
	 
	 	þ  b.	 	Check here if this is an amendment or restatement of an existing plan
maintained by the Co-Sponsor, which is merging into the Plan being adopted.

	 	(1)	 	Designate the plan(s) being amended by this restatement:
Corillian Corporation 401(k) Plan
	 
	 	(2)	 	Designate the original Effective Date of the Co-Sponsor’s Plan
(optional):
	 	 	 	 

	o 118.	 	Allocation of contributions. If this #112 is checked,
contributions made by the Employer signing this Co-Sponsor
Adoption Page (and any forfeitures relating to such
contributions) will be allocated only to Participants actually
employed by the Employer making the contribution and Employees
of such Employer will not share in an allocation of
contributions (or forfeitures relating to such contributions)
made by any other Employer. [Note: The selection of this #112
may require additional testing of the Plan. See Section 21.3 of
the BPD.]
	 
	o 119.	 	Special rules.

	 	o  a.	 	Modification of Adoption
Agreement elections. Check
this a. if the Co-Sponsor
will apply different Plan
provisions than those
elected under the
Agreement.

	 	(1)	 	Page(s)                      of the Agreement are being modified for
this Co-Sponsor. [Note: Attach the modified pages as an addendum to this
Co-Sponsor Adoption Page.]
	 
	 	(2)	 	The modified provisions are effective                     . [Note: An
Appendix A may be attached as an addendum to this Co-Sponsor Adoption Page to
describe any special Effective Dates that apply to the Co-Sponsor.]

Ó 2002

33

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