Document:

SEVERANCE AGREEMENT

 

Exhibit 10.1

FORM OF CHANGE-OF-CONTROL SEVERANCE AGREEMENT

     AGREEMENT, dated as of June 10, 2004, by and between Inveresk Research
Group, Inc. and
                     (the “Participant”).

Section 1

PURPOSE

     This Agreement is intended to provide severance benefits to the
Participant in the event that the Participant’s employment is terminated under
certain circumstances within 24 months following a Change of Control.

Section 2

DEFINITIONS

     Except as otherwise may be specified or as the context otherwise may
require, the following terms shall have the respective meanings set forth below
whenever used in this Agreement:

     “Base Compensation” shall mean the annual base rate of cash compensation
of the Participant immediately before a Change of Control, or if greater, the
highest such annual rate at any time during the 12-month period immediately
preceding the Change of Control. The term “Base Compensation” shall include
the greater of (i) the cash bonus (if any) paid to the Participant for the year
most recently ended before the Change of Control or (ii) the target bonus
established for the Participant for the year in which a Covered Termination
occurs, and also shall include any other non-contingent cash compensation to
which the Participant may be entitled (such as car allowance, housing allowance
or pension contributions) but shall not include other contingent incentives or
performance awards.

     “Board” shall mean the Board of Directors of the Company.

     “Cause” shall mean (i) the Participant’s conviction for (or pleading nolo
contendere to) any felony, or any misdemeanor involving moral turpitude; (ii)
the Participant’s commission of an act of fraud, theft or dishonesty related to
the performance of the Participant’s duties with the Company; (iii) the willful
and continuing failure or habitual neglect by the Participant to perform the
Participant’s duties hereunder after reasonable notice and affording the
Participant a reasonable opportunity to cease such failure or neglect; or (iv)
the Participant’s willful and continuing material breach of the terms of the
Participant’s employment with the Company after reasonable notice and affording
the Participant a reasonable opportunity to cure such breach.

     “Change of Control” means the occurrence of any of the following:

     (i) any “person,” including a “group” (as those terms are used in
Sections 13(d) and 14(d) of the Exchange Act), becomes the beneficial
owner (as defined in Rule 13d-3 under the Exchange Act), directly or
indirectly, of securities of the Company representing a majority of
either (A) the combined voting power of the Company’s then outstanding
securities or (B) the aggregate equity ownership of the Company; or

 

 

     (ii) any merger or consolidation of the Company with another
corporation or other entity (or any other form of business combination
having a similar effect) in which the outstanding shares of common stock
of the Company immediately prior to the merger, consolidation or other
business combination do not, immediately after the merger, consolidation
or other business combination, continue to represent or entitle the
holders thereof to receive, securities representing in the aggregate 50%
or more of the equity ownership and combined voting power of the
surviving corporation or other entity (or of its ultimate parent
corporation or other entity, if any); or

     (iii) any sale, lease, exchange or other transfer (in one
transaction or a series of transactions contemplated or arranged by any
party as a single plan) of all or substantially all of the assets of the
Company; or

     (iv) a change in the composition of the Board upon which a majority
of the members of the Board are not persons who (A) were directors of the
Company for at least the preceding 24 consecutive months or (B) when they
initially were elected to the Board, (1) were nominated (if they were
elected by the stockholders) or appointed (if they were appointed by the
directors) by the affirmative vote of a majority of the directors who
were Continuing Directors (as defined below) at the time of the
nomination or appointment by the Board and (2) were not elected as a
result of an actual or threatened solicitation of proxies or consents by
a person other than the Board or an agreement intended to avoid or settle
such a proxy solicitation (the directors described in clause (A) and (B)
being “Continuing Directors”).

     Following the occurrence of a Change of Control, no subsequent event or
condition shall constitute a Change of Control, with the result that there can
be no more than one Change of Control for purposes of this Agreement.

     “Code” shall mean the Internal Revenue Code of 1986, as amended.

     “Company” shall mean, Inveresk Research Group, Inc, a Delaware
corporation, and its direct and indirect subsidiaries and subject to the
provisions of Section 5.1, also shall include any corporation or other entity
that acquires (including by way of merger, consolidation or other business
combination) all or substantially all of the assets of the Company.

     “Covered Termination” shall mean within the period of 24 months
immediately following a Change of Control the Participant (i) is terminated by
the Company without Cause (other than on account of death or Disability), or
(ii) terminates his or her employment with the Company for Good Reason. The
Participant’s employment shall not be deemed to have terminated for purposes of
this Agreement merely because he or she ceases to be employed by the Company
and becomes employed by a successor entity in connection with the Change of
Control, if the new employer expressly agrees to be bound by this Agreement as
a successor to the Company. Similarly, no Covered Termination shall be deemed
to have occurred if upon the occurrence of a Change of Control, the Participant
ceases to be employed by the Company and does not accept an offer of employment
made by the successor entity in connection with the Change of Control on terms
and conditions which, if imposed by the Company, would not give the Participant
a basis on which to terminate employment for Good Reason.

     “Date of Termination” shall mean the date on which a Covered Termination
occurs.

     “Disability” shall mean, after a Change of Control, the Participant’s
eligibility for disability benefits under the Company’s long-term disability
plans and arrangements (or, if none apply, would have been so eligible under
the most recent plan or arrangement).

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     “Good Reason” shall mean the occurrence without the express written
consent of the Participant of any of the following circumstances, unless such
circumstances are fully corrected prior to the Date of Termination specified in
the Notice of Termination given in respect thereof:

     (i) a material reduction of the Participant’s authority, duties or
responsibilities, or the assignment to the Participant of duties
materially inconsistent with the Participant’s position or positions with
the Company; provided, that a reduction in authority, duties or
responsibilities solely by virtue of the Company being acquired and made
part of a larger business organization (as, for example, would occur if
the Participant retained the same position as a senior executive of the
business unit that was the Company before the Change of Control but did
not obtain a similar position with the Company’s new parent or holding
company) shall not constitute Good Reason and a change in the
Participant’s reporting relationships shall not constitute Good Reason;

     (ii) a reduction in the Base Compensation of the Participant or a
material reduction in the other employment-related benefits of the
Participant;

     (iii) the failure by the Company to obtain an agreement in form and
substance reasonably satisfactory to the Participant from any successor
to the business of the Company to assume and agree to perform the
obligations of the Company under this Agreement;

     (iv) the relocation of the Participant’s place of work by the
Company to a location more than 50 miles from the Participant’s office
immediately prior to the Effective Date;

     (v) a purported termination of the Participants; or

     (vi) the Company’s material and willful breach of the terms of this
Agreement.

     “Notice of Termination” shall mean a notice given by the Company or the
Participant, as applicable, indicating the specific termination provision in
this Agreement relied upon and setting forth in reasonable detail the facts and
circumstances claimed to provide a basis for termination of the Participant’s
employment under the provisions so indicated.

     “Parachute Payment” shall mean any payment deemed to constitute a
“parachute payment” within the meaning of Section 280G of the Code.

Section 3

BENEFITS

     3.1 If a Covered Termination occurs with respect to the Participant, the
Company shall pay and provide, and the Participant shall be entitled to, the
following:

     (a) payment (in a lump sum) of all salary, bonus and other cash benefits
accrued through the Date of Termination, and of all reimbursable business
expenses for which reimbursement requests have been duly submitted, which shall
be payable as promptly as practicable but in no event later than 10 days after
the Date of Termination;

     (b) payment
(in a lump sum) of an amount equal to
          times the
Participant’s Base Compensation, which shall be paid as promptly as practicable
but in no event later than 30 days after the Date of Termination;

     (c) except for health benefits (which are addressed in Section 3.1(d)),
continuation of all other benefits programs and policies operated by the
Company, in accordance with, and to the extent permitted under, the terms of
those programs;

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     (d) for a period of 12 months after the Date of Termination the
continuation of health benefits (including any medical, vision or dental
benefits) that are at a level at least equivalent in the aggregate to the level
of such benefits which was available to the Participant and the Participant’s
family members immediately prior to the Change of Control, at no greater cost
to the Participant; and

     (e) all rights of the Participant in outstanding stock options, shares of
restricted stock and other equity-based compensation arrangements (if any), to
the extent not then fully vested, shall vest as of the date of the Covered
Termination.

     3.2 No payment need be made pursuant to Section 3.1(b) unless and until
the Company shall have first received from the Participant a valid, binding and
irrevocable general release, in form and substance reasonably acceptable to the
Company and, to the extent the validity of the release under applicable law is
conditioned on the passage of time or other requirements, until those
requirements have been satisfied.

Section 4

PARACHUTE TAX PROVISIONS

     If any amount payable to or other benefit receivable by the Participant
pursuant to the terms of this Agreement is deemed to constitute a Parachute
Payment, alone or when added to any other amount payable or paid to or other
benefit receivable or received by the Participant which is deemed to constitute
a Parachute Payment (whether or not under an existing plan, arrangement or
other agreement), and would result in the imposition on the Participant of an
excise tax under Section 4999 of the Code, the amount payable hereunder shall
be reduced by the smallest amount required to avoid the imposition of such
excise tax. The amount of any adjustment under this Section 4 shall be
computed by a certified public accountant selected and paid by the Company.

Section 5

SUCCESSORS; TERM

     5.1 The Company shall require any successor (whether direct or indirect,
by purchase, merger, consolidation or otherwise) to all or substantially all of
the business or assets of the Company expressly to assume and agree to perform
the Company’s obligations under this Agreement in the same manner and to the
same extent that the Company and its affiliates would be required to perform it
if no such succession had taken place (provided, that such a requirement to
perform which arises by operation of law shall be deemed to satisfy the
requirements for such an express assumption and agreement). Failure of the
Company to obtain such assumption and agreement with respect to the Participant
prior to the effectiveness of any such succession shall be a material breach of
this Agreement and shall entitle the Participant to compensation from the
Company (as constituted prior to such succession) in the same amount and on the
same terms as the Participant would be entitled to hereunder were the
Participant’s employment terminated for Good Reason following a Change of
Control, except that for purposes of implementing the foregoing, the date on
which any such succession becomes effective shall be deemed the Date of
Termination. Nothing in this Section 5.1 shall be deemed to cause any event or
condition that otherwise would constitute a Change of Control not to constitute
a Change of Control.

     5.2 Notwithstanding Section 5.1, the Company shall remain liable to the
Participant to the extent a Covered Termination occurs upon a Change of Control
because (i) the Participant is not offered continuing employment by a successor
to the Company or (ii) the Participant declines such an offer and the
Participant’s resulting termination of employment otherwise constitutes a
Covered Termination hereunder.

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     5.3 This Agreement and the rights and obligations of the parties shall
terminate on, and be of no further force or effect after, the second
anniversary of the date hereof unless on or prior to that date a Change of
Control shall have occurred (in which event this Agreement and the rights and
obligations of the parties shall remain in effect in accordance with its
terms).

Section 6

MISCELLANEOUS

     6.1 The terms of this Agreement shall inure to the benefit of and be
enforceable by the personal or legal representatives, executors,
administrators, successors, heirs, distributees, devisees and legatees of the
Participant. If the Participant shall die while an amount still would be
payable to the Participant hereunder if the Participant had continued to live,
all such amounts, unless otherwise provided herein, shall be paid in accordance
with the terms of this Agreement to the Participant’s devisee, legatee or other
designee or estate.

     6.2 The Participant shall not be required to mitigate damages or the
amount of any payment provided for under this Agreement by seeking other
employment or otherwise, nor will any payments or benefits hereunder be subject
to offset in the event the Participant does mitigate.

     6.3 The Company shall pay all legal fees and expenses incurred in any
legal proceeding by the Participant in seeking to obtain or enforce any right
or benefit provided by this Agreement. Such payments shall be made within five
days after the Participant’s request for payment accompanied with such evidence
of fees and expenses incurred as the Company reasonably may require; provided
that if the Participant institutes a proceeding and the judge or other
decision-maker presiding over the proceeding affirmatively finds that the
Participant instituted the proceeding in bad faith, the Participant shall pay
the Participant’s own costs and expenses (and, if applicable, return any
amounts theretofore paid under this Section 6.3).

     6.4 The Participant may file a claim for benefits under this Agreement by
written communication to the Board. A notice addressed to the Board and
delivered to the Company’s principal executive officers will satisfy this
requirement.

     6.5 This Agreement is the exclusive agreement between the parties
applicable to payments and benefits in connection with a Change of Control and
supersedes any prior arrangements involving the Company or its predecessors or
affiliates relating to changes of control. Without limiting the generality of
the foregoing, no other severance payments shall be payable by the Company to
the Participant in the event of a Change of Control if any payment is due under
Section 3.1(b); provided, that nothing in this Agreement shall limit any right
of the Participant to receive any payments or benefits under an employee
benefit or executive compensation plan of the Company, which are expressly
contingent upon the occurrence of a change of control (including, but not
limited to, the acceleration of any rights or benefits thereunder); however, in
no event shall the Participant be entitled to any payment or benefit under this
Agreement which duplicates a payment or benefit received or receivable by the
Participant under any severance or similar plan or policy of the Company.

     6.6 Nothing in this Agreement shall confer on the Participant any right to
continue in the employ of the Company or interfere in any way (other than by
virtue of requiring payments or benefits as may expressly be provided herein)
with the right of the Company to terminate the Participant’s employment at any
time.

     6.7 The Company shall be entitled to withhold from any payments or deemed
payments any amount of tax withholding required by law.

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     6.8 The invalidity or unenforceability of any provision of this Agreement
shall not affect the validity or enforceability of the other provisions of this
Agreement, which shall remain in full force and effect.

     6.9 The use of captions in this Agreement is for convenience and shall not
affect the interpretation of the provisions of this Agreement. The captions
are not intended to and do not provide substantive rights.

     6.10 THIS AGREEMENT SHALL BE CONSTRUED, ADMINISTERED AND ENFORCED
ACCORDING TO THE LAWS OF THE STATE OF DELAWARE, WITHOUT REGARD TO PRINCIPLES OF
CONFLICTS OF LAW, EXCEPT TO THE EXTENT PREEMPTED BY FEDERAL LAW.

     IN WITNESS WHEREOF, the parties have duly executed and delivered this
Agreement as of the date first set forth above.

	 	 	 	 	 
	 	 	INVERESK RESEARCH GROUP, INC.
	 
	 	 	 	 
	

	 	By:
	 	
	

	 	 	
 
	

	 	 	Name:
	

	 	 	Title:
	 
	 	 	 	 
	 	 	PARTICIPANT:
	 
	 	 	 	 
	

	 	By:
	 	
	

	 	 	
 
	

	 	 	Name:

Schedule to
Change-of-Control Severance Agreement

The following table sets
forth the name of each officer with whom Inveresk Research Group,
Inc. has entered into a Change-Of-Control Severance Agreement, and
for each such officer, the applicable multiple specified in
Section 3(b) of that officer’s Agreement.

	 	 	 
	Name
	 	Multiple

	Walter S. Nimmo	 	3.0
	Paul Cowan	 	3.0
	Michael Ankcorn	 	2.0
	Brian Bathgate	 	2.0
	Roland Boyd	 	2.0
	Alastair S. McEwan	 	2.0
	Nick Thornton	 	2.0
	Martha Boyd	 	1.5
	Andrew Rough	 	1.5

6INVESTMENT AND SAVINGS PLAN

 

Exhibit 10.01

THE HARTFORD

INVESTMENT AND SAVINGS PLAN

(Including Amendments through June 1, 2004)

 

 

TABLE OF CONTENTS

The Hartford Investment and Savings Plan

	 	 	 	 	 	 	 
	Article
	 	 	 	Page

	One
	 	Introduction and Purpose	 	 	3	 
	Two
	 	Definitions	 	 	4	 
	Three
	 	Membership	 	 	17	 
	Four
	 	Member Contributions	 	 	18	 
	Five
	 	Company Contributions	 	 	22	 
	Six
	 	IRS Limits on Member Savings and Company Contributions 	 	 	26	 
	Seven
	 	Credits to Accounts; Asset Valuation and Allocation 	 	 	31	 
	Eight
	 	Investment of Contributions in Investment Funds	 	 	33	 
	Nine
	 	Member Loans Before Termination of Employment	 	 	36	 
	Ten
	 	Member Withdrawals Before Termination of Employment	 	 	40	 
	Eleven
	 	Distributions From Accounts	 	 	43	 
	Twelve
	 	Qualified Domestic Relations Orders 	 	 	51	 
	Thirteen
	 	General Matters Relating to Committees 	 	 	52	 
	Fourteen
	 	Administration of Plan-Pension Administration Committee	 	 	54	 
	Fifteen
	 	Management of Funds-Investment and Savings Plan Investment Committee	 	 	55	 
	Sixteen
	 	Hardship Withdrawals- Hardship Committee	 	 	56	 
	Seventeen
	 	General and Administrative Provisions	 	 	57	 
	Appendix A
	 	 	 	 	60	 

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THE HARTFORD

INVESTMENT AND SAVINGS PLAN

(Including Amendments through June 1, 2004)

ARTICLE ONE

INTRODUCTION AND PURPOSE

1.1 Introduction. The Hartford Investment and Savings Plan (the “Plan”) was
established effective December 19, 1995 to cover Eligible Employees of The
Hartford and Hartford Fire. The Hartford was spun-off from ITT Corporation
effective December 19, 1995. The Plan was amended and restated effective
January 1, 1997. Effective as of the IPO Date, Hartford Life became a publicly
held company, was designated as a Participating Corporation for purposes of the
Plan and securities of Hartford Life were made available for investment under
the Plan. Effective as of the Merger Date, Hartford Life ceased to be a
publicly held company due to its merger with a subsidiary of The Hartford, and
its securities ceased to be available for investment under the Plan. Effective
April 1, 2002, the Omni Insurance Group 401(k) Retirement Plan was merged into
the Plan. Effective July 1, 2003, the Access Coverage Corporation 401(k) Plan
was merged into the Plan.

This Plan shall maintain account balances transferred from the ITT Investment
and Savings Plan for Salaried Employees (the “Pre-Distribution ITT Plan”) which
had been maintained by Pre-Distribution ITT through December 18, 1995 for
members who became Eligible Employees of Hartford Fire on the Distribution
Date and for certain deferred members whose last services for Pre-Distribution
ITT were performed for an insurance business of Pre-Distribution ITT. Certain
of these members, prior to May 9, 1989, were members in the Investment and
Savings Plan for Salaried Employees of Hartford Fire Insurance Company (the
“Hartford Plan”). The Hartford Plan was merged into the Pre-Distribution ITT
Plan effective on May 9, 1989.

Effective November 29, 2001, a portion of this Plan was converted into an
employee stock ownership plan (“ESOP”) within the meaning of Code Section
4975(e)(7). The ESOP is designed to invest primarily in The Hartford Stock.

Participation in the Plan is available, as set forth herein, to Eligible
Employees of The Hartford and Hartford Fire, Hartford Life, and of such other
companies affiliated therewith as may become participating companies under the
Plan. A quarterly statement is sent to each member of the Plan reflecting the
status of his or her Accounts under the Plan as of the end of each calendar
quarter.

The Plan is a defined contribution plan under ERISA, and as such is subject to
the provisions of Titles I, II and III, but not Title IV, thereof. Titles I, II
and III include requirements for covered plans governing reporting, disclosure,
participation, vesting, fiduciary responsibility and enforcement. Title IV
provides

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for plan termination insurance by the Federal government’s Pension
Benefit Guaranty Corporation. This insurance does not apply to defined
contribution plans such as the Plan.

State Street Bank, Westwood, Massachusetts, is the Trustee with respect to the
Plan.

1.2 Purpose. The purpose of the Plan is to (A) supplement retirement income
by encouraging Eligible Employees to save on a regular and long-term basis; (B)
provide Eligible Employees with ownership of The Hartford securities; (C)
provide additional financial resources for emergencies and financial hardships;
and (D) offer Eligible Employees additional incentives to continue their
careers with The Hartford.

1.3 Prospectus. The Plan (as amended) is included as part of the Prospectus.

1.4 Tax Qualification. For purposes of qualification under Section 401(a) of
the Internal Revenue Code, the Plan includes a savings plan portion and a stock
bonus portion. Prior to November 29, 2001, the stock bonus portion consisted
of assets related to the leveraged employee stock ownership plan in effect from
1989 through the Distribution Date under the Pre-Distribution ITT Plan, and
Floor Company Contributions made by The Hartford. Effective November 29, 2001,
the stock bonus portion of the Plan (referred to in this Plan as the “ESOP”)
consists of the assets invested in The Hartford Stock in The Hartford Financial
Services Group, Inc. Stock Fund.

1.5 Eligible Employees Serving in the U.S. Armed Services. If an Eligible
Employee serves in the Armed Services of the United States, notwithstanding any
provision of the Plan to the contrary, Plan contribution, benefits and Service
credit with respect to qualified military service will be provided in
accordance with Code Section 414(u).

ARTICLE TWO

DEFINITIONS

“Accounts” means, with respect to any Member or Deferred Member, his or her
Basic Investment Account, Supplemental Investment Account, Company Contribution
Account, Rollover Account and ESOP Account.

“Actual Contribution Percentage” means, prior to November 29, 2001 the average
of the ratios, calculated separately for each applicable Employee, of (A) the
sum of the After-Tax Savings and Matching Company Contributions made for the
current Plan Year to (B) the Employee’s Compensation for that Plan Year or, for
the Plan Year ending December 30, 2001, the portion of the Plan Year prior to
November 29, 2001. Effective November 29, 2001, “Actual Contribution
Percentage” means the average of the ratios, calculated separately for each
applicable Employee, of (A) the sum of the After-Tax Savings other than ESOP
Contributions and the Matching Company Contributions other than ESOP
Contributions, made for a Plan Year to (B) the Employee’s Compensation for the
Plan Year or portion of the Plan Year that the Plan includes the ESOP. Each
such Actual Contribution Percentage shall be computed to the nearest
one-hundredth of one percent of the Employee’s Compensation.

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“Actual Deferral Percentage” means, prior to November 29, 2001, the average of
the ratios, calculated separately for each applicable Employee, of (A) the
amount of Before-Tax Savings made on the Employee’s behalf for the current Plan Year to (B) the Employee’s Compensation
for that Plan Year or, for the Plan Year ending December 30, 2001, the portion
of the Plan Year prior to November 29, 2001. Effective November 29, 2001,
“Actual Deferral Percentage” means the average of the ratios, calculated
separately for each applicable Employee, of (A) the amounts of Before-Tax
Savings other than ESOP Contributions made on the Employee’s behalf for a Plan
Year to (B) the Employee’s Compensation for the Plan Year or portion of the
Plan Year that the Plan includes the ESOP. Each such Actual Deferral
Percentage shall be computed to the nearest one-hundredth of one percent of the
Employee’s Compensation.

“After-Tax Savings” means savings made by a Member under Section 4.2, and
includes both Basic After-Tax Savings and Supplemental After-Tax Savings.

“Basic After-Tax Investment Account” means that portion of the Trust Fund
which, with respect to any Member or Deferred Member, is attributable to Basic
After-Tax Savings and any investment earnings and gains or losses thereon.

“Basic After-Tax Savings” means the contributions made by a Member which are
credited to his or her Basic After-Tax Investment Account in accordance with
Section 4.2(B)(i).

“Basic Before-Tax Investment Account” means that portion of the Trust Fund
which, with respect to any Member or Deferred Member, is attributable to Basic
Before-Tax Savings and any investment earnings and gains or losses thereon.

“Basic Before-Tax Savings” means the contributions made on a Member’s behalf
which are credited to his or her Basic Before-Tax Investment Account in
accordance with Section 4.1(B)(i).

“Basic Investment Account” means that portion of the Trust Fund which, with
respect to any Member or Deferred Member, includes his or her Basic Before-Tax
Investment Account and his or her Basic After-Tax Investment Account.

“Basic Savings” means the Basic After-Tax Savings contributed by a Member and
the Basic Before-Tax Savings contributed on a Member’s behalf.

“Before-Tax Savings” means savings made by a Member under Section 4.1, and
includes both Basic Before-Tax Savings and Supplemental Before-Tax Savings
(including Catch-Up Savings).

“Beneficiary” means such beneficiary or beneficiaries as may be designated from
time to time by the Member or Deferred Member, on a form provided by the Plan
Administrator for such purpose, to receive, in the event of the Member’s or
Deferred Member’s death, the value of his or her Accounts at the time of death.
Except as hereinafter provided, in the case of a Member or Deferred Member who
is married, the Beneficiary shall be the Member’s or Deferred Member’s spouse,
unless such spouse consents, in writing, on a form witnessed by a notary public
to the designation of another person as Beneficiary. A Deferred Member who is
an alternate payee designated as such pursuant to a qualified

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domestic
relations order may not, however, name a spouse as a Beneficiary. In the case
of a Member or Deferred Member who incurs a divorce under applicable State law
prior to commencing benefits under
the Plan, such Member’s or Deferred Member’s designation of Beneficiary shall
remain valid unless otherwise provided in a qualified domestic relations order
(as described in Article Twelve of the Plan) or unless such Member or Deferred
Member changes his or her Beneficiary or is subsequently remarried.

“Board of Directors” means the Board of Directors of Hartford Fire Insurance
Company or of any successor, by merger, purchase or otherwise.

“Break in Service” shall mean the 12 consecutive month period commencing on the
Severance from Service date during which an Employee does not have any Hours
Worked. Severance from Service shall mean the earlier of (a) the date on which
an Eligible Employee quits, retires, is discharged or dies; or (b) the first
anniversary of the first date of a period in which he or she remains absent
from Service (with or without pay) for any reason other than quit, retirement,
discharge or death, such as vacation, holiday, sickness, disability, leave of
absence or layoff. If Service is interrupted for maternity or paternity
reasons addressed in the definition of Service, then the date of Severance from
Service shall be the earlier of (a) the date he or she quits, is discharged,
retires or dies, or (b) the second anniversary of the date on which he or she
is first absent from Service, as provided in such Service definition.

“Catch-Up Savings” means contributions made on a Member’s behalf which are
credited to his or her Supplemental Before-Tax Investment Account in accordance
with Section 4.1(E).

“Code” means the Internal Revenue Code of 1986, as amended from time to time.
References to any section of the Code shall include any successor provision
thereto.

“Company” means The Hartford and Hartford Fire, as constituted on the
Distribution Date, or any successor, by merger, purchase or otherwise with
respect to their Eligible Employees, any Participating Division with respect to
its Eligible Employees and any Participating Corporation with respect to its
Eligible Employees.

“Company Contributions” means Matching Company Contributions and Floor Company
Contributions made under Article Five, and Matching Company Contributions made
before 1990 under the Pre-Distribution ITT Plan. No Company Contributions
shall be made with respect to Employees of Planco Financial Services, Inc.

“Company Contribution Account” means that portion of the Trust Fund which, with
respect to any Member or Deferred Member, is attributable to (A) Matching
Company Contributions made under Article Five, (B) Floor Company Contributions
made under Article Five, (C) Matching Company Contributions made for periods
before 1990 under the Pre-Distribution ITT Plan, (D) any contributions and
investment earnings thereon made on his or her behalf and transferred to the
Trust Fund pursuant to a Prior Plan Transfer, and (E) any investment earnings
and gains or losses on any of the aforementioned amounts.

“Compensation” means total wages and other compensation paid to or for the
Member as reported on the Member’s Form W-2, Wage and Tax Statement, plus
elective contributions under Code Sections

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401(k), 414(v), 132(f)(4) and 125,
provided that for purposes of Section 6.4, Compensation means
Compensation as defined in Code Section 415( c)(3), including elective
contributions under Code Sections 401(k), 414(v), 132(f)(4) and 125.

In addition to other applicable limitations set forth in the Plan, and
notwithstanding any other provision of the Plan to the contrary, the annual
compensation of each Member taken into account under the Plan shall not exceed
the OBRA ‘93 annual compensation limit, such compensation to be measured for
each individual from the beginning of each calendar year, regardless of whether
such individual has become a Member pursuant to Article Three or elects to
contribute Savings under Article Four. The OBRA ‘93 annual compensation limit
is $200,000 beginning January 1, 2003, as adjusted by the Secretary of the
Treasury to reflect cost-of-living adjustments in accordance with Code Section
401(a)(17)(B). The cost-of-living adjustment in effect for a calendar year
applies to any period, not exceeding 12 months, over which compensation is
determined beginning in such calendar year.

Any reference in this Plan to the limitation under Code Section 401(a)(17)
means the OBRA ‘93 annual compensation limit set forth in this provision.

“Deferred Member” means (A) a Member who has terminated employment with the
Company and whose Vested Share will be deferred in accordance with Article
Eleven, (B) the spouse Beneficiary or Non-Spouse Beneficiary of a deceased
Member or Deferred Member, or (C) an alternate payee designated as such
pursuant to a domestic relations order as qualified by the Plan, and shall
include both a Hartford Fire Deferred Member and a Hartford Life Deferred
Member.

“Disability” means, with respect to a Member, the total disability of such
Member that results in the Member qualifying for benefits under the Hartford
Fire Insurance Company Long Term Disability Plan for salaried Employees or a
similar disability plan sponsored by the Company. If a Member qualifies for
benefits under such plan, then he or she shall be deemed to be totally disabled
as determined by the insurance company that administers such plan. If a Member
does not qualify for benefits under such plans, then he or she shall be deemed
to be totally disabled if his or her disability meets the definition of total
disability set forth in such a plan, as determined by the Plan Committee. For
purposes of this Plan, the effective date of disability shall be the later of
the date of disability as defined in the applicable disability plan or the date
on which the applicable insurance company issues its determination of total
disability. If a Member is deemed to be totally disabled as provided herein, he
or she shall also be deemed to have incurred a Termination of Employment with
the Company and its affiliated corporations as of such date.

“Distribution Date” means December 19, 1995.

“Effective Date” means the Distribution Date with respect to those
Participating Corporations and Participating Divisions that began their
participation in the Plan on such date; “Effective Date” with respect to any
other Participating Corporation or Participating Division shall mean the date
as of which such Participating Corporation or Participating Division begins its
participation in the Plan. The Pre-Distribution ITT Plan was originally
effective as of April 1, 1974. Hartford Life was designated as a Participating
Corporation effective as of the IPO Date.

- 7 -

 

“Employee” shall mean any person regularly employed by the Company but shall
not include any person who performs services for the Company as an independent
contractor or under any other non-employee classification, or who is classified
by the Company as, or determined by the Company to be, an independent
contractor.

“Eligible Employee” means an Employee employed by the Company; provided,
however, that except as the Board of Directors or the Pension Administration
Committee, pursuant to authority delegated by the Board of Directors, may
otherwise provide on a basis uniformly applicable to all persons similarly
situated, and except as specified below with respect to certain “Non-U.S.
Citizen Employees” (as defined below), “Eligible Employee” shall not include
any “Ineligible Person,” which means all of the following:

(A) a person who is covered for current service under a retirement
plan of the Company or any of its affiliated Companies other than
the Hartford Fire Insurance Company Retirement Plan for U.S.
Employees, or any other Plan specified by the Board of Directors
from time to time, or

(B) a person whose terms and conditions of employment are determined
by a collective bargaining agreement with the Company which does not
make this Plan applicable to him or her, or

(C) a person who is eligible for participation in any of the
following plans being maintained by certain Canadian affiliates of
the Company: the Hartford Fire Insurance Company Retirement Savings
Plan, the Hartford Fire Insurance Company Deferred Profit Sharing
Plan, and the Hartford Fire Insurance Company Employee Profit
Sharing Plan or any successor to the foregoing plans, or

(D) a person who is an employee of Planco Financial Services, Inc.,
other than a regular hourly or salaried full-time or part-time
commissioned wholesaler or a regular hourly or salaried full-time or
part-time administrative assistant to such a wholesaler, or

(E) a person who is a leased employee (within the meaning of Code
Section 414(n)(2)) of the Company or is otherwise employed through a
temporary help firm, technical help firm, staffing firm, employee
leasing firm, or professional employer organization, regardless of
whether such person is an Employee of the Company, or

(F) A person who performs services for the Company as an independent
contractor or under any other non-employee classification, or who is
classified by the Company as, or determined by the Company to be, an
independent contractor, regardless of whether such person is
characterized or ultimately determined by the Internal Revenue
Service or any other Federal, State or local government authority or
regulatory body to be an employee of the Company or its affiliates
for income or wage tax purposes or for any other purpose.

Notwithstanding any provision in the Plan to the contrary, if any person is an
Ineligible Person, or otherwise does not qualify as an Eligible Employee, or
otherwise is ineligible to participate in the Plan,

- 8 -

 

and such individual is later required by a court or governmental authority or
regulatory body to be classified as a person who is eligible to participate in
the Plan, such person shall not be eligible to participate in the Plan,
notwithstanding such classification, unless and until designated as an Eligible
Employee by the Plan Administrator, and if so designated, the participation of
such person in the Plan shall be prospective only.

Further, in addition to the foregoing, to the extent that any particular
individual is excluded from participation in the Plan for one of the reasons
set forth above or any other reason, and such individual is later required by a
court or governmental authority or regulatory body to be allowed to participate
in the plan for past or future periods because such exclusion is found to be
improper, such person shall, to the extent such person would have met the
applicable Internal Revenue Code definition of “highly compensated employee,”
“highly compensated individual,” or “part-time employee” for any part of such
periods, be deemed to have been excluded from the Plan for such periods
(including past, present and future periods), and shall continue to be excluded
from the Plan for such periods (including past, present and future periods),
for the independent reason that such person qualified and/or qualifies as a
“highly compensated employee,” a “highly compensated individual,” or a
“part-time employee,” as applicable, who properly may be excluded form
participation in the Plan.

“Enrollment Date” means the first day of any payroll period that begins on or
after the date an Eligible Employee satisfies the membership requirements set
forth in Article Three.

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended
from time to time.

“ESOP” means the portion of the Plan that consists of assets invested in The
Hartford Stock in The Hartford Financial Services Group, Inc. Stock Fund at any
time on and after November 29, 2001.

“ESOP Actual Contribution Percentage” means the average of the ratios,
calculated separately for each applicable Employee, of (A) the sum of the
After-Tax Savings that are ESOP Contributions and the Matching Company
Contributions that are ESOP Contributions, made for a Plan Year to (B) the
Employee’s Compensation for the Plan Year or portion of the Plan Year that the
Plan includes the ESOP. Each such ESOP Actual Contribution Percentage shall be
computed to the nearest one-hundredth of one percent of the Employee’s
Compensation. Effective December 31, 2001, this test is performed using the
current year testing method.

“ESOP Actual Deferral Percentage” means the average of the ratios, calculated
separately for each applicable Employee, of (A) the amounts of Before-Tax
Savings that are ESOP Contributions made on the Employee’s behalf for a Plan
Year to (B) the Employee’s Compensation for the Plan Year or portion of the
Plan Year that the Plan includes the ESOP. Each such ESOP Actual Deferral
Percentage shall be computed to the nearest one-hundredth of one percent of the
Employee’s Compensation. Effective December 31, 2001, this test is performed
using the current year testing method.

“ESOP Account” means that portion of the Trust Fund which, with respect to any
Member or Deferred Member, is attributable to allocations made under the
employee stock ownership plan portion of the Pre-Distribution ITT Plan.

- 9 -

 

“ESOP Contribution” means a contribution or contributions to the Plan made on
or after November 29, 2001, with respect to the Member’s Before-Tax Savings or
After-Tax Savings, or Company Contributions made as Matching Company
Contributions or Floor Company Contributions, that are made in The Hartford
Stock or made in cash and immediately invested in The Hartford Stock in The
Hartford Financial Services Group, Inc. Stock Fund.

“Floor Company Contribution” means a contribution made on or after the
Distribution Date pursuant to Section 5.2. No Floor Company Contributions
shall be made with respect to Employees of Planco Financial Services, Inc.

“Hardship Committee” means the Hardship Committee established hereunder for the
purposes set forth in Article Fourteen.

“Hartford Fire” means Hartford Fire Insurance Company or a successor by merger,
purchase or otherwise with respect to its Employees. Hartford Fire is the
sponsor of the Plan.

“Hartford Fire Deferred Member” means any person who is a Deferred Member and
who is not also a Hartford Life Deferred Member.

“Hartford Fire Member” means a person principally employed by Hartford Fire who
becomes a Member as provided in Article Three.

“Hartford Fire Plan” means the Investment and Savings Plan of Hartford Fire
Insurance Company as in effect on May 8, 1989.

“Hartford Life” means Hartford Life, Inc. (a Delaware corporation), as
constituted on the IPO Date, and Hartford Life and Accident Insurance Company,
or a successor of either of the foregoing by merger, purchase or otherwise with
respect to their Employees, both of which are affiliated with The Hartford, and
with Hartford Fire, the sponsor of this Plan.

“Hartford Life Deferred Member” means a person who was a Hartford Life Member
on the date of such person’s Termination of Employment, and any other Deferred
Member whose rights under the Plan are derived from such a Hartford Life
Member.

“Hartford Life Member” means a person principally employed by Hartford Life who
becomes a Member as provided in Article Three.

“Highly Compensated Member” shall mean, with respect to any Plan Year any
Member who (A) in the Plan Year or the immediately preceding Plan Year was a
five percent owner, or (B) in the immediately preceding Plan Year earned annual
Compensation from the Company or an affiliated company which exceeds a dollar
amount that is indexed annually and is determined pursuant to Code Section
414(q)(1)(B), which amount shall be adjusted at the same time and in the same
manner as the dollar limit on benefits under a defined benefit plan is adjusted
pursuant to Code Section 415(d).

- 10 -

 

“Hours Worked” means hours for which an Employee is compensated whether or not
he or she has worked, such as paid holidays, paid vacation, paid sick leave and
paid time off, and back pay for the period for which it was awarded, and each
such hour shall be computed as only one hour, even though he or she is
compensated at more than the straight time rate. With respect to any period for
which an Employee is compensated but has not worked, hours counted shall be
included on the basis of the Employee’s normal work-day or work-week. This
definition of Hours Worked shall be applied in compliance with 29 Code of
Federal Regulations Section 2530.200b-2(b) and (c), as promulgated by the
United States Department of Labor, in a consistent and nondiscriminatory
manner.

“Investment and Savings Plan Investment Committee” means the Committee
established hereunder for the purposes of managing the investment of Plan
assets as set forth in Article Fifteen.

“Investment Funds” means the funds approved by the Investment and Savings Plan
Investment Committee from time to time, in which contributions permitted by the
Plan may be invested.

“IPO” means the initial public offerings of Hartford Life Stock.

“IPO Date” means May 22, 1997, the date of consummation of the IPO.

“IRS” means the Federal Internal Revenue Service.

“Limitation Year” means the calendar year.

“Loan Valuation Date” means the business day on which a Member’s properly
completed application for a loan under the Plan is made in the form or manner
required by the Savings Plan Administrator.

“Matching Company Contribution” means a contribution made pursuant to Section
5.1. No Matching Company Contributions shall be made with respect to Employees
of Planco Financial Services, Inc.

“Member” shall mean any person who has become a Member as provided in Article
Three, and shall include both a Hartford Fire Member and a Hartford Life
Member.

“Merger Date” means June 27, 2000, the date of consummation of the merger
between Hartford Life and a wholly owned subsidiary of The Hartford, pursuant
to which Hartford Life became a wholly owned subsidiary of The Hartford.

“Non-Spouse Beneficiary” means a Beneficiary who is not the spouse of the
Member or Deferred Member.

“Non-U.S. Citizen Employee” means any person who qualifies as an “Employee” as
defined in this Plan (except for any portion of such definition relating to
payment from a United States payroll), and who is:

(A) not a citizen of the United States,

- 11 -

 

(B) paid from a payroll maintained in the continental United
States, Hawaii, Puerto Rico or the U.S. Virgin Islands, and

(C) employed by the Company in a permanent position (as
distinguished from a temporary assignment) in the continental United
States, Hawaii, Puerto Rico or the U.S. Virgin Islands, even though
such person may be covered under a retirement plan of the Company
other than those enumerated in the definition of “Employee”
contained in this Plan, provided that upon reassignment outside the
continental U.S., Hawaii, Puerto Rico or the U.S. Virgin Islands the
participation of such person shall cease. Notwithstanding the
foregoing, (i) the hire or assignment on or after January 1, 1993 of
a Non-U.S. Citizen Employee who is participating in such other
Company retirement plan to a position in the continental United
States, Hawaii, Puerto Rico or the U.S. Virgin Islands at a
Participating Corporation or a Participating Division, is deemed to
be the hiring or assignment for a permanent position, for purposes
of eligibility for Plan membership, from and after the date on which
the Employee has been in such position for a period of thirty-six
consecutive months, and (ii) the hire or assignment on or after
January 1, 1995 of a Non-U.S. citizen Employee who is participating
in such other Company retirement plan and immediately preceding such
hire or assignment participated in Hartford Fire Insurance Company
Retirement Savings Plan, Hartford Fire Insurance Company Deferred
Profit Sharing Plan and Hartford Fire Insurance Company Employees
Profit Sharing Plan (such plans being maintained for certain
Canadian affiliates of The Hartford) to a position in the
continental United States, Hawaii, Puerto Rico or the U.S. Virgin
Islands at a Participating Corporation or a Participating Division,
is deemed to be the hiring or assignment for a permanent position,
for purposes of eligibility for Plan membership.

“Participating Corporation” means any affiliate of Hartford Fire which, by
action of the Board of Directors (or by an officer of Hartford Fire under
authority delegated by the Board of Directors) has been designated as a
Participating Corporation in the Plan as to all of its Employees, or as to the
Employees of one or more of its operating or other units, and whose Board of
Directors has adopted this Plan.

“Participating Division” means any division or unit of Hartford Fire or an
affiliate of Hartford Fire which, by action of the Board of Directors (or by an
officer of Hartford Fire under authority delegated by the Board of Directors)
has been designated as a Participating Division or Unit in this Plan as to all
of its Employees, or as to the employees of one or more of its operating
subdivisions or other sub-units, and in the case of a division or unit of an
affiliate of Hartford Fire, the Board of Directors of such affiliate has
adopted this Plan on behalf of such division or unit.

“Pension Administration Committee” means the Committee established hereunder
for the purposes of administering the Plan as provided in Article Fourteen.

“Plan” means The Hartford Investment and Savings Plan, as set forth herein or
as amended from time to time.

“Plan Administrator” (formerly referred to as the Savings Plan Administrator)
means the administrator for the Plan as provided in Article Fourteen at its
offices at Hartford Plaza, Hartford, CT 06115.

- 12 -

 

“Plan Year” means the calendar year.

“Pre-Distribution ITT” means ITT Corporation (a Delaware corporation), as
constituted on the day before the Distribution Date.

“Pre-Distribution ITT Plan” means the ITT Investment and Savings Plan For
Salaried Employees, as in effect on the day before the Distribution Date.

“Principal Employment Date” means the first day of the first payroll period
following the date a person becomes principally employed by the Company.

“Prior Plan Transfer” means that portion of a Company Contribution Account or
Supplemental Investment Account that is attributable to amounts transferred
from the trust of a qualified profit sharing or other defined contribution plan
previously in effect at a Participating Corporation or Participating Division
to the extent permitted by Article Four.

“QDRO” means an order determined to be a qualified domestic relations order
under Article Twelve.

“Retirement” means:

(A) Certain Members Hired Before 2001. Solely with
respect to a Member with an original hire date with the Company
before January 1, 2001 who: (i) is covered in whole or in part
under the final average pay formula of the Retirement Plan, or
(ii) is not eligible for coverage under the Retirement Plan,
“Retirement” shall mean satisfaction of the requirements for
early or normal retirement under the final average pay formula
of the Retirement Plan (assuming such Member were covered under
the final average pay formula of the Retirement Plan), provided
such event results in such Member’s separation from the
employment of the Company; or

(B) Certain Members Hired During 2001. Solely with
respect to a Member with an original hire date with the Company
on or after January 1, 2001 but before January 1, 2002 who:
(i) is covered under the cash balance formula of the Retirement
Plan, or (ii) is not eligible for coverage under the Retirement
Plan, “Retirement” shall mean satisfaction of the requirements
for early or normal retirement under the final average pay
formula of the Retirement Plan (assuming such Member were
covered under the final average pay formula of the Retirement
Plan), provided such event results in such Member’s separation
from the employment of the Company; or

(C) Certain Members Hired During 2002 or Later. Solely
with respect to a Member with an original hire date with the
Company on or after January 1, 2002 who: (i) is covered under
the cash balance formula of the Retirement Plan, or (ii) is not
eligible for coverage under the Retirement Plan, “Retirement”
shall mean, solely for

- 13 -

 

     purposes of this Plan, separation from the employment of the
Company on or after reaching age 65.

“Retirement Plan” means The Hartford Retirement Plan for U.S. Employees, as
may be amended from time to time.

“Rollover Account” means the portion of the Trust Fund which, with respect to a
Member or Deferred Member, is attributable to Rollover Contributions and any
investment earnings and gains or losses thereon.

“Rollovers” means the rollover contributions permitted by Article Four.

“Salary” means an Eligible Employee’s compensation from the Company at his or
her base rate, including any payments made on account of such Eligible
Employee’s short-term disability under The Hartford Income Protection Plan
excluding any compensation deferred under a deferred compensation plan, and
determined before any election by the Member pursuant to Section 4.1(A) hereof
and before any election by the Member under Code Sections 125 and 132(f)(4),
excluding any overtime, bonus, foreign service allowance or any other form of
compensation, except to the extent otherwise deemed “Salary” for purposes of
the Plan under such nondiscriminatory rules as may be adopted by the Pension
Administration Committee with respect to all Members or any particular
Participating Company or Participating Division.

In addition to other applicable limitations set forth in the Plan, and
notwithstanding any other provision of the Plan to the contrary, the annual
salary of each Member taken into account under the Plan shall not exceed the
OBRA ‘93 annual compensation limit, such compensation to be measured for each
individual from the beginning of each calendar year, regardless of whether such
individual has become a Member pursuant to Article Three or elects to
contribute Savings under Article Four. The OBRA ‘93 annual compensation limit
is $150,000, as adjusted by the Secretary of the Treasury to reflect
cost-of-living adjustments in accordance with Code Section 401(a)(17)(B). The
cost-of-living adjustment in effect for a calendar year applies to any period,
not exceeding 12 months, over which salary is determined beginning in such
calendar year. Any reference in this Plan to the limitation under Code Section
401(a)(17) shall mean the OBRA ‘93 annual compensation limit set forth in this
provision.

“Savings” means Before-Tax Savings and After-Tax Savings permitted under
Article Four.

“Service” means the period of elapsed time beginning on the date a person
becomes an Eligible Employee of the Company or any subsidiary, affiliate or
predecessor of the Company, and ending on his or her most recent severance
date, which shall be the earlier of (A) the date he or she quits, is
discharged, retires or dies or (B) the first anniversary of the date on which
he or she is first absent from service, with or without pay, for any reason
such as vacation, sickness, disability, layoff or leave of absence. If Service
is interrupted for maternity or paternity reasons, meaning an interruption of
Service by reason of (i) the pregnancy of the Eligible Employee, (ii) the birth
of a child of the Eligible Employee or (iii) the placement of a child with the
Eligible Employee by reason of adoption, or for purposes of caring for a
newborn child of the Eligible Employee immediately following the birth or
adoption of the newborn, then the date of severance from Service shall be the
earlier of (a) the date he or she quits, is discharged,

- 14 -

 

retires or dies, or (b) the second anniversary of the date on which he or she
is first absent from service. If an Eligible Employee terminates and is later
reemployed within 12 months of (I) his or her date of termination or (II) the
first day of an absence from service immediately preceding his or her date of
termination, if earlier, the period between his or her severance date and his
or her date of reemployment shall be included in his or her Service. With
respect to Service for purposes of the vesting schedule in Section 5.3, if an
Eligible Employee terminates and is later reemployed after 12 or more months
have elapsed since his or her severance date, the period of service prior to
his or her severance date shall be included in his or her Service.

Under the circumstances hereinafter stated and upon such conditions as the
Pension Administration Committee shall determine on a basis uniformly
applicable to all Employees similarly situated, the period of Service of an
Eligible Employee shall be deemed not to be interrupted by an absence of the
type hereinafter stated and the period of such absence shall be included in
determining the length of an Eligible Employee’s Service if a leave of absence
has been authorized by the Company or any affiliate of the Company (for the
period of such authorized leave of absence only), or if an Eligible Employee
enters service in the armed forces of the United States and his or her right to
reemployment is protected by the Selective Service Act or any similar law then
in effect, and the Eligible Employee returns to regular employment within the
period during which the right to reemployment is protected by any such law.

As provided in Section 3.4, periods of employment with Pre-Distribution ITT
prior to the Distribution Date shall be treated as periods of employment with
The Hartford and Hartford Fire.

Periods of employment by an Eligible Employee with The Prudential Insurance
Company of America (the “Prudential”) in its AARP Operations Division prior to
June 1, 1997 shall be treated as periods of employment with the Company so long
as such Eligible Employee becomes employed by the Company during June, 1997 in
accordance with and under the terms of the AARP GHIP Management Agreement dated
February 26, 1997 immediately following employment with the Prudential.
Periods of employment by any Employee with United HealthCare Insurance Company
during the period June 1, 1997 through December 31, 1997 shall be treated as
periods of employment with the Company so long as such Eligible Employee
becomes employed by the Company during 1997 in accordance with and under the
terms of the AARP GHIP Management Agreement dated February 26, 1997 immediately
following employment with United HealthCare Insurance Company, if such
employment with United HealthCare Insurance Company immediately followed
employment with the Prudential in its AARP Operations Division.

Periods of employment by an Eligible Employee with Omni Insurance Company
(“Omni”) prior to January 1, 2002 shall be treated as periods of employment
with the Company so long as such Eligible Employee remained employed by Omni on
December 31, 2001 and became employed by the Company on January 1, 2002.

Periods of employment by an Eligible Employee with Fortis, Inc. and applicable
subsidiaries (collectively, “Fortis”) prior to April 1, 2001 shall be treated
as periods of employment with the Company so long as such Eligible Employee
remained employed by Fortis on March 30, 2001 and became employed by the
Company on April 1, 2001.

- 15 -

 

Periods of employment by an Eligible Employee with Access Coverage Corporation
(“Access”) prior to November 5, 2001 shall be treated as periods of employment
with the Company so long as such Eligible Employee remained employed by Access
on November 4, 2001 and became employed by the Company on November 5, 2001.

Service prior to January 1, 2004 with Planco Financial Services, Inc. or
Planco, Incorporated as a commissioned wholesaler or administrative assistant
to such a wholesaler shall be treated as Service for an individual who became
an Eligible Employee of Planco Financial Services, Inc. on January 1, 2004.

“Supplemental After-Tax Investment Account” means the portion of the Trust Fund
that is attributable to Supplemental After-Tax Savings and any investment
earnings and gains or losses thereon.

“Supplemental After-Tax Savings” means contributions credited to the
Supplemental After-Tax Investment Account under Section 4.2(B)(ii) or pursuant
to a Prior Plan Transfer.

“Supplemental Before-Tax Investment Account” means the portion of the Trust
Fund attributable to Supplemental Before-Tax Savings and any investment
earnings and gains or losses thereon.

“Supplemental Before-Tax Savings” means contributions credited to the
Supplemental Before-Tax Investment Account under Section 4.1(B)(ii), Section
4.1(E), or pursuant to a Prior Plan Transfer.

“Supplemental Investment Account” means the portion of the Trust Fund that
includes the Supplemental Before-Tax Investment Account and the Supplemental
After-Tax Investment Account.

“Supplemental Savings” means Supplemental Before-Tax Savings and Supplemental
After-Tax Savings contributed under Article Four, as well as Supplemental
Before-Tax and After-Tax Savings made pursuant to a Prior Plan Transfer.

“Termination of Employment” means a voluntary or involuntary separation from
employment with the Company for any reason, including, but not limited to,
Retirement, death, Disability, resignation or dismissal by the Company, but
shall not include a transfer in employment between the Company and any other
Participating Corporation. With respect to any leave of absence and any period
of service in the armed forces of the United States, the rules contained in the
definition of Service contained in the Plan shall apply.

“The Hartford” means The Hartford Financial Services Group, Inc. (a Delaware
corporation), which is affiliated with Hartford Fire (the sponsor of the Plan).

“The Hartford Stock” means common stock of The Hartford Financial Services
Group Inc., par value $.01 per share.

“Trust Fund” means the aggregate funds held by the Trustee under the trust
agreement or agreements established for the purposes of this Plan or the
aggregate funds held under an insurance contract or contracts established with
The Hartford or its affiliates, consisting of the funds described in Article
Eight.

- 16 -

 

“Trustee” means the Trustee at any time acting as such under the trust
agreement established for the purposes of the Plan.

“Valuation Date” means the day the Trust Fund is valued for a particular
purpose in accordance with Article Eight.

“Vested Company Contribution Account” means the portion of a Company
Contribution Account that is vested under Article Five.

“Vested Share” means the portion of Accounts that vested under Articles Four
and Five.

“Withdrawal Valuation Date” means (A) for non-hardship withdrawals under
Section 10.1, the business day that the Plan Administrator or designee receives
the request for such a withdrawal (which request must be made in the manner and
by the date required by the Plan Administrator, or (B) for hardship withdrawals
under Section 10.2, the business day that the Hardship Committee or designee
receives the request for such a withdrawal (which request must be made in the
manner and by the date required by the Plan Administrator).

ARTICLE THREE

MEMBERSHIP

3.1. Eligibility for Membership. An Eligible Employee who has attained age 19
shall be immediately eligible to be a Member for purposes of making
contributions to the Plan described in Article III and Article IV of the Plan.

3.2. Becoming a Member by Making an Enrollment Election. An Eligible Employee
who is eligible to become a Member shall become a Member by making an
enrollment election before an Enrollment Date and in the manner and by the time
required by the Plan Administrator. By making an enrollment election, the
Eligible Employee: (A) designates the rate of his or her After-Tax Savings, (B)
authorizes the Company to make regular payroll deductions of the amount of his
or her After-Tax Savings, if any, (C) designate the rate of his or her
Before-Tax Savings, (D) authorizes the Company to reduce his or her Salary by
the amount of his or her Before-Tax Savings, if any, (E) makes an investment
election as described in Article Seven, (F) designates a beneficiary for his or
her Accounts, and (G) makes a dividend election as described in Section 7.6.

3.3 Failure to Make Proper Enrollment Election. In the case of an Eligible
Employee who is eligible to become a Member but does not make a proper
enrollment election, such Eligible Employee shall automatically become a Member
hereunder as of the date such Eligible Employee is eligible to become a Member
(or as soon as practicable thereafter). Such an Eligible Employee shall be
entitled to Floor Company Contributions under the Plan as of such date, and
shall be deemed to have made elections to: (A) designate a zero rate of
After-Tax Savings, (B) designate a zero rate of Before-Tax Savings, (C)
designate his or her Spouse as Beneficiary hereunder if such Member is married,
and to designate his or

- 17 -

 

her estate as Beneficiary hereunder if such Member is unmarried, and (D) have
dividends paid with respect to Member’s Accounts invested in The Hartford Stock
reinvested in shares of The Hartford Stock. Such an Eligible Employee may
elect to change such deemed elections as permitted by the Plan.

3.4 Pre-Distribution ITT Plan Participants: Continuity of Membership, Service
and Incidents of Participation. Each person who was a “Member” or “Deferred
Member” under the Pre-Distribution ITT Plan on the day before the Distribution
Date, and whose Accounts were transferred to this Plan, shall be a Member or
Deferred Member under this Plan as of the Distribution Date. The Service of
such Members or Deferred Members while employed by Pre-Distribution ITT before
the Distribution Date shall be treated as service with Hartford Fire under this
Plan, except as specifically provided to the contrary in this Plan. All
incidents of participation with respect to such Members or Deferred Members
under the Pre-Distribution ITT Plan for periods before the Distribution Date,
including any elections or designations in effect on the day before the
Distribution Date, shall be taken into account for purposes of this Plan,
except as specifically provided herein to the contrary.

3.5. Rehired Members.

(A) Rehired Members Who Make Proper Enrollment Elections. Any
rehired Eligible Employee who at the time of Termination of
Employment was a Member of this Plan or of the Pre-Distribution ITT
Plan will again become a Member as of the first available payroll
cycle following the date of such Eligible Employee’s rehire (the
“Re-Enrollment Date”), provided that the Eligible Employee makes a
proper enrollment election under this Article Three.

(B) Rehired Members Who Do Not Make Proper Enrollment Elections. In
the case of a rehired Eligible Employee who was a Member at the time
of Termination of Employment, and who does not make a proper
enrollment election with respect to the Re-Enrollment Date, such
Eligible Employee shall automatically become a Member as of the
first available payroll cycle following the Re-Enrollment Date (or
as soon as practicable thereafter). Such a Member shall be entitled
to Floor Company Contributions under the Plan as of such date, and
shall be deemed to have made elections to: (i) designate a zero rate
of After-Tax Savings, (ii) designate a zero rate of Before-Tax
Savings, (iii) designate his or her Spouse as Beneficiary hereunder
if such Member is married, and if not married, to designate his or
her estate as Beneficiary hereunder, and (iv) have dividends paid
with respect to Member’s Accounts invested in The Hartford Stock
reinvested in shares of The Hartford Stock. Such an Eligible
Employee may change such deemed elections as permitted by the Plan.

ARTICLE FOUR

MEMBER CONTRIBUTIONS

4.1. Member Before-Tax Savings.

- 18 -

 

(A) Salary Reduction Election for Before-Tax Savings. A Member may
elect, subject to the IRS limits described in Article Six and any
other Plan limits, to have his or her Salary reduced (by payroll
deduction) by 2%, 3%, 4%, 5%, 6%, 7%, 8%, 9%, 10%, 11%, 12%, 13%,
14%, 15%, 16%, 17%, 18%, 19%, 20%, 21%, 22%, 23%, 24%, 25%, 26%,
27%, 28%, 29% or 30%, and to have that amount contributed to the
Trust Fund as Before-Tax Savings. Such election shall be made in the
manner and by the date required by the Plan Administrator, and shall
be effective with the next payroll paid after the election (or as
soon as practicable thereafter). A Member’s election shall continue
to apply notwithstanding a change in his or her principal employer
from one Participating Corporation to another Participating
Corporation, unless the Member changes or suspends his or her Salary
reduction rate or savings as permitted by the Plan. The Plan
Administrator may establish a separate limit on the percentage of
Salary that a Highly Compensated Member may contribute to the Trust
Fund as Before-Tax Savings.

(B) Types of Before-Tax Savings; Crediting of Before-Tax Savings to
Accounts.

(i) Basic Before-Tax Savings. Before-Tax Savings that do not
exceed 6% of a Member’s Salary for the period during which
such contributions are made shall be known as “Basic
Before-Tax Savings,” and shall be credited to the Member’s
Basic Before-Tax Investment Account.

(ii) Supplemental Before-Tax Savings.
Before-Tax Savings that exceed the maximum allowed under
the preceding paragraph shall be known as “Supplemental
Before-Tax Savings,” and shall be credited to a Member’s
Supplemental Before-Tax Investment Account. Supplemental
Before-Tax Savings may also include Catch-Up Savings and
amounts credited on a Member’s behalf pursuant to a Prior
Plan Transfer.

(C) Change in Salary Reduction Election for Before-Tax Savings. A
Member may elect to change the rate of his or her Salary reduction
for Basic or Supplemental Before-Tax Savings as of any business day
by giving notice to the Company in a manner and by the date required
by the Plan Administrator. The changed rate of Salary reduction
shall be effective as of the next payroll period (or as soon as
practicable thereafter).

(D) Vesting of Before-Tax Savings. Before-Tax Savings credited to
a Member’s Accounts shall at all times be fully vested and
nonforfeitable.

(E) Catch-Up Savings. All Members who are eligible to make
Before-Tax Savings and who have attained age 50 before the close of
the Plan Year shall be eligible to make Catch-Up Savings in
accordance with, and subject to the limitations of Code Section
414(v). Such Catch-up Savings shall not be taken into account for
purposes of the limitations of Code Sections 402(g) and 415. The
Plan shall not be treated as failing to satisfy the provisions of
the Plan implementing the requirements of Code Section 401(k)(3),
401(k)(11), 401(k)(12), 410(B) or 416, as applicable, by reason of
any Member making such Catch-Up Savings hereunder. Catch-Up Savings
shall be credited to a

- 19 -

 

Member’s Supplemental Before-Tax Investment Account. Catch-Up
Savings credited to such Account shall at all times be fully vested
and nonforfeitable.

4.2. Member After-Tax Savings.

(A) Salary Reduction Election for After-Tax Savings. A Member may
elect, subject to the IRS limits described in Article Six and any
other Plan limits, to have his or her Salary reduced (by payroll
deductions) by 1%, 2%, 3%, 4%, 5%, 6%, 7%, 8%, 9%, 10%, 11%, 12%,
13%, 14%, 15%, 16%, 17%, 18%, 19%, 20%, 21%, 22%, 23%, 24%, 25%,
26%, 27%, 28%, 29%, or 30%, and to have that amount contributed to
the Trust Fund as After-Tax Savings, except that (i) a Member may
not elect to contribute After-Tax Savings of more than the
difference between 30% of Salary and the amount of Before-Tax
Savings properly elected, and (ii) a Member who elects to contribute
only After-Tax Savings shall be subject to a minimum contribution of
2% of Salary. Such election shall be made in the manner and by the
date required by the Plan Administrator, and shall be effective with
the next payroll paid after the election (or as soon as practicable
thereafter). A Member’s election shall continue to apply
notwithstanding a change in his or her principal employer from one
Participating Corporation to another Participating Corporation,
unless the Member changes or suspends his or her Salary reduction
rate or savings as permitted by the Plan. The Plan Administrator
may establish a separate, lower limit on the percentage of Salary
that a Highly Compensated Member may contribute to the Trust Fund as
After-Tax Savings.

(B) Types of After-Tax Savings; Crediting of After-Tax Savings to
Accounts.

(i) Basic After-Tax Savings. After-Tax Savings that do not
exceed the difference between 6% of a Member’s Salary for the
period during which such contributions are made and the amount
credited as Basic Before-Tax Savings for that period shall be
known as “Basic After-Tax Savings” and shall be credited to
the Member’s Basic After-Tax Investment Account.

(ii) Supplemental After-Tax Savings. After-Tax Savings that
exceed the maximum allowed under the preceding paragraph shall
be known as “Supplemental After-Tax Savings” and shall be
credited to the Member’s Supplemental After-Tax Investment
Account. Supplemental After-Tax Savings may also include
amounts credited on a Member’s behalf pursuant to a Prior Plan
Transfer.

(C) Change in Salary Reduction Election for After-Tax Savings. A
Member may elect to change the rate of his or her Salary reduction
for After-Tax Savings as of any business day by giving notice to the
Company in the manner and by the date required by the Plan
Administrator. The changed rate of Salary reduction shall be
effective as of the next payroll period (or as soon as practicable
thereafter).

- 20 -

 

(D) Vesting of After-Tax Savings. After-Tax Savings credited to a
Member’s Accounts shall at all times be fully vested and
nonforfeitable.

4.3 Member Rollover Contributions.

(A) Contribution of Rollovers. A Member may elect, subject to the
IRS limits described in Article Six and any other Plan limits, to
contribute any of the following amounts to the Trust Fund: (i) a
distribution or proceeds from a sale of distributed property that
qualifies as an Eligible Rollover Distribution as defined in Article
Eleven hereof from a trust described in Code Section 401(a) and
exempt from tax under Code Section 501(a), (ii) a distribution from
a “conduit” individual retirement account or annuity, provided the
entire amount of the distribution is from a source described in
clause (i) hereof, (iii) a Prior Plan Transfer, which means a direct
rollover or transfer from a prior employer’s plan, provided that (a)
the Member can establish to the satisfaction of the Plan
Administrator that such prior employer’s plan assets meets the
qualification requirements under Code Section 401(a), and (b) a
trust-to-trust transfer shall not be permitted unless the amount
transferred is free of all defined benefit characteristics and does
not make the Plan a transferee plan under Code Section
401(a)(11)(B)(iii)(III); or (iv) an annuity contract described in
section 403(b) of the Code; or, (v) an eligible plan under section
457 of the Code which is maintained by a state, political
subdivision of a state, or an agency or instrumentality of a state
or political subdivision of a state. Any amount so contributed must
be paid to the Trustee (or transferred directly from a prior plan)
on or before the sixtieth day after the Member receives such amount
and shall be held in the Trust Fund and credited to a separate
Rollover Account on behalf of the Member.

(B) Vesting in Rollovers. Amounts credited to a Member’s Rollover
Account shall at all times be fully vested and nonforfeitable.

4.4 Suspension and Resumption of Member Savings.

(A) Member Election to Suspend Savings. A Member may elect to
suspend or resume his or her Before-Tax or After-Tax Savings as of
any business day by giving notice to the Company in the manner and
by the time required by the Plan Administrator. Such suspension or
resumption will be effective as of the next payroll period (or as
soon as practicable thereafter).

(B) Suspension due to Hardship Withdrawal. A Member who takes a
hardship withdrawal from his or her Supplemental Before-Tax
Investment Account or Basic Before-Tax Investment Account under
Section 10.2 may elect to suspend savings under the Plan for a
period of not less than 6 months in lieu of disclosing his or her
financial resources. Such suspension will be effective as of the
later of the next payroll period after the Valuation Date that
applies to the withdrawal (or as soon as practicable thereafter).
During such suspension, Floor Company Contributions will continue to
be made on behalf of the Member, but no Matching Company
Contributions shall be made on his or

- 21 -

 

her behalf. Also, the Member will continue to be considered a
Member for purposes of Article Six. Savings may be resumed by
giving notice to the Company in the manner and by the date required
by the Plan Administrator. Such resumption shall be effective as of
the next payroll period following the 6 month suspension period (or
as soon as practicable thereafter).

4.5 Member Elective Transfers. A Member may make an elective transfer to the
Plan, provided such elective transfer (A) is from a plan qualified under Code
Section 401(a), (B) results from the Company’s acquisition of assets or a
subsidiary within the meaning of Code Section 401(k)(10), and (C) meets the
requirements of Code Section 414(l) and Treasury Regulation 1.411(d)(4), Q&A
3(b).

ARTICLE FIVE

COMPANY CONTRIBUTIONS

5.1. Matching Company Contributions.

(A) Matching Company Contributions with respect to Basic Savings.
Subject to the IRS limits described in Article Six and any other
Plan limits, the Company shall, with respect to each Member
principally employed by it who has attained age 19 and completed at
least six months of Service as an Eligible Employee, contribute to
the Trust Fund a Matching Company Contribution in an amount equal to
50% of such Member’s Basic Savings for each payroll period. (No
Matching Company Contributions shall be made with respect to a
Member’s Supplemental Savings or a Member’s Before-Tax Savings that
exceed the limits provided in Code Sections 402(g) and 415 or
Section 4.1(A) or 6.1 of the Plan.) Such Matching Company
Contribution shall be credited to such Member’s Company Contribution
Account, and shall be invested as described in Article 8 hereof.

(B) No Matching Company Contributions Following Certain Withdrawals.
Notwithstanding Section 5.1(A), Matching Company Contributions
shall not be made in respect of a Member’s Basic Savings during a
suspension period that follows a hardship withdrawal under Article
Ten.

(C) No Matching Company Contributions for Planco Financial Services,
Inc. Employees. Notwithstanding Section 5.1(A), Matching Company
Contributions shall not be made with respect to a Member who is an
Employee of Planco Financial Services, Inc.

5.2. Floor Company Contributions. Subject to the IRS limits described in
Article Six and any other Plan limits, the Company shall, with respect to each
Eligible Employee principally employed by it who has attained age 19 and
completed at least six months of Service as an Eligible Employee, contribute to
the Trust Fund a Floor Company Contribution in an amount equal to one-half of
one percent (0.5%) of

- 22 -

 

such Eligible Employee’s Salary for each payroll period, provided that, for
each payroll period commencing on or after January 1, 2004 with respect to such
a Member who is not a Highly Compensated Member, the amount of such Floor
Company Contribution shall be increased to an amount equal to one and one-half
percent (1.5%) of such Member’s Salary for such payroll period. Floor Company
Contributions shall be credited to such Member’s Company Contribution Account,
and shall be invested as described in Article 8 hereof. Notwithstanding the
first sentence of this Section 5.2, no Floor Company Contributions shall be
made with respect to Eligible Employees who are Employees of Planco Financial
Services, Inc.

5.3 Vesting of Amounts in Company Contribution Accounts.

(A) Vesting in Matching Company Contributions.

(i) General Rules. A Member shall be fully vested in, and have a
nonforfeitable right to, the portion of his or her Company
Contribution Account that is attributable to Matching Company
Contributions in accordance with the following schedule:

	 	 	 
	Years of Service
	 	Percentage of Company Contribution that is Vested

	less than 1 year
	 	0%
	1 but less than 2 years
	 	20%
	2 but less than 3 years
	 	40%
	3 but less than 4 years
	 	60%
	4 but less than 5 years
	 	80%
	5 or more years
	 	100%

(ii) Earlier Vesting in Certain Circumstances. Notwithstanding the
foregoing schedule, a Member shall immediately be fully vested in
100% of his or her Company Contribution Account upon the earlier of:
(a) the Member reaching age 65, (b) the Member’s Retirement
provided the Member has an original hire date with the Company
before January 1, 2002, (c) the Member’s Disability, (d) the
Member’s death, (e) the termination of the Plan, or (f) the
complete discontinuance of Company contributions under the Plan. In
addition, a Member shall be immediately fully vested in all
dividends paid on or after November 29, 2001 with respect to any
portion of his or her Company Contribution Account that is invested
in The Hartford Stock.

(B) Vesting in Floor Company Contributions. Each Member and Deferred
Member shall at all times be fully vested in the portion of his or her
Company Contribution Account attributable to Floor Company Contributions.

(C) Vesting in Amounts Attributable to a Prior Plan Transfer. Each
Member and Deferred Member shall at all times be fully vested in the
portion of his or her Company Contribution Account attributable to a Prior
Plan Transfer.

(D) Special Rules for Certain ESOP and Company Contribution Account
Balances.

- 23 -

 

(i) Members Who Previously Worked for Pre-Distribution ITT. A
Member who performed services for Pre-Distribution ITT at any time
between June 30, 1995 and the Distribution Date shall be fully
vested in the amounts credited to his or her ESOP Account and
Company Contribution Account as of the Distribution Date.

(ii) Forfeitures by Members Who Did Not Previously Work for
Pre-Distribution ITT. In the case of a Member or Deferred Member
who did not perform services for Pre-Distribution ITT between June
30, 1995 and the Distribution Date, any amounts in his or her ESOP
Account and Company Contribution Account that were forfeited under
Section 5.5(a) of the Pre-Distribution ITT Plan shall remain
forfeited, except to the extent restored pursuant to this Article
Five on account of subsequent employment with the Company.

5.4 Forfeiture of Certain Unvested Amounts in Company Contribution Accounts.

(A) Termination of Employment: Forfeiture and Restoration of Forfeited
Amounts. In the event of Termination of Employment of a Member for any
reason other than one listed in Section 5.3(A)(ii), the unvested portion
of the Member’s Company Contribution Account shall be forfeited.

(B) Restoration of Forfeited Amounts in the Event of Rehire. In the case
of a Member who suffers a forfeiture under this Section, the forfeited
amount shall be restored to the Member’s Accounts if the Member again
becomes an Eligible Employee of the Company before the expiration of 5
Breaks in Service. In the case of a Deferred Member who suffers a
forfeiture under this Section or under the Pre-Distribution ITT Plan, the
forfeited amount shall, provided such Deferred Member again becomes an
Eligible Employee of the Company before the expiration of 5 Breaks in
Service, be restored to his or her Accounts at its current value assuming
such amount, from the time of termination to the date of restoration, was
subject to the same overall investment experience as the Member’s Matching
Company Contributions or Member Matching Allocations while he or she was a
Deferred Member. Any restoration of forfeited amounts under this
paragraph shall be made as of the Valuation Date following the date the
Plan Administrator receives notice of the reemployment. The extent to
which the Member vests in amounts restored under this Section shall be
determined in accordance with the vesting schedule in this Article Five.

(C) Use of Forfeited Amounts to Reduce Future Company Contributions. As
soon as practicable after the occurrence of a forfeiture described in the
preceding paragraph, the forfeited amount shall be applied to reduce
future Company contributions under the Plan.

(D) Crediting of Forfeited Amounts to Accounts in Certain Circumstances. In
the event of the termination of the Plan or complete discontinuance of
Company contributions hereunder, any forfeitures not previously applied in
accordance with the preceding paragraph shall be credited proportionately
to the Accounts of all Members and Deferred Members as described in
Article Seventeen.

- 24 -

 

5.5 Additional Company Contributions if Plan is Top-Heavy.

(A) Additional Contribution. For any Plan Year with respect to which the
Plan is Top-Heavy (as defined in the next paragraph), an additional
Company contribution shall be allocated on behalf of each Member (or each
Eligible Employee eligible to become a Member) who is not a “key
employee,” and who has not separated from service as of the last day of
the Plan Year, to the extent that the amounts allocated to his or her
Accounts as a result of contributions made under Sections 5.1 and 5.2 for
that Plan Year are less than 3% of his or her W-2 remuneration for that
Plan Year. However, if the greatest percentage of W-2 remuneration for
that Plan Year (after being limited to the annually indexed dollar amount
under Code Section 401(a)(17)) contributed by a “key employee” under
Section 4.1 or allocated to his or her Accounts as a result of
contributions made pursuant to Section 5.1 for the Plan Year would be
less than 3%, such lesser percentage shall be substituted for “3%” in the
preceding sentence. Notwithstanding the foregoing, no minimum contribution
shall be made with respect to a Member if the required minimum benefit
under Code Section 416(c)(1) is provided by the Retirement Plan.

(B) Definition of Top-Heavy Plan. The Plan shall be considered Top-Heavy
with respect to any Plan Year, if, as of the last day of the preceding
Plan Year, the value of the aggregate of the Accounts under the Plan for
all “key employees” exceeds 60 percent of the value of the aggregate of
the Accounts under the Plan for all Eligible Employees. The value of such
Accounts shall be determined as of the Valuation Date on or before the
last day of such preceding Plan Year, in accordance with Code Sections
416(g)(3) and (4) and Article Seven of this Plan. Account balances under
the Plan will be combined with the account balances or the present value
of accrued benefits under any other qualified plan of the Company and its
affiliates in which “key employees” participate or which enable the Plan
to meet the requirements of Code Section 401(a)(4) or 410. Additionally,
provided that the resulting aggregation group satisfies the requirements
of Code Sections 401(a)(4) and 410, the Company may elect to combine the
account balances under the Plan with the account balances or the present
value of accrued benefits under any other qualified plan of the Company or
its affiliates not required to be combined with this Plan if all members
are non-key employees and the contributions or benefits under the other
plan are at least comparable to the benefits provided under this Plan. The
determination as to whether an Eligible Employee will be considered a “key
employee” shall be made in accordance with the provisions of Code Sections
416(i)(l) and (5), and on the basis of the Eligible Employee’s Forms W-2
remuneration for the applicable Plan Year from the Company, or an
affiliate of the Company (if applicable).

For the Plan Years commencing before January 1, 2000, the Plan will be
super Top-Heavy if the top-heavy ratio exceeds 90% and a factor of 1.0
will be applied to the dollar limit.

- 25 -

 

ARTICLE SIX

IRS LIMITS ON MEMBER SAVINGS

AND COMPANY CONTRIBUTIONS

     6.1 IRS Limits on Before-Tax Savings.

(A) Maximum Amount of Before-Tax Savings. The maximum dollar amount of
Before-Tax Savings that may be made on behalf of any Member for a calendar
year shall be the maximum amount determined by the Secretary of the
Treasury, pursuant to Section 402(g) of the Code. In the event that the
foregoing limitation is exceeded for any calendar year, the excess
Before-Tax Savings as adjusted for investment experience will, in the sole
discretion of the Plan Administrator, either (i) be deemed to have been
distributed to the Member and recontributed to the Plan as After-Tax
Savings, or (ii) be returned to the Member on behalf of whom such
Before-Tax Savings were contributed. Any returned amounts will be returned
no later than April 15 following the end of the calendar year that the
contributions were made. However, if the Member participated in more than
one qualified defined contribution plan to which he or she contributed
pursuant to a Salary deferral arrangement, the Member shall notify the
Plan Administrator by April 15 of the following calendar year of the
amount of the excess deferrals to be allocated to this Plan, and such
portion of the excess deferrals so allocated shall be recontributed to the
Plan as After-Tax Savings or returned to the Member as provided in the
preceding sentence.

Notwithstanding the foregoing, in the case of any Member who (a) ceases to
be an Eligible Employee during a Plan Year, (b) is employed during such
Plan Year by an employer which is not the Company or an entity within the
controlled group of corporations (as defined in Code Section 414(b) and
the Regulations thereunder) containing the Company, and (c) exceeds the
limitation on elective deferrals enumerated in Code Section 402(g)
($13,000 in 2004) based on the Member’s participation in the Plan and
participation in a plan maintained by the subsequent employer, the Plan
shall not distribute to such a Member any Before-Tax Savings (or any
income thereon) that arise solely as a result of the Member exceeding the
Code Section 402(g) limit for the Plan Year, unless such limit was
exceeded solely because of the Member’s participation in this Plan,
without considering any other plan.

(B) Limit on Before-Tax Savings for Highly Compensated Members.

(i) Actual Deferral Percentage. With respect to each Plan Year,
the Actual Deferral Percentage for Highly Compensated Members shall
not exceed the greater of: (i) 125 percent of the Actual Deferral
Percentage for all other Members for the Plan Year, or (ii) the
lesser of (a) 200 percent of the Actual Deferral Percentage of all
other Members for the Plan Year or (b) the Actual Deferral
Percentage of all other Members for the Plan Year plus 2 percentage
points. Before-Tax Savings must have been allocated to Members’
Accounts during the Plan Year and may only be based on Salary
received by a Member

- 26 -

 

during the Plan Year or earned during the Plan Year and received by
the Member within 21⁄2 months after the end of the Plan Year. In
the event the Actual Deferral Percentage for Highly Compensated
Employees for any Plan Year exceeds the limits described above, the
following shall occur: (1) the Plan Administrator shall determine
the hypothetical reductions of the Highly Compensated Employees
beginning with the highest Actual Deferral Percentage and moving
toward lower percentages until one of such limitations is met; (2)
the Plan Administrator shall then determine the total dollar amount
of such reductions; (3) the Plan Administrator shall then reduce the
Before-Tax Savings of the Highly Compensated Employees beginning
with the highest dollar amount and moving toward lower dollar
amounts until the total dollar amount in (2) above is reached. For
purposes of the preceding sentence, the “highest amount” is
determined after distribution of any excess contributions. Such
amount of excess contributions, as adjusted for investment
experience, will be distributed to the Members on whose behalf of
such contributions were made or, under rules adopted by the Plan
Administrator, such Members may elect to recharacterize such
adjusted contributions as After–Tax Savings. Any such
recharacterization or distribution of the adjusted excess
contributions will be made to the Highly Compensated Employees on
the basis of the respective portion of the adjusted excess
contributions attributable to each of such Employees and the
recharacterization or the distribution of the adjusted excess
contributions will be made to the Employees on whose behalf such
contributions were made within 12 months following the end of the
Plan Year for which the deferrals were made. The amount of such
recharacterization or distribution of any excess contributions shall
be reduced by excess deferrals previously distributed for the
taxable year ending in the same Plan Year and the amount of such
distribution of any excess deferrals shall be reduced by excess
contributions previously distributed or recharacterized for the Plan
Year beginning in such taxable year.

(ii) ESOP Actual Deferral Percentage. With respect to each Plan
Year, the ESOP Actual Deferral Percentage shall be subject to the
limits and corrections for Before-Tax Savings that are ESOP
Contributions determined in the same manner as set forth in
paragraph (i), above.

(iii) In the event that any portion of a Highly Compensated
Employee’s Before–Tax Savings, as adjusted for investment
experience, is returned or recharacterized pursuant to Section
6.1(A) as a result of the maximum dollar limit applicable to
Before–Tax Savings, the Actual Deferral Percentage, or ESOP Actual
Deferral Percentage, as applicable, shall be determined before such
excess deferral is returned. Any adjusted excess of a Member’s
deferrals that are recharacterized pursuant to Section 6.1(A) shall
be treated as (I) annual additions pursuant to Section 6.3 and (II)
Before–Tax Savings for purposes of their withdrawability prior to
Termination of Employment and shall be subject to the financial
hardship requirement provisions of Section 10.2.

(iv) For purposes of determining the Actual Deferral Percentage or
ESOP Actual Deferral Percentage for Highly Compensated Employees,
all contributions made by Highly Compensated Employees to qualified
plans shall be aggregated. The

- 27 -

 

contributions of all Employees under plans that are aggregated with
this Plan for purposes of Section 401(a) or 410(b) of the Code shall
be aggregated and deemed to have been made under a single plan.

(v) For Plan Years commencing before 1997, in determining the
Actual Deferral Percentage of Highly Compensated Employees, the
Highly Compensated Employee’s Before-Tax Savings and Compensation
shall include the Before-Tax Savings and Compensation of family
members (as defined in Section 414(q)(6) of the Code). In the
event that recharacterization or distribution of excess deferrals is
required, appropriate adjustment shall be made for all family
members as provided in the Code.

(C) Additional Limits on Before-Tax Savings. From time to time and in
order to comply with Section 401(k)(3) of the Code, the Plan Administrator
may impose a limitation on the extent to which a Highly Compensated Member
may contribute Before-Tax Savings hereunder, based on a reasonable
projection of savings rates of non-Highly Compensated Members.

6.2 IRS Limits on After-Tax Savings and Matching Company Contributions.

(A) Limit on After-Tax Savings and Matching Company Contributions for
Highly Compensated Members.

(i) Actual Contribution Percentage. With respect to each Plan Year,
the Actual Contribution Percentage for Highly Compensated Members
shall not exceed the greater of (i) 125 percent of the Actual
Contribution Percentage for all other Members for the Plan Year or
(ii) the lesser of (a) 200 percent of the Actual Contribution
Percentage of all other Members for the Plan Year or (b) the Actual
Contribution Percentage of all other Members for the Plan Year plus
2 percentage points. In the event the Actual Contribution
Percentage for Highly Compensated Members for any Plan Year exceeds
the limits described above, the following shall occur: (1) the Plan
Administrator shall determine the hypothetical reductions of the
Highly Compensated Employees beginning with the highest Actual
Contribution Percentage and moving toward lower percentages until
one of such limitations is met, (2) the Plan Administrator shall
then determine the total dollar amount of such reductions, and (3)
the Plan Administrator shall then reduce the After-Tax Savings and
Matching Company Contributions of the Highly Compensated Employees
beginning with the highest dollar amount and moving toward lower
dollar amounts until the total dollar amount in (2) above is
reached. A Member’s Actual Contribution Percentage shall be
determined after a Member’s excess Before-Tax Savings are either
recontributed to the Plan as After-Tax Savings or paid to the
Member. Such amount of excess aggregate contributions, as adjusted
for investment experience, will be returned to, or paid to, the
Members for whom such contributions were made within 12 months
following the end of the Plan Year for which the contributions were
made. To the extent contributions must be paid or returned to a
Member under the preceding sentence, the distribution shall be made
from the following categories of contributions (adjusted to reflect
earnings or losses attributable thereto): First, Supplemental
After–Tax Savings; second, Basic After–Tax Savings (to the extent
that associated Matching Company

- 28 -

 

Contributions are vested, they also shall be distributed in this
category); third, remaining vested Matching Company Contributions.
To the extent that an additional adjustment is required, nonvested
Matching Company Contributions shall be forfeited.

(ii) ESOP Actual Contribution Percentage. With respect to each
Plan Year, the ESOP Actual Contributions Percentage shall be subject
to the limits and corrections for After-Tax Savings that are ESOP
Contributions and Matching Company Contributions that are ESOP
Contributions determined in the same manner as set forth in
paragraph (i), above.

(iii) For purposes of determining the Actual Contribution
Percentage or ESOP Actual Contribution Percentage for Highly
Compensated Members, all contributions made by them to qualified
plans shall be aggregated. The contributions of all Employees under
plans that are aggregated with this Plan for purposes of Code
Section 401(a) or 410(b) shall be aggregated and deemed to have been
made under a single plan.

(iv) For Plan Years commencing before 1997, in determining the
Actual Contribution Percentage of Highly Compensated Members, their
After-Tax Savings and Compensation shall include the After-Tax
Savings and Compensation of family members (as defined in Section
414(q)(6) of the Code). In the event that distribution of excess
contributions is required, appropriate adjustment shall be made for
all family members as provided in the Code.

(B) Additional Limits on After-Tax Savings. From time to time and in
order to comply with Code Section 401(m) of the Code, the Plan
Administrator may impose an additional limit on the amount of After-Tax
Savings that a Highly Compensated Member may contribute to the Trust Fund,
based on a reasonable projection of savings rates of non- Highly
Compensated Members.

6.3 Annual Limits on Additions to Member Accounts.

(A) Definitions. For purposes of this Section, the following definitions
shall apply:

(i) Definition of “Annual Addition.” The “Annual Addition” to a
Member’s Accounts for any Limitation Year beginning with 1996 means
the sum of (a) the Member’s Before-Tax Savings for such Year, (b)
the Member’s After-Tax Savings for such Year, (c) all Matching
Company Contributions and Floor Company Contributions by the Company
or an Affiliate for the Member for such Year, and (d) the amount of
any forfeiture restored to the Member’s Company Contribution Account
for such Year under Section 5.4.

(ii) Definition of “Affiliate.” The term “Affiliate” means any
subsidiary or affiliate within the Company’s controlled group of
companies, as determined under Code Section 414, except that the
phrase “more than 50 percent” shall be substituted for the phrase
“at least 80 percent” where it appears in Code Section 1563(a)(1).

(B) Maximum Annual Addition for this Plan. Notwithstanding any provision
of this Plan to the contrary, except as otherwise provided in this Article
Six, the Annual Addition to a

- 29 -

 

Member’s Accounts under the Plan for any Limitation Year, when added to
the Member’s Annual Addition for that Limitation Year under any other
qualified defined contribution plan of the Company or any Affiliate of the
Company, shall not exceed the Maximum Annual Addition. The Maximum Annual
Addition shall be the lesser of: (i) $40,000, as adjusted for increases
in the cost-of-living under Code Section 415(d), or (ii) 100 percent of
the Member’s compensation, within the meaning of Code Section 415(c)(3),
for the limitation year. The foregoing limit shall not apply to any
contribution for medical benefits after separation from service (within
the meaning of Code Sections 401(h) or 419A(f)(2)) which is otherwise
treated as an Annual Addition.

(i) Consequences of Exceeding Maximum Annual Addition. In the event
of a determination that the Annual Addition to a Member’s Accounts
for any Limitation Year would exceed the Maximum Annual Addition,
such Annual Addition shall be reduced to the extent necessary to
bring it within the Maximum Annual Addition. In accordance with and
to the extent permitted by Treasury regulations under Code Section
415, such Member’s Before-Tax Savings and After-Tax Savings shall be
distributed to the Member, along with gains attributable to such
Before-Tax Savings and After-Tax Savings, to the extent that such
distribution would reduce the excess Annual Addition to the Member’s
Accounts. Such distribution shall be made first from Supplemental
After-Tax Savings, and then from Supplemental Before Tax Savings.

(C) Maximum Annual Addition for Members Participating in Other Defined
Contribution Plans. In the event that a Member is a participant in any
other defined contribution plans (whether or not terminated) of the
Company or an Affiliate, the total amount added to such Member’s Accounts
under this Plan and all such other plans in any Limitation Year shall not
exceed the Maximum Annual Addition. In the event of a determination that
such total amount would exceed the Maximum Annual Addition, the amounts
added to such Member’s Accounts shall be reduced as follows:

(i) First, the annual additions to the Member’s Accounts under such
other defined contribution plans shall be reduced to the extent
necessary and to the extent permitted by law so that the Maximum
Annual Addition for this Plan is not exceeded; and

(ii) Second, if after application of the preceding paragraph the
amounts added to the Member’s Accounts would still exceed the
Maximum Annual Addition, then the Annual Addition to the Member’s
Accounts under this Plan shall be reduced.

(D) Maximum Annual Addition for Members Participating in Defined Benefit
Plans. In the event that a Member is a participant in any defined benefit
plan maintained by the Company or an Affiliate, it is intended that the
benefits under such defined benefit plan shall be reduced before applying
the Maximum Annual Addition for this Plan, to the extent required to meet
the requirements of Code Section 415(e) for Limitation Years beginning
before January 1, 2000.

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ARTICLE SEVEN

CREDITS TO ACCOUNTS;

ASSET VALUATION AND ALLOCATION

7.1 Establishment of Accounts. The Accounts described below shall be
established for Members and Deferred Members, as appropriate, to hold
contributions under the Plan and earnings thereon:

	 	 	 	 	 	 	 
	Type of Contribution
	 	Sub-Account
	 	 	 	Account

	-Basic Before-Tax Savings

-Basic After-Tax Savings

	 	Basic Before-Tax Investment Account

Basic After-Tax Investment Account
	 	}
	 	Basic Investment Account
	 
	 	 	 	 	 	 
	-Supplemental Before-Tax Savings

-Supplemental After-Tax Savings

-Prior Plan Transfers

	 	Supplemental Before-Tax Investment Account

Supplemental After-Tax Investment Account

	 	}
	 	Supplemental

Investment Account
	 
	 	 	 	 	 	 
	- Catch-Up Savings

	 	Supplemental Before-Tax Investment Account
	 	 	 	Supplemental

Investment Account
	 
	 	 	 	 	 	 
	-Rollovers

	 	

	 	 	 	Rollover Account
	 
	 	 	 	 	 	 
	-Matching Company Contributions

(including pre-Distribution ITT type)

-Floor Company Contributions

-Prior Plan Transfers

	 	

	 	
}
	 	
Company Contribution

Account
	 
	 	 	 	 	 	 
	ESOP balances (from Pre-

Distribution ITT Plan)

	 	

	 	 	 	ESOP Account

7.2 Crediting of Contributions to Accounts. Member Savings, Rollovers and
Company Contributions shall be credited to the appropriate Account as soon as
practicable after they are transferred to the Trust Fund.

7.3 Method of Determining Value of Amounts Credited to Accounts. At the end
of each business day in which the Plan is in effect and operation, the amount
of credit of a Member or Deferred Member in each of the funds shall be
expressed and credited to the Accounts of such Member or Deferred Member using
the unit accounting method, a method of participant accounting under which all
balances are carried as “units,” which are multiplied by a unit value to give
the actual cash value. For purposes of Article Eight, the interest of a Member
or Deferred Member in The Hartford Financial Services Group, Inc. Stock Fund
and shall be converted into a number of shares of The Hartford Stock as of any
particular time, by dividing the value of all shares of Stock in the applicable
Fund by the value of the

- 31 -

 

interest of the Member or Deferred Member in the Fund at such time. The
resulting number of shares of Stock shall be deemed allocated to such Member.

7.4 Valuation of The Hartford Stock. For the purpose of determining the value
of The Hartford Stock hereunder, in the event such Stock is traded on a
national securities exchange, such Stock shall be valued at the closing price
of such Stock on the New York Stock Exchange composite tape on the business day
such Stock is delivered to the Trustee. In the event such Stock is not traded
on a national securities exchange, such Stock shall be valued in good faith by
an independent appraiser selected by the Trustee and meeting requirements
similar to those in the regulations prescribed under Code Section 170(a)(1).

7.5 Asset Valuation; Allocation of Gains and Losses. At the end of each
business day, the Trustee shall (A) determine the total fair market value of
all assets then held by it in each Investment Fund, (B) determine the gain or
loss in the value of such assets, and (C) allocate such gain or loss pro rata
by fund to the balances credited to the Accounts of all Members and Deferred
Members as of such day.

7.6 Dividends Paid with Respect to The Hartford Stock.

(A) Dividend Election. A Member or Deferred Member may elect, with
respect to a dividend paid on The Hartford Stock that is allocated to the
Member’s or Deferred Member’s Accounts as of the ex-dividend date of such
dividend, to have the dividend either distributed in cash to the Member or
Deferred Member or reinvested in shares of The Hartford Stock in The
Hartford Financial Services Group, Inc. Stock Fund. The Plan
Administrator shall prescribe rules regarding the timing and manner of a
dividend election.

(B) Default Election. In the absence of an affirmative dividend election,
the Member or Deferred Member shall be deemed to have elected to have the
dividend reinvested in The Hartford Stock.

(C) Effect and Duration of Election. An election made in accordance with
subsections (A) or (B), shall remain in effect until changed by the Member
or Deferred Member in accordance with the rules established by the Plan
Administrator. The election shall apply to all dividends with an
ex-dividend date after the election date. A Member or Deferred member may
change his or her dividend election at any time in the manner prescribed
by the Plan Administrator.

(D) Cash Payment. Dividends elected to be paid in cash shall be
distributed to the Member or Deferred Member as soon as administratively
practicable after the dividend is received by the Trustee in the Trust
Fund. The amount of cash dividends distributed shall be reduced by the
amount of any losses attributable to such dividends while held in the
Trust Fund. No earnings attributable to such dividends shall be
distributed.

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ARTICLE EIGHT

INVESTMENT OF SAVINGS AND

CONTRIBUTIONS IN INVESTMENT FUNDS

8.1 Approval of Investment Funds for the Plan. Contributions to the Plan shall
be invested by the Trustee in the Investment Funds approved by the Investment
and Savings Plan Investment Committee from time to time. The Investment and
Savings Plan Investment Committee, or such other Committee or individual as may
be designated by the Board of Directors, may from time to time add Investment
Funds to, or eliminate Investment Funds from, the group of Investment Funds
available hereunder. Notwithstanding the foregoing, the Trustee temporarily
may hold cash or make short-term investments in obligations of the United
States Government, commercial paper, an interim investment fund for
tax-qualified employee benefit plans established by the Trustee, or other
investments of a short-term nature, unless otherwise provided by applicable
law.

8.2 Trustee Investment of Contributions in Investment Funds. Contributions to
the Plan shall be invested by the Trustee in the Investment Funds as described
below. An account shall be established for each Member and Deferred Member in
each Investment Fund as to which Savings, Rollovers, Company Contributions and
ESOP balances are made, contributed, or otherwise properly allocated.

(A) Savings and Rollovers. Member and Deferred Member Savings and
Rollovers shall be invested in multiples of 1% in one or more of the
Investment Funds, as properly elected by the Member or Deferred Member.
A failure to make a proper Investment Fund election with respect to
Savings or Rollovers shall result in the amount as to which the failure
occurs being invested in the Hartford Money Market HLS Fund.

(B) Company Contributions and ESOP Account Balances. Member and Deferred
Member Company Matching Contributions, Floor Contributions and ESOP
Account Balances shall be invested in multiples of 1% in one or more of
the Investment Funds, as properly elected by the Member or Deferred
Member. A failure to make a proper Investment Fund election with respect
to such Company Matching Contributions, Floor Contributions or ESOP
Account Balances shall result in the amount as to which the failure occurs
being invested in The Hartford Financial Services Group, Inc. Stock Fund,
provided, however, that Floor Contributions made with respect to periods
after December 31, 2003 shall be invested in the Hartford Money Market HLS
Fund in the event that a proper Investment Fund election is not made with
respect to such Floor Contributions.

8.3 Changes in Investment Elections.

(A) General Rules. A Member or Deferred Member may make changes to his or
her investment elections and transfer amounts between Investment Funds to
the extent permitted by this Section 8.3. Such changes and transfers may
be made by giving notice to the Company in a manner and by the date
required by the Plan Administrator. All changes and transfers shall be
made in multiples of 1%.

- 33 -

 

(B) Change of Investment Funds for Future Savings and Rollovers. A Member
may elect to change the Investment Funds in which his or her future
Savings and Rollovers shall be invested, in accordance with the rules
described in the preceding paragraph.

(C) Redistribution Among Investment Funds for Past Savings and Rollovers.
A Member or Deferred Member may elect to redistribute his or her past
Savings and Rollovers among any of the Investment Funds, in accordance
with the rules of Section 8.3(A), except that (i) no amounts shall be
transferred from the Stable Value Fund to the Money Market Fund or the
Bond Income Strategy Fund, and (ii) a Member or Deferred Member who
transfers amounts from the Stable Value Fund to another Investment Fund
cannot, for a period of three months, transfer any amounts to the Money
Market Fund or the Bond Income Strategy Fund.

(D) Changes / Redistributions for Company Contributions and ESOP Account
Balances. Members may elect to change the Investment Funds in which
future Matching Company Contributions and Floor Company Contributions
shall be invested, in accordance with the rules of Section 8.3(A).
Members, Deferred Members, Beneficiaries of the foregoing and Alternate
Payees may elect to redistribute past Company Contributions and ESOP
Account balances among any of the Investment Funds, in accordance with the
rules of Section 8.3(A), and subject to the restrictions described in
Section 8.3(C).

(E) Restriction on Electronic Transfers to 20 Per Calendar Year. In
addition to the above restrictions, a Member or Deferred Member shall be
limited to 20 electronic transfers of amounts between Investment Funds per
calendar year (for the 2004 calendar year, the 20 electronic transfer
limit shall apply for the period June 1, 2004 through December 31, 2004).
For this purpose, (i) a transfer shall occur on a day as of which any
amounts are moved between Investment Funds, regardless of the number of
Investment Funds affected by transfers between Investment Funds on that
day, and (ii) an electronic transfer includes any transfer initiated
online, through an interactive voice recognition system or by telephone to
a Plan representative. Once the 20 electronic transfer limit has been
reached, the Member or Deferred Member shall initiate any subsequent
transfers by mail or overnight courier service to The Hartford Benefits
Center, using a transfer request form obtained from The Hartford Benefits
Center. Notwithstanding the restriction in this Section 8.3(E), a Member
or Deferred Member may elect, after having effected 20 electronic
transfers during the applicable time period, to initiate a transfer of
amounts from The Hartford Financial Services Group, Inc. Stock Fund to the
Stable Value Fund by means of a telephone call to a Plan representative at
The Hartford Benefits Center.

8.4 Trustee Purchase of The Hartford Stock. The trustee shall purchase The
Hartford Stock
from any source. Such Stock purchased from The Hartford shall be purchased at
fair market value. Such Stock purchased from The Hartford may be treasury
shares or newly issued shares or authorized but unissued shares; provided
however, that in no event shall a commission be charged with respect to such a
purchase.

8.5 Member Voting of The Hartford Stock. Each Member, Deferred Member and
Beneficiary is for the purposes of this Section hereby designated a named
fiduciary within the meaning of Section

- 34 -

 

402(a)(2) of ERISA with respect to any shares of The Hartford Stock allocated
to their respective Accounts, and may direct the Trustee as to the manner in
which such Stock is to be voted. Before each annual or special meeting of
shareholders of The Hartford, there shall be sent to each such person a copy of
the proxy solicitation material for such meeting, together with a form
requesting instructions to the Trustee on how to vote such Stock. Upon receipt
of such instructions, the Trustee shall vote such Stock as instructed. In lieu
of voting fractional shares of such Stock as so instructed, the Trustee may
vote the combined fractional shares of such Stock to the extent possible to
reflect the directions of the Members, Deferred Members and Beneficiaries with
allocated fractional shares of each class of such Stock. The Trustee shall
vote shares of such Stock allocated to Accounts under the Plan, for which no
valid voting instructions were received, in the same manner and in the same
proportion that the shares of The Hartford Stock with respect to which the
Trustee received valid voting instructions are voted. Instructions to the
Trustee shall be in such form and pursuant to such regulations as the Plan
Administrator may prescribe. Any instructions received by the Trustee
regarding the voting of The Hartford Stock shall be confidential and shall not
be divulged by the Trustee to the Company, or to any director, officer,
employee or agent of the Company, it being the intent of this Section to ensure
that the Company (and its directors, officers, employees and agents) cannot
determine the voting instructions given by any person.

8.6 Procedures in the Event of a Tender Offer for The Hartford. The
provisions of this Section shall apply in the event any person, either alone or
in conjunction with others, makes a tender offer, makes an exchange offer, or
otherwise offers to purchase or solicits an offer to sell to such person one
percent or more of the outstanding shares of a class of The Hartford Stock held
by a Trustee hereunder (herein jointly and severally referred to as a Tender
Offer). As to any Tender Offer, each Member and Deferred Member (or Beneficiary
in the event of the death of the Member or Deferred Member) shall have the
right to determine confidentially whether shares held subject to the Plan will
be tendered.

(A) Instructions to Trustee. In the event a Tender Offer is commenced,
the Plan Committee, promptly after receiving notice of such commencement,
shall transfer certain of its record keeping functions to an independent
record keeper. The functions so transferred shall be those necessary to
preserve the confidentiality of any directions given by the Members and
Deferred Members (or Beneficiary in the event of the death of the Member
or Deferred Member) in connection with the Tender Offer. A trustee may not
take any action in response to a Tender Offer except as otherwise provided
in this Section. Each Member is, for all purposes of this Section, hereby
designated a named fiduciary within the meaning of Section 402(a)(2) of
the ERISA, with respect to the shares of The Hartford Stock allocated to
his or her Accounts. Each Member and Deferred Member (or Beneficiary in
the event of the death of the Member or Deferred Member) may direct the
Trustee to sell, offer to sell, exchange or otherwise dispose of The
Hartford Stock allocated to any such individual’s Accounts in accordance
with the provisions, conditions and terms of such tender offer and the
provisions of this Section, provided, however, that such directions shall
be confidential and shall not be divulged by the Trustee or independent
record keeper to the Company or to any director, officer, employee or
agent of the Company, it being the intent to ensure that the Company (and
its directors, officers, employees and agents) cannot determine the
direction given by any Member, Deferred Member or Beneficiary. Such
instructions shall be in such form and shall be filed in such manner and
at such time as the Trustee may prescribe.

- 35 -

 

(B) Trustee Action on Member Instructions. The Trustee shall sell, offer
to sell, exchange or otherwise dispose of The Hartford Stock allocated to
the Member’s, Deferred Member’s or Beneficiary’s Accounts with respect to
which it has received directions to do so under this Section 8.6. The
proceeds of a disposition directed by a Member, Deferred Member or
Beneficiary from his or her Accounts under this Section 8.6 shall be
allocated to such individual’s Accounts and be governed by the provisions
of this Section or other applicable provisions of the Plan and the trust
agreements related hereto.

(C) Trustee Action With Respect to Members Not Issuing Instructing or
Issuing Invalid Instructions. To the extent to which Members, Deferred
Members and Beneficiaries do not issue valid directions to the Trustee to
sell, offer to sell, exchange or otherwise dispose of The Hartford Stock
allocated to their Accounts, such individuals shall be deemed to have
directed the Trustee that such shares remain invested in The Hartford
Stock subject to all provisions of the Plan, including Section 8.6(D).

(D) Investment of Plan Assets after Tender Offer. To the extent possible,
the Trustee shall reinvest the proceeds of a disposition of The Hartford
Stock in an individual’s Accounts in The Hartford Stock as expeditiously
as possible in the exercise of the Trustee’s fiduciary responsibility and
shall otherwise be held by the Trustee subject to the provisions of the
trust agreement and the Plan. In the event that The Hartford Stock is no
longer available to be acquired following a tender offer, the Company may
direct the substitution of new employer securities for such Stock or for
the proceeds of any disposition of such Stock. Pending the substitution
of new employer securities or the termination of the Plan and trust, the
Trust Fund shall be invested in such securities as the Trustee shall
determine; provided, however, that, pending such investment, the Trustee
shall invest the cash proceeds in short-term securities issued by the
United States of America or any agency or instrumentality thereof or any
other investments of a short-term nature, including corporate obligations
or participations therein and interim collective or common investment
funds.

ARTICLE NINE

MEMBER LOANS

BEFORE TERMINATION OF EMPLOYMENT

9.1 Request for a Loan; Consequences of Request. At any time before
Termination of Employment, a Member may make a request, in a manner and by the
date required by the Plan Administrator, for a loan of a whole dollar amount
from his or her Accounts. By making such a request, the Member (A) specifies
the amount and the term of the loan, (B) agrees to the annual percentage rate
of interest, (C) agrees to the finance charge, (D) promises to repay the loan,
and (E) authorizes the Company to make regular payroll deductions to repay the
loan. Loans will be permitted only if all of the conditions described in the
next paragraph are satisfied. Permitted loans will be deducted from Member
Accounts

- 36 -

 

as of the Loan Valuation Date, and will be paid in cash as soon as practicable
thereafter. Amounts so deducted will not participate in the investment
experience of the Plan.

9.2 Conditions for Taking a Loan.

(A) Minimum Loan Amount. The loan must be at least $500, but cannot
exceed the lesser of: (a) 50% of the Member’s Vested Share (determined
based on the most recent information available to the Plan Administrator),
or (b) $50,000 minus the Member’s highest outstanding loan balance (if
any) during the preceding one year period.

(B) Order of Sources for Loans. Loans can only be taken from the Accounts
listed in Section 9.3, and they must also be taken according to the order
of sources for loans listed in that Section, such that the full amount
must be borrowed from each source on the list, beginning with the first
source on the list, before any amount may be borrowed from the next source
on the list (unless otherwise stated on the list).

(C) Required Term and Repayment Schedule. The loan must be repaid no less
frequently than on a monthly basis over a period of twelve, twenty-four,
thirty-six, forty-eight or sixty months, except that a Member who requests
a loan to buy his or her own principal residence may repay the loan over a
period of seventy-two through one hundred-eighty months, in twelve month
increments. Extensions of loan terms will not be permitted after a loan
is made. If a Member is serving in the Armed Services of the United
States and loan repayments are suspended pursuant to Section 9.5, the term
of the loan will be extended by the period of military service.

(D) Maximum Number of Loans. A Member may have no more than two loans
outstanding at any time.

(E) Other Conditions. The Plan Administrator may make such additional
conditions or rules for taking loans as may be determined appropriate in
its sole discretion, which conditions shall be in writing and communicated
to Members. Such written conditions are incorporated herein by reference.

9.3 Order of Sources for Loans.

(A) Rollover Account.

(B) Basic Before-Tax and Supplemental Before-Tax Investment Accounts.

(C) Prior Plan Transfers.

(D) Basic After-Tax Investment Account.

(E) Supplemental After-Tax Investment Account

(F) ESOP Account.

- 37 -

 

(G) Floor Company Contributions in the Company Contribution Account.

(H) Vested Matching Company Contributions in the Company Contribution
Account.

9.4 Interest Rates for Loans. The Plan Administrator shall establish and
communicate to Members a
reasonable rate of interest for loans that it determines to be commensurate
with the interest rates charged by persons in the business of lending money for
loans similar circumstances, which interest rate shall remain in effect for the
term of the loan. Such rate shall be determined as follows: On the last
business day of February, May, August, and November of each Plan Year, the Plan
Administrator shall determine the prime rate published in the Wall Street
Journal on that day, and then add 1% to that prime rate (the “Applicable
Interest Rate”). The Plan Administrator shall then set the Plan loan interest
rate for the next calendar quarter equal to the Applicable Interest Rate. The
rate of interest on a loan to a Member who is serving in the Armed Services of
the United States shall not exceed such rate as may be prescribed by applicable
law.

9.5 Other Repayment Terms; Prepayment. Loan repayments will be made to the
Accounts from which the loan was taken in reverse order, beginning with the
last source in Section 9.3 from which the loan was taken, and working backwards
to the first source. Repayments will be invested in the Investment Funds in
accordance with the Member’s investment elections at the time of repayment. No
loan repayment will be credited with investment experience under the Plan until
the date designated by the Plan Administrator. The entire outstanding balance
of a loan may be prepaid at any time, with interest through the date of
prepayment. The date of prepayment will be date designated by the Plan
Administrator. If a Member is serving in the Armed Services of the United
States, loan repayments will be suspended during the period of active service.
Upon completion of active military service, loan repayments will resume.

9.6 Loan Default during Employment. Under certain circumstances, including,
but not limited to, the failure of a Member to make repayment of a loan for
sixty (60) days, or the impending bankruptcy of the Member, the Plan
Administrator may declare a Member’s loan to be in default. In the event
default is declared, the outstanding loan balance and any accrued interest may
be treated as a withdrawal before Termination of Employment under Article Ten
to the extent that the Member is eligible to make such a withdrawal.

9.7 Outstanding Loan Balance at Termination of Employment.

(A) Certain Members Eligible to Continue Loan Repayments. Upon
Termination of Employment of a Member who (i) has a Vested Share of $5,000
or more, and (ii) has not elected a distribution of his or her Accounts
from the Plan, such Member may elect to continue to make loan repayments
on his or her outstanding loan balance in the manner approved by the Plan
Administrator. If such a Member fails to make a valid election to
continue loan repayments, or elects a distribution of his or her Accounts
from the Plan, then the provisions of the next succeeding paragraph shall
apply.

- 38 -

 

(B) Other Members. Upon Termination of Employment of a Member who does
not satisfy the requirements of the immediately preceding paragraph, the
outstanding loan balance of such a Member shall become due and payable and
shall either be canceled or, if the Member so elects, prepaid in full to
his or her Accounts with interest to the date of prepayment. Any
prepayment must be made by the Valuation Date following Termination of
Employment or, if earlier, the Valuation Date that applies to the Member’s
distribution or deferral election.

9.9 Death after Request for Loan. If a Member requests a loan and dies after
the issuance of any check for any part of such loan, but before negotiation of
such check, then any unpaid part of the loan as represented by the
non-negotiated check will be paid to the Member’s estate. If a Member requests
a loan and dies before the issuance of any check for any part of such loan,
then the request for the loan shall be null and void with respect to the part
of the loan represented by the check that was not issued. For purposes of
this Section, a check will be considered issued on the earlier of (i) the date
of issuance shown on the check, or (ii) the Loan Valuation Date.

- 39 -

 

ARTICLE TEN

MEMBER WITHDRAWALS

BEFORE TERMINATION OF EMPLOYMENT

10.1 Non-Hardship Withdrawals.

(A) Request for a Non-Hardship Withdrawal. At any time before Termination
of Employment, a Member may make a request, in a manner and by the date
required by the Plan Administrator, for a non-hardship withdrawal of a
dollar or percentage amount from his or her Accounts. Non-hardship
withdrawals will be permitted to the extent that the conditions of Section
10.1(B) are satisfied. Permitted non-hardship withdrawals will be
deducted from a Member’s Accounts as of the Withdrawal Valuation Date, and
will be distributed as soon as practicable thereafter. Amounts so
deducted will not participate in the investment experience of the Plan. A
Member who takes a non-hardship withdrawal shall not be required to cease
contributing Basic and Supplemental Savings under the Plan.

(B) Conditions for Non-Hardship Withdrawals.

(i) Minimum Amount for Withdrawal. The amount for withdrawal must
be at least $500.

(ii) Proration of Withdrawal Among Accounts. Withdrawals by Members
with Accounts in more than one Investment Fund must be prorated
among such Accounts based on their respective values.

(iii) Order of Sources for Withdrawals. Withdrawals can only be
taken with respect to all or a portion of the Accounts listed in
Section 10.1(C), and they must also be taken according to the order
of sources for withdrawals listed in Section 10.1(C), such that the
full amount must be withdrawn from each source on the list,
beginning with the first source on the list, before any amount may
be withdrawn from the next source on the list (unless otherwise
stated on the list).

(iv) Other Conditions. The Plan Administrator may make such
additional conditions or rules for making non-hardship withdrawals
as may be determined appropriate in its sole discretion, which
conditions shall be in writing and communicated to Members. Such
written conditions are incorporated herein by reference.

- 40 -

 

(C) Order of Sources for Non-Hardship Withdrawals.

(i) Supplemental After-Tax Investment Account

(ii) Rollover Account

(iii) Basic After-Tax Investment Account.

(iv) ESOP Account.

(v) Amounts attributable to Floor Company Contributions in the
Company Contribution Account that were made with respect to payroll
periods prior to January 1, 2004, except that a Member who has
completed less than 60 months of Service may only withdraw such
Floor Company Contributions that were made more than 24 months
before the proposed withdrawal date (and after withdrawing the
available amounts, such a Member may withdraw amounts from the
source described in the next paragraph). Amounts attributable to
Floor Company Contributions made with respect to payroll periods
commencing on or after January 1, 2004 cannot be withdrawn pursuant
to this provision.

(vi) Vested Matching Company Contributions in the Company
Contribution Account, except that a Member who has completed less
than 60 months of Service may only withdraw the Vested Matching
Company Contributions that were made more than 24 months before the
proposed withdrawal date.

(vii) Before-Tax Savings (subject to certain restrictions as
determined by the Plan Administrator in accordance with applicable
law).

(viii) Prior Plan Transfers.

(D) Non-Hardship Withdrawal of Before-Tax Savings at Age 59 1/2. A
Member who has reached age 59 1⁄2 may, without regard to financial
hardship, withdraw all or a portion of his or her Basic Before-Tax
Investment Account, Supplemental Before-Tax Investment Account and amounts
attributable to Floor Company Contributions in his or her Company
Contribution Account (regardless of whether those Floor Company
Contributions are attributable to payroll periods commencing on or after
January 1, 2004).

10.2 Hardship Withdrawals

(A) Ability to make Hardship Withdrawals. Except as provided in Appendix
A, a Member who has not reached age 59 1⁄2 and who satisfies all of the
requirements of this Section 10.2 may make a hardship withdrawal of all or
a portion of his or her Supplemental Before-Tax Investment Account, Basic
Before-Tax Investment Account, and the amount of his or her Company
Contribution Account attributable to Prior Plan Transfers, other than the
portion of each such

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Account that represents earnings credited to the Account after December
31, 1988. A Member who has reached age 59 1⁄2 may withdraw all or a
portion of the foregoing Accounts without regard to financial hardship.

(B) Bona Fide Financial Hardship and Immediate and Heavy Financial Need
Required. A hardship withdrawal will not be permitted unless the Member
establishes to the satisfaction of the Hardship Committee that a bona fide
financial hardship exists. For this purpose, a bona fide financial
hardship means an immediate and heavy need to draw on financial resources
not reasonably available from other sources of the Member. Bona fide
financial hardships shall include (i) cash down payments and/or closing
costs associated with the purchase of a Member’s principal residence, (ii)
medical expenses for a Member, spouse or dependents, (iii) expenses
necessary for such persons to obtain medical care that are not paid or
reimbursed by insurance, (iv) room and board expenses, tuition expenses
and related educational fees for post-secondary education for such persons
for the next academic year, (v) payments to prevent the eviction of a
Member from his or her principal residence or the foreclosure of a
mortgage on such residence, and (vi) any other reasons deemed appropriate
by the Hardship Committee. A Member may demonstrate lack of other
reasonably available financial resources by disclosing details of his or
her personal and family finances. Alternatively, the Hardship Committee
may deem that the Member has no other financial resources reasonably
available if the Member agrees to suspend all Before-Tax Savings and
After-Tax Savings for a 6 month period as described in Article Four. The
Hardship Committee shall make determinations of financial hardship in a
uniform and nondiscriminatory manner, with reference to all the relevant
facts and circumstances and in accordance with applicable tax law under
Code Section 401(k).

(D) Withdrawal Limited to Financial Need (Plus Taxes). The amount of a
hardship withdrawal cannot exceed the amount of the immediate and heavy
financial need demonstrated by the Member (plus applicable taxes on the
withdrawal). For this purpose, loans and amounts withdrawn from other
Accounts will be considered.

(E) All Available Loans and Distributions must be Taken First. A
hardship withdrawal will not be permitted unless the Member has obtained
(i) all distributions (other than hardship distributions) available under
all other retirement plans (including this Plan) maintained by the
Company, including, effective November 29, 2001, distribution of all cash
dividends currently available to the Member under Section 7.6 of this Plan
and (ii) all non-taxable loans available under all retirement plans
maintained by the Company, including this Plan, provided that making the
payments on such loans does not result in a financial hardship for the
Member.

10.3 Penalty for Making Withdrawals from Certain Accounts. Matching Company
Contributions under Article 5 will be suspended for three months after the
applicable Withdrawal Valuation Date for any Member who has not
reached age 59 1⁄2 and who makes a non-hardship or hardship withdrawal of any amount from
his or her Basic After-Tax Investment Account, or any amount of Vested Matching
Company Contributions from his or her Company Contribution Account.

10.4 Form of Payment. Withdrawal payments from The Hartford Financial Services
Group, Inc. Stock Fund shall be made in the form of The Hartford Stock, except
that: (A) fractional shares will be paid in

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cash, and (B) a recipient may request that such amounts be paid in cash.
Withdrawal payments from any Investment Fund other than The Hartford Financial
Services Group, Inc. Stock Fund shall be paid in cash in a single sum.

10.5 Death after Request for Withdrawal. If a Member dies after requesting a
withdrawal, payment of the withdrawn amounts will be made (or will not be made)
in accordance with the rules in Article Nine for death after a loan request.

10.6 Direct Rollover of Withdrawals. Hardship Withdrawals do not qualify as
“eligible rollover distributions” under Article Eleven.

ARTICLE ELEVEN

DISTRIBUTIONS FROM ACCOUNTS

11.1 Types of Distributions

(A) Distribution
or Deferral for Members Under Age 70 1⁄2. Upon
Termination of Employment, a Member may request a distribution of the
value of his or her Vested Share. If a Member does not make such a
request, and the value of such Vested Share is less than $5,000, such
value will be paid to the Member in a single lump sum payment as soon as
practicable. If a Member does not make such a request, and the value of
the Member’s Vested share is $5,000 or more, the Member shall be deemed to
request a deferral of the distribution of such Vested Share until such
time that the Member reaches age 70 1⁄2. Such a Member automatically
shall become a Deferred Member, and may request a distribution of all or
part of the Vested Share at any time before reaching age 70 1⁄2 (subject
to a minimum distribution amount of $500 for any partial distribution) in
accordance with the Plan.

(B) Distributions to Certain Members who Have Reached Age 70 1⁄2.
Effective January 1, 1998 or such later date as determined by the Plan
Administrator, except as provided below, a Member who reaches age 70 1⁄2
on or after January 1, 1997 is not required to commence distribution of
his or her Vested Share until Termination of his or her Employment.
However, such a Member may request a distribution of all or part of such
Vested Share at any time after reaching age 70 1⁄2 (subject to a minimum
distribution amount of $500 for any partial distribution). A Member who
reaches age 70 1⁄2  on or after January 1, 1988 but before January 1,
1997 must have commenced distribution of his or her Vested Share by no
later than the April 1 following the year in which he or she attains age
70 1⁄2. A Deferred Member or a Member who is a “5 percent owner” as
defined in Code Section 414(q)(1) and (3) must commence distribution of
his or her Vested Share by no later than the April 1 following the year in
which he or she reaches age 70 1⁄2. The Vested Share of such Member
shall be paid under the payment method described in Section 11.6(A) below
assuming the maximum allowable number of payments based upon the Member’s
age, if permissible under the terms of that payment method. If payment
under the terms of that payment method is not permissible, the Vested
Share of the Member shall be paid in an immediate lump sum. Alternatively,
the Member may elect that his or her Vested Share be

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paid under the payment method described in Section 11.6(B) below, if
permissible under the terms of that payment method, or in an immediate
lump sum. Payment of the Vested Share of a Member who has reached age 70 1⁄2 pursuant to this Section shall be made no less frequently than
annually, and once such payment has commenced, the Member may not elect an
alternate method for payment of such Vested Share while the Member is
still an Eligible Employee.

(C) Distribution to Beneficiary in the Event of Death. Upon the
death of a Member or Deferred Member, if the value of such person’s Vested
Share shall be distributed in a lump sum to his or her Beneficiary.
However, if the value of the Vested Share is $5,000 or more: ( i ) if the
Beneficiary is a spouse, such spouse may elect to defer receipt of the
Vested Share until the year in which the Member or Deferred Member would
have reached age 70 1⁄2, or (ii) if the Beneficiary is a Non-Spouse
Beneficiary, such Beneficiary may elect to defer receipt of the Vested
Share for up to five years from the date of death of the Member or
Deferred Member or may elect to receive a periodic distribution under
Section 11.7(B), subject to such minimum distribution rules as may be
required by law or determined appropriate by the Plan Administrator. If
the value of the Vested Share to be distributed is $5,000 or more and the
Beneficiary does not file application for distribution of such Vested
Share nor elect to defer receipt of such Vested Share, ( i ) if the
Beneficiary is a spouse, then such Beneficiary shall be deemed to have
elected to defer receipt of such Vested Share until the Member or Deferred
Member would have reached age
70 1⁄2, or (ii) if the Beneficiary is a
Non-Spouse Beneficiary, then such Beneficiary shall be deemed to have
elected to defer receipt of such Vested Share until the end of the
calendar year following the calendar year in which the death of the Member
or Deferred Member occurred. However, any Beneficiary described in the
preceding sentence may file application for distribution of all or part of
such Vested Share at any time prior to the date when such distribution is
required to be made, subject to a minimum distribution of amount of $500
for partial distributions to spouses, and subject to such minimum
distribution rules as may be required by law or determined appropriate by
the Plan Administrator for partial distributions to Non-Spouse
Beneficiaries.

(D) ESOP Distributions. Notwithstanding the provisions of (A), (B), or
(C), above, and Section 11.5, effective November 29, 2001, a Member or
Deferred Member may elect, (with consent of his or her spouse if required
under Appendix (A) to commence distribution of the value of his or her
Vested Share invested in The Hartford Financial Services Group, Inc. Stock
Fund not later than one year after the end of the Plan Year—

(i) in which the Member separates from service by reason of (a)
Retirement in the case of a Member with an original hire date with
the Company before January 1, 2002, (b) separation of service on or
after reaching age 65 in the case of a Member with an original hire
date with the Company of January 1, 2002 or larger, (c) Disability,
or (d) death; or

(ii) which is the fifth Plan Year following the Plan Year in which
the Member otherwise separates from service, unless the Member is
reemployed by the Company or any subsidiary, affiliate or
predecessor of the Company before such year.

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Unless the Member or Deferred Member or Beneficiary otherwise elects,
distribution of the value of a Member’s Vested Share invested in The
Hartford Financial Services Group, Inc. Stock Fund will be made in
substantially equal periodic payments of a period not longer than the
greater of—

(x) five years; or

(y) if the fair market value of the Vested Share invested in The
Hartford Financial Services Group, Inc. Stock Fund exceeds $780,000
as of the date distribution is required to begin under this Article
Eleven, five years plus an additional one year (up to an additional
five years) for each $155,000 increment or fraction thereof by which
such value exceeds $780,000. The dollar amounts prescribed in this
paragraph shall be adjusted for cost of living increases as
prescribed by the Secretary of the Treasury.

11.2 Manner of Requesting Distribution. All requests for any distributions
permitted by this Article Eleven shall be made in a manner and by the date
required by the Plan Administrator. No distribution will be made unless the
procedures prescribed by the Plan Administrator are properly followed.

11.3 Valuation of Distribution. Distributions will be valued as of the date
that the Plan Administrator (or designee) receives a properly completed
distribution request, which date shall be treated as the Valuation Date that
applies to the distribution.

11.4 Time of Distribution. All distributions will be paid to the appropriate
payee as soon as practicable following the applicable Valuation Date. If part
of a distribution is to be made in the form of stock, the stock will be
distributed after the cash part of the distribution. Unless a Member so
elects, payment of a Member’s Vested Share shall commence no later than 60 days
after the close of the Plan Year in which the latest of the following occurs:

(1) The Member attains age 65,

(2) Occurs
the 10th anniversary of the date on which the Member commenced
participation in the Plan, or

(3) The Member terminates Service with the Company and its affiliates.

11.5 Form of Distribution. Except as otherwise provided in the Plan
(including Appendix A), distributions shall be made in a form determined under
the rules of this Section.

(A) Stock and Cash Distributions. Distributions from The Hartford
Financial Services Group, Inc. Stock Fund shall be made in the form of The
Hartford Stock, except that: (i) fractional shares will be paid in cash,
and (ii) a recipient may request that such amounts be paid in cash.
Distributions from any Investment Fund other than The Hartford Financial
Services Group, Inc. Stock Fund shall be paid in cash.

(B) Lump Sum Distributions. Distributions shall be paid in a single lump
sum, unless otherwise permitted by the Plan.

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(C) Periodic Distributions. So long as the Member or Deferred Member’s
Vested Share is at least $5,000 and the first payment is at least $1,000,
one of the two forms of periodic distribution described in Section 11.6
below may be requested by (i) a Member whose employment terminates after
reaching age 55, (ii) a Member whose employment terminates before reaching
age 55 due to Retirement provided the Member has an original hire date
with the Company before January 1, 2002, (iii) a member whose employment
terminates before reaching age 55 due to Disability, and (iv) a Deferred
Member who has reached age 55. Prior to November 29, 2001, periodic
distributions shall be made in cash. Periodic distributions that commence
or are modified on or after November 29, 2001 shall be made in the form of
The Hartford Stock, or cash, or both, as provided in (A), above.

(D) Prior Plan Transfers. Alternative methods of distribution may apply
to that portion of an Account attributable to a Prior Plan Transfer.

11.6 Distribution of Periodic Payments. A person described in Section 11.5(C)
may request one of the forms of periodic distributions described in this
Section.

(A) Annual Installments over a Selected Period of Years. Annual payments
may be made over a period of years selected by the recipient that does not
exceed the lesser of (i) 30 years, (ii) the applicable Distribution Period
set forth in Appendix A. The first of such payments shall be made as soon
as practicable after the applicable Valuation Date, and the remaining
payments shall be made annually on each anniversary thereafter. The
amount of each payment shall be determined by multiplying the value of the
recipient’s Accounts as of the applicable Valuation Date by a fraction,
the numerator of which shall be one, and the denominator of which shall be
the number of years in the selected period.

(B) Annual Installments over Expected Life. Annual payments may be made
to a Member over a period of years in an amount determined under Appendix
A. The first of such payments shall be made as soon as practicable after
the applicable Valuation Date, and the remaining payments shall be made
annually on each anniversary thereafter. The amount of each payment shall
be determined by dividing the value of the recipient’s Accounts as of the
applicable Valuation Date by the applicable Distribution Period set forth
in Appendix A based upon the Member’s attained age in the year of the
distribution.

(C) Later Distribution of Lump Sum Payment. A person who previously
requested or is otherwise receiving a distribution of periodic payments
under this Section may, at any time thereafter, request a lump sum
distribution of the value of any unpaid installments.

(D) Minimum Required Distributions. All distributions from the Plan shall
be made in accordance with Code Section 401(a)(9), including the minimum
distribution incidental benefit requirements of Section 1.401(a)(9)-2 of
Proposed Treasury Regulations. Effective January 1, 2003, notwithstanding
anything in the Plan to the contrary, all distributions from the Plan
shall be made in accordance with Code Section 401(a)(9) and Final Treasury
Regulations issued thereunder.

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11.7 Distribution in the Event of Death.

(A) Death of Member or Deferred Member after Requesting Non-Periodic
Distribution. If a Member or Deferred Member requests a non-periodic
distribution and dies after the applicable Valuation Date or the issuance
of any check or shares of The Hartford Stock for any part of such
distribution, but before negotiating any check comprising all or a portion
such distribution, the cash portion of the distribution shall be paid to
his or her estate. If such a person dies before the Valuation Date or
issuance of a check or shares of The Hartford Stock, then the distribution
shall be paid to his or her Beneficiary. For purposes of this paragraph,
a check or share of stock will be considered issued on the earlier of (i)
the date of issuance shown on the check or stock certificate, or (ii) the
Valuation Date.

(B) Death of Member or Deferred Member after Requesting Periodic
Distribution. If a Member or Deferred Member requests a periodic
distribution permitted by Section 11.6, but dies before all of the
installments comprising such distribution are paid, then if the
Beneficiary of such Member or Deferred Member is not a spouse, and if an
installment is paid with a Valuation Date that occurred before his or her
death and before the negotiation of the check comprising all or a portion
such installment, then such cash portion of the installment shall be paid
to his or her estate, and the remaining value of the Accounts in question
shall be paid to his or her Beneficiary in a single lump sum payment,
unless such Beneficiary elects to have payments made over a period not to
exceed the Beneficiary’s life expectancy. In the latter case, the first
of such payments shall commence no later than the end of the year
following the year of the Member’s death, and the remaining payments shall
be made annually thereafter. The amount of each payment shall be
determined by multiplying the value of the Accounts as of the applicable
Valuation Date by a fraction, the numerator of which shall be one, and the
denominator of which shall be the number of years remaining in the period.
If the sole Beneficiary of the Member or Deferred Member is a spouse,
then such spouse Beneficiary may elect to have payments made over a period
not to exceed the spouse’s life expectancy recalculated annually. In such
case, the first of such payments shall commence no later than the end of
the year following the year of the Member’s death, or if the Member had
not yet attained age 70 1⁄2, the year in which the Member would have
attained age 70 1⁄2., if later. Alternatively, the spouse may request a
lump sum distribution of the value of the Accounts as permitted by the
Plan (and no deferral of receipt of such value will be permitted).

(C) Death of Spouse Beneficiary. If a spouse Beneficiary with Accounts
in the Plan dies, payment of the remaining value of such Accounts shall be
made to the Beneficiary of such spouse, if any, or if none, to the estate
of such spouse, in each case such payment to be made in the form of a
single lump sum payment.

(D) Proof of Death and Rights of Beneficiaries; Disputes. The Pension
Administration Committee and/or the Plan Administrator may require and
rely on such proof of death and such evidence of the right of any
Beneficiary or other person to receive the undistributed value of the
Accounts of a deceased Member, Deferred Member or Beneficiary as
determined appropriate, and the determination of the rights of
Beneficiaries or other persons to receive payment shall be conclusive.
Payment to any Beneficiary shall be final and shall fully satisfy and
discharge the

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obligation of the Plan with respect to any and all Accounts of a deceased
Member or Deferred Member. In the event of a dispute regarding an
Account, the Pension Administration Committee may make a final
determination, or initiate or participate in any action or proceeding as
may be necessary or appropriate to determine any Beneficiary under the
Plan. During the pendency of any action or proceeding, the Pension
Administration Committee may deposit an amount equal to the disputed
payment with a court and such deposit shall relieve the Plan of all of its
obligation with respect to any such disputed Accounts. Alternatively such
Committee, at its discretion, may direct any disputed Accounts be invested
in the Investment Fund involving the least risk of loss of assets (as
determined in the sole discretion of such Committee) pending resolution of
the dispute regarding such Accounts.

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11.8 Direct Rollover of Certain Distributions.

(A) Effective Date. This Section 11.8 shall apply to distributions made
on or after December 31, 2001.

(B) Definitions. For purposes of this Section, the following definitions
shall apply:

(i) “Distributee” includes a Member or Deferred Member, his or her
spouse Beneficiary, and any spouse or former spouse who is an
alternate payee under QDRO pursuant to Article Twelve.

(ii) “Eligible Rollover Distribution” is a distribution of any part
of a person’s Vested Share, except: (a) any distribution that is one
of a series of substantially equal periodic payments made for the
life or life expectancy of the Distributee, or for a specified
period of ten years or more, (b) any distribution required under
Code Section 401(a)(9), (c) any hardship withdrawal under Section
10.2 of the Plan, (d) any portion of a distribution not includable
in gross income, and (e) any other distribution that does not
qualify as an eligible rollover distribution under the Code. A
portion of a distribution shall not fail to be an eligible rollover
distribution merely because the portion consists of after-tax
contributions which are not includible in gross income. However,
such portion may be transferred only to an individual retirement
account or annuity described in Code Section 408(a) or 408(b), or to
a qualified defined contribution plan described in Code Section
401(a) or 403(a) that agrees to separately account for amounts so
transferred, including separately accounting for the portion of such
distribution which is includible in gross income and the portion of
such distribution which is not so includible.

(iii) “Eligible Retirement Plan” means (a) an individual retirement
account described in Code Section 408(a), (b) an individual
retirement annuity described in Code Section 408(b), (c) an annuity
plan described in Code Section 403(a), (d) a qualified plan
described in Code Section 401(a) that accepts the Eligible Rollover
Distribution, (e) an annuity contract described in Code Section
403(b), or (f) an eligible plan under Code Section 457(b) which is
maintained by a state, a political subdivision of a state, or any
agency or instrumentality of a state or political subdivision of a
state, and which agrees to separately account for amounts
transferred into such plan from this Plan. The definition of
Eligible Retirement Plan shall also apply in the case of a
distribution to a surviving spouse, or to a spouse or former spouse
who is the alternate payee under a qualified domestic relations
order, as defined in Code Section 414(p).

(iv) “Direct Rollover” means a payment by the Plan directly to the
Eligible Retirement Plan specified by the distributee in cash and/or
shares.

(C) Ability to Request a Direct Rollover. If the Plan Administrator
determines that a withdrawal or distribution hereunder qualifies as an
Eligible Rollover Distribution, the

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Distributee may request a Direct Rollover of all or part of such
withdrawal or distribution to one or two Eligible Retirement Plans that
accept such Direct Rollover.

(D) Direct Rollovers Not Permitted in Certain Circumstances. In the event
that the provisions of this Section 11.8 or any part hereof ceases to be
required by law, than this Section or the part not required automatically
shall be of no further force or effect.

11.9 Elective Transfers From Plan. A distribution or withdrawal from the Plan
shall be eligible for an elective transfer to a qualified transferee employee
plan, and as such will generally be treated as a distribution of a Member’s
accrued benefit under the Plan (but shall not be treated as a distribution for
purposes of the minimum distribution requirements of Code Section 401(a)(9)),
only if all of the following requirements are satisfied: (A) the transfer must
be payable proximate to, and solely on account of, a disposition of assets or a
subsidiary described in Code Sections 401(k)(10), (B) the transfer must
satisfy the requirements of Code Section 414(l), (C) the transfer must be
conditioned upon a voluntary, fully informed election by the Member to make the
transfer, and in making such election, the Member must have the option of
retaining his or her Account benefits (including all optional forms of benefit)
under this Plan, (D) if Code Sections 401(a)(11) and 417 otherwise apply to the
Account, the spousal consent requirements of those Section must be met with
respect to the transfer, (E) the notice requirement described in Code Section
417, if applicable, must be met with respect to the Member and spousal transfer
election, (E) the Accounts to be transferred must be eligible for immediate
distribution or withdrawal under the Plan, (F) the amount of the benefit
transferred must be equal to the transferor’s entire nonforfeitable Account
balance under the Plan, and (G) the Member must be fully vested in the
transferred benefit under the transferee plan.

11.10 Procedure where Person is Unable to be Located. If the Plan
Administrator is unable to locate any person who is or may become entitled to a
benefit under the Plan because the identity or whereabouts of the person cannot
be ascertained, the Plan Administrator shall give written notice addressed to
such person at his or her last known address as shown on the records of the
Company, unless the amount of such benefit is $500.00 or less. This amount
shall automatically be forfeited, without notice, if determined appropriate by
the Plan Administrator, and such forfeiture shall be applied to reduce future
Company Contributions, subject to reinstatement, if a proper application for
such amount is subsequently made. Any reinstatement shall be made with
interest, which for purposes of this Section means, for any particular year,
interest at the January first Federal mid-term interest rate published by the
Internal Revenue Service for that year, such January first rate to apply on a
prorated basis to all months in such year, and such interest to be compounded
annually. If the amount of such benefit is greater than $500.00, the amount of
such benefit for such person shall continue to be maintained in the Plan until
the earlier of: (A) the date such person makes application therefor, (B) the
third anniversary of the date the Plan Administrator first gave notice to such
person as provided in this Section, or (C) the day before such benefit would
otherwise escheat under any applicable law. If the Plan Administrator, by
making reasonably diligent effort, cannot locate such person within the time
described in the preceding sentence, the amount of such person’s benefit under
the Plan shall be forfeited, and such forfeiture shall be applied to reduce
future Company Contributions, subject to reinstatement, upon proper application
as stated in this section.

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ARTICLE TWELVE

QUALIFIED DOMESTIC RELATIONS ORDERS

12.1 Procedures for QDROs. The Pension Administration Committee shall
establish procedures consistent with Code Section 414(p) to determine the
qualified status of any Domestic Relations Order, which shall be referred to
herein as a “DRO” and which means a judgment, decree or order or any
modification thereof ((including approval of a property settlement agreement)
that (A) relates to the provision of child support, alimony payments or marital
property rights to a spouse, former spouse, child, or other dependent of a
Member, and (B) is made pursuant to a state domestic relations law (including a
community property law). Such Committee shall also establish procedures to
administer any QDRO (as defined below), and to provide all notices required by
Code Section 414(p) to the Member, and to the Alternate Payee, which shall
mean a spouse, former spouse, child or other dependent of a Member who is
recognized by a DRO as having a right to receive all, or a portion of, the
benefits payable under the Plan with respect to such Member. All procedures so
established shall be binding on all Members, Deferred Members and Alternate
Payees.

12.3 Determination of QDRO Status. Within a reasonable period of time after
the receipt of a DRO (or any modification thereof), the Pension Administration
Committee or designee shall determine whether such order qualifies as a
qualified domestic relations order under Code Section 414(p). Any DRO that so
qualifies shall be considered a “QDRO” for purposes of this Article Twelve. A
DRO shall not fail to qualify as a QDRO merely because it provides for payment
to the Alternate Payee before the Member’s Termination of Employment.

12.4 Establishment of Temporary Holding Account. If, during any period in
which the issue of whether a DRO qualifies as a QDRO is being determined, an
Alternate Payee would be entitled to payment if the order were determined to be
a QDRO, the Pension Administration or designee shall cause to be segregated in
a separate account all amounts that would be payable to the any Alternate Payee
during such period if the order were determined to be a QDRO. Notwithstanding
anything herein to the contrary, (A) any amounts held in such an account shall
not be eligible for withdrawal or distribution from the Plan, and (B) such
amounts shall not be counted in determining the maximum amount available for a
loan under Article Nine.

12.5 Payment from Temporary Holding Account in Certain Cases. If, by the
expiration of the 18 month period beginning on the date the first payment would
be required to be made to an Alternate Payee under a DRO, either (i) it is
determined that the DRO does not qualify as a QDRO, or the issue as to whether
the DRO so qualifies has not been resolved, the Pension Administration
Committee or designee shall cause to be paid all amounts which have been
segregated pursuant to Section 12.4, including any earnings having accrued
thereon, to the person who would have been entitled to such amounts if there
had been no DRO. Notwithstanding the foregoing, if the Member or his or her
Beneficiaries are not yet entitled, or have not elected, to receive benefit
payments under the Plan, such segregated amounts, including all earnings having
accrued thereon, shall be restored to the Member’s Accounts and invested in
accordance with the investment election most recently submitted by the Member
under Article Eight.

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12.6 Payment to Alternate Payee of Order if Determined to be a QDRO. If a QDRO
is determined to exist, (i) the Trustee shall be instructed to apply, on a
prospective basis, the terms and provisions of such QDRO, and (ii) any unpaid
amounts segregated under this Article Twelve shall be paid in accordance with
the Plan, including any earnings having accrued thereon, shall be paid in
accordance to the applicable Alternate Payee in a lump sum amount as soon as
practicable thereafter.

12.7 Subsequent Determination or Order to be Applied Prospectively. If ,
after the expiration of the 18-month period beginning on the date the first
payment would be required to be made to an Alternate Payee under a DRO, such
DRO is determined to qualify as a QDRO, such QDRO shall be applied
prospectively only.

ARTICLE THIRTEEN

GENERAL MATTERS

RELATING TO COMMITTEES

13.1 Appointment of Committees. The Board of Directors of Hartford Fire has
appointed a Pension Administration Committee, an Investment and Savings Plan
Investment Committee, and a Hardship Committee, each such Committee to be
comprised of the number of members set forth herein. On and after June 1,
2004, each Committee in its discretion shall appoint additional members to the
respective Committee and accept resignations from existing members, which
appointments and acceptances will be final unless otherwise determined by the
Board of Directors of Hartford Fire. Each Committee shall have a Chairman as
designated by the Board of Directors of Hartford Fire prior to June 1, 2004 (or
as subsequently designated by the Committee) from among its regular members,
and shall also designate a Secretary who may be, but need not be, one of the
members thereof. Any person so appointed may resign at any time by delivering
his or her written resignation to the Secretary of Hartford Fire and the
Chairman or Secretary of his or Committee.

The Pension Administration Committee shall be comprised of not less than five
persons. The Investment and Savings Plan Investment Committee shall be
comprised of not less than four persons, and the Hardship Committee shall be
comprised of not less than three persons. Notwithstanding any vacancies, the
Pension Administration Committee and the Investment and Savings Plan Investment
Committee each may act as long as there are at least three members thereof, and
the Hardship Committee may act as long as there are at least two members
thereof.

13.2 Committees to be Named Fiduciaries. Each Committee appointed pursuant to
the Plan is designated as a named fiduciary within the meaning of Section
402(a) of ERISA.

13.3 Authority of Committees. Each Committee shall have the authority, powers
and responsibilities set forth in the Plan, and shall also have such authority,
powers and responsibilities as may from time to
time be delegated or allocated to them by resolutions of the Board of
Directors, including, but not limited to, powers reserved to the Board of
Directors to the extent specifically delegated to a particular Committee by the
Board of Directors.

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13.4 Action by Committees. Action by each Committee may be taken by majority
vote of its members and/or alternate members at a meeting upon such notice, or
upon waiver of notice, and at such time and place as each Committee may
determine from time to time; or action may be taken by written consent of a
majority of the members of the Committee without a meeting with the same effect
for all purposes as if assented to at a meeting.

13.5 Policies and Procedures of Committees. Each Committee shall establish such
policies, procedures, rules and regulations as such Committees may deem
necessary to carry out the provisions of the Plan and transactions of their
business.

13.6 Appointment of Subcommittees. Each Committee may appoint from among
their members such subcommittees with such powers as may be determined
appropriate by the appointing Committee, and each may authorize one or more of
its members or any agent to execute or deliver any instrument, make any
payment, or take any other action on behalf of the appointing Committee.

13.7 Delegation of Committee Authority. Each Committee may in its sole
discretion delegate to one or more of its members or alternate members, or to
an administrator or manager, or to such other individual or agent as may be
selected by the Committee, all or a portion of its authority, powers and
responsibilities, including the authority to supervise the conduct of the daily
affairs of the Committee, or to take any other action on behalf of the
delegating Committee as may be determined appropriate by the Committee in its
sole discretion (including the execution or delivery of any instrument or the
making of any payment on behalf of the Committee), each of which of the
foregoing shall be carried out in accordance with the provisions of the Plan
and any policies which may from time to time be established by the delegating
Committee.

13.8 Use of Experts by Committees. Each Committee may retain counsel and other
independent advisors, employ agents and provide for such clerical, accounting
and other services as it may require in carrying out its responsibilities under
the Plan. To the extent permitted by law, and to the extent not otherwise paid
by the Company, expenses associated with such services shall be paid from the
assets of the Plan.

13.9 Compensation of Committee Members. No member of any Committee shall
receive any compensation for his or her services as such, and except as
required by law, no bonds or other security shall be required of him or her in
such capacity in any jurisdiction.

13.10 Liability of Committee Members. Each of the members of the Committees
shall use that degree of care, skill, prudence and diligence in carrying out
their duties that a prudent person, acting in a like capacity and familiar with
such matters, would use in the conduct of a similar situation. Committee
members shall not be liable for the breach of fiduciary responsibility of
another fiduciary unless: (A) he or she participates knowingly in, or
knowingly undertakes to conceal, an act or omission of such other fiduciary,
knowing such act or omission is a breach, (B) by his or her failure to
discharge his or her duties solely in the interest of the Members and other
persons entitled to benefits under the Plan, for the exclusive purpose of
providing benefits and defraying reasonable expenses of administering the Plan
not met by the Company, he or she has enabled such other fiduciary to commit a
breach, (C) he or she has

- 53 -

 

knowledge of a breach by such other fiduciary and does not make reasonable
efforts to remedy the breach, or (D) if the Committee of which he or she is a
member improperly allocates responsibilities among its members or to others and
he or she fails to review prudently such allocation.

ARTICLE FOURTEEN

ADMINISTRATION OF PLAN -

PENSION ADMINISTRATION COMMITTEE

14.1 Composition of Pension Administration Committee. The Pension
Administration Committee shall be comprised of not less than five members.
Notwithstanding any vacancies in memberships, the Pension Administration
Committee may act so long as at least three memberships are filled.

14.2 Authority and Responsibilities of Pension Administration Committee. The
Pension Administration Committee shall be responsible, except as otherwise
herein expressly provided, for general supervision of the administration of the
Plan. Said Committee shall also have such authority, powers and
responsibilities as are set forth in the Plan or may be delegated by the Board
of Directors as provided in Article Thirteen. Said Committee shall also have
the right to exercise powers reserved to the Board of Directors hereunder,
including the right to amend the Plan, to the extent that, in the judgment of
said Committee, the exercise of such powers does not involve any material cost
to the Company.

14.3 Confidentiality of Information. For purposes of the regulations under
Section 404(c) of ERISA, the Pension Administration Committee shall be
designated the fiduciary responsible for safeguarding the confidentiality of
all information relating to the purchase, sale and holding of employer
securities and the exercise of shareholder rights appurtenant thereto. The
Pension Administration Committee shall safeguard such information pursuant to
written procedures providing for such confidentiality. In addition, for
purposes of avoiding any situation for undue employer influence in the exercise
of any shareholder rights, the Pension Administration Committee shall appoint
an independent fiduciary, who shall not be affiliated with any sponsor of the
Plan, to ensure the maintenance of confidentiality pursuant to the regulations
under Section 404(c) of ERISA.

14.4 Interpretation of the Plan. Except as to matters which are required by
law to be determined or performed by the Board of Directors, or which from time
to time the Board of Directors may reserve to itself or allocate or delegate to
officers of Hartford Fire or to another Committee, the Pension Administration
Committee shall have the full discretionary authority to determine all
questions and to make all factual determinations regarding any and all matters
arising in the administration, interpretation and application of the Plan,
including but not limited to the right to remedy possible ambiguities,
inequities, inconsistencies or omissions, and including but not limited to
questions of interpretation with respect to eligibility to participate,
employment status, amount and timing of benefits payable under the Plan and all
other definitions and questions of interpretation. Such determinations and
interpretations shall be final, conclusive and binding on all parties who have
a claim or interest under the Plan.

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14.5 Delegation of Authority to Plan Administrator. The Pension
Administration Committee may delegate to the Plan Administrator or other
administrator the responsibility of administering and operating the details of
the Plan in accordance with the provisions of the Plan and any policies which
may from time to time be established by the Pension Administration Committee.
The Plan Administrator shall be Hartford Fire’s Vice President, Employee
Benefits (or successor or other person holding a similar position). Except as
to matters which are required by law to be determined or performed by the Board
of Directors, or which from time to time the Board of Directors may reserve to
itself or allocate or delegate to officers of Hartford Fire or to another
Committee, and except as otherwise provided in the Plan or by the Pension
Administration Committee, the Plan Administrator shall have the full
discretionary authority to determine all questions and to make all factual
determinations regarding any and all matters arising in the administration,
interpretation and application of the Plan, including but not limited to the
right to remedy possible ambiguities, inequities, inconsistencies or omissions,
and including but not limited to questions of interpretation with respect to
eligibility to participate, employment status, amount and timing of benefits
payable under the Plan and all other definitions and questions of
interpretation. Such determinations and interpretations shall be final,
conclusive and binding on all parties who have a claim or interest under the
Plan.

ARTICLE FIFTEEN

MANAGEMENT OF INVESTMENT FUNDS -

INVESTMENT AND SAVINGS PLAN INVESTMENT

COMMITTEE

15.1 Composition of Investment and Savings Plan Investment Committee. The
Investment and Savings Plan Investment Committee shall be comprised of not less
than four members. Notwithstanding any vacancies in memberships, the Investment
and Savings Plan Investment Committee may act so long as at least three
memberships are filled.

15.2 Authority and Responsibilities of Investment and Savings Plan Investment
Committee. The Investment and Savings Plan Investment Committee shall be
responsible, except as otherwise herein expressly provided, for directing and
coordinating all activity relating to the investment management of the assets
of the Plan. Said Committee shall also have such authority, powers and
responsibilities as are set forth in the Plan or may be delegated by the Board
of Directors as provided in Article Thirteen, including, but not limited to the
following: (A) Establishment of one or more trusts for the Plan and any
funding agreements for the Plan, (B) Selection and appointment of the Trustee
and any funding agents, (C) Provision, consistent with the provisions of the
Plan and applicable trusts, of direction to the Trustee, which may involve but
need not be limited to direction of investment of all or a part of the Plan
assets, and (D) Appointment and provision for use of investment advisors and
investment managers. In discharging the foregoing responsibilities, the
Investment and Savings Plan Investment Committee shall evaluate and monitor the
investment performance of the Trustee and investment managers, if any.

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Notwithstanding any other provisions of the Plan to the contrary, to the extent
that the Pension Fund Trust and Investment Committee, as constituted on May 31,
2004, retains oversight with respect to a specific fiduciary matter, (i) such
Pension Fund Trust and Investment Committee shall have those duties and
responsibilities hereunder with respect to such matter as the Investment and
Savings Plan Investment Committee would have had with respect to such matter
but for the Pension Fund Trust and Investment Committee’s continued oversight,
and (ii) the Investment and Savings Plan Investment Committee shall have no
duty or responsibility therefor, unless and until the Pension Fund Trust and
Investment Committee transfers responsibility for such matter to the Investment
and Savings Plan Investment Committee.

15.3 Trust Fund. All of the funds of the Plan shall be held by a Trustee
appointed from time to time by the Investment and Savings Plan Investment
Committee in one or more trusts under a trust instrument or instruments
approved or authorized by said Committee for use in providing the benefits of
the Plan; provided that no part of the corpus or income of the Trust Fund shall
be used for, or diverted to, purposes other than for the exclusive benefit of
Members, Deferred Members and Beneficiaries.

15.4 Reports to Members and Deferred Members. At least annually at a time to
be determined by the Pension Administration Committee, each Member and Deferred
Member shall be furnished a statement setting forth the value of each of his or
her Accounts, together with a statement of the amounts contributed to each such
Account by the Member or Deferred Member and by the Company and the vested
amount of the Company Contribution Account or the earliest time a portion of
the Company Contribution Account will become vested.

15.5 Fiscal Year. The fiscal year of the Plan and the trust shall end on the
30th day of December in 1997, and shall end on the 31st day of December in
years after 1997 or such other date as may be designated by the Investment and
Savings Plan Investment Committee.

ARTICLE SIXTEEN

HARDSHIP WITHDRAWALS -

HARDSHIP COMMITTEE

16.1 Composition of Hardship Committee. The Hardship Administration Committee
shall be comprised of not less than three members. Notwithstanding any
vacancies in memberships, the Hardship Committee may act so long as it has at
least two memberships are filled.

16.2 Authority and Responsibilities of Hardship Committee. The Hardship
Committee shall be responsible, except as otherwise herein expressly provided,
for determining whether a bona fide financial hardship exists as a condition
for a Member’s withdrawal from his or her Supplemental Before-Tax Investment
Account and his or her Basic Before-Tax Investment Account under the Plan.
Said Committee shall also have such authority, powers and responsibilities as
are set forth in the Plan or may be delegated by the Board of Directors as
provided in Article Thirteen.

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16.3 Determination of Financial Hardship. In determining whether a bona fide
financial hardship exists in a particular case, the Hardship Committee shall
take into account all pertinent facts and circumstances and shall base its
determination on the meaning of the term hardship under the applicable tax
laws, including cases and Internal Revenue Service guidelines. A determination
by the Hardship Committee as to the existence or absence of a hardship shall be
final, conclusive and binding on all parties.

ARTICLE SEVENTEEN

GENERAL AND ADMINISTRATIVE PROVISIONS

17.1 No Right to Employment. Nothing herein contained nor any action taken
under the provisions hereof shall be construed as giving any Employee the right
to be retained in the employ of the Company.

17.2 Inalienability of Benefits. Except as specifically provided in the Plan
or as may be required under the terms of a QDRO, or pursuant to the
requirements of Code Section 401(a)(13(C), or as applicable law may otherwise
require, no benefit under the Plan shall be subject in any manner to
anticipation, alienation, sale, transfer, assignment, pledge, encumbrance or
charge, and any attempts so to do shall be void, nor shall any such benefit be
in any manner liable for or subject to debts, contracts, liabilities,
engagements or torts of the person entitled to such benefit; and in the event
that the Plan Committee shall find that any Member, Deferred Member or
Beneficiary who is or may become entitled to benefits hereunder has become
bankrupt or that any attempt has been made to anticipate, alienate, sell,
transfer, assign, pledge, encumber or charge any of his or her benefits under
the Plan, except as specifically provided in the Plan or as applicable law may
otherwise require, then such benefit shall cease and terminate, and in that
event the Plan Committee shall hold or apply the same to or for the benefit of
such Member, Deferred Member or Beneficiary who is or may become entitled to
benefits hereunder, his or her spouse, children, parents or other blood
relatives, or any of them.

17.3 Source of Benefit Payments. Benefits under the Plan shall be payable only
out of the Trust Fund, and the Company shall not have any legal obligation,
responsibility or liability to make any direct payment of benefits under the
Plan. Neither the Company nor the Trustee guarantees the Trust Fund against any
loss or depreciation or guarantees the payment of any benefit hereunder. No
person shall have any rights under the Plan with respect to the Trust Fund, or
against the Company, except as specifically provided for herein.

17.4 Payment of Expenses. Direct charges and expenses arising out of the
purchase or sale of securities and taxes levied on or measured by such
transactions, and any investment management fees, with respect to any fund, may
be paid in part by the Company. Any such charges, expenses, taxes and fees not
paid by the Company shall be paid from the fund with respect to which they are
incurred. An annual charge to the Trust Fund of up to 0.25% of the market
value of the assets held by such Trust Fund shall be charged and applied to
satisfy expenses incurred in conjunction with Plan administration, including,
but not limited to, investment management, Trustee, record keeping, audit fees,
fees for legal services to the extent permitted by applicable law, and expenses
of the Investment and Savings Plan

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Investment Committee, the Pension Administration Committee, and the Hardship
Committee described in Section 13.8; the Company shall pay all other expenses
reasonably incurred in administering the Plan

17.5 Relief from Liability. The Plan is intended to constitute a Plan as
described in Section 404(c) of ERISA and Title 29 of the Code of Federal
Regulations Section 2550.404c-1. The Plan fiduciaries are relieved of any
liability for any losses that are the direct and necessary result of investment
instructions given by any Member, Deferred Member or Beneficiary.

17.6 Uniform Action by Certain Committees. Action by the Pension
Administration Committee and the Hardship Committees shall be uniform in nature
as applied to all persons similarly situated, and no such action shall be taken
which will discriminate in favor of any Members who are Highly Compensated
Employees.

17.7 Amendment of Plan. The Board of Directors reserves the right at any time
and from time to time, and retroactively if deemed necessary or appropriate to
conform with governmental regulations or other policies, to modify or amend in
whole or in part any or all of the provisions of the Plan; provided that no
such modification or amendment shall (A) make it possible for any part of the
funds of the Plan to be used for, or diverted to, purposes other than for the
exclusive benefit of Members, Deferred Members and Beneficiaries, or (B)
increase the duties of the Trustee without its consent thereto in writing.
Except
as may be required to conform with governmental regulations, no such amendment
shall adversely affect the rights of any Member or Deferred Member with respect
to contributions made on his or her behalf prior to the date of such amendment.

17.8 Merger or Consolidation of Plan. The Plan may not be merged or
consolidated with, nor may its assets or liabilities be transferred to, any
other plan unless each Member or Deferred Member under the Plan would, if the
resulting plan were then terminated, receive a benefit immediately after the
merger, consolidation, or transfer which is equal to or greater than the
benefit he or she would have been entitled to receive immediately before the
merger, consolidation, or transfer if the Plan had then terminated.

17.9 Termination of Plan. The Plan is entirely voluntary on the part of the
Company. The Board of Directors reserves the right at any time to terminate the
Plan, the trust agreement and the trust hereunder or to suspend, reduce or
partially or completely discontinue contributions thereto. In the event of such
termination or partial termination of the Plan or complete discontinuance of
contributions, the interests of Members and Deferred Members shall
automatically become nonforfeitable. In the event of such termination or
partial termination or complete discontinuance, any forfeitures not previously
applied in accordance with Article Five shall be credited ratably to the
Accounts of all Members and Deferred Members in proportion to the amounts of
Matching Company Contributions made under Article Five credited during the
current calendar year, or, if no Matching Company Contributions have been made
during the current calendar year, then in proportion to such Matching Company
Contributions during the last previous calendar year during which such Matching
Company Contributions were made.

17.10 Headings and Word Usage. The headings used in this Plan are used for
convenience of reference and in the case of any conflict, the text of the Plan,
rather than any headings, shall control. Words used in the singular are
intended to include the plural, whenever appropriate.

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17.11 Construction. The Plan shall be construed, regulated and administered
in accordance with the
laws of the State of New York, subject to the provisions of applicable Federal
laws.

17.12 Tax Withholding. The Plan Administrator shall have the right, to the
extent not prohibited by law, to make such provisions as deemed appropriate in
its sole discretion to satisfy any obligation of the Company to withhold
federal, state or local income or other taxes incurred by reason of the
operation of the Plan or benefits provided under the Plan, including but not
limited to at any time (i) requiring a Participant to submit payment to the
Company for such taxes before paying benefits under the Plan or making
settlement of any amount due under the Plan, (ii) withholding such taxes from
wages or other amounts due to a Participant before paying benefits under the
Plan or making settlement of any amount due under the Plan, (iii) making
settlement of any amount due under the Plan part in shares of common stock of
The Hartford and part in cash to facilitate satisfaction of such withholding
obligations, or (iv) receiving shares of common stock of the Hartford already
owned by a Participant or withholding such shares otherwise due to a
Participant in an amount determined necessary to satisfy such withholding
obligations.

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APPENDIX A: Distribution Table

	 	 	 
	 Age of the Employee
	 	Distribution Period

	70
	 	27.4
	71
	 	26.5
	72
	 	25.6
	73
	 	24.7
	74
	 	23.8
	75
	 	22.9
	76
	 	22.0
	77
	 	21.2
	78
	 	20.3
	79
	 	19.5
	80
	 	18.7
	81
	 	17.9
	82
	 	17.1
	83
	 	16.3
	84
	 	15.5
	85
	 	14.8
	86
	 	14.1
	87
	 	13.4
	88
	 	12.7
	89
	 	12.0
	90
	 	11.4
	91
	 	10.8
	92
	 	10.2
	93
	 	9.6
	94
	 	9.1
	95
	 	8.6
	96
	 	8.1
	97
	 	7.6
	98
	 	7.1
	99
	 	6.7
	100
	 	6.3
	101
	 	5.9
	102
	 	5.5
	103
	 	5.2
	104
	 	4.9
	105
	 	4.5
	106
	 	4.2
	107
	 	3.9
	108
	 	3.7
	109
	 	3.4
	110
	 	3.1
	111
	 	2.9
	112
	 	2.6
	113
	 	2.4
	114
	 	2.1
	115 and older
	 	1.9

- 60 -

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