Document:

EX-4.D

Exhibit 4-d

ROCKWELL AUTOMATION

RETIREMENT SAVINGS PLAN

FOR

REPRESENTED HOURLY EMPLOYEES

(Restated, Effective as of January 1, 2008)

			
	 	 	 
	 
	 	Plan 053
	 
	 	93764

 

 

Table of Contents

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	 	 	 	 	 	 
	ARTICLE I: DEFINITIONS	 	 	2	 
	1.010
	 	Accounts	 	 	2	 
	1.020
	 	Affiliated Company	 	 	2	 
	1.030
	 	After-tax Contribution Account	 	 	2	 
	1.040
	 	After-tax Contribution Percentage Limit	 	 	2	 
	1.045
	 	Automotive Spin-off	 	 	3	 
	1.050
	 	Average After-tax Contribution Percentage	 	 	3	 
	1.060
	 	Average Pre-tax Contribution Percentage	 	 	4	 
	1.070
	 	Base Compensation	 	 	4	 
	1.080
	 	Basic After-tax Contribution	 	 	4	 
	1.090
	 	Basic Pre-tax Contribution	 	 	4	 
	1.100
	 	Beneficiary	 	 	4	 
	1.110
	 	Board of Directors	 	 	4	 
	1.115
	 	Catch-up Contribution	 	 	4	 
	1.120
	 	Code	 	 	4	 
	1.115
	 	Collins Spin-off	 	 	4	 
	1.130
	 	Company	 	 	5	 
	1.140
	 	Company Contribution Account	 	 	5	 
	1.145
	 	Company Matching Contributions	 	 	5	 
	1.150
	 	Compensation	 	 	5	 
	1.155
	 	Conexant	 	 	5	 
	1.160
	 	Conexant Stock Fund	 	 	5	 
	1.165
	 	Conexant Wireless Spin-off	 	 	5	 
	1.170
	 	[Reserved]	 	 	5	 
	1.180
	 	Effective Date	 	 	5	 
	1.190
	 	Eligible Employee	 	 	5	 
	1.200
	 	Eligible Retirement Plan	 	 	5	 
	1.210
	 	Employee	 	 	6	 
	1.215
	 	Employee Benefit Plan Committee	 	 	6	 

			
	 	 	 
	 
	 	Plan 053
	 
	 	Restated 1-1-08

i

 

Table of Contents
(continued)

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	 	 	 	 	 	 
	1.220
	 	Employee Benefits Appeals Committee	 	 	6	 
	1.225
	 	Employment Commencement Date	 	 	6	 
	1.230
	 	Employment Severance Date	 	 	6	 
	1.240
	 	ERISA	 	 	6	 
	1.250
	 	5% Owner	 	 	6	 
	1.255
	 	[Reserved]	 	 	7	 
	1.260
	 	Fund(s)	 	 	7	 
	1.270
	 	Hardship	 	 	7	 
	1.280
	 	Highly Compensated Employee Group	 	 	7	 
	1.290
	 	Investment Fund	 	 	8	 
	1.300
	 	Layoff	 	 	8	 
	1.310
	 	Leave	 	 	8	 
	1.320
	 	Meritor	 	 	8	 
	1.330
	 	Meritor Stock Fund	 	 	8	 
	1.335
	 	MindSpeed	 	 	8	 
	1.340
	 	MindSpeed Stock Fund	 	 	8	 
	1.350
	 	Named Fiduciary	 	 	8	 
	1.360
	 	Non-Highly Compensated Employee Group	 	 	8	 
	1.370
	 	Participant	 	 	8	 
	1.380
	 	Participant Contribution	 	 	8	 
	1.390
	 	Participating Unit	 	 	9	 
	1.400
	 	Plan	 	 	9	 
	1.410
	 	Plan Administrator	 	 	9	 
	1.420
	 	Plan Year	 	 	9	 
	1.425
	 	Power Systems Sale	 	 	9	 
	1.430
	 	Pre-tax Contribution Account	 	 	9	 
	1.440
	 	Pre-tax Contribution Percentage Limit	 	 	9	 
	1.450
	 	Reemployment Date	 	 	10	 
	1.455
	 	Retirement	 	 	10	 

-ii-

 

Table of Contents
(continued)

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	 	 	 	 	 	 
	1.460
	 	[Reserved]	 	 	10	 
	1.470
	 	Rockwell	 	 	10	 
	1.480
	 	Rockwell Automation Stock Fund	 	 	10	 
	1.490
	 	Rockwell Automation Stock Fund A	 	 	10	 
	1.500
	 	Rockwell Automation Stock Fund B	 	 	10	 
	1.505
	 	Rockwell Collins	 	 	11	 
	1.510
	 	Rockwell Collins Stock Fund	 	 	11	 
	1.515
	 	[Reserved]	 	 	11	 
	1.520
	 	Rollover Account	 	 	11	 
	1.525
	 	Rollover Contributions	 	 	11	 
	1.530
	 	Semiconductor Spin-off	 	 	11	 
	1.540
	 	Skyworks	 	 	11	 
	1.550
	 	Skyworks Stock Fund	 	 	11	 
	1.560
	 	Special Stock Funds	 	 	11	 
	1.570
	 	Supplemental After-tax Contribution	 	 	11	 
	1.575
	 	Supplemental Pre-tax Contributions	 	 	11	 
	1.580
	 	Tender Offer	 	 	11	 
	1.590
	 	Transfer Contributions	 	 	11	 
	1.600
	 	Trust Agreement	 	 	12	 
	1.610
	 	Trust Fund	 	 	12	 
	1.620
	 	Trustee	 	 	12	 
	1.630
	 	Valuation Date	 	 	12	 
	1.640
	 	Vesting Service	 	 	12	 
	 
	 	 	 	 	 	 
	ARTICLE II: PARTICIPATION AND CONTRIBUTIONS	 	 	13	 
	2.010
	 	Participation	 	 	13	 
	2.020
	 	Basic Contributions	 	 	13	 
	2.030
	 	Supplemental Contributions	 	 	14	 
	2.040
	 	Changes Between Pre-tax and After-tax Contributions	 	 	15	 
	2.045
	 	Catch-up Contributions	 	 	15	 

-iii-

 

Table of Contents
(continued)

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	 	 	 	 	 	 
	2.050
	 	Rollover Contributions	 	 	15	 
	2.060
	 	Matching Contributions	 	 	15	 
	2.070
	 	Rules Concerning Matching Contributions	 	 	16	 
	 
	 	 	 	 	 	 
	ARTICLE III: CONTRIBUTION LIMITATIONS	 	 	18	 
	3.010
	 	Limitations on Employee Pre-tax Contributions	 	 	18	 
	3.015
	 	Limitations on After-tax Contributions and Matching Contributions	 	 	20	 
	3.020
	 	Limits for Catch-up Contributions	 	 	22	 
	3.030
	 	Incorporation by Reference	 	 	22	 
	 
	 	 	 	 	 	 
	ARTICLE IV: PLAN INVESTMENTS	 	 	23	 
	4.010
	 	Investment Elections	 	 	23	 
	4.020
	 	Transfers from Investment Funds	 	 	23	 
	4.025
	 	Transfers from Special Stock Funds	 	 	23	 
	4.030
	 	Transfers from Rockwell Automation Stock Fund A and the Rockwell	 	 	 	 
	 
	 	Automation Stock Fund	 	 	24	 
	4.040
	 	Mandatory Transfer from the Rockwell Automation Stock Fund	 	 	24	 
	4.050
	 	General Transfer Rules and Limitations	 	 	24	 
	4.060
	 	Participant’s Accounts	 	 	25	 
	4.070
	 	Valuation and Participant Statements	 	 	25	 
	 
	 	 	 	 	 	 
	ARTICLE V: EMPLOYMENT TERMINATION BENEFITS	 	 	26	 
	5.010
	 	Vesting	 	 	26	 
	5.020
	 	Retirement, Death, Termination of Employment	 	 	27	 
	5.030
	 	Form of Distributions — Stock or Cash	 	 	27	 
	5.040
	 	Payment Method for Distributions to Retiring Participants	 	 	28	 
	5.050
	 	Participant’s Consent to Distribution of Benefits	 	 	28	 
	5.060
	 	Cashout Forfeitures and Repayments	 	 	29	 
	5.070
	 	Distributions to Beneficiaries	 	 	29	 
	5.080
	 	Transfer of Distribution Directly to Eligible Retirement Plan	 	 	30	 
	5.090
	 	Uncashed Checks	 	 	30	 
	 
	 	 	 	 	 	 
	ARTICLE VI: WITHDRAWALS AND LOANS	 	 	31	 

-iv-

 

Table of Contents
(continued)

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	6.010
	 	Withdrawals from Accounts by Participants under Age 59 1/2	 	 	31	 
	6.020
	 	Withdrawal from Accounts by Participants Over Age 59-1/2	 	 	32	 
	6.030
	 	Hardship Withdrawals from Pre-tax Accounts	 	 	33	 
	6.040
	 	Forfeitures and Suspensions	 	 	34	 
	6.050
	 	Allocation of Withdrawals Among Investment Funds	 	 	35	 
	6.060
	 	Loans	 	 	35	 
	6.070
	 	Transfer of Distribution or Withdrawal to Eligible Retirement Plan	 	 	36	 
	 
	 	 	 	 	 	 
	ARTICLE VII: DEATH BENEFITS	 	 	37	 
	7.010
	 	Designation of a Beneficiary	 	 	37	 
	7.020
	 	Spouse as Automatic Beneficiary	 	 	37	 
	7.030
	 	Beneficiary Changes	 	 	37	 
	7.040
	 	Participant’s Estate as Beneficiary in Certain Cases	 	 	37	 
	7.050
	 	Payment to a Beneficiary	 	 	38	 
	 
	 	 	 	 	 	 
	ARTICLE VIII: TRUST AGREEMENT	 	 	39	 
	8.010
	 	Establishment of Trust Fund	 	 	39	 
	8.020
	 	Investment Funds and Stock Funds	 	 	39	 
	8.030
	 	Trustee’s Powers and Authority	 	 	41	 
	8.040
	 	Statutory Limits	 	 	41	 
	8.050
	 	Duty of Trustee as to Common Stock in Stock Funds	 	 	41	 
	8.060
	 	Rights in the Trust Fund	 	 	43	 
	8.070
	 	Taxes, Fees and Expenses of the Trustee	 	 	43	 
	 
	 	 	 	 	 	 
	ARTICLE IX: ADMINISTRATION	 	 	44	 
	9.010
	 	General Administration	 	 	44	 
	9.020
	 	Employee Benefit Plan Committee	 	 	44	 
	9.025
	 	Employee Benefits Appeals Committee	 	 	44	 
	9.030
	 	Employee Benefit Plan Committee Records	 	 	44	 
	9.035
	 	Employee Benefits Appeals Committee Records	 	 	44	 
	9.040
	 	Funding Policy	 	 	45	 
	9.050
	 	Allocation and Delegation of Duties Under Plan	 	 	45	 

-v-

 

Table of Contents
(continued)

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	 	 	 	 	 	 
	9.060
	 	Employee Benefit Plan Committee Powers	 	 	45	 
	9.070
	 	Plan Administrator	 	 	45	 
	9.080
	 	Reliance Upon Documents and Opinions	 	 	46	 
	9.090
	 	Requirement of Proof	 	 	46	 
	9.100
	 	Limitation and Indemnification	 	 	46	 
	9.110
	 	Mailing and Lapse of Payments	 	 	47	 
	9.120
	 	Non-Alienation	 	 	47	 
	9.130
	 	Notices and Communications	 	 	47	 
	9.140
	 	Company Rights	 	 	48	 
	9.150
	 	Payments on Behalf of Incompetent Participants or Beneficiaries	 	 	48	 
	 
	 	 	 	 	 	 
	ARTICLE X: PARTICIPANT CLAIMS	 	 	49	 
	10.010
	 	Claims and Appeals Procedures	 	 	49	 
	10.020
	 	Limitation on Legal Action	 	 	50	 
	 
	 	 	 	 	 	 
	ARTICLE XI: AMENDMENT, MERGERS, TERMINATION, ETC.	 	 	51	 
	11.010
	 	Amendment	 	 	51	 
	11.020
	 	Transfer of Assets and Liabilities	 	 	51	 
	11.030
	 	Merger Restriction	 	 	51	 
	11.040
	 	Suspension of Contributions	 	 	51	 
	11.050
	 	Discontinuance of Contributions	 	 	52	 
	11.060
	 	Termination	 	 	52	 
	 
	 	 	 	 	 	 
	ARTICLE XII: STATUTORY LIMITATIONS	 	 	53	 
	12.010
	 	Annual Limits of Participants’ Account Increases	 	 	53	 
	12.015
	 	Excess Annual Additions	 	 	53	 
	12.020
	 	Combining Similar Plans	 	 	53	 
	 
	 	 	 	 	 	 
	ARTICLE XIII: MISCELLANEOUS	 	 	54	 
	13.010
	 	Benefits Payable only from Trust Fund	 	 	54	 
	13.020
	 	Requirement for Release	 	 	54	 
	13.030
	 	Transfers of Stock	 	 	54	 
	13.040
	 	Rights of Reemployed Veterans	 	 	54	 

-vi-

 

Table of Contents
(continued)

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	 	 	 	 	 	 
	13.050
	 	Qualification of the Plan	 	 	54	 
	13.060
	 	Interpretation	 	 	54	 
	13.070
	 	No Contract of Employment	 	 	54	 
	 
	 	 	 	 	 	 
	ARTICLE XIV: MINIMUM DISTRIBUTION REQUIREMENTS	 	 	56	 
	14.010
	 	General Rules	 	 	56	 
	14.020
	 	Time and Manner of Distribution	 	 	56	 
	14.030
	 	Required Minimum Distributions During Participant’s Lifetime	 	 	57	 
	14.040
	 	Required Minimum Distributions After Participant’s Death	 	 	57	 
	14.050
	 	Definitions	 	 	59	 
	 
	 	 	 	 	 	 
	APPENDIX A PROCEDURES, TERMS AND CONDITIONS OF LOANS	 	 	60	 
	APPENDIX B TOP-HEAVY PLAN PROVISIONS	 	 	63	 
	APPENDIX C EMPLOYEE STOCK OWNERSHIP PLAN	 	 	67	 

-vii-

 

ROCKWELL AUTOMATION

RETIREMENT SAVINGS PLAN

FOR REPRESENTED HOURLY EMPLOYEES

PREAMBLE

The Plan

The Company originally established this Plan, effective April 1, 1998, for certain of its hourly
employees. The Plan has been amended from time to time since that date and was most recently
amended and restated effective April 1, 1999. Effective as of April 1, 2003, the Plan has been
re-named the Rockwell Automation Retirement Savings Plan for Represented Hourly Employees. The
Plan is hereby amended and restated effective as of January 1, 2008. The provisions of the Plan as
have been in effect from time to time prior to the date of this restatement apply to the related
periods prior to such date for all purposes, except as otherwise specifically provided herein.

Purpose

The purpose of this Plan is to encourage and assist employees of the Company who are members of a
collective bargaining unit in adopting a regular savings program and to help provide security for
them upon retirement. As of January 1, 2008, this Plan covers Eligible Employees who are members
of Local 78 of the International Association of Machinists and Aerospace Workers; AFL-CIO-
Milwaukee, Wisconsin (“Milwaukee IAM Local 78”) or Local 84737 of International Union of
Electronic, Electrical Salaried, Machine and Furniture Workers — Cleveland, Ohio (“Euclid CWA
84737”).

-1-

 

ROCKWELL AUTOMATION

RETIREMENT SAVINGS PLAN

FOR REPRESENTED HOURLY EMPLOYEES

ARTICLE I: DEFINITIONS

1.010 Accounts means a Participant’s Pre-tax Account, After-tax Account, Rollover Account
and Company Contribution Account.

1.020 Affiliated Company means Rockwell Automation, Inc. and

	(a)	 	any corporation incorporated under the laws of one of the United States of America of which
Rockwell Automation owns, directly or indirectly, eighty percent (80%) or more of the combined
voting power of all classes of stock or eighty percent (80%) or more of the total value of the shares of all classes of stock (all within the meaning of Code §1563);
	 
	(b)	 	any partnership or other business entity organized under such laws, of which Rockwell
Automation owns, directly or indirectly, eighty percent (80%) or more of the voting power or
eighty percent (80%) or more of the total value (all within the meaning of Code §414(c)); and
	 
	(c)	 	any other company deemed to be an Affiliated Company by Rockwell Automation’s Board of
Directors.

Notwithstanding the foregoing, for purposes of determining whether an employee is an Eligible
Employee, only an affiliate to which the Board of Directors has extended this Plan shall be
considered an Affiliated Company. Affiliated Companies to which the Plan has not been extended are
listed on Appendix A hereto. In addition, solely for purposes of Sections 1.225 and 1.230 of this
Plan, any entity that would satisfy the definition of an Affiliated Company except that it is not
incorporated or organized under the laws of the United States of America shall be considered an
Affiliated Company.

1.030 After-tax Contribution Account means a Plan Account with respect to a Participant
which is comprised of Basic and Supplemental After-tax Contributions, as adjusted for gains or
losses related thereto.

1.040 After-tax Contribution Percentage Limit means the maximum contribution percentage in
each Plan Year for Highly Compensated Employee Group Participants and is that percentage amount
which does not exceed the greater of:

-2-

 

	(a)	 	the Average After-tax Contribution Percentage for the Non-Highly Compensated Employee Group,
multiplied by one and twenty-five hundredths (1.25); or
	 
	(b)	 	the lesser of

	 	(1)	 	an amount which does not exceed the Average After-tax Contribution Percentage for
the Non-Highly Compensated Employee Group by more than two (2) percentage points, or
	 
	 	(2)	 	the Average After-tax Contribution Percentage for the Non-Highly Compensated
Employee Group, multiplied by two (2).

If a Participant who is a member of the Highly Compensated Employee Group is a participant in any
other plan established or maintained by an Affiliated Company pursuant to which elective deferrals
under a cash or deferred arrangement or matching contributions, both as defined in Code §401(m)(4),
or employee contributions, are made, such other plan will be deemed to be a part of this Plan for
the purpose of determining the After-tax Contribution Percentage Limit with respect to that
Participant.

1.045 Automotive Spin-off means the spin-off transaction, dated September 30, 1997,
pursuant to which the Company’s automotive component businesses became a separate, stand-alone
company and the Company distributed shares of the common stock of that new company, Meritor
Automotive, Inc. (now known as “ArvinMeritor, Inc.”), to the Company’s shareowners.

1.050 Average After-tax Contribution Percentage means the average for a particular Plan
Year of the percentages, calculated separately for the Highly Compensated Employee Group and for
the Non-Highly Compensated Employee Group with respect to each Participant in each such Group,
which are equal to the sum of A and B, divided by C, where

	 	 	 	 	 
	A
	 	=
	 	the amount of the Participant’s Basic After-tax Contributions
in the Plan Year;

	 	 	 	 	 

	B
	 	=
	 	the amount of the Company Matching Contributions made on
behalf of the Participant in the Plan Year; and

	 	 	 	 	 

	C
	 	=
	 	the Participant’s Compensation for the Plan Year.

For purposes of determining whether the Plan satisfies the limitations set forth in Section 3.015
and Code §401(m), all employee and matching contributions which are made under two or more plans
that are aggregated for purposes of Code §401(a)(4) and 410(b) (other than Code §410(b)(2)(A)(ii))
will be treated as made under a single plan and, if two or more plans are permissively aggregated
for purposes of Code §401(m), the aggregated plans must also satisfy Code §§401(a)(4) and 410(b) as
though they were a single plan.

-3-

 

1.060 Average Pre-tax Contribution Percentage means the average for a particular Plan Year
of the percentages, calculated separately for the Highly Compensated Employee Group and for the
Non-Highly Compensated Employee Group with respect to each Participant in each such Group, which
are equal to the amount of each Participant’s Pre-tax Contributions in a Plan Year, divided by the
Participant’s Compensation for the Plan Year.

1.070 Base Compensation means the Participant’s compensation, not in excess of Two Hundred
Thousand Dollars ($200,000.00) or such larger sum as may be established pursuant to Code
§401(a)(17), in any calendar year, including base or regular pay, lump sum merit awards, vacation
pay, unused vacation pay upon termination of employment, jury duty pay, holiday pay, funeral pay,
and any amount which would be paid to the Participant absent elections under Sections 2.020(a) and
2.030(a) or an election to make elective employee contributions pursuant to a qualified cash or
deferred arrangement under a cafeteria plan meeting the requirements of Code §125. Base
Compensation does not include overtime pay, extended work or other premium pay, bonuses, deferrals
under any non-qualified deferred compensation arrangement, any form of severance pay or salary
continuation, and any form of extra, contingent or supplementary compensation.

1.080 Basic After-tax Contribution means an amount contributed by a Participant to the Plan
through payroll deductions pursuant to the Participant’s elections under Section 2.020(b).

1.090 Basic Pre-tax Contribution means an amount contributed to the Plan on behalf of a
Participant pursuant to the Participant’s election under Section 2.020(a).

1.100 Beneficiary means the one or more persons or trusts entitled to a Participant’s Plan
Account balance, pursuant to the provisions of Article VII, if the Participant should die prior to
payment to him of his entire Account Balance.

1.110 Board of Directors means the Board of Directors of Rockwell Automation; provided,
however, that any action or determination under Sections 1.020, 1.130 and 2.070, as well as under
Article XI, may be taken by any officer of the Company who is authorized to do so by the Board of
Directors.

1.115 Catch-up Contribution means an amount contributed to the Plan on behalf of a
Participant pursuant to the Participant’s election under Section 2.045.

1.120 Code means the Internal Revenue Code of 1986, as from time to time amended.

1.115 Collins Spin-off means the spin-off transaction, dated June 29, 2001, pursuant to
which the Company’s Avionics and Communications business became a separate, stand-alone company and
the Company distributed shares of the common stock of that new company, Rockwell Collins, Inc., to
the Company’s shareowners.

1.130 Company means Rockwell Automation, Inc., a Delaware corporation, and any Affiliated
Company to which the Board of Directors has extended this Plan.

-4-

 

1.140 Company Contribution Account means a Plan Account with respect to a Participant which
is comprised of his Company Matching Contributions, as adjusted for gains or losses related
thereto.

1.145 Company Matching Contributions means the contributions made to the Trust Fund by
Rockwell Automation or an Affiliated Company pursuant to the provisions of Section 2.060 or 2.070.

1.150 Compensation means the compensation of a Participant, as is defined in Code §414(s).

1.155 Conexant means Conexant Systems, Inc., a Delaware corporation.

1.160 Conexant Stock Fund means the Special Stock Fund described in Section 8.020(b)(5).

1.165 Conexant Wireless Spin-off means the spin-off transaction, pursuant to which the
Conexant’s wireless semiconductor business became a part of a newly-formed, stand-alone company and
Conexant distributed shares of the common stock of that newly-formed company, Skyworks Solutions,
Inc., to all Conexant shareowners.

1.170 [Reserved]

1.180 Effective Date means April 1, 1998.

1.190 Eligible Employee means any Employee who is compensated on an hourly basis and is a
member of a Participating Unit within Rockwell Automation.

1.200 Eligible Retirement Plan means:

	(a)	 	an individual retirement account described in Code §408(a),
	 
	(b)	 	an individual retirement annuity described in Code §408(b),
	 
	(c)	 	an annuity plan described in Code §403(a),
	 
	(d)	 	a qualified plan (which is a defined contribution plan) described in Code §401(a),
	 
	(e)	 	an annuity contract described in Code §403(b), or
	 
	(f)	 	an eligible plan of a governmental employer described in Code §457(b)

which accepts an individual’s eligible rollover distributions; provided, however, that in the case
of an eligible rollover distribution to a Participant’s surviving spouse made prior to January 1,
2002, only an individual retirement account or individual retirement annuity described in (a) and
(b) above will be deemed to be an Eligible Retirement Plan.

-5-

 

1.210 Employee means any person who is employed by the Company or by an Affiliated Company,
including an Eligible Employee, and will, to the extent permitted by Code §406, be deemed to
include any United States citizen regularly employed by a foreign subsidiary or affiliate of the
Company.

1.215 Employee Benefit Plan Committee means the Employee Benefit Plan Committee of the
Company appointed pursuant to Section 9.020 of the Plan and having the responsibilities prescribed
in Article IX and elsewhere throughout the Plan.

1.220 Employee Benefits Appeals Committee means the Employee Benefits Appeals Committee of
the Company appointed pursuant to Section 9.025 of the Plan and having the responsibilities
prescribed in Article X and elsewhere throughout the Plan.

1.225 Employment Commencement Date means the date on which a person first becomes an
Employee of the Company or an Affiliated Company.

1.230 Employment Severance Date means:

	(a)	 	the date on which an Employee quits, retires, is discharged, experiences a Layoff or dies,
	 
	(b)	 	in the case of an Employee who remains absent from work pursuant to a written Leave, the
first anniversary of such Leave, except that an Employee who has a Leave which is in excess of
one (1) year who thereafter returns to work with the Company for a period at least equal to
the entire period of the Leave will not be considered as having an Employment Severance Date
by reason of such absence.

If an Employee enters the United States military service or public health service directly from
employment with the Company, has not voluntarily reenlisted and returns to employment with the
Company for a period of at least one (1) year immediately after his return to the Company, the
Employee will not be deemed to have an Employment Severance Date by reason of such military service
or public health service.

1.240 ERISA means the Employee Retirement Income Security Act of 1974, as it may be amended
from time to time.

1.250 5% Owner means a person who owns:

	(a)	 	more than five percent (5%) of the outstanding stock of the Company, or
	 
	(b)	 	stock possessing more than five percent (5%) of the total combined voting power of all stock
of the Company.

1.255 [Reserved] 

-6-

 

1.260 Fund(s) means one or more of the Investment Funds, the Special Stock Funds, Rockwell
Automation Stock Fund A, Rockwell Automation Stock Fund B or the Rockwell Automation Stock Fund.

1.270 Hardship means an immediate and heavy financial need of the Participant for which
the amount required is not reasonably available to the Participant from other sources and which
arises for one of the following reasons:

	(a)	 	the purchase (excluding mortgage payments) or construction of a principal residence for the
Participant, or to prevent eviction from, or foreclosure on the mortgage on, the Participant’s
principal residence;
	 
	(b)	 	the incurring of obligations for

	 	(1)	 	tuition, related educational fees and room and board expenses for post-secondary
education for the Participant, his spouse or one or more of his children or other
dependents (as defined in Code §152) to be incurred during the twelve (12) month period
immediately following the date of his request for distribution;
	 
	 	(2)	 	expenses not covered by insurance which either have been previously incurred by the
Participant for, or are necessary in order for the Participant to obtain, medical care
(as described in Code §213(d)) for himself, his spouse or one or more of his dependents
(as defined in Code §152);
	 
	 	(3)	 	payments for burial or funeral expenses for the Participant’s deceased parent,
spouse, children or dependent;
	 
	 	(4)	 	expenses for repair of damage to the Participant’s principal residence that would
qualify for the casualty deduction under Code §165; or

	(c)	 	any other reason which is permitted under Code §401(k)(2)(B)(i)(IV).

1.280 Highly Compensated Employee Group means those individuals who are “highly compensated
employees” within the meaning of Code §414(q) and includes any employee:

	(a)	 	who is a 5% Owner, or
	 
	(b)	 	who had compensation from the Company in a particular Plan Year or in the year immediately
preceding the said Plan Year in excess of Eighty Thousand Dollars ($80,000.00), as such figure
may be adjusted from time to time

The Plan Administrator may determine which Employees are highly compensated employees for purposes
of this Section in any manner permitted by the said Code provision. Such determination (as well as
the determination of which Employees are not highly compensated employees) will be made by the Plan
Administrator on a consistent basis from Plan Year to Plan

-7-

 

Year and a particular Plan Year’s Highly Compensated Employee Group (and Non-Highly Compensated Employee Group) will be determined by the
Plan Administrator based upon data applicable to the year (“look-back year”) immediately preceding
the said Plan Year; provided, however, that such determination for the initial Plan Year of the
Plan’s existence will be based upon the data applicable to that initial Plan Year and the said
initial Plan Year will be deemed to be the look-back year for such determination.

1.290 Investment Fund means one of the investment vehicles available to Participants.

1.300 Layoff means an involuntary severance of employment, other than a discharge for
cause.

1.310 Leave means a leave of absence which has been granted or approved by the Company.

1.320 Meritor means ArvinMeritor, Inc., a Delaware corporation, and its affiliates,
successor by merger to Meritor Automotive, Inc.

1.330 Meritor Stock Fund means the Special Stock Fund described in Section 8.020(b)(4).

1.335 MindSpeed means MindSpeed Technologies, Inc.

1.340 MindSpeed Stock Fund means the Special Stock Fund described in Section 8.020(b)(8).

1.350 Named Fiduciary means the Employee Benefit Plan Committee, the Plan Administrator,
the Employee Benefits Appeals Committee and the Trustee.

1.360 Non-Highly Compensated Employee Group means Employees who are not in the Highly
Compensated Employee Group, as determined by the Plan Administrator.

1.370 Participant means a person who has elected to participate in the Plan in accordance
with Article II; provided, however, that such term will include a person who no longer has an
effective election under Article II only so long as he retains an Account under the Plan.

1.380 Participant Contributions means a Participant’s Basic Pre-tax and Basic After-tax
Contributions and his Supplemental Pre-tax and Supplemental After-tax Contributions, as well as, if
applicable, his Rollover Contributions.

1.390 Participating Unit means one of the following collective bargaining units within
Rockwell Automation:

	 	•	 	Local Lodge 1109 of International Association of Machinists and Aerospace
Workers, AFL-CIO — Madison, Indiana (“Madison IAM Local 1109”)
	 
	 	•	 	Local 2308 of International Union, United Automobile, Aerospace and
Agricultural Implement Workers of America — Hamilton, Ohio (“Hamilton UAW Local
2308”)

-8-

 

	 	•	 	Local 134 of International Brotherhood of Electrical Workers — Chicago,
Illinois (“Chicago IBEW Local 134”)
	 
	 	•	 	Local 78 of International Association of Machinists and Aerospace Workers;
AFL-CIO- Milwaukee, Wisconsin (“Milwaukee IAM Local 78”)
	 
	 	•	 	Local 63 of International Association of Machinists and Local 72 of
Boilermakers and Blacksmiths — Portland, Oregon (“Portland IAM/Boilermakers Local
63/72”)
	 
	 	•	 	Local 84737 of International Union of Electronic, Electrical Salaried,
Machine and Furniture Workers — Cleveland, Ohio (“Euclid CWA Local 84737”)

Notwithstanding the foregoing, each of Madison IAM Local 1109, Hamilton UAW Local 2308, Chicago
IBEW Local 134 and Portland IAM/Boilermakers Local 63/72 ceased to be a Participating Unit as of
the date of the Power Systems Sale.

1.400 Plan means this Rockwell Automation Retirement Savings Plan for Represented Hourly
Employees, as from time to time amended.

1.410 Plan Administrator means the person from time to time so designated by name or
corporate office by the Employee Benefit Plan Committee to carry out the administrative functions
of this Plan.

1.420 Plan Year means each twelve month period ending on the last day of December.

1.425 Power Systems Sale means the Company’s January 31, 2007 sale of Reliance Electric Co.
and affiliated companies to Baldor Electric Company (the “Power Systems Sale”).

1.430 Pre-tax Contribution Account means a Plan Account with respect to a Participant which
is comprised of his Basic Pre-tax Contributions, Supplemental Pre-tax Contributions and Catch-up
Contributions, as adjusted for gains or losses.

1.440 Pre-tax Contribution Percentage Limit means the maximum contribution percentage in
each Plan Year for Highly Compensated Employee Group Participants and, for any Plan Year, may be
equal to either (a) or (b) below:

	(a)	 	the Average Pre-tax Contribution Percentage for the Non-Highly Compensated Employee Group,
multiplied by one and twenty-five hundredths (1.25); or
	 
	(b)	 	the lesser of

	 	(1)	 	an amount which does not exceed the Average Pre-tax Contribution Percentage for the
Non-Highly Compensated Employee Group by more than two (2) percentage points, or

-9-

 

	 	(2)	 	the Average Pre-tax Contribution Percentage for the Non-Highly Compensated Employee
Group, multiplied by two (2).

If a Participant who is a member of the Highly Compensated Employee Group is a participant in any
other plan established or maintained by an Affiliated Company pursuant to which elective deferrals
under a cash or deferred arrangement or matching contributions, both as defined in Code §401(m)(4),
or employee contributions, are made, such other plan will be deemed to be a part of this Plan for
the purpose of determining the Pre-tax Contribution Percentage Limit with respect to that
Participant.

1.450 Reemployment Date means the date on which a person first becomes an Employee of the
Company following an Employment Severance Date.

1.455 Retirement means a termination of employment (i) after attainment of age 65 or (ii)
after attainment of age 55 with at least 10 years of service.

1.460 [Reserved]

1.470 Rockwell means Rockwell Automation, Inc., a Delaware corporation.

1.480 Rockwell Automation Stock Fund means the Investment Fund established by the Trustee
on July 1, 2005 to purchase and hold the Common Stock of the Company and to receive and hold
Company Matching Contributions, as described in Section 8.020(b)(3) and Appendix C. This Fund is
comprised of the former Rockwell Automation Stock Fund A and Rockwell Automation Stock Fund B.

1.490 Rockwell Automation Stock Fund A means the Fund established by the Trustee for
receipt and holding of Company Matching Contributions, as described in Section 8.020(b)(1) and
Appendix C.

1.500 Rockwell Automation Stock Fund B means the Investment Fund established by the Trustee
to purchase and hold the common stock of the Company, as described in Section 8.020(b)(2) and
Appendix C.

1.505 Rockwell Collins means Rockwell Collins, Inc. a Delaware corporation, and its
affiliates.

1.510 Rockwell Collins Stock Fund means the Fund established by the Trustee pursuant to the
provisions of Section 8.020(b)(7).

1.515 [Reserved]

1.520 Rollover Account means a Plan Account described in Section 2.050 which has its
purpose the holding of amounts which are received by the Plan on a Participant’s behalf as a
Rollover Contribution or a Transfer Contribution.

-10-

 

1.525 Rollover Contributions mean the amounts described in Section 2.050 which are
transferred to a Participant’s Rollover Account pursuant to the terms of subsection (b) of that
Section.

1.530 Semiconductor Spin-off means the spin-off transaction, dated December 31, 1998,
pursuant to which the Company’s semiconductor business became a separate, stand-alone company and
the Company distributed shares of the common stock of that new company, Conexant Systems, Inc., to
the Company’s shareowners.

1.540 Skyworks means Skyworks Solutions, Inc.

1.550 Skyworks Stock Fund means the Special Stock Fund described in Section 8.020(b)(6).

1.560 Special Stock Funds means, together or individually, the Meritor Stock Fund, the
Conexant Stock Fund, the Skyworks Stock Fund, the Rockwell Collins Stock Fund and the MindSpeed
Stock Fund, as well as ay other such Fund which may be established in the future to hold such
common stock as may result from a transaction similar in effect to the Automotive, Semiconductor,
Conexant Wireless and Collins Spin-offs.

1.570 Supplemental After-tax Contribution means the amounts contributed by a Participant to
the Plan through payroll deductions pursuant to Section 2.030(b).

1.575 Supplemental Pre-tax Contributions means the amounts contributed to the Plan on
behalf of a Participant pursuant to the Participant’s election under Section 2.030(a).

1.580 Tender Offer means any tender offer for, or request or invitation for tenders of,
common stock subject to §14(d)(1) of the Securities Exchange Act of 1934, as amended, or any
regulation thereunder, except for any such tender offer or request or invitation for tenders made
by the Company or any Affiliated Company or by ArvinMeritor, Conexant, Rockwell Collins, Skyworks
or MindSpeed for its own common stock.

1.590 Transfer Contributions mean the amounts described in Section 2.050 which are
transferred to a Participant’s Account pursuant to the terms of subsection (a) of the said Section.

1.600 Trust Agreement means the trust agreement entered into pursuant to Article VIII of
this Plan.

1.610 Trust Fund means the fund, including the earnings thereon, held by the Trustee for
all contributions made under this Plan by Participants and the Company.

1.620 Trustee means the trustee or trustees of the trust described in Article VIII of this
Plan.

1.630 Valuation Date means any New York Stock Exchange trading day.

-11-

 

1.640 Vesting Service means the period commencing with an Employee’s Employment
Commencement Date and ending with his Employment Severance Date and the period from an Employee’s
Reemployment Date to his subsequent Employment Severance Date. In addition, Vesting Service
includes the period of time between an Employee’s Employment Severance Date and his Reemployment
Date, if that period does not exceed twelve (12) months, except that if an Employee is absent
because of a Leave and then resigns, is discharged or retires, or is laid off, the period of time
during which the Employee may return and receive Vesting Service begins on the date of his
resignation, discharge, retirement or Layoff and ends one (1) year from the first day of such Leave
or Layoff.

-12-

 

ARTICLE II: PARTICIPATION AND CONTRIBUTIONS

2.010 Participation. An Eligible Employee shall be eligible to become a Participant in, and to
make contributions to, the Plan. Such eligibility shall continue for so long as such Employee
continues to be an Eligible Employee.

	(a)	 	Participation of any Eligible Employee in the Plan shall be entirely voluntary. An election
to participate shall become effective on the as soon as is reasonably possible following
receipt by the Plan Administrator of the said election.
	 
	(b)	 	No contributions shall be made by, or with respect to, any Participant after any of the
following events until such Participant again makes an election under subsection (b):

	 	(1)	 	the Participant ceases to be an Eligible Employee;
	 
	 	(2)	 	the Participant receives a distribution under Section 5.020, 5.040 or 5.050; or
	 
	 	(3)	 	the Participant voluntarily elects to have contributions suspended.

	(c)	 	No contributions shall be made by, or with respect to, any Participant during any period of
suspension of contributions described in Section 6.010 or 6.020.

2.020 Basic Contributions. A Participant may take either or both of the actions described in
subsections (a) and (b) below:

	(a)	 	elect to defer receipt of an amount equal to 1% through 6% of his regular Base Compensation
(such deferral to be elected in whole percentages) and to instead have that amount paid to the
Plan as a Basic Pre-tax Contribution to his Pre-tax Contribution Account;
	 
	(b)	 	authorize having deducted from his regular Base Compensation 1% through 6% (such deduction to
be authorized in whole percentages) and then have the amount of such deduction (as adjusted
for all applicable taxes due on that amount) paid to the Plan as a Basic After-tax
Contribution to his After-tax Contribution Account;

provided, however, that the percentages elected to be deferred or deducted and then made as Basic
Pre-tax and Basic After-tax Contributions may together not exceed 6% of the Participant’s Base
Compensation.

Notwithstanding the foregoing, in the case of Participants who are Employees of the Participating
Unit referred to as Milwaukee IAM Local 78 (“Milwaukee IAM Local 78 Participants”), “1% through 5%”
shall be substituted for both instances of “1% through 6%” in this Section 2.020.

-13-

 

2.030 Supplemental Contributions. A Participant who has made the elections and/or authorizations
described in Section 2.020 will also be permitted to take either or both of the actions described
in subsections (a) and (b) below:

	(a)(1)	 	 if he is a non-Highly Compensated Employee, elect to defer receipt of an amount equal to
7% through 25% of his regular Base Compensation (such deferral to be elected in whole
percentages), and to instead have that amount paid to the Plan as a Supplemental Pre-tax
Contribution to his Pre-tax Contribution Account;
	 
	     (2)	 	if he is a Highly Compensated Employee, elect to defer receipt of an amount equal to 7%
through 12% of his regular Base Compensation (such deferral to be elected in whole
percentages), and to instead have that amount paid to the Plan as a Supplemental Pre-tax
Contribution to his Pre-tax Contribution Account;
	 
	(b)(1)	 	 if he is a non-Highly Compensated Employee, authorize having deducted from his regular
Base Compensation 7% through 25% (such deduction to be authorized in whole percentages) and
then have the amount of such deduction (as adjusted for all applicable taxes due on that
amount) paid to the Plan as a Supplemental After-tax Contribution to his After-tax
Contribution Account; and
	 
	     (2)	 	if he is a Highly Compensated Employee, authorize having deducted from his regular Base
Compensation 7% through 16% (such deduction to be authorized in whole percentages) and then
have the amount of such deduction (as adjusted for all applicable taxes due on that amount)
paid to the Plan as a Supplemental After-tax Contribution to his After-tax Contribution
Account.

provided, however, that the percentages elected to be deferred or deducted and then made as
Supplemental Pre-tax and Supplemental After-tax Contributions may together not exceed 19% of the
Participant’s Base Compensation if he is a non-Highly Compensated Employee or 10% of the
Participant’s Base Compensation if he is a Highly Compensated Employee.

Notwithstanding the foregoing, prior to October 1, 2005, in the case of Milwaukee IAM Local 78
Participants, “6%” shall be substituted for all instances of “7%”, “16%” shall be substituted for
all instances of “25%” and “11%” shall be substituted for all instances of “19%” and “10%” in this
Section 2.030. On and after October 1, 2005, in the case of Milwaukee IAM Local 78 Participants,
“6%” shall be substituted for all instances of “7%”, “20%” shall be substituted for “19%” and “11%”
shall be substituted for “10%” in this Section 2.030.

Further notwithstanding the foregoing, in the case of Participants who are Employees of the
Participating Unit referred to as Madison IAM Local 1109 (“Madison IAM Local 1109 Participants”)
“16%” shall be substituted for both instances of “25%” in Section 2.020 and “10%” shall be
substituted for “19%”.

2.040 Changes Between Pre-tax and After-tax Contributions. A Participant will be permitted to elect
to increase or decrease at any time (and as often as he wishes) the rate of his

-14-

 

Pre-tax and After-tax Contributions. Any such increase or decrease of the rate of the
Participant’s Pre-tax and After-tax Contributions will be effective as soon as is reasonably
possible after receipt by the Plan Administrator of the Participant’s election.

2.045 Catch-up Contributions. In addition to the Basic Pre-tax Contributions and the Supplemental
Pre-tax Contributions described, respectively, in Sections 2.020 and 2.030, subject to Section
3.020 and notwithstanding any of the nondiscrimination rules described in Code §401(a)(4) or
limitations on Participant Contributions as are otherwise in effect under this Plan, including, but
not limited to any such rules or limitations as are set forth in Sections 3.010 and 12.010, any
Participants in the Plan who on or prior to the last day of a Plan Year will have attained age 50
and who has in place an election under Section 2.020 of at least 1% of Base Compensation will be
permitted to elect to have an additional amount equal to 1% through 75% of his regular Base
Compensation contributed as a pre-tax Catch-up Contribution to the Plan on his behalf during that
Plan Year, so long as the total of any such Catch-up Contributions during the Plan Year are not in
excess of the applicable dollar amount set forth in the said Section 3.020.

2.050 Rollover Contributions. A Participant who is an Eligible Employee may elect (by providing
the Plan Administrator with notice thereof) to have the entire amount credited to his account
in a qualified individual account plan of a former employer transferred from such plan to this
Plan as a Rollover Contribution, subject to the following:

	(a)	 	Such Rollover Contributions are eligible for receipt hereunder only if they are in the
form of cash and are derived entirely from employee contributions which were contributed
pursuant to a qualified cash or deferred arrangement under Code §401(k) or from employer
contributions to which the Participant had a vested interest and which were based upon the
amount of contributions to such a qualified cash or deferred arrangement.
	 
	(b)	 	No portion of such Rollover Contributions may be derived from a transfer from a qualified
plan which at any time had permitted benefit payments in the form of a life annuity.
	 
	(c)	 	Rollover Contributions will be credited to separate Rollover Accounts, which will be
separate from the Participant’s Pre-tax and After-tax Contribution Accounts and, as such,
will be subject to investment elections which are separate from those related to the
Participant’s Pre-tax and After-tax Contribution accounts, but which will be subject to
the same process as is set forth in Article IV of this Plan.

2.060 Matching Contributions.

	(a)	 	Madison IAM Local 1109. In the case of Madison IAM Local 1109 Participants, the
Company will contribute to the Plan, on behalf of each such Participant and out of its current
or accumulated profits, Company Matching Contributions equal to fifty percent (50%) of the
Participant’s Basic Pre-tax Contributions and Basic After-tax Contributions (up to 6% of Base
Compensation) made pursuant to Section 2.020. Such Company Matching

-15-

 

	 	 	Contributions will be made in the form and subject to the limitations set forth in Section
2.070.

	(b)	 	Milwaukee IAM Local 78. In the case of Milwaukee IAM Local 78 Participants, the
Company will contribute to the Plan, on behalf of each such Participant and out of its current
or accumulated profits, Company Matching Contributions equal to fifty percent (50%) of the
Participant’s Basic Pre-tax Contributions and Basic After-tax Contributions (up to 5% of Base
Compensation) made pursuant to Section 2.020. Such Company Matching Contributions will be
made in the form and subject to the limitations set forth in Section 2.070.
	 
	(c)	 	Participants who are Employees of the Participating Units referred to as Hamilton UAW Local
2308, Chicago IBEW Local 134, Portland IAM/Boilermakers Local 63/72 and Euclid CWA IUE Local
84737 are not eligible for Company Matching Contributions.

Any forfeitures of Company Matching Contributions occurring during a Plan Year shall be used to
reduce Company Matching Contributions for such Plan Year.

2.070 Rules Concerning Matching Contributions.

	(a)	 	Company Matching Contributions will not be made by the Company on behalf of a Participant
until the Participant has completed six (6) months of employment with the Company or an
Affiliated Company
	 
	(b)	 	No Company Matching Contributions will be made with respect to a Participant’s Supplemental
Pre-tax Contributions, Catch-up Contributions, Supplemental After-tax Contributions or
Rollover Contributions made by the Participant.
	 
	(c)	 	Company Matching Contributions will be made in the form of Rockwell Automation common stock,
but may be made, in the discretion of the Board of Directors, in cash or in any combination of
cash and Rockwell Automation common stock. Rockwell Automation common stock which is
contributed will be valued at the New York Stock Exchange closing price on the Valuation Date
immediately preceding the date on which the contribution is made.
	 
	(d)	 	Prior to July 1, 2005, Company Matching Contributions made hereunder, whether they are made
in the form of Rockwell Automation common stock or cash, will be directed to Rockwell
Automation Stock Fund A when they are contributed and, unless distributed to the Participant
pursuant to Article V or transferred to an Investment Fund pursuant to Section 4.040, will
remain in Rockwell Automation Stock Fund A, along with any dividends or other earnings on such
common stock or cash. Effective July 1, 2005, Company Matching Contributions will be directed
to the Rockwell Automation Stock Fund unless otherwise distributed or transferred as described
above.

-16-

 

ARTICLE III: CONTRIBUTION LIMITATIONS

3.010 Limitations on Employee Pre-tax Contributions.

	(a)	 	The aggregate amount in any calendar year of all of a Participant’s:

	 	(1)	 	Basic and Supplemental Pre-tax Contributions to this Plan;
	 
	 	(2)	 	elective deferrals under any other cash or deferred arrangement (as defined in
Code §402(g)); and
	 
	 	(3)	 	elective employer contributions to any simplified employee pension (as defined in
and pursuant to, respectively, Code §§408(k)(1) and (6))

may not exceed Ten Thousand Dollars ($10,000.00), or such larger sum as may be in effect under
Code §402(g)(5).

	(b)	 	Prior to the beginning of, and periodically during, each Plan Year, the Plan Administrator
will cause a test to be conducted of Pre-tax Contribution elections under Sections 2.020(a)
and 2.030(a), in order to determine whether the Average Pre-tax Contribution Percentage for
the Highly Compensated Employee Group exceeds the Pre-tax Contribution Percentage Limit. If
it is determined that the Pre-tax Contributions made for any Plan Year by the Highly
Compensated Employee Group would (if not reduced) cause the Average Pre-tax Contribution
Percentage of that Group to exceed the Pre-tax Contribution Percentage Limit, the Plan
Administrator will first reduce any Supplemental Pre-tax Contributions and then the Basic
Pre-tax Contributions elected by Participants in the Highly Compensated Employee Group, so
that the Pre-tax Contribution Percentage Limit will not be exceeded for the Plan Year:

	 	(1)	 	Such reduction will be effective as of the first payroll date in the month
following such determination and will be made by first reducing the Pre-tax
Contribution Accounts of Highly Compensated Employee Group Participants who have the
greatest dollar amount of Pre-tax Contributions (but not below the Highly Compensated
Employee Group Participants with the next highest dollar amount of Pre-tax
Contributions), and then, if necessary, reducing the Pre-tax Contributions of the
Highly Compensated Employee Group Participants with the next highest dollar amount of
Pre-tax Contributions (including the Pre-tax Contributions of the Highly Compensated
Employee Group Participants whose Pre-tax Contributions have already been reduced by
the Plan Administrator), and continuing in descending order until the Average Pre-tax
Contribution Percentage for the Highly Compensated Employee Group satisfies the Pre-tax
Contribution Limit.

-17-

 

	 	(2)	 	Such excess Pre-tax Contributions will be distributed to the affected Participants
who are Highly Compensated Employee Group Participants as soon as practicable after the
end of such Plan Year and in all events prior the end of the next following Plan Year.
Effective January 1, 2006, income allocable to such excess Pre-tax Contributions with
respect to any Participant that are distributed in the next following Plan Year shall
equal the sum of the allocable gain or loss for the Plan Year, and any allocable gain
or loss for the period between the end of the Plan Year and the date of the corrective
distribution (i.e., the “gap period”). Income allocable to excess Pre-tax
Contributions for the Plan Year and any gap period shall be calculated under any
reasonable method as determined by the Plan Administrator, provided that such method is
used for allocating income to Participants’ Pre-tax Contribution Accounts and is used
consistently for all Participants and for all corrective distributions under the Plan
for the Plan Year.

	(c)	 	Reductions in Basic or Supplemental Pre-tax Contributions pursuant to subsection (b) of this
Section will continue until the Plan Administrator determines that changed circumstances
permit a revision of such Pre-tax Contributions, in which case the Plan Administrator will
determine the amount by which such Pre-tax Contributions may be revised for the balance of the
Plan Year.
	 
	(d)	 	In order to determine the amount of excess Pre-tax Contributions, if any, for the members of
the Highly Compensated Employee Group, the Plan Administrator or his delegate will:

	 	(1)	 	determine the “highly compensated employee” (as defined in Code §414(q)) in the
Group with the highest Pre-tax Contribution Percentage (i.e., the amount of such
employee’s Pre-tax Contributions in a particular Plan Year, divided by his
Compensation for the Plan Year);
	 
	 	(2)	 	determine how much the said Percentage would have to be reduced to either
satisfy the Average Pre-tax Contribution Percentage test under Code §401(k)(3) or
cause such Percentage to equal the Pre-tax Contribution Percentage of the highly
compensated employee with the next highest Percentage; and
	 
	 	(3)	 	repeat making the determination set forth in Paragraph (2) until such time as
the Average Pre-tax Contribution Percentage test described in that Paragraph is
satisfied.

	 	 	The amount of excess Pre-tax Contributions for the members of the Highly Compensated Employee
Group is equal to the amount equal to the sum of the hypothetical reductions described above,
multiplied by such members’ Compensation.
	 
	(e)	 	To the extent permitted under Section 3.015, the amount representing the additional amount of
Base Compensation which would have been contributed as Supplemental Pre-tax or Basic Pre-tax
Contributions on behalf of the Participant will be contributed by the Participant to the Plan,
as appropriate, as Supplemental After-tax or Basic After-tax Contributions. In 

-18-

 

	 	 	addition, to the extent permitted by regulation, the Plan Administrator may during or following a Plan
Year cause Supplemental or Basic Pre-tax Contributions made on behalf of Highly Compensated
Participants to be recharacterized (on a uniform and non-discriminatory basis) as Supplemental
or Basic After-tax Contributions to the extent necessary to prevent the Average Pre-tax
Contribution Percentage for that Plan Year for those Participants from exceeding the Pre-tax
Contribution Percentage Limit.

3.015 Limitations on After-tax Contributions and Matching Contributions.

	(a)	 	Prior to the beginning of, and periodically during, each Plan Year, the Plan Administrator
will cause a test to be conducted of After-tax Contribution elections under Sections 2.020(b)
and 2.030(b), in order to determine whether the Average After-tax Contribution Percentage for
the Highly Compensated Employee Group exceeds the After-tax Contribution Percentage Limit. If
it is determined that the After-tax Contributions made for any Plan Year by the Highly
Compensated Employee Group would (if not reduced) cause the Average After-tax Contribution
Percentage of that Group to exceed the After-tax Contribution Percentage Limit, the Plan
Administrator will first reduce any Supplemental After-tax Contributions and then the Basic
After-tax Contributions elected by Participants in the Highly Compensated Employee Group, so
that the After-tax Contribution Percentage Limit will not be exceeded for the Plan Year:

	 	(1)	 	Such reduction will be effective as of the first payroll date in the month
following such determination and will be made by first reducing the After-tax
Contribution Accounts of Highly Compensated Employee Group Participants who have the
greatest dollar amount of After-tax Contributions (but not below the Highly Compensated
Employee Group Participants with the next highest dollar amount of After-tax
Contributions), and then, if necessary, reducing the After-tax Contributions of the
Highly Compensated Employee Group Participants with the next highest dollar amount of
After-tax Contributions (including the After-tax Contributions of the Highly
Compensated Employee Group Participants whose After-tax Contributions have already been
reduced by the Plan Administrator), and continuing in descending order until the
Average After-tax Contribution Percentage for the Highly Compensated Employee Group
satisfies the After-tax Contribution Limit.
	 
	 	(2)	 	Such excess After-tax Contributions will be distributed to the affected
Participants who are Highly Compensated Employee Group Participants as soon as
practicable after the end of such Plan Year and in all events prior the end of the next
following Plan Year. Effective January 1, 2006, income allocable to such excess
After-tax Contributions with respect to any Participant that are distributed in the
next following Plan Year shall equal the sum of the allocable gain or loss for the Plan
Year, and any allocable gain or loss for the period between the end of the Plan Year
and the date of the corrective distribution (i.e., the “gap period”). Income allocable
to excess After-tax Contributions for the Plan Year and any gap period shall be
calculated under any reasonable method as determined by the Plan Administrator,
provided that such method is used for allocating income to Participants’ After-tax
Contribution Accounts

-19-

 

	 	 	 	and is used consistently for all Participants and for all corrective distributions under
the Plan for the Plan Year.

	(b)	 	Reductions in Basic or Supplemental After-tax Contributions pursuant to subsection (a) of
this Section will continue until the Plan Administrator determines that changed circumstances
permit a revision of such Contributions, in which case the Plan Administrator will determine
the amount by which such Contributions may be revised for the balance of the Plan Year.
	 
	(c)	 	If it is determined as a result of tests of contribution elections pursuant to subsection (a)
that there will be “excess aggregate contributions” (as defined in and determined pursuant to
Code §401(m)(6)) in any Plan Year, such excess aggregate contributions and all income
allocable thereto will be distributed, or, if forfeitable, forfeited, in the manner and within
the time required by the said §401(m)(6). Income allocable to excess aggregate contributions
with respect to any Participant shall equal the sum of the allocable gain or loss for the Plan
Year, and, effective January 1, 2006, any allocable gain or loss for the period between the
end of the Plan Year and the date of the forfeiture or corrective distribution (the “gap
period”). Income allocable to excess aggregate contributions for the Plan Year and any gap
period shall be calculated under any reasonable method as determined by the Plan
Administrator, provided that such method is used for allocating income attributable to
Participants’ Company Contribution Accounts, and is used consistently for all Participants and
for all corrective distributions under the Plan for the Plan Year. Any excess aggregate
contributions made to the Plan shall be taken into account as employer contributions to the
extent required in applicable IRS regulations.
	 
	(d)	 	In order to determine the amount of excess After-tax Contributions, if any, for the members
of the Highly Compensated Employee Group, the Plan Administrator or his delegate will:

	 	(1)	 	determine the “highly compensated employee” (as defined in Code §414(q)) in the
Group with the highest After-tax Contribution Percentage (i.e., the amount of such
employee’s After-tax Contributions in a particular Plan Year, divided by his
Compensation for the Plan Year), such After-tax Contributions to include any excess
Pre-Tax Contributions which are treated as After-tax Contributions due to
recharacterization;
	 
	 	(2)	 	determine how much the said Percentage would have to be reduced to either
satisfy the Average After-tax Contribution Percentage test under Code §401(m)(3) or
cause such Percentage to equal the After-tax Contribution Percentage of the highly
compensated employee with the next highest Percentage; and
	 
	 	(3)	 	repeat making the determination set forth in Paragraph (2) until such time as
the Average After-tax Contribution Percentage test described in that Paragraph is
satisfied.

-20-

 

In making the determinations set forth in this Section, any amounts which were the subject of
recharacterization of Pre-tax Contributions as After-tax Contributions will be included herein as being After-tax Contributions. The amount of excess After-tax Contributions for the members
of the Highly Compensated Employee Group is equal to the amount equal to the sum of the
hypothetical reductions described above, multiplied by such members’ Compensation.

3.020 Limits for Catch-up Contributions. Notwithstanding the limitations set forth in the
preceding Section 3.010 or any other provision of this Plan, the aggregate amount of Catch-up
Contributions for a given Plan Year of any Participant who, as of the end of a Plan Year, is at
least age fifty (50), who intends to have Basic and Supplemental Pre-tax Contributions made to the
Plan during the Plan Year which could be in excess of the limit set forth in the said Section 3.010
and who has a Basic Pre-tax or After-Tax Contribution election of at least 1% in place, will be
permitted to elect to have Catch-up Contributions made on his behalf to the Plan in amounts
totaling the limits set forth below for such Contributions:

	 	 	 	 	 
	Plan Year	 	Dollar Limit	 
	 
	2002
	 	$	1000.00	 
	2003
	 	$	2000.00	 
	2004
	 	$	3000.00	 
	2005
	 	$	4000.00	 
	2006
	 	$	5000.00	 
	2007
	 	$	5000.00	 
	2008
	 	$	5000.00	 

Such Dollar Limits for Plan Years subsequent to December 31, 2008 will be adjusted for increases in
the cost of living at the same time and in the same manner as adjustments are made under Code
§415(d).

To the extent that any such Catch-up Contribution is in excess of the limits of this Section and,
if not otherwise limited pursuant to any other provisions of this Plan which are applicable to
Participant Contributions or Company Matching Contributions, such excess will nevertheless be
contributed to the Plan as an After-tax Contribution of such Participant.

3.030 Incorporation by Reference. The limitations of Internal Revenue Code §§401(k), 401(m) and
414(v) are hereby incorporated by reference. Articles II and III of the Plan set forth the basic
requirements of Code §§401(k) and (m) and Section 414(v). In the event of any conflict between the
provisions of these Articles II and III and the Code §401(k), 401(m) and/or 414(v) requirements,
the provisions of Code §§401(k), 401(m) and 414(v) and regulations thereunder shall govern. The
Plan also incorporates by reference any subsequent IRS guidance applicable under these Code
provisions.

-21-

 

ARTICLE IV: PLAN INVESTMENTS

4.010 Investment Elections. In addition to the elections and authorizations set forth in Article
II, a Participant will be permitted to elect in which Investment Funds his Participant
Contributions will be invested.

	(a)	 	Such investments will be elected by the Participant among the Investment Funds in one percent
(1%) increments, with the total of the elected percentage increments equaling one hundred
percent (100%); provided, however, that the Participant will not be permitted to have any of
the said Contributions invested in the Special Stock Funds or Rockwell Automation Stock Fund
A.

	(b)	 	The Participant will be permitted to change, on a daily basis, any previous Investment Fund
election or elections he has made with regard to his Contributions pursuant to subsection (a),
but he will not be permitted to elect to have investment of his Contributions changed to the
Special Stock Funds or Rockwell Automation Stock Fund A.

	(c)	 	The elections and changes to such elections which a Participant makes pursuant to this
Section will be made by means of any method (including any available telephonic or electronic
method which is acceptable to the Plan Administrator at the time the election or change is
made by the Participant), and may be made at any time and will be effective as of the New York
Stock Exchange closing immediately following the making of that election or change; provided,
however, if it is determined by the Plan Administrator or his delegate that an investment
election made by a Participant is invalid or defective, the Participant’s election prior to
July 1, 2005, will, until duly corrected by him, be deemed to have been made in favor of the
Stable Value Fund. Effective July 1, 2005, such an invalid or defective election will be
deemed to have been made in favor of the appropriate target retirement Investment Fund based
on such Participant’s date of birth.

	(d)	 	The Account of any Participant who initially fails to make a valid investment election prior
to becoming a participant in the Plan shall be invested in the appropriate target retirement
Investment Fund based on such Participant’s date of birth (or such other Investment Fund as
selected by the Trustee or as directed by the Plan Administrator). Prior to July 1, 2005,
such Accounts were invested in a stable value fund.

4.020 Transfers from Investment Funds. A Participant will be permitted to have the whole or a
portion of the value of his interest in any of the Plan’s Investment Funds (including, prior to
July 1, 2005, Rockwell Automation Stock Fund B and after June 30, 2005, the Rockwell Automation
Stock Fund) and the Special Stock Funds which is attributable to his own Participant Contributions
transferred out of such Fund and into any of the Investment Funds.

4.025 Transfers from Special Stock Funds. A Participant who is an Employee of the Company or who
is a former Employee may elect to have some or all of his interest in any Special Stock Fund which
is attributable to his own Participant Contributions transferred to any Investment Fund, including
Rockwell Automation Stock Fund B (or, after June 30, 2005, the

-22-

 

Rockwell Automation Stock Fund), but the portion of his interest in a Special Stock Fund which is
attributable to Company Matching Contributions may only be transferred to Rockwell Automation Stock
Fund A (or, after June 30, 2005, the Rockwell Automation Stock Fund). Notwithstanding the
foregoing, effective November 7, 2007, a Participant who is no longer an Employee or a Beneficiary
may not make any transfers into the Rockwell Automation Stock Fund.

4.030 Transfers from Rockwell Automation Stock Fund A and the Rockwell Automation Stock Fund.
Effective as of October 1, 2001, every Participant will be permitted at any time to have some or
all of his interest in Rockwell Stock Fund A transferred out of such Stock Fund and into one or
more of the Plan’s Investment Funds.

4.040 Mandatory Transfer from the Rockwell Automation Stock Fund. Notwithstanding any other
provision of this Article IV to the contrary, effective November 7, 2007, any Participant who is
not an Employee at such time shall be deemed to have elected to transfer that portion of his
interest in the Rockwell Automation Stock Fund that exceeds 15% of his total Account value as of
such time to a target retirement Investment Fund based on such Participant’s date of birth.

Further, for each Plan Year beginning after December 31, 2007, the Plan Administrator shall select
a date prior to June 30 on which any Participant who is not an Employee as of the preceding
December 31 shall be deemed to have elected to transfer that portion of his interest in the
Rockwell Automation Stock Fund that exceeds 15% of his total Account value to a target retirement
Investment Fund based on such Participant’s date of birth. The Plan Administrator shall give
affected Participants at least sixty (60) days prior notice of such transfer.

4.050 General Transfer Rules and Limitations. The Fund transfers described in the preceding
Sections will be subject to the following limitations:

	(a)	 	Any such transfer will be effected in dollar amounts or in increments of 1% of the value of
the Participant’s interest in a transferring Fund, but in no event will any such transfer be
in an amount less than Two Hundred and Fifty Dollars ($250.00), except that if the balance of
a Participant’s interest in a Fund is less than Two Hundred and Fifty Dollars, ($250.00), the
Participant may elect to have the entire balance of his interest in the Fund transferred.

	(b)	 	Transfer elections may be made at any time, but each such election by a Participant will
be effective and be thereafter irrevocable as of the New York Stock Exchange closing
immediately following the Participant’s election. The elections may be made by means of
any method (including any available telephonic or electronic method) which is acceptable
to the Plan Administrator; provided, however, that, if it is determined by the Plan
Administrator or his delegate that an investment election made by a Participant is invalid
or defective, the Participant’s election will, until duly corrected by him, be deemed to
have not been made.

-23-

 

	(c)	 	Prior to July 1, 2005, at no time may assets be transferred from any of the Investment
Funds or the Special Stock Funds to Rockwell Automation Stock Fund A.
	 
	(d)	 	At no time may any Plan assets be transferred to any of the Special Stock Funds.

4.060 Participant’s Accounts. Separate Participant Contribution, Rollover (if applicable) and
Company Contribution Accounts will be established and maintained by the Trustee to represent all
amounts, adjusted for gains or losses thereon, which have been contributed by or on behalf of a
Participant as Participant Contributions, Rollover Contributions, Transfer Contributions and
Company Matching Contributions. Such separate Accounts must contain sufficient information to
permit a determination of the dollar balance of the Participant’s Accounts at any time and to
permit, with respect to Rockwell Automation Stock Funds A and B and the Special Stock Funds, a
determination of the number of equivalent shares of common stock held on the Participant’s behalf
in those Funds. Each Contribution on behalf of a Participant to an Investment Fund, a Special
Stock Fund or Rockwell Automation Stock Funds A and B and each payment made to a Participant from
an Investment Fund or Rockwell Automation Stock Funds A and B will result in a credit or charge to
the Account representing the Participant’s interest in such Fund. In addition, dividend proceeds
on Rockwell Automation common stock held in Rockwell Automation Stock Funds A and B will be used
for the purchase, when possible, of additional shares of Rockwell Automation common stock for the
two Funds and, therefore, will result in appropriate adjustments to the balances in the said Funds
and to the value of the Participant’s interest in the said Funds.

Effective July 1, 2005, “the Rockwell Automation Stock Fund” shall be substituted for all instances
of “Rockwell Automation Stock Fund A”, “Rockwell Automation Stock Fund B” and “Rockwell Automation
Stock Funds A and B” in this Section 4.060.

4.070 Valuation and Participant Statements. As of each Valuation Date, an amount equal to the fair
market value of the Funds (other than dividends received which are attributable to whole shares of
Rockwell Automation common stock which were or are to be transferred to Participant Accounts
subsequent to the record date for such dividend) will be determined by the Trustee in such manner
and on such basis as it may deem appropriate. At least annually, but more frequently, if the Plan
Administrator should so determine, the Trustee will forward by mail to each Participant a
statement, in such form as the Plan Administrator deems appropriate, setting forth pertinent
information relative to each Participant’s Accounts. Such statement will, for all purposes, be
deemed to have been accepted as correct, unless the Plan Administrator (or the Trustee, as the case
may be) is notified to the contrary by mail within ninety (90) days of the date on which it was
mailed to the Participant.

-24-

 

ARTICLE V: EMPLOYMENT TERMINATION BENEFITS

5.010 Vesting.

	(a)	 	Every Participant will at all times have a One Hundred Percent (100%) vested and
nonforfeitable interest in his After-tax Contribution Account, Pre-tax Contribution Account
and, if applicable, Rollover Account.

	(b)	 	A Participant who attains age sixty five (65) or dies while still an Employee or who
experiences a Layoff will thereafter have a One Hundred Percent (100%) vested and
nonforfeitable interest in his Company Contribution Account. A Participant who has not yet
attained age sixty five (65), but has completed three (3) years of Vesting Service will have
One Hundred Percent (100%) vested and nonforfeitable interest in is Company Contribution
Account.

	(c)	 	Subject to subsection (b) above, a Participant who terminates employment at any time prior to
completing three (3) years of Vesting Service will forfeit the portion of his Company
Contribution Account which is not vested on his Employment Severance Date:

	 	(1)	 	on his Employment Severance Date, if he receives a distribution of all of his
vested Account balances at that time, but the Participant may have the said forfeiture
restored, if he is reemployed by the Company or an Affiliated Company and repays the
previously distributed amount within five (5) years of his Employment Severance Date,
or
	 
	 	(2)	 	on the fifth anniversary of his Employment Severance Date, even though he does not
receive a distribution as a result of his termination of employment and even though he
is reemployed by the Company or an Affiliated Company, if his Reemployment Date is not
within five (5) years of his Employment Severance Date;

provided, however, that a Participant’s Vesting Service with respect to Company Contributions
made after his Reemployment Date will include his Vesting Service prior to his Employment
Severance Date, if his Reemployment Date is less than five (5) years after his prior Employment
Severance Date.

	(d)	 	Notwithstanding any other provision in this Section to the contrary, if the vesting
provisions in subsection (b) of this Section should be amended in the future, a Participant
who has completed three (3) years of Vesting Service at that time may elect to have his vested
percentage in his Company Contribution Account determined under the vesting provisions of
subsection (b) as they were set forth prior to the said amendment.

	(e)	 	Notwithstanding the foregoing, any Participant who is no longer an Employee of the Company
because he was an Employee of Reliance Electric Co. or its affiliated companies on January 31,
2007, the date of the sale of the Power Systems Sale, shall have a One Hundred
Percent (100%) vested and nonforfeitable interest in his Company Contribution 

-25-

 

	 	 	Account resulting
from Company Matching Contributions made to that Account prior to the Power Systems Sale.

5.020 Retirement, Death, Termination of Employment. Subject to the provisions of Section 5.060 and
Section 5.070, as soon as administratively practicable after the occurrence of a Participant’s:

	(a)	 	Retirement,
	 
	(b)	 	death,
	 
	(c)	 	Layoff; or
	 
	(d)	 	termination of employment,

a Participant or his Beneficiary (in the case of the Participant’s death) will receive the entire
vested balance of his Plan Account. In the case, however, of Retirement, a Participant who would
otherwise receive a distribution pursuant to the preceding sentence may instead make an election
pursuant to the terms of Section 5.050.

Notwithstanding any provision of this Plan to the contrary, distribution of a Participant’s vested
interest in his Accounts shall commence no later than the Participant’s “Required Beginning Date.”
The Participant’s Required Beginning Date is the April 1 following the close of the calendar year
in which the Participant attains age 701/2, if the Participant is a more than 5% owner of the Company
with respect to the Plan Year ending in that calendar year. For any other Participant, the
Participant’s “Required Beginning Date” is the April 1 following the close of the calendar year in
which the Participant terminates service with the Company, or if later, the April 1 following the
close of the calendar year in which the Participant attains age 701/2. Distributions under the Plan
made after the Participant’s Required Beginning Date shall be made in accordance with Article XIV.

5.030 Form of Distributions — Stock or Cash. Distributions made under this Article will be made
to Participants and, when applicable, their Beneficiaries in the form of cash or common stock, or
in a combination of cash and common stocks, pursuant to subsections (a) and (b):

	(a)	 	With respect to Investment Funds (other than Rockwell Automation Stock Fund B or, after June
30, 2005, the Rockwell Automation Stock Fund), a Participant will receive the entire balance
of his Accounts in such Funds in cash. Such balance will be determined in the manner set
forth in Section 4.070, by reference to the value of the Participant’s interest:

	 	(1)	 	on the date of such Participant’s Retirement or termination of employment or,
	 
	 	(2)	 	in the case of the Participant’s death or disability election to receive such
distribution, on the date all documentation necessary to effect distribution has been
received by the Plan Administrator or his delegate.

-26-

 

	(b)	 	With respect to Rockwell Automation Stock Funds A and B, the Rockwell Automation Stock Fund
and the Special Stock Funds, the Participant will be permitted, if he should so elect, to
receive the entire balance of his Accounts in such Funds in the manner described in the
preceding subsection or in shares, as applicable, of Rockwell Automation, Meritor, Conexant,
Rockwell Collins, Skyworks or MindSpeed or common stock equal in number to the maximum number
of whole shares of common stock which could be purchased for the closing price of that common
stock on that date (as such price is documented on the New York Stock Exchange — Composite
Transactions listing) or, in the event such date falls on a day on which for any reason there
are no trades of such stock reflected on such listing, the next trading day subsequent to that
date. In addition, the Participant will be paid in cash for the value of any partial shares
of the said common stock and the amount of any cash dividends received since that date which
are attributable to the number of whole shares of common stock distributed to him.

5.040 Payment Method for Distributions to Retiring Participants. Any Participant who is eligible
for and wishes to receive a distribution under Section 5.020 on account of his Retirement will make
an election concerning the form of distribution and will provide such election to the Plan
Administrator or the Plan Administrator’s delegate prior to Retirement. The form of distributions
such a Participant may elect will be in the form of either:

	(a)	 	a lump sum payment, or
	 
	(b)	 	ten (10) or fewer annual installment payments, such installment payments to be equal to the
value of the Participant’s Accounts as of the Valuation Date immediately preceding
distribution, divided by the number of installments remaining at the time of each payment.
The initial installment payment will be made as soon as is practicable after the effective
date of the Participant’s election, with subsequent payments during the elected installment
payment period to be made as of the annual anniversary date of the initial installment
payment.

If a Participant who had previously Retired and commenced receipt of installment payments pursuant
to subsection (b) returns to employment with the Company or an Affiliated Company, such installment
payments will be suspended until the Participant’s subsequent retirement, at which time he would be
permitted again to make the election described therein. In the event that no election concerning
the form of distribution has been made by a Retired Participant by the end of the calendar year in
which he has attained age seventy and one-half (70 1/2), distributions will be made in accordance
with Article XIV.

5.050 Participant’s Consent to Distribution of Benefits. Notwithstanding any other provisions
of the Plan to the contrary, if the aggregate value of the vested and nonforfeitable Account
balances of an individual who terminates his employment with the
Company and is no longer a Plan Participant is One Thousand Dollars ($1,000.00) ($5,000 for Plan
Years prior to 2005) or less, the Plan Administrator will arrange such balances to be
consolidated and

-27-

 

distributed to such Participant as soon as practicable following such
termination pursuant to in the manner set forth in Section 5.020.

If such vested and nonforfeitable amount is in excess of One Thousand Dollars ($1,000.00) ($5,000
for Plan Years prior to 2005) and the Participant has not attained age seventy and one-half
(70-1/2) at the time distribution of benefits under the Plan would otherwise be made, no
distribution of benefits under the Plan will be made, unless the Plan Administrator or his delegate
first obtains the Participant’s consent thereto. In the event such consent is not so obtained, the
Participant’s Accounts will be retained by the Plan and will be maintained and valued in accordance
with Article IV.

Distribution of the Participant’s Accounts pursuant to this Section will be made following the date
on which the Participant’s consent to such distribution is obtained or, if earlier, the date on
which the Participant attains age seventy and one-half (70-1/2) or dies, in the manner provided
under Article XIV and Section 5.070, respectively.

5.060 Cashout Forfeitures and Repayments. In the case of a Participant who receives a
distribution pursuant to Section 5.050 upon his termination of participation in this Plan when
he has less than three (3) years of Vesting Service, such Participant will, at the time of the
distribution, forfeit any portion of his Company Contribution Account which is not vested and
nonforfeitable at the time of his termination of participation in the Plan. If such Participant
should return to employment with the Company within five (5) years of the date of such
distribution and forfeiture, the said forfeiture will be restored, if he repays the amount
previously distributed. The amount restored, upon repayment of the distribution pursuant to
this Section, will be equal to the amount forfeited at the time of the distribution, such amount
to be unadjusted any gains or losses subsequent to the forfeiture and prior to the repayment.

Notwithstanding any other provisions of the Plan to the contrary, a Participant’s service with
respect to which he received a distribution under this Section or under Section 6.040 will not be
affected or reduced for eligibility purposes or for determination of his years of Vesting Service
under Section 5.010.

5.070 Distributions to Beneficiaries. In the event of a Participant’s death, a distribution to the
Participant’s Beneficiary shall be made as follows:

	(a)	 	A Non-spousal Beneficiary shall receive a lump-sum payment as soon as administratively
practicable following the Participant’s death.

	(b)	 	A Spousal Beneficiary shall continue to receive installment payments that the Participant
elected pursuant to Section 5.050, if any, unless such spousal Beneficiary elects to receive
the Participant’s remaining Account balance in a lump sum payment at any time following the
Participant’s death. In the event that no distribution election has been made by a Spousal
Beneficiary prior to the time distributions are required under Code Section 401(a)(9) and
regulations thereunder or installment payments are not completed by such time, distribution will
be made in accordance with Article XIV.

-28-

 

5.080 Transfer of Distribution Directly to Eligible Retirement Plan. If a Participant, a
Participant’s spouse entitled to distribution as his Beneficiary pursuant to Article VII or a
former spouse entitled to distribution pursuant to Section 9.120(b) or, effective as of September
1, 2007, any individual entitled to a distribution as a Beneficiary pursuant to Article VII, should
so request in writing, the Plan Administrator will cause all or a portion of the amounts (including
shares of Rockwell Automation, Meritor, Conexant, Rockwell Collins, MindSpeed or Skyworks common
stock) with respect to which the Participant would be taxed under Code §402 to be transferred from
the Trustee directly to the custodian of an Eligible Retirement Plan specified by the Participant.
Such request will be made, in the case of a Participant, at the time his consent to such
distribution is given to the Plan Administrator pursuant to Section 5.040, or at such later date as
the Plan Administrator permits, or, in the case of the Participant’s spouse or former spouse, at
such time as the Plan Administrator determines. Prior to effecting such a transfer the Plan
Administrator may require evidence reasonably satisfactory to him that the entity to which such
transfer is to be made is in fact an Eligible Retirement Plan and that such Eligible Retirement
Plan may receive the distribution in the forms required under this Article.

5.090 Uncashed Checks. If the Plan Administrator distributes the assets in a Participant’s Account
pursuant to this Article V and the distribution check is not cashed, a Participant will be entitled
to request a new check. In such case, the amount of the new check will be equal to the amount of
the original, uncashed distribution check and will not be adjusted for earnings and losses.

-29-

 

ARTICLE VI: WITHDRAWALS AND LOANS

6.010 Withdrawals from Accounts by Participants under Age 59 1/2.

	(a)	 	A Participant who has not yet attained age fifty-nine and one-half (59 1/2) may elect
while still employed to withdraw certain amounts from his Accounts. As soon as is
practicable after the Plan Administrator’s receipt of such an election, there will be
paid or transferred to such Participant cash and, if applicable, common stock from his
Accounts in the following order:

	 	(1)	 	first, from that portion of his After-tax Contribution Account which is
attributable to his Supplemental After-tax Contributions prior to January 1, 1987;
	 
	 	(2)	 	second, from that portion of his After-tax Contribution Account which is
attributable to his Supplemental After-tax Contributions after December 31, 1986;
	 
	 	(3)	 	third, from that portion of his After-tax Contributions Account which is
attributable to Basic After-tax Contributions;
	 
	 	(4)	 	fourth, from that portion of his Rollover Account which is attributable to pre-tax
Rollover Contributions;
	 
	 	(5)	 	fifth, from that portion of his Rollover Account which is attributable to after-tax
Rollover Contributions;
	 
	 	(6)	 	sixth, from that portion of his Company Contribution Account, if vested, which is
attributable to his Basic After-tax Contributions;
	 
	 	(7)	 	seventh, from that portion of his Company Contribution Account, if vested, which is
attributable to Company Matching Contributions under the Allen Bradley Predecessor
Plan;
	 
	 	(8)	 	eighth, from that portion of his Pre-tax Contribution Account which is attributable
to his Supplemental Pre-tax Contributions;
	 
	 	(9)	 	ninth, from that portion of his Account which is attributable to his Catch-up
Contributions.
	 
	 	(10)	 	tenth, from that portion of his Pre-tax Contribution Account, which is attributable
to his Basic Pre-tax Contributions.

	(b)	 	Withdrawals pursuant to this subsection may only be made by a Participant once every
six (6) months; provided, however, that this limitation may be waived by the Plan
Administrator for the six-month period immediately following any due declaration by the
President of the United States under applicable federal law that a particular occurrence or

-30-

 

	 	 	 	situation constitutes a national disaster condition, if the withdrawal is requested for a reason
associated with financial need of the Participant resulting from the effects of the said
condition.

	(c)	 	If a Participant should withdraw an amount from his Company Contribution Account pursuant to
subsection (a)(6), Company Matching Contributions will be suspended and will not be made to
his Company Contribution Account during the six-month period immediately following the
withdrawal.

	(d)	 	Withdrawals from a Participant’s Pre-tax Contribution Account pursuant to subsections (a)(7),
(a)(8), (a)(9) and (a)(10) prior to his attainment of age fifty-nine and one-half (59-1/2)
will only be permitted upon the occurrence of a Hardship and such withdrawals will be
administered pursuant to Section 6.030.

	(e)	 	With the exception of the types of withdrawals available to certain Participants pursuant to
subsection (d), no Participant will be permitted to withdraw amounts in his Company
Contribution Accounts which are attributable to his Basic Pre-tax Contributions prior to his
attainment of age fifty-nine and one-half (59-1/2).

	(f)	 	Withdrawals from Rockwell Automation Stock Funds A and B, the Rockwell Automation Stock Fund
or the Special Stock Funds may, at the election of the withdrawing Participant, be in the form
of cash or, as applicable, in the form of Rockwell Automation, Meritor, Conexant, Rockwell
Collins, Skyworks or MindSpeed common stock.

6.020 Withdrawal from Accounts by Participants Over Age 59-1/2.

	(a)	 	A Participant who has attained age fifty-nine and one-half (59 1/2) and is still employed by
the Company may elect to withdraw any or all of the amounts in his Accounts. As soon as is
practicable after the Plan Administrator’s receipt of such an election, there will be paid or
transferred to such Participant cash and, if applicable, common stock from his Accounts in the
following order:

	 	(1)	 	first, from that portion of his After-tax Contribution Account which is
attributable to his Supplemental After-tax Contributions prior to January 1, 1987;
	 
	 	(2)	 	second, from that portion of his After-tax Contribution Account which is
attributable to his Supplemental After-tax Contributions after December 31, 1986;
	 
	 	(3)	 	third, from that portion of his After-tax Contributions Account which is
attributable to Basic After-tax Contributions;
	 
	 	(4)	 	fourth, from that portion of his Rollover Account which is attributable to pre-tax
Rollover Contributions;

-31-

 

	 	(5)	 	fifth, from that portion of his Rollover Account which is attributable to after-tax
Rollover Contributions;
	 
	 	(6)	 	sixth, from that portion of his Pre-tax Contribution Account which is attributable
to his Supplemental Pre-tax Contributions;
	 
	 	(7)	 	seventh, from that portion of his Account which is attributable to his Catch-up
Contributions.
	 
	 	(8)	 	eighth, from that portion of his Pre-tax Contribution Account which is attributable
to his Basic Pre-tax Contributions
	 
	 	(9)	 	ninth, from that portion of his Company Contribution Account which is attributable
to qualified non-elective contributions (QNECs);
	 
	 	(10)	 	tenth, from that portion of his Company Contribution Account, if vested, which is
attributable to Company Matching Contributions under the Reliance Electric Company
Savings and Investment Plan as of December 31, 1998;
	 
	 	(11)	 	eleventh, from that portion of his Company Contribution Account, if vested, which
is attributable to Company Matching Contributions under the Allen Bradley Predecessor
Plan;
	 
	 	(12)	 	twelfth, from that portion of his Company Contribution Account, if vested, which is
attributable to his After-tax Basic Contributions;
	 
	 	(13)	 	thirteenth, from that portion of his Company Contribution Account, if vested, which
is attributable to his Pre-tax Basic Contributions;
	 
	 	(14)	 	fourteenth, from that portion of his Company Contribution Account attributable to
qualified matching contributions (QMACs); and
	 
	 	(15)	 	fifteenth, from that portion of his Account, if vested, which is attributable to
ESOP dividends.

	(b)	 	Withdrawals from Rockwell Automation Stock Funds A and B, the Rockwell Automation Stock
Fund or the Special Stock Funds may, at the election of the withdrawing Participant, be in
the form of cash or, as applicable, in the form of Rockwell Automation, Rockwell Collins,
Meritor, MindSpeed, Skyworks or Conexant common stock.

6.030 Hardship Withdrawals from Pre-tax Accounts. Subject to any restrictions the Plan
Administrator might establish with respect to loans made pursuant to Section 6.060, the following
provisions may apply, in the event of the occurrence of a Hardship.

-32-

 

	(a)	 	An Participant who has not attained age fifty-nine and one-half (59-1/2) may request approval
to withdraw some or all of the balance of his Pre-tax Contribution Account, if the Participant
can demonstrate that the withdrawal is required as a result of a Hardship (including payment
of any federal, state or local income taxes and penalties reasonably anticipated to result
from such Hardship withdrawal).

	(b)	 	Any determination of the existence of a Hardship, the reasonable availability to the
Participant of funds from other sources and the amount necessary to be withdrawn on account of
such Hardship will be made on the basis of all relevant facts and circumstances and in
accordance with the provisions of this Section and Section 1.270, as applied in a uniform and
nondiscriminatory manner. Such determination may, if it is reasonable in light of all
relevant and known facts and circumstances, be based upon the Participant’s representation
that the Hardship cannot be relieved:

	 	(1)	 	through reimbursement or compensation by insurance or otherwise;
	 
	 	(2)	 	by reasonable liquidation of the Participant’s assets, to the extent that such
liquidation would not itself cause an immediate and heavy financial need;
	 
	 	(3)	 	by suspension of Participant Contributions to the Plan; or
	 
	 	(4)	 	by other distributions (other than Hardship distributions) or loans (which meet the
requirements of Code §72(p)) from the Plan and any other plan maintained by an
Affiliated Company or by any former employer or by borrowing from commercial sources at
reasonable commercial rates.

	(c)	 	An individual who receives a Hardship distribution pursuant to this Section prior to his
attainment of age fifty-nine and one-half (59-1/2) will not be permitted to make any
Participant Contributions to the Plan during the six (6) months immediately following his
receipt of the said Hardship distribution. In addition, such Hardship distributions will only
be available to Participants hereunder only once every six (6) months.

	(d)	 	The proceeds of a Hardship withdrawal made pursuant to this Section after December 31, 1999
may not be distributed or transferred (in the manner described in Section 6.070) from the
Trustee of this Plan as an eligible rollover distribution to the custodian or trustee of an
Eligible Retirement Plan.
	 
	(e)	 	Hardship withdrawals will be paid to a Participant in the order set forth in Section 6.010.

6.040 Forfeitures and Suspensions.

	(a)	 	Subject to the exception described in subsection (b), in the event that a Participant with
less than three (3) years of Vesting Service makes a withdrawal under Section 6.010 with the
result that his Basic After-tax Contribution Account is the source of some or all of such
withdrawal, the Participant will at that time forfeit the unvested portion of his Company

-33-

 

	 	 	 	Contribution Account which is attributable to the withdrawal. The forfeitable interest which is
attributable to the Participant’s Basic After-tax Contributions will be determined by
multiplying the dollar balance of the Participant’s Company Contribution Account by a fraction,
the numerator of which is equal to the dollar value of the Basic After-tax Contributions which
were withdrawn by the Participant and the denominator of which is the total dollar value of his
After-tax Contribution Account attributable to his Basic After-tax Contributions (both such
dollar values to be determined as of the date of the withdrawal). Before July 1, 2005, the
Participant may have the forfeiture restored, if he repays, as an Employee of the Company, the
amount previously withdrawn within five (5) years of the withdrawal; provided, however, that
such a repayment will not be permitted within the first twelve (12) months immediately following
the withdrawal.

	(b)	 	If a Participant applies for and receives a Hardship withdrawal, pursuant to Section 6.030,
from his Basic and /or Supplemental Pre-tax Contribution Account, the forfeitures described in
subsection (a) will not be applicable.

6.050 Allocation of Withdrawals Among Investment Funds. Withdrawals and forfeitures under Sections
6.010 through 6.040 will be taken from a Participant’s Accounts in the Investment Funds in a pro
rata fashion, based upon the relative size of such Accounts, but withdrawals for Hardship will not
be permitted to be taken at any time from a Participant’s Accounts, if any, in the Special Stock
Funds.

6.060 Loans. The Plan Administrator will establish, and may from time to time modify, procedures
pursuant to which any Employee or other “party in interest” (as defined in ERISA §3(14)) may apply
for and receive a loan from the Plan, in an amount not exceeding the least of (a), (b), (c) or (d):

	(a)	 	the aggregate of the balances in the borrower’s Pre-tax and After-tax Contribution Accounts
and, if applicable, in the portion of his Account attributable to QNECs or in his Rollover
Account;

	(b)	 	an amount which, when combined with all outstanding loans to the borrower from all other
plans of all Affiliated Companies, equals Fifty Thousand Dollars ($50,000.00), reduced by the
excess, if any, of

	 	(1)	 	the highest outstanding and unpaid balances of all prior loans to the borrower from
the Plan and such other plans during the twelve (12) month period immediately preceding
the date on which such loan is made, over
	 
	 	(2)	 	the outstanding balance of any loan to the borrower from the Plan or such other
plans on the date on which the loan is made;

	(c)	 	one-half (1/2) of the aggregate of the balances of the borrower’s Accounts; or

-34-

 

	(d)	 	such amount, not exceeding the amounts described in (a) through (c) above, as the Plan
Administrator determines.

All such loans will be made available to all eligible Employees and other parties in interest on a
reasonably equivalent and nondiscriminatory basis and will be governed by the provisions of
Appendix A, as such Appendix is from time to time constituted, pursuant to determination of the
Plan Administrator.

6.070 Transfer of Distribution or Withdrawal to Eligible Retirement Plan. Except in the case of
Hardship withdrawals pursuant to Section 6.030, if a Participant who is entitled to an in-service
withdrawal under this Article VI should so request in writing at the time his election to receive
such withdrawal is made or at such later date as the Plan Administrator may permit, the Plan
Administrator will cause all or a portion of the amounts (including shares of Rockwell Automation,
Meritor, Conexant, Rockwell Collins, Skyworks or MindSpeed common stock) with respect to which the
Participant would be taxable under Code §402 to be transferred from the Trustee directly to the
custodian of an Eligible Retirement Plan specified by the Participant. Prior to effecting such
transfer the Plan Administrator will require evidence reasonably satisfactory to him that the
entity to which such transfer is to be made is in fact an Eligible Retirement Plan and that such
Eligible Retirement Plan may receive the distribution in the forms required under this Article.
(Further, the Plan Administrator shall not direct the Trustee to engage in a direct transfer of
Pre-tax Accounts to another plan unless the Plan Administrator reasonably concludes that the
accepting plan will continue to apply the 401(k) distribution restrictions to transferred Pre-tax
Accounts.)

-35-

 

ARTICLE VII: DEATH BENEFITS

7.010 Designation of a Beneficiary. Subject to the provisions of Section 7.020, in the event of a
Participant’s death, payment of the benefits provided under this Plan will be made to such person
or persons as he has designated as his Beneficiary to receive such benefits.

7.020 Spouse as Automatic Beneficiary. In the case of a Participant who has been married for at
least one (1) year at the time of his death and who dies prior to complete distribution of his
Accounts, the Beneficiary will be deemed to be the Participant’s spouse regardless of any contrary
designation, unless the Participant has filed with the Plan Administrator a written Beneficiary
designation naming a person or persons other than such spouse. Such written designation must be
accompanied by a written consent of the Participant’s spouse, but may be accepted by the Plan
Administrator without such a written consent, if it is established to the Plan Administrator’s
satisfaction that such a written consent cannot be obtained because:

	(a)	 	there is no spouse;
	 
	(b)	 	the spouse cannot be located; or
	 
	(c)	 	other circumstances exist, as permitted under Code §417(a)(2), which prevent presentation of
such consent to the Plan Administrator.

Such written consent (which must be witnessed by a notary public) must be on a form furnished to
the Participant by the Plan Administrator and must acknowledge the effect of the consent. In the
event that a Participant has a new spouse to whom he has been married for a one (1) year period,
the previous designation of a prior spouse will be void and the new spouse will be deemed to be the
Participant’s Beneficiary, unless the Participant makes a written designation of a person or
persons other than the new spouse in a manner described above in this Section.

7.030 Beneficiary Changes. A Participant may change his designation of Beneficiary at any time by
filing a request for such change with the Plan Administrator (or such other person as is designated
by the Plan Administrator). Such change will become effective only upon receipt of the request by
the Plan Administrator (or the Plan Administrator’s delegate), but upon such receipt, the change
will relate back to and be effective as of the date the Participant signed such request; provided,
however, that the Plan Administrator, the other named fiduciaries and the Trust Fund will be not be
liable in any way or to any degree for any payment made to the Beneficiary designated before
receipt of such request.

7.040 Participant’s Estate as Beneficiary in Certain Cases. The benefits payable from a
Participant’s Accounts at the time of his death will be paid to the Participant’s estate, if any of
the following circumstances should exist at the time of his death:

	(a)	 	no valid designation of Beneficiary exists pursuant to this Article;
	 
	(b)	 	the Plan Administrator or Trustee has a doubt as to the rights of a potential Beneficiary; or

-36-

 

	(c)	 	a previously designated Beneficiary predeceases the Participant.

In such case, the Plan Administrator and the Trustee will not be individually liable in any manner
and to any degree with respect to such payment.

7.050 Payment to a Beneficiary. Upon receipt by the Plan Administrator (or another person
designated by him) of evidence satisfactory to such person of the death of a Participant and of the
identity and existence at the time of such death of the Beneficiary, the Plan Administrator will
direct the Trustee to pay the Participant’s Accounts to such Beneficiary in accordance with Article
V.

-37-

 

ARTICLE VIII: TRUST AGREEMENT

8.010 Establishment of Trust Fund. The property resulting from contributions made on behalf of all
Participants, including contributions made by the Company, will be held in a Trust Fund by a
Trustee selected by the Employee Benefit Plan Committee pursuant to a Trust Agreement entered into
between such Trustee and the Employee Benefit Plan Committee.

8.020 Investment Funds and Stock Funds. The Plan, as well as the Trust Fund associated with
the Plan, is intended to at all times be structured and administered in a manner which conforms
to the requirements of ERISA §404(c). In keeping with the requirements of the said ERISA
provision, the Trustee will establish and maintain as parts of the Trust Fund individual
Investment Funds and Stock Funds, as are described below.

	(a)	 	The Investment Funds available under the Trust Fund will consist of mutual funds or
collective funds, accounts or other similar investment vehicles, which will consist of and be
identical to the individual Plan Investment Funds.

	(b)	 	Except as otherwise indicated, the Stock Funds prior to March 31, 2006 are as described
below:

	 	(1)	 	Rockwell Automation Stock Fund A will consist of all cash, Rockwell Automation
common stock and the proceeds and income from that common stock, which are attributable
to Company Matching Contributions. The dividends or other proceeds or income received
by Rockwell Automation Stock Fund A will be invested by the Trustee in Rockwell
Automation common stock and will remain in the said Rockwell Automation Stock Fund A.
Effective July 1, 2005, Rockwell Automation Stock Fund A and Rockwell Automation Stock
Fund B will be combined into the Rockwell Automation Stock Fund.
	 
	 	(2)	 	Rockwell Automation Stock Fund B will consist of all cash, Rockwell Automation
common stock and the proceeds and income from that common stock, which are attributable
to Participant Contributions designated as contributions to Rockwell Automation Stock
Fund B. The dividends and other proceeds or income received by Rockwell Automation
Stock Fund B will be invested by the Trustee in Rockwell Automation common stock and
will remain in the said Rockwell Automation Stock Fund B. Effective July 1, 2005,
Rockwell Automation Stock Fund A and Rockwell Automation Stock Fund B will be combined
into the Rockwell Automation Stock Fund.
	 
	 	(3)	 	Rockwell Automation Stock Fund will consist of all assets of Rockwell Automation
Stock Fund A and Rockwell Automation Stock Fund B as of July 1, 2005, as well as all
cash, Rockwell Automation common stock and the proceeds and income from that common
stock, which are attributable to Participant Contributions designated as contributions
to the Rockwell Automation Stock Fund and Company Matching
Contributions. The dividends or other proceeds or income received by the Rockwell

-38-

 

	 	 	 	Automation Stock Fund will be invested by the Trustee in Rockwell Automation common
stock and will remain in the said Rockwell Automation Stock Fund.

	 	(4)	 	The Meritor Stock Fund will consist of common stock of Meritor Automotive, Inc.
(now known as “ArvinMeritor, Inc.”) received by Rockwell Automation Stock Funds A and B
as part of the Automotive Spin-off. Any dividends or other income received by the
Meritor Stock Fund which are attributable to Company Matching Contributions will be
transferred to Rockwell Automation Stock Fund A and then invested by the Trustee in
Rockwell Automation common stock in the said Rockwell Automation Stock Fund A. Any
dividends or other income received by the Meritor Stock Fund which are attributable to
Participant Contributions will be transferred to a stable value fund.
	 
	 	(5)	 	The Conexant Stock Fund will consist of common stock of Conexant received by
Rockwell Automation Stock Funds A and B as part of the Semiconductor Spin-off. Any
dividends or other income received by the Conexant Stock Fund which are attributable to
Company Matching Contributions will be transferred to Rockwell Automation Stock Fund A
(or, after June 30, 2005, the Rockwell Automation Stock Fund) and then invested by the
Trustee in Rockwell Automation common stock in the said Rockwell Automation Stock Fund
A (or the Rockwell Automation Stock Fund). Any dividends or other income received by
the Conexant Stock Fund which are attributable to Participant Contributions will be
transferred to a stable value fund.
	 
	 	(6)	 	The Skyworks Stock Fund will consist of common stock of Skyworks, Solutions, Inc.
received by the Conexant Stock Fund as part of the Conexant Wireless Spin-off. Any
dividends or other income received by the Skyworks Stock Fund which are attributable to
Company Matching Contributions will be transferred to Rockwell Automation Stock Fund A
(or, after June 30, 2005, the Rockwell Automation Stock Fund) and then invested by the
Trustee in Rockwell Automation common stock in the said Rockwell Automation Stock Fund
A (or, after June 30, 2005, the Rockwell Automation Stock Fund). Any dividends or
other income received by the Skyworks Stock Fund which are attributable to Participant
Contributions will be transferred to a stable value fund.
	 
	 	(7)	 	The Rockwell Collins Stock Fund will consist of common stock of Rockwell Collins
received by Rockwell Stock Funds A and B as part of the Collins Spin-off. Any
dividends or other income received by the Rockwell Collins Stock Fund which are
attributable to Company Matching Contributions will be transferred to Rockwell
Automation Stock Fund A and then invested by the Trustee in Rockwell Automation common
stock in the said Rockwell Automation Stock Fund A. Any dividends or other income
received by the Rockwell Collins Stock Fund which are attributable to Participant
Contributions will be transferred to a stable value fund.
	 
	 	(8)	 	The MindSpeed Stock Fund will consist of common stock of MindSpeed Technologies,
Inc. received by the Skyworks Stock Fund as part of the MindSpeed 

-39-

 

	 	 	 	Technologies
spin-off. Any dividends or other income received by the MindSpeed Stock Fund which are
attributable to Company Matching Contributions will be transferred to Rockwell
Automation Stock Fund A (or, after June 30, 2005, the Rockwell Automation Stock Fund)
and then invested by the Trustee in Rockwell Automation common stock in the said
Rockwell Automation Stock Fund A (or, after June 30, 2005, the Rockwell Automation
Stock Fund). Any dividends or other income received by the MindSpeed Stock Fund which
are attributable to Participant Contributions will be transferred to a stable value
fund.

	(c)	 	Effective March 31, 2006, all of the Special Stock Funds other than the Rockwell
Automation Stock Funds will be discontinued. Participants who fail to transfer their
interests in the Plan from one of the discontinued Special Stock Funds to an Investment
Fund or to the Rockwell Automation Stock Fund (as otherwise permitted under Article IV of
this Plan) by March 31, 2006 will be deemed to have elected to have such amounts
transferred to the appropriate target retirement Investment Fund based on a Participant’s
date of birth.

8.030 Trustee’s Powers and Authority. Subject to the provisions of Section 8.050 concerning
certain power and authority connected with the common stock of Rockwell Automation, which is
held in Rockwell Automation Stock Funds A and B or the Rockwell Automation Stock Fund, the
Trustee will have full authority and discretion with respect to management of the assets of the
Trust Fund, including management of the assets of the individual Investment Funds held
thereunder.

8.040 Statutory Limits. In making all investments pursuant to this Plan, the Trustee will:

	(a)	 	be subject to applicable provisions of ERISA governing the exercise of its fiduciary
responsibilities on behalf of the Trust Fund and this Plan, as well as to all applicable
securities laws governing the investments of the Trust Fund (including any investment
companies or mutual funds therein), but will not be bound by any law or any court doctrine of
any state or jurisdiction limiting trust investments, except as otherwise provided or
permitted by ERISA;
	 
	(b)	 	at all times give consideration to the cash requirements of the Plan; and
	 
	(c)	 	not cause the Plan to engage in any transaction constituting a prohibited transaction under
ERISA §406.

8.050 Duty of Trustee as to Common Stock in Stock Funds.

	(a)	 	Except as otherwise provided in this Section, the duty with respect to the voting, retention,
and tendering of common stock held in Rockwell Automation Stock Funds A and B, the
Rockwell Automation Stock Fund and in the Special Stock Funds will lie solely with the Trustee
and will be exercised in the Trustee’s discretion.

-40-

 

	(b)	 	With respect to any matter as to which a vote of the outstanding shares of such common stock
held in such a Stock Fund is solicited:

	 	(1)	 	the Trustee will solicit the direction in writing of each Participant, as to the
manner in which voting rights of the Participant’s vested and non-vested shares of
common stock held in or credited to a Stock Fund as of the record date fixed for
determining the holders of common stock entitled to vote on such matter are to be
exercised with respect to such matter, and the Trustee will exercise the voting rights
of such shares with respect to such matter in accordance with the last-dated timely
written direction, if any, of such Participant; and
	 
	 	(2)	 	the Trustee, in its sole discretion, will exercise voting rights of shares of
common stock held in the Stock Funds as to which no timely direction has been received
pursuant to paragraph (1).

	(c)	 	In the event of any Tender Offer:

	 	(1)	 	the Trustee will solicit the direction in writing of each Participant, as to the
tendering or depositing of any vested or non-vested shares of common stock held in any
Stock Fund with respect to such Participant and, except as limited by subsection (d),
will tender or deposit such shares pursuant to any such Tender Offer in accordance with
the last dated timely written direction, if any, of such Participant;
	 
	 	(2)	 	the Trustee will have the duty, except as limited by subsection (d), with respect
to the retention, tendering or depositing of shares of common stock held in any Stock
Fund as to which no timely direction has been received pursuant to paragraph (1);

	(d)	 	Shares of common stock held in the Stock Funds will not be tendered or deposited by the
Trustee pursuant to any such Tender Offer until the earlier of:

	 	(1)	 	immediately preceding the scheduled expiration of the Tender Offer pursuant to
which such shares are to be tendered or deposited, or
	 
	 	(2)	 	immediately preceding the expiration of the period during which such shares of
common stock will be taken up and paid for on a pro rata basis pursuant to such Tender
Offer, or
	 
	 	(3)	 	the expiration of thirty (30) days from the date of the Trustee’s solicitation of
Participants’ written direction pursuant to subsection (c)(1).

	(e)	 	The duty with respect to the withdrawal, or other exercise of any right of withdrawal, of
shares of common stock held in a Stock Fund which have been tendered or deposited pursuant to
any such Tender Offer will be solely that of the Trustee; provided that the Trustee may
solicit the direction in writing of each Participant with respect to whom any 

-41-

 

	 	 	such shares of
common stock have been tendered or deposited pursuant to any such Tender Offer as to the
withdrawal of, or other exercise of any right to withdraw, such shares of common stock and, if
such solicitation is made, the Trustee will act in accordance with the last dated timely
written direction, if any, of each such Participant.

8.060 Rights in the Trust Fund. Nothing in the Plan or in the Trust Agreement will be deemed to
confer any legal or equitable right or interest in the Trust Fund in favor of any Participant,
Beneficiary or other person, except to the extent expressly provided in the Plan.

8.070 Taxes, Fees and Expenses of the Trustee.

	(a)	 	The reasonable fees and expenses of the Trustee (including the reasonable expenses of the
Trustee’s counsel) will be paid from the Trust Fund and will constitute a charge on the Trust
Fund until so paid; provided, however, that in no event will the Trust Fund nor the Company
(unless the Company is specifically so directed by resolution of the Company’s Board of
Directors) pay any such Trustee fees or expenses:

	 	(1)	 	for preparation or prosecution of any action against the Company, the Plan, any
member of the Employee Benefit Plan Committee or the Plan Administrator, or
	 
	 	(2)	 	for the defense or settlement of, or the satisfaction of a judgment related to, any
proceeding arising either out of any alleged misfeasance or nonfeasance in any person’s
performance of duties with respect to the Plan or out of any alleged wrongful act
against the Plan.

Included in the reasonable expenses payable from the Trust Fund are any direct internal costs
(which may include reimbursement of compensation of employees of the Company) associated with
Plan operations and administration, the payment of which will be in conformity with the
requirements of Title I of ERISA. Neither the Plan Administrator nor the members of the
Employee Benefit Plan Committee may be compensated from the Plan but may be compensated by the
Company for services rendered on behalf of the Plan.

	(b)	 	Brokerage fees, commissions, stock transfer taxes and other charges and expenses incurred in
connection with transactions relating to the acquisition or disposition of property for or of
the Trust Fund, or distributions therefrom, will be paid from the Trust Fund. Taxes, if any,
payable by the Trustee on the assets at any time held in the Trust Fund or on the income
thereof will be paid from the Trust Fund.

-42-

 

ARTICLE IX: ADMINISTRATION

9.010 General Administration. Authority to control and manage the operation and administration of
the Plan has been vested in the Employee Benefit Plan Committee by the Board, except to the extent
that:

	(a)	 	the Plan Administrator is allocated any such authority under the Plan;

	(b)	 	the Trustee may, pursuant to Article VIII, be granted exclusive authority and discretion to
manage and control all or any portion of the assets of the Plan;

	(c)	 	the Employee Benefit Plan Committee, the Plan Administrator, the Employee Benefits Appeals
Committee and the Trustee constitute ERISA named fiduciaries of the Plan.

Neither the Company nor the Board shall control or manage the operation or administration of the
Plan nor be fiduciaries with respect to the Plan. All functions of the Company and the Board under
the Plan shall be settlor functions and not fiduciary functions.

9.020 Employee Benefit Plan Committee. The Employee Benefit Plan Committee shall consist of the
Company’s Director-Global Benefits and up to four other members appointed by the Company’s
Director-Global Benefits. The Employee Benefit Plan Committee will act, with or without a meeting,
in a manner consistent with the rules and regulations adopted pursuant to Section 9.060(c).

9.025 Employee Benefits Appeals Committee. The Employee Benefits Appeals Committee shall consist
of up to seven (7) members, each appointed by the Plan Administrator. The Plan Administrator shall
designate one member to serve as Chairperson and a second member to service as Vice-Chairperson.
The Employee Benefits Appeals Committee will review claims and appeals pursuant to the procedures
described in Article X.

9.030 Employee Benefit Plan Committee Records. The Employee Benefit Plan Committee will keep such
records and data as it deems appropriate and it will from time to time file with the Board of
Directors such reports as the latter may request. It will be a function of the Employee Benefit
Plan Committee to keep records of the assets of the Trust Fund, based upon reports furnished by the
Trustee, and the evaluations placed thereon by the Committee will be final and conclusive.

9.035 Employee Benefits Appeals Committee Records. The Employee Benefits Appeals Committee will
keep records of all participant claims and appeal submitted to it pursuant to Article X. The
Employee Benefits Appeals Committee may from time to time file with the Plan Administrator or
Employee Benefit Plan Committee such reports as the latter may request.

9.040 Funding Policy. The Employee Benefit Plan Committee will be responsible for determining a
funding policy of the Plan and will from time to time advise the Trustee of such policy.

-43-

 

9.050 Allocation and Delegation of Duties Under Plan. The Employee Benefit Plan Committee,
Employee Benefits Appeals Committee and the Plan Administrator each have the following powers and
authorities:

	(a)	 	to designate agents to carry out responsibilities relating to the Plan, other than fiduciary
responsibilities; and

	(b)	 	to employ such legal, consultant, medical, accounting, clerical and other assistance as it
may deem appropriate in carrying out the provisions of this Plan including one or more persons
to render advice with regard to any responsibility any fiduciary may have under the Plan.

9.060 Employee Benefit Plan Committee Powers. In addition to any powers and authority conferred on
the Employee Benefit Plan Committee elsewhere in the Plan or by law, the Employee Benefit Plan
Committee has the following powers and authority:

	(a)	 	to allocate fiduciary responsibilities, other than trustee responsibilities (responsibilities
under the Trust Agreement to manage or control the Plan assets) to one or more members of the
Employee Benefit Plan Committee or to the Plan Administrator and to designate one or more
persons (other than the Trustee) to carry out such fiduciary responsibilities;

	(b)	 	to determine the manner in which the assets of this Plan, or any part thereof, will be
disbursed by the Trustee, except as relates to the making and retention of investments; and

	(c)	 	to establish rules and regulations from time to time for the conduct of the Employee Benefit
Plan Committee’s business and for the administration and effectuation of its responsibilities
under the Plan.

9.070 Plan Administrator. In addition to any powers and authority conferred on the Plan
Administrator elsewhere in the Plan, the Plan Administrator has the following powers and authority:

	(a)	 	to administer, interpret, construe and apply this Plan and to decide all questions which may
arise or which may be raised by any Employee, Participant, Beneficiary, or other person
whatsoever, and the actions or decisions of the Plan Administrator in regard thereto, or in
regard to anything or matter otherwise within his discretion, will be conclusive and binding
on all Employees, Participants, Beneficiaries, and other persons whatsoever;

	(b)	 	to designate one or more persons, other than the Trustee, to carry out fiduciary
responsibilities (other than trustee responsibilities);

	(c)	 	to establish rules and regulations from time to time for the administration and effectuation
of his responsibilities under the Plan.

-44-

 

The Plan Administrator has such other responsibility as is designated by ERISA as the
responsibility of the administrator of the Plan and will have such other power and authority as is
necessary to fulfill his responsibilities under ERISA or under the Plan. Benefits under the Plan
shall be payable to any party only if the Plan Administrator or its designee, including the
Employee Benefits Appeals Committee, decides in its discretion that the party is entitled to them.
Any final determination by the Plan Administrator shall be binding on all parties. If challenged
in court, such determination shall not be subject to de novo review and shall not
be overturned unless proven to be arbitrary and capricious upon the evidence considered by the Plan
Administrator or its designee at the time of such determination.

9.080 Reliance Upon Documents and Opinions. The members of the Employee Benefit Plan Committee and
the Employee Benefits Appeals Committee, the Plan Administrator, the Board of Directors and the
Company will be entitled to rely upon any tables, valuations, computations, estimates, certificates
and reports furnished by any consultants or consulting firms, opinions furnished by legal counsel
and reports furnished by the Trustee. The members of the Employee Benefit Plan Committee and the
Employee Benefits Appeals Committee, the Plan Administrator, the Board of Directors and the Company
will be fully protected and will not be liable in any manner whatsoever, except as otherwise
specifically provided by law, for anything done or action taken or suffered in reliance upon any
such consultant, Trustee or counsel. Any and all such things done or such actions taken or
suffered by the Employee Benefit Plan Committee, the Employee Benefits Appeals Committee, the Plan
Administrator, the Board of Directors and the Company will be conclusive and binding on all
Employees, Participants, Beneficiaries, and other persons whatsoever except as otherwise
specifically provided by law. The Employee Benefit Plan Committee, the Employee Benefits Appeals
Committee and the Plan Administrator may, but are not required to, rely upon all records of the
Company with respect to any matter or thing whatsoever, and to the extent they rely thereon, such
records will be conclusive with respect to all Employees, Participants, and Beneficiaries.

9.090 Requirement of Proof. The Employee Benefit Plan Committee, the Plan Administrator, the
Employee Benefits Appeals Committee, the Board of Directors or the Company may require satisfactory
proof of any matter under this Plan from or with respect to any Employee, Participant, or
Beneficiary, and no such person may acquire any rights or be entitled to receive any benefits under
this Plan until such proof is furnished as so required.

9.100 Limitation and Indemnification. Except as provided in Part 4 of Title 1 of ERISA, no person
will be subject to any liability with respect to his duties under the Plan, unless he acted
fraudulently or in bad faith. No person will be liable for any breach of fiduciary responsibility
resulting from the act or omission of any other fiduciary or any person to whom fiduciary
responsibilities have been allocated or delegated, except as provided in ERISA §405(a) and
405(c)(2)(A) or (B). No action or responsibility will be deemed to be a fiduciary action or
responsibility except to the extent required by ERISA. The Company shall indemnify the Plan
Administrator, each member of the Employee Benefit Plan Committee, each member of the
Employee Benefits Appeals Committee and any other employee of the Company with duties under the
Plan, to the full extent permitted by law against expenses, liability and loss (including
attorney’s fees, judgments, fines, ERISA excise taxes or penalties and amounts paid in

-45-

 

settlement) reasonably incurred by him in connection with any claims against him by reason of this position in
connection with the Plan or his duties under the Plan. Such rights of indemnification shall
include the right to be paid by the Company expenses, including attorney’s fees, incurred in
defending any civil, criminal, administrative or investigative action, suit or proceeding, in
advance of the final disposition of such action, suit or proceeding upon receipt of an
understanding by or on behalf of such person to repay such amount if it shall be determined that
such person is not entitled to be indemnified by the Company.

9.110 Mailing and Lapse of Payments. All payments under the Plan will be delivered in person or
mailed to the last address of the Participant (or, in the case of the death of the Participant, to
that of any other person entitled to such payments under the terms of the Plan) furnished pursuant
to Section 9.130 below. If the Participant is deceased and payment cannot be made alternately to
the estate of either and no surviving spouse, child, grandchild, parent, brother or sister of the
Participant or his Beneficiary are known to the Plan Administrator or the Trustee or, if known,
cannot with reasonable diligence be located, the amount payable will be retained by the Trustee
until the amount can be distributed pursuant to the provisions of this Plan or of applicable law.

9.120 Non-Alienation. No right or benefit provided for in the Plan will be subject in any manner
to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance (including
garnishment, attachment, execution or levy of any kind or charge) and any attempt to anticipate,
alienate, sell, transfer, assign, pledge, encumber or charge the same will be void; provided,
however, that the foregoing will not apply to the creation, assignment, or recognition of a right
to any benefit payable with respect to a Participant pursuant to:

	(a)	 	a federal income tax levy issued against the Participant by the Internal Revenue Service; or

	(b)	 	a domestic relations order, which the Plan Administrator determines is a qualified domestic
relations order under Code §414(p) and which requires that the order’s alternate payee (as
defined in the said Code section) will be paid in a lump sum as soon as is practicable
following the order’s issuance.

9.130 Notices and Communications. Each Participant will be responsible for furnishing the Plan
Administrator or his designee with his current address and the correct current name and address of
his Beneficiary. All communications from Participants must be in the manner from time to time
prescribed by the Plan Administrator or his designee and must be addressed or communicated
(including telephonic communications) to such entity or Company office as may be designated by the
Plan Administrator, and will be deemed to have been given to the Company when received by such
entity or Company office. Each communication directed to a Participant or Beneficiary must be in
writing and may be delivered in person or by mail, in which latter event it will be deemed to have
been delivered and received by him when so deposited in the United States Mail with postage prepaid addressed to the Participant or Beneficiary at
his last address of record with the office designated by the Plan Administrator.

-46-

 

9.140 Company Rights. The Company’s rights to discipline or discharge Employees or to exercise its
rights as to incidents and tenure of employment will not be affected in any manner by reason of the
existence of the Trust Agreement or the Plan, or any action taken under them.

9.150 Payments on Behalf of Incompetent Participants or Beneficiaries. In the event that the Plan
Administrator or his designee finds that any Participant or Beneficiary to whom a benefit is
payable under the terms of this Plan is unable to care for his affairs because of illness or
accident, is otherwise mentally or physically incompetent, or unable to give a valid receipt, the
Plan Administrator may cause the payment becoming due to such Participant or Beneficiary to be paid
to another person for his benefit without responsibility on the part of the Plan Administrator, the
Employee Benefit Plan Committee, the Employee Benefits Appeals Committee, the Company or the
Trustee to follow the application of such payment. Any such payment will be a payment for the
account of the Participant or Beneficiary and will operate as a complete discharge of all liability
therefor under this Plan of the Trustee, the Company, the Plan Administrator, the Employee Benefits
Appeals Committee and the Employee Benefit Plan Committee.

-47-

 

ARTICLE X: PARTICIPANT CLAIMS

10.010 Claims and Appeals Procedures. The following paragraphs set forth the exclusive procedure
for making claims against the Plan. Any person making a claim hereunder shall proceed as follows:

	(a)	 	Request for Benefits. Benefits shall be requested by written application on a form
filed in accordance with procedures established and uniformly applied by the Plan
Administrator or its delegate. The Employee Benefits Appeals Committee or its delegate shall
make all determinations as to the right of any Participant, Beneficiary, or spouse to receive
a benefit under the Plan and the amount of such benefit. The time, manner, and form of
distribution of such benefit shall occur in accordance with the terms of the Plan.

	(b)	 	Claims. If a Participant believes that the requested benefit was erroneously denied
or that the amount of a withdrawal or distribution from the Plan is in error or if an Employee
believes that he has been improperly denied the right to participate in the Plan or receive a
contribution to the Plan, such Participant or Employee must make a claim to the Employee
Benefits Appeals Committee in such manner and pursuant to such procedure as established by the
Committee. A claimant who fails to reduce a claim to writing shall be deemed not to have made
such claim.

	(c)	 	Decision on Claims. The Employee Benefits Appeals Committee or its delegate will
make a decision with respect to a claim within 90 days of the receipt of the written claim,
unless special circumstances require an extension of time for processing, in which case a
decision must be rendered within 180 days (notice of the delay must be furnished within the
initial 90-day period, however). If a claim is wholly or partially denied, the claimant shall
receive from the Employee Benefits Appeals Committee a written notice which includes the
following: (A) the specific reason or reasons for the denial, (B) specific references to
pertinent provisions of the Plan upon which the denial is based, (C) a description of any
additional material or information necessary for the claimant to perfect the claim and an
explanation as to why such material or information is necessary, (D) appropriate information
as to the steps to be taken if the claimant wishes to submit a claim for review and (E) a
statement of the claimant’s right to bring an action under ERISA §502(a) following an adverse
benefit determination on review.

	(d)	 	Appeal. Any person whose claim has been denied as set forth in (c) may appeal the
denial to the Employee Benefits Appeals Committee by filing a written appeal within sixty (60)
days of the date of receipt of the denial. In such review, the claimant or his duly
authorized representative shall have the right to review any pertinent Plan documents and to
submit any issues or comments in writing. In addition, the claimant (i) shall have the right
to submit documents, records, and other information relating to the claim for benefits; and
(ii) shall be provided upon request and free of charge, reasonable access to and copies of all
documents, records, and other information that is relevant to the claim for benefits. In the
sole discretion of the Employee Benefits Appeals Committee or its delegate, the Committee may
arrange to

-48-

 

	 	 	meet with the claimant and/or the claimant’s representative or have a hearing for the purpose of
understanding the claimant’s position and any related evidence which the claimant wishes to
offer. In all cases, the Committee’s review of the appeal shall take into account all comments,
documents, records, and other information submitted by the claimant, without regard to whether
such information was submitted or considered in the initial benefit determination.

          For purposes of this Section, information is considered “relevant” to a claimant’s claim if
such document, record, or other information (i) was relied upon in making the benefit
determination; (ii) was submitted, considered, or generated in the course of making the benefit
determination, without regard to whether such document, record, or other information was relied
upon in making the determination; or (iii) demonstrates compliance with the Plan’s review
procedures and that, if appropriate, the Plan provisions have been applied consistently with
respect to similarly situated claimants.

	(e)	 	Decision on Appeal. The Employee Benefits Appeals Committee or its delegate, within
sixty (60) days after receipt of the request for review, or, in special circumstances such as
where the Committee or its delegate in its sale discretion finds there is a need to hold a
hearing, within one hundred and twenty (120) days of receipt of the request for review (in
which case notice of the delay will be given to the claimant during the initial sixty- (60)
day period), shall give written notice of its decision to the claimant in writing. The notice
shall include specific reasons for the decision and specific references to the pertinent Plan
provisions upon which the decision is based. In addition, the written notice of the decision
denying a claim shall contain (i) a statement that the claimant is entitled to receive, upon
request and free of charge, reasonable access to and copies of all documents, records, and
other information that is relevant to the claimant’s claim for benefits, and (ii) a statement
of the claimant’s right to bring an action under ERISA §502(a). If the appeal has not been
granted and the notice is not furnished within the period of time specified above, the appeal
shall be deemed to be denied. The decision on appeal shall be binding on all parties.

10.020 Limitation on Legal Action. In the event a claim is finally determined under this Article
X, no legal action shall be brought against the Plan, the Plan Administrator, the Employee Benefit
Plan Committee, the Employee Benefits Appeals Committee or the Company more than two years after
the date of final determination, nor shall any claim or other action be brought against the Plan,
the Plan Administrator, the Employee Benefit Plan Committee, the Employee Benefits Appeals
Committee or the Company more than two years after the claimant knew or should have known of the
existence of such claim or action.

-49-

 

ARTICLE XI: AMENDMENT, MERGERS, TERMINATION, ETC.

11.010 Amendment. The Board of Directors or its designee may, at any time and from time to time,
amend this Plan in whole or in part. However, except as provided in Section 11.040 below, no
amendment may be made, the effect of which would be:

	(a)	 	to cause any contributions paid to the Trustee to be used for or diverted to purposes other
than providing benefits to the Participants and their Beneficiaries, and defraying reasonable
expenses of administering the Plan, prior to satisfaction of all liabilities with respect to
Participants and their Beneficiaries;

	(b)	 	to have any retroactive effect so as to deprive any Participant or Beneficiary of any benefit
to which he would be entitled under this Plan if his employment were terminated immediately
before such amendment; or
	 
	(c)	 	to increase the responsibilities or liabilities of the Trustee without its written consent.

11.020 Transfer of Assets and Liabilities. The Employee Benefit Plan Committee at any time may, in
its sole discretion and without the consent of the Participant or his representative, cause the
Trustee to segregate part of the assets of the Trust Fund into one or more separate trust funds and
designate a group of Participants whose benefits will be provided solely from each such segregated
fund.

The Board of Directors may, in its sole discretion without the consent of any Participant or his
representative, establish a separate plan to cover any such group of Participants. The initial
terms and conditions of any such plan will be identical to the extent such terms and conditions
affect the rights of Participants under the Plan. Amendment to the Plan will not be necessary to
carry out the provisions of this Section.

11.030 Merger Restriction. The Company may, by action of the Board of Directors, merge this Plan,
in whole or in part, with any other plan sponsored by the Company or by an Affiliate of the
Company. Notwithstanding any other provision in this Plan, the Plan may not in whole or in part be
merged or consolidated with, or have its assets or liabilities transferred to any other plan,
unless each affected Participant in this Plan would (if the Plan then terminated) receive a benefit
immediately after the merger, consolidation, or transfer which is equal to or greater than the
benefit he would have been entitled to receive immediately before the merger, consolidation, or
transfer (if the Plan had then terminated).

11.040 Suspension of Contributions. The Company may, without amendment of the Plan and without the
consent of any Participant or representative of any Participant, suspend contributions to the Plan
as to all or certain Participants by action of the Board of Directors. In any event, the Company
will suspend contributions at any time when the amount of any contribution by it would be in excess
of the earnings, including retained earnings, of the Company. Upon a suspension, the Employee
Benefit Plan Committee may, in its sole discretion permit the Trust

-50-

 

Fund to continue to be held by the Trustee, or may segregate one or more parts of
the Trust Fund, as provided in Section 11.020.

11.050 Discontinuance of Contributions. The Company may, by action of the Board of Directors,
without amendment of the Plan and without the consent of any Participant or representative of any
Participant, discontinue such contributions to the Plan as to all or certain Participants.

11.060 Termination. The Company may terminate or partially terminate the Plan at any time. Upon
such termination or partial termination of the Plan, or upon a complete discontinuance of
contributions pursuant to Section 11.050, the Accounts of each affected Participant will remain
fully vested and nonforfeitable. In the event of termination or partial termination the Employee
Benefit Plan Committee may, without the consent of any Participant or other person, permit the
Trustee to retain all or part of the Trust Fund or distribute all or part of the Trust Fund to the
Participants or their spouses or Beneficiaries.

-51-

 

ARTICLE XII: STATUTORY LIMITATIONS

12.010 Annual Limits of Participants’ Account Increases. This Article is intended to conform the
Plan to the requirements of Code §415, and the regulations issued thereunder; and will be
administered and interpreted in accordance with such requirements and regulations; and
notwithstanding any provision of this Plan to the contrary, no amount may be credited to any
Participant’s Account which is in excess of the limitation imposed by said §415, as from time to
time amended or replaced. The amount allocated in each calendar year to any Participant under the
combination of defined contribution plans of all Affiliated Companies cannot exceed the lesser of
Forty Thousand Dollars ($40,000.00), or such larger amount as may be established under Code
§415(d)(1) to reflect an increase in the cost of living, or 100% of the Participant’s total
compensation. For purposes of this limitation, the amount allocated will be deemed to be comprised
of Company Matching Contributions and the Participant’s Pre-tax and After-tax Contributions.

12.015 Excess Annual Additions. If an amount in excess of the limitation imposed by Code §415 were
to be credited to a Participant’s Account in contravention of Section 12.010 with respect to a
particular Plan Year as a result of estimation of annual Compensation, the allocation of
forfeitures or a reasonable error in determining the amount of elective deferrals that may be made
with respect to the Participant pursuant to Code §402(g)(3), such excess will be used to reduce
employer contributions for that Participant for the following Plan Year (and, if necessary, for
succeeding Plan Years), if the Participant is still a Participant at the end of such first Plan
Year. If, on the other hand, the said Participant is not covered by the Plan in that Plan Year,
then the excess will be held in suspense for the remainder of the Plan Year and will be allocated
or reallocated in the following Plan Years among the Accounts of all of the Participants prior the
making of any contributions in such following Plan Years.

12.020 Combining Similar Plans. For purposes of this Article, all defined contribution plans which
are required to be aggregated under Code §414(b) will be so aggregated and the limitation set forth
herein will be applied to the total amounts allocated under all such plans.

-52-

 

ARTICLE XIII: MISCELLANEOUS

13.010 Benefits Payable only from Trust Fund. All benefits payable hereunder will be provided
solely from the trust, and the Company assumes no responsibility for the acts of the Trustee,
except as provided in the Trust Agreement.

13.020 Requirement for Release. Any payment to any Participant or a Participant’s present, future
or former spouse or Beneficiary in accordance with the provisions of this Plan will, to the extent
thereof, be in full satisfaction of all claims against the Plan, the Plan Administrator, the
Trustee and the Company, and the Trustee may require such Participant or Beneficiary, as a
condition precedent to such payment to execute a receipt and release to such effect.

13.030 Transfers of Stock. Transfers of Rockwell Automation, Meritor and Conexant, MindSpeed,
Rockwell Collins and Skyworks common stock from the Plan will be made as soon as practicable, but
the Company, the Plan Administrator, any other Named Fiduciary and the Trustee will not have any
responsibility for any decrease in the value of such common stock between the Valuation Date used
for determination of the number of shares to which the Participant is entitled and the date of
transfer by the transfer agent, nor will the Participant receive any dividends, rights, options or
warrants on such stock other than those payable to stockholders of record as of a date on or after
the date of transfer.

13.040 Rights of Reemployed Veterans. Notwithstanding any other provision of the Plan to the
contrary, contributions, benefits and service credit with respect to qualified military service
will be provided in accordance with Code §414(u).

13.050 Qualification of the Plan. The Company intends for the Plan to be qualified and approved by
the Internal Revenue Service under Code §401(a) and for Company Contributions to be deductible by
the Company for federal income tax purposes. Continuation of the Plan is contingent upon and
subject to retaining such qualification and approval. Any modification or amendment of the Plan or
the Trust Agreement may be made retroactively by the Company, if necessary or appropriate, to
qualify or maintain the Plan and the Trust as a plan and trust meeting the requirements of
applicable provisions of the Code and of other federal and state laws, as are now or in the future
may be in effect. No contribution made by the Company may revert to the Company, unless such
contribution was the result of a good faith mistake of fact, in which case such contribution may be
returned to the Company within one (1) year to the extent permitted by all applicable laws.

13.060 Interpretation. The masculine gender will include the feminine and the singular will
include the plural unless the context clearly indicates otherwise.

13.070 No Contract of Employment. The adoption and maintenance of this Plan shall not be construed
as creating any contract of employment between the Company or any Affiliated Company and any
employee, and each such Company shall have the right in all respects to deal with its employees,
their hiring, discharge, compensation and conditions of
employment as though the Plan did not exist. No employee shall have any right to question the
action of any

-53-

 

such Company in discontinuing its contributions to this Plan or in terminating this
Plan in its entirety. Each Participant shall have the right to see the record of his Account(s)
but no right to inquire as to the Accounts of other Participants.

-54-

 

ARTICLE XIV: MINIMUM DISTRIBUTION REQUIREMENTS

14.010 General Rules. This Article sets forth revised rules regarding minimum distributions
utilizing Model Plan Amendment 1 from Revenue Procedure 2002-29 (with minor changes as permitted by
that Revenue Procedure) as set forth below. Notwithstanding the foregoing, this Article XIV does
not expand the forms of distribution available under the Plan, nor does it allow Participants to
defer commencement of distributions beyond what is allowed in Article V. If another provision of
the Plan calls for an earlier distribution or a larger payment on any given date, such provision
shall supersede this Article XIV.

	(a)	 	Effective Date. The provisions of this Article XIV will apply for purposes of
determining required minimum distributions for calendar years beginning with the 2003 calendar
year.

	(b)	 	Precedence. Except as provided above, the requirements of this Article will take
precedence over any inconsistent provisions of the Plan.

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

14.020 Time and Manner of Distribution.

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

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

	 	(i)	 	if the Participant’s surviving spouse is the Participant’s sole designated beneficiary,
then distributions to the surviving spouse will begin by December 31 of the calendar year
immediately following the calendar year in which the Participant died, or by December 31 of
the calendar year in which the Participant would have attained age 70 1/2, if later.
	 
	 	(ii)	 	if the Participant’s surviving spouse is not the Participant’s sole designated
beneficiary, then distributions to the designated beneficiary will begin by December 31 of
the calendar year immediately following the calendar year in which the Participant died.
	 
	 	(iii)	 	if there is no designated beneficiary as of September 30 of the year following the
year of the Participant’s death, the Participant’s entire interest will be distributed by
December 31 of the calendar year containing the fifth anniversary of the Participant’s
death.
	 
	 	(iv)	 	if the Participant’s surviving spouse is the Participant’s sole designated beneficiary
and the surviving spouse dies after the Participant but before distributions to the
surviving spouse begin, this Section 14.020(b), other than Section 14.02(b)(i), will apply
as if the surviving spouse were the Participant.

-55-

 

For purposes of this Section 14.020(b) and Section 14.040, unless Section 14.020(b)(iv) applies,
distributions are considered to begin on the Participant’s required beginning date. If Section
14.020(b)(iv) applies, distributions are considered to begin on the date distributions are required
to begin to the surviving spouse under Section 14.020(b)(i). If distributions under an annuity
purchased from an insurance company irrevocably commence to the Participant before the
Participant’s required beginning date (or to the Participant’s surviving spouse before the date
distributions are required to begin to the surviving spouse under Section 14.020(b)(i)), the date
distributions are considered to begin is the date distributions actually commence.

	(c)	 	Forms of Distribution. Unless the Participant’s interest is distributed in the form
of an annuity purchased from an insurance company or in a single sum on or before the required
beginning date, as of the first distribution calendar year distributions will be made in
accordance with Sections 14.030 and 14.040 of this Article. If the Participant’s interest is
distributed in the form of an annuity purchased from an insurance company, distributions
thereunder will be made in accordance with the requirements of Code §401(a)(9) of the Code and
the Treasury regulations.

14.030 Required Minimum Distributions During Participant’s Lifetime.

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

	 	(i)	 	the quotient obtained by dividing the Participant’s account balance by the distribution
period in the Uniform Lifetime Table set forth in Treas. Reg. §1.401(a)(9)-9 of the
Treasury regulations, using the Participant’s age as of the Participant’s birthday in the
distribution calendar year; or
	 
	 	(ii)	 	if the Participant’s sole designated beneficiary for the distribution calendar year is
the Participant’s spouse, the quotient obtained by dividing the Participant’s account
balance by the number in the Joint and Last Survivor Table set forth in Treas. Reg.
§1.401(a)(9)-9 of the Treasury regulations, using the Participant’s and spouse’s attained
ages as of the Participant’s and spouse’s birthdays in the distribution calendar year.

(b) Lifetime Required Minimum Distributions Continue Through Year of Participant’s
Death. Required minimum distributions will be determined under this Section 14.030
beginning with the first distribution calendar year and up to and including the distribution
calendar year that includes the Participant’s date of death.

14.040 Required Minimum Distributions After Participant’s Death.

	(a)	 	Death On or After Date Distributions Begin.

	 	(i)	 	Participant Survived by Designated Beneficiary. If the Participant dies on or
after the date distributions begin and there is a designated beneficiary, the minimum
amount that

-56-

 

	 	 	 	will be distributed for each distribution calendar year after the year of the Participant’s
death is the quotient obtained by dividing the Participant’s account balance by the longer
of the remaining life expectancy of the Participant or the remaining life expectancy of the
Participant’s designated beneficiary, determined as follows:

	 	(A)	 	The Participant’s remaining life expectancy is calculated using the age of the
Participant in the year of death, reduced by one for each subsequent year.
	 
	 	(B)	 	If the Participant’s surviving spouse is the Participant’s sole designated
beneficiary, the remaining life expectancy of the surviving spouse is calculated for
each distribution calendar year after the year of the Participant’s death using the
surviving spouse’s age as of the spouse’s birthday in that year. For distribution
calendar years after the year of the surviving spouse’s death, the remaining life
expectancy of the surviving spouse is calculated using the age of the surviving spouse
as of the spouse’s birthday in the calendar year of the spouse’s death, reduced by one
for each subsequent calendar year.
	 
	 	(C)	 	If the Participant’s surviving spouse is not the Participant’s sole designated
beneficiary, the designated beneficiary’s remaining life expectancy is calculated using
the age of the beneficiary in the year following the year of the Participant’s death,
reduced by one for each subsequent year.

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

	(b)	 	Death Before Date Distributions Begin.

	 	(i)	 	Participant Survived by Designated Beneficiary. If the Participant dies before
the date distributions begin and there is a designated beneficiary, the minimum amount that
will be distributed for each distribution calendar year after the year of the Participant’s
death is the quotient obtained by dividing the Participant’s account balance by the
remaining life expectancy of the Participant’s designated beneficiary, determined as
provided in Section 14.040(a).
	 
	 	(ii)	 	No Designated Beneficiary. If the Participant dies before the date
distributions begin and there is no designated beneficiary as of September 30 of the year
following the year of the Participant’s death, distribution of the Participant’s entire
interest will be completed by December 31 of the calendar year containing the fifth
anniversary of the Participant’s death.

-57-

 

	 	(iii)	 	Death of Surviving Spouse Before Distributions to Surviving Spouse Are Required to
Begin. If the Participant dies before the date distributions begin, the Participant’s
surviving spouse is the Participant’s sole designated beneficiary, and the surviving spouse
dies before distributions are required to begin to the surviving spouse under Section
14.020(b)(i), this Section 14.040(b) will apply as if the surviving spouse were the
Participant.

14.050 Definitions.

     (a) Designated beneficiary. The individual who is designated as the beneficiary under
Section 1.130 of the Plan and is the designated beneficiary under Code §401(a)(9) and Treas. Reg.
§1.401(a)(9)-1, Q&A-4, of the Treasury regulations.

     (b) Distribution calendar year. A calendar year for which a minimum distribution is
required. For distributions beginning before the Participant’s death, the first distribution
calendar year is the calendar year immediately preceding the calendar year which contains the
Participant’s required beginning date. For distributions beginning after the Participant’s death,
the first distribution calendar year is the calendar year in which distributions are required to
begin under Section 14.020(b). The required minimum distribution for the Participant’s first
distribution calendar year will be made on or before the Participant’s required beginning date. The
required minimum distribution for other distribution calendar years, including the required minimum
distribution for the distribution calendar year in which the Participant’s required beginning date
occurs, will be made on or before December 31 of that distribution calendar year.

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

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

     (e) Required beginning date. The date specified in the Section 5.020 of the Plan.

-58-

 

APPENDIX A

PROCEDURES, TERMS AND CONDITIONS OF LOANS

Eligibility for Loans. The individuals eligible to obtain loans from the Plan
(“Borrowers”) are limited to:

     (1) Employees, and

     (2) non-Employees who are “parties in interest” (as defined in ERISA §3(14))

who have Plan Account balances. An Employee who wishes to obtain a loan must be employed on an
active payroll of an Affiliated Company at the time of the loan application. A party in interest
who is not an Employee will be eligible to obtain a loan only if an agreement can be provided by
the party’s current employer to deduct and remit the required loan repayments to the Savings Plan.

Limitation on Number and Minimum Amount of Loans. Only two (2) loans to a Borrower will be
permitted to be outstanding from all Company sponsored savings plans at any one time. Each loan
must be for a minimum of One Thousand Dollars ($1,000.00).

Maximum Amount of Loan. The amount which a Borrower will be permitted to borrow from the
Plan is based on the aggregate value of the Borrower’s Accounts, determined in accordance with the
Plan, and may not exceed the least of the amounts described in Section 6.060 of the Plan. The
maximum amount of any loan will be further limited to ensure that, after applying the appropriate
interest rate and taking into account all applicable deductions, the resulting periodic repayments
will not exceed the Borrower’s net earnings. The deductions referred to in the preceding sentence
include statutory withholdings, deductions for employee benefits and all Pre-tax contributions to
the Plan.

Loan Applications. Loan applications by prospective Borrowers will be made via telephone
to the Plan Administrator or such third party administrator as may be designated by the Plan
Administrator (either of whom is hereafter referred to as the “Loan Administrator”). The Loan
Administrator will then review the telephonic application and determine eligibility for the loan.
If the loan is approved, the Loan Administrator will prepare and forward to the Borrower a letter
notifying the Borrower of the approval, together with a Truth in Lending Statement and a check for
the loan amount, all in form approved by the Plan Administrator. The Borrower’s endorsement of the
loan check will be considered to be the Borrower’s agreement to the terms of the loan. Failure by
the Borrower to endorse the check within thirty (30) days after the date of the check will be
deemed to be a withdrawal by the Borrower of the loan application.

Loan Initiation Fee. A fee in the amount of Seventy-five Dollars ($75.00) will be assessed
in connection with the initiation of each loan. This fee will be deducted from the Borrower’s Plan
Account at the same time that the loan is approved and processed.

-59-

 

Source of Loan Funds. Each loan will be funded from the Borrower’s Investment Funds on a
pro rata basis, based upon the relative size of the balance of each such Fund, by withdrawing the
required amounts from the Plan Account(s) of the Borrower in the following order:

	 	 	 	 	 
	First

	 	—
	 	from amounts in the Borrower’s Pre-tax Contribution Account attributable to his Supplemental Pre-tax
Contributions;
	 
	 	 	 	 
	Second

	 	—
	 	from amounts in the Borrower’s Pre-tax Contribution Account attributable to his Catch-up Contributions;
	 
	 	 	 	 
	Third

	 	—
	 	from amounts in the Borrower’s Pre-tax Contribution Account attributable to his Basic Pre-tax Contributions;
	 
	 	 	 	 
	Fourth

	 	—
	 	from amounts in the Borrower’s Account attributable to QNECs;
	 
	 	 	 	 
	Fifth

	 	—
	 	from amounts in the Borrower’s After-tax Contribution Account attributable to his Supplemental After-tax
Contributions;
	 
	 	 	 	 
	Sixth

	 	—
	 	from amounts in the Borrower’s After-tax Contribution Account attributable to his Basic After-tax Contributions;
	 
	 	 	 	 
	Seventh

	 	—
	 	from amounts in the Borrower’s Contribution Accounts attributable to his pre-tax Rollover Contributions; and
	 
	 	 	 	 
	Eighth

	 	—
	 	from amounts in the Borrower’s Contribution Accounts attributable to his after-tax
Rollover Contributions.

Determination of Loan Interest Rate. The interest rate to be charged for loans will be one
percent (1%) over the prime rate stated by The Wall Street Journal published on the last business
day of each calendar month.

Term of Loans. Loans will be permitted for terms of 12, 24, 36, 48 or 60 months for loans
other than those for the purpose of purchasing a primary residence, which will be permitted for
terms up to 120 months.

Repayments. Loan repayments by Employees will be deducted from the Employee’s pay check
each pay period. If a pay check is insufficient to cover the full amount of the loan repayment, no
deduction will be made, and the repayment will be deducted from the Employee’s next pay check.

Prepayments. Prepayment of a loan will not be permitted during the first 30 days of the
loan’s existence, but the full unpaid balance of the loan may be prepaid by a Borrower at any time
after 30 days. Partial prepayments in excess of scheduled payroll deductions will not be accepted.

-60-

 

Missed Payments. If any payment is not made, interest will continue to accrue on such
missed payment and subsequent payments will be applied first to accrued and unpaid interest on the
missed payment and then to principal. A notice will be mailed to the last known address of the
Borrower stating that if three (3) consecutive months of payments are missed, the loan will be
considered to be in default.

Termination of Employment. If a Borrower who is an Employee terminates employment or is on
an unpaid Leave, or if a Borrower who is not an Employee is no longer able to repay a loan through
payroll deductions, the Borrower may continue to make loan repayments by bank check, cashier check,
personal check or money order. Such repayments to the Plan will be made through the Loan
Administrator at an address to be provided to the Borrower by the Loan Administrator.

Default. A loan will be considered to be in default after three (3) consecutive months of
payments have been missed during the term of the loan or when a Borrower revokes a payroll
deduction authorization. In the event of such a default, a distribution of the loan amount,
including both unpaid principal and accrued but unpaid interest, will be deemed to have occurred
(as described in §1.401(k)-1(d)(6)(ii) of the Treasury Regulations) and an information return
reflecting the tax consequences, if any, to the Borrower will be issued. Upon the occurrence of an
event permitting actual distribution of the Borrower’s Account pursuant to the provisions of Code
§401(k) (whether distribution of the Borrower’s entire Plan Account will actually be made or will
be deferred pursuant to applicable provisions of the Plan), the unpaid balance of a defaulted loan
will be charged off against the Borrower’s Account. If no distribution event has occurred, which
would otherwise permit payment to the Borrower under Code §401(k), the unpaid balance of the loan
will be retained in the Account until such time as payment would be permitted under that Code
section, at which time the unpaid balance of the loan, including any accrued and unpaid interest,
will be charged off against the Borrower’s Account.

-61-

 

APPENDIX B

TOP-HEAVY PLAN PROVISIONS

In the event that this Plan is or becomes a Top-Heavy Plan (as that term is defined and described
in this Appendix B, the following special provisions will become applicable to the Plan and will
supersede the comparable provisions contained elsewhere in the Plan.

B -I. DEFINITIONS

Solely for purposes of this Appendix B, the following special definitions will be in effect:

B1.010 Aggregation Group means a group of plans (including this Plan) maintained by one or more
Affiliated Companies in which a Key Employee is a participant or which is combined with this Plan
in order to meet the coverage and nondiscrimination requirements of Code §§410 and 401(a)(4). The
Aggregation Group also includes those plans other than this Plan which need not be aggregated with
this Plan to meet Code Requirements, but which are selected by the Company to be part of a
selective Aggregation Group including this Plan, if the Aggregation Group would continue to meet
the requirements of Code §§401(a)(4) and 410 with such plans being taken into account.

B1.020 Compensation means compensation as described in Code §415(c)(3), including employer
contributions made pursuant to any salary reduction arrangement.

B1.030 Determination Date means the last day of the immediately preceding plan year or, in the case
of the first plan year of any plan, the last day of such plan year.

B1.040 Employee means not only an Employee as defined in Article I, but also any beneficiary of
such Employee.

B1.050 Key Employee means each Employee or former Employee who has, at any time during the five (5)
year period ending on the Determination Date, performed services for an Affiliated Company and who
is, at any time during the plan year ending on the Determination Date, or was, during any one of
the four plan years preceding the plan year ending on the Determination Date, any one or more of
the following:

	(a)	 	an officer of the Company having annual compensation greater than fifty percent (50%) of the
amount in effect under Code §415(b)(1)(A) for any plan year;

	(b)	 	one of the ten (10) persons having annual compensation from all Affiliated Companies greater
than the limitation in effect under Code §415(c)(1)(A) and owning (or considered as owning
within the meaning of Code §318, as modified by Code §416(i)(B)(iii)), the largest interests
in the Company;

-62-

 

	(c)	 	any person owning (or considered as owning within the meaning of Code §318, as modified by
Code §416(I)(B)(iii), more than five percent (5%) of the outstanding stock of the Company (or
stock having more than five percent (5%) of the total combined voting power of all stock of
the Company); or

	(d)	 	any person who has annual compensation of more than One Hundred and Fifty Thousand Dollars
($150,000.00) (as adjusted under Code §416(i)(1) of the Code) and would be described in
paragraph (c) above, if “one percent (1%)” was substituted for “five percent (5%)”.

For purposes of determining whether a person is an officer in subsection (a), in no event will more
than fifty (50) Employees or, if less than fifty (50) Employees, the greater of three (3) Employees
or ten percent (10%) of all Employees, be considered Key Employees solely by reason of officer
status. In addition, persons who are merely nominal officers will not be treated as officers
solely by reason of their titles.

B1.060 Non-Key Employee means any employee who is not a Key Employee. Non-Key Employee also means
an employee who is a former Key Employee.

B1.070 Top-Heavy Plan means a qualified retirement plan, including this Plan if applicable, which
is included in, or which constitutes, an Aggregation Group under which, as of the Determination
Date, the sum of the present values of accrued benefits for all Key Employees under all defined
benefit plans in the Aggregation Group and the aggregate of all accounts of Key Employees under all
defined contribution plans in the Aggregation Group exceeds sixty percent (60%) of the sum of the
present values of accrued benefits under all such defined benefit plans and of all accounts under
all such defined contribution plans for all participants under such plans.

B-II. APPLICATION OF THIS APPENDIX

In the event that this Plan is or becomes a Top-Heavy Plan, the provisions of this Appendix, where
aggregated with each other defined contribution plan in the Aggregation Group in which a Key
Employee is a participant, will be applied as follows:

B2.010 Minimum Contributions. The following special provisions regarding contributions will
become applicable and will supersede the Company contribution provisions contained elsewhere in
this Plan. In such case, the Plan, where aggregated with each other defined contribution plan in
the Aggregation Group in which a Key Employee is a participant, will provide a minimum allocation
to the account of each Participant who is not a Key Employee for each Plan Year to which these
rules apply equal to the lesser of:

	(a)	 	four percent (4%) of the Participant’s Compensation, or

-63-

 

	(b)	 	the highest percentage of contribution made for the Plan Year to a Participant who is
a Key Employee for such Plan Year.

B2.020 Vesting. A Participant’s nonforfeitable right to his Company Contribution Account will not
be less than the amount determined pursuant to the following schedule:

	 	 	 	 	 
	Years of Service	 	Vested Interest
	 
	 	 	 	 
	Less than two
	 	 	0	%
	Two but less than three
	 	 	20	%
	Three or more
	 	 	100	%

If the Plan ceases to be a Top-Heavy Plan, the vesting schedule set forth in Section 5.010(b) will
again become applicable; provided that a Participant’s nonforfeitable right to his Company
Contribution Account will not be less than his nonforfeitable right to his balance in that Account
immediately before the Plan ceased to be a Top-Heavy Plan.

B2.030 Maximum Compensation. For any Plan Year in which the Plan is a Top-Heavy Plan, only the
first Two Hundred Thousand Dollars ($200,000.00) of a Participant’s Base Compensation will be taken
into account for purposes of determining benefits under the Plan; provided, however, that such
amount will be automatically adjusted as prescribed by the Secretary of the Treasury.

B2.040 Determination of Present Values and Amounts. This Section B2.040 shall apply for purposes
of determining the present values of accrued benefits and the amounts of account balances of
Participants as of the determination date.

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

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

-64-

 

B2.050 Minimum Benefits.

	(a)	 	Matching contributions. Company Matching Contributions shall be taken into account
for purposes of satisfying the minimum contribution requirements of Section 416(c)(2) of the
Code and the Plan. The preceding sentence shall apply with respect to Company Matching
Contributions under the Plan or, if the Plan provides that the minimum contribution
requirement shall be met in another plan, matching contributions to such other plan.
Company Matching Contributions that are used to satisfy the minimum contribution
requirements shall be treated as matching contributions for purposes of the actual
contribution percentage test and other requirements of Section 401(m) of the Code.

	(b)	 	Contributions under other plans. The Company may provide that the minimum benefit
requirement shall be met in another plan (including another plan that consists solely of a
cash or deferred arrangement which meets the requirements of Section 401(k)(12) of the Code
and matching contributions with respect to which the requirements of Section 401(m)(11) of the
Code are met).

-65-

 

APPENDIX C

EMPLOYEE STOCK OWNERSHIP PLAN

The purpose of this Appendix C is to document the conversion of each of the Rockwell
Automation Stock Funds (namely, Rockwell Automation Stock Fund A, Rockwell Automation
Stock Fund B and the Rockwell Automation Stock Fund) to separate employee stock
ownership plans and to designate them as such. In addition, this Appendix C sets forth
the provisions governing the operation of each of the said ESOPs. The provisions of
this Appendix, as they relate to the converted Stock Funds, supersede any provisions of
the Plan to the contrary. Notwithstanding the above, the conversion of the two Stock
Funds and their designation as ESOPs are intended to create separate plans. Assets
attributable to the two ESOPs will continue to be assets of the Plan and will be
available for the payment of all benefits under the Plan.

C—I. DEFINITIONS

The following definitions will be in effect and applicable to the ESOP created by
conversion of the Rockwell Automation Stock Funds into employee stock ownership plans:

C1.010 ESOP means employee stock ownership plan (as that term is defined in §4975(e)(7) of
the Code), the benefit form into which Rockwell Automation Stock Fund A, Rockwell Automation
Stock Fund B and the Rockwell Automation Stock Fund were converted.

C1.020 ESOP Account means any portion of a Participant’s Plan Account which is invested in
either of the Rockwell Automation Stock Funds ESOPs.

C1.030 ESOP Effective Date means June 1, 2000.

C1.040 Non-ESOP Account means an Account that is not an ESOP Account.

C1.050 Rockwell Automation Stock Fund A ESOP Account means an Account established in
accordance with Section C2.010(a) of this Appendix.

C1.060 Rockwell Automation Stock Fund B ESOP Account means an Account established in
accordance with Section C2.010(b) of this Appendix.

C1.070 Rockwell Automation Stock Fund ESOP Account means an Account established in
accordance with Section C2.010(c) of this Appendix.

-66-

 

C—II. ESOP ACCOUNTS

C2.010 General. As of the ESOP Effective Date, the portions of a Participant’s
interest in his Plan Account, individually, in Rockwell Automation Stock Fund A and
Rockwell Automation Stock Fund B which consist of common stock of the Company are
hereby designated as separate ESOPs and while in the said Rockwell Automation Stock
Funds will continue thereafter while invested in one or both of the said Stock Funds to
be invested primarily in stock of the Company which meets the definition of an
“employer security” under §409(l) of the Code. At that time and from time to time
thereafter, the Trustee will establish and maintain, if applicable, for each
Participant:

	 	(a)	 	Prior to July 1, 2005, a Rockwell Automation Stock Fund A ESOP Account,
consisting of that portion of the Participant’s interest in the Plan which is
attributable to Company Matching Contributions and which holds the Company’s
common stock in Rockwell Automation Stock Fund A; and
	 
	 	(b)	 	Prior to July 1, 2005,a Rockwell Automation Stock Fund B ESOP Account,
consisting of that portion of the Participant’s interest in the Plan which is
attributable to his own Basic and Supplemental Pre-tax and After-tax Contributions
and which holds the Company’s common stock in Rockwell Automation Stock Fund B.
	 
	 	(c)	 	Effective July 1, 2005, the Accounts described in (a) and (b) above shall be
combined into a single account consisting of all of the Participant’s interest in
the Plan in the Company’s common stock in the Rockwell Automation Stock Fund.

It is specifically understood and provided that, other than cash and/or cash
equivalents, the ESOP Accounts under this Plan will at all times be invested solely in
the Company’s common stock and in other stock of the Company, as such common stock and
other stock may be deemed to be “employer securities” pursuant to §409(l) of the Code.
It is further understood and provided that the above-described ESOP Accounts are
established for bookkeeping purposes only and will not be segregated from the other
assets of the Plan.

C2.020 Section 401(m) Discrimination Testing. The provisions of Section
3.015 will be applied separately to Company Matching Contributions
which are invested in the Rockwell Automation Stock Fund A ESOP
Account or, after June 30, 2005, a Rockwell Automation Stock Fund
ESOP Account, as if those Matching Contributions were made under a
separate plan.

C2.030 Transfers between ESOP and Non-ESOP Accounts. Participants will be
permitted to elect transfers of assets involving their Stock Fund A
ESOP Accounts,

-67-

 

Stock Fund B ESOP Accounts or, after June 30, 2005,
their Rockwell Automation Stock Fund ESOP Accounts, but such
transfers will at all times be subject to the
provisions and limitations, respectively, of Sections 4.040 and 4.020 of the Plan.
This Section of this Appendix C, when administered in conjunction with the provisions
of the said Sections of the Plan is intended to comply in all respects with the
diversification and other requirements of §401(a)(28) of the Code.

C-III. PASS-THROUGH DIVIDENDS AND VOTING RIGHTS

C3.010 Pass-through of Dividends Paid on Company Stock. Prior to December
31, 2005, the Company or its agent will, as soon as practicable
after each date on which dividends are paid on Company stock,
distribute directly to Participants all dividends attributable to
the interests in Company stock held by their Rockwell Automation
Stock Fund A ESOP Account and, if applicable, their Rockwell
Automation Stock Fund B ESOP Account or their Rockwell Automation
Stock Fund ESOP Account. Notwithstanding the foregoing, after
January 1, 2005, the Company or its agent will invest such
dividends in Company Stock, which will remain in their Rockwell
Automation Stock Fund A ESOP Account, Rockwell Automation Stock
Fund B ESOP Account or after June 30, 2005, their Rockwell
Automation Stock Fund ESOP Account.

C.3020 Pass-through of Voting Rights with Respect to Company Stock. The
Trustee exercises all voting rights with respect to Company stock
held by the Plan, but must exercise those rights in accordance with
the instructions of Participants, to the extent of their ESOP
Accounts. The Trustee will establish procedures for distributing
proxy material to and soliciting voting instructions from,
Participants on all corporate matters which are subject to vote of
the Company’s shareholders. The Trustee must vote the Plan’s stock
in accordance with he Participant’s instructions. Any shares with
respect to which no instructions are received just be voted in the
same proportions as shares with respect to which the Trustee does
receive instructions.

-68-EX-4.1

EXHIBIT 4.1

CAREY WATERMARK INVESTORS INCORPORATED

FORM
OF DISTRIBUTION REINVESTMENT

AND STOCK PURCHASE PLAN

     1. Participation; Agent. Carey Watermark Investors Incorporated Distribution
Reinvestment and Stock Purchase Plan (“Plan”) is available to stockholders of record of the
common stock (“Common Stock”) of Carey Watermark Investors Incorporated (“CWI” or
the “Company”). Phoenix American Financial Services
Inc. (“Phoenix American”) acting as agent for each participant in the Plan, will
apply cash distributions which become payable to such participant on shares of CWI Common Stock
(including shares held in the participant’s name and shares accumulated under the Plan), to the
purchase of additional whole and fractional shares of CWI Common Stock for such participant.

     2. Eligibility. Participation in the Plan is limited to registered owners of CWI
Common Stock. Shares held by a broker-dealer or nominee must be transferred to ownership in the
name of the stockholder in order to be eligible for this Plan. Further, a stockholder who wishes
to participate in the Plan may purchase shares through the Plan only after receipt of a prospectus
relating to the Plan, which prospectus may also relate to a concurrent public offering of shares by
CWI. CWI’s board of directors’ (the “Board”) reserves the right to amend the Plan in the
future to permit voluntary cash investments in Common Stock pursuant to the Plan. A participating
stockholder is not required to include all of the shares owned by such stockholder in the Plan, but
all of the distributions paid on enrolled shares will be reinvested.

     3. Stock Purchases. In making purchases for the accounts of participants,
Phoenix American may
commingle the funds of one participant with those of other participants in the Plan. All shares
purchased under the Plan will be held in the name of each participant. Purchase will be made
directly from CWI at 95% of the estimated net asset value (“NAV”) per share of CWI’s Common
Stock, as estimated by Carey Watermark Advisors, LLC (the “Advisor”) or another firm CWI
chooses for that purpose. During the offering and until the first annual valuation of CWI’s assets
is received, the purchase price will be $9.50 per share. Subsequent to the time that we begin to
receive annual valuations, the per share purchase price will be 95% of the then current NAV. NAV
is determined by adding the most recent appraised value of the real estate owned by CWI to the
value of CWI’s other assets, subtracting the total amount of all liabilities and dividing the
difference by the total number of outstanding shares. Phoenix American shall have no responsibility with
respect to the market value of the CWI Common Stock acquired for participants under the Plan.

     4. Timing of Purchases. Phoenix American will make every reasonable effort to reinvest all
distributions on the day the cash distribution is paid (except where necessary to comply with
applicable securities laws) by CWI. If, for any reason beyond the control of Phoenix American, reinvestment of
the distributions cannot be completed within 30 days after the applicable distribution payment
date, participants’ funds held by Phoenix American will be distributed to the participant.

     5. Account Statements. Following the completion of the purchase of shares after each
distribution, Phoenix American will provide to each participant an account statement showing the cash
distribution, the number of shares purchased with the cash distribution and the year-to-date and
cumulative cash distributions paid.

     6. Expenses and Commissions. There will be no direct expenses to participants for the
administration of the Plan. Administrative fees associated with the Plan will be paid by CWI. In
no event

 

 

will any discounts (including, without limitation, any discounts attributable to CWI’s payment of
brokerage commissions on behalf of the participants) on shares exceed 5% of the fair market value
of such purchased shares.

     7. Taxation of Distributions. The reinvestment of distributions does not relieve the
participant of any taxes which may be payable on such distributions.

     8. Stock Certificates. No stock certificates will be issued to a participant.

     9. Voting of Shares. In connection with any matter requiring the vote of CWI
stockholders, each participant will be entitled to vote all of the whole shares held by the
participant in the Plan. Fractional shares will not be voted.

     10. Absence
of Liability. Neither CWI nor Phoenix American shall have any responsibility or
liability as to the value of CWI’s shares, any change in the value of, the shares acquired for any
participant’s account, or the rate of return earned on, or the value of, the interest-bearing
accounts, if any, in which distributions are invested. Neither CWI nor Phoenix American shall be liable for any
act done in good faith, or for any good faith omission to act, including, without limitation, any
claims of liability: (a) arising out of the failure to terminate a participant’s participation in
the Plan upon such participant’s death prior to the date of receipt of such notice, and (b) with
respect to the time and prices at which shares are purchased for a participant. NOTWITHSTANDING
THE FOREGOING, LIABILITY UNDER THE U.S. FEDERAL SECURITIES LAWS CANNOT BE WAIVED. Similarly, CWI
and Phoenix American have been advised that in the opinion of certain state securities commissioners,
indemnification is also considered contrary to public policy and therefore unenforceable.

     11. Termination of Participation. A participant may terminate participation in the
Plan at any time by written instructions to that effect to Phoenix American. To be effective on a distribution
payment date, the notice of termination and termination fee must be received by Phoenix American at least 15
days before that distribution payment date. Upon receipt of notice of termination from the
participant, Phoenix American may also terminate any participant’s account at any time in its discretion by
notice in writing mailed to the participant.

     12. Amendment, Supplement, Termination and Suspension of Plan. This Plan may be
amended, supplemented or terminated by CWI at any time by the delivery of written notice to each
participant at least 10 days prior to the effective date of the amendment, supplement or
termination. Any amendment or supplement shall be effective as to the participant unless, prior to
its effective date, Phoenix American receives written notice of termination of the participant’s account.
Amendment may include an appointment by CWI or Phoenix American with the approval of CWI of a successor agent,
in which event such successor shall have all of the rights and obligations of Phoenix American under this Plan.
CWI may suspend the Plan at any time without notice to the participants.

     13. Governing Law. This Plan and the authorization card signed by the participant
(which is deemed a part of this Plan) and the participant’s account shall be governed by and
construed in accordance with the laws of the State of Maryland provided that the foregoing choice
of law shall not restrict the application of any state’s securities laws to the sale of shares to
its residents or within such state. This Agreement cannot be changed orally.

2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00143-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00143-of-00352.parquet"}]]