Document:

exv4w4

Exhibit 4.4

BRUSH ENGINEERED MATERIALS INC.

SAVINGS AND INVESTMENT PLAN

(As Amended and Restated as of January 1, 2009)

 

 

BRUSH ENGINEERED MATERIALS INC.

SAVINGS AND INVESTMENT PLAN

(As Amended and Restated as of January 1, 2009)

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	ARTICLE I — DEFINITIONS
	 	 	1	 
	 
	1.1 Definitions
	 	 	1	 
	 
	1.2 Construction
	 	 	7	 
	 
	 	 	 	 
	ARTICLE II — ELIGIBILITY AND MEMBERSHIP
	 	 	7	 
	 
	2.1 Eligible Employees
	 	 	7	 
	 
	2.2 Commencement of Membership
	 	 	7	 
	 
	2.3 Duration of Membership
	 	 	8	 
	 
	 	 	 	 
	ARTICLE III — MEMBER AND TRANSFER CONTRIBUTIONS
	 	 	8	 
	 
	3.1 Basic Contributions
	 	 	8	 
	 
	3.2 Supplemental Contributions
	 	 	8	 
	 
	3.3 CODA
	 	 	8	 
	 
	3.4 Payments to Trustee; No Pre-Service Contributions
	 	 	9	 
	 
	3.5 Other Provisions Concerning Member Contributions
	 	 	9	 
	 
	3.6 Suspension of Member Contributions
	 	 	9	 
	 
	3.7 Transfer Contributions
	 	 	9	 
	 
	3.8 Maximum Annual CODA Contributions
	 	 	10	 
	 
	3.9 Rollover Contributions
	 	 	10	 
	 
	3.10 Catch-Up Contributions
	 	 	10	 
	 
	3.11 Automatic Deferral Elections
	 	 	11	 
	 
	3.12 Notice of Automatic Deferral Election
	 	 	12	 
	 
	3.13 Roth 401(k) Contribution Provision
	 	 	12	 
	 
	3.14 Separate Application of Testing Provisions to Employees Who Have Not
Satisfied the Minimum Age and Service 
   Requirements under Code Section 410(a)
	 	 	15	 
	 
	 	 	 	 
	ARTICLE IV — EMPLOYER CONTRIBUTIONS
	 	 	15	 
	 
	4.1 Amount of Employer Contributions
	 	 	15	 

(i) 

 

	 	 	 	 	 
	 	 	Page
	4.2 Time and Payment of Employer Contributions
	 	 	16	 
	 
	4.3 Allocation of Employer Contributions
	 	 	16	 
	 
	4.4 Return of Contributions to Employers
	 	 	17	 
	 
	4.5 Provision Pursuant to Code Section 415(c)
	 	 	17	 
	 
	4.6 401(m) Provisions
	 	 	19	 
	 
	4.7 401(k) Testing Provisions
	 	 	22	 
	 
	 	 	 	 
	ARTICLE V — PAYSOP PROVISIONS
	 	 	25	 
	 
	5.1 Employer Contributions to PAYSOP Fund
	 	 	25	 
	 
	5.2 Time for Making Contribution
	 	 	26	 
	 
	5.3 Valuation of Common Stock
	 	 	26	 
	 
	5.4 Cash Contributions
	 	 	26	 
	 
	5.5 Eligible Employees
	 	 	26	 
	 
	5.6 Allocation of PAYSOP Contributions
	 	 	26	 
	 
	5.7 Limitations on Distributions of Common Stock
	 	 	27	 
	 
	5.8 Nonforfeitable Rights
	 	 	27	 
	 
	5.9 Expenses of Establishing and Administering PAYSOP Provisions
	 	 	27	 
	 
	5.10 Redetermination of Credit
	 	 	27	 
	 
	5.11 Non-discrimination
	 	 	28	 
	 
	5.12 ESOP Diversification Right
	 	 	28	 
	 
	 	 	 	 
	ARTICLE VI — INVESTMENTS
	 	 	29	 
	 
	6.1 Investment of Funds
	 	 	29	 
	 
	6.2 Account
	 	 	30	 
	 
	6.3 Investment of Member, Transfer and Rollover Contributions
	 	 	30	 
	 
	6.4 Investment of Employer and PAYSOP Contributions
	 	 	31	 
	 
	6.5 Change of Investment Option
	 	 	31	 
	 
	6.6 Reports
	 	 	31	 
	 
	6.7 Valuation of Investment Funds
	 	 	31	 
	 
	6.8 Registration and Voting of Common Stock
	 	 	32	 
	 
	6.9 Loans
	 	 	32	 
	 
	 	 	 	 
	ARTICLE VII — DISTRIBUTIONS AND WITHDRAWALS
	 	 	34	 
	 
	7.1 Distributions Only as Provided
	 	 	34	 
	 
	7.2 Distributions on Termination of Employment
	 	 	34	 

(ii) 

 

	 	 	 	 	 
	 	 	Page
	7.3 Distributions on Death
	 	 	35	 
	 
	7.4 Time of Distribution
	 	 	35	 
	 
	7.5 Non-Hardship Withdrawals
	 	 	35	 
	 
	7.6 Order of Distributions
	 	 	36	 
	 
	7.7 Hardship Withdrawals
	 	 	37	 
	 
	7.8 Provision Pursuant to Code Section 401(a)(9)
	 	 	38	 
	 
	7.9 Provisions Pursuant to Code Section 401(a)(31)
	 	 	39	 
	 
	 	 	 	 
	ARTICLE VIII — ADMINISTRATION OF THE PLAN AND TRUST
	 	 	40	 
	 
	8.1 Responsibility for Administration
	 	 	40	 
	 
	8.2 Authority
	 	 	40	 
	 
	8.3 Expenses and Duties
	 	 	41	 
	 
	8.4 Revocability of Committee Action
	 	 	41	 
	 
	8.5 The Trust Fund
	 	 	41	 
	 
	8.6 No Guarantee Against Loss
	 	 	42	 
	 
	8.7 Payment of Benefits
	 	 	42	 
	 
	8.8 Investment Committee
	 	 	42	 
	 
	8.9 Funding Policy
	 	 	42	 
	 
	 	 	 	 
	ARTICLE IX — CLAIMS PROCEDURES
	 	 	42	 
	 
	9.1 Method of Filing Claim
	 	 	42	 
	 
	9.2 Notification by Committee
	 	 	42	 
	 
	9.3 Review Procedure
	 	 	43	 
	 
	 	 	 	 
	ARTICLE X — FIDUCIARY RESPONSIBILITY
	 	 	43	 
	 
	10.1 Immunities
	 	 	43	 
	 
	10.2 Allocation and Delegation of Fiduciary Responsibilities
	 	 	44	 
	 
	10.3 Indemnification
	 	 	44	 
	 
	 	 	 	 
	ARTICLE XI — MISCELLANEOUS
	 	 	45	 
	 
	11.1 Spendthrift Provisions
	 	 	45	 
	 
	11.2 Facility of Payment
	 	 	45	 
	 
	11.3 No Enlargement of Employment Rights
	 	 	45	 
	 
	11.4 Merger or Transfer of Assets
	 	 	45	 
	 
	11.5 Severability Provision
	 	 	46	 

(iii) 

 

	 	 	 	 	 
	 	 	Page
	11.6 Qualified Domestic Relations Orders
	 	 	46	 
	 
	11.7 Expenses
	 	 	46	 
	 
	11.8 Extension of Coverage
	 	 	47	 
	 
	11.9 Profit-Sharing Plan
	 	 	47	 
	 
	11.10 Veterans’ Rights
	 	 	47	 
	 
	11.11 Leased Employees
	 	 	47	 
	 
	11.12 CRA Model Amendment
	 	 	48	 
	 
	 	 	 	 
	ARTICLE XII — OTHER EMPLOYERS
	 	 	48	 
	 
	12.1 Adoption by Other Employers
	 	 	48	 
	 
	12.2 Contribution of Employers
	 	 	48	 
	 
	12.3 Withdrawal of Employer
	 	 	48	 
	 
	 	 	 	 
	ARTICLE XIII — AMENDMENT OR TERMINATION
	 	 	49	 
	 
	13.1 Right to Amend or Terminate
	 	 	49	 
	 
	13.2 Procedure for Termination or Amendment
	 	 	49	 
	 
	13.3 Distribution Upon Termination
	 	 	49	 
	 
	13.4 Provision Pursuant to Section 411(d)(3) of the Code
	 	 	49	 
	 
	 	 	 	 
	ARTICLE XIV — TOP-HEAVY PLAN REQUIREMENTS
	 	 	50	 
	 
	14.1 Definitions
	 	 	50	 
	 
	14.2 Determination of Top-Heavy Status
	 	 	51	 
	 
	14.3 Top-Heavy Plan Requirements
	 	 	52	 
	 
	14.4 Minimum Contribution Requirement
	 	 	52	 
	 
	14.5 Coordination With Other Plans
	 	 	53	 
	 
	14.6 Construction
	 	 	53	 
	 
	 	 	 	 
	ARTICLE XV — SPECIAL PROVISIONS REGARDING MERGER OF
ELECTROFUSION CORPORATION 401(K) TAX 
     
          
        DEFERRED SAVINGS PLAN INTO THE PLAN
 
	 	 	54	 
	 
	15.1 General
	 	 	54	 
	 
	15.2 Merger Date
	 	 	54	 
	 
	15.3 Transfer of Accrued Benefits
	 	 	54	 
	 
	15.4 Withdrawals and Distributions
	 	 	54	 
	 
	15.5 Continuation of Electrofusion Plan
	 	 	55	 

(iv) 

 

	 	 	 	 	 
	 	 	Page
	ARTICLE XVI — SPECIAL PROVISIONS REGARDING MERGER OF
WILLIAMS ADVANCED MATERIALS INC. 

                    
      SAVINGS AND INVESTMENT PLAN INTO THE PLAN
	 	 	56	 
	 
	16.1 General
	 	 	56	 
	 
	16.2 Merger Date
	 	 	56	 
	 
	16.3 Transfer of Accrued Benefits
	 	 	56	 
	 
	16.4 Investments, Withdrawals, and Distributions
	 	 	56	 
	 
	16.5 Continuation of WAM Plan
	 	 	57	 
	 
	 	 	 	 
	ARTICLE XVII — MERGER OF THIN FILM TECHNOLOGY, INC. 401(K) PROFIT SHARING PLAN 
	 	 	57	 
	 
	17.1 Definitions
	 	 	57	 
	 
	17.2 Plan Transfer
	 	 	57	 
	 
	17.3 Nonforfeitable Interest
	 	 	58	 
	 
	17.4 Separate Accounts
	 	 	58	 
	 
	17.5 Participation by Transfer Participants
	 	 	58	 
	 
	17.6 Plan Loans
	 	 	58	 
	 
	17.7 Plan Elections
	 	 	58	 
	 
	17.8 Code Section 411(d)(6) Protected Benefits
	 	 	58	 
	 
	 	 	 	 
	ARTICLE XVIII — SPECIAL PROVISIONS REGARDING MERGER
OF CERAC, INC. RETIREMENT SAVINGS 

               
              PLAN INTO THE PLAN
	 	 	58	 
	 
	18.1 General
	 	 	58	 
	 
	18.2 Merger Date
	 	 	58	 
	 
	18.3 Transfer of Plan Assets
	 	 	58	 
	 
	18.4 Vesting
	 	 	59	 
	 
	18.5 Withdrawals
	 	 	59	 
	 
	18.6 Continuation of CERAC Plan
	 	 	59	 
	 
	 	 	 	 
	ARTICLE XIX — EFFECTIVE DATE
	 	 	59	 
	 
	19.1 General
	 	 	59	 
	 
	19.2 Special Effective Dates
	 	 	59	 
	 
	Schedule I
	 	 	1	 

(v) 

 

BRUSH ENGINEERED MATERIALS INC.

SAVINGS AND INVESTMENT PLAN

(As Amended and Restated as of January 1, 2009)

     Brush Engineered Materials Inc., an Ohio corporation, hereby amends and completely restates
its Savings and Investment Plan known as the Brush Engineered Materials Inc. Savings and Investment
Plan to read as follows, effective, except as otherwise provided herein, as of January 1, 2009.

ARTICLE I

DEFINITIONS

     1.1 Definitions. The following terms when used herein with initial capital letters,
unless the context clearly indicates otherwise, shall have the following respective meanings:

     (1) Account. See Section 6.2.

     (2) Administrative Committee. The Administrative Committee provided for in
Article VIII.

     (3) Administrator or Plan Administrator. The Administrator of the Plan, as
defined in ERISA Section 3(16)(A) and Code Section 414(g), shall be the Company, which may
delegate all or any part of its powers, duties and authorities in such capacity (without
ceasing to be the Administrator of the Plan) as hereinafter provided.

     (4) Board of Directors. The Board of Directors of the Company.

     (5) Catch-up Contributions. The contributions described in Section 3.10.

     (6) Code. The Internal Revenue Code of 1986, as it has been and may be amended
from time to time and any successor United States taxing or revenue law.

     (7) Common Stock or Common Stock of the Company. The common stock of the
Company, which stock shall be a “qualifying employer security” as defined in Section 407 of
ERISA.

     (8) Company. Brush Engineered Materials Inc., an Ohio corporation.

     (9) Company Stock Fund. One of the Investment Funds which shall be, together
with dividends on Common Stock held in such Fund, invested and reinvested exclusively and/or
primarily in Common Stock of the Company, subject to any pertinent provision of the Trust
Agreement.

     (10) Controlled Group. The Company and any and all other corporations, trades
and/or businesses, and any other entity required to be aggregated with the

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Company pursuant to Section 414(o) of the Code, the employees of which together with
Employees of the Company are required by a relevant provision of Section 414 of the Code be
treated as if they were employed by a single employer. Each corporation or unincorporated
trade or business that is or was a member of the Controlled Group shall be referred to
herein as a “Controlled Group Member,” but only during such period as it is or was such a
member.

     (11) Covered Employee. An Employee of any Employer who is employed at a
covered plant, location, or operating unit listed on Schedule I, which is attached hereto
and made a part hereof, or who is a member of a covered classification of employees listed
on Schedule I, but excluding (a) any such Employee within a collective bargaining unit
covered by a collective bargaining agreement with any Employer unless the collective
bargaining representative for Employees in such unit and the Employer agree that this
exclusion shall not apply to Employees in such unit, (b) any such Employee whose duties are
performed primarily outside of the United States of America, and (c) any person who is not
treated by the Employer as an employee for purposes of Section 3401 of the Code (without
regard to any determination other than by the Employer that such person is or is not an
employee for purposes of Section 3401 of the Code), without regard to any retroactive
treatment by the Employer of such person as an employee for purposes of Section 3401 of the
Code. Schedule I hereof shall contain a list of the participating plants, locations,
operating units, and classifications of employees to which coverage under the Plan has been
extended, and the later of the effective date of such Schedule I or the effective date of
such extension of coverage. For purposes of this paragraph (11), any person who is
performing services for an Employer at a location outside of the United States and who
immediately prior to beginning to perform such services was a Covered Employee under this
paragraph (11) (determined without regard to this sentence) shall be deemed to be a Covered
Employee performing duties primarily within the United States at the covered plant,
location, or operating unit at which such Covered Employee was employed immediately prior to
beginning to perform such services at such location outside of the United States until the
earliest of the date on which the person is transferred to a different covered plant,
location, or operating unit listed on Schedule I, the date on which the person is
transferred to a plant, location, or operating unit located within the United States not
listed on Schedule I, the date on which the person is no longer an Employee of an Employer,
or the date on which the person has a status that would exclude the person from the
definition of Covered Employee under clause (a) of the first sentence of this paragraph
(11). Any new plant, location, or operating unit which is established by an Employer shall
not become covered solely by virtue of the fact that it is part of such Employer or part of
a plant, location, or operating unit which at the time is covered; any such new plant,
location, or operating unit shall become covered only if Plan coverage is expressly extended
thereto in accordance with the procedures specified in Section 11.8.

     (12) Credited Compensation.

          (a) All non-deferred compensation (before withholdings and deductions for taxes or
other purposes) paid in cash or by check by his Employer to an Employee; provided, however,
Credited Compensation shall be determined as if there

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were no reduction of such Credited Compensation pursuant to the CODA provisions of
Article III, pursuant to any salary reduction agreement under a plan intended to be
qualified under Section 125 of the Code, or with respect to elective amounts that are not
includible in the gross income of the Employee under Section 132(f) of the Code.
Notwithstanding and without limitation of the foregoing, Credited Compensation shall not
include (i) payment of, or reimbursement for, expenses or losses incurred or to be incurred
by an Employee, (ii) any payment in connection with the Brush Wellman Inc. 1995 Stock
Incentive Plan, as amended, or the Brush Engineered Materials Inc. 1995 Stock Incentive
Plan, as amended, (iii) any payment in connection with the Brush Wellman Inc. Key Employee
Share Option Plan, as amended, or the Brush Engineered Materials Inc. Key Employee Share
Option Plan, as amended, (iv) any payment in connection with the Brush Engineered Materials
Inc. Supplemental Retirement Benefit Plan, as amended, (v) any payment or income in
connection with any agreement with respect to an individual regarding life insurance,
including, without limitation, any deemed income and/or tax gross-up payment in connection
with the agreement, (vi) any payment in connection with the Executive Deferred Compensation
Plan II, as amended, (vii) any payment designated as a special award by the Board of
Directors or committee of the Board of Directors, and (viii) all other payments which shall
be determined by the Administrative Committee, under non-discriminatory rules uniformly
applied, to represent a fringe or supplemental benefit with respect to such an Employee.

          (b) Notwithstanding clause (a) of this paragraph (12), the annual compensation of each
Employee taken into account in determining allocations for any Plan Year shall not exceed
$200,000, as adjusted for cost-of-living increases in accordance with Section 401(a)(17)(B)
of the Code. Annual compensation means compensation during the Plan Year or such other
consecutive 12-month period over which compensation is otherwise determined under the Plan
(the determination period). The cost-of-living adjustment in effect for a calendar year
applies to annual compensation for the determination period that begins with or within such
calendar year. If a Plan Year contains fewer than 12 calendar months, then the annual
compensation limitation described above shall be adjusted by multiplying the annual
compensation limitation in effect for the Plan Year by a fraction the numerator of which is
the number of days in the Plan Year and the denominator of which is 365 (366 if the full
period includes February 29).

     (13) Death Beneficiary.

          (a) A Participant’s Death Beneficiary shall be his Spouse if such Spouse survives him,
and if such Spouse’s death occurs after the Participant’s death, the Participant’s Death
Beneficiary shall be such Spouse’s estate.

          (b) If a Participant has no Spouse at the time of his death or his Spouse consents (in
the manner hereinafter described in this paragraph (b)) to the designation hereinafter
provided for in this paragraph (b), his Death Beneficiary shall be such person or persons
(other than, or in addition to, his Spouse in the case of a married Participant) as may be
designated by a Participant as his death beneficiary or contingent death beneficiary under
the Plan. Such a designation may be made, revoked or changed only

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by an instrument (in form acceptable to the Administrative Committee) which is signed
by the Participant, which, if he has a Spouse, includes his Spouse’s written consent to the
action to be taken pursuant to such instrument (unless such action results in the Spouse
being named as the Participant’s sole Death Beneficiary), and which is filed with the
Administrative Committee before the Participant’s death. A Spouse’s consent required by
this paragraph (b) shall be signed by the Spouse, shall acknowledge the effect of such
consent, shall be witnessed by any person designated by the Administrative Committee as a
Plan representative or by a notary public and shall be effective only with respect to such
Spouse. In addition, the Spouse’s written consent must either (i) specify any non-spouse
Death Beneficiary designated by the Participant and that such Death Beneficiary may not be
changed without written spousal consent or (ii) acknowledge that the Spouse has the right to
limit consent to a specific Death Beneficiary, but permit the Participant to change the
designated Death Beneficiary without the Spouse’s further consent. A person designated by a
Participant as a Death Beneficiary who ceases to exist shall not be entitled to any payment
thereafter to be made to the Participant’s Death Beneficiary; provided, however, that if a
Participant’s designation includes his Spouse, such Spouse’s death occurs after the
Participant’s death and such designation does not provide that payments otherwise to be made
to the Spouse shall be made to some other person or persons after such Spouse’s death, such
payments shall be made to the Spouse’s estate. At any time when all the persons designated
by the Participant as his Death Beneficiary have ceased to exist, his Death Beneficiary
shall be his Spouse or, if he does not then have a Spouse (and his Spouse’s estate is not
entitled to payments pursuant to the provisions of the immediately preceding sentence), the
Participant’s estate.

          (c) If a Participant has no Spouse and he has not made an effective Death Beneficiary
designation pursuant to paragraph (b) above, his Death Beneficiary shall be the
Participant’s estate.

     (14) Eligible Employee. Any Employee who has met the requirements for
membership in the Plan as set forth in Section 2.1.

     (15) Employee. An employee of a Controlled Group Member, including an officer
but not a director as such.

     (16) Employer. The Company, Brush Wellman Inc., and any other corporation or
business organization that has adopted the Plan pursuant to Article XII.

     (17) Employer Contributions. Contributions of the Employers made pursuant to
Section 4.1 hereof and, where appropriate, contributions of the Employers made pursuant to
the provisions of the Plan as in effect prior to January 1, 2001.

     (18) ERISA. The Employee Retirement Income Security Act of 1974, as it has
been and may be amended from time to time.

     (19) Fiduciary. Any person who is a “fiduciary” as defined by ERISA Section
3(21).

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     (20) Highly Compensated Employee. An Employee or former Employee who is a
“highly compensated active employee” or “highly compensated former employee”, determined in
accordance with the following provisions:

          (a) A “highly compensated active employee” includes any Employee who performs services
for a Controlled Group Member during the determination year and who either (i) was a five
percent owner at any time during the determination year or the look back year, or (ii)
received compensation from a Controlled Group Member during the look back year in excess of
$80,000 (subject to adjustment annually as provided under Section 414(q) of the Code).

          (b) A “highly compensated former employee” includes any Employee who separated from
service from the Controlled Group (or is deemed to have separated from service from the
Controlled Group) prior to the determination year, performed no services for a Controlled
Group Member during the determination year, and was a highly compensated active employee for
either the separation year or any determination year ending on or after the date the
Employee attains age 55.

          (c) The determination of who is a Highly Compensated Employee hereunder shall be made
in accordance with the provisions of Section 414(q) of the Code and regulations issued
thereunder.

     For purposes of this definition, the following terms have the following meanings:

     (i) The “determination year” means the Plan Year.

     (ii) The “look back year” means the 12-month period immediately
preceding the determination year.

     (iii) “Compensation” has the meaning given such term by Section
415(c)(3) of the Code.

     (21) Investment Funds. The Funds provided for in Section 6.1.

     (22) Investment Manager. A person, appointed by the Retirement Plan Investment
Committee, (a) who is either (i) registered as an investment adviser under the Investment
Advisers Act of 1940, (ii) a bank as defined in such Act or (iii) an insurance company
qualified to manage, acquire, or dispose of any asset of the Plan under the laws of more
than one State, and (b) who has acknowledged in writing that he or it is a Fiduciary with
respect to the Plan.

     (23) Member. An Employee who has become and continues to be a Member of the
Plan in accordance with the provisions of Article II.

     (24) Member Contributions. Contributions made pursuant to Sections 3.1 and 3.2
and, where appropriate, employee (after-tax) contributions and employee elective (Code
Section 401(k)) contributions made pursuant to the provisions of the Plan as in effect prior
to January 1, 2001.

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     (25) Named Fiduciaries. The Named Fiduciaries under the Plan shall be the
Company, the Administrative Committee, and the Retirement Plan Investment Committee, each of
which shall have such powers, duties and authorities as shall be specified in the Plan and
Trust Agreement or as may be delegated to it pursuant to its statement of Powers and
Responsibilities approved by the Board of Directors and may delegate all or any part of such
powers, duties and authorities as hereinafter provided. Any other person may be designated
as a Named Fiduciary as provided in Section 10.2.

     (26) Participant. A Member or former Member or an Employee or former Employee
for whose benefit a part of the Trust Fund is held.

     (27) PAYSOP Contributions. Contributions of the Employers described in Article
V.

     (28) PAYSOP Fund. With respect to periods prior to January 3, 1995, one of the
Investment Funds (except where specifically excluded from such term) which shall be, subject
to any pertinent provision of the Trust Agreement, invested and reinvested exclusively
and/or primarily in Common Stock of the Company and shall have received contributions only
made pursuant to Section 5.1.

     (29) Plan. The plan, the terms and provisions of which are herein set forth,
and as it has been or may be amended or restated from time to time, designated as “Brush
Engineered Materials Inc. Savings and Investment Plan” (for certain prior periods, “The
Brush Wellman Inc. Savings and Investment Plan”).

     (30) Plan Year. The 12-month period commencing on January 1st of each year and
ending on the next following December 31st. The “Plan Year,” as herein defined, is the
fiscal year on which the primary records of the Plan and Trust Fund are to be kept.

     (31) Retirement Plan Investment Committee. The Retirement Plan Investment
Committee provided for in Article VIII.

     (32) Transfer Contributions. The contributions described in Section 3.7 and,
where appropriate, transfer contributions described under the corresponding provisions of
the Plan as in effect prior to January 1, 2001.

     (33) Rollover Contributions. The contributions described in Section 3.9.

     (34) Trust. The trust created by the Trust Agreement.

     (35) Trust Agreement. The Trust Agreement between the Company and the Trustee
providing among other things, for the Trust and the investment of the Trust Fund, as such
Trust Agreement may be amended or restated from time to time. The Trust Agreement is a part
of the Plan and is incorporated herein by reference.

     (36) Trustee. Fidelity Management Trust Company, of Boston, Massachusetts, or
its successor or successors in trust under the Trust Agreement.

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     (37) Trust Fund. The entire trust estate held by the Trustee under the
provisions of the Plan and the Trust Agreement, without distinction as to principal or
income, and which is a part of the Plan.

     (38) Valuation Date. Each day on which the New York Stock Exchange is open for
trading or such other or additional date or dates, which need not be uniform with respect to
any or all Investment Funds, as may be prescribed by the Administrative Committee.

     1.2 Construction.

     (1) Unless the context otherwise indicates, the masculine wherever used herein shall
include the feminine and neuter, the singular shall include the plural and words such as
“herein,” “hereof,” “hereby,” “hereunder” and words of similar import refer to the Plan as a
whole and not to any particular part thereof.

     (2) Where headings have been supplied to portions of the Plan they have been supplied
for convenience only and are not to be taken as limiting or extending the meaning of any of
its provisions.

     (3) Wherever the word “person” appears in the Plan, it shall refer to both natural and
legal persons.

     (4) Except to the extent federal law controls, the Plan shall be governed, construed
and administered according to the laws of the State of Ohio. All persons accepting or
claiming benefits under the Plan shall be bound by and deemed to consent to its provisions.

ARTICLE II

ELIGIBILITY AND MEMBERSHIP

     2.1 Eligible Employees. Each Employee who was eligible for membership in the Plan on
December 31, 2008 shall remain an Eligible Employee on and after January 1, 2009 (so long as he
remains a Covered Employee). Each Employee who was not eligible for membership in the Plan on
December 31, 2008 shall be eligible for membership in the Plan and shall become an Eligible
Employee on or as soon as administratively practicable after the first date on which he (a) has
attained age 18 and (b) is a Covered Employee.

     2.2 Commencement of Membership. Any Eligible Employee who was not a Member of the
Plan on December 31, 2008 may enroll as a Member effective as of the first day of a pay period of
such Eligible Employee beginning after January 1, 2009 on which he is eligible in accordance with
procedures established by the Administrative Committee. Any Eligible Employee who is a Member of
the Plan as in effect on December 31, 2008 may make the elections regarding contributions as
provided in Article III to be effective as of the first day of a pay period of such Member
beginning after January 1, 2009 in accordance with procedures established by the Administrative
Committee.

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     2.3 Duration of Membership. Once an Eligible Employee has become a Member under the
Plan, he shall remain a Member so long as he remains a Covered Employee and a portion of the Trust
Fund is credited to his Account and held for his benefit by the Trustee. However, an Employee who
ceases to be a Member may not have any further Member Contributions contributed to the Trust on
his behalf until he again makes the election regarding contributions in the manner described in
Section 2.2.

ARTICLE III

MEMBER AND TRANSFER CONTRIBUTIONS

     3.1 Basic Contributions. Effective as of the first day of any pay period of his
Employer beginning after January 1, 2009, as provided in Section 2.2, a Member or an Eligible
Employee who is not then a Member may elect to have his Employer make payments to the Trust on his
behalf of 1%, 2%, 3%, 4%, 5% or 6% (in 1% increments) of his Credited Compensation (called “Basic
Contributions”) through payroll deductions either (a) under the qualified cash or deferred
arrangement described in Section 3.3 (in 1% increments) or (b) as employee contributions not
subject to such cash or deferred arrangement (in 1% increments). The Member may elect to have
payments made to the Trust for him under either clause (a) or clause (b) of the preceding
sentence, or any combination of the methods provided for by such clauses, so long as such
elections taken together do not provide for payments in excess of 6% of such Member’s Credited
Compensation. Payments made to the Trust under clause (a) of this Section shall be called “Basic
Contributions (CODA)”; payments made to the Trust under clause (b) of this Section shall be called
“Basic Contributions (Non-CODA)”.

     3.2 Supplemental Contributions. A Member who has (1) elected to have his Employer
make payments to the Trust on his behalf of 6% of his Credited Compensation under Section 3.1 may
elect to have additional payments made to the Trust from 1% through 44%, (in 1% increments) of his
Credited Compensation (called “Supplemental Contributions”) through payroll deductions either (a)
under the qualified cash or deferred arrangement described in Section 3.3 (in 1% increments) or
(b) as employee contributions not subject to such cash or deferred arrangement (in 1% increments).
The Member may elect to have payments made to the Trust for him under either clause (a) (in 1%
increments) or clause (b) (in 1% increments) of the preceding sentence, or any combination of the
methods provided for by such clauses, so long as such elections taken together do not provide for
payments in excess of 44%, of such Member’s Credited Compensation. Payments made to the Trust
under such clause (a) shall be called “Supplemental Contributions (CODA)”; payments made to the
Trust under such clause (b) shall be called “Supplemental Contributions (Non-CODA)”.

     3.3 CODA. If a Member or Eligible Employee makes an election under clause (a) of
Section 3.1 or clause (a) of Section 3.2, or under both, to have payments made for him to the
Trust pursuant to this Section, he shall elect such payments in lieu of payment thereof to him in
cash (through the Employer’s payroll system) pursuant to a cash or deferred arrangement under
Section 401(k) of the Code (“CODA”) and he shall agree in connection therewith to have his
Credited Compensation reduced by the percentage of his Credited Compensation elected by him under
clause (a) of Section 3.1 or by the percentage of his Credited Compensation which is the sum of
the percentage amounts elected by him under clause (a) of Section 3.1 and clause (a)

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of Section 3.2. An election under such CODA shall be made in such manner as shall be
prescribed by the Administrative Committee. An election under such CODA shall be effective only
with respect to Credited Compensation earned by him after such election becomes effective, and
shall be irrevocable with respect to elected amounts which have been deducted or withheld from his
Credited Compensation pursuant to such an election.

     3.4 Payments to Trustee; No Pre-Service Contributions. Contributions pursuant to
Sections 3.1 and 3.2 shall be withheld from the Member’s Credited Compensation each pay date while
he has a payroll deduction order in effect and shall be transmitted by the Employers to the
Trustee as of the earliest date on which such contributions can reasonably be segregated from the
Employer’s general assets, but not later than 15 business days after the end of the calendar month
in which such contributions are withheld.

     In no event shall an Employer deliver Basic Contributions (CODA) and Supplemental
Contributions (CODA) to the Trustee on behalf of an Eligible Employee prior to the date the
Eligible Employee performs the services with respect to which the Basic Contribution (CODA) and
Supplemental Contribution (CODA) is being made, unless such pre-funding is to accommodate a bona
fide administrative concern and is not for the principal purpose of accelerating deductions.

     In no event shall an Employer deliver Employer Contributions to the Trustee on behalf of an
Eligible Employee prior to the date the Eligible Employee performs the services with respect to
which the Employer Contribution is being made, unless such pre-funding is to accommodate a bona
fide administrative concern and is not for the principal purpose of accelerating deductions.

     3.5 Other Provisions Concerning Member Contributions. An Eligible Employee or Member
who makes an election under Section 3.1 may at the same time, or thereafter, also make an election
under Section 3.2. The percentage contributions designated by a Member pursuant to Section 3.1
and/or Section 3.2 shall continue in effect notwithstanding any changes in the Member’s Credited
Compensation. A Member may, however, in accordance with Sections 3.1 and 3.2, and subject to the
provision of Section 3.3 and this Section, change at any time (1) the percentage of Credited
Compensation subject to the CODA under clause (a) of Section 3.1 or clause (a) of Section 3.2
and/or (2) the percentage of his Credited Compensation which is being contributed to the Trust
under clause (b) of Section 3.1 or clause (b) of Section 3.2, in accordance with procedures
established by the Administrative Committee.

     3.6 Suspension of Member Contributions. In accordance with procedures established by
the Administrative Committee, a Member may suspend contributions under Section 3.2 or under both
Section 3.2 and Section 3.1. A Member who has suspended his Member Contributions may again make
Member Contributions in accordance with procedures established by the Administrative Committee.

     3.7 Transfer Contributions. The Trustee is authorized to accept on behalf of an
Employee, and hold as a part of the Trust Fund, assets from a Trustee of another plan qualified
under Section 401(a) of the Code, provided that any such plan permits such a transfer and provided
that the Administrative Committee approves such transfer from such plan. All amounts so
transferred to the Trust Fund shall be referred to herein as “Transfer Contributions”.

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     3.8 Maximum Annual CODA Contributions. Notwithstanding the foregoing provisions of
this Article III, the sum of a Member’s Basic Contributions (CODA) and Supplemental Contributions
(CODA) for any taxable year of such Member shall not exceed $7,000 (or such other adjusted maximum
dollar amount as shall be prescribed by the Secretary of the Treasury from time to time).
Moreover, no Employee shall be permitted to have aggregate elective (Code Section 401(k))
contributions made under this Plan and any other qualified plan maintained by the Employer or
Controlled Group Member during any taxable year, in excess of the dollar limitation contained in
Section 402(g) of the Code in effect for such taxable year, except to the extent permitted under
Section 3.10 and Section 414(v) of the Code, if applicable. If, except for the application of
this Section, a Member’s Basic Contributions (CODA) and Supplemental Contributions (CODA) for a
taxable year of his would exceed the limitation specified herein, then, notwithstanding any other
provision of the Plan, no further Basic Contributions (CODA) or Supplemental Contributions (CODA)
by such Member shall be permitted for such taxable year and such Member’s Member Contributions
which, except for the application of this Section, would have been Basic Contributions (CODA) and
Supplemental Contributions (CODA) for such taxable year shall (for all purposes of the Plan and
otherwise) be treated as Basic Contributions (Non-CODA) or Supplemental Contributions (Non-CODA),
as the case may be, for such taxable year.

     3.9 Rollover Contributions. An Eligible Employee and a person who is not an Employee
but is a Participant, may elect in accordance with procedures established by the Administrative
Committee, which election shall include an investment election with respect to such transferred
amounts in accordance with Section 6.3, to transfer an eligible rollover distribution from a
qualified trust of a qualified plan as described in Section 401(a) or 403(a) of the Code,
including after-tax employee contributions, an annuity contract described in Code Section 403(b),
excluding after-tax employee contributions, or an eligible plan under Code Section 457(b) which is
maintained by a state, political subdivision of a state, or any agency or instrumentality of a
state or political subdivision of a state, in a direct trustee to trustee transfer in accordance
with Section 401(a)(31) of the Code to the Plan. Moreover, the Plan will accept a participant
rollover from a qualified plan described in Code Section 401(a) or 403(a), an annuity contract
described in Code Section 403(b), or an eligible plan under Code Section 457(b) which is
maintained by a state, political subdivision of a state, or any agency or instrumentality of a
state or political subdivision of a state. Finally, the Plan will accept as a rollover
contribution a direct or participant rollover of the portion of a distribution from an individual
retirement account or annuity described in Code Section 408(a) or 408(b) that is eligible to be
rolled over and would otherwise be includible in gross income. Any transfer may be in cash only
and may be accepted by the Trustee only if the Administrative Committee approves the transfer as
being in accordance with Section 401(a) and Section 402 of the Code. All amounts so transferred
to the Trust Fund shall be referred to herein as “Rollover Contributions”. The Plan shall
separately account for amounts so transferred, including separately accounting for the portion of
such distribution which is includible in gross income and the portion of such distribution which
is not so includible.

     3.10 Catch-Up Contributions.

     (1) All employees who are eligible to make elective deferrals under the Plan and who
have attained age 50 before the close of the Plan Year shall be eligible to make

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Catch-up Contributions in accordance with, and subject to the limitations of, Section
414(v) of the Code. Such Catch-up Contributions shall not be taken into account for
purposes of the provisions of the Plan implementing the required limitations of Section
402(g) and Section 415 of the Code. The Plan shall not be treated as failing to satisfy the
provisions of the Plan implementing the requirements of Section 401(k)(3), Section
401(k)(11), Section 401(k)(12), Section 401(b), or Section 416 of the Code, as applicable,
by reason of the making of such Catch-up Contributions.

     (2) An election to make a Catch-up Contribution to this Plan shall be made in
accordance with procedures established by the Administrative Committee, which election shall
include an investment election in accordance with Section 6.3. A Member may elect to have
his Employer make payments to the Trust on his behalf in accordance with this Section of
from 1% through 75% (in 1% increments) of his Credited Compensation (called “Catch-up
Contributions”) under the qualified cash or deferred arrangement described in Section 3.3,
subject to the limitations of Section 414(v) of the Code. The Plan shall separately account
for Catch-up Contributions.

     3.11 Automatic Deferral Elections. If at the time he becomes an Eligible Employee an
Employee has not affirmatively enrolled as a Member and elected to have Basic Contributions (CODA)
made to the Plan on his behalf in accordance with the provisions of Sections 2.2 and 3.1, his
Employer shall make Basic Contributions (CODA) on his behalf in an amount equal to 3% of the
Eligible Employee’s Credited Compensation as hereinafter provided.

          As of the date he becomes an Eligible Employee, an Eligible Employee to whom this Section
would otherwise apply may affirmatively elect, in accordance with rules prescribed by the
Administrative Committee, not to have Basic Contributions (CODA) made on his behalf in accordance
with the provisions of this Section. Such affirmative election must be recorded with the
Administrative Committee within a reasonable period of time following such date as determined by
the Administrative Committee.

          An Eligible Employee to whom this Section applies shall have a reasonable period following his
receipt of the automatic reduction notice described in Section 3.12 and before the first date
Credited Compensation subject to the automatic reduction becomes available to him in which to make
an affirmative election under the Plan. If an Eligible Employee does not make the affirmative
election described herein within the prescribed time period, Basic Contributions (CODA) shall be
made on his behalf in accordance with the provisions of this Section until the Eligible Employee
elects either to change the amount of his Credited Compensation that his Employer contributes as
Basic Contributions (CODA) or to have Basic Contributions (CODA) suspended, as provided in Sections
3.5 and 3.6.

          In the event that an Eligible Employee for whom an automatic deferral election has been made
is continuing to have Basic Contributions (CODA) made on his behalf at the automatic deferral rate
prescribed by the Plan as of the anniversary date of such automatic deferral election, the amount
of Basic Contributions (CODA) made by his Employer on his behalf hereunder shall be increased by an
additional 1% effective with the first-payment of Credited Compensation to him after that date, but
not beyond 6%.

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          An Eligible Employee may enroll in a program prescribed by the Administrative Committee which
will result in automatic increases in his deferral rate on each anniversary of his enrollment in
such program, provided that he may at any time in accordance with procedures established by the
Administrative Committee elect to discontinue his participation in such program and make any other
deferral election (or no election) permitted under the Plan.

          The Credited Compensation otherwise payable to an Eligible Employee on whose behalf Basic
Contributions (CODA) are made in accordance with the provisions of this Section shall be reduced by
the amount of such Basic Contributions (CODA).

          In the event Basic Contributions (CODA) are made pursuant to this Section on behalf of an
Eligible Employee, he shall be automatically enrolled as a Member of the Plan.

          Basic Contributions (CODA) made pursuant to the provisions of this Section shall be treated as
Basic Contributions (CODA) made pursuant to Section 3.1, including for purposes of Article III
generally.

   3.12 Notice of Automatic Deferral Election. At the time an Employee becomes an
Eligible Employee, the Administrative Committee shall provide the Eligible Employee with a notice
explaining the automatic reduction in his Credited Compensation for purposes of making Basic
Contributions (CODA) in accordance with Section 3.11 and the Eligible Employee’s right to
affirmatively elect either a different reduction amount or no reduction. The notice shall
describe the procedures for making such an election and the period in which such an election may
be made. In addition, the Administrative Committee shall provide annual notice to Eligible
Employees of the amount by which their Credited Compensation is being reduced for purposes of
making Basic Contributions (CODA), if any, and their right to change such amount as provided in
the Plan.

   3.13 Roth 401(k) Contribution Provision.

     (1) The following special definitions apply for purposes of this Section:

          (a) A “401(k) Contribution” means any Basic Contribution (CODA), Supplemental
Contribution (CODA), or Roth 401(k) Contribution contributed to the Plan on behalf of a
Participant.

          (b) A “Roth 401(k) Contribution” means any 401(k) Contribution made on behalf of a
Participant that is irrevocably designated as being made pursuant to, and is intended to
comply with, Code Section 402A. Roth 401(k) Contributions are includable in a Participant’s
taxable gross income for the year in which they are contributed to the Plan. The term “Roth
401(k) Contribution” includes any “elective deferral,” as defined in Code Section
402(g)(3)(A), made to a plan qualified under Code Section 401(a), that was designated as a
Roth contribution at the time it was contributed to such plan and that is rolled over to the
Plan in accordance with the provisions of this Amendment.

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          (c) A “Pre-Tax 401(k) Contribution” means any 401(k) Contribution made to the Plan on
behalf of a Participant that is not includable in the Participant’s taxable gross income,
pursuant to Code Section 401(k), until distributed from the Plan.

     The terms defined in this Section are intended to apply for purposes of clarity within
the parameters of this Section, and are not intended to override or replace terms otherwise
used under the Plan. Except as otherwise specifically provided in this Section, the terms
“Basic Contribution (CODA)” and “Supplemental Contribution (CODA) “ as used under the Plan
include both a Participant’s Roth 401(k) Contributions and his Pre-Tax 401(k) Contributions,
as defined under this Section.

     (2) An Eligible Employee may elect to have Roth 401(k) Contributions made to the Plan
on his behalf. An Eligible Employee’s election to have Roth 401(k) Contributions made on
his behalf shall apply to any portion or all (as designated by the Eligible Employee) of his
401(k) Contribution for each payroll period. An Eligible Employee may change his election
to have Roth 401(k) Contributions made to the Plan on his behalf in accordance with
procedures established by the Administrative Committee.

     (3) 401(k) Contributions that are automatically made on behalf of an Eligible Employee
in accordance with the provisions of Section 3.11 shall be treated as Pre-Tax 401(k)
Contributions.

     (4) Subject to the provisions of Section 3.9 applicable to Rollover Contributions, the
Plan will accept direct rollovers of designated Roth 401(k) accounts from a qualified plan
described in Code Section 401(a) or 403(a).

     (5) If excess contributions are to be distributed from the Plan because the amount of
the 401(k) Contributions made on behalf of an Eligible Employee for his taxable year, when
aggregated with elective contributions made on his behalf under other plans of the Employer
or a Controlled Group member for his taxable year, exceed the dollar limit imposed under
Code Section 402(g), as in effect on January 1 of the calendar year in which such taxable
year begins, the excess shall be deemed to consist first of Roth 401(k) Contributions.

     (6) If excess contributions are to be distributed as provided in Subsection (5) of this
Section and an Eligible Employee is eligible to make Catch-Up Contributions for the year,
the excess to be re-characterized as Catch-Up Contributions shall be deemed to consist first
of Roth 401(k) Contributions.

     (7) If excess contributions are to be distributed from a Highly Compensated Employee’s
401(k) Contributions Account in accordance with the provisions of Section 4.7, the excess
contributions shall be deemed to consist first of Roth 401(k) Contributions.

     (8) If excess 401(k) Contributions are to be distributed as provided in Subsection (7)
this Section and an Eligible Employee is eligible to make Catch-Up

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Contributions for the year, the excess to be re-characterized as Catch-Up Contributions
shall be deemed to consist first of Pre-Tax 401(k) Contributions.

     (9) If the Plan includes 401(k) Contributions in determining contribution percentages
for Highly Compensated Employees and does not satisfy the ACP test described in Section 4.6,
any excess contributions that are to be distributed from a Highly Compensated Employee’s
401(k) Contributions account in order to satisfy the ACP test shall be deemed to consist
first of Roth 401(k) Contributions.

     (10) If excess 401(k) Contributions are to be distributed as provided in Subsection (9)
of this Section and an Eligible Employee is eligible to make Catch-Up Contributions for the
year, the excess to be re-characterized as Catch-Up Contributions shall be deemed to consist
first of Pre-Tax 401(k) Contributions.

     (11) Any Roth 401(k) Contributions made or rolled over into the Plan on behalf of a
Participant shall be allocated to a separate account maintained with respect to a
Participant’s Roth 401(k) Contributions. There shall be maintained a record of the amount
of Roth 401(k) Contributions in the Participant’s Roth 401(k) Contributions account.
Earnings, losses, and other credits and charges shall be allocated on a reasonable and
consistent basis among a Participant’s Roth 401(k) Contributions account and his other
accounts under the Plan. No amounts other than Roth 401(k) Contributions and properly
attributable earnings shall be credited to a Participant’s Roth 401(k) Contributions
account.

     (12) A loan made from the Plan may be made from a Participant’s Roth 401(k)
Contributions account.

     (13) In-service withdrawals from a Participant’s Roth 401(k) Contributions account may
be made in accordance with the provisions of Article VII if the Participant has incurred a
hardship, as defined in accordance with the terms of Section 7.7. Any hardship withdrawal
of Roth 401(k) Contributions shall be subject to the same limitations and restrictions
described in Article VII as applicable to a hardship withdrawal of elective contributions.

     (14) For purposes of Section 7.9, to the extent the Plan applies the $200 minimum in
determining whether a distribution is an eligible rollover distribution, in determining
whether the total value of a distributee’s eligible rollover distributions for the year is
less than $200, eligible rollover distributions from a Participant’s Roth 401(k)
Contributions account shall be considered separately from eligible rollover distributions
from the Participant’s other accounts. To the extent the Plan applies the $500 minimum on
rollovers of a portion of a distribution, any eligible rollover distribution from a
Participant’s Roth 401(k) Contributions account shall be treated as a separate distribution
from any eligible rollover distribution from the Participant’s other accounts (rather than
as a part of such distribution), even if the distributions are made at the same time.

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     3.14 Separate Application of Testing Provisions to Employees Who Have Not Satisfied the
Minimum Age and Service Requirements under Code Section 410(a).

          If the Plan provides that Employees are eligible to make Basic Contributions (CODA) before
they have satisfied the minimum age and service requirements under Code Section 410(a)(1) and
applies Code Section 410(b)(4)(B) in determining whether the cash or deferred arrangement meets the
requirements of Code Section 410(b)(1), the Administrative Committee may apply the limitations on
Basic Contributions (CODA) and Supplemental Contributions (CODA) of Highly Compensated Employees
described in Article IV either:

          (a) by comparing the average deferral percentage of all Eligible Employees who are
Highly Compensated Employees for the Plan Year to the average deferral percentage for the
testing year of those Eligible Employees who are not Highly Compensated Employees and who
have satisfied the minimum age and service requirements under Code Section 410(a)(1); or

          (b) separately with respect to Eligible Employees who have not satisfied the minimum
age and service requirements under Code Section 410(a)(1) and Eligible Employees who have
satisfied such minimum age and service requirements.

          Similarly, if the Plan provides that Employees are eligible to make Basic Contributions (Non
CODA) and/or receive Employer Contributions before they have satisfied the minimum age and service
requirements under Code Section 410(a)(1), and applies Code Section 410(b)(4)(B) in determining
whether the portion of the Plan subject to Code Section 401(m) meets the requirements of Code
Section 410(b)(1), the Administrative Committee may apply the limitations on Basic Contributions
(Non CODA) and Supplemental Contributions (Non CODA) and Employer Contributions of Highly
Compensated Employees described in Article IV either:

          (a) by comparing the average contribution percentage of all eligible Participants who
are Highly Compensated Employees for the Plan Year to the average contribution percentage
for the testing year of those eligible Participants who are not Highly Compensated Employees
and who have satisfied the minimum age and service requirements under Code Section
410(a)(1); or

          (b) separately with respect to eligible Participants who have not satisfied the minimum
age and service requirements under Code Section 410(a)(1) and eligible Participants who have
satisfied such minimum age and service requirements.

ARTICLE IV

EMPLOYER CONTRIBUTIONS

     4.1 Amount of Employer Contributions.

     (1) Subject to the provisions hereof, the Employers shall, as and to the extent they
lawfully may, contribute an amount equal to such “basic percentage” (from zero to 100%,
inclusive), “additional percentage” (from zero to 100%, inclusive), or the total of

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both percentages, if applicable, of the amount of eligible (as hereinafter provided)
Basic Contributions made under Section 3.1 (the total of such amounts contributed by the
Employers shall be referred to herein as “Employer Contributions”) as may be established
from time to time by action of the Board of Directors. Such “basic percentage” amount (if
any) as provided in the immediately preceding sentence shall apply to all Basic
Contributions under Section 3.1 and may be increased or decreased from time to time by
action of the Board of Directors, applicable, however, only to periods of time occurring
after such action by the Board of Directors. Such “additional percentage” amount (if any)
as provided in the first sentence may apply only to Basic Contributions under Section 3.1
made with respect to a portion (or portions) of a Plan Year and with respect only to a group
of Eligible Employees who remain Eligible Employees as of a certain date and may be set for
a Plan Year, all as determined by action of the Board of Directors at any time prior to the
due date (including extensions) for filing the income tax returns of the Employers for the
taxable year coinciding with such Plan Year.

     (2) Notwithstanding Subsection (1) of this Section 4.1, however, the amount to be
contributed by the Employers on account of any Plan Year shall in no event exceed the amount
that would be deductible for such Year for purposes of federal taxes on income under Code
Section 404(a), and such amount to be contributed shall be conditioned upon such
deductibility.

4.2 Time and Payment of Employer Contributions. Employer Contributions shall be made
in cash or in shares of Common Stock of the Company, which may be treasury stock or authorized and
unissued stock. All such Employer Contributions attributable to the basic percentage amount for
any month shall normally be made within 30 days after the end of such month, and all such Employer
Contributions with respect to a Plan Year shall be made no later than the due date (including
extensions) for filing the income tax returns of the Employers for the taxable year coinciding
with such Plan Year. For purposes of this Section, the value of any share of Common Stock so
contributed shall be valued as provided in the Trust Agreement.

4.3 Allocation of Employer Contributions.

     (1) Employer Contributions allocable to Basic Contributions made under Section 3.1
shall be allocated and credited for each period that they are made by the Employers to the
Account of each Participant who made the eligible Basic Contributions (as hereinbefore
provided) with respect to which the Employer Contribution is made for the period in
proportion to the amount of such contributions made by each such Participant.

     (2) A Participant’s entire Employer Contributions Account (including such portion
thereof which was included as part of the Trust Fund on April 1, 1984) shall at all times be
nonforfeitable, and to the extent a Participant’s Employer Contributions Account is
attributable to contributions with respect to Plan Years beginning before January 1, 1989
shall be subject to the restrictions on distributions contained in Code Section 401(k)
applicable to amounts contributed to a trust under Code Section 401(k).

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4.4 Return of Contributions to Employers.

     (1) Except as provided in Subsection (2) of this Section, the Trust Fund shall never
inure to the benefit of any Employer and shall be held for the exclusive purpose of
providing benefits to Employees, Members, Participants and their Beneficiaries and defraying
reasonable expenses of administering the Plan.

     (2) If the Internal Revenue Service shall determine that an Employer has contributed,
under this Article IV, an amount for any Plan Year which is in excess of the amount which is
deductible by it under Code Section 404 for such Plan Year, such contribution (to the extent
the deduction is disallowed) shall, upon written request of the Employer filed with the
Trustee, be returned to the Employer within one year after the deduction was disallowed. If
any contribution is made by an Employer due to a mistake of fact, such contribution shall,
upon written request of the Employer filed with the Trustee, be returned to the Employer
within one year after it is made.

4.5 Provision Pursuant to Code Section 415(c).

     (1) Except to the extent permitted under Section 3.10 of the Plan and Section 414(v) of
the Code, if applicable, the annual addition (as defined in Subsection (2) of this Section)
that may be contributed or allocated to a Participant’s Account under the Plan (and to any
account for him under any other defined contribution plan, whether or not terminated,
maintained by any Controlled Group Member) for any Plan Year shall not exceed the lesser of:

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

          (b) 100 percent of the Participant’s compensation, within the meaning of Section
415(c)(3) of the Code, for the Plan Year, and in particular shall mean wages within the
meaning of Section 3401(a) of the Code (for purposes of income tax withholding at the
source), plus amounts that would be included in wages but for an election under Section
125(a), 132(f)(4), 402(e)(3), 402(h)(1)(B), 402(k), or 457(b) of the Code (provided that any
rules that limit the remuneration included in wages based on the nature or location of the
employment or the services performed are disregarded for this purpose). Notwithstanding any
other provision of the Plan to the contrary, effective for Plan Years beginning on and after
July 1, 2007, if a Participant has a severance from employment (as defined in Treasury
Regulations Section 1.401(k)-1(d)(2)) with the Employer and all Controlled Group Members,
compensation shall not include amounts received by the Participant following such severance
from employment except amounts that would otherwise have been paid to the Participant in the
course of his employment and are regular compensation for services during the Participant’s
regular working hours, compensation for services outside the Participant’s regular working
hours (such as overtime or shift differential pay), commissions, bonuses, or other similar
compensation, but only to the extent such amounts (1) would have been includable in
compensation if his employment had continued and (2) are paid before the later of (a) the
close of the limitation year in which the Participant’s severance from employment occurs or
(b)

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within 2 1/2 months of such severance. Compensation shall also include amounts that are
payments for accrued bona fide sick, vacation or other leave, but only if (1) the
Participant would have been able to use such leave if his employment had continued, (2) such
amounts would have been includable in compensation if his employment had continued, and (3)
such amounts are paid before the later of (a) the close of the limitation year in which the
Participant’s severance from employment occurs or (b) within 2 1/2 months of such severance.
Compensation shall also include amounts paid by an Employer to a Participant who is not
performing services for an Employer due to qualified military service (within the meaning of
Code Section 414(u)(1)), but only to the extent such amounts do not exceed the amounts the
Participant would have received if he had continued in employment with an Employer.

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

     (2) For the purpose of this Section, the term “annual addition” means the sum for the
calendar year (which shall be the limitation year) of:

          (a) employer contributions and transfer contributions from a cafeteria plan established
under Section 125 of the Code allocated to the Participant’s account,

          (b) employee contributions, and

          (c) forfeitures, if any.

Transfer Contributions, Rollover Contributions, and Catch-Up Contributions shall not be
included in determining annual additions to a Participant’s Account.

     (3) For purposes of this Section, the definition of “Controlled Group” set forth in
Subsection 1.1(10) shall be modified as provided by Code Section 415(h).

     (4) If a Participant is covered by any other defined contribution plan, if the annual
addition for the Plan Year would otherwise exceed the amount that may be applied for the
Participant’s benefit under the limitation in Subsection (1) of this Section, such excess
shall be reduced first by reducing annual additions under the Plan in the following order:
voluntary employee contributions and elective deferrals, then mandatory employee
contributions and deferrals, together with matching contributions attributable thereto. If
the limitation still would not be satisfied, such excess shall be reduced as provided in the
defined contributions plan(s) other than the Plan.

     (5) If the annual addition to the Account of a Participant in any Plan Year beginning
on or after July 1, 2007, nevertheless exceeds the amount that may be applied for his
benefit under the limitations described in this Section 4.5, correction shall be made in
accordance with the Employee Plans Compliance Resolution System, as set forth in Revenue
Procedure 2006-27, or any superseding guidance.

-18-

 

     4.6 401(m) Provisions.

     (1) Notwithstanding any other provision of the Plan to the contrary, the Plan shall
meet the nondiscrimination test of Section 401(m) of the Code. The provisions of Section
401(m) and Sections 1.401(m)-1 and 1.401(m)-2 of the Treasury regulations are incorporated
herein by reference. For Plan Years beginning on or after January 1, 1997 and prior to
January 1, 2003, the nondiscrimination test of Section 401(m) of the Code is applied using
the contribution percentage for eligible Highly Compensated Employees for the Plan Year and
the contribution percentage for all other eligible employees for the preceding Plan Year.
For Plan Years beginning on or after January 1, 2003, the nondiscrimination test of Section
401(m) of the Code is applied using the contribution percentage for eligible Highly
Compensated Employees for the Plan Year and the contribution percentage for all other
eligible employees for the Plan Year.

     (2) Notwithstanding any other provision of the Plan to the contrary, in the event that
the limitation contained in Section 4.6(1) is exceeded in any Plan Year, the Basic
Contributions (Non CODA), Supplemental Contributions (Non CODA), and Employer Contributions
made by or on behalf of Highly Compensated Employees that exceed the maximum amount
permitted to be contributed to the Plan by or on behalf of such Highly Compensated Employees
under Section 4.6(1), plus any income and minus any losses attributable thereto, shall be
distributed as provided below prior to the end of the next succeeding Plan Year. If such
excess amounts are distributed more than 2 1/2 months after the last day of the Plan Year
for which the excess occurred, an excise tax may be imposed under Section 4979 of the Code
on the Employer maintaining the Plan with respect to such amounts. The excess attributable
to a Highly Compensated Employee shall be determined as follows:

          (a) The total excess is calculated by (i) determining the reduction in Basic
Contributions (Non CODA), Supplemental Contributions (Non CODA) and/or Employer
Contributions of the Highly Compensated Employee whose contribution percentage is highest of
all such Highly Compensated Employees that is necessary to cause his contribution percentage
to equal the next highest contribution percentage among such Highly Compensated Employees
(or lesser reduction necessary to meet the limitation contained in Section 4.6(1)) and (ii)
if the adjustment described in (i) above is not sufficient to cause the Plan to meet the
limitation contained in Section 4.7(1), by continuing the adjustment described in (i) above
by determining the reduction in the Basic Contributions (Non CODA), Supplemental
Contributions (Non CODA) and/or Employer Contributions of the Highly Compensated Employees
with the then-highest contribution percentage necessary to cause the then-highest
contribution percentage to be reduced to the next highest contribution percentage (or lesser
reduction necessary to meet the limitation contained in Section 4.7(1)) and so on in a like
manner until such time as the Plan meets the limitation contained in Section 4.7(1).

          (b) After determining the dollar amount of the total excess that has been made to the
Plan, such total excess shall be allocated among Highly Compensated Employees in order of
the dollar amount of the total amount of the Basic Contributions (Non CODA), Supplemental
Contributions (Non CODA) and Employer Contributions

-19-

 

made on behalf of the Highly Compensated Employees for the Plan Year determined by (i)
reducing the contributions made on behalf of the Highly Compensated Employee with the
largest dollar amount of such contributions for the Plan Year to the greater of (I) a dollar
amount that yields the dollar amount of the total excess or (II) the dollar amount of such
contributions made on behalf of the Highly Compensated Employee with the next highest dollar
amount of such contributions for the Plan Year and (ii) if the total excess has not been
fully allocated after the application of the provisions of (i) above, the adjustments
described in (i) above shall continue by reducing the contributions made on behalf of Highly
Compensated Employees with the then-largest remaining dollar amount of such contributions
for the Plan Year to the greater of (I) a dollar amount that yields the dollar amount of the
total excess or (II) the dollar amount of such contributions made on behalf of the Highly
Compensated Employee with the next highest dollar amount of such contributions for the Plan
Year, and so on in a like manner until the total excess determined above has been allocated.

The distribution requirement of this Section shall be satisfied by reducing contributions
made by or on behalf of the Highly Compensated Employee to the extent necessary in the
following order:

     (i) Supplemental Contributions (Non CODA) made by the Highly
Compensated Employee, if any, shall be distributed.

     (ii) Basic Contributions (Non CODA) made by the Highly Compensated
Employee that have not been matched, if any, shall be distributed.

     (iii) Pro rata amounts of Basic Contributions (Non CODA) made by the
Highly Compensated Employee that have been matched, if any, and the Employer
Contributions attributable thereto shall be distributed.

     (iv) Employer Contributions attributable to Basic Contributions (CODA)
shall be distributed.

The determination of the amount of excess Basic Contributions (Non CODA), Supplemental
Contributions (Non CODA), and Employer Contributions shall be made after application of
Section 4.7, if applicable.

     (3) The income or loss attributable to excess aggregate contributions that are
distributed pursuant to this Section shall be determined by multiplying the income or loss
for the preceding Plan Year and the Gap Period, as defined below, attributable to the
Participant’s Account to which the excess contributions were credited by a fraction, the
numerator of which is the excess contributions made to such Account on the Participant’s
behalf for the preceding Plan Year and the denominator of which is (a) the balance of the
Account on the date of the distribution of the excess, (b) reduced by the gain attributable
to contributions to such Account for the preceding Plan Year and the Gap Period, and (c)
increased by the loss attributable to contributions to such Account for the preceding Plan

-20-

 

Year and the Gap Period. The “Gap Period” for purposes of this Section means the
period between the close of the Plan Year in which the excess contributions were made and
the date the contributions are distributed.

     (4) The Administrative Committee, in its sole discretion, may limit Basic Contributions
(Non CODA), Supplemental Contributions (Non CODA), and/or Employer Contributions in a manner
to prevent excess aggregate contributions from being made.

     (5) In determining the contribution percentage for any eligible Participant who is a
Highly Compensated Employee for the Plan Year, matching contributions, employee
contributions, qualified nonelective contributions, and elective contributions (to the
extent that qualified nonelective contributions and elective contributions are taken into
account in determining contribution percentages) made to his accounts under any plan of an
Employer or a Controlled Group member that is not mandatorily disaggregated pursuant to IRS
regulations Section 1.410(b)-7(c) , as modified by Section 1.401(m)-1(b)(4) (without regard
to the prohibition on aggregating plans with inconsistent testing methods contained in
Section 1.401(m)-1(b)(4)((iii)(B) and the prohibition on aggregating plans with different
plan years contained in Section 1.410(b)-7(d)(5)), shall be treated as if all such
contributions were made to the Plan; provided, however, that if such a plan has a plan year
different from the Plan Year, any such contributions made to the Highly Compensated
Employee’s accounts under the other plan during the Plan Year shall be treated as if such
contributions were made to the Plan.

     If one or more plans of an Employer or Controlled Group member are aggregated with the
Plan for purposes of satisfying the requirements of Code Section 401(a)(4) or 410(b), then
“contribution percentages” under the Plan shall be calculated as if the Plan and such one or
more other plans were a single plan. Pursuant to Treasury regulations Section
1.401(m)-1(b)(4)(v), an Employer may elect to calculate “contribution percentages”
aggregating ESOP and non-ESOP plans. In addition, an Employer may elect to calculate
“contribution percentages” aggregating bargained and non-bargained plans and/or bargained
plans maintained for different bargaining units, provided that such aggregation is done on a
reasonable basis and is reasonably consistent from year to year. Plans may be aggregated
under this paragraph only if they have the same plan year and utilize the same testing
method to satisfy the requirements of Code Section 401(m).

     (6) Employer Contributions in excess of 100% of the Basic Contributions (CODA) of an
eligible Participant who is not a Highly Compensated Employee for a Plan Year shall not be
used in computing such eligible Participant’s contribution percentage for the Plan Year to
the extent that such Employer Contributions exceed the greater of (i) 5% of the eligible
Participant’s test compensation for the Plan Year or (ii) the product of 2 times the Plan’s
“representative match rate” multiplied by the eligible Participant’s Basic Contributions
(CODA) for the Plan Year. The Plan’s “representative match rate” is the lowest “match rate”
of any eligible Participant who is not a Highly Compensated Employee for the Plan Year in
either (i) the group consisting of half of all eligible Participants who are not Highly
Compensated Employees for the Plan Year or (ii) the group of all eligible Participants who
are not Highly Compensated Employees for the Plan Year and who are employed by the Employer
or a Controlled Group member on the

-21-

 

last day of the Plan Year and who make Basic Contributions (CODA) for the Plan Year,
whichever results in the greater amount. An eligible Participant’s “match rate” means the
Employer Contributions made on behalf of the eligible Participant for the Plan Year divided
by the eligible Participant’s Basic Contributions (CODA) for the Plan Year; provided,
however, that if Employer Contributions are made at different rates for different levels of
Credited Compensation, the “match rate” shall be determined assuming Basic Contributions
(CODA) equal to 6% of Credited Compensation.

     4.7 401(k) Testing Provisions.

     (1) Notwithstanding any other provision of the Plan to the contrary, the Plan shall
meet the nondiscrimination test of Section 401(k)(3) of the Code. The provisions of Section
401(k) and 401(m)(9) of the Code and Sections 1.401(k)-1(b) and 1.401(m)-2 of the Treasury
regulations are incorporated herein by reference. For Plan Years beginning on or after
January 1, 1997 and prior to January 1, 2003, the nondiscrimination test of Section
401(k)(3) of the Code is applied using the actual deferral percentage for eligible Highly
Compensated Employees for the Plan Year and the actual deferral percentage for all other
eligible employees for the preceding Plan Year. For Plan Years beginning on or after
January 1, 2003, the nondiscrimination test of Section 401(k)(3) of the Code is applied
using the actual deferral percentage for eligible Highly Compensated Employees for the Plan
Year and the actual deferral percentage for all other eligible employees for the Plan Year.

     (2) Notwithstanding any other provision of the Plan to the contrary, in the event that
the limitation contained in Section 4.7(1) is exceeded in any Plan Year, the Basic
Contributions (CODA) and Supplemental Contributions (CODA) made on behalf of a Highly
Compensated Employee that exceed the maximum amount permitted to be contributed to the Plan
on behalf of such Highly Compensated Employee under Section 4.7(1), plus any income and
minus any losses attributable thereto, shall as provided below either be recharacterized
within 2-1/2 months after the close of the Plan Year to which the recharacterization relates
or distributed prior to the end of the next succeeding Plan Year. If such excess amounts
are distributed more than 2-1/2 months after the last day of the Plan Year for which the
excess occurred, an excise tax may be imposed under Section 4979 of the Code on the employer
maintaining the Plan with respect to such amounts. The excess attributable to a Highly
Compensated Employee shall be determined as follows:

          (a) The total excess is calculated by (i) determining the reduction in Basic
Contributions (CODA) and Supplemental Contributions (CODA) of the Highly Compensated
Employee whose actual deferral percentage is highest of all such Highly Compensated
Employees that is necessary to cause his actual deferral percentage to equal the next
highest actual deferral percentage among such Highly Compensated Employees (or lesser
reduction necessary to meet the limitation contained in Section 4.7(1)) and (ii) if the
adjustment described in (i) above is not sufficient to cause the Plan to meet the limitation
contained in Section 4.7(1), by continuing the adjustment described in (i) above by
determining the reduction in the Basic Contributions (CODA) and Supplemental Contributions
(CODA) of the Highly Compensated Employees with the

-22-

 

then-highest actual deferral percentage necessary to cause the then-highest actual
deferral percentage to be reduced to the next highest actual deferral percentage (or lesser
reduction necessary to meet the limitation contained in Section 4.7(1)) and so on in a like
manner until such time as the Plan meets the limitation contained in Section 4.7(1).

          (b) After determining the dollar amount of the total excess that has been made to the
Plan, such total excess shall be allocated among Highly Compensated Employees in order of
the dollar amount of the total amount of the Basic Contributions (CODA) and Supplemental
Contributions (CODA) made on behalf of the Highly Compensated Employees for the Plan Year
determined by (i) reducing the contributions made on behalf of the Highly Compensated
Employee with the largest dollar amount of such contributions for the Plan Year to the
greater of (I) a dollar amount that yields the dollar amount of the total excess or (II) the
dollar amount of such contributions made on behalf of the Highly Compensated Employee with
the next highest dollar amount of such contributions for the Plan Year and (ii) if the total
excess has not been fully allocated after the application of the provisions of (i) above,
the adjustments described in (i) above shall continue by reducing the contributions made on
behalf of Highly Compensated Employees with the then-largest remaining dollar amount of such
contributions for the Plan Year to the greater of (I) a dollar amount that yields the dollar
amount of the total excess or (II) the dollar amount of such contributions made on behalf of
the Highly Compensated Employee with the next highest dollar amount of such contributions
for the Plan Year, and so on in a like manner until the total excess determined above has
been allocated.

          The recharacterization or distribution requirement of this Section shall be satisfied by
reducing contributions made by or on behalf of the Highly Compensated Employee to the extent
necessary in the following order:

     (i) Supplemental Contributions (CODA) made on behalf of the Highly
Compensated Employee, if any, shall be recharacterized to the extent
possible.

     (ii) Supplemental Contributions (CODA) made on behalf of the Highly
Compensated Employee, if any, and to the extent not recharacterized, shall
be distributed.

     (iii) Basic Contributions (CODA) made on behalf of the Highly
Compensated Employee that have not been matched, if any, shall be
recharacterized to the extent possible.

     (iv) Basic Contributions (CODA) made on behalf of the Highly
Compensated Employee that have not been matched, if any, and to the extent
not recharacterized, shall be distributed.

     (v) Basic Contributions (CODA) made on behalf of the Highly Compensated
Employee that have been matched, if any, shall be recharacterized to the
extent possible.

-23-

 

     (vi) Basic Contributions (CODA) made on behalf of the Highly
Compensated Employee that have been matched, if any, and to the extent not
recharacterized, shall be distributed.

          The amount of Basic Contributions (CODA) and Supplemental Contributions (CODA) that may be
recharacterized shall not exceed the maximum amount of Basic Contributions (Non CODA) and
Supplemental Contributions (Non CODA) (determined without regard to the limitation set forth in
Section 4.6) that the Highly Compensated Employee could have made under the Plan in effect on the
first day of the Plan Year in the absence of recharacterization.

          If an amount of Basic Contributions (CODA) is distributed to a Participant or recharacterized
so as not to be eligible for a matching Employer Contribution, Employer Contributions that are
attributable solely to the distributed or recharacterized amount, plus any income and minus any
losses attributable thereto, shall be forfeited by the Participant. Any such forfeited amounts
shall be applied against the Employer Contribution obligation for the Plan Year of the Employer for
which the Participant last performed services as an Employee or if the amount of all such
forfeitures for any Plan Year with respect to any Employer exceed the amount of such Employer’s
Employer Contribution obligation for the Plan Year, the excess amount of such forfeitures shall be
held unallocated in a suspense account established with respect to the Employer and shall for all
Plan purposes be applied against the Employer’s Employer Contribution obligation for the following
Plan Year.

     (3) The income or loss attributable to excess contributions that are distributed or
recharacterized pursuant to this Section shall be determined in the same manner as income or
loss attributable to excess aggregate contributions as set forth in Section 4.6(3).

     (4) The amount of excess contributions to be distributed or recharacterized pursuant to
this Section with respect to an Employee for a Plan Year, shall be reduced by any Basic
Contributions (CODA) and Supplemental Contributions (CODA) previously distributed to the
Employee as excess deferrals for the Employee’s taxable year ending with or within the Plan
Year in accordance with Section 402(g)(2) of the Code. The amount of Basic Contributions
(CODA) and Supplemental Contributions (CODA) that may be distributed as excess deferrals
under Section 3.8 with respect to an Employee for a taxable year shall be reduced by any
Basic Contributions (CODA) and Supplemental Contributions (CODA) previously distributed or
recharacterized under this Section with respect to the Employee for the Plan Year beginning
with or within the taxable year.

     (5) Basic Contributions (CODA) and Supplemental Contributions (CODA) that are
recharacterized under this Section shall continue to remain subject to the nonforfeitability
and distribution limitations that apply to Basic Contributions (CODA) and Supplemental
Contributions (CODA) under the Plan.

     (6) The Administrative Committee, in its sole discretion, may limit Basic Contributions
(CODA) and/or Supplemental Contributions (CODA) in a manner to prevent excess contributions
from being made.

-24-

 

     (7) In determining the deferral percentage for any Eligible Employee who is a Highly
Compensated Employee for the Plan Year, elective contributions, qualified nonelective
contributions, and qualified matching contributions (to the extent that qualified
nonelective contributions and qualified matching contributions are taken into account in
determining deferral percentages) made to his accounts under any plan of an Employer or a
Controlled Group member that is not mandatorily disaggregated pursuant to IRS regulations
Section 1.410(b)-7(c), as modified by Section 1.401(k)-1(b)(4) (without regard to the
prohibition on aggregating plans with inconsistent testing methods contained in Section
1.401(k)-1(b)(4)((iii)(B) and the prohibition on aggregating plans with different plan years
contained in Section 1.410(b)-7(d)(5)), shall be treated as if all such contributions were
made to the Plan; provided, however, that if such a plan has a plan year different from the
Plan Year, any such contributions made to the Highly Compensated Employee’s accounts under
the other plan during the Plan Year shall be treated as if such contributions were made to
the Plan.

If one or more plans of an Employer or Controlled Group member are aggregated with the Plan
for purposes of satisfying the requirements of Code Section 401(a)(4) or 410(b), then
deferral percentages under the Plan shall be calculated as if the Plan and such one or more
other plans were a single plan. Pursuant to Treasury regulations Section
1.401(k)-1(b)(4)(v), an Employer may elect to calculate deferral percentages aggregating
ESOP and non-ESOP plans. In addition, an Employer may elect to calculate deferral
percentages aggregating bargained and non-bargained plans and/or bargained plans maintained
for different bargaining units, provided that such aggregation is done on a reasonable basis
and is reasonably consistent from year to year. Plans may be aggregated under this
paragraph only if they have the same plan year and utilize the same testing method to
satisfy the requirements of Code Section 401(k).

ARTICLE V

PAYSOP PROVISIONS

     5.1 Employer Contributions to PAYSOP Fund. For any Plan Year beginning in 1984, 1985
or 1986 and with respect to which they made an election to claim an employee stock ownership
credit pursuant to Section 44G of the Code or Section 41 of the Code, the Employers made
contributions to the PAYSOP Fund (such contributions shall be referred to herein as “PAYSOP
Contributions”) in the form of shares of Common Stock or cash, in aggregate value equal to the
applicable percentage set forth below of the aggregate Credited Compensation paid or accrued
during such Plan Year to all Employees who had contributions made to the Plan, pursuant to Section
3.1 of the Plan as in effect at the relevant time during such Plan Year(s) and who were Members as
of the last pay period of the Plan Year(s) for which such PAYSOP Contributions were made:

-25-

 

	 	 	 	 	 
	Aggregate Credited Compensation	 	 	 	 
	Paid or Accrued	 	 	 	Applicable
	During Year	 	 	 	Percentage
	1984

	 	 	 	0.5
	1985
	 	 	 	0.5
	1986
	 	 	 	0.5

Such contributions made by the Employers were and shall be governed by the other provisions of the
Plan, unless otherwise provided in this Article V.

     5.2 Time for Making Contribution. The Employers were required to make contributions
to the PAYSOP Fund in the amounts specified in Section 5.1 on or before the 30th day following the
due date (including extensions) for filing their income tax returns for the taxable year
coinciding with such Plan Year(s); provided, however, that in the case of an Employer whose credit
(as determined above) exceeds applicable limitations of the Code,

     (1) such Employer was and shall not be required to make that portion of its
contribution allocable to employee stock ownership credit carrybacks of such excess credit
sooner than the time otherwise required by the foregoing provisions of this Section, and

     (2) such Employer was and shall not be required to make that portion of its
contribution allocable to employee stock ownership credit carryovers of such excess credit
sooner than the due date (including extensions) for the filing of the Employer’s income tax
return for the taxable year to which such portion is carried over.

     5.3 Valuation of Common Stock. For purposes of determining the number of shares of
Common Stock required to be contributed under Section 5.1, Common Stock contributed to the Trust
was or shall be valued in the same manner as described in Section 4.2 of the Plan as in effect at
the relevant time with respect to Employer Contributions.

     5.4 Cash Contributions. To the extent the contribution required by Section 5.1 was
made in cash, substantially all such cash was used to purchase new or existing shares of Common
Stock on or before the 30th day following the day on which such contribution was made pursuant to
Section 5.2.

     5.5 Eligible Employees. All Employees who made Basic Contributions (CODA) at any
time during a Plan Year, who received Credited Compensation at any time during such Plan Year and
who were Members as of the last pay period of such Plan Year were eligible to share in PAYSOP
Contributions for such Plan Year.

     5.6 Allocation of PAYSOP Contributions.

     (1) Subject to the requirements of Sections 4.5, 4.6 and 5.11 of the Plan as in effect
at the relevant time, the PAYSOP Contribution for any Plan Year was allocated equally among
the Accounts of Participants eligible to share in such contribution so that

-26-

 

each such Participant received as an allocation to his Account the same share of the
PAYSOP Contribution for such Plan Year as each such other Participant received. For
purposes of this Section, compensation of any Participant in excess of the first $100,000
per year was disregarded.

     (2) Notwithstanding the foregoing provisions, the allocation to the account of any
Participant which is attributable to the employee stock ownership credit allowed under
Section 44G or Section 41 of the Code may be extended over whatever period may be necessary
to comply with requirements of Section 415 of the Code.

     5.7 Limitations on Distributions of Common Stock. Except in the case of
distributions made pursuant to Section 7.2 or 7.3 of the Plan, no Common Stock allocated to a
Participant’s PAYSOP Contribution Account may be distributed from such PAYSOP Contribution Account
before the end of the 84th month beginning after the month in which the Common Stock is allocated
to such Account.

     5.8 Nonforfeitable Rights. A Participant’s rights to Common Stock or other property
allocated to his PAYSOP Contribution Account shall be nonforfeitable at all times.

     5.9 Expenses of Establishing and Administering PAYSOP Provisions.

     (1) Unless paid by the Employers there shall be paid from the Trust Fund so much of the
amounts incurred in connection with establishment of the PAYSOP Fund as does not exceed the
sum of 10 percent of the first $100,000 of the contribution that the Employers are required
to make to the PAYSOP Fund under Section 5.1 of the Plan as in effect at the relevant time
for the Plan Year in which the Plan was established and 5 percent of any amount in excess of
the first $100,000 of such contribution.

     (2) Unless paid by the Employers there shall be paid from the PAYSOP Fund so much of
the amounts incurred during any Plan Year as expenses of administering the PAYSOP Fund as
does not exceed the smaller of (a) $100,000 or (b) the sum of 10 percent of the first
$100,000 and 5 percent of any amount in excess of $100,000 of the income from dividends paid
to the PAYSOP Fund with respect to Common Stock during such Plan Year.

     (3) As reimbursement for the expenses of establishing or administering the Plan, the
Employers may, in their discretion, withhold from amounts required to be contributed to the
PAYSOP Fund any portion of such expenses paid by the Employers, but only to the extent that
such expenses could have been paid from the PAYSOP Fund pursuant to Subsection (1) or (2) of
this Section.

     (4) Any expenses of establishing or administering the PAYSOP Fund in excess of the
amounts permitted to be paid from the PAYSOP Fund pursuant to Subsection (1) or (2) of this
Section shall be paid by the Employers.

     5.10 Redetermination of Credit. Amounts which are transferred to the Plan (because
of the requirements of Section 44G(c)(1)(B) or Section 41(c)(1)(B) of the Code) shall remain in
the Plan (and, if allocated under the Plan, shall remain as allocated), even though part or all of

-27-

 

the credit allowed under such Section 44G or Section 41 is redetermined, provided, however,
in the case of any such final redetermination:

     (1) the Employers may reduce the amount required to be contributed by the Employers
pursuant to Section 5.1 of the Plan as in effect at the relevant time for the Plan Year in
which the final redetermination occurs or any succeeding Plan Year by the amount of the
reduction of such credit, or

     (2) the Employers may deduct such amount of the reduction of such credit from federal
taxes on income pursuant to Section 404(i)(2) of the Code.

     5.11 Non-discrimination. Notwithstanding anything in this Article V to the contrary,
no more than one-third of the PAYSOP Contributions for any Plan Year shall be allocated to the
group of Employees consisting of

     (1) officers of the Employers;

     (2) shareholders owning more than 10 percent of an Employer’s stock (within the meaning
of Code Section 415(c)(6)(B)(iv)); or

     (3) Employees described in Code Section 415(c)(6)(B)(iii).

     5.12 ESOP Diversification Right. Effective with respect only to Common Stock
acquired under the Plan after December 31, 1986, and to the extent required under regulations,
rulings, notices and other authority of the Commissioner of Internal Revenue and/or the Internal
Revenue Service, and to the extent other provisions of the Plan do not permit investment
transfers, withdrawals, or distributions with respect to PAYSOP Contribution Accounts, any
Employee who has been a Participant under the Plan for ten or more years and who has attained age
55 may elect, within the 90 day election period following the close of each Plan Year during his
“qualified period”, to transfer up to 25 percent of the balance of his PAYSOP Contributions
Account from the PAYSOP Fund or the Company Stock Fund to another Investment Fund (except the
Company Stock Fund); provided, however, that for the last Plan Year in his qualified period, such
Employee may elect to transfer up to 50 percent of the balance of his PAYSOP Contributions
Account. A Participant who elects to transfer a portion of his PAYSOP Contributions Account in
accordance with this Section may elect to make further transfers hereunder only to the extent that
such further transfers when combined with all prior transfers made pursuant to this Section, do
not exceed the percentage limit in effect for that Plan Year. The transfer shall be made in
accordance with a Participant’s election hereunder within 90 days of the end of the 90 day
election period. For purposes of this Section, a Participant’s “qualified period” shall mean the
six-Plan Year period beginning with the Plan Year in which the Participant (i) attains age 55 or
(ii) completes his tenth year as a Participant, whichever is later. If at the time of a
Participant’s right to make an election under this Section, there are not three Investment Funds
to which the Participant may transfer a portion of his PAYSOP Contributions Account, the
Participant may elect to receive a distribution of such portion in lieu of a transfer pursuant to
this Section. Such distribution (if any) may, at the election of the Participant in accordance
with rules prescribed by the Committee, be (i) in cash,

-28-

 

or (ii) in full shares of Common Stock with any fractional shares paid in cash. Elections
pursuant to this Section shall be made in the form and manner prescribed by the Committee.

ARTICLE VI

INVESTMENTS

     6.1 Investment of Funds.

     (1) The Trust Fund shall contain Investment Funds which shall include (a) the Company
Stock Fund, and (b) (prior to January 3, 1995) the PAYSOP Fund. Effective as of January 3,
1995, the PAYSOP Fund was merged into the Company Stock Fund and each (affected)
Participant’s Account(s) was adjusted accordingly. In addition, the Retirement Plan
Investment Committee may select or establish for investment of any portion of the Trust Fund
any other Investment Fund or Funds, which it deems shall be for the benefit of Participants
and their Beneficiaries and which shall comply with applicable law, including ERISA (and the
Retirement Plan Investment Committee may modify or eliminate any such Investment Funds).
Each such other Investment Fund may be invested in any common or collective fund, whether
established or maintained by the Trustee or any other person, for the collective investment
and reinvestment of assets of pension and profit sharing trusts which are exempt from
federal income taxation under the Internal Revenue Code. Notwithstanding the foregoing, in
exercising its authority to select and establish (and modify or eliminate) Investment Funds
under the Plan, the Retirement Plan Investment Committee shall act in such manner that it
shall be expected that the Plan will offer a broad range of investment alternatives within
the meaning of Department of Labor regulation section 2550.404c-1(b) as in effect from time
to time.

     (2) Member Contributions, Transfer Contributions, Rollover Contributions, Employer
Contributions, and PAYSOP Contributions shall be allocated to such Investment Funds as
hereinafter set forth. The Trustee (or Investment Manager) shall hold, manage, administer,
invest, reinvest, account for and otherwise deal with the Trust Fund and each separate
Investment Fund as provided in the Trust Agreement.

     (3) Except as otherwise expressly provided in the Plan or Trust Agreement, the Trustee
shall not sell, alienate, encumber, pledge, transfer or otherwise dispose of, or tender or
withdraw, any Common Stock of the Company held by it under the Plan. In the event the
Administrative Committee has determined that a tender offer for shares of Common Stock of
the Company has commenced, then, the Administrative Committee shall notify the Trustee
thereof in writing and the provisions of the Trust Agreement regarding a tender offer shall
apply. To the maximum extent permitted by ERISA, any decision and/or direction by a
Participant or Beneficiary to tender (or not tender) or to sell (or not sell) pursuant to
this Subsection (3) and the Trust Agreement shall constitute a direction to the Trustee
within the meaning of Section 403(a) of ERISA, and each Participant or Beneficiary who so
exercises such control shall, by such exercise, release and agree, on his behalf and on
behalf of his heirs and beneficiaries, to indemnify and hold harmless the Trustee, the
Employers and the Committee from and against any claims, demand, loss, liability, cost or
expense (including reasonable attorney’s fees)

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caused by or arising out of such direction, including without limitation any diminution
in value or losses incurred from such direction.

     6.2 Account. Each Participant shall have established for him accounts to reflect his
(1) Member Contributions (hereinafter referred to as the “Member Contributions Account”), (2)
Employer Contributions (hereinafter referred to as the “Employer Contributions Account”), (3)
Transfer Contributions, if any (hereinafter referred to as the “Transfer Contributions Account”),
(4) Rollover Contributions, if any (hereinafter referred to as the “Rollover Contributions
Account”) and (5) PAYSOP Contributions (hereinafter referred to as the “PAYSOP Contributions
Account”). The Member Contributions Account shall be further subdivided and separate records
maintained showing the amount of his (a) Member Contributions made pursuant to a CODA and (b)
Member Contributions not made pursuant to a CODA. The Transfer Contributions Account shall be
further subdivided and separate records maintained to reflect separately the portions thereof
attributable to transfers from another plan qualified under Code Section 401(a) and from a
cafeteria plan established under Code Section 125. The Member Contributions Account, Transfer
Contributions Account, Rollover Contributions Account, and Employer Contributions Account shall
each be further subdivided and separate records maintained showing the portion of each such
Account invested in each Investment Fund. Each such Account shall also maintain separate records
showing the amount of contributions thereto, payments and withdrawals therefrom and the amount of
income, expenses, gains and losses attributable thereto. All such Accounts are referred to herein
as a Participant’s “Account” and the interest of each Participant hereunder at any time shall
consist of the amount standing to his Account (as determined in Section 6.7 below) as of the last
preceding Valuation Date plus credits and minus debits to such Account since that date.

     6.3 Investment of Member, Transfer and Rollover Contributions. Each Participant
shall, in such manner and subject to such restrictions as shall be prescribed (from time to time)
by the Committee, direct that his Member Contributions, his Transfer Contributions, if any, and
his Rollover Contributions, if any, allocated to his Account be invested in any one or more of the
Investment Funds. Such election shall designate the portion to be invested in each such Fund in
terms of the percentage and/or amount to be so invested, subject to such percentage and/or amount
limitations as shall be prescribed from time to time by the Committee. In exercising its
authority with respect to the manner and restrictions prescribed for investment directions, the
Committee shall act in such manner that it shall be expected that the Plan will offer a broad
range of investment alternatives within the meaning of Department of Labor regulation section
2550.404c-1(b) as in effect from time to time and provide an opportunity for a Participant to
exercise control over assets in his individual account within the meaning of Department of Labor
regulation section 2550.404c-1(b) as in effect from time to time. Notwithstanding the foregoing,
in the case of a Participant for whom an automatic deferral election is made pursuant to Section
3.11 and who has not provided an affirmative direction concerning the investment of his Member
Contributions or the Employer Contributions allocated to his Account in the manner described in
this Section 6.3, his Basic Contributions (CODA) and the Employer Contributions allocated to his
Account shall be invested in an Investment Fund designated for such purpose from time to time by
the Retirement Plan Investment Committee, which designated Investment Fund need not be the same
for each such Participant.

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     6.4 Investment of Employer and PAYSOP Contributions. Employer Contributions
allocated to a Participant’s Account shall be invested in any one or more of the Investment Funds
in the same manner and subject to the same restrictions as his Member Contributions with respect
to such contribution period in accordance with Section 6.3. All PAYSOP Contributions shall have
been invested in the PAYSOP Fund, and except as otherwise diversified at the direction of the
Participant as provided in Section 5.12 or Section 6.5 shall remain invested in the Company Stock
Fund.

     6.5 Change of Investment Option. On such date or dates, which need not be uniform
with respect to any or all Investment Funds or with respect to future Member Contributions,
Transfer Contributions, Rollover Contributions, Employer Contributions and account balance
transfers, as may be prescribed by the Committee (the “Investment Change Date(s)”), a Participant
may, in such manner as the Committee shall prescribe, change his investment option with respect to
future Member Contributions, Transfer Contributions, Rollover Contributions and Employer
Contributions. On each Investment Change Date, a Participant may, in such manner and subject to
such restrictions as the Committee shall prescribe, transfer from one Investment Fund to another
Investment Fund, amounts credited to one or more of his Member Contributions Account, Transfer
Contributions Account, Rollover Contributions Account, Employer Contributions Account and PAYSOP
Contributions Account, effective prospectively at such time(s) as shall be fixed by the Committee,
subject to such percentage, amount, and/or other limitations with respect to one or more of such
Accounts as shall be prescribed by the Committee. In exercising its authority with respect to the
manner and restrictions prescribed for changes in investment options, the Committee shall not
impose restrictions or conditions with respect to investment in the Company Stock Fund which are
not imposed with respect to other Investment Funds, except to the extent imposed by reason of
application of securities laws. Moreover, the Committee shall act in such manner that it shall be
expected that the Plan will offer a broad range of investment alternatives within the meaning of
Department of Labor regulation section 2550.404c-1(b) as in effect from time to time and provide
an opportunity for a Participant to exercise control over assets in his individual account within
the meaning of Department of Labor regulation section 2550.404c-1(b) as in effect from time to
time.

     6.6 Reports. The Company shall cause reports to be made or available at least
quarterly to each Participant as to the value of his Account.

     6.7 Valuation of Investment Funds.

     (1) As of each Valuation Date, the Trustee shall determine the value of each Investment
Fund in accordance with the Trust Agreement. The transfer of funds to or from an Investment
Fund pursuant to Section 6.5, contributions allocated to an Investment Fund and payments,
distributions and withdrawals from an Investment Fund to provide benefits under the Plan for
Participants or Beneficiaries shall not be deemed to be earnings, profits, expenses or
losses of the Investment Fund.

     (2) After each Valuation Date, the net gain or loss of each Investment Fund determined
pursuant to Subsection (1) of this Section shall be allocated as of such Valuation Date to
the Accounts invested in such Investment Fund in proportion to the amounts of such Accounts
invested in such Investment Fund on such Valuation Date,

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exclusive of amounts to be credited but including amounts (other than the net loss, if
any, determined pursuant to Subsection (1) of this Section) to be debited to such Accounts
as of such Valuation Date. Notwithstanding the foregoing, in accordance with rules and
procedures prescribed by the Administrative Committee and/or the Investment Committee, each
Account in any Investment Fund may be accounted for on a share basis or on a unitized basis.

     (3) Except as may otherwise be provided by the Administrative Committee, Member
Contributions, Transfer Contributions, Rollover Contributions, and Employer Contributions
shall be credited to each Participant’s Account and allocated in accordance with the
investment option chosen by such Participant to one or more of the Investment Funds as
permitted under the Plan as of a Valuation Date occurring as soon as practicable after the
Trustee has received such contributions and appropriate instructions as to the allocation of
such contributions between the Investment Funds.

     6.8 Registration and Voting of Common Stock. All shares of Common Stock acquired by
the Trustee shall be held in possession of the Trustee until disposed of pursuant to provisions of
the Plan or the Trust Agreement. Such shares may be registered in the name of the Trustee or its
nominee. The Trustee shall solicit voting instructions and shall vote such shares as provided in
the Trust Agreement. Notwithstanding the foregoing, any shares of Common Stock allocated (or
allocable or attributable) to Participant’s PAYSOP Contribution Accounts, as to which the Trustee
does not receive instructions from Participants, shall not be voted.

     6.9 Loans.

     (1) Subject to such uniform and nondiscriminatory rules as the Committee may establish
and to the provisions of the Section, the Committee may in its discretion direct the Trustee
to make a loan or loans to a Participant who is an Employee or who is a party in interest
within the meaning of Section 3(14) of ERISA with respect to the Plan from his Account. For
each Participant for whom a loan is authorized, the Committee shall establish, pursuant to
Section 6.1(1), a separate Investment Fund (hereinafter in this Section called his “Separate
Investment Fund”), from which such loan shall be made. Each such loan shall be in an amount
which shall not exceed the lesser of: (a) 50% of the value of such Account; or (b) $50,000,
reduced by the highest outstanding balance of loans to the Participant from the Plan or
another plan of the Company or the Controlled Group during the one-year period ending on the
day before the date on which such loan is made. For the purposes of this Section, the value
of a Participant’s Account shall be determined as of the Valuation Date coinciding with or
next preceding the date the loan is made. No more than one loan may be outstanding at any
time with respect to any Participant. Additional limitations (if any) on the types and
amount of loans shall be set forth in the Rules and Regulations and Loan Application (as
herein defined).

     (2) The Committee shall approve a loan for an eligible Participant who properly
completes a loan application (the “Loan Application”) in compliance with the provisions of
the Plan and the Plan loan rules and regulations (the “Rules and

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Regulations”) and enters into a loan agreement (the “Loan Agreement”) in compliance
with the provisions of the Plan and the Rules and Regulations.

     (3) As a condition to the receipt of any loan pursuant to Subsection (1) of this
Section, a Participant shall have and maintain in his Separate Investment Fund an amount
(including any promissory note referred to in Subsection (4) of this Section) not less than
the total amount of such loan made to the Participant pursuant to this Section which is then
outstanding. To the extent determined by the Committee, any limitation or restriction
otherwise applicable to investment changes shall not be applicable to any investment change
made by a Participant to satisfy the condition specified in this Subsection (3). Loan
repayments shall be allocated to the borrowing Participant’s Account(s) in one or more of
the Investment Funds (other than the Separate Investment Fund) in accordance with the
Committee’s rules.

     (4) Loans made pursuant to Subsection (1) of this Section (a) shall be made available
to all such Participants on a reasonably equivalent basis, (b) shall not be made available
to Highly Compensated Employees in a percentage amount greater than the percentage amount
available to other Participants, (c) shall be secured by the Participant’s interest in the
Trust Fund but not in excess of 50% of the value of Participant’s accrued benefit
immediately prior to the origination of the loan and such other collateral, if any, as the
Committee may require pursuant to its Rules and Regulations, and (d) shall be evidenced by a
promissory note executed by the Participant which provides for a reasonable rate of
interest, which shall be determined by the Committee in accordance with the Rules and
Regulations, and for repayment (i) within a specified period of time, which shall not extend
beyond five years from the date the loan is made unless the loan proceeds are used to
acquire a dwelling which within a reasonable time is to be used (determined at the time the
loan is made) as a principal residence of the Participant, (ii) on terms that provide for
substantially level amortization with payments not less frequently than quarterly over the
term of the loan, and (iii) upon such other terms and conditions as the Committee shall
determine. Notwithstanding the foregoing provisions of this Section 6.9(4), the Committee
may establish Rules and Regulations in accordance with Section 1.72(p)-1 of the Treasury
regulations regarding cure periods for repayment of loans and variances to the otherwise
applicable repayment requirements for leaves of absence.

     (5) Notwithstanding any other provision of the Plan, (a) a loan made pursuant to
Subsection (1) of this Section shall be a first lien against the Participant’s interest in
the Trust Fund and any amount of principal or interest due and unpaid thereon shall be
deducted from such interest in the Trust Fund before the payment of any portion thereof to
the Participant or his Beneficiary, and (b) in the event a loan is not repaid in full within
the period of time specified in the promissory note executed by him as hereinabove provided
(or in the event of a default by a Participant which, under the provisions of such
promissory note, accelerates the payment of principal and interest on a loan), the Trustee
shall be authorized to deduct any then unpaid principal or interest on such loan from the
Accounts which comprise the Participant’s then interest in the Trust Fund in the following
order: (i) that portion of his Member Contributions Account which is attributable to his
contributions made on other than a CODA basis, (ii) that portion of his Transfer

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Contributions Account which is attributable to transfers from a cafeteria plan, (iii)
that portion of his Transfer Contributions Account which is attributable to transfers from
another plan qualified under Code Section 401(a), (iv) his Rollover Contributions Account,
(v) his PAYSOP Contributions Account, (vi) his Employer Contributions Account, and (vii) the
remainder of his Member Contributions Account; provided, however, that no such deduction
shall be made from the part of his interest in the Trust Fund included in clauses (vi) or
(vii) until such time as he becomes entitled to receive such part of his interest in the
Trust Fund under the provisions of the Plan. All other matters relating to a delinquency or
default on a loan and actions to be taken in the event of a delinquency or default shall be
in accordance with the Rules and Regulations and the Loan Agreement.

ARTICLE VII

DISTRIBUTIONS AND WITHDRAWALS

     7.1 Distributions Only as Provided. Participants’ interests hereunder shall only be
distributable as provided in this Article VII. A Participant or Beneficiary eligible to receive a
distribution under the Plan shall follow such procedures as shall from time to time be established
for that purpose by the Administrative Committee and shall provide such information as shall be
required in connection therewith.

     7.2 Distributions on Termination of Employment.

     (1) A Participant’s entire Account (including any Member Contributions which have been
withheld from the Participant’s Credited Compensation and which have not theretofore been
transmitted to the Trustee) shall be distributed as provided in Subsection (2) of this
Section 7.2 if his employment with the Controlled Group terminates for any reason other than
his death.

     (2) Such Participant’s Account shall be paid to him under one or more of the following
methods (to the extent not mutually exclusive) as the Participant elects in such manner as
shall be prescribed (from time to time) by the Committee in accordance with applicable rules
under the Code:

          (a) The entire amount of the Participant’s Account shall be paid to him in a lump sum
in cash.

          (b) The entire amount of the Participant’s Account shall be paid to him in a lump sum
in cash except that his interest attributable to the Company Stock Fund and his PAYSOP
Contributions Account shall be paid in full shares of Common Stock with any fractional
shares paid in cash.

          (c) Such amount of the Participant’s Account as the Participant shall elect in such
manner as shall be prescribed (from time to time) by the Committee to have distributed shall
be paid to him in cash; provided, however, that such amount may not be less than $200; and
provided, further, that no more than one such distribution may be made pursuant to this
Subsection (2)(c) in each calendar month.

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     (3) All distributions hereunder shall be based on the value of the Participant’s
Account on the Valuation Date immediately preceding the date of distribution and shall, for
purposes of Section 6.7 hereof, be deducted from Participants’ Accounts as of such Valuation
Date. Subject to Section 7.4, distributions hereunder shall be made or made available
within 120 days after the Trustee is notified of the Participant’s termination of employment
with the Controlled Group. Notwithstanding the foregoing provisions of this Section, if a
Participant to whom this Section applies dies before his Account has been distributed,
Section 7.3 shall govern the distribution of such undistributed portion of his Account.

     7.3 Distributions on Death. After the death of a Participant at any time before his
Account has been distributed to him, his entire (remaining) Account (including any Member
Contributions which have been withheld from the Participant’s Credited Compensation and which have
not yet been transmitted to the Trustee) shall be paid by the Trustee to his Death Beneficiary as
soon as practicable after the Trustee is notified of the Participant’s death. A Participant may
designate in such manner as prescribed by the Administrative Committee that after his death his
Account shall be paid to or for his Death Beneficiary in accordance with Subsection 7.2(2)(a)
and/or (c) above, in such amount or amounts as elected by the Death Beneficiary, but with
distribution thereof being completed within five years after the Participant’s death, or if
distribution has begun to the Participant in accordance with Section 7.8, with distribution
occurring in a manner at least as rapidly as the method of distribution being used under Section
7.8 and with distribution thereof being completed within five years after the Participant’s death.
If distribution to a Death Beneficiary is to be made in accordance with the immediately preceding
sentence, the Death Beneficiary may direct the investment of amounts allocated to the Account to
the extent and in the same manner that a Participant would be eligible to direct the investment of
his Account under Section 6.5, and if such Death Beneficiary dies after the Participant’s death,
payment shall be made to the Death Beneficiary’s estate. Any designation by a Participant of the
method of payment of death benefits hereunder may be made, changed or revoked by the Participant
prior to the Participant’s death in accordance with procedures established by the Administrative
Committee. If a Participant does not expressly designate the method of distribution, or if such a
designation is not effective, such a Participant’s Account shall be paid to the Death Beneficiary
under the method set forth in Subsection 7.2(2)(a) as soon as practicable after the Participant’s
death.

     7.4 Time of Distribution. Notwithstanding the foregoing provisions, if the value of
a Participant’s Account at the time distribution of his Account would otherwise be made or be made
available to him exceeds $1,000, such distribution to him shall not be made without his consent;
provided, however, that such consent shall not be required and the Participant’s Account shall be
distributed to him subsequent to the time of his termination of employment from the Controlled
Group in a lump sum in cash if at the time of distribution of his Account the value of his Account
is $1,000 or less.

     7.5 Non-Hardship Withdrawals. A Participant who is an Employee may withdraw in cash
a portion of his Account as provided below and in the order set forth in the following Subsections
(1) through (7), but subject to a minimum withdrawal amount of the lesser of $300 or 100% of the
maximum amount withdrawable from his Account. Any such withdrawal shall be made in accordance
with procedures established by the Administrative Committee. The

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amount of such withdrawal shall be based upon the valuation of the Participant’s Account made
as of a Valuation Date occurring on or after the date of application for such withdrawal, and such
amount shall be payable as soon as practicable after such Valuation Date, all in accordance with
procedures relating to Valuation Date and other matters established by the Administrative
Committee, provided that payment shall in any event by made not later than 45 days after such
Valuation Date unless extraordinary circumstances require payment on a later date.

     (1) The Participant may withdraw his Transfer Contributions to the extent the same are
not then taxable to the recipient for federal income tax purposes, and the earnings thereon,
and then, to the extent the terms of the transfer, provisions of the Code and other
applicable law permit, the taxable portion thereof, and the earnings thereon;

     (2) The Participant may withdraw his Rollover Contributions, and the earnings thereon;

     (3) The Participant may withdraw his Member Contributions made to the Trust prior to
April 1, 1984, and the earnings thereon;

     (4) The Participant may withdraw his Member Contributions made to the Trust after March
31, 1984 on other than a CODA basis and not subject to Employer matching, and the earnings
thereon;

     (5) If, the Participant has attained age 59-1/2 he may withdraw his Member
Contributions made to the Trust on a CODA basis and not subject to Employer matching, and
the earnings thereon;

     (6) The Participant may withdraw his Member Contributions made to the Trust after March
31, 1984 on other than a CODA basis subject to Employer matching, and the earnings thereon;
and

     (7) If the Participant has attained age 59-1/2 he may withdraw his Member Contributions
made to the Trust on a CODA basis subject to Employer matching, and the earnings thereon, as
well as Catch-up Contributions, and the earnings thereon.

          Any such withdrawal under the foregoing Subsections may not be made more frequently than once
during any consecutive nine-month period. Withdrawals from any category set forth above may not be
made until the assets in all prior categories have been withdrawn. Any Participant who has
withdrawn or withdraws assets from category (6) may not make any further Member Contributions for
at least three months after the end of the month in which any such withdrawal was or is made. No
withdrawals from a Participant’s PAYSOP Contributions Account may be made at any time under this
Section.

     7.6 Order of Distributions. Subject to the requirements of Section 5.7 and except as
may otherwise be directed by the Participant or Beneficiary by an election provided in accordance
with rules established by the Administrative Committee, any distributions (including withdrawals)
to a Participant (or his Death Beneficiary) of his interest in the Trust Fund shall be made by
liquidating a proportionate share of each of the Investment Funds in which he then has an
interest.

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     7.7 Hardship Withdrawals. In the event that the Administrative Committee shall
determine upon a Participant’s application that the participant has a hardship on account of an
immediate and heavy financial need (as defined below in this Section), the Administrative
Committee shall direct the Trustee to pay to such Participant that portion of his interest in the
Trust Fund which the Administrative Committee determines, based upon the Participant’s application
therefor, is necessary to satisfy such financial need. On account of an immediate and heavy
financial need of the Participant shall mean for:

     (1) Expenses previously incurred by or necessary to obtain for the Participant, the
Participant’s spouse, or any dependent of the Participant (as defined in Code Section 152,
without regard to subsections (b)(1), (b)(2) and (d)(1)(B) thereof) medical care deductible
under Code Section 213(d), determined without regard to whether the expenses exceed any
applicable income limit;

     (2) Costs directly related to the purchase (excluding mortgage payments) of a principal
residence for the Participant;

     (3) Payment of tuition, related educational fees, and room and board expenses for the
next 12 months of post-secondary education for the Participant, or the Participant’s spouse,
child, or other dependent (as defined in Code Section 152, without regard to subsections
(b)(1), (b)(2) and (d)(1)(B) thereof);

     (4) Payments necessary to prevent the eviction of the Participant from his principal
residence or foreclosure on the mortgage on the Participant’s principal residence;

     (5) Payment of funeral or burial expenses for the Participant’s deceased parent,
spouse, child, or dependent (as defined in Code Section 152, without regard to subsection
(d)(1)(B) thereof);

     (6) Expenses for the repair of damage to the Participant’s principal residence that
would qualify for a casualty loss deduction under Code Section 165 (determined without
regard to whether the loss exceeds any applicable income limit); and/or

     (7) Amounts necessary to pay any federal, state, or local income taxes or penalties
reasonably anticipated to result from the withdrawal under this Section.

          A withdrawal shall not be determined by the Administrative Committee to be necessary to
satisfy an immediate and heavy financial need of the Participant unless:

     (1) The withdrawal is not in excess of the amount of the immediate and heavy financial
need of the Participant;

     (2) The Participant has obtained all distributions, other than hardship distributions,
and all nontaxable loans currently available under all plans maintained by the Controlled
Group; and

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     (3) The Participant shall be prohibited from making elective (Code Section 401(k))
contributions and employee (after-tax) contributions under this and all other plans of the
Controlled Group for 6 months after receipt of the distribution.

          A Participant shall not fail to be treated as an eligible employee for purposes of Code
Section 401(k) or Code Section 401(m) merely because his contributions are suspended in accordance
with this Section. Except as otherwise provided in this Section, distributions of hardship
benefits shall not affect the Participant’s right under the Plan to make withdrawals or continue to
be a Member, but a distribution under the deemed necessity standard of this Section shall require
suspension of the Participant’s Member Contributions for the period and to the extent provided
above.

          Notwithstanding any other provision of this Section, a withdrawal by a Participant pursuant to
this Section shall be made from the portions of his Account set forth in Section 7.5 in the
priority sequence set forth therein before any other portion of his Account may be withdrawn, and
such other portion of this Account shall be withdrawn in such priority sequence as shall be
determined in accordance with rules established by the Administrative Committee.

          Notwithstanding any other provision of this Section, no withdrawals may be made at any time
pursuant to this Section of income credited after the last day of the last Plan Year ending before
July 1, 1989 to Member Contributions made on a CODA basis.

          Any distribution pursuant to this Section shall be based upon the valuation of the
Participant’s Account made as of a Valuation Date determined by the Administrative Committee
occurring on or after the date of the Trustee’s receipt of notice by the Administrative Committee
to distribute such hardship withdrawal, and such distribution shall be payable as soon as practical
after such Valuation Date, and in any event not later than 45 days after such Valuation Date,
unless extraordinary circumstances require payment on a later date. Such distribution shall be
paid in cash, except that, at the election of the Participant in accordance with rules prescribed
by the Administrative Committee, amounts attributable to the Participant’s PAYSOP Contributions
Account shall be paid in full shares of Common Stock with any fractional shares paid in cash.

     7.8 Provision Pursuant to Code Section 401(a)(9).

     (1) The interest of each Participant under the Plan will be distributed to him
beginning no later than April 1 of the calendar year following the later of the calendar
year (i) in which he attains age 70-1/2, or (ii) in which his employment with the Controlled
Group terminates; provided, however, that clause (ii) shall not be applicable (A) in the
case of an Employee who is a 5-percent owner (as such term is defined in Code Section
416(i)), at any time during the Plan Year ending with or within the calendar year in which
he attains age 70-1/2, or (B) in the case of an Employee who attains age 70-1/2 on or after
January 1, 1988 and prior to January 1, 1999. Beginning on the date determined in the
immediately preceding sentence, the interest of the Participant shall be paid to the
Participant in annual installments in cash with the amount distributed for each calendar
year determined in accordance with the regulations issued under Code Section 401(a)(9) by
dividing the Participant’s account balance under the Plan for the calendar year by the life
expectancy of the Participant, which life expectancy shall be

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recalculated annually; provided, however, that the Participant may make elections pursuant to
Subsection 2(a) of Section 7.2.

     (2) If a Participant dies before his entire interest has been distributed to him, his
entire interest will be distributed within 5 years after his death.

     (3) The provisions of this Section shall prevail over any other provision of the Plan
which is inconsistent therewith.

     (4) Notwithstanding anything to the contrary, distributions required under this Section
shall be made in accordance with Section 401(a)(9) of the Code and regulations issued
thereunder, including the minimum distribution incidental benefit requirements of Section
1.401(a)(9)-5 of the final and temporary Treasury regulations.

     7.9 Provisions Pursuant to Code Section 401(a)(31).

     (1) Notwithstanding any provision of the Plan to the contrary that would otherwise
limit a distributee’s election under this Section, a distributee may elect, at the time and
in the manner prescribed by the Administrative Committee, to have any portion of an eligible
rollover distribution paid directly to an eligible retirement plan specified by the
distributee in a direct rollover.

     (2) Eligible rollover distribution: An eligible rollover distribution is any
distribution of all or any portion of the balance to the credit of the distributee, except
that an eligible rollover distribution does not include: any distribution that is one of a
series of substantially equal periodic payments (not less frequently than annually) made for
the life (or life expectancy) of the distributee or the joint lives (or joint life
expectancies) of the distributee and the distributee’s designated beneficiary, or for a
specified period of ten years of more; any distribution to the extent such distribution is
required under Code Section 401(a)(9); the portion of any distribution that is not
includible in gross income (determined without regard to the exclusion for net unrealized
appreciation with respect to employer securities); and any distribution on account of
hardship. A portion of a distribution shall not fail to be an eligible rollover
distribution merely because the portion consists of after-tax employee contributions which
are not includible in gross income. However, such portion may be transferred only to an
individual retirement account or annuity described in Section 408(a) or (b) of the Code, or
to a qualified defined contribution plan described in Section 401(a) or 403(a) of the Code
that agrees to separately account for amounts so transferred, including separately
accounting for the portion of such distribution which is includible in gross income and the
portion of such distribution which is not so includible. Moreover, in the case of a
distributee who is a non-spouse Death Beneficiary, any distribution may be transferred only
in a trustee-to-trustee transfer and may be transferred only to an individual retirement
account or annuity described in Section 408(a) or (b) of the Code that is established for
the purpose of receiving the distribution on behalf of a designated beneficiary who is a
non-spouse Death Beneficiary.

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     (3) Eligible retirement plan: An eligible retirement plan is an individual retirement
account described in Code Section 408(a), an individual retirement annuity described in Code
Section 408(b), an annuity plan described in Code Section 403(a), or a qualified trust
described in Code Section 401(a) that accepts the distributee’s eligible rollover
distribution. The term shall also include an annuity contract described in Section 403(b)
of the Code, and an eligible plan under Section 457(b) of the Code which is maintained by a
state, political subdivision of a state, or any agency or instrumentality of a state or
political subdivision of a state, and which agrees to separately account for amounts
transferred into such plan from this Plan. The definition of eligible retirement plan shall
also apply in the case of a distribution to a surviving spouse, or to a spouse or former
spouse who is the alternate payee under a qualified domestic relation order, as defined in
Section 414(p) of the Code. Notwithstanding the foregoing, in the case of a distribution to
a non-spouse Death Beneficiary, “eligible retirement plan” shall mean only an individual
retirement account or annuity described in Section 408(a) or (b) of the Code that is
established for the purpose of receiving the distribution on behalf of a designated
beneficiary who is a non-spouse Death Beneficiary.

     (4) Distributee: A distributee includes an Employee or former Employee. In addition,
the Employee’s or former Employee’s surviving spouse and the Employee’s or former Employee’s
spouse or former spouse who is the alternate payee under a qualified domestic relations
order, as defined in Code Section 414(p), are distributees with regard to the interest of
the spouse or former spouse. In addition, the Employee’s or former Employee’s designated
beneficiary who is a non-spouse Death Beneficiary is a distributee with regard to the
interest of the Employee or former Employee.

     (5) Direct rollover: A direct rollover is a payment by the Plan to the eligible
retirement plan specified by the distributee.

ARTICLE VIII

ADMINISTRATION OF THE PLAN AND TRUST

     8.1 Responsibility for Administration. As Administrator, the Company shall be
responsible for the administration of the Plan, including but not limited to the preparation and
delivery to Participants, Beneficiaries and governmental agencies of all information, descriptions
and reports required by applicable law. The Company has delegated certain of its duties as
Administrator to the Administrative Committee established by the Company. Each Fiduciary shall
have such powers, duties and authorities as shall be specified in the Plan or Trust Agreement or
as shall be delegated to it pursuant to Section 10.2.

     8.2 Authority. Benefits under the Plan shall be paid only if the Administrative
Committee decides in its discretion that the applicant is entitled to the benefits under the
provisions of the Plan. The Administrative Committee shall have the discretionary power and
authority to interpret and construe the provisions of the Plan and to make factual determinations
in deciding whether an applicant is entitled to benefits under the Plan. Without limiting the
foregoing: The Administrative Committee may interpret where necessary the provisions of the Plan.
The Administrative Committee shall determine the rights and status of Participants and

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other persons under the Plan, decide disputes arising under the Plan and make any
determinations and findings with respect to the benefits payable thereunder and the persons
entitled thereto as may be required for the purposes of the Plan, including, but not limited to,
the amount of an Employee’s Credited Compensation during any relevant period, the eligibility for
membership of an Employee, and a Participant’s interest in the Trust Fund. In addition, the
Administrative Committee shall remedy possible ambiguities, inequities or inconsistencies in the
Plan and shall correct deficiencies and supply omissions therein. Subject to the provisions of
Section 8.4 and Article IX, such determinations and findings shall be final and conclusive, to the
extent permitted by law, as to all persons for all purposes of the Plan. The Administrative
Committee shall instruct the Trustee as to the benefits to be paid hereunder and shall furnish the
Trustee with any further information reasonably required by it for the purpose of the distribution
of such benefits.

     8.3 Expenses and Duties. Members of the Administrative Committee shall serve without
compensation for such services; provided, however, that Administrative Committee members shall be
reimbursed by the Trust for all expenses incurred in connection with their performance of
Administrative Committee duties, unless the Company elects to reimburse the expenses. The
Administrative Committee shall have such functions and duties as are specifically conferred upon
it by the Plan or the Trust Agreement or as may be delegated to it pursuant to its statement of
Powers and Responsibilities approved by the Board of Directors. Members of the Administrative
Committee shall not be disqualified from acting because of any interest, benefit or advantage,
inasmuch as Administrative Committee members may be Participants, Employees or directors of an
Employer, but no Administrative Committee member shall vote or act in connection with the
Administrative Committee’s action relating solely to himself. Except as may be required by law,
no bond or other security need be required of any Administrative Committee member in such capacity
in any jurisdiction.

     8.4 Revocability of Committee Action. Any action taken by the Administrative
Committee with respect to the rights or benefits under the Plan of any Participant or Beneficiary
shall be revocable by such Administrative Committee as to payments, distributions or deliveries
not theretofore made hereunder pursuant to such action. Appropriate adjustments may be made in
future payments or distributions to a Participant or Beneficiary to offset any excess payment or
underpayment theretofore made hereunder to such Participant or Beneficiary.

     8.5 The Trust Fund. The Trust Fund shall be held by the Trustee for the exclusive
benefit of the Participants and their Beneficiaries, and the Trust Fund shall be invested by the
Trustee upon such terms and in such property as is provided in the Plan and in the Trust
Agreement. The Trustee will, from time to time, make payments, distributions and deliveries from
the Trust Fund as provided in the Plan. The Trustee in its relation to the Plan shall be entitled
to all of the rights, privileges, immunities and benefits conferred upon it and shall be subject
to all of the duties imposed upon it under the Trust Agreement. The Trust Agreement is hereby
incorporated in the Plan by reference, and each Employer, by adopting the Plan, authorizes the
Company to execute the Trust Agreement (including any amendment or supplement thereof) in its
behalf with respect to the Plan.

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     8.6 No Guarantee Against Loss. No person or entity in any manner guarantees the
Trust Fund or any part thereof against loss or depreciation. All persons having any interest in
the Trust Fund shall look solely to such Trust Fund for payment with respect to such interest.

     8.7 Payment of Benefits. All payments of benefits provided for by the Plan (less any
deductions provided for by the Plan) shall be made solely out of the Trust Fund in accordance with
instructions given to the Trustee by the Administrative Committee pursuant to the terms of the
Plan, and no person or entity shall otherwise be liable for any benefits payable under the Plan.

     8.8 Investment Committee. To the extent provided in the Trust Agreement that certain
functions pertaining to the investment of the assets of the Trust Fund that under the Plan are
functions of the Administrative Committee are allocated to an “Investment Committee” (as defined
in the Trust Agreement), those provisions of the Plan corresponding to those provisions of the
Trust Agreement pertaining to such Investment Committee shall be deemed to refer to the Retirement
Plan Investment Committee established by the Company and all provisions of the Plan generally
applicable to the Administrative Committee (such as and including, without limitation, Sections
8.2, 8.3, and Article X) shall to such extent apply to such Retirement Plan Investment Committee.

     8.9 Funding Policy. The Retirement Plan Investment Committee shall carry out a
funding policy and method consistent with the objectives of the Plan and the requirements of
applicable law, as approved by the Retirement Plans Review Committee of the Board of Directors.

ARTICLE IX

CLAIMS PROCEDURES

     9.1 Method of Filing Claim. Any Participant or Beneficiary who thinks that he is
entitled to receive a benefit under the Plan shall file an application with the Administrative
Committee in accordance with Section 7.1.

     9.2 Notification by Committee. Unless such claim is allowed in total by the
Administrative Committee, it shall, within a reasonable period of time but not later than 90 days
after such claim was filed (plus an additional period of 90 days if required for processing,
provided that notice of the extension of time is given to the claimant within the first 90 day
period), cause written notice to be mailed to the claimant of the total or partial denial of such
claim. Such notice shall be written in a manner calculated to be understood by the claimant and
shall include (1) the specific reasons for the denial of the claim, (2) specific reference to the
provisions of the Plan and/or Trust Agreement upon which the denial of the claim was based, (3) a
description of any additional material or information necessary for the claimant to perfect the
claim and an explanation of why such material or information is necessary, and (4) an explanation
of the review procedure specified in Section 9.3 and the time limits applicable to such procedure,
including a statement of the claimant’s right to bring a civil action under Section 502(a) of
ERISA following an adverse benefit determination on review. If a claimant

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does not receive any such notice from the Committee within 90 days or 180 days, as the case
may be, after the date of filing the claim, his claim shall be deemed to have been denied.

     9.3 Review Procedure. Within six months after the denial of his claim, the claimant
or his duly authorized representative may appeal such denial by filing with any officer of the
Company his written request for a review of his claim. The claimant or his duly authorized
representative may: (1) submit written comments, documents, records, and other information
relating to the claim for benefits, and (2) review pertinent documents, including request in the
manner and form prescribed by the Plan Administrator and be provided free of charge, reasonable
access to, and copies of, all documents, records, and other information relevant to the claimant’s
claim for benefits. If such an appeal is so filed within such six-month period, the Company or a
person appointed by the Company, which person shall be designated a Named Fiduciary, shall conduct
a full and fair review of such claim (which review shall take into account all comments,
documents, records, and other information submitted by the claimant relating to the claim, without
regard to whether such information was submitted or considered in the initial benefit
determination) and mail or deliver to the claimant a written decision on the matter based on the
facts and the pertinent provisions of the Plan and/or Trust Agreement within 60 days after the
receipt of the request for review (unless special circumstances require an extension of up to 60
additional days, in which case written notice of such extension shall be given to the claimant
prior to the commencement of such extension). Such decision shall be written in a manner
calculated to be understood by the claimant, shall state the specific reasons for the decision and
the specific Plan and/or Trust Agreement provisions on which the decision was based, and state
that the claimant is entitled to receive, upon request in the manner prescribed by the Committee
and free of charge, reasonable access to, and copies of, all documents, records, and other
information relevant to the claimant’s claim for benefits, state the claimant’s right to bring an
action under Section 502(a) of ERISA, and shall, to the extent permitted by law, be final and
binding on all interested persons. During such full review, the claimant shall be given the
opportunity to review documents that are pertinent to his claim and to submit issues and comments
in writing and, if he requests a hearing, to present his case in person or by an authorized
representative at a hearing scheduled by the Company (or its designee). If the decision on review
is not furnished within such 60-day or 120-day period, as the case may be, the claim shall be
deemed to have been denied on review.

ARTICLE X

FIDUCIARY RESPONSIBILITY

     10.1 Immunities. Except as otherwise provided by applicable law, (1) no Fiduciary
shall be liable for any action taken or not taken with respect to the Plan except for his own
gross negligence or willful misconduct; (2) no Fiduciary shall be personally liable upon any
contract, agreement or other instrument made or executed by him or in his behalf in the
administration of the Plan; (3) no Fiduciary shall be liable for the neglect, omission or
wrongdoing of another Fiduciary nor shall any Fiduciary be required to make inquiry into the
propriety of any action by another Fiduciary; (4) each Employer, its directors, officers, and
Employees, the Administrative Committee, and its members and any other person to whom the Company
delegates (or the Plan or Trust Agreement assigns) any duty with respect to the Plan, may rely and
shall be fully protected in acting upon the advice of counsel, who may be counsel for a

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Controlled Group Member, upon the records of a Controlled Group Member, upon the opinion,
valuation, report, or determination of the auditor of the Company, or upon any certificate,
statement or other representation made by an Employee, a Participant, a Beneficiary or the Trustee
concerning any fact required to be determined under any of the provisions of the Plan; (5) if any
responsibility of a Fiduciary is allocated to any other person, then such Fiduciary shall not be
responsible for any act or omission of such person in carrying out such responsibility; and (6) no
Fiduciary shall have the duty to discharge any duty, function or responsibility which is assigned
by the terms of the Plan or Trust Agreement or delegated pursuant to the provisions of Section
10.2 to another person.

     10.2 Allocation and Delegation of Fiduciary Responsibilities.

     (1) The Fiduciaries shall have only such powers, duties, responsibilities and
authorities as are specified in the Plan or Trust Agreement or as shall be delegated to them
pursuant to a statement of Powers and Responsibilities or other charter approved by the
Board of Directors. The Company shall be the Plan Administrator, and shall have the
authority to appoint and remove the Trustee. The Company shall also have the responsibility
and authority to monitor the performance of the Trustee. The Administrative Committee shall
have the responsibility to carry out the various duties assigned or allocated to it
hereunder or under a statement of Powers and Responsibilities or other charter approved by
the Board of Directors, including specifically the responsibility and authority to interpret
and administer the Plan, subject to the provisions hereof.

     (2) The Company and the Administrative Committee may each designate any person (in
addition to those specifically designated in the Plan) as a Fiduciary or Named Fiduciary and
may delegate to any such person any one or more powers, functions, duties and/or
responsibilities with respect to the Plan, provided that no such power, function, duty or
responsibility which is assigned to a Fiduciary (other than the delegator) pursuant to some
other Section of the Plan or Trust Agreement shall be so delegated without the written
consent of such Fiduciary.

     (3) Any delegation pursuant to Subsection (2) of this Section, (a) shall be signed by
the delegator, be delivered to and accepted in writing by the delegatee and be delivered to
the Administrative Committee, (b) shall contain such provisions and conditions relating to
such delegation as the delegator deems appropriate, (c) shall specifically designate the
powers, functions, duties and responsibilities therein delegated, (d) may be amended from
time to time by written agreement signed by the delegator and the delegatee and delivered to
the Administrative Committee and (e) may be revoked (in whole or in part) at any time by
written notice from the delegator delivered to the delegatee and the Administrative
Committee or from the delegatee delivered to the delegator and the Administrative Committee.

     10.3 Indemnification. In addition to whatever rights of indemnification the members
and former members of the Administrative Committee may be entitled under the articles of
incorporation or regulations or by-laws of the Company and any Employer, under any provisions of
law, or under any other agreement, the Company and each other Employer shall,

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to the maximum extent permitted by law and except to the extent covered by insurance, satisfy
any liability actually and reasonably incurred by any such person or persons, including expenses,
attorneys’ fees, judgments, fines, and amounts paid in settlement (other than amounts paid in
settlement not approved by the Company), in connection with any threatened, pending or completed
action, suit, or proceeding which is related to the exercising or failure to exercise by such
person or persons of any of the powers, authority, responsibilities, or discretion as provided
under the Plan, or reasonably believed by such person or persons to be provided hereunder, and any
action taken by such person or persons in connection therewith, unless the same is judicially
determined to be the result of such person’s or persons’ gross negligence or willful misconduct.

ARTICLE XI

MISCELLANEOUS

     11.1 Spendthrift Provisions. To the extent permitted by law and except as otherwise
provided in the Plan, no right or interest of any kind of a Participant or Beneficiary hereunder
shall be transferable or assignable by the Participant or Beneficiary, nor shall any such right or
interest be subject to alienation, anticipation, encumbrance, garnishment, attachment, execution
or levy of any kind, voluntary or involuntary. The foregoing provisions of this Section shall
not, however, preclude (i) the enforcement of a Federal tax levy made pursuant to Section 6331 of
the Code, (ii) the collection by the United States on a judgment resulting from an unpaid tax
assessment, (iii) offsets of a Participant’s or Beneficiary’s benefits by any overpayments made to
the Participant or Beneficiary by the Plan, or (iv) effective for judgments, orders, and decrees
issued, and settlement agreements entered into, on or after August 5, 1997, offsets of a
Participant’s benefits by any amount the Participant is ordered or required to pay the Plan as
provided in Section 206(d)(4) of ERISA.

     11.2 Facility of Payment. In the event the Administrative Committee finds that any
Participant or Beneficiary to whom a benefit is payable under the Plan is (at the time such
benefit is payable) unable to care for his affairs because of physical, mental or legal
incompetence, the Administrative Committee, in its sole discretion, may cause any payment due to
him hereunder, for which prior claim has not been made by a duly qualified guardian or other legal
representative, to be paid to the person or institution deemed by the Administrative Committee to
be maintaining or responsible for the maintenance of such Participant or Beneficiary; and any such
payment shall be deemed a payment for the account of such Participant or Beneficiary and shall
constitute a complete discharge of any liability therefor under the Plan.

     11.3 No Enlargement of Employment Rights. A Participant by accepting benefits under
the Plan does not thereby agree to continue for any period in the employ of his Employer, and the
Employers by adopting the Plan, making contributions or taking any action with respect to the Plan
do not obligate themselves to continue the employment of any Participant for any period.

     11.4 Merger or Transfer of Assets. Notwithstanding any other provision of the Plan,
in the case of any merger or consolidation with, or the transfer of assets or liabilities to, any

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other plan, in no event shall any Participant (if the other plan then terminated) receive a
benefit immediately after the merger, consolidation or transfer which is less than the benefit he
would have been entitled to receive immediately before the merger, consolidation, or transfer (if
the Plan had then terminated).

     11.5 Severability Provision. If any provision of the Plan or the application thereof
to any circumstance or person is invalid, the remainder of the Plan and the application of such
provision to other circumstances or persons shall not be affected thereby.

     11.6 Qualified Domestic Relations Orders. The Administrative Committee shall
establish reasonable procedures to determine the status of domestic relations orders and to
administer distributions under domestic relations orders which are deemed to be qualified orders.
Such procedures shall be in writing and shall comply with the provisions of Section 414(p) of the
Code and regulations issued thereunder. Notwithstanding any other provision of the Plan, the
Administrative Committee shall direct the Trustee to make distribution to or for the benefit of an
alternate payee under such a qualified order in a single lump sum payment of the alternate payee’s
entire interest under the Plan, provided that: (a) the qualified order provides for such
distribution, and (b) if the amount to be paid to or for the benefit of the alternate payee
exceeds $1,000, the alternate payee has consented in writing to such distribution.
Notwithstanding any other provision of the Plan, except to the extent otherwise provided in a
qualified order: Each alternate payee under a qualified order shall have established for him a
separate account in the manner specified in Section 6.2 to reflect his interest under the Plan
pursuant to this Section (hereinafter referred to as the “Alternate Payee Account”). By written
direction to the Administrative Committee (according to such rules and procedures as it shall
prescribe from time to time), the alternate payee may direct the investment of amounts allocated
to his Alternate Payee Account to the extent and in the same manner that the Participant through
whom the alternate payee secured his interest under the Plan would be eligible to direct the
investment of his Account. The Alternate Payee Account shall be further subdivided and separate
records maintained showing the portion invested in each Investment Fund. The Alternate Payee
Account shall also maintain separate records the amount of contributions thereto, payments and
withdrawals therefrom and the amount of income, expenses, gains and losses attributable thereto.
The interest of each alternate payee hereunder at any time shall consist of the amount standing to
his Alternate Payee Account (as determined in Section 6.7 above) as of the last preceding
Valuation Date plus credits and minus debits to such alternate Payee Account since that Date.
Notwithstanding any other provision of the Plan, if a qualified order so provides, distribution
may be made to an alternate payee pursuant to the qualified order, regardless of whether the
Participant is entitled to receive a distribution under the Plan.

     11.7 Expenses. The expenses of administration of the Plan and the Trust Fund shall
be paid from the Trust Fund in accordance with policies and/or directions of the Administrative
Committee as in effect from time to time, except to the extent the Employer(s) elect to make
payment. Notwithstanding the foregoing provisions of this Section 11.7, administrative expenses
relating to determining the status of a domestic relations order (as a qualified domestic
relations order) that are applicable to a particular Participant shall be paid from the Accounts
of the Participant (to the extent sufficient therefore) in the following order: (i) that portion
of his Member Contributions Account which is attributable to his contributions made on other than
a

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CODA basis, (ii) that portion of his Transfer Contributions Account which is attributable to
transfers from another plan qualified under Code Section 401(a), (iii) his Rollover Contributions
Account, (iv) his PAYSOP Contributions Account, (v) his Employer Contributions Account, and (vi)
the remainder of his Member Contributions Account.

     11.8 Extension of Coverage. Coverage under the Plan may be extended to any plant,
location, operating unit, or classification of employees of an Employer that is not already
covered under the Plan pursuant only to an amendment to Schedule I of the Plan in accordance with
the procedures set forth for Plan amendments in Section 13.2. Such amendment shall specify the
effective date of such extension of coverage. Any new plant, location, or operating unit which is
established by an Employer shall not become covered solely by virtue of the fact that it is part
of such Employer or part of a plant, location, or operating unit which at the time is covered; any
such new plant, location, or operating unit shall become covered only if Plan coverage is
expressly extended thereto in accordance with the procedures specified in the foregoing provisions
of this Section.

     11.9 Profit-Sharing Plan. The Plan is intended to be and shall be a profit-sharing
plan for all purposes of the Code, ERISA, and any other relevant purpose, notwithstanding that
contributions may or may not be made without regard to current or accumulated profits of the
employer and without regard to whether the contributions may or may not be discretionary.

     11.10 Veterans’ Rights. Effective December 12, 1994, notwithstanding any provision
of the Plan to the contrary, contributions, benefits and service credit with respect to qualified
military service shall be provided in accordance with Section 414(u) of the Code.

     11.11 Leased Employees. Except with respect to any relationship determined under an
Internal Revenue Service ruling issued before August 20, 1996 pursuant to Section 414(n)(2)(C) of
the Code (as in effect on August 19, 1996) not to involve a leased employee, the following shall
apply: Any leased employee, other than an excludable leased employee, shall be treated as an
employee of the Company or any other Controlled Group Member for purposes of the Plan with respect
to the provisions of Sections 401(a)(3), (4), (7) and (16), and 408(k), 410, 411, 415 and 416 of
the Code; provided, however, that no leased employee shall accrue a benefit hereunder based on
service as a leased employee. A “leased employee” means any person who performs services for the
Company or Controlled Group Member (the “recipient”) (other than an employee of the recipient)
pursuant to an agreement between the recipient and any other person (the “leasing organization”)
on a substantially full-time basis for a period of at least one year, and such services are
performed under primary direction or control by the recipient. An “excludable leased employee”
means any leased employee of the recipient who is covered by a money purchase pension plan
maintained by the leasing organization which provides for (i) a nonintegrated employer
contribution on behalf of each participant in the plan equal to at least ten percent of
compensation, (ii) full and immediate vesting, and (iii) immediate participation by employees of
the leasing organization (other than employees who perform substantially all of their services for
the leasing organization or whose compensation from the leasing organization in each plan year
during the four-year period ending with the plan year is less than $1,000); provided, however,
that leased employees do not constitute more than 20 percent of the recipient’s nonhighly
compensated work force. For purposes of this Section,

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contributions or benefits provided to a leased employee by the leasing organization that are
attributable to services performed for the recipient shall be treated as provided by the
recipient.

     11.12 CRA Model Amendment. For limitation years beginning on and after January 1,
2001, for purposes of applying the limitations described in Section 4.5, compensation paid or made
available during such limitation years shall include elective amounts that are not includible in
the gross income of the Employee by reason of Section 132(f)(4) of the Code. This provision shall
also apply for Plan Years beginning on and after January 1, 2001 to the definition of remuneration
in Section 14.1(2) and to any definition of compensation under the Plan that refers to Section
415(c)(3) of the Code.

ARTICLE XII

OTHER EMPLOYERS

     12.1 Adoption by Other Employers. Any corporation or other business organization
other than the Company may, with the consent of either the Board of Directors or a duly authorized
officer or officers of the Company, adopt the Plan and thereby become an Employer hereunder by
executing a duly authorized instrument and filing a copy thereof with the Company; provided,
however, that Brush Wellman Inc. shall be deemed to have adopted the Plan and Brush Engineered
Materials Inc. shall be deemed to have consented thereto, without further action on the part of
either. Such adoption may be subject to such terms and conditions as the Board of Directors or
duly authorized officer or officers of the Company requires or approves.

     12.2 Contribution of Employers. The contribution of the Employers under the Plan may
be paid by the Company on behalf of itself and other Employers. Each Employer shall pay for that
portion of the contribution of the Employers under the Plan for each year that is allocated to
Employees or former Employees of such Employer, but if such costs as so allocated would (in the
opinion of the Company) not be fully and currently deductible for any Plan Year, the allocation
among the Employers of the costs of the Plan, including the contribution of the Employers, may be
made in such manner as is agreed to by the Employers and as will permit to the extent possible the
deduction (for purposes of federal taxes on income) by each such Employer of its payments toward
such costs.

     12.3 Withdrawal of Employer. Any Employer (other than the Company) which adopts the
Plan may elect separately to withdraw from the Plan, and such withdrawal shall constitute a
termination of the Plan as to it. Amendments to the Plan, however, may be made only by the
Company. Any such withdrawal shall be expressed in an instrument executed by the withdrawing
Employer on the order of its board of directors and filed with the Company and the Trustee. In
the event of such a withdrawal of an Employer or in the event the Plan is terminated as to an
Employer or a group of Employees (but not all the Employers) pursuant to Section 13.1, such
Employer (herein called “former Employer”) shall cease to be an Employer and the interests of
Participants who are or were Employees of such former Employer shall be distributed in accordance
with and subject to Section 13.3 at that time as if each such Participant had retired pursuant to
Section 7.2 hereof at the time of such withdrawal or termination.

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ARTICLE XIII

AMENDMENT OR TERMINATION

     13.1 Right to Amend or Terminate. The Company has reserved, and does hereby reserve,
the right at any time, without the consent of any other Employer or of the Participants,
Beneficiaries or any other person, (1) to terminate the Plan, in whole or in part or as to any or
all of the Employers or as to any designated group of Employees, Participants and their
Beneficiaries, or (2) to amend the Plan, in whole or in part.

     13.2 Procedure for Termination or Amendment. Any termination of the Plan pursuant to
Section 13.1 shall be expressed in an instrument executed by the Company on the order of its Board
of Directors or on the order of the Compensation Committee of its Board of Directors. Any
amendment of the Plan pursuant to Section 13.1 shall be expressed by an instrument executed by the
Company on the order of its Board of Directors or on the order of the Compensation Committee of
its Board of Directors or on behalf of the Company by any officer or officers of the Company
authorized by resolution of the Board of Directors to amend the Plan.

     13.3 Distribution Upon Termination. If the Plan shall be terminated by the Company,
subject to the last sentence of Section 13.1 and the requirements of Section 401(k) and Section
409 of the Code regarding distributions upon plan termination, Employer, PAYSOP, Transfer,
Rollover and Member Contributions shall cease, and the Trust Fund shall be distributed as if each
Participant of the Plan had then terminated his employment pursuant to Section 7.2 hereof at the
time of such termination.

          Notwithstanding the provisions of the preceding paragraph, no distribution shall be made to a
Participant of any amounts attributable to elective deferrals under Section 401(k) of the Code on
account of Plan termination (other than a distribution made in accordance with Article VII or
required in accordance with Code Section 401(a)(9)) unless (i) neither his Employer nor a
Controlled Group Member establishes or maintains another defined contribution plan (other than an
employee stock ownership plan as defined in Code Section 4975(e)(7), a tax credit employee stock
ownership plan as defined in Code Section 409, a simplified employee pension plan as defined in
Code Section 408(k), a SIMPLE IRA plan as defined in Code Section 408(p), a plan or contract that
meets the requirements of Code Section 403(b), or a plan that is described in Code Section 457(b)
or (f)) either at the time the Plan is terminated or at any time during the period ending 12 months
after distribution of all assets from the Plan; provided, however, that this provision shall not
apply if fewer than 2% of the Eligible Employees under the Plan were eligible to participate at any
time in such other defined contribution plan during the 24 month period beginning 12 months before
the Plan termination, and (ii) the distribution the Participant receives is a “lump sum
distribution” as defined in Code Section 402(e)(4), without regard to clauses (I), (II), (III), and
(IV) of subparagraph (D)(i) thereof.

     13.4 Provision Pursuant to Section 411(d)(3) of the Code. Notwithstanding any other
provision of the Plan upon the termination or partial termination of the Plan, or upon complete
discontinuance of contributions under the Plan, the rights of all Employees to benefits accrued

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to the date of such termination or partial termination or discontinuance, to the extent then
funded, or the amounts credited to the Employees’ Accounts shall be non-forfeitable.

ARTICLE XIV

TOP-HEAVY PLAN REQUIREMENTS

     14.1 Definitions. For the purposes of this Article XIV, the following terms, when
used with initial capital letters shall have the following respective meanings:

     (1) Aggregation Group. Permissive Aggregation Group or Required Aggregation
Group, as the context shall require.

     (2) Compensation. All remuneration of an Employee from the Employers. All
remuneration shall exclude any amounts in excess of the limitation set forth in Sections
1.1(12)(b) of the Plan, with “all remuneration” substituted for “Credited Compensation” in
applying the limitation.

     (3) Defined Benefit Plan. A qualified plan as defined in Section 414(j) of the
Code.

     (4) Defined Contribution Plan. A qualified plan as defined in Section 414(i)
of the Code.

     (5) Determination Date. For any Plan Year, the last day of the immediately
preceding Plan Year.

     (6) Key Employee. An Employee or former Employee (including any deceased
Employee) who at any time during the Plan Year that includes the Determination Date was (a)
an officer of an Employer (as the term “officer” is limited in Section 416(i)(1)(A) of the
Code), having an annual Compensation greater than $130,000 (as adjusted under Section
416(i)(1) of the Code for Plan Years beginning after December 31, 2002), (b) a 5-percent
owner (as such term is defined in Section 416(i)(1)(B)(i) of the Code), or (c) a 1-percent
owner (as such term is defined in Section 416(i)(1)(B)(ii) of the Code) having an annual
Compensation of more than $150,000.00. For this purpose, annual compensation means
compensation within the meaning of Section 415(c)(3) of the Code. The rules of Subsections
(b), (c), and (m) of Section 414 of the Code do not apply for purposes of determining who is
a 5-percent owner or who is a 1-percent owner. The determination of who is a key employee
will be made in accordance with Section 416(i)(1) of the Code and the applicable regulations
and other guidance of general applicability issued thereunder. The term “Key Employee”
shall also include such Employee’s Beneficiary in the event of his death.

     (7) Non-Key Employee. An Employee or former Employee who is not a Key
Employee. Such term shall also include his Beneficiary in the event of his death.

     (8) Permissive Aggregation Group. The group of qualified plans of the Employer
consisting of:

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          (a) the plans in the Required Aggregation Group; plus

          (b) one or more plans designated from time to time by the Administrative Committee that
are not part of the Required Aggregation Group but that satisfy the requirements of Sections
401(a)(4) and 410 of the Code when considered with the Required Aggregation Group.

     (9) Required Aggregation Group. The group of qualified plans of the Employer
consisting of,

          (a) each plan in which a Key Employee participates; plus

          (b) each plan which enables a plan in which a Key Employee participates to meet the
requirements of Section 401(a)(4) or 410 of the Code.

     (10) Top-Heavy Account Balance. A Participant’s (including a Participant who
has received a total distribution from this Plan) or a Beneficiary’s aggregate balance
standing to his Account as of the valuation date coinciding with or immediately preceding
the Determination Date; provided, however, that (a) such balance shall include the aggregate
distributions made during the one-year period ending on the Determination Date and (b) if an
Employee or former Employee has not performed any service for any Employer maintaining the
Plan at any time during the one-year period ending on the Determination Date, his Account
(and/or the Account of his Beneficiary) shall not be taken into account. 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 severance from employment,
death, or disability, this provision shall be applied by substituting “five-year period” for
“one-year period.”

     (11) Top-Heavy Group. An Aggregation Group if, as of a Determination Date, the
aggregate present value of accrued benefits for Key Employees in all plans in the
Aggregation Group (whether Defined Benefit Plans or Defined Contribution Plans) is more than
sixty percent (60%) of the aggregate present value of accrued benefits for all employees in
such plans.

     (12) Top-Heavy Plan. See Section 14.2.

     14.2 Determination of Top-Heavy Status.

     (1) Except as provided by Subsection (2) of this Section, the Plan shall be a Top-Heavy
Plan for a particular Plan Year if, as of a Determination Date:

          (a) in the case of a defined contribution plan, the aggregate of Top-Heavy Account
Balances for Key Employees is more than sixty percent (60%) of the aggregate of all
Top-Heavy Account Balances;

          (b) in the case of a defined benefit plan, the present value of the cumulative accrued
benefits payable under the plan (within the meaning of Section

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416(g) of the Code and the regulations and rulings thereunder) to Key Employees exceeds
sixty percent (60%) of the present value of the cumulative accrued benefits under the plan
for all employees, with the present value of accrued benefits to be determined under the
accrual method uniformly used under all plans maintained by the Employer or, if no such
method exists, under the slowest accrual method permitted under the fractional accrual rate
of Section 411(b)(1)(c) of the Code, and with adjustments made for benefits that have been
distributed and of former Employees, as described in Section 14.1(10); or

          (c) if the Plan is included in a Required Aggregation Group which is a Top-Heavy Group.

          (2) If the Plan is included in a Permissive Aggregation Group which is not a Top-Heavy
Group, the Plan shall not be a Top-Heavy Plan notwithstanding the fact that the Plan would
otherwise be a Top-Heavy Plan under Subsection (1) of this Section 14.2.

     14.3 Top-Heavy Plan Requirements. Notwithstanding any other provisions of the Plan
to the contrary, if the Plan is a Top-Heavy Plan for any Plan Year, the Plan shall then satisfy
the following requirements for such Plan Year:

     (1) The minimum contribution requirement as set forth in Section 14.4.

     (2) The adjustment to maximum benefits and allocations as set forth in Section 14.5.

     14.4 Minimum Contribution Requirement. If the Plan is a Top-Heavy Plan for any Plan
Year:

     (1) Each Non-Key Employee who is eligible to share in any Employer Contribution for
such Plan Year and who had not separated from service by the end of the Plan Year shall be
entitled to receive an allocation of such contribution which is at least equal to three
percent (3%) of his Compensation for such Plan Year. Any minimum allocation to a Non-Key
Employee required by this paragraph shall be made without regard to the Non-Key Employee’s
number of hours of service, level of compensation, or whether the Non-Key Employee declined
to make elective or mandatory contributions.

     (2) The percentage minimum contribution requirement set forth in paragraph (1) above
with respect to a Plan Year shall not exceed the percentage at which employer contributions
(including salary deferrals) are made (or required to be made) under the Plan for such Plan
Year for the Key Employee for whom such percentage is the highest for such Year. The
determination referred to in the immediately preceding sentence shall be determined for each
Key Employee by dividing the sum of the Employer Contributions and the Basic and
Supplemental Contributions made under the cash or deferred arrangement described in Section
3.3 that are allocated to such Key Employee in that Plan Year by such Key Employee’s
Compensation for such Plan Year.

     (3) Employer matching contributions shall be taken into account for purposes of
satisfying the minimum contribution requirements of Section 416(c)(2) of the Code and the
Plan. The preceding sentence shall apply with respect to matching contributions

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

     (4) The percentage minimum contribution requirement set forth in Subsection (1) above
may also be reduced in accordance with Section 14.5(2).

     (5) For the purpose of Subsection (2) above, contributions taken into account shall
include like contributions under all other Defined Contribution Plans in the Required
Aggregation Group, excluding any such plan in the Required Aggregation Group if that plan
enables a Defined Benefit Plan in such Required Aggregation Group to meet the requirements
of Section 401(a)(4) or Section 410 of the Code.

     14.5 Coordination With Other Plans.

     (1) In applying this Article XIV, an Employer and all Controlled Group Members shall be
treated as a single employer, and the qualified plans maintained by such single employer
shall be taken into account.

     (2) In the event that another Defined Contribution Plan or Defined Benefit Plan
maintained by the Employer provides contributions or benefits on behalf of Participants in
the Plan, such other plan(s) shall be taken into account in determining whether the Plan
satisfies Section 14.3. In the event the Plan is part of a Required Aggregation Group in
which a top-heavy Defined Benefit Plan is included, each Non-Key Employee in the Plan who is
also covered under the top-heavy Defined Benefit Plan shall receive the minimum top-heavy
benefit under the Defined Benefit Plan. In the event the Plan is part of a Required
Aggregation Group in which another top-heavy Defined Contribution Plan is included, each
Non-Key Employee in the Plan who is also covered under the other top-heavy Defined
Contribution Plan shall receive the minimum top-heavy benefit under the plan in which he was
last an active participant or if that rule is not determinative under the plan that was
first established.

     (3) Principles similar to those specifically applicable to this Plan under this
Article, and in general, as provided for in Section 416 of the Code and the regulations
thereunder, shall be applied to the other plans required to be taken into account under this
Article in determining whether this Plan and such other plans meet the requirements of such
Section 416 of the Code.

     14.6 Construction. The term “present value of accrued benefits” as used in this
Article shall in all appropriate cases include account balances of affected Employees.

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ARTICLE XV

SPECIAL PROVISIONS REGARDING

MERGER OF ELECTROFUSION CORPORATION

401(k) TAX DEFERRED SAVINGS PLAN INTO THE PLAN

     15.1 General. Effective as of the “Merger Date” (as hereinafter defined), the
Electrofusion Corporation 401(k) Tax Deferred Savings Plan (the “Electrofusion Plan”) shall be
merged into the Plan. This Article provides special provisions regarding such merger, which
provisions shall apply notwithstanding any other provisions of the Plan and shall override any
conflicting Plan provisions.

     15.2 Merger Date. “Merger Date” shall mean the date determined by the Administrative
Committee, which date shall not be earlier than the later of December 31, 1991 or the date
following December 31, 1991 on which the Internal Revenue Service has issued a favorable
determination with respect to the tax qualification of the Electrofusion Plan.

     15.3 Transfer of Accrued Benefits. Effective as of the Merger Date, all
(then-existing) Electrofusion Plan accounts (accrued benefits) shall be transferred from the
Electrofusion Plan to the Plan. Upon receipt of the assets of the Electrofusion Plan from the
trustee of the Electrofusion Plan, the Trustee shall deposit and invest the assets in the
Investment Funds in accordance with Article VI and rules and procedures regarding the same
prescribed by the Administrative Committee. As of the date of receipt of such assets, a separate
Transfer Contributions Account (and sub-accounts if and as appropriate) shall be established in
the name of each Electrofusion Plan participant and beneficiary (as of the Merger Date) and shall
become his Transfer Contributions Account (and sub-accounts if and as appropriate) for purposes of
the Plan. Each such Account shall be credited with an amount equal to the balance of such
participant’s or beneficiary’s account under the Electrofusion Plan immediately prior to the
transfer. Upon such transfer, outstanding loans, if any, under the Electrofusion Plan shall
become loans under the Plan and shall continue to be repaid and otherwise be governed under the
Plan by the terms of such loan as made under the Electrofusion Plan, except as otherwise provided
by rules and procedures established by the Administrative Committee. Under rules prescribed by
the Administrative Committee, any applications, elections, designations, and waivers under the
Electrofusion Plan that are applicable to accounts transferred from the Electrofusion Plan to the
Plan shall be applicable under the Plan.

     15.4 Withdrawals and Distributions.

     (1) Withdrawals from the Electrofusion Plan Transfer Contributions Account of a
Participant whose employment with the Controlled Group has not terminated in a manner
permitting distribution under the Plan shall be governed by the following:

          (a) Amounts the (in-service) withdrawal of which is restricted by Code Section 401(k)
shall be withdrawn only as provided in Section 7.7.

          (b) Amounts the (in-service) withdrawal of which is not restricted by Code Section
401(k) shall be withdrawn only as provided under the provisions of the

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Electrofusion Plan to the extent that such provisions of the Electrofusion Plan may not
be eliminated under Code Section 411(d)(6) and the regulations thereunder.

     (2) Distributions from the Electrofusion Plan Transfer Contributions Account of a
Participant whose employment with the Controlled Group has terminated in a manner permitting
distribution under the Plan shall be made as provided under the applicable provisions of
Article VII, or, to the extent that the Electrofusion Plan provides optional forms of
benefit other than those provided by the applicable provisions of Article VII, under the
provisions of the Electrofusion Plan to the extent that such provisions of the Electrofusion
Plan may not be eliminated under Code Section 411(d)(6) and the regulations thereunder.
Notwithstanding anything to the contrary in this Section, to the extent that annuity or
installment forms of distribution were being provided as of January 1, 2001, with respect to
the portion of the Participant’s benefit attributable to the Electrofusion Plan the
following shall apply: (a) such forms of distribution shall not be available to a
Participant or Death Beneficiary (including a surviving spouse) with respect to any
distribution with an annuity starting date that is later than the earlier of (i) the 90th
day after the date a summary that reflects this provision of the January 1, 2001 restatement
and that satisfies the requirements of Department of Labor regulation section 2520.104b-3
has been furnished in accordance with ERISA or (ii) January 1, 2003 and (b) distribution
shall be made as provided under the applicable provisions of Article VII.

     (3) Amounts required to be distributed from Electrofusion Plan Transfer Contributions
Accounts by Code Section 401(a)(9) shall be distributed as provided in Section 7.8, or, to
the extent that the Electrofusion Plan provides optional forms of benefit other than those
provided by Section 7.8, under the provisions of the Electrofusion Plan to the extent that
such provisions of the Electrofusion Plan may not be eliminated under Code Section 411(d)(6)
and the regulations thereunder.

     (4) References in this Section to the Electrofusion Plan shall be deemed to refer to
the Electrofusion Plan as in effect immediately before the Merger Date.

     15.5 Continuation of Electrofusion Plan. The Plan shall be deemed to be a
continuation by merger into the Plan of the Electrofusion Plan.

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ARTICLE XVI

SPECIAL PROVISIONS REGARDING

MERGER OF WILLIAMS ADVANCED MATERIALS INC.

SAVINGS AND INVESTMENT PLAN INTO THE PLAN

     16.1 General. Effective as of the “Merger Date” as defined in Section 16.2, the
Williams Advanced Materials Inc. Savings and Investment Plan (the “WAM Plan”) shall be merged into
the Plan. This Article provides special provisions regarding such merger, which provisions shall
apply notwithstanding any other provisions of the Plan and shall override any conflicting Plan
provisions.

     16.2 Merger Date. “Merger Date” shall mean the close of business on December 31,
1994.

     16.3 Transfer of Accrued Benefits. Effective as of the Merger Date, all
(then-existing) WAM Plan accounts (accrued benefits) shall be transferred from the WAM Plan to the
Plan. Upon receipt of the assets of the WAM Plan from the trustee of the WAM Plan, the Trustee
shall deposit and invest the assets in the Investment Funds in accordance with Article VI and
rules and procedures regarding the same prescribed by the Administrative Committee. As of the
date of receipt of such assets, separate Accounts (and sub-accounts as appropriate) under the Plan
shall be established in the name of each WAM Plan participant and beneficiary (as of the Merger
Date) of the corresponding type under the WAM Plan as certified to the Administrative Committee by
the plan administrator of the WAM Plan, which shall become his Accounts (and sub-accounts as
appropriate) for purposes of the Plan. Each such Account shall be credited with an amount equal
to the balance of such participant’s or beneficiary’s corresponding account under the WAM Plan
immediately prior to the transfer. Upon such transfer, outstanding loans, if any, under the WAM
Plan shall become loans under the Plan and shall continue to be repaid and otherwise be governed
under the Plan by the terms of such loan as made under the WAM Plan, except as otherwise provided
by rules and procedures established by the Administrative Committee. Under rules prescribed by
the Administrative Committee, any applications, elections, designations, and waivers under the WAM
Plan that are applicable to accounts transferred from the WAM Plan to the Plan shall be applicable
under the Plan.

     16.4 Investments, Withdrawals, and Distributions.

     (1) The Administrative Committee may make appropriate special provisions for the
continued holding and designation of life insurance contracts acquired under the WAM Plan
prior to July 1, 1989 and the payment of premiums thereon. Not more than 49.99% of the
aggregate amount of employer contributions made on behalf of any former participant of the
WAM Plan may be invested in ordinary life insurance contracts on the life of such
participant. Not more than 24.99% of the aggregate amount of employer contributions on
behalf of any former participant of the WAM Plan may be invested in term life insurance
contracts on the life of such former participant. With respect to ordinary and term life
insurance contracts on the life of a former participant of the WAM Plan, the sum of the
annual term life insurance premium plus one-half of the ordinary life

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insurance premium may not exceed 24.99% of the employer contribution made on behalf of
such former participant of the WAM Plan for the Plan Year in question.

     (2) With respect to amounts attributable to contributions made pursuant to the WAM Plan
as in effect on or before June 30, 1989, the Participant need not be an Employee to make a
withdrawal pursuant to Section 7.5 of the Plan.

     (3) A Participant who had an account under the WAM Plan as of June 30, 1989 and who
elects to make a withdrawal from category (7) of Section 7.5 of the Plan shall, at such
Participant’s election, either (i) be subject to a suspension of his Member Contributions
for at least three months after the end of the month in which any such withdrawal was or is
made, or (ii) such withdrawal shall be limited to amounts held under the Plan for at least
two years unless such Participant has completed at least 60 months of participation in the
WAM Plan and the Plan combined.

     (4) A Participant who had an account under the WAM Plan as of December 31, 1994 may
elect to make a withdrawal under category (5) or (7) of Section 7.5 of the Plan without
regard to the restriction that such withdrawals not be made more frequently than once during
any consecutive nine-month period.

     16.5 Continuation of WAM Plan. The Plan shall be deemed to be a continuation by
merger into the Plan of the WAM Plan.

ARTICLE XVII

MERGER OF THIN FILM TECHNOLOGY, INC.

401(K) PROFIT SHARING PLAN

     17.1 Definitions. For purposes of this Article XVII, the following definitions shall
apply:

     (1) The “Transfer Date” shall mean April 3, 2006, or as soon as administratively
possible thereafter.

     (2) The “Transfer Participants” shall mean those individuals who have account balances
in the Transferor Plan immediately prior to the Transfer Date.

     (3) The “Transferor Plan” shall mean the Thin Film Technology, Inc. 401(k) Profit
Sharing Plan.

     17.2 Plan Transfer. The Transferor Plan shall be merged into and made a part of the
Plan effective as of April 3, 2006. Effective as of the Transfer Date, separate accounts of the
Transfer Participants shall be transferred to the Plan from the Transferor Plan. The trustee for
the Transferor Plan shall transfer the assets representing such separate accounts of the
Transferor Plan to the Trustee for the Plan on the Transfer Date or as soon as practicable
thereafter.

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     17.3 Nonforfeitable Interest. The account balance of each Transfer Participant
derived from the Transferor Plan shall at all times be and remain fully vested and nonforfeitable.

     17.4 Separate Accounts. The Trustee shall establish separate accounts as necessary
to reflect interests transferred to the Plan under this Article XVII.

     17.5 Participation by Transfer Participants. Each Transfer Participant shall become
a Participant (if not otherwise a Participant) by reason of the merger described in Section 17.2,
and the provisions of the Plan shall govern his interest under the Plan. Notwithstanding anything
in Section 3.11 to the contrary, Section 3.11 shall not apply to any Transfer Participant or other
individual who is an employee of Thin Film Technologies, Inc. on April 3, 2006 except upon
reemployment following the Transfer Date.

     17.6 Plan Loans. Any plan loan that is outstanding under the Transferor Plan on the
Transfer Date shall be transferred to the Plan and shall be administered and repaid in accordance
with its terms.

     17.7 Plan Elections. Any deferral election made under the Transferor Plan shall
apply under the Plan until a superseding election is made under the Plan. Any beneficiary
designation under the Transferor Plan shall not apply under the Plan. Each Transfer Participant
shall have a Death Beneficiary as determined in accordance with Section 1.1(13).

     17.8 Code Section 411(d)(6) Protected Benefits. Effective for distributions on or
after the Transfer Date, the only forms of distribution available to Transfer Participants shall
be the forms of distribution available under Article VII. Notwithstanding any other provision of
the Plan to the contrary, Participants shall be entitled to their accrued benefits under the
Transferor Plan pursuant to Section 411(d)(6) of the Code, and such benefits shall be continued on
and after the Transfer Date under the provisions of the Plan.

ARTICLE XVIII

SPECIAL PROVISIONS REGARDING

MERGER OF CERAC, INC.

RETIREMENT SAVINGS PLAN INTO THE PLAN

     18.1 General. Effective as of the “Merger Date” as defined in Section 18.2, the
CERAC, Inc. Retirement Savings Plan (the “CERAC Plan”) shall be merged into the Plan. This
Article provides special provisions regarding such merger, which provisions shall apply
notwithstanding any other provisions of the Plan and shall override any conflicting Plan
provisions.

     18.2 Merger Date. “Merger Date” shall mean the close of business on December 31,
2007.

     18.3 Transfer of Plan Assets. Effective as of the Merger Date, all CERAC Plan
accounts and related assets shall be transferred from the CERAC Plan to the Plan. Upon receipt of
the assets of the CERAC Plan from the trustee of the CERAC Plan, the Trustee shall deposit

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and invest the assets in the Investment Funds in accordance with Article VI and rules and
procedures regarding the same prescribed by the Administrative Committee. As of the date of
receipt of such assets, separate Accounts (and sub-accounts as appropriate) under the Plan shall
be established in the name of each CERAC Plan participant and beneficiary (as of the Merger Date)
of the corresponding type under the CERAC Plan, which shall become his Accounts (and sub-accounts
as appropriate) for purposes of the Plan. Each such Account shall be credited with an amount
equal to the balance of such participant’s or beneficiary’s corresponding account under the CERAC
Plan immediately prior to the transfer. Upon such transfer, outstanding loans, if any, under the
CERAC Plan shall become loans under the Plan and shall continue to be repaid and otherwise be
governed under the Plan by the terms of such loan as made under the CERAC Plan, except as
otherwise provided by rules and procedures established by the Administrative Committee. Under
rules prescribed by the Administrative Committee, any applications, elections, and designations
under the CERAC Plan that are applicable to accounts transferred from the CERAC Plan to the Plan
shall be applicable under the Plan.

     18.4 Vesting. Each Account of a participant who was employed by CERAC, inc. on the
Merger Date shall be fully vested and nonforfeitable on and after the Merger Date. All other
accounts shall remain subject to the vesting schedule in effect under the CERAC Plan immediately
prior to the Merger Date.

     18.5 Withdrawals. Upon attainment of age 59-1/2, a participant under the CERAC Plan
prior to the Merger Date may elect to withdraw from his Account amounts attributable to
nonelective employer and/or matching contributions made under the CERAC Plan with respect to
periods prior to the Merger Date. Any such withdrawal shall be made in accordance with rules
prescribed by the Administrative Committee for the purpose of preserving rights accorded by
Section 411(d)(6) of the Code.

     18.6 Continuation of CERAC Plan. The Plan shall be deemed to be a continuation by
merger into the Plan of the CERAC Plan.

ARTICLE XIX

EFFECTIVE DATE

     19.1 General. Except as otherwise provided in the Plan, this restatement is
effective beginning January 1, 2009. No provision of this restatement of the Plan corresponding
to any provision of the Plan that was amended prior to January 1, 2009 shall be effective prior to
the relevant effective date or event specified in the prior amendment to the Plan.

     19.2 Special Effective Dates. Each change made to satisfy the provisions of the
Economic Growth and Tax Relief Reconciliation Act of 2001 (“EGTRRA”), final regulations under
Section 401(k) and (m) of the Code, and any other change in the Code or ERISA, or regulations,
rulings or other published guidance issued under the Code or ERISA, is effective on the first day
of the first period (which may or may not be the first day of a Plan Year) with respect to which
such change became required because of such provision. Moreover, changes made to Section 4.5 for
purposes of complying with final regulations under Section 415 of the

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Code shall be effective January 1, 2008, the first day of the first limitation year beginning
on or after July 1, 2007.

     Executed at Cleveland, Ohio, on this 19th day of January, 2009.

	 	 	 	 	 
	 	BRUSH ENGINEERED MATERIALS INC.

 	 
	 	By:  	/s/ Michael C. Hasychak
 	 
	 	 	Name:  	Michael C. Hasychak 	 
	 	 	Title:  	Vice President, Secretary and Treasurer 	 
	 

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SCHEDULE I

COVERED PLANTS, LOCATIONS, OPERATING UNITS AND

CLASSIFICATIONS OF EMPLOYEES

This Schedule I lists all covered plants, locations, operating units, and classifications of
employees (to which coverage under the Plan has been extended), and the later of the effective date
of this Schedule I or the effective date of participation.

	 	 	 
		 	Later of the Effective Date of this
	Plant, Location, Operating Unit, or Classification	 	Schedule I or the Date of
	of Employees	 	Participation
	 
	 	 
	All Brush Wellman Inc. plants and
locations in Cleveland, Ohio or
Mayfield Heights, Ohio

	 	September 1, 1996
	 
	 	 
	All Brush International, Inc. plants
and locations in Cleveland, Ohio or
Mayfield Heights, Ohio

	 	January 1, 2001
	 
	 	 
	All BEM Services, Inc. locations

	 	January 1, 2001
	 
	 	 
	All Brush Ceramic Products Inc. plants
and locations in Tucson, Arizona

	 	January 1, 2001
	 
	 	 
	All Brush Resources Inc. plants and
locations in Delta, Utah

	 	January 1, 2001
	 
	 	 
	All Brush Resources Inc. mining
facilities in Juab County, Utah

	 	January 1, 2001
	 
	 	 
	All Brush Wellman Inc. plants and
locations in Elmore, Ohio

	 	September 1, 1996
	 
	 	 
	All Brush Wellman Inc. plants and
locations in Shoemakersville,
Pennsylvania

	 	September 1, 1996
	 
	 	 
	All Brush Wellman Inc. plants and
locations in Fremont, California

	 	September 1, 1996
	 
	 	 
	All Brush Wellman Inc. warehouses in
Fairfield, New Jersey

	 	September 1, 1996
	 
	 	 
	All Brush Wellman Inc. warehouses in
Warren, Michigan

	 	September 1, 1996
	 
	 	 
	All Brush Wellman Inc. warehouses in
Elmhurst, Illinois

	 	September 1, 1996
	 
	 	 
	All Zentrix Technologies Inc. plants
and locations in Newburyport,
Massachusetts

	 	January 1, 2001

-1-

 

	 	 	 
	 	 	Later of the Effective Date of this
	Plant, Location, Operating Unit, or  Classification	 	Schedule I or the Date of
	of Employees	 	Participation
	 
	 	 
	All Brush Wellman Inc. plants and
locations in Lorain, Ohio

	 	November 1, 1996
	 
	 	 
	All field sales employees of Brush
Wellman Inc. assigned to any of the
foregoing plants, locations, or
warehouses

	 	September 1, 1996
	 
	 	 
	All field sales employees assigned to
any of the foregoing plants,
locations, or warehouses

	 	January 1, 2001
	 
	 	 
	All Technical Materials, Inc. plants
and locations in Lincoln, Rhode Island
and all field sales employees of
Technical Materials, Inc.

	 	September 1, 1996
	 
	 	 
	All Williams Advanced Materials Inc.
plants and locations in Buffalo, New
York and all field sales employees of
Williams Advanced Materials Inc.
assigned to a Williams Advanced
Materials Inc. plant or location in
Buffalo, New York

	 	September 1, 1996
	 
	 	 
	All Williams Advanced Materials Inc.
plants and locations in Wheatfield,
New York and all field sales employees
of Williams Advanced Materials Inc.
assigned to a Williams Advanced
Materials Inc. plant or location in
Wheatfield, New York

	 	December 26, 1998
	 
	 	 
	All Williams Acquisition LLC (for
periods prior to January 1, 2009,
Williams Advanced Materials Inc. Thin
Film Products) plants and locations in
Brewster, New York

	 	March 28, 1999
	 
	 	 
	All Thin Film Technology, Inc. plants
and locations in Buellton, California

	 	April 3, 2006
	 
	 	 
	All Williams Advanced Materials Inc.
sales employees located in Arizona

	 	August 12, 2006
	 
	 	 
	All Williams Advanced Materials Inc.
plants and locations in Santa Clara,
California

	 	July 29, 2006
	 
	 	 
	All CERAC, incorporated plants and
locations in Milwaukee, Wisconsin

	 	January 1, 2008
	 
	 	 
	All Techni-Met, LLC (for periods prior
to January 1, 2009, Techni-Met, Inc.)
plants and locations in Windsor,
Connecticut

	 	February 4, 2008

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AMENDMENT NO. 1

TO

BRUSH ENGINEERED MATERIALS INC. SAVINGS AND INVESTMENT PLAN

(AS AMENDED AND RESTATED AS OF JANUARY 1, 2009)

          Brush Engineered Materials Inc., an Ohio corporation, hereby adopts this Amendment No. 1 to
the Brush Engineered Materials Inc. Savings and Investment Plan (As Amended and Restated as of
January 1, 2009) (the “Plan”).

I.

     A new sentence is added to Subsection 4.1(1) of the Plan to provide as follows:

     Notwithstanding the foregoing provisions of this Subsection 4.1(1), the “basic
percentage” amount of Basic Contributions shall be 25% for Participants at Covered
Plants, Locations, Operating Units and Classifications of Employees listed on
Schedule II and the “basic percentage” amount of Basic Contributions for
Participants at each other Covered Plant, Location, Operating Unit or Classification
of Employees listed on Schedule I shall be 0%; provided, however, that in any event
such “basic percentage” amount for a Participant who is eligible to accrue benefits
under the Brush Engineered Materials Inc. Pension Plan shall be 0%.

II.

     A new sentence is added to Subsection 4.3(1) of the Plan to provide as follows:

     Notwithstanding the foregoing provisions of this Subsection 4.3(1), except in
the case of a Participant with respect to whom the “basic percentage” is greater
than 0% as provided in Subsection 4.1(1), no Employer Contribution shall be
allocated with respect to Basic Contributions for any pay period beginning on or
after April 4, 2009.

III.

     A new Schedule II is added to the Plan in the form attached hereto.

IV.

     The foregoing changes to the Plan shall be effective for contributions for pay periods
beginning on and after April 4, 2009.

     Executed at Mayfield Heights, Ohio, this 31st day of March, 2009.

	 	 	 	 	 
	 	BRUSH ENGINEERED MATERIALS INC.

 	 
	 	By:  	/s/ Michael C. Hasychak
 	 
	 	 	Name:  	Michael C. Hasychak 	 
	 	 	Title:  	Vice President, Secretary and Treasurer 	 

 

 

	 	 	 	 	 

SCHEDULE II

COVERED PLANTS, LOCATIONS, OPERATING UNITS AND

CLASSIFICATIONS OF EMPLOYEES

This Schedule II lists all covered plants, locations, operating units, and classifications of
employees eligible for Employer Contributions for pay periods beginning on and after April 4, 2009,
provided that no Participant who is eligible to accrue benefits under the Brush Engineered
Materials Inc. Pension Plan shall be eligible for allocation of any Employer Contribution.

	 	 	 
	Plant, Location, Operating Unit, or Classification	 	 
	of Employees	 	 
	All Thin Film Technology, Inc. plants and locations in Buellton, California

	 	 
	 
	 	 
	All CERAC, incorporated plants and locations in Milwaukee, Wisconsin
	 	 
	 
	 	 
	All Techni-Met, LLC plants and locations in Windsor, Connecticut
	 	 

 

 

AMENDMENT NO. 2

TO

BRUSH ENGINEERED MATERIALS, INC. SAVINGS AND INVESTMENT PLAN

(AS AMENDED AND RESTATED AS OF JANUARY 1, 2009)

          Brash Engineered Materials, Inc., an Ohio corporation, hereby adopts this Amendment No. 2
to the Brash Engineered Materials Inc. Savings and Investment Plan (As Amended and Restated as
of January 1, 2009) (the “Plan”).

I.

          A new section is added to Article XVI of the Plan to provide as follows:

     16.6 Surrender of Life Insurance Contracts. As of April 29, 2009 the Plan
will no longer hold life insurance contracts, acquired pursuant to the merger of the
Williams Advanced Materials, Inc. Savings and Investment Plan with the Plan, on the lives of
any Participants. The Plan will surrender the held life insurance contracts and the
surrender amount will be deposited into each respective insured Participant’s Account. Prior
to the surrender of the life insurance contract, each insured Participant will have the
opportunity to purchase the life insurance contract held on his behalf. Any sale of the life
insurance contract to the insured Participant shall be made pursuant to the requirements of
the Prohibited Transaction Exemption (CPTE 92-6).

II.

          The changes to the Plan made by Section I of this amendment shall be effective as of April 29,
2009.

          Executed at Mayfield Heights, Ohio, this 28th day of April, 2009.

	 	 	 	 	 
	 	BRUSH ENGINEERED MATERIALS INC.

 	 
	 	By:  	/s/ Michael C. Hasychak
 	 
	 	 	Name:  	Michael C. Hasychak        	 
	 	 	Title:  	Vice President, Secretary and Treasurer 	 
	 

 

AMENDMENT NO. 3

TO

BRUSH ENGINEERED MATERIALS, INC. SAVINGS AND INVESTMENT PLAN

(AS AMENDED AND RESTATED AS OF JANUARY 1, 2009)

           Brush Engineered Materials, Inc., an Ohio corporation, hereby adopts this Amendment
No. 3 to the Brush Engineered Materials Inc. Savings and Investment Plan (As Amended and Restated
as of January 1, 2009) (the “Plan”).

I.

          A new paragraph is added to Subsection 4.5(1)(b) of the Plan to provide as follows:

     Notwithstanding any other provision of the Plan to the contrary, if a Participant is
absent from employment as an Employee to perform service in the uniformed services (as
defined in Chapter 43 of Title 38 of the United States Code), his compensation hereunder
will include any differential pay, as defined hereunder, he receives or is entitled to
receive from his Employer. For purposes of this paragraph, “differential pay” means any
payment made to the Participant by the Employer after December 31, 2008, with respect to a
period during which the Participant is performing service in the uniformed services while on
active duty for a period of more than 30 days that represents all or a portion of the wages
the Participant would have received if he had continued employment with the Employer as an
Employee.

II.

          A new sentence is added to Subsection 4.6(3) of the Plan to provide as follows:

Effective for Plan Years beginning after December 31, 2007, income and loss for the Gap
Period shall not be distributed with respect to contributions in excess of any limit
described in Section 4.6 or 4.7.

III.

          A new Section 6.10 is added to the Plan to provide as follows:

     6.10 Diversification of Company Stock. The provisions of this Section 6.10
shall apply to any investment in Common Stock if such stock is publicly traded or treated as
publicly traded under Section 401(a)(35) of the Code. Employer stock that is not
publicly-traded shall be treated as publicly-traded securities if the Employer or any member
of its controlled group (determined as provided in Section 414(b) of the Code, but
substituting 50 percent for 80 percent) has issued publicly-traded securities, unless
neither the Employer nor its parent company has issued either (i) publicly-traded securities
or (ii) a special class of stock that grants particular rights to or bears particular risks
for the holder or issuer with respect to any member of the controlled group.
Notwithstanding any other provision of the Plan to the contrary, a Participant whose
Accounts are invested, in whole or in part, in the Company Stock Fund shall be permitted to
divest such investments and reinvest such Accounts in other Investment Funds provided under
the Plan.

 

 

The Plan shall offer at least three Investment Fund options as alternatives to the Company
Stock Fund. Each such alternative Investment Fund shall be diversified and shall have
materially different risk and return characteristics.

The Committee shall notify each eligible Participant of his diversification rights no later
than 30 days prior to the date he is first eligible to divest his investment in the Company
Stock Fund.

The Plan shall not be treated as meeting the requirements of this Section 6.10 if the Plan
imposes any restrictions or conditions on investment in the Company Stock Fund that do not
also apply to investment in the other Investment Funds.

IV.

          A new Subsection 7.2(4) is added to the Plan to provide as follows:

     (4) Within the 120 day period ending 30 days before the date as of which distribution
of a Participant’s Account commences, the Administrative Committee shall provide the
Participant with a written explanation of his right to defer distribution until his
attainment of age 65, or such later date as may be provided in the Plan, his right to make a
direct rollover, and the forms of payment available under the Plan. Distribution of the
Participant’s Account may commence less than 30 days after such notice is provided to the
Participant if (i) the Administrative Committee clearly informs the Participant of his right
to consider his election of whether or not to make a direct rollover or to receive a
distribution prior to his attainment of age 65 and his election of a form of payment for a
period of at least 30 days following his receipt of the notice and (ii) the Participant,
after receiving the notice, affirmatively elects an early distribution. Notwithstanding the
foregoing, effective for Plan Years beginning after December 31, 2006, the written
explanation provided by the Administrative Committee shall include a description of the
consequences to the Participant of electing an immediate distribution of his vested Account
balance instead of deferring payment to his attainment of age 65.

V.

          Subsection 7.9(3) of the Plan is amended and restated to provide as follows:

     (3) Eligible retirement plan: An eligible retirement plan means any of the following:
(i) an individual retirement account described in Code Section 408(a), (ii) an individual
retirement annuity described in Code Section 408(b), (iii) an annuity plan described in Code
Section 403(a) that accepts rollovers, (iv) a qualified trust described in Code Section
401(a) that accepts rollovers, (v) an annuity contract described in Code Section 403(b) that
accepts rollovers, (vi) an eligible plan under Code Section 457(b) that is maintained by a
state, political subdivision of a state, or any agency or instrumentality of a state or
political subdivision of a state and that agrees to separately account for amounts
transferred into such plan from the Plan, or (vii) effective for distributions made on or
after January 1, 2008, a Roth IRA, as described in Code Section 408A, provided, that for
distributions made prior to January 1, 2010, such rollover shall be subject to the

 

 

limitations contained in Code Section 408A(c)(3)(B). Notwithstanding the foregoing, the
portion of a Participant’s eligible rollover distribution that consists of his Member
Contributions (non-CODA) may only be transferred to an individual retirement account or
annuity described in Code Section 408(a) or (b) or to a qualified defined contribution plan
described in Code Section 401(a) or 403(a) that agrees to separately account for such
contributions, including separate accounting for the portion of such eligible rollover
distribution that is includible in income and the portion that is not includible in income
and the portion of such eligible rollover distribution that consists of his Roth 401(k)
Contributions may only be transferred to another designated Roth account under an applicable
retirement plan described in Code Section 402A(e)(1) or to a Roth IRA described in Code
Section 408A. Notwithstanding the foregoing, in the case of a distribution to a non-spouse
Death Beneficiary, “eligible retirement plan” shall mean only an individual retirement
account or annuity described in Section 408(a) or (b) of the Code that is established for
the purpose of receiving the distribution on behalf of a designated beneficiary who is a
non-spouse Death Beneficiary.

VI.

     A new Section 7.10 is added to the Plan to provide as follows:

     7.10 Default to Discontinue 2009 RMDs. Notwithstanding Section 7.8 of the
Plan, a Participant or beneficiary who would have been required to receive required minimum
distributions for 2009 but for the enactment of Code Section 401(a)(9)(H) (“2009 RMDs”), and
who would have satisfied that requirement by receiving distributions that are (1) equal to
the 2009 RMDs or (2) one or more payments in a series of substantially equal distributions
(that include the 2009 RMDs) made at least annually and expected to last for the life (or
life expectancy) of the Participant, the joint lives (or joint life expectancy) of the
Participant and the Participant’s designated beneficiary, or for a period of at least 10
years (“Extended 2009 RMDs”), will not receive those distributions for 2009 unless the
Participant or beneficiary chooses to receive such distributions. Participants and
beneficiaries described in the preceding sentence will be given the opportunity to elect the
receive the distributions described in the preceding sentence. In addition, notwithstanding
Section 7.9 of the Plan, and solely for purposes of applying the direct rollover provisions
of the Plan, 2009 RMDs and Extended 2009 RMDs, will be treated as eligible rollover
distributions.

VII.

          A new paragraph is added to Section 11.10 of the Plan to provide as follows:

     If a Participant who is absent from employment as an Employee because of military
service dies after December 31, 2006, while performing qualified military service (as
defined in Code Section 414(u)), the Participant shall be treated as having returned to
employment as an Employee on the day immediately preceding his death for purposes of
determining the Participant’s vested interest in his Accounts and his beneficiary’s
eligibility for any death benefit under the Plan.

VIII.

     Schedule I is amended by the addition of the following relating to a covered group:

 

 

	 	 	 

	All Barr Associates, Inc. plants and locations in
Tyngsboro, Massachusetts and Westford, Massachusetts

	 	January 1, 2010

IX.

     Schedule II to the Plan is amended and restated in the form attached hereto.

X.

     The changes to the Plan made by this amendment shall be effective as follows:

     Sections III, IV, V, and VII shall be effective January 1, 2007.

     Section II shall be effective January 1, 2008.

     Sections I and VI shall be effective January 1, 2009.

     Sections VIII and IX shall be effective January 1, 2010.

     Executed at Mayfield Heights, Ohio, this 23rd day of December, 2009.

	 	 	 	 	 
	 	BRUSH ENGINEERED MATERIALS INC.

 	 
	 	By:  	/s/ Michael C. Hasychak
 	 
	 	 	Name:  	Michael C. Hasychak 	 
	 	 	Title:  	Vice President, Secretary and Treasurer 	 

 

 

	 	 	 	 	 

SCHEDULE II

COVERED PLANTS, LOCATIONS, OPERATING UNITS AND

CLASSIFICATIONS OF EMPLOYEES

This Schedule II lists all covered plants, locations, operating units, and classifications of
employees eligible for Employer Contributions for pay periods beginning on and after April 4, 2009
or such later effective date as may be specified, provided that no Participant who is eligible to
accrue benefits under the Brush Engineered Materials Inc. Pension Plan shall be eligible for
allocation of any Employer Contribution.

	 
	Plant, Location, Operating Unit, or Classification
	of Employees
	All Thin Film Technology, Inc. plants and locations in Buellton, California

	 

	All CERAC, incorporated plants and locations in Milwaukee, Wisconsin

	 

	All Techni-Met, LLC plants and locations in Windsor, Connecticut

	 

	All Barr Associates, Inc. plants and locations in Tyngsboro, Massachusetts and
Westford, Massachusetts (Effective January 1, 2010)

 

 

AMENDMENT NO. 4

TO

BRUSH ENGINEERED MATERIALS INC. SAVINGS AND INVESTMENT PLAN

(AS AMENDED AND RESTATED AS OF JANUARY 1, 2009)

          Brush Engineered Materials Inc., an Ohio corporation, hereby adopts this Amendment
No. 4 to the Brush Engineered Materials Inc. Savings and Investment Plan (As Amended and Restated
as of January 1, 2009) (the “Plan”).

I.

     The first sentence of Subsection 3.10(1) of the Plan is amended to provide as follows:

All employees who are eligible to make elective deferrals under the Plan and who
have attained age 50 before the close of the tax year shall be eligible to make
Catch-Up Contributions in accordance with, and subject to the limitations of,
Section 414(v) of the Code.

II.

A new Subsection 3.13(15) is added to the Plan to provide as follows:

     (15) A “qualified distribution” from a designated Roth account is not includible
in the distributee’s gross income. A “qualified distribution” is a distribution
that is both, (1) made after the five-taxable-year period of participation (meaning
the period of five consecutive taxable years that begins with the first day of the
first taxable year in which the employee makes a designated Roth contribution to
any designated Roth account under the Plan and ends when five consecutive taxable
years have been completed) has been completed; and (2) made on or after the date
the employee attains age 59 1/2, made to a beneficiary or the estate of the
employee on or after the employee’s death, or attributable to the employee’s being
disabled within the meaning of Section 72(m)(7) of the Code; provided, however,
that distribution from a designated Roth account is not a qualified distribution to
the extent it consists of a distribution of excess deferrals and attributable
income described in Treasury Reg. §1.402(g)-1(e).

 

 

III.

     The changes to the Plan by this amendment shall be effective as if originally
included in the January 1, 2009 restatement of the Plan.

     Executed at Mayfield Heights, Ohio, this 23rd day of April, 2010.

	 	 	 	 	 
	 	BRUSH ENGINEERED MATERIALS INC.

 	 
	 	By:  	/s/ Michael C. Hasychak
 	 
	 	 	Name:  	Michael C. Hasychak 	 
	 	 	Title:  	Vice President, Secretary and Treasurer 	 

 

 

	 	 	 	 	 

AMENDMENT NO. 5

TO

BRUSH ENGINEERED MATERIALS INC. SAVINGS AND INVESTMENT PLAN

(AS AMENDED AND RESTATED AS OF JANUARY 1, 2009)

           Brush Engineered Materials Inc., an Ohio corporation, hereby adopts this Amendment
No. 5 to the Brush Engineered Materials Inc. Savings and Investment Plan (As Amended and Restated
as of January 1, 2009) (the “Plan”).

I.

     The last sentence of Subsection 4.1(1) of the Plan is amended as follows:

     Notwithstanding the foregoing provisions of this Subsection 4.1(1), the “basic
percentage” amount of Basic Contributions shall be 50% for Participants at Covered Plants,
Locations, Operating Units and Classifications of Employees listed on Schedule II and the
“basic percentage” amount of Basic Contributions for Participants at each other Covered
Plant, Location, Operating Unit or Classification of Employees listed on Schedule I shall be
25%; provided, however, that in any event such “basic percentage” amount for a Participant
who is eligible to accrue benefits under the Brush Engineered Materials Inc. Pension Plan
shall be 25%.

II.

     New Articles XX and XXI are added to the Plan to provide as follows:

ARTICLE XX

SPECIAL PROVISIONS REGARDING

MERGER OF BARR ASSOCIATES, INC.

401(K) PROFIT SHARING PLAN INTO THE PLAN

     20.1 General. Effective as of the “Merger Date” as defined in Section
20.2, the Barr Associates, Inc. 401(k) Profit Sharing Plan (the “Barr Plan”) shall be
merged into the Plan. This Article provides special provisions regarding such merger,
which provisions shall apply notwithstanding any other provisions of the Plan and shall
override any conflicting Plan provisions.

     20.2 Merger Date. “Merger Date” shall mean the close of business on April
30, 2010.

     20.3 Transfer of Plan Assets. Effective as of the Merger Date, all Barr
Plan accounts and related assets shall be transferred from the Barr Plan to the Plan.
Upon receipt of the assets of the Barr Plan from the trustee of the Barr Plan, the
Trustee shall deposit and invest the assets in the Investment Funds in accordance with
Article VI and rules and procedures regarding the same prescribed by the Administrative
Committee. As of the date of receipt of such assets, separate Accounts (and
sub-accounts as appropriate) under the Plan shall be established in the name of each
Barr Plan participant and beneficiary (as of the Merger Date) of the corresponding type

 

 

under the Barr Plan, which shall become his Accounts (and sub-accounts as
appropriate) for purposes of the Plan. Each such Account shall be credited with an
amount equal to the balance of such participant’s or beneficiary’s corresponding account
under the Barr Plan immediately prior to the transfer. Upon such transfer, outstanding
loans, if any, under the Barr Plan shall become loans under the Plan and shall continue
to be repaid and otherwise be governed under the Plan by the terms of such loan as made
under the Barr Plan, except as otherwise provided by rules and procedures established by
the Administrative Committee.

     20.4 Participation by Barr Participants. Each participant in the Barr Plan
on the Merger Date shall become a Participant (if not otherwise a Participant) by reason
of the merger described in Section 20.1, and the provisions of the Plan shall govern his
interest under the Plan. Any beneficiary designation under the Barr Plan shall not
apply under the Plan, and each Participant shall have a Death Beneficiary as determined
in accordance with Section 1.1(13).

     20.5 Vesting. Each Account of a participant who was employed by Barr
Associates, Inc. on the Merger Date shall be fully vested and nonforfeitable on and
after the Merger Date. All other accounts shall remain subject to the vesting schedule
in effect under the Barr Plan immediately prior to the Merger Date.

     20.6 Withdrawals. Upon attainment of age 59-1/2, a participant under the
Barr Plan prior to the Merger Date may elect to withdraw from his Account amounts
attributable to any contributions made under the Barr Plan with respect to periods prior
to the Merger Date. Any such withdrawal shall be made in accordance with rules
prescribed by the Administrative Committee for the purpose of preserving rights accorded
by Section 411(d)(6) of the Code.

     20.7 Continuation of Barr Plan. The Plan shall be deemed to be a
continuation by merger into the Plan of the Barr Plan.

ARTICLE XXI

SPECIAL PROVISIONS REGARDING

MERGER OF ACADEMY CORPORATION

401(K) PLAN INTO THE PLAN

     21.1 General. Effective as of the “Merger Date” as defined in Section
21.2, the Academy Corporation 401(k) Plan (the “Academy Plan”) shall be merged into the
Plan. This Article provides special provisions regarding such merger, which provisions
shall apply notwithstanding any other provisions of the Plan and shall override any
conflicting Plan provisions.

     21.2 Merger Date. “Merger Date” shall mean the close of business on April
30, 2010.

     21.3 Transfer of Plan Assets. Effective as of the Merger Date, all Academy
Plan accounts and related assets shall be transferred from the Academy Plan to the Plan.
Upon receipt of the assets of the Academy Plan from the trustee of the

 

 

Academy Plan, the Trustee shall deposit and invest the assets in the Investment
Funds in accordance with Article VI and rules and procedures regarding the same
prescribed by the Administrative Committee. As of the date of receipt of such assets,
separate Accounts (and sub-accounts as appropriate) under the Plan shall be established
in the name of each Academy Plan participant and beneficiary (as of the Merger Date) of
the corresponding type under the Academy Plan, which shall become his Accounts (and
sub-accounts as appropriate) for purposes of the Plan. Each such Account shall be
credited with an amount equal to the balance of such participant’s or beneficiary’s
corresponding account under the Academy Plan immediately prior to the transfer. Upon
such transfer, outstanding loans, if any, under the Academy Plan shall become loans
under the Plan and shall continue to be repaid and otherwise be governed under the Plan
by the terms of such loan as made under the Academy Plan, except as otherwise provided
by rules and procedures established by the Administrative Committee.

     21.4 Participation by Academy Participants. Each participant in the
Academy Plan on the Merger Date shall become a Participant by reason of the merger
described in Section 21.1, and the provisions of the plan shall govern his interest
under the Plan. Any deferral election made under the Academy Plan shall apply under the
Plan until a superseding election is made under the Plan. Any beneficiary designation
under the Academy Plan shall not apply under the Plan, and each Participant shall have a
Death Beneficiary as determined in accordance with Section 1.1(13). Moreover, Section
3.11 shall apply with respect to any individual employed by Academy on the Merger Date
who does not have a deferral election in effect under the Academy Plan on that date.

     21.5 Vesting. Each Account of a participant who was employed by Academy
Corporation on the Merger Date shall be fully vested and nonforfeitable on and after the
Merger Date. All other accounts shall remain subject to the vesting schedule in effect
under the Academy Plan immediately prior to the Merger Date.

     21.6 Withdrawals. Upon attainment of age 59-1/2, a participant under the
Academy Plan prior to the Merger Date may elect to withdraw from his Account amounts
attributable to any contributions made under the Academy Plan with respect to periods
prior to the Merger Date. Any such withdrawal shall be made in accordance with rules
prescribed by the Administrative Committee for the purpose of preserving rights accorded
by Section 411(d)(6) of the Code.

     21.7 Continuation of Academy Plan. The Plan shall be deemed to be a
continuation by merger into the Plan of the Academy Plan.

III.

     Schedule II to the Plan is amended and restated in the form attached hereto.

IV.

     The changes to the Plan made by this amendment shall be effective as of:

 

 

          Sections I and III shall be effective for pay periods beginning on and after April 3, 2010.

          Section II shall be effective April 30, 2010.

* * *

          Executed at Mayfield Heights, Ohio, this 7th day of April, 2010.

	 	 	 	 	 
	 	BRUSH ENGINEERED MATERIALS INC.

 	 
	 	By:  	/s/ Michael C. Hasychak
 	 
	 	 	Name:  	Michael C. Hasychak 	 
	 	 	Title:  	Vice President, Secretary and Treasurer 	 

 

 

	 	 	 	 	 

SCHEDULE II

COVERED PLANTS, LOCATIONS, OPERATING UNITS AND

CLASSIFICATIONS OF EMPLOYEES

This Schedule II lists all covered plants, locations, operating units, and classifications of
employees eligible for Employer Contributions for pay periods beginning on and after April 3, 2010
or such later effective date as may be specified, provided that no Participant who is eligible to
accrue benefits under the Brush Engineered Materials Inc. Pension Plan shall be eligible for
allocation of any Employer Contribution exceeding 25%.

	 
	Plant, Location, Operating Unit, or Classification
	of Employees
	All Thin Film Technology, Inc. plants and locations in Buellton, California

	 

	All CERAC, incorporated plants and locations in Milwaukee, Wisconsin

	 

	All Techni-Met, LLC plants and locations in Windsor, Connecticut

	 

	All Barr Associates, Inc. plants and locations in Tyngsboro, Massachusetts and
Westford, Massachusetts (Effective January 1, 2010)

	 

	All Academy Corporation plants and locations in Albuquerque, New Mexico
(effective May 1, 2010)

 

 

AMENDMENT NO. 6

TO

BRUSH ENGINEERED MATERIALS INC. SAVINGS AND INVESTMENT PLAN

(AS AMENDED AND RESTATED AS OF JANUARY 1, 2009)

          Brush Engineered Materials Inc., an Ohio corporation, hereby adopts this Amendment
No. 6 to the Brush Engineered Materials Inc. Savings and Investment Plan (As Amended and Restated
as of January 1, 2009) (the “Plan”).

I.

     Section 7.5 of the Plan is amended to provide as follows:

     7.5 Non-Hardship Withdrawals. A Participant who is an Employee may
withdraw in cash a portion of his Account as provided below and in the order set forth
in the following Subsections (1) through (7), but subject to a minimum withdrawal amount
of the lesser of $300 or 100% of the maximum amount withdrawable from his Account. Any
such withdrawal shall be made in accordance with procedures established by the
Administrative Committee. The amount of such withdrawal shall be based upon the
valuation of the Participant’s Account made as of a Valuation Date occurring on or after
the date of application for such withdrawal, and such amount shall be payable as soon as
practicable after such Valuation Date, all in accordance with procedures relating to
Valuation Date and other matters established by the Administrative Committee, provided
that payment shall in any event be made not later than 45 days after such Valuation Date
unless extraordinary circumstances require payment on a later date.

     (1) The Participant may withdraw his Transfer Contributions to the extent the same are
not then taxable to the recipient for federal income tax purposes, and the earnings thereon,
and then, to the extent the terms of the transfer, provisions of the Code and other
applicable law permit, the taxable portion thereof, and the earnings thereon;

     (2) The Participant may withdraw his Rollover Contributions, and the earnings thereon;

     (3) The Participant may withdraw his Member Contributions made to the Trust prior to
April 1, 1984, and the earnings thereon;

     (4) The Participant may withdraw his Member Contributions made to the Trust after March
31, 1984 on other than a CODA basis and not subject to Employer matching, and the earnings
thereon;

 

 

     (5) If, the Participant has attained age 59-1/2 he may withdraw his Member
Contributions made to the Trust on a CODA basis and not subject to Employer matching, and
the earnings thereon;

     (6) If the Participant has attained age 59-1/2 he may withdraw his Member Contributions
made to the Trust on a CODA basis subject to Employer matching, and the earnings thereon, as
well as Catch-up Contributions, and the earnings thereon; and

     (7) The Participant may withdraw his Member Contributions made to the Trust after March
31, 1984 on other than a CODA basis subject to Employer matching, and the earnings thereon.

     Withdrawals from any category set forth above may not be made until the assets
in all prior categories have been withdrawn. Any Participant who has withdrawn or
withdraws assets from category (7) may not make any further Member Contributions for
at least three months after the end of the month in which any such withdrawal was or
is made. No withdrawals from a Participant’s PAYSOP Contributions Account may be
made at any time under this Section.

III.

     The changes to the Plan by this amendment shall be effective April 1, 2010.

     Executed at Mayfield Heights, Ohio, this 28th day of May, 2010.

	 	 	 	 	 
	 	BRUSH ENGINEERED MATERIALS INC.

 	 
	 	By:  	/s/ Michael C. Hasychak
 	 
	 	 	Name:  	Michael C. Hasychak 	 
	 	 	Title:  	Vice President, Secretary and Treasurer 	 
	 

 

 

AMENDMENT NO. 7

TO

BRUSH ENGINEERED MATERIALS INC. SAVINGS AND INVESTMENT PLAN

(AS AMENDED AND RESTATED AS OF JANUARY 1, 2009)

           Brush Engineered Materials Inc., an Ohio corporation, hereby adopts this Amendment
No. 7 to the Brush Engineered Materials Inc. Savings and Investment Plan (As Amended and Restated
as of January 1, 2009) (the “Plan”).

I.

     Section 1.1(8) of the Plan is amended to provide as follows:

     1.1(8) Company. Materion Corporation, an Ohio corporation.

II.

     Section 1.1(16) of the Plan is amended t provide as follows:

     1.1(16) Employer. The Company, Materion Brush Inc., and any other corporation
or business organization that has adopted the Plan pursuant to Article XII.

III.

     Section 1.1(29) of the Plan is amended t provide as follows:

     1.1(29) Plan. The plan, the terms and provisions of which are herein set
forth, and as it has been or may be amended or restated from time to time, designated as
“Materion Corporation Savings and Investment Plan” (for certain prior periods, “Brush
Engineered Materials Inc. Savings and Investment Plan”).

IV.

     Section 12.1 of the Plan is amended t provide as follows:

     12.1 Adoption by Other Employers. Any corporation or other business
organization other than the Company may, with the consent of either the Board of Directors
or a duly authorized officer or officers of the Company, adopt the Plan and thereby become
an Employer hereunder by executing a duly authorized instrument and filing a copy thereof
with the Company; provided, however, that Materion Brush Inc. shall be deemed to have
adopted the Plan and Materion Corporation shall be deemed to have consented thereto, without
further action on the part of either. Such adoption may be subject to such terms and
conditions as the Board of Directors or duly authorized officer or officers of the Company
requires or approves.

1

 

V.

     Schedule I to the Plan is amended and restated in the form attached hereto.

VI.

     Schedule II to the Plan is amended and restated in the form attached hereto.

VII.

     The changes to the Plan by this amendment shall be effective March 8, 2011.

     Executed at Mayfield Heights, Ohio, this 3rd day of March, 2011.

	 	 	 	 	 
	 	BRUSH ENGINEERED MATERIALS INC.

 	 
	 	By:  	/s/ Michael C. Hasychak
 	 
	 	 	Name:  	Michael C. Hasychak 	 
	 	 	Title:  	Vice President, Secretary and Treasurer 	 
	 

2

 

SCHEDULE I

COVERED PLANTS, LOCATIONS, OPERATING UNITS AND

CLASSIFICATIONS OF EMPLOYEES

This Schedule I lists all covered plants, locations, operating units, and classifications of
employees (to which coverage under the Plan has been extended), and the later of the effective date
of this Schedule I or the effective date of participation.

	 	 	 
	 	 	Later of the Effective Date of this
	Plant, Location, Operating Unit, or Classification	 	Schedule I or the Date of
	of Employees	 	Participation
	All Materion Brush Inc. plants and
locations in Mayfield Heights, Ohio

	 	September 1, 1996
	 
	 	 
	All Materion Services Inc. locations

	 	January 1, 2001
	 
	 	 
	All Materion Ceramics Inc. plants and
locations in Tucson, Arizona

	 	January 1, 2001
	 
	 	 
	All Materion Natural Resources Inc.
plants and locations in Delta, Utah

	 	January 1, 2001
	 
	 	 
	All Materion Natural Resources Inc.
mining facilities in Juab County, Utah

	 	January 1, 2001
	 
	 	 
	All Materion Brush Inc. plants and
locations in Elmore, Ohio

	 	September 1, 1996
	 
	 	 
	All Materion Brush Inc. plants and
locations in Shoemakersville,
Pennsylvania

	 	September 1, 1996
	 
	 	 
	All Materion Brush Inc. plants and
locations in Fremont, California

	 	September 1, 1996
	 
	 	 
	All Materion Brush Inc. warehouses in
Warren, Michigan

	 	September 1, 1996
	 
	 	 
	All Materion Brush Inc. warehouses in
Elmhurst, Illinois

	 	September 1, 1996
	 
	 	 
	All Materion Technologies Inc. plants
and locations in Newburyport,
Massachusetts

	 	January 1, 2001
	 
	 	 
	All Materion Brush Inc. plants and
locations in Lorain, Ohio

	 	November 1, 1996
	 
	 	 
	All field sales employees of Materion
Brush Inc. assigned to any of the
foregoing plants, locations, or
warehouses

	 	September 1, 1996

1

 

	 	 	 
	 	 	Later of the Effective Date of this
	Plant, Location, Operating Unit, or Classification	 	Schedule I or the Date of
	of Employees	 	Participation
	All field sales employees assigned to
any of the foregoing plants,
locations, or warehouses

	 	January 1, 2001
	 
	 	 
	All Materion Technical Materials Inc.
plants and locations in Lincoln, Rhode
Island and all field sales employees
of Materion Technical Materials Inc.

	 	September 1, 1996
	 
	 	 
	All Materion Advanced Materials
Technologies and Services Inc. plants
and locations in Buffalo, New York and
all field sales employees of Materion
Advanced Materials Technologies and
Services Inc. assigned to a Materion
Advanced Materials Technologies and
Services Inc. plant or location in
Buffalo, New York

	 	September 1, 1996
	 
	 	 
	All Materion Advanced Materials
Technologies and Services Inc. plants
and locations in Wheatfield, New York
and all field sales employees of
Materion Advanced Materials
Technologies and Services Inc.
assigned to a Materion Advanced
Materials Technologies and Services
Inc. plant or location in Wheatfield,
New York

	 	December 26, 1998
	 
	 	 
	All Materion Brewster LLC (for periods
prior to January 1, 2009, Williams
Advanced Materials Inc. Thin Film
Products) plants and locations in
Brewster, New York

	 	March 28, 1999
	 
	 	 
	All Materion Precision Optics and Thin
Film Coatings Corporation plants and
locations in Buellton, California

	 	April 3, 2006
	 
	 	 
	All Materion Advanced Materials
Technologies and Services Inc. sales
employees located in Arizona

	 	August 12, 2006
	 
	 	 
	All Materion Advanced Materials
Technologies and Services Inc. plants
and locations in Santa Clara,
California

	 	July 29, 2006
	 
	 	 
	All Materion Advanced Chemicals Inc.
plants and locations in Milwaukee,
Wisconsin

	 	January 1, 2008
	 
	 	 
	All Materion Large Area Coatings LLC
(for periods prior to January 1, 2009,
Techni-Met, Inc.) plants and locations
in Windsor, Connecticut

	 	February 4, 2008

2

 

	 	 	 
	 	 	Later of the Effective Date of this
	Plant, Location, Operating Unit, or Classification	 	Schedule I or the Date of
	of Employees	 	Participation
	All Materion Precision Optics and Thin
Film Coatings Inc. plants and
locations in Tyngsboro, Massachusetts
and Westford, Massachusetts

	 	January 1, 2010
	 
	 	 
	All Materion Advanced Materials
Technologies and Services Corp. plants
and locations in Albuquerque, New
Mexico

	 	May 1, 2010

3exv10w5

Exhibit 10.5

SECOND AMENDED AND RESTATED INVESTMENT ADVISORY AGREEMENT

BETWEEN

FIFTH STREET FINANCE CORP.

AND

FIFTH STREET MANAGEMENT LLC

     This Second Amended and Restated Investment Advisory Agreement (this “Agreement”) made this
2nd day of May 2011, by and between FIFTH STREET FINANCE CORP., a Delaware corporation (the
“Company”), and FIFTH STREET MANAGEMENT LLC, a Delaware limited liability company (the “Adviser”).

     WHEREAS, the Company is a closed-end management investment fund that has elected to be
regulated as a business development company (“BDC”) under the Investment Company Act of 1940, as
amended (the “Investment Company Act”); and

     WHEREAS, the Adviser is organized as an investment adviser that is registered under the
Investment Advisers Act of 1940, as amended (the “Advisers Act”); and

     WHEREAS, the Company and the Adviser entered into an investment advisory agreement, dated
December 14, 2007 (the “Original Advisory Agreement”);

     WHEREAS, the Company and the Adviser entered into an amended and restated investment advisory
agreement, dated April 30, 2008 (the “First Amended and Restated Advisory Agreement”), which
amended and restated in its entirety the Original Advisory Agreement; and

     WHEREAS, the Company and the Adviser further desire to amend and restate in its entirety the
First Amended and Restated Advisory Agreement to reflect, among other things, (i) the fact that the
Adviser has agreed to permanently waive that portion of its Base Management Fee (as defined below)
attributable to the Company’s assets held in the form of cash and cash equivalents as of the end of
each quarter beginning on March 31, 2010 and (ii) changes in certain non-substantive factual
matters described therein that occurred subsequent to the date of the execution of the First
Amended and Restated Advisory Agreement.

     NOW, THEREFORE, in consideration of the premises and for other good and valuable
consideration, the parties hereby agree as follows:

1. Duties of the Adviser.

     (a) The Company hereby employs the Adviser to act as the investment adviser to the Company and
to manage the investment and reinvestment of the assets of the Company, subject to the supervision
of the Board of Directors of the Company, (the “Board”) for the period and upon the terms herein
set forth, (i) in accordance with the investment objective, policies and restrictions that are set
forth in the reports and/or registration statements that the Company files with the Securities and
Exchange Commission (the “SEC”) from time to time; (ii) during the

 

 

term of this Agreement in accordance with all other applicable federal and state laws, rules
and regulations, and the Company’s charter and by-laws; and (iii) in accordance with the Investment
Company Act. Without limiting the generality of the foregoing, the Adviser shall, during the term
and subject to the provisions of this Agreement (A) determine the composition of the portfolio of
the Company, the nature and timing of the changes therein and the manner of implementing such
changes; (B) identify, evaluate and negotiate the structure of the investments made by the Company;
(C) close, monitor and service the Company’s investments; (D) determine the securities and other
assets that the Company shall purchase, retain, or sell; (E) perform due diligence on prospective
portfolio companies; and (F) provide the Company with such other investment advisory, research and
related services as the Company may, from time to time, reasonably require for the investment of
its funds. The Adviser shall have the power and authority on behalf of the Company to effectuate
its investment decisions for the Company, including the execution and delivery of all documents
relating to the Company’s investments and the placing of orders for other purchase or sale
transactions on behalf of the Company. In the event that the Company determines to obtain debt
financing, the Adviser shall arrange for such financing on the Company’s behalf, subject to the
oversight and approval of the Company’s Board.

     (b) The Adviser hereby accepts such employment and agrees during the term hereof to render the
services described herein for the compensation provided herein.

     (c) The Adviser is hereby authorized to enter into one or more sub-advisory agreements with
other investment advisers (each, a “Sub-Adviser”) pursuant to which the Adviser may obtain the
services of the Sub-Adviser(s) to assist the Adviser in fulfilling its responsibilities hereunder.
Specifically, the Adviser may retain a Sub-Adviser to recommend specific securities or other
investments based upon the Company’s investment objective and policies, and work, along with the
Adviser, in structuring, negotiating, arranging or effecting the acquisition or disposition of such
investments and monitoring investments on behalf of the Company, subject to the oversight of the
Adviser and the Company. The Adviser and not the Company shall be responsible for any compensation
payable to any Sub-Adviser. Any sub-advisory agreement entered into by the Adviser shall be in
accordance with the requirements of the Investment Company Act and other applicable federal and
state law.

     (d) The Adviser shall, for all purposes herein provided, be deemed to be an independent
contractor and, except as expressly provided or authorized herein, shall have no authority to act
for or represent the Company in any way or otherwise be deemed an agent of the Company.

     (e) Subject to review by and the overall control of the Board of the Company, the Adviser
shall keep and preserve for the period required by the Investment Company Act any books and records
relevant to the provision of its investment advisory services to the Company and shall specifically
maintain all books and records with respect to the Company’s portfolio transactions and shall
render to the Company’s Board such periodic and special reports as the Board may reasonably
request. The Adviser agrees that all records that it maintains for the Company are the property of
the Company and shall surrender promptly to the Company any such records upon the Company’s
request, provided that the Adviser may retain a copy of such records.

2

 

2. Company’s Responsibilities and Expenses Payable by the Company.

     All personnel of the Adviser, when and to the extent engaged in providing investment advisory
services hereunder, and the compensation and routine overhead expenses of such personnel allocable
to such services, shall be provided and paid for by the Adviser and not by the Company. The
Company shall bear all other costs and expenses of its operations and transactions, including
(without limitation) fees and expenses relating to: organizational and offering expenses; the
investigation and monitoring of the Company’s investments; the cost of calculating the Company’s
net asset value; the cost of effecting sales and repurchases of shares of the Company’s common
stock and other securities; management and incentive fees payable pursuant to the investment
advisory agreement; fees payable to third parties relating to, or associated with, making
investments and valuing investments (including third-party valuation firms); transfer agent and
custodial fees; fees and expenses associated with marketing efforts (including attendance at
investment conferences and similar events); federal and state registration fees; any exchange
listing fees; federal, state and local taxes; independent directors’ fees and expenses; brokerage
commissions; costs of proxy statements, stockholders’ reports and notices; costs of preparing
government filings, including periodic and current reports with the SEC; fidelity bond, liability
insurance and other insurance premiums; and printing, mailing, independent accountants and outside
legal costs and all other direct expenses incurred by either FSC, Inc. or the Company in connection
with administering the Company’s business, including payments under the administration agreement
dated as of May 2, 2011 (the “Adminstration Agreement”) that will be based upon the Company’s
allocable portion of overhead and other expenses incurred by the Company’s administrator, FSC,
Inc., in performing its obligations under the Administration Agreement and the compensation of the
Company’s chief financial officer and chief compliance officer, and their respective staffs.

3. Compensation of the Adviser.

     The Company agrees to pay, and the Adviser agrees to accept, as compensation for the services
provided by the Adviser hereunder, a base management fee (“Base Management Fee”) and an incentive
fee (“Incentive Fee”) as hereinafter set forth. The Adviser may agree to temporarily or
permanently waive, in whole or in part, the Base Management Fee and/or the Incentive Fee. See
Appendix A for examples of how these fees are calculated.

     (a) The Base Management Fee shall be calculated at an annual rate of 2% of the Company’s gross
assets, excluding any cash and cash equivalents. For purposes of this Agreement, the term “cash
and cash equivalents” will have the meaning ascribed to it from time to time in the notes to the
financial statements that the Company files with the SEC. The Base Management Fee shall be payable
quarterly in arrears, and shall be calculated based on the value of the Company’s gross assets at
the end of each fiscal quarter, and appropriately adjusted for any equity capital raises or
repurchases during such quarter. The Base Management Fee for any partial month or quarter shall be
appropriately prorated.

     (b) The Incentive Fee shall consist of two parts, as follows:

	 	(i)	 	The first part shall be calculated and payable quarterly in
arrears based on the Company’s ‘‘Pre-Incentive Fee Net Investment Income’’ for
the immediately preceding fiscal quarter. For this purpose, ‘‘Pre-Incentive

3

 

	 	 	 	Fee Net Investment Income’’ means interest income, dividend income and any
other income (including any other fees (other than fees for providing
managerial assistance), such as commitment, origination, structuring,
diligence and consulting fees or other fees that the Company receives from
portfolio companies) accrued during the fiscal quarter, minus the Company’s
operating expenses for the quarter (including the Base Management Fee,
expenses payable under the Administration Agreement with FSC, Inc., and any
interest expense and dividends paid on any issued and outstanding preferred
stock, but excluding the Incentive Fee). Pre-Incentive Fee Net Investment
Income includes, in the case of investments with a deferred interest feature
(such as original issue discount, debt instruments with payment-in-kind
interest and zero coupon securities), accrued income that the Company has
not yet received in cash. Pre-Incentive Fee Net Investment Income does not
include any realized capital gains, realized capital losses or unrealized
capital appreciation or depreciation. Pre-Incentive Fee Net Investment
Income, expressed as a rate of return on the value of the Company’s net
assets at the end of the immediately preceding fiscal quarter, shall be
compared to a ‘‘hurdle rate’’ of 2% per quarter (8% annualized), subject to
a ‘‘catch-up’’ provision measured as of the end of each fiscal quarter. The
Company’s net investment income used to calculate this part of the incentive
fee is also included in the amount of the Company’s gross assets used to
calculate the 2% base management fee. The operation of the incentive fee
with respect to the Company’s Pre-Incentive Fee Net Investment Income for
each quarter is as follows:

	 	•	 	No incentive fee is payable to the Adviser in any fiscal quarter in
which the Company’s Pre-Incentive Fee Net Investment Income does not exceed
the hurdle rate of 2% (the ‘‘preferred return’’ or ‘‘hurdle’’).
	 
	 	•	 	100% of the Company’s Pre-Incentive Fee Net Investment Income with
respect to that portion of such Pre-Incentive Fee Net Investment Income, if
any, that exceeds the hurdle rate but is less than or equal to 2.5% in any
fiscal quarter (10% annualized) is payable to the Adviser. The Company
refers to this portion of the Company’s Pre-Incentive Fee Net Investment
Income (which exceeds the hurdle rate but is less than or equal to 2.5%) as
the ‘‘catch-up.’’ The ‘‘catch-up’’ provision is intended to provide the
Adviser with an incentive fee of 20% on all of the Company’s Pre-Incentive
Fee Net Investment Income as if a hurdle rate did not apply when the
Company’s Pre-Incentive Fee Net Investment Income exceeds 2.5% in any
fiscal quarter; and
	 
	 	•	 	20% of the amount of the Company’s Pre-Incentive Fee Net Investment
Income, if any, that exceeds 2.5% in any fiscal quarter (10% annualized) is
payable to the Adviser once the hurdle is reached and the catch-up is
achieved, (20% of all Pre-Incentive Fee Net Investment Income thereafter is
allocated to the Adviser).

4

 

	 	(ii)	 	The second part of the incentive fee shall be determined and
payable in arrears as of the end of each fiscal year (or upon termination of
the investment advisory agreement, as of the termination date), commencing on
September 30, 2008 and shall equal 20% of the Company’s realized capital gains,
if any, on a cumulative basis from inception through the end of each fiscal
year, computed net of all realized capital losses and unrealized capital
depreciation on a cumulative basis, less the aggregate amount of any previously
paid capital gain incentive fees.

4. Covenants of the Adviser.

     The Adviser covenants that it will maintain its registration as an investment adviser under
the Advisers Act. The Adviser agrees that its activities will at all times be in compliance in all
material respects with all applicable federal and state laws governing its operations and
investments.

5. Brokerage Commissions.

     The Adviser is hereby authorized, to the fullest extent now or hereafter permitted by law, to
cause the Company to pay a member of a national securities exchange, broker or dealer an amount of
commission for effecting a securities transaction in excess of the amount of commission another
member of such exchange, broker or dealer would have charged for effecting that transaction, if the
Adviser determines in good faith, taking into account such factors as price (including the
applicable brokerage commission or dealer spread), size of order, difficulty of execution, and
operational facilities of the firm and the firm’s risk and skill in positioning blocks of
securities, that such amount of commission is reasonable in relation to the value of the brokerage
and/or research services provided by such member, broker or dealer, viewed in terms of either that
particular transaction or its overall responsibilities with respect to the Company’s portfolio, and
constitutes the best net results for the Company.

6. Other Activities of the Adviser.

     The services of the Adviser to the Company are not exclusive, and the Adviser may engage in
any other business or render similar or different services to others including, without limitation,
the direct or indirect sponsorship or management of other investment based accounts or commingled
pools of capital, however structured, having investment objectives similar to those of the Company,
so long as its services to the Company hereunder are not impaired thereby, and nothing in this
Agreement shall limit or restrict the right of any manager, partner, member (including its members
and the owners of its members), officer or employee of the Adviser to engage in any other business
or to devote his or her time and attention in part to any other business, whether of a similar or
dissimilar nature, or to receive any fees or compensation in connection therewith (including fees
for serving as a director of, or providing consulting services to, one or more of the Company’s
portfolio companies, subject to applicable law). So long as this Agreement or any extension,
renewal or amendment remains in effect, the Adviser shall be the only investment adviser for the
Company, subject to the Adviser’s right to enter into sub-advisory agreements. The Adviser assumes
no responsibility under this Agreement other than to render the services called for hereunder. It
is understood that directors, officers, employees and stockholders of the Company are or may become
interested in the Adviser and its

5

 

affiliates, as directors, officers, employees, partners, stockholders, members, managers or
otherwise, and that the Adviser and directors, officers, employees, partners, stockholders, members
and managers of the Adviser and its affiliates are or may become similarly interested in the
Company as stockholders or otherwise.

7. Responsibility of Dual Directors, Officers and/or Employees.

     If any person who is a manager, partner, member, officer or employee of the Adviser is or
becomes a director, officer and/or employee of the Company and acts as such in any business of the
Company, then such manager, partner, member, officer and/or employee of the Adviser shall be deemed
to be acting in such capacity solely for the Company, and not as a manager, partner, member,
officer or employee of the Adviser or under the control or direction of the Adviser, even if paid
by the Adviser.

8. Limitation of Liability of the Adviser; Indemnification.

     The Adviser (and its officers, managers, partners, members (and their members, including the
owners of their members), agents, employees, controlling persons and any other person or entity
affiliated with the Adviser) shall not be liable to the Company for any action taken or omitted to
be taken by the Adviser in connection with the performance of any of its duties or obligations
under this Agreement or otherwise as an investment adviser of the Company (except to the extent
specified in Section 36(b) of the Investment Company Act concerning loss resulting from a breach of
fiduciary duty (as the same is finally determined by judicial proceedings) with respect to the
receipt of compensation for services, and the Company shall indemnify, defend and protect the
Adviser (and its officers, managers, partners, members (and their members, including the owners of
their members), agents, employees, controlling persons and any other person or entity affiliated
with the Adviser, each of whom shall be deemed a third party beneficiary hereof) (collectively, the
“Indemnified Parties”) and hold them harmless from and against all damages, liabilities, costs and
expenses (including reasonable attorneys’ fees and amounts reasonably paid in settlement) incurred
by the Indemnified Parties in or by reason of any pending, threatened or completed action, suit,
investigation or other proceeding (including an action or suit by or in the right of the Company or
its security holders) arising out of or otherwise based upon the performance of any of the
Adviser’s duties or obligations under this Agreement or otherwise as an investment adviser of the
Company. Notwithstanding the preceding sentence of this Section 8 to the contrary, nothing
contained herein shall protect or be deemed to protect the Indemnified Parties against or entitle
or be deemed to entitle the Indemnified Parties to indemnification in respect of, any liability to
the Company or its security holders to which the Indemnified Parties would otherwise be subject by
reason of willful misfeasance, bad faith or gross negligence in the performance of the Adviser’s
duties or by reason of the reckless disregard of the Adviser’s duties and obligations under this
Agreement.

9. Effectiveness, Duration and Termination of Agreement.

     This Agreement shall become effective as of the date above written. This Agreement shall
remain in effect until March 1, 2012, and thereafter shall continue automatically for
successive annual periods, provided that such continuance is specifically approved at least
annually by (a) the vote of the Company’s Board, or by the vote of a majority of the outstanding

6

 

voting securities of the Company and (b) the vote of a majority of the Company’s directors who
are not parties to this Agreement or “interested persons” (as such term is defined in Section
2(a)(19) of the Investment Company Act) of any such party, in accordance with the requirements of
the Investment Company Act and each of whom is an “independent director” under applicable New York
Stock Exchange listing standards. This Agreement may be terminated at any time, without the
payment of any penalty, upon 60 days’ written notice, by the vote of a majority of the outstanding
voting securities of the Company, or by the vote of the Company’s directors or by the Adviser.
This Agreement shall automatically terminate in the event of its “assignment” (as such term is
defined for purposes of Section 15(a)(4) of the Investment Company Act). The provisions of
Paragraph 8 of this Agreement shall remain in full force and effect, and the Adviser shall remain
entitled to the benefits thereof, notwithstanding any termination of this Agreement.

10. Notices.

     Any notice under this Agreement shall be given in writing, addressed and delivered or mailed,
postage prepaid, to the other party at its principal office.

11. Amendments.

     This Agreement may be amended by mutual consent.

12. Entire Agreement; Governing Law.

     This Agreement contains the entire agreement of the parties and supersedes all prior
agreements, understandings and arrangements with respect to the subject matter hereof.
Notwithstanding the place where this Agreement may be executed by any of the parties hereto, this
Agreement shall be construed in accordance with the laws of the State of New York. For so long as
the Company is regulated as a BDC under the Investment Company Act, this Agreement shall also be
construed in accordance with the applicable provisions of the Investment Company Act. In such case,
to the extent the applicable laws of the State of New York, or any of the provisions herein,
conflict with the provisions of the Investment Company Act, the latter shall control. To the
fullest extent permitted by law, in the event of any dispute arising out of the terms and
conditions of this Agreement, the parties hereto consent and submit to the jurisdiction of the
courts of the State of New York in the county of New York and of the U.S. District Court for the
Southern District of New York.

7

 

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed on the
date above written.

	 	 	 	 	 
	 	FIFTH STREET FINANCE CORP.

 	 
	 	By:  	 	 
	 	 	Name:  	Leonard M. Tannenbaum 	 
	 	 	Title:  	Chief Executive Officer 	 
	 

	 	 	 	 	 
	 	FIFTH STREET MANAGEMENT LLC

 	 
	 	By:  	 	 
	 	 	Name:  	Bernard D. Berman 	 
	 	 	Title:  	President 	 

8

 

	 	 	 	 	 

Appendix A

Example 1: Income Related Portion of Incentive Fee for Each Fiscal Quarter

     Alternative 1

     Assumptions

     Investment income (including interest, dividends, fees, etc.) = 1.25%

     Hurdle rate(1) = 2%

     Management fee(2) = 0.5%

     Other expenses (legal, accounting, custodian, transfer agent, etc.)(3) = 0.2%

     Pre-Incentive Fee Net Investment Income

     (investment income — (management fee + other expenses) = 0.55%

     Pre-Incentive Fee Net Investment Income does not exceed hurdle rate, therefore there is no income-related incentive fee.

     Alternative 2

     Assumptions

     Investment income (including interest, dividends, fees, etc.) = 2.9%

     Hurdle rate(1) = 2%

     Management fee(2) = 0.5%

     Other expenses (legal, accounting, custodian, transfer agent, etc.)(3) = 0.2%

     Pre-Incentive Fee Net Investment Income

     (investment income — (management fee + other expenses) = 2.2%

     Incentive fee = 100% X Pre-Incentive Fee Net Investment Income (subject to ‘‘catch-up’’)(4)

     = 100% X (2.2% — 2%)

     = 0.2%

	 	 	Pre-Incentive Fee Net Investment Income exceeds the hurdle rate, but does not fully satisfy
the ‘‘catch-up’’ provision, therefore the income related portion of the incentive fee is
0.2%.

     Alternative 3

     Assumptions

     Investment income (including interest, dividends, fees, etc.) = 3.5%

     Hurdle rate(1) = 2%

     Management fee(2) = 0.5%

     Other expenses (legal, accounting, custodian, transfer agent, etc.)(3) = 0.2%

     Pre-Incentive Fee Net Investment Income

     (investment income — (management fee + other expenses) = 2.8%

     Incentive fee = 100% _ Pre-Incentive Fee Net Investment Income (subject to ‘‘catch-up’’)(4)

     Incentive fee = 100% X ‘‘catch-up’’ + (20% X (Pre-Incentive Fee Net Investment Income — 2.5%))

     Catch up = 2.5% — 2%

     = 0.5%

     Incentive fee = (100% X 0.5%) + (20% X (2.8% — 2.5%))

     = 0.5% + (20% X 0.3%)

     = 0.5% + 0.06%

     = 0.56%

9

 

	 	 	Pre-Incentive Fee Net Investment Income exceeds the hurdle rate, and fully satisfies the
‘‘catch-up’’ provision, therefore the income related portion of the incentive fee is 0.56%.

 

			
	(1)	 	Represents 8% annualized hurdle rate.
	 
	(2)	 	Represents 2% annualized base management fee.
	 
	(3)	 	Excludes organizational and offering expenses.
	 
	(4)	 	The ‘‘catch-up’’ provision is intended to provide the Adviser with an incentive fee of 20%
on all Pre-Incentive Fee Net Investment Income as if a hurdle rate did not apply when the
Company’s net investment income exceeds 2.5% in any fiscal quarter.

Example 2: Capital Gains Portion of Incentive Fee(*):

     Alternative 1:

     Assumptions

	 	 	Year 1: $20 million investment made in Company A (‘‘Investment A’’), and $30 million
investment made in Company B (‘‘Investment B’’)

	 	 	Year 2: Investment A sold for $50 million and fair market value (‘‘FMV’’) of Investment B
determined to be $32 million

	 	 	Year 3: FMV of Investment B determined to be $25 million

	 	 	Year 4: Investment B sold for $31 million

The capital gains portion of the incentive fee would be:

	 	 	Year 1: None

	 	 	Year 2: Capital gains incentive fee of $6 million ($30 million realized capital gains on
sale of Investment A multiplied by 20%)

	 	 	Year 3: None à $5 million (20% multiplied by ($30 million cumulative capital gains
less $5 million cumulative capital depreciation)) less $6 million (previous capital gains
fee paid in Year 2)

	 	 	Year 4: Capital gains incentive fee of $200,000 à $6.2 million ($31 million cumulative
realized capital gains multiplied by 20%) less $6 million (capital gains incentive fee taken
in Year 2)

     Alternative 2

     Assumptions

	 	 	Year 1: $20 million investment made in Company A (‘‘Investment A’’), $30 million
investment made in Company B (‘‘Investment B’’) and $25 million investment made in Company C
(‘‘Investment C’’)

	 	 	Year 2: Investment A sold for $50 million, FMV of Investment B determined to be $25 million
and FMV of Investment C determined to be $25 million

	 	 	Year 3: FMV of Investment B determined to be $27 million and Investment C sold for $30
million

	 	 	Year 4: FMV of Investment B determined to be $35 million

	 	 	Year 5: Investment B sold for $20 million

The capital gains incentive fee, if any, would be:

	 	 	Year 1: None

	 	 	Year 2: $5 million capital gains incentive fee à 20% multiplied by $25 million ($30
million realized capital gains on Investment A less unrealized capital depreciation on
Investment B)

10

 

	 	 	Year 3: $1.4 million capital gains incentive fee(1) à $6.4 million (20% multiplied by
$32 million ($35 million cumulative realized capital gains less $3 million unrealized
capital depreciation)) less $5 million capital gains incentive fee received in Year 2

	 	 	Year 4: None

	 	 	Year 5: None à $5 million (20% multiplied by $25 million (cumulative realized capital
gains of $35 million less realized capital losses of $10 million)) less $6.4 million
cumulative capital gains incentive fee paid in Year 2 and Year 3(2)

 

			
	*	 	The hypothetical amounts of returns shown are based on a percentage of the Company’s total
net assets and assume no leverage. There is no guarantee that positive returns will be
realized and actual returns may vary from those shown in this example.
	 
	(1)	 	As illustrated in Year 3 of Alternative 1 above, if the Company were to be wound up on a date
other than its fiscal year end of any year, the Company may have paid aggregate capital gains
incentive fees that are more than the amount of such fees that would be payable if the Company
had been wound up on its fiscal year end of such year.
	 
	(2)	 	As noted above, it is possible that the cumulative aggregate capital gains fee received by
the Adviser ($6.4 million) is effectively greater than $5 million (20% of cumulative aggregate
realized capital gains less net realized capital losses or net unrealized depreciation ($25
million)).

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