Document:

exv4wxcy

 

Exhibit 4(c)

ASSIGNMENT OF

NET OVERRIDING ROYALTY INTEREST

(SAN JUAN BASIN ROYALTY TRUST)

	 	 	 	 	 	 	 	 	 
	STATE OF NEW MEXICO

	 	 	)	 	 	 	 	 
	 

	 	 	)	 	 	ss,
	 	 
	COUNTIES OF SAN JUAN,

	 	 	)	 	 	 	 	 
	RIO ARRIBA AND SANDOVAL

	 	 	)	 	 	 	 	 

     This Assignment of Net Overriding Royalty Interest (this “Assignment”) is made and
entered into to be effective as of September 30, 2002, by and between Bank One, N.A., (“Bank One”),
a national banking association organized under the laws of the United States, whose address is P.O.
Box 2604, Fort Worth, Texas 76113, and TexasBank (“TexasBank”). a state bank organized
under the laws of the State of Texas whose address is 2525 Ridgmar Blvd., Ft. Worth, Texas 76116.

RECITALS

     A. Bank One is the successor-in-interest to The Fort Worth National Bank and is acting not in
its individual corporate capacity but solely as Trustee under that certain San Juan Basin Royalty
Trust Indenture (the “Indenture”), entered into as of November 1, 1980, between Southland
Royalty Company and The Fort Worth National Bank.

     B. Bank One, as successor-in-interest to The Fort Worth National Bank, owns that net
overriding royalty interest or “Royalty Interest” in the “Minerals” in the “Subject Lands” as these
terms are defined in that Net Overriding Royalty Conveyance dated November 1, 1980, between
Southland Royalty Company and The Fort Worth National Bank, (the “Conveyance”). recorded as
described in Schedule 1. attached hereto.

     C. TexasBank has succeeded Bank One effective as of September 30, 2002, as Trustee of the San
Juan Basin Royalty Trust. Section 6.05 of the Indenture provides that immediately upon the
appointment of any successor Trustee, all rights, titles, duties, powers and authority of the
succeeded trustee shall be vested in and undertaken by the successor Trustee which shall be
entitled to receive from the Trustee which it succeeds all of the Trust Estate held by it under the
Indenture and all records and files in connection therewith.

     D. TexasBank has requested Bank One to assign to it all of Bank One’s interests in the Royalty
Interest under the Conveyance.

ASSIGNMENT

     Now, therefore, for Ten Dollars and other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged by Bank One:

     1. Bank One hereby sells, assigns, transfers, grants, bargains, delivers and conveys to
TexasBank all of Bank One’s right, title and interest in (a) the Royalty Interest and any other
rights, title and interests held by Bank One under the Conveyance, including without limitation,

1

 

any such right, title and interest in the Minerals in and under the Subject Lands as described in
the Conveyance; and (b) the Trust Estate, as that term is defined in the Indenture.

     2. Bank One warrants title to the Royalty Interest from and against all persons claiming by,
through and under Bank One, but not otherwise, and except for that warranty, this Assignment is
made without warranty of any kind, express, implied or statutory.

     3. This Assignment is made with full substitution and subrogation of TexasBank in and to all
covenants of warranty by others heretofore given or made with respect to the Royalty Interest or
any part thereof or interest therein.

     4. This Assignment is being executed in several counterparts, all of which are identical. All
of such counterparts shall constitute one and the same instrument.

     The Effective Date of this Assignment is 7:00 a.m. Mountain Daylight Time on September 30,
2002.

	 	 	 	 	 	 	 
	ATTEST:	 	 	 	BANK ONE, N.A.
	 
	 	 	 	 	 	 
	/s/
[ILLEGIBLE]

	 	 	 	By:
	 	/s/ Lee Ann Anderson
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	ATTEST:	 	 	 	TEXASBANK
	 
	 	 	 	 	 	 
	/s/
Mary Beth Smith
 

	 	 	 	By:
	 	/s/ [ILLEGIBLE]
  

	 	 	 	 	 	 	 	 	 
	THE STATE OF TEXAS 

	 	 	)	 	 	 	 	 
	 

	 	 	)	 	 	 
	 	 
	COUNTY OF TARRANT

	 	 	)	 	 	 	 	 

     The
foregoing instrument was acknowledged before me this 30 day of
September, 2002 by Lee Ann Anderson, Vice President of Bank One, N.A., a national banking association, on behalf of said association.

     GIVEN UNDER MY HAND AND SEAL OF OFFICE, this the 30 day of September, 2002.

	 	 	 
	 

	 	/s/ Kelly Purcell
	 

	 	 
	 

	 	Notary Public in and for Tarrant Country, Texas

	 	 	 
	My commission Expires:

5/14/05

	 	

2

 

	 	 	 	 	 	 	 	 	 
	THE STATE OF TEXAS

	 	 	)	 	 	 	 	 
	 

	 	 	)	 	 	 
	 	 
	COUNTY OF TARRANT

	 	 	)	 	 	 	 	 

     The
foregoing instrument was acknowledged before me this 30 day of
September, 2002 by WP Cranz, Exec. Vice President,
of TexasBank, a state banking corporation, on behalf of said corporation.

     GIVEN UNDER MY HAND AND SEAL OF OFFICE, this the 30 day of September, 2002.

	 	 	 
	 

	 	/s/ Kelly Purcell
	 

	 	 
	 

	 	Notary Public in and for Tarrant County, Texas

My Commission Expires:

5/14/05

	 	 	 
	This instrument prepared by:

J. Scott Hall 

Miller, Stratvert & Torgerson, P.A.

150 Washington Avenue, Suite 300

Santa Fe, New Mexico 87501

(505) 989-9614

	 	

3

 

SCHEDULE 1

Net Overriding Royalty Conveyance (San Juan Basin Royalty Trust) dated November 1, 1980,

	 	 	 	 	 	 	 	 	 
	                    Jurisdiction	 	Book & Page	 	Recording Date
	San Juan County, New Mexico
	 	 	893/236	 	 	November 21, 1980
	Rio Arriba County, New Mexico
	 	 	91/179	 	 	November 12, 1980
	Sandoval County, New Mexico
	 	 	128/303	 	 	November 11, 1980

Schedule-1exv10w4

 

Exhibit 10.4

GUARANTY FINANCIAL GROUP INC. SAVINGS AND RETIREMENT PLAN

(As amended and restated effective January 1, 2008)

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	ARTICLE 1 DEFINITIONS	 	 	4	 
	 
	 	1.1	 	“Accounts”	 	 	4	 
	 
	 	1.2	 	“Account Balance”	 	 	4	 
	 
	 	1.3	 	“Active Funds”	 	 	4	 
	 
	 	1.4	 	“Actual Deferral Percentage”	 	 	4	 
	 
	 	1.5	 	“Affiliate Plan”	 	 	5	 
	 
	 	1.6	 	“After Tax Contributions”	 	 	5	 
	 
	 	1.7	 	“After Tax Contributions Account”	 	 	5	 
	 
	 	1.8	 	“Approved Absence”	 	 	5	 
	 
	 	1.9	 	“Automatic Contribution Arrangement”	 	 	6	 
	 
	 	1.10	 	“Automatic Contribution Employee”	 	 	6	 
	 
	 	1.11	 	“Automatic Contribution Participant”	 	 	6	 
	 
	 	1.12	 	“Automatic Increase Participant”	 	 	6	 
	 
	 	1.13	 	“Average Contribution Percentage” means	 	 	6	 
	 
	 	1.14	 	“Before Tax Contributions”	 	 	7	 
	 
	 	1.15	 	“Before Tax Contributions Account”	 	 	7	 
	 
	 	1.16	 	“Borrower”	 	 	8	 
	 
	 	1.17	 	“Code”	 	 	8	 
	 
	 	1.18	 	“Common Stock”	 	 	8	 
	 
	 	1.19	 	“Common Stock Fund”	 	 	8	 
	 
	 	1.20	 	“Company”	 	 	8	 
	 
	 	1.21	 	“Company Retirement Contributions”	 	 	8	 
	 
	 	1.22	 	“Company Retirement Contributions Account”	 	 	8	 
	 
	 	1.23	 	“Compensation”	 	 	8	 
	 
	 	1.24	 	“Contributing Participant”	 	 	9	 
	 
	 	1.25	 	“Distribution Event”	 	 	9	 

i

 

	 	 	 	 	 	 	 	 	 
	 
	 	1.26	 	“Eligible Borrower”	 	 	9	 
	 
	 	1.27	 	“Eligible Employee”	 	 	9	 
	 
	 	1.28	 	“Employee”	 	 	10	 
	 
	 	1.29	 	“Employee Matters Agreement”	 	 	10	 
	 
	 	1.30	 	“Employer”	 	 	10	 
	 
	 	1.31	 	“Employer Matching Contributions”	 	 	10	 
	 
	 	1.32	 	“Employer Matching Contributions Account”	 	 	10	 
	 
	 	1.33	 	“ERISA”	 	 	10	 
	 
	 	1.34	 	“Forestar”	 	 	10	 
	 
	 	1.35	 	“Forestar Common Stock”	 	 	10	 
	 
	 	1.36	 	“Forestar Plan”	 	 	10	 
	 
	 	1.37	 	“Forestar Stock Fund”	 	 	10	 
	 
	 	1.38	 	“Funds”	 	 	10	 
	 
	 	1.39	 	“Group”	 	 	11	 
	 
	 	1.40	 	“Guaranty Common Stock”	 	 	11	 
	 
	 	1.41	 	“Guaranty Stock Fund”	 	 	11	 
	 
	 	1.42	 	“Highly Compensated Employee”	 	 	11	 
	 
	 	1.43	 	“Hour of Service”	 	 	11	 
	 
	 	1.44	 	“Inactive Participant”	 	 	12	 
	 
	 	1.45	 	“Investment Committee”	 	 	12	 
	 
	 	1.46	 	“Loan”	 	 	12	 
	 
	 	1.47	 	“Merged Plan”	 	 	12	 
	 
	 	1.48	 	“Merger Date”	 	 	12	 
	 
	 	1.49	 	“Months of Participation”	 	 	12	 
	 
	 	1.50	 	“Non-Highly Compensated Employee”	 	 	13	 
	 
	 	1.51	 	“Non-Residential Loan”	 	 	13	 
	 
	 	1.52	 	“Notice”	 	 	13	 
	 
	 	1.53	 	“One Year Break in Service”	 	 	13	 

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	 	1.54	 	“Participant”	 	 	13	 
	 
	 	1.55	 	“Participant Loan Subaccount”	 	 	13	 
	 
	 	1.56	 	“Period of Separation”	 	 	13	 
	 
	 	1.57	 	“Period of Service”	 	 	14	 
	 
	 	1.58	 	“Period of Severance”	 	 	17	 
	 
	 	1.59	 	“Plan”	 	 	17	 
	 
	 	1.60	 	“Plan Administrator”	 	 	17	 
	 
	 	1.61	 	“Plan Year”	 	 	17	 
	 
	 	1.62	 	“Profit Sharing Contributions”	 	 	17	 
	 
	 	1.63	 	“Profit Sharing Contributions Account”	 	 	17	 
	 
	 	1.64	 	“Qualified Nonelective Contributions”	 	 	17	 
	 
	 	1.65	 	“Qualified Nonelective Contributions Account”	 	 	17	 
	 
	 	1.66	 	“Required Beginning Date”	 	 	17	 
	 
	 	1.67	 	“Residential Loan”	 	 	18	 
	 
	 	1.68	 	“Rollover Account”	 	 	18	 
	 
	 	1.69	 	“Rollover Contributions”	 	 	18	 
	 
	 	1.70	 	“Section 414(n) Leased Employee”	 	 	18	 
	 
	 	1.71	 	“Section 414 Compensation”	 	 	18	 
	 
	 	1.72	 	“Section 415 Compensation”	 	 	19	 
	 
	 	1.73	 	“Severance from Service Date”	 	 	20	 
	 
	 	1.74	 	“Stock Fund”	 	 	20	 
	 
	 	1.75	 	“Subaccounts”	 	 	20	 
	 
	 	1.76	 	“Temple-Inland Common Stock”	 	 	20	 
	 
	 	1.77	 	“Temple-Inland Savings Plan”	 	 	20	 
	 
	 	1.78	 	“Temple-Inland Stock Fund”	 	 	20	 
	 
	 	1.79	 	“Trust Agreement”	 	 	20	 
	 
	 	1.80	 	“Trust Fund”	 	 	21	 
	 
	 	1.81	 	“Trustee”	 	 	21	 

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	 	1.82	 	“Valuation Date”	 	 	21	 
	ARTICLE 2 ELIGIBILITY AND PARTICIPATION	 	 	21	 
	 
	 	2.1	 	Participation.	 	 	21	 
	 
	 	2.2	 	Enrollment as a Contributing Participant.	 	 	23	 
	 
	 	2.3	 	No Participation by Non-Covered Employees.	 	 	25	 
	ARTICLE 3 PARTICIPANT CONTRIBUTIONS	 	 	25	 
	 
	 	3.1	 	Before Tax Contributions.	 	 	25	 
	 
	 	3.2	 	Suspension of Contributions.	 	 	25	 
	 
	 	3.3	 	Changes in Contribution Elections.	 	 	26	 
	 
	 	3.4	 	Payment of Contributions.	 	 	26	 
	 
	 	3.5	 	No Make-Up of Contributions.	 	 	26	 
	 
	 	3.6	 	Limitations on Before Tax Contributions.	 	 	26	 
	 
	 	3.7	 	Rollovers.	 	 	30	 
	ARTICLE 4 EMPLOYER CONTRIBUTIONS	 	 	30	 
	 
	 	4.1	 	Matching Contributions.	 	 	30	 
	 
	 	4.2	 	Profit Sharing Contributions.	 	 	32	 
	 
	 	4.3	 	Qualified Nonelective Contributions.	 	 	32	 
	 
	 	4.4	 	Reinstatement of Forfeited Account Balances; Payment of Administrative Expenses.	 	 	33	 
	 
	 	4.5	 	Limitations on Contributions.	 	 	33	 
	 
	 	4.6	 	Limitations on After Tax Contributions and Employer Matching Contributions.	 	 	33	 
	ARTICLE 5 ACCOUNTS	 	 	37	 
	 
	 	5.1	 	Maintenance of Accounts.	 	 	37	 
	 
	 	5.2	 	Adjustments to Accounts; Statements Provided to Participants.	 	 	37	 
	ARTICLE 6 VESTING AND FORFEITURES	 	 	37	 
	 
	 	6.1	 	Before Tax Contributions, After Tax
Contributions, Qualified Nonelective Contributions and Rollover Accounts.	 	 	37	 
	 
	 	6.2	 	Vesting of Company Retirement Contributions Account.	 	 	37	 

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	 	6.3	 	Vesting of Employer Matching
Contributions Account and Profit Sharing Contributions Account.	 	 	38	 
	 
	 	6.4	 	Forfeitures.	 	 	40	 
	 
	 	6.5	 	Determination of Period of Service.	 	 	40	 
	ARTICLE 7 INVESTMENT OF CONTRIBUTIONS	 	 	41	 
	 
	 	7.1	 	Investment Funds.	 	 	41	 
	 
	 	7.2	 	Inactive Funds.	 	 	41	 
	 
	 	7.3	 	Loan Fund.	 	 	42	 
	 
	 	7.4	 	Investment of Employer and Participant Contributions.	 	 	42	 
	 
	 	7.5	 	Change in Investment Elections.	 	 	42	 
	 
	 	7.6	 	Change in Existing Investments.	 	 	43	 
	 
	 	7.7	 	Voting of Stock Fund Shares (for Periods Prior to January 1, 2010).	 	 	43	 
	 
	 	7.8	 	Tender or Exchange Offers (for Periods Prior to January 1, 2010).	 	 	44	 
	 
	 	7.9	 	Confidentiality (for Periods Prior to January 1, 2010).	 	 	44	 
	ARTICLE 8 WITHDRAWALS DURING EMPLOYMENT	 	 	45	 
	 
	 	8.1	 	Withdrawal of After Tax Contributions.	 	 	45	 
	 
	 	8.2	 	Withdrawals After Age 591/2.	 	 	45	 
	 
	 	8.3	 	Withdrawal of Employer Matching Contributions.	 	 	45	 
	 
	 	8.4	 	Hardship Withdrawals.	 	 	45	 
	 
	 	8.5	 	Withdrawal of Rollover Accounts.	 	 	48	 
	 
	 	8.6	 	Withdrawals of Certain Default Before Tax Contributions.	 	 	48	 
	 
	 	8.7	 	Application for Withdrawals; Processing.	 	 	48	 
	 
	 	8.8	 	Limit on Number of Withdrawals.	 	 	49	 
	 
	 	8.9	 	Effect of Withdrawals on Investments.	 	 	49	 
	 
	 	8.10	 	Timing and Form of Payment of Withdrawals.	 	 	49	 
	 
	 	8.11	 	Withdrawals Only Available to Employees.	 	 	49	 
	ARTICLE 9 PAYMENT OF BENEFITS	 	 	49	 
	 
	 	9.1	 	Distribution of Benefits Upon Occurrence of Distribution Event.	 	 	49	 

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	 	9.2	 	Payment of Benefits by Trustee; Form of Payment.	 	 	50	 
	 
	 	9.3	 	Installment Option for Certain Retiring Participants.	 	 	51	 
	 
	 	9.4	 	Required Minimum Distributions.	 	 	51	 
	 
	 	9.5	 	Payment to Participant’s Estate.	 	 	52	 
	 
	 	9.6	 	Incapacity of Payee.	 	 	52	 
	 
	 	9.7	 	Plan Administrator Determines Payee.	 	 	52	 
	 
	 	9.8	 	Rollover Distributions.	 	 	52	 
	 
	 	9.9	 	Distributions Pursuant to Qualified Domestic Relations Orders.	 	 	54	 
	ARTICLE 10 LOANS	 	 	54	 
	 
	 	10.1	 	Availability of Loans; Application for Loans.	 	 	54	 
	 
	 	10.2	 	Terms of Loans.	 	 	55	 
	 
	 	10.3	 	Events of Default.	 	 	57	 
	 
	 	10.4	 	Accounting for Loans.	 	 	58	 
	ARTICLE 11 ADMINISTRATION OF THE PLAN	 	 	58	 
	 
	 	11.1	 	Authority of Plan Administrator.	 	 	58	 
	 
	 	11.2	 	Claims Procedure.	 	 	59	 
	 
	 	11.3	 	Financial Statements.	 	 	61	 
	 
	 	11.4	 	Liability of Plan Administrator.	 	 	61	 
	 
	 	11.5	 	Standard of Judicial Review of Plan Administrator Action.	 	 	61	 
	ARTICLE 12 MANAGEMENT OF THE TRUST FUND	 	 	62	 
	 
	 	12.1	 	Designation of Trustee.	 	 	62	 
	 
	 	12.2	 	Plan Assets Held in Trust.	 	 	62	 
	 
	 	12.3	 	Appointment of Investment Manager.	 	 	63	 
	ARTICLE 13 AMENDMENT OF THE PLAN	 	 	64	 
	 
	 	13.1	 	Amendment.	 	 	64	 
	ARTICLE 14 DISCONTINUANCE OF THE PLAN	 	 	66	 
	 
	 	14.1	 	Right To Terminate Plan.	 	 	66	 
	 
	 	14.2	 	Valuation of Trust Fund upon Termination.	 	 	66	 

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	 	14.3	 	Continuation of Trust.	 	 	66	 
	 
	 	14.4	 	Plan Mergers and Transfers of Assets and Liabilities.	 	 	66	 
	 
	 	14.5	 	Certain Spin-Offs and Mergers.	 	 	68	 
	ARTICLE 15 STATEMENT OF INTENT	 	 	68	 
	 
	 	15.1	 	Qualification.	 	 	68	 
	 
	 	15.2	 	Section 404(c) of ERISA.	 	 	69	 
	 
	 	15.3	 	Responsibility of Named Fiduciaries.	 	 	69	 
	 
	 	15.4	 	Legal Rights and Liabilities.	 	 	69	 
	ARTICLE 16 TOP-HEAVY RULES	 	 	70	 
	 
	 	16.1	 	Applicability of Rules.	 	 	70	 
	 
	 	16.2	 	Determination of Top-Heavy Status.	 	 	70	 
	 
	 	16.3	 	Determination of Accrued Benefits.	 	 	71	 
	 
	 	16.4	 	Vesting for Top-Heavy Years.	 	 	72	 
	 
	 	16.5	 	Contributions for Top-Heavy Years.	 	 	72	 
	 
	 	16.6	 	Certain Changes Effective January 1, 2002.	 	 	73	 
	ARTICLE 17 GENERAL PROVISIONS	 	 	75	 
	 
	 	17.1	 	Nonalienation of Benefits.	 	 	75	 
	 
	 	17.2	 	No Right to Continued Employment.	 	 	75	 
	 
	 	17.3	 	Rules of Construction.	 	 	76	 
	 
	 	17.4	 	Appendices.	 	 	76	 
	ARTICLE 18 LAPSED BENEFITS	 	 	76	 
	 
	 	18.1	 	Notification to Participants and Beneficiaries.	 	 	76	 
	 
	 	18.2	 	Reinstatement of Lapsed Benefits.	 	 	77	 
	APPENDIX I	 	 	1	 
	APPENDIX II	 	 	2	 
	KNUTSON MORTGAGE CORPORATION APPENDIX	 	 	4	 
	STOCKTON SAVINGS BANK APPENDIX	 	 	1	 
	WESTERN CITIES MORTGAGE CORPORATION APPENDIX	 	 	1	 

vii

 

	 	 	 	 	 	 	 	 	 
	TEXAS NATIONAL AGENCY, INC. APPENDIX	 	 	1	 
	HEMET FEDERAL SAVINGS AND LOAN ASSOCIATION APPENDIX	 	 	1	 
	MINIMUM DISTRIBUTION APPENDIX	 	 	1	 

APPENDICES

viii

 

GUARANTY FINANCIAL GROUP INC. SAVINGS AND RETIREMENT PLAN

     This Plan was originally adopted effective as of April 1, 1989 and was named the “Guaranty
Savings Plan.”

     Effective January 1, 1992 the Plan was re-named the “Temple-Inland Financial Services Savings
and Retirement Plan” and was amended and restated to provide for participating employers to make
retirement contributions to the Plan on behalf of eligible employees and to make certain other
changes.

     Effective as of July 1, 1993, the Temple-Inland Food Service Corporation Savings and
Retirement Plan (the “Food Service Plan”) was merged into the Plan.

     Effective July 1, 1993, the Plan was amended and restated to reflect the merger of the Food
Service Plan into the Plan, re-name the Plan the “Temple-Inland Savings and Retirement Plan,”
change the investment options available under the Plan, authorize Participants to make after tax
contributions, authorize the Plan Administrator to make Plan loans to participants, and make
certain other changes.

     Effective December 30, 1994, the Plan was amended and restated to reflect the merger of the
American Federal Bank, F.S.B. Capital Accumulation and Cap-Plus Plan into this Plan as of December
30, 1994 and to make certain other changes.

     Effective as of January 1, 1995, the Plan was amended and restated to eliminate the ability of
Participants to make certain hardship withdrawals.

     Effective September 2, 1995 the Plan was amended to (a) authorize the contribution by
Employers of “qualified nonelective contributions,” (b) provide for the treatment of Employees who
are represented by United Paperworkers International Union Local 654, (c) increase the maximum
amount of Employer Matching Contributions that may be credited for any Plan Year on behalf of
salaried and nonunion Employees of Temple-Inland Food Service Corporation, (d) provide for three
new investment fund options, and (e) make certain other changes.

     Effective January 1, 1996, the Plan was amended and restated to make certain changes in
response to comments made by the IRS in connection with a determination letter request filed with
respect to the Plan and make certain other changes. The amendments made by such amendment and
restatement were effective as of January 1, 1996, except that the amendments made to Sections 1.4,
1.14, 1.22, 1.36, 1.57, 3.6 and 4.6 as of such date were effective as of January 1, 1987.

 

 

     The Plan was amended and restated effective May 1, 1997 to (a) allow cash rollover
contributions to the Plan, (b) allow the Plan Administrator to provide for the use by Participants
of telephonic or other means of communication to make elections, (c) make certain changes relating
to the merger of other plans into this Plan, (d) incorporate prior amendments made to the Plan, and
(e) make certain other changes, including changes made to reflect recent legislation. The
amendments made by such amendment and restatement were effective as of May 1, 1997, except that the
amendments made to the definition of “Highly Compensated Employee” and Sections 3.6 and 4.6 were
effective as of January 1, 1997, the amendments made to Section 3.7 were effective April 1, 1997,
the amendment of Appendix I was effective as of October 27, 1997, and the deletion of former
Appendix III was effective as of April 30, 1997.

     The Plan was amended and restated effective March 1, 2000 to (a) increase the maximum amount
of Employer Matching Contributions that may be made hereunder on behalf of any Participant during
any Plan Year, and (b) to make certain other changes. The amendments made by such amendment and
restatement were, except as provided therein, effective as of March 1, 2000, except that the
amendments made to Sections 2.1, 3.2, 4.2, 4.5, 7.5 and 7.6 were effective as of January 1, 2000.

     The Plan was amended and restated effective December 1, 2001 to reflect changes in applicable
law made by the Economic Growth and Tax Relief Reconciliation Act of 2001 and to make certain other
changes. The amendments made by such amendment and restatement were effective as of December 1,
2001, except as otherwise provided therein.

     The Plan was amended and restated effective September 1, 2004, to reflect changes to the
Plan’s provisions relating to the Funds offered under the Plan and to make certain other changes.

     The Plan was amended and restated effective January 1, 2006, to reflect changes in the
Treasury Regulations under Sections 401(k) and
401(m) of the Code and to make certain other
changes. The amendments made by such amendment and restatement were effective January 1, 2006,
unless otherwise provided herein.

     The Plan was amended and restated effective January 1, 2007, (i) to change the vesting
schedule for Company Retirement Contributions from a five (5)-year cliff vesting schedule to a
three (3)-year graduated vesting schedule, and (ii) to permit a non-spouse beneficiary to elect a
Direct Rollover of certain distributions hereunder.

2

 

     The Plan was amended effective December 1, 2007, to add Target Retirement Funds as investment
funds under Article 7 hereof.

     The Plan was amended and restated effective January 1, 2008, (i) to provide for the full
vesting of the Employer Matching Contributions Accounts and Company Retirement Contributions
Accounts of a Participant whose employment with the Group is designated as terminating as a result
of the Transformation Plan announced by Temple Inland Inc. in a press release dated February 26,
2007; (ii) to eliminate new investments in, but permit transfers out of, the Temple-Inland Stock
Fund, the Guaranty Stock Fund and the Forestar Stock Fund; (iii) to provide for the liquidation the
Temple-Inland Stock Fund, the Guaranty Stock Fund and the Forestar Stock Fund, effective December
31, 2009; (iv) to provide that Employer Matching Contributions and Profit Sharing Contributions
made on behalf of a Participant will be invested in the same investment funds in which the
Participant’s Before Tax Contributions are invested; (v) to comply with the qualified automatic
contribution arrangement requirements of Sections 401(k)(13) and 401(m)(12) of the Code, (vi) to
allow an Automatic Contribution Participant to withdraw certain default Before Tax Contributions;
(vii) to eliminate After-Tax Contributions, (viii) to change the vesting schedule for Employer
Matching Contributions from a three (3)-year graduated schedule to a two (2)-year cliff schedule to
comply with the qualified automatic contribution arrangement requirements of Sections 401(k)(13)
and 401(m)(12) of the Code, (ix) to change the vesting schedule for Company Retirement
Contributions made for Plan Years beginning before January 1, 2008, from a three (3)-year cliff
schedule to a two (2)-year cliff vesting schedule, (x) to change the name of the Plan from the
“Temple-Inland Savings and Retirement Plan” to the “Guaranty Financial Group Inc. Savings and
Retirement Plan,” (xi) to eliminate the mandatory cashout of the vested Accounts of a terminated
Participant who has attained age sixty-five (65), and (xii) to permit a terminated Participant to
commence distributions of his vested Accounts on his Required Beginning Date in periodic
installment payments. The amendments made by such amendment and restatement were effective January
1, 2008, unless otherwise provided herein.

3

 

ARTICLE 1

DEFINITIONS

     As used herein, the following terms shall have the following respective meanings, unless a
different meaning is required by the context:

     1.1 “Accounts”
means, as applicable, a Participant’s Company Retirement Contributions Account, Before Tax
Contributions Account, After Tax Contributions Account, Employer Matching Contributions Account,
Qualified Nonelective Contributions Account, Profit Sharing Contributions Account, Rollover
Account, and the Subaccounts maintained under such Accounts. The Plan Administrator may establish
such additional Accounts and Subaccounts as it may determine in its discretion.

     1.2 “Account Balance”
means the aggregate balance of a Participant’s Accounts.

     1.3 “Active Funds”
means the investment funds listed in Section 7.1 hereof.

     1.4 “Actual Deferral Percentage”
means

          (a) For each Plan Year the average of the ratios (calculated separately for each
Employee) of: (i) the amount of Before Tax Contributions and Qualified Nonelective Contributions
to be paid to the Plan on behalf of an Employee for that Plan Year pursuant to Sections 3.1 and 4.3
hereof, to (ii) that Employee’s Section 414 Compensation for that Plan Year.

          (b) The Actual Deferral Percentage of any Employee who is a Highly Compensated
Employee for a Plan Year and who is eligible to have before tax contributions allocated to his
accounts under two (2) or more plans or arrangements described in Section 401(k) of the Code that
are maintained by the Group shall be determined as if all such before tax contributions were made
under a single plan or arrangement. If such plans or arrangements have different plan years, the
Actual Deferral Percentage of the Highly Compensated Employee shall be determined by aggregating
the before tax contributions made on behalf of the Highly Compensated Employee, and the
compensation (using the definition of compensation set forth in the plan or arrangement being
tested) received by the Highly Compensated Employee, during the plan year of the plan or
arrangement being tested.

4

 

          (c) If the Plan satisfies the requirements of Section 401(a)(4) or Section 410(b) of
the Code only if aggregated with one (1) or more other plans or if one (1) or more other plans
satisfy the requirements of Section 401(a)(4) or Section 410(b) of the Code only if aggregated with
the Plan, the
Actual Deferral Percentages of Employees shall be determined as if all such plans were a
single plan. A plan or arrangement described in Section 401(k) of the Code may be aggregated with
this Plan to satisfy the requirements of Section 410(b) of the Code only if such plan or
arrangement uses the same testing method as this Plan for purposes of satisfying the actual
deferral percentage test of Section 401(k) of the Code.

     1.5 “Affiliate Plan”
means a defined contribution plan (other than this Plan) that is maintained by any member of
the Group and that is intended to be qualified under Section 401(a) of the Code.

     1.6 “After Tax Contributions”
means the voluntary contributions made by a Participant pursuant to Section 3.1 hereof for
Plan Years beginning before January 1, 2008, which are neither deductible for federal income tax
purposes nor reduce a Participant’s taxable income, plus the amount of such contributions made by a
Participant to a Merged Plan that are transferred on behalf of a Participant to this Plan. No
After Tax Contributions shall be made by any Participant for Plan Years beginning after December
31, 2007.

     1.7 “After Tax Contributions Account”
means the separate account maintained for each Participant who has made After Tax
Contributions that accounts for the Participant’s share of the Trust Fund attributable to his After
Tax Contributions.

     1.8 “Approved Absence”
means an Employee’s period of absence occurring by reason of the following events:

          (a) service in the Armed Forces of the United States; provided, however, that the
Employee has re-employment rights under applicable laws and complies with the requirements of such
laws and is re-employed by the Group;

          (b) an approved leave of absence for medical or disability reasons granted to an
Employee pursuant to his Employer’s established personnel rules and policies; or

          (c) any other leave of absence approved by his Employer; provided, however, that no
such leave of absence shall be approved for more than six (6) months in the aggregate.

5

 

     1.9 “Automatic Contribution Arrangement”
means the automatic enrollment and contribution provisions of Sections 2.1(c) and (e), 2.2(b)
and (c) and 4.1 hereof that are intended to constitute a “qualified automatic contribution
arrangement” within the meaning of Treasury Regulation Section 1.401(k)-3(j)(1).

     1.10 “Automatic Contribution Employee”
means any Employee other than an Employee who has an affirmative election in effect (that
remains in effect) on January 1, 2008, to (a) have Before Tax Contributions made on the Employee’s
behalf in a specified percentage of Compensation, or (b) not have Before Tax Contributions made on
the Employee’s behalf. An Employee shall cease to be an Automatic Contribution Employee if the
Employee makes an election (that remains in effect) to (x) have Before Tax Contributions made on
his behalf in a different percentage of Compensation than provided by Sections 2.2(b) and (c)
hereof, or (y) not have any Before Tax Contributions made on his behalf.

     1.11 “Automatic Contribution Participant”
means an Automatic Contribution Employee who becomes a Participant
pursuant to
Section 2.1(c)(ii) hereof.

     1.12 “Automatic Increase Participant”
means (a) each Automatic Contribution Participant, other than an Automatic Contribution
Participant who, by Notice to the Plan Administrator, makes an election (that remains in effect)
not to have the automatic increases provided for by Section 2.2(c) hereof apply to the Participant,
and (b) each other Participant who, by Notice to the Plan Administrator, makes an election (that
remains in effect) to have Section 2.2(c) hereof apply.

     1.13 “Average Contribution Percentage” means

          (a) For each Plan Year, the average of the ratios (calculated separately for each
Employee) of: (i) the sum of the employee contributions and employer matching contributions
(within the meaning of Section 401(m) of the Code) under the Plan on behalf of an Employee for the
relevant Plan Year, to (ii) that Employee’s Section 414 Compensation for the relevant Plan Year.

          (b) The Average Contribution Percentage of any Employee who is a Highly Compensated
Employee for the Plan Year and who is eligible to make employee contributions or to have matching
contributions, qualified nonelective contributions or elective deferrals (as defined in Section
401(m)(4) of the Code) allocated to his account under two (2) or more plans described in

6

 

Section 401(a) of the Code or arrangements described in Section 401(k) of the Code that are
maintained by the Group shall be determined as if all such contributions and deferrals were made
under a single plan. If such plans or arrangements have different plan years, the Average
Contribution Percentage of the Highly Compensated Employee shall be determined by aggregating such
contributions and deferrals made by and/or on behalf of the Highly Compensated Employee, and the
compensation (using the definition of compensation set forth in the plan or arrangement being
tested) received by the Highly Compensated Employee, during the plan year of the plan or
arrangement being tested.

          (c) If the Plan satisfies the requirements of Section 401(a)(4) or Section 410(b) of
the Code only if aggregated with one (1) or more other plans or if one (1) or more other plans
satisfy the requirements of Section 401(a)(4) or Section 410(b) of the Code only if aggregated with
the Plan, the Average Contribution Percentages of Employees shall be determined as if all such
plans were a single plan. A plan may be aggregated with this Plan for purposes of satisfying the
requirements of Section 410(b) of the Code only if such plan uses the same testing method as this
Plan to satisfy the actual contribution percentage test of Section 401(m) of the Code.

          (d) To the extent permitted by regulations promulgated under Section 401(m) of the
Code, the Plan Administrator may elect to take into account “elective deferrals” (within the
meaning of Section 401(m) of the Code) and Qualified Nonelective Contributions, in calculating the
Average Contribution Percentage of Employees.

          (e) To the extent prohibited by Treasury Regulation Section 1.401(m)-2(a)(5), the
Plan Administrator shall not take into account disproportionate matching contributions in
calculating the Average Contribution Percentage of Employees.

     1.14 “Before Tax Contributions”
means the amount of Compensation deferred by a Participant pursuant to Section 3.1 hereof on a
before tax basis, plus the amount of elective deferrals (within the meaning of Section 402(g) of
the Code) that are transferred on behalf of a Participant to this Plan from a Merged Plan.

     1.15 “Before Tax Contributions Account”
means the separate account maintained for each Participant who has made Before Tax
Contributions that accounts for the Participant’s share of the Trust Fund attributable to his
Before Tax Contributions.

7

 

     1.16 “Borrower”
means any person who has an outstanding loan under Article 10 of this Plan.

     1.17 “Code”
means the Internal Revenue Code of 1986, as amended, and shall also include all regulations
promulgated thereunder.

     1.18 “Common Stock”
means Temple-Inland Common Stock, Guaranty Common Stock or Forestar Common Stock, as
applicable.

     1.19 “Common Stock Fund”
means the Temple-Inland Stock Fund, the Guaranty Stock Fund or the Forestar Stock Fund, as
applicable.

     1.20 “Company”
means TIN Inc. d/b/a Temple-Inland and any successor to such corporation by merger, purchase,
or otherwise. Effective December 28, 2007, the term “Company” means the Guaranty Financial Group
Inc., a Delaware Corporation, and any successor to such corporation by merger, purchase, or
otherwise.

     1.21 “Company Retirement Contributions”
means contributions made by an Employer pursuant to former Section 4.1 hereof for Plan Years
beginning before January 1, 2008, plus the amount of any similar contributions (as determined by
the Plan Administrator) that are transferred to this Plan from a Merged Plan on behalf of a
Participant. No Company Retirement Contributions shall be made by the Company for Plan Years
beginning after December 31, 2007.

     1.22 “Company Retirement Contributions Account”
means the separate account for each Participant which shall account for his share of the Trust
Fund attributable to Company Retirement Contributions made on his behalf.

     1.23 “Compensation”
means wages paid by an Employer to an Employee, as reported by the Employer in Box 1 on Form
W-2, and elective deferrals (within the meaning of Section 402(g)(3) of the Code) under any plan
sponsored by the Group, payroll reduction contributions made on a before tax basis under any
cafeteria plan (within the meaning of Section 125 of the Code) or qualified transportation fringe
benefit plan (within the meaning of Section 132(f) of the Code) sponsored by the Group, but
excludes reimbursements or other expense allowances, fringe benefits (cash and noncash), moving
expenses, welfare benefits, deferred compensation, and, in the case of a Highly Compensated
Employee only, stock option income and payments made with respect to performance units or
restricted stock. If for any Plan Year a Participant’s Compensation exceeds the two hundred
thousand dollar ($200,000) (one hundred fifty

8

 

thousand dollar ($150,000) for Plan Years beginning
before January 1, 2002) limitation imposed by Section 401(a)(17) of the Code, as adjusted as
provided therein, such excess amount shall not be taken into account for such Plan Year for
purposes of this Section or any other provision of the Plan. Notwithstanding the foregoing, the
definition of the term “Compensation” under this Section 1.23 is a safe harbor definition of
compensation set forth in Treasury Regulations Section 1.414(s)-1(c)(3), as modified by Treasury
Regulations Sections 1.414(s)-1(c)(4) and (5), and does not include any compensation amount that is
not Section 415 Compensation.

     1.24 “Contributing Participant”
shall mean a Participant who elects to make Before Tax Contributions to the Plan pursuant to
Article 3 hereof.

     1.25 “Distribution Event”
means, with respect to a Participant: (a) the Participant’s retirement, death, disability, or
severance from employment (separation from service, for periods prior to January 1, 2002) with the
Group; or (b) the sale or other disposition by any member of the Group to an unrelated corporation
of all or substantially all of the assets used in a trade or business, but only with respect to a
Participant who continues employment with the acquiring corporation and the acquiring corporation
does not maintain the Plan after the disposition; (c) the sale or other disposition by any member
of the Group of its interest in a subsidiary to an unrelated entity but only with respect to a
Participant who continues employment with the subsidiary and the acquiring entity does not maintain
the Plan after the disposition; and (d) the termination
of the Plan without establishment or maintenance of an alternative defined contribution plan
(as defined in Treasury Regulation Section 1.401(k) — 1(d)(4)); provided however, that the
preceding clauses (b) and (c) shall not apply on and after January 1, 2002. Notwithstanding the
foregoing, if a Participant has a change in job status from Employee to Section 414(n) Leased
Employee, such change in job status shall not constitute a Distribution Event.

     1.26 “Eligible Borrower”
means any Participant who has an Account Balance under this Plan or any alternate payee who
has a right to an Account Balance under this Plan, provided that such Participant or alternate
payee is a “party in interest” (within the meaning of Section 3(14) of ERISA).

     1.27 “Eligible Employee”
means an Employee who is an active Employee on the December 31 of a Plan Year for which his
Employer makes a Profit Sharing Contribution hereunder.

9

 

     1.28 “Employee”
means a person who is employed by an Employer on a salaried, salaried plus commission,
commission-only or hourly basis and who is not covered by a collective bargaining agreement entered
into with an Employer, unless such agreement, by specific reference to the Plan provides for
coverage under the Plan.

     1.29 “Employee Matters Agreement”
means the Employee Matters Agreement by and among Temple-Inland Inc., Forestar and the Company
entered into pursuant to the Transformation Plan announced by Temple Inland Inc. in a press release
dated February 26, 2007.

     1.30 “Employer”
means each of the entities listed on Appendix I hereto, subject to such limitations or
restrictions as to participation by employees of such entities as may be reflected on such Appendix
I.

     1.31 “Employer Matching Contributions”
means the contributions made by an Employer pursuant to Section 4.1 hereof, plus the amount of
any employer matching contributions (within the meaning of Section 401(m)(4) of the Code)
transferred on behalf of a Participant to this Plan from a Merged Plan.

     1.32 “Employer Matching Contributions Account”
means the separate account for each Participant which shall account for his share of the Trust
Fund attributable to any Employer Matching Contributions made or transferred to this Plan on his
behalf.

     1.33 “ERISA”
means the Employee Retirement Income Security Act of 1974, as now in effect or hereafter
amended and shall also include all regulations promulgated thereunder.

     1.34 “Forestar”
means Forestar Real Estate Group Inc., a Delaware Corporation.

     1.35 “Forestar Common Stock”
means common stock, par value one dollar ($1.00) per share, of Forester.

     1.36 “Forestar Plan”
means the Forestar Savings and Retirement Plan maintained by Forestar.

     1.37 “Forestar Stock Fund”
means an investment fund hereunder invested in Forestar Common Stock.

     1.38 “Funds”
means the investment funds provided for by Sections 7.1 and 7.2 hereof.

10

 

     1.39 “Group”
means the Company, and any entity that is treated as a single employer together with the
Company pursuant to
Sections 414(b), 414(c) or 414(m) of the Code or is required to be aggregated
with the Company pursuant to regulations under Section 414(o) of the Code. For the purpose under
the Plan of determining the Period of Service of a Participant, each entity shall be included in
the Group only for such period or periods during which it is treated as a single employer together
with the Company pursuant to Sections 414(b), 414(c) or 414(m) of the Code or is required to be
aggregated with the Company pursuant to regulations under Section 414(o) of the Code, except as
provided in Section 1.57 hereof.

     1.40 “Guaranty Common Stock”
means common stock, par value one dollar ($1.00) per share, of the Company.

     1.41 “Guaranty Stock Fund”
means an investment fund hereunder invested in Guaranty Common Stock.

     1.42 “Highly Compensated Employee”
means any Employee who, with respect to the Group, is described in either clauses (a) or (b)
below:

          (a) Was a “5-percent owner” (as described in Section 414(q) of the Code) at any time
during the Plan Year or the twelve (12) month period preceding the Plan Year (the “Lookback Year”);
or

          (b) Received Section 415 Compensation from the Group in excess of eighty thousand
dollars ($80,000) (as adjusted for cost-of-living increases) for the Lookback Year and was in the
group of employees for such year consisting of the top twenty percent of employees when ranked on
the basis of Section 415 Compensation during such year.

     1.43 “Hour of Service”
means

          (a) An hour for which an employee is paid, or entitled to payment, for the
performance of duties for any member of the Group. Such hours will be credited to the employee for
the computation period in which the duties are performed; and

          (b) An hour for which an employee is paid, or entitled to payment, by any member of
the Group on account of a period of time during which no duties are performed (irrespective of
whether

11

 

the employment relationship has terminated) due to vacation, holiday, illness, incapacity
(including disability), layoff, jury duty, military duty or leave of absence. Hours under this
paragraph will be calculated and credited pursuant to Section 2530.200b-2 of the Department of
Labor Regulations which is incorporated herein by reference; and

          (c) An hour for which back pay, irrespective of mitigation of damages, is either
awarded or agreed to by any member of the Group. An hour of service will not be credited both
under (a) or (b), as the case may be, and under this subsection (c). Such hours will be credited
to employees for the computation period or periods to which the award or agreement pertains rather
than the computation period in which the award, agreement or payment is made.

          (d) Hours of service shall be credited for any individual considered to be a Section
414(n) Leased Employee.

     1.44 “Inactive Participant”
means a Participant who is employed by the Group, but who is not an Employee.

     1.45 “Investment Committee”
means the Guaranty Financial Group Inc. Investment Committee, as appointed by the Board of
Directors of the Company.

     1.46 “Loan”
means a loan made pursuant to Article 10 hereof or that is treated as a Loan pursuant to
Section 10.2(j) hereof

     1.47 “Merged Plan”
means a tax-qualified defined contribution plan that is merged into this Plan or from which
account balances are transferred (other than pursuant to a rollover) to this Plan, in either case
with the consent of the Board of Directors or Chief Executive Officer of the Company.

     1.48 “Merger Date”
means the date as of which a Merged Plan is merged into this Plan or as of which account
balances are transferred to this Plan from a Merged Plan, as designated by the Plan Administrator.

     1.49 “Months of Participation”
means the number of calendar months (with partial months being counted as full months) during
the period beginning on (a) the date on which an Employee provides Notice to the Plan Administrator
electing to make Before Tax Contributions (or After Tax Contributions for Plan Years beginning
before January 1, 2008) hereunder, or (b) in the case of an Automatic Contribution Employee, the
day after the expiration of the election period set forth in Section 2.2(b)(ii) hereof, and

12

 

ending
on the date the Participant ceases to be employed by any member of the Group. If the Plan
Administrator determines that there are insufficient records to determine a Participant’s Months of
Participation pursuant to the foregoing provisions of this Section 1.49, the Plan Administrator may
determine a Participant’s Months of Participation using such methods and assumptions as it
determines necessary or appropriate in its sole discretion, provided that such methods and
assumptions are applied in a consistent and nondiscriminatory
manner to similarly situated Participants. In the case of a Participant described in Section
1.57(b)(ii), (iv) or (xi) hereof, the Participant’s Months of Participation shall include the
Participant’s “months of participation” in the Merged Plan, the Temple-Inland Savings Plan or the
Forestar Plan, as applicable.

     1.50 “Non-Highly Compensated Employee”
means, with respect to a Plan Year, an Employee who is eligible to participate in the Plan
pursuant to Article 2 hereof and who is not a Highly Compensated Employee.

     1.51 “Non-Residential Loan”
means any Loan that is not a Residential Loan.

     1.52 “Notice”
means a notice, application or request provided by a Participant to a designated party in such
form (which may be written, telephonic, electronic, or another means of communication) as may be
specified by the party to receive such Notice.

     1.53 “One Year Break in Service”
means a consecutive twelve (12) month Period of Severance during which an Employee does not
perform an Hour of Service and is not on an Approved Absence.

     1.54 “Participant”
means (a) an Employee who is eligible to participate in the Plan under Article 2 hereof, and
(b) except for purposes of Articles 2 (other than Section 2.1(f) and 2.3), 3, 4, 8, 9, and 16
hereof, any person on whose behalf an Account is maintained under the Plan.

     1.55 “Participant Loan Subaccount”
means the separate Subaccount maintained for each Participant who has an outstanding Loan and
to which the promissory note evidencing any such Loan shall be allocated.

     1.56 “Period of Separation”
means a period of time commencing with the date a person separates from service with the Group
and ending with the date that person resumes employment with the Group.

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     1.57 “Period of Service”
means

          (a) The period commencing on the date a person is credited with an Hour of Service
after April 1, 1989, and ending on the date a Period of Severance begins, including any Period of
Separation of less than twelve (12) consecutive months. The determination of a Participant’s
Period of Service shall be subject to the rules set forth in Section 6.5 hereof. For purposes of
determining a Participant’s Period of Service, the Severance from Service Date of a Participant who
is absent from service beyond the first anniversary of the first day of absence for maternity or
paternity reasons is the second anniversary of the first day of such absence. The period between
the first and second anniversaries of the first day of absence from work shall be neither a Period
of Service nor a Period of Severance. For purposes of this paragraph, an absence from work for
maternity or paternity reasons means an absence (i) by reason of the pregnancy of the individual,
(ii) by reason of a birth of a child of the individual, (iii) by reason of the placement of a child
with the individual in connection with the adoption of such child by such individual, or (iv) for
purposes of caring for such child for a period beginning immediately following such birth or
placement.

          (b) Notwithstanding Section 1.57(a) hereof:

               (i) For purposes of determining the Period of Service of an Employee who was
employed by an Employer on April 1, 1989, periods of employment by (A) Guaranty Federal Savings and
Loan Association, Dallas, Texas, (B) First Federal Savings and Loan Association of Austin, Austin,
Texas, and (C) Delta Savings Association of Texas, Alvin, Texas, prior to April 1, 1989, shall be
considered service for the Group;

               (ii) The Period of Service of a Participant whose service for vesting purposes under
a Merged Plan was determined on a basis other than hours of service shall include the service
credited under such plan as of its Merger Date (provided that if the Merged Plan was at any time an
Affiliate Plan, no duplication of credited service shall occur);

               (iii) In the case of a Participant who became an Employee (A) on or about September
30, 2000 in connection with the purchase by Guaranty Business Credit Corporation of certain assets
of Capital Factors, Inc., (B) on or about October 2, 2000 in connection with the purchase by
Timberline Insurance Managers, Inc. of certain assets of FG Holdings, Inc., or (C) on or about
January 26,

14

 

2001 in connection with the purchase by Guaranty Business Credit Corporation of certain
assets of Finova Capital Corporation, periods of employment with Capital Factors, Inc., FG
Holdings, Inc., or Finova Capital Corporation, as applicable, prior to the date of becoming an
Employee shall be considered service for the Group for purposes of determining the Participant’s
Period of Service for purposes of Section 6.2 hereof; and

               (iv) The Period of Service of a Participant whose service for vesting purposes under
a Merged Plan was determined based on hours of service shall consist of the following: (A) a
number of years equal to the number of years of service credited to the Participant before the plan
year or other computation period used for determining years of service under the Merged Plan (the
“Computation Period”) during which the Merger Date occurs; (B) the greater of (I) the period of
service that would be credited to the Participant under the elapsed time method for his service
during the entire Computation Period in which the Merger Date occurs, or (II) the service taken
into account for the Computation Period that includes the Merger Date under the hours of service
method as of the Merger Date; and (C) the Period of Service credited to the Participant for service
subsequent to the Merger Date commencing on the day after the last day of the Computation Period in
which the Merger Date occurs.

               (v) The Period of Service of a Participant who became an Employee in connection with
Guaranty Residential Lending, Inc.’s purchase of the assets of Old Kent Mortgage Company from Fifth
Third Bancorp of Cincinnati, Ohio, shall include periods of service credited under the Old Kent
Thrift Plan.

               (vi) A Participant’s Period of Service shall include the Participant’s Period of
Service credited to the Participant under the Joint Venture Master 401(k) Plan maintained by TIN
Inc., except to the extent that the inclusion of such service would result in a duplication of
credited service with respect to any period.

               (vii) For purposes of determining the Period of Service of an Employee who was hired
in connection with that certain Stock Sale Agreement by and between PLM International, Inc. and
Guaranty Bank that closed on or about January 1, 2000, periods of employment with American Finance
Group, Inc. and/or its affiliates shall be considered Service for the Group.

15

 

               (viii) For purposes of determining the Period of Service of an Employee who became
employed by the Group in connection with that certain Asset Purchase Agreement by and among
Guaranty Insurance Services, Inc., TCT Insurance Group, LP, TCT GP, LLC, and TCT Holdings LLP that
closed as of February 1, 2004, periods of employment with TCT Insurance Group, LP and/or its
affiliates shall be considered service for the Group.

               (ix) For purposes of determining the Period of Service of an Employee who became
employed by the Group in connection with that certain Branch Purchase and Assumption Agreement
entered into on July 1, 2004 by and between Pan American Bank, FSB, United PanAm Financial Corp.,
and Guaranty Bank, periods of employment with Pan American Financial and/or its affiliates shall be
considered service for the Group.

               (x) In the case of an individual who became an Employee on or about July 1, 2007, in
connection with the purchase by Guaranty Insurance Services Inc. of certain assets of Hilliard Box
Insurance, periods of employment with Hilliard Box Insurance prior to the date of becoming an
Employee shall be considered service for the Group for purposes of determining the Employee’s
Period of Service for purposes of eligibility to receive allocations of Company Retirement
Contributions hereunder.

               (xi) If a Participant transferred employment to an Employer from Temple-Inland Inc.,
any member of the “Temple-Inland Group” (within the meaning of the Employee Matters Agreement),
Forestar or any member of the “Forestar Group” (within the meaning of the Employee Matters
Agreement) and such employment transfer is covered by the Employee Matters Agreement, the
Participant’s Period of Service shall include the Participant’s “Period of Service” credited to the
Participant under the Temple-Inland Savings Plan or the Forestar Plan, except to the extent that
the inclusion of such service would result in a duplication of credited service with respect to any
period.

               (xii) An Employee’s Period of Service shall include prior service with a corporation
or other entity acquired by any member of the Group or from which any member of the Group acquired
all or a part of the assets of a trade or business to such extent as may be provided by the
agreement pursuant to which the applicable member of the Group acquired such corporation, other
entity, or assets of all or a part of a trade or business.

16

 

     1.58 “Period of Severance”
means a period of time commencing on a person’s Severance from Service Date and ending with
the date that person resumes his employment with the Group.

     1.59 “Plan”
means the Temple-Inland Savings and Retirement Plan. Effective December 28, 2007, the term
“Plan” means the Guaranty Financial Group Inc. Savings and Retirement Plan.

     1.60 “Plan Administrator”
means the individual or committee appointed by the Board of Directors or Chief Executive
Officer of the Company to manage and administer the Plan as provided in Article 11 hereof. The
Plan Administrator shall be a “named fiduciary” for the purposes of Section 402(a)(1) of ERISA,
responsible for the administration, operation and interpretation of the Plan.

     1.61 “Plan Year”
means the calendar year commencing on January 1 and ending on the following December 31.

     1.62 “Profit Sharing Contributions”
means the discretionary profit sharing contributions, if any, made by an Employer for a Plan
Year beginning on or after January 1, 2008, pursuant to Section 4.2 hereof, plus the amount of any
profit sharing contributions transferred on behalf of a Participant to this Plan from a Merged
Plan.

     1.63 “Profit Sharing Contributions Account”
means the separate account for each Participant which shall account for his share of the Trust
Fund attributable to any Profit Sharing Contributions made or transferred to the Plan on the
Participant’s behalf.

     1.64 “Qualified Nonelective Contributions”
means contributions made by an Employer pursuant to Section 4.3 hereof for Plan Years
beginning before January 1, 2008, plus the amount of any qualified nonelective contributions
(within the meaning of Section 401(m)(4)(c) of the Code) transferred on behalf of a Participant to
this Plan from a Merged Plan. No Qualified Nonelective Contributions shall be made by the Company
for Plan Years beginning after December 31, 2007.

     1.65 “Qualified Nonelective Contributions Account”
means the separate account maintained for each Participant who has been allocated Qualified
Nonelective Contributions that accounts for the Participant’s share of the Trust Fund attributable
to Qualified Nonelective Contributions.

     1.66 “Required Beginning Date”
means the later of (a) April 1 of the calendar year following the calendar year in which a
Participant attains age 701/2, or (b) in the case of a Participant who is not a five

17

 

percent (5%)
owner (as defined in Section 416 of the Code) with respect to the Plan Year during which the
Participant attains age 701/2, April 1 of the calendar year following the calendar year in which the
Participant has a severance from employment with the Group.

     1.67 “Residential Loan”
means any Loan that is used to acquire any dwelling unit that within a reasonable period of
time is to be used (determined at the time the loan is made) as the principal residence of the
Eligible Borrower.

     1.68 “Rollover Account”
means the separate account maintained for each Participant which shall account for his share
of the Trust Fund attributable to his Rollover Contributions.

     1.69 “Rollover Contributions”
means rollover contributions made to the Plan pursuant to Section 3.7 hereof plus the amount
of any rollover contributions transferred on behalf of a Participant to this Plan from a Merged
Plan.

     1.70 “Section 414(n) Leased Employee”
means, any person who is not an employee of a recipient of the leased employee’s services
(“recipient”) if (a) such services are provided pursuant to an agreement between the recipient and
any other person (the “leasing organization”), (b) such person has performed such services for the
recipient (or for the recipient and related persons) on a substantially full-time basis for a
period of at least one year, and (c) such services are performed under the primary direction or
control by the recipient.

     1.71 “Section 414 Compensation”
means wages paid by an Employer to an Employee, as reported by an Employer in Box 1 on Form
W-2, plus elective deferrals (within the meaning of Section 402(g)(3) of the Code) under any plan
sponsored by the Group and compensation reduction contributions made on a before tax basis under
any
cafeteria plan (within the meaning of Section 125 of the Code) or qualified transportation
fringe benefit plan (within the meaning of Section 132(f) of the Code) sponsored by any member of
the Group, minus any compensation amount that is not Section 415 Compensation; provided,
however, that the Plan Administrator may elect to (a) use any definition of compensation
permitted under Section 414(s) of the Code and the regulations thereunder for any Plan Year and/or
(b) limit the compensation taken into account with respect to an Employee to that portion of the
Plan Year during which the Employee was eligible to participate in the Plan. In no event may a
Participant’s Section 414 Compensation exceed the two hundred thousand dollar ($200,000) (one
hundred fifty thousand

18

 

dollar ($150,000) for Plan Years beginning before January 1, 2002)
limitation imposed by Section 401(a)(17) of the Code, as adjusted as provided therein.

     1.72 “Section 415 Compensation”
means

          (a) Wages paid to an Employee by an Employer, as reported by an Employer in Box 1 on
Form W-2, plus elective deferrals (within the meaning of Section 402(g)(3) of the Code) under any
plan sponsored by the Group and compensation reduction contributions made on a before tax basis
under any cafeteria plan (within the meaning of Section 125 of the Code) or qualified
transportation fringe benefit plan (within the meaning of Section 132(f) of the Code) sponsored by
any member of the Group. Except as provided herein, Section 415 Compensation for a Plan Year is
the compensation actually paid or made available during such Plan Year. In no event may a
Participant’s Section 415 Compensation exceed the two hundred thousand dollar ($200,000) limitation
imposed by Section 401(a)(17) of the Code, as adjusted as provided therein.

          (b) For Plan Years beginning on and after January 1, 2008, the term “Section 415
Compensation” shall also include compensation paid by the later of 2 1/2 months after a
Participant’s severance from employment with the Group or the end of the Plan Year that includes
the date of the Participant’s severance from employment with the Group if the payment is: (i)
regular compensation for services during the Participant’s regular working hours, or compensation
for services outside the Participant’s regular working hours (such as overtime or shift
differential), commissions, bonuses, or other similar payments, and absent a severance from
employment, the payments would have been paid to the Participant while the Participant continued in
employment with the Group; or (ii) for unused accrued bona
fide sick, vacation or other leave that the Participant would have been able to use if
employment with the Group had continued.

          (c) Any payments not described in Sections 1.72(a) and 1.72(b) hereof shall not be
considered “Section 415 Compensation” if paid after severance from employment with the Group, even
if they are paid by the later of 2 1/2 months after the date of severance from employment or the
end of the Plan Year that includes the date of severance from employment, except (i) payments to an
individual who does not currently perform services for the Group by reason of qualified military
service (within the meaning of Section 414(u)(1) of the Code) to the extent the payments do not
exceed the amounts the

19

 

individual would have received if the individual had continued to perform
services for the Group rather than entering qualified military service, or (ii) compensation paid
to a Participant who is permanently and totally disabled (within the meaning of Section 22(e)(3) of
the Code); provided that salary continuation applies to all Participants who are permanently and
totally disabled for a fixed or determinable period or the Participant was not a Highly Compensated
Employee immediately before becoming disabled.

     1.73 “Severance from Service Date”
means the earlier of:

          (a) the date a person terminates his employment with the Group by reason of
quitting, retirement, death or discharge, or

          (b) the date twelve (12) consecutive months after the date a person remains absent
from service with the Group (with or without pay) for any reason other than quitting, retirement,
death or discharge.

     1.74 “Stock Fund”
means the Temple-Inland Stock Fund, the Guaranty Stock Fund or the Forestar Stock Fund, as
applicable.

     1.75 “Subaccounts”
means the subaccounts established for each Participant that account for the investment of each
Participant’s Accounts in the funds described in Sections 7.1, 7.2 and 10.4 hereof, and for such
other amounts as the Plan Administrator deems it necessary or appropriate to establish a
subaccount.

     1.76 “Temple-Inland Common Stock”
means common stock, par value one dollar ($1.00) per share, of Temple-Inland Inc., a Delaware
Corporation.

     1.77 “Temple-Inland Savings Plan”
means the Temple-Inland Salaried Savings Plan, the Temple-Inland Nonsalaried Savings Plan, the
Temple-Inland Savings Plan for Union Employees, the El Morro Corrugated Box Corporation Savings and
Investment Plan or the Joint Venture Master 401(k) Plan, as applicable, each maintained by TIN Inc.

     1.78 “Temple-Inland Stock Fund”
means common stock, par value one dollar ($1.00) per share, of Temple-Inland Inc., a Delaware
Corporation.

     1.79 “Trust Agreement”
means the agreement between the Company and the Trustee, as provided for in Article 12 hereof,
as the same may hereafter be amended from time to time.

20

 

     1.80 “Trust Fund” means all the assets at any time held under the Plan by the Trustee as provided for in Article
12 hereof.

     1.81 “Trustee” means the trustee or trustees selected by the Plan Administrator which may at any time be
acting as Trustee under the Trust Agreement.

     1.82 “Valuation Date” means (a) the last day of each calendar year that the New York Stock Exchange is open for
trading, and (b) except as otherwise determined by either the Plan Administrator or the Trustee in
its sole discretion and either with or without prior notice to Participants, each other day (or
portion thereof) that the New York Stock Exchange is open for trading.

ARTICLE 2

ELIGIBILITY AND PARTICIPATION

     2.1 Participation.

          (a) Each Employee who was a Participant in this Plan or the Temple-Inland Savings
Plan as of December 27, 2007, and is employed by an Employer on December 28, 2007, shall be a
Participant in this Plan as of December 28, 2007.

          (b) Each Employee who was a Participant in this Plan as of December 31, 2007, and is
employed by an Employer on January 1, 2008, shall be a Participant as of January 1, 2008.

          (c) Each Employee not described in Section 2.1(b) hereof shall become a Participant
as soon as practicable after the earlier of (i) the Employee’s providing Notice to the Plan
Administrator pursuant to Section 2.2 hereof to elect to have Before Tax Contributions made on the
Employee’s behalf in a specified percentage of Compensation, or (ii) in the case of an Automatic
Contribution Employee, the expiration of thirty (30) days from the later of (A) the Employee’s most
recent date of hire as an Employee, or (B) the date the notice described in Section 2.1(e) hereof
is provided to the Employee, unless the Employee has elected, by Notice to the Plan Administrator,
not to have Before Tax Contributions made on his behalf; provided, however, that in
no event shall an Employee become a Participant unless he is an Employee as of the date he would
otherwise become a Participant.

21

 

          (d) Each Employee who does not become a Participant under Section 2.1(a), (b) or (c)
hereof shall become a Participant as of the date on which his Employer makes a Profit Sharing
Contribution, if any, on his behalf pursuant to Section 4.2 hereof.

          (e) Within a reasonable period of time before each Plan Year beginning on or after
January 1, 2008, the Plan Administrator shall provide each Employee a written notice of the
Automatic Contribution Arrangement hereunder, which notice shall include the following information:
(i) the Employee’s rights and obligations under the Automatic Contribution Arrangement, (ii) the
level of Before Tax Contributions that will be made on the Employee’s behalf if the Employee does
not make an affirmative election to make Before Tax Contributions, (iii) the Employee’s right to
elect not to have Before Tax Contributions made on the Employee’s behalf (or to elect to have
Before Tax Contributions made in a different percentage of Compensation than provided in Sections
2.2(b) and 2.2(c) hereof, (iv)
how contributions made by and on the Employee’s behalf under the Automatic Contribution
Arrangement will be invested in the absence of an investment election by the Employee, (v) the
reasonable period of time after receipt of such notice and before the Employee’s first Before Tax
Contribution for such Plan Year under the Automatic Contribution Arrangement during which the
Employee may make contribution and investment elections hereunder, and (vi) the Employee’s right to
withdraw Before Tax Contributions made under the Automatic Contribution Arrangement pursuant to
Section 8.6 hereof, and the procedures to elect such a withdrawal.

          (f) Each Participant shall (i) provide Notice to the Plan Administrator designating
a beneficiary who shall receive any benefits payable pursuant to Section 9.1 hereof in the event of
the death of the Participant, and (ii) agree to the terms of the Plan. A Participant may designate
one or more persons as beneficiary; provided, however, that if more than one (1) person is named,
the Participant shall indicate the shares and precedence of each person. A married Participant’s
spouse shall be deemed to be his beneficiary regardless of any contrary designation on file or
later filed with the Plan Administrator, unless the spouse consents (acknowledging the effect of
such consent) to the designation of a beneficiary other than the spouse and such consent is
witnessed by a notary public or the Plan Administrator. A Participant may change his beneficiary
from time to time by Notice to the Plan Administrator but only with the written consent of his
spouse (witnessed by the Plan Administrator or a notary public), if he has a spouse at such

22

 

time. The consent of a previously designated nonspouse beneficiary shall not be required in any case. In
the event the Participant fails to effectively designate a beneficiary as to any distribution, such
distribution shall be made to such deceased Participant’s spouse (as set forth above) if living, if
not, then to such deceased Participant’s estate.

          (g) Notwithstanding the foregoing provisions of this Section 2.1, in no event shall
(i) an Employee be eligible to become a Participant in this Plan to the extent that becoming a
Participant would cause any plan maintained or formerly maintained by the Group to fail to satisfy
the requirements of Treasury Regulations Section 1.401(k)-1(d), or (ii) any person who is a leased
employee (including a Section 414(n) Leased Employee), a consultant or any other person who is not
classified by an Employer as an employee (not taking into account any retroactive reclassification
of any person as an Employee) be eligible to become a Participant in this Plan.

     2.2 Enrollment as a Contributing Participant. 

          (a) An Employee who is a Participant or who is eligible to become a Participant may
elect to become a Contributing Participant by providing Notice to the Plan Administrator
authorizing the deduction by his Employer of Before Tax Contributions from his Compensation and
specifying the Funds in which his Before Tax Contributions and other amounts shall be invested,
subject to the terms of Article 7 hereof.

          (b) Notwithstanding anything herein to the contrary, an Automatic Contribution
Participant shall be deemed to have elected to contribute to the Plan as Before Tax Contributions
three percent (3%) of the Employee’s Compensation for the period beginning on the date on which the
Participant first becomes an Automatic Contribution Participant and ending on the last day of the
Plan Year next following the Plan Year in which the Participant first becomes an Automatic
Contribution Participant (the “Initial Contribution Period.). An Automatic Contribution
Participant may elect to change or suspend his contribution election at any time in accordance with
Article 3 hereof.

          (c) The percentage of Compensation that an Automatic Increase Participant
contributes to the Plan as Before Tax Contributions shall be increased by one percent (1%)
effective as of the first payroll period beginning on or after January 1 of each Plan Year
beginning after the expiration of the Participant’s Initial Contribution Period; provided,
however, that no increase with respect to an

23

 

Automatic Increase Participant shall occur
pursuant to this Section 2.2(c) if the percentage of Compensation contributed to the Plan by the
Automatic Increase Participant as Before Tax Contributions would exceed ten percent (10%). Unless
an Automatic Contribution Participant elects otherwise by providing Notice to the Plan
Administrator, the Automatic Contribution Participant shall be treated as an Automatic Increase
Participant immediately upon becoming an Automatic Contribution Participant. A Participant who is
not an Automatic Contribution Participant but who has elected to become an Automatic Increase
Participant shall become an Automatic Increase Participant as soon as practicable after the Plan
Administrator receives Notice from the Participant of such election. An Automatic Increase
Participant may elect to cease to be an Automatic Increase Participant at any time by providing
Notice to the Plan Administrator, and such election shall be effective as soon as practicable after
the Plan Administrator’s receipt of such Notice. Notwithstanding the foregoing, the rate of an
Automatic Contribution Participant’s Before Tax Contribution on January 1, 2008, shall not be less than the rate in effect as of
December 31, 2007, unless the Automatic Contribution Participant elects a lower rate.

          (d) The authorizations, designations and elections made pursuant to Section 2.1
hereof and this Section 2.2 shall be deemed to be continuing as to current and succeeding Plan
Years until changed by prior Notice to the Plan Administrator.

          (e) In the case of an Employee who becomes an Employee and a Participant in this
Plan on December 28, 2007, and who immediately prior to becoming a Participant was both employed by
Temple-Inland Inc. or any member of the “Temple-Inland Group” (within the meaning of the Employee
Matters Agreement) and was a participant in the Temple-Inland Savings Plan, such Participant’s (i)
affirmative elections under the applicable foregoing plan with respect to (A) making before tax
contributions, and (B) the investment of contributions made under the applicable foregoing plan on
the Participant’s behalf, and (ii) designation of a beneficiary (or beneficiaries) under the
applicable foregoing plan, shall be treated as if made under, and with respect to, this Plan and
shall continue in effect under this Plan until changed in accordance with the terms of this Plan.

          (f) In the case of an Employee who becomes a Participant in this Plan and who
immediately prior to becoming a Participant was both employed by a member of the Group and was a
participant in a Merged Plan, and, if the Plan Administrator so determines, such Participant’s (i)
affirmative

24

 

elections under the Merged Plan with respect to (A) making before tax contributions,
and (B) the investment of contributions made under the Merged Plan on the Participant’s behalf, and
(ii) designation of a beneficiary (or beneficiaries) under the Merged Plan shall be treated as if
made under, and with respect to, this Plan and shall continue in effect under this Plan until
changed in accordance with the terms of this Plan.

     2.3 No Participation by Non-Covered Employees.

          (a) Notwithstanding any provision of this Plan to the contrary, an Inactive
Participant shall not be eligible to make Before Tax Contributions under Article 3 hereof or be
entitled to any Employer Matching Contributions or Profit Sharing Contributions under Article 4
hereof.

          (b) If an Inactive Participant again becomes an Employee, he (i) may elect to resume
making Before Tax Contributions by giving prior Notice to the Plan Administrator, and such

          election shall be effective as soon as practicable after the Plan Administrator’s receipt of
such election, and (ii) shall be eligible to be allocated Employer Matching Contributions and
Profit Sharing Contributions, subject to, and in accordance with, the terms of Article 4 hereof.

          (c) Notwithstanding any provision of this Plan to the contrary, an Employee who has
rights under Chapter 43 of Title 38, United States Code, resulting from qualified military service,
shall be credited with service and entitled to make Before Tax Contributions to this Plan and to be
allocated Employer Matching Contributions and Profit Sharing Contributions to the extent required
by applicable law and Section 414(u) of the Code.

ARTICLE 3

PARTICIPANT CONTRIBUTIONS

     3.1 Before Tax Contributions. Each Participant may elect to make Before Tax Contributions to the Plan of any whole
percentage of his Compensation for each payroll period. The minimum amount of Before Tax
Contributions with respect to each payroll period shall be one percent (1%), and, except as
permitted pursuant to Section 3.6(f) hereof, the maximum amount shall be fifty percent (50%).

     3.2 Suspension of Contributions. A Participant may voluntarily suspend his Before Tax Contributions by giving prior Notice to
the Plan Administrator, and such suspension shall be effective as soon as practicable after the
Plan Administrator’s receipt of such Notice. A Participant may resume

25

 

making Before Tax
Contributions by giving prior Notice to the Plan Administrator, and such election shall be
effective as soon as practicable after the Plan Administrator’s receipt of such election.

     3.3 Changes in Contribution Elections.

     A Participant may increase or decrease, subject to Section 3.1 hereof, the amount of his
Before Tax Contributions by giving prior Notice to the Plan Administrator. Such changes in Before
Tax Contributions shall become effective as soon as practicable after receipt of Notice by the Plan
Administrator.

     3.4 Payment of Contributions.

          (a) Participants’ Before Tax Contributions shall be transferred to the Trustee under
the Plan on the earliest date that such amounts can reasonably be segregated from the Employer’s
general assets, but in no event later than the fifteenth (15th) day of the calendar month following
the month in which the Before Tax Contributions withheld would otherwise have been paid to the
Participant. In no event shall an Employer transfer a Before Tax Contribution to the Trustee on
behalf of a Participant prior to the date the Participant performs the services with respect to
which the Before Tax Contribution is being made (or the date the Compensation for such services
would be currently available, if earlier) unless such pre-funding is to accommodate a bona fide
administrative concern and is not for the principal purpose of accelerating deductions for federal
income tax purposes.

          (b) Participants’ Before Tax Contributions shall be treated under the Plan, ERISA
and the Code as nonforfeitable Employer contributions. Before Tax Contributions shall not be
required to be made from the current or accumulated profits of an Employer.

     3.5 No Make-Up of Contributions. Subject to Section 3.6(f) hereof, no Participant who fails to make the maximum amount of
Before Tax Contributions permitted under Section 3.1 hereof, or who voluntarily suspends his Before
Tax Contributions in accordance with Section 3.2 hereof, shall be permitted to make up such
contributions in any subsequent payroll period.

     3.6 Limitations on Before Tax Contributions.

          (a) No Participant shall be permitted to have Before Tax Contributions made to the
Plan during any Plan Year to the extent such contributions, plus any elective deferrals under any
other tax-qualified plan, exceed the dollar limit imposed under Section 402(g) of the Code, as
adjusted in accordance therewith, except to the extent permitted under Section 3.6(f) hereof. A
Participant shall promptly notify

26

 

the Plan Administrator if such limitation is exceeded and the
amount of such excess, plus gain or loss allocable thereto for the Plan Year, and the period
beginning on the day after the close of such Plan Year and ending seven (7) days prior to the date
of distribution of excess contributions for such Plan Year (the “Gap Period”), shall be distributed
to such Participant within three and one-half (31/2) months after the close of the Plan Year during
which such excess contributions were made or as of such later date that is permissible under
applicable regulations as may be determined by the Plan Administrator. Except as
otherwise determined by the Plan Administrator, the income allocable to a Participant’s excess
Before Tax Contributions for a Plan Year, and the Gap Period for such Plan Year, shall be
determined by multiplying the total investment income or loss (including dividends, interest,
realized gains or losses, and unrealized appreciation or depreciation) allocated to the
Participant’s Before Tax Contributions Account for such Plan Year and Gap Period by a fraction:

               (i) the numerator of which is the amount of excess Before Tax Contributions
allocated to the Employee’s Before Tax Contributions Account for the Plan Year; and

               (ii) the denominator of which is the Employee’s total Before Tax Contributions
Account balance as of the beginning of the Plan Year increased by the total of the Employee’s
Before Tax Contributions for the Plan Year and the Gap Period for such Plan Year.

     (b) If for any Plan Year beginning before January 1, 2008, the Actual Deferral
Percentage for Highly Compensated Employees would exceed the greater of: (i) the Actual Deferral
Percentage of the Non-Highly Compensated Employees for the preceding Plan Year multiplied by one
and one-fourth (1.25), or (ii) the lesser of: (A) two percent (2%) plus the Actual Deferral
Percentage of Non-Highly Compensated Employees for the preceding Plan Year, or (B) the Actual
Deferral Percentage of Non-Highly Compensated Employees for the preceding Plan Year multiplied by
two (2), the Before Tax Contributions of the Highly Compensated Employees shall be reduced as set
forth in Sections 3.6(c) and 3.6(d) hereof. Notwithstanding the foregoing, the Actual Deferral
Percentage for Non-Highly Compensated Employees shall be determined by using the Non-Highly
Compensated Employees’ Compensation and the Before Tax Contributions and Qualified Non-elective
Contributions made on behalf of such Employees for the current Plan Year rather than the preceding
Plan Year, as permitted by, and in accordance with, Section 401(k)(3) of the Code.

27

 

          (c) In order to determine the amount by which Highly Compensated Employees’ Before
Tax Contributions must be reduced pursuant to Section 3.6(b) hereof and identifying the Highly
Compensated Employees whose Before Tax Contributions shall be reduced, the Plan Administrator
shall:

               (i) Determine the maximum Actual Deferral Percentage for Highly Compensated
Employees permitted under Section 3.6(b) hereof, if applicable;

               (ii) Identify the Highly Compensated Employees with Actual Deferral Percentages in
excess of the maximum percentage amount determined pursuant to the preceding clause (i);

               (iii) Determine the dollar amount of the reduction in each such Highly Compensated
Employee’s Before Tax Contributions that would be required so that the Actual Deferral Percentage
of Highly Compensated Employees would not exceed the percentage limit determined pursuant to the
preceding clause (i), with the dollar amount of such reductions being determined under a process
whereby the Actual Deferral Percentage of the Highly Compensated Employee(s) with the highest
Actual Deferral Percentage(s) is reduced so that it is equal to that of the Highly Compensated
Employee(s) with the next highest Actual Deferral Percentage and repeating such process until the
Actual Deferral Percentage of Highly Compensated Employees does not exceed the limit prescribed by
Section 3.6(b) hereof, if applicable; and

               (iv) Cause Before Tax Contributions equal to the total dollar amount of Before Tax
Contributions determined pursuant to the preceding clause (iii) (the “Excess Deferrals”) to be
refunded in accordance with Sections 3.6(d) and 3.6(e) hereof to the Highly Compensated Employees
identified therein.

          (d) The Before Tax Contributions of the Highly Compensated Employee(s) with the
highest dollar amount of Before Tax Contributions shall be reduced by the amount required to cause
the Before Tax Contributions of such Highly Compensated Employee(s) to be equal to the Before Tax
Contributions of the Highly Compensated Employee(s) who have the next highest dollar amount of
Before Tax Contributions; provided, however, if a lesser reduction would equal the amount of Excess
Deferrals, the lesser reduction shall be made. The process provided for by the by the preceding
sentence shall be repeated until the total amount of the reductions equals the amount of Excess
Deferrals. If the Actual Deferral Percentage of any Employee who is a Highly Compensated Employee
for a Plan Year is

28

 

determined taking into consideration before tax contributions allocated to his
accounts under two (2) or more plans or arrangements described in Section 401(k) of the Code that
are maintained by the Group, as described in Section 1.3 hereof, and the before tax contributions
of the Highly Compensated Employee must be reduced to satisfy the requirements of Section 401(k)(3)
of the Code, only the before-tax contributions made to the plan being corrected shall be reduced.

          (e) Any Before Tax Contributions in excess of the amount permitted under this
Section 3.6, along with any gain or loss allocable thereto for the Plan Year and the Gap Period (as
defined in Section 3.6(a) hereof) for such Plan Year, shall be refunded to the Highly Compensated
Employees identified in Section 3.6(d) hereof within two and one-half (21/2) months after the close
of the Plan Year or as of such later date as may be determined by the Plan Administrator, provided
that such later date shall not be later than the close of the Plan Year following the Plan Year in
which the excess amounts were contributed. Allocable gain or loss shall be determined in the same
manner as described in the last sentence of Section 3.6(a) hereof. Notwithstanding the foregoing,
the Plan Administrator may, in lieu of refunding all or a portion of excess Before Tax
Contributions to the Highly Compensated Employees, recharacterize all or a portion of such excess
Before Tax Contributions as After Tax Contributions within two and one-half (21/2) months of the
close of the Plan Year in which the excess contributions were made. Any such recharacterization
shall comply with applicable regulations under the Code. Employer Matching Contributions that are
attributable to Before Tax Contributions distributed pursuant to Section 3.6(a) or this Section
3.6(e) shall be forfeited and used to reduce future Employer contributions. The amount of Before
Tax Contributions to be recharacterized as After Tax Contributions or refunded to any Highly
Compensated Employee shall be reduced by the amount of any Before Tax Contributions previously
distributed to the Employee for such Plan Year.

          (f) Effective for Plan Years beginning on and after January 1, 2002, Participants
who are eligible to make Before Tax Contributions hereunder and who have attained age 50 before the
close of the Plan Year shall be eligible to make “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 Sections 402(g) and 415 of the Code. The Plan shall not be treated as failing to
satisfy the provisions of the Plan implementing the

29

 

requirements of Sections 401(k)(3), 410(b) or
416 of the Code, as applicable, by reason of Participants making such catch-up contributions.

          (g) The Plan Administrator may at any time, in its sole discretion, and upon notice
to the affected Participants, unilaterally reduce, on a prospective basis, the maximum percentage
of Compensation that Highly Compensated Employees may make as Before Tax Contributions to the Plan.

          (h) Notwithstanding any other provision of the Plan, effective for Plan Years
beginning after December 31, 2007, (i) the Automatic Contribution Arrangement provisions of
Sections 2.1(c) and (e), 2.2(b) and (c) and 4.1 hereof are intended to constitute a “qualified
automatic contribution arrangement” within the meaning of Treasury Regulations Section
1.401(k)-3(j)(i), and satisfy the Actual Deferral Percentage and Average Contribution Percentage
tests of Section 401(k) and (m), respectively, of the Code, and (ii) the Actual Deferral Percentage
provisions of Sections 3.6(b), (c), (d), (e) and (g) hereof and the Qualified Nonelective
Contribution provisions of Section 4.2 hereof, shall not be effective.

     3.7 Rollovers. Employees may, subject to such rules as may be prescribed by the Plan Administrator, roll over
all or a portion of (a) an eligible rollover distribution (within the meaning of Section 402(c)(4)
of the Code), (b) a rollover amount (within the meaning of Section 403(a)(4) of the Code), or (c) a
rollover contribution (within the meaning of Section 408(d)(3)(A)(ii) of the Code) to this Plan,
(each, a “Rollover Amount”); provided, however, that (x) in no event may any
“after-tax” employee contributions be rolled over into this Plan, and (y) Rollover Amounts may be
transferred to the Plan only in the form of cash and/or, in the discretion of the Plan
Administrator, one or more participant loan notes. If, after an amount has been rolled over to
this Plan, the Plan Administrator determines that such amount was not a valid Rollover Amount, the
Plan Administrator shall distribute such amount to the applicable Participant, together with
earnings attributable thereto, within a reasonable period after such determination.

ARTICLE 4

EMPLOYER CONTRIBUTIONS

     4.1 Matching Contributions.

     (a) Subject to Sections 4.5 and 4.6 hereof, each Employer shall make Employer
Matching Contributions to the Plan with respect to each Participant who is an Employee of that
Employer in an amount equal to two hundred percent (200%) of the first two percent (2%) of each
such Participant’s

30

 

Compensation contributed to the Plan as Before Tax Contributions each payroll
period plus an amount equal to one hundred percent (100%) of the next two percent (2%) of each such
Participant’s Compensation contributed to the Plan as Before Tax Contributions each payroll period.
Employer Matching Contributions made pursuant to this Section 4.1(a) shall be transferred to the
Trustee under the Plan concurrently with the
delivery of the Participants’ Before Tax Contributions and shall be allocated to the Accounts
of the Participants on whose behalf they were made upon receipt by the Trustee (or as soon as
practicable thereafter).

          (b) Subject to Sections 4.5 and 4.6 hereof, in the event that the total amount of
Employer Matching Contributions made to the Plan with respect to a Participant for a Plan Year
beginning before January 1, 2008, is less than an amount equal to the sum of (i) two hundred
percent (200%) of the first two percent (2%) of such Participant’s Compensation contributed to the
Plan as Before Tax Contributions for such Plan Year, and (ii) one hundred percent (100%) of the
next two percent (2%) of such Participant’s Compensation contributed to the Plan as Before Tax
Contributions for such Plan Year (the sum of (a) and (b) being the “Total Match”), the Employer
shall make an additional Employer Matching Contribution to the Plan with respect to the Participant
for such Plan Year equal to the difference between (x) the Total Match for such Plan Year, and (y)
the amount of Employer Matching Contributions made to the Plan on behalf of the Participant
pursuant to Section 4.1(a) hereof for such Plan Year (such additional contribution being a “True-Up
Contribution”). Employer Matching Contributions made pursuant to this Section 4.1(b) shall be
transferred to the Trustee not later than the date required under the Code in order for such
contributions to be deductible for such Plan Year for federal income tax purposes and shall be
allocated to the Accounts of the Participants on whose behalf they were made upon receipt by the
Trustee (or as soon as practicable thereafter). Notwithstanding the foregoing, an Employer may, in
its discretion, calculate and contribute to the Plan True-Up Contributions more frequently than on
a Plan Year basis. The Employer shall not make any True-Up Contributions for any Plan Year
beginning after December 31, 2007.

          (c) An Employer shall transfer to the Trustee an Employer Matching Contribution made
with respect to a Before Tax Contribution made during a Plan Year quarter not later than the last
day of the immediately following Plan Year quarter. In no event shall an Employer transfer an
Employer Matching Contribution made pursuant to this Section 4.1 to the Trustee on behalf of a
Participant prior to

31

 

the date the Participant performs the services with respect to which the
Employer Matching Contribution is being made (or the date the Compensation for such services would
be currently available, if earlier) unless such pre-funding is to accommodate a bona fide
administrative concern and is not for the principal purpose of accelerating deductions for federal
income tax purposes.

     4.2 Profit Sharing Contributions. Subject to the restrictions imposed by Section 4.5 hereof, and in addition to the
contributions required by Section 4.1 hereof, each Employer, by action of its Board of Directors,
may elect to make a discretionary Profit Sharing Contribution for a Plan Year in an amount
determined by the Employer’s Board of Directors, up to two percent (2%) of the aggregate
Compensation of its Eligible Employees, to be allocated among the Profit Sharing Contributions
Accounts of the Employer’s Eligible Employees for such Plan Year. An Eligible Employee’s share of
any Profit Sharing Contribution for a Plan Year shall be equal to the Eligible Employee’s
Compensation for such Plan Year multiplied by a fraction, the numerator of which is the Eligible
Employee’s Compensation for such Plan Year, and the denominator of which is the total Compensation
of all the Employer’s Eligible Employees for such Plan Year. Any election by the Employer’s Board
of Directors shall be evidenced by a resolution adopted by the Board of Directors on or before
December 31 of the Plan Year for which any such Profit Sharing Contribution is to be made.
Eligible Employees shall be promptly notified of the amount of any Profit Sharing Contribution made
on their behalf for any Plan Year by any reasonable form of communication that the Plan
Administrator considers convenient. Any such Profit Sharing Contribution may be transferred to the
Trustee under the Plan, without interest, at any time prior to the required filing date, including
any extensions of time granted by the Internal Revenue Service, of the Employer’s federal income
tax return for that Plan Year and shall be immediately allocated among the Profit Sharing
Contributions Accounts of the Eligible Employees on whose behalf it was made.

     4.3 Qualified Nonelective Contributions. In the discretion of the Company, the Employers may make contributions to the Plan that are
“qualified nonelective contributions” (within the meaning of Section 401(m)(4)(C) of the Code).
Such contributions shall be allocated to Participants who are Non-Highly Compensated Employees in
proportion to their Compensation for the applicable Plan Year in such amounts, at such times and as
of such dates as shall be determined by the Employers in accordance with

32

 

Treasury Regulations
Section 1.401(k)-2(a)(6). The provisions of this Section 4.3 shall not be effective for Plan Years
beginning after December 31, 2007.

     4.4 Reinstatement of Forfeited Account Balances; Payment of Administrative
Expenses.

          (a) Each Employer shall contribute to the Plan any amount necessary to reinstate any
Company Retirement Contributions, Employer Matching Contributions, and Profit Sharing Contributions
previously forfeited pursuant to Section 6.4 hereof.

          (b) To the extent not paid by the Trustee from the Trust Fund, each Employer shall
pay its pro rata share of all administrative expenses of the Plan and of all fees and retainers of
the Plan’s Trustee, consultants, auditors and counsel (who may, but need not, be counsel to the
Company and to the Trustee). All expenses directly relating to the investments of the Trust Fund
such as taxes, commissions, registration charges, etc. shall be paid by the Trustee from the Trust
Fund.

     4.5 Limitations on Contributions. The limitations imposed by Section 415 of the Code are hereby incorporated by reference. For
purposes of applying the limitations imposed by Section 415 of the Code, “compensation” as referred
to therein, shall mean Section 415 Compensation.

     4.6 Limitations on After Tax Contributions and Employer Matching
Contributions.

          (a) If for any Plan Year beginning before January 1, 2008, the Average Contribution
Percentage of Highly Compensated Employees for any Plan Year would exceed the greater of: (i) the
Average Contribution Percentage of Non-Highly Compensated Employees for the preceding Plan Year
multiplied by one and one-fourth (1.25), or (ii) the lesser of: (A) two percent (2%) plus the
Average Contribution Percentage of Non-Highly Compensated Employees for the preceding Plan Year, or
(B) the Average Contribution Percentage of Non-Highly Compensated Employees for the preceding Plan
Year multiplied by two (2), the After Tax Contributions and/or Employer Matching Contributions of
the Highly Compensated Employees shall be reduced as set forth in Sections 4.6(b) and 4.6(c)
hereof. Notwithstanding anything herein, the Average Contribution Percentage for Non-Highly
Compensated Employees shall be determined by using the Non-Highly Compensated Employees’
Compensation, After Tax Contributions and Employer Matching Contributions made on their behalf for
the current Plan Year rather than the preceding Plan Year, as permitted by, and in accordance with,
Section 401(m)(2) of the Code.

33

 

          (b) In order to determine the amount by which Highly Compensated Employees’ After
Tax Contributions and/or Employer Matching Contributions must be reduced and identifying the Highly
Compensated Employees whose After Tax Contribution and/or Employer Matching Contributions shall be
reduced, the Plan Administrator shall:

               (i) Determine the maximum Average Contribution Percentage for Highly Compensated
Employees permitted under Section 4.6(a) hereof;

               (ii) Identify the Highly Compensated Employees with Average Contribution Percentages
in excess of the maximum percentage amount determined pursuant to the preceding clause (i);

               (iii) Determine the dollar amount of the reduction in each such Highly Compensated
Employee’s After Tax Contributions and/or Employer Matching Contributions that would be required so
that the Average Contribution Percentage of Highly Compensated Employees would not exceed the
percentage limit determined pursuant to the preceding clause (i), with the dollar amount of such
reductions being determined under a process whereby the Average Contribution Percentage of the
Highly Compensated Employee(s) with the highest Average Contribution Percentage(s) is reduced so
that it is equal to that of the Highly Compensated Employee(s) with the next highest Average
Contribution Percentage and repeating such process until the Average Contribution Percentage of
Highly Compensated Employees does not exceed the limits prescribed by Section 4.6(a) hereof; and

               (iv) Cause After Tax Contributions and/or Employer Matching Contributions equal to
the total dollar amount of After Tax Contributions and/or Employer Matching Contributions
determined pursuant to the preceding clause (iii) (the “Excess Contributions”) to be refunded in
accordance with Sections 4.6(c) and 4.6(d) hereof to the Highly Compensated Employees identified
therein.

          (c) After Tax Contributions and/or Employer Matching Contributions of the Highly
Compensated Employee(s) with the highest total amount of After Tax Contributions and/or Employer
Matching Contributions shall be reduced by the amount required to cause the After Tax Contributions
and/or Employer Matching Contributions of such Highly Compensated Employee(s) to be equal to the
After Tax Contributions and/or Employer Matching Contributions of the Highly Compensated
Employee(s)

34

 

who have the next highest total amount of After Tax Contributions and/or Employer Matching
Contributions; provided, however, if a lesser reduction would equal the amount of
Excess Contributions, the lesser reduction shall be made. The process provided for by the
preceding sentence shall be repeated until the total amount of the reductions equals the amount of
Excess Contributions. For purposes of the foregoing, reductions made to a Highly Compensated
Employee’s After Tax Contributions and/or Employer Matching Contributions pursuant to this Section
4.6(c) shall be made in the following order: (i) After Tax Contributions with respect to which no
Employer Matching Contributions were made; (ii) other After Tax Contributions and related Employer
Matching Contributions; and (iii) other Employer Matching Contributions. If the Average
Contribution Percentage of any Employee who is a Highly Compensated Employee for a Plan Year is
determined taking into consideration employee after tax contributions and/or employer matching
contributions allocated to his accounts under two (2) or more plans or arrangements described in
Section 401(m) of the Code that are maintained by the Group, pursuant to Section 1.13 hereof, and
the employee after tax contributions and/or employer matching contributions of the Highly
Compensated Employee must be reduced to satisfy the requirements of Section 401(m) of the Code,
only the employee after-tax contributions and/or employer matching contributions made to the plan
being corrected shall be reduced.

          (d) After Tax Contributions and any vested Employer Matching Contributions in excess
of the amount permitted under this Section 4.6, along with any gain or loss allocable thereto for
the Plan Year and the Gap Period (as defined in Section 3.6(a) hereof for such Plan Year, shall be
distributed to the Highly Compensated Employees identified in Section 4.6(c) hereof within two and
one-half (21/2) months after the close of the relevant Plan Year (or as of such later date as may be
determined by the Plan Administrator, provided that such later date shall not be later than the
close of the Plan Year following the Plan Year in which the excess amounts were contributed). The
income allocable for a Plan Year, plus the Gap Period (as defined in Section 3.6(a) hereof) for
such Plan Year, to a Highly Compensated Employee’s excess After Tax Contributions and/or Employer
Matching Contributions shall be determined by multiplying the total investment income or loss
(including dividends, interest, realized gains or losses, and unrealized appreciation or
depreciation) allocated to the Employee’s After Tax Contributions Account and/or Employer Matching
Contributions Account for such Plan Year and Gap Period by a fraction:

35

 

               (i) the numerator of which is the amount of excess After Tax Contributions and/or
Employer Matching Contributions allocated to the Employee’s After Tax Contributions Account and/or
Employer Matching Contributions Account for the Plan Year; and

               (ii) the denominator of which is the Employee’s total After Tax Contributions
Account balance and/or Employer Matching Contributions Account balance as of the beginning of the
Plan Year increased by the total of the Employee’s After Tax Contributions and/or Employer Matching
Contributions for the Plan Year and the Gap Period for such Plan Year.

          (e) Nonvested Employer Matching Contributions that are attributable to After Tax
Contributions that are distributed and any nonvested Employer Matching Contribution that are
otherwise reduced pursuant to this Section 4.6 (together with any allocable gain or loss, as
determined in accordance with the provisions of Section 4.6(d) hereof) shall be forfeited within
two and one-half (21/2) months after the close of the relevant Plan Year (or as of such later date as
may be determined by the Plan Administrator, provided that such later date shall not be later than
the close of the Plan Year following the Plan Year in which the excess amounts were contributed)
and used to reduce future Employer contributions and shall not be considered a contribution for any
purpose of the Plan, except to the extent required by applicable regulations.

          (f) The Plan Administrator at any time, in its sole discretion, and upon notice to
the affected Participants, may unilaterally reduce, on a prospective basis, the maximum percentage
of Compensation that Highly Compensated Employees may make as After Tax Contributions to the Plan.

          (g) Notwithstanding any other provision of the Plan, effective for Plan Years
beginning after December 31, 2007, (i) the Automatic Contribution Arrangement provisions of
Sections 2.1(c) and (e), 2.2(b) and (c) and 4.1 hereof are intended to constitute a “qualified
automatic contribution arrangement” described in Treasury Regulations Section 1.401(k)-3(j)(i), and
satisfy the Actual Deferral Percentage and Average Contribution Percentage tests of Sections 401(k)
and 401(m), respectively, of the Code, and (ii) the Average Contribution Percentage provisions of
this Section 4.6 shall not be effective.

36

 

ARTICLE 5

ACCOUNTS

     5.1 Maintenance of Accounts. The Plan Administrator shall maintain for each Participant such Accounts as may be necessary
to reflect the portion of the Participant’s interest in the Trust Fund that is attributable to
Company Retirement Contributions, Before Tax Contributions, After Tax Contributions, Employer
Matching Contributions, Profit Sharing Contributions, Qualified Nonelective Contributions, and
Rollover Contributions held by the Trustee on the Participant’s behalf.

     5.2 Adjustments to Accounts; Statements Provided to Participants. As of each
Valuation Date, the Accounts of each Participant shall be adjusted to reflect
contributions, withdrawals, distributions, income earned or accrued, and increase or decrease in
the value of Trust Fund assets since the preceding Valuation Date. Trust Fund earnings or losses
shall be allocated proportionately on the basis of Account balances among the respective Accounts
and in a fair and equitable manner as determined by the Plan Administrator. The Plan Administrator
shall provide each Participant with a statement of his Account balances under the Plan on a
quarterly basis.

ARTICLE 6

VESTING AND FORFEITURES

     6.1 Before Tax Contributions, After Tax Contributions, Qualified Nonelective
Contributions and Rollover Accounts. The Before Tax Contributions Account, After
Tax Contributions Account, Qualified Nonelective Contributions Account and Rollover Account
of a Participant shall be fully vested and nonforfeitable at all times.

     6.2 Vesting of Company Retirement Contributions Account. In the case of a
Participant who is created with at least one (1) Hour of Service on or after
January 1, 2008, the Participant’s Company Retirement Contributions Account shall be fully vested
and nonforfeitable upon the first to occur of the following: (a) the Participant’s completion of a
Period of Service of two (2) years (three (3) years for the Plan Year beginning on January 1, 2007,
and five (5) years for Plan Years beginning before January 1, 2007), (b) the Participant’s
attainment of age sixty-five (65) (which shall be the Plan’s normal retirement age) while an
employee of the Group, (c) the Participant’s death while employed by the Group, or (d) the

37

 

Participant’s total disability while an employee of the
Group, as certified by either the Social Security Administration or the applicable Group
member’s long-term disability carrier.

     6.3 Vesting of Employer Matching Contributions Account and Profit Sharing
Contributions Account.

          (a) In the case of a Participant who is credited with at least one (1) Hour of
Service on or after January 1, 2008, and who was hired as an Employee prior to such date, the
Participant’s Employer Matching Contributions Account shall vest in accordance with the following
schedule:

	 	 	 
	If the Period of Service of the	 	The Vested Percentage of Employer
	Participant, in Months, Equals or	 	Matching Contributions Account Shall
	Exceeds	 	Be
	 
	 	 
	Twelve (12)

	 	thirty-four (34)
	Twenty-four (24)

	 	one hundred (100)

          (b) In the case of a Participant who is credited with at least one (1) Hour of
Service on or after January 1, 2008, and who was hired as an Employee prior to such date, the
Participant’s Profit Sharing Contributions Account shall vest in accordance with the following
schedule:

	 	 	 
	 	 	The Vested Percentage of Profit
	If the Period of Service of the	 	Sharing Contributions Account
	Participant, in Months, Is	 	Shall Be
	 
	 	 
	Less than twenty-four (24)

	 	zero (0)
	At least twenty-four (24)

	 	one hundred (100)

          (c) In the case of a Participant who is hired as an Employee after December 31,
2007, the Participant’s Employer Matching Contributions Account and Profit Sharing Contributions
Account, shall vest in accordance with the following schedule:

38

 

	 	 	 
	 	 	The Vested Percentage of Employer
	 	 	Matching Contributions and
	If the Period of Service of the	 	Profit Sharing Contributions
	Participant, In Months, Is	 	Accounts Shall Be
	 
	 	 
	Less than twenty-four (24)

	 	zero (0)
	At least twenty-four (24)

	 	one hundred (100)

          (d) For purposes of Sections 6.3(a) through 6.3(c) hereof, in the case of a
Participant described in Section 1.57(b)(xi) hereof who was an Employee of Temple-Inland Inc.
(including any member of the “Temple-Inland Group” (within the meaning of the Employee Matters
Agreement)) or Forestar (including any member of the “Forestar Group” (within the meaning of the
Employee Matters Agreement)) on December 28, 2007, and who was continuously employed by
Temple-Inland Inc. and/or Forestar for the period beginning on such date and ending on the date of
a transfer of employment from Temple-Inland Inc. or Forestar to an Employer, the Participant shall
be treated as being hired as an Employee before January 1, 2008.

          (e) Notwithstanding the foregoing provisions of this Section 6.3, the Employer
Matching Contributions Account, Company Retirement Contributions and Profit Sharing Contributions
of any Participant shall be fully vested and nonforfeitable upon the occurrence of any of the
events described in clauses (c) through (d) of Section 6.2 hereof. If a Participant makes a
withdrawal or receives a distribution from any of his Accounts (other than a distribution that
results in the forfeiture of the nonvested portion of such Account pursuant to Section 6.4 hereof)
prior to the date that he has a vested percentage of one hundred percent (100%) with respect to
such Account, a separate subaccount shall be established for the balance of such Account as of the
time of distribution and the vested portion of such account shall be equal to P(AB+D)-D, where P is
the vested percentage at the relevant time; AB is the account balance at the relevant time; D is
the amount of the distribution; and the relevant time is the time at which, under the Plan, the
vested percentage in the Account cannot increase.

          (f) Notwithstanding the foregoing provisions of this Section 6.3, in the case of a
Participant who was a participant in a Merged Plan, the vested percentage of such Participant’s
Company Retirement Contributions Account, Employer Matching Contributions Account, Profit Sharing
Contributions Account, and/or Subaccounts hereunder shall not be less than if the vesting schedule
under

39

 

the Merged Plan applicable to amounts allocated to such Accounts and/or Subaccounts applied to
such Accounts and/or Subaccounts under this Plan, except as otherwise provided in an Appendix
hereto and permitted under Section 411(a)(10) of the Code.

     6.4 Forfeitures.

          (a) The nonvested portion (if any) of a Participant’s Accounts shall be forfeited as
of the earlier of (i) the last day of the Plan Year in which the Participant receives a
distribution of his entire vested Account Balance (provided such distribution is made not later
than the end of the second Plan Year following the Plan Year in which the Participant terminates
employment with the Group), or (ii) in case of a Participant who does not have a nonforfeitable
right to any portion of his Account Balance attributable to Employer contributions (including
elective deferrals, within the meaning of Section 402(g) of the Code), the last day of the Plan
Year in which the Participant incurs five (5) consecutive One Year Breaks in Service. If a former
employee of the Group who has forfeited the nonvested portion of his Accounts later resumes
employment by the Group before he has five (5) consecutive One Year Breaks in Service, that portion
of his Accounts that was previously forfeited shall be reinstated (unadjusted for Trust Fund
earnings and/or losses subsequent to the date of forfeiture) and he shall receive full credit for
his previous Periods of Service. The source of the reinstated funds shall first be from the then
applicable forfeitures, and to the extent necessary then from Employer contributions as provided in
Section 4.4(a) hereof.

          (b) Except to the extent provided in Sections 3.6, 4.5 and 4.6 hereof, forfeitures
under the Plan shall result only from a Participant’s termination of employment with the Group
before satisfying the vesting requirements of Sections 6.2 and 6.3 hereof. All forfeitures under
the Plan shall be used for the following purposes: (i) to reinstate forfeited Accounts pursuant to
Section 4.4 hereof; (ii) to reduce administrative expenses of the Plan; and (iii) to reduce the
amount of any subsequent contributions of the applicable Employer under Article 4 hereof.

     6.5 Determination of Period of Service. In determining the Period of Service of
a Participant for purposes of Sections 6.2 and 6.3 hereof, a Participant who has five (5) or
more consecutive One Year Breaks in Service shall receive
credit for his Period of Service prior to such One Year Breaks in Service only if he had any
nonforfeitable interest in his Account Balance attributable to Employer contributions (including
elective deferrals within the meaning of
Section 402(g) of the Code) at the time of his separation

40

 

from service with the Group.
Notwithstanding the foregoing, in the case of any Participant who has incurred five (5) consecutive
One Year Breaks in Service, his Period of Service after such One Year Breaks in Service shall not
be taken into account for determining the vested percentage of his Accounts attributable to periods
prior to such five (5) consecutive One Year Breaks in Service.

ARTICLE 7

INVESTMENT OF CONTRIBUTIONS

     7.1 Investment Funds. Contributions made to the Plan shall be invested in
accordance with the provisions of this
Article 7 (except as provided in Section 10.4 hereof) in such investment funds as the Investment
Committee may designate from time-to-time, provided that such investment funds shall include:

          (a) A U.S. Treasury Fund, which shall be provided by such investment vehicle as may
be designated by the Investment Committee and

          (b) Effective December 1, 2007, one or more Target Retirement Funds, which shall be
provided by such vehicle(s) as may be designated by the Investment Committee.

     7.2 Inactive Funds. The Plan shall maintain a Temple-Inland Stock Fund, a Guaranty Stock Fund and a Forestar Stock
Fund. No new contributions may be invested in any of the Stock Funds and no amounts may be
transferred into any of the Stock Funds pursuant to Section 7.6 hereof. Effective December 28,
2007, any dividends paid on shares of Common Stock allocated to a Participant’s Stock Fund
Subaccount (including any dividends paid prior to, and pending investment on, such date) shall be
invested in the same Active Funds in which the Participant’s Before Tax Contributions are then
being invested. If the Participant is not making Before Tax Contributions to his Before Tax
Contribution Account at that time, such dividends shall be invested in the Target Retirement Fund
appropriate for the Participant’s age. If any amounts remain allocated to any Stock Fund as of
December 31, 2009, such amounts shall automatically be transferred, as soon as administratively
practicable after such date, to and among the same investment funds in which the Participant’s
Before Tax Contributions are then being invested. If the Participant is not making Before Tax
Contributions to his Before Tax Contribution Account at that time, such amounts shall be
automatically transferred to the Target Retirement Fund appropriate for the Participant’s age.

41

 

     7.3 Loan Fund. The Plan shall maintain a Loan Fund which shall consist of promissory notes evidencing Loans
made pursuant to Article 10 hereof.

     7.4 Investment of Employer and Participant Contributions. Contributions under the Plan shall be invested as follows:

          (a) Except as provided in Section 7.4(b) hereof, Before Tax Contributions, Employer
Matching Contributions, Profit Sharing Contributions, if any, and Rollover Contributions, if any,
shall be invested in accordance with the investment elections made by Participants;
provided, however, that in the case of any Participant (including, but not limited
to, an Automatic Contribution Participant) who does not have in effect a valid investment election,
such Participant’s Before Tax Contributions, Employer Matching Contributions, Profit Sharing
Contributions, if any, and Rollover Contributions, if any, shall be invested in the Target
Retirement Fund appropriate for the Participant’s age. A Participant may direct, in one percent
(1%) increments, that the Participant’s Before Tax Contributions, Employer Matching Contributions,
Profit Sharing Contributions, if any, and Rollover Contributions, if any, be invested in any of the
Active Funds.

          (b) Subject to Section 7.2 hereof, Employer Matching Contributions made prior to
December 28, 2007, shall be invested entirely in the Stock Funds unless a Participant elects in
accordance with Section 7.6 hereof to transfer all or a portion of such amounts to and among any of
the Active Funds.

          (c) Company Retirement Contributions and Qualified Nonelective Contributions made
for Plan Years beginning before January 1, 2008, shall be invested entirely in the U.S. Treasury
Fund, except to the extent a Participant may elect in accordance with Section 7.6 hereof to
transfer all or a portion of such amounts to and among any of the Active Funds.

          (d) Amounts transferred to this Plan from a Merged Plan shall be invested in the
Active Funds in accordance with rules specified by the Plan Administrator.

          (e) Subaccounts shall be established for each Participant under each Fund to which
contributions on his behalf have been allocated.

     7.5 Change in Investment Elections. A Participant may change his investment election by giving prior Notice to the Plan
Administrator in accordance with rules prescribed by the Plan Administrator.

42

 

     7.6 Change in Existing Investments.

          (a) In accordance with rules prescribed by the Plan Administrator, a Participant may
transfer all or any portion (in one percent (1%) increments) of his Before Tax Contributions
Account, After Tax Contributions Account, Employer Matching Contributions Account, Company
Retirement Contributions Account, Profit Sharing Contributions Account, Qualified Nonelective
Contributions Account, and Rollover Account invested in any of the Funds to any of the Active
Funds.

          (b) Transfers made pursuant to this Section 7.6 will be effected as of (a) the close
of business on the Valuation Date that the transfer instruction is received by the Trustee if the
instruction is received on or before the Cut-Off Time, or (b) as of the close of business on the
next Valuation Date, if the instruction is received after the Cut-Off Time or on a day that is not
a Valuation Date. Notwithstanding the foregoing, the Plan Administrator or the Trustee may, in its
sole discretion and either with or without prior notice to Participants, suspend, delay, limit or
restrict the execution of Participant transfer elections for some or all Participants for such
periods as the Plan Administrator or the Trustee may determine in the event of electronic or other
communications failures or for purposes of facilitating the merger of a Merged Plan into this Plan.
For purposes of this Section 7.6, “Cut-Off Time” means the time prescribed by the Plan
Administrator or the Trustee.

     7.7 Voting of Stock Fund Shares (for Periods Prior to January 1, 2010).
Before each annual or special meeting of the shareholders of Temple-Inland Inc., the Company
or Forestar, each Participant with a Temple-Inland Stock Fund Subaccount, Guaranty Stock Fund
Subaccount or Forestar Stock Fund Subaccount shall be furnished a copy of the applicable proxy
solicitation material for such meeting, together with a request for his confidential instructions
to the Trustee as to how the shares of Common Stock held in the respective Stock Fund then credited
to his respective Stock Fund Subaccount (excluding therefrom any fractional shares) as of the most
recent practicable Valuation Date prior to such record date for which information is available
should be voted. On each matter, the Trustee shall vote:

          (a) shares of Common Stock held in the respective Stock Fund for which it has
received timely voting instructions in accordance with such instructions; and

          (b) shares of Common Stock held in the respective Stock Fund for which it has not
received timely voting instructions from Participants, or which are pending allocation to
Participants’

43

 

Accounts, in the same proportion as it votes those shares of Common Stock held in the
respective Stock Fund for which it has received timely voting instructions from Participants on
such matter, unless the Trustee determines that doing so would be inconsistent with Title I of
ERISA.

     7.8 Tender or Exchange Offers (for Periods Prior to January 1, 2010). Each
Participant shall have the right, to the extent of shares of Common Stock allocated to
his respective Stock Fund Subaccount as of the most recent practicable Valuation Date prior to such
record date for which information is available, to direct the Trustee in writing as to the manner
in which to respond to a tender or exchange offer with respect to such shares. The Trustee shall
utilize its best efforts to timely distribute or to cause to be distributed to each Participant
such information as will be distributed to shareholders of Temple-Inland Inc., the Company or
Forestar in connection with any such tender or exchange offer. Upon timely receipt of such written
directions from the Participant, the Trustee shall respond as directed with respect to the shares
of Common Stock held in the respective Stock Fund representing all, but not less than all, of the
shares over which that Participant has the right of direction. If the Trustee shall not have
received timely written directions from any Participant as to the manner in which to respond to
such a tender or exchange offer, the Trustee shall not tender or exchange any such shares with
respect to which that Participant has the right of direction. Shares of Common Stock held in a
Stock Fund by the Trustee pending allocation to Participants’ Accounts shall be tendered or
exchanged by the Trustee in the same proportion as are tendered or exchanged those shares with
respect to which Participants have the right of direction.

     7.9 Confidentiality (for Periods Prior to January 1, 2010). Information
relating to the purchase, holding, and sale of Common Stock, and the directions
received by the Trustee from Participants pursuant to Sections 7.7 and 7.8 hereof shall be held by
the Trustee in accordance with procedures developed by the Plan Administrator that are designed to
safeguard the confidentiality of such information (except to the extent provided therein). The
Investment Committee shall be responsible for ensuring that the procedures provided for by Sections 7.7 and 7.8
hereof and this Section 7.9 are sufficient to safeguard the confidentiality of such Participant
information, that such procedures are being followed, and that an independent fiduciary is
appointed to carry out any activities which the Investment Committee determines involve a
potential for undue employer influence upon Participants and beneficiaries with respect to the
direct or indirect exercise of shareholder rights.

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ARTICLE 8

WITHDRAWALS DURING EMPLOYMENT

     8.1 Withdrawal of After Tax Contributions.
Subject to the provisions of this Article 8, a Participant may elect to withdraw all or any
portion of his After Tax Contributions Account.

     8.2 Withdrawals After Age 591/2.
Subject to the provisions of this Article 8, a Participant who has attained age fifty-nine and
a half (591/2) and who has withdrawn all amounts available pursuant to Section 8.1 hereof may elect
to withdraw all or a portion of his Before Tax Contributions Account, Qualified Nonelective
Contributions Account, vested Company Retirement Contributions Account, vested Profit Sharing
Contributions Account and vested Employer Matching Contributions Account.

     8.3 Withdrawal of Employer Matching Contributions.
Subject to the provisions of this Article 8, a Participant who has withdrawn all amounts
available pursuant to Sections 8.1 and 8.2 hereof may withdraw all or any portion of the vested
portion of his Employer Matching Contributions Account attributable to Employer Matching
Contributions made for Plan Years beginning before January 1, 2008; provided,
however, that in the case of a Participant who does not have at least sixty (60) Months of
Participation before the date of such withdrawal, Employer Matching Contributions for Plan Years
beginning before January 1, 2008, actually made by the Participant’s Employer (or predecessor
employer) during the most recent preceding twenty-four (24) months may not be withdrawn, except as
permitted by Section 8.2 hereof.

     8.4 Hardship Withdrawals.

          (a) Subject to the provisions of this Article 8, a Participant may withdraw any
amount, but not less than five hundred dollars ($500), of his Before Tax Contributions (not
including any
earnings thereon and reduced by the amount of any prior withdrawal of such contributions) from
his Before Tax Contributions Account on account of hardship. For purposes of this Plan a
withdrawal is on account of hardship only if:

               (i) the withdrawal is made because of an immediate and heavy financial need of the
Participant (as determined in accordance with Section 8.4(b) hereof), and

45

 

               (ii) the withdrawal is necessary to satisfy such financial need (as determined in
accordance with Sections 8.4(c) through 8.4(f) hereof).

          (b) For purposes of this Section 8.4, a distribution is on account of an immediate
and heavy financial need of a Participant only if the distribution is on account of:

               (i) expenses for (or necessary to obtain) medical care that would be deductible
under Section 213(d) of the Code (determined without regard to whether the expenses exceed 7.5% of
adjusted gross income); or

               (ii) costs directly related to the purchase of a principal residence of the
Participant (excluding mortgage payments); or

               (iii) payment of tuition, related educational fees, and room and board expenses, for
up to the next twelve (12) months of post-secondary education for the Participant, or the
Participant’s spouse, children, or dependents (as defined in Section 152 of the Code, and for Plan
Years beginning on and after January 1, 2005, without regard to Sections 152(b)(1), (b)(2) and
(d)(1)(B) of the Code); or

               (iv) the need to prevent the eviction of the Participant from his principal
residence or foreclosure of the mortgage on his principal residence; or

               (v) payments for burial or funeral expenses for the Participant’s deceased parent,
spouse, children or dependents (as defined in Section 152 of the Code, and for taxable years
beginning on and after January 1, 2005, without regard to Section 152(d)(1)(B) of the Code); or

               (vi) expenses for the repair of damage to the Participant’s principal residence that
would qualify for the casualty deduction under Section 165 of the Code (determined without regard
to whether the loss exceeds 10% of adjusted gross income); or

               (vii) any other event or occurrence that the Commissioner of the Internal Revenue
Service (the “Commissioner”) may designate through the publication of revenue rulings, notices, and
other documents of general applicability as constituting immediate and heavy financial need.

         (c) A withdrawal shall be treated as necessary to satisfy an immediate and heavy
financial need of a Participant only to the extent that the amount of the withdrawal does not
exceed the

46

 

amount required to meet the financial need. For this purpose, the amount required to
satisfy the financial need may include any amounts necessary to pay any federal, state or local
income taxes or penalties reasonably anticipated to result from the withdrawal. A withdrawal shall
not be treated as necessary to satisfy an immediate and heavy financial need of a Participant to
the extent the need may be relieved from other resources reasonably available to the Participant.
This determination generally is to be made on the basis of all the relevant facts and
circumstances. For this purpose, the Participant’s resources are deemed to include those assets of
the Participant’s spouse and minor children (other than property held for a minor child under (i)
an irrevocable trust, or (ii) the Uniform Gifts to Minors Act or comparable state law) that are
reasonably available to the Participant.

         (d) An immediate and heavy financial need may be treated as not capable of being
relieved from other resources reasonable available to a Participant if the Employer relies upon the
Participant’s representation (made in writing or such other form as may be prescribed by the
Commissioner of Internal Revenue), unless the Employer has actual knowledge to the contrary, that
the need cannot reasonably be relieved:

               (i) Through reimbursement or compensation by insurance or otherwise;

               (ii) By liquidation of the Participant’s assets;

               (iii) By cessation of the Participant’s Before Tax Contributions under the Plan;

               (iv) By other currently available distributions under plans maintained by the Group
or any other employer; or

               (v) By loans from commercial sources on reasonable commercial terms in an amount
sufficient to satisfy the need.

          (e) A need cannot be reasonably relieved by one of the actions in Section 8.4(d)
hereof if the effect of the action would be to increase the amount of the need.

          (f) Notwithstanding Sections 8.4(c) through 8.4(e) hereof, a Participant must obtain
all nontaxable (at the time of the loan(s)) loans under the Plan and all other plans maintained by
the Group prior to obtaining a hardship withdrawal hereunder.

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     8.5 Withdrawal of Rollover Accounts.
Subject to the provisions of this Article 8, a Participant may withdraw all or a portion of
his Rollover Account.

     8.6 Withdrawals of Certain Default Before Tax Contributions. 

     An Automatic Contribution Participant may elect, by providing Notice to the Plan Administrator
not later than ninety (90) days after the date of the first Before Tax Contribution made on the
Participant’s behalf pursuant to Section 2.2(b) hereof, to withdraw from his Before Tax
Contributions Account the aggregate amount of Before Tax Contributions made on his behalf with
respect to the first payroll period to which Section 2.2(b) hereof applied to the Automatic
Contribution Participant through the effective date of the withdrawal election (adjusted for
allocable gains and losses to the date of distribution, calculated in accordance with Section
3.6(a) hereof). The date of the first Before Tax Contribution made pursuant to Section 2.2(b)
hereof is the date that the Compensation that is subject to the cash or deferred election would
otherwise have been included in the Automatic Contribution Participant’s income. The effective
date of the Automatic Contribution Participants election shall not be later than the last day of
the payroll period that begins after the date the election is made. Employer Matching
Contributions made on the withdrawn Before Tax Contributions shall be forfeited. If a Participant
elects to withdraw his Before Tax Contributions under this Section 8.6, he shall be deemed to have
elected to not make Before Tax Contributions effective as of the effective date of the withdrawal.

     8.7 Application for Withdrawals; Processing.
A request for a withdrawal shall be made by a Participant by providing Notice to the Plan
Administrator within such period of time as the Plan Administrator may prescribe, subject to
Section 8.6 hereof. The Plan Administrator shall evaluate the written application of a Participant
for a hardship withdrawal in accordance with a uniform and nondiscriminatory policy applicable to
all Participants
similarly situated and shall direct the Trustee to make a hardship distribution to such
Participant upon a finding of such hardship in accordance with the provisions of Section 8.4
hereof. A Participant making application hereunder for a hardship withdrawal shall provide to the
Plan Administrator such information and representations as the Plan Administrator deems necessary
or appropriate. Withdrawal request Notices pursuant to this Article 8 that are properly made shall
be processed by the Plan Administrator and Trustee as soon as practicable after receipt, subject to
complying with the requirements of Section 402(f) of the Code.

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     8.8 Limit on Number of Withdrawals. 
A Participant may make only one withdrawal under Sections 8.1, 8.2 and 8.3 hereof in any
consecutive six (6) month period (except as otherwise permitted under rules adopted and
consistently applied in a uniform and nondiscriminatory manner by the Plan Administrator);
provided, however, that (a) concurrent withdrawals pursuant to such Sections shall be treated as a
single withdrawal, and (b) withdrawals made in connection with a withdrawal pursuant to Section 8.4
hereof shall be permitted without regard to the foregoing restrictions of this Section 8.8 and
shall not be taken into account for purposes of this Section 8.8.

     8.9 Effect of Withdrawals on Investments.
Withdrawals from a Participant’s Accounts pursuant to this Article 8 shall be charged to each
Fund, on a pro rata basis, in which the Participant has a Subaccount under the relevant Accounts.
Withdrawals made pursuant to this Article 8 shall be made as of the Valuation Date as of which the
withdrawal is processed by the Trustee and a Participant’s Accounts shall be adjusted accordingly.

     8.10 Timing and Form of Payment of Withdrawals.
All withdrawals pursuant to this Article 8 shall be paid in cash in a lump sum as of the
Valuation Date that authorized distribution directions are received by the Trustee, provided that
any applicable legal requirements have been satisfied; provided, however, that, in
the case of a withdrawal made on or before December 31, 2009, a Participant may, by giving prior
Notice to the Plan Administrator within such time limit as the Plan Administrator shall prescribe,
elect to have that portion of his withdrawal which is charged against his Temple-Inland Stock Fund,
Guaranty Stock Fund or Forester Stock Fund Subaccount paid in shares of the respective Common Stock, with the value of any fractional shares and any
uninvested funds held in his Company Stock Fund Subaccount paid in cash.

     8.11 Withdrawals Only Available to Employees.
A Participant may make a withdrawal pursuant to this Article 8 only if he is an employee of
the Group at the time of the withdrawal.

ARTICLE 9

PAYMENT OF BENEFITS

     9.1 Distribution of Benefits Upon Occurrence of Distribution Event.

          (a) If a Distribution Event occurs with respect to a Participant, such Participant
may, by prior Notice to the Plan Administrator, elect to receive a distribution of his entire
vested Account

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Balance. As soon as practicable after receipt of a Participant’s distribution
election Notice, the Plan Administrator shall instruct the Trustee to distribute the Participant’s
Account Balance in accordance with the Participant’s election; provided, however, that all
distributions shall be subject to Section 9.1(d) hereof.

          (b) As soon as practicable after the Plan Administrator receives notice of (i) the
occurrence of a Distribution Event with respect to a Participant whose vested Account Balance does
not exceed one thousand dollars ($1,000) (five thousand dollars ($5,000) for periods prior to March
28, 2005, excluding the Participant’s Rollover Account for periods prior to March 28, 2005), or
(ii) the death of a Participant, the Plan Administrator shall instruct the Trustee to distribute
the vested Account Balance of such Participant to the Participant (or in the case of a deceased
Participant, the Participant’s beneficiary, as designated in accordance with Section 2.1(f)
hereof), subject to complying with the requirements of Section 9.1(d) hereof. As soon as
practicable after the Plan Administrator receives notice of the occurrence of a Distribution Event
with respect to a Participant whose vested Account Balance exceeds one thousand dollars ($1,000),
but does not exceed five thousand dollars ($5,000), the Plan Administrator shall instruct the
Trustee to distribute the vested Account Balance of such Participant in a Direct Rollover to an
individual retirement plan designated by the Plan Administrator if the Participant does not elect
to (i) have such distribution paid directly to an Eligible Retirement Plan in accordance with
Section 9.8 hereof, or (ii) receive the distribution directly.

          (c) If a Participant has no balance in his Before Tax Contributions Account and
Qualified Nonelective Contributions Account, and no portion of his Employer Matching Contributions
Account, Company Retirement Contributions Account and Profit Sharing Contributions Account is
vested, at the time the Participant receives a distribution of his entire vested Account Balance,
the Participant shall be deemed to have received a distribution of his entire nonforfeitable
interest in such Accounts (which, since the Participant is not vested, is zero).

          (d) In no event shall the Plan Administrator direct the Trustee to distribute a
Participant’s vested Account Balance prior to satisfying the requirements of Section 402(f) of the
Code.

     9.2 Payment of Benefits by Trustee; Form of Payment.
Except as provided in Section 9.3 hereof, all amounts that become distributable after a
Distribution Event pursuant to Section 9.1 hereof shall be paid in the form of a lump-sum payment
as soon as practicable after the Trustee receives a distribution

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instruction from the Plan
Administrator and any applicable legal requirements have been satisfied. Distributions made in
accordance with this Article from the Funds shall be paid in cash; provided, however, if a
Participant so elects, distributions from a Participant’s Stock Fund Subaccount(s) shall be made in
whole shares of the respective Common Stock with fractional shares and any uninvested funds held in
the Stock Fund Subaccount(s) paid in cash. The amount distributed to a Participant or beneficiary
shall be equal to the applicable Participant’s Account Balance as of the date that the Trustee
processes the distribution instruction.

     9.3 Installment Option for Certain Retiring Participants.
A Participant who has elected to commence installment distributions pursuant to this Section
9.3 prior to January 1, 2008, may elect, by providing Notice to the Plan Administrator, to receive
a lump-sum distribution of the Participant’s remaining Account Balance, in which case no further
payments shall be made with respect to the Participant pursuant to this Plan. As soon as
practicable after the receipt of such an election, the Plan Administrator shall instruct the
Trustee to distribute to the Participant the Participant’s remaining Account Balance. In the event
of the death of such a Participant prior to the payment of all installment payments the Participant
is entitled to pursuant to this Section 9.3, the Participant’s remaining Account Balance shall be
distributed to the Participant’s beneficiary (as designated
in accordance with Section 2.1(f) hereof) in accordance with Section 9.1(b) hereof and no
further payments shall be made with respect to the Participant pursuant to this Plan.

     9.4 Required Minimum Distributions.
Notwithstanding any other provision of the Plan to the contrary (other than the Minimum
Distribution Appendix hereto), the vested portion of a Participant’s Account Balance shall be, or
begin to be, distributed to the Participant not later than the Participant’s Required Beginning
Date. If, on or before a Participant’s Required Beginning Date, the Participant does not die and
does not elect to receive a distribution of his vested Account Balance in the form of a lump sum
payment, (a) the Participant’s vested Account Balance shall begin to be distributed to the
Participant on the Participant’s Required Beginning Date in accordance with regulations issued
under Section 401(a)(9) of the Code over the life of the Participant (or over a period not
extending beyond the life expectancy of the Participant), and (b) the Participant may elect, by
prior Notice to the Plan Administrator, after the Participant’s Required Beginning Date to
accelerate distribution of the Participant’s remaining Account

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Balance in the form of a lump sum
payment described in Section 9.2 hereof. If the Participant dies prior to the distribution of his
entire Account Balance, the Participant’s remaining Account
Balance shall be distributed to his
beneficiary as soon as administratively practicable after the date of the Participant’s death in a
single lump sum payment described in Section 9.2 hereof.

     9.5 Payment to Participant’s Estate.
If there is no person alive to receive and receipt for any payment due under the Plan, the
Plan Administrator shall direct that such payment or payments be made to the estate of the deceased
Participant or the last deceased payee, as the case may be.

     9.6 Incapacity of Payee.
If any person who is entitled to receive any benefits hereunder is, in the sole and absolute
judgment of the Plan Administrator, legally, physically or mentally incapable of personally
receiving and receipting for any distributions, the Plan Administrator in its sole and absolute
discretion may instruct the Trustee to make distribution to such other person, persons, institution
or institutions as in the judgment of the Plan Administrator shall then be maintaining or have
custody over such distributee. The Plan Administrator may rely upon the report of a duly licensed
physician with regard to capacity or may in its
sole and absolute discretion first require persons claiming benefits to obtain an appropriate
court order determining such person’s capacity.

     9.7 Plan Administrator Determines Payee.
Except as otherwise provided by ERISA, the determination of the Plan Administrator as to the
identity of the proper payee for any payment and the amount properly payable shall be conclusive,
and payment in accordance with such determination shall, to the extent thereof, constitute a
complete discharge of all obligations to such payee under the Plan.

     9.8 Rollover Distributions.
(a) A Participant may elect, at the time and in the manner prescribed by the Plan
Administrator, to have any portion of an Eligible Rollover Distribution paid directly to an
Eligible Retirement Plan specified by the Participant as a Direct Rollover. Notwithstanding the
foregoing, a Participant shall not be entitled to elect a Direct Rollover of an amount that is not
in excess of any minimum dollar amount that the Plan Administrator may prescribe from time to time
in accordance with applicable regulations.

          (b) For purposes of this Section 9.8, an “Eligible Rollover Distribution” is any
distribution of all or any portion of a Participant’s Accounts, except that an Eligible Rollover
Distribution

52

 

shall not include (i) any distribution that is one of a series of substantially equal
periodic payments (paid not less frequently than annually) made for a specified period of ten years
or more, (ii) any distribution to the extent that such distribution is required under Section
401(a)(9) of the Code, (iii) the portion of any distribution made prior to January, 2002 that is
not includible in gross income (determined without regard to the exclusion for net unrealized
appreciation with respect to employer securities), (iv) any hardship distribution (within the
meaning of Section 401(k)(2)(B)(i)(IV)) that is made on or after January 1, 2000, or (v) any
withdrawal of default Before Tax Contributions under Section 8.6 hereof.

          (c) For purposes of this Section 9.8, an “Eligible Retirement Plan” is an individual
retirement account described in Section 408(a) of the Code, an individual retirement annuity
described in Section 408(b) of the Code, an annuity plan described in Section 403(a) of the Code,
or a qualified trust described in Section 401(a) of the Code, that accepts the Participant’s
Eligible Rollover Distribution. Effective January 1, 2002, with respect to Eligible Rollover
Distributions made on or after such date, the
term “Eligible Retirement Plan” 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. Notwithstanding the foregoing, with respect to the portion of an Eligible
Rollover Distribution that is not includible in gross income (determined without regard to the
exclusion for net unrealized appreciation on employer securities), the term “Eligible Retirement
Plan” shall only include an individual retirement account or annuity described in Section 408(a) or
(b) of the Code, or a qualified defined contribution plan under Section 401(a) or 403(a) of the
Code that agrees to separately account for such amounts, 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.

          (d) The surviving spouse of a deceased Participant or a Participant’s spouse, former
spouse, or surviving spouse who is an alternate payee under a qualified domestic relations order
(within the meaning of Section 414(p) of the Code) shall be treated as a Participant for purposes
of this Section 9.8; provided, however, that in the case of an Eligible Rollover
Distribution made before January 1, 2002, to a

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surviving spouse, the term “Eligible Retirement
Plan” shall include only an individual retirement account or individual retirement annuity.

          (e) For purposes of this Section 9.8, a “Direct Rollover” is a payment by the Plan
to the Eligible Retirement Plan specified by the Participant.

          (f) Effective for distributions made after December 31, 2006, and notwithstanding
Sections 9.8(a) through (d) hereof, if a non-spouse beneficiary is eligible to receive a
distribution of a Participant’s Accounts, which distribution would otherwise constitute an Eligible
Rollover Distribution, and the non-spouse beneficiary is a designated beneficiary (within the
meaning of Treasury Regulation Section 1.401(a)(9)-4), then to the extent permitted by Section
402(c) of the Code, the non-spouse beneficiary may direct a trustee to trustee transfer of the
distribution of the Participant’s Accounts to an individual retirement account described in Section
408(a) of the Code or an individual retirement annuity described in Section 408(b) of the Code
(other than an endowment contract) established for the purpose of receiving the distribution on
behalf of the non-spouse beneficiary, and (i) such transfer shall be treated as a
Direct Rollover of an Eligible Rollover Distribution for purposes of Section 402(c) of the
Code, and (ii) such individual retirement account or individual retirement annuity shall be treated
as an inherited individual retirement account individual retirement annuity (within the meaning of
Section 408(d)(3)(C)).

          (g) The provisions of this Section 9.8 shall be effective as of January 1, 1993,
except as otherwise provided herein.

     9.9 Distributions Pursuant to Qualified Domestic Relations Orders.
Notwithstanding any other provision of Article 8 or this Article 9 to the contrary, all or a
portion of a Participant’s Accounts may be distributed at any time to an “alternate payee” (within
the meaning of Section 414(p) of the Code) pursuant to a “qualified domestic relations order”
(within the meaning of Section 414(p) of the Code) to the extent permitted by applicable
regulations.

ARTICLE 10

LOANS

     10.1 Availability of Loans; Application for Loans.

          (a) Subject to the terms and conditions of this Article 10, the Plan Administrator
may, in its sole discretion, direct the Trustee to loan to an Eligible Borrower as of any Valuation
Date
an

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amount from the Eligible Borrower’s Accounts that is not less than $1,000 and that, when
added to any other Loan outstanding to the Eligible Borrower does not exceed the lesser of (i)
fifty percent (50%) of the Eligible Borrower’s vested Account Balance; or (ii) $50,000 reduced by
the highest outstanding balance of loans, during the twelve (12) month period immediately preceding
the date the Loan is made, from the Plan and from any other tax qualified retirement plan
maintained by the Group.

          (b) Loans shall be made available to Eligible Borrowers on a reasonably equivalent
basis without regard to race, color, religion, sex, age or national origin and after giving
consideration only to those factors which would be considered in a normal commercial setting by an
entity in the business of making similar types of loans. Notwithstanding the foregoing, the Plan
Administrator may impose different terms and conditions on Loans made at different times and to
different Eligible Borrowers. The Plan Administrator may change the terms of any outstanding loan
to the extent required by applicable law.

          (c) An application for a Loan shall be made by an Eligible Borrower by providing
Notice to the Plan Administrator within such period of time prior to the date of the Loan as the
Plan Administrator may prescribe.

     10.2 Terms of Loans.

          (a) Loans shall bear a reasonable rate of interest established by the Plan
Administrator that will provide the Plan with a return commensurate with the interest rates charged
by entities in the business of lending money for loans which would be made under similar
circumstances.

          (b) Loans shall be adequately secured, but in no event shall more than fifty percent
(50%) of an Eligible Borrower’s vested Account Balance under the Plan at the time of the Loan be
considered as security. The adequacy of such security shall be determined by the Plan
Administrator, in its sole discretion, in light of the type and amount of security which would be
required in the case of an otherwise identical transaction in a normal commercial setting between
unrelated parties on arm’s-length terms.

          (c) The period of repayment for each Loan shall be arrived at by mutual agreement
between the Plan Administrator and an Eligible Borrower, but such period shall not in any case
exceed five (5) years; provided, however, that a Residential Loan may have a term of up to
twenty-five (25) years.

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          (d) An Eligible Borrower shall be permitted to have no more than one (1) outstanding
Loan at any time; except in the case of an Eligible Borrower who has two (2) outstanding Loans as
of December 31, 2007, such Eligible Borrower may continue to repay both Loans in accordance with
their terms as of such date, but he may not obtain another Loan hereunder until such Loans are no
longer outstanding.

          (e) Loan repayments by a Borrower who is an employee of the Group shall be made
through regular payroll deductions made not less frequently than quarterly from amounts otherwise
payable to the Eligible Borrower. Any Borrower who is not receiving any compensation from a member
of the Group from which payroll deductions can be made shall be required to make required Loan
repayments by money order or a certified or cashier’s check delivered to the office of the Plan
Administrator on or before their respective due dates or otherwise in accordance with rules
prescribed by the Plan Administrator. Cash payments (including personal checks) shall not be
accepted.

          (f) A Borrower shall be permitted to prepay, without penalty, all of the outstanding
balance of a Loan and accrued interest thereon at any time; provided, however, that partial
prepayments shall not be permitted.

          (g) Each Loan shall be evidenced by such documentation as may be required by the
Plan Administrator, including but not limited to an authorization from each Borrower who is an
employee of the Group to permit its Employer to effect repayment through regular payroll
deductions.

          (h) Notwithstanding any other provision of this Plan to the contrary, no
distribution shall be made to any Borrower from that portion of a Borrower’s Before Tax
Contributions Account that secures one or more Loans made to such Borrower unless and until all
such loans have been repaid.

          (i) Each Loan shall have such additional terms and conditions as may be determined
by the Plan Administrator in its sole discretion, including, but not limited to, terms and
conditions relating to application and administration fees, events of default, prepayments, and
required security.

          (j) A loan that was made to a Participant under the terms of a Merged Plan and that
is transferred to this Plan in connection with the merger of the Merged Plan into this Plan or that
was rolled over into this Plan pursuant to Section 3.7 hereof shall be treated as a Loan hereunder
except that the terms

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of such a Loan shall be required to comply with the requirements of this
Article 10 only to the extent determined by the Plan Administrator in its discretion.

     10.3 Events of Default.

          (a) The outstanding balance of any Loan shall, at the sole option of the Plan
Administrator, immediately become due and payable without further notice or demand, upon the
occurrence, with respect to a Borrower of any of the following events of default:

               (i) any payment of principal or accrued interest on a Loan remains due and unpaid
for a period of ten (10) calendar days after the same becomes due and payable under the terms of
the loan, provided that the Plan Administrator is authorized to allow a grace period that does not
continue beyond the last day of the calendar quarter following the calendar quarter in which the
required payment was not made;

               (ii) the commencement of a proceeding in bankruptcy, receivership or insolvency by
or against the Borrower, but only to the extent then permitted under applicable federal law;

               (iii) the later of the termination of the employment of the Borrower with the Group
for any reason or the Borrower ceasing to be an Eligible Borrower;

               (iv) the Borrower attempts to make an assignment for the benefit of creditors of
that portion of his Before Tax Contributions Account securing his Loan or in any other security for
his Loan;

               (v) a qualified domestic relations order (as such term is then defined in Section
414(p) of the Code) with respect to the Borrower is received by the Plan Administrator; or

               (vi) any Loan proceeds are used, directly or indirectly, by the Borrower to purchase
or carry securities (as such term is then defined for purposes of Regulation G of the Federal
Reserve Board as promulgated pursuant to Section 7 of the Securities and Exchange Act of 1934).

          (b) Any payments of principal or interest on a Loan not paid when due shall bear
such interest thereafter as may be specified by the terms of the loan. The payment and acceptance
of any sum or sums at any time on account of a Loan after the occurrence of an event of default, or
any failure to

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act to enforce the rights granted hereunder upon the occurrence of an event of
default, shall not be a waiver of the right of acceleration set forth in Section 10.3(a) hereof.

          (c) If an event of default and the acceleration of the outstanding balance of any
Loan shall occur as described in Section 10.3(a), the Plan Administrator shall have the right to
direct the Trustee to pursue any remedies available to a creditor at law or under the terms of the
Loan, including the right to execute on the security for the Loan in satisfaction of the
outstanding balance of the Loan; provided, however, that the Plan Administrator shall not have the
right to direct the Trustee to execute on any amounts credited to a Borrower’s Before Tax
Contributions Account before the date on which such amounts may be distributed without adversely
affecting the tax-qualified status of the Plan.

     10.4 Accounting for Loans.
A Participant Loan Subaccount shall be established as of the date a Loan is made to an
Eligible Borrower and an amount equal to the principal amount of the Loan shall be transferred from
the Eligible Borrower’s Accounts to his Participant Loan Subaccount, with the amount transferred
coming (a) first from
earnings allocated to the Eligible Borrower’s Before Tax Contributions Account, until
exhausted, (b) second, from Before Tax Contributions, and (c) third, pro rata from the
Participant’s other Accounts based on the vested balance of such Accounts. The Loan shall be
treated as an investment of the funds credited to the Eligible Borrower’s affected Accounts. Cash
equal to the amount of the Loan shall be obtained by liquidating, on a pro rata basis, the
investments allocated to the Subaccounts under the affected Accounts. Payments of principal and
interest on a Loan shall be credited to the Borrower’s Accounts that have a Loan Subaccount in
proportion to the balances in such Subaccounts and invested in the various Funds in the same
proportion as the Eligible Borrower’s current contributions are invested; provided, however, if the
Borrower is not making any current Before Tax Contributions to the Plan, the payments shall be
invested in the Target Retirement Fund appropriate for the Borrower’s age.

ARTICLE 11

ADMINISTRATION OF THE PLAN

     11.1 Authority of Plan Administrator.

          (a) The Plan shall be administered on behalf of the participating Employers by an
administrator (the “Plan Administrator”) appointed by the Board of Directors or Chief Executive
Officer of the Company.

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          (b) Except as otherwise provided herein, the Plan Administrator shall be solely
responsible for the administration, operation and interpretation of the Plan. The Plan
Administrator shall establish rules and regulations appropriate for the administration of the Plan.
It shall have the exclusive right and discretion to interpret the Plan and to decide any and all
matters arising thereunder or in connection with the administration of the Plan in its sole
discretion, and it shall endeavor to act, whether by general rules or by particular decisions, so
as not to discriminate in favor of any person or class of persons. Except as otherwise provided by
ERISA, such decisions, actions and records of the Plan Administrator shall be conclusive and
binding upon the Company, the Employers and all persons having or claiming to have any right or
interest in or under the Plan.

          (c) The Plan Administrator may delegate to (i) any agent or agents of the Group, or
(ii) any employee or employees of the Group, severally or jointly, the authority to perform any act
or function in connection with the administration of the Plan. The Plan Administrator may also, in
its
discretion, contract with one or more third parties to perform any act or function in
connection with the administration of the Plan and with respect to such acts or functions,
references herein to the Plan Administrator shall be deemed to be references to such third party.

          (d) The Plan Administrator shall maintain such records as are required under ERISA
or under the Code and such additional records as it deems necessary or appropriate showing the
fiscal transactions of the Plan.

     11.2 Claims Procedure.

          (a) If any Participant, beneficiary or other payee (a “claimant”) claims to be entitled to a
benefit under the Plan and the Plan Administrator determines that such claim should be denied in
whole or in part, the Plan Administrator shall notify such claimant of its decision in writing
(which may be provided electronically). Such notification will be written in a manner calculated
to be understood by the claimant and will contain (i) specific reasons for the denial, (ii)
specific reference to pertinent Plan provisions, (iii) a description of any additional material or
information necessary for the claimant to perfect such claim and an explanation of why such
material or information is necessary, and (iv) a description of the Plan’s review procedures and
the time limits applicable to such procedures, including a statement of the claimant’s right to
bring a civil action under Section 502(a) of ERISA following the rendering of an

59

 

adverse decision
on review. Such notification will be given within a reasonable period of time, but not later than
ninety (90) days after the claim is received by the Plan Administrator, unless the Plan
Administrator determines that special circumstances require an extension of time for processing the
claim. If the Plan Administrator determines that such an extension of time is required, written
notice of the extension shall be provided to the claimant prior to the end of the initial ninety
(90) day period. The extension notice shall indicate the special circumstances requiring the
extension of time and the date by which the Plan Administrator expects to render its decision. In
no event shall the extension exceed an additional ninety (90) days from the end of the initial
ninety (90) day period. Any electronic notification provided by the Plan Administrator under this
Section 11.2 shall comply with the standards imposed by 29 C.F.R. 2520.104b-1(c)(1)(i)-(iv).

               (i) Within sixty (60) days after the date on which a claimant receives a written
notice of a denied claim, the claimant may file a written request with the Plan Administrator for a
review of the denied claim. If the claimant requests a review of the denied claim, the
claimant shall be entitled to submit to the Plan Administrator written comments, documents, records
and other information relating to the claim for benefits and to receive, upon request and free of
charge, reasonable access to, and copies of, all documents, records and other information relevant
to the claimant’s claim for benefits. The Plan Administrator shall perform its review taking 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. The Plan Administrator will notify the claimant of its decision in writing
(which may be provided electronically). If the claim is denied, the notification will be written
in a manner calculated to be understood by the claimant and will contain (A) the specific reasons
for the denial, (B) references to pertinent provisions of the Plan, (C) a statement that the
claimant is entitled to receive, upon request and free of charge, reasonable access to, and copies
of, all documents, records and other information relevant to the claimant’s claim for benefits, and
(D) a statement of the claimant’s right to bring an action under Section 502(a) of ERISA.

               (ii) The review provided for by Section 11.2(b)(i) will be made within a reasonable
period of time, but not later than sixty (60) days after the Plan Administrator receives the
request for review, unless the Plan Administrator determines that special circumstances require an

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extension of time for processing the claim. If the Plan Administrator determines that an extension
of time is required, written notice of the extension shall be furnished to the claimant prior to
the end of the initial sixty (60) day period. The extension notice shall indicate the special
circumstances requiring the extension of time and the date by which the Plan Administrator expects
to render its decision. In no event shall the extension exceed an additional sixty (60) days from
the end of the initial sixty (60) day period. If the extension of time is needed due to the
claimant’s failure to submit information necessary to make a decision, the period during which the
Plan Administrator must make a decision shall be tolled from the date the extension notice is sent
to the claimant until the date the claimant responds to the request for additional information.

     11.3 Financial Statements.
The Plan Administrator shall engage a “qualified public accountant” (as defined in Section
103(a)(3)(D) of ERISA) to prepare such audited financial statements of the operation of the Plan
as shall be required by ERISA or by the Code.

     11.4 Liability of Plan Administrator.
The Plan Administrator (and each member of any committee that serves as the Plan
Administrator) shall not be liable for any act or omission on its own part, excepting only its own
willful misconduct or gross negligence except as is otherwise expressly provided by ERISA. To the
fullest extent permitted by applicable laws and to the extent not insured against by any insurance
company pursuant to the provisions of any applicable insurance policy, the Company shall indemnify
and save harmless the Plan Administrator (and each member of any committee that serves as the Plan
Administrator) against any and all claims, demands, suits or proceedings in connection with the
Plan and Trust Fund that may be brought by Participants or their spouses or other designated
beneficiaries (or estates), Employees of participating Employers or by any other person,
corporation, entity, government or agency thereof; provided, however, that such indemnification
shall not apply with respect to acts or omissions of willful misconduct or gross negligence. The
Company may, at the Company’s expense, settle any such claim or demand asserted or suit or
proceeding brought against the Plan Administrator (or any member of any committee that serves as
the Plan Administrator) when such settlement appears to be in the best interests of the Company.

     11.5 Standard of Judicial Review of Plan Administrator Action.
The Plan Administrator has full and absolute discretion in the exercise of each and every
aspect of the rights, power, authority and

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duties retained or granted it under the Plan, including
without limitation, the authority to determine all facts, to interpret this Plan, to apply the
terms of this Plan to the facts determined, to make decisions based upon those facts and to make
any and all other decisions required of it by this Plan, such as the right to benefits, the correct
amount and form of benefits, the determination of any appeal, the review and correction of the
actions of any prior administrative committee, and the other rights, powers, authority and duties
specified in this Article and elsewhere in this Plan. Notwithstanding any provisions of law, or
any explicit or implicit provision of this document, any action taken, or finding, interpretation,
ruling or decision made by the Plan Administrator in the exercise of any of its rights, powers,
authority or duties under this Plan shall be final and conclusive as to all parties,
including, without limitation, all Participants, former Participants and beneficiaries,
regardless of whether the Plan Administrator or one or more of its members may have an actual or
potential conflict of interest with respect to the subject matter of the action, finding,
interpretation, ruling or decision. No final action, finding, interpretation, ruling or decision
of the Plan Administrator shall be subject to de novo review in any judicial proceeding. No final
action, finding, interpretation, ruling or decision of the Plan Administrator may be set aside
unless it is held to have been arbitrary and capricious by a final judgment of a court having
jurisdiction with respect to the issue.

ARTICLE 12

MANAGEMENT OF THE TRUST FUND

     12.1 Designation of Trustee.
All contributions shall be made to, and held in trust by, the Trustee of the Plan, who shall
be appointed by the Plan Administrator, with such powers in the Trustee as to investment,
reinvestment, control and disbursement of the Trust Fund as may be provided in the Trust Agreement
and shall be in accordance with the Plan and permitted under ERISA and under the Code. The Plan
Administrator may remove any Trustee at any time, with or without cause, upon reasonable notice,
and upon such removal or upon the resignation of any Trustee, the Plan Administrator shall promptly
designate a successor Trustee.

     12.2 Plan Assets Held in Trust.

          (a) All assets held by the Trustee under the Trust Fund shall be held in trust for
the exclusive benefit of Participants or, if deceased, their spouses or other designated
beneficiaries (or estates),

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and no part of the corpus or income of the Trust Fund shall be used
for, or diverted to, purposes other than for the exclusive benefit of such persons under the Plan
or for the payment of reasonable expenses of administering the Plan; provided, however, that if any
contribution is made by an Employer as the result of a mistake of fact made in good faith or is
conditioned on the deductibility of such contribution under Section 404(a) of the Code, that
Employer may direct the Trustee to return within one (1) year after the date of the payment or
after the date the deduction is denied, whichever is applicable, the amount contributed by mistake
of fact or the amount that is not deductible, whichever is applicable. Earnings attributable to
any excess Employer contributions shall not be returned to that Employer, but losses shall
reduce the amount to be returned. All contributions to the Plan are conditioned on their
deductibility under Section 404 of the Code.

          (b) No person shall have any interest in or right to any part of the earnings of the
Trust Fund, or any rights in, to or under the Trust Fund or any part of its assets except to the
extent expressly provided in the Plan. Notwithstanding anything herein to the contrary, the
spouse, former spouses, beneficiary or any other person claiming benefits on behalf of any
Participant shall have absolutely no rights whatsoever under the Plan prior to the death of that
Participant except as may otherwise be expressly provided under ERISA (e.g., spousal consent rights
and qualified domestic relations orders).

     12.3 Appointment of Investment Manager.

          (a) The
Investment Committee may appoint one or more investment managers to manage
any assets of the Plan. As used herein, the term “investment manager” shall mean any person or
entity who: (a) has power to manage, acquire or dispose of any assets of the Plan; (b) is (i)
registered as an investment advisor under the Investment Advisors Act of 1940, (ii) a bank, as
defined in that Act, or (iii) an insurance company qualified, under the laws of more than one
state, to perform services described in (a) above; and (c) has acknowledged in a writing delivered
to the Investment Committee and the Trustee that it is a fiduciary with respect to the Plan.

          (b) If the Investment Committee determines that there is a potential for a conflict
of interest (or the appearance of a conflict of interest) relating to the operation and
administration of the Plan with respect to the investment of the Plan’s assets in any of the Stock
Funds and/or the provisions of

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Sections 7.7 through 7.9 hereof, the Investment Committee, may, in
its discretion, appoint one or more independent fiduciaries and/or investment managers (each, an
“Independent Fiduciary”) to undertake all or a portion of the following duties and
responsibilities:

               (i) serve as Plan fiduciary with sole responsibility for ensuring compliance with
ERISA with respect to participant communications and disclosures relating to the applicable Stock
Fund, including disclosures and communications relating to proxy voting; and

               (ii) serve as Plan fiduciary and investment manager for the applicable Stock Fund
and the investment of Plan assets in such Fund, with sole responsibility for ensuring
compliance with ERISA with respect to Plan investments in the applicable Stock Fund and the
applicable Common Stock (including with respect to tender offers) and the voting of proxies for the
applicable Common Stock, taking into account the terms of the Plan (including the Plan’s provisions
relating to the maintenance of the applicable Stock Fund and participant direction of investments
and the voting of proxies).

               (iii) serve as Plan fiduciary with sole responsibility for ensuring compliance with
confidentiality requirements under Section 7.9 hereof and the regulations under Section 404(c) of
ERISA.

          (c) Each of the Investment Committee and any Independent Fiduciary shall be a “named
fiduciary” for purposes of Section 402(a)(2) of ERISA.

ARTICLE 13

AMENDMENT OF THE PLAN

     13.1 Amendment.
The Plan may be wholly or partially amended or otherwise modified at any time by the Board of
Directors or Chief Executive Officer of the Company, or by the Plan Administrator with respect to
Appendices I and II hereto. The Plan Administrator has the authority to amend or otherwise modify
the Plan in all other respects, except for Plan amendments that would materially alter the cost of
providing benefits under the Plan; provided, however, that:

          (a) except as otherwise provided herein and permitted under the Code and under
ERISA, no amendment or modification shall be made at any time prior to the satisfaction of all
liabilities under the Plan with respect to Participants or, if deceased, their spouses or other
designated beneficiaries

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(or estates) and with respect to the expenses of the Plan which would
permit any part of the corpus or income of the Trust Fund to be used for, or diverted to, purposes
other than for the exclusive benefit of such persons under the Plan and for the payment of the
expenses of the Plan;

          (b) no amendment or modification shall have any retroactive effect so as to deprive
any person of any benefits already accrued, except that any amendment may be made retroactive which
is necessary to bring the Plan into conformity with governmental regulations in order to retain the
qualification of the Plan and Trust Fund under Sections 401(a), 401(k) and 501(a) of the Code
or to meet the requirements of ERISA and other applicable laws;

          (c) no amendment or modification shall be made which substantially increases the
duties or liabilities of the Trustee, the Plan Administrator, the Investment Committee or any
Employer without the prior written consent of the party so affected; and

          (d) no amendment shall be made which changes the vesting requirements in Article 6
hereof or in Section 16.4 hereof, if applicable, unless each Participant whose Period of Service
was at least three (3) years as of the effective date of such amendment is permitted to elect to
remain under the pre-amendment vesting requirements with respect to all of his Plan benefits
accrued both before and after the effective date of such amendment.

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ARTICLE 14

DISCONTINUANCE OF THE PLAN

     14.1 Right To Terminate Plan. The Plan may be terminated, in whole or in part, at any time
by the Board of Directors or Chief Executive Officer of the Company, but only upon condition that
such action is taken as shall render it impossible for any part of the corpus or income of the
Trust Fund to be used for, or diverted to, purposes other than for the exclusive benefit of the
Participants or, if deceased, their spouses or other designated beneficiaries (or estates) under
the Plan and for the payment of reasonable costs of administering the Plan, except as otherwise
provided herein and permitted under ERISA and/or under the Code. In the event of any termination
of the Plan, in whole or in part, or the complete discontinuance of contributions hereunder, the
Employer Matching Contributions Account, Company Retirement Contributions Account and any Profit
Sharing Contributions Account of each Participant affected by the partial or complete termination
shall become fully vested and nonforfeitable.

     14.2 Valuation of Trust Fund upon Termination. If the Plan is terminated, in whole or in
part, pursuant to Section 14.1, and the Board of Directors or Chief Executive Officer of the
Company determines that the Trust Fund shall be terminated, the Trust Fund shall be revalued as of
such date, and the current value of all Accounts shall be distributed in accordance with Article 9.

     14.3 Continuation of Trust. If the Plan is terminated, in whole or in part, pursuant to
Section 14.1, but the Board of Directors or Chief Executive Officer of the Company determines that
the Trust Fund shall be continued pursuant to its terms and the provisions of this Section, no
further contributions shall be made by either the Participants or by the Employers, but the Trust
Fund shall be administered as though the Plan were otherwise in full force and effect. If the
Trust Fund is subsequently terminated, the provisions of Section 14.2 shall then apply.

     14.4 Plan Mergers and Transfers of Assets and Liabilities.

          (a) No merger or consolidation with, or transfer of assets or liabilities to, any
other pension or retirement plan shall be made unless the benefits each Participant in the Plan
would receive if the other plan were terminated immediately after such merger, consolidation or
transfer of assets and liabilities would be at least as great as the benefits he would have
received had the Plan been terminated immediately before such merger, consolidation or transfer.

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          (b) The Plan Administrator, in its sole discretion, may at any time (i) transfer to
an Affiliate Plan assets and liabilities relating to Participants who are covered by such Affiliate
Plan and (ii) accept the transfer of assets and liabilities to this Plan from an Affiliate Plan
with respect to Participants who have account balances under such Affiliate Plan. In the
discretion of the Plan Administrator, and in accordance with rules prescribed by the Plan
Administrator, assets may be transferred between this Plan and an Affiliate Plan either in cash or
in-kind.

          (c) All transfers of account balances between this Plan and an Affiliate Plan and
any merger of a Merged Plan into this Plan shall comply with Sections 411(a)(10) of the Code
(relating to changes in vesting schedules) and 411(d)(6) of the Code (relating to reductions of
accrued benefits and elimination of optional forms of benefit). To the extent that an Affiliate
Plan or a Merged Plan provides an optional form of benefit with respect to all or a portion of an
amount transferred to this Plan that is not otherwise available under this Plan, such optional form
of benefit shall nonetheless be provided under this Plan with respect to such applicable portion of
the transferred amount under the same terms and conditions as such optional form of benefit was
provided under the transferee Affiliate Plan or Merged Plan as of the date of transfer, subject to
such terms and conditions as the Plan Administrator may impose that are consistent with the
requirements of Section 411(d)(6) of the Code. The Plan Administrator may establish such accounts
and subaccounts as it deems necessary or appropriate to account for amounts transferred to the Plan
pursuant to this Section 14.4(c). If the assets of any Merged Plan that are transferred to this
Plan in connection with a Plan Merger include one or more loan notes evidencing one or more loans
made to a participant in a Merged Plan, such loans shall be administered in accordance with their
respective terms except to the extent determined otherwise by the Plan Administrator.

          (d) Notwithstanding the provisions of Section 14.4(c) hereof, the merger of a Merged
Plan into this Plan or the transfer of account balances from a Merged Plan to this Plan shall, as
of the applicable Merger Date, constitute an amendment that (i) except as otherwise provided, is
adopted and effective as of the applicable Merger Date and (ii) causes all optional forms of
benefit made available under this Plan pursuant to Section 14.4(c) hereof that would not otherwise
be available hereunder (each, a “Protected Benefit”) to cease to be available hereunder to a
Participant to the maximum extent permitted under Treasury Regulation Section 1.411(d)-4, provided
that (A) the amendment shall not apply with

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respect to any distribution to a Participant with an annuity starting date that is earlier
than the date on which such amendment is effective with respect to such Participant and (B) no
Protected Benefit shall cease to be available hereunder to a Participant unless the Participant is
entitled to elect to receive that portion of the Participant’s Account Balance that could otherwise
be paid in the form of the Protected Benefit in the form of a single-sum distribution form that is
otherwise identical (within the meaning of Treasury Regulation Section 1.411(d)-4) to the Protected
Benefit.

          (e) The amendments made to the Appendices of this Plan by the December 1, 2001
amendment and restatement of this Plan shall not apply with respect to any distribution to a
Participant that occurs earlier than the earlier of (i) the 90th day after the date that the
Participant has been furnished with a summary that reflects the amendments and that satisfies 29
C.F.R. 2520.104b-3, or (ii) January 1, 2003.

          14.5 Certain Spin-Offs and Mergers. Effective as of 11:59 P.M. December 31, 2004
the Walter Mortenson Profit Sharing Plan was merged with and into the Plan, with this Plan being
the surviving plan.

ARTICLE 15

STATEMENT OF INTENT

     15.1 Qualification. The Plan and the related Trust Agreement are intended and designed to
qualify under Sections 401(a), 401(k), and 501(a) of the Code and the Plan is hereby designated a
profit sharing plan for purposes of Sections 401(a), 401(k), 402, 412 and 417 of the Code.
Anything contained in the Plan to the contrary notwithstanding, if the Internal Revenue Service
determines that the Plan and the related Trust Agreement do not meet the requirements of Sections
401(a), 401(k) and 501(a) of the Code, then the Plan Administrator shall be entitled to make such
modifications, alterations and amendments of the Plan and the related Trust Agreement as are
necessary to retain a favorable determination and such modifications, alterations and amendments
may be effective retroactively to the extent required to retain a favorable determination. The
Plan Administrator and/or the Company may, in their discretion, take any and all such actions as
they deemed necessary or appropriate with respect to the administration and operation of the plan,
including taking any corrective action authorized under the Internal Revenue Service Employee Plans
Compliance Resolution Program (or any successor or similar program), for purposes of

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maintaining the Plan’s and Trust’s compliance with the requirements of Sections 401(a), 401(k)
and 501(a) of the Code.

     15.2 Section 404(c) of ERISA. This Plan is designed to satisfy the requirements of Section
404(c) (including 404(c)(5)) of ERISA and the regulations thereunder.

     15.3 Responsibility of Named Fiduciaries. It is declared to be the express purpose and
intention of the Plan that each “named fiduciary” as such term is defined in Section 402(a)(2) of
ERISA shall have individual responsibility for the prudent execution of the specific functions and
duties assigned to him, and none of such responsibilities or any other responsibility shall be
shared by two (2) or more of such named fiduciaries unless such sharing shall be provided by a
specific provision of the Plan or of the Trust Agreement. Whenever one (1) named fiduciary is
required by the Plan or by the Trust Agreement to follow the directions of another named fiduciary,
the two (2) named fiduciaries shall not be deemed to have assigned a shared responsibility, but the
responsibility of the named fiduciary giving the directions shall be deemed his sole
responsibility, and the responsibility of the named fiduciary receiving those directions shall be
to follow them insofar as such instructions are on their face proper under applicable law and not
prohibited under Section 4975(c) of the Code or under Section 406 of ERISA.

     15.4 Legal Rights and Liabilities. It is further declared to be the express purpose and
intention of the Plan that, except as otherwise provided by ERISA, no liability whatsoever shall
attach to or be incurred by the shareholders, employees or directors of the Company or of any
Employer or of any representatives appointed hereunder by the Board of Directors or Chief Executive
Officer of the Company under or by reason of any of the terms and conditions of the Plan. Neither
the establishment and maintenance of the Plan nor any provision or amendment thereof nor any act or
omission under or resulting from the operation of the Plan shall be construed:

          (a) as conferring upon any Employee, Participant, spouse, beneficiary or any other
person, firm, corporation or association, any legal or equitable right or claim against the Plan
Administrator, the Company, any Employer, the Trustee, or any shareholder, officer, employee or
director of any Employer, except to the extent that such right or claim shall be specifically and
expressly provided in the Plan or provided by law. Any and all such rights and claims, whether
arising by common law or in equity or created by statute, are hereby expressly waived and released
to the fullest extent permitted by law

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by every Employee on behalf of himself, his spouse or other beneficiary and any and all other
persons who might claim through him as a condition of and as a part of the consideration for the
contributions made by the Employers under the Plan and for the receipt of benefits hereunder;

          (b) as an agreement, consideration or inducement of employment or as affecting in
any manner the rights or obligations of the Employers or of any Employee to continue or to
terminate the employment relationship at any time; or

          (c) as creating any responsibility or liability of the Plan Administrator, the
Employers or the Trustee for the validity or effect of the Plan or of any investment at any time
included in the Trust Fund.

ARTICLE
16

TOP-HEAVY RULES

     16.1 Applicability of Rules. The rules set forth in this Article 16 shall be applicable
with respect to any Plan Year in which the Plan is determined to be a Top-Heavy Plan. The
provisions of this Article 16 shall be applied only to the extent necessary to comply with Section
416 of the Code and in a manner consistent with all requirements imposed under Section 416 of the
Code.

     16.2 Determination of Top-Heavy Status. The Plan shall be considered a Top-Heavy Plan with
respect to any Plan Year if as of the last calendar day of the immediately preceding Plan Year (the
“determination date”):

          (a) The present value of the Accrued Benefits of key employees (as such term is
defined below) exceeds sixty percent (60%) of the present value of the Accrued Benefits of all
Participants and former Participants other than former key employees (as such term is defined
below); provided, however, that the Accrued Benefits of any Participant who has not performed any
services for the Group as an employee during a five (5) year period ending on the determination
date (as such term is defined above) shall be disregarded; or

          (b) the Plan is part of a required aggregation group (as such term is defined below)
and the required aggregation group is top-heavy; provided, however, that the Plan shall not be
considered a Top-Heavy Plan with respect to any Plan Year in which the Plan is part of a required
or permissive aggregation group (as such terms are defined below) which is not top-heavy. For
purposes of this Article

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16, the term “key employee” shall have the meaning prescribed in Section 416(i) of the Code
and the regulations thereunder.

          (c) For purposes of this Article 16, the term “required aggregation group” shall
include:

               (i) all qualified retirement plans maintained by the Group in which a key employee
(as such term is defined above) is a participant, and

               (ii) any other qualified retirement plans maintained by the Group which enable any
qualified retirement plan described in the preceding clause (i) above to meet the requirements of
Section 401(a)(4) or of Section 410 of the Code.

          (d) For purposes of this Article 16, the term “permissive aggregation group” shall
include all qualified retirement plans that are part of a required aggregation group (as such term
is defined above) and any other qualified retirement plans maintained by the Group if such group
will continue to meet the requirements of Sections 401(a)(4) and 410 of the Code.

          (e) Solely for the purpose of determining if the Plan, or any other plan included in
a required aggregation group of which the Plan is a part, is top-heavy (within the meaning of
Section 416(g) of the Code), the Accrued Benefits of an Employee other than a key employee shall
be determined under:

               (i) the method, if any, that uniformly applies for accrual purposes under all plans
maintained by the Group, or

               (ii) if there is no such method, as if such benefit accrued not more rapidly than
the slowest accrual rate permitted under the fractional accrual rule of Section 411(b)(1)(C) of the
Code.

     16.3 Determination of Accrued Benefits. For purposes of this Article 16, Accrued Benefits
with respect to any Plan Year shall be determined as of the determination date (as such term is
defined in Section 16.2) for that Plan Year based on Account balances as of the most recent
Valuation Date within a consecutive twelve (12) month period ending on such determination date;
provided, however, that such Account balances shall be adjusted to the extent required by Section
416 of the Code to increase such Account balances by the amount of any Employer or Participant
contributions and of any rollovers or plan-to-plan transfers (other than rollovers or plan-to-plan
transfers which are initiated by a Participant from any

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qualified retirement plan maintained by an unrelated employer after December 31, 1983) made
and allocated after the Valuation Date but on or before such determination date and by any
distributions made to Participants prior to the Valuation Date during any of the five (5)
consecutive Years immediately preceding the Plan Year for which the determination as to whether the
Plan is a Top-Heavy Plan is being made (including distributions from a terminated plan which, if
not terminated, would have been part of a required aggregation group (as such term is defined in
Section 16.2)) and to reduce such Account balances by any rollovers or plan-to-plan transfers made
to the Plan on or before the Valuation Date which are initiated by a Participant from any qualified
retirement plan maintained by an unrelated employer.

     16.4 Vesting for Top-Heavy Years. Notwithstanding the provisions of Article 6, with
respect to any Plan Year in which the Plan is determined to be a Top-Heavy Plan, a Participant’s
Accrued Benefit which is derived from Employer Retirement or Matching contributions shall vest in
accordance with the following vesting schedule unless such Participant’s vested benefit percentage,
as determined under Article 6, is greater:

	 	 	 
	Period of Service

	 	Vested Percentage of Employer Account Shall Be
	Less than three (3) years

	 	zero percent (0%)
	Three (3) years or more

	 	one hundred percent (100%)

provided, however, that if the Plan becomes a Top-Heavy Plan and subsequently
ceases to be such, the vesting schedule shown above shall continue to apply but only with respect
to those Participants whose Period of Service is equal to or greater than three (3) years as of the
last calendar day of the final Top-Heavy Year.

     16.5 Contributions for Top-Heavy Years. With respect to any Plan Year in which the Plan is
a Top-Heavy Plan, the minimum amount of Employer contributions to be allocated to the Accounts of
any Employee who is eligible to be a Participant (including forfeitures constructively allocated to
that Participant’s Accounts and any employer contributions and forfeitures allocated to that
Participant under any other qualified defined contribution plans maintained by the Group but,
effective on and after

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January 1, 1989, excluding any employee elective contributions) who had not separated from service
with the Group as of the last calendar day of that Plan Year, regardless of the number of Hours of
Service completed by that Participant during that Plan Year, or whether the Employee declines to
make mandatory contributions (if the Plan otherwise requires same) and who is not a key employee
(as such term is defined in Section 16.2) for that Plan Year, shall not be less than three percent
(3%) of that Participant’s Section 415 Compensation in that Plan Year; provided, however, that the
percentage of Section 415 Compensation allocated to the Employer Matching Contributions Account,
Company Retirement Contributions Account, and Qualified Nonelective Contributions Account of any
Participant who is not a key employee (as such term is defined in Section 16.2) under this Article
with respect to that Plan Year shall not exceed the highest percentage of Section 415 Compensation
allocated to the Employer Matching Contributions Account, Company Retirement Contributions Account,
and Qualified Nonelective Contributions Account of any Participant who is a key employee in that
Plan Year. Notwithstanding the foregoing, in the event that an Employee who is otherwise entitled
to a minimum benefit equal to three percent (3%) of his Section 415 Compensation pursuant to this
Section is a participant in a defined benefit plan that is a part of this Plan’s required or
permissive aggregation group, such Employee shall only be entitled to a combined benefit
(determined in accordance with the requirements of Treasury Regulation § 1.416-1, Q&A M-12) under
the plans equal to the minimum benefit required under the defined benefit plan pursuant to Section
416 of the Code.

     16.6 Certain Changes Effective January 1, 2002.

          (a) This Section 16.7 shall apply for purposes of determining whether the plan is a
top-heavy plan under Section 416(g) of the Code for Plan Years beginning after December 31, 2001,
and whether the Plan satisfies the minimum benefits requirements of Section 416(c) of the Code for
such years. This Section modifies the foregoing provisions of this Article 16.

          (b) The term “key employee” means any employee or former employee (including any
deceased employee) who at any time during the Plan Year that includes the determination date was an
officer of the employer having annual Section 415 Compensation greater than $130,000 (as adjusted
under Section 416(i)(1) of the Code for Plan Years beginning after December 31, 2002), a
five-percent owner of the employer, or a one-percent owner of the employer having annual Section
415 Compensation of more

73

 

than $150,000. 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.

          (c) This Section 16.7(c) shall apply for purposes of determining the present values
of accrued benefits and the amounts of account balances of employees as of the determination date.

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

               (ii) The accrued benefits and accounts of any individual who has not performed
services for the employer during the one-year period ending on the determination date shall not be
taken into account.

          (d) 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 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.

          (e) Notwithstanding the foregoing, in the event that an employee who is otherwise
entitled to a minimum benefit equal to three percent (3%) of his Section 415 Compensation pursuant
to this Section is a participant in a defined benefit plan that is a part of this Plan’s required
or permissive aggregation group, such employee shall only be entitled to a combined benefit
(determined in accordance

74

 

with the requirements of Treasury Regulation § 1.416-1, Q&A M-12) under the plans equal to the
minimum benefit required under the defined benefit plan pursuant to Section 416 of the Code.

ARTICLE 17

GENERAL PROVISIONS

     17.1 Nonalienation of Benefits.

          (a) To the fullest extent permitted by law, no benefits under the Plan shall be
subject in any manner, voluntarily or involuntarily, to anticipation, alienation, sale, transfer,
assignment, pledge, garnishment, encumbrance or charge, and any action by way of anticipation,
alienation, selling, transferring, assigning, pledging, garnishing, encumbering or charging the
same shall be void and of no effect, and no such benefits shall be in any manner liable for or
subject to the debts, contracts, liabilities, engagements or torts of the person entitled to such
benefits. The preceding sentence shall also apply to the creation, assignment or recognition of a
right to any benefit payable with respect to any Participant or to any beneficiary under the Plan
pursuant to a domestic relations order, unless such order is determined to be a qualified domestic
relations order as defined in Section 414(p) of the Code. The Plan Administrator shall establish
such procedures for evaluating and determining the status of any domestic relations order and shall
give due notice to any affected parties (Participants and alternate payees) as required by law.

          (b) Subject to any applicable provision of law to the contrary, if any Participant
or any beneficiary under the Plan shall become bankrupt or attempt to anticipate, alienate, sell,
transfer, assign, pledge, garnish, encumber or charge any benefits, then such benefits shall, in
the sole discretion of the Plan Administrator, cease and terminate. In that event, the Plan
Administrator shall hold or apply the benefits or any part thereof to or for such Participant or
beneficiary, his spouse or children or other dependents, or any of them, in such manner and in such
proportions as the Plan Administrator shall, in its sole discretion, determine. This Section shall
not be construed in such a manner as to permit the Plan Administrator to make any assignment or
otherwise to alienate any benefits in contravention of requirements under the Code or under ERISA.

     17.2 No Right to Continued Employment. The establishment of the Plan shall not be
construed as conferring any rights upon any person for a continuation of employment, nor shall it
be

75

 

construed as limiting in any way the right of an Employer to discharge any person or to treat
him without regard to the effect which such treatment might have upon him as a Participant under
the Plan.

     17.3 Rules of Construction.

          (a) The masculine pronoun wherever used shall include the feminine pronoun and the
singular shall include the plural unless the context clearly indicates the distinction.

          (b) The headings of Articles and Sections herein are included solely for convenience
of reference and shall not affect the meaning or interpretation of any of the provisions of this
Plan.

          (c) Amendments made to this Plan from time to time, including amendments made
pursuant to amendments and restatements of this Plan, shall be effective and apply as of such
dates, and shall apply with respect to such Employees, Participants, and their beneficiaries, as
shall be specified in such amendments at the time of adoption, and the Plan shall be construed and
applied accordingly.

     17.4 Appendices. Appendices to this Plan shall constitute a part of this Plan and, to the
extent provided therein, may establish special rules that apply to specified groups of Employees or
Participants in lieu of Plan terms that would otherwise apply.

ARTICLE 18

LAPSED BENEFITS

     18.1 Notification to Participants and Beneficiaries.

          (a) If the Trustee mails by registered or certified mail, return receipt requested,
to a Participant or beneficiary entitled to a distribution hereunder at his last known address, a
notification that he is so entitled and said notification is returned as being undeliverable
because the addressee cannot be located at said address, then the Plan shall continue to maintain
the Participant’s Accounts which are invested in the various funds.

          (b) If, by the last day of the Plan Year coinciding with or immediately following
the fifth (5th) anniversary of the date as of which such person first could not be located, said
person has not informed the Trustee of his whereabouts, his entire interest in this Plan shall
become a forfeiture and shall be used to reduce any subsequent contributions required by his
Employer as provided in Section 6.4 hereof

76

 

for the Plan Year in which it occurs. Thereafter such person shall have no further right or
interest therein except as provided in Section 18.2.

     18.2 Reinstatement of Lapsed Benefits.

          (a) If a Participant or beneficiary prior to the Plan Year in which the Plan and
Trust terminate, duly claims and proves entitlement to a benefit which otherwise lapsed pursuant to
Section 18.1, such benefits as shall then be due, unadjusted for Trust Fund earnings and/or losses
subsequent to the date of forfeiture, shall be paid by the Plan as soon as is administratively
feasible.

          (b) The reinstatement of lapsed benefits shall first be derived from forfeitures
which otherwise are allocable in the Plan Year of the reinstatement to be made pursuant to this
Section 18.2 and if such forfeitures are not sufficient, such reinstatement to the extent
necessary shall then next be made from Employer contributions.

     IN WITNESS WHEREOF, TIN Inc. has caused this amended and restated Guaranty Financial Group
Inc. Savings and Retirement Plan to be executed as of this ___day of December, 2007.

	 	 	 	 	 
	 	TIN INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 
	ATTEST:

	 	 
	 
	 	 
	 
	 	 
	Name:
	 	 
	Title:
	 	 

77

 

APPENDIX I

List of Participating Employers

Guaranty Bank

Guaranty Insurance Services, Inc.

Guaranty Residential Lending, Inc.

Guaranty Group Inc.

Guaranty Business Credit Corporation

American Finance Group, Inc., d/b/a Guaranty Capital Corporation

KA-1

 

APPENDIX II

Special Rules Applicable to

Certain Employees

     (a) Notwithstanding the provisions of Sections 6.2 and 6.3 of the Plan, the Employer
Matching Contributions Account and Retirement Contributions Account of an Employee whose employment
was terminated by the Group on or about March 16, 2000 in connection with the sale by Guaranty Bank
of certain assets to Auto One, a lending unit of CalFed Bank of San Francisco, shall be fully
vested and nonfortfeitable as of the date of the Employee’s termination of employment by the Group.

     (b) Notwithstanding the provisions of Sections 6.2 and 6.3 of the Plan, the Employer
Matching Contributions Account and Company Retirement Contributions Account of an Employee whose
employment by the Group terminated upon, or in connection with, the sale by Guaranty Bank of its
Childress, Texas and Paris, Texas branches to Liberty National Bank, shall be fully vested and
nonforfeitable as of the date of the Employee’s termination of employment by the Group.

     (c) Notwithstanding the provisions of Sections 6.2 and 6.3 of the Plan, the Employer
Matching Contributions Account and Company Retirement Contributions Account of a Participant who
(i) was a participant in the Old Kent Thrift Plan as of August 18, 2001; (ii) had attained at least
age 55 as of September 15, 2001; and (iii) became an Employee in connection with Guaranty
Residential Lending, Inc.’s purchase of the assets of Old Kent Mortgage Company from Fifth Third
Bancorp of Cincinnati, Ohio, shall be fully vested and nonforfeitable.

     (d) Notwithstanding the provisions of Section 6.2 and 6.3 of the Plan, the Employer
Matching Contributions Account and Company Retirement Contributions Account of a Participant whose
employment by the Group is designated as being terminated as the result of Project TIP shall be
fully vested and nonfortfeitable.

     (e) Notwithstanding the provisions of Sections 6.2 and 6.3 of the Plan, the Employer
Matching Contributions Account and Company Retirement Contributions Account of a Participant whose
employment by the Group is terminated in connection with the sale of Atlanta Banking Center shall
be fully vested and nonfortfeitable.

KA-2

 

     (f) Notwithstanding the provisions of Sections 6.2 and 6.3 of the Plan, the Employer
Matching Contributions Account and Retirement Contributions Account of an Employee whose employment
by the Group is designated as being terminated as the result of the repositioning of the mortgage
origination activities conducted by Guaranty Residential Lending Inc. as announced by the Company
on August 4, 2004, shall be fully vested and nonforfeitable as of the date of the Employee’s
termination of employment by the Group.

     (g) Notwithstanding the provisions of Sections 6.2 and 6.3 of the Plan, the Employer
Matching Contributions Account and Company Retirement Contributions Account of a Participant whose
employment by the Group is designated as being terminated as the result of the repositioning of
Guaranty Lending Bank’s mortgage origination activities, as announced on November 29, 2005, shall
be fully vested and nonforfeitable.

     (h) Notwithstanding the provisions of Sections 6.2 and 6.3 of the Plan, the Employer
Matching Contributions Account and Company Retirement Contributions Account of a Participant whose
employment by the Group is designated as being terminated in connection with the sale of certain
assets of Guaranty Business Credit Corporation to Marquette Business Credit, Inc., as announced to
employees on July 5, 2006, shall be fully vested and nonforfeitable.

     (i) Notwithstanding the provisions of Sections 6.2 and 6.3 of the Plan, the Employer
Matching Contributions Account and Company Retirement Contributions Account of a Participant whose
employment by the Group is designated as being terminated in connection with the Transformation
Plan announced by the Company in a press release, dated February 26, 2007, shall be fully vested
and nonforfeitable.

KA-3

 

KNUTSON MORTGAGE CORPORATION APPENDIX

     This Appendix shall apply only to Participants (“Knutson Participants”) on whose behalf an
account balance under the Knutson Savings Tax Deferred 401(k) Plan (the “Knutson Plan”) was
transferred to this Plan as of the Knutson Plan’s Merger Date.

     The following provisions shall apply in lieu of, or as a modification or addition to,
corresponding provisions contained elsewhere in this Plan (as indicated by a corresponding Section
or subsection designation or Section heading) or, if there is no corresponding provision elsewhere
in the Plan, in addition to the other terms of this Plan:

     1.57 Period of Service. Notwithstanding the provisions of Section 1.57, the Period of
Service credited to a Knutson Participant for the Plan Year beginning January 1, 1997, shall be
determined in accordance with the terms of the Knutson Plan as in effect on June 1, 1997, and the
Knutson Plan’s Merger Date shall be deemed to be January 1, 1998, solely for purposes applying
Section 1.57.

     6.6 Special Vesting Rule Applicable to Knutson Participants. Notwithstanding the
provisions of Sections 6.2 and 6.3 hereof, the vested and nonforfeitable percentage of a Knutson
Participant’s Company Retirement Contributions Account, Employer Matching Contributions Account and
any Supplemental Contributions Account shall not be less than as determined in accordance with the
following schedule:

	 	 	 	 	 
	 	 	Nonforfeitable	 
	Period of Service	 	Percentage	 
	 
	 	 	 	 
	Less than 1
	 	 	0	 
	1
	 	 	33	%
	2
	 	 	66	%
	3
	 	 	100	%

     7.5 Change in Existing Investments. (a) The proviso to Section 7.5(a) of the Plan
shall not apply to a Knutson Participant’s Merged Plan Employer Matching Contributions Subaccount,
which subaccount shall account for that portion of a Knutson Participant’s Employer Matching
Contributions Account that is attributable to employer matching contributions transferred to this
Plan from the Knutson Plan.

     9.1 Distribution of Benefits upon Occurrence of Distribution Event. Notwithstanding
the provisions of Section 9.1(a), in no event shall the Trustee distribute the vested Account
Balance of a

KA-4

 

Knutson Participant prior to April 1 of the calendar year following the Knutson Participant’s
attainment of age seventy and a half (701/2), unless the Knutson Participant elects to receive such
distribution.

KA-5

 

STOCKTON SAVINGS BANK APPENDIX

     This Appendix shall apply only to Participants (“Stockton Participants”) on whose behalf an
account balance under the Stockton Savings Tax Deferred 401(k) Plan (the “Stockton Plan”) was
transferred to this Plan as of the Stockton Plan’s Merger Date.

     The following provisions shall apply in lieu of, or as a modification or addition to,
corresponding provisions contained elsewhere in this Plan (as indicated by a corresponding Section
or subsection designation or Section heading) or, if there is no corresponding provision elsewhere
in the Plan, in addition to the other terms of this Plan:

     2.1 Participation. Section 2.1(b) of the Plan shall apply to Stockton Participants as
modified by adding the following sentence at the end thereof:

“Notwithstanding the foregoing, any Employee who as of the Merger Date of the
Stockton Plan was eligible to participate in such plan shall become a Participant
in this Plan as of such Merger Date.”

     6.6 Special Vesting Rule Applicable to Stockton Participants. Notwithstanding the
provisions of Sections 6.2 and 6.3 hereof, a Stockton Participant’s Company Retirement
Contributions Account, Employer Matching Contributions Account, and Supplemental Contributions
Account shall be fully vested and nonforfeitable effective June 27, 1997.

     7.5 Change in Existing Investments. (a) The proviso to Section 7.6(a) of the Plan
shall not apply to a Stockton Participant’s Merged Plan Employer Matching Contributions Subaccount,
which subaccount shall account for that portion of a Stockton Participant’s Employer Matching
Contributions Account that is attributable to employer matching contributions transferred to this
Plan from the Stockton Plan.

 

 

WESTERN CITIES MORTGAGE CORPORATION APPENDIX

     This Appendix shall apply only to Participants (“Western Cities Participants”) on whose behalf
an account balance under the Western Cities Mortgage Corporation Retirement Savings Plan (the
“Western Cities Plan”) was transferred to this Plan as of the Western Cities Plan’s Merger Date.

     The following provisions shall apply in lieu of, or as a modification or addition to,
corresponding provisions contained elsewhere in this Plan (as indicated by a corresponding Section
or subsection designation or Section heading) or, if there is no corresponding provision elsewhere
in the Plan, in addition to the other terms of this Plan:

     1.57 Period of Service. Notwithstanding the provisions of Section 1.57, the Period of
Service credited to a Western Cities Participant for the Plan Year beginning January 1, 1997, shall
be determined in accordance with the terms of the Western Cities Plan as in effect on August 1,
1997, and the Western Cities Plan’s Merger Date shall be deemed to be January 1, 1998, solely for
purposes applying Section 1.57.

     6.6 Special Vesting Schedule Applicable to Western Cities Participants.
Notwithstanding the provisions of Sections 6.2 and 6.3 hereof, the vested and nonforfeitable
percentage of a Western Cities Participant’s Company Retirement Contributions Account, Employer
Matching Contributions Account, and Supplemental Contributions Account shall not be less than as
determined in accordance with the following schedule:

	 	 	 	 	 
	Period of	 	Nonforfeitable	 
	Service	 	Percentage	 
	 
	 	 	 	 
	Less than 2
	 	 	0	 
	2
	 	 	20	%
	3
	 	 	40	%
	4
	 	 	60	%
	5
	 	 	100	%

 

 

TEXAS NATIONAL AGENCY, INC. APPENDIX

     This Appendix shall apply only to Participants (“TNA Participants”) on whose behalf an account
balance under the Texas National Agency 401(k) Savings/Profit Sharing & Retirement Plan (the “TNA
Plan”) was transferred to this Plan as of the TNA Plan’s Merger Date.

     The following provisions shall apply in lieu of, or as a modification or addition to,
corresponding provisions contained elsewhere in this Plan (as indicated by a corresponding Section
or subsection designation or Section heading) or, if there is no corresponding provision elsewhere
in the Plan, in addition to the other terms of this Plan:

     1.57 Period of Service. Notwithstanding the provisions of Section 1.57, the Period of
Service credited to a Participant for the Plan Year beginning January 1, 1997, shall be determined
in accordance with the terms of the TNA Plan as in effect on October 1, 1997, and the TNA Plan’s
Merger Date shall be deemed to be January 1, 1998, solely for purposes of applying Section 1.57.

     6.6 Special Vesting Schedule Applicable to TNA Participants. Notwithstanding the
provisions of Sections 6.2 and 6.3 hereof, the vested and nonforfeitable percentage of a TNA
Participant’s Company Retirement Contributions Account, Employer Matching Contributions Account,
and Supplemental Contributions Account shall not be less than as determined in accordance with the
following schedule:

	 	 	 	 	 
	Period of	 	Nonforfeitable	 
	Service	 	Percentage	 
	 
	 	 	 	 
	Less than 2
	 	 	0	 
	2
	 	 	20	%
	3
	 	 	40	%
	4
	 	 	60	%
	5
	 	 	100	%

 

 

HEMET FEDERAL SAVINGS AND LOAN

ASSOCIATION APPENDIX

     This Appendix shall apply only to Participants (“Hemet Participants”) on whose behalf an
account balance under the Hemet Federal Savings and Loan Association Employee Savings & Investment
Plan (the “Hemet Plan”) was transferred to this Plan as of the Hemet Plan’s Merger Date.

     The following provisions shall apply in lieu of, or as a modification or addition to,
corresponding provisions contained elsewhere in this Plan (as indicated by a corresponding Section
or subsection designation or Section heading) or, if there is no corresponding provision elsewhere
in the Plan, in addition to the other terms of this Plan:

     2.1 Participation. Section 2.1(b) of the Plan shall apply to Hemet Participants as
modified by adding the following sentence at the end thereof:

“Notwithstanding the foregoing, any Employee who as of the Merger Date of the
Hemet Plan was eligible to participate in the Hemet Plan as of such date shall
become a Participant in this Plan as of such Merger Date.”

     6.6 Special Vesting Rule Applicable to Hemet Participants. Notwithstanding the
provisions of Section 6.3 hereof, the Employer Matching Contributions Account of a Hemet
Participant who was employed by Hemet Federal Savings and Loan Association (“Hemet”) on or after
January 1, 1999 shall be fully vested and nonforfeitable effective as of the Hemet Plan’s Merger
Date.

     7.5 Change in Existing Investments. (a) The proviso to Section 7.5(a) of the Plan
shall not apply to a Hemet Participant’s Hemet Plan Employer Matching Contributions Subaccount,
which subaccount shall account for that portion of a Hemet Participant’s Employer Matching
Contributions Account that is attributable to employer matching contributions transferred to this
Plan from the Hemet Plan.

     9.1 Distribution of Benefits upon Occurrence of Distribution Event. Notwithstanding
the provisions of Section 9.1(b), in no event shall the Trustee distribute the vested Account
Balance of a Hemet Participant prior to April 1 of the calendar year following the Hemet
Participant’s attainment of age seventy and a half (701/2), unless the Hemet Participant elects to
receive such distribution.

     9.4 Certain Rules Applicable to the Payment of Benefits. The last sentence of Section
9.4 is modified with respect to Hemet Participants to read as follows:

 

 

“Effective June 1, 1998, this Section 9.4 shall apply only to a Participant who
either (i) is a five percent (5%) owner (as defined in Section 416 of the Code)
with respect to the Plan Year during which the Participant attains age 701/2, (ii)
attained age 701/2 prior to June 1, 1998, or (iii) attains age 701/2 on or after June
1, 1998 and prior to September 1, 1999 and elects to have this Section 9.4 so
apply.

TNA-2

 

MINIMUM DISTRIBUTION APPENDIX

1. General Rules.

     1.1 Effective Date. The provisions of this Appendix will apply for purposes
of determining required minimum distributions for calendar years beginning with the 2003 calendar
year.

     1.2 Precedence. The requirements of this Appendix will take precedence over
any inconsistent provisions of the Plan.

     1.3 Requirements of Treasury Regulations Incorporated. All distributions
required under this Appendix will be determined and made in accordance with the Treasury
Regulations under Section 401(a)(9) of the Code.

     1.4 TEFRA Section 242(b)(2) Elections. Notwithstanding the other provisions
of this Appendix, distributions may be made under a designation made before January 1, 1984, in
accordance with Section 242(b)(2) of the Tax Equity and Fiscal Responsibility Act (TEFRA) and the
provisions of the Plan that relate to Section 242(b)(2) of TEFRA.

2. Time and Manner of Distribution.

     2.1 Required Beginning Date. The Participant’s entire interest will be
distributed, or begin to be distributed, to the Participant no later than the Participant’s
Required Beginning Date.

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

          (a) If the Participant’s surviving spouse is the Participant’s sole Designated
Beneficiary, then, except as provided in Section 6 hereof, distributions to the surviving spouse
will begin by December 31 of the calendar year immediately following the calendar year in which the
Participant died, or by December 31 of the calendar year in which the Participant would have
attained age 701/2, if later.

          (b) If the Participant’s surviving spouse is not the Participant’s sole Designated
Beneficiary, then, except as provided in Section 6 hereof, distributions to the Designated
Beneficiary will

 

 

begin by December 31 of the calendar year immediately following the calendar year in which the
Participant died.

          (c) If there is no Designated Beneficiary as of September 30 of the year following
the year of the Participant’s death, the Participant’s entire interest will be distributed by
December 31 of the calendar year containing the fifth anniversary of the Participant’s death.

          (d) If the Participant’s surviving spouse is the Participant’s sole Designated
Beneficiary and the surviving spouse dies after the Participant but before distributions to the
surviving spouse begin, this Section 2.2, other than Section 2.2(a), will apply as if the surviving
spouse were the Participant.

For purposes of this Section 2.2 and Section 4 hereof, unless Section 2.2(d) hereof applies,
distributions are considered to begin on the Participant’s Required Beginning Date. If Section
2.2(d) hereof applies, distributions are considered to begin on the date distributions are required
to begin to the surviving spouse under Section 2.2(a) hereof. If distributions under an annuity
purchased from an insurance company irrevocably commence to the Participant before the
Participant’s Required Beginning Date (or to the Participant’s surviving spouse before the date
distributions are required to begin to the surviving spouse under Section 2.2(a) hereof), the date
distributions are considered to begin is the date distributions actually commence.

     2.3 Forms of Distribution. Unless the Participant’s interest is distributed
in the form of an annuity purchased from an insurance company or in a single sum on or before the
Required Beginning Date, as of the first Distribution Calendar Year, distributions will be made in
accordance with Sections 3 and 4 hereof. If the Participant’s interest is distributed in the form
of an annuity purchased from an insurance company, distributions thereunder will be made in
accordance with the requirements of Code Section 401(a)(9) and the Treasury Regulations.

3. Required Minimum Distributions During Participant’s Lifetime.

     3.1 Amount of Required Minimum Distribution for Each Distribution Calendar
Year. During the Participant’s lifetime, the minimum amount that will be distributed for each
Distribution Calendar Year is the lesser of:

2

 

          (a) the quotient obtained by dividing the Participant’s Account Balance by the
distribution period in the Uniform Lifetime Table set forth in Section 1.401(a)(9)-9 of the
Treasury Regulations, using the Participant’s age as of the Participant’s birthday in the
Distribution Calendar Year; or

          (b) if the Participant’s sole Designated Beneficiary for the Distribution Calendar
Year is the Participant’s spouse, the quotient obtained by dividing the Participant’s Account
Balance by the number in the Joint and Last Survivor Table set forth in Section 1.401(a)(9)-9 of
the Treasury Regulations, using the Participant’s and spouse’s attained ages as of the
Participant’s and spouse’s birthdays in the Distribution Calendar Year.

     3.2 Lifetime Required Minimum Distributions Continue Through Year of
Participant’s Death. Required minimum distributions will be determined under this Section 3
beginning with the first Distribution Calendar Year and up to and including the Distribution
Calendar Year that includes the Participant’s date of death.

4. Required Minimum Distributions After Participant’s Death.

     4.1 Death on or After Date Distributions Begin.

          (a) Participant Survived by Designated Beneficiary. If the Participant dies
on or after the date distributions begin and there is a Designated Beneficiary, the minimum amount
that will be distributed for each Distribution Calendar Year after the year of the Participant’s
death is the quotient obtained by dividing the Participant’s Account Balance by the longer of the
remaining Life Expectancy of the Participant or the remaining Life Expectancy of the Participant’s
Designated Beneficiary, determined as follows:

               (i) The Participant’s remaining Life Expectancy is calculated using the age of the
Participant in the year of death, reduced by one for each subsequent year.

               (ii) If the Participant’s surviving spouse is the Participant’s sole Designated
Beneficiary, the remaining Life Expectancy of the surviving spouse is calculated for each
Distribution Calendar Year after the year of the Participant’s death using the surviving spouse’s
age as of the spouse’s birthday in that year. For Distribution Calendar Years after the year of
the surviving spouse’s death, the remaining Life Expectancy of the surviving spouse is calculated
using the age of the surviving spouse as of

3

 

the spouse’s birthday in the calendar year of the spouse’s death, reduced by one for each
subsequent calendar year.

               (iii) If the Participant’s surviving spouse is not the Participant’s sole Designated
Beneficiary, the Designated Beneficiary’s remaining Life Expectancy is calculated using the age of
the Beneficiary in the year following the year of the Participant’s death, reduced by one for each
subsequent year.

          (b) No Designated Beneficiary. If the Participant dies on or after the date
distributions begin and there is no Designated Beneficiary as of September 30 of the year after the
year of the Participant’s death, the minimum amount that will be distributed for each Distribution
Calendar Year after the year of the Participant’s death is the quotient obtained by dividing the
Participant’s Account Balance by the Participant’s remaining Life Expectancy calculated using the
age of the Participant in the year of death, reduced by one for each subsequent year.

     4.2 Death Before Date Distributions Begin.

          (a) Participant Survived by Designated Beneficiary. Except as provided in
Section 6 hereof, if the Participant dies before the date distributions begin and there is a
Designated Beneficiary, the minimum amount that will be distributed for each Distribution Calendar
Year after the year of the Participant’s death is the quotient obtained by dividing the
Participant’s Account Balance by the remaining Life Expectancy of the Participant’s Designated
Beneficiary, determined as provided in Section 4.1 hereof.

          (b) No Designated Beneficiary. If the Participant dies before the date
distributions begin and there is no Designated Beneficiary as of September 30 of the year following
the year of the Participant’s death, distribution of the Participant’s entire interest will be
completed by December 31 of the calendar year containing the fifth anniversary of the Participant’s
death.

          (c) Death of Surviving Spouse Before Distributions to Surviving Spouse Are
Required to Begin. If the Participant dies before the date distributions begin, the
Participant’s surviving spouse is the Participant’s sole Designated Beneficiary, and the surviving
spouse dies before distributions are required to begin to the surviving spouse under Section 2.2(a)
hereof, this Section 4.2 will apply as if the surviving spouse were the Participant.

4

 

5. Definitions.

     5.1 “Designated Beneficiary” means the individual who is designated as the
beneficiary pursuant to Section 2.1(e) of the Plan and is the designated beneficiary under Section
401(a)(9) of the Code and Section 1.401(a)(9)-1, Q&A-4, of the Treasury Regulations.

     5.2 “Distribution Calendar Year” means a calendar year for which a minimum
distribution is required. For distributions beginning before the Participant’s death, the first
Distribution Calendar Year is the calendar year immediately preceding the calendar year which
contains the Participant’s Required Beginning Date. For distributions beginning after the
Participant’s death, the first Distribution Calendar Year is the calendar year in which
distributions are required to begin under Section 2.2 hereof. The required minimum distribution
for the Participant’s first Distribution Calendar Year will be made on or before the Participant’s
Required Beginning Date. The required minimum distribution for other Distribution Calendar Years,
including the required minimum distribution for the Distribution Calendar Year in which the
Participant’s Required Beginning Date occurs, will be made on or before December 31 of that
Distribution Calendar Year.

     5.3 “Life Expectancy” means life expectancy as computed by use of the Single
Life Table in Section 1.401(a)(9)-9 of the Treasury Regulations.

     5.4 “Participant’s Account Balance” means the Account balance as of the last
Valuation Date in the calendar year immediately preceding the Distribution Calendar Year
(“Valuation Calendar Year”) increased by the amount of any contributions made and allocated or
forfeitures allocated to the Account balance as of dates in the Valuation Calendar Year after the
Valuation Date and decreased by distributions made in the Valuation Calendar Year after the
Valuation Date. The Account balance for the Valuation Calendar Year includes any amounts rolled
over or transferred to the Plan either in the Valuation Calendar Year or in the Distribution
Calendar Year if distributed or transferred in the Valuation Calendar Year.

     5.5 “Required Beginning Date” means April 1 of the calendar year following
the later of (a) the calendar year in which the attains age 701/2, or (b) the calendar year in which
the Participant retires; provided, however, that the preceding clause (b) shall not apply in the
case of any Participant who is a 5-percent owner (as defined in Section 416 of the Code) with
respect to the plan year ending in the calendar year in which the Participant attains age 701/2.

5

 

     6. Election to Apply 5-Year Rule to Distributions to Designated Beneficiaries.
If the Participant dies before distributions begin and there is a Designated Beneficiary,
distribution to the Designated Beneficiary is not required to begin by the date specified in
Section 2.2 hereof, but the Participant’s entire interest will be distributed to the Designated
Beneficiary by December 31 of the calendar year containing the fifth anniversary of the
Participant’s death. If the Participant’s surviving spouse is the Participant’s sole Designated
Beneficiary and the surviving spouse dies after the Participant but before distributions to either
the Participant or the surviving spouse begin, this election will apply as if the surviving spouse
were the Participant. This election will apply to all distributions to Designated Beneficiaries.

6

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