Document:

Exhibit 4.1

 

Exhibit 4.1

COUNTRYWIDE CREDIT INDUSTRIES, INC.

401(k) SAVINGS AND INVESTMENT PLAN

As amended and restated

effective January 1, 1997

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	PURPOSE

	 	 	1	 
	 
	 	 	 	 
	ARTICLE 1 DEFINITIONS

	 	 	2	 
	 
	 	 	 	 
	1.01 “Account”

	 	 	2	 
	1.02 “Actual Contribution Percentage”

	 	 	2	 
	1.03 “Actual Deferral Percentage”

	 	 	2	 
	1.04 “Administrator”

	 	 	2	 
	1.05 “Affiliated Company”

	 	 	2	 
	1.06 “After-Tax Contribution”

	 	 	2	 
	1.07 “Annual Addition:

	 	 	3	 
	1.08 “Beneficiary”

	 	 	3	 
	1.09 “Board of Directors”

	 	 	3	 
	1.10 “Code”

	 	 	3	 
	1.11 “Company”

	 	 	3	 
	1.12 “Company Stock”

	 	 	3	 
	1.13 “Compensation”

	 	 	3	 
	1.14 “Designated Fiduciary”

	 	 	3	 
	1.15 “Eligible Employee”

	 	 	3	 
	1.16 “Employee”

	 	 	4	 
	1.17 “Employer Discretionary Contributions”

	 	 	4	 
	1.18 “Employer Matching Contributions”

	 	 	4	 
	1.19 “Entry Date”

	 	 	4	 
	1.20 “ERISA”

	 	 	4	 
	1.21 “Highly Compensated Employee”

	 	 	4	 
	1.22 “Investment Fund”

	 	 	4	 
	1.23 “Limitation Year”

	 	 	4	 
	1.24 “Non-Highly Compensated Employee”

	 	 	4	 
	1.25 “Participant”

	 	 	4	 
	1.26 “Participating Employer”

	 	 	5	 
	1.27 “Plan”

	 	 	5	 
	1.28 “Plan Year”

	 	 	5	 
	1.29 “Required Beginning Date”

	 	 	5	 
	1.30 “Rollover Contribution”

	 	 	5	 
	1.31 “Salary Deferral Contribution”

	 	 	5	 
	1.32 “Section 415 Compensation”

	 	 	5	 
	1.33 “Section 415 Employer”

	 	 	5	 
	1.34 “Total Disability”

	 	 	5	 
	1.35 “Trust Agreement”

	 	 	5	 
	1.36 “Trust Fund”

	 	 	5	 
	1.37 “Trustee”

	 	 	5	 
	1.38 “Valuation Date”

	 	 	6	 

 

 

	 	 	 	 	 
	ARTICLE 2 DEFINITIONS AND RULES FOR DETERMINING SERVICE

	 	 	6	 
	 
	 	 	 	 
	2.01 “Approved Absence”

	 	 	6	 
	2.02 “Break in Service”

	 	 	6	 
	2.03 “Eligibility Computation Period”

	 	 	6	 
	2.04 “Employer Contribution Eligibility Computation Period”

	 	 	6	 
	2.05 “Employment Commencement Date”

	 	 	7	 
	2.06 “Employment Recommencement Date”

	 	 	7	 
	2.07 “Hours of Service”

	 	 	7	 
	2.08 “Maternity or Paternity Leave of Absence”

	 	 	8	 
	2.09 “Year of Service”

	 	 	8	 
	2.10 Rules for Crediting Service

	 	 	8	 
	2.11 Absence Due to Military Leave

	 	 	9	 
	2.12 Special Rule in Connection with Certain Spin-offs and Mergers

	 	 	9	 
	2.13 Special Rule in Connection with Certain Acquisition Transactions

	 	 	9	 
	 
	 	 	 	 
	ARTICLE 3 PARTICIPATION IN THE PLAN

	 	 	9	 
	 
	 	 	 	 
	3.01 Eligibility to Participate

	 	 	9	 
	3.02 Break in Service

	 	 	10	 
	3.03 Cessation of Eligibility to Participate

	 	 	11	 
	3.04 Data

	 	 	11	 
	 
	 	 	 	 
	ARTICLE 4 PARTICPANT CONTRIBUTIONS

	 	 	11	 
	 
	 	 	 	 
	4.01 Salary Deferral Contributions

	 	 	11	 
	4.02 Rollover Contributions

	 	 	12	 
	 
	 	 	 	 
	ARTICLE 5 EMPLOYER CONTRIBUTIONS

	 	 	12	 
	 
	 	 	 	 
	5.01 Employer Matching Contributions

	 	 	12	 
	5.02 Employer Discretionary Contributions

	 	 	13	 
	5.03 Time of Payment of Contributions

	 	 	13	 
	5.04 Form of Contributions

	 	 	13	 
	 
	 	 	 	 
	ARTICLE 6 LIMITATIONS ON CONTRIBUTIONS

	 	 	14	 
	 
	 	 	 	 
	6.01 Definitions

	 	 	14	 
	6.02 Annual Limitation on Salary Deferral Contributions

	 	 	15	 
	6.03 Limitations on Salary Deferral Contributions Applicable to
Highly Compensated Employees

	 	 	15	 
	6.04 Limitations on Employer Matching Contributions Applicable to
Highly Compensated Employees

	 	 	15	 
	6.05 Combined Limitations on Salary Deferral Contributions and
Employer Matching Contributions

	 	 	16	 
	6.06 Correction of Excess Salary Deferral Contributions and
Excess Employer Matching Contributions

	 	 	16	 
	6.07 Forfeiture of Employer Matching Contributions

	 	 	17	 
	6.08 Limitations of Contributions Applicable to All Participants

	 	 	17	 
	6.09 Reduction of Excess Annual Additions

	 	 	18	 
	6.10 Deduction Limitation Applicable to Employer Contributions

	 	 	19	 

 

 

	 	 	 	 	 
	ARTICLE 7 PARTICPANTS’ ACCOUNTS

	 	 	19	 
	 
	 	 	 	 
	7.01 Separate Accounts

	 	 	19	 
	7.02 Contributions to Accounts

	 	 	19	 
	7.03 Valuation of Accounts

	 	 	19	 
	7.04 Segregated Accounts

	 	 	20	 
	 
	 	 	 	 
	ARTICLE 8 TRUST FUND AND INVESTMENT OF ACCOUNTS

	 	 	20	 
	 
	 	 	 	 
	8.01 Trust Fund and Trustees

	 	 	20	 
	8.02 Investment Funds

	 	 	20	 
	8.03 Investment Direction

	 	 	20	 
	8.04 Limitations on Investment in Company Stock

	 	 	21	 
	8.05 Voting and Tendering of Company Stock

	 	 	21	 
	 
	 	 	 	 
	ARTICLE 9 VESTING AND FORFEITURE

	 	 	22	 
	 
	 	 	 	 
	9.01 Salary Deferral Contribution Account and Rollover Contribution Account

	 	 	22	 
	9.02 Employer Contribution Account

	 	 	22	 
	9.03 Forfeiture

	 	 	22	 
	9.04 Restoration of Forfeitures

	 	 	22	 
	9.05 Application of Forfeitures

	 	 	23	 
	9.06 Change in Vesting Schedule

	 	 	23	 
	9.07 Vesting Upon Termination Following a Change in Control

	 	 	23	 
	 
	 	 	 	 
	ARTICLE 10 LOANS TO PARTICIPANTS

	 	 	24	 
	 
	 	 	 	 
	10.01 General

	 	 	24	 
	10.02 Maximum Loan Amount

	 	 	24	 
	10.03 Loan Terms

	 	 	24	 
	10.04 Collateral

	 	 	25	 
	10.05 Treatment of Loan Payments

	 	 	25	 
	10.06 Default

	 	 	25	 
	10.07 Suspension for Military Leave

	 	 	25	 
	 
	 	 	 	 
	ARTICLE 11 WITHDRAWS DURING SERVICE

	 	 	26	 
	 
	 	 	 	 
	11.01 Financial Hardship

	 	 	26	 
	11.02
Withdrawals After Age 59 1⁄2

	 	 	27	 
	11.03 General Rules Applying to Withdrawals

	 	 	27	 
	 
	 	 	 	 
	ARTICLE 12 ESOP ACCOUNT DIVERSIFICATION

	 	 	28	 
	 
	 	 	 	 
	12.01 General

	 	 	28	 
	12.02 Diversification of ESOP Account

	 	 	28	 

 

 

	 	 	 	 	 
	ARTICLE 13 DISTRIBUTIONS AFTER TERMINATION OF EMPLOYMENT

	 	 	29	 
	 
	 	 	 	 
	13.01 Termination of Employment Prior to Age 65

	 	 	29	 
	13.02 Termination of Employment At or After Age 65

	 	 	30	 
	13.03 Death

	 	 	30	 
	13.04 Beneficiary Designation

	 	 	30	 
	13.05 Form of Payment

	 	 	31	 
	13.06 Direct Transfer of Eligible Rollover Distribution

	 	 	32	 
	13.07 Mandatory Distribution

	 	 	32	 
	 
	 	 	 	 
	ARTICLE 14 ADMINISTRATION

	 	 	32	 
	 
	 	 	 	 
	14.01 Administrator

	 	 	32	 
	14.02 Administrator’s Authority and Powers

	 	 	32	 
	14.03 Delegation of Duties

	 	 	33	 
	14.04 Fiduciary Responsibilities With Respect to Company Stock

	 	 	33	 
	14.05 Charges on Participant’s Accounts

	 	 	33	 
	14.06 Expenses

	 	 	33	 
	14.07 Compensation

	 	 	34	 
	14.08 Exercise of Discretion

	 	 	34	 
	14.09 Fiduciary Liability

	 	 	34	 
	14.10 Indemnification by Participating Employers

	 	 	34	 
	14.11 Plan Participation by Fiduciaries

	 	 	34	 
	14.12 Missing Persons

	 	 	34	 
	14.13 Claims Procedure

	 	 	35	 
	 
	 	 	 	 
	ARTICLE 15 AMENDMENT AND TERMINATION OF PLAN

	 	 	36	 
	 
	 	 	 	 
	15.01 Amendment

	 	 	36	 
	15.02 Right to Terminate Plan

	 	 	36	 
	15.03 Consequences of Termination

	 	 	37	 
	 
	 	 	 	 
	ARTICLE 16 PARTICIPATING EMPLOYERS

	 	 	37	 
	 
	 	 	 	 
	16.01 Adoption by Other Employers

	 	 	37	 
	16.02 Delegation of Powers and Authority

	 	 	37	 
	16.03 Termination of Participation

	 	 	37	 
	 
	 	 	 	 
	ARTICLE 17 TOP-HEAVY PLAN PROVISIONS

	 	 	38	 
	 
	 	 	 	 
	17.01 Applicability

	 	 	38	 
	17.02 Definitions

	 	 	38	 
	17.03 Minimum Contributions

	 	 	40	 
	17.04 Compensation Limitation

	 	 	41	 
	17.05 Aggregate Limit on Contributions and Benefits for Key Employers

	 	 	41	 

 

 

	 	 	 	 	 
	ARTICLE 18 GENERAL PROVISIONS

	 	 	41	 
	 
	 	 	 	 
	18.01 Trust Fund Sole Source of Payments for Plan

	 	 	41	 
	18.02 Exclusive Benefit

	 	 	41	 
	18.03 Non-Alienation

	 	 	41	 
	18.04 Qualified Domestic Relations Order

	 	 	42	 
	18.05 Incapacity

	 	 	42	 
	18.06 Employment Rights

	 	 	42	 
	18.07 Return of Contributions

	 	 	42	 
	18.08 Distribution of Salary Deferral Contributions in Event of Merger or Sale

	 	 	42	 
	18.09 Merger, Consolidation or Transfer

	 	 	43	 
	18.10 Action by the Company

	 	 	43	 
	18.11 Applicable Law

	 	 	43	 
	18.12 Rules of Construction

	 	 	44	 
	18.13 Severability of Provisions

	 	 	44	 
	18.14 Withholding

	 	 	45	 
	 
	 	 	 	 
	APPENDIX A  DEFINITION OF CHANGE IN CONTROL
	 	 	 	 
	 
	 	 	 	 
	APPENDIX B  RULES APPLYING TO PARTICIPANT LOANS
	 	 	 	 
	 
	 	 	 	 
	APPENDIX C  CERTAIN MERGER AND SPINOFF TRANSACTIONS
	 	 	 	 
	 
	 	 	 	 
	APPENDIX D  SPECIAL SERVICE RECOGNITION PROVISIONS AND LOAN ROLLOVERS
	 	 	 	 

 

 

COUNTRYWIDE CREDIT INDUSTRIES, INC.

401(k) SAVINGS AND INVESTMENT PLAN

As amended and restated

effective January 1, 1997

PURPOSE

The purpose of the Countrywide Credit Industries, Inc. 401(k) Savings and Investment Plan is
to provide eligible employees of Countrywide Credit Industries, Inc. and of other participating
employers with an opportunity to increase their savings on a tax-favored basis.

The Plan is intended to (1) qualify as a profit-sharing plan for purposes of Sections 401(a), 402,
412, and 417 of the Internal Revenue Code of 1986, as amended (the “Code”), (2) qualify as a cash
or deferred arrangement under Section 401(k) of the Code, and (3) comply with the requirements of
the Employee Retirement Income Security Act of 1974, as amended.

The Plan originally was adopted by Countrywide Credit Industries, Inc. effective September 1, 1984.

Effective October 1, 1991, the Countrywide Credit Industries, Inc. Profit Sharing Stock Ownership
Plan (“ESOP”) was merged into the Plan and the ESOP accounts were transferred to the Plan.
Effective thereafter, the Plan consisted of a profit-sharing plan with 401(k) and employee stock
ownership plan features, and the portion of the Plan consisting of the ESOP accounts is intended to
be an employee stock ownership plan within the meaning of Section 4975(e)(7) of the Code.

The Plan
was amended and restated effective January 1, 1992. The Internal Revenue Service issued
a favorable determination letter dated June 1, 1993 (File Folder Number 950041329) with respect
to the Plan as amended and restated, including amendments adopted on
November 15, 1993.

The Plan was again amended and restated on May 6, 1996.

The plan document sets forth the provisions of the Plan as amended and restated effective January
1, 1997 except as otherwise specifically provided in the Plan. This amendment and restatement
reflects the applicable provisions of the Uruguay Round Agreements Act (Pub. L. 103-188); the
Uniformed Services Employment and Reemployment Rights Act of 1994 (Pub. L. 103-353); the Small
Business Job Protection Act of 1996 (Pub. L. 104-188); the Taxpayer Relief Act of 1997 (Pub. L.
105-34); the Internal Revenue Service Restructuring and Reform Act of 1998 (Pub. L. 105-206); and
the Community Renewal Tax Relief Act of 2000 (Pub. L. 106-554). All issues arising with respect to
participation in the Plan prior to January 1, 1997 shall be determined by the terms and provisions
of the Plan as in effect prior to January 1, 1997 except as otherwise specifically provided in the
Plan.

1

 

ARTICLE 1

DEFINITIONS

Wherever used herein, the following terms shall have the
following meanings:

1.01 “Account” means the entire interest of a Participant in the Trust Fund and shall refer,
as the context indicates, to any or all of the following subaccounts:

	(a)	 	“Employer Contribution Account” means that portion of the Participant’s Account attributable
to the Employer Matching Contributions and Employer Discretionary Contributions made on the
Participant’s behalf by a Participating Employer as adjusted for withdrawals and distributions
and the earnings, losses and expenses attributable thereto.
	 
	(b)	 	“ESOP Account” means that portion of the Participant’s Account attributable to the transfer
of the Participant’s account under the Countrywide Credit Industries, Inc. Profit Sharing
Stock Ownership Plan, if any, as adjusted for withdrawals and distributions and the earnings,
losses and expenses attributable thereto.
	 
	(c)	 	“Rollover Contribution Account” means that portion of the Participant’s Account attributable
to the Participant’s Rollover Contributions, if any, as adjusted for withdrawals and
distributions and the earnings, losses and expenses attributable thereto.
	 
	(d)	 	“Salary Deferral Contribution Account” means that portion of the Participant’s Account
attributable to the Salary Deferral Contributions made on the Participant’s behalf by a
Participating Employer as adjusted for withdrawals and distributions and the earnings, losses
and expenses attributable thereto.

1.02 “Actual Contribution Percentage” means the contribution percentage as defined in Section
6.04(b).

1.03 “Actual Deferral Percentage” means the deferral percentage as defined in Section 6.03(c).

1.04 “Administrator” means the Company or such other person or committee designated by the
Company to administer the Plan in accordance with Article 14.

1.05 “Affiliated Company” means, with respect to any Participating Employer, any corporation which
is a member of a controlled group of corporations (as defined in Section 414(b) of the Code) which
includes the Participating Employer; any trade or business (whether or not incorporated) which is
under common control (as defined in Section 414(c) of the Code) with the Participating Employer;
any organization (whether or not incorporated) which is a member of an affiliated service group (as
defined in Section 414(m) of the Code) which includes the Participating Employer; and any other
entity required to be aggregated with the Participating Employer pursuant to regulations under
Section 414(o) of the Code, Except as provided in Appendix D, an Affiliated Company shall not be
deemed an Affiliated Company for any purpose under the Plan with respect to any period before it
became an Affiliated Company or after it ceases to be an Affiliated Company.

2

 

1.06 “After-Tax Contribution” means a Participant voluntary contribution that is included in the
Participant’s taxable income in the year earned. After-Tax Contributions are not permitted under
the Plan.

1.07
“Annual Addition” means annual addition as defined in Section 6.01(a).

1.08 “Beneficiary” means any person entitled to receive payment of a Participant’s Account pursuant
to Section 13.04 as a result of the death of the Participant.

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

1.10 “Code” means the Internal Revenue Code of 1986, as amended.

1.11 “Company” means Countrywide Credit Industries, Inc. or any successor by merger,
consolidation or sale of assets.

1.12 “Company Stock” means the common stock of Countrywide Credit Industries, Inc.

1.13 “Compensation” means for any Plan Year a Participant’s wages as defined in Section 3401(a) of
the Code (for purposes of federal income tax withholding) determined without regard to any rules
that limit remuneration included in wages based on the nature or location of the employment or the
services performed, subject to the following inclusions and exclusions:

	(a)	 	including employer contributions made pursuant to a compensation reduction agreement which
are not includible in the gross income of a Participant under Sections 125, 402(a)(8), 402(h)
or 403(b) of the Code and for Plan Years beginning on or after January 1, 2001, Section
132(f)(4) of the Code;
	 
	(b)	 	excluding any amounts paid as moving expenses, shift differential, call-in pay and any
other amounts paid on an irregular or discretionary basis as bonuses or special awards;
	 
	(c)	 	excluding any wages paid by reason of services performed (i) prior to the effective date of
the Participant’s participation in the Plan and (ii) after the Participant ceases to be an
Eligible Employee; and
	 
	(d)	 	excluding amounts paid to or in respect of Employees who are on international assignment for
expenses related directly to such assignment such as allowances and relocation expenses.

The maximum amount of Compensation that may be taken into account with respect to any Employee for
any Plan Year shall not exceed the amount of annual Compensation permitted to be taken into account
for such Plan Year under Section 401(a)(17) of the Code, as adjusted for cost-of-living increases
in accordance with applicable regulations and rulings.

1.14 “Designated Fiduciary” means the Trustee or any other person who is designated by the Company
as a “named fiduciary” (within the meaning of Section 403(a)(l) of ERISA) for purposes of the
exercise of voting, tender, and other stockholder rights with respect to Company Stock in
accordance with Section 8.05.

3

 

	1.15	 	“Eligible Employee” means any Employee employed by a Participating Employer,
but excluding:
	 
	(a)	 	any individual who is covered by a collective bargaining agreement with respect to which
retirement benefits were the subject of good faith bargaining and to which a
Participating Employer is a party, and which agreement does not provide for participation
in the Plan;
	 
	(b)	 	any individual who is not otherwise employed by a Participating Employer but who (i) is a
“leased employee” with respect to whose services such Participating Employer is the recipient
within the meaning of Section 414(n)(2) of the Code but to whom Section 414(n)(5) of the Code
does not apply, or (ii) is treated as a leased employee by a Participating Employer in
accordance with such employer’s usual employment policies and procedures;
	 
	(c)	 	any individual who is eligible to participate in another tax-qualified profit sharing plan
with a cash or deferred arrangement sponsored or maintained by a Participating Employer;
	 
	(d)	 	any individual who is a nonresident alien who receives no compensation from sources within
the United States (within the meaning of 861(a)(3) of the Code);
	 
	(e)	 	any temporary Employee as determined by the Participating Employer, whose Employment
Commencement Date (as defined in Section 2.05) is after December 31, 2001, and who has not
completed a Year of Service (as defined in Section 2.09(b)); and
	 
	(f)	 	any individual not classified by the Participating Employer as an employee on the
Participating Employer’s payroll records, although the individual is later determined to have
been misclassified. An individual who (1) is considered an Employee solely by reason of being
classified by a Participating Employer as a leased employee or (2) is classified by a
Participating Employer as an independent contractor, shall not be an Eligible Employee,
regardless of whether, for employment tax or other purposes, the individual is subsequently
determined not to be a leased employee or independent contractor. For purposes of determining
eligibility under the Plan, the classification to which an individual is assigned by a
Participating Employer shall be final and conclusive, regardless of whether a court or other
entity subsequently finds that such individual should have been assigned to a different
classification.

1.16 “Employee” means any individual who is treated as a common law employee of a Participating
Employer in accordance with its usual employment policies and procedures

1.17 “Employer Discretionary Contributions” means the contributions made by a Participating
Employer on behalf of Participants as described in Section 5.02.

1.18 “Employer Matching Contributions” means the contributions made by a Participating
Employer on behalf of Participants as described in Section 5.01.

1.19 “Entry Date” means the first day of each calendar month.

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

1.21 “Highly Compensated Employee” has the meaning set forth in Section 6.01 (b).

4

 

1.22 “Investment Fund” means one or more of the investment vehicles made available to Participants
for investment of their Accounts pursuant to Article 8.

1.23 “Limitation Year” means the year as defined Section 6.01(c).

1.24 “Non-highly Compensated Employee” has the meaning set forth in Section 6.01 (d).

1.25 “Participant” means any Eligible Employee or former Eligible Employee who has met the
participation requirements set forth in Article 3. “Participant” shall, solely for purposes of
Articles 7, 8, 13, 14, 15, 16 and 18 and Appendix B and Sections 3.04, 4.02, 9.01, and 11.03 (and
any other definitions in this Article 1 pertinent thereto), also include individuals who have made
Rollover Contributions or otherwise established Rollover Accounts hereunder without regard to
whether such individuals have satisfied the criteria for eligibility under Article 3 hereof.

1.26 “Participating Employer” means (a) the Company, and (b) any Affiliated Company or entity which
has adopted the Plan in accordance with the requirements of Article 16.

1.27 “Plan” means the Countrywide Credit Industries, Inc. 401(k) Savings and Investment Plan, a
profit sharing plan as set forth herein and as may be amended from time to time.

1.28 “Plan Year” means the calendar year.

1.29 “Required Beginning Date” means:

	(a)	 	for calendar years commencing prior to January 1, 2001, and for five-percent (5%) owners
regardless of the commencement date for a calendar year, April 1 of the calendar year
following the calendar year in which the Participant attained age
701/2;
	 
	(b)	 	for calendar years commencing after January 1, 2001, April 1 of the calendar year following
the later of the calendar year in which the Participant attains age 701/2 or
retires; provided, that the Participant is not a five-percent (5%) owner.

Notwithstanding the above, any Participant attaining age 70 1/2 in
1999 and 2000 may elect by the
April 1 of the calendar year following the year in which the Participant attained age 701/2, to
defer distributions until the calendar year following the calendar year in which the Participant
retires. If no such election is made the Participant will begin receiving distributions by the
April 1 of the calendar year following the year in which the Participant attained age 701/2.

1.30 “Rollover Contribution” means the contribution made to the Plan by an Eligible Employee
pursuant to Section 4.02 of all or part of the amount distributed to the Eligible Employee from
another qualified plan excluding any amount that is not an “eligible rollover distribution” as
defined in Section 402(f)(2)(A) of the Code from an “eligible retirement plan” as defined Section
402(c)(8)(B) of the Code.

1.31 “Salary Deferral Contributions” means the contributions made by a Participating Employer on
behalf of a Participant pursuant to the Participant’s election to defer Compensation under Section
4.01.

1.32
“Section 415 Compensation” means compensation as
defined in Section 6.01(e).

1.33 “Section 415 Employer” means a an employer as defined in Section 6.08(d).

5

 

1.34 “Total Disability” means, with respect to any Participant, a disability with respect to which
he or she is eligible for and is receiving benefits under the Company’s long term disability plan.

1.35 “Trust Agreement” means the agreement between the Company and the Trustee under which the
assets are held, administered and managed.

1.36
“Trust Fund” means all assets under the Plan held by the Trustee.

1.37 “Trustee” means any person, bank, or such other trustee or trustees under the Trust Agreement
as may be appointed by the Company to hold, invest and disburse the funds of the Plan.

1.38 “Valuation Date” means each business day and such other dates as may be selected by the
Administrator for valuing the Trust Fund.

ARTICLE 2

DEFINITIONS AND RULES FOR DETERMINING SERVICE

2.01 “Approved Absence” means an Employee’s approved leave of absence from employment because
of illness, disability, pregnancy, educational pursuits, service as a juror, or temporary
employment with a government agency, or other leave of absence approved by the Participating
Employer or Affiliated Company. An Approved Absence also includes any leave of absence in
accordance with the requirements of the Family and Medical Leave Act of 1993. The Participating
Employer or Affiliated Company that employs the Employee shall determine the first and last days of
any Approved Absence.

2.02 “Break in Service” means a Plan Year during which an Employee fails to complete more than 501
Hours of Service with the Company or Affiliated Company.

Solely for purposes of determining whether an Employee has a Break in Service, Hours of Service
shall be recognized during an Approved Absence or a Maternity or
Paternity Leave of Absence. During
such absence, the Employee shall be credited with the Hours of Service which would have been
credited but for the absence, or, if such hours cannot be determined, with eight (8) hours per day.
Credit shall be given only after the Employee has furnished to the Administrator such timely
information as the Administrator may reasonably require to establish that the absence is for a
reason described herein.

No more than 501 Hours of Service shall be credited by reason of any one pregnancy or placement.
Hours of Service credited shall be credited solely for purposes of determining whether a Break in
Service has occurred in a computation period. All Hours of Service credited shall be credited only
in the computation period in which the absence from work begins if any of such Hours of Service are
required in that computation period to avoid a Break in Service. If none of the Hours of Service
credited hereunder are required to avoid a Break in Service in the computation period in which the
absence begins, then the Hours of Service will be credited to the next computation period.

2.03 “Eligibility Computation Period” means (a) the 3-consecutive calendar month period beginning
with the calendar month in which an Employee’s Employment Commencement Date occurs if the Employee
has completed 250 or more Hours of Service during such period, or (b) in the case of an Employee
who fails to complete 250 or more Hours of Service during his first Eligibility Computation

6

 

Period, any calendar quarter commencing after the Employee’s Employment Commencement Date
during which the Employee completes 250 or more Hours of Service.

2.04 “Employer Contribution Eligibility Computation Period” means (a) the 12-consecutive calendar
month period beginning with the calendar month in which an Employee’s Employment Commencement Date
occurs if the Employee has completed 1,000 or more Hours of Service during such period, or (b) in
the case of an Employee who fails to complete 1,000 or more Hours of Service during his first
Employer Contribution Eligibility Computation Period, any Plan Year commencing after the Employee’s
Employment Commencement Date during which the Employee completes 1,000 or more Hours of Service.

2.05 “Employment Commencement Date” means the first day on which an Employee is entitled to be
credited with an Hour of Service for the Company or an Affiliated Company.

2.06 “Employment Recommencement Date” means the first day on which an Employee is entitled to be
credited with an Hour of Service for the Participating Employer or an Affiliated Company following
a Break in Service.

2.07 “Hours of Service” means, for an Employee:

	(a)	 	Each hour for which an Employee is directly or indirectly paid, or entitled to payment, for
the performance of duties for the Participating Employer or an Affiliated Company. Each such
hour shall be credited to the Employee for the computation period or periods in which the
duties are performed;
	 
	(b)	 	Each hour for which an Employee is directly or indirectly paid, or entitled to payment, by
the Participating Employer or an Affiliated Company on account of a period of time during
which no duties are performed (irrespective of whether the employment relationship has
terminated) due to vacation, holiday, illness, incapacity (including disability), layoff, jury
duty, military duty, or leave of absence. Each such hour shall be credited to the Employee for
the computation period or periods in which such period occurs, subject to the following rules:

	 	(i)	 	No more than 501 Hours of Service shall be credited under this paragraph (b)
to an Employee on account of any single continuous period during which the Employee
performs no duties (whether or not such period occurs in a single computation period),
and
	 
	 	(ii)	 	Hours of Service will not be credited under this paragraph (b) for which
payment by the Company or an Affiliated Company is made or due under a plan maintained
solely for the purpose of complying with applicable workers’ compensation,
unemployment compensation, or disability insurance laws or where payment solely
reimburses the Employee for medical or medically-related expenses incurred by the
Employee; and

	(c)	 	Each hour for which back pay, irrespective of mitigation of damages, is either awarded or
agreed to by the Participating Employer or an Affiliated Company. The same Hours of Service
shall not be credited both under paragraph (a) or paragraph (b), as the case may be, and under
this paragraph (c). These hours shall be credited to the Employee 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.

7

 

For Employees for whom the Company or an Affiliated Company does not maintain records sufficient to
determine Hours of Service, Hours of Service shall be credited for each payroll period of the
Employee for which the Employee receives or is entitled to receive compensation as follows:

	 	 	 
	Payroll Period	 	Hours of Service Credited
	(1)    Daily
	 	10
	(2)    Weekly
	 	45
	(3)    Bi-Weekly
	 	90
	(4)    Semi-Monthly
	 	95
	(5)    Monthly
	 	190

Hours of Service will be calculated and credited in a manner consistent with Section
2530.200b-2 of the Department of Labor Regulations which is incorporated herein by reference.

2.08 “Maternity or Paternity Leave of Absence” means an absence from work by reason of the
Employee’s pregnancy, birth of a child of the Employee, placement of a child with the Employee in
connection with adoption, or any absence for purposes of caring for such a child for a period
immediately following such birth or placement.

2.09 “Year of Service” means:

	(a)	 	For purposes of determining an Employee’s vested status under the Plan, any Plan Year during
which the Employee is credited with at least 1,000 Hours of Service with the Participating
Employer or an Affiliated Company; and
	 
	(b)	 	For purpose of determining an Employee’s eligibility to participate under the Plan, the
twelve month period commencing on the date an Employee first completed an Hour of Service with
the Participating Employer or an Affiliated Company, or any Plan Year during which an Employee
is credited with at least 1,000 Hours of Service with the Participating Employer or an
Affiliated Company.

Except as authorized by the Company, an Employee shall not receive credit for any Years of Service
with an Affiliated Company prior to the date on which such company first became an Affiliated
Company.

2.10 Rules for Crediting Service

If a Participant is reemployed by the Participating Employer or an Affiliated Company after a Break
in Service, the following special rules shall apply in determining the Participant’s Years of
Service:

	(a)	 	In the case of a Participant who is reemployed before the occurrence of five (5)
consecutive Breaks in Service:

	 	(i)	 	Years of Service completed prior to such break will not be taken into
account until the Participant has completed a Year of Service following his or her
Employment Recommencement Date; and
	 
	 	(ii)	 	both pre-break and post-break Years of Service will count in vesting his or
her pre-break and post-break Account balances.

8

 

	(b)	 	In the case of Participant who is reemployed after the occurrence of five (5) or more
consecutive Breaks in Service (or who is reemployed prior to such occurrence but does not
make the repayment provided for in Section 9.04):

	 	(i)	 	separate Employer Contribution Accounts will be maintained to reflect the
Participant’s pre-break and post-break Account balances; and
	 
	 	(ii)	 	all Years of Service after such Breaks in Service will be disregarded for the
purposes of vesting the pre-break Account balance, but both pre-break and post-break
Years of Service will count for purposes of vesting the Account balance that accrues
after such break.

2.11
Absence Due to Military Service.

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

2.12 Special Rule in Connection with Certain Spinoffs and Mergers.

Notwithstanding any provision of the Plan to the contrary, to the extent specified in a
resolution of the Board of Directors, assets and liabilities of Accounts may be transferred to the
trustee of another company’s qualified plan. The names of the company qualified plan and trustee
accepting the transfer, as well as the nature of the assets, shall be set forth in Appendix C
hereof. Thereafter, each Account shall be governed by the terms and conditions of the qualified
plan accepting the transfer. Transfer of a Participant’s Account and assets related to such Account
shall completely discharge all obligations of the Company and Plan to a Participant, a company to
which the Participant was transferred and a plan and trust to which the assets were transferred.

2.13 Special Rule in Connection with Certain Acquisition Transactions.

Notwithstanding any provision of the Plan to the contrary, to the extent specified in a
resolution of the Board of Directors, the service of any Employee with a corporation or other trade
or business prior to its acquisition by the Company or an Affiliated Company shall be recognized
hereunder as though such service were rendered for a Participating Employer hereunder. The name of
the corporation or other trade or business the preacquisition service for which is so recognized
and the purposes for which such preacquisition service is recognized (e.g., eligibility, vesting,
etc.) shall be set forth in Appendix D hereof.

ARTICLE 3

PARTICIPATION
IN THE PLAN 

3.01 Eligibility to Participate.

	(a)	 	The following provisions shall apply for the purpose of determining an Eligible
Employee’s participation in the Plan.

	 	(i)	 	Each Employee as of January 1, 1997 who was a participant in the Plan
immediately prior to January 1, 1997 shall continue to be a Participant as of
January 1, 1997.

9

 

	 	(ii)	 	Each Employee who was not eligible to participate immediately prior to January
1, 1997 shall become a Participant upon the Entry Date coincident with or next
following the date he or she meets the following requirements:

	 	(A)	 	Attainment of age 21; and
	 
	 	(B)	 	Completion of the Eligibility Computation Period,
	 
	 	if
he or she is then an Eligible Employee.

	 	(iii)	 	If an individual is not an Eligible Employee on the date such individual
would otherwise become a Participant pursuant to Section 3.01(a)(ii), such individual
shall become a Participant as of the first date thereafter on which he or she is an
Eligible Employee.
	 
	 	(iv)	 	A Participant who ceases to be an Eligible Employee, by separation from service or
otherwise, and who later becomes an Eligible Employee, shall become a Participant on
the Entry Date coincident with or immediately following the date on which he or she
first again completes an Hour of Service as an Eligible Employee.

	(b)	 	The following provisions apply for the purpose of determining a Participant’s
eligibility to receive allocations of Employer Matching Contributions and Employer
Discretionary Contributions:

	 	(i)	 	Each Participant as of January 1, 1997, who was eligible to receive
allocations of Employer Matching Contributions and Employer Discretionary Contributions
immediately prior to January 1, 1997, shall be eligible for this purpose as of January
1, 1997.
	 
	 	(ii)	 	A Participant who was not eligible to receive allocations of Employer Matching
Contributions and Employer Discretionary Contributions immediately prior to January
1, 1997, shall become eligible for this purpose upon the Entry Date coincident with
or next following the date he or she meets the following requirements:

	 	(A)	 	Attainment of age 21; and
	 
	 	(B)	 	Completion of the Employer Contribution Eligibility Period,
	 
	 	
if he or she is then a Participant.

	 	(iii)	 	If an individual is not a Participant on the date he or she would otherwise
become eligible to receive allocations of Employer Matching Contributions and Employer
Discretionary Contributions pursuant to Section 3.01(b)(ii), such individual shall
become so eligible to receive allocations of Employer Matching Contributions and
Employer Discretionary Contributions as of the Entry Date coincident with or
immediately following the date thereafter on which he or she becomes a Participant.
	 
	 	(iv)	 	A Participant eligible to receive allocations with respect to Employer Matching
Contributions and Employer Discretionary Contributions who ceases to be an Eligible
Employee, by separation from service or otherwise, and who later becomes an Eligible
Employee, shall become eligible to receive such allocations as of the Entry Date

10

 

	 	 	 	coincident with or immediately following the date on which he or she first
again completes an Hour of Service.

3.02 Break in Service.

	(a)	 	If an Eligible Employee incurs a Break in Service before he or she becomes eligible to
participate in the Plan and he or she later is reemployed as an Eligible Employee, he or she
shall be treated as a new Employee at the time of his or her reemployment for purposes of the
participation requirements.
	 
	(b)	 	If an Eligible Employee incurs a Break in Service after he or she becomes eligible to
participate in the Plan and he or she later is reemployed as an Eligible Employee, he or she
shall become a Participant in the Plan commencing on the Entry Date coincident with or
immediately following his or her Employment Recommencement Date.

3.03 Cessation of Eligibility to Participate.

If a Participant transfers employment to a non-Participating Employer, terminates
employment, or ceases to be an Eligible Employee, his or her participation in the Plan with respect
to Salary Deferral Contributions, Employer Matching Contributions, Employer Discretionary
Contributions, and Rollover Contributions will cease as of the date he or she ceases to be an
Eligible Employee. After such date, he or she shall continue to be a Participant only with respect
to the allocation of earnings, losses, and expenses made in accordance with Article 7 until the
balance credited to his or her Account is distributed.

3.04 Data.

Each Employee shall furnish to the Administrator such data as the Administrator may
consider necessary for the determination of the Employee’s rights and benefits under the Plan and
shall otherwise cooperate fully with the Administrator in the administration of the Plan.

ARTICLE 4

PARTICIPANT CONTRIBUTIONS

	4.01	 	Salary Deferral Contributions.

	(a)	 	A Participant may elect to have Salary Deferral Contributions made on his or her behalf
in an amount equal to a full percentage of his or her Compensation from 1 percent (1%) to 16
percent (16%) or such other percentage as may be established by the Administrator. Such
contributions shall be made by the Participating Employer as a reduction in the Compensation
that would otherwise be payable to the Participant.
	 
	(b)	 	For Plan Years beginning on or after January 1, 2002, a Participant may change his or her
election with respect to Salary Deferral Contributions effective as of the next available
payroll period. For Plan Years beginning prior to January 1, 2002, a Participant may change
his or her election with respect to Salary Deferral Contributions effective as of any Entry
Date. A Participant may revoke his or her election at any time; provided, however, that such
Participant may not again elect to have Salary Deferral Contributions made on his or her
behalf beginning earlier than the first Entry Date occurring at least 90 days after the date
of the election revocation.

11

 

	(c)	 	A Participant’s election to have Salary Deferral Contributions made on his or her
behalf, or to change or revoke his or her election, shall be made in the form, manner, and
in accordance with the notice requirements, prescribed by the Administrator.
	 
	(d)	 	Salary Deferral Contributions shall be transferred by a Participating Employer to the Trust
Fund as of the earliest date on which such contributions can reasonably be segregated from the
Company’s general assets, but in no event later than the fifteenth (15th) business day of the
month following the month in which the Salary Deferral Contributions would have otherwise been
payable to the Participant in cash.
	 
	(e)	 	Salary Deferral Contributions shall be subject to the limitations set forth in Articles 6 and
8. The Administrator may reject, amend or revoke the election of any Participant at any time
if the Administrator determines that such change or revocation is necessary to insure that the
limitations of Articles 6 and 8 are not exceeded.
	 
	4.02	 	Rollover Contributions.

	(a)	 	Subject to approval of the Administrator, a Participant may at any time contribute to
the Trust Fund all or a portion of the cash he or she has received from (i) another qualified
plan under circumstances meeting the rollover requirements of Section 402(c) of the Code, or
(ii) a conduit individual retirement account that meets the requirements of Section
408(d)(3)(A)(ii) of the Code, was established to hold distributions received from qualified
retirement plans of former employers and does not contain nondeductible contributions made by
the Employee while he or she was a participant in such plans.
	 
	(b)	 	Such Rollover Contribution must be made no later than sixty (60) days following the date on
which the Participant receives distribution from such other qualified plan or conduit
individual retirement account and must comply with the provisions of Section 402(c),
403(a)(4), or 408(d)(3) of the Code, whichever applies.
	 
	(c)	 	Distributions from a plan for a self-employed person shall not be transferred to the Plan,
unless the transfer is directly to the Trust Fund from the funding agent of the distributing
plan.
	 
	(d)	 	The interest being transferred shall not include assets from any plan to the extent that the
Administrator determines that the transfer of such interest (i) would impose upon the Plan
requirements as to form of distribution that would not otherwise apply hereunder, (ii) would
otherwise result in the elimination of Code Section 411(d)(6) protected benefits, or (iii)
would cause the Plan to be a direct or indirect transferee of a plan to which the joint and
survivor annuity requirements of Code Sections 401(a)(11) and 417 apply.
	 
	(e)	 	The distributions transferred by or for an Eligible Employee from another qualified
retirement plan or from an individual retirement account shall be credited to the Employee’s
Rollover Account.
	 
	(f)	 	An Employee shall be fully vested at all times in his Rollover Account.
	 
	(g)	 	An Employee’s Rollover Account shall be distributed as otherwise provided under the Plan.

12

 

	(h)	 	The Administrator may require such assurances and
certifications as it may deem necessary to determine whether the amounts to he rolled over in fact meet the rollover treatment
requirements of the Code and will not affect the qualification of the Plan under Section 401
(a) of the Code.
	 
	(i)	 	Notwithstanding any other provision hereof to the contrary, to the extent specified in a
resolution of the Board of Directors, subject to further approval of the Administrator, a
Participant who was an employee of another corporation or trade or business who became an
Employee because of the acquisition of such corporation or trade or business shall have
participant loans eligible for Rollover Contribution as set forth in Appendix D.

ARTICLE 5

EMPLOYER CONTRIBUTIONS

	5.01	 	Employer Matching Contributions.
	 
	(a)	 	The Company, in its sole discretion, from time to time shall determine the amount, if
any, of Employer Matching Contributions to be made for any Plan Year on behalf of Participants
who are Eligible Employees of the Company and each Participating
Employer; provided, however
that no Employer Matching Contributions shall be made in respect of any Salary Deferral
Contributions made by a Participant prior to the Entry Date described in Section 3.01(b). The
amount of Employer Matching Contributions determined by the Company shall continue in effect
for subsequent Plan Years unless and until the Company provides
otherwise.
	 
	(b)	 	The amount of the Employer Matching Contribution to be allocated to each such Participant’s
Account for a Plan Year shall be equal to such dollar amount, such percentage of a
Participant’s Salary Deferral Contributions, or any combination thereof, as may be determined
by the Company in its sole discretion.
	 
	(c)	 	Employer Matching Contributions made on behalf of any Participant shall be subject to
the limitations set forth in Article 6.
	 
	5.02	 	Employer Discretionary Contributions.
	 
	(a)	 	For each Plan Year, the Company, in its sole discretion, shall determine the amount, if
any, of Employer Discretionary Contributions to be made on behalf of Participants who are
Employees of the Company and each Participating Employer.
	 
	(b)	 	The amount of the Employer Discretionary Contribution to be allocated to each such
Participant’s Account for a Plan Year shall be determined by either of the following methods,
as selected by the Company in its sole discretion: (i) a uniform dollar amount for each
Participant or (ii) the ratio that such Participant’s Compensation for the Plan Year (or for
the portion of the Plan Year during which he or she was actually a Participant, if applicable)
bears to the Compensation for all such eligible Participants for the Plan Year.
	 
	(c)	 	Employer Discretionary Contributions made on behalf of any Participant shall be subject to
the limitations set forth in Article 6.

13

 

	5.03	 	Time of Payment of Contributions.
	 
	 Employer Matching Contributions and Employer Discretionary Contributions shall be paid by a
Participating Employer to the Trust Fund at such time or times as may be determined by the Company
or Participating Employer, but in no event later than the due date (including extensions)
prescribed by law for filing the federal income tax return for the Participating Employer’s taxable
year for which the Employer Matching Contributions and Employer Discretionary Contributions are
claimed as an income tax deduction.
	 
	5.04	 	Form of Contributions.
	 
	(a)	 	Employer Matching Contributions and/or Employer Discretionary Contributions to be allocated
to Participants who are Employees of the Company or a Participating Employer which is an
Affiliated Company may be made, at the discretion of the Company, in cash or in Company Stock
issued by the Company or purchased on a national securities exchange.
	 
	(b)	 	For purposes of allocating contributions to Participants, Company Stock shall be valued
as follows:

	 	(i)	 	The value of Company Stock purchased on a national securities exchange shall
be the purchase price of such Company Stock, exclusive of commissions.
	 
	 	(ii)	 	The value of Company Stock which is issued by the Company for the purpose of
contributing it to the Plan shall be the average of the closing price for the last
five (5) business days of the calendar quarter for which the contribution is being
made.

ARTICLE 6

LIMITATIONS ON CONTRIBUTIONS

	6.01	 	Definitions.

The following definitions shall apply for purposes of this Article 6:

	(a)	 	“Annual Addition” means the sum of the following amounts allocated to a Participant’s
Account during the Limitation Year:

	 	(i)	 	employer contributions,
	 
	 	(ii)	 	employee contributions,
	 
	 	(iii)	 	forfeitures, and
	 
	 	(iv)	 	amounts described in Sections 415(l)(l) and 419(A)(d)(2)
of the Code.

	 	 	The amount of a Participant’s Annual Additions shall be determined without regard to
the limitations set forth in Sections 6.02, 6.03, 6.04 and 6.05.

14

 

	(b)	 	“Highly Compensated Employee” means any Participant who during the Plan Year was a five
percent (5%) owner, or during the preceding Plan Year was (i) a five percent (5%) owner or
(ii) received compensation in excess of $80,000 or such higher amount as may be in effect
under Section 414(q)(l)(B) of the Code. For purposes of this Section 6.1(b), “compensation”
means Section 415 Compensation.
	 
	(c)	 	“Limitation Year” means the Plan Year.
	 
	(d)	 	“Non-highly Compensated Employee” means an Employee who is not a Highly Compensated Employee.
	 
	(e)	 	“Section 415 Compensation” means wages within the meaning of Section 3401(a) of the Code and
all other payments of compensation to a Participant by a Participating Employer (in the course
of the Participating Employer’s trade or business) for which the Participating Employer is
required to furnish the employee a written statement under
Sections 6041(d), 6051(a)(3), and
6052 of the Code. For Limitation Years beginning after December 31, 1997, Section 415
Compensation shall include the Participant’s Salary Deferral Contributions pursuant to this
Plan, his elective deferrals (as defined in Section 402(g)(3) of the Code) pursuant to any
other plan of an Affiliated Company and any amount that is contributed or deferred by an
Affiliated Company at the election of the Participant and which is not includible in the gross
income of the Participant by reason of Section 125 or 457 of the Code. For Limitation Years
commencing on or after January 1, 2001, Section 415 Compensation also shall include elective
amounts that are not includible in the gross income of the Participant by reason of Section
132(f)(4) of the Code.

The maximum amount of Section 415 Compensation that may be taken into account in any Plan Year
shall not exceed the dollar limitation contained in Section 401(a)(17) of the Code in effect as of
the beginning of the Plan Year, as adjusted by for cost-of-living increases in accordance with
applicable regulations and rulings.

	6.02	 	Annual Limitation on Salary Deferral Contributions.
	 
	(a)	 	In no event shall a Participant’s Salary Deferral Contributions made under the Plan, or
any other qualified plan maintained by the Participating Employer or an Affiliated Company,
during any calendar year exceed the dollar limitation contained in Section 402(g) of the Code
in effect at the beginning of such year.
	 
	(b)	 	Notwithstanding any other provision of the Plan, Salary Deferral Contributions which exceed
the dollar limitation in paragraph (a) for a calendar year, plus any income or minus any loss
allocable thereto, shall be distributed to affected Participants no later than April 15 of the
following calendar year.
	 
	6.03	 	Limitations on Salary Deferral Contributions Applicable to Highly Compensated
Employees.
	 
	(a)	 	The Actual Deferral Percentage for Participants who are Highly Compensated Employees
for the Plan Year shall not exceed the greater of:

	 	(i)	 	the Actual Deferral Percentage for Participants who are Non-highly
Compensated Employees for the Plan Year multiplied by 1.25; or

15

 

	 	(ii)	 	the Actual Deferral Percentage for Participants who are Non-highly Compensated
Employees for the Plan Year multiplied by 2.0, provided that the Actual Deferral
Percentage for Participants who are Highly Compensated Employees does not exceed the
Actual Deferral Percentage for Participants who are Non-highly Compensated Employees
by more than two (2) percentage points.

	(b)	 	The limitation set forth in this Section 6.03 shall be applied after application of the
annual dollar limitation set forth in Section 6.02.
	 
	(c)	 	“Actual Deferral Percentage” means, for a specified group of Participants for a Plan Year,
the average of the ratios (calculated separately for each Participant in such group) of (i)
the amount of Salary Deferral Contributions actually paid over to the Trust Fund on behalf of
such Participant for the Plan Year to (ii) the Participant’s Section 415 Compensation for such
Plan Year but taking into account only compensation paid after the employee first became a
Participant in the Plan. For Plan Years beginning after December 31, 1996, this percentage
shall be calculated using the current year testing method.
	 
	6.04	 	Limitations on Employer Matching Contributions Applicable to Highly Compensated
Employees.
	 
	(a)	 	The Actual Contribution Percentage for Participants who are Highly Compensated Employees
for the Plan Year shall not exceed the greater of:

	 	(i)	 	the Actual Contribution Percentage of the Participants who are Non-highly
Compensated Employees for the Plan Year multiplied by 1.25; or
	 
	 	(ii)	 	the Actual Contribution Percentage for Participants who are Non-highly
Compensated Employees for the Plan Year multiplied by 2.0, provided that the Actual
Contribution Percentage for Participants who are Highly Compensated Employees does not
exceed the Actual Contribution Percentage for Participants who are Non-highly
Compensated Employees by more than two (2) percentage points.

	(b)	 	“Actual Contribution Percentage” means, for a specified group of Participants for a Plan
Year, the average of the ratios (calculated separately for each Participant in such group) of
(i) the amount of Employer Matching Contributions and Employer Discretionary Contributions
actually paid over to the Trust Fund on behalf of such Participant for the Plan Year to (ii)
the Participant’s Section 415 Compensation for such Plan Year, but taking into account only
compensation paid after the employee first became a Participant. For Plan Years beginning
after December 31, 1996, this percentage shall be calculated using the current year testing
method.
	 
	6.05	 	Combined Limitations on Salary Deferral Contributions and Employer Matching
Contributions.
	 
	(a)	 	In no event shall the Actual Deferral Percentage or the Actual Contribution Percentage
for Participants who are Highly Compensated Employees for the Plan Year exceed the multiple
use limitation set forth in Treasury Regulation Section 1.401(m)-2.
	 
	(b)	 	The limitation set forth in this Section 6.05 shall be applied after application of the
limitations set forth in Sections 6.03 and 6.04.

16

 

	6.06	 	Correction of Excess Salary Deferral Contributions and Excess Employer
Matching Contributions.

In the
event that any of the limitations set forth in Sections 6.03, 6.04, and 6.05 are
exceeded for any Plan Year, the Administrator shall take one or more (either alone or in
combination) of the following corrective actions no later than the last day of the following Plan
Year:

	(a)	 	Notwithstanding any other provision of the Plan, excess Salary Deferral Contributions with
respect to a Plan Year, plus any income or minus any loss allocable thereto and to the “gap
period” (within the meaning of Treasury Regulation Section
1.401(k)-1(f)(4)(ii)), shall be
distributed to Participants on whose behalf such excess contributions were made. The amount of
a Participant’s excess Salary Deferral Contributions shall be determined in accordance with
Section 401(k)(8)(b) of the Code and the regulations thereunder. Such excess shall be
distributed beginning with the Highly Compensated Employee with the largest Salary Deferral
Contribution percentage amount and continuing in descending order until the excess Salary
Deferral Contributions have been distributed.
	 
	(b)	 	Notwithstanding any other provision of the Plan, excess Employer Matching Contributions with
respect to a Plan Year, plus any income or minus any loss allocable thereto, shall be treated
as follows:

	 	(i)	 	To the extent not yet vested, such excess contributions shall be treated as
forfeitures with respect to Participants on whose behalf such excess contributions were
made. Amounts forfeited pursuant to this Section 6.06(b) shall be applied to reduce
employer contributions in accordance with Section 9.05.
	 
	 	(ii)	 	If not forfeitable, such excess contributions shall be distributed to
Participants on whose behalf such excess contributions were made.

	 	 	The amount of a Participant’s excess Employer Matching Contributions shall be determined in
accordance with Section 401(m)(6)(B) of the Code and the regulations thereunder. Such
excess shall be distributed beginning with the Highly Compensated Employee with the largest
Employer Matching Contribution percentage amount and continuing in descending order until
the excess Employer Matching Contributions have been distributed.
	 
	(c)	 	The Participating Employer may make “Qualified Nonelective Contributions” (within the meaning
of Treasury Regulation Section 1.401(k)-1(g)(7)) to the Plan on behalf of Participants who are
Non-highly Compensated Employees for such Plan Year. The amount of the Qualified Nonelective
Contributions shall be determined at the discretion of the Company on behalf of the group of
Non-highly Compensated Participants who were actively employed on the last day of the Plan
Year and who were eligible to participate in the Plan for the entire Plan Year. The Qualified
Nonelective Contribution will be allocated as follows:

	 	(i)	 	the lowest paid Participant in the group will be allocated an amount equal
to the lowest of (1) 25% the Participant’s Compensation for the Plan Year; (2) the
maximum permissible amount, taking into account the applicable limitations of this
Article 6 applicable to the Participant, or (3) the full amount of the Qualified
Nonelective Contribution.
	 
	 	(ii)	 	The next lowest paid Participant will be allocated an amount equal to the
lowest of (1) 25% of the Participant’s Compensation for the Plan Year; (2) the maximum
permissible

17

 

	 	 	 	amount taking into account the applicable limitations of this Article 6
applicable to the Participant; or (3) the balance of the Qualified
Nonelective contribution after the above allocation.
	 
	 	(iii)	 	The allocation in step (ii) will be applied individually to
each remaining Participant in the group, in ascending order of Compensation,
until the Qualified Nonelective Contribution is fully allocated. No further
allocation will be made to the remaining Participants in the group.

	6.07	 	Forfeiture of Employer Matching Contributions.

Notwithstanding anything in the Plan to the contrary, Employer Matching Contributions shall
be forfeited to the extent that such contributions relate to excess Salary Deferral
Contributions made on behalf of a Participant.

	6.08	 	Limitations on Contributions Applicable to All Participants.
	 
	(a)	 	In no event shall the Annual Addition to a Participant’s Account for any
Limitation Year exceed the lesser of:

	 	(i)	 	$30,000 or such other dollar limitation in effect for the
Limitation Year under Section 415(c)(l)(A)of the Code, or
	 
	 	(ii)	 	twenty-five percent (25%) of the Participant’s Section 415 Compensation for the
Limitation Year or such other percentage limitation in effect for the
Limitation Year under Section 415(c)(l)(B) of the Code.

	(b)	 	If a Participant also is covered under another defined contribution plan, a
welfare benefit fund (as defined in Section 419(e) of the Code), or an individual
medical account (as defined in Section 415(1)(2) of the Code), maintained by a Section
415 Employer, then the Annual Addition which may be credited to a Participant’s Account
under paragraph (a) above for any Limitation Year shall be reduced by the Annual
Additions credited to the Participant’s account under such other plans and welfare
benefit funds for the same limitation year.
	 
	(c)	 	For Limitation Years beginning prior to January 1, 2000, if a Participant also
participates, or has previously participated, in one or more defined benefit plans (as
defined in Section 414(j) of the Code) maintained by a Section 415 Employer, then in no
event shall the sum of the Participant’s Defined Contribution Fraction (as defined in
Section 415(e)(3) of the Code) and the Participant’s Defined Benefit Fraction (as
defined in Section 415(e)(2) of the Code) for such Participant exceed 1.0 in any
Limitation Year. If such limitation is exceeded, then Participant’s Annual Addition to
the Plan shall be reduced to the extent necessary so that such fraction does not exceed
1.0, but only if the defined benefit plan in which the Participant is participating
does not permit a reduction of the Participant’s benefit thereunder that would reduce
such fraction to 1.0.
	 
	(d)	 	“Section 415 Employer” means, with respect to any Participating Employer, any
corporation which is a member of a controlled group of corporations (as defined in
Section 414(b) of the Code as modified by Section 415(h)) which includes the
Participating Employer; any trade or business (whether or not incorporated) which is
under common control (as defined in Section
414(c) of the Code as modified by Section 415(h)) with the Participating
Employer; any
organization (whether or not incorporated) which is a member of an affiliated
service group (as

18

 

	 	 	defined in Section 414(m) of the Code) which includes the Participating Employer; and
any other entity required to be aggregated with the Participating Employer pursuant to
regulations under Section 414(o) of the Code.
	 
	6.09	 	Reduction of Excess Annual Additions.

In the event that the Annual Addition credited to a Participant’s Account exceeds the
limitations contained in Section 6.08 in any Limitation Year, then such excess Annual Addition
shall be reduced as follows:

	(a)	 	First, the amount of the Participant’s Employer Discretionary Contributions shall be reduced
to the extent that such reduction results in a reduction of the amount by which a
Participant’s Annual Addition exceeds such limitations.
	 
	(b)	 	Second, the amount of the Participant’s Employer Matching Contributions shall be reduced to
the extent that such reduction results in a reduction of the amount by which a Participant’s
Annual Addition exceeds such limitations.
	 
	(e)	 	Third, the amount of the Participant’s Salary Deferral Contributions shall be reduced.
Any reduction of Salary Deferral Contributions shall be paid to the Participant as soon
as administratively feasible.
	 
	(f)	 	Any reduction of Employer Discretionary Contributions and/or Employer Matching Contributions
shall be held unallocated in a suspense account and applied to reduce employer contributions
in succeeding Plan Years in accordance with Section 9.05.
	 
	(g)	 	Notwithstanding anything contained herein or in the Trust Agreement to the contrary, if the
Plan is terminated while there remains a balance in any suspense account, such amounts shall
be paid to the Participating Employer which contributed said amounts.
	 
	6.10	 	Deduction Limitation Applicable to Employer Contributions.

In no event shall the amount of employer contributions for any Plan Year exceed the amount
deductible with respect to such Plan Year under Section 404 of the Code.

ARTICLE 7

PARTICIPANTS’ ACCOUNTS

	7.01	 	Separate Accounts.

An Account in the Trust Fund shall be established and maintained for each Participant. The
records of each such Account shall reflect the manner in which each Account is invested and the
value of such investments, any withdrawals by or distributions to the Participant or other persons,
any charges or credits made to such Account, and such other information as the Administrator or
the Trustee may deem appropriate.

19

 

	7.02	 	Contributions to Accounts.

All contributions made by a Participating Employer on behalf of a Participant shall be paid
to the Trustee and shall be allocated to the Participant’s Account in accordance with the
provisions of the Plan.

	7.03	 	Valuation of Accounts.

The value of each Participant’s Account shall be determined as of each Valuation Date, at
which time the Administrator shall adjust the balance of each Participant’s Account to
reflect any of the following which have occurred since the last Valuation Date:

	(a)	 	contributions, withdrawals, distributions and other charges or credits
attributable to the Participant’s Account;
	 
	(b)	 	the net earnings, gains, losses and expenses and any appreciation or
depreciation in market value of the Investment Funds selected by the Participant for
investment of his or her Account; and
	 
	(c)	 	with respect to any amounts credited to the Participant’s Account which are not
invested in any of the Investment Funds, the net increase or decrease, as the case may
be, in the value of the Trust Fund due to investment earnings, gains or losses and any
expenses of the Trust Fund, which adjustment shall be made in the same proportion that
the balance in the Participant’s Account as of the last Valuation Date (reduced by any
withdrawals, distributions or transfers from such Account since the last Valuation Date
and by the principal amount of all outstanding loans to such Participant) bore to the
total balance of all Participants’ Accounts (as so reduced) as of such last Valuation
Date.

	7.04	 	Segregated Accounts.

The Administrator may direct the Trustees to establish a segregated account and to transfer
to such segregated account the balance of the Account of any Participant who pursuant to
Article 13 has elected to defer distribution.

ARTICLE 8

TRUST FUND AND INVESTMENT OF ACCOUNTS

	8.01	 	Trust Fund and Trustees.

The Company may execute a trust or trusts with a Trustee or Trustees to establish a Trust
Fund under the Plan. Any Trust Agreement is designated as, and shall constitute, a part of
the Plan and all rights which may accrue to any person under the Plan shall be subject to
the terms and conditions of such Trust Agreement. The Company may modify the Trust
Agreement from time to time to accomplish the purposes of the Plan.

	8.02	 	Investment Funds.

	(a)	 	The Administrator shall select such investment vehicles as it determines appropriate
to meet the
requirements of Section 404(c) of ERISA and the regulations thereunder relating to the
investment of Participants’ Accounts at the direction of the Participants. The Administrator may

20

 

	 	 	select such additional investment vehicles as it determines appropriate for the
investment of Participants’ Accounts, including, but not limited
to, Company Stock.

	(b)	 	The Administrator may prescribe such rules and restrictions on the investment of
Participants’ Accounts in any such investment vehicle as it deems appropriate.
	 
	(c)	 	In the event that the fees of any investment manager or investment advisor are attributable
to a particular investment vehicle, the Administrator may, in its discretion, determine how
such expenses shall be allocated among Participants’ Accounts.
	 
	8.03	 	Investment Direction.
	 
	(a)	 	The Administrator, or its designees, shall provide Participants with such information
and materials with respect to the Investment Funds as may be required by Section 404(c) of
ERISA.
	 
	(b)	 	A Participant’s investment direction (or any change in investment direction) shall be made
in the manner and in such form as the Administrator shall direct.
	 
	(c)	 	A Participant’s investment election shall remain in effect until the Participant properly
makes a change of election in accordance with the procedures established by the Administrator.
In the event that any Participant shall not have directed the investment of all or a portion
of the balance in his or her account at any time, the Participant shall be deemed to have
directed that such balance be invested in a money market (or equivalent) fund and such assets
shall remain in such Investment Fund until such time as the Participant directs otherwise.
	 
	(d)	 	A Participant may change his or her investment election with respect to existing investments,
new contributions, or both, at such time or times as may be permitted by the Administrator.
Such change must be made in writing or in accordance with such other methods as may be
established by the Administrator in accordance with the requirements of Section 404(c) of
ERISA.
	 
	8.04	 	Limitations on Investment in Company Stock.
	 
	(a)	 	Except as provided in this Section 8.04 and in Article 12, the portion of a
Participant’s Account which in invested in Company Stock shall not be eligible for investment
in any other Investment Fund. The investment limitation set forth in this Section 8.04 shall
not apply to cash dividends attributable to Company Stock allocated to the Participant’s
Account.
	 
	(b)	 	The Administrator, in its sole discretion, may from time to time adopt rules permitting
Participants to elect to invest all or a portion of the Company Stock held in their
Accounts in another Investment Fund.
	 
	(c)	 	A Participant’s Salary Deferral Contribution Account may be invested up to 50 percent (50%)
in Company Stock. A Participant may change his investment election with respect to existing
investments in Company Stock in any Salary Deferral Contribution Account and Rollover
Contribution Account, provided that at the time of such change, the value of the Participant’s
investment in Company Stock shall not exceed fifty percent (50%) of the total value of the
Salary Deferral Contribution Account and Rollover Contribution Account.

21

 

	8.05	 	Voting and Tendering of Company Stock.
	 
	(a)	 	Participants’ Stockholder Rights. Each Participant or Beneficiary who has shares of
Company Stock allocated to his or her Accounts shall have the right to direct the Designated
Fiduciary as to the exercise of voting, tender, and other stockholder rights with respect to
such shares.
	 
	(b)	 	Action on Participants’ Instructions. The Designated Fiduciary shall exercise voting, tender,
and other stockholder rights in accordance with the instructions received from Participants
with respect to Company Stock. For this purpose, the Designated Fiduciary shall combine
fractional shares and exercise rights with respect to such shares to the extent possible to
reflect the instructions of the Participants.
	 
	(c)	 	Action Where No Timely or Valid Instructions Received. In the event that a Participant fails
to provide timely or valid instructions as to how rights with respect to Company Stock shall
be exercised, the Designated Fiduciary shall exercise rights with respect to such shares, as
the Designated. Fiduciary, in its sole discretion, determines appropriate and in accordance
with its fiduciary obligations under ERISA.
	 
	(d)	 	Treatment of Unallocated Shares. In the case of Company Stock held by the Trust Fund which
are not allocated to Participants’ Accounts, the Designated Fiduciary shall exercise rights
with respect to such unallocated shares as the Designated Fiduciary, in its sole discretion,
determines appropriate and in accordance with its fiduciary obligations under ERISA.
	 
	(e)	 	Confidentiality of Information. All information and instructions received from Participants
or Beneficiaries with respect to the exercise of voting, tender, and other stockholder rights
shall be held in the strictest confidence by the Administrator and the Designated Fiduciary,
except to the extent necessary to comply with federal laws or state laws not preempted by
ERISA.

ARTICLE 9

VESTING AND FORFEITURE

	9.01	 	Salary Deferral Contribution Account and Rollover Contribution Account.

A Participant’s interest in his or her Salary Deferral Contribution Account and Rollover
Contribution Account, if any, shall be fully vested and nonforfeitable at all times.

	9.02	 	Employer Contribution Account.
	 
	(a)	 	Upon a Participant’s Total Disability, death or attainment of age 65 while an
Employee, the Participant’s interest in his or her Employer Contribution Account shall be
fully vested and nonforfeitable.
	 
	(b)	 	If a Participant’s termination of employment occurs before age 65 for any reason other than
Total Disability or death, the Participant’s vested interest in his or her Employer
Contribution Account shall be determined in accordance with the following schedule:

22

 

	 	 	 
	Years of Service	 	Vested Interest
	Less than 1
	 	  0%
	1
	 	20%
	2
	 	40%
	3
	 	60%
	4
	 	80%
	5 or more
	 	100%  

	(c)	 	The portion, if any, of a Participant’s Account which is attributable to the special
contribution allocated effective as of October 1, 1991 shall be fully vested and
nonforfeitable on the date on which such Participant completes one Year of Service following
the date of the special contribution.
	 
	9.03	 	Forfeiture.

If (a) a Participant terminates employment and receives (or is deemed to receive) a
distribution of his or her entire vested account balance, or (b) a Participant incurs five (5)
consecutive Breaks in Service, then the nonvested portion of his or her Employer Contribution
Account will be treated as a forfeiture. For purposes of this Section 9.03, if the value of a
Participant’s vested account balance is zero, then such Participant shall be deemed to have
received a distribution of his or her entire vested account balance as of the date of his or her
termination of employment.

	9.04	 	Restoration of Forfeitures.
	 
	(a)	 	In the case of a Participant who received a distribution of his or her entire vested Account
balance under the Plan and who again becomes an Eligible Employee, the amount forfeited
pursuant to Section 9.03 shall be restored if he or she repays the full amount of the
distribution before the earlier of:

	 	(i)	 	five (5) years after the first date on which the Participant is subsequently
reemployed; or
	 
	 	(ii)	 	the date the Participant incurs five (5) consecutive Breaks in Service
following the date of the distribution.

	(b)	 	In the case of a Participant who is deemed to have received a distribution of his or her
entire vested interest under the Plan and who again becomes an Eligible Employee, the amount
forfeited pursuant to Section 9.03 shall be restored if the Participant again becomes an
Eligible Employee before the date on which he or she incurs five (5) consecutive Breaks in
Service.
	 
	(c)	 	A Participant who is reemployed after the occurrence of five (5) consecutive Breaks in
Service shall not have any restoration rights with respect to the previously forfeited balance
in his or her Employer Contribution Account.
	 
	9.05	 	Application of Forfeitures.
	 
	(a)	 	Forfeitures shall be used, at the discretion of the Administrator, to pay administrative
expenses of the Plan or to reduce the amount of Employer Matching Contributions and Employer
Discretionary Contributions which are to be made by the Participating Employer for the current
or following Plan Year.
	 
	(b)	 	If an amount must be restored to a reemployed Participant’s Employer Contribution Account in
accordance with Section 9.04, such restoration shall be made, as directed by the Participant’s

23

 

	 	 	Participating Employer, from forfeitures attributable to, or net income of the
Trust Fund which would otherwise be allocated to Participants employed by such
Participating Employer, and/or from a contribution made by such Participating Employer
for that purpose.
	 
	9.06	 	Change in Vesting Schedule.

If the Plan’s vesting schedule is amended, or the Plan is amended in any way that directly
or indirectly affects the calculation of a Participant’s vested interest in his or her Employer
Contribution Account, each Participant with at least three (3) Years of Service may elect to have
his or her vested interest calculated under the Plan without regard to such amendment or change. A
Participant’s election under this Section
9.06 must be made during the period beginning with the date the amendment is adopted or deemed to
be made and ending on the latest of:

	(a)	 	sixty (60) days after the amendment is adopted;

	 
	(b)	 	sixty (60) days after the amendment becomes effective; or
	 
	(c)	 	sixty (60) days after the Participant is issued written notice of the amendment by the Company.
	 
	9.07	 	Vesting Upon Termination Following a Change in Control.
	 
	(a)	 	Notwithstanding the vesting schedule set forth in Section 9.02 above, in the event that
within the two (2) year period following a Change in Control the employment of a Participant
who is an Employee of the Company or an Affiliated Company is terminated by the Company or any
Affiliated Company for any reason other than Cause, his or her interest in the Employer
Contribution Account shall be fully vested and nonforfeitable.
	 
	(b)	 	For purposes of this Section 9.07, a Change in Control shall be deemed to occur upon the
occurrence of one the events described in Appendix A.
	 
	(c)	 	For purposes of this Section 9.07, an Employee shall be terminated for Cause if he or she is
terminated by the Company or an Affiliated Company because he or she (a) intentionally and
continually failed to perform reasonably assigned duties, (b) willfully engaged in misconduct
which is demonstrably and materially injurious to the Company, monetarily or otherwise, (c)
engaged in a transaction in connection with the performance of his or her duties to the
Company for personal profit to himself or herself, or
(d) willfully violated any law, rule or
regulation in connection with the performance of his or her duties (other than traffic
violations or similar offenses). Failure of a Participant to perform the Participant’s duties
during any period of disability shall not constitute Cause.

ARTICLE 10

LOANS TO PARTICIPANTS

	10.01	 	General

All Participants who are Eligible Employees shall be eligible to receive loans from their
Salary Deferral Contribution Account, Rollover Contribution Account and Employer Contribution
Account under the Plan. The Managing Director, Human Resources of the Company shall prescribe the
terms and

24

 

conditions for making loans to Participants from their Accounts consistent with the
provisions of this Article 10, the prohibited transaction exemption requirements of the Code and
ERISA, and other applicable law and Appendix B.

10.02 Maximum Loan Amount.

In no event shall any loan made pursuant to this Article 10 be in an amount which would
cause the outstanding aggregate balance of all loans made to the Participant under the Plan and all
other qualified plans maintained by the Company or any Affiliated Company to exceed the lesser of
(a) or (b):

	(a)	 	$50,000 reduced by the excess (if any) of

	 	(i)	 	the highest outstanding balance of loans from the Plan to the
Participant during the one-year period ending on the day before the date the loan is
made, over
	 
	 	(ii)	 	the outstanding balance of loans from the Plan to the Participant on
the date the loan is made; or

	(b)	 	50% of the current balance of the vested portion of the Participant’s Salary Deferral
Contribution Account, Rollover Contribution Account and Employer Contribution Account balance,
determined as of the date on which the loan is approved.

10.03 Loan Terms.

Loans shall be made to Participants in accordance with the following terms:

	(a)	 	A loan to a Participant shall be evidenced by the Participant’s recourse promissory note in
the form prescribed by the Managing Director, Human Resources of the Company.

	(b)	 	The period for repayment of a loan shall not exceed five (5) years; provided, however, that a
loan used to acquire a dwelling unit which within a reasonable time is to be used (determined
at the time the loan is made) as the Participant’s principal residence may be repaid over a
period of up to fifteen (15) years.

	(c)	 	Interest shall be charged on the loan at a reasonable rate to be determined by the
Managing Director, Human Resources of the Company at the time the loan is made.

	(d)	 	Loan repayments on principal and interest shall be amortized in level payments over payment
periods to be determined by the Managing Director, Human Resources of the Company in his or
her discretion, but not less frequently than quarterly, over the term of the loan.

10.04 Collateral.

Notwithstanding
anything to the contrary in Section .19.03, a Participant who accepts a
Plan loan shall be deemed to have assigned to the Trustee, as security for the loan, fifty percent
(50%) of the sum of his or her Salary Deferral Contribution Account, Rollover Contribution Account
and Employer Contribution Account, to the extent vested as of the date of the loan. The
Administrator may require such additional security for the loan as it deems necessary or prudent.

25

 

10.05 Treatment of Loan Payments.

A loan payment shall be considered to be a return on an investment of the Trust Fund. Any
payment to the Plan of interest on a loan to a Participant, as well as repayments of loan
principal, shall be credited to the Participant’s Account and shall be accounted for as investment
earnings or return of principal, as the case may be, on that Account.

10.06 Default.

	(a)	 	If not paid as and when due, in addition to any other remedies permitted by law, any
outstanding Plan loan (including interest accrued and unpaid thereon) to a Participant may be
charged pro rata against the Participant’s Salary Deferral Contribution Account, Rollover
Contribution Account and Employer Contribution Account. The outstanding loan balance shall be
treated as repaid to the extent of such charge.

	(b)	 	Except as otherwise provided in paragraph (c) below, the Managing Director, Human Resources
of the Company may elect to charge the unpaid loan balance against the Participant’s Account
other than the ESOP Account whether or not the Participant has attained age 59-1/2 or
terminated employment, and whether or not such charge is on account of any financial hardship
of the Participant.

	(c)	 	The Managing Director, Human Resources of the Company may not charge any unpaid loan balance
against a Participant’s Salary Deferral Contribution Account unless the Participant has
attained age 59-1/2, has terminated employment, or qualifies for a financial hardship
withdrawal in accordance with Sections 11.01 and 11.03.

10.07 Suspension for Military Leave

Effective for loans made on or after January 1, 2002, loan repayments will be suspended
under this Plan as permitted under Section 414(u)(4) of the Code.

ARTICLE 11

WITHDRAWALS DURING SERVICE

 11.01 Financial Hardship.

Upon evidence of “hardship” satisfactory to the Administrator, a Participant may, in the
form and manner prescribed by the Administrator, withdraw in cash that part of the balance in his
or her Salary Deferral Contribution Account (but excluding any income allocable to Salary Deferral
Contributions) which the Administrator determines is needed by the Participant on account of such
hardship. For this purpose, “hardship” shall mean immediate and heavy financial need of the
Participant that cannot be met by other reasonably available financial resources of the
Participant.

The Administrator’s determination as to whether a hardship exists and the amount necessary to
be distributed in the event of such hardship shall be made in accordance with the following
rules:

	(a)	 	The determination of whether an immediate and heavy financial need exists shall be
based on all relevant facts and circumstances. As determined in the Administrator’s discretion
(which shall

26

 

	 	 	be exercised in a uniform and nondiscriminatory manner), such financial need may include,
but is not limited to:

	 	(i)	 	medical care expenses (as described in Section 213(d) of the Code)
previously incurred by the Participant, the Participant’s spouse or dependents (as
defined in Section 152 of the Code), or expenses necessary to obtain medical care;
	 
	 	(ii)	 	costs directly related to the purchase (excluding mortgage payments)
of a principal residence for the Participant;
	 
	 	(iii)	 	funeral expenses for a member of the Participant’s immediate family;
	 
	 	(iv)	 	payment of tuition, related educational fees, and room and board expenses
for the next 12 months of post-secondary education for the Participant, the
Participant’s spouse, children, or dependents (as defined in Section 152 of the Code);
or
	 
	 	(v)	 	payments necessary to prevent the eviction of the Participant from
his or her principal residence or foreclosure on the mortgage of the Participant’s
principal residence.

	(b)	 	The Administrator shall not permit a hardship withdrawal to be made unless it determines,
based upon all relevant facts and circumstances, that the amount to be distributed is not in
excess of the amount required to relieve the financial need and that such need cannot be
satisfied from other resources reasonably available to the Participant. For this purpose, the
Participant’s resources shall be deemed to include those assets of the Participant’s spouse
and minor children that are reasonably available to the Participant. A distribution may be
treated as necessary to satisfy a financial need if the Administrator relies upon the
Participant’s written representations, unless the Employer has actual knowledge to the
contrary, that the need cannot be relieved:

	 	(i)	 	through reimbursement or compensation by insurance or otherwise;
	 
	 	(ii)	 	by reasonable liquidation of the Participant’s assets, to the extent such
liquidation would not itself cause an immediate and heavy financial need;
	 
	 	(iii)	 	by cessation of elective deferrals and voluntary contributions under the Plan;
or
	 
	 	(iv)	 	by other distributions or loans from the Plan or any other qualified
retirement plan, or by borrowing from commercial sources on reasonable commercial
terms.

	(c)	 	Notwithstanding paragraph (b), the Administrator may permit a hardship withdrawal to be made
if it determines that all of the following conditions are satisfied:

	 	(i)	 	the distribution is not in excess of the amount necessary to satisfy the
immediate and heavy financial need of the Participant (including any amounts
necessary to pay any federal, state, or local income taxes or penalties which may
result from the distribution);
	 
	 	(ii)	 	the Participant has obtained all distributions, other than hardship
distributions, and all nontaxable loans currently available under all plans maintained
by the Company or any Affiliated Company;

27

 

	 	(iii)	 	the Participant’s Salary Deferral Contributions under the Plan, and the
Participant’s
elective deferrals and voluntary employee contributions under all other plans
maintained by the Company or any Affiliated Company, are suspended for a period of
12 months after receipt of the hardship distribution; and
	 
	 	(iv)	 	the Participant may not make Salary Deferral Contributions under the Plan, or
elective
deferrals under all other plans maintained by the Company or an Affiliated Company,
for the Participant’s taxable year immediately following the taxable year of the
hardship distribution, in excess of:

	 	(A)	 	the applicable limit under Section 402(g) of the Code for such
next taxable year; reduced by
	 
	 	(B)	 	the amount of such Participant’s elective deferrals for
the taxable year of the hardship distribution.

11.02 Withdrawals After Age 59-1/2.

A Participant who has attained age 59-1/2 and who is 100% vested in his or her Employer
Contribution Account may, in the form and manner prescribed by the Administrator, direct payment to
himself in cash of part or all of the balance of the Participant’s Employer Contribution Account.

11.03 General Rules Applying to Withdrawals.

The following rules shall apply to withdrawals made under this Article 11:

	(a)	 	Notwithstanding any other provisions of this Article 11, no payment shall be made to a
Participant to whom a loan is outstanding under this Article 11 if such payment would cause
the balance of the Participant’s Account to be less than 250% of the unpaid principal of the
loan unless the Administrator determines, in its sole discretion, that a lower balance is
permissible in the case of a hardship withdrawal.

	(b)	 	Distribution of any withdrawal under this Article 11 shall be made as soon as practicable
following the Valuation Date selected by the Administrator for effecting such payment, unless
the Administrator, in its sole discretion, elects to make payment earlier.

	(c)	 	A Participant may not make a withdrawal from his or her Account more often than once in any
twelve (12) month period or at such other times as may be permitted pursuant to uniform rules
prescribed by the Administrator.

	(d)	 	A Participant or a designated Beneficiary who is the Participant’s spouse may elect to have
all or any portion of the amount withdrawn pursuant to this Article 11 which is eligible for
rollover distribution under Section 402(c) of the Code transferred directly to an eligible
retirement plan (as defined in Section 401(a)(31) of the Code).

28

 

ARTICLE 12

ESOP ACCOUNT DIVERSIFICATION

12.01 General.

	(a)	 	Each Participant who

	 	(i)	 	is a Qualified Participant, and
	 
	 	(ii)	 	has Company Stock credited to his or her ESOP Account with a fair market value
of
more than $500 as of the Valuation Date immediately preceding the date on which he
or she first becomes a Qualified Participant,

	 	 	shall be entitled to have shares of Company Stock credited to his or her ESOP
Account distributed or invested in accordance with the requirements of this
Article 12 during the Diversification Election Period.
	 
	(b)	 	“Diversification Election Period” means the 6-Plan-Year period beginning with the Plan Year
in which a Participant first becomes a Qualified Participant.
	 
	(c)	 	“Qualified Participant” means a Participant (i) who has an ESOP Account and (ii) who has
attained age 55 and completed 10 years of participation in the Plan and the Countrywide Credit
Industries, Inc. Profit Sharing Stock Ownership Plan.

12.02 Diversification of ESOP Account.

	(a)	 	A Qualified Participant may elect to have shares of Company Stock subject to the
diversification requirements of this Article 12 distributed or invested in accordance with
this Section 12.02 during the 90-day period following the last day of each Plan Year during
the Diversification Election Period.
	 
	(b)	 	The maximum number of shares of Company Stock which a Qualified Participant may elect to have
distributed or invested for any year during the Diversification Election Period shall be equal
to (i) reduced by (ii) below:

	 	(i)	 	25 percent (25%), or with respect to the last year of the Diversified
Election Period, 50 percent (50%), of the sum of

	 	(A)	 	the total number of shares allocated to the Participant’s
ESOP Account as of the close of the Plan Year, plus
	 
	 	(B)	 	the number of shares previously distributed or invested
pursuant to this Article 12; reduced by

	 	(ii)	 	the number of shares previously distributed or invested pursuant to this
Article 12.

	(c)	 	A Qualified Participant may elect to have shares subject to the diversification requirements
of this Article 12 distributed or invested as follows:

29

 

	(d)	 	The Participant may elect to have the shares distributed in a single lump sum
distribution;

	 	(i)	 	The Participant may elect to have all or any portion of the shares
(provided that such shares have an aggregate fair market value of $500) which are
eligible for rollover distribution under Section 402(c) of the Code transferred
directly to an eligible retirement plan (as defined in Section 401(a)(31) of the Code);
or
	 
	 	(ii)	 	The Participant may elect to have the shares reinvested in any of the
Investment Funds in accordance with Section 8.03.

	(e)	 	Distribution or investment of the shares shall be made within 90 days after the close of
the Participant’s 90-day election period.

ARTICLE 13

DISTRIBUTIONS AFTER TERMINATION OF EMPLOYMENT

13.01 Termination of Employment
Prior to Age 65.

In the event a Participant terminates employment with the Company or an Affiliated Company prior to
attaining age 65 for any reason other than death, the Participant shall be entitled to receive a
distribution of the vested balance in his or her Account as of any Valuation Date following
termination of employment.

	(a)	 	Effective March 1, 1999, if the vested balance of the Participant’s Account does not exceed
$5,000 ($3,500 prior to March 1, 1999), or, for distributions after March 21, 1999, exceeds
$5,000 at the time the Participant terminates employment and at a later time is reduced to an
amount not greater than $5,000, distribution shall be made as soon as practicable following
the earlier of:

	 	(i)	 	the date on which the Administrator receives a properly completed
distribution election form; or
	 
	 	(ii)	 	the expiration of the 90-day period beginning on the date on which the
Administrator provides the notice required by Section 402(f) of the Code and Treasury
Regulation Section 1.411(a)-11(c) to the Participant.

	(b)	 	If the vested balance of a Participant’s Account exceeds $5,000, no distribution will be made
without the Participant’s prior written consent. If such consent is not given, distribution
shall be made as soon as practicable following the earlier of:

	 	(i)	 	the date on which the Administrator receives a properly completed
distribution election form; or
	 
	 	(ii)	 	(A) the earliest practicable date following the Valuation Date
following the Participant’s termination of employment or (B) the earliest practicable
date following the Valuation Date next following his or her 65th birthday,
if later, at which time the Participant’s nonforfeitable interest shall be
automatically paid to him or her.

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13.02 Termination of Employment At or After Age 65.

In the event a Participant terminates employment with the Company or an Affiliated Company
at or after attaining age 65, the Participant shall be entitled to receive a distribution of the
balance in his or her Account as of any Valuation Date following termination of employment.
Distribution shall be made as soon as practicable following the earlier of:

	(a)	 	the date on which the Administrator receives a properly completed distribution election form;
or

	(b)	 	the expiration of the 90-day period beginning on the date on which the Administrator provides
the notices required by Section 402(f) of the Code and Treasury
Regulation Section 1.411(a)-11(c) to the Participant.

The Participant’s benefit commencement date shall be no later than the 60th day
following the close of the Plan Year in which the Participant attained age 65 or has a termination
of employment, whichever occurs last. In no event, however, shall a Participant’s benefit
commencement date be later than the Required Beginning Date.

13.03 Death.

	(a)	 	In the event a Participant dies before payment of his or her Account begins, the
Participant’s designated Beneficiary or estate shall be entitled to receive distribution of
the Account as of the Valuation Date coincident with or next following the Participant’s
death. Distribution shall be made as soon as practicable following the earlier of:

	 	(i)	 	the date on which the Administrator receives a properly completed
distribution election form; or
	 
	 	(ii)	 	the expiration of the 90-day period beginning on the date on which the
Administrator provides the notices required by Section 402(f) of the Code and
Treasury Regulation Section 1.411(a)-11(c) to the designated Beneficiary.

(b) Notwithstanding paragraph (a), in no event shall distribution of the Account begin later than:

	 	(i)	 	if (A) the designated Beneficiary is the Participant’s spouse and (B)
the balance of the Participant’s Account exceeds $5,000, the date on which the
Participant would have attained the Required Beginning Date; or
	 
	 	(ii)	 	in any other case, one year after the Participant’s death.

13.04 Beneficiary Designation.

	(a)	 	Each Participant may designate, in the form and manner prescribed by the
Administrator, one or more persons as the Beneficiary of the Participant’s Account; provided,
however, that if the Participant is survived by a spouse, such spouse shall be the
Participant’s sole Beneficiary unless the spouse consents, in writing, to the Participant’s
designation of one or more other persons to be the Beneficiary of all or a portion of the
Participant’s Account. Any Beneficiary designation made by a Participant may be changed or
revoked by the Participant at any time or from time to time during the Participant’s lifetime;
provided, however, that any such change or revocation shall not reduce the portion of the
Account payable to the Participant’s spouse without the written

31

 

	 	 	consent of the spouse. Any written consent required of a Participant’s spouse shall
acknowledge the effect of the consent and shall be witnessed by a representative of the Plan
or a notary public. The consent of a spouse shall not be required if the Administrator
determines that the spouse cannot be located or that the Code and ERISA otherwise do not
require such consent.
	 
	(b)	 	If no Beneficiary is designated or survives the Participant, the balance of the Participant’s
Account shall be paid to the Participant’s spouse, if living; otherwise, to the Participant’s
estate.
	 
	(c)	 	No designation, revocation, or change of beneficiaries shall be valid and effective unless
and until filed with the Administrator.
	 
	(d)	 	Upon the receipt of written proof of the dissolution of marriage of a Participant, any
earlier designation of the Participant’s former spouse as a Beneficiary shall be treated as
though the Participant’s former spouse had predeceased the Participant, unless, prior to
payment of benefits on behalf of the Participant:

	 	(i)	 	the Participant executes and delivers another Beneficiary designation that complies with
the Plan and that clearly names such former spouse as a Beneficiary; or
	 
	 	(ii)	 	there is delivered to the Plan a qualified domestic relations order
in accordance with Section 414(p) of the Code providing that the former spouse is
to be treated as the Beneficiary.

	 	 	In any case in which the Participant’s former spouse is treated under the Participant’s
Beneficiary designation as having predeceased the Participant, no heirs or other
beneficiaries of the former spouse shall receive benefits from the Plan as a Beneficiary of
the Participant except as provided otherwise in the Participant’s Beneficiary designation.
	 
	(e)	 	If a Participant has designated no beneficiary under this Section 13.04, if the Participant’s
beneficiary(ies) predecease the Participant, or if the beneficiary(ies) cannot be located by
the Administrator, the interest of the deceased Participant shall be paid to the Participant’s
estate.

13.05 Form of Payment.

	(a)	 	A Participant’s Account shall be distributed to the Participant or the Participant’s
Beneficiary in a single lump sum payment.

	(b)	 	The portion of a Participant’s Account which is invested in the Investment Funds shall be
distributed in cash. The portion of a Participant’s Account which is invested in Company Stock
shall be distributed at the election of the Participant or Beneficiary in the form of (i) cash
or (ii) whole shares of Company Stock which are attributable to such Account as of the
applicable Valuation Date on the date of distribution and the value of any fractional share
shall be distributed in cash.

13.06
Direct Transfer of Eligible Rollover Distribution.

Effective for distributions made after December 31,1992, a Participant or a designated Beneficiary
who is the Participant’s spouse may elect to have all or any portion of his or her Account which is
eligible for rollover distribution under Section 402(c) of the Code transferred directly to an
eligible retirement plan (as defined in Section 401(a)(31) of the Code).

32

 

13.07
Mandatory Distribution.

	(a)	 	Notwithstanding any other Plan provision, benefit payments to a Participant shall
commence no later than the Participant’s Required Beginning Date.

(b) After-Tax Contributions may be distributed at any time.

ARTICLE 14

ADMINISTRATION

14.01 Administrator.

The Company shall be the “Administrator” of the Plan within the meaning of Section 3(16)(A) of
ERISA and a “Named Fiduciary” for purposes of Section 402(a)(2) of ERISA. The Investment Committee
of Employee Benefit Plans is delegated responsibility for the selection of Investment Funds and
monitoring performance of the Investment Funds and is a “Named Fiduciary” for purposes of Section
402(a)(2) of ERISA. The Managing Director, Human Resources of the Company is delegated authority
and discretion regarding Participant Loans. Such duties shall be performed on behalf of the Company
by such persons or committee as may be appointed by the Board of Directors.

14.02 Administrator’s Authority and Powers.

In addition to the duties and powers described elsewhere hereunder, the Administrator shall
have the following specific duties and powers:

	(a)	 	The Administrator shall have full authority and power to administer and construe the
Plan,
subject to applicable requirements of law. Without limiting the generality of the foregoing,
the Administrator shall have the following powers and duties:

	 	(i)	 	To require any person to furnish such information as it may request
for the purpose of the proper administration of the Plan as a condition to receiving
benefits under the Plan;
	 
	 	(ii)	 	To make and enforce such rules and regulations, which shall be uniform and
nondiscriminatory, and to prescribe such forms, as it deems necessary or proper for
the efficient administration of the Plan;
	 
	 	(iii)	 	To construe and interpret the Plan, to resolve ambiguities, and inconsistencies
and to
supply omissions with respect to the Plan provisions, which determinations shall be
final and conclusive on all persons claiming benefits under the Plan;
	 
	 	(iv)	 	To decide all questions concerning the Plan, including the eligibility
of any person to participate in the Plan and the status and rights of any Participant
or Beneficiary under the Plan;
	 
	 	(v)	 	To determine the amount of benefits which shall be payable to any person
in accordance with the provisions of the Plan;

33

 

	 	(vi)	 	To retain such consultants, accountants and attorneys as may be
deemed necessary or desirable to render statements, reports, and advice with respect
to the Plan and to assist the Administrator in complying with all applicable rules
and regulations affecting the Plan; any consultants, accountants and attorneys may
be the same as those retained by the Plan; and
	 
	 	(vii)	 	To exercise all other powers specified in the Plan.

	(b)	 	The Administrator may adopt such rules for the conduct of its affairs as it deems appropriate.

	(c)	 	Any decisions and determinations made by the Administrator pursuant to its duties and powers
described in the Plan shall be conclusive and binding upon all parties. The Administrator
shall have sole discretion in carrying out its responsibilities.

14.03 Delegation of Duties.

The Administrator may delegate such of its duties and may appoint such accountants,
actuaries, legal counsel, investment advisors, investment managers, claims administrators,
specialists and other persons as the Administrator deems appropriate in connection with
administering the Plan. The Administrator shall be entitled to rely conclusively upon, and shall be
fully protected in any action taken by the Administrator in good faith in reliance upon any
opinions or reports furnished to the Administrator by any such experts or other persons. To the
extent of any such delegation, the delegate shall have the duties, powers, authority and discretion
of the Administrator.

14.04 Fiduciary Responsibilities With Respect to Company Stock.

The Company shall appoint a person to act as the Designated Fiduciary with respect to all
matters affecting Participants’ rights with respect to Company Stock as described in Section 8.05.
Such fiduciary shall have full authority and power to take any such actions as it deems necessary
or appropriate to ensure that such rights are enforced.

14.05 Charges on Participants’ Accounts.

To the extent permitted under ERISA, the Administrator may, in its discretion, charge
Participants’ Accounts for the reasonable expenses of administering the plan; including the
expenses associated with providing a loan from a Participant’s Account but excluding processing
fees for qualified domestic relation orders in accordance with Section 414(p) of the Code.

14.06 Expenses.

All expenses incurred in connection with the administration of the Plan, including, without
limitation, administrative expenses and compensation and other expenses and charges of any person
who shall be employed by the Administrator pursuant to Section 14.03, excluding settlor expenses,
shall be paid from the Trust Fund unless paid separately by the Participating Employers.

14.07 Compensation.

No person or member of a committee serving as the Administrator who is a full-time
employee of a Participating Employer shall receive any compensation for services as member of
the Administrator.

34

 

Any expenses of the Administrator shall be paid from the Trust Fund, unless paid by the
Participating Employee.

14.08 Exercise of Discretion.

Any person with any discretionary power in the administration of the Plan shall exercise
such discretion in a nondiscriminatory manner.

14.09 Fiduciary Liability.

In administering the Plan, neither the Administrator nor any person or member of a committee
serving as the Administrator nor any person to whom the Administrator delegates any duty or power
in connection with administering the Plan shall be liable, except in the case of his or her own
willful misconduct, for:

	(a)	 	any action or failure to act,
	 
	(b)	 	the payment of any amount under the Plan,
	 
	(c)	 	any mistake of judgment made by him or her or on his or her behalf, or

	(d)	 	any omission or wrongdoing of any member of the Administrator. No member of the Administrator
shall be personally liable under any contract, agreement, bond, or other instrument made or
executed by him or her or on his or her behalf as a member of the Administrator.

14.10 Indemnification by Participating Employers.

To the extent not compensated by insurance or otherwise, the Participating Employers shall
indemnify and hold harmless each person and each member of a committee serving as the
Administrator, and each employee of a Participating Employer designated by the Administrator to
carry out fiduciary responsibility with respect to the Plan from any and all claims, losses,
damages, expenses (including counsel fees approved by the Company) and liabilities (including any
amount paid in settlement with the approval of the Company), arising from any act or omission of
such member, except where the same is judicially determined to be due to willful misconduct of such
member or employee. Anything herein to the contrary notwithstanding, no assets of the Plan may be
used for any such indemnification.

14.11 Plan Participation by Fiduciaries.

No person who is a fiduciary with respect to the Plan shall be precluded from being a
Participant therein upon satisfying the requirements for eligibility.

14.12 Missing Persons.

In the event that the Administrator is unable to locate a Participant or Beneficiary within
five (5) years after an Account becomes payable, the Administrator shall take the following
actions:

	(a)	 	mail notice by registered mail, return receipt requested, to the last known address;

	(b)	 	if no reply to notice is received within sixty (60) days, the Administrator shall take such
further diligent effort to ascertain the whereabouts of such Participant or Beneficiary as the
Administrator deems appropriate under ERISA; and

35

 

	(c)	 	if such effort is unsuccessful, the Administrator shall invest the balance of the
Participant’s
Account in an interest bearing savings account held by the Trustee. The savings account
shall be registered in the name of the person entitled to the distribution. The
establishment of the savings account shall be deemed full payment of any amounts due from
the Plan.

14.13 Claims Procedure.

All claims for benefits under the Plan by a Participant or the Participant’s Beneficiary
with respect to benefits not received by such person shall be made in writing to the Administrator,
which shall review such claims. If the Administrator believes that a claim should be wholly or
partially denied, it shall notify the claimant of the denial in written or electronic form within
ninety (90) days after its receipt of the claim unless the Administrator determines that special
circumstances exist for an extension of time for processing beyond ninety (90) days. The
Administrator shall provide notice to the claimant within the initial ninety (90) day period which
shall state the special circumstances requiring an extension of time and the date by which the Plan
expects to render the benefit determination. Notice of an adverse determination shall:

	(a)	 	set forth the specific reason or reasons for the adverse determination, making reference to
the pertinent provisions of the Plan or the Plan documents on which the determination is
based;

	(b)	 	describe any additional material or information necessary for the claimant to perfect the
claim and an explanation of why such material or information is necessary;

	(c)	 	describe 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 an adverse benefit determination on review; and

	(d)	 	inform the person making the claim of his or her right pursuant to this Section 14.13 to
appeal the decision by the Administrator.

Any such person may appeal an adverse claim determination to the Administrator by submitting a
written request for review to the Administrator within sixty (60) days after the date on which such
denial is received. Such period may be extended by the Administrator for good cause The person
making the request for review

	(a)	 	upon request and free of charge, shall be given reasonable access to, and copies of, all
documents, records and other information relevant (as determined under Labor Regulation
2560.503-1(m)(8)) to the claimant’s claim for benefits; and

	(e)	 	may include within the appeal written comments, documents, records and other information
relevant to the claim.

The Administrator shall:

	(a)	 	provide for a review that takes into account all comments, documents, records, and other
information submitted by the claimant relating to the claim, without regard to whether
such information was submitted or considered in the initial benefit determination; and
	 
	(b)	 	decide whether or not to grant the claim within sixty (60) days after receipt of the request
for review, but this period may be extended by the Administrator for up to an additional sixty
(60)

36

 

	 	 	days in special circumstances. If such an extension of time for review is required because
of special circumstances, written notice of the extension shall be furnished to the claimant
within the initial sixty (60) day period and shall indicate the special circumstances
requiring an extension of time and the date by which the Administrator expects to render the
determination on review.

The Administrator’s decision shall be in writing or in electronic form and shall include:

	(a)	 	the specific reason or reasons for the adverse determination;

	(b)	 	reference to the specific plan provisions on which the benefit determination is based; and

	(f)	 	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
(as determined under Labor Regulation 2560.503-1(m)(8)) to the claimant’s claim for benefits
and shall refer to pertinent provisions of the Plan or of the Plan documents on which the
decision is based.

ARTICLE 15

AMENDMENT AND TERMINATION OF PLAN

15.01 Amendment.

The Company may at any time and from time to time amend the Plan by action of the Board of
Directors without the consent of any Trustee, any other Participating Employer, or any Participant or
Beneficiary, Such amendment may be adopted by resolution, by such other action permitted by the
Company’s charter or by-laws, or by such other method permitted by the laws of the state of the
Company’s incorporation.

Notwithstanding the foregoing:

	(a)	 	no amendment that materially affects the Trustee’s duties shall be effective without the
written consent of the Trustee;

	(b)	 	no amendment shall cause the Trust Fund to be used other than for the exclusive benefit
of Participants and their Beneficiaries; and

	(c)	 	no amendment may reduce or eliminate any benefit which is a
“Section 411(d)(6)
Protected Benefit” except as permitted under applicable Treasury Regulations.

15.02 Right to Terminate Plan.

The Company intends to maintain the Plan as a permanent tax-qualified retirement plan.
Nevertheless, the Company reserves the right to terminate the Plan (in whole or in part) at any
time, by action of the Board of Directors, without the consent of any Trustee, any other
Participating Employer, or any Participant or Beneficiary. Such termination may be adopted by
resolution, by such other action permitted by the Company’s charter or by-laws, or by such other
method permitted by the laws of the state of the Company’s incorporation.

37

 

15.03 Consequences of Termination.

	(a)	 	If the Plan is terminated in whole or in part, the interest of each Participant affected
by the termination in his or her Account will become fully vested and nonforfeitable as of the
date of the termination.

	(b)	 	If the Plan is terminated in whole or in part, the Administrator shall determine the
date and manner of distribution of all Participants’ Accounts.

	(c)	 	The Administrator shall give prompt notice to each Participant (or, if deceased, the
Participant’s Beneficiary) affected by the Plan’s complete or partial termination.

ARTICLE 16

PARTICIPATING EMPLOYERS

16.01 Adoption by Other Employers.

Any Affiliated Company may adopt the Plan and join in the Trust Fund created hereunder and
become a Participating Employer with respect to the participation in the Plan by Eligible Employees
of such Affiliated Company. All contributions made by Participating Employers, and the income
therefrom, shall be held by the Trustees as a part of a single Trust Fund without allocation among
the Participating Employers until the Administrator shall notify the Trustees of the termination of
the Plan as to any Participating Employer pursuant to Section 16.03(c).

16.02 Delegation of Powers and Authority.

A Participating Employer shall be deemed to appoint the Board of Directors and the
Administrator as its exclusive agent to exercise on its behalf all of the powers and authority
conferred upon the Board of Directors and the Administrator by the terms of the Plan, including,
but not by way of limitation, the power to amend and terminate the Plan and the Trust Fund created
hereunder. The authority of the Board of Directors and the Administrator to act as such agent shall
continue with respect to all funds contributed by each Participating Employer and the income
therefrom unless and until the amount of such funds and income has been distributed by the Trustees
as provided in Section 16.03.

16.03 Termination of Participation.

	(a)	 	The Administrator shall notify the Trustees in writing of the termination of the Plan as
to any Participating Employer, and the Trustees shall not accept any further contributions
under the Plan from such Participating Employer and shall set aside in a separate account such
part of the Trust Fund as the Administrator shall, pursuant to paragraph (b), determine to be
held for the benefit of Eligible Employees of the Participating Employer (and their
Beneficiaries), as of the last day of the Plan Year which is such Participating Employer’s
termination date under the Plan.

	(b)	 	The Administrator shall give written directions to the Trustees with respect to the part of
the assets of the Trust Fund segregated in a separate account pursuant to paragraph (a). Such
directions shall specify the amount to be segregated and shall be in accordance with generally
accepted accounting principles, and, to the maximum extent consistent with ERISA, the
determination of the fair market value of the assets of the Trust Fund in the manner provided
for

38

 

	 	 	in the Plan shall be conclusive for the purpose of such segregation. The Trustees shall
follow such directions of the Administrator which shall constitute a conclusive
determination of the amount which should be segregated for the benefit of the Eligible
Employees of such Participating Employer (and their Beneficiaries).
	 
	(c)	 	The Trust Fund shall continue as to any Participating Employer, despite receipt by the
Trustees of notice of termination of the Plan as to such Participating Employer, for such time
as may be necessary to effect such termination. Upon receipt by the Trustees from the
Administrator of notice to terminate the Trust Fund as to such Participating Employer, the
Trustees shall, with reasonable promptness after receipt of such notice, arrange for the
orderly distribution, in accordance with written instructions of the Administrator which shall
be given in conformity with the provisions of the Plan and ERISA, of the assets segregated
with respect to such Participating Employer pursuant to this Article 16.

ARTICLE 17

TOP-HEAVY PLAN PROVISIONS

17.01 Applicability.

If the Plan is or becomes a Top-Heavy Plan in any Plan Year, the provisions of this
Article 17 shall supersede any conflicting provisions of the Plan.

17.02 Definitions.

The following definitions shall apply for purposes of this Article 17:

	(a)	 	“Determination Date” means (i) the last day of the preceding Plan Year, or (ii) in the case
of the first Plan Year, the last day of such Plan Year.

	(b)	 	“Key Employee” means any Employee or former Employee who is a Key Employee within the meaning
of Section 416(i)(l) of the Code and the regulations thereunder.

	(c)	 	“Permissive Aggregation Group” means the Required Aggregation Group of plans plus any other
plan or plans of the Company or any Affiliated Company which, when considered as a group with
the Required Aggregation Group, would continue to satisfy the requirements of Sections
401(a)(4) and 410 of the Code.

	(d)	 	“Required Aggregation Group” means (i) each qualified plan of the Company or any Affiliated
Company in which at least one Key Employee participates or participated at any time during the
determination period (regardless of whether the plan has terminated), and (ii) any other
qualified plan of the Company or any Affiliated Company which enables a plan described in
clause (i) to meet the requirements of Section 401(a)(4) or 410 of the Code.

	(e)	 	“Super Top-Heavy Plan” means a Top-Heavy Plan with respect to which the Top-Heavy Ratio
exceeds 90 percent (90%).

	(f)	 	“Top-Heavy Plan” means, with respect to any Plan Year, the Plan if any of the following
conditions exist:

39

 

	 	(i)	 	The Top-Heavy Ratio for the Plan exceeds 60 percent (60%) and the Plan
is not part of any Required Aggregation Group or Permissive Aggregation Group of
plans;
	 
	 	(ii)	 	The Plan is a part of a Required Aggregation Group of plans but not part
of a Permissive Aggregation Group and the Top-Heavy Ratio for the group of plans
exceeds 60 percent (60%); or
	 
	 	(iii)	 	The Plan is a part of a Required Aggregation Group and part of a Permissive
Aggregation Group of plans and the Top-Heavy Ratio for the Permissive Aggregation
Group exceeds 60 percent (60%).

	(g)	 	“Top-Heavy Ratio” means as follows:

	 	(i)	 	If the Company or any Affiliated Company maintains one or more defined
contribution plans (including any Simplified Employee Pension Plan) and the Company or
any Affiliated Company has not maintained any defined benefit plan which during the
five (5) year period ending on the Determination Date(s) has or has had accrued
benefits, the Top-Heavy Ratio for the Plan alone or for the Required or Permissive
Aggregation Group as appropriate is a fraction, the numerator of which is the sum of
the account balances of all Key Employees as of the Determination Date(s) (including
any part of any account balance distributed in the five (5) year period ending on the
Determination Date(s), and the denominator of which is the sum of all account balances
(including any part of any account
distributed in the five (5) year period ending on the Determination Date(s),
both computed in accordance with Section 416 of the Code and the regulations
thereunder. Both the numerator and denominator of the Top-Heavy Ratio are increased
to reflect any contribution not actually made as of the Determination Date, but
which is required to be taken into account on that date under Section 416 of the
Code and the regulations thereunder.
	 
	 	(ii)	 	If the Company or any Affiliated Company maintains one or more defined
contribution plans (including any Simplified Employee Pension Plan) and the Company or
any Affiliated Company maintains or has maintained one or more defined benefit plans
which during the five (5) year period ending on the Determination Date(s) has or has
had any accrued benefits, the Top-Heavy Ratio for any Required or Permissive
Aggregation Group as appropriate is a fraction, the numerator of which is the sum of
account balances under the aggregated defined contribution plan or plans for all Key
Employees, determined in accordance with clause (i) above, and the present value of
accrued benefit under the aggregated defined benefit plan or plans for all Key
Employees as of the Determination Date(s), and the denominator of which is the sum of
the account balances under the aggregated defined contribution plan or plans for all
participants, determined in accordance with clause (i) above, and the present value of
accrued benefits under the defined benefit plan or plans for all participants as of
the Determination Date(s), all determined in accordance with Section 416 of the Code
and the regulations thereunder. The accrued benefits under a defined benefit plan in
both the numerator and denominator of the Top-Heavy Ratio are increased for any
distribution of any accrued benefit made in the five-year period ending on the
Determination Date.
	 
	 	(iii)	 	For purposes of clauses (i) and (ii) above, the value of account
balances and the present, value of accrued benefits will be determined as of the most
recent Valuation Date that falls within or ends with the twelve (12) month period
ending on the Determination Date,

40

 

	 	 	 	except as provided in Section 416 of the Code and the regulations thereunder
for the first and second plan years of a defined benefit plan. The account balances
and accrued benefits of a Participant (A) who is not a Key Employee but who was a
Key Employee in a prior year, or (B) who has not been credited with at least one
Hour of Service with the Company or any Affiliated Company maintaining the Plan at
any time during the five (5) year period ending on the Determination Date will be
disregarded. The calculation of the Top-Heavy Ratio, and the extent to which
distributions, rollovers, and transfers are taken into account will be made in
accordance with Section 416 of the Code and the regulations thereunder. Deductible
employee contributions will not be taken into account for purposes of computing the
top-heavy ratio. When aggregating plans the value of account balances and accrued
benefits will be calculated with reference to the Determination Dates that fall
within the same calendar year.

The accrued benefits of a participant other than a Key Employee shall be determined under
(A) the method, if any, that uniformly applies for accrual purposes under all defined
benefit plans maintained by the Company or any Affiliated Company, or (b) if there is no
such method, as if such benefits accrued not more rapidly than the slowest accrual rate
permitted under the fractional rule of Section 411(b)(l)(C) of the Code.

17.03 Minimum Contribution.

	(a)	 	If a Participant is a non-Key Employee on the last day of a Plan Year in which the Plan
is a Top-Heavy Plan Plan, and is not a participant in any other plan maintained by an Company
or any Affiliated Company that provides the Participant with such a minimum contribution or
with a comparable minimum accrual, the total of the Company or any Affiliated Company
contribution allocated to such Participant’s Account for such Plan Year in which the Plan is a
Top-Heavy Plan shall not be less than three percent (3%) of the Participant’s Compensation for
the Plan Year in which the Plan is a Top-Heavy Plan. If the Company
or any Affiliated Company
has no defined benefit plan which designates the Plan to satisfy Section 401(a)(4) or 410 of
the Code and the highest percentage obtained by dividing the sum of the Company or any
Affiliated Company contribution made for the benefit of each Key Employee by the Key
Employee’s Compensation for such Plan Year is less than three percent (3%), such highest
percentage shall be substituted therefor in the preceding sentence.
	 
	(b)	 	In the event a Participant who is a non-Key Employee is covered under both a defined
contribution plan and a defined benefit plan maintained by the Company or any Affiliated
Company, notwithstanding anything herein to the contrary, the minimum contribution or benefit
required by this Section 17.03 and by Section 416 of the Code shall be deemed satisfied if any
one of the following rules is satisfied:

	 	(i)	 	each such Participant receives the defined benefit minimum as
specified in Section 416(c)(l) of the Code;
	 
	 	(ii)	 	the defined benefit minimum (as defined in clause (i), above) is provided each
such
Participant by the defined benefit plan and is offset by the benefits provided
under the defined contribution plan;
	 
	 	(iii)	 	the defined contribution plan provides aggregate benefits at least comparable to
those provided by the defined benefit plan; or

41

 

	 	(iv)	 	if contributions and forfeitures under the defined contribution
plan equal five percent (5%) of the Compensation for each Top-Heavy Plan.

17.04 Compensation Limitation.

For any Plan Year in which the Plan is a Top-Heavy Plan, the compensation limitation described
in Section 416(d) of the Code shall apply.

17.05 Aggregate Limit on Contributions and Benefits for Key Employees.

For Plan Years beginning before January 1, 2000, if either of the following occurs, then 1.0
shall be substituted for 1.25 in the denominators of the defined benefit plan and defined
contribution plan fractions used in computing the aggregate limitations set forth in Section
415 of the Code:

	(a)	 	A Key Employee participates in both a defined benefit plan and a defined contribution plan of
the Company or any Affiliated Company and the plans are Super Top-Heavy Plans.

	(b)	 	A Key Employee participates in both a defined benefit plan and a defined contribution plan of
the Company or any Affiliated Company and the plans are Top-Heavy Plans and an Extra Minimum
Benefit or Extra Minimum Contribution is not provided for non-Key Employees.

For purposes of this section, Extra Minimum Benefit or Contribution shall mean one percent (1%)
more than the standard minimum benefit or contribution required for non-Key Employees under
Top-Heavy Plans as prescribed by Section 416(c) of the Code.

ARTICLE 18

GENERAL PROVISIONS

18.01 Trust Fund Sole Source of Payments for Plan.

The Trust Fund shall be the sole source for the payment of all Participants’ Accounts, and
the Plan’s liability to make payment to any Participant or the Participant’s Beneficiary shall be
limited to the extent that the balance in such Participant’s Account is sufficient to make such
payment. In no event shall assets of the Company, any Affiliated Company, or any non Participating
Employer be applied for the payment of Plan benefits.

18.02 Exclusive Benefit.

The Plan is established for the exclusive benefit of the Participants and their Beneficiaries, and
the Plan shall be administered in a manner consistent with the provisions of Section 401 (a) of the
Code and ER1SA.

18.03 Non-Alienation.

No benefit payable at any time under the Plan and no interest or expectancy herein shall be
anticipated, assigned, or alienated by any Participant or beneficiary, or subject to attachment,
garnishment, levy, execution, or other Segal or equitable process,
except for (1) a Federal tax
levy made pursuant to Section

42

 

6331 of the Code, (2) any benefit payable pursuant to a qualified domestic relations order
(as defined in Section 414(p) of the Code), and (3) an offset of a Participant’s benefits as
described in Section 206(d)(4) of ERISA. Any attempt to alienate or assign a benefit hereunder,
whether currently or hereafter payable, shall be void.

	(a)	 	Employee Transfers.

The transfer of an Employee between the Company and an Affiliated Company shall not be considered
to be a termination of employment for purposes of the Plan.

18.04 Qualified Domestic Relations Order.

	(a)	 	All rights and benefits, including elections, provided to a Participant in the Plan
shall be subject to the rights afforded to any alternate payee (as defined in Section
414(p)(8) of the Code) under a qualified domestic relations order (as defined in Section
414(p) of the Code).

	(b)	 	Notwithstanding anything in the Plan to the contrary, a distribution to an alternate payee
shall be permitted if such distribution is authorized by the qualified domestic relations
order without regard as to whether the affected Participant is currently entitled to receive a
distribution.

18.05 Incapacity.

If the Administrator deems any Participant or Beneficiary who is entitled to receive
payments hereunder incapable of receiving the same by reason of age, illness, infirmity, or
incapacity of any kind, the Administrator may direct the Trustee to apply such payments directly
for the comfort, support, and maintenance of such Participant or Beneficiary, or to pay the same to
any responsible person caring for the Participant or Beneficiary who is determined by the
Administrator to be qualified to receive and disburse such payments for the Participant’s or
Beneficiary’s benefit; and the receipt of Plan benefit payment by such person shall be a complete
acquittance for the payment of the benefit. Payments pursuant to this
Section 19.06 shall be in
complete discharge to the extent thereof of any and all liability of the Participating Employers,
the Administrator, the Trustee and the Trust Fund.

18.06 Employment Rights.

Each Participating Employer’s right to discipline or discharge its employees shall not be
affected by reason of any of the provisions of the Plan. Neither the action of the Company in
establishing the Plan, nor of any Participating Employer in adopting the Plan, nor any provisions
of the Plan, nor any action taken by the Company, any Participating Employer or the Administrator
shall be construed as giving to any Employee the right to be retained in the employ of the Company
or any Participating Employer, or any right to payment except to the extent of the benefits
provided in the Plan to be paid from the Trust Fund.

18.07 Return of Contributions.

	(a)	 	Except as specifically provided in the Plan, under no circumstances shall any funds
contributed to the Trust Fund or any assets of the Trust Fund ever revert to, or be used by,
the Company or any Affiliated Company.

	(b)	 	Any contributions made by any Participating Employer may be returned to the
Participating Employer if:

43

 

	 	(i)	 	the contribution is made by reason of a mistake of fact; or
	 
	 	(ii)	 	the contribution is conditioned on its deductibility for federal income
tax purposes (each contribution shall be deemed to be so conditioned unless otherwise
stated in writing by the Participating Employer) and such deduction is disallowed;

provided such contribution is returned within one (1) year of the discovery of the mistake
of fact, the disallowance of the deduction for federal income tax purposes or the receipt of
written notice from the Internal Revenue Service (in response to the request for its
favorable determination) that the Plan fails to qualify under Section 401(a) of the Code,
as the case may be. The amount of contribution that may be returned shall be reduced to
reflect its proportionate share of any net investment loss in the
Trust Fund. In the event
clause (ii) applies, the returned contribution may include any net investment earnings or
gain in the Trust Fund.

18.08 Distribution of Salary Deferral Contributions in Event of Merger or Sale.

Notwithstanding anything in the Plan to the contrary, Salary Deferral Contributions, and
income attributable thereto, may be distributed to Participants or their beneficiaries as soon as
administratively practicable after any of the following events:

	(a)	 	The termination of the Plan, provided that neither the Company nor any Affiliated Company
maintains another defined contribution plan (other than an employee stock ownership plan
within the meaning of Section 4975(e)(7) of the Code) at such time or establishes a successor
defined contribution plan (other than an employee stock ownership plan within the meaning of
Section 4975(e)(7) of the Code) during the period ending 12 months after the distribution of
all assets of the Plan;

	(b)	 	The sale or other disposition, to an entity that is not an Affiliated Company, of
substantially all of the assets used by the Company or an Affiliated Company in the trade or
business in which the Participant is employed, but only with respect to Participants who
continue employment with the acquiring entity; or

	(c)	 	The sale or other disposition, to an entity that is not an Affiliated Company, of the
Company’s or an incorporated Affiliated Company’s interest in a subsidiary, but only with
respect to Participants who continue employment with such subsidiary.

18.09 Merger, Consolidation or Transfer.

The Plan shall not be merged or consolidated with, nor shall any Plan assets or liabilities
be transferred to, any other qualified plan, unless each Participant (if the other plan has then
terminated) would receive a benefit that is equal to or greater than the benefit he or she would
have been entitled to receive immediately before the merger, consolidation or transfer (if the Plan
had then terminated).

18.10 Action by the Company.

Whenever the Company under the terms of the Plan is permitted or required to do or perform
any act, matter or thing, it shall be done by a person duly authorized by the Company’s legally
constituted authority.

44

 

18.11 Applicable Law.

Except as otherwise expressly required by ERISA, the Plan shall be construed and
governed in accordance with the laws of the State of California.

18.12 Rules of Construction.

Section headings are used for convenience of reference only and shall not affect the
meaning of any provisions of the Plan.

18.13 Severability of Provisions.

If any provision of the Plan is determined to be void by any court of competent
jurisdiction, the Plan shall continue to operate and, for purposes of the jurisdiction of that
court only, shall be deemed not to include the provisions determined to be void.

45

 

18.14 Withholding.

The Administrator and the Trustee shall have the right to withhold any and all state, local and
Federal taxes which may be withheld in accordance with applicable law.

IN WITNESS WHEREOF, Countrywide Credit Industries, Inc. by its proper officers duly authorized by
its Board of Directors, has caused this amended and restated Plan to be executed on this 14 of
December, 2001.

	 	 	 	 	 
	 	 	COUNTRYWIDE CREDIT INDUSTRIES, INC.
	 
	 	 	 	 
	 

	 	/s/ Anne McCallion
 

Anne McCallion
	 	 
	 	 	Managing Director, Chief Administrative Officer

	 	 	 	 	 
	Attest:

	 	/s/ Susan Bow
 

Susan Bow
	 	 
	 

	 	Assistant Secretary	 	 

46

 

APPENDIX A

DEFINITION OF CHANGE IN CONTROL

Definition of Change in Control.

A “Change in Control” shall mean the occurrence of any one of the following events:

	(a)	 	An acquisition (other than directly from the Company) of any common stock or other
“Voting Securities” (as hereinafter defined) of the Company by any “Person” (as the term
person is used for purposes of Section 13(d) or 14(d) of the Securities Exchange Act of 1934,
as amended (the “Exchange Act”), immediately after which such Person has “Beneficial
Ownership” (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of
twenty-five percent (25%) or more of the then outstanding shares of the Company’s common stock
or the combined voting power of the Company’s then outstanding Voting Securities; provided,
however, that, in determining whether a Change in Control has occurred, Voting Securities
which are acquired in a “Non-Control Acquisition” (as hereinafter defined) shall not
constitute an acquisition which would cause a Change in Control. For purposes of the Plan, (i)
“Voting Securities” shall mean the Company’s outstanding voting securities entitled to vote
generally in the election of directors and (ii) a “Non-Control Acquisition” shall mean an
acquisition by (A) an employee benefit plan (or a trust forming a part thereof) maintained by
(I) the Company or (II) any corporation or other Person of which a majority of its voting
power or its voting equity securities or equity interest is owned, directly or indirectly, by
the Company (for purposes of this definition, a “Subsidiary”), (B) the Company or any of its
Subsidiaries, or (C) any Person in connection with a “Non-Control Transaction” (as hereinafter
defined);

	(a)	 	The individuals who, as of May 6, 1996, are members of the Board of Directors (the “Incumbent
Board”), cease for any reason to constitute at least two-thirds of the members of the Board;
provided, however, that if the election, or nomination for election by the Company’s
common stockholders, of any new director was approved by a vote of at least two-thirds of the
Incumbent Board, such new director shall, for purposes of the Plan, be considered as a member
of the Incumbent Board; provided further, however, that no individual shall be
considered a member of the Incumbent Board if such individual initially assumed office as a
result of either an actual or threatened “Election Contest”
(as described in Rule 14a-11
promulgated under the Exchange Act) or the actual or threatened solicitation of proxies or
consents by or on behalf of a Person other than the Board (a “Proxy Contest”) including by
reason of any agreement intended to avoid or settle any Election Contest or Proxy Contest; or

	(b)	 	The consummation of:

	 	(i)	 	A merger, consolidation or reorganization involving the Company,
unless such merger, consolidation or reorganization is a
“Non-Control Transaction.” A
“Non-Control Transaction” shall mean a merger, consolidation or reorganization of the
Company where:

	 	(A)	 	the Company’s stockholders, immediately before such
merger, consolidation or reorganization, own directly or indirectly immediately
following such merger, consolidation or reorganization, at least seventy
percent (70%) of the combined voting power of the outstanding Voting Securities
of the corporation resulting from such merger, consolidation or reorganization
(the “Surviving Corporation”)

A-1

 

 

	 	 	 	in substantially the same proportion as their ownership of the Voting
Securities immediately before such merger, consolidation or reorganization;
	 
	 	(B)	 	the individuals who were members of the Incumbent Board
immediately prior to the execution of the agreement providing for such merger,
consolidation or reorganization constitute at least two-thirds of the members of
the board of directors of the Surviving Corporation, or in the event that,
immediately following the consummation of such transaction, a corporation
beneficially owns, directly or indirectly, a majority of the Voting Securities
of the Surviving Corporation, the board of directors of such corporation; and
	 
	 	(C)	 	no Person other than (I) the Company, (II) any Subsidiary, (III)
any employee benefit plan (or any trust forming a part thereof) maintained by
the Company, the Surviving Corporation, or any Subsidiary, or (IV) any Person
who, immediately prior to such merger, consolidation or reorganization had
Beneficial Ownership of twenty-five percent (25%) or more of the then
outstanding Voting Securities or common stock of the Company, has Beneficial
Ownership of twenty-five percent (25%) or more of the combined voting power of
the Surviving Corporation’s then outstanding Voting Securities or its common
stock;

	 	(ii)	 	A complete liquidation or dissolution of the Company; or
	 
	 	(iii)	 	The sale or other disposition of all or substantially all of the assets
of the Company to any Person (other than a transfer to a Subsidiary).

Notwithstanding the foregoing, a Change in Control shall not be deemed to occur solely because any
Person, (the “Subject Person”) acquired Beneficial Ownership of more than the permitted amount of
the then outstanding common stock or Voting Securities as a result of the acquisition of common
stock or Voting Securities by the Company which, by reducing the number of shares of common stock
or Voting Securities then outstanding, increases the proportional number of shares Beneficially
Owned by the Subject Person; provided, however, that if a Change in Control would occur (but for
the operation of this sentence) as a result of the acquisition of common stock or Voting Securities
by the Company, and after such share acquisition by the Company, the Subject Person becomes the
Beneficial Owner of any additional common stock or Voting Securities which increases the percentage
of the then outstanding common stock or Voting Securities Beneficially Owned by the Subject Person,
then a Change in Control shall occur.

A-2

 

 

APPENDIX B

RULES APPLYING TO PARTICIPANT LOANS

The Managing Director, Human Resources of the Countrywide Credit Industries, Inc. 401(k) Savings
and Investment Plan (the “Plan”) has adopted the rules and procedures set forth below with respect
to plan loans under Article 10 of the Plan.

MAY I BORROW MONEY FROM MY PLAN ACCOUNTS?

Yes, if you currently are eligible to participate in the Plan, and if your application for a
loan is approved by the Administrator, you may borrow money from your accounts (other than the
portion of your account attributable to a transfer from the Countrywide Credit Industries, Inc.
Profit Sharing Stock Ownership Plan (“ESOP account”)). Loans will be made on a uniform and
nondiscriminatory basis.

HOW DO I APPLY FOR A LOAN?

You may apply for a loan by completing the loan application form(s) provided by the Administrator.

ARE THERE ANY RESTRICTIONS ON THE AMOUNT I CAN BORROW?

The minimum amount you may borrow is $1,000. The maximum amount you may borrow is determined by the
vested amount of your Plan account balance (excluding your ESOP account) as determined as
of the date on which your loan is approved. The following table shows the Maximum Loan Amount that
is permitted based on your vested Plan account balance (excluding your ESOP account balance):

	 	 	 
	Your Vested	 	 
	Account Balance (excluding your ESOP	 	Maximum Loan
	account balance)	 	Amount
	$ 0-$ 1,999
	 	No loans allowed
	 
	 	 
	$
2,000 - $ 99,000
	 	50% of your vested account balance under the

	 
	 	Plan (excluding your ESOP account balance)
	 
	 	 
	$ 100,000 or more
	 	$ 50,000

If you have had a loan outstanding during the previous 12 months
or a defaulted loan, that loan amount, including unpaid interest on a defaulted
loan, must be taken into account in determining the maximum amount you can borrow.

MAY I SPECIFY THE INVESTMENT FUND FROM WHICH I WANT TO BORROW?

No. The loan amount will be divided on a pro rata basis across the investment funds in your salary
deferral contribution account, rollover contribution account and employer contribution account, to
the extent vested.

B-1

 

 

MAY I HAVE MORE THAN ONE LOAN OUTSTANDING AT A TIME?

Yes. You may have up to two loans outstanding.

WHAT WILL THE INTEREST RATE BE?

The annual interest rate on loans will be two percent (2%) plus the prime lending rate stated in
the Money Rates section of The Wall Street Journal on the last business day of the calendar
month prior to the date your loan application is approved by the Administrator.

WHAT IS THE TERM OF THE LOAN?

In general, loans must be repaid within five (5) years or less. However, if at the time the loan is
made you intend to use the loan to acquire a house, apartment, or condominium which within a
reasonable time will be used as your principal residence, the loan will have a maximum repayment
period of fifteen (15) years. The Administrator may require you to furnish information verifying
your use of the loan to purchase your principal residence. Loan repayments will be suspended as
permitted under section 414(u)(4)of the Code.

DO I HAVE TO GIVE ANY SECURITY FOR THE LOAN?

Yes. The loan is secured by your vested Plan account balances other than your ESOP account. In
addition, you will be personally liable for the amount of the loan.

HOW DO I REPAY THE LOAN?

While you are an employee, payments of principal and interest are made through payroll deductions.

If you take an approved leave of absence, you will be able to continue to repay the loan through
monthly payments of principal and interest.

The payments will begin with the first month following the month in which you receive the loan. The
repayment amounts will be equal, except for the final payment.

WHAT HAPPENS TO LOAN REPAYMENTS UNDER THE PLAN?

Repayments of principal and interest on your loan will be allocated to your Plan account
other than your ESOP account. Each repayment will be invested according to your current investment
selection when the repayment is made.

CAN I PREPAY THE LOAN?

Yes. There is no penalty if you want to prepay all of the unpaid balance on your loan. However,
your minimum prepayment must be at least one multiple of your current loan payment amount or, if
smaller, the outstanding balance of the loan.

WHAT HAPPENS IF I DEFAULT ON LOAN PAYMENTS?

B-2

 

 

You will be considered to be in
default if you miss any scheduled loan repayment.

Once the loan is declared in default
it will become immediately due and payable as of the last day
of the month in which it is declared in default. If you do not cure the default within 60 days, in
addition to any other remedies permitted by law, any outstanding loan balance (including accrued,
but unpaid, interest) may be charged against your salary deferral contribution account, rollover
contribution account, if any, and your employer contribution account to the extent vested under the
Plan.

If and to the extent the outstanding loan balance is charged against your Plan account, as
described above, the amount of such charge shall be deemed to be a taxable distribution to you from
your Plan account. The Administrator may elect to charge the unpaid loan balance against your Plan
account, as described above, whether or not you would otherwise be entitled to a distribution from
the Plan.

If the unpaid loan amount is treated as a distribution, the taxable portion of this distribution
will be reported to the IRS. You will be responsible for any taxes due as a result of treating the
unpaid amount as a distribution.

If the unpaid balance of the loan cannot be satisfied from your Plan accounts described above or
wages, the Administrator will have the same legal rights and remedies as a creditor to collect the
remaining amount.

WHAT HAPPENS IF I TERMINATE EMPLOYMENT?

If your Plan account balance is distributed to you at the time of your termination, the amount
to be distributed to you from the Plan will be reduced by the unpaid loan balance (including
accrued interest) UNLESS you elect to repay the loan in full.

If you decide to delay distribution, you may continue to repay the loan through monthly payments of
principal and interest.

B-3

 

 

APPENDIX
C 

CERTAIN MERGER AND SPINOFF TRANSACTIONS

     The following table sets forth certain corporations or other trades or businesses and the
qualified plan and trustee who shall receive the assets specified in resolutions of the Board of
Directors.

	 	 	 	 	 
	Name of Plan	 	Trustee	 	Assets
	INMC
Mortgage Holdings, Inc. 401(k)Plan
	 	Scudder Trust Company	 	Employer Contribution Account*; ESOP
	 
	 	 	 	Account*; Rollover Contribution Account;
	
	 	 	 	Salary Deferral Contribution Account; Plan Loans

 

			
	*	 	Shares of Countrywide Credit Industries, Inc. common stock shall be transferred in kind.

C-1

 

 

APPENDIX D

SPECIAL
SERVICE RECOGNITION PROVISIONS

AND LOAN ROLLOVERS

     The following table sets forth certain corporations or other trades or businesses acquired by
the Participating Employer and the degree to which pre-acquisition service shall be recognized
hereunder pursuant to Section 2.16 hereof and as specified in a resolution of the Board of
Directors.

	 	 	 	 	 
	Acquired Company	 	Recognition of Service	 	Effective Date
	Leshner Financial, Inc.

	 	Pre-acquisition service shall be
recognized for purposes of eligibility to
participate and vesting.
	 	February 28, 1997
	 
	 	 	 	 
	Balboa Life Insurance
Company

	 	Pre-acquisition service with Balboa,
Textron, AVCO and Associates shall be
recognized for purposes of eligibility to
participate, vesting and eligibility for
matching contributions.
	 	November 30, 1999
	 
	 	 	 	 
	 

	 	Participant loans from the
Associates’ Savings and Profit Plan are
Eligible for rollover.	 	 

D-1Exhibit 4.1.1

 

EXHIBIT 4.1.1

FIRST AMENDMENT

COUNTRYWIDE CREDIT INDUSTRIES, INC.

401(k) SAVINGS AND INVESTMENT PLAN

(as amended and restated effective January 1, 1997)

The Board of Directors of Countrywide Credit Industries, Inc. (the “Company”) amended the
Countrywide Credit Industries, Inc. 401(k) Savings and Investment Plan (the “Plan”) to provide
benefits available under the Economic Growth and Tax Relief Reconciliation Act of 2001 (“EGTRRA”)
effective January 1, 2002. The Board of Directors of the Company authorized and empowered officers
of the Company to execute any documents and to take any other action in furtherance of such
amendment. This “Amendment” (i) increases the compensation limit; (ii) increases the contribution
percentage of Participants; (iii) provides for “catch up” contributions for Participants age 50 and
older; (iv) changes the suspension period for Participants making hardship withdrawals; (v)
expands the type of employee benefit plan from which the Plan can accept rollover contributions;
(vi) eases the distribution rules with respect to corporate acquisitions and divestitures; (vii)
revises the mandatory cash out rule to exclude amounts rolled into the Plan; and (viii) modifies
the Top-Heavy rules.

This Amendment is adopted to reflect certain provisions of EGTRRA. This Amendment is intended as
good faith compliance with the requirements of EGTRRA and is to be construed in accordance with
EGTRRA and guidance issued thereunder. Except as otherwise provided, this Amendment shall be
effective January 1, 2002.

This Amendment shall supersede the provisions of the Plan to the extent those provisions are
inconsistent with the provisions of this Amendment.

	1.	 	Section 1.13, “Compensation,” is hereby amended by deleting the last paragraph of this
Section and inserting in its place a new section as follows:
	 
	 	 	“The annual compensation of each Participant taken into account in determining allocations
for any Plan Year beginning after December 31, 2001, shall not exceed $200,000, as adjusted for
cost-of-living increases in accordance with Section 401(a)(17)(B) of the Code. Annual
compensation means compensation during the Plan Year or such other consecutive 12-month period
over which compensation is otherwise determined under the Plan (the “determination period”).
The cost-of-living adjustment in effect for a calendar year applies to annual compensation for
the determination period that begins with or within such calendar year.”

	2.	 	Section 4.01, “Salary Deferral Contributions,” is hereby amended by deleting paragraph (a)
and inserting in its place a new paragraph (a) as follows:

“(a) Effective January 1, 2002, a Participant may elect to have Salary Deferral Contributions
made on his or her behalf in an amount equal to a full percentage of his

 

 

or her Compensation from one percent (1%) to forty percent (40%) or such other percentage
as may be established by the Administrator. Such contributions shall be made by the
Participating Employer as a reduction in the Compensation that would otherwise be payable to
the Participant.”

	3.	 	Section 4.01, “Salary Deferral Contributions,” is hereby amended by adding new paragraph (b)
and changing paragraphs (b) through (e) to paragraphs (c) through (f) as follows:

“(b) A Participant who attains age 50 or older prior to 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 requirements of Section
401(k)(3), 401(k)(11), 401(k)(12), 410(b), or 416 of the code, as applicable, by reason of
the making of such catch-up contribution.”

	4.	 	Section 4.02, “Rollover Contributions”, is modified by deleting paragraphs (a) and (b) in
their entirety and inserting in their place new paragraphs (a) and (b) as follows:

“(a) Effective January 1, 2002, subject to the approval of the Administrator, the Plan
will accept a direct eligible rollover distribution or a Participant contribution of an
eligible rollover distribution from (i) a qualified plan described in Section 401(a) or
403(a) of the Code, excluding after-tax employee contributions; (ii) an annuity contract
described in Section 403(b) of the Code, excluding after-tax employee contributions; (iii)
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; or (iv) the portion of a distribution from an individual retirement
account or annuity described in Section 408(a) or 408(b) of the Code that is eligible to be
rolled over and would otherwise be includible in gross income.

(b) Rollover contributions must be made no later than sixty (60) days following the date
on which the Participant receives the distribution from such other plans as described in
subparagraph (a) of this Section 4.02.”

	5.	 	Section 5.01, “Employer Matching Contributions”, is hereby amended by deleting paragraph (a)
in its entirety and replacing it with new paragraph (a) as follows:

“(a) The Company, it its sole discretion, from time to time shall determine the amount, if
any, of Employer Matching Contributions to be made for any Plan Year on behalf of Participants
who are Eligible Employees of the Company and each Participating Employer; provided,
however, that no Employer Matching Contributions shall be made in respect of any (i)
Salary Deferral Contributions made
by a Participant prior to the Entry Date described in Section 3.01(b) and (ii) catch-up
contribution described in Section 4.01(b).”

 

 

	6.	 	Section 6.02, “Annual Limitation on Salary Deferral Contributions,” is hereby revised by
adding new paragraph 6.02(c) as follows:

“(c) No Participant shall be permitted to have elective deferrals made under the Plan or
any other qualified plan maintained by a Participating Employer or Affiliated Company
during any Plan Year in excess of the dollar limitation contained in Section 402(g) of the
Code in effect for such Plan Year, except to the extent permitted under Section 4.01(b) of
the Plan and Section 414(v) of the Code, if applicable.”

	7.	 	Section 6.05, “Combined Limitations on Salary Deferral Contributions and Employer Matching
Contributions,” is hereby amended by adding new paragraph (c) as follows:

“(c) The multiple use test described in Treasury Regulation Section 1.401(m)-2 and this Section
6.05 shall not apply for Plan Years beginning after December 31, 2001.”

	8.	 	Section 6.08, “Limitations on Contributions Applicable to All Participants,” is hereby
amended by deleting paragraph (a) and inserting in its place new paragraph (a) as follows:

“(a) In no event shall the Annual Addition to a Participant’s Account for any Limitation Year
beginning on or after January 1, 2002 exceed the lesser of:

	 	(i)	 	$40,000, as adjusted for increases in the cost-of-living under Section 415(d)
of the Code, or
	 
	 	(ii)	 	100 percent of the Participant’s compensation, within the meaning of Section
415(c)(3) of the Code, for the Limitation Year.

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

	9.	 	Section 11.01, “Financial Hardship,” is hereby amended by deleting subparagraph (iii) in its
entirety and substituting new subparagraph (iii) in its place as follows:

“(iii) the Participant’s Salary Deferral Contributions under the Plan, and the Participant’s
elective deferrals and voluntary employee contributions under all other plans maintained by the
Company or any Affiliated Company, are suspended for a period of 12 months after receipt of the
hardship distribution; provided, however, that effective January 1, 2002, the
suspension shall be for a period of six months for distributions made on or after January 1,
2002; and”

 

 

	10.	 	Section 13.01, “Termination of Employment Prior to Age 65,” is hereby amended by adding the
following language at the end of the introductory paragraph:
	 
	 	 	“For purposes of this Section 13.01, the value of a Participant’s nonforfeitable account
balance shall be determined without regard to that portion of the account balance that is
attributable to rollover contributions (and earnings allocable thereto) within the meaning of
Sections 402(c), 403(a)(4), 403(b)(8), 408(d)(3)(A)(ii), and 457(e)(16) of the Code. If the
value of the Participant’s nonforfeitable account balance as so determined is $5,000 or less,
the Plan shall distribute the Participant’s entire nonforfeitable account balance as soon as
practicable.”
	 
	11.	 	Article 13, “Distributions After Termination of Employment,” is hereby amended by renumbering
Sections 13.03 through 13.07 to 13.04 through 13.08 and inserting new Section 13.03 as
follows:
	 
	 	 	“Section 13.03 Severance From Employment
	 
	 	 	Effective for distributions made on or after January 1, 2002, Salary Deferral Contributions,
Rollover Contributions, Employer Matching Contributions, Employer Discretionary Contributions
and Qualified Nonelective Contributions, and earning attributable to these contributions shall
be distributed on account of the Participant’s severance from employment. However, such
distribution shall be subject to the other provisions of the Plan regarding distributions,
other than provisions that require a separation from service before such amounts may be
distributed.”

	12.	 	Section 13.06, “Direct Transfer of Eligible Rollover Distribution,” is hereby modified by
designating the existing language as paragraph (a) and adding the following language as new
paragraphs (b) and (c) as follows:

“(b) Notwithstanding the provisions of subparagraph (a) of this Section 13.06, any amount
distributed on account of hardship shall not be an eligible rollover distribution and the
distributee may not elect to have any portion of such a distribution paid directly to an
eligible retirement plan.”

“(c) For purposes of this Section 13.06, a portion of a distribution shall not fail to be
an eligible rollover distribution merely because the portion consists of after-tax employee
contributions which are not includible in gross income. However, such portion may be
transferred only to an individual retirement account or annuity described in Section 408(a)
or (b) of the Code, or to a qualified defined contribution plan described in Section 401(a)
or 403(a) of the Code that agrees to separately account for amounts so transferred,
including separately accounting for the portion of such distribution which is includible in
gross income and the portion of such distribution which is not so includible.”

	13.	 	Article 17, “Top-Heavy Plan Provisions,” is hereby modified as follows:

 

 

	 	(a)	 	Section 17.02(b), “Key Employee,” is hereby deleted in its entirety and new Section
17.02(b) is inserted in its place as follows:
	 
	 	 	 	“(b) “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 Company or any Affiliated Company having annual compensation greater than
$130,000 (as adjusted under Section 416(i)(1) of the Code for Plan Years beginning after
December 31, 2002), a 5-percent owner of a Participating Employer or Affiliated Company, or
a 1-percent owner of a Participating Employer or Affiliated Company having annual
compensation of more than $150,000. For this purpose, annual compensation means
compensation within the meaning of Section 415(c)(3) of the Code. 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.”
	 
	 	(b)	 	Determination of present values and amounts. This paragraph (b) 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)	 	Distributions during year ending on the Determination Date. 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 1-year period ending on the Determination Date. The
preceding sentence shall also apply to distributions under a terminated plan which,
had it not been terminated, would have been aggregated with the Plan under Section
416(g)(2)(A)(i) of the Code. In the case of a distribution made for a reason other
than separation from service, death, or disability, this provision shall be applied by
substituting “5-year period” for “1-year period.”
	 
	 	(ii)	 	Employees not performing services during the year ending on the Determination
Date. The accrued benefits and accounts of any individual who has not performed
services any Participating Employer during the 1-year period ending on the
Determination Date shall not be taken into account.

	 	(c)	 	Minimum Benefits. 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. Employer Matching Contributions

 

 

	 	 	 	that are used to satisfy the minimum contribution requirements shall be treated as Employer
Matching Contributions for purposes of the actual contribution percentage test and other
requirements of Section 401(m) of the Code.

IN WITNESS WHEREOF, Countrywide Credit Industries, Inc. by its proper officers duly authorized
by its Board of Directors has caused this First Amendment to be executed on this 3 of January,
2002.

	 	 	 	 	 
	 	 	COUNTRYWIDE CREDIT INDUSTRIES, INC.
	 
	 	 	 	 
	 

	 	/s/ ANNE MCCALLION
 

Anne McCallion
	 	 
	 	 	Managing Director, Chief Administrative Officer

	 	 	 	 	 
	Attest:

	 	/s/ SUSAN BOW
 

Susan Bow
	 	 
	 

	 	Assistant Secretary

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