Document:

exv4w19

 

Exhibit 4.19

ALION SCIENCE AND TECHNOLOGY CORPORATION EMPLOYEE

OWNERSHIP, SAVINGS AND INVESTMENT PLAN

Amended and Restated as of October 1, 2006

 

 

ALION SCIENCE AND TECHNOLOGY CORPORATION

EMPLOYEE OWNERSHIP, SAVINGS AND INVESTMENT PLAN

Table of Contents

	 	 	 	 	 	 	 
	 	 	 	 	Page
	ARTICLE I Adoption of the Plan	 	 	1	 
	1.1
	 	Establishment	 	 	1	 
	1.2
	 	Trust	 	 	2	 
	1.3
	 	Restatement Effective Date	 	 	2	 
	1.4
	 	Adoption of Plan	 	 	2	 
	1.5
	 	Withdrawal of Adopting Employer	 	 	2	 
	1.6
	 	Supplements	 	 	3	 
	 
	 	 	 	 	 	 
	ARTICLE II Definitions	 	 	4	 
	2.1
	 	Account	 	 	4	 
	2.2
	 	Acquisition Loan	 	 	5	 
	2.3
	 	Adopting Employers	 	 	5	 
	2.4
	 	Affiliate	 	 	5	 
	2.5
	 	Allocation Date	 	 	6	 
	2.6
	 	Authorized Leave of Absence	 	 	6	 
	2.7
	 	Beneficiary	 	 	6	 
	2.8
	 	Board of Directors	 	 	6	 
	2.9
	 	Closing Date	 	 	6	 
	2.10
	 	Code	 	 	6	 
	2.11
	 	Common Stock	 	 	7	 
	2.12
	 	Company	 	 	7	 
	2.13
	 	Compensation	 	 	7	 
	2.14
	 	Current Market Value	 	 	9	 
	2.15
	 	Disability	 	 	9	 
	2.16
	 	RESERVED	 	 	9	 
	2.17
	 	Elective Deferral	 	 	9	 
	2.18
	 	Eligible Employee	 	 	10	 
	2.19
	 	Employee	 	 	10	 
	2.20
	 	Employer	 	 	11	 
	2.21
	 	Employment Commencement Date	 	 	11	 
	2.22
	 	ERISA	 	 	11	 
	2.23
	 	ESOP Accounts	 	 	11	 
	2.24
	 	ESOP Committee	 	 	11	 
	2.25
	 	ESOP Component	 	 	12	 
	2.26
	 	ESOP Elective Deferral Account	 	 	12	 
	2.27
	 	ESOP Matching Account	 	 	12	 
	2.28
	 	ESOP Profit Sharing Account	 	 	12	 
	2.29
	 	ESOP Rollover Account	 	 	12	 

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Table of Contents

	 	 	 	 	 	 	 
	 	 	 	 	Page
	2.30
	 	Fiduciary	 	 	12	 
	2.31
	 	Financed Shares	 	 	13	 
	2.32
	 	Fiscal Year	 	 	13	 
	2.33
	 	Former IIT Research Institute Employee	 	 	13	 
	2.34
	 	Highly Compensated Employee	 	 	13	 
	2.35
	 	Hour of Service	 	 	14	 
	2.36
	 	IIT Research Institute	 	 	14	 
	2.37
	 	Leased Employee	 	 	15	 
	2.38
	 	Matching Contributions	 	 	15	 
	2.39
	 	Non ESOP Accounts	 	 	15	 
	2.40
	 	Non ESOP Component	 	 	15	 
	2.41
	 	Non ESOP Elective Deferral Account	 	 	15	 
	2.42
	 	Non ESOP Matching Account	 	 	16	 
	2.43
	 	Non ESOP Profit Sharing Account	 	 	16	 
	2.44
	 	Non ESOP Rollover Account	 	 	16	 
	2.45
	 	Normal Retirement Age	 	 	16	 
	2.46
	 	Participant	 	 	16	 
	2.47
	 	Pay Period	 	 	16	 
	2.48
	 	Period of Participation	 	 	17	 
	2.49
	 	Period of Service	 	 	17	 
	2.50
	 	Period of Severance	 	 	18	 
	2.51
	 	Plan	 	 	18	 
	2.52
	 	Plan Year	 	 	18	 
	2.53
	 	Profit Sharing Contributions	 	 	18	 
	2.54
	 	Qualified Military Service	 	 	19	 
	2.55
	 	Qualified Nonelective Contributions	 	 	19	 
	2.56
	 	Qualified Nonelective Contribution Account	 	 	19	 
	2.57
	 	Recordkeeper	 	 	19	 
	2.58
	 	Reemployment Commencement Date	 	 	20	 
	2.59
	 	Retirement	 	 	20	 
	2.60
	 	Rollover Contributions	 	 	20	 
	2.61
	 	Severance from Service	 	 	20	 
	2.62
	 	Severance from Service Date	 	 	20	 
	2.63
	 	Surviving Spouse	 	 	21	 
	2.64
	 	Trade Day	 	 	21	 
	2.65
	 	Trust	 	 	22	 
	2.66
	 	Trustee	 	 	22	 
	2.67
	 	Trust Fund	 	 	22	 
	2.68
	 	United States-Based Payroll	 	 	22	 
	2.69
	 	Valuation Date	 	 	22	 
	 
	 	 	 	 	 	 
	ARTICLE III Eligibility	 	 	23	 
	3.1
	 	Eligibility Requirements	 	 	23	 
	3.2
	 	Procedure for Joining the Plan	 	 	23	 
	3.3
	 	Transfer Between Adopting Employers to Position Covered by Plan	 	 	24	 
	3.4
	 	Transfer to Position Not Covered by Plan	 	 	24	 
	3.5
	 	Transfer to Position Covered by Plan	 	 	24	 

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Table of Contents

	 	 	 	 	 	 	 
	 	 	 	 	Page
	3.6
	 	Treatment of Qualified Military Service	 	 	25	 
	 
	 	 	 	 	 	 
	ARTICLE IV Contributions	 	 	26	 
	4.1
	 	Elective Deferrals	 	 	26	 
	4.2
	 	Qualified Nonelective Contributions	 	 	27	 
	4.3
	 	Profit Sharing Contributions	 	 	28	 
	4.4
	 	Matching Contributions	 	 	30	 
	4.5
	 	Rollover Contributions	 	 	31	 
	4.6
	 	Direct Transfers	 	 	32	 
	4.7
	 	Refund of Contributions to the Adopting Employers	 	 	33	 
	4.8
	 	Payment	 	 	34	 
	4.9
	 	Limits for Highly Compensated Employees	 	 	34	 
	4.10
	 	Correction of Excess Contributions	 	 	38	 
	4.11
	 	Correction of Excess Deferrals	 	 	42	 
	4.12
	 	Correction of Excess Aggregate Contributions	 	 	44	 
	 
	 	 	 	 	 	 
	ARTICLE V Investment of Accounts	 	 	48	 
	5.1
	 	Election of Investment Funds	 	 	48	 
	5.2
	 	Diversification	 	 	53	 
	5.3
	 	Change in Investment Allocation of Future Deferrals	 	 	55	 
	5.4
	 	Transfer of Account Balances Between Investment Funds	 	 	55	 
	5.5
	 	Ownership Status of Funds	 	 	55	 
	5.6
	 	Allocation of Earnings	 	 	56	 
	5.7
	 	Acquisition Loans	 	 	57	 
	5.8
	 	Acquisition Loan Payments	 	 	58	 
	5.9
	 	Sales of Common Stock	 	 	59	 
	5.10
	 	Allocations of Financed Shares	 	 	59	 
	5.11
	 	Allocation of Dividends and Distributions on Common Stock	 	 	61	 
	5.12
	 	Nonallocation	 	 	62	 
	 
	 	 	 	 	 	 
	ARTICLE VI Voting and Tendering of Stock	 	 	63	 
	6.1
	 	Voting of Common Stock	 	 	63	 
	6.2
	 	Tendering of Common Stock	 	 	64	 
	 
	 	 	 	 	 	 
	ARTICLE VII Vesting	 	 	65	 
	7.1
	 	Elective  Deferral,
Rollover  Contribution,  Qualified  Nonelective Contribution  and
Matching  Contribution 
   Accounts	 	 	 	 
	 
	 	 	 	 	65	 
	7.2
	 	Profit Sharing Contribution Accounts	 	 	65	 
	7.3
	 	Forfeitures	 	 	65	 
	7.4
	 	Break in Service Rules	 	 	67	 
	 
	 	 	 	 	 	 
	ARTICLE VIII In-Service Withdrawals	 	 	68	 
	8.1
	 	Elective Deferrals and Qualified Nonelective Contributions	 	 	68	 
	8.2
	 	Rollover Contributions	 	 	70	 
	8.3
	 	General Terms and Conditions	 	 	70	 
	8.4
	 	Hurricane Katrina Distribution	 	 	71	 

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Table of Contents

	 	 	 	 	 	 	 
	 	 	 	 	Page
	ARTICLE IX Distribution of Benefits	 	 	74	 
	9.1
	 	General	 	 	74	 
	9.2
	 	Commencement of Benefits	 	 	74	 
	9.3
	 	Form of Distribution	 	 	77	 
	9.4
	 	Determination of Amount of Distribution	 	 	77	 
	9.5
	 	Direct Rollovers	 	 	78	 
	9.6
	 	Notice and Payment Elections	 	 	80	 
	9.7
	 	Qualified Domestic Relations Orders	 	 	81	 
	9.8
	 	Designation of Beneficiary	 	 	85	 
	9.9
	 	Lost Participant or Beneficiary	 	 	86	 
	9.10
	 	Payments to Incompetents	 	 	87	 
	9.11
	 	Offsets	 	 	87	 
	9.12
	 	Income Tax Withholding	 	 	87	 
	9.13
	 	Common Stock Dividend Distributions	 	 	87	 
	9.14
	 	Distributions	 	 	87	 
	9.15
	 	Rights, Options and Restrictions on Common Stock	 	 	89	 
	9.16
	 	Price Protection	 	 	91	 
	 
	 	 	 	 	 	 
	ARTICLE X Loans	 	 	93	 
	10.1
	 	Availability of Loans	 	 	93	 
	10.2
	 	Written Loan Policy	 	 	93	 
	10.3
	 	Maximum Amount of Loan	 	 	93	 
	10.4
	 	Repayment Schedule	 	 	94	 
	10.5
	 	Interest Rate	 	 	94	 
	10.6
	 	Security for Loans	 	 	95	 
	 
	 	 	 	 	 	 
	ARTICLE XI Contribution and Benefit Limitations	 	 	96	 
	11.1
	 	Contribution Limits	 	 	96	 
	11.2
	 	Annual Adjustments to Limits	 	 	96	 
	11.3
	 	Excess Amounts	 	 	96	 
	 
	 	 	 	 	 	 
	ARTICLE XII Top-Heavy Rules	 	 	99	 
	12.1
	 	General	 	 	99	 
	12.2
	 	Vesting	 	 	99	 
	12.3
	 	Minimum Contribution	 	 	99	 
	12.4
	 	Definitions	 	 	100	 
	12.5
	 	Special Rules	 	 	103	 
	 
	 	 	 	 	 	 
	ARTICLE XIII The Trust Fund	 	 	105	 
	13.1
	 	Trust	 	 	105	 
	13.2
	 	Investment of Accounts	 	 	105	 
	13.3
	 	Expenses	 	 	105	 
	 
	 	 	 	 	 	 
	ARTICLE XIV Administration of The Plan	 	 	106	 
	14.1
	 	General Administration	 	 	106	 
	14.2
	 	Responsibilities of the ESOP Committee	 	 	106	 
	14.3
	 	Liability for Acts of Other Fiduciaries	 	 	107	 

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Table of Contents

	 	 	 	 	 	 	 
	 	 	 	 	Page
	14.4
	 	Employment by Fiduciaries	 	 	108	 
	14.5
	 	Recordkeeping	 	 	108	 
	14.6
	 	Claims Review Procedure	 	 	108	 
	14.7
	 	Indemnification of Directors and Employees	 	 	110	 
	14.8
	 	Immunity from Liability	 	 	111	 
	 
	 	 	 	 	 	 
	ARTICLE XV Amendment Or Termination Of Plan	 	 	112	 
	15.1
	 	Right to Amend or Terminate Plan	 	 	112	 
	15.2
	 	Amendment to Vesting Schedule	 	 	113	 
	15.3
	 	Maintenance of Plan	 	 	113	 
	15.4
	 	Termination of Plan and Trust	 	 	113	 
	15.5
	 	Distribution on Termination	 	 	114	 
	 
	 	 	 	 	 	 
	ARTICLE XVI Additional Provisions	 	 	116	 
	16.1
	 	Effect of Merger, Consolidation or Transfer	 	 	116	 
	16.2
	 	No Assignment	 	 	116	 
	16.3
	 	Limitation of Rights of Employees	 	 	117	 
	16.4
	 	Construction	 	 	117	 
	16.5
	 	Company Determinations	 	 	117	 
	16.6
	 	Continued Qualification	 	 	118	 
	16.7
	 	Governing Law	 	 	118	 
	 
	 	 	 	 	 	 
	EXHIBIT A	 	 	119	 
	Adopting Employers and Special Plan Provisions for Certain Adopting Employers
	 	 	119	 
	 
	 	 	 	 	 	 
	EXHIBIT B	 	 	120	 
	Special Withdrawal and Distribution Provisions
	 	 	120	 
	 
	 	 	 	 	 	 
	EXHIBIT C	 	 	130	 
	Designation of Current Year Method for ADP and ACP Testing
	 	 	130	 
	 
	 	 	 	 	 	 
	SUPPLEMENT NO. 1	 	 	131	 
	John J. McMullen Associates, Inc. 401(k) Retirement Plan and John
J. McMullen Associates, Inc. Employee Stock Ownership Plan
	 	 	131	 
	 
	 	 	 	 	 	 
	SUPPLEMENT NO. 2	 	 	134	 
	BMH Associates, Inc. Profit Sharing 401(k) Plan
	 	 	134	 
	 
	 	 	 	 	 	 
	SUPPLEMENT NO. 3	 	 	136	 
	MA&D 401(k) Plan
	 	 	136	 
	 
	 	 	 	 	 	 

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ALION SCIENCE AND TECHNOLOGY CORPORATION EMPLOYEE

OWNERSHIP, SAVINGS AND INVESTMENT PLAN

ARTICLE I

Adoption of the Plan

1.1 Establishment.

     (a) Alion Science and Technology Corporation, a corporation organized under the laws of the
state of Delaware, hereby amends and restates the Alion Science and Technology Corporation Employee
Ownership, Savings And Investment Plan (the “Plan”) generally effective as of October 1, 2006. The
Plan was originally established December 19, 2001 as the Beagle Holdings, Inc. Employee Ownership,
Savings And Investment Plan. The Plan includes two components: (1) a stock bonus plan that
constitutes an employee stock ownership plan within the meaning of Section 4975(e)(7) of the Code
(“ESOP Component”), and (2) a profit sharing plan that includes a cash or deferred arrangement
under Section 401(k) of the Code (“Non ESOP Component”). The ESOP Component is designed to invest
in the ESOP Accounts; the Non ESOP Component is designed to invest in the Non ESOP Accounts.

     (b) The Non ESOP Component is intended to meet the applicable requirements of Section 401(a)
of the Internal Revenue Code of 1986 (the “Code”), including a cash or deferred arrangement
intended to qualify under Section 401(k) of the Code. The ESOP Component is designed to be
invested primarily in stock of the Company and is intended to meet the applicable requirements of
Sections 401(a), 409, and 4975(e)(7) of the Code and Section 407(d)(6) of the Employee Retirement
Income Security Act of 1974 (“ERISA”), which also includes a cash or deferred arrangement intended
to qualify under Section 401(k) of the Code. The ESOP Component of the Plan is designed to invest
primarily in qualifying employer securities. The terms of the Plan shall be interpreted consistent
with the foregoing.

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1.2 Trust.

     The Trust shall be the sole source of benefits under the Plan and the Adopting Employers or
any Affiliate shall not have any liability for the adequacy of the benefits provided under the
Plan. The Trust may be comprised of more than one trust, and plan assets may be held by more than
one Trustee.

1.3 Restatement Effective Date.

     The Plan shall be amended and restated as of October 1, 2006, or such other dates as may be
specifically provided herein or as otherwise required by law for the Plan to satisfy the
requirements of Section 401(a) of the Code.

1.4 Adoption of Plan.

     With the prior approval of the Board of Directors, or other officer of the Company to whom
authority to approve participation by an entity is delegated by the Board of Directors, the Plan
and Trust may be adopted by any corporation or other entity (hereinafter referred to as an Adopting
Employer). Such adoption shall be made by the Adopting Employer taking the actions designated by
the ESOP Committee as appropriate to the proper adoption and operation of the Plan and Trust. In
the event of the adoption of the Plan and Trust by an Adopting Employer, the Plan and Trust shall
be interpreted in a manner consistent with such adoption. The Adopting Employers shall be listed
in Exhibit A attached to this Plan.

1.5 Withdrawal of Adopting Employer.

     (a) An Adopting Employer’s participation in this Plan may be terminated, voluntarily or
involuntarily, at any time, as provided in this Section.

     (b) An Adopting Employer shall withdraw from the Plan and Trust if the Plan and Trust, with
respect to that Adopting Employer, fail to qualify under Sections 401(a) and 501(a)

- 2 -

 

of the Code (or, in the opinion of the ESOP Committee, they may fail to so qualify) and the
continued sponsorship of that Adopting Employer may jeopardize the status with respect to the
Company or the remaining Adopting Employers, of the Plan and Trust under Sections 401(a) and 501(a)
of the Code. The Adopting Employer shall receive at least thirty (30) days prior written notice of
a withdrawal under this subsection, unless a shorter period is agreed to or is determined to be
appropriate by the ESOP Committee in order to preserve the qualified status of the Plan.

     (c) An Adopting Employer may voluntarily withdraw from the Plan and Trust for any reason.
Such withdrawal requires at least thirty (30) days written notice to the ESOP Committee and the
Trustee, unless a shorter period is agreed to.

     (d) Upon withdrawal, the Trustee shall segregate the assets attributable to Employees of the
withdrawn Adopting Employer, the amount thereof to be determined by the ESOP Committee and the
Trustee. The segregated assets shall be held, paid to another trust, distributed or otherwise
disposed of as is appropriate under the circumstances; provided, however, that any transfer shall
be for the exclusive benefit of Participants and their Beneficiaries. A withdrawal of an Adopting
Employer from the Plan is not necessarily a termination under ARTICLE XV. If the withdrawal is a
termination, then the provisions of ARTICLE XV shall also be applicable.

1.6 Supplements.

     Except
as otherwise provided in this document, the  terms and conditions of this document
are supplemented by the terms and            provisions of any Supplement hereto, and the same are hereby
incorporated herein by reference. The Plan is a single plan under the Code and ERISA that is
funded by a single pool of assets. In the event of a conflict between the terms of this document
and the terms of any Supplement, the terms of the Supplement shall control unless specifically
provided otherwise.

- 3 -

 

ARTICLE II

Definitions

     The following terms have the meaning specified below unless the context indicates otherwise:

2.1 Account.

     The entire interest of a Participant in the Trust Fund. A Participant’s Account shall consist
of an ESOP Account and a Non ESOP Account and a Qualified Nonelective Contribution Account. The
ESOP Account and the Non ESOP Account will contain the following subaccounts:

	 	(a)	 	ESOP Account

	 	(1)	 	ESOP Elective Deferral Account
	 
	 	(2)	 	ESOP Matching Account
	 
	 	(3)	 	ESOP Rollover Account
	 
	 	(4)	 	ESOP Profit Sharing Account
	 
	 	(5)	 	ESOP Stock, Cash and Loan Accounts may be established as Subaccounts

	 	(b)	 	Non ESOP Account

	 	(1)	 	Elective Deferral Account
	 
	 	(2)	 	Matching Account
	 
	 	(3)	 	Rollover Account
	 
	 	(4)	 	Profit Sharing Account
	 
	 	(5)	 	Non ESOP Loan Account may be established as a Subaccount

The ESOP Committee may set up such additional subaccounts as it deems necessary for the proper
administration of the Plan.

- 4 -

 

2.2 Acquisition Loan.

     A loan or other extension of credit used by the Trustee to finance the acquisition of Common
Stock, which loan may constitute an extension of credit to the Trust from a party in interest (as
defined in ERISA).

2.3 Adopting Employers.

     Any corporation or other entity (including the Company) that elects to participate in the Plan
on account of some or all of its Employees, provided that participation in the Plan by such entity
is approved by the Board of Directors, or officer of the Company to whom authority to approve
participation by an entity is delegated by the Board of Directors. The Adopting Employers, and if
applicable, the divisions, operations or similar cohesive groups of the Adopting Employers that
participate in the Plan shall be listed in Exhibit A to this Plan. If an adopting entity does not
participate in the Plan with respect to all of its Eligible Employees, the term “Adopting Employer”
shall include only those divisions, operations or similar cohesive groups of such entity that
participate in the Plan.

2.4 Affiliate.

     A trade or business that, together with an Adopting Employer, is a member of (i) a controlled
group of corporations within the meaning of Section 414(b) of the Code; (ii) a group of trades or
businesses (whether or not incorporated) under common control as defined in Section 414(c) of the
Code, or (iii) an affiliated service group as defined in Section 414(m) of the Code, or which is an
entity otherwise required to be aggregated with the Adopting Employer pursuant to Section 414(o) of
the Code. For purposes of ARTICLE XI, the determination of controlled groups of corporations and
trades or businesses under common control shall be made after taking into account the modification
required under Section 415(h) of the Code. All such

- 5 -

 

entities, whether or not incorporated, shall be treated as a single employer to the extent
required by the Code.

2.5 Allocation Date.

     March 31 and September 30 of each Plan Year. Notwithstanding the foregoing, for purposes of
the Common Stock, the term “Allocation Date” shall include June 30, 2005.

2.6 Authorized Leave of Absence.

     An absence approved by an Adopting Employer on a uniform and nondiscriminatory basis not
exceeding six (6) months for any of the following reasons: illness of an Employee or a relative,
the death of a relative, education of the Employee, or personal or family business of an
extraordinary nature, provided in each case that the Employee returns to the service of the
Adopting Employer within the time period specified by the Adopting Employer.

2.7 Beneficiary.

     The person or persons (including a trust or trusts) who are entitled to receive benefits from
a deceased Participant’s Account after such Participant’s death (whether or not such person or
persons are expressly so designated by the Participant).

2.8 Board of Directors.

     The Board of Directors of Alion Science and Technology Corporation.

2.9 Closing Date.

     The date upon which the Company or an Affiliate acquires a substantial portion of the assets
of IIT Research Institute.

2.10 Code.

     The Internal Revenue Code of 1986, as amended.

- 6 -

 

2.11 Common Stock.

     Alion Science and Technology Corporation common stock.

2.12 Company.

     Alion Science and Technology Corporation.

2.13 Compensation.

     (a) (1) Except as otherwise provided herein and in an Exhibit or Supplement, the total wages,
salaries, and fees for professional services and other amounts received (without regard to whether
or not an amount is paid in cash) for personal services actually rendered in the course of
employment with the Employer to the extent that the amounts are includible in gross income,
including, but not limited to (A) commissions paid to salesmen, (B) compensation for services on
the basis of a percentage of profits, (C) taxable fringe benefits, (D) bonuses, overtime and other
extra compensation, and (E) amounts described in Sections 104(a)(3), 105(h) of the Code, but only
to the extent that these amounts are includible in the gross income of the Employee.

          (2) Notwithstanding the foregoing, Compensation shall not include: (A) Employer contributions
to a plan of deferred compensation which are not includible in the Employee’s gross income for the
taxable year in which contributed, or any distributions from a plan of deferred compensation
(regardless of whether such amounts are includible in the gross income of the Employee when
distributed); (B) amounts realized from the sale, exchange or other disposition of stock
appreciation rights; and (C) other amounts which received special tax benefits, such as premiums
for group-term life insurance to the extent that the premiums are not includible in the gross
income of the Employee.

- 7 -

 

          (3) To the extent not otherwise excluded by subsection (a)(2), Compensation also shall not
include (even if otherwise includible in gross income): (A) reimbursements or other expense
allowances (B) nontaxable fringe benefits (cash or noncash), (C) moving expenses, (D) deferred
compensation including equity or similar compensation such as Stock Appreciation Rights (SARs),
phantom stock, stock options, warrants or other similar arrangements, (E) welfare benefits
(including severance payments), (F) amounts includable in the gross income of an Employee upon
making the election described in Section 83(b) of the Code.

          (4) In all cases, however, notwithstanding any exclusions above, Compensation shall include
any amount which would otherwise be deemed Compensation under this subsection 2.13(a) but for the
fact that it is deferred pursuant to a salary reduction agreement under this Plan or under any plan
described in Section 401(k) or 125 of the Code or a qualified transportation fringe benefit program
defined in Section 132(f) of the Code.

     (b) The annual Compensation of each Participant taken into account for any Plan Year shall not
exceed $220,000, as adjusted for cost-of-living increases in accordance with Section 401(a)(17)(B)
of the Code.

     (c) Except to the extent required by law, Compensation shall be determined only on the basis
of amounts paid during the Plan Year, including any Plan Year with a duration of fewer than twelve
(12) months.

     (d) Compensation of a person who becomes a Participant during the Plan Year shall only include
amounts paid after the date on which such person commenced participation in the Plan.

- 8 -

 

2.14 Current Market Value.

     (a) Except as provided in subsection (b) below, the current market value of Company Stock for
all purposes under the Plan shall be determined by the Trustee based upon a valuation performed by
an independent appraiser, as defined in Section 401(a)(28)(C) of the Code. Current Market Value
will generally be based upon a semi-annual appraisal performed as of a Valuation Date; provided,
however, that the ESOP Committee may order interim valuations, which will be binding as of the
relevant date specified therein. Nothing in this Plan will be construed as requiring Current
Market Value to be determined as of any date other than a Valuation Date or an interim Valuation
Date.

     (b) Notwithstanding subsection (a) above, for purposes of Section 9.15 regarding the Company’s
right of first refusal to purchase Common Stock distributed from the Plan to a Participant or
Beneficiary as described in Section 9.15, Current Market Value means the price to purchase the
Common Stock offered by a bona fide, independent purchaser.

2.15 Disability.

     Disability means that a Participant is determined to be disabled under the Employer’s Long
Term Disability Plan.

2.16 RESERVED.

2.17 Elective Deferral.

     A voluntary reduction of a Participant’s Compensation in accordance with Section 4.1 hereof
that qualifies for treatment under Section 402(e)(3) of the Code. A Participant’s election to make
Elective Deferrals may be made only with respect to an amount that the Participant could otherwise
elect to receive in cash and that is not currently available to the Participant.

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2.18 Eligible Employee.

     A person who is an Employee of an Adopting Employer who:

     (a) is on a United States-Based Payroll;

     (b) is not employed in a position or classification within a bargaining unit which is covered
by a collective bargaining agreement with respect to which retirement benefits were the subject of
good faith bargaining (unless such agreement provides for coverage hereunder of Employees of such
unit);

     (c) is not assigned on the books and records of the Employer to any division, operation or
similar cohesive group of an Adopting Employer that is excluded from participation in the Plan by
the Board of Directors of the Company, or officer of the Company to whom such authority is
delegated by the Board of Directors;

     (d) is not a nonresident alien who receives no earned income (within the meaning of Section
911(d)(2) of the Code) from the Employer which constitutes income from sources within the United
States (within the meaning of Section 861(a)(3) of the Code).

     (e) is not a Leased Employee or any other person who performs services for an Adopting
Employer other than as an Employee.

2.19 Employee.

     Except to the extent otherwise provided herein any person employed by an Employer, including
any officer of the Employer, who is expressly so designated as an employee or officer on the books
and records of the Employer and who is treated as such by the Employer for federal employment tax
purposes. Any person who, after the close of a Plan Year, is retroactively treated by the Employer
or any other party as an employee for such prior Plan Year shall not, for purposes of the Plan, be
considered an Employee for such prior Plan Year unless expressly so

- 10 -

 

treated as such by the Employer. The term “Employee” specifically excludes a person who the
Employer considers to be a “contract employee” or “independent contractor” for the period that the
person is considered by the Employer to be a “contract employee” or “independent contractor” even
if the person is later reclassified as a common law employee by the Internal Revenue Service or a
court of law, or is otherwise reclassified.

2.20 Employer.

     An Adopting Employer and any Affiliate thereof (whether or not such Affiliate participates in
the Plan). The term “Employer” shall be used throughout this Plan to designate the respective
Employer entities unless the context demands otherwise. Each entity covering its Employees
hereunder shall be deemed to be such only as to those Participants who are on its payroll, and, in
each case only to the extent of the Compensation it pays to these Participants.

2.21 Employment Commencement Date.

     The date on which an individual first performs an Hour of Service with the Employer.

2.22 ERISA.

     The Employee Retirement Income Security Act of 1974, as amended.

2.23 ESOP Accounts.

     That portion of a Participant’s Account made up of the ESOP Elective Deferral Account, ESOP
Matching Account, ESOP Profit Sharing Account, ESOP Rollover Account and such other subaccounts
with respect to the ESOP Component as determined by the ESOP Committee.

2.24 ESOP Committee.

     The ESOP Committee appointed by the President and CEO of the Company to administer the Plan in
accordance with ARTICLE XIV.

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2.25 ESOP Component.

     The portion of the Plan which is a stock bonus plan which constitutes an employee stock
ownership plan within the meaning of Section 4975(e)(7) of the Code.

2.26 ESOP Elective Deferral Account.

     That portion of a Participant’s Account which is attributable to ESOP elective deferrals
received pursuant to Section 4.1, adjusted for withdrawals and distributions, and the earnings and
losses attributable thereto.

2.27 ESOP Matching Account.

     That portion of a Participant’s Account which is attributable to ESOP matching contributions
received pursuant to Section 4.4, adjusted for withdrawals and distributions, and the earnings and
losses attributed thereto.

2.28 ESOP Profit Sharing Account.

     That portion of a Participant’s Account which is attributable to ESOP Profit Sharing
Contributions received pursuant to Section 4.3, adjusted for withdrawals and distributions, and the
earnings and losses attributed thereto.

2.29 ESOP Rollover Account.

     That portion of a Participant’s Account which is attributable to ESOP Rollover Contributions
received pursuant to Section 4.5, adjusted for withdrawals and distributions, and the earnings and
losses attributed thereto.

2.30 Fiduciary.

     Any person who exercises any discretionary authority or discretionary control over the
management of the Plan, or exercises any authority or control respecting management or disposition
of Plan assets; who renders investment advice for a fee or other compensation, direct

- 12 -

 

or indirect, as to assets held under the Plan, or has any authority or discretionary
responsibility in the administration of the Plan. This definition shall be interpreted in
accordance with Section 3(21) of ERISA.

2.31 Financed Shares.

     Shares of Common Stock acquired by the Trust with the proceeds of an Acquisition Loan.

2.32 Fiscal Year.

     The fiscal year of the Company, ending at 11:59 p.m. on the last Friday in September.
Notwithstanding the foregoing, for purposes of the deduction rules of Code Section 404, Fiscal Year
shall be deemed to coincide with the Plan Year.

2.33 Former IIT Research Institute Employee.

     An Eligible Employee who (a) is or was an employee of IIT Research Institute and became an
Employee of an Adopting Employer in the first Plan Year, or (b) was an employee of IIT Research
Institute on or before December 20, 2002 and became an Employee of an Adopting Employer within five
(5) years of the Employee’s termination of employment with IIT Research Institute.

2.34 Highly Compensated Employee.

     (a) Any Employee who:

          (1) is a five percent (5%) owner at any time during the Plan Year or the preceding Plan Year;
or

          (2) for the preceding Plan Year received Compensation in excess of the amount specified in
Section 414(q)(1)(B)(i) of the Code; and in accordance with

- 13 -

 

Section 414(q)(1)(B)(ii) of the Code, was a member of the Top Paid Group for such preceding
Plan Year.

     (b) A former Employee will be treated as a Highly Compensated Employee if the former Employee
was a Highly Compensated Employee at the time of his or her separation from service or the former
Employee was a Highly Compensated Employee at any time after attaining age fifty-five (55).

     (c) The dollar amount incorporated under subsection (a)(2) shall be adjusted as provided in
Section 414(q)(1) of the Code.

     (d) This Section shall be interpreted in a manner consistent with Section 414(q) of the Code
and the regulations thereunder and shall be interpreted to permit any elections permitted by such
regulations to be made.

     (e) The term Top Paid Group for any year includes Employees in the group of Employees
specified in Section 414(q)(3) of the Code, which consists of the top twenty percent (20%) of
Employees when ranked on the basis of compensation paid during such year.

2.35 Hour of Service.

     Any hour for which any person is directly or indirectly paid (or entitled to payment) by the
Employer for the performance of duties as an Employee, as determined from the appropriate records
of the Employer. Hours of Service shall be computed and credited in accordance with the Department
of Labor regulations under Section 2530.200b.

2.36 IIT Research Institute.

     Illinois Institute of Technology Research Institute, an Illinois corporation, and Human
Factors Applications, Inc., a Pennsylvania corporation.

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2.37 Leased Employee.

     Any person (other than an Employee) who, pursuant to an agreement between the Employer and any
other person, has performed services for the Employer (or any related person as provided in Section
414(n)(6) of the Code) on a substantially full-time basis for a period of at least one (1) year and
such services are performed under primary direction or control of the Employer. Leased Employees
are not eligible to participate in the Plan.

2.38 Matching Contributions.

     Contributions made to the Trust in accordance with Section 4.4 hereof.

2.39 Non ESOP Accounts.

     That portion of a Participant’s Account which is made up of the Non ESOP Elective Deferral
Account, the Non ESOP Matching Account, the Non ESOP Profit Sharing Account, the Non ESOP Rollover
Account and such other subaccounts with respect to the Non ESOP Component as determined by the ESOP
Committee.

2.40 Non ESOP Component.

     The portion of the Plan which constitutes a profit sharing plan that includes a cash or
deferred arrangement under Section 401(k) of the Code.

2.41 Non ESOP Elective Deferral Account.

     That portion of a Participant’s Account which is attributable to Non ESOP elective deferral
contributions received pursuant to Section 4.1, adjusted for withdrawals and distributions, and the
earnings and losses attributable thereto.

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2.42 Non ESOP Matching Account.

     That portion of a Participant’s Account which is attributable to Non ESOP matching
contributions received pursuant to Section 4.4, adjusted for withdrawals and distributions, and the
earnings and losses attributable thereto.

2.43 Non ESOP Profit Sharing Account.

     That portion of a Participant’s Account which is attributable to Non ESOP Profit Sharing
Contributions received pursuant to Section 4.3, adjusted for withdrawals and distributions, and the
earnings and losses attributable thereto.

2.44 Non ESOP Rollover Account.

     That portion of a Participant’s Account which is attributable to Non ESOP Rollover
Contributions received pursuant to Section 4.5, adjusted for withdrawals and distributions, and the
earnings and losses attributable thereto.

2.45 Normal Retirement Age.

     The Participant’s attainment of age sixty five (65).

2.46 Participant.

     An individual who is enrolled in the Plan pursuant to ARTICLE III and has not received a
distribution of all of the funds credited to his or her Account (or had such funds fully
forfeited). In the case of an Eligible Employee who makes a Rollover Contribution to the Plan
under Section 4.5(a)(3) prior to enrollment under ARTICLE III, such Eligible Employee shall, until
he or she enrolls under ARTICLE III, be considered a Participant for the limited purposes of
maintaining and receiving his or her Rollover Contribution Account under the terms of the Plan.

2.47 Pay Period.

     A period scheduled by an Adopting Employer for payment of wages or salaries.

- 16 -

 

2.48 Period of Participation.

     That portion of a Period of Service during which an Eligible Employee was a Participant. A
Human Factors Applications, Inc. employee will get one Period of Participation for each year of
participation in the Human Factors Applications, Inc. Profit Sharing and 401(k) Plan. A former
employee of Innovative Technology Solutions Corporation will get one Period of Participation for
each year of participation in the Innovative Technology Solutions 401(k) Profit Sharing Plan &
Trust.

2.49 Period of Service.

     The period of time beginning on the Employee’s Employment Commencement Date or Reemployment
Commencement Date, whichever is applicable, and ending on the Employee’s Severance from Service
Date. If the Severance from Service is because the Employee resigns, retires or is discharged, and
the Employee is rehired by an Employer within twelve (12) months after his Severance from Service
Date, the period between his Severance from Service Date and his rehire date is included in his
Period of Service. Notwithstanding the foregoing, if an Employee resigns, retires or is discharged
during a period of absence for any reason other than a resignation, retirement, discharge or death,
the period between his Severance from Service Date and his rehire date is included in his Period of
Service only if the Employee’s rehire date is within twelve (12) months after the original absence
date. For this purpose, a Former IIT Research Institute Employee shall receive credit for his or
her period of service with IIT Research Institute, including any credit for service with a previous
employer to the extent such service was taken into account under a qualified or other tax-favored
retirement plan maintained by IIT Research Institute.

- 17 -

 

     A Period of Service for the purposes of this Plan shall also include any period of
uninterrupted employment performed by an employee of any Employer or an Affiliate and any period of
uninterrupted employment with the predecessor of any Employer or an Affiliate, but only to the
extent such period of employment would otherwise be recognized under the terms of the Plan. For
this purpose, employment with a predecessor includes any period of employment with a trade or
business, or period of employment recognized under a tax-qualified plan under Section 401(a) of the
Code maintained by a trade or business that was performed by an employee who was employed by the
trade or business immediately prior to a transfer to the employment of the acquiring Employer or an
Affiliate in connection with the purchase by the Employer or Affiliate of all or a portion of the
assets used in that trade or business.

2.50 Period of Severance.

     The period of time beginning on the Employee’s Severance from Service Date and ending on the
Employee’s Reemployment Commencement Date.

2.51 Plan.

     The Alion Science and Technology Corporation Employee Ownership, Savings and Investment Plan,
as amended from time to time.

2.52 Plan Year.

     The annual twelve- (12) month period beginning on October 1 of each year and ending on
September 30 of each year.

2.53 Profit Sharing Contributions.

     Any contribution by the Adopting Employers to the Trust pursuant to Section 4.3.

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2.54 Qualified Military Service.

     Any service in the Uniformed Services (as defined in Chapter 43 of Title 38 of the United
States Code) by any individual if such individual is entitled to reemployment rights under such
chapter with respect to such service. Qualified Military Service includes any period of duty on a
voluntary or involuntary basis in the United States Armed Forces, the Army National Guard and the
Air National Guard when engaged in active duty for training, inactive duty for training or
full-time National Guard duty, the commissioned corps of the Public Health Service and any other
category of persons designated by the President of the United States in time of war or emergency.
Such periods of duty shall include active duty, active duty for training, initial active duty for
training, inactive duty training, full-time National Guard duty and absence from employment for an
examination to determine fitness for such duty.

2.55 Qualified Nonelective Contributions.

     Any contributions by the Adopting Employers to the Trust pursuant to Section 4.2. Qualified
Nonelective Contributions are one hundred percent (100%) vested when made and are subject to the
special distribution restrictions prescribed in Section 9.2(e).

2.56 Qualified Nonelective Contribution Account.

     That portion of a Participant’s Account that is attributable to Qualified Nonelective
Contributions received pursuant to Section 4.2, adjusted for withdrawals and distributions, and the
earnings and losses attributable thereto.

2.57 Recordkeeper.

     The organization or organizations designated by the ESOP Committee to be the recordkeeper(s)
for the Plan.

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2.58 Reemployment Commencement Date.

     The first date on which the Employee performs an Hour of Service following a Period of
Severance that is excluded under Section 7.4 in determining whether a Participant has a
nonforfeitable right to his or her ESOP or Non ESOP Contribution Accounts.

2.59 Retirement.

     A termination of employment that occurs after a Participant has attained Normal Retirement
Age.

2.60 Rollover Contributions.

     Amounts transferred or contributed to this Plan from another plan or IRA in accordance with
Section 4.5.

2.61 Severance from Service.

     The termination of employment by reason of resignation, Retirement, discharge, layoff or
death; or the failure to return from Authorized Leave of Absence, Qualified Military Service or
Disability.

2.62 Severance from Service Date.

     The
earliest of:

     (a) the date on which an Employee resigns, retires, is discharged, or dies; or

     (b) except as provided in paragraphs (c), (d), (e) and (f) hereof, the first anniversary of
the first date of a period during which an Employee is absent for any reason other than
resignation, retirement, discharge or death; or

     (c) in the case of a Qualified Military Service leave of absence from which the Employee does
not return before expiration of recall rights, Severance from Service Date means the first day of
absence because of the leave; or

- 20 -

 

     (d) in the case of an absence due to Disability, Severance from Service Date means the earlier
of the first anniversary of the first day of absence because of the Disability or the date of
termination of the Disability; or

     (e) in the case of an Employee who is discharged or resigns (i) by reason of the pregnancy of
the Employee, (ii) by reason of the birth of a child to the Employee, (iii) by reason of the
placement of a child with the Employee in connection with the adoption of such child by the
Employee or (iv) for purposes of caring for such child for a period beginning immediately following
such birth or placement, “Severance from Service Date”, for the sole purpose of determining the
length of a Period of Service, shall mean the first anniversary of the resignation or discharge; or

     (f) in the case of an Employee who is absent from service beyond the first anniversary of the
first day of absence (i) by reason of the pregnancy of the Employee, (ii) by reason of the birth of
a child to the Employee, (iii) by reason of the placement of a child with the Employee in
connection with the adoption of such child by the Employee or (iv) for purposes of caring for such
child for a period beginning immediately following such birth or placement, the Severance from
Service Date shall be the second anniversary of the first day of such absence. The period between
the first and second anniversaries of the first day of absence is neither a Period of Service nor a
Period of Severance.

2.63 Surviving Spouse.

     A person who was legally married to the Participant immediately before the Participant’s
death.

2.64 Trade Day.

     Days on which the Recordkeeper is able to make transfers of Plan assets.

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2.65 Trust.

     The Alion Science and Technology Corporation Employee Ownership, Savings and Investment Trust
and any successor agreement made and entered into for the establishment of a trust fund of all
contributions which may be made to the Trustee under the Plan. The Trust may be held by separate
Trustees.

2.66 Trustee.

     The Trustee and any successor trustees under the Trust holding all or part of the Trust Fund.

2.67 Trust Fund.

     The cash, securities, and other property held by the Trustee for the purposes of the Plan.

2.68 United States-Based Payroll.

     A payroll maintained by the Company or an Adopting Employer that is designated as a United
States payroll on the books and records of the Company or Adopting Employer and that is subject to
United States wage withholding and reporting laws.

2.69 Valuation Date.

     Any day that the New York Stock Exchange is open for trading; provided, however, that the
terms Trade Day and Valuation Date shall not be construed to mean that Common Stock must be newly
valued on each of these days. For Common Stock, the term “Valuation Date” means the semiannual
date on which Common Stock is valued by an Independent Appraiser (which shall generally be as of
March 31 and September 30), and such other interim Valuation Dates as declared by the ESOP
Committee. Notwithstanding the foregoing, for purposes of the Common Stock, the term “Valuation
Date” shall include June 30, 2005.

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ARTICLE III

Eligibility

3.1 Eligibility Requirements.

     An Eligible Employee shall be eligible to make Elective Deferrals and Rollover Contributions
immediately following his or her Employment Commencement Date (or, if later, the date an Employee
becomes an Eligible Employee). An Eligible Employee shall be eligible for Matching Contributions
and Profit Sharing Contribution, if any, immediately following his or her completion of a Period of
Service of twelve (12) consecutive months. An Eligible Employee who was eligible for a Matching
Contribution, and Profit Sharing Contribution, if any, as of the date he or she incurred a
Severance from Service, and who is reemployed as an Eligible Employee, shall again be eligible for
a Matching Contribution, and Profit Sharing Contribution, if any, immediately on his or her date of
reemployment.

3.2 Procedure for Joining the Plan.

     Each Eligible Employee may join the Plan by communicating with the Company’s Director of Human
Resources or his or her designee in accordance with the instructions that will be made available to
each Eligible Employee. An enrollment in the Plan shall not be deemed to have been completed until
the Eligible Employee has designated: (i) a percentage by which his or her Compensation shall be
reduced as an Elective Deferral in accordance with the requirements of Section 4.1; (ii) election
of investment funds in accordance with ARTICLE V; (iii) one or more Beneficiaries; and (iv) such
other information as specified by the Company’s Director of Human Resources or his or her designee.
Enrollment will be effective as of the first Pay Period following completion of enrollment for
which it is administratively feasible to carry out such enrollment. The ESOP Committee, in its
discretion, may from time to time make

- 23 -

 

exceptions and adjustments in the foregoing procedures on a uniform and nondiscriminatory
basis.

3.3 Transfer Between Adopting Employers to Position Covered by Plan.

     A Participant who is transferred to a position with another Adopting Employer in which the
Participant remains an Eligible Employee will continue as an active Participant of the Plan.

3.4 Transfer to Position Not Covered by Plan.

     If a Participant is transferred to a position with an Employer in which the Participant is no
longer an Eligible Employee, the Participant will remain a Participant of the Plan with respect to
contributions previously made but shall no longer be eligible to have Elective Deferrals or any
other contributions made to the Plan on his or her behalf until he or she again becomes an Eligible
Employee. In the event the Participant is subsequently transferred to a position in which he or
she again becomes an Eligible Employee, the Participant may renew Elective Deferrals by
communicating with the Company’s Director of Human Resources or his or her designee and providing
all of the information requested by such person. The renewal of Elective Deferrals will be
effective as of the first Pay Period following receipt by the Company’s Director of Human Resources
or his or her designee of the requested information for which it is administratively feasible to
re-enroll such Participant.

3.5 Transfer to Position Covered by Plan.

     If an Employee who is not eligible to participate in the Plan by reason of his or her position
with an Employer is transferred to a position that is eligible to participate in the Plan, such
Employee may join the plan in accordance with Sections 3.1 and 3.2.

- 24 -

 

3.6 Treatment of Qualified Military Service.

     Notwithstanding any provision of this 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.

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ARTICLE IV

Contributions

4.1 Elective Deferrals.

     (a) Except as otherwise provided herein and in an Exhibit or Supplement to this Plan, a
Participant may authorize an Adopting Employer to reduce his or her Compensation for each Pay
Period on a pre-tax basis by an amount equal to any whole percentage of Compensation that does not
exceed sixty percent (60%) and to have such amount contributed to the Plan as an Elective Deferral.
At the time amounts are contributed to the Plan as an Elective Deferral, the Participant will
designate the percentage (in increments of 1%) to be (i) held for investment in the Participant’s
ESOP Elective Deferral Account in accordance with Section 5.1(c) and (ii) otherwise invested in the
Participants’ Non ESOP Elective Deferral Account in accordance with Section 5.1(a). A Participant
may elect to defer no more than eleven percent (11%) of Compensation into the Participant’s ESOP
Elective Deferral Account for each Pay Period.

     (b) A Participant shall not be permitted to make Elective Deferrals during any calendar year
in excess of the dollar limitation contained in Section 402(g) of the Code in effect for such
calendar year.

     (c) A Participant may change his or her Elective Deferral percentage to increase, decrease or
discontinue said percentage, or the allocation between the ESOP and Non ESOP Elective Deferral
Accounts by notifying the Company’s Director of Human Resources or his or her designee, such change
to take effect as of the first Pay Period by which it is administratively feasible to make such
change.

     (d) A Participant may not make Elective Deferrals with respect to Compensation that has
already been made available to the Participant.

- 26 -

 

     (e) With the approval of the Board of Directors, or any officer of the Company to whom
authority to determine contributions is delegated by the Board of Directors, an Adopting Employer
may provide its Eligible Employees with a cash or deferred election with respect to all or a
portion of the Service Contract Act reconciliation amounts referenced in Section 4.2(b) (“SCA
Amounts”). If such cash or deferred election is provided, an Eligible Employee can elect either
(i) to receive the SCA Amounts in cash as additional taxable compensation, or (ii) to have the SCA
Amounts contributed to the Plan as additional Elective Deferrals, subject to the limitations
otherwise provided under the Plan. If an Eligible Employee does not make a cash or deferred
election within the time period specified by the ESOP Committee, the SCA Amounts will be paid to
the Eligible Employee in cash as additional taxable compensation.

     (f) All Employees who are eligible to make elective deferrals under this Plan and who have
attained age 50 before the close of the calendar 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 contributions. Such catch-up contributions shall be included for
purposes of Matching Contributions.

4.2 Qualified Nonelective Contributions.

     (a) Discretionary Amounts: Each Plan Year the Adopting Employers may contribute to
the Trust such amounts as determined by the Board of Directors or any officer to whom authority to
determine contributions is delegated by the Board of Directors, in his or her sole

- 27 -

 

discretion. Any amounts contributed under this subsection are to be designated by the
Adopting Employers as Qualified Nonelective Contributions and shall be allocated in accordance with
Sections 4.10(c) and 4.12(c), as applicable.

     (b) Service Contract Act Reconciliation Amounts: Each Plan Year the Adopting
Employers may contribute to the Trust such amounts as determined by the Board of Directors or other
officer to whom authority to determine contributions is delegated by the Board of Directors, in his
or her sole discretion, consisting of the entire amount or any part of any deficiency between
health and welfare and/or pension contributions actually made under a contract covered by the
Service Contract Act and the amount of such contribution or contributions required by a wage
determination issued under the contract. Such amount shall be calculated in accordance with the
formula specified in 29 CFR §4.175 as follows:

The total amount contributed for a month, calendar or contract quarter, or other
specified time is divided by the total hours worked under the contract by service
employees subject to the Act during the period in question to determine an hourly
contribution rate.

The difference between the contribution rate required in the determination and the actual
contribution may be contributed to the Plan on behalf of each Eligible Employee for purposes of
fulfilling the Adopting Employers’ fringe benefit obligations under the Service Contract Act.

4.3 Profit Sharing Contributions.

     The Board of Directors is authorized each year to instruct the Company to make a discretionary
Profit Sharing Contribution. For the Plan Year beginning October 1, 2002, the Board of Directors
has authorized a Profit Sharing Contribution of 2.5% of the Compensation of all Participants
eligible to share in the Profit Sharing Contribution for the Plan Year, 1% to the

- 28 -

 

ESOP Component and 1.5% to the Non ESOP Component. This contribution rate will remain in
effect until changed by resolution of the Board of Directors. The Profit Sharing Contribution
shall be allocated to those eligible Participants in the same ratio as each such Participant’s
Compensation for the Plan Year bears to the total Compensation of all such eligible Participants
for the Plan Year. The Compensation of a Participant who during the Plan Year first becomes
eligible under Section 3.1 to share in the Profit Sharing Contribution shall only include amounts
paid on or after said date. The Board of Directors will designate whether the contribution is to
be allocated to the ESOP Profit Sharing Account or the Non ESOP Profit Sharing Account. The ESOP
Profit Sharing Contribution may be made in cash, Common Stock or a combination thereof at the
discretion of the Board of Directors or any officer of the Company to whom authority to determine
contributions is delegated by the Board of Directors. To the extent that the Profit Sharing
Contribution is made in Common Stock, such shares shall be transferred to the Trustee of the ESOP
Component of the Plan as of the Allocation Date to which they relate and shall be based on the
Current Market Value of Common Stock as of that Allocation Date.

     Regardless of the first five sentences of the first paragraph of this Section 4.3, the Chief
Executive Officer (“CEO”) of the Company or an officer of the Company designated by the CEO may set
up divisions, operations, subsidiaries or similar cohesive groups which have their own contribution
rate for Profit Sharing Contributions during part or all of any Plan Year. The contribution rate
for any unit for Profit Sharing Contributions may be zero. A Participant’s total Profit Sharing
Contribution for the Plan Year will be the sum of the products of his Compensation attributable to
each unit multiplied by the unit’s contribution rate. Any Participant who becomes part of such
unit during a Plan Year shall be eligible to receive the Profit Sharing Contributions, if any, that
he had been eligible to receive before joining such unit

- 29 -

 

until his date of transfer and begin receiving the Profit Sharing Contributions, if any, that
are applicable to such unit as of his date of transfer.

4.4 Matching Contributions.

     Except as otherwise provided in an Exhibit or Supplement to this Plan, each Adopting Employer
shall make Matching Contributions in the following percentages: (i) the Company will match one
hundred percent (100%) of the first three percent (3%) of Compensation deferred by a Participant
and (ii) the Company will match fifty percent (50%) of the next two percent (2%). This Matching
Contribution shall be immediately 100% vested (as set forth in Section 7.1); shall be subject to
the distribution limitations described in Section 401(k)(12)(E)(i) of the Code; and shall be a safe
harbor matching contribution as described in Sections 401(k)(12) and 401(m)(11) of the Code. This
Matching Contribution shall be determined each Plan Year based on the Compensation and total
pre-tax deferrals for the Plan Year. Notwithstanding the foregoing, the Compensation and pre-tax
deferrals of a Participant who during the Plan Year first becomes eligible under Section 3.1 to
receive a Matching Contribution shall only include Compensation paid and pre-tax deferrals made on
or after said date.

     Except as otherwise provided in an Exhibit or Supplement to this Plan, the Matching Contribution
shall be made in either (i) cash or (ii) Common Stock or cash that is invested in Common Stock as
determined by the Board of Directors or officer of the Company to whom the Board of Directors has
delegated the authority to determine contributions under the Plan. To the extent that the matching
contribution is made in Common Stock, such shares shall be transferred to the Trustee of the ESOP
Component of the Plan as of the Allocation Date following the pay date during which the Elective
Contributions to which such Matching Contributions relate would have been paid, and shall be based
on the Current Market Value of Common Stock as of the

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Allocation Date as of the end of the period to which the Matching Contributions relate. To the
extent such Matching Contribution is made in Common Stock or cash that is invested in Common Stock,
it shall be allocated to the Participant’s ESOP Matching Contribution Accounts, and shall remain
invested in Common Stock in accordance with and subject to Section 5.1(b). To the extent the
Matching Contribution is made in unrestricted cash, it will be allocated to the Participant’s Non
ESOP Matching Contribution Account.

4.5 Rollover Contributions.

     (a) Participants may transfer into the Plan Qualifying Rollover Amounts from other plans or
IRAs, subject to the uniform and non-discriminatory policies of the ESOP Committee, the following
terms and conditions and provided that the ESOP Committee, in its sole discretion, agrees to accept
such a Rollover Contribution:

          (1) the transferred funds are received by the Trustee no later than sixty (60) days from
receipt by the Participant of a distribution from the other plan or IRA;

          (2) the Rollover Contributions transferred pursuant to this Section 4.5(a) shall be credited
to either the Participant’s ESOP Rollover Contribution Account or the Participant’s Non ESOP
Rollover Account (at the direction of the Participant and based on the rules and policies of the
ESOP Committee) and will be invested upon receipt by the Trustee; and

          (3) a Rollover Contribution will not be accepted unless (A) the Employee on whose behalf the
Rollover Contribution will be made is either a Participant or an Eligible Employee who has notified
the ESOP Committee that he or she intends to become a Participant as of the first date on which he
or she is eligible therefor, and (B) all required information, including selection of specific
investment accounts, is provided to the Recordkeeper.

- 31 -

 

     (b) For purposes of this Section, the following terms shall have the meanings specified:

          (1) Qualifying Rollover Amounts. Amounts from the following types of plans or IRAs:

(A) a qualified plan described in Section 401(a) or 403(a) of the Code, including after-tax
employee contributions.

(B) an annuity contract described in Section 403(b) of the Code, excluding after-tax employee
contributions.

(C) 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.

(D) an IRA, but only to the extent that the amount would have been includible in gross income of
the Participant if the amount had been distributed to the Participant and not rolled over to any
plan or IRA.

(E) Federal Civil Service Thrift Plan and other government plans, if permitted by law.

          (2) IRA. An individual retirement account or annuity under Section 408(a) or (b) of
the Code, respectively.

4.6 Direct Transfers.

     (a) The Plan shall accept a transfer of assets, including elective transfers in accordance
with Treas. Regs. Section 1.411(d)-4 Q&A-3(b) and transfers in connection with a plan merger,
directly from another plan qualified under Section 401(a) of the Code only if the ESOP Committee,
in its sole discretion, agrees to accept such a transfer. In determining whether to accept such a
transfer, the ESOP Committee shall consider the administrative inconvenience

- 32 -

 

engendered by such a transfer and any risks to the continued qualification of the Plan under
Section 401(a) of the Code. Acceptance of any such transfer shall not preclude the ESOP Committee
from refusing any such subsequent transfers.

     (b) Any transfer of assets accepted under this subsection shall be separately accounted for at
all times and shall remain subject to the provisions of the transferor plan (as it existed at the
time of such transfer) to the extent required by Section 411(d)(6) of the Code as if such
provisions were part of the Plan. In all other respects, however, such transferred assets shall be
subject to the provisions of this Plan. The ESOP Committee may, but is not required to, describe
in Exhibit B to this Plan the special provisions that must be preserved under Section 411(d)(6) of
the Code, if any, following the transfer of assets from another plan in accordance with this
subsection (b).

4.7 Refund of Contributions to the Adopting Employers.

     Notwithstanding the provisions of ARTICLES XIII and XV, if, or to the extent that, any
Adopting Employer’s deductions for contributions made to the Plan are disallowed, such Adopting
Employer will have the right to obtain the return of any such contributions for a period of one (1)
year from the date of disallowance. For this purpose, all contributions are made subject to the
condition that they are deductible under the Code for the taxable year of the Adopting Employers
for which the contributions are made. Furthermore, any contribution made on the basis of a mistake
in fact may be returned to the Adopting Employers within one (1) year from the date such
contribution was made. If the Internal Revenue Service determines that the Plan is not initially
qualified within the meaning of Section 401 of the Code, the assets of the Trust Fund attributable
to any Adopting Employer’s contributions prior to such determination shall be returned to such
Adopting Employer within twelve (12) months after such

- 33 -

 

determination, but only if the application for such qualification is made no later than the
due date (including extensions thereof) of the Adopting Employer’s income tax return for the
taxable year in which the Plan is adopted, or such later date as the Secretary of the Treasury may
prescribe.

4.8 Payment.

     The Adopting Employers shall pay to the Trustee in U.S. currency, or by other property
acceptable to the Trustee, all contributions for each Plan Year within the time prescribed by law,
including extensions granted by the Internal Revenue Service, for filing the federal income tax
return of the Company for its taxable year in which such Plan Year ends. Unless designated by the
Adopting Employers as nondeductible, all contributions made, shall be deemed to be conditioned on
their current deductibility under Section 404 of the Code.

4.9 Limits for Highly Compensated Employees.

     (a) Elective Deferrals, Matching Contributions and Qualified Nonelective Contributions
allocable to the Accounts of Highly Compensated Employees shall not in any Plan Year exceed the
limits specified in this Section. The ESOP Committee may make the adjustments authorized in this
Section to ensure that the limits of subsection (b) (or any other applicable limits) are not
exceeded, regardless of whether such adjustments affect some Participants more than others. This
Section shall be administered and interpreted in accordance with Sections 401(k) and 401(m) of the
Code.

     (b) (1) The Actual Deferral Percentage of the Highly Compensated Employees shall not exceed,
in any Plan Year, the greater of:

(A) one hundred twenty-five percent (125%) of the Actual Deferral Percentage for all other Eligible
Participants; or

- 34 -

 

(B) the lesser of two hundred percent (200%) of the Actual Deferral Percentage for all other
Eligible Participants or the Actual Deferral Percentage for the other Eligible Participants plus
two (2) percentage points.

          (2) The Actual Contribution Percentage of the Highly Compensated Employees shall not exceed,
in any Plan Year, the greater of:

(A) one hundred twenty five percent (125%) of the Actual Contribution Percentage for all other
Eligible Participants; or

(B) the lesser of two hundred percent (200%) of the Actual Contribution Percentage for all other
Eligible Participants or the Actual Contribution Percentage for the other Eligible Participants
plus two (2) percentage points.

          (3) The limitations under Section 4.9(b)(3) shall be modified to reflect any higher
limitations provided by the Internal Revenue Service under regulations, notices or other official
statements.

     (c) The following terms shall have the meanings specified:

          (1) Actual Contribution Percentage. The average of the ratios for a designated group
of Employees (calculated separately for each Employee in the group) of the sum of the Matching
Contributions (other than those treated as part of the Actual Deferral Percentage), Qualified
Nonelective Contributions (other than those treated as part of the Actual Deferral Percentage), and
Elective Deferrals (other than those treated as part of the Actual Deferral Percentage) allocated
for the applicable year on behalf of the Participant, divided by the Participant’s Compensation for
such applicable year. The “applicable year” for determining the Actual Contribution Percentage for
the group of Highly Compensated Employees shall be the current Plan Year. For all other Eligible
Participants, the “applicable year” for determining the

- 35 -

 

Actual Contribution Percentage shall be the immediately preceding Plan Year, unless, in
accordance with the procedures prescribed by the Internal Revenue Service, the ESOP Committee
elects to use the current Plan Year. In the event the ESOP Committee elects to use the current
Plan Year for this purpose for any Plan Year, the ESOP Committee shall so indicate in Exhibit C to
this Plan.

          (2) Actual Deferral Percentage. The average of the ratios for a designated group of
Employees (calculated separately for each Employee in the group) of the sum of the Elective
Deferrals, Qualified Nonelective Contributions and Matching Contributions (that the Company elects
to have treated as part of the Actual Deferral Percentage) allocated for the applicable year on
behalf of a Participant, divided by the Participant’s Compensation for such applicable year. The
“applicable year” for determining the Actual Deferral Percentage for the group of Highly
Compensated Employees shall be the current Plan Year. For all other Eligible Participants, the
“applicable year” for determining the Actual Deferral Percentage shall be the immediately preceding
Plan Year, unless in accordance with the procedures prescribed by the Internal Revenue Service, the
ESOP Committee elects to use the current Plan Year. In the event the ESOP Committee elects to use
the current Plan Year for this purpose for any Plan Year, the ESOP Committee shall so indicate in
Exhibit C to this Plan.

          (3) Compensation. To the extent regulations permit the definition of Compensation in
ARTICLE II to be used, then such definition shall be applied for purposes of this ARTICLE;
provided, however, that to the extent such definition is not so permitted, then Compensation shall
include all compensation required to be counted under Section 414(s) of the Code; provided further,
however, that this definition shall not apply for purposes of the definition of Highly Compensated
Employee in Section 2.34.

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          (4) Eligible Participant. Any Employee of an Adopting Employer who is authorized
under the terms of the Plan to make Elective Deferrals, or have Qualified Nonelective Contributions
allocated to his or her Account for the Plan Year.

     (d) For purposes of determining whether a plan satisfies the Actual Contribution Percentage
test of Section 401(m) of the Code, all Employee and matching contributions that are made under two
(2) or more plans that are aggregated for purposes of Section 401(a)(4) and 410(b) of the Code
(other than Section 410(b)(2)(A)(ii)) of the Code are to be treated as made under a single plan and
that if two (2) or more plans are permissively aggregated for purposes of Section 401(m) of the
Code, the aggregated plans must also satisfy Section 401(a)(4) and 410(b) of the Code as though
they were a single plan.

     (e) In calculating the Actual Contribution Percentage for purposes of Section 401(m) of the
Code, the actual contribution ratio of a Highly Compensated Employee will be determined by treating
all plans subject to Section 401(m) of the Code under which the Highly Compensated Employee is
eligible (other than those that may not be permissively aggregated) as a single plan.

     (f) For purposes of determining whether a plan satisfies the Actual Deferral Percentage test
of Section 401(k) of the Code, all elective contributions that are made under two (2) or more plans
that are aggregated for purposes of Section 401(a)(4) or 410(b) of the Code (other than Section
410(b)(2)(A)(ii)) of the Code are to be treated as made under a single plan and that if two (2) or
more plans are permissively aggregated for purposes of Section 401(k), the aggregated plans must
also satisfy Sections 401(a)(4) and 410(b) as though they were a single plan.

     (g) In calculating the Actual Deferral Percentage for purposes of Section 401(k) of the Code,
the actual deferral ratio of a Highly Compensated Employee will be determined by

- 37 -

 

treating all cash or deferred arrangements under which the Highly Compensated Employee is
eligible (other than those that may not be permissively aggregated) as a single arrangement.

     (h) An elective contribution will be taken into account under the Actual Deferral Percentage
test of Section 401(k)(3)(A) of the Code for a Plan Year only if it is allocated to the Employee as
of a date within that Plan Year. For this purpose, an elective contribution is considered
allocated as of a date within a Plan Year if the allocation is not contingent on participation or
performance of services after such date and the elective contribution is actually paid to the Trust
no later than twelve (12) months after the Plan Year to which the contribution relates.

     (i) The Employer Matching Contribution described in Section 4.4 is designed to meet the safe
harbor requirements of Section 401(k)(12) and 401(m)(11) of the Code. Accordingly, the Plan is
designed to meet the nondiscrimination requirements applicable to Elective Contributions and
Employer Matching Contributions for all Participants. For so long as the Plan satisfies the
aforesaid safe harbor requirements, the testing requirements of this Section 4.9 shall not apply to
those Eligible Participants entitled to receive a Matching Contribution described in Section 4.4.

4.10 Correction of Excess Contributions.

     (a) Excess Contributions shall be corrected as provided in this Section. The ESOP Committee
may also prevent anticipated Excess Contributions as provided in this Section. The ESOP Committee
may use any method of correction or prevention provided in this Section or any combination thereof,
as it determines in its sole discretion. This Section shall be administered and interpreted in
accordance with Sections 401(k) and 401(m) of the Code.

- 38 -

 

     (b) The ESOP Committee may refuse to accept any or all prospective Elective Deferrals to be
contributed by a Participant.

     (c) (1) The Company may, in its sole discretion, elect to contribute, as provided in Section
4.2(a), a Qualified Nonelective Contribution in an amount necessary to satisfy any or all of the
requirements of Section 4.9.

          (2) Qualified Nonelective Contributions that are made for a Plan Year to correct Excess
Contributions shall only be allocated to the Accounts of Participants who are not Highly
Compensated Employees. Such Qualified Nonelective Contributions shall be allocated in accordance
with Section 1.401(k)-2(a)(6)(iv) of the Treasury Regulations. The allocation to any Participant
shall not exceed the limits under Section 415 of the Code.

          (3) Qualified Nonelective Contributions for a Plan Year shall be contributed to the Trust
within twelve (12) months after the close of such Plan Year.

          (4) Qualified Nonelective Contributions shall only be allocated to Participants who receive
Compensation during the Plan Year for which such contribution is made.

     (d) The ESOP Committee may, during a Plan Year, distribute to a Participant (or such
Participant’s Beneficiary if the Participant is deceased), any or all Excess Contributions or
Excess Deferrals (whether Elective Deferrals, Matching Contributions or Qualified Nonelective
Contributions) allocable to that Participant’s Account for that Plan Year, notwithstanding any
contrary provision of the Plan. Such distributions shall be adjusted for income (gain or loss).
The ESOP Committee has the discretion to determine and allocate income using any of the methods set
forth in accordance with Treasury Regulation Section 1.401(k)-2(b)(2)(iv).

     (e) (1) The ESOP Committee may recharacterize any or all Excess Contributions for a Plan Year
as Employee contributions in accordance with the provisions of this subsection.

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Any Excess Contributions that are so recharacterized shall be treated as if the Participant
had elected to instead receive cash Compensation on the earliest date that any Elective Deferrals
made on behalf of the Participant during the Plan Year would have been received had the Participant
originally elected to receive such amount in cash and then contributed such amount as an Employee
contribution. To the extent required by the Internal Revenue Service, however, such
recharacterized Excess Contributions shall continue to be treated as if such amounts were not
recharacterized.

          (2) The ESOP Committee shall report any recharacterized Excess Contributions as Employee
contributions to the Internal Revenue Service and to the affected Participants at such times and in
accordance with such procedures as are required by the Internal Revenue Service. The ESOP
Committee shall take such other actions regarding the amounts so recharacterized as may be required
by the Internal Revenue Service.

          (3) Excess Contributions may not be recharacterized under this subsection more than two and
one-half (21/2) months after the close of the Plan Year to which the recharacterization relates.
Recharacterization is deemed to occur when the Participant is so notified (as required by the
Internal Revenue Service).

          (4) The amount of Excess Contributions to be distributed or recharacterized shall be reduced
by Excess Deferrals previously distributed for the taxable year ending in the same Plan Year and
Excess Deferrals to be distributed for a taxable year will be reduced by Excess Contributions
previously distributed or recharacterized for the Plan beginning in such taxable year.

     (f) (1) The ESOP Committee may distribute any or all Excess Contributions for a Plan Year in
accordance with the provisions of this subsection. Such distribution may only occur

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after the close of such Plan Year and within twelve (12) months of the close of such Plan
Year. In the event of the termination of the Plan, such distribution shall be made within twelve
(12) months after such termination. Such distributions shall be adjusted for income (gain or
loss), including an adjustment for income for the period between the end of the Plan Year and the
date of the distribution. The ESOP Committee has the discretion to determine and allocate income
using any of the methods set forth in accordance with Treasury Regulation Section
1.401(k)-2(b)(2)(iv). A distribution of an Excess Contribution under this subsection may be made
without regard to any notice or consent otherwise required pursuant to Sections 411(a)(11) and 417
of the Code.

          (2) Amounts distributed under this subsection (or other provisions of this Section) shall
first be treated as distributions from the Participant’s subaccounts in the following order:

(A) from the Participant’s Elective Deferrals Account (if such Excess Contribution is attributable
to Elective Deferrals);

(B) from the Participant’s Qualified Nonelective Contribution Account (if such Excess Contribution
is attributable to Qualified Nonelective Contributions); and

(C) from the Participant’s Matching Contribution Account (if such Excess Contribution is
attributable to Matching Contributions).

     (g) (1) The term “Excess Contribution” shall mean, with respect to a Plan Year, the excess of
the Elective Deferrals (including any Qualified Nonelective Contributions and Matching
Contributions that are treated as Elective Deferrals under Sections 401(k)(2) and 401(k)(3) of the
Code) on behalf of eligible Highly Compensated Employees for the Plan Year

- 41 -

 

over the maximum amount of such contributions permitted under Sections 401(k)(2) and 401(k)(3)
of the Code.

          (2) Any distribution of Excess Contributions for a Plan Year shall be made to Highly
Compensated Employees on the basis of the amount of contributions by, or on behalf of, each such
Highly Compensated Employee.

          (3) The amount of Excess Contributions to be distributed or recharacterized shall be reduced
by Excess Deferrals previously distributed for the taxable year ending in the same Plan Year and
Excess Deferrals to be distributed for a taxable year will be reduced by Excess Contributions
previously distributed or recharacterized for the Plan beginning in such taxable year.

4.11 Correction of Excess Deferrals.

     (a) Excess Deferrals shall be corrected as provided in this Section. The ESOP Committee may
also prevent anticipated Excess Deferrals as provided in this Section. The ESOP Committee may use
any method of correction or prevention provided in this Section or any combination thereof, as it
determines in its sole discretion. A distribution of an Excess Deferral under this Section may be
made without regard to any notice or consent otherwise required pursuant to Sections 411(a)(11) and
417 of the Code. This Section shall be administered and interpreted in accordance with Sections
401(k) and 402(g) of the Code.

     (b) The ESOP Committee may refuse to accept any or all prospective Elective Deferrals to be
contributed by a Participant.

     (c) (1) The ESOP Committee may distribute any or all Excess Deferrals to the Participant on
whose behalf such Excess Deferrals were made before the close of the Applicable

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Taxable Year. Distributions under this subsection include income allocable to the Excess
Distribution so distributed, as determined under this subsection.

          (2) Distribution under this subsection shall only be made if all the following conditions are
satisfied:

(A) the Participant seeking the distribution designates the distribution as an Excess Deferral;

(B) the distribution is made after the date the Excess Deferral is received by the Plan; and

(C) the Plan designates the distribution as a distribution of an Excess Deferral.

     (3) The income allocable to the Excess Deferral distributed under this subsection shall be
determined in the same manner as under subsection (d)(3), except that income shall be determined
for the period from the end of the Applicable Taxable Year to the date on which the distribution is
made.

     (d) (1) The ESOP Committee may distribute any or all Excess Deferrals to the Participant on
whose behalf such Excess Deferrals were made after the close of the Applicable Taxable Year.
Distribution under this subsection shall only be made if the Participant timely provides the notice
required under subsection (d)(2) and such distribution is made after the Applicable Taxable Year
and before the first April 15 following the close of the Applicable Taxable Year. Distributions
under this subsection shall include income allocable to the Excess Deferrals so distributed, as
determined in accordance with Treasury Regulation Section 1.401(k)-2(b)(2)(iv).

          (2) Any Participant seeking a distribution of an Excess Deferral in accordance with this
subsection must notify the ESOP Committee of such request no later than the first March 15
following the close of the Applicable Taxable Year. The ESOP Committee may agree to accept
notification received after such date (but before the first April 15 following the close of

- 43 -

 

the Applicable Taxable Year) if it determines that it would still be administratively
practicable to make such distribution in view of the delayed notification. The notification
required by this subsection shall be deemed made if a Participant’s Elective Deferrals to the Plan
in any Plan Year create an Excess Deferral.

          (3) The income allocable to the Excess Deferral distributed under this subsection shall be
determined in the same manner as under Section 4.12(f)(2), except that the term “Excess Deferrals”
shall be substituted for “Excess Contributions” and the term “Applicable Taxable Year” shall be
substituted for “Plan Year.”

     (e) The following terms shall have the meanings specified:

          (1) Applicable Taxable Year. The taxable year (for federal income tax purposes) of
the Participant in which an Excess Deferral must be included in gross income (when made) in
accordance with Section 402(g) of the Code.

          (2) Excess Deferral. A Participant’s Elective Deferrals (and other contributions
limited by Section 402(g) of the Code), for an Applicable Taxable Year that are in excess of the
limits imposed by Section 402(g) of the Code for such Applicable Taxable Year.

4.12 Correction of Excess Aggregate Contributions.

     (a) Excess Aggregate Contributions shall be corrected as provided in this Section. The ESOP
Committee may use any method of correction or prevention provided in this Section or any
combination thereof, as it determines in its sole discretion. This Section shall be administered
and interpreted in accordance with Sections 401(k) and 401(m) of the Code.

     (b) The ESOP Committee may refuse to accept any or all prospective Elective Deferrals to be
contributed to a Participant.

- 44 -

 

     (c) (1) The Company may, in its sole discretion, elect to contribute, as provided in Section
4.2(a), a Qualified Nonelective Contribution in an amount necessary to satisfy any or all of the
requirements of Section 4.9.

          (2) Qualified Nonelective Contributions that are made for a Plan Year to correct Excess
Aggregate Contributions shall only be allocated to the Accounts of Participants who are not Highly
Compensated Employees. Such Qualified Nonelective Contributions shall be allocated in accordance
with Section 1.401(m)-2(a)(5)(ii) of the Treasury Regulations. The allocation to any Participant
shall not exceed the limits under Section 415 of the Code.

          (3) Qualified Nonelective Contributions for a Plan Year shall be contributed to the Trust
within twelve (12) months after the close of such Plan Year.

          (4) Qualified Nonelective Contributions shall only be allocated to Participants who receive
Compensation during the Plan Year for which such contribution is made.

     (d) The ESOP Committee may, during a Plan Year, distribute to a Participant (or such
Participant’s Beneficiary if the Participant is deceased), any or all Excess Aggregate
Contributions allocable to that Participant’s Account for that Plan Year, notwithstanding any
contrary provision of the Plan. Such distribution shall include earnings or losses (if any)
attributable to such amounts, as determined by the ESOP Committee, in accordance with Section
1.401(m)-2(b)(2)(iv).

     (e) (1) The ESOP Committee may forfeit any or all Excess Aggregate Contributions for a Plan
Year in accordance with the provisions of this subsection. The amounts so forfeited shall not
include any amounts that are nonforfeitable under ARTICLE VII.

- 45 -

 

          (2) Any forfeitures under this subsection shall be made in accordance with the procedures for
distributions under subsection (f) except that such amounts shall be forfeited instead of being
distributed.

     (f) (1) The ESOP Committee may distribute any or all Excess Aggregate Contributions for a Plan
Year in accordance with the provisions of this subsection. Such distribution may only occur after
the close of such Plan Year and within twelve (12) months of the close of such Plan Year. Such
distributions shall be specifically designated by the ESOP Committee as a distribution of Excess
Aggregate Contributions. In the event of the complete termination of the Plan, such distribution
shall be made within twelve (12) months after such termination. Such distribution shall include
the income allocable to the amounts so distributed, as determined under this subsection. The ESOP
Committee may make any special allocations of earnings or losses necessary to carry out the
provisions of this subsection. A distribution of an Excess Aggregate Contribution under this
subsection may be made without regard to any notice or consent otherwise required pursuant to
Sections 411(a)(11) and 417 of the Code.

          (2) Amounts distributed under this subsection (or other provisions of this Section) shall
first be treated as distributions from the Participant’s subaccounts in the following order:

(A) from the Participant’s Qualified Nonelective Contribution Account (if such Excess Aggregate
Contribution is attributable to Qualified Nonelective Contributions); and

(B) from the Participant’s Matching Contribution Account (if such Excess Aggregate Contribution is
attributable to Matching Contributions).

     (g) (1) The term “Excess Aggregate Contribution” shall mean, with respect to a Plan Year, the
excess of the aggregate amount of the matching contributions and employee

- 46 -

 

contributions (including any Qualified Nonelective Contributions or elective deferrals taken
into account in computing the Actual Contribution Percentage) actually made on behalf of eligible
Highly Compensated Employees for the Plan Year over the maximum amount of such contributions
permitted under Section 401(m)(2)(A) of the Code.

          (2) The terms “employee contributions” and “matching contributions” shall, for purposes of
this Section, have the meanings set forth in Treas. Reg. §1.401(m)-1(f).

          (3) Any distribution of Excess Aggregate Contributions for a Plan Year shall be made to Highly
Compensated Employees on the basis of the amount of contributions by, or on behalf of, each such
Highly Compensated Employee.

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ARTICLE V

Investment of Accounts

5.1 Election of Investment Funds.

     (a) Except as otherwise prescribed in subsections 5.1(b), (c), (d), and (e) and Section 5.2,
upon enrollment in the Plan, each Participant shall direct that the funds in the Participant’s
Account be invested in increments of one percent (1%) in one or more of the investment options
designated by the ESOP Committee, which may include designated investment funds, specific
investments or both. The investment choices made available shall be sufficient to allow compliance
with Section 404(c) of ERISA.

     (b) Except as otherwise determined by the ESOP Committee or provided herein, all investments
in a Participant’s ESOP Account will be held in Common Stock, subject to the same diversification
rules as set forth in Section 5.2.

     (c) Each Participant shall be entitled to designate the percentage (in multiples of one
percent) of his Elective Contributions that shall be invested in Common Stock under the ESOP
Component of this Plan, subject to the eleven percent (11%) limitation set forth in Section 4.1(a).
To the extent a Participant directs his Elective Contributions to be invested under the ESOP
Component, such contributions shall be accumulated in a short term interest fund in the ESOP
Component of the Plan and shall be converted to Common Stock as of the Valuation Date using the
Common Stock value as of the Valuation Date preceding or as of the conversion date (whichever is
lower), and shall then be allocated to the participant’s ESOP Elective Deferral Account.
Notwithstanding the above, in the event the total Elective Deferrals directed to the ESOP Component
exceed five (5%) of the aggregate payroll expenses since December 20, 2002 (measured as of the end
of each Plan Year) of the Company and each of the subsidiaries of the Company (a) that is an
Adopting Employer, and (b) substantially all of whose employees are

- 48 -

 

eligible to participate in the ESOP Component, the ESOP Committee may choose pursuant to
uniform and nondiscriminatory policies to redirect a portion of each Participant’s Elective
Deferrals that have been directed to the ESOP Component, and any interest credited to such amounts,
to the Participant’s non-ESOP Accounts. Such a reduction would be applied on a pro rata basis to
Elective Deferrals intended to be invested in the ESOP Component during such period.

     (d) Except as otherwise determined by the ESOP Committee or provided herein, a Participant’s
Rollover Contribution Account may be invested in Common Stock at its then Current Market Value only
at or near the time that the Rollover Contribution is accepted and received by the ESOP Committee
or Trustee, and only if the Participant is a new Employee or a rehired Employee. Amounts to be
invested in Common Stock will be initially accumulated in a short term interest fund in the ESOP
Component of the Plan, and will be converted to Common Stock on the Allocation Date coincident with
or next following the date of receipt based on the Current Market Value as of the Allocation Date
coincident with such conversion date. Amounts not invested in the ESOP Rollover Account may be
invested in accordance with Section 5.1(a). Amounts held in the ESOP Rollover Account will be
subject to the diversification rules of Section 5.2. Notwithstanding the foregoing, with respect
to new Employees as a result of a merger, acquisition or consolidation of another entity, where
such new Employee’s Rollover Contribution is received by the Trustee after the Allocation Date next
occurring after such merger, acquisition or consolidation, the ESOP Committee shall have discretion
to decide that such new Employee’s Rollover Contribution be initially accumulated in a short term
interest fund in the ESOP Component of the Plan, and converted to Common Stock at the Allocation
Date coinciding with or next following the receipt of such new Employee’s properly completed

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investment election form, based on the Current Market Value as of the Allocation Date
immediately preceding the date such transferred funds were received; provided, however, that the
foregoing shall apply only if (i) such new Employee’s properly completed investment election form
is received on or before the Date immediately preceding the date such transferred funds were
received, and (ii) the funds are received before the earlier of the date that the Trustee releases
the value of the Common Stock as of the prior Allocation Date or forty-five (45) days following
such Allocation Date.

     (e) In its discretion, the ESOP Committee may from time to time designate new funds and, where
appropriate, preclude investment in existing funds and provide for the transfer of Accounts
invested in those funds to other funds selected by the Participant but if no such election is made,
to a default investment as determined by the ESOP Committee in its discretion.

     (f) Except as otherwise prescribed in subsections 5.1(b), (c), (d) and (e) and Section 5.2, a
Participant’s investment election will apply to the entire Account of the Participant.

     (g) In establishing rules and procedures under Section 5.1, the following shall apply:

          (1) Each Participant, Beneficiary or Alternate Payee shall affirmatively elect to self-direct
the investment of assets in his or her Account, but such election may provide for default
investments in the absence of specific directions from such Participant, Beneficiary or Alternate
Payee. For purposes of any elections to invest in the ESOP Component of the Plan, the Participant,
Beneficiary or Alternate Payee shall be considered a “named fiduciary” of the Plan as described in
Section 402(a)(2) of ERISA.

          (2) The investment directions of a Participant shall continue to apply after that
Participant’s death or incompetence until the Beneficiary (or, if there is more than one

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Beneficiary for that Account, all of the Beneficiaries), guardian or other representatives
provide contrary direction.

          (3) The ESOP Committee may decline to implement investment designations if such investment, in
the ESOP Committee’s judgment:

(A) would result in a prohibited transaction under Section 4975 of the Code;

(B) would generate income taxable to the Trust Fund;

(C) would not be in accordance with the Plan and Trust;

(D) would cause a Fiduciary to maintain the indicia of ownership of any assets of the Trust Fund
outside the jurisdiction of the district courts of the United States other than as permitted by
Section 404(b) of ERISA and Labor Reg. §2550.404(b)-1;

(E) would jeopardize the Plan’s tax qualified status under the Code;

(F) could result in a loss in excess of the amount credited to the Account; or

(G) would violate any other requirements of the Code or ERISA.

          (4) Except as otherwise prescribed in subsections 5.1(b), (c), and (d) and Section 5.2, the
ESOP Committee may establish reasonable restrictions on the frequency with which investment
directions may be given, consistent with Section 404(c) of ERISA.

          (5) The ESOP Committee may establish limits on the use of brokers, investment counsel or other
advisors that may be utilized, including specifying that all investments must be made through a
designated broker or brokers.

          (6) The ESOP Committee may establish limits on the types of investments that are permitted.

     (h) Except as otherwise prescribed in subsections Section 5.1(b), (c), (d), and (e) and
Section 5.2, the ESOP Committee shall establish such rules and procedures as may be advisable

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or necessary to carry out the provisions of this Section, with such rules and procedures being
consistent with Section 404(c) of ERISA.

     (i) The ESOP Committee shall establish such rules and procedures as may be advisable or
necessary to reasonably ensure that all transactions involving the investment funds comply with all
applicable laws, including the securities laws.

     (j) Except as otherwise determined by the ESOP Committee or provided herein, a Participant’s
Account attributable to a direct transfer in accordance with Section 4.6 may be invested in Common
Stock only at or near the time the direct transfer is accepted and received by the ESOP Committee
or Trustee, and only if the Participant is a new Employee. Amounts to be invested in Common Stock
will be initially accumulated in a short term interest fund in the ESOP Component of the Plan, and
will be converted to Common Stock on the Allocation Date coincident with or next following the date
of receipt based on the Current Market Value as of the Allocation Date coincident with such
investment date. Amounts not invested in the ESOP Account may be invested in accordance with
Section 5.1(a). Amounts held in the ESOP Account will be subject to the diversification rules of
Section 5.2. Notwithstanding the foregoing, a Participant’s Account attributable to the money
purchase pension plan account under the Innovative Technology Solutions 401(k) Profit Sharing Plan
& Trust may not be invested in Common Stock. Also notwithstanding the foregoing, with respect to
new Employees as a result of a merger, acquisition or consolidation of another entity, where such
new Employee’s direct transfer is received by the Trustee after the Allocation Date next occurring
after such merger, acquisition or consolidation, the ESOP Committee shall have discretion to decide
that such new Employee’s direct transfer be initially accumulated in a short term interest fund in
the ESOP Component of the Plan, and converted to Common Stock at the Allocation

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Date coinciding with or next following the receipt of such new Employee’s properly completed
investment election form, based on the Current Market Value as of the Allocation Date immediately
preceding the date such transferred funds were received; provided, however, that the foregoing
shall apply only if (i) such new Employee’s properly completed investment election form is received
on or before the Allocation Date immediately preceding the date such transferred funds were
received, and (ii) the funds are received before the earlier of the date that the Trustee releases
the value of the Common Stock as of the prior Allocation Date or forty-five (45) days following
such Allocation Date.

5.2 Diversification.

     Notwithstanding Section 5.1(b), any Participant who has attained age 55 and completed a Period
of Participation of at least ten (10) years shall be permitted to direct that up to twenty-five
percent (25%) of the total number of shares of Common Stock allocated (including any shares of
Common Stock previously diversified, distributed or sold to fund a distribution) to the
Participant’s ESOP Account, as of the September 30 immediately preceding each Plan Year during the
Qualified Election Period (reduced by any shares of Common Stock previously diversified,
distributed or sold to fund a distribution), and rounded to the nearest whole integer may be
invested among the otherwise available investment options under the Plan in accordance with the
provisions of subsection 5.1 (a) above. If a Participant participates at any time during the Plan
Year, for purposes of crediting service for this diversification provision, such Participant will
be credited with one Period of Participation. With respect to a qualified Participant’s final
diversification election, fifty percent (50%) is substituted for twenty-five percent (25%) in
determining the amount subject to the diversification election. Any direction to diversify
hereunder may be made within 90 days after the close of each Plan Year during the Participant’s

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Qualified Election Period, as defined below. Any direction made during the applicable 90-day
period following any Plan Year may be revoked or modified at any time during such 90-day period.
Any such diversification shall be implemented by the 180th day of the Plan Year in which
the Participant’s direction is made or such later date as is administratively necessary or
appropriate. All such directions shall be in accordance with any notice, rulings, or regulations
or other guidance issued by the Internal Revenue Service with respect to Section 401(a)(28)(B) of
the Code. For the purposes of this Section, the term “Qualified Election Period” shall mean the
six (6) Plan Year period beginning with the later of the Plan Year in which the Participant attains
age 55 or completes a Period of Participation of ten (10) years. In addition, subject to the
Company’s satisfaction of its bank loan covenants, beginning in the first quarter of the Plan Year
which begins on October 1, 2007, and then in the first quarter of each year thereafter, a
Participant who had an ESOP Account as of the Closing Date, regardless of his or her Period of
Service with the Company or an Adopting Employer, shall have the right to make a non-cumulative
election to transfer up to 10% of the current value of their ESOP Account to an investment fund
other than the Company Stock Fund. A Participant hired after the Closing Date will have this
diversification right in the first quarter of the Plan Year following a Period of Service with the
Company or an Adopting Employer consisting of at least five full years, provided that the
Employee’s Period of Service with an Adopting Employer before the effective date of adoption as
provided in Exhibit A will not be considered, and provided further that service with a previous
employer will be disregarded. Once the Participant becomes eligible for this special
diversification election, the special diversification election will apply regardless of whether he
or she remains employed.

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5.3 Change in Investment Allocation of Future Deferrals.

     Except as otherwise prescribed in Sections 5.1(b), (c), (d), and (e) and Section 5.2 each
Participant may elect to change the investment allocation of future contributions effective as of
the first Trade Day subsequent to notice to the Recordkeeper by which it is administratively
feasible to make such change. Any changes must be made either in increments of one percent (1%) of
the Participant’s Account and must result in a total investment of one hundred percent (100%) of
the Participant’s Account.

5.4 Transfer of Account Balances Between Investment Funds.

     Except as otherwise prescribed in Sections 5.1(b), (c), (d), and (e) and Section 5.2, each
Participant may elect to transfer all or a portion of the amount in his or her Non ESOP Account
between investment funds effective as of the first Trade Day following notice to the Recordkeeper
by which it is administratively feasible to carry out such transfer. Such transfers must be made
in either one percent (1%) increments of the entire Account and, as of the completion of the
transfer, must result in investment of one hundred percent (100%) of the Non ESOP Account.
Transfers shall be effected by telephone notice to the Recordkeeper.

5.5 Ownership Status of Funds.

     The Trust shall be the owner of record of the Plan assets. The ESOP Committee shall have
records maintained as of the Valuation Date for each investment option allocating a portion of the
investment option to each Participant who has elected that his or her Account be invested in such
investment option. The records shall reflect each Participant’s portion of Common Stock in cash
and unitized shares of stock and shall reflect each Participant’s portion of all other investment
options as may be established by the ESOP Committee in a cash amount.

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5.6 Allocation of Earnings.

     (a) (1) The ESOP Committee, as of each Valuation Date, shall adjust the amounts credited to
the Accounts (including Accounts for persons who are no longer Employees) so that the total of such
Account balances equals the fair market value of the Trust Fund assets as of such Valuation Date.
Except as otherwise provided herein, any changes in the fair market value of the Trust Fund assets
since the preceding Valuation Date shall be charged or credited to each Account in the ratio that
the balance in each such Account as of the preceding Valuation Date bears to the balances in all
Accounts as of that Valuation Date with appropriate adjustments to reflect any distributions,
allocations or similar adjustments to such Account or Accounts since
that Valuation Date. To the extent that separate investment funds are established (as provided in Section 5.1(a)), the
adjustments required by subsection (a)(1) shall be made by applying subsection (a)(1) separately
for each such investment fund so that any changes in the net worth of each such investment fund are
charged or credited to the portion of each Account invested in such investment fund in the ratio
that the portion of each such Account invested in such investment fund as of the preceding
Valuation Date (reduced by any distributions made from that portion of such Account since that
Valuation Date) bears to the total amount credited to such investment funds as of that Valuation
Date (reduced by distributions made from such investment fund since that Valuation Date).

          (3) Interim valuations, in accordance with the foregoing procedure, may be made at such time
or times as the ESOP Committee directs for all or a portion of the investment options.

     (b) The ESOP Committee may, in its sole discretion, direct the Trustee to segregate and
separately invest any Trust Fund assets, including but not limited to, any Trust Fund assets

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that
are attributable to cash dividends on Common Stock pending distribution or allocation of such
assets in accordance with Section 9.13. If any assets are segregated in this fashion, the earnings
or losses on such assets shall be determined apart from other Trust assets and shall be adjusted on
each Valuation Date, or at such other times as the ESOP Committee deems necessary, in accordance
with this Section.

5.7 Acquisition Loans.

     (a) The ESOP Committee may direct the Trustees to incur Acquisition Loans from time to time in
order to acquire Financed Shares or to repay a prior Acquisition Loan. An installment obligation
incurred in connection with the purchase of Financed Shares shall be treated as an Acquisition
Loan. All indebtedness incurred to acquire Financed Shares in a single transaction shall be
treated as one Acquisition Loan. An Acquisition Loan shall be for a specific term, shall bear a
reasonable rate of interest and shall not be payable on demand, except in the event of default.

     (b) Financed Shares acquired with the proceeds from an Acquisition Loan shall be held in a
Loan Suspense Account until allocated to Participants under Section 5.10.

     (c) An Acquisition Loan may be secured by a pledge of the Financed Shares acquired with the
proceeds of the Acquisition Loan (or acquired with the proceeds of a prior Acquisition Loan which
is being refinanced). No other assets of the Trust Fund may be pledged as collateral for an
Acquisition Loan. The lender shall not have recourse against any assets of the Trust Fund other
than any Financed Shares which are subject to such pledge. Any pledge of Financed Shares must
provide for the release of the pledged shares at the time that the Trustee repays any
part of the Acquisition Loan. Such unencumbered shares shall be available for allocation to
Participants’ ESOP Profit Sharing Accounts.

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     (d) If the lender is a party in interest (as defined in ERISA) or a disqualified person (as
defined in the Code), the Acquisition Loan must provide for a transfer of the pledged shares to the
lender only to the extent that the Trust has defaulted on the Acquisition Loan by failing to meet
the required payment schedule.

5.8 Acquisition Loan Payments.

     (a) The Trustee, as directed by the ESOP Committee, shall pay principal and/or interest on any
Acquisition Loan only from: (i) Profit Sharing Contributions paid in cash; (ii) any earnings
attributable to such Profit Sharing Contributions; and (iii) any cash dividends or distributions
(as defined in Code Section 1368) received by the Trust on the Financed Shares purchased with the
proceeds of such Acquisition Loan (whether unallocated or, to the extent permitted by law,
allocated).

     (b) The payments made by the Trustee with respect to an Acquisition Loan for Plan Year must
not exceed the sum of such Profit Sharing Contributions, earnings and dividends (including
distributions (as defined in Code Section 1368)) for that Plan Year and prior Plan Years, less the
amount of such payments for prior Plan Years.

     (c) If any Employer is the lender with respect to an Acquisition Loan, Profit Sharing
Contributions may be paid in the form of cancellation of indebtedness under the Acquisition Loan
with written notice to the ESOP Committee and the Trustee. If the Employer is not the lender with
respect to an Acquisition Loan, the Employer may elect, with written notice to the ESOP Committee
and the Trustee, to make payments on the Acquisition Loan directly to the
lender and to treat such payments as Profit Sharing Contributions or as additional Acquisition
Loans.

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5.9 Sales of Common Stock.

     (a) Subject to the approval of the Board of Directors, the Trustee, as directed by the ESOP
Committee, may sell Common Stock to any person (including an Employer), provided that any such sale
must be made at a price not less than Current Market Value as of the date of the sale.

     (b) In the event the Trustee is unable to make payments of principal and/or interest on an
Acquisition Loan when due (other than a loan from the Company which has no corresponding extension
of credit to the Company by a third party lender), with the approval of the Board of Directors, the
ESOP Committee may direct the Trustee to sell any Financed Shares that have not yet been allocated
to Participants’ ESOP Profit Sharing Accounts or to obtain a new Acquisition Loan in an amount
sufficient to make such payments.

     (c) Notwithstanding any other provision of this Article V, in the event of the sale of the
Company, the termination of the Plan or other Plan’s failure to qualify as an employee stock
ownership plan under Code Section 4975(e)(7), the ESOP Committee may direct the Trustees to apply
the proceeds from the sale of the Financed Shares remaining in the Loan Suspense Account to repay
the Acquisition Loan incurred to purchase the Financed Shares.

     (d) Any sale of Common Stock under this Section must comply with the fiduciary duties
applicable to the ESOP Committee under ERISA Section 404(a)(1).

5.10 Allocations of Financed Shares.

     (a) Any Financed Shares acquired by the Trust shall initially be credited to a Loan Suspense
Account and will be allocated to the ESOP Profit Sharing Accounts of Participants
only as the Trustee makes payments on the Acquisition Loan. The number of Financed Shares to
be released from the Loan Suspense Account for allocation to Participants’ ESOP Profit Sharing

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Accounts for each Plan Year shall be determined by multiplying the number of Financed Shares held
in the Loan Suspense Account immediately before the release for the current Plan Year by a
fraction. The numerator of the fraction shall be the amount of principal and interest paid on the
Acquisition Loan for that Plan Year. The denominator of the fraction shall be the sum of the
numerator plus the total payments of principal and interest on that Acquisition Loan projected to
be paid for all future Plan Years. For this purpose, the interest to be paid or accrued in future
years to be computed by using the interest rate in effect as of the current Allocation Date.

     (b) Pursuant to the terms of the Acquisition Loan (or, at the election of the ESOP Committee
if the Acquisition Loan is silent in this regard), the ESOP Committee may elect to release Financed
Shares from the Loan Suspense Account based solely on the ratio that the payments of principal for
each Plan Year bear to the total principal amount of the Acquisition Loan. This method may be used
only to the extent that:

     (1) the Acquisition Loan provides for annual payments of principal and interest at a
cumulative rate that is not less rapid at any time than level annual payments of such amounts for
ten (10) years;

          (2) interest included in any payment on the Acquisition Loan is disregarded only to the extent
that it would be determined to be interest under standard loan amortization tables; and

          (3) the entire duration of the Acquisition Loan repayment period does not exceed ten (10)
years, even in the event of a renewal, extension or refinancing of the Acquisition Loan.

     (c) In each Plan Year in which assets of the Trust Fund are applied to make payments on an
Acquisition Loan, the Financed Shares released from the Loan Suspense Account in

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accordance with
the provisions of this Section shall be allocated among the ESOP Profit Sharing Accounts of
Participants in the manner determined by the ESOP Committee based upon the source of funds used to
make the payments on the Acquisition Loan (i.e., ESOP Profit Sharing Contributions, earnings
attributable to ESOP Profit Sharing Contributions, cash dividends on Financed Shares allocated to
ESOP Profit Sharing Accounts and/or cash dividends on Financed Shares credited to the Loan Suspense
Account).

     (d) If cash dividends on Financed Shares allocated to a Participant’s ESOP Profit Sharing
Account are used to make payments on an Acquisition Loan, the Financed Shares released from the
Loan Suspense Account shall be allocated to that Participant’s ESOP Profit Sharing Account,
provided, however, that the Current Market Value of the Financed Shares released from the Loan
Suspense Account must be at least equal to the amount of the cash dividends.

5.11 Allocation of Dividends and Distributions on Common Stock.

     (a) Any cash dividends or distributions, as defined in Code Section 1368, received on shares
of Common Stock allocated to Participants’ ESOP Accounts will be allocated to the respective
Accounts of such Participants.

     (b) Any stock dividends received on Common Stock shall be credited to the account to which
such Common Stock was allocated at the time the dividend was declared (e.g., a Participant’s ESOP
Profit Sharing Account or ESOP Matching Contribution Account or the Loan Suspense Account).

     (c) Any cash dividends or distributions received on unallocated shares of Common Stock,
including any Financed Shares credited to the Loan Suspense Account, shall be

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considered to be net
income of the Trust, but will be allocated only to the accounts of Participants who are active
employees.

5.12 Nonallocation.

     No allocation of Common Stock of an S corporation (or other assets in lieu of such Common
Stock) may be made to any “Disqualified Person” (within the meaning of Section 409(p)(4) of the
Code) during any “Nonallocation Year” (within the meaning of Section 409(p)(3) of the Code). Any
allocation of Common Stock made in violation of this edict shall be null and void ab initio. To
the extent permitted by law, the ESOP Committee may adjust the mix of assets in Participants’
Accounts to prevent the occurrence of a Nonallocation Year, by removing Common Stock from the
accounts of Disqualified Persons and replacing it with other assets of identical value taken from
the Accounts of Participants who are not Disqualified Persons, subject to the requirements that:
(1) no such action may diminish the overall value of any Participant’s Accounts, (2) each
Participant shall continue to have the right to receive distribution of his entire Account balance
in the form of Common Stock to the extent otherwise permitted hereunder, and (3) the Accounts of
each Active Participant who is not a Disqualified Person shall be adjusted in the same
proportionate manner as the Accounts of all other Active Participants. In the event that either
applicable law or the absence of assets other than Common Stock in the Accounts of Participants who
are not Disqualified Persons prevents the asset reallocation referred to above, then any such
allocation to a Disqualified Person shall be null and void, and the Common Stock in issue shall be
reallocated among the Accounts of Participants who are not Disqualified Persons in the ratio of
their compensation in the Plan Year involved.

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ARTICLE VI

Voting and Tendering of Stock

6.1 Voting of Common Stock

     (a) The voting of Common Stock held by the Trust shall be subject to the provisions of ERISA
and the following provisions, to the extent such provisions are not inconsistent with ERISA:

          (1) With respect to any corporate matter that involves the voting of Common Stock with respect
to the approval or disapproval of any corporate merger or consolidation, recapitalization,
reclassification, liquidation, dissolution, sale of substantially all of the assets of a trade or
business, or such other transactions that may be prescribed by regulation (and, if the Company has
a registration-type class of securities, all other shareholder voting issues), each Participant may
be entitled to direct the Trustee as to the exercise of any shareholder voting rights attributable
to shares of Common Stock then allocated to his ESOP Accounts, but only to the extent required by
Sections 401(a)(22) and 409(e)(3) of the Code and the regulations there under. For purposes of the
foregoing sentence, each Participant shall be a named fiduciary of the Plan as described in Section
402(a)(2) of ERISA. The ESOP Committee shall have the sole responsibility for determining when a
corporate matter has arisen that involves the voting of Common Stock under this provision. If a
Participant is entitled to so direct the Trustee, all allocated Common Stock as to which such
instructions have been received (which may include an instruction to abstain) shall be voted by the
Trustee in accordance with such instructions, provided that the Trustee may vote the shares as it
determines is necessary to fulfill its fiduciary duties under ERISA. The Trustee shall vote any
shares as to which no voting instructions have been received at the direction of the ESOP
Committee, subject to its fiduciary duties under ERISA.

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          (2) In all other circumstances, the Trustee shall vote all shares of Common Stock as directed
by the ESOP Committee.

6.2 Tendering of Common Stock

     (a) The tendering of Common Stock held by the Trust shall be subject to the provisions of
ERISA and the following provisions, to the extent such provisions are not inconsistent with ERISA:

          (1) In the event of a tender offer or other offer to purchase shares of Common Stock held by
the Trust, the Trustee shall tender or sell the shares as directed by each Participant with respect
to shares of Common Stock then allocated to his ESOP Accounts, subject to the fiduciary duties
under ERISA. In carrying out its responsibilities under this Section, the Trustee may rely on
information furnished to it by the ESOP Committee, including the names and current addresses of
Participants, the number of shares of Common Stock allocated to their ESOP Accounts, and the number
of shares of Common Stock held by the Trust (if any) that have not yet been allocated. The Trustee
shall vote any shares as to which no voting instructions have been received at the direction of the
ESOP Committee, subject to its fiduciary duties under ERISA.

          (2) In all other circumstances, the Trustee shall tender all shares of Company Stock as
directed by the ESOP Committee.

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ARTICLE VII

Vesting

7.1 Elective Deferral, Rollover Contribution, Qualified Nonelective Contribution and Matching
Contribution Accounts.

     Except as otherwise provided in an Exhibit or Supplement to this Plan, each Participant shall
have a nonforfeitable right to all amounts in the Participant’s Elective Deferral, Rollover
Contribution, Qualified Nonelective Contribution and Matching Contribution Accounts.

7.2 Profit Sharing Contribution Accounts.

     (a) Except as otherwise provided in an Exhibit or Supplement to this Plan, each Participant
shall have a nonforfeitable right to his or her ESOP Profit Sharing Account and Non ESOP Profit
Sharing Account in accordance with the following:

	 	 	 	 	 
	(1)Period of Service	 	Vested Interest
	Less than 2 years
	 	 	0	%
	with two (2) years
	 	 	25	%
	with three (3) years
	 	 	50	%
	with four (4) years
	 	 	75	%
	with five (5) years
	 	 	100	%

          (2) if earlier, 100% vested upon the Participant’s death while an Employee, Disability while
an Employee or attainment of Normal Retirement Age while an Employee.

     (b) For purposes of this Section 7.2, all service as a Leased Employee, if any, shall be taken
into account for purposes of determining a Participant’s nonforfeitable right to his or her Profit
Sharing Account, even though Leased Employees are not eligible to participate in the Plan.

7.3 Forfeitures.

     (a) In the event that a Participant incurs a Severance from Service before attaining a
nonforfeitable right to his or her entire ESOP Profit Sharing Account, the portion of his or her
ESOP Profit Sharing Account that is forfeitable will be forfeited as of the earlier of: (1) the
date on which the Participant incurs a Period of Severance of five (5) consecutive years; or (2)
the

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Allocation Date coinciding with or next following the date on which the vested portion of the
Participant’s ESOP Profit Sharing Accounts is distributed in accordance with ARTICLE IX provided
the participant is not rehired before such Allocation Date. For purpose of the preceding sentence,
if a Participant’s vested balance in his ESOP Profit Sharing Account is zero, he shall be deemed to
have received a distribution of his vested ESOP Profit Sharing Account balance as of the date he
incurred a Severance from Service. In the event that a Participant incurs a Severance from Service
before attaining a nonforfeitable right to his or her entire Non ESOP Profit Sharing Account, the
portion of his or her Non ESOP Profit Sharing Account that is forfeitable will be forfeited as soon
as it is administratively feasible immediately following the earlier of: (A) the date on which the
Participant incurs a Period of Severance of five (5) consecutive years; or (B) the date on which
the vested portion of the Participant’s Non ESOP Profit Sharing Account is distributed in
accordance with ARTICLE IX. For purpose of the preceding sentence, if a Participant’s vested
balance in his Non ESOP Profit Sharing Account is zero, he shall be deemed to have received a
distribution of his vested Non ESOP Profit Sharing Account balance as of the date he incurred a
Severance from Service. Forfeitures from the Non ESOP and ESOP Components of the Plan will be used
to reduce future contributions of the Adopting Employers to the Plan or to pay administrative
expenses.

     (b) If, in connection with his or her Severance from Service, a Participant received a
distribution of a portion of his or her entire Account when he or she did not have a nonforfeitable
right to his or her entire Account, the portion of his or her Account that was forfeited,
unadjusted by any subsequent gains or losses, shall be restored if he or she again becomes an
Employee before incurring a Period of Severance of five (5) consecutive years.

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7.4 Break in Service Rules.

     (a) Periods of Service. In determining the length of a Period of Service, the ESOP
Committee shall include all Periods of Service, except the following Periods of Service shall not
be taken into account:

          (1) in the case of a Participant who has never had a vested Account balance, the Period of
Service before any Period of Severance which equals or exceeds five (5) consecutive years; and

          (2) in the case of a Participant who has had a vested account balance and who has incurred a
Period of Severance which equals or exceeds five (5) years, the Period of Service after such Period
of Severance shall not be taken into account for purposes of determining the nonforfeitable
interest of such Participant in the Profit Sharing Contributions allocated to his or her Account
before such Period of Severance.

     (b) Periods of Severance. In determining the length of a Period of Severance, the
ESOP Committee shall include any period of time beginning on an Employee’s Severance from Service
Date and ending on the date on which he or she is next credited with an Hour of Service, provided
that such Hour of Service is not credited within the twelve- (12) consecutive month period
following such Severance from Service Date.

     (c) Other Periods. In making the determinations described in subsections (a) and (b)
of this Section, any period in excess of six (6) months of an Authorized Leave of Absence shall be
regarded as neither a Period of Service nor a Period of Severance.

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ARTICLE VIII

In-Service Withdrawals

8.1 Elective Deferrals and Qualified Nonelective Contributions.

     (a) Subject to the terms and conditions prescribed in Section 8.3, a Participant may withdraw
all or a portion of his or her (1) Non ESOP Elective Deferral Account or Qualified Nonelective
Contribution Account on or after attainment of age fifty-nine and one-half (591/2), or (2) ESOP and
Non ESOP Rollover Accounts at any time, as long as the hardship criteria are met; (3) ESOP and Non
ESOP Elective Deferral Accounts (excluding earnings on Elective Deferrals) in the event of a
hardship. In addition, subject to the terms and conditions prescribed in Section 8.3, a
Participant who has attained at least age fifty-nine and one-half (591/2) may elect to withdraw all
or a portion of his or her Non-ESOP ITSC Elective Deferral Account (as described in Exhibit B).

     (b) In order to be entitled to a hardship withdrawal under this Section, a Participant must
satisfy the requirements of both subsection (c) and subsection (d). Whether a Participant is
entitled to a withdrawal under this Section is to be determined by the ESOP Committee in accordance
with nondiscriminatory and objective standards.

     (c) (1) A Participant will be deemed to have experienced an immediate and heavy financial need
necessary to satisfy the requirements of this subsection if the withdrawal is on account of:

(A) medical expenses described in Section 213(d) of the Code incurred by the Participant, the
Participant’s spouse or any dependents of the Participant;

(B) the purchase (excluding mortgage payments) of a principal residence of the Participant;

(C) payment of tuition for the next twelve (12) months of post-secondary education for the
Participant or his or her spouse, children or dependents;

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(D) the need to prevent the eviction of the Participant from his or her principal residence or the
foreclosure on the mortgage of the Participant’s principal residence;

(E) payment for burial and/or funeral expenses for the Participant’s parent, spouse, child or other
dependent (as defined in Section 152 of the Code, without regard to Section 152(d)(1)(B));

(F) expenses for the repair of damage to a Participant’s principal residence that would qualify as
a casualty deduction under Code Section 165 on the Participant’s tax return (without regard to
whether the loss exceeds the adjusted gross income threshold); or

(G) other circumstances that the ESOP Committee determines constitutes an immediate and heavy
financial need.

     (d) (1) A withdrawal under this subsection will be deemed necessary to satisfy an immediate
and heavy financial need of the Participant if it satisfies the requirements of this subsection.
To the extent the amount of the withdrawal would be in excess of the amount required to relieve the
financial need of the Participant (which amount may include any amounts necessary to pay any
federal, state, or local income taxes or penalties reasonably anticipated to result from the
withdrawal) or to the extent such need may be satisfied from other resources that are reasonably
available to the Participant, such withdrawal shall not satisfy the requirements of this
subsection. For purposes of this subsection, a Participant’s resources shall be deemed to include
those assets of his or her spouse or minor children that are reasonably available to the
Participant.

          (2) A withdrawal may be treated as necessary to satisfy a financial need if the ESOP Committee
reasonably relies upon the Participant’s representation that the need cannot be relieved:

(A) through reimbursement or compensation by insurance or otherwise;

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(B) by reasonable liquidation of the Participant’s assets to the extent such liquidation would not
itself cause an immediate and heavy financial need;

(C) by cessation of Elective Deferrals under the Plan for at least six (6) months after receipt of
the hardship withdrawal; or

(D) by other distributions or nontaxable (at the time of the loan) loans from plans maintained by
the Adopting Employers or by any other employer or by borrowing from commercial sources on
reasonable commercial terms.

     (e) If a Participant receives a withdrawal for reasons of financial hardship, the Participant
may not make any Elective Deferrals during the six (6) months immediately subsequent to the date of
distribution.

8.2 Rollover Contributions.

     Subject to the terms and conditions prescribed in Sections 8.1 (a)(2) and 8.3 (including but
not limited to the restriction noted in 8.3(e)), a Participant may withdraw all or a portion of his
or her Rollover Contribution.

8.3 General Terms and Conditions.

     All in-service withdrawals are subject to the following terms and conditions:

     (a) In-service withdrawals of less than five hundred dollars ($500) will not be permitted.

     (b) In determining the amount of any in-service withdrawal, the Participant’s Non ESOP Account
shall be valued as of the Valuation Date coinciding with the date the request for an in-service
withdrawal is processed. An in-service withdrawal from the Participant’s ESOP Account shall be
valued based on the Current Market Value of Common Stock as of the Valuation Date coinciding with
or immediately preceding the withdrawal; provided, however,

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that the ESOP Committee may order an interim valuation performed as of any date (including
retroactively), which valuation shall be used.

     (c) Payment of the amount withdrawn will be made as soon as administratively feasible after
the effective date of the withdrawal.

     (d) In-service withdrawals from a Participant’s Account will generally be made in cash.

     (e) Funds for in-service withdrawals will be taken on a pro-rata basis against the
Participant’s investment balances in his or her Non ESOP Account. If the amount of the withdrawal
cannot be satisfied from the Non ESOP Account, the remainder will then be taken pro rata from the
balances in the ESOP Account.

     (f) In-service withdrawals may not be redeposited in the Plan.

     (g) The ESOP Committee may adopt such other rules and procedures as it deems necessary, in its
sole discretion, to properly administer the in-service withdrawal provisions in this ARTICLE.

8.4 Hurricane Katrina Distribution.

     (a) The following defined terms shall apply for purposes of this Section 8.4.

          (i) “Eligible Contributions” means ESOP and Non-ESOP Elective Deferral Accounts
(excluding earnings credited after December 31, 1988), ESOP and Non-ESOP Rollover Accounts,
ESOP and Non-ESOP HFA Pre-Tax Deferral Accounts (excluding earnings credited after December
31, 1988), ESOP and Non-ESOP HFA Rollover Accounts, ESOP and Non-ESOP ITSC Pre-Tax Deferral
Accounts (excluding earnings credited after December 31, 1988), ESOP and Non-ESOP ITSC
Rollover Accounts, Non-ESOP JJMA Pretax Account (excluding earnings credited after December
31, 1988),

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Non-ESOP JJMA Rollover Account, Non-ESOP JJMA Matching Contribution Account, Non-ESOP
JJMA Transfer Account, Non-ESOP JJMA Base Match Account, and Non-ESOP JJMA Discretionary
Match Account.

     (ii) “Hurricane Katrina Distribution” means a distribution to a Qualified Individual
pursuant to this Section 8.4. A Hurricane Katrina Distribution must be made on or after
August 25, 2005 and before January 1, 2007. After December 31, 2006, Hurricane Katrina
Distributions will no longer be available under the Plan.

     (iii) “Qualified Individual” means a Participant or Beneficiary (A) whose principal
place of abode on August 28, 2005 was located in Louisiana, Mississippi, Alabama or Florida,
and (B) who sustained an economic loss by reason of Hurricane Katrina. For this purpose, an
individual’s principal place of abode is where the individual lives unless temporarily
absent due to special circumstances. A temporary absence from the household due to special
circumstances, such as illness, education, business, vacation, or military service, will not
change an individual’s principal place of abode. If an individual’s principal place of
abode was in Louisiana, Mississippi, Alabama or Florida immediately before August 28, 2005,
and the individual evacuated because of Hurricane Katrina, the individual’s principal place
of abode will be considered to be in Louisiana, Mississippi, Alabama or Florida on August
28, 2005. The Committee shall rely on an individual’s certification that he or she is a
Qualified Individual unless the Committee has actual knowledge to the contrary.

     (b) A Qualified Individual may request a Hurricane Katrina Distribution of all or a portion of
his or her Eligible Contributions; provided, however, in no event shall the total of all such
distributions to a Qualifying Individual exceed $100,000. The Committee may establish

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such rules, impose such requirements and require the completion of such forms and documents
(in electronic or paper formats), in its sole discretion, and applied in a nondiscriminatory and
objective basis, in order to administer this Section 8.4.

     (c) If a Participant who is a Qualifying Individual receives a Hurricane Katrina Distribution
pursuant to this Section 8.4, he or she may re-contribute such distribution to the Plan provided
such amount is re-contributed within three years of the date the Hurricane Katrina Distribution is
made. Any amount re-contributed pursuant to this paragraph shall be credited to such Participant’s
ESOP and Non-ESOP Rollover Contributions Account in accordance with the source (ESOP or Non-ESOP)
of the original Hurricane Katrina Distribution.

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ARTICLE IX

Distribution of Benefits

9.1 General.

     (a) Except as otherwise provided in an Exhibit or Supplement to this Plan (or otherwise
required by Section 4.6(b)), all benefits payable under this Plan shall be paid in the manner and
at the times specified in this ARTICLE. Special distribution rules with respect to Common Stock
are set forth in Section 9.14 and Section 9.15.

     (b) All payment methods and distributions shall comply with the requirements of Sections
401(a)(9) and 401(a)(14) of the Code and the regulations thereunder, and, if necessary, shall be
interpreted to so comply. All distributions shall comply with the incidental death benefit
requirement of Section 401(a)(9)(G) of the Code. Distributions shall comply with the final
regulations in Treas. Regs. §§ 1.401(a)(9)-1 through 1.401(a)(9)-9 and with any other provisions
reflecting Section 401(a)(9) of the Code that are prescribed by the IRS in revenue rulings, notices
and other guidance published in the Internal Revenue Bulletin. The provisions of the Plan
reflecting Section 401(a)(9) of the Code override any distribution provisions in the Plan
inconsistent with Section 401(a)(9) of the Code.

9.2 Commencement of Benefits.

     (a) Except as otherwise provided in this Section 9.2, or in Sections 9.14 and 9.15, a
Participant (or Beneficiary) shall be entitled to commence distribution of the nonforfeitable
portion of his or her Account after a Severance from Service, Retirement, Disability or death.

     (b) Except as otherwise provided in this Section 9.2, or in Sections 9.14 and 9.15, payment of
benefits to a Participant (or Beneficiary) shall commence within a reasonable period of time
following the Participant’s Severance from Service, Retirement, Disability or death.

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     (c) Except as otherwise required by Section 9.2(f), if the value of the nonforfeitable portion
of the Participant’s Account exceeds the maximum amount prescribed in Section 411(a)(11) of the
Code, no portion of his Account may be distributed to him before he attains the later of Normal
Retirement Age or age 62 without his written consent. Such written consent must be obtained no
more than one hundred and eighty (180) days (ninety (90) days for distributions made on or before
December 31, 2006) before the commencement of the distribution. The value of the nonforfeitable
portion of the Participant’s Account shall be determined without regard to that portion of the
Account that is attributable to rollover contributions (and the 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.
Notwithstanding the preceding provisions of this subsection (c), all distributions to a
Participant’s Beneficiary shall commence within a reasonable period of time following the
Participant’s death (no consent of the Beneficiary is required); provided, however, that if the
Beneficiary is the Participant’s Surviving Spouse, then such Surviving Spouse may elect to defer
commencement of distributions for a period of up to five years from the date of death of the
Participant.

     (d) Unless a Participant elects otherwise, distribution to the Participant shall commence no
later than sixty (60) days after the close of the Plan Year in which the latest of the following
events occurs:

          (1) attainment by the Participant of Normal Retirement Age;

          (2) the tenth (10th) anniversary of the date on which Participant commenced participation in
the Plan; or

          (3) Participant’s Severance from Service.

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     (e) Distribution of the nonforfeitable portion of a Participant’s Account shall generally
commence in accordance with the general provisions of this Section 9.2, but in no event before the
earliest of the following events:

          (1) The Participant’s severance from employment within the meaning of Section
401(k)(2)(B)(i)(I) of the Code (as then effective). Effective for distributions commencing after
December 31, 2001, the “severance from employment” standard shall apply to any distributions after
such date regardless of when the severance from employment occurred.

          (2) The Participant’s attainment of age fifty-nine and one-half (59-1/2).

          (3) The termination of the Plan without establishment or maintenance of another defined
contribution plan (other than an employee stock ownership plan).

     (f) A Participant who has attained age seventy and one-half (701/2) and who is subject to the
mandatory distribution requirements of Section 401(a)(9) of the Code shall receive annual
distributions in the minimum amount necessary to comply with Section 401(a)(9) of the Code.

     (g) If a Participant dies before the time when distribution is considered to have commenced in
accordance with applicable regulations, then any remaining nonforfeitable portion of the
Participant’s Account shall be distributed within five (5) years after the Participant’s death. If
a distribution is considered to have commenced in accordance with the applicable regulations before
the Participant’s death, the remaining nonforfeitable portion of the Participant’s Account shall be
distributed at least as rapidly as under the method of distribution being used as of the date of
the Participant’s death. For purposes of this Section 9.2(g), the Surviving Spouse of the
Participant will be treated as the Participant if: the Surviving Spouse is the Beneficiary of the
Participant’s Account; the Surviving Spouse dies after the Participant; and distributions had not
yet commenced to the Surviving Spouse.

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9.3 Form of Distribution.

     (a) Except to the extent otherwise provided in the Plan, distributions under the Plan shall be
made in the form of a lump sum in substantially equal, annual installments over a period not
exceeding five years (or such greater number of installments as determined under Section 9.14(c)),
or a combination thereof, at the option of the ESOP Committee in accordance with a
nondiscriminatory and uniform policy. For amounts distributed from the Non-ESOP Component of the
Plan, only lump sum distributions are available.

     (b) Distribution of the nonforfeitable portion of the Participant’s ESOP Account shall be made
in cash or in-kind, at the election of the ESOP Committee, provided, however, that the ESOP
Committee shall notify the Participant of his or her right (subject to the exceptions contained in
Section 9.14(d)) to demand distribution of his or her ESOP Account entirely in whole shares of
Company Stock (with only the value of any fractional share paid in cash).

     (c) A Participant shall be notified of his rights under this Section no less than thirty (30)
days and no more than one hundred and eighty (180) days (ninety (90) days for distributions made on
or before December 31, 2006) before a distribution is made. Written consent of a Participant to a
distribution (if required) may not be made before he receives such notice and must not be made more
than one hundred and eighty (180) days (ninety days for distributions made on or before December
31, 2006) before a distribution is made.

9.4 Determination of Amount of Distribution.

     In determining the amount of any distribution hereunder, the nonforfeitable portion of a
Participant’s Non ESOP Account shall be valued as of the Valuation Date coinciding with the date
the request for a distribution is processed. In valuing a Participant’s ESOP Accounts or Common
Stock, the Current Market Value as of the Valuation Date coinciding with or preceding

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the distribution or installment shall be used; provided, however, that the ESOP Committee may
order an interim valuation performed as of any date (including retroactively), which valuation
shall be used.

9.5 Direct Rollovers.

     (a) A Participant may elect that all or any portion of a distribution that would otherwise be
paid as an Eligible Rollover Distribution shall instead be transferred as a Direct Rollover.

     (b) The ESOP Committee shall determine and apply rules and procedures as it deems reasonable
with respect to Direct Rollovers. The ESOP Committee may change such rules and procedures from
time to time and shall not be bound by any previous rules and procedures it has applied.

     (c) The following terms shall have the meanings specified:

          (1) Direct Rollover. An available distribution that is paid directly to an Eligible
Retirement Plan for the benefit of the distributee.

          (2) Distributee. A Participant or former Participant. In addition, the Participant’s
or former Participant’s Surviving Spouse or former spouse who is the Alternate Payee under a
Qualified Domestic Relations Order, as defined in Section 414(p) of the Code, are Distributees with
regard to the interest of the spouse or former spouse.

          (3) Eligible Retirement Plan. An individual retirement account described in Section
408(a) of the Code, an individual retirement annuity (other than an endowment contract) described
in Section 408(b) of the Code, a qualified trust described in Section 401(a) of the Code if such
qualified trust is part of a plan that permits acceptance of Direct Rollovers or an annuity plan
described in Section 403(a) of the Code. In the case of a Direct Rollover for the benefit of

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the spouse or former spouse of a Participant, the term “Eligible Retirement Plan” shall only
include an individual retirement account described in Section 408(a) of the Code and an individual
retirement annuity (other than an endowment contract) described in Section 408(b) of the Code. The
term “Eligible Retirement Plan” shall also include an annuity contract described in Section 403(b)
of the Code and an eligible plan under Section 457(b) of the Code which is maintained by a state,
political subdivision of a state, or any agency or instrumentality of a state or political
subdivision of a state and which agrees to separately account for amounts transferred into such
plan from this Plan. In the case of a Direct Rollover for the benefit of the surviving spouse of a
Participant, or a spouse or former spouse who is the alternate payee under a qualified domestic
relations order, as defined in Section 414(p) of the Code, the term “Eligible Retirement Plan”
shall include all of the plans and arrangements otherwise described in this subsection (3).

          (4) Eligible Rollover Distribution. Any distribution under the Plan to a Participant,
a Participant’s spouse or a Participant’s former spouse, except for the following:

(A) Any distribution to the extent the distribution is required under Section 401(a)(9) of the
Code.

(B) The portion of any distribution that is not includable in gross income (determined without
regard to the exclusion for net unrealized appreciation described in Section 402(e)(4) of the
Code), except the term “Eligible Rollover Distribution” shall include the portion of a distribution
that consists of after-tax employee contributions which are not includable in gross income;
provided, that such after-tax employee contributions can only be transferred 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

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such distribution which is includable in gross income and the portion of such distribution which is
not so includable.

(C) Returns of elective deferrals described in Treas. Reg. §1.415-6(b)(6)(iv) that are returned as
a result of the limitations under Section 415 of the Code.

(D) Corrective distributions of excess contributions and excess deferrals under qualified cash or
deferred arrangements as described in Treas. Reg. §1.401(k)-1(f)(4) and §1.402(g)-1(e)(3),
respectively, and corrective distributions of excess aggregate contributions as described in Treas.
Reg. §1.401(m)-1(e)(3), together with the income allocable to these corrective distributions.

(E) Loans treated as distributions under Section 72(p) of the Code and not excepted by Section
72(p)(2) of the Code.

(F) Loans in default that are deemed distributions.

(G) Dividends paid on employer securities as described in Section 404(k) of the Code.

(H) The costs of life insurance coverage.

(I) Any distribution which is made upon hardship of the Participant.

(J) Similar items designated by the Internal Revenue Service in revenue rulings, notices, and other
guidance of general applicability.

9.6 Notice and Payment Elections.

     (a) The ESOP Committee shall provide Participants or other Distributees of Eligible Rollover
Distributions with a written notice designed to comply with the requirements of Section 402(f) of
the Code. Such notice shall be provided within a reasonable period of time before making an
Eligible Rollover Distribution.

     (b) Any elections concerning the payment of benefits under this ARTICLE shall be made on a
form prescribed by the ESOP Committee. The Participant or other Distributee shall

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submit a completed form to the ESOP Committee at least thirty (30) days before payment is
scheduled to commence, unless the ESOP Committee agrees to a shorter time period. Any election
made under this Section shall be revocable until thirty (30) days before payment is scheduled to
commence.

     (c) An election to have payment made in a Direct Rollover shall only be valid if the
Participant or other Distributee provides adequate information to the ESOP Committee for the
implementation of such Direct Rollover and such reasonable verification as the ESOP Committee may
require that the transferee is an Eligible Retirement Plan.

9.7 Qualified Domestic Relations Orders.

     (a) Notwithstanding any contrary provision of the Plan, payments shall be made in accordance
with any judgment, decree or order determined to be a Qualified Domestic Relations Order.

     (b) (1) If the Plan receives a Domestic Relations Order, the ESOP Committee shall promptly
notify the Participant and each Alternate Payee of the receipt of such order and of the Plan’s
procedures for determining whether such order is a Qualified Domestic Relations Order. The ESOP
Committee shall, within a reasonable period after receipt of such order, determine whether it is a
Qualified Domestic Relations Order and notify the Participant and each Alternate Payee of that
determination.

          (2) During any period in which the issue of whether a Domestic Relations Order is a Qualified
Domestic Relations Order is being determined, the ESOP Committee shall separately account for the
amounts that would have been payable to the Alternate Payee during such period if the order had
been determined to be a Qualified Domestic Relations Order. The

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ESOP Committee shall separately account for such amounts first from a Participant’s Non-ESOP
Accounts, and then from a Participant’s ESOP Accounts.

     (c) (1) A Domestic Relations Order meets the requirements of this subsection only if such
order clearly specifies the following:

(A) the name and last known mailing address (if any) of the Participant and the name and mailing
address of each Alternate Payee covered by the order;

(B) the amount or the percentage of the Participant’s benefits to be paid by the Plan to each such
Alternate Payee or the manner in which such amount or percentage is to be determined;

(C) the number of payments or period to which such order applies; and

(D) each plan to which such order applies.

          (2) A Domestic Relations Order meets the requirements of this subsection only if such order
does not:

(A) require the Plan to provide any type or form of benefit or any option not otherwise provided
under the Plan;

(B) require the Plan to provide increased benefits (determined on the basis of actuarial value);
and

(C) does not require the payment of benefits to an Alternate Payee that is required to be paid to
another Alternate Payee under another order previously determined to be a Qualified Domestic
Relations Order.

     (d) A domestic relations order shall not be treated as failing to meet the requirements of
Section 9.7(c)(2)(A) solely because such order requires that payment of benefits be made to an
Alternate Payee:

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          (1) in the case of any payment before a Participant has separated from service, on or after
the date on which the Participant attains (or would have attained) the Earliest Retirement Date;

          (2) as if the Participant had retired on the date on which such payment is to begin under such
order (but taking into account only the present value of the benefits actually accrued and not
taking into account the present value of any employer subsidy for early retirement); and

          (3) in any form in which such benefits may be paid under the Plan to the Participant (other
than in the form of a qualified joint and survivor annuity with respect to the Alternate Payee and
his or her subsequent spouse).

     (e) A domestic relations order shall not be treated as failing to meet the requirements of
Section 9.7(c)(2)(A) solely because such order requires that payment of benefits be made to an
Alternate Payee at a date before the Participant is entitled to receive a distribution. Such
distribution shall be made to such Alternate Payee notwithstanding any contrary provision of the
Plan; provided, however, that such distribution will be made first from a Participant’s Non ESOP
Accounts, and then from a Participant’s ESOP Accounts.

     (f) The following terms shall have the meanings specified:

          (1) Alternate Payee. Any spouse, former spouse, child or other dependent of a
Participant who is recognized by a Domestic Relations Order as having a right to benefits under the
Plan with respect to such Participant.

          (2) Domestic Relations Order. A judgment, decree or order relating to child support,
alimony or marital property rights, as defined in Section 414(p)(1)(B) of the Code.

          (3) Earliest Retirement Date. The earlier of:

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(A) the date on which the Participant is entitled to a distribution under the Plan; or

(B) the later of:

               (i) the date the Participant attains age fifty (50); or

               (ii) the earliest date on which the Participant could begin receiving benefits under the Plan
if the Participant separated from service.

          (4) Qualified Domestic Relations Order. A Domestic Relations Order that satisfies the
requirements of subsection (c) and Section 414(p)(1)(A) of the Code.

     (g) If an Alternate Payee entitled to payment under this Section is the spouse or former
spouse of a Participant and payment will otherwise be made in an Eligible Rollover Distribution,
then such spouse or former spouse may elect that all, or any portion, of such payment shall instead
be transferred as a Direct Rollover. Such Direct Rollover shall be governed by the requirements of
Section 9.5.

     (h) If a Domestic Relations Order directs that payment be made to an Alternate Payee before
the Participant’s Earliest Retirement Date and such Domestic Relations Order otherwise qualifies as
a Qualified Domestic Relations Order, then the Domestic Relations Order shall be treated as a
Qualified Domestic Relations Order and such payment shall be made to the Alternate Payee, even
though the Participant is not entitled to receive a distribution under the Plan because he or she
continues to be an Employee of the Employer; provided however, that this early payment provision
will apply such that any early payment must first be applied to a Participant’s Non ESOP Account;
and when said Account is depleted, then to the Participant’s ESOP Accounts.

     (i) This Section shall be interpreted and administered in accordance with Section 414(p) of
the Code.

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9.8 Designation of Beneficiary.

     (a) A Participant may designate a Beneficiary (including successive or contingent
Beneficiaries) in accordance with this Section 9.8. Such designation shall be on a form prescribed
by the ESOP Committee, may include successive or contingent Beneficiaries, shall be effective upon
receipt by the ESOP Committee and shall comply with such additional conditions and requirements as
the ESOP Committee shall prescribe. The interest of any person as Beneficiary shall automatically
cease on his or her death and any further payments from the Plan shall be made to the next
successive or contingent Beneficiary.

     (b) A Participant may change his or her Beneficiary designation from time to time, without the
consent or knowledge of any previously designated Beneficiary, by filing a new Beneficiary
designation form with the ESOP Committee in accordance with subsection (a).

     (c) If a Participant dies without a designated Beneficiary surviving, the person or persons in
the following class of successive beneficiaries surviving, any testamentary devise or bequest to
the contrary notwithstanding, shall be deemed to be the Participant’s Beneficiary: the
Participant’s (1) spouse, (2) children and issue of deceased children by right of representation,
(3) parents, (4) brothers and sisters and issue of deceased brothers and sisters by right of
representation, or (5) executors or administrators. If no Beneficiary can be located during a
period of seven (7) years from the date of death, the Participant’s Account shall be treated in the
same manner as a forfeiture under Section 7.3(a).

     (d) Notwithstanding the foregoing provisions of this Section, if a Participant is married at
the time of his or her death, such Participant shall be deemed to have designated his or her
surviving spouse as Beneficiary, unless such Participant has filed a Beneficiary designation under
subsection (a) and such spouse has consented in writing to the election (acknowledging the

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effect of the election and specifically acknowledging the nonspouse Beneficiary) and such
consent was witnessed by either the ESOP Committee (or its delegate) or a notary public. Such
consent shall not be required if the Participant does not have a spouse or the spouse cannot be
located. Such consent shall not be required if the Participant is legally separated from his or
her spouse or the Participant has been abandoned (under applicable local law) and the Participant
has a court order to such effect, unless a Qualified Domestic Relations Order provides otherwise.
If the Participant’s spouse is legally incompetent to give consent, the spouse’s legal guardian
(even if the guardian is the Participant) may give consent.

9.9 Lost Participant or Beneficiary.

     (a) All Participants and Beneficiaries shall have the obligation to keep the ESOP Committee
informed of their current address until such time as all benefits due have been paid.

     (b) If any amount is payable to a Participant or Beneficiary who cannot be located to receive
such payment, such amount may, at the discretion of the ESOP Committee, be forfeited; provided,
however, that if such Participant or Beneficiary subsequently claims the forfeited amount, it shall
be reinstated and paid to such Participant or Beneficiary. Such reinstatement may, in the ESOP
Committee’s sole discretion, be made from contributions by one or more Adopting Employers,
forfeitures or Trust earnings, and shall be treated as a special allocation that supersedes the
normal allocation rules.

     (c) If the ESOP Committee has not, after due diligence, located a Participant or Beneficiary
who is entitled to payment within three (3) years after the Participant’s Severance from Service,
then, at the discretion of the ESOP Committee, such person may be presumed deceased for purposes of
this Plan. Any such presumption of death shall be final, conclusive and binding on all parties.

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9.10 Payments to Incompetents.

     If a Participant or Beneficiary entitled to receive any benefits hereunder is adjudicated to
be legally incapable of giving valid receipt and discharge for such benefits, the benefits may be
paid to the duly authorized personal representative of such Participant or Beneficiary.

9.11 Offsets.

     Any transfers or payments made from a Participant’s Account to a person other than the
Participant pursuant to the provisions of this Plan shall reduce the Participant’s Account and
offset any amounts otherwise due to such Participant. Such transfers or payments shall not be
considered a forfeiture for purposes of the Plan.

9.12 Income Tax Withholding.

     To the extent required by Section 3405 of the Code, distributions and withdrawals from the
Plan shall be subject to federal income tax withholding.

9.13 Common Stock Dividend Distributions.

     With respect to any fiscal year of the Employer in which it is a C corporation (as opposed to
an S corporation) in accordance with Section 404(k) of the Code, cash dividends on Common Stock
that has been allocated to Participant Accounts may be distributed to Participants and
Beneficiaries no later than ninety (90) days after the close of the Plan Year in which the
dividends are paid.

9.14 Distributions.

     (a) Time of Distributions Due to Termination of Employment. Except as provided in
subsection (b) below, and unless an earlier distribution commencement date is required by another
provision of this Plan other than Sections 9.2(a) and 9.2(b), distribution of the Participant’s
ESOP Accounts will commence no later than the earlier of:

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     (i) the sixth Plan Year following the Plan Year during which the Participant incurred a
Severance from Service, unless the Participant is reemployed before such time, or

     (ii) as soon as administratively feasible after the first Allocation Date following the
Participant’s sixty fifth (65th) birthday.

     If a Participant’s ESOP Account includes financed securities as described in Section
409(o)(1)(B) of the Code, then such financed securities shall be deemed not to be part of
the Account until the Allocation Date of the Plan Year in which the Acquisition Loan has
been fully repaid.

     (b) Time of Distributions Due to Retirement, Death or Disability. Upon a
Participant’s Severance from Service after attainment of Normal Retirement Age, Retirement,
Disability or death, distribution of the Participant’s ESOP Accounts will begin no later than the
earlier of:

     (i) as soon as administratively feasible after the first Allocation Date following the
Participant’s Severance from Service under this subparagraph 9.14(b); or

     (ii) one year after the end of the first Plan Year in which the Participant’s Severance
from Service after attainment of Normal Retirement Age, Retirement, Disability or death
occurs.

     (c) Form of Payment. Except as otherwise provided herein, distributions of vested
Common Stock shall be made either in a lump sum, in substantially equal, annual installments over a
period not exceeding five (5) years (provided that the period over which installments may be
distributed may be extended an additional year, up to an additional five (5) years, for each
$175,000 or fraction thereof by which the Participant’s Account exceeds $885,000 as adjusted

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for increases in the cost of living pursuant to Section 409(o)(2) of the Code), or a
combination thereof, and that the selection of the option will be made by the ESOP Committee
pursuant to a uniform and nondiscriminatory policy; or

     (d) If the Company is an S corporation, or if its Charter or Articles of Incorporation and/or
Bylaws restrict the ownership of substantially all outstanding shares of Common Stock to current
Employees and the Trust, the distribution of a Participant’s Common Stock may be made entirely in
cash without granting the Participant the right to demand a distribution in Common Stock.
Alternatively, Common Stock may be distributed subject to the requirement that it be immediately
resold to the Company (or to the Trust) under payment terms that comply with Section 9.15. If
Company Stock is distributed from the Trust to a Participant who directs that the Company Stock be
distributed to his individual retirement arrangement in a direct rollover, then the Company shall
repurchase the Company Stock immediately upon the distribution of the Company Stock to the
Participant’s individual retirement arrangement.

9.15 Rights, Options and Restrictions on Common Stock.

     (a) Right of First Refusal.

          (1) Any Common Stock distributed by the Trust shall be subject to a right of first refusal.
The right of first refusal shall provide that, prior to any subsequent transfer, the Common Stock
must first be offered for purchase in writing to the Company, and then to the Trust, at the then
Current Market Value.

          (2) The Company and the Trust shall have a total of fourteen (14) days to exercise the right
of first refusal on the same terms offered by a prospective buyer.

          (3) The Company may require that a Participant entitled to a distribution of Common Stock
execute an appropriate stock transfer agreement evidencing the right of first

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refusal prior to receiving a certificate for Common Stock. The Board of Directors may
establish any other reasonable procedures relating to this right of first refusal.

     (b) Put Option.

          (1) The Company shall provide a put option for any Participant or Beneficiary who receives a
distribution of Common Stock. The put option shall permit the Participant or Beneficiary to sell
such Common Stock to the Company at any time during two option periods, at the then Current Market
Value. The Company may allow the Trust to purchase shares of Common Stock tendered to the Company
under such a put option.

          (2) The first put option period shall be for at least sixty (60) days beginning on the date of
distribution. The second put option period shall be for at least sixty (60) days beginning after
the new determination of Current Market Value (and notice to the Participant thereof) in the
following Plan Year.

          (3) The payment for any Common Stock sold under such a put option shall be made within thirty
(30) days if the shares were distributed as part of an installment distribution.

          (4) If the shares were distributed in a lump-sum distribution, payment shall begin within
thirty (30) days and may be made in a lump-sum or in substantially equal, annual installments over
a period not exceeding five (5) years, with adequate security provided and interest payable at a
reasonable rate on any unpaid installment balance, as determined by the Company.

          (5) The provisions of this Section 9.15(b)(1) and 9.15(b)(2) shall apply only if the Company
is a C Corporation.

     (c) Restrictions on Common Stock. Common Stock held or distributed by the Trust may
include such legend restrictions on transferability as the Company may reasonably require

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in order to assure compliance with applicable federal and state securities laws. Except as
otherwise provided in subsections (a) and (b) above, no shares of Common Stock held or distributed
by the Trustees may be subject to a put, call or other option, or buy-sell or similar arrangement.
The provisions of this Section 9.15 shall continue to apply to Common Stock even if the Plan ceases
to be an employee stock ownership plan under Section 4975(e)(7) of the Code.

     (d) Except as provided in subsections (a) or (b) or as otherwise required by law, no Common
Stock acquired with proceeds of an Acquisition Loan may be subject to a put, call, or other option,
buy-sell or similar arrangement, while held by or when distributed from the Plan.

     (e) The provisions of this Section are non-terminable and shall continue notwithstanding the
repayment of any Acquisition Loan, the proceeds which were used to acquire Common Stock, and
notwithstanding the fact that the Plan ceases to be an employee stock ownership plan.

9.16 Price Protection.

     Notwithstanding any other provision of this Plan to the contrary, any Participant who:

     (a) Had an ESOP Rollover Account as of the Closing Date;

     (b) Was at least age 55 on December 31, 2002; and

     (c) On or before December 31, 2007 separates from service for any reason on or after attaining
age 60, incurs a Disability or dies, and requests a lump sum distribution from the ESOP Component
in conjunction with such event, shall have the right to sell his shares distributed from the
Participant’s ESOP Rollover Account that were acquired on the Closing Date to the Company at a
value per share equal to the greater of:

          (1) The original purchase price of a share of Common Stock as of the Closing Date, and

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          (2) The then Current Market Value of the Common Stock.

This provision shall also apply if a Participant requests a lump sum distribution, but the ESOP
Committee, pursuant to its uniform, nondiscriminatory policy for processing distributions from the
ESOP Accounts, converts a Participant’s request for a lump sum distribution into installment
payments.

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ARTICLE X

Loans

10.1 Availability of Loans.

     Participants may borrow against all or a portion of the vested balance in the Participant’s
Account (“Available Loan Amount”), subject to the limitations set forth in this ARTICLE and any
applicable Loan policy adopted by the ESOP Committee. Loans will be made available to all
Participants on a reasonably equivalent basis and will not be made available to Highly Compensated
Employees in an amount greater than the amount made available to other employees. Participants who
have incurred a Severance from Service will not be eligible for a Plan loan.

10.2 Written Loan Policy.

     The ESOP Committee in authorizing a loan to be made to a Participant shall determine all terms
of the loan, such as the amount and method of repayment, the repayment period of the loan, the rate
of interest to be paid on such loan and the security for the loan. The ESOP Committee shall set
forth in writing the rules and regulations with respect to Participant loans which are to provide,
at a minimum, the following: (a) the identity of the person or position authorized to administer
the loan program; (b) a procedure for applying for loans; (c) the basis on which loans will be
approved or denied; (d) limitations (if any) on the types and amount of loans offered; (e) the
procedure for determining a reasonable rate of interest; (f) the types of collateral which may
secure a loan; and (g) the events constituting default and the steps that will be taken to preserve
Plan assets in the event of a default.

10.3 Maximum Amount of Loan.

     No loan in excess of fifty percent (50%) of the Participant’s Available Loan Amount will be
permitted. In addition, limits imposed by the Code and any other requirements of applicable

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statute or regulation will be applied. Under the current requirements of the Code, a loan
cannot exceed the lesser of one-half (1/2) of the value of the Participant’s Available Loan Amount or
fifty thousand dollars ($50,000) reduced by the excess of (a) the highest outstanding balance of
loans by that Participant from the Plan during the one (1) year period ending on the day before the
date on which such loan was made, over (b) the outstanding balance of that Participant’s loans from
the Plan on the date on which such loan was made. For purposes of the above limitations, all loans
from all plans of the Employer or one of the Adopting Employers, and other members of a group of
employers described in Section 414(b), (c), (m) and (o) of the Code, are aggregated.

10.4 Repayment Schedule.

     Unless the loan is used to acquire any dwelling unit which within a reasonable time is to be
used (determined at the time the loan is made) as the principal residence of the Participant, the
loan, under its terms, must be repaid within five (5) years. All repayments shall be made through
payroll deductions in accordance with the loan agreement executed at the time the loan is made,
except as otherwise provided by the ESOP Committee. The repayment schedule shall provide for
substantially level amortization of the loan. Loan repayments will be suspended under this Plan as
permitted under Section 414(u) of the Code and as required to comply with an order issued in a
bankruptcy proceeding.

10.5 Interest Rate.

     A loan pursuant to this ARTICLE shall bear a reasonable rate of interest that provides a
return commensurate with the prevailing interest rate charged on similar loans by persons in the
business of lending money.

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10.6 Security for Loans.

     A loan shall be adequately secured with the value and liquidity of the security being such
that it may reasonably be anticipated that loss of principal or interest by the Plan will not
result from the loan due date to the actual date of enforcement of the security interest in the
event of a default. Each loan shall be secured by any security that the ESOP Committee may in its
sole discretion require of the Participant, including the Participant’s Available Loan Amount, as
long as the Trustee is willing to accept said security. No more than fifty percent (50%) of a
Participant’s Available Loan Amount may be used as security for the outstanding balance of all Plan
loans made to that Participant. The requirement in the preceding sentence must be satisfied
immediately after the origination of each Participant loan secured in whole or in part by any
portion of the Participant’s Available Loan Amount.

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ARTICLE XI

Contribution and Benefit Limitations

11.1 Contribution Limits.

     (a) The Annual Additions that may be allocated to a Participant’s Account for any Limitation
Year shall not exceed the lesser of:

          (1) forty-four thousand dollars ($44,000); or

          (2) one hundred percent (100%) of the Participant’s Compensation for that Limitation Year.

     (b) If the Employer maintains any other Defined Contribution Plans then the limitations
specified in this Section shall be computed with reference to the aggregate Annual Additions for
each Participant from all such Defined Contribution Plans.

     (c) If the Annual Additions for a Participant would exceed the limits specified in this
Section, then the Annual Additions under this Plan for that Participant shall be reduced to the
extent necessary to prevent such limits from being exceeded. Such reduction shall be made in
accordance with Section 11.3.

11.2 Annual Adjustments to Limits.

     The dollar limitation for Annual Additions shall be adjusted for cost-of-living to the extent
permitted under Section 415(d) of the Code.

11.3 Excess Amounts.

     (a) The foregoing limits shall be limits on the allocation that may be made to a Participant’s
Account in any Limitation Year. If an excess Annual Addition would otherwise result from an
allocation of forfeitures, reasonable errors in determining Compensation or other comparable
reasons, then the ESOP Committee may take any (or all) of the following steps to prevent the excess
Annual Additions from being allocated:

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          (1) return any contributions from the Participant, as long as such return is
nondiscriminatory;

          (2) hold the excess amounts unallocated in a suspense account and apply the balance of the
suspense account against Matching, Qualified Nonelective or Profit Sharing Contributions for that
Participant made in succeeding years;

          (3) hold the excess amounts unallocated in a suspense account and apply the balance of the
suspense account against succeeding year Matching, Qualified Nonelective or Profit Sharing
Contributions;

          (4) reallocate the excess amounts to other Participants.

     (b) Any suspense account established under this Section shall not be credited with income or
loss unless otherwise directed by the ESOP Committee. If a suspense account under this Section is
to be applied in a subsequent Limitation Year, then the amounts in the suspense account shall be
applied before any Annual Additions (other than forfeitures) are made for such Limitation Year.

     (c) The following terms used in this Section 11 shall have the following meanings specified:

          (1) Annual Addition. The sum for any Limitation Year of additions (not including
Rollover Contributions) to a Participant’s Account as a result of:

(A) Profit Sharing Contributions (including Matching Contributions, Qualified Nonelective
Contributions and Elective Deferrals);

(B) Employee contributions;

(C) forfeitures; and

(D) amounts described in Code Sections 415(l)(1) and 419A(d)(2).

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          (2) Defined Contribution Plan. A plan qualified under Section 401(a) of the Code that
provides an individual account for each Participant and benefits based solely on the amount
contributed to the Participant’s Account, plus any income, expenses, gains and losses, and
forfeitures of other Participants which may be allocated to such Participant’s account.

          (3) Limitation Year. The Plan Year, until the Employer adopts a different Limitation
Year.

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ARTICLE XII

Top-Heavy Rules

12.1 General.

     This ARTICLE shall only be applicable if the Plan becomes a Top-Heavy Plan under Section 416
of the Code. If the Plan does not become a Top-Heavy Plan, then none of the provisions of this
ARTICLE shall be operative. The provisions of this ARTICLE shall be interpreted and applied in a
manner consistent with the requirements of Section 416 of the Code and the regulations thereunder.

12.2 Vesting.

     (a) If the Plan becomes a Top-Heavy Plan, then amounts in a Participant’s Account attributable
to Profit Sharing Contributions shall be vested in accordance with ARTICLE VII. This Section shall
only apply to Participants who have at least One Hour of Service after the Plan becomes a Top-Heavy
Plan.

     (b) If the Plan ceases to be a Top-Heavy Plan then subsection (a) shall no longer be
applicable; provided, however, that in no event shall the vested percentage of any Participant be
reduced by reason of the Plan ceasing to be a Top-Heavy Plan. Subsection (a) shall nevertheless
continue to apply for any Participant who was previously covered by it and who has at least three
(3) Years of Top-Heavy Service.

12.3 Minimum Contribution.

     (a) For each Plan Year that the Plan is a Top-Heavy Plan, the Adopting Employers shall make a
contribution to be allocated directly to the Account of each Non-Key Employee.

     (b) The amount of the contribution (and forfeitures) required to be contributed and allocated
for a Plan Year by this Section is three percent (3%) of the Top-Heavy Compensation for that Plan
Year of each Non-Key Employee who is both a Participant and an Employee on the

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last day of the Plan Year for which the contribution is made, with adjustments as provided
herein. If the contributions (other than Rollover Contributions) allocated to the Accounts of each
Key Employee for a Plan Year are less than three percent (3%) of his or her Top-Heavy Compensation,
then the contribution required by the preceding sentence shall be reduced for that Plan Year to the
same percentage of Top-Heavy Compensation that was allocated to the Account of the Key Employee
whose Account received the greatest allocation of contributions (other than Rollover Contributions)
for that Plan Year, when computed as a percentage of Top-Heavy Compensation.

     (c) The contribution required by this Section shall be reduced for a Plan Year to the extent
of any contributions made and allocated under this Plan (as permitted under Section 416 of the Code
and the regulations thereunder). In addition, to the extent a Participant participates in any
other plans of the Employer for a Plan Year, the contribution required by this Section shall be
reduced by any contributions allocated or benefits accrued under any such plans. Elective
Deferrals shall be treated as if they were contributions for purposes of determining any minimum
contributions required under subsection (b). The contribution required by this Section shall be
reduced to the extent of any matching contributions under this Plan or any other plan of the
Employer.

12.4 Definitions.

     (a) The following terms shall have the meanings specified herein:

          (1) Aggregated Plans.

(A) The Plan, any plan that is part of a “required aggregation group” and any plan that is part of
a “permissive aggregation group” that the Adopting Employers treat as an Aggregated Plan.

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(B) The “required aggregation group” consists of each plan of the Adopting Employers in which a Key
Employee participates (in the Plan Year containing the Determination Date or any of the four (4)
preceding Plan Years) and each other plan of the Adopting Employers which enables any plan of the
Adopting Employers in which a Key Employee participates to meet the requirements of Section
401(a)(4) or Section 410(b) of the Code. Also included in the required aggregation group shall be
any terminated plan that covered a Key Employee and was maintained within the five (5) year period
ending on the Determination Date.

(C) The “permissive aggregation group” consists of any plan not included in the “required
aggregation group” if the Aggregated Plan described in subparagraph (A) above would continue to
meet the requirements of Section 401(a)(4) and 410 of the Code with such additional plan being
taken into account.

          (2) Determination Date. The last day of the preceding Plan Year, or, in the case of
the first plan year of any plan, the last day of such plan year. The computations made on the
Determination Date shall utilize information from the immediately preceding Allocation Date.

          (3) Key Employee.

(A) An 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 one of the Adopting Employers
having annual Top-Heavy Compensation for the Plan Year greater than one hundred thirty thousand
dollar ($130,000) (as adjusted under Section 416(i)(l) of the Code), a five percent (5%) owner of
one of the Adopting Employers, or a one percent (1%) owner of one of the Adopting Employers having
annual Top-Heavy Compensation of more than one hundred fifty thousand dollars ($150,000). The
determination of who is a Key Employee will be made in

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accordance with Section 416(i)(l) of the Code and the applicable regulations and other guidance of
general applicability issued thereunder.

(B) Beneficiaries of an Employee shall acquire the character of such Employee and inherited
benefits will retain the character of the benefits of the Employee who performed services.

          (4) Non-Key Employee. Any Employee who is not a Key Employee.

          (5) Top-Heavy Compensation. The term Top-Heavy Compensation shall have the same
meaning as the term Compensation has under Section 2.34.

          (6) Top-Heavy Plan. The Plan is a Top-Heavy Plan for a Plan Year if, as of the
Determination Date for that Plan Year, the sum of (i) the present value of the cumulative accrued
benefits for Key Employees under all Defined Benefit Plans that are Aggregated Plans and (ii) the
aggregate of the accounts of Key Employees under all Defined Contribution Plans that are Aggregated
Plans exceeds sixty percent (60%) of the comparable sum determined for all Employees. For purposes
of determining whether the Plan is top-heavy, a Participant’s accrued benefit in a defined benefit
plan will be determined under a uniform accrual method which applies in all defined benefit plans
maintained by the Employer or, where there is no such method, as if such benefit accrued not more
rapidly than the slowest rate of accrual permitted under the fractional rule of Section
411(b)(1)(C) of the Code.

          (7) Years of Top-Heavy Service. The Period of Service with the Adopting Employers
that might be counted under Section 411(a) of the Code, disregarding all service that may be
disregarded under Section 411(a)(4) of the Code.

     (b) The definitions in this Section and the provisions of this ARTICLE shall be interpreted in
a manner consistent with Section 416 of the Code.

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12.5 Special Rules.

     (a) For purposes of determining the present value of the cumulative accrued benefit for any
Participant or the amount of the Account of any Participant, such present value or amount shall be
increased by the aggregate distributions made with respect to such Participant under the Plan
during the one (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 subsection (2)
shall be applied by substituting “five (5) year period” for “one (1) year period.”

     (b) (1) In the case of unrelated rollovers and transfers, the plan making the distribution or
transfer is to count the distribution as a distribution under Section 416(g)(3) of the Code. For
this purpose, rollovers and transfers are to be considered unrelated if they are both initiated by
the Employee and made from a plan maintained by one employer to a plan maintained by another
employer.

          (2) In the case of related rollovers and transfers, the plan making the distribution or
transfer is not to count the distribution or transfer under Section 416(g)(3) of the Code, and the
plan accepting the rollover or transfer counts the rollover or transfer in the present value of the
accrued benefits. For this purpose, rollovers and transfers are to be considered related if they
are not unrelated under subsection (b)(1).

     (c) If any individual is a Non-Key Employee with respect to any plan for any Plan Year, but
such individual was a Key Employee with respect to such plan for any prior Plan Year,

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any accrued benefit for such Employee (and the account of such Employee) shall not be taken
into account.

     (d) Beneficiaries of Key Employees and former Key Employees are considered to be Key Employees
and Beneficiaries of Non-Key Employees and former Non-Key Employees are considered to be Non-Key
Employees.

     (e) The accrued benefit of an Employee who has not performed any service for the Adopting
Employer maintaining the Plan at any time during the one (1) year period ending on the
Determination Date is excluded from the calculation to determine top-heaviness.

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ARTICLE XIII

The Trust Fund

13.1 Trust.

     During the period in which this Plan remains in existence, the Company or any successor
thereto shall maintain in effect at least one Trust with a corporation and/or an individual(s) as
Trustee, to hold, invest, and distribute the Trust Fund in accordance with the terms of such Trust.
The Trustee shall be appointed by the Board of Directors.

13.2 Investment of Accounts.

     The Trustee shall invest and reinvest the Participant’s accounts in the investment options
available under the Plan in accordance with ARTICLE V, as directed by the ESOP Committee or its
delegate. The ESOP Committee shall issue such directions in accordance with the investment options
selected by the Participants which shall remain in force until altered in accordance with Article
V.

13.3 Expenses.

     Expenses of the Plan and Trust shall be paid from the Trust or by the Company, if the Company
in its discretion so chooses.

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ARTICLE XIV

Administration of The Plan

14.1 General Administration.

     The general administration of the Plan shall be the responsibility of the ESOP Committee which
shall be the named Fiduciary for purposes of ERISA. The ESOP Committee shall have the authority,
in its sole discretion, to construe the terms of the Plan and to make determinations as to
eligibility for benefits and as to other issues within the “Responsibilities of the ESOP Committee”
described in this ARTICLE. All such determinations of the ESOP Committee shall be conclusive and
binding on all persons.

14.2 Responsibilities of the ESOP Committee.

     Except as otherwise provided in ERISA, the ESOP Committee (and any other named Fiduciaries)
may allocate any duties and responsibilities under the Plan and Trust among themselves in any
mutually agreed upon manner. Such allocation shall be in a written document signed by the ESOP
Committee (and any other named Fiduciaries) and shall specifically set forth this allocation of
duties and responsibilities, which may include the following:

     (a) Determination of all questions which may arise under the Plan with respect to questions of
fact and law, including without limitation eligibility for participation, administration of
Accounts, membership, vesting, loans, withdrawals, accounting, status of Accounts, stock ownership
and voting rights, and any other issue requiring interpretation or application of the Plan.

     (b) Establishment of procedures required by the Plan, such as notification to Employees as to
joining the Plan, selecting and changing investment options, suspending deferrals, exercising
voting rights in stock, withdrawing and borrowing Account balances,

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designation of Beneficiaries, election of method of distribution, and any other matters
requiring a uniform procedure.

     (c) Adoption of necessary amendments to supplement omissions from the Plan or reconcile any
inconsistency therein.

     (d) Filing appropriate reports with the government as required by law.

     (e) Appointment of Recordkeepers and investment managers.

     (f) Review at appropriate intervals of the performance of the Trustee and such investment
managers as may have been designated.

     (g) Appointment of such additional Fiduciaries as deemed necessary for the effective
administration of the Plan, such appointments to be by written instrument.

14.3 Liability for Acts of Other Fiduciaries.

     Each Fiduciary shall be responsible only for the duties allocated or delegated to said
Fiduciary, and other Fiduciaries shall not be liable for any breach of fiduciary responsibility
with respect to any act or omission of any other Fiduciary unless:

     (a) The Fiduciary knowingly participates in or knowingly attempts to conceal the act or
omission of such other Fiduciary and knows that such act or omission constitutes a breach of
fiduciary responsibility by the other Fiduciary;

     (b) The Fiduciary has knowledge of a breach of fiduciary responsibility by the other Fiduciary
and has not made reasonable efforts under the circumstances to remedy the breach; or

     (c) The Fiduciary’s own breach of his or her specific fiduciary responsibilities has enabled
another Fiduciary to commit a breach. No Fiduciary shall be liable for any acts or omissions which
occur prior to his or her assumption of Fiduciary status or after his or her termination from such
status.

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14.4 Employment by Fiduciaries.

     Any Fiduciary hereunder may employ, with the written approval of the ESOP Committee, one or
more persons to render service with regard to any responsibility which has been assigned to such
Fiduciary under the terms of the Plan including legal, tax, or investment counsel and may delegate
to one or more persons any administrative duties (clerical or otherwise) hereunder.

14.5 Recordkeeping.

     The ESOP Committee shall keep or cause to be kept any necessary data required for determining
the Account status of each Participant. In compiling such information, the ESOP Committee may rely
upon its employment records, including representations made by the Participant in the employment
application and subsequent documents submitted by the Participant to the Employer. The Trustee
shall be entitled to rely upon such information when furnished by the ESOP Committee or its
delegate. Each Employee shall be required to furnish the ESOP Committee upon request and in such
form as prescribed by the ESOP Committee, such personal information, affidavits and authorizations
to obtain information as the ESOP Committee may deem appropriate for the proper administration of
the Plan, including but not limited to proof of the Employee’s date of birth and the date of birth
of any person designated by a Participant as a Beneficiary.

14.6 Claims Review Procedure.

     (a) Except as otherwise provided in this Section 14.6, the ESOP Committee shall make all
determinations as to the right of any person to Accounts under the Plan. Any such determination
shall be made pursuant to the following procedures, which shall be conducted in a manner designed
to comply with Section 503 of ERISA:

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          (1) Step 1. Claims with respect to an Account should be filed by a claimant as soon
as practicable after the claimant knows or should know that a dispute has arisen with respect to an
Account, but at least thirty (30) days prior to the claimant’s actual retirement date or, if
applicable, within sixty (60) days after the death, Disability or Severance from Service of the
Participant whose Account is at issue, by mailing a copy of the claim to the ESOP Committee.

          (2) Step 2. In the event that a claim with respect to an Account is wholly or
partially denied by the ESOP Committee, the ESOP Committee shall, within ninety (90) days following
receipt of the claim, so advise the claimant in writing setting forth: the specific reason or
reasons for the denial; specific reference to pertinent Plan provisions on which the denial is
based; a description of any additional material or information necessary for the claimant to
perfect the claim; an explanation as to why such material or information is necessary; and an
explanation of the Plan’s claim review procedure.

          (3) Step 3. Within sixty (60) days following receipt of the denial of a claim with
respect to an Account, a claimant desiring to have the denial appealed shall file a request for
review by an officer of the Company or a benefit appeals committee, as designated by the ESOP
Committee, by mailing a copy thereof to the address shown in subsection (a)(1); provided, however,
that such officer or any member of such benefit appeals committee, as applicable, may not be the
person who made the initial adverse benefits determination nor a subordinate of such person.

          (4) Step 4. Within thirty (30) days following receipt of a request for review, the
designated officer or benefit appeals committee shall provide the claimant a further opportunity to
present his or her position. At the designated officer or benefit appeals

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committee’s discretion, such presentation may be through an oral or written presentation.
Prior to such presentation, the claimant shall be permitted the opportunity to review pertinent
documents and to submit issues and comments in writing. Within a reasonable time following
presentation of the claimant’s position, which usually should not exceed thirty (30) days, the
designated officer or benefit appeals committee shall inform the claimant in writing of the
decision on review setting forth the reasons for such decision and citing pertinent provisions in
the Plan.

     (b) Except as otherwise provided in subsection (a), the ESOP Committee is the Fiduciary to
whom the Plan grants full discretion, with the advice of counsel: to interpret the Plan; to
determine whether a claimant is eligible for benefits; to decide the amount, form and timing of
benefits; and to resolve any other matter under the Plan which is raised by a claimant or
identified by the ESOP Committee, including but not limited to factual determinations. All
questions arising from or in connection with the provisions of the Plan and its administration, not
herein provided to be determined by the Board of Directors, shall be determined by the ESOP
Committee, and any determination so made shall be conclusive and binding upon all persons affected
thereby. Claims for Disability Benefits shall be determined under the final Department of Labor
claims procedure regulations (DOL Reg. §2560.503-1) which are hereby incorporated by reference.

14.7 Indemnification of Directors and Employees.

     The Adopting Employers shall indemnify any Fiduciary who is a director, officer or Employee of
the Employer, his or her heirs and legal representatives, against all liability and reasonable
expense, including counsel fees, amounts paid in settlement and amounts of judgments, fines or
penalties, incurred or imposed upon him in connection with any claim,

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action, suit or proceeding, whether civil, criminal, administrative or investigative, by
reason of acts or omissions in his or her capacity as a Fiduciary hereunder, provided that such act
or omission is not the result of gross negligence or willful misconduct. The Adopting Employers
may indemnify other Fiduciaries, their heirs and legal representatives, under the circumstances,
and subject to the limitations set forth in the preceding sentence, if such indemnification is
determined by the Board of Directors to be in the best interests of the Adopting Employers.

14.8 Immunity from Liability.

     Except to the extent that Section 410(a) of ERISA prohibits the granting of immunity to
Fiduciaries from liability for any responsibility, obligation, or duty imposed under Title I,
Subtitle B, Part 4, of said Act, an officer, Employee, member of the Board of Directors of the
Employer or other person assigned responsibility under this Plan shall be immune from any liability
for any action or failure to act except such action or failure to act which results from said
officer’s, Employee’s, Participant’s or other person’s own gross negligence or willful misconduct.

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ARTICLE XV

Amendment Or Termination Of Plan

15.1   Right to Amend or Terminate Plan.

          The Company reserves the right at any time or times, by action of the Board of Directors, to
modify, amend or terminate the Plan in whole or in part, in which event a certified copy of the
resolution of the Board of Directors, authorizing such modification, amendment or termination shall
be delivered to the Trustee and to the other Adopting Employers whose Employees are covered by this
Plan, provided, however, that no amendment to the Plan shall be made which shall:

          (a) reduce any vested right or interest to which any Participant or Beneficiary is then
entitled under this Plan or otherwise reduce the vested rights of a Participant in violation of
Section 411(d)(6) of the Code;

          (b) vest in the Adopting Employers any interest or control over any assets of the Trust;

          (c) cause any assets of the Trust to be used for, or diverted to, purposes other than for the
exclusive benefit of Participants and their Beneficiaries; or

          (d) change any of the rights, duties or powers of the Trustee without its written consent.

          (e) Notwithstanding the foregoing provisions of this Section or any other provisions of this
Plan, any modification or amendment of the Plan may be made retroactively if necessary or
appropriate to conform the Plan with, or to satisfy the conditions of, ERISA, the Code, or any
other law, governmental regulation or ruling.

In the alternative, subject to the conditions prescribed in subsections (a) through (e), the Plan
may be amended by any officer of the Company to whom authority to amend the Plan is

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delegated by the Board of Directors, provided, however, that any such amendment does not, in the
view of such officer, materially increase costs of the Plan to the Company or any Adopting
Employer.

15.2   Amendment to Vesting Schedule.

          Any amendment that modifies the vesting provisions of ARTICLE VII shall either:

          (a) provide for a rate of vesting that is at least as rapid for any Participant as the vesting
schedule previously in effect; or

          (b) provide that any adversely affected Participant with a Period of Service of at least three
(3) years may elect, in writing, to remain under the vesting schedule in effect prior to the
amendment. Such election must be made within sixty (60) days after the later of the:

	 	(1)	 	adoption of the amendment;
	 
	 	(2)	 	effective date of the amendment; or
	 
	 	(3)	 	issuance by the ESOP Committee of written notice of the amendment.

15.3   Maintenance of Plan.

          The Adopting Employers have established the Plan with the bona fide intention and expectation
that they will be able to make contributions indefinitely, but the Adopting Employers are not and
shall not be under any obligation or liability whatsoever to continue contributions or to maintain
the Plan for any given length of time.

15.4   Termination of Plan and Trust.

          The Plan and Trust hereby created shall terminate upon the occurrence of any of the following
events:

          (a) Delivery to the Trustee of a notice of termination executed by the Company specifying the
date as of which the Plan and Trust shall terminate; or

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          (b) Adjudication of the Company as bankrupt or general assignment by the Company to or for the
benefit of creditors or dissolution of the Company.

Upon termination of this Plan, or permanent discontinuance of contributions hereunder, with or
without written notification, the rights of each Participant to the amounts credited to that
Participant’s Account at such time shall be fully vested and nonforfeitable. In the event a
partial termination of the Plan is deemed to have occurred, each Participant affected shall be
fully vested in and shall have a nonforfeitable right to the amounts credited to that Participant’s
Account with respect to which the partial termination occurred.

15.5   Distribution on Termination.

          (a) (1) If the Plan is terminated, or contributions permanently discontinued, an Adopting
Employer, at its discretion, may (at that time or at any later time) direct the Trustee to
distribute the amounts in a Participant’s Account in accordance with the distribution provisions of
the Plan. Such distribution shall, notwithstanding any prior provisions of the Plan, be made in a
single lump-sum without the Participant’s consent as to the timing of such distribution. If,
however, an Adopting Employer (or an Affiliate) maintains an alternative defined contribution plan
(other than an employee stock ownership plan), then the preceding sentence shall not apply and the
Adopting Employer, at its discretion, may direct such distributions to be made as a direct transfer
to such other plan without the Participant’s consent, if the Participant does not consent to an
immediate distribution.

               (2) If an Adopting Employer does not direct distribution under paragraph (1), each
Participant’s Account shall be maintained until distributed in accordance with the provisions of
the Plan (determined without regard to this Section) as though the Plan had not been terminated or
contributions discontinued.

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          (b) If the ESOP Committee determines that it is administratively impracticable to make
distributions under this Section in cash or that it would be in the Participant’s best interest to
make some or all of the distributions with in-kind property, it shall offer all Participants and
Beneficiaries entitled to a distribution under this Section a reasonable opportunity to elect to
receive a distribution of the in-kind property being distributed by the Trust. Those Participants
and Beneficiaries so electing shall receive a proportionate share of such in-kind property in the
form (outright, in trust or in partnership) that the ESOP Committee determines will provide the
most feasible method of distribution.

          (c) (1) Amounts attributable to elective contributions shall only be distributable by reason
of this Section if one of the following is applicable:

(A) the Plan is terminated without the establishment or maintenance of another defined contribution
plan (other than an employee stock ownership plan);

               (2) For purposes of this subsection, the term “elective contributions” means employer
contributions made to the Plan that were subject to a cash or deferred election under a cash or
deferred arrangement.

               (3) Elective contributions are distributable under subsections (c)(1)(B) and (C) above only if
the Adopting Employers continue to maintain the Plan after the disposition.

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ARTICLE XVI

Additional Provisions

16.1   Effect of Merger, Consolidation or Transfer.

          In the event of any merger or consolidation with or transfer of assets or liabilities to any
other plan or to this Plan, each Participant of the Plan shall be entitled to a benefit immediately
after the merger, consolidation or transfer, which is equal to or greater than the benefit he or
she would have been entitled to receive immediately before the merger, consolidation or transfer
(if the Plan had been terminated).

16.2   No Assignment.

          (a) Except as provided herein, the right of any Participant or Beneficiary to any benefit or
to any payment hereunder shall not be subject to alienation, assignment, garnishment, attachment,
execution or levy of any kind.

          (b) Subsection (a) shall not apply to any payment or transfer permitted by the Internal
Revenue Service pursuant to regulations issued under Section 401(a)(13) of the Code.

          (c) Subsection (a) shall not apply to any payment or transfer pursuant to a Qualified Domestic
Relations Order.

          (d) Subsection (a) shall not apply to any payment or transfer to the Trust in accordance with
Section 401(a)(13)(C) of the Code to satisfy the Participant’s liabilities to the Plan or Trust in
any one or more of the following circumstances:

               (1) the Participant is convicted of a crime involving the Plan;

               (2) a civil judgment (or consent order or decree) in an action is brought against the
Participant in connection with an ERISA fiduciary violation; or

               (3) the Participant enters into a settlement agreement with the Department of Labor over an
ERISA fiduciary violation.

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16.3   Limitation of Rights of Employees.

          This Plan is strictly a voluntary undertaking on the part of the Adopting Employers and shall
not be deemed to constitute a contract between any of the Adopting Employers and any Employee, or
to be a consideration for, or an inducement to, or a condition of the employment of any Employee.
Nothing contained in the Plan shall be deemed to give any Employee the right to be retained in the
service of any of the Adopting Employers or shall interfere with the right of any of the Adopting
Employers to discharge or otherwise terminate the employment of any Employee of an Adopting
Employer at any time. No Employee shall be entitled to any right or claim hereunder except to the
extent such right is specifically fixed under the terms of the Plan.

16.4   Construction.

          The provisions of this Plan shall be interpreted and construed in accordance with the
requirements of the Code and ERISA. Any amendment or restatement of the Plan or Trust that would
otherwise violate the requirements of Section 411(d)(6) of the Code or otherwise cause the Plan or
Trust to cease to be qualified under Section 401(a) of the Code shall be deemed to be invalid.
Capitalized terms shall have meanings as defined herein. Singular nouns shall be read as plural,
masculine pronouns shall be read as feminine and vice versa, as appropriate. References to
“Section” or “ARTICLE” shall be read as references to appropriate provisions of this Plan, unless
otherwise indicated.

16.5   Company Determinations.

          Any determinations, actions or decisions of the Company (including but not limited to, Plan
amendments and Plan termination) shall be made by its Board of Directors in accordance with its
established procedures or by such other individuals, groups or organizations that have been
properly delegated by the Board of Directors to make such determination or decision.

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16.6   Continued Qualification.

          This Plan is established with the intent that it shall qualify under Sections 401(a), 401(k)
and 4975(e)(7) of the Code as those Sections exist at the time the Plan is amended and restated.
If the Internal Revenue Service determines that the Plan does not meet those requirements, the Plan
shall be amended retroactively as necessary to correct any such inadequacy.

16.7   Governing Law.

          This Plan shall be governed by, construed and administered in accordance with ERISA and any
other applicable federal law; provided, however, that to the extent not preempted by federal law,
this Plan shall be governed by, construed and administered under the laws of the State of Delaware,
other than its laws respecting choice of law.

*   *   *

          To record the adoption of the Plan, the undersigned has executed the Plan on behalf of the
Employer on this 29th day of January, 2007.

	 	 	 	 	 
	ATTEST:

	 	 	 	ALION SCIENCE AND TECHNOLOGY

CORPORATION
	/s/ Joshua Izenberg
	 	 	 	 
	 
	 	 	By: 	/s/ Bahman Atefi
	 

	 	 	Title:	 Chief Executive Officer

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Exhibit A

Adopting Employers and Special Plan Provisions for Certain Adopting Employers

	 	 	 	 	 
	Name	 	Effective Date of Adoption	 
	 
	 	 	 	 
	Alion Science and Technology Corporation
	 	December 19, 2001
	 
	 	 	 	 
	Human Factors Applications, Inc.
	 	December 20, 2002
	 
	 	 	 	 
	Washington Consulting, Inc.
	 	February 25, 2006

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Exhibit B

Special Withdrawal and Distribution Provisions

A Participant who was a participant in the Human Factors Applications, Inc. Profit Sharing and
401(k) Plan (“HFA 401(k) Plan”) and whose accounts under the HFA 401(k) Plan were transferred to
the Plan in connection with the merger of the HFA 401(k) Plan with and into the Plan, shall be
subject to the following special withdrawal and distribution provisions with respect to his HFA
Accounts under the Plan:

	1.	 	Such a Participant (or his Beneficiary) may elect a distribution from his HFA Accounts, at
any time after his Severance from Service.
	 
	2.	 	Such a Participant who has attained at least age fifty-nine and one-half (591/2) may elect a
withdrawal from his HFA Deferral Account and HFA Matching Account, at any time before his
Severance from Service.
	 
	3.	 	Such a Participant may elect a withdrawal from his HFA Deferral Account before his Severance
from Service, in the event of a hardship, in accordance with the rules for a hardship
withdrawal of Elective Deferrals in Section 8.1 of the Plan.
	 
	4.	 	Such a Participant may elect a withdrawal from his HFA Rollover Account, at any time before
his Severance from Service.

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Exhibit B

Special Withdrawal and Distribution Provisions (continued)

Innovative Technology Solutions

401(k) Profit Sharing Plan & Trust

A Participant who was a participant in the Innovative Technology Solutions 401(k) Profit Sharing
Plan & Trust (“ITSC 401(k) Plan”) and whose accounts under the ITSC 401(k) Plan were transferred to
the Plan in connection with the merger of the ITSC 401(k) Plan with and into the Plan, shall be
subject to the following special withdrawal and distribution provisions with respect to his one
hundred percent (100%) vested interest in his ITSC Accounts under the Plan (i.e., his ITSC Elective
Deferral Account, ITSC Money Purchase Pension Plan Account, ITSC Employer Contributions Account
(consisting of the three separate accounts under the ITSC 401(k) Plan attributable to safe harbor
nonelective employer contributions, discretionary nonelective employer contributions and matching
employer contributions) and ITSC Rollover Account):

	1.	 	Such a Participant (or his Beneficiary) may elect a withdrawal from his Non-ESOP ITSC
Elective Deferral Account after attainment of age fifty-nine and one-half (59 1/2).
	 
	2.	 	Such a Participant (or his Beneficiary) may elect a distribution from his ITSC Accounts, at
any time after his Severance from Service.
	 
	3.	 	Such a Participant who has attained the later of (a) age sixty-five (65), and (b) the fifth
(5th) anniversary of his employment commencement date with Innovative Technology
Solutions Corporation, may elect a withdrawal from his ITSC Accounts (including his ITSC Money
Purchase Pension Plan Account), at any time before his Severance from Service.

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	4.	 	Such a Participant may elect a withdrawal from his ITSC Elective Deferral Account (excluding
earnings) before his Severance from Service, in the event of a hardship, in accordance with
the rules for a hardship withdrawal of Elective Deferrals in Section 8.1 of the Plan.
	 
	5.	 	Such a Participant may elect a withdrawal from his ITSC Rollover Account, at any time before
his Severance from Service.
	 
	6.	 	Regardless of 1. through 4. above, no portion of such a Participant’s ITSC Accounts may be
used as security for a loan unless, at the time the security interest is entered into, the
Participant’s spouse, if any, consents to the use of the Participant’s ITSC Accounts as
security. Such consent must acknowledge the effect of the consent, be signed within the
ninety (90) day period ending on the date on which the loan is to be so secured, and be
witnessed by a Plan representative or notary public. Such consent shall thereafter be binding
with respect to the consenting spouse or any subsequent spouse with respect to that loan. A
new consent shall be required if the Participant’s ITSC Accounts are used as security for the
renegotiation, extension, renewal or other revision of the loan.
	 
	 	 	Regardless, no spousal consent for a loan for which a Participant’s ITSC Accounts (other
than his ITSC Money Purchase Pension Plan Account) is being used as security is required on
or after April 1, 2004.

	7.	 	Regardless of 1. through 4. above, no in-service withdrawal may be made from such a
Participant’s ITSC Accounts unless the Participant’s spouse, if any, consents to the
withdrawal. Such consent must acknowledge the effect of the withdrawal, be signed within the
ninety (90) day period ending on the date of the withdrawal, and be witnessed

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	 	 	by a Plan representative or notary public. In addition, an in-service withdrawal from such
a Participant’s ITSC Accounts shall be made in a joint and 50% survivor annuity (if married)
or a single life annuity (if unmarried), as described in 7. below, unless he elects a lump
sum payment and his spouse consents to such payment in accordance with the rules in 7.
below.
	 	 	Regardless, no spousal consent for a withdrawal from a Participant’s ITSC Accounts (other
than his ITSC Money Purchase Pension Plan Account) is required on or after April 1, 2004.
No in-service withdrawal from a Participant’s ITSC Accounts (other than his ITSC Money
Purchase Pension Plan Account) on or after April 1, 2004 shall be available in the form of
an annuity.

	8.	 	Such a Participant whose Accounts under this Plan exceed Five Thousand Dollars ($5,000),
shall be paid his ITSC Accounts in a joint and 50% survivor annuity (if married) or a single
life annuity (if unmarried), unless he elects installment payments from the Trust Fund
(subject to his right to elect at any time to accelerate the installment payments or to elect
a lump sum for the remainder of his ITSC Account), a combination of a lump sum and installment
payments from the Trust Fund, a joint and 75% survivor annuity (if married), a joint and 100%
survivor annuity (if married) or an optional form of payment available under this Plan. The
amount payable monthly under the annuity forms described in the preceding sentence shall be
the amount that can be purchased from an insurance company selected by the ESOP Committee, in
its sole discretion, with the amount in his ITSC Accounts. The joint and 50% survivor annuity
for a married

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	 	 	Participant shall be payable monthly to the Participant during the Participant’s lifetime
after retirement with fifty percent (50%) of such benefit continued to the Participant’s
spouse for the duration of the spouse’s lifetime after the death of the Participant. Any
such election of the Participant must be made in writing not more than one hundred and
eighty (180) days (ninety (90) days for distributions made on or before December 31, 2006)
before benefit payments begin, consented to by his spouse and filed with the ESOP Committee.
The election must designate a form of benefit payment, and a specific alternate Beneficiary
(including any class of Beneficiaries or any contingent Beneficiaries), which may not be
changed without spousal consent. The spouse’s consent must acknowledge the effect of the
election. Consent of a prior spouse shall be invalid with respect to a current spouse.
Before any payment is made, the Participant must have received from the ESOP Committee
written notification that an election is available and a general description of the terms of
the methods of payment. The Participant may request within sixty (60) days of the receipt
of his notice of election an explanation in nontechnical language of the terms and
conditions of the joint and 50% survivor annuity or other ESOP forms of payment and the
effect of its selection. The ESOP Committee shall respond within thirty (30) days of the
receipt of the Participant’s request for additional information. The Participant shall have
at least one hundred and eighty (180) days (ninety (90) days for distributions made on or
before December 31, 2006) after receiving the written explanation in which to make his
selection. The Participant may change his election at any time before payments begin.
However, if a married Participant elects the joint and 50% survivor annuity and then changes
his election, he may change

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	 	 	his election only with the written consent of his spouse. Consent of the Participant’s
spouse must be witnessed by a Plan representative or notary public.
	 
	 	 	Notwithstanding anything in this Plan to the contrary, as permitted by Section 1.411(d)-4
Q&A 2(e) of the Income Tax Regulations, a distribution from such a Participant’s ITSC
Accounts (other than his ITSC Money Purchase Pension Plan Account) with a benefit
commencement date on or after April 1, 2004 shall no longer be available in the form of a
joint and 50%, 75% or 100% survivor annuity (if married), a single life annuity (if
unmarried), installment payments from the Trust Fund or a combination of a lump sum and
installment payments from the Trust Fund. No spousal consent shall be required for such a
distribution. A distribution from such a Participant’s ITSC Money Purchase Pension Plan
Account with a benefit commencement date on or after April 1, 2004 shall no longer be
available in the form of a joint and 75% survivor annuity (if married), installment payments
from the Trust Fund or a combination of a lump sum and installment payments from the Trust
Fund.

	9.	 	If such a Participant is married and dies before his benefit commencement date, and his
Accounts under the Plan exceed Five Thousand Dollars ($5,000), one hundred percent (100%) of
the Participant’s ITSC Accounts shall be paid to the Participant’s surviving spouse in the
form of a single life annuity. The amount payable monthly under the preceding sentence shall
be the amount that can be purchased from an insurance company selected by the ESOP Committee,
in its sole discretion, with the amount in his ITSC Accounts. The annuity shall be payable
monthly to the surviving spouse for the

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	 	 	surviving spouse’s lifetime. A Participant’s spouse may direct that payment under such
annuity commence within a reasonable period after the Participant’s death. If the spouse
does not so direct, payment under such annuity shall commence at the time the Participant
would have attained his Normal Retirement Age. Such a Participant shall have the right,
during the election period, to elect to have his death benefits paid to another Beneficiary
or under an optional form of payment permitted under the Plan. Regardless of the preceding
sentences, such a Participant (whether or not married) may elect at any time that his ITSC
Accounts be paid in the form of installment payments from the Trust Fund (subject to his
Beneficiary’s right to elect to accelerate the installment payments or to elect a lump sum
for the remainder of his ITSC Accounts). Any such election of a Participant must be made in
writing, consented to by his spouse, and filed with the ESOP Committee. Consent of the
Participant’s spouse must be witnessed by a Plan representative or notary public. The
election must designate a specific alternate beneficiary (including any contingent
beneficiaries) that may not be changed without spousal consent. The spouse’s consent must
acknowledge the effect of the election. Any consent by a spouse shall be effective only
with respect to such spouse. The election period shall be the period which begins on the
first day of the Plan Year in which the Participant attains age thirty-five (35) and ends on
the date of the Participant’s death. If a Participant terminates employment with the
Employer prior to the first day of the Plan Year in which he attains age thirty-five (35),
with respect to his ITSC Accounts as of the date of termination, the election period shall
begin on the date of separation. A Participant who will not yet attain age thirty-five (35)
as of the end of any current Plan Year may make a special qualified election to designate
another Beneficiary for the

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	 	 	period beginning on the date of such election and ending on the first day of the Plan Year
in which he will attain age thirty-five (35). Such election shall not be valid unless the
Participant receives a written explanation comparable to the explanation to be provided
during the applicable period (as described below). The Participant’s spouse will
automatically be reinstated as his Beneficiary as of the first day of the Plan Year in which
he attains age thirty-five (35), subject to his right to elect to designate another
Beneficiary. The ESOP Committee shall provide each Participant within the applicable period
a written explanation of: (a) the terms and conditions of the surviving spouse benefit; (b)
the Participant’s right to make, and the effect of, an election to designate another
Beneficiary or an alternative form of distribution; (c) the rights of the Participant’s
spouse; (d) the right to make, and the effect of a revocation of a previous election to
designate another Beneficiary or an alternative form of distribution; and (e) the relative
values of the various optional methods of payment under the Plan. For this purpose, the
applicable period shall mean the period beginning with the first day of the Plan Year in
which the Participant attains age thirty-two (32) and ending with the close of the Plan Year
preceding the Plan Year in which the Participant attains age thirty-five (35). Regardless,
if a Participant enters the Plan or first becomes subject to the requirements of this
paragraph after the first day of the Plan Year in which the Participant attained age
thirty-five (35), the applicable period shall continue for the one (1) year period after the
date on which the Participant commenced participation in the Plan or first becomes subject
to the requirements of this paragraph, if later. If a Participant separates from service
before attaining age thirty-five (35), the applicable period shall begin one (1) year before
the date the Participate separates from service and end one (1) year after

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	 	 	the Participant separated from service. The Participant and his spouse may change their
election at any time before the Participant’s death.
	 
	 	 	Notwithstanding anything in this Plan to the contrary, as permitted by Section 1.411(d)-4
Q&A 2(e) of the Income Tax Regulations, a death benefit distribution from such a
Participant’s ITSC Accounts (other than his ITSC Money Purchase Pension Plan Account) with a
benefit commencement date on or after April 1, 2004 shall no longer be available in the form
of a single life annuity or installment payments from the Trust Fund. No spousal consent
shall be required for such a distribution. A death benefit distribution from such a
Participant’s ITSC Money Purchase Pension Plan Account with a benefit commencement date on
or after April 1, 2004 shall no longer be available in the form of installment payments from
the Trust Fund.

	10.	 	If a former Participant in the ITSC 401(k) Plan who had forfeited before January 1, 2004 his
nonvested interest in his account(s) under that plan attributable to employer contributions
subject to a vesting schedule under that plan, is rehired on or after January 1, 2004 by the
Employer before the occurrence of five (5) consecutive Breaks in Service (as defined in
Section 7.4), his nonvested interest that was forfeited before January 1, 2004 under the ITSC
401(k) Plan shall be recredited (without adjustment for earnings) as of the date of his
reemployment to his ITSC Employer Contributions Account from a special Employer contribution
to the Plan. Such a Participant shall be one hundred percent (100%) vested in his ITSC
Employer Contributions Account. Further, a former Participant in the ITSC 401(k) Plan who is
rehired on or after

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	 	 	January 1, 2004 by the Employer may not repay to the Plan any prior distributions from the
ITSC 401(k) Plan.

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Exhibit C

Designation of Current Year Method for ADP and ACP Testing

(Plan Sections and 4.11(c)(1) and (2))

Except as otherwise provided below, the ESOP Committee shall use the “Current Year Method” for
complying with the nondiscrimination requirements in Sections 401(k) and (m) of the Code:

Testing Plan *                                                                       
           Plan Year(s)

 

 

* The “Testing Plan” can be the entire Plan, or one or more disaggregated “Testing Plans” as
permitted under the applicable regulations or 
    other guidance.

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Supplement No. 1

John J. McMullen Associates, Inc. 401(k) Retirement Plan and John J. McMullen

Associates, Inc.Employee Stock Ownership Plan

          1.1 Purpose. The purpose of this Supplement 1 is to set forth provisions applicable
to individuals who were previously participants in the John J. McMullen Associates, Inc. 401(k)
Retirement Plan (“Former JJMA 401(k) Participants”) and/or the John J. McMullen Associates, Inc.
Employee Stock Ownership Plan (“Former JJMA ESOP Participants”) (collectively the “Former JJMA
Participants”) immediately before the merger of those plans into this Plan and who became
participants in the Plan upon the transfer of assets from those plans to this Plan, or such earlier
date as provided in Section 1.4. Except to the extent expressly modified by this Supplement 1, the
provisions of the Plan shall apply to the participation of such Former JJMA Participants. The
provisions of this Supplement 1 shall, unless provided otherwise, be effective for Former JJMA
401(k) Participants as of the date assets were transferred from the John J. McMullen Associates,
Inc. 401(k) Retirement Plan to this Plan (the “JJMA 401(k) Merger Date”). The provisions of this
Supplement I shall, unless provided otherwise, be effective for a Former JJMA ESOP Participant as
of the date assets were transferred from the John J. McMullen Associates, Inc. Employee Stock
Ownership Plan into the ESOP Component of this Plan (the “JJMA ESOP Merger Date”). Notwithstanding
the foregoing, the provisions of the Plan and this Supplement shall amend the provisions of the
JJMA 401(k) Plan and the JJMA ESOP as they exist before the JJMA 401(k) Merger Date or the JJMA
ESOP Merger Date, as the case may be, to the extent necessary to comply with statutory changes to
the Code and ERISA effective as of effective date of the applicable statutory change.

          1.2 Former JJMA Participants. Participant shall include a former employee whose
account under the JJMA 401(k) Plan or JJMA ESOP was transferred to the Plan.

          1.3 Employment Commencement Date. In no event shall a Former JJMA Participant’s
Employment Commencement Date be before JJMA becomes an Affiliate of the Company.

          1.4 Participation. A Former JJMA Participant who is an Eligible Employee on April 1,
2005 shall become a Participant in the Plan as of such date. Such a Former JJMA Participant shall
become eligible to contribute to the Plan as of the first day of the first payroll period beginning
on or after April 1, 2005. For purposes of determining eligibility for Matching Contribution and
any Profit Sharing Contribution, a Former JJMA Participant’s Period of Service shall include the
longer of his or her (a) ”year of eligibility service” under the JJMA 401(k) Plan as of April 1,
2005, or (b) ”years of service” under the JJMA ESOP as of April 1, 2005.

          1.5 Special ESOP Component Election. A Former JJMA Participant may elect during the
90-day election period beginning on April 2, 2005 to have all or a portion of the following amounts
invested in Common Stock (a) the amounts transferred to the Plan from his or her JJMA 401(k) Plan
(excluding any amounts credited to the JJMA 401(k) Voluntary Contributions
Account and the JJMA 401(k) Qualified Voluntary Employee Contributions Account and amounts
invested in an outstanding loan), and/or (b) any cash transferred to the Plan attributable

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to his
or her JJMA ESOP account. Any eligible amounts in a Participant’s JJMA 401(k) Plan account that a
Participant elects to invest in Common Stock will be transferred to the ESOP Component on the last
day of the election period where they will be accumulated in a short term interest fund in the ESOP
Component of the Plan, and then converted to Common Stock on the special investment date coincident
with or next following the Allocation Date based on the then Current Market Value, provided the
Participant is an Employee on that date. Any cash amounts in a Participant’s JJMA ESOP account
will be initially accumulated in a short term interest fund in the ESOP Component of the Plan.
Thereafter, the portion of those amounts the Participant elects to invest in Common Stock will be
converted to Common Stock on the investment date coincident with or next following the Allocation
Date based on the then Current Market Value, provided the Participant is an Employee on that date,
and the portion of those amounts that are not invested in Common Stock will be transferred to the
Non ESOP Component and invested as if it were a new contribution.

          1.6 Mapping of Investments. Except as provided in Section 1.5, a Former JJMA
Participant’s account under the JJMA 401(k) Plan which is transferred to this Plan shall be
invested in the Non ESOP Component Funds that the ESOP Committee, or its delegate, determines most
closely resemble the investment funds under the JJMA Plan in which such account was invested
immediately before the transfer. A Former JJMA Participant’s account under the JJMA ESOP which is
transferred to this Plan shall be invested pursuant to Section 1.5.

          1.7 Diversification. For purposes of Plan Section 5.2, a Former JJMA Participant’s
Period of Participation shall include the period of time during which he or she participated in the
JJMA ESOP. For purposes of Plan Section 5.2, a Former JJMA Participant’s “years of employment”
shall not include his or her employment with JJMA before the date on which JJMA became an Employer
under the Plan.

          1.8 Vesting. A Former JJMA Participant who is an Employee on April 1, 2005 shall be
fully vested in his or her benefit under the JJMA 401(k) Plan as of April 1, 2005. A Former JJMA
ESOP Participant who is an Employee on April 1, 2005 shall be fully vested in his or her benefit
under the JJMA ESOP as of April 1, 2005. For purposes of determining a Former JJMA Participant’s
vested percentage in his or her Profit Sharing Contributions under the Plan, such Participant’s
Period of Service shall include the longer of (a) his or her “continuous service” under the JJMA
401(k) Plan as of April 1, 2005, or (b) his or her “credited service” under the JJMA ESOP as of
April 1, 2005. For a Former JJMA ESOP Participant, his or her 2005 service for purposes of vesting
under the Plan shall equal the greater of (a) his or her service determined under the Plan’s rules
for determining Period of Service for 2005 (including any service with JJMA between January 1, 2005
and his or her Employment Commencement Date) and (b) his or her credited service for 2005
determined under the JJMA ESOP as of April 1, 2005.

          If a Former JJMA Participant who was not an Employee when the JJMA 401(k) Plan is merged into
this Plan is reemployed by the Employer or an Affiliate without incurring a five-year Period of
Severance –

	 	(a)	 	the amount of his or her forfeitures under the JJMA 401(k) Plan and/or the JJMA
ESOP shall be restored to his or her Account as of the last day of the Plan Year in
which he or she is reemployed and shall be deducted from forfeitures which

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	 		 	otherwise
would be allocable for such year or, to the extent such forfeitures are insufficient,
shall require a supplemental contribution from the Employer; and

	 	(b)	 	such restored amounts will be fully vested upon restoration.

          1.9 In-Service Withdrawals. Subject to Plan Sections 8.1(a)(2) and 8.3, the following
in-service withdrawal options are available to Former JJMA 401(k) Participants:

	 	(a)	 	A Former JJMA 401(k) Participant may elect a withdrawal from his JJMA 401(k)
Payroll Deferral Account under the Non ESOP Component on or after attainment of age
fifty-nine and one-half (59 1/2 ).
	 
	 	(b)	 	A Former JJMA 401(k) Participant may elect a withdrawal from his JJMA 401(k)
Payroll Deferral Account (excluding all earnings after December 31, 1988) under the Non
ESOP Component in accordance with the rules for a hardship withdrawal of Elective
Deferrals in Plan Section 8.1.
	 
	 	(c)	 	A Former JJMA 401(k) Participant may withdraw all or a portion of his or her
JJMA 401(k) Voluntary Contributions Account, JJMA 401(k) Qualified Voluntary Employee
Contributions Account and JJMA 401(k) Plan Rollover Account under the Non ESOP
Component at anytime.
	 
	 	(d)	 	A Former JJMA 401(k) Participant may withdraw amounts credited prior to July 1,
1990 to his JJMA 401(k) Company Contributions Account under the Non ESOP Component by
demonstrating financial need to the ESOP Committee. For this purpose only, financial
need shall mean expenses arising as a result of an accident or illness of the
Participant or his dependents, or the purchase, construction or repair of the
Participant’s principal residence. This financial need withdrawal option is only
available if the Participant has withdrawn all other amounts available to him under the
Plan.

          1.10 Special Distribution Rules. A Former JJMA ESOP Participant shall have the right
to receive his or her account under the JJMA ESOP which were transferred from the JJMA 401(k) Plan
in June 1998 and were subsequently converted to Common Stock as a result of the Company’s
acquisition of JJMA (a) in annual installments beginning as soon as administratively feasible
following the Allocation Date coinciding with or next following the Participant’s Severance from
Service and paid over a period of five years or such longer period as permitted under Section 409
of the Code, and (b) in cash. A Former JJMA Participant shall have the right to receive his or her
JJMA Money Purchase Pension Account under the Non ESOP Component in the form of a qualified joint
and survivor annuity or paid as a qualified preretirement survivor annuity, to the extent required
by Section 411(d)(6) of the Code.

          1.11 Merger of JJMA Plans. Effective as of the JJMA 401(k) Merger Date, all accrued
benefits under the JJMA 401(k) Plan shall become accrued benefits under the Plan. Effective as
of the JJMA ESOP Merger Date, all accrued benefits under the JJMA ESOP shall become accrued
benefits under the Plan.

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Supplement No. 2

BMH Associates, Inc. Profit Sharing 401(k) Plan

1.1 Purpose. The purpose of this Supplement No. 2 is to set forth provisions applicable to
individuals (“Former BMH Participants”) who were previously participants in the BMH Associates,
Inc. Profit Sharing 401(k) Plan (“BMH Plan”) immediately before the acquisition of BMH Associates,
Inc. by the Company and who became participants in the Plan on February 11, 2006 as provided in
Section 1.4. Except to the extent expressly modified by this Supplement No. 2, the provisions of
the Plan shall apply to the participation of such Former BMH Participants as of the date assets are
transferred from the BMH Plan to this Plan.

1.2 Former BMH Participants. A Participant shall include any former employee whose account
under the BMH Plan was transferred to the Plan.

1.3 Employment Commencement Date. In no event shall a Former BMH Participant’s Employment
Commencement Date be before February 11, 2006.

1.4 Participation. A Former BMH Participant who is an Eligible Employee on February 11,
2006 shall become a Participant in the Plan as of such date. Such a Former BMH Participant shall
become eligible to contribute to the Plan as of the first day of the first payroll period beginning
on or after February 11, 2006. For purposes of determining eligibility for Matching Contribution
and any Profit Sharing Contribution, a Former BMH Participant’s Period of Service shall include his
or her service with BMH as of February 10, 2006. For purposes of determining the amount of any
Matching Contribution and any Profit Sharing Contribution for the Plan Year ending September 30,
2006, a Former BMH Participant’s Compensation shall only include amounts paid by the Company after
the later of February 10, 2006 or the date on which such person satisfies the eligibility
requirements for such contribution.

1.5 Mapping of Investments. Except as provided in Section 5.1(j) of the Plan, a Former BMH
Participant’s account under the BMH Plan which is transferred to this Plan shall be invested in the
Non ESOP Component Funds that the ESOP Committee, or its delegate, determines most closely resemble
the investment funds under the BMH Plan in which such account was invested immediately before the
transfer.

1.6 Diversification. For purposes of Plan Section 5.2, a Former BMH Participant’s Period
of Participation shall not include the period of time during which he or she participated in the
BMH Plan. For purposes of Plan Section 5.2, a Former BMH Participant’s “years of employment” shall
not include his or her employment with BMH Associates, Inc.

1.7 Vesting. A Former BMH Participant who is an Employee on February 11, 2006 shall be
fully vested in his or her Profit Sharing Contributions under the Plan.

1.8 In-Service Withdrawals. Subject to Plan Sections 8.1(a)(2) and 8.3, a Former BMH
Participant may withdraw from the Non ESOP Component any portion or all of his or her account under
the BMH Plan which is transferred to this Plan on or after attainment of age fifty-nine and
one-half (591/2). In addition, a Former BMH Participant may withdraw all or a portion
of his or her (1) BMH Pre-Tax Contributions Account (excluding earnings), (2) BMH Profit

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Sharing
Account, and (3) BMH Rollover Account, in the event of a hardship in accordance with the terms and
conditions prescribed in Sections 8.1(b) and 8.3.

1.9 Merger of BMH Plan. Effective as of February 10, 2006, all accrued benefits under the
BMH Plan shall become accrued benefits under this Plan.

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Supplement No. 3

MA&D 401(k) Plan

1.1 Purpose. The purpose of this Supplement No. 3 is to set forth provisions applicable to
individuals (“Former MA&D Participants”) who were previously participants in the MA&D 401(k) Plan
(“MA&D Plan”) immediately before the acquisition of Micro Analysis & Design, Inc. by the Company
and who became participants in the Plan on May 20, 2006 (“MA&D Plan Merger Date”) as provided in
Section 1.4 below. Except to the extent expressly modified by this Supplement No. 3, the
provisions of the Plan shall apply to the participation of such Former MA&D Participants as of the
date assets are transferred from the MA&D Plan to this Plan.

1.2 Former MA&D Participants. A Participant shall include any former employee whose
account under the MA&D Plan was transferred to the Plan.

1.3 Employment Commencement Date. In no event shall a Former MA&D Participant’s Employment
Commencement Date be before the MA&D Plan Merger Date.

1.4 Participation. A Former MA&D Participant who is an Eligible Employee on the MA&D Plan
Merger Date shall become a Participant in the Plan as of such date. Such a Former MA&D Participant
shall become eligible to contribute to the Plan as of the first day of the first payroll period
beginning on or after the MA&D Plan Merger Date. For purposes of determining eligibility for
Matching Contribution and any Profit Sharing Contribution, a Former MA&D Participant’s Period of
Service shall include his or her service with MA&D as of the MA&D Plan Merger Date. For purposes
of determining the amount of any Matching Contribution and any Profit Sharing Contribution for the
Plan Year ending September 30, 2006, a Former MA&D Participant’s Compensation shall only include
amounts paid by the Company after the later of the MA&D Plan Merger Date or the date on which such
person satisfies the eligibility requirements for such contribution.

1.5 Mapping of Investments. Except as provided in Section 5.1(j) of the Plan, a Former
MA&D Participant’s account under the MA&D Plan which is transferred to this Plan shall be invested
in the Non ESOP Component Funds that the ESOP Committee, or its delegate, determines most closely
resemble the investment funds under the MA&D Plan in which such account was invested immediately
before the transfer.

1.6 Diversification. For purposes of Plan Section 5.2, a Former MA&D Participant’s Period
of Participation shall not include the period of time during which he or she participated in the
MA&D Plan. For purposes of Plan Section 5.2, a Former MA&D Participant’s “years of employment”
shall not include his or her employment with MA&D Analysis & Design, Inc.

1.7 Vesting. A Former MA&D Participant who is an Employee on the MA&D Plan Merger Date
shall be fully vested in his or her account balances under the MA&D Plan.

          If a Former MA&D Participant who was not an Employee on the MA&D Plan Merger Date is merged
into this Plan is reemployed by the Employer or an Affiliate without incurring a five-year Period
of Severance –

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	 	(a)	 	the amount of his or her forfeitures of account balances attributable to the
MA&D Plan shall be restored to his or her Account as of the last day of the Plan Year
in which he or she is reemployed and shall be deducted from forfeitures which otherwise
would be allocable for such year or, to the extent such forfeitures are insufficient,
shall require a supplemental contribution from the Employer; and
	 
	 	(b)	 	such restored amounts will be fully vested upon restoration.

1.8 Normal Retirement Age. The Normal Retirement Age for a Former MA&D Participant with
respect to account balances under the Non ESOP Component shall be age 60.

1.9 In-Service Withdrawals. A Former MA&D Participant may withdraw from the Non ESOP
Component any portion or all of his or her account under the MA&D Plan which is transferred to this
Plan on or after attainment of age fifty-nine and one-half (591/2). In addition, a Former MA&D
Participant may withdraw from the Non ESOP Component: (a) any portion or all of his or her MA&D
Rollover Account at any time; and (b) any portion or all of his or her MA&D Pre-Tax Contributions
Account (excluding earnings) and MA&D Rollover Account in the event of a hardship in accordance
with the terms and conditions prescribed in Sections 8.1 and 8.3.

1.10 Merger of MA&D Plan. All accrued benefits under the MA&D Plan shall become accrued
benefits under this Plan.

 - 137 -exv10w85

 

Exhibit 10.85

INDEMNIFICATION AGREEMENT

     This Indemnification Agreement (this “Agreement”) is made and entered into as of this
           day of                                , by and between Alion Science and Technology Corporation,
a Delaware corporation (the “Company”), and                                          (“Indemnitee”).

     WHEREAS, highly competent persons have become more reluctant to serve publicly-held
corporations as directors or in other capacities unless they are provided with adequate protection
through insurance and adequate indemnification against inordinate risks of claims and actions
against them arising out of their service to and activities on behalf of the corporation;

     WHEREAS, the Board has determined that the increased difficulty in attracting and retaining
such persons is detrimental to the best interests of the Company’s stockholders and that the
Company should act to assure such persons that there will be increased certainty of such protection
in the future;

     WHEREAS, it is reasonable, prudent and necessary for the Company contractually to obligate
itself to indemnify such persons to the fullest extent permitted by applicable law so that they
will serve or continue to serve the Company free from undue concern that they will not be so
indemnified; and

     WHEREAS, Indemnitee is willing to serve, continue to serve and to take on additional service
for or on behalf of the Company on the condition that he be so indemnified.

     NOW, THEREFORE, in consideration of the premises and the covenants contained herein, the
Company and Indemnitee, intending to be legally bound, do hereby covenant and agree as follows:

     Section 1. Definitions. For purposes of this Agreement:

     (a) “Board” means the board of directors of the Company.

     (b) “Change in Control” means a change in control of the Company occurring after the
Effective Date of a nature that would be required to be reported in response to Item 6(e) of
Schedule 14A of Regulation 14A (or in response to any similar item on any similar schedule or form)
promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), whether or
not the Company is then subject to such reporting requirement; provided, however, that,
without limitation, such a Change in Control shall be deemed to have occurred if after the
Effective Date: (i) any “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange
Act) becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or
indirectly, of securities of the Company representing fifty percent (50%) or more of the combined
voting power of the Company’s then outstanding securities; or (ii) the

 

 

Company is a party to a merger, consolidation, sale of assets, plan of liquidation or other
reorganization as a consequence of which members of the Board in office immediately prior to such
transaction or event constitute less than a majority of the Board thereafter.

     (c) “Corporate Status” describes the status of a person who is or was a director,
officer, employee or agent of the Company or of any other corporation, partnership, joint venture,
trust, employee benefit plan or other enterprise which such person is or was serving at the request
of the Company.

     (d) “Disinterested Director” means a director of the Company who is not and was not a
party to a Proceeding in respect of which indemnification is sought by Indemnitee.

     (e) “Effective Date” means                     ,           .

     (f) “Expenses” shall include all reasonable attorneys’ fees, retainers, court costs,
transcript costs, fees of experts, witness fees, travel expenses, duplicating costs, printing and
binding costs, telephone charges, postage, delivery service fees, and all other reasonable
disbursements or expenses of the types customarily incurred in connection with prosecuting,
defending, preparing to prosecute or defend, investigating, being or preparing to be a witness in,
or otherwise participating in, a Proceeding.

     (g) “Independent Counsel” means a law firm, or a member of a law firm, that is
experienced in matters of corporate law and neither presently is, nor in the past five (5) years
has been, retained to represent: (i) the Company or Indemnitee in any matter material to either
such party; or (ii) any other party to a Proceeding giving rise to a claim for indemnification
hereunder. Notwithstanding the foregoing, the term “Independent Counsel” shall not include any
person, who, under the applicable standards of professional conduct then prevailing, would have a
conflict of interest in representing either the Company or Indemnitee in an action to determine
Indemnitee’s rights under this Agreement.

     (h) “Proceeding” includes any action, suit, arbitration, alternate dispute resolution
mechanism, investigation, administrative hearing or any other proceeding, whether civil, criminal,
administrative or investigative, except one (i) initiated by Indemnitee pursuant to Section 11 of
this Agreement to enforce his rights under this Agreement or (ii) pending on or before the
Effective Date.

     Section 2. Services by Indemnitee. Indemnitee agrees to serve as a director,
officer, employee and/or agent of the Company, as applicable. Indemnitee may, at any time and for
any reason, resign from such position(s) (subject to any other contractual obligation or any
obligation imposed by operation of law), in which event the Company shall have no obligation under
this Agreement to continue Indemnitee in such position. This Agreement shall not be deemed an
employment contract between the Company (or any of its subsidiaries) and Indemnitee. Indemnitee
specifically acknowledges that Indemnitee’s employment with the Company (or any of its
subsidiaries), if any, is at will, and the Indemnitee may be discharged at any time for any reason,
with or without cause, except as may be otherwise provided in any written employment contract
between

2

 

Indemnitee and the Company (or any of its subsidiaries), other applicable formal severance policies
duly adopted by the Board, or, with respect to service as a director of the Company, by the
Company’s Certificate of Incorporation, Bylaws, and the General Corporation Law of the State of
Delaware. The foregoing notwithstanding, this Agreement shall continue in force after Indemnitee
has ceased to serve as an officer, director, agent and/or employee of the Company.

     Section 3. Indemnification — General. The Company shall indemnify, and
advance Expenses to, Indemnitee (a) as provided in this Agreement and (b) (subject to the
provisions of this Agreement) to the fullest extent permitted by applicable law in effect on the
date hereof and as amended from time to time. The rights of Indemnitee provided under the
preceding sentence shall include, but shall not be limited to, the rights set forth in the other
sections of this Agreement.

     Section 4. Proceedings Other Than Proceedings by or in the Right of the
Company. Indemnitee shall be entitled to the rights of indemnification provided in this
Section 4 if, by reason of his Corporate Status, he is, or is threatened to be made, a party to or
a participant in any threatened, pending or completed Proceeding, other than a Proceeding by or in
the right of the Company. Pursuant to this Section 4, Indemnitee shall be indemnified against all
Expenses, judgments, penalties, fines and amounts paid in settlement actually and reasonably
incurred by him or on his behalf in connection with such Proceeding or any claim, issue or matter
therein, if he acted in good faith and in a manner he reasonably believed to be in or not opposed
to the best interests of the Company and, with respect to any criminal Proceeding, had no
reasonable cause to believe his conduct was unlawful.

     Section 5. Proceedings by or in the Right of the Company. Indemnitee shall be
entitled to the rights of indemnification provided in this Section 5 if, by reason of his Corporate
Status, he is, or is threatened to be made, a party to or a participant in any threatened, pending
or completed Proceeding brought by or in the right of the Company to procure a judgment in its
favor. Pursuant to this Section 5, Indemnitee shall be indemnified against all Expenses actually
and reasonably incurred by him or on his behalf in connection with such Proceeding if he acted in
good faith and in a manner he reasonably believed to be in or not opposed to the best interests of
the Company; provided, however, that, if applicable law so provides, no indemnification
against such Expenses shall be made in respect of any claim, issue or matter in such Proceeding as
to which Indemnitee shall have been adjudged to be liable to the Company unless and to the extent
that the court in which such Proceeding shall have been brought or is pending shall determine that
such indemnification may be made.

     Section 6. Indemnification for Expenses of a Party Who is Wholly or Partly
Successful. In addition to indemnification authorized under any other provision of this
Agreement, to the extent that Indemnitee is, by reason of his Corporate Status, a party to (or a
participant in) and is successful, on the merits or otherwise, in defense of any Proceeding, he
shall be indemnified against all Expenses actually and reasonably incurred by him or on his behalf
in connection therewith. If Indemnitee is not wholly successful in defense of such Proceeding but
is successful, on the merits or otherwise, as to one or more but less than all claims, issues or
matters in such Proceeding, the Company shall

3

 

indemnify Indemnitee against all Expenses actually and reasonably incurred by him or on his behalf
in connection with each successfully resolved claim, issue or matter. The parties hereto shall
make a reasonable allocation of those Expenses that relate to each such claim, issue or matter. For
purposes of this section and without limitation, the termination of any claim, issue or matter in
such a Proceeding by dismissal, with or without prejudice, shall be deemed to be a successful
result as to such claim, issue or matter.

     Section 7. Indemnification for Expenses of a Witness. Notwithstanding any
other provision of this Agreement, to the extent that Indemnitee is, by reason of his Corporate
Status, a witness in any Proceeding to which Indemnitee is not a party, he shall be indemnified
against all Expenses actually and reasonably incurred by him or on his behalf in connection
therewith.

     Section 8. Advancement of Expenses. The Company shall advance all reasonable
Expenses incurred by or on behalf of Indemnitee in connection with any Proceeding within ten (10)
days after the receipt by the Company of a statement or statements from Indemnitee requesting such
advance or advances from time to time, whether prior to or after final disposition of such
Proceeding. Such statement or statements shall evidence the Expenses reasonably incurred by
Indemnitee and shall include or be preceded or accompanied by an undertaking by or on behalf of
Indemnitee to repay any Expenses advanced if it shall ultimately be determined that Indemnitee is
not entitled to be indemnified against such Expenses.

     Section 9. Procedure for Determination of Entitlement to Indemnification.

     (a) To obtain indemnification under this Agreement, Indemnitee shall submit to the Company a
written request, including therein or therewith such documentation and information as is reasonably
available to Indemnitee and is reasonably necessary to determine whether and to what extent
Indemnitee is entitled to indemnification.

     (b) Upon written request by Indemnitee for indemnification pursuant to the first sentence of
Section 9(a) hereof, a determination, if required by applicable law, with respect to Indemnitee’s
entitlement thereto shall be made in the specific case: (i) if a Change in Control shall have
occurred, by Independent Counsel in a written opinion to the Board, a copy of which shall be
delivered to Indemnitee; or (ii) if a Change of Control shall not have occurred, (A) by a majority
vote of the Disinterested Directors, even though less than a quorum of the Board, or (B) if there
are no such Disinterested Directors or, if such Disinterested Directors so direct, by Independent
Counsel in a written opinion to the Board, a copy of which shall be delivered to Indemnitee; and,
if it is so determined that Indemnitee is entitled to indemnification, payment to Indemnitee shall
be made within ten (10) days after such determination. Indemnitee shall cooperate with the person,
persons or entity making such determination with respect to Indemnitee’s entitlement to
indemnification, including providing to such person, persons or entity upon reasonable advance
request any documentation or information which is not privileged or otherwise protected from
disclosure and which is reasonably available to Indemnitee and reasonably necessary to such
determination. Such determination shall be made as promptly as is reasonably practicable, taking
into account all facts and circumstances.

4

 

Any reasonable costs or expenses (including reasonable attorneys’ fees and disbursements)
actually incurred by Indemnitee in so cooperating with the person, persons or entity making such
determination shall be borne by the Company (irrespective of the determination as to Indemnitee’s
entitlement to indemnification) and the Company hereby indemnifies and agrees to hold Indemnitee
harmless therefrom.

     (c) In the event the determination of entitlement to indemnification is to be made by
Independent Counsel pursuant to Section 9(b) hereof, the Independent Counsel shall be selected as
provided in this Section 9(c). If a Change of Control shall not have occurred, the Independent
Counsel shall be selected by the Board, and the Company shall give written notice to Indemnitee
advising him of the identity of the Independent Counsel so selected. If a Change of Control shall
have occurred, the Independent Counsel shall be selected by Indemnitee (unless Indemnitee shall
request that such selection be made by the Board, in which event the preceding sentence shall
apply), and Indemnitee shall give written notice to the Company advising it of the identity of the
Independent Counsel so selected. In either event, Indemnitee or the Company, as the case may be,
may, within ten (10) days after such written notice of selection shall have been given, deliver to
the Company or to Indemnitee, as the case may be, a written objection to such selection;
provided, however, that such objection may be asserted only on the ground that the
Independent Counsel so selected does not meet the requirements of “Independent Counsel” as defined
in Section 1 of this Agreement, and the objection shall set forth with particularity the factual
basis of such assertion. If such written objection is so made and substantiated, the Independent
Counsel so selected may not serve as Independent Counsel unless and until such objection is
withdrawn or a court has determined that such objection is without merit. If, within thirty (30)
days after submission by Indemnitee of a written request for indemnification pursuant to Section
9(a) hereof, no Independent Counsel shall have been selected and not objected to, either the
Company or Indemnitee may petition any court of competent jurisdiction for resolution of any
objection which shall have been made by the Company or Indemnitee to the other’s selection of
Independent Counsel and/or for the appointment as Independent Counsel of a person selected by the
court or by such other person as the court shall designate, and the person with respect to whom all
objections are so resolved or the person so appointed shall act as Independent Counsel under
Section 9(b) hereof. The Company shall pay any and all reasonable fees and Expenses of Independent
Counsel incurred by such Independent Counsel in connection with acting pursuant to Section 9(b)
hereof, and the Company shall pay all reasonable fees and Expenses incident to the procedures of
this Section 9(c), regardless of the manner in which such Independent Counsel was selected or
appointed. Upon the due commencement of any judicial proceeding or arbitration pursuant to Section
11(a)(iii) of this Agreement, Independent Counsel shall be discharged and relieved of any further
responsibility in such capacity (subject to the applicable standards of professional conduct then
prevailing).

     Section 10. Presumptions and Effect of Certain Proceedings.

     If a Change of Control shall have occurred, in making a determination with respect to
entitlement to indemnification hereunder, the person or persons or entity making such determination
shall presume that Indemnitee is entitled to indemnification under this Agreement if Indemnitee has
submitted a request for indemnification in

5

 

accordance with Section 9(a) of this Agreement, and the Company shall have the burden of proof to
overcome that presumption in connection with the making by any person, persons or entity of any
determination contrary to that presumption.

     The termination of any Proceeding or of any claim, issue or matter therein, by judgment,
order, settlement or conviction, or upon a plea of nolo contendere or its equivalent, shall not
(except as otherwise expressly provided in this Agreement) of itself adversely affect the right of
Indemnitee to indemnification or create a presumption that Indemnitee did not act in good faith and
in a manner which he reasonably believed to be in or not opposed to the best interests of the
Company or, with respect to any criminal Proceeding, that Indemnitee had reasonable cause to
believe that his conduct was unlawful.

     Section 11. Remedies of Indemnitee.

     (a) In the event that (i) a determination is made pursuant to Section 9 of this Agreement that
Indemnitee is not entitled to indemnification under this Agreement, (ii) advancement of Expenses is
not timely made pursuant to Section 8 of this Agreement, (iii) no determination of entitlement to
indemnification shall have been made pursuant to Section 9(b) of this Agreement within 90 days
after receipt of the Company of the request for indemnification, (iv) payment of indemnification is
not made pursuant to Section 6 or 7 of this Agreement within ten (10) days after receipt by the
Company of a written request therefor or (v) payment of indemnification is not made within ten (10)
days after a determination has been made that Indemnitee is entitled to indemnification, Indemnitee
shall be entitled to an adjudication by a court of competent jurisdiction of his entitlement to
such indemnification or advancement of Expenses. Alternatively, Indemnitee, at his option, may
seek an award in arbitration to be conducted by a single arbitrator pursuant to the Commercial
Arbitration Rules of the American Arbitration Association. Indemnitee shall commence such
proceeding seeking an adjudication or an award in arbitration within one hundred eighty (180) days
following the date on which Indemnitee first has the right to commence such proceeding pursuant to
this Section 11(a); provided, however, that the foregoing clause shall not apply in respect
of a proceeding brought by Indemnitee to enforce his rights under Section 6 of this Agreement.

     (b) In the event that a determination shall have been made pursuant to Section 9(b) of this
Agreement that Indemnitee is not entitled to indemnification, any judicial proceeding or
arbitration commenced pursuant to this Section 11 shall be conducted in all respects as a de novo
trial, or arbitration, on the merits and the Indemnitee shall not be prejudiced by reason of that
adverse determination. If a Change of Control shall have occurred, in any judicial proceeding or
arbitration commenced pursuant to this Section 11 the Company shall have the burden of proving that
Indemnitee is not entitled to indemnification or advancement of Expenses, as the case may be.

     (c) If a determination shall have been made pursuant to Section 9(b) of this Agreement that
Indemnitee is entitled to indemnification, the Company shall be bound by such determination in any
judicial proceeding or arbitration commenced pursuant to this Section 11, absent (i) a misstatement
by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee’s
statement not materially misleading, in

6

 

connection with the request for indemnification, or (ii) a prohibition of such indemnification
under applicable law.

     (d) In the event that Indemnitee, pursuant to this Section 11, seeks a judicial adjudication
of or an award in arbitration to enforce his rights under, or to recover damages for breach of,
this Agreement, Indemnitee shall be entitled to recover from the Company, and shall be indemnified
by the Company against, any and all Expenses actually and reasonably incurred by him in such
judicial adjudication or arbitration, but only if he prevails therein. If it shall be determined in
said judicial adjudication or arbitration that Indemnitee is entitled to receive part but not all
of the indemnification or advancement of Expenses sought, the Expenses incurred by Indemnitee in
connection with such judicial adjudication or arbitration shall be prorated accordingly between
Indemnitee and the Company.

     Section 12. Selection of Counsel. In the event the Company shall be
obligated under this Agreement to pay the Expenses of any Proceeding against Indemnitee, the
Company, if appropriate, shall be entitled to assume the defense of such Proceeding, with counsel
approved by Indemnitee, which approval shall not be unreasonably withheld, upon the delivery to
Indemnitee of written notice of its election so to do. After delivery of such notice, approval of
such counsel by Indemnitee and the retention of such counsel by the Company, the Company will not
be liable to Indemnitee under this Agreement for any fees of counsel subsequently incurred by
Indemnitee with respect to the same proceeding, provided that (i) Indemnitee shall have the right
to employ his counsel in any such proceeding at Indemnitee’s expense; and (ii) if (A) the
employment of counsel by Indemnitee has been previously authorized by the Company, (B) Indemnitee
shall have reasonably concluded that there may be a conflict of interest between the Company and
Indemnitee in the conduct of any such defense or (C) the Company shall not, in fact, have employed
counsel to assume the defense of such proceeding, then the fees and Expenses of Indemnitee counsel
shall be at the expense of the Company.

     Section 13. Mutual Acknowledgment. Both the Company and Indemnitee
acknowledge that in certain instances Federal law or applicable public policy may prohibit the
Company from indemnifying its directors, officers, employees and agents under this Agreement or
otherwise. Indemnitee understands and acknowledges that the Company has undertaken or may be
required in the future to undertake with the Securities and Exchange Commission to submit the
question of indemnification to a court in certain circumstances for a determination of the
Company’s right under public policy to indemnify Indemnitee.

7

 

     Section 14. Non-exclusivity; Survival of Rights; Insurance; Subrogation.

     (a) The rights of indemnification and to receive advancement of Expenses as provided by this
Agreement shall not be deemed exclusive of any other rights to which Indemnitee may at any time be
entitled under applicable law, the Certificate of Incorporation, the Bylaws, any agreement, a vote
of stockholders or a resolution of directors, or otherwise. No amendment, alteration or repeal of
this Agreement or of any provision hereof shall limit or restrict any right of Indemnitee under
this Agreement or of any provision hereof in respect of any action taken or omitted by such
Indemnitee in his Corporate Status prior to such amendment, alteration or repeal.

     (b) To the extent that the Company maintains an insurance policy or policies providing
liability insurance for directors, officers, employees or agents of the Company or of any other
corporation, partnership, joint venture, trust, employee benefit plan or other enterprise which
such person serves at the request of the Company, Indemnitee shall have the status as an insured
under such policy or policies in accordance with its or their terms to the maximum extent of the
coverage available for any such director, officer, employee or agent under such policy or policies.

     (c) In the event of any payment under this Agreement, the Company shall be subrogated to the
extent of such payment to all of the rights of recovery of Indemnitee, who shall execute all papers
required and take all actions necessary to secure such rights, including execution of such
documents as are necessary to enable the Company to bring suit to enforce such rights.

     (d) The Company shall not be liable under this Agreement to make any payment of amounts
otherwise indemnifiable hereunder if and to the extent that Indemnitee has otherwise actually
received such payment under any insurance policy, contract, agreement or otherwise.

     (e) The Company’s obligation to indemnify or advance Expenses hereunder to Indemnitee who is
or was serving at the request of the Company as a director, officer, employee or agent of any other
corporation, partnership, joint venture, trust, employee benefit plan or other enterprise shall be
reduced by any amount Indemnitee has actually received as indemnification or advancement of
Expenses from such other corporation, partnership, joint venture, trust, employee benefit plan or
other enterprise.

     Section 15. Duration of Agreement. This Agreement shall continue until and
terminate upon the later of: (a) ten (10) years after the date that Indemnitee shall have ceased to
serve as a director, officer, employee and/or agent of the Company or of any other corporation,
partnership, joint venture, trust, employee benefit plan or other enterprise which Indemnitee
served at the request of the Company (the “Anniversary Date”); or (b) the final termination
of any Proceeding then pending on the Anniversary Date in respect of which Indemnitee is seeking
rights of indemnification or advancement of Expenses hereunder and of any proceeding commenced by
Indemnitee pursuant to Section 11 of this Agreement relating thereto. This Agreement shall be
binding upon the Company and its successors and assigns and shall inure to the benefit of
Indemnitee and his heirs, executors and administrators.

8

 

     Section 16. Severability. If any provision or provisions of this Agreement
shall be held to be invalid, illegal or unenforceable for any reason whatsoever: (a) the validity,
legality and enforceability of the remaining provisions of this Agreement (including, without
limitation, each portion of any section of this Agreement containing any such provision held to be
invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable) shall not
in any way be affected or impaired thereby; (b) such provision or provisions shall be deemed
reformed to the extent necessary to conform to applicable law and to give the maximum effect to the
intent of the parties hereto; and (c) to the fullest extent possible, the provisions of this
Agreement (including, without limitation, each portion of any section of this Agreement containing
any such provision held to be invalid, illegal or unenforceable, that is not itself invalid,
illegal or unenforceable) shall be construed so as to give effect to the intent manifested thereby.

     Section 17. Exception to Right of Indemnification or Advancement of Expenses.
Notwithstanding any other provision of this Agreement, Indemnitee shall not be entitled to
indemnification or advancement of Expenses under this Agreement with respect to any Proceeding
brought by Indemnitee, unless the bringing of such Proceeding or making of such claim shall have
been approved by the Board.

     Section 18. Identical Counterparts. This Agreement may be executed in one or
more counterparts, each of which shall for all purposes be deemed to be an original but all of
which together shall constitute one and the same agreement. Only one such counterpart signed by
the party against whom enforceability is sought needs to be produced to evidence the existence of
this Agreement.

     Section 19. Headings. The headings of the paragraphs of this Agreement are
inserted for convenience only and shall not be deemed to constitute part of this Agreement or to
affect the construction thereof.

     Section 20. Modification and Waiver. No supplement, modification or
amendment of this Agreement shall be binding unless executed in writing by both of the parties
hereto. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a
waiver of any other provisions hereof (whether or not similar) nor shall such waiver constitute a
continuing waiver.

     Section 21. Notice by Indemnitee. Indemnitee agrees to notify promptly the
Company in writing upon being served with any summons, citation, subpoena, complaint, indictment,
information or other document relating to any Proceeding or matter which may be subject to
indemnification or advancement of Expenses covered hereunder.

     Section 22. Notices. All notices, requests, demands and other communications
hereunder shall be in writing and shall be deemed to have been duly given if (i) delivered by hand
or air courier and receipted for by the party to whom said notice or other communication shall have
been directed or (ii) mailed by certified or registered mail, with postage prepaid, on the fifth
(5th) business day after the date on which it is so mailed:

9

 

If to Indemnitee, to:

[name]

[address]

If to the Company, to:

Alion Science and Technology Corporation

1750 Tysons Blvd. Suite 1300

McLean, VA 22102-4213

Attention: General Counsel

or to such other address as may have been furnished to Indemnitee by the Company or to the Company
by Indemnitee, as the case may be, in accordance with the foregoing requirements.

     Section 23. Contribution. To the fullest extent permissible under the
applicable law, if the indemnification provided for in this Agreement is unavailable to Indemnitee
for any reason whatsoever, the Company, in lieu of indemnifying Indemnitee, shall contribute to the
amount incurred by Indemnitee, whether for judgments, fines, penalties, excise taxes, amounts paid
or to be paid in settlement and/or for Expenses, in connection with any claim relating to an
indemnifiable event under this Agreement, in such proportion as is deemed fair and reasonable in
light of all of the circumstances of such Proceeding in order to reflect (i) the relative benefits
received by the Company and Indemnitee as a result of the event(s) and/or transaction(s) giving
cause to such Proceeding, and (ii) the relative fault of the Company (and its directors, officers,
employees and agents) and Indemnitee in connection with such event(s) and/or transaction(s).

     Section 24. Governing Law. This Agreement and the legal relations among the
parties shall be governed by, and construed and enforced in accordance with, the laws of the State
of Delaware, without regard to its conflict of laws rules.

     Section 25. Miscellaneous. Use of the masculine pronoun shall be deemed to
include usage of the feminine pronoun where appropriate.

[Signatures follow on next page]

10

 

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year first
above written.

INDEMNITEE:

	 	 	 
	 

	 	 

ALION SCIENCE AND TECHNOLOGY CORPORATION

	 	 	 	 	 
	By:
	 	 	 	 
	Name:

	 	 

	 	 
	Its:
	 	 	 	 

11

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