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                                                                    Exhibit 10.3

                                1,100,000 SHARES

                     FRANKLIN CREDIT MANAGEMENT CORPORATION

                                  COMMON STOCK

                             UNDERWRITING AGREEMENT

                                  July 19, 2005

Ryan Beck & Co., Inc.
18 Columbia Turnpike
Florham Park, New Jersey  07932

Dear Sirs:

                  Franklin Credit Management Corporation, a Delaware corporation
(the "COMPANY"), proposes to issue and sell to Ryan Beck & Co., Inc. ("RYAN
BECK") (the "UNDERWRITER"), an aggregate of 1,100,000 shares (the "FIRM SHARES")
of the Common Stock, par value $0.01 per share (the "COMMON STOCK") of the
Company. In addition, for the sole purpose of covering over-allotments in
connection with the sale of the Firm Shares, the Company proposes to issue and
sell to the Underwriter, at the Underwriter's option and pursuant to Section
2(b) hereof, up to an additional 165,000 shares of Common Stock (the "OPTION
SHARES") as set forth herein. The term "SHARES" as used herein, unless otherwise
indicated, shall mean the Firm Shares and the Option Shares, which are more
fully described in the Registration Statement and the Prospectus referred to
below.

         SECTION 1. REPRESENTATIONS, WARRANTIES AND AGREEMENTS OF THE COMPANY.
The Company represents and warrants to, and agrees with, the Underwriter as of
the date hereof, and as of the First Closing Date (as defined in Section 3(a)
below) and the Option Closing Date (as defined in Section 3(b) below), if any,
as follows:

         (a) The Company has filed with the Securities and Exchange Commission
(the "COMMISSION") a registration statement, and an amendment or amendments
thereto, on Form S-1 (File No. 333-125681) including any related preliminary
prospectus for the registration of the Shares under the Securities Act of 1933,
as amended (the "SECURITIES ACT"), which registration statement and amendment or
amendments thereto have been prepared by the Company in conformity with the
requirements of the Securities Act and the rules and regulations (the "RULES AND
REGULATIONS") of the Commission under the Securities Act. Copies of such
registration statement and each of the amendments thereto have been delivered by
the Company to the Underwriter. As used in this Agreement, "EFFECTIVE TIME"
means the date and the time as of which such Registration Statement, or the most
recent post-effective amendment thereto, if any, was declared effective by the
Commission; "EFFECTIVE DATE" means the date of the Effective Time; "PRELIMINARY
PROSPECTUS" means each prospectus included in such registration statement, or
amendments thereof, before it became effective under the Securities Act and any
prospectus filed with the Commission by the Company pursuant to Rule 424 of the
Rules and Regulations; "REGISTRATION STATEMENT" means such Registration
Statement, as amended at the Effective Time, including all information contained
in the Final Prospectus filed with the Commission pursuant to Rule 424(b) of the
Rules and Regulations and deemed to be a part of the Registration Statement as
of the Effective Time pursuant to Rule 430A of the Rules and Regulations; "FINAL
PROSPECTUS" means the final prospectus in the form first used to confirm sales
of Shares, and "PROSPECTUS" means collectively the "Preliminary Prospectus" and
the "Final Prospectus." If the Company has filed an abbreviated Registration
Statement to register additional shares of Common Stock pursuant to Rule 462(b)
under the Securities Act (the "RULE 462(B) REGISTRATION STATEMENT"), then any
reference herein to the term "REGISTRATION STATEMENT" shall be deemed to include
such Rule 462(b) Registration Statement. Neither the Commission nor any state
regulatory authority has issued any order preventing or suspending the use of
any Preliminary Prospectus or the Registration Statement or any part thereof and
no proceedings for a stop order suspending the effectiveness of the Registration
Statement or any of the Company's securities have been instituted or are
pending, or to the Company's knowledge, threatened.

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         (b) The Registration Statement conforms, and the Prospectus and any
further amendments or supplements to the Registration Statement or the
Prospectus will, when they become effective or are filed with the Commission, as
the case may be, conform in all material respects to the requirements of the
Securities Act and the Rules and Regulations and do not and will not, as of the
applicable Effective Date (as to the Registration Statement and any amendment
thereto) and as of the applicable filing date (as to the Prospectus and any
amendment or supplement thereto) contain an untrue statement of a material fact
or omit to state a material fact required to be stated therein or necessary to
make the statements therein not misleading; provided that no representation or
warranty is made as to information contained in the Registration Statement or
the Prospectus in reliance upon and in conformity with written information
furnished to the Company by or on behalf of the Underwriter specifically for
inclusion THEREIN. The statements contained under the caption "Underwriting" in
the Prospectus constitute the only information furnished to the Company in
writing by the Underwriter expressly for use in the Registration Statement or
the Prospectus, and the Company has not relied upon the Underwriter or its
advisors for any legal, tax or accounting advice.

         (c) The Company (i) has been duly incorporated and is validly existing
as a corporation in good standing under the laws of the State of Delaware, (ii)
is duly qualified to do business and is in good standing as a foreign
corporation in each jurisdiction in which its ownership or lease of property or
conduct of business requires such qualification and (iii) has all corporate
power and authority necessary to own or hold its properties and to conduct the
business in which it is engaged, except to the extent that the failure to be so
authorized or be in good standing would not have a material adverse effect on
the condition, financial or otherwise, or in the earnings, properties, business
or business prospects of the Company and its subsidiaries, taken as a whole (a
"MATERIAL ADVERSE EFFECT"). The Company has no subsidiaries which would
constitute a "significant subsidiary" as defined in Rule 1-02 of Regulation S-X
other than Tribeca Lending Corporation ("Tribeca"). Tribeca and the other
subsidiaries of the Company listed on Exhibit 21.1 of the Registration Statement
are each referred to as a Subsidiary and collectively as the "SUBSIDIARIES".

         (d) (i) Tribeca has been duly incorporated and is validly existing
under the laws of the jurisdiction of its incorporation and has the power and
authority and foreign qualifications necessary to own, lease and operate its
properties and to conduct its businesses, except where the failure to have such
authority or qualifications would not have a Material Adverse Effect; all of the
issued and outstanding shares of capital stock of Tribeca have been duly
authorized and validly issued, are fully paid and non-assessable and are owned
by the Company, directly or through a wholly-owned subsidiary, free and clear of
any security interest, mortgage, pledge, lien, encumbrance or claim, except for
security interests in connection with the guarantee by the Company of Tribeca's
obligations under the Warehouse Facility, as defined in and filed as an exhibit
to the Registration Statement (the "WAREHOUSE FACILITY"); and none of such
shares was issued in violation of the preemptive rights of any stockholder or
warrant holder of Tribeca.

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                  (ii) Each of the Subsidiaries other than Tribeca has been duly
incorporated or formed and is validly existing under the laws of the
jurisdiction of its incorporation or organization and each of such Subsidiaries
has the respective power and authority and foreign qualifications necessary to
own, lease and operate its respective properties and to conduct its businesses,
except where the failure to be so duly incorporated or formed or validly
existing or have such authority or qualifications would not have a Material
Adverse Effect; all of the issued and outstanding capital stock and/or
membership or other equity interests of each Subsidiary have been duly
authorized and validly issued, are fully paid and non-assessable and are owned
by the Company, directly or through a wholly-owned subsidiary, free and clear of
any security interest, mortgage, pledge, lien, encumbrance or claim, except for
security interests in connection with the guarantee by the Company of Tribeca's
obligations under the Warehouse Facility; and none of such shares or membership
or other equity interests was issued in violation of the preemptive rights of
any member, stockholder or warrant holder of any such Subsidiary.

         (e) The Company has a duly authorized, issued and outstanding
capitalization as set forth in the Prospectus, under "Capitalization" and will
have the adjusted capitalization set forth therein on the Closing Date based
upon the assumptions set forth therein, and the Company is not a party to or
bound by any instrument, agreement or other arrangement providing for it to
issue any capital stock, rights, warrants, options or other securities, except
for this Agreement and as described in the Prospectus. The Shares and all other
shares of capital stock issued by the Company conform in all material respects
or, when issued and paid for, will conform in all material respects to the
description with respect thereto contained in the Prospectus. All issued and
outstanding securities of the Company have been duly authorized and validly
issued and are fully paid and nonassessable; and none of such securities were
issued in violation of the preemptive rights of any holders of any security of
the Company or similar contractual rights granted by the Company. The Shares
have been duly authorized and, when issued, paid for and delivered in accordance
with the terms hereof, will be validly issued, fully paid and nonassessable; the
issuance of the Shares will not violate the preemptive rights or similar
contractual or other rights of any person; the holders thereof will not be
subject to any liability solely by reason of being such holders; all corporate
action required to be taken for the authorization, issue and sale of the Shares
has been duly and validly taken; and the certificates representing the Shares
will be in due and proper form. Upon the issuance and delivery pursuant to the
terms hereof of the Shares hereunder, the Underwriter will acquire good and
marketable title to such Shares free and clear of any lien, charge, claim,
encumbrance, pledge, security interest, defect or other restriction or equity of
any kind whatsoever.

         (f) This Agreement has been duly authorized, executed and delivered by
the Company and constitutes the legal, valid and binding obligation of the
Company, enforceable against the Company in accordance with its terms, except as
enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or similar laws affecting the enforcement of
creditors' rights generally and by general equitable principles (whether
enforcement is sought by proceedings in equity or at law), and except insofar as
the indemnification and contribution provisions hereof may be limited by
considerations of public policy.

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         (g) The Company has all requisite corporate power and authority to
execute, deliver and perform its obligations under this Agreement, including
issuance and sale of the Shares.

         (h) The execution, delivery and performance of this Agreement by the
Company and the consummation of the transactions contemplated hereby will not
conflict with or result in a breach or violation of any of the terms or
provisions of, or constitute a default under, any indenture, mortgage, deed of
trust, loan agreement, lease or other agreement or instrument to which the
Company or any of its Subsidiaries is a party or by which the Company or any of
its Subsidiaries is bound or to which any of the property or assets of the
Company or any of its Subsidiaries is subject, nor will such actions result in
any violation of the provisions of (i) the certificate of incorporation (or
other equivalent organizational document) or by-laws (or other equivalent
organizational document) of the Company or any of its Subsidiaries or (ii) any
statute or any order, rule or regulation of any court or governmental agency or
body having jurisdiction over the Company or any of its Subsidiaries or any of
its respective properties or assets. Except for the registration of the Shares
under the Securities Act and such consents, approvals, authorizations,
registrations or qualifications as may be required under the Securities Exchange
Act of 1934, as amended (the "EXCHANGE ACT"), and applicable state or foreign
securities laws or by the National Association of Securities Dealers, Inc. (the
"NASD") in connection with the purchase and distribution of the Shares by the
Underwriter or by the Nasdaq National Market ("NASDAQ") in connection with the
listing of the Shares, no consent, approval, authorization or order of, or
filing or registration with, any such court or governmental agency or body is
required for the execution, delivery and performance of this Agreement by the
Company and the consummation of the transactions contemplated hereby.

         (i) Except pursuant to agreements filed as exhibits to the Registration
Statement, there are no contracts, agreements or understandings between the
Company and any person granting such person the right (other than rights which
have been waived or satisfied) to require the Company to file a registration
statement under the Securities Act with respect to any securities of the Company
owned or to be owned by such person or to require the Company to include such
securities in the securities registered pursuant to the Registration Statement
or in any securities being registered pursuant to any other registration
statement filed by the Company under the Securities Act.

         (j) The Company has not sold or issued any securities during the
six-month period preceding the date of the Preliminary Prospectus, including any
sales pursuant to Rule 144A under, or Regulations D or S of, the Securities Act
other than securities issued pursuant to employee benefit plans, stock option
plans or other employee compensation plans or agreements or pursuant to
outstanding options, rights or warrants, all of which issuances are described in
Item 15 of the Registration Statement.

         (k) The Company and its Subsidiaries, taken as a whole, have not
sustained, since the respective dates as of which information is given in the
Prospectus, any material loss or interference with their respective businesses
from fire, explosion, flood or other calamity, whether or not covered by
insurance, or from any labor dispute or court or governmental action, order or
decree, otherwise than as set forth in the Prospectus; and, since such dates,
there has not been any material change in the capital stock or, except in
connection with the conduct of the Company's business in the ordinary course as
described in the Prospectus (it being understood that the incurrence of debt in
connection with any bulk purchase of mortgage portfolios or origination of
mortgages by Tribeca, as described in the Prospectus, is incurred in the
ordinary course of the Company's business), long-term debt of the Company on a
consolidated basis or any material adverse change, or any development involving
a prospective material adverse change, in or affecting the management,
consolidated financial position, stockholders' equity, results of operations or
business of the Company and its Subsidiaries taken as a whole, otherwise than as
set forth or contemplated in the Prospectus.

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         (l) The consolidated financial statements (including the related notes
and supporting schedules) filed as part of the Registration Statement or
included in the Prospectus present fairly the financial condition and results of
operations of the Company on a consolidated basis, at the dates and for the
periods indicated, and have been prepared in conformity with generally accepted
accounting principles applied on a consistent basis throughout the periods
involved. The other financial information and data filed as part of the
Registration Statement or included in the Prospectus is fairly presented and
prepared on a basis consistent with such financial statements and the books and
records of the Company.

         (m) Deloitte & Touche LLP, who have certified the financial statements
of the Company, whose report is contained in the Prospectus and who have
delivered the initial letter referred to in Section 7(f) hereof, are independent
public accountants with respect to the Company as required by the Securities Act
and the Rules and Regulations.

         (n) Each of the Company and its Subsidiaries has good and marketable
title in fee simple to, or valid and enforceable leasehold estates in, all items
of real and personal property owned or leased by it, in each case free and clear
of all liens, charges, claims, encumbrances, pledges, security interests,
defects or other restrictions or equities of any kind whatsoever, except for
such security interests as are described in the Prospectus, including the
security interests in connection with the Company's guarantee of Tribeca's
obligations under the Warehouse Facility, or such as do not materially affect
the value of such property and do not materially interfere with the use made and
proposed to be made of such property by the Company and its Subsidiaries, and
except for such title defects, encumbrances and security interests and other
restrictions which may apply to OREO of the Company.

         (o) The Company and/or its Subsidiaries carries, or is covered by,
insurance in such amounts and covering such risks for the conduct of the
businesses of the Company and its Subsidiaries, taken as a whole, and the value
of their properties as is customary for companies engaged in similar businesses
in similar industries.

         (p) The Company owns or possesses adequate rights to use all material
patents, patent applications, trademarks, service marks, trade names, trademark
registrations, service mark registrations, copyrights and licenses necessary for
the conduct of its business as described in the Prospectus (the "INTELLECTUAL
PROPERTY") and has no reason to believe that the conduct of its business will
conflict with, and has not received any notice of any claim of conflict with,
any such rights of others, in each case except as could not reasonably be
expected to have a Material Adverse Effect. The Company has taken reasonable
security measures to protect the secrecy, confidentiality and value of its
Intellectual Property and other proprietary information in all material
respects.

         (q) Except as set forth in the Prospectus, there are no legal or
governmental proceedings pending to which the Company or any of its Subsidiaries
is a party or of which any property or assets of the Company or any of its
Subsidiaries is the subject which, if determined adversely to the Company or any
of its Subsidiaries would reasonably be expected to have a Material Adverse
Effect; and, to the best of the Company's knowledge, no such proceedings are
threatened or contemplated by governmental authorities or threatened by others.

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         (r) There are no contracts or other documents which are required to be
described in the Prospectus or filed as exhibits to the Registration Statement
by the Securities Act or by the Rules and Regulations which have not been
described in the Prospectus or filed as exhibits to the Registration Statement.

         (s) No relationship, direct or indirect, exists between or among the
Company or any of its Subsidiaries on the one hand, and the directors, officers,
stockholders, customers or suppliers of the Company on the other hand, which is
required to be described in the Prospectus which is not so described.

         (t) No labor disturbance by the employees of the Company or any of its
Subsidiaries exists or, to the knowledge of the Company, is imminent, which
would reasonably be expected to have a Material Adverse Effect. Neither the
Company nor any Subsidiary is in violation of or has received notice of any
violation with respect to any federal or state law relating to discrimination in
the hiring, promotion or pay of any employees, nor any applicable federal or
state wages and hours law, nor any state law precluding the denial of credit due
to the neighborhood in which a property is situated, the violation of which
individually or in the aggregate could have a Material Adverse Effect.

         (u) The Company is in compliance in all material respects with all
presently applicable provisions of the Employee Retirement Income Security Act
of 1974, as amended, including the regulations and published interpretations
thereunder ("ERISA"); no "reportable event" (as defined in ERISA) has occurred
with respect to any "pension plan" (as defined in ERISA) for which the Company
would have any material liability; the Company has not incurred and does not
expect to incur liability under (i) Title IV of ERISA with respect to
termination of, or withdrawal from, any "pension plan" or (ii) Sections 412 or
4971 of the Internal Revenue Code of 1986, as amended, including the regulations
and published interpretations thereunder (the "CODE"); and each "pension plan"
for which the Company would have any liability that is intended to be qualified
under Section 401(a) of the Code has received a favorable determination letter
from the Internal Revenue Service and no event has occurred or condition exists
that would be likely to adversely affect the qualification in such determination
letter.

         (v) The Company and each of its Subsidiaries has filed all federal,
state and local income and franchise tax returns required to be filed through
the date hereof or has requested extensions (except where the failure to so file
or request an extension would not reasonably be expected to have a Material
Adverse Effect), has paid all taxes due thereon and has established adequate
reserves for such taxes which are not yet due and payable, except for any taxes
that are being contested in good faith and reserved for or as otherwise set
forth in or contemplated by the Prospectus, and, to the Company's knowledge,
does not have any tax deficiency or claims outstanding, proposed or assessed
against it which has had or would reasonably be expected to have a Material
Adverse Effect.

         (w) Since the date as of which information is given in the Prospectus
through the date hereof, and except as may otherwise be disclosed in the
Prospectus, neither the Company nor any of its Subsidiaries has (i) issued or
granted any securities (other than shares of Common Stock issued upon the
exercise of options or warrants described in the Prospectus or shares issued by
Subsidiaries to the Company or direct or indirect wholly owned subsidiaries of
the Company), (ii) incurred any material liability or obligation, direct or
contingent, other than liabilities and obligations which were incurred in the
ordinary course of business, (iii) entered into any material transaction not in
the ordinary course of business, nor (iv) declared or paid any dividend on its
capital stock. Neither the Company nor any Subsidiary of the Company has any
material liability of any nature, contingent or otherwise, except as set forth
in the Prospectus.

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         (x) The Company (i) makes and keeps accurate books and records and (ii)
maintains internal accounting controls which provide reasonable assurance that
(A) transactions are executed in accordance with management's authorization, (B)
transactions are recorded as necessary to permit preparation of its financial
statements and to maintain accountability for its assets, (C) access to its
assets is permitted only in accordance with management's authorization and (D)
the reported accountability for its assets is compared with existing assets at
reasonable intervals.

         (y) The Company has established and maintains disclosure controls and
procedures (as such term is defined in Rule 13a-15 and 15d-15 under the Exchange
Act), which (i) are designed to ensure that material information relating to the
Company is made known to the Company's principal executive officer and its
principal financial officer by others within those entities, particularly during
the periods in which the periodic reports required under the Exchange Act are
being prepared and (ii) provide for the periodic evaluation of the effectiveness
of such disclosure controls and procedures as of the end of each of the
Company's quarterly and annual fiscal periods. Based on the most recent
evaluation of its disclosure controls and procedures, the Company is not aware
of (i) any significant deficiency in the design or operation of internal
controls which could reasonably adversely affect the Company's ability to
record, process, summarize and report financial data or any material weaknesses
in internal controls; or (ii) any fraud, whether or not material, that involves
management or other employees who have a significant role in the Company's
internal controls.

         (z) The Company is in compliance in all material respects with all
applicable provisions of the Sarbanes-Oxley Act of 2002 and all rules and
regulations promulgated thereunder or implementing the provisions thereof (the
"Sarbanes-Oxley Act") that are in effect and is actively taking steps, or will
actively take steps, reasonably necessary to ensure that it will be in
compliance with other applicable provisions of the Sarbanes-Oxley Act not
currently in effect in order to be in compliance upon and at all times after the
effectiveness of such provisions.

         (aa) Neither the Company nor any of its Subsidiaries (i) is in
violation of its certificate of incorporation (or other equivalent
organizational document) or by-laws (or other equivalent organizational
document), (ii) is in default, and no event has occurred which, with notice or
lapse of time or both, would constitute such a default, in the due performance
or observance of any term, covenant or condition contained in any indenture,
mortgage, deed of trust, loan agreement, lease or other agreement or instrument
to which it is a party or by which it is bound or to which any of its properties
or assets is subject, except for such defaults that would not result in a
Material Adverse Effect or (iii) is in violation in any respect of any law,
ordinance, governmental rule, regulation or court decree of any foreign,
federal, state, municipal or local agency or governmental body to which it or
its property or assets may be subject (including those relating to any aspect of
securities registration or issuance, banking, bank holding companies, consumer
credit, truth-in-lending, truth-in-savings, usury, currency transaction
reporting, anti-money laudering and customer identification regulations,
environmental protection, occupational safety and health and equal employment
practices) or has not failed to obtain any license, permit, certificate,
franchise or other governmental authorization or permit necessary to the
ownership of its property or to the conduct of its business, except for such
violations that would not result in a Material Adverse Effect.

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         (bb) The minute books of each of (i) the Company, (ii) Tribeca and
(iii) the Company's Subsidiaries, other than Tribeca, for which minute books are
kept have been made available to the Underwriter and contain a summary, in all
material respects, of all meetings and actions of the directors, stockholders,
members and managers (as the case may be) of the Company and its Subsidiaries
since January 1, 2002, and reflect all transactions referred to in such minutes
accurately in all material respects.

         (cc) Neither the Company nor any director, officer, agent, employee or
other person associated with or acting on behalf of the Company, has used any
corporate funds for any unlawful contribution, gift, entertainment or other
unlawful expense relating to political activity; made any direct or indirect
unlawful payment to any foreign or domestic government official or employee from
corporate funds; violated or is in violation of any provision of the Foreign
Corrupt Practices Act of 1977; or made any bribe, rebate, payoff, influence
payment, kickback or other unlawful payment in connection with the operations of
the Company and its Subsidiaries.

         (dd) The Company and its Subsidiaries are in compliance in all material
respects with all applicable federal, state and local laws and regulations
applicable to them, including, without limitation, the Fair Debt Collection
Practices Act, the Truth-In-Lending Act, the Fair Credit Billing Act, the Equal
Credit Opportunity Act, the Fair Credit Reporting Act, the Gramm-Leach-Bliley
Act, and comparable statutes in states where consumers reside and/or where
credit grantors are located, and the respective rules and regulations
thereunder, the failure to comply with which would have a Material Adverse
Effect. Neither the Company nor any of its Subsidiaries is a party to any
agreement or memorandum of understanding with, or a party to any commitment
letter or similar undertaking to, or is subject to any order or directive by, or
is a recipient of any extraordinary supervisory letter from, or has adopted any
board resolutions at the request of any of regulatory authority which restricts
materially the conduct of its business, nor has the Company or any of its
Subsidiaries been advised by any of the regulatory authorities that it is
contemplating issuing or requesting (or considering the appropriateness of
issuing or requesting) any of the foregoing.

         (ee) The Company is not and, after giving effect to the offer and sale
of the Shares, will not be an "investment company" as such term is defined in
the Investment Company Act of 1940, as amended.

         (ff) The Common Stock to be offered hereby is authorized for listing on
the Nasdaq National Market.

         (gg) Neither of the Company nor its Subsidiaries has taken or will
take, directly or indirectly, any action designed to cause or result in, or
which has constituted or which might reasonably be expected to constitute, the
stabilization or manipulation, under the Exchange Act or otherwise, of the price
of the Shares to facilitate the sale or the resale of the Shares hereby.

         (hh) The Company and its Subsidiaries possess such permits, licenses,
approvals, consents and other authorizations (collectively, "GOVERNMENTAL
LICENSES") issued by the appropriate federal, state, local or foreign regulatory
agencies or bodies necessary to conduct the business now operated by them,
except for such Governmental Licenses the absence of which would not cause a
Material Adverse Effect; the Company and its Subsidiaries are in compliance with
the terms and conditions of all such Governmental Licenses, except where the
failure so to comply would not, singly or in the aggregate, have a Material
Adverse Effect; all of the Governmental Licenses are valid and in full force and
effect, except when the invalidity of such Governmental Licenses or the failure
to such Governmental Licenses to be in full force and effect would not have a
Material Adverse Effect; and neither the Company nor any of its Subsidiaries has
received any notice of proceedings relating to the revocation or modification of
any such Governmental Licenses which, singly or in the aggregate, if the subject
of an unfavorable decision, ruling or finding, would result in a Material
Adverse Effect.

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         (ii) The Company has not distributed, nor will it distribute prior to
the First Closing Date (as defined below), any offering material in connection
with the offering and sale of the Shares other than the Prospectus, the
Registration Statement or any other materials permitted by the Securities Act,
if any.

         (jj) Except as described in the Prospectus under "Underwriting," there
are no claims, payments, issuances, arrangements or understandings, whether oral
or written, for services in the nature of a finder's or origination fee with
respect to the sale of the Shares hereunder.

         (kk) Neither the Company nor any Subsidiary has any agreement or
understanding with any person (A) concerning the future acquisition by the
Company of a controlling interest such person or (B) concerning the future
acquisition by such person of a controlling interest in the Company or any
Subsidiary, in either case that is required by the Securities Act or the Rules
and Regulations to be disclosed by the Company that is not disclosed in the
Prospectus.

         (ll) No forward-looking statement (within the meaning of Section 27A of
the Securities Act and Section 21E of the Exchange Act) contained in the
Prospectus has been made or reaffirmed without a reasonable basis or has been
disclosed other than in good faith.

         (mm) There has been no storage, generation, transportation, handling,
treatment, disposal, discharge, emission, or other release of any kind of toxic
or other wastes or other hazardous substances by, due to, or caused by the
Company or any of its subsidiaries (or, to the best of the Company's knowledge,
any other entity for whose acts or omissions the Company or any of its
subsidiaries is or may be liable) upon any of the property now or previously
owned or leased by the Company or any of its subsidiaries, or upon any other
property, in violation of any statute or any ordinance, rule, regulation, order,
judgment, decree or permit or which would, under any statute or any ordinance,
rule (including rule of common law), regulation, order, judgment, decree or
permit, give rise to any liability, except for any violation or liability which
would not have, singularly or in the aggregate with all such violations and
liabilities, a Material Adverse Effect.

         Any certificate signed by any officer of the Company delivered to the
Underwriter or to counsel for the Underwriter in connection with this Agreement
shall be deemed a representation and warranty by the Company to the Underwriter
as to the matters covered thereby on the date of such certificate, unless
subsequently amended or supplemented.

         SECTION 2.  PURCHASE OF THE SHARES BY THE UNDERWRITER.

         (a) On the basis of the representations and warranties contained in,
and subject to the terms and conditions of, this Agreement, the Company agrees
to issue and sell to the Underwriter and the Underwriter agrees to buy from the
Company, the Firm Shares at the price per Share set forth in the Price
Determination Agreement (a form of which is annexed as Exhibit B), at the place
and time hereinafter specified.

                                       9
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         (b) In addition, subject to the terms and conditions of this Agreement,
and upon the basis of the representations, warranties and agreements herein
contained, the Company hereby grants an option to the Underwriter to purchase
all or any part of the Option Shares at the same price per Share as the
Underwriter shall pay for the Firm Shares being sold pursuant to the provisions
of subsection (a) of this Section 2. This option may be exercised once in whole
or in part within 30 days after the effective date of the Registration Statement
upon notice by the Underwriter to the Company advising as to the amount of
Option Shares as to which the option is being exercised, the names and
denominations in which the certificates for such Option Shares are to be
registered and the time and date when such certificates are to be delivered. The
option granted hereunder may be exercised only to cover over-allotments in the
sale by the Underwriter of Firm Shares referred to in subsection (a) above. In
the event the Company declares or pays a dividend or distribution on its Common
Stock, whether in the form of cash, shares of Common Stock or any other
consideration, following the First Closing Date and prior to the Option Closing
Date, such dividend or distribution shall also be paid on the Option Shares on
the Option Closing Date.

         SECTION 3. DELIVERY AND PAYMENT.

         (a) Delivery of the Firm Shares against payment therefor shall take
place at the offices of Ryan Beck (or at such other place as may be designated
by agreement between the Underwriter and the Company) at 10:00 a.m. New York
time, on the third or fourth full business day after the Effective Date, in
accordance with Rule 15(c)6-1 of the Exchange Act. Such time and date of payment
and delivery for the Firm Shares is referred to herein as the "First Closing
Date."

         (b) In addition, in the event the Underwriter exercises the option to
purchase from the Company all or any portion of the Option Shares pursuant to
the provisions of Section 2(b), then delivery of the Option Shares against
payment therefor shall take place at the offices of Ryan Beck (or at such other
place as may be designated by agreement between the Underwriter and the Company)
at such time and date as shall be determined by the Underwriter but shall not be
earlier than two nor later than five full business days after the exercise of
said option, nor in any event prior to the First Closing Date. Such time and
date is referred to herein as the "Option Closing Date."

         (c) The Company will make the certificates for the securities
comprising the Shares to be purchased by the Underwriter hereunder available to
you for checking in electronic form or, if requested by the Underwriter in
certificated form, at least two full business days prior to the First Closing
Date or the Option Closing Date, as the case may be (which are collectively
referred to herein as the "CLOSING DATES"). The certificates shall be in such
names and denominations as the Underwriter may request, at least two full
business days prior to the applicable Closing Date. Time shall be of the essence
and delivery at the time and place specified in this Agreement is a further
condition to the obligations of the Underwriter.

         (d) Payment for the Shares shall be made by wire transfer in
immediately available funds to a bank account designated by the Company at least
two business days prior to the First Closing Date or the Option Closing Date, as
the case may be, against receipt of the definitive certificates in negotiable
form for such Shares by the Underwriter for the respective accounts of the
Underwriter registered in such names and in such denominations as the
Underwriter may request, unless the Company notifies the Underwriter at least
two business days in advance of the First Closing Date or the Option Closing
Date, as applicable, that it wishes to receive payment by certified or bank
cashier's checks payable in New York Clearing House funds at the time and date
of delivery of such Shares as required by the provisions of subsections (a) and
(b) above.

                                       10
<PAGE>

         SECTION 4. OFFERING OF SHARES BY THE UNDERWRITER. It is understood that
the Underwriter proposes to make a public offering of the Shares at the price
and upon the other terms set forth in the Prospectus. The Underwriter may, at
its own expense, enter into one or more agreements, in its sole discretion, as
it deems advisable, with one or more broker-dealers who shall act as dealers in
connection with such public offering. The Underwriter may from time to time
change the public offering price after the closing of the public offering and
increase or decrease the concessions and discounts to dealers as it may
determine.

         SECTION 5. FURTHER AGREEMENTS OF THE COMPANY. The Company agrees with
the Underwriter:

         (a) To prepare the Final Prospectus in a form approved by the
Underwriter and to file such Final Prospectus pursuant to Rule 424(b) under the
Securities Act not later than the Commission's close of business on the second
business day following the execution and delivery of this Agreement or, if
applicable, such earlier time as may be required by Rule 430A(a)(3) under the
Securities Act; to make no further amendment or any supplement to the
Registration Statement or to the Final Prospectus except as permitted herein; to
advise the Underwriter, promptly after it receives notice thereof, of the time
when any amendment to the Registration Statement has been filed or becomes
effective or any supplement to the Final Prospectus or any amended Final
Prospectus has been filed and to furnish the Underwriter with copies thereof; to
advise the Underwriter, promptly after it receives notice thereof, of the
issuance by the Commission of any stop order or of any order preventing or
suspending the use of any Preliminary Prospectus or the Final Prospectus, of the
suspension of the qualification of the Shares for offering or sale in any
jurisdiction, of the initiation or threatening of any proceeding for any such
purpose, or of any request by the Commission for the amending or supplementing
of the Registration Statement or the Final Prospectus or for additional
information; and, in the event of the issuance of any stop order or of any order
preventing or suspending the use of any Preliminary Prospectus or the Final
Prospectus or suspending any such qualification, to promptly use its best
efforts to obtain its withdrawal;

         (b) To furnish promptly to the Underwriter and to counsel for the
Underwriter a signed copy of the Registration Statement as originally filed with
the Commission, and each amendment thereto filed with the Commission, including
all consents and exhibits filed therewith;

         (c) To deliver promptly to the Underwriter such number of the following
documents as the Underwriter shall reasonably request: (i) conformed copies of
the Registration Statement as originally filed with the Commission and each
amendment thereto (in each case excluding exhibits) and (ii) each Preliminary
Prospectus, the Final Prospectus and any amended or supplemented Final
Prospectus; and, if the delivery of a prospectus is required at any time after
the Effective Time in connection with the offering or sale of the Shares or any
other securities relating thereto and if at such time any events shall have
occurred as a result of which the Final Prospectus as then amended or
supplemented would include an untrue statement of a material fact or omit to
state any material fact necessary in order to make the statements therein, in
the light of the circumstances under which they were made when such Final
Prospectus is delivered, not misleading, or, if for any other reason it shall be
necessary to amend or supplement the Final Prospectus in order to comply with
the Securities Act, to notify the Underwriter and, upon its request, to prepare
and furnish without charge to the Underwriter and to any dealer in securities as
many copies as the Underwriter may from time to time reasonably request of an
amended or supplemented Final Prospectus which will correct such statement or
omission or effect such compliance;

                                       11
<PAGE>

         (d) To file promptly with the Commission any amendment to the
Registration Statement or the Prospectus or any supplement to the Prospectus
that may, in the judgment of the Company or the reasonable judgment of the
Underwriter, be required by the Securities Act or requested by the Commission;

         (e) Prior to filing with the Commission any amendment to the
Registration Statement or supplement to the Prospectus or any Prospectus
pursuant to Rule 424 of the Rules and Regulations, to furnish a copy thereof to
the Underwriter and counsel for the Underwriter and not file any such proposed
amendment to which the Underwriter reasonably objects;

         (f) As soon as practicable after the Effective Date, to make generally
available to the Company's security holders and to the Underwriter an earnings
statement of the Company (which need not be audited) complying with Section
1l(a) of the Securities Act and the Rules and Regulations (including, at the
option of the Company, Rule 158);

         (g) Upon the request of the Underwriter, for a period of two (2) years
following the Effective Date, to furnish to the Underwriter copies of all
materials furnished by the Company to its stockholders generally and all public
reports and all reports and financial statements furnished by the Company to the
principal national securities exchange or market upon which the Common Stock may
be listed pursuant to requirements of or agreements with such exchange or market
or to the Commission pursuant to the Exchange Act or any rule or regulation of
the Commission thereunder (except for such materials, reports and statements as
are available on EDGAR);

         (h) Promptly from time to time to take such action as the Underwriter
may reasonably request to qualify the Shares for offering and sale under the
securities laws of such jurisdictions as the Underwriter may request and to
comply with such laws so as to permit the continuance of sales and dealings
therein in such jurisdictions for as long as may be necessary to complete the
distribution of the Shares; provided that in connection therewith, the Company
shall not be required to qualify as a foreign corporation, to submit to general
taxation or to file a general consent to service of process in any jurisdiction;

         (i) For a period from the date of the Prospectus until January 21, 2006
(the "LOCK-UP PERIOD"), not to, directly or indirectly, (1) offer for sale,
sell, pledge or otherwise dispose of (or enter into any transaction or device
which is designed to, or could be expected to, result in the disposition by any
person at any time in the future of) any shares of Common Stock or securities
convertible into or exchangeable for Common Stock or substantially similar
securities (other than (x) the Shares, (y) shares of Common Stock issued
pursuant to employee benefit plans, stock option plans or other employee
compensation plans existing on the date hereof or pursuant to currently
outstanding options, warrants or rights or (z) options, rights or warrants with
respect to up to 50,000 shares of Common Stock or securities convertible into or
exchangeable for Common Stock or substantially similar securities), or (2) enter
into any swap or other derivatives transaction that transfers to another, in
whole or in part, any of the economic benefits or risks of ownership of such
shares of Common Stock, whether any such transaction described in clause (1) or
(2) above is to be settled by delivery of Common Stock or other securities, in
cash or otherwise, in each case without the prior written consent of the
Underwriter. The Company agrees not to accelerate the vesting of any option or
warrant or the lapse of any repurchase right prior to the expiration of the
Lock-Up Period without the prior written consent of the Underwriter;

                                       12
<PAGE>

         (j) To not invest or otherwise use the proceeds from the sale of the
Shares in the offering in such a manner as would require the Company to register
as an "investment company" as defined in the Investment Company Act of 1940, as
amended, and the rules and regulations of the Commission thereunder;

         (k) During the Lock-Up Period, to obtain an executed letter in the form
of Exhibit A hereto from each new officer and director who has not previously
executed such a letter;

         (l) The Company will apply the net proceeds received by it from the
sale of the Shares for the purposes set forth under "Use of Proceeds" in the
Prospectus;

         (m) Prior to the First Closing Date, the Company will make all filings
required to list the Company Shares on the Nasdaq National Market, subject only
to official notice of issuance;

         (n) The Company will maintain a Transfer Agent for its Common Stock;
and

         (o) Until the completion of the distribution of the Shares, and for 25
days thereafter, the Company shall not without the prior written consent of the
Underwriter, issue, directly or indirectly, any press release or other
communication or hold any press conference with respect to the Company or its
activities or the offering contemplated hereby, except as required by applicable
law, regulation or rule (including any regulation or rule of Nasdaq); provided
in such case that the Company has delivered a copy of such press release or
other communication to the Underwriter prior to such issuance.

         SECTION 6. EXPENSES.

         (a) The Company agrees to pay: (i) all of the Underwriter's reasonable
out of pocket expenses incurred in connection with its services under this
Agreement, including the reasonable expenses and fees of counsel to the
Underwriter, (ii) the costs incident to the sale and delivery of the Shares and
any taxes payable in that connection; (iii) the costs incident to the
preparation, printing and filing under the Securities Act of the Registration
Statement and any amendments and exhibits thereto; (iv) the costs of
distributing the Registration Statement as originally filed and each amendment
thereto and any post-effective amendments thereof (including, in each case,
exhibits), any Preliminary Prospectus, the Final Prospectus and any amendment or
supplement to the Final Prospectus, all as provided in this Agreement; (v) the
costs of reproducing and distributing this Agreement and any other related
documents in connection with the offering, purchase, sale and delivery of the
Shares; (vi) the filing fees and expenses incident to securing the review by the
NASD of the terms of sale of the Shares (including related fees and expenses of
counsel to the Underwriter, which obligation shall be in addition to the
obligation referred to in subparagraph (i) above); (vii) any applicable listing
or other fees; (viii) the fees and expenses of preparing and distributing a Blue
Sky Memorandum (including related reasonable fees and expenses of counsel to the
Underwriter, which obligation shall be in addition to the obligation referred to
in subparagraph (i) above); (ix) the costs and expenses related to the
production of up to five bound volumes of the completed Registration Statement
for the Underwriter; and (x) the costs and expenses relating to investor
presentations on any "road show" undertaken in connection with the marketing of
the offering of the Shares including, without limitation, expenses associated
with the production of road show slides and graphics, printing and advertising
fees and expenses, fees and expenses of any consultants engaged by the Company
in connection with the road show presentations, travel and lodging expenses of
the Underwriter and officers of the Company and any such consultants, and all
other costs and expenses incident to the performance of the obligations of the
Company under this Agreement, including all accounting and counsel fees and
expenses incurred by the Company in connection with the offering of the Shares
hereunder. Notwithstanding the foregoing, the fees and expenses referred to in
subparagraph (i) above shall not exceed (without the prior consent of the
Company) $150,000 in the aggregate, payable in accordance with the engagement
letter between the Underwriter and the Company dated February 7, 2005 (the
"ENGAGEMENT LETTER").

                                       13
<PAGE>

         (b) No person is entitled either directly or indirectly to compensation
from the Company, from the Underwriter or from any other person for services as
a finder in connection with the proposed offering, and the Company agrees to
indemnify and hold harmless the Underwriter, against any losses, claims, damages
or liabilities, joint or several (which shall, for all purposes of this
Agreement, include, but not be limited to, all costs of defense and
investigation and all attorneys' fees), to which the Underwriter may become
subject insofar as such losses, claims, damages or liabilities (or actions in
respect thereof) arise out of or are based upon the claim of any person (other
than an employee of the party claiming indemnity) or entity that he or it is
entitled to a finder's fee in connection with the proposed offering by reason of
such person's or entity's influence or prior contact with the Company.

         SECTION 7. CONDITIONS OF UNDERWRITER'S OBLIGATIONS. The obligations of
the Underwriter to purchase and pay for the Shares it has agreed to purchase
hereunder on the respective Closing Dates are subject (x) to the accuracy when
made and as of the Closing Dates, of the representations and warranties of the
Company contained herein, (y) to the performance by the Company of its
obligations hereunder and (z) to each of the following additional terms and
conditions:

         (a) The Final Prospectus shall have been timely filed with the
Commission in accordance with Section 5(a) of this Agreement; no stop order
suspending the effectiveness of the Registration Statement or any part thereof
shall have been issued and no proceeding for that purpose shall have been
initiated or threatened by the Commission; and any request of the Commission for
inclusion of additional information in the Registration Statement or the
Prospectus or otherwise shall have been complied with.

         (b) The Underwriter shall not have discovered and disclosed to the
Company on or prior to either of the Closing Dates that the Registration
Statement or the Final Prospectus or any amendment or supplement thereto
contains an untrue statement of a material fact or omits to state a material
fact which is required to be stated therein or is necessary to make the
statements therein not misleading.

         (c) Kramer Levin Naftalis & Frankel LLP shall have furnished to the
Underwriter its written opinion, as counsel to the Company, addressed to the
Underwriter and dated the First Closing Date, in substantially the form attached
hereto as Exhibit C.

         (d) Kirkpatrick & Lockhart Nicholson Graham LLP shall have furnished to
the Underwriter its written opinion, as special regulatory counsel to the
Company, addressed to the Underwriter and dated the First Closing Date, in
substantially the form attached hereto as Exhibit D.

         (e) All corporate proceedings and other legal matters relating to this
Agreement, the Registration Statement, the Prospectus and other related matters
shall be reasonably satisfactory to or approved by Lowenstein Sandler PC,
counsel to the Underwriter, and the Underwriter shall have received from such
counsel a signed opinion, dated as of the First Closing Date, in form and
substance satisfactory to the Underwriter. The Company and its Subsidiaries
shall have furnished to counsel for the Underwriter such documents as it may
reasonably request for the purpose of enabling it to render such opinion.

                                       14
<PAGE>

         (f) At the time of execution of this Agreement, the Underwriter shall
have received from Deloitte & Touche LLP a letter, in form and substance
satisfactory to the Underwriter, addressed to the Underwriter and dated the date
hereof (i) confirming that they are independent public accountants within the
meaning of the Securities Act and are in compliance with the applicable
requirements relating to the qualification of accountants under Rule 2-01 of
Regulation S-X of the Commission and (ii) stating, as of the date hereof (or,
with respect to matters involving changes or developments since the respective
dates as of which specified financial information is given in the Prospectus, as
of a date not more than five days prior to the date hereof), the conclusions and
findings of such firm with respect to the financial information and other
matters ordinarily covered by accountants' "comfort letters" to Underwriter in
connection with registered public offerings.

         (g) With respect to the letters of Deloitte & Touche LLP referred to in
the preceding paragraph and delivered to the Underwriter concurrently with the
execution of this Agreement (each, an "INITIAL LETTER"), the Company shall have
furnished to the Underwriter a letter (the "BRING-DOWN LETTER") of such
accountants, addressed to the Underwriter and dated the First Closing Date (i)
confirming that they are independent public accountants within the meaning of
the Securities Act and are in compliance with the applicable requirements
relating to the qualification of accountants under Rule 2-01 of Regulation S-X
of the Commission, (ii) stating, as of the date of the bring-down letter (or,
with respect to matters involving changes or developments since the respective
dates as of which specified financial information is given in the Prospectus, as
of a date not more than five days prior to the date of the bring-down letter),
the conclusions and findings of such firm with respect to the financial
information and other matters covered by the initial letter and (iii) confirming
the conclusions and findings set forth in the initial letter.

         (h) The Company shall have furnished to the Underwriter a certificate,
dated the First Closing Date, of its Chief Executive Officer and its Chief
Financial Officer stating that:

                  (i) The representations, warranties and agreements of the
         Company in Section 1 are true and correct in all material respects as
         of the First Closing Date; the Company has complied in all material
         respects with all its agreements contained herein; and the conditions
         set forth in this Section 8 have been fulfilled; and

                  (ii) They have carefully examined the Registration Statement
         and the Prospectus and, in their opinion (A) as of the Effective Date,
         the Registration Statement and the Prospectus did not include any
         untrue statement of a material fact and did not omit to state a
         material fact required to be stated therein or necessary to make the
         statements therein not misleading, and (B) since the Effective Date no
         event has occurred which should have been set forth in a supplement or
         amendment to the Registration Statement or the Prospectus which was not
         so set forth therein.

                                       15
<PAGE>

         (i) The Company and its Subsidiaries, taken as a whole, have not
sustained, since the respective dates as of which information is given in the
Prospectus, any loss or interference with their respective businesses from fire,
explosion, flood or other calamity, whether or not covered by insurance, or from
any labor dispute or court or governmental action, order or decree, otherwise
than as set forth in the Prospectus; and, since such dates, there has not been
any change in the capital stock or, except in connection with the conduct of the
Company's business in the ordinary course as described in the Prospectus (it
being understood that the incurrence of debt in connection with any bulk
purchase of mortgage portfolios or origination of mortgages by Tribeca, as
described in the Prospectus, is incurred in the ordinary course of the Company's
business), long-term debt of the Company on a consolidated basis or any adverse
change, or any development involving a prospective adverse change, in or
affecting the management, consolidated financial position, stockholders' equity,
results of operations or business of the Company and its Subsidiaries taken as a
whole, otherwise than as set forth or contemplated in the Prospectus, the effect
of which, in any such case,(1) is, in the judgment of the Underwriter, so
material and adverse as to make it impracticable or inadvisable to proceed with
the public offering or the delivery of the Shares being delivered on the
respective Closing Date on the terms and in the manner contemplated in the
Prospectus.

         (j) Subsequent to the execution and delivery of this Agreement there
shall not have occurred any of the following: (i) trading in securities
generally on the New York Stock Exchange, the American Stock Exchange, the
Nasdaq National Market or in the over-the-counter market, or trading in any
securities of the Company on any exchange or in the over-the-counter market,
shall have been suspended or minimum prices shall have been established on any
such exchange or such market by the Commission, by such exchange or by any other
regulatory body or governmental authority having jurisdiction, (ii) a banking
moratorium shall have been declared by Federal or state authorities, (iii) the
United States shall have become engaged in hostilities, there shall have been an
escalation in hostilities or acts of terrorism involving the United States or
there shall have been a declaration of a national emergency or war by the United
States or (iv) there shall have occurred such a material adverse change in
general economic, political or financial conditions (or the effect of
international conditions on the financial markets in the United States shall be
such) as to make it, in the judgment of the Underwriter, impracticable or
inadvisable to proceed with the public offering or delivery of the Shares being
delivered on the respective Closing Date on the terms and in the manner
contemplated in the Prospectus.

         (k) The Common Stock, including the Shares, shall be listed on the
Nasdaq National Market.

         (l) Prior to the First Closing Date, the Underwriter shall have
received the legally binding and enforceable agreements in the form of Exhibit A
hereto from the persons and entities listed on Schedule B hereto (such executed
agreements being referred to as the "LOCK-UP AGREEMENTS").

         (m) No action shall have been taken by the Commission or the NASD, the
effect of which would make it improper, at any time prior to the respective
Closing Date, for members of the NASD to execute transactions (as principal or
agent) in the Shares and no proceedings for the taking of such action shall have
been instituted or shall be pending, or, to the knowledge of the Underwriter or
the Company, shall be contemplated by the Commission or the NASD. The Company
and the Underwriter represent that at the date hereof it has no knowledge that
any such action is in fact contemplated by the Commission or the NASD. The
Company shall have advised the Underwriter of any NASD affiliation of any of its
officers, directors, stockholders or their affiliates.

                                       16
<PAGE>

         (n) Upon exercise of the option provided for in Section 2(b) hereof,
the obligations of the Underwriter to purchase and pay for the Option Shares
referred to therein will be subject (as of the date hereof and as of the Option
Closing Date) to the following additional conditions:

                  (i) The Registration Statement shall remain effective at the
Option Closing Date, and no stop order suspending the effectiveness thereof
shall have been issued and no proceedings for that purpose shall have been
instituted or shall be pending, or, to the knowledge of the Underwriter or the
Company, shall be contemplated by the Commission, and any reasonable request on
the part of the Commission for additional information shall have been complied
with.

                  (ii) At the Option Closing Date, Kramer Levin Naftalis &
Frankel LLP, and Kirkpatrick & Lockhart Nicholson Graham LLP shall have
furnished to the Underwriter their written opinions as counsel and special
counsel, respectively, to the Company addressed to the Underwriter, which
opinions shall be dated the Option Closing Date and shall be substantially the
same in scope and substance as the opinions furnished to the Underwriter at the
First Closing Date pursuant to Sections 7(c) and (d), respectively, except that
such opinions, where appropriate, shall cover the Option Shares.

                  (iii) At the Option Closing Date there shall have been
delivered to the Underwriter a letter in form and substance satisfactory to the
Underwriter from Deloitte & Touche LLP dated the Option Closing Date and
addressed to the Underwriter confirming the information in their letter referred
to in Section 7(f) hereof and stating that nothing has come to their attention
during the period from the ending date of their review referred to in said
letters to a date not more than five business days prior to the Option Closing
Date, which would require any change in said letter if it were required to be
dated the Option Closing Date.

                  (iv) At the Option Closing Date, the Company shall have
furnished to the Underwriter a certificate, dated the Option Closing Date, of
its Chief Executive Officer and the Chief Financial Officer, in form and
substance reasonably satisfactory to counsel for the Underwriter substantially
the same in scope and substance as the certificates furnished to you at the
First Closing Date pursuant to Section 7(h) hereof.

                  (v) All corporate proceedings and other legal matters taken at
or prior to the Option Closing Date in connection with the sale and issuance of
the Option Shares shall be reasonably satisfactory in form and substance to the
Underwriter and Lowenstein Sandler PC, counsel to the Underwriter and the
Underwriter and its counsel shall have been furnished with all such documents,
certificates, and opinions as are reasonably requested in connection with this
transaction in order to evidence the accuracy and completeness of any of the
representations, warranties or statements of the Company or its compliance with
any of the covenants or conditions herein.

         All opinions, letters, evidence and certificates mentioned above or
elsewhere in this Agreement shall be deemed to be in compliance with the
provisions hereof only if they are in form and substance reasonably satisfactory
to counsel for the Underwriter.

                                       17
<PAGE>

         SECTION 8. INDEMNIFICATION AND CONTRIBUTION.

         (a) The Company shall indemnify and hold harmless the Underwriter, its
officers and employees, each of its directors, its affiliates, as defined in
Rule 405 under the Securities Act, and each person, if any, who controls the
Underwriter within the meaning of the Securities Act, from and against any loss,
claim, damage or liability, joint or several, or any action in respect thereof
(including, but not limited to, any loss, claim, damage, liability or action
relating to purchases and sales of Shares), to which the Underwriter, director,
officer, employee, affiliate or controlling person may become subject, under the
Securities Act or any applicable federal or state law, or otherwise, insofar as
such loss, claim, damage, liability or action arises out of, or is based upon,
(i) any untrue statement or alleged untrue statement of a material fact
contained in any Preliminary Prospectus, the Registration Statement or the Final
Prospectus or in any amendment or supplement thereto, (ii) the omission or
alleged omission to state in any Preliminary Prospectus, the Registration
Statement or the Final Prospectus, or in any amendment or supplement thereto, or
in any Blue Sky application, any material fact required to be stated therein or
necessary to make the statements therein not misleading, or (iii) any act or
failure to act or any alleged act or failure to act by the Underwriter in
connection with, or relating in any manner to, the Shares or the offering
contemplated hereby, and which is included as part of or referred to in any
loss, claim, damage, liability or action arising out of or based upon matters
covered by clause (i) or (ii) above (provided that the Company shall not be
liable under this clause (iii) to the extent that it is determined in a final,
non-appealable judgment by a court of competent jurisdiction that such loss,
claim, damage, liability or action resulted directly from any such acts or
failures to act undertaken or omitted to be taken by the Underwriter through its
gross negligence or willful misconduct), and shall reimburse the Underwriter and
each such director, officer, employee, affiliate or controlling person promptly
upon demand for any legal or other expenses reasonably incurred by the
Underwriter, director, officer, employee, affiliate or controlling person in
connection with investigating or defending or preparing to defend against any
such loss, claim, damage, liability or action as such expenses are incurred;
provided, however, that the Company shall not be liable in any such case to the
extent that any such loss, claim, damage, liability or action arises out of, or
is based upon, any untrue statement or alleged untrue statement or omission or
alleged omission made in any Preliminary Prospectus, the Registration Statement
or the Final Prospectus, or in any such amendment or supplement, solely in
reliance upon and in conformity with written information concerning the
Underwriter furnished to the Company by or on behalf of the Underwriter
specifically for inclusion therein; and provided further that as to any
Preliminary Prospectus, this indemnity agreement shall not inure to the benefit
of the Underwriter, its directors, officers, affiliates or employees, or any
person controlling the Underwriter, on account of any loss, claim, damage,
liability or action arising solely from the sale of the Shares to any person by
the Underwriter if the Underwriter failed to send or give a copy of the Final
Prospectus, as the same may be amended or supplemented, to that person within
the time required by the Securities Act, and the untrue statement or alleged
untrue statement of any material fact or omission or alleged omission to state a
material fact in such Preliminary Prospectus was corrected in the Final
Prospectus, unless such failure resulted from non-compliance by the Company with
Section 5(c). The foregoing indemnity agreement is in addition to any liability
which the Company may otherwise have to the Underwriter or to any officer,
director, affiliate, employee or controlling person of the Underwriter.

                                       18
<PAGE>

         (b) The Underwriter shall indemnify and hold harmless the Company, its
officers and employees, each of its directors, its affiliates, and each person,
if any, who controls the Company within the meaning of the Securities Act, from
and against any loss, claim, damage or liability, joint or several, or any
action in respect thereof, to which the Company or any such director, officer or
controlling person may become subject, under the Securities Act or otherwise,
insofar as such loss, claim, damage, liability or action arises out of, or is
based upon, (i) any untrue statement or alleged untrue statement of a material
fact contained (A) in any Preliminary Prospectus, the Registration Statement or
the Final Prospectus or in any amendment or supplement thereto, or (B) in any
Blue Sky Application or (ii) the omission or alleged omission to state in any
Preliminary Prospectus, the Registration Statement, the Final Prospectus, or in
any amendment or supplement thereto, or in any Blue Sky Application, any
material fact required to be stated therein or necessary to make the statements
therein not misleading, but in each case only to the extent that the untrue
statement or alleged untrue statement or omission or alleged omission was made
in reliance upon and in conformity with written information concerning the
Underwriter furnished to the Company by or on behalf of the Underwriter
specifically for inclusion therein, and shall reimburse the Company and any such
director, officer, affiliate or controlling person for any legal or other
expenses reasonably incurred by the Company or any such director, officer or
controlling person in connection with investigating or defending or preparing to
defend against any such loss, claim, damage, liability or action as such
expenses are incurred. The foregoing indemnity agreement is in addition to any
liability which the Underwriter may otherwise have to the Company or any such
director, officer, employee or controlling person.

         (c) Promptly after receipt by an indemnified party under this Section 8
of notice of any intention or threat to commence an action, suit or proceeding
or notice of the commencement of any action, suit or proceeding, the indemnified
party shall, if a claim in respect thereof is to be made against the
indemnifying party under this Section 8, promptly notify the indemnifying party
in writing of the claim or the commencement of that action; provided, however,
that the failure to notify the indemnifying party shall not relieve it from any
liability which it may have under this Section 8 except to the extent it has
been materially prejudiced by such failure and, provided further, that the
failure to notify the indemnifying party shall not relieve it from any liability
which it may have to an indemnified party otherwise than under this Section 8.
If any such claim or action shall be brought against an indemnified party, and
it shall notify the indemnifying party thereof, the indemnifying party shall be
entitled to participate therein and, to the extent that it wishes, jointly with
any other similarly notified indemnifying party, to assume the defense thereof
with counsel reasonably satisfactory to the indemnified party. After notice from
the indemnifying party to the indemnified party of its election to assume the
defense of such claim or action, the indemnifying party shall not be liable to
the indemnified party under this Section 8 for any legal or other expenses
subsequently incurred by the indemnified party in connection with the defense
thereof other than reasonable costs of investigation; provided, however, that
any indemnified party shall have the right to employ separate counsel in any
such action and to participate in the defense thereof but the fees and expenses
of such counsel shall be at the expense of such indemnified party unless (i) the
employment thereof has been specifically authorized by the indemnifying party in
writing, (ii) such indemnified party shall have been advised by such counsel
that there may be one or more legal defenses available to it which are different
from or additional to those available to the indemnifying party and in the
reasonable judgment of such counsel it is advisable for such indemnified party
to employ separate counsel or (iii) the indemnifying party has failed to assume
the defense of such action and employ counsel reasonably satisfactory to the
indemnified party, in which case, if such indemnified party notifies the
indemnifying party in writing that it elects to employ separate counsel at the
expense of the indemnifying party, the indemnifying party shall not have the
right to assume the defense of such action on behalf of such indemnified party.
Each indemnified party shall have the right to choose in its sole discretion its
counsel in connection with the defense of any action, suit or proceeding whether
or not the fees and expenses of such counsel are being paid by the indemnifying
parties. No indemnifying party shall (i) without the prior written consent of
the indemnified parties (which consent shall not be unreasonably withheld),
settle or compromise or consent to the entry of any judgment with respect to any
pending or threatened claim, action, suit or proceeding in respect of which
indemnification or contribution may be sought hereunder (whether or not the
indemnified parties are actual or potential parties to such claim or action)
unless such settlement, compromise, consent or judgment includes an
unconditional release of each indemnified party from all liability arising out
of such claim, action, suit or proceeding, or (ii) be liable for any settlement
of any such action effected without its written consent (which consent shall not
be unreasonably withheld), but if settled with the consent of the indemnifying
party or if there be a final judgment of the plaintiff in any such action, the
indemnifying party agrees to indemnify and hold harmless any indemnified party
from and against any loss or liability by reason of such settlement or judgment.

                                       19
<PAGE>

         (d) If the indemnification provided for in this Section 8 shall for any
reason be unavailable to or insufficient to hold harmless an indemnified party
under Section 8(a) or 8(b) in respect of any loss, claim, damage or liability,
or any action in respect thereof, referred to therein, then each indemnifying
party shall, in lieu of indemnifying such indemnified party, contribute to the
amount paid or payable by such indemnified party as a result of such loss,
claim, damage or liability, or action in respect thereof, (i) in such proportion
as shall be appropriate to reflect the relative benefits received by the
Company, on one hand, and the Underwriter, on the other hand, from the offering
of the Shares or (ii) if the allocation provided by clause (i) above is not
permitted by applicable law, in such proportion as is appropriate to reflect not
only the relative benefits referred to in clause (i) above but also the relative
fault of the Company, on one hand, and the Underwriter, on the other hand, with
respect to the statements or omissions which resulted in such loss, claim,
damage or liability, or action in respect thereof, as well as any other relevant
equitable considerations. The relative benefits received by the Company, on one
hand, and the Underwriter, on the other hand, with respect to such offering
shall be deemed to be in the same proportion as the total net proceeds (before
deducting expenses) from the offering of the Shares purchased under this
Agreement received by the Company and the total underwriting discounts and
commissions received by the Underwriter with respect to the Shares purchased
under this Agreement bear to the total gross proceeds from the offering of the
Shares under this Agreement, in each case as described on the cover page of the
Prospectus. The relative fault shall be determined by reference to whether the
untrue or alleged untrue statement of a material fact or omission or alleged
omission to state a material fact relates to information supplied by the Company
or the Underwriter, the intent of the parties and their relative knowledge,
access to information and opportunity to correct or prevent such statement or
omission. The Company and the Underwriter agree that it would not be just and
equitable if contributions pursuant to this Section were to be determined by pro
rata allocation or by any other method of allocation which does not take into
account the equitable considerations referred to herein. The amount paid or
payable by an indemnified party as a result of the loss, claim, damage or
liability, or action in respect thereof, referred to above in this Section shall
be deemed to include, for purposes of this Section 8(d), any legal or other
expenses reasonably incurred by such indemnified party in connection with
investigating or defending any such action or claim. Notwithstanding the
provisions of this Section 8(d), the Company agrees that the Underwriter shall
not be required to contribute any amount in excess of the amount by which the
total price at which the Shares underwritten by it and distributed to the public
was offered to the public exceeds the amount of any damages which the
Underwriter has otherwise paid or become liable to pay by reason of any untrue
or alleged untrue statement or omission or alleged omission. No person guilty of
fraudulent misrepresentation (within the meaning of Section 11 of the Securities
Act) shall be entitled to contribution from any person who was not guilty of
such fraudulent misrepresentation.

         (e) If multiple claims are brought with respect to at least one of
which indemnification is permitted under applicable law and provided for under
this Agreement, the indemnifying party agrees that any judgment award shall be
conclusively deemed to be based on claims as to which indemnification is
permitted and provided for, except to the extent the judgment award expressly
states that it, or any portion thereof, is based solely on a claim as to which
indemnification is not available.

                                       20
<PAGE>

         SECTION 9. TERMINATION.

         (a) The obligations of the Underwriter hereunder may be terminated by
the Underwriter by notice given to and received by the Company prior to delivery
of and payment for the Shares if, prior to the First Closing Date or the Option
Closing Date, any of the events described in Sections 7(i) or 7(j), shall have
occurred or if the Underwriter shall decline to purchase the Shares for any
reason permitted under this Agreement.

         (b) Termination of this Agreement under this Section 9 or Section 7
after the Shares have been purchased by the Underwriter hereunder shall be
applicable only to the Option Shares. Termination of this Agreement shall be
without liability of any party to any other party other than as provided in
Sections 6, 8 and 11 hereof. Notwithstanding any such termination, the
provisions of Sections 6, 8 and 11 hereof shall remain in effect.

         SECTION 10. DEFAULT BY THE COMPANY. If the Company shall fail at the
Closing Date or at any Option Closing Date, as applicable, to sell and deliver
the number of Shares which it is obligated to sell hereunder on such date, then
this Agreement shall terminate (or, if such default shall occur with respect to
any Option Shares to be purchased on an Option Closing Date, the Underwriter may
at the Underwriter's option, by notice from the Underwriter to the Company,
terminate the Underwriter's obligation to purchase Option Shares from the
Company on such date) without any liability on the part of any non-defaulting
party other than pursuant to Section 6, Section 8, Section 9 and Section 11
hereof. No action taken pursuant to this Section shall relieve the Company from
liability, if any, in respect of such default.

         SECTION 11. REIMBURSEMENT OF UNDERWRITER'S EXPENSES. If the Company
shall fail to tender the Shares for delivery to the Underwriter by reason of any
failure, refusal or inability on the part of the Company to perform any
agreement on its part to be performed, or because any other condition of the
Underwriter's obligations hereunder required to be fulfilled by the Company is
not fulfilled, the Company will, subject to the limitations set forth in Section
6, reimburse the Underwriter for all reasonable out-of-pocket expenses
(including reasonable fees and disbursements of counsel including those
necessary to collect such expenses) incurred by the Underwriter in connection
with this Agreement and the proposed purchase of the Shares (less the amounts
paid to the Underwriter through such date as set forth in Section 6(a)), and
upon demand, the Company shall pay the full amount thereof to the Underwriter.

         SECTION 12. NOTICES, ETC. All statements, requests, notices and
agreements hereunder shall be in writing, and:

         (a) if to the Underwriter, shall be delivered or sent by mail, telex or
facsimile transmission to Ryan Beck & Co., Inc., 18 Columbia Turnpike, Florham
Park, New Jersey 07932, Attention: Christopher Gastelu (Fax: 973.549.4034), with
a copy to Steven M. Skolnick, Esq., Lowenstein Sandler PC, 65 Livingston Avenue,
Livingston, New Jersey 07068 (Fax: 973.597.2400), and

         (b) if to the Company, shall be delivered or sent by mail, telex or
facsimile transmission to the address of the Company set forth in the
Registration Statement, Attention: Chief Executive Officer, with a copies to
General Counsel, at the same address, and to J. Michael Mayerfeld, Esq., Kramer
Levin Naftalis & Frankel LLP, 1177 Avenue of the Americas, New York, New York
10036 (Fax: 212.715.8000). Any such statements, requests, notices or agreements
shall take effect at the time of receipt thereof.

                                       21
<PAGE>

         SECTION 13. PERSONS ENTITLED TO BENEFIT OF AGREEMENT. This Agreement
shall inure to the benefit of and be binding upon the Underwriter and the
Company, and their respective assigns and successors. This Agreement and the
terms and provisions hereof are for the sole benefit of only those persons,
except that (A) the representations, warranties, indemnities and agreements of
the Company contained in this Agreement shall also be deemed to be for the
benefit of directors, officers and employees of the Underwriter, and the person
or persons, if any, who control the Underwriter within the meaning of Section 15
of the Securities Act and (B) the indemnity agreement of the Underwriter
contained in Section 8(b) of this Agreement shall be deemed to be for the
benefit of directors, officers and employees of the Company, and any person
controlling the Company within the meaning of Section 15 of the Securities Act.
Nothing in this Agreement is intended or shall be construed to give any person,
other than the persons referred to in this Section 13 any legal or equitable
right, remedy or claim under or in respect of this Agreement or any provision
contained herein.

         SECTION 14. SURVIVAL. The respective indemnities, representations,
warranties and agreements of the Company and the Underwriter contained in this
Agreement or made by or on behalf on them, respectively, pursuant to this
Agreement, shall survive the delivery of and payment for the Shares and shall
remain in full force and effect, regardless of any investigation made by or on
behalf of any of them or any one controlling any of them.

         SECTION 15. DEFINITION OF THE TERMS "BUSINESS DAY" AND "SUBSIDIARY".
For purposes of this Agreement, (a) "business day" means each Monday, Tuesday,
Wednesday, Thursday or Friday which is not a day on which banking institutions
in New York are generally authorized or obligated by law or executive order to
close and (b) "subsidiary" has the meaning set forth in Rule 405 of the Rules
and Regulations.

         SECTION 16. GOVERNING LAW. This Agreement shall be governed by and
construed in accordance with the laws of New York. Any dispute hereunder shall
be brought in a federal or state court in the State of New York.

         SECTION 17. COUNTERPARTS. This Agreement may be executed in one or more
counterparts and, if executed in more than one counterpart, the executed
counterparts shall each be deemed to be an original but all such counterparts
shall together constitute one and the same instrument.

         SECTION 18. HEADINGS. The headings herein are inserted for convenience
of reference only and are not intended to be part of, or to affect the meaning
or interpretation of, this Agreement.

         SECTION 19. ENTIRE AGREEMENT; MODIFICATION. This Agreement (together
with Engagement Letter) contains the entire understanding between the parties
hereto with respect to the subject matter hereof and may not be modified or
amended except by a writing duly signed by the party against whom enforcement of
the modification or amendment is sought.

                                       22
<PAGE>

         If the foregoing correctly sets forth the agreement between the Company
and the Underwriter, please indicate your acceptance in the space provided for
that purpose below.

                              Very truly yours,

                              FRANKLIN CREDIT MANAGEMENT CORPORATION

                              By:  /s/ Jeffrey R. Johnson
                                   --------------------------------------------
                                   Name: Jeffrey R. Johnson
                                   Title: President and Chief Executive Officer

                              Underwriter:

                              RYAN BECK & CO., INC.

                              By:  /s/ Christopher Gastelu
                                   --------------------------------------------
                                   Name: Christopher Gastelu
                                   Title: Managing Director

                                       23
<PAGE>

                     FRANKLIN CREDIT MANAGEMENT CORPORATION

                            (A DELAWARE CORPORATION)

                        1,100,000 SHARES OF COMMON STOCK

                          PRICE DETERMINATION AGREEMENT

                                  JULY 19, 2005

Ryan Beck & Co., Inc.
18 Columbia Turnpike
Florham Park, New Jersey  07932-2289

Ladies and Gentlemen:

Reference is made to the Underwriting Agreement, dated July 19, 2005 (the
"Underwriting Agreement"), among Franklin Credit Management Corporation, a
Delaware corporation (the "Company"), and Ryan Beck & Co., Inc., (the
"Underwriter"). The Underwriting Agreement provides for the purchase by the
Underwriter from the Company, subject to the terms and conditions set forth
therein, of 1,100,000 shares of Common Stock of the Company ("Securities"),
subject to the Underwriter's option to purchase up to an additional 165,000
Securities (to cover overallotments, if any). This Agreement is the Price
Determination Agreement referred to in the Underwriting Agreement.

Pursuant to Section 2 of the Underwriting Agreement, the Company agrees with the
Underwriter as follows:

         1.  The public offering price per Security shall be $11.50.

         2.  The purchase price for the Securities to be paid by the
    Underwriter shall be $10.695 per Security.

The Company represents and warrants to the Underwriter that the representations
and warranties of the Company set forth in Section 1 of the Underwriting
Agreement are accurate as though expressly made at and as of the date hereof.

The Agreement shall be governed by the laws of the State of New York.

If the foregoing is in accordance with the understanding of the Underwriter of
the agreement between the Underwriter and the Company, please sign and return to
the Company a counterpart hereof, whereupon this instrument, along with all
counterparts and together with the Underwriting Agreement, shall be a binding
agreement between the Underwriter and the Company in accordance with its terms
and the terms of the Underwriting Agreement.

                             Very truly yours,

                             FRANKLIN CREDIT MANAGEMENT CORPORATION

                             By: /s/ Jeffrey R. Johnson
                                 -----------------------------------------------
                                     Jeffrey R. Johnson, Chief Executive Officer

                                       -1-
<PAGE>

Confirmed and accepted as of the date first above written:

RYAN BECK & CO., INC.

By: /s/ Christopher Gastelu
    ------------------------------
     Name: /s/ Christopher Gastelu
     Title:  Managing Director

                                      -2-EX-4.7:

 

Exhibit 4.7

 

 

SHELL PAY DEFERRAL INVESTMENT FUND

 

PLAN INSTRUMENT

AND

TRUST AGREEMENT

Dated as of August 1, 1984

 

PLAN INSTRUMENT

Reflects All Amendments Adopted

Through August 1, 2005

 

TRUST AGREEMENT

Reflects All Amendments Adopted

Through May 17, 2005

 

Includes Amendments:

	 	 	 	 	 	 	 
	SPDIF 02-14

	 	SPDIF 02-16
	 	SPDIF 03-2
	 	SPDIF 03-3
	SPDIF 03-9

	 	SPDIF 03-13
	 	SPDIF 03-15
	 	SPDIF 03-16
	SPDIF 03-17

	 	SPDIF 03-18
	 	SPDIF 03-19
	 	SPDIF 03-21
	SPDIF 03-22

	 	SPDIF 04-1
	 	SPDIF 04-2
	 	SPDIF 04-3
	SPDIF 04-4

	 	SPDIF 04-5
	 	SPDIF 04-6
	 	SPDIF 04-7
	SPDIF 04-8

	 	SPDIF 04-10
	 	SPDIF 04-11
	 	SPDIF 04-12
	SPDIF 04-13

	 	SPDIF 04-14
	 	SPDIF 04-15
	 	SPDIF 04-16
	SPDIF 05-1

	 	SPDIF 05-2	 	 	 	 

 

 

 

 

SHELL PAY DEFERRAL INVESTMENT FUND

GENERAL DESCRIPTION OF THE PLAN AND ITS PURPOSE

          The Shell Pay Deferral Investment Fund (the “Plan”) was established effective August 1, 1984,
as amended through August 1, 2005, by Shell Oil Company and certain Affiliated Companies for the
exclusive benefit of their eligible Employees and their beneficiaries. Participation in the Plan
is entirely voluntary. The Plan is designed to be an employee benefit pension plan under ERISA,
and, to comply with Sections 401(a) and 401(k) of the Code, and the Trust created under the
attached Trust Agreement (which is part of the Plan Instrument) is designed to be exempt from
federal income tax under Section 501(a) of the Code.

          The Plan is intended to constitute a plan described in section 404(c) of the Employee
Retirement Income Security Act of 1974, as amended, and Title 29 of the Code of Federal Regulations
Section 2550.404c-1. The fiduciaries of the Plan may be relieved of liability for any losses which
are the direct and necessary result of investment instructions given by Members or their
Beneficiaries.

          The Contributing Companies shall have no responsibility for overseeing or monitoring the
investment options under Schedule C of the Regulations. The Trustees and the Plan Administrator
shall have only limited responsibility for overseeing and monitoring the LifeStyle Funds set out in
Part I of Schedule C to the Regulations and shall have no responsibility for overseeing or
monitoring the Tier III Funds or the Tier IV Funds regardless of whether such Tier III Funds and/or
such Tier IV Funds underlie investment options under Part I and/or Part II of such Schedule C.
Each participant and each beneficiary shall have the sole responsibility for deciding to buy, sell,
or hold units in the investment options under Schedule C of the Regulations for his or her account
and the sole responsibility for determining whether any Tier III Funds and any Tier IV Funds in
said account provide acceptable risk and return characteristics and are otherwise consistent with
his or her investment objectives and the investment objectives of the Optional Fund.

 

 

SECTION I

DEFINITIONS

          The following terms as used in this Plan Instrument shall have the meanings set forth below:

     1.1     “60% Test”: The “60% Test” as defined in Subsection 9.1 of the Plan Instrument.

     1.2     “Account”: The sum of assets credited to a Member or Former Member or, where the context
so suggests, a Qualified Beneficiary, in optional investment funds held in Trust under the terms of
the Plan.

     1.3     “Accredited Service”: The period of service described in Subsection 3.1(b) of the Plan
Instrument.

     1.4     “Active Employee”: An active Employee of a Participating Company.

     1.5     “Actual Deferral Percentage”: For each Plan Year, for a given Eligible Employee, the
ratio (expressed as a percentage) of (a) the amount of Salary Deferrals paid to the Trust on behalf
of the Eligible Employee for the Plan Year, to (b) the Eligible Employee’s Testing Compensation for
such Plan Year.

     1.5a    “ADP Limit:f living adjustment factor prescribed by the Secretary of the Treasury under
Section 415(d) of the Code for calendar years beginning after December 31, 1987, as applied to such
items and in such manner as the Secretary shall provide.

     1.7     “Affiliated Company,” “Affiliate”: a corporation which is a member of a controlled group
of corporations (within the meaning of Section 1563(a) of the Code, determined without regard to
Sections 1563(a)(4) and (e)(3)(c) thereof) which includes the Participating Company, and any trade
or business (whether or not incorporated) which is under common control [as defined in Section
414(c)], with such Participating Company. However, for purposes of the preceding sentence, the
phrase “more than 50 percent” shall be substituted for the phrase “at least 80 percent” in Section
1563(a)(1) of the Code, including where Section 1563(a) is incorporated in Sections 414(b) and (c)
of the Code.

     1.8     “Alternate Payee”: An “alternate payee,” within the meaning of section 206(d)(3)(K) of
ERISA.

     1.9     [ Intentionally left blank ]

     1.10    “Annual Additions”: The “Annual Additions” as defined in Subsection 4.3(a) of the Plan
Instrument.

     1.11    “Annual Benefit”: The “Annual Benefit” as defined in Subsection 4.3(b) of the Plan
Instrument.

     1.12    “Annual Compensation Limit”: Except as provided in Subsection 12.4, the Annual
Compensation Limit is $150,000, which amount shall be adjusted by the Commissioner of the Internal
Revenue Service for increases in the cost of living in accordance with Section 401(a)(17)(B) of the
Code.

     1.13     “Applicable Percentage”: The percentage set forth in Subsection 3.1(b) of the Plan
Instrument.

2

 

     1.14     “Average Actual Deferral Percentage”: For a specified group of Eligible Employees, for
each Plan Year, the average of the Actual Deferral Percentages calculated separately for each
Eligible Employee in such group.

     1.15     “Beneficiary”: The surviving spouse of a deceased Member or Former Member or, if there
is no surviving spouse or the surviving spouse consents in the manner provided in Subsection
7.4(b), the person designated by the Member or Former Member, in accordance with Subsection 7.4.

     1.15a    “Beneficiary Borrower”: The “Beneficiary Borrower” as defined in Subsection 6.4(a) of
the Plan Instrument.

     1.16     “Borrowers”: The “Borrowers” as defined in Subsection 6.1 of the Plan Instrument.

     1.17     “Code”: The Internal Revenue Code of 1986, as amended, or any successor statute.

     1.18     “Compensation”: Compensation shall be understood to mean net compensation without
taking into account overtime, extended work week, or premium remuneration, bonuses, or special
allowances for living expenses, dwelling, medical assistance, or the like, or any transition
payment made in connection with the Participating Companies’ 1994-1995 salary programs, but,
Compensation shall include Contributions made by a Participating Company (or on its behalf by
another Participating Company within the same affiliated group as defined within the meaning of
Section 1504 of the Code) to a Member’s Account pursuant to such Member’s Salary Deferral election
under the Plan. Compensation shall not include:

     (a)     any amount paid under the Pennzoil-Quaker State Company Change in Control
Retention/Severance Plan;

     (b)     any amount of severance pay or payments for accrued vacation received after a Member
separates from service from the Employer (and any Affiliated Company); or

     (c)     any amount of severance pay or payments for accrued vacation received as, or before, a
Member separates from service from the Employer (and any Affiliated Company) if such amount is not
paid for a period of approved absence from work;

and any such amounts shall be disregarded for all purposes under this Plan. Notwithstanding
anything in this Subsection to the contrary, Compensation of a Member shall include payments made
after December 31, 1994, and prior to January 1, 2003, under the incentive compensation plans as
listed in Part One of Schedule B and payments made on or after January 1, 2003, under a variable
pay program (sometimes also referred to as an incentive compensation program) established and
maintained by a Contributing Company and not listed on Part Two of Schedule B, provided the
payments were either received before termination of service from all Affiliated Companies or, in
the case of payments made on or after September 30, 2003, recorded as soon as administratively
feasible following such termination of service, and provided, further the payments were not
deferred from a prior year. For purposes of the preceding sentence, “Affiliated Company” shall be
as defined in Subsection 1.7, except that the phrase “at least 80 percent” shall be substituted for
the phrase “more than 50 percent.” Compensation shall also include payments for hours in excess of
forty hours per week, which payments are related to the 2002 plan year incentive compensation programs of Equilon Enterprises LLC d/b/a Shell Oil Products US (SOPUS), including Equilon Pipeline
Company LLC, and Motiva Enterprises LLC, paid in March 2003 to hourly Employees employed by SOPUS,
Shell Pipeline Company LP, or Motiva Company, but only to the extent such payments are not
otherwise already included as Compensation. Compensation shall also include payments for hours in
excess of forty hours per week, where such hours are part of an established normal work schedule of
more than forth yours per week, paid in March 2004 to hourly Employees then employed at the Port
Arthur, Texas and Delaware City, Delaware refineries and related to the 2003 plan year incentive
compensation

3

 

program of Motiva Company, but only to the extent such payments are not otherwise
already included as Compensation. Compensation shall also include contributions made by a
Participating Company (or on its behalf by a member of the affiliated group as defined within the
meaning of Section 1504 of the Code) to a Member’s account pursuant to such Member’s designation,
with a plan which satisfies the requirements of Section 125 of the Code or Section 132(f) of the
Code. Commissions shall be considered a part of Compensation when paid in addition to a fixed
basic wage or salary. Compensation shall also include payments made under a disability benefit
plan of a Participating Company, except the Member shall not be required to include as part of his
Salary Deferral any sums received under a Worker’s Compensation, or similar law, which, under the
terms of any such disability benefit plan, are deducted from the benefit payments of such a plan.
Compensation, for purposes of determining a Participating Company’s Contributions for a Member
whose hourly rate of pay is established at a specified rate solely by reason of being assigned to
an established normal work schedule that includes hours in excess of eight (8) hours per workday,
shall be determined by application of a factor that will result in such Member’s Compensation (for
such purposes) being the same as if his hourly rate had not been so established.

                 In addition to other applicable limitations set forth in the Plan, and notwithstanding any
other provision of the Plan to the contrary, for Plan Years beginning on or after January 1, 1994,
the annual Compensation of each Employee taken into account under the Plan shall not exceed the
Annual Compensation Limit.

     1.19     “Computation Period”: Each twelve (12) consecutive month period which begins on the date
the employee first completes a Regular Hour of Service with a Participating Company or Affiliated
Company and every anniversary thereof.

     1.20     “Contributions”: Amounts contributed to the Trust for the Account of a Member under the
terms of the Plan by, or on behalf of, his Employing Company.

     1.21     “Controlled Group Company”: (a) a corporation, with the exception of the Participating
Company, which is a member of a controlled group of corporations (within the meaning of Section
1563(a) of the Code, determined without regard to Sections 1563(a)(4) and (e)(3)(C) thereof) which
includes the Participating Company; (b) any trade or business (whether or not incorporated), with
the exception of the Participating Company, which is under common control (as defined in Section
414(c), as modified by Section 415(h), of the Code and regulations thereunder) with such
Participating Company; (c) any organization (whether or not incorporated), with the exception of
the Participating Company, which is a member of an affiliated service group (as defined in Section
414(m) of the Code) which includes the Participating Company; and (d) any other entity required to
be aggregated with the Participating Company pursuant to regulations under Section 414(o) of the
Code.

     1.22     “Core Funds”: The core funds set out in Part I of Schedule C to the Plan Instrument.

     1.22a    “Cure Period”: The “Cure Period” as defined in Subsection 6.4(a) of the Plan Instrument.

     1.23     “Defined Benefit Plan Fraction”: The “Defined Benefit Fraction” as defined in Subsection
4.3(e) of the Plan Instrument.

     1.24     “Defined Contribution Plan Fraction”: The “Defined Contribution Plan Fraction” as
defined in Subsection 4.3(f) of the Plan Instrument.

     1.25     “Direct Rollover”: A “Direct Rollover” as defined in Subsection 7.10(b)(iv) of the Plan
Instrument.

     1.26     “Distributee”: A “Distributee” as defined in Subsection 7.10(b)(iii) of the Plan
Instrument.

4

 

     1.27     “Effective Date”: The date set forth in Subsection 10.11 of the Plan Instrument.

     1.28     “Eligibility for Admission Date”: The date set forth in Subsection 2.1 of the Plan
Instrument.

     1.29     “Eligible Employee”: An Employee who satisfies the eligibility requirements of
Subsection 2.1, whether or not he becomes a Member.

     1.30     “Eligible Investment Company Funds”: The LifeStyle Funds, the Fidelity Mutual Funds, the
funds in the Mutual Fund Window, and the Fidelity Select Portfolios.

     1.31     “Eligible Retirement Plan”: An “Eligible Retirement Plan” as defined in Subsection
7.10(b)(ii) of the Plan Instrument.

     1.32     “Eligible Rollover Distribution”: An “Eligible Rollover Distribution” as defined in
Subsection 7.10(b)(i) of the Plan Instrument.

     1.33     “Employee”: Except as set forth hereinbelow, any person performing services as an
employee of any of the Participating Companies who receives a regular and stated compensation
(other than a retainer) directly from such Company, provided, however, that, Employees shall not
include any person employed by any corporation or business entity that is not a Participating
Company hereunder which is merged or liquidated into, or whose assets are acquired by any such
Company, unless such Company, with the consent of Shell Oil Company, designates the employees of
such corporation or other business entity, as the case may be, as Employees under the Plan pursuant
to written resolutions adopted by such Company at any time prior to or after such liquidation,
merger, or asset acquisition.

          The term “Employee” shall not include: (a) a person whose compensation is paid solely in the
form of commissions, or (b) a non-resident alien, or (c) a person who is temporarily employed by a
Participating Company because of a transfer from a foreign Affiliated Company which is not a
Participating Company, or (d) a person who is a “leased employee” within the meaning of Section
414(n) of the Code, or (e) a person whose contract of employment or engagement letter or contract
for services explicitly states or implicitly provides that the person is not entitled to
participate in this Plan, in particular, or the employee benefit plans of one or more Participating
Companies, in general, or (f) a person designated by the relevant Participating Company as an
independent contractor. In addition to the foregoing, and notwithstanding anything herein to the
contrary, a person shall not be treated as an Employee eligible to make Salary Deferrals under the
Plan (even if such person is determined to be a common law employee of the Employer entitled to
service credits for eligibility purposes under the Plan) before the date the Employer is required
to withhold federal income taxes from the person’s pay. “Affiliated Company” for purposes of this
paragraph shall be as defined in Subsection 1.7, except that the phrase “more than 25 percent”
shall be substituted for
the phrase “more than 50 percent.” In addition to the foregoing, and notwithstanding anything
herein to the contrary, the term “Employee” shall not mean any person during any period or periods
of time that such person does, or may, actively participate in the Shell Chemical Company Employee
Savings Plan for Bargaining Unit Employees (the “Pt Pleasant Plan”); provided, however, that the
term “Employee” shall include such person from the date his employing Participating Company
reclassifies him as a staff employee up to and including June 1, 2000, so long as he no longer
participates actively in such Pt Pleasant Plan during that time, and otherwise meets the definition
of Employee.

          An Employee shall cease to be such under this Plan upon termination of his service for any
cause whatsoever, provided, however, that an Employee shall continue to be treated as such under
this Plan during all periods of leave of absence (1) with pay (i) not exceeding one year or (ii) in
excess of one year where such leave is granted in connection with the Pennzoil-Quaker State Company
Change in Control Retention/Severance Plan, (2) without pay due to sickness or disability, (3) due
to war or national emergency,

5

 

(4) in accordance with the military leave policy of his Employing
Company, and (5) other Company authorized leaves of absence.

     1.34     “Employer,” “Employing Company”: A Participating Company in its relationship of being an
employer of Employees.

     1.35     “ERISA”: The Employee Retirement Income Security Act of 1974 as it now exists or may
hereafter be amended.

     1.36     “Excess Contributions”: With respect to any Plan Year, the excess of (a) the aggregate
amount of Salary Deferrals actually paid over to the Trust on behalf of Highly Compensated
Employees for such Plan Year, over (b) the maximum amount of such contributions permitted under the
limitations of Subsection 3.5. The total amount of Excess Contributions for the Highly Compensated
Employees for a Plan Year is determined as follows: Highly Compensated Employees with the largest
Actual Deferral Percentage shall be identified and a determination shall be made as to how much
their Actual Deferral Percentage must be reduced so that the Plan would satisfy the ADP Limit or
causes such employees’ Actual Deferral Percentage to equal the Actual Deferral Percentage of the
Highly Compensated Employees with the next highest Actual Deferral Percentage. The procedure
described in the preceding sentence shall be repeated until the Plan would satisfy the ADP Limit.

     1.37     “Excess Deferral Amounts”: The amount of Salary Deferrals that the Member allocates to
this Plan pursuant to the claim procedure set forth in Subsection 3.9(b), because they exceed the
limit imposed on the Member by Section 402(g)(1) of the Code for the taxable year in which the
Salary Deferrals occurred.

     1.38     [ Intentionally left blank ]

     1.39     “Fidelity Mutual Funds”: Such eligible investment company funds as from time to time
shall obtain the approval of the Plan Administrator and the Trustees, as evidenced by their listing
on Part II of Schedule C to the Plan Instrument.

     1.39a     “Fidelity Select Portfolios”: Such eligible investment company funds as from time to
time shall constitute the Fidelity Select Portfolios®, as evidenced by their listing on Part IV of
Schedule C to the Plan Instrument.

     1.40     “Former Member”: Any former Employee who was a Member of the Plan before he terminated
his employment and who is still a participant in the Plan.

     1.41     “Full Time Work Year”: for any Computation Period: The number of Regular Hours of
Service which constitute the regular or basic work-year for an employee’s job classification as
determined by Shell Oil Company from time to time on a reasonable and consistent basis.

     1.42     “Highly Compensated Employee”: An employee of the Employer who (1) was a five percent
owner, as defined in Section 416(i)(1) of the Code, at any time during the “determination year” or
the “look-back year”, or (2) had “compensation” from an Employer during the look-back year in
excess of $80,000 (as adjusted pursuant to Section 415(d) of the Code), and if the Employer so
elects, was in the top-paid group of employees for the look-back year.

          The determination of who is a Highly Compensated Employee hereunder, including determinations
as to the number and identity of employees in the top-paid group and the compensation considered,
shall be made in accordance with the provisions of Section 414(q) of the Code and regulations
issued thereunder. An employee is in the top-paid group of employees for any year if such employee
is in the group consisting of the top 20 percent of the employees when ranked on the basis of

6

 

compensation paid during such year. For purposes of determining the number of employees in the
top-paid group, employees described in Section 414(q)(5) of the Code and Q&A 9(b) of Section
1.414(q)-1T of the Regulations are excluded. Employers aggregated under Section 414(b), (c), (m),
or (o) of the Code are treated as a single employer. For purposes of this definition, the
following terms have the following meanings:

     (a)     The “determination year” means the Plan Year for which the determination of who is a
Highly Compensated Employee is being made.

     (b)     The “look back year” means the 12-month period immediately preceding the determination
year, or if the Employer so elects in the Plan, the calendar year beginning with or within such
12-month period.

     (c)     For purposes of this definition, the term “compensation” has the meaning set forth in
Section 415(c)(3) of the Code.

     The identification of Highly Compensated Employees is subject to further provisions of Section
414(q) of the Code and applicable Department of Treasury regulations. The term “Highly Compensated
Employee” shall not include any employee who is a nonresident alien and who receives no earned U.S.
source income from the Employer.

     1.43     “Investment Manager”: A fiduciary, other than a Named Fiduciary as described in
Subsection 5.1, who may be appointed by the Trustees:

     (a)     who has the power to manage, acquire, or dispose of any assets of the Plan or a portion
thereof; and

     (b)     who (1) is registered as an investment adviser under the Investment Advisers Act of 1940,
or state law, (2) is a bank as defined in that Act, or (3) is an insurance company qualified to
perform services described in Subsection (a) above under the laws of more than one state; and

     (c)     who has acknowledged in writing that he is a fiduciary with respect to the Plan.

     1.44     “Key Employee”: A “Key Employee” as defined in Subsection 9.3 of the Plan Instrument.

     1.45     “LifeStyle Funds”: The lifestyle funds set out in Part I of Schedule C to the Plan
Instrument.

     1.46     “Loans”: “Loans” as defined in Subsection 6.1 of the Plan Instrument.

     1.47     “Member”: An Employee who has qualified as a participant in the Plan pursuant to
Subsection 2.2.

     1.48     “Mutual Fund Window”: Such eligible investment company funds as from time to time shall
be available from Fidelity’s FundsNetSM offerings, as evidenced by their listing on Part
III of Schedule C to the Plan Instrument.

     1.49     “Named Fiduciary”: A “Named Fiduciary” as defined in Subsection 5.1 of the Plan
Instrument.

     1.50     “Nonhighly Compensated Employee”: An employee of a Controlled Group Company who is not a
Highly Compensated Employee.

7

 

          The identification of Nonhighly Compensated Employees is subject to further provisions of
Section 414(q) of the Code and applicable Department of Treasury regulations. The term “Nonhighly
Compensated Employee” shall not include any employee who is a nonresident alien and who receives no
earned U.S. source income from the employing Controlled Group Company.

     1.51     “Non-Participating Company”: A “Non-Participating Company” as defined in Subsection 2.1
of the Plan Instrument.

     1.52     “Nonseparated Member”: A Former Member who is not yet entitled to a distribution under
Section VII of this Plan, and who ceases employment with a Participating Company on or after July
1, 1988, in connection with a transaction which, taken as a whole, does not result in a separation
from service.

     1.53     “Optional Funds”: The Core Funds and the Eligible Investment Company Funds.

     1.54     “Original Effective Date”: August 1, 1984, the date on which this Plan was originally
established.

     1.55     “Participating Company”: A company which is participating in the Plan.

     1.56     “Participation Service”: The period of service described in Subsection 2.1 of the Plan
Instrument.

     1.57     “Party in Interest”: Any person who is described in Section 3(14) of ERISA.

     1.58     “Payroll Closing Date”: with respect to a particular payroll period: The last business
day of that payroll period on which changes that affect the amount of the Employee’s paycheck for
that payroll period, or the credits and debits appearing on the Employee’s pay advice for that
payroll period, can be accepted for processing.

     1.59     “Plan”: The employee benefit plan created under this Plan Instrument formally known as
the “Shell Pay Deferral Investment Fund.”

     1.60     “Plan Year”: shall be the calendar year except for 1984 for which the Plan Year shall be
August 1, 1984 through December 31, 1984.

     1.61     “Qualified Beneficiary”: shall mean:

     (a)     an individual who:

     (i)     is named by a Member or a Former Member as his beneficiary pursuant to Subsection
7.4 and is at least 18 years of age (or will attain at least 18 years of age before said
beneficiary’s respective share of the Member or Former Member’s Account is distributed from
the Plan), and is entitled to receive distribution of all or any part of the amount standing
to the credit of the Member or Former Member upon the death of the Member or Former Member;
or

     (ii)     is the surviving spouse of a deceased Member or of a deceased Former Member; or

     (iii)     is an alternate payee, who is the spouse or former spouse of a Member or Former
Member; or,

     (b)     a private trust that meets all of the following requirements:

     (i)     is valid under state law, or would be but for the fact that there is no corpus;

8

 

     (ii)     is irrevocable or will, by its terms, become irrevocable upon the death of the
Member or Former Member;

     (iii)     the beneficiary or beneficiaries of the trust are identifiable individuals from
the trust instrument;

     (iv)     the beneficiary designation made by the Member or Former Member is made in such
form as the Plan Administrator may require and the Member or Former Member provides such
additional information as the Plan Administrator may require, provided that,

     (A)     for any calendar year up to and including the calendar year of the Member’s
or Former Member’s death, in order to establish that the Member’s or Former Member’s
spouse is the sole beneficiary under the trust for purposes of Section XIV of the
Plan Instrument, the Member or Former Member must: (1) provide to the Plan
Administrator a list of all of the beneficiaries of the trust (including contingent
and remainderman beneficiaries with a description of the conditions of their
entitlement sufficient to establish that the Member’s or Former Member’s spouse is
the sole beneficiary); (2) certify that, to the best of the Member’s or Former
Member’s knowledge, the list of beneficiaries is correct and complete and that the
requirements of Subsections 1.61(b)(i), (ii), and (iii) above are satisfied; (3)
agree to provide corrected certifications to the extent that an amendment changes
any information previously certified; and (4) agree to provide a copy of the trust
instrument to the Plan Administrator upon demand; and

     (B)     for calendar years following the calendar year of the Member’s or Former
Member’s death, the trustee of the trust instrument, no later than October 31 of the
calendar year immediately following the calendar year of the Member’s or Former
Member’s death, must (1) provide the Plan Administrator with a final list of all of
the beneficiaries of the trust (including contingent and remainderman beneficiaries
with a description of the conditions
on their entitlement) as of September 30 of the calendar year immediately
following the calendar year of the Member’s or Former Member’s death; (2) certify
that, to the best of the trustee’s knowledge, the list of beneficiaries is correct
and complete and that the requirements of Subsections 1.61(b)(i), (ii), and (iii)
above are satisfied; and (3) agree to provide a copy of the trust instrument to the
Plan Administrator upon demand.

          When applying the requirements of Subsection 1.61(b)(iii) above, the trust instrument need not
name the individuals by name so long as the individuals who are to be the beneficiaries are
identifiable under the trust instrument. The members of a class of beneficiaries capable of
expansion or contraction will be treated as being identifiable if it is possible to identify the
class member with the shortest life expectancy.

          Nothing in this provision shall be construed to mean that a Qualified Charitable Organization
(as defined in Subsection 7.4(a)) can be a Qualified Beneficiary.

     1.62     “Qualified Charitable Organization”: A “Qualified Charitable Organization as defined in
Subsection 7.4 of this Plan Instrument.

     1.63     “Regular Hours of Service”: Each hour for which an employee (as distinguished from an
Employee as defined herein) is paid or entitled to payment for the performance of duties with a
Participating Company or an Affiliated Company (or for which back pay is awarded provided such
hours have not been previously taken into account) except hours for which a premium rate is paid
because such hours are in excess of the maximum work week applicable to an employee under Section
7(a) of the Fair Labor Standards Act of 1938, as amended, or because such hours are in excess of a
bona fide standard work week or work day and also excluding hours performed as a “leased employee”
within the meaning of Section 414(n) of the Code. In addition to the above, such hours shall
include hours included in periods of absence due to

9

 

(1) scheduled holidays with pay, (2) vacation
with pay, (3) an approved leave of absence (i) with pay not exceeding one year, (ii) without pay
due to sickness or disability of the employee not exceeding one year, (iii) without pay due to
causes other than sickness or disability of the employee not exceeding thirty (30) calendar days,
(iv) due to war or national emergency, and (v) in accordance with the military leave policy of his
Employing Company, or (4) a leave of absence in existence or commencing on or after December 15,
1993, which is taken in accordance with the family and medical leave policies of the employee’s
Employing Company and the Family and Medical Leave Act of 1993 (P. L. 103-3) (“Family/Medical
Leave”), including certain leaves for personal illness, family illness, birth or adoption, not
exceeding six months. A leave of absence shall not be a Family/Medical Leave unless the employee
returns to work at the conclusion of the Family/Medical Leave period or retires. For purposes of
crediting Regular Hours of Service for scheduled holidays, vacations, and leaves of absence
described above, the number of Regular Hours of Service as to an employee shall be the number of
such employee’s regularly scheduled working hours during any such vacation, leave of absence, or
scheduled holiday. Further, Regular Hours of Service shall be credited in accordance with now
existing 29 CFR Sections 2530.200b-2(c) and 2530.200b-7(c).

          In the case of those employees whose duties are deemed to be in a maritime industry and who
are compensated on the basis of certain amounts for each day worked during a given period (i.e., a
daily rate of pay), days of service shall be counted rather than Regular Hours of Service. One day
of service shall be equal to eight (8) Regular Hours of Service with ninety-three (93) days of
service being equated with seven hundred fifty (750) Regular Hours of Service for purposes of
determining Participation Service.

          The following guidelines shall be used in assessing whether an employee is in the maritime
industry for purposes of measurement of service. An employee whose principal duties are performed
on an offshore port, offshore oil tower, or similar site shall be deemed to be in the maritime
industry. Duties performed on board any vessel operating on the various listed bodies of water
relating to the conduct of such vessel shall be deemed to be in the maritime industry; however, an
employee whose duties require him to
travel from land to an offshore port or tower, or from an offshore port or tower to offshore port
or tower shall not be deemed to be a person in the maritime industry unless his principal duties
are performed on such vessel, port, or tower.

     1.64     “Salary Deferral”: Contributions made to the Trust during the Plan Year by the Employer,
at the election of the Member, in lieu of cash compensation. Such contributions shall consist of
amounts equal to a specified percentage of a Member’s Compensation which a Member directs be
deducted for each payroll period.

     1.65     “Senior Staff”: A member of the senior management of a “Participating Company,” as
defined in the Shell Pension Plan, who has been identified by any such company employing him or her
as a member of its senior staff in accordance with such company’s customary practices and
procedures.

     1.66     “Surviving Beneficiary”: An individual who is a surviving beneficiary of an Active
Employee or of a Former Employee.

     1.66a     “Testing Compensation”: shall mean compensation within the meaning of Section IV of this
Plan which relates to the limits under Section 415 of the Code, but excluding any amount in excess
of the Annual Compensation Limit.

     1.66a     “Tier III Funds”: The investment options under Part III of Schedule C to the Plan
Instrument.

     1.67     “Tier IV Funds”: The investment options under Part IV of Schedule C to the Plan
Instrument.

10

 

     1.68     “Timely Notice” or “Timely Receipt” with respect to notice of deferral directions:
Notice given in the prescribed manner (as determined under Subsection 10.4 of the Plan Instrument)
and received on or before the Payroll Closing Date for the payroll period or such other date as may
be required by the Plan Administrator.

     1.69     [ Intentionally left blank ]

     1.70     “Trust”: The trust created under the Trust Agreement which is attached to and is part of
the Plan Instrument; such Trust being for the purpose of holding, investing and distributing Plan
assets under the Plan and which Trust is designed to be exempt from federal income tax under
Section 501(a) of the Code.

     1.71     “Trustee”: Any person serving as a Trustee under the terms of, or pursuant to, the Plan
under the Trust Agreement.

     1.72     “Units”: Units of participation representing a Member’s proportionate interest in an
Optional Fund.

     1.73     “Valuation Date”: A date on which accounts under the Plan are valued. Prior to June 1,
1996, Valuation Dates will be the last business day concurrent with or preceding the 15th day and
the last day of each month and such other times as may be required by the Trustees. On and after
June 1, 1996, a Valuation Date shall be any day, other than a Saturday, a Sunday, or a legal
holiday, on which the New York Stock Exchange is open for trading, and/or such other dates as may
be required by the Trustees. In the case of purchases, redemptions, and/or valuations during
periods of extreme market conditions, market closures, or illiquidity, the day “on which the New
York Stock
Exchange is open for trading” shall be deemed to be the later of: (a) the day all securities
markets resume normal trading; or (b) the day sufficient liquidity returns, in the judgment of the
Investment Manager.

     1.74     “Valuation Period”: (a) Prior to June 1, 1996, the periods which shall end on the
15th and last days of each month with Members’ Thrift Fund Accounts to be credited or
debited, as the case may be, as of such dates; and (b) on and after June 1, 1996, each calendar
month with Member’s Thrift Fund Accounts to be credited or debited as the case may be as of the
last Valuation Date of each such month or, if there is no Valuation Date during such month, the
last Valuation Date in the month or months immediately prior to such month.

     1.75     “Withdrawals”: The “Withdrawals” as defined in Subsection 6.1 of the Plan Instrument.

SECTION II

PARTICIPATION IN THE PLAN

     2.1     Eligibility to Participate: Any Employee shall be eligible to become a Member of the Plan
on the Eligibility for Admission Date specified hereinbelow under the conditions of qualification
set out in Subsection 2.2 below. On and after August 1, 1984 (the “Original Effective Date”), but
prior to January 1, 1989, the Eligibility for Admission Date shall be the first day of the first
Computation Period after the Employee has been credited with at least three (3) years of
Participation Service. On and after January 1, 1989, the Eligibility for Admission Date shall be
the first day of the first Computation Period after the Employee has been credited with at least
one (1) year of Participation Service; provided, however, that effective July 1, 1996, the
“Eligibility for Admission Date” shall be the first day on or after July 1, 1996, on which the
Employee completes his first Regular Hour of Service with a Participating Company. An Employee
shall be credited with one year of Participation Service for each Computation Period in which he is
credited with 750 or more Regular Hours of Service (whether or not consecutive) with the Employing

11

 

Company or an Affiliated Company. For purposes of the preceding sentence and Subsections 1.19 and
1.63 as they relate to the preceding sentence, “Affiliated Company” shall be as defined in
Subsection 1.7, without regard to the proviso that substitutes the phrase “more than 50 percent”
for the phrase “at least 80 percent.” Service with a predecessor employer shall be credited to an
Employee as follows:

          (a)     in any case in which the Employing Company maintains a plan of a predecessor employer,
service for such predecessor employer shall be treated as service for the Employing Company.

          (b)     in any case in which the Employing Company maintains a plan which is not the plan
maintained by a predecessor employer, service for such predecessor employer shall (to the extent
provided in regulations to be issued by the Secretary of Treasury, Secretary of Labor, or their
delegates) be treated as service for the Employing Company.

          In addition to the service crediting rules set out above, the service crediting rules below
shall apply. The lesser of one year of service, or the actual number of years (including partial
years) of service with an Affiliated Company shall be credited to an Employee as Participation
Service, only where an Employing Company has employed the Employee pursuant to an agreement with
the Affiliated Company, and the grant of prior service as Participation Service meets the
requirements of Treasury Regulation section 1.401(a)(4)-11(d). For purposes of the preceding
sentence and Subsections 1.19 and 1.63 as they relate to the preceding sentence, “Affiliated
Company” shall be as defined in Subsection 1.7, except that the phrase “more than 25 percent” shall
be substituted for the phrase “more than 50 percent.”

          Where an employee of a Non-Participating Company becomes an Employee of a Participating
Company after December 31, 1990 as a result of an asset or stock acquisition, merger,
reorganization or other similar transaction, prior service credit may be granted pursuant to an
agreement between one or more Participating Companies and the Non-Participating Company, as
follows:

          (c)     a maximum of five (5) years prior service with the Non-Participating Company shall be
credited to an Employee as Participation Service only where the following conditions are satisfied:

               (i)     a Participating Company has employed the Employee pursuant to an agreement with the
Non-Participating Company;

               (ii)     with respect to each separate acquisition, merger, reorganization or other similar
transaction, prior service credit is uniformly granted to all individuals becoming Employees
pursuant to this sentence; and

               (iii)     the prior service credit granted is otherwise allowed by law;

or

          (d)     pursuant to an amendment to this Plan adopted after 1990.

For purposes of this paragraph, “Non-Participating Company” shall mean any corporation, trade, or
business that is not a Participating Company.

          If a Participating Company acquires the stock or assets of a business entity listed on
Schedule A and, in connection with that acquisition, agrees or resolves to grant past service
credit hereunder to an employee of the entity who, within a period of time specified in the
agreement or resolution, becomes an Employee of the Participating Company, then the lesser of one
year of service, or the actual number of years of service, with the acquired entity shall be
credited to the Employee as Participation Service, provided such grant of past service credit is
otherwise allowed by law.

12

 

     2.2     Qualification as a Member:

     (a)     Any Eligible Employee of a Participating Company whose application for membership, and
Salary Deferral authorization, have been received by the Plan Administrator, or his agent, may
qualify as a Member of the Plan as of the first day of the first payroll period that falls on or
after the Original Effective Date, for which payroll period he shall have been compensated by a
Participating Company after such application for membership has been received and he has satisfied
the eligibility requirements of Subsection 2.1. For purposes of this Subsection 2.2(a), an
Employee’s application for membership and Salary Deferral authorization shall be deemed to have
been received before the first day of the first payroll period for which he shall be compensated by
a Participating Company if they are received no later than the Payroll Closing Date for that
payroll period.

     (b)     An Eligible Employee who has been admitted as a Member in accordance with the provisions
of the Plan shall remain a Member until termination of his status as an Employee even though he may
suspend his Salary Deferrals. Upon reemployment, as an Employee, a Former Member shall be
immediately eligible for admission to the Plan and shall be admitted as a Member of the Plan upon
reapplication for membership.

     2.3     Leased Employees: Persons who are “leased employees” within the meaning of Section 414(n)
of the Code shall not be eligible to participate in this Plan. In the event a “leased employee”
becomes a Member covered by the Plan, prior hours of service performed as a “leased employee” shall
be taken into account in determining Regular Hours of Service solely for the
purpose of determining eligibility to participate and only if such prior hours of service were
performed for the employing Participating Company or for: (a) a corporation that is a member of a
controlled group of corporations (within the meaning of Section 1563(a)(1) of the Code, determined
without regard to Sections 1563(a)(4) and (e)(3)(C) thereof) which includes the Participating
Company employing the Member; or (b) any trade or business (whether or not incorporated) that is
under common control (as defined in Section 414(c) of the Code and regulations thereunder) with the
employing Participating Company.

SECTION III

CONTRIBUTIONS, INVESTMENT OPTIONS AND ACCOUNTS

     3.1     Contribution:

     (a)     Employer Contributions: For each Plan Year, the Employer shall contribute an amount equal
to the total amount of Contributions Elections for such Plan Year under Paragraph (b) of this
Subsection. Contributions made by the Employer for a given Plan Year pursuant to Contribution
Elections under Paragraph (b) of this Subsection shall be deposited in the Trust consistent with
Subsection 3.7.

          In addition, for each Plan Year, the Employer shall contribute an amount equal to the total
amount of Contribution Additions for such Plan Year under Paragraph (c) of this Subsection.

     (b)     Contribution Elections: Members may specify an Applicable Percentage of the Member’s
Compensation each payroll period as a Salary Deferral. Contributions to Accounts of Members will
be directed into the optional funds as specified by the Member. Subject to the terms of the Plan:
with respect to payroll periods having a Payroll Closing Date prior to July 16, 1996, the
Applicable Percentages shall range from one percent (1%) to eleven percent (11%), in multiples of
one percent (1%); and with respect to payroll periods having a Payroll Closing Date on or after
July 16, 1996, but before January 1, 2002, the Applicable Percentages shall be any percentage, in
increments of 1/2%, up to the maximum applicable to the Member’s period of Accredited Service, in
accordance with the following schedule:

13

 

     (i)     From the date of admission as a Member through the ninth year of Accredited Service
 — up to a maximum of 16%, and

     (ii)     During the tenth and succeeding years of Accredited Service — up to a maximum of
11% with respect to payroll periods having a Payroll Closing Date on or after July 16, 1996,
but before January 1, 1998, and up to a maximum of 15% with respect to payroll periods
having a Payroll Closing Date on or after January 1, 1998, but before January 1, 2002.

          Subject to the terms of the Plan: with respect to payroll periods having a Payroll Closing
Date on or after January 1, 2002, the Applicable Percentages shall be any percentage from a minimum
of 1% up to a maximum of 25%, in increments of 1/2%.

          An Employee shall be credited with one year of Accredited Service for each Computation Period
in which he is credited with the number of Regular Hours of Service (whether or not consecutive) at
least equal to the number of Regular Hours of Service which constitute his Full Time Work Year. An
Employee shall be credited with a fraction of a year of Accredited Service for each Computation
Period in which he is credited with a number of such hours which is not at least equal to his Full
Time Work Year. Determination of the credit for a fraction of a year of Accredited Service shall
be made by Shell Oil Company in a manner which shall utilize the number of Regular Hours of Service
credited within such Computation
Period in computing the numerator of such fraction and the number of Regular Hours of Service in
the appropriate Full Time Work Year for such Employee in computing the denominator of such
fraction.

          From and after June 1, 1996, and prior to January 1, 2003, Members may affirmatively elect an
Applicable Percentage which shall apply to amounts received pursuant to an incentive compensation
plan listed on Schedule B, and any such Applicable Percentage may be different from the Applicable
Percentage which applies to all other amounts received as compensation. From and after January 1,
2003, Members may affirmatively elect an Applicable Percentage which shall apply to amounts
received under a variable pay program (sometimes also referred to as an incentive compensation
program) established by a Contributing Company so long as such program is not listed on Part Two of
Schedule B, and any such Applicable Percentage may be different from the Applicable Percentage
which applies to all other amounts received as compensation. In the absence of an affirmative
election with respect to amounts received pursuant to such an incentive compensation plan or
variable pay program, the Applicable Percentage therefor shall be zero for Employees who became
Members on or after June 1, 1996, and for all other Employees shall be the Applicable Percentage
which applied to the Member’s regular compensation on June 1, 1996.

          Where the Member’s Salary Deferrals reach the limits under Subsection 3.5, the Plan
Administrator may notify the plan administrator of the Shell Provident Fund and of each other
defined contribution plan of Affiliates so that employee contributions thereunder may automatically
begin or change in accordance with any prior election of the Member. Directions of Salary
Deferrals shall be effective as of the first day of the Member’s payroll period which next falls
after Timely Notice of such election to the Plan Administrator or his agent; provided, however,
where a regulatory body closes a principal securities exchange on which securities are traded, the
posting of Salary Deferrals may be delayed until normal trading resumes in all securities markets.

          No benefits provided by the Employing Company or a Controlled Group Company, shall be
conditioned directly or indirectly upon the Member’s making or not making Salary Deferrals
hereunder.

     (c)     Contribution Additions: For each Plan Year, any Participating Company may make an
additional contribution to the Plan that it may determine is appropriate to reimburse the Trust for
administration expenses where the Plan Administrator, based on all relevant facts and
circumstances, requests reimbursement, and the Company determines the administration expenses are
not appropriate for recovery from certain Members, Former Members or Beneficiaries. Each
Contribution Addition shall be with respect to the Plan Year and shall be allocated to the Accounts
of the Members that are affected by the administration

14

 

expenses for which the Trust is being
reimbursed by that contribution. Consistent with the preceding sentence, the Plan Administrator
shall periodically notify the Trustees of the Contribution Additions which shall be paid to the
Trust no later than the time prescribed by law for filing the federal income tax return of the
Participating Company, including extensions thereof. For purposes of the limitations under
Subsection 4.2, each Contribution Addition shall be allocated to the Accounts of the Members that
are affected by the administration expenses for which the Trust is being reimbursed by that
contribution.

     3.2     Coordination of Contribution Rates: For Plan Years beginning prior to January 1, 1998, if
a Member is receiving company contributions under the Shell Provident Fund and any other defined
contribution plans of Affiliates (collectively referred to as “SPF”) of ten percent (10%), then the
Member’s elected rate of employee contributions thereunder together with the Member’s elected rate
of Salary Deferrals hereunder shall not exceed eleven percent (11%). If a Member is receiving
company contributions under the SPF of five percent (5%), then the Member’s elected rate of
employee contributions thereunder together with the Member’s elected rate of Salary Deferrals
hereunder shall not exceed sixteen percent (16%). If a Member is receiving Company contributions
under the Coral Energy Services, LLC Savings Plan of three percent (3%), then the Member’s elected
rate of employee contributions thereunder together with the Member’s elected rate of Salary
Deferrals hereunder shall not exceed sixteen percent (16%). If a Member is receiving company
contributions under the SPF of two and one-half percent (21/2%), then the Member’s elected rate of
employee contributions thereunder
together with the Member’s elected rate of Salary Deferrals hereunder shall not exceed eighteen
percent (18%) for payroll periods closing prior to July 16, 1996, or eighteen and one-half percent
(181/2%) for payroll periods closing on and after July 16, 1996, but before January 1, 1998. If a
Member is receiving no company contributions under the SPF then, for payroll periods closing on and
after July 16, 1996, but before January 1, 1998, the Member’s elected rate of employee
contributions thereunder together with the Member’s elected rate of Salary Deferrals hereunder
shall not exceed twenty-one percent (21%).

          For Plan Years beginning on or after January 1, 1998, but before January 1, 2002, if a Member
is receiving company contributions under the SPF of ten percent (10%), then the Member’s elected
rate of employee contributions thereunder together with the Member’s elected rate of Salary
Deferrals hereunder shall not exceed fifteen percent (15%). If a Member is receiving company
contributions under the SPF of five percent (5%), then the Member’s elected rate of employee
contributions thereunder together with the Member’s elected rate of Salary Deferrals hereunder
shall not exceed twenty percent (20%). If a Member is receiving company contributions under the
Coral Energy Services, LLC Savings Plan of three percent (3%), then the Member’s elected rate of
employee contributions thereunder together with the Member’s elected rate of Salary Deferrals
hereunder shall not exceed twenty-two percent (22%). If a Member is receiving company
contributions under the SPF of two and one-half percent (21/2%), then the Member’s elected rate of
employee contributions thereunder together with the Member’s elected rate of Salary Deferrals
hereunder shall not exceed twenty-two and one-half percent (221/2 %). If a Member is receiving no
company contributions under the SPF, then the Member’s elected rate of employee contributions
thereunder together with the Member’s elected rate of Salary Deferrals hereunder shall not exceed
twenty-five percent (25%).

          This Subsection 3.2 shall not apply to Plan Years beginning on or after January 1, 2002.

     3.3     Change of Election of Contribution: A Member’s Salary Deferral direction for
Contributions shall be effective until canceled or changed by the Member notifying the Plan
Administrator or his agent, which cancellation or change shall be effective as of the first day of
the Member’s payroll period which next falls after Timely Notice to the Plan Administrator or his
agent; provided, the Plan Administrator shall amend or revoke a Member’s Salary Deferral direction
to the extent necessary to satisfy the limits specified in Subsections 3.5, 4.2 and the limits on
the deductibility of Contributions specified in Section 404(a) of the Code. Where a regulatory
body closes a principal securities exchange on which securities are traded, the posting of Salary
Deferrals may be delayed until normal trading resumes in all securities markets.

     3.4     Investment Options:

15

 

     (a)     Each Member shall direct that the entire amount of Contributions made on his behalf—and
each Member and each Beneficiary shall direct the entire amount of any dividends or other
distributions credited to the Account of the Member or Beneficiary in respect of his or her Royal
Dutch Shell Stock Fund Account—be invested in one or more of the Optional Funds then offered
under the Plan in multiples of one percent (1%); provided, however, where a regulatory body closes
a principal securities exchange on which securities are traded, the posting of Contributions may be
delayed until normal trading resumes in all securities markets. Prior to June 1, 1996, directions
shall be effective as of the first day of the Member’s payroll period which next falls after Timely
Notice to the Plan Administrator. On and after June 1, 1996, an investment direction shall be
effective: (1) on the day it is actually received provided it is received on a Valuation Date
before the New York Stock Exchange closes for trading; or (2) on the Valuation Date next succeeding
the day on which it is actually received, if it is not received on a Valuation Date or if it is
received on a Valuation Date after the New York Stock Exchange closes for trading. During periods
of extreme market conditions or market closures, an investment direction may not become effective
until normal trading resumes in all securities markets. Similarly whenever the Investment Manager
closes the Royal Dutch Shell Stock Fund to purchases, an investment direction to the Royal Dutch
Shell Stock Fund shall not become effective prior to the time that the Investment Manager reopens
the Royal Dutch Shell Stock Fund. Where market conditions permit, the Investment Manager shall
invest temporarily
Contributions relating to a suspended direction in the Thrift Fund. A Member or Beneficiary
shall be responsible for following up in order to ensure that his or her investment directions were
acted upon and were carried out in accordance with his or her express instructions, and that, in
the case of a Member, any Contributions related to a suspended direction were redirected in
accordance with the Member’s standing investment direction once the conditions that precipitated
the suspension were resolved. An investment direction directing Contributions or dividends into an
Optional Fund, once given, shall remain effective until changed by subsequent direction or until,
in the case of a Member, the Member’s termination of employment.

     (b)     Each Member, Nonseparated Member, Former Member, or Qualified Beneficiary may direct that
any portion of his Account shall be transferred between Optional Funds by giving directions to the
Plan Administrator as follows:

     (1)     Each direction shall state the amount or percentage to be transferred, the Optional Fund
from which the transfer is to be made, and each Optional Fund to which an amount or
percentage is to be transferred.

     (2)     Directions as to a transfer to any Optional Fund given in the prescribed manner (as
determined by Subsection 10.4 of the Plan Instrument) shall be effective on the day it is
actually received provided it is received on a Valuation Date before the New York Stock
Exchange closes for trading; or on the Valuation Date next succeeding the day on which it is
actually received, if it is not received on a Valuation Date or if it is received on a
Valuation Date after the New York Stock Exchange closes for trading. During periods of
extreme market conditions, market closures, or illiquidity, a transfer direction may not
become effective until normal trading resumes in all securities markets. Similarly whenever
the Investment Manager closes the Royal Dutch Shell Stock Fund to purchases and/or
redemptions, or whenever, in the judgment of the Investment Manager, liquidity in the Royal
Dutch Shell Stock Fund is insufficient to honor in the aggregate all Loan, Withdrawal, and
distribution requests involving redemptions from the Royal Dutch Shell Stock Fund, as well
as all Royal Dutch Shell Stock Fund redemption requests, then any directions to redeem Royal
Dutch Shell Stock Fund units and any directions to purchase or redeem units of other
Optional Funds which purchases or redemptions are dependent in whole or in part on
redemptions of Royal Dutch Shell Stock Fund units, shall not become effective until the
Royal Dutch Shell Stock Fund reopens and/or in the judgment of the Investment Manager,
liquidity in the Royal Dutch Shell Stock Fund is sufficient to honor in the aggregate all
such Loan, Withdrawal, and distribution requests and all Royal Dutch Shell Stock Fund
redemptions received previously or simultaneously. A Member or Beneficiary shall be
responsible for following

16

 

up in order to ensure that his or her transfer directions were
acted upon and were carried out in accordance with his or her express instructions.

An investment direction directing a transfer between Optional Funds, once given, shall remain
effective unless canceled in a timely manner; provided, however, that

     (3)     in the case of a transfer direction directing an exchange among two or more Fidelity
Select Portfolio funds exclusively, no transfer direction may be canceled or modified after
the first hour the Fidelity Select Portfolio is valued, and no proceeds from any such
exchange can be redirected prior to the close of the Valuation Date on which the exchange
direction takes effect;

     (4)     in the case of a transfer direction directing an exchange from a Fidelity Select
Portfolio to an Optional Fund other than another Fidelity Select Portfolio, no transfer
direction may be canceled or modified after the first hour the Fidelity Select Portfolio is
valued, and no proceeds from any such exchange can be redirected prior to the close of the
Valuation Date on which the exchange direction takes effect; and

     (5)     in the case of any other transfer direction, no such transfer direction may be
canceled or modified, and no proceeds from any such exchange can be redirected, after the
close of the Valuation Date on which the exchange direction takes effect.

          Dividends in the form of cash, stock dividends, and the proceeds of any other distributions
received by the Investment Manager in respect of the Royal Dutch Shell Stock Fund shall be credited
to the Members’ or Beneficiaries’ Royal Dutch Shell Stock Fund Accounts on the date of payment
thereof if received on a Valuation Date before the New York Stock Exchange closes for trading or on
the Valuation Date next succeeding the date on which the payment is received, if it is not received
on a Valuation Date or if it is received on a Valuation Date after the New York Stock Exchange
closes for trading; provided, however, that where a Member who is an Employee is not directing any
current investments in the Royal Dutch Shell Stock Fund, amounts representing such dividends and
other proceeds shall be credited in accordance with such Member’s investment election; provided,
further, that on and after July 16, 1996, where a Member or Beneficiary has a balance in his or her
Royal Dutch Stock Fund Account or Royal Dutch Shell Stock Fund Account, amounts representing such
dividends and other proceeds shall be credited to the Member’s or Beneficiary’s Royal Dutch Stock
Fund Account or Royal Dutch Shell Stock Fund Account, as applicable, unless, in the case of a
Member, the Member, whether or not a current Employee, affirmatively elects to have such amounts
invested in accordance with the Member’s then current or most recent investment election. Where by
virtue of the summary plan description or otherwise, the Member is informed or otherwise aware that
the Member has a right to invest dividends or other proceeds in respect of the Royal Dutch Shell
Stock Fund in accordance with such Member’s then current or most recent investment election and
moreover, that failure to make a valid investment direction shall be treated as a direction to
invest such dividends or other proceeds in respect of the Royal Dutch Shell Stock Fund in the Royal
Dutch Shell Stock Fund, then the Member’s failure to direct dividends or other proceeds in respect
of the Royal Dutch Shell Stock Fund shall be deemed an exercise of the Member’s control and
discretion to invest the same in the Royal Dutch Shell Stock Fund.

          Salary Deferrals as to which no valid investment direction is in effect shall be returned to
the Member. Where an Optional Fund terminates or withdraws from the Fund, a Member or Beneficiary
who has a balance in such Optional Fund shall redirect that balance among the remaining Optional
Funds. Where the Member or Beneficiary fails to make a valid investment redirection, such balance
shall be placed in the Thrift Fund. Where by virtue of the summary plan description or otherwise,
the Member or Beneficiary is informed or otherwise aware that he or she has a right to redirect a
balance from a terminated or withdrawn Optional Fund among the remaining Optional Funds and
moreover, that failure to
make a valid investment redirection shall be treated as a direction to
reinvest such balance in the Thrift Fund, then any failure to

17

 

redirect the balance from a
terminated or withdrawn Optional Fund shall be deemed an exercise of the Member’s or Beneficiary’s
control and discretion to invest such balance in the Thrift Fund.

     (c)     The assets allocated to Accounts may be invested in or transferred to one or more Optional
Funds which shall include: (1) the Lifestyle Funds and the Core Funds; (2) the Fidelity Mutual
Funds; (3) the Mutual Fund Window; and (4) such eligible investment company funds as from time to
time shall constitute the Fidelity Select Portfolios. A fund known as the Loan Fund shall be
created by the Trustee for each Borrower to whom a Loan is made pursuant to Section 6.3 of the
Plan. A Loan Fund shall consist of investments in notes made by the Borrower evidencing the
promised repayment of monies loaned to the Borrower from the Plan. The value of each Loan Fund
shall reflect the outstanding amount of the face value of notes made by the Borrower.

          Each of the Core Funds may retain cash on deposit, or purchase short-term investments in
keeping with the description of the particular Core Fund, in the amount necessary for the proper
administration of the Core Fund, including for purposes of the payment of expenses or other
anticipated distributions or pending the purchase of longer term investments suitable for the
particular Core Fund.

     (d)     As to each of the Optional Funds, a separate account shall be kept for each Member. In
general, each Member’s Account shall also be divided between Salary Deferrals and qualified
non-elective contributions and salary deferrals from other qualified plans (“Salary Deferral
Account”), Catch-Up Contributions as defined in Subsection 12.8 of the Plan and catch-up
contributions from other qualified plans (“Catch-Up Contribution Account”), company contributions,
including matching contributions, transferred from other qualified plans that allow for in-service
distributions of such assets before the Member attains 591/2 years of age (“Prior Plan Company
Contribution Account”), company contributions, including matching contributions, transferred from
other qualified plans that do not allow for in-service distributions of such assets before the
Member attains 591/2 years of age (“Company Contribution Account”), employee after-tax
contributions transferred from other qualified plans (“Prior Plan Member After-Tax Account”),
rollovers transferred from the other qualified plans (“Prior Plan Rollover Account”), and after-tax
rollovers transferred from other qualified plans (“Prior Plan After-Tax Rollover Account”). Except
as otherwise provided in this Plan, all references to a Member’s “Account” or “account” shall
include all of these subaccounts. The term “Member” as used in this Subsection 3.4(d) shall
include any Member, Nonseparated Member, Former Member, Qualified Beneficiary, or any alternate
payee, within the meaning of section 206(d)(3)(K) of ERISA, who has investments in one or more
Optional Funds.

     (e)     Appropriate entries shall be made to each Member’s Thrift Account to reflect (1) credits
for the amounts paid in or transferred to the Thrift Fund by or on behalf of the Member, including
a proportionate part of the interest, gains realized and other income allocated to the Thrift Fund,
(2) debits in accordance with any withdrawals, distributions, losses realized, or transfers to
another Optional Fund, and (3) a proportionate part of any expenses charged against the Thrift
Fund, which may be either direct debits or amounts netted in credit entries, thereby showing the
amount standing to the Member’s credit in his Thrift Account.

     (f)     Except as set forth in Subsection 3.4(e) hereinabove with respect to the Thrift Account,
this Subsection 3.4(f) shall govern accounting under each of the Optional Funds. Each of a
Member’s Optional Fund Accounts shall be divided into units of participation (“Units”) and the
proportionate interest of each Member who has accrued assets in that Account shall be evidenced by
the number and fractions of Units credited to such Account. Units shall be valued, except as set
forth in Subsection 3.4(g) hereinbelow, as of the close of each Valuation Date, and may be split or
combined, in the discretion of the investment manager to facilitate administration. Appropriate
entries shall be made to each of a Member’s Accounts to reflect (1) the amounts paid in or
transferred to the corresponding Optional Fund by or on behalf of the Member, (2) the allocation of
Units to that Account, (3) redemptions and transfers to another Optional Fund, (4) withdrawals and
distributions in accordance with the Plan, and (5) a proportionate part of any expenses charged
against the Optional Fund as provided by, in the case of Eligible Investment Company Funds, its
prospectus and applicable law, thereby showing the number of Units standing to his credit in that
Account.

18

 

     (g)     Units of the Fidelity Select Portfolios shall be valued hourly throughout the Valuation
Date, or as otherwise provided in the prospectus for each such Fidelity Select Portfolio.

     (h)     A Member or Beneficiary may lose exchange privileges under an Eligible Investment Company
Fund, consistent with the prospectus thereof, for trading that the Investment Manager determines is
excessive or that adversely impacts effective management of an Optional Fund in accordance with its
stated investment objectives and policies or that would otherwise potentially be adverse to the
interests of Members and Beneficiaries who are long-term investors.

     3.5     Reduction of Contributions by Plan Administrator:

     (a)     Except as provided in Subsection 12.7, an Eligible Employee shall not be permitted to have
Salary Deferrals made under this Plan during any taxable year of such Eligible Employee in excess
of $7,000 multiplied by the Adjustment Factor.

     (b)     The Average Actual Deferral Percentage for Eligible Employees who are Highly Compensated
Employees for the Plan Year shall not exceed the greater of:

     (i)     the general limitation which is the Average Actual Deferral Percentage for Eligible
Employees who are Nonhighly Compensated Employees for the Plan Year multiplied by 1.25; or

     (ii)     the alternative limitation which is the Average Actual Deferral Percentage for
Eligible Employees who are Nonhighly Compensated Employees for the Plan Year multiplied by
two (2), provided that the Average Actual Deferral Percentage for Eligible Employees who are
Highly Compensated Employees does not exceed the Average Actual Deferral Percentage for
Eligible Employees who are Nonhighly Compensated Employees by more than two (2) percentage
points.

          Except as provided in Subsection 12.6, consistent with Department of Treasury
regulation 1.401(m)-2, the prohibition against the multiple use of the alternative
limitation in (b)(ii) above shall be satisfied under the Shell Provident Fund and any other
defined contribution plan of Affiliates instead of this Plan.

     (c)     The Actual Deferral Percentage for any Eligible Employee who is a Highly Compensated
Employee for the Plan Year and who is a participant under two or more qualified cash or deferred
arrangements that are maintained by the Employer or a Controlled Group Company shall be determined
as if all such salary deferrals were made under this Plan.

     (d)     [ deleted ]

     (e)     The determination and treatment of the Salary Deferrals and Actual Deferral Percentage of
any Eligible Employee shall satisfy such other requirements as may be prescribed by the Secretary
of the Treasury.

     (f)     The Company shall monitor the amount of Salary Deferrals and shall advise the Plan
Administrator to effect whatever prospective reductions to the Salary Deferrals of Eligible
Employees are necessary or advisable to comply with the limits of this Subsection 3.5.

     (g)     If the Plan Administrator prospectively reduces the specified percentage of Salary
Deferrals of Highly Compensated Employees, he shall do so in the order of their specified
percentages beginning with the highest of such percentages. If the Plan Administrator determines
that the reduction in effect is no longer necessary or advisable, he may increase the Salary
Deferral percentages of all Highly Compensated Employees, who had their percentages reduced, in the
reverse order of their specified percentages beginning

19

 

with the lowest of such percentages and
continuing until the original Salary Deferral percentages of all such Highly Compensated Employees
have been restored or until the Plan Administrator determines that no further increases are
advisable, whichever occurs first. All reductions or increases of Salary Deferral percentages
hereunder shall be in multiples of one-half percent (1/2%). The Salary Deferral percentages of such
Highly Compensated Employees may be reduced to zero.

     (h)     When reducing or increasing the specified Salary Deferral percentages of Highly
Compensated Employees, the Plan Administrator shall treat all Highly Compensated Employees having
the same specified percentages in effect in the same manner.

     (i)     Any action taken by the Plan Administrator under this Subsection 3.5 may be taken without
the consent of, or prior notice to, the affected Members, but such Members shall be promptly
informed in writing of the Plan Administrator’s action.

     3.6     Plan Year Basis for Computations: For purposes of applying the ADP Limit, “Testing
Compensation” shall be computed on an entire Plan Year basis and the Plan elects to compute Testing
Compensation using the current Plan Year at the time the ADP Limit is applied. Reductions and
increases made to satisfy such limitations shall not affect persons who are not then Eligible
Employees. Where limitations are computed prior to the end of a Plan Year, the Plan Administrator
may estimate or project Testing Compensation. The Plan may elect to include in a person’s Testing
Compensation only compensation received while such person was eligible to participate in this Plan,
provided the election is applied uniformly to all employees eligible under the Plan for the Plan
Year.

     3.7     Time of Contributions: Contributions to the Trust to be credited to Members’ Accounts
shall ordinarily be made by the respective Participating Companies at the end of each pay period.
In no event shall Contributions be made to the Trust later than ninety (90) days after such amounts
would otherwise have been payable to the Member in cash; provided, however, where a regulatory body
closes a principal securities exchange or which securities are traded, the posting on contributions
may be delayed until normal trading resumes in all securities markets.

     3.8     Accounts  —  Statements, Liquidation of Optional Fund Accounts:

     (a)     The Plan will furnish to each Member within a reasonable time after the close of each
three-month period a statement regarding his Accounts which will reflect the amounts and/or Units
standing to his credit as of the close of the preceding three-month period and will specify all
Contributions, payments made on Loans (as to principal and interest), debits, and distributions for
the period, and the balance owed on any Loan outstanding at the end of the preceding period. Such
statements shall be deemed to be accepted as correct if no written objection shall have been made
to the Plan Administrator within sixty (60) days after the date of rendering. Records of
valuations of the Plan’s funds shall be prepared and preserved in such manner and within such time
after each Valuation Date as may be prescribed by the Plan Administrator.

     (b)     If a Member has credits in his Optional Fund Account upon termination of service as an
Employee or upon the occurrence of any other event giving rise to a distribution to the Member, a
Former Member or a Qualified Beneficiary of a deceased Member or Former Member (if a deferral is in
effect or is timely elected by the Qualified Beneficiary), the Optional Fund Units standing to the
credit of the Member or Former Member shall be redeemed at the close of the Valuation Date which
falls on the date of the Plan Administrator’s receipt of a proper distribution request (as
determined under Subsection 10.4) from the Member, the Former Member or the Qualified Beneficiary,
as the case may be, if received on a Valuation Date before the New York Stock Exchange closes for
trading or on the Valuation Date next succeeding the date on which such request is received, if it
is not received on a Valuation Date or if it is received on a Valuation Date after the New York
Stock Exchange closes for trading. In all other cases, the units standing to the credit of the
Optional Fund Account of a Member or Former Member shall be redeemed as of the Valuation Date which
falls on or next succeeds the termination of the Member’s service or the occurrence of

20

 

any other
event giving rise to a distribution from the Fund (including the death of the Member or Former
Member), or the date of receipt of notice thereof by the Plan Administrator, whichever is later.
Notwithstanding anything hereinabove to the contrary, this Subsection 3.8(b) is subject to the
provisions of Subsection 7.1(b) concerning automatic deferrals. During periods of extreme market
conditions or market closures, a direction may not become effective until normal trading resumes in
all securities markets. Similarly whenever the Investment Manager closes the Royal Dutch Shell
Stock Fund to redemptions or whenever, in the judgment of the Investment Manager, liquidity in the
Royal Dutch Shell Stock Fund is insufficient to honor in the aggregate all Loan, Withdrawal, and
distribution requests involving redemptions from the Royal Dutch Shell Stock Fund, then directions
to redeem units of the Royal Dutch Shell Stock Fund and/or directions to redeem other Optional
Funds units which redemptions are dependent in whole or in part upon redemptions of Royal Dutch
Shell Stock Fund units shall not become effective until the Royal Dutch Shell Stock Fund reopens
and/or, in the judgment of the Investment Manager, liquidity in the Royal Dutch Shell Stock Fund is sufficient to honor in the aggregate
all Loans, Withdrawals, and distributions involving redemptions from the Royal Dutch Shell Stock
Fund.

     3.9     Distribution of Excess Deferral Amounts:

     (a)     Notwithstanding any other provision of this Plan, the Excess Deferral Amount made by a
Member, and any income allocable thereto, shall be distributed no later than the first April 15
following the close of the Member’s taxable year in which the Excess Deferral Amount arose or as
soon as administratively feasible after an Excess Deferral Amount is detected by any monitoring
system maintained by a Participating Company, to the Member claiming such Excess Deferral Amount
under this Plan.

     (b)     The Member’s claim shall be in writing, shall be submitted to the Plan Administrator no
later than the first March 1 following the close of the Member’s taxable year in which the Excess
Deferral Amount arose, shall specify the Member’s Excess Deferral Amount for such taxable year, and
shall be accompanied by the Member’s written statement that if such amounts are not distributed,
then such Salary Deferrals—together with amounts deferred pursuant to other qualified cash or
deferred arrangements under Section 401(k) of the Code, simplified employee pension plans under
Section 408(k) of the Code, and tax-sheltered annuity contracts under Section 403(b) of the
Code—exceed the limit imposed on the Member by Subsection 3.5(a) for the taxable year in which
the Salary Deferrals occurred.

     (c)     In the case of any Excess Deferral Amounts which arise under this Plan by virtue of the
failure of any monitoring system maintained by a Participating Company, the Plan Administrator
shall be empowered to submit a claim on behalf of, and in the name of, the Member and such claim
shall be deemed to be the claim of such Member for all intents and purposes. The Plan
Administrator shall be entitled to assume that a Member’s taxable year is the calendar year unless
the Member has previously advised the Plan Administrator otherwise, in writing.

     (d)     The Excess Deferral Amount for the taxable year which would otherwise be distributed to
the participant shall be reduced, in accordance with Department of Treasury regulations, by the
Excess Contributions previously distributed to the participant for the Plan Year beginning in that
taxable year.

     3.10     Distribution of Excess Contributions:

     (a)     Notwithstanding any other provisions of this Plan, Excess Contributions and any income
allocable thereto shall be distributed after the Plan Year in which the Excess Contributions arose,
but no later than March 15 of each Plan Year beginning after December 31, 1987, to participants on
whose behalf such Excess Contributions were made for the preceding Plan Year. The total amount of
Excess Contributions for the Highly Compensated Employees for a Plan Year shall be distributed as
follows: The Salary Deferrals of the Highly Compensated Employees with the highest dollar amount
shall be reduced by the amount required to cause their Salary Deferrals to equal the lesser of (i)
the dollar amount of the Salary Deferrals of the Highly Compensated Employees with the next highest
dollar amount of Salary Deferrals, or (ii) the

21

 

amount, when added to the total dollar amount
already distributed under this process, would equal the total amount of Excess Contributions.
This amount shall be distributed to the Highly Compensated Employees for which a reduction was
applied. The procedure described in the preceding sentence shall be repeated until the Plan
distributes the total Excess Contributions of the Highly Compensated Employees, thereby satisfying
the ADP limit.

     (b)     The income allocable to Excess Contributions in Subsection 3.10(b) shall be the sum of the
allocable gain or loss for the Plan Year in which such Excess Contributions arose, and the
allocable gain or loss for the period between the end of such Plan Year and the date of
distribution, determined in accordance with Department of Treasury regulation 1.401(k)-1.

     (c)     The Excess Contributions for the Plan Year which would otherwise be distributed to the
participant shall be reduced, in accordance with Department of Treasury regulations, by the Excess
Deferral Amounts previously distributed to the participant for the taxable year ending in that Plan
Year.

     3.11     Mandatory Disaggregation:

     (a)     For purposes of Subsections 3.5(b) through (i), 3.6, and 3.10, except for the
determination of Highly Compensated Employee and Nonhighly Compensated Employee, the portion of the
Plan that benefits Employees who are included in a unit of employees covered by a collective
bargaining agreement is treated as a separate plan from the portion of the Plan that benefits
Employees who are not so covered.

     (b)     For Plan Years beginning before January 1, 1993, the portion of the Plan that benefits
Employees who are included in a unit of employees covered by a collective bargaining agreement is
treated as satisfying Subsection 3.5(b).

     3.12     Allocating Redemptions: A Member or Beneficiary may allocate redemptions among his or
her Optional Fund Accounts. Where by virtue of the summary plan description or otherwise, the
Member or Beneficiary is informed or otherwise aware that he or she has the right to allocate
redemptions to his or her Optional Fund Accounts and moreover, that the failure to make a valid
allocation shall be treated as a direction to allocate the redemptions to the Optional Funds
Accounts on a pro rata basis, then the Member’s or Beneficiary’s failure to allocate redemptions
properly shall be deemed an exercise of his or her control and discretion to allocate the
redemption to his or her Optional Fund Accounts on a pro rata basis.

SECTION IV

CONDITIONS AND LIMITATIONS ON CONTRIBUTIONS

     4.1     Contributions With Respect to Profits:

     (a)     On and after January 1, 1988, Contributions to the Trust for accounts of Members under the
Plan shall be made without regard to the existence or extent of current or accumulated earnings or
profits, unless an Employing Company elects otherwise with respect to its Eligible Employees.
Notwithstanding the elimination of the profits requirement, this Plan is designed to be a
profit-sharing plan.

     (b)     Prior to January 1, 1988, Contributions to the Trust for accounts of Members under the
Plan shall only be made by a Participating Company out of its current or accumulated earnings or
profits. If any such Company forming, together with one or more other Participating Companies, an
affiliated group within the meaning of Section 1504 of the Code, is prevented from making
Contributions which it would otherwise have made under the Plan by reason of having no current or
accumulated earnings or profits or because such

22

 

earnings or profits are less than the Contributions
which it would otherwise have made, then so much of the Contributions which such Participating
Company was so prevented from making, may be made for the benefit of the Members employed by such
Participating Company by the other Participating Companies forming such affiliated group, to the
extent of current or accumulated earnings or profits, except that such Contributions by each such
other Participating Company shall be limited, where such group does not file a consolidated return,
to that proportion of its total current and accumulated earnings or profits remaining after
adjustment for its Contribution made (without regard to this sentence) which the total prevented
Contributions bear to the total current and accumulated earnings or profits of all the Members of
such group remaining after adjustment for all Contributions made (without regard to this sentence).

     4.2     Limitations Under Section 415 of the Code:

     (a)     Notwithstanding anything contained herein to the contrary except as provided in
Subsection 12.3, the maximum Contribution permitted to be paid into the Trust on behalf of
a Member and the amount of Contributions allocated or reallocated to the Account of any
Member for a Plan Year, shall not exceed the lesser of:

     (i)     Thirty Thousand Dollars ($30,000); or

     (ii)     25 percent (25%) of the compensation of the Member for the calendar
year.

     (b)     Aggregate contributions by or on behalf of a Member to this Plan and other defined
contribution plans of the Participating and Affiliated Companies shall not exceed the limitations
of Subsection 4.2(a) for any Plan Year. If reduction of such aggregate contributions is necessary
to meet these requirements for any Plan Year, contributions to such other defined contribution
plans shall be reduced prior to reduction of Contributions under this Plan. For the 1984 calendar
year, contributions to such other defined contribution plans made for periods prior to August 1,
1984 shall not be reduced in favor of Contributions to this Plan.

     (c)     To the extent the amount of Contributions would otherwise exceed the amounts described in
Paragraph (a) of this Subsection, the amounts permitted to be credited to a Member’s Account shall
be reduced to the extent necessary.

     (d)     If the limitation under this Subsection 4.2(d) is applicable as described in Subsection
4.2(l), and if a Member of this Plan also is or has been a participant in a defined benefit plan to
which plan contributions have been made by the Employer or an Affiliated Company, then in addition
to the limitation contained in Paragraph (a) of this Subsection, the sum of the Defined Benefit
Plan Fraction and the Defined Contribution Plan Fraction for any Plan Year shall not exceed 1.0.
To satisfy the limitation of this Paragraph (d), Contributions to this Plan shall be reduced only
after benefit accruals under such a defined benefit plan have been reduced to zero. Where a Member
has participated in a defined benefit plan of any of the Participating or Affiliated Companies,
which plan satisfied the requirements of Section 415 of the Code for the last year beginning before
January 1, 1987, and where the sum of the Defined Benefit Plan Fraction and the Defined
Contribution Plan Fraction exceeds 1.0, then an amount shall be subtracted from the numerator of
the Defined Contribution Plan Fraction (not exceeding such numerator) so that the sum of the
Defined Benefit Plan Fraction and the Defined Contribution Plan Fraction does not exceed 1.0 for
such year, as described under the relevant transitional rule under the Tax Reform Act of 1986.

     (e)     To the extent the provisions of Paragraph (d) of this Subsection would otherwise be
violated, the amount allocated or reallocated to a Member’s Account for the Plan Year shall be
further reduced to the extent necessary, as determined by the Plan Administrator, to prevent
disqualification of the Plan under Section 415 of the Code.

23

 

     (f)     For purposes of the limitations contained in this Subsection, all defined contribution
plans (whether or not terminated) of the Employer shall be treated as one defined contribution
plan. Similarly, all defined benefit plans (whether or not terminated) of the Employer shall be
treated as one defined benefit plan for these purposes.

     (g)     If, due to a reasonable error in calculating a Member’s annual compensation, a reasonable
error in determining the amount of elective deferrals (within the meaning of Code Section
402(g)(3)) that may be made with respect to any individual under the limits of Code Section 415, or
due to such other facts and circumstances as may justify the availability of this special rule, as
determined by the Internal Revenue Service, the Annual Additions to the Member’s Account under this
Plan and under any other defined
contribution plan maintained by an Employer exceed the limitations set forth in this Subsection,
then the aggregate of the Annual Additions to this Plan and the Annual Additions to any other
defined contribution plan referred to in Paragraph (f) of this Subsection shall be reduced, until
the applicable limitation is satisfied by reducing the aggregate amount. Such reduction shall take
place through a refund of any contributions made by the Member to any other defined contribution
plan, which contributions would be aggregated with the Annual Additions to this Plan, together with
earnings thereon, under Paragraph (f) of this Subsection.

     (h)     If, after the reductions provided in Paragraph (g) of this Subsection, there remains an
excess of Annual Additions, such excess amounts in a Member’s Account shall be treated in
accordance with any one of the following three methods:

     (1)     Such excess amounts in a Member’s Account shall be used to reduce employer contributions for
the next Plan Year (and succeeding Plan Years, as necessary) for that Member if that Member is
covered by the plan of the employer as of the end of the Plan Year. However, if that Member
is not covered by the plan of the employer as of the end of the Plan Year, then the excess
amounts must be held unallocated in a suspense account for the Plan Year and allocated and
reallocated in the next Plan Year to all of the remaining Members’ Accounts in the plan.
Furthermore, the excess amounts must be used to reduce employer contributions for the next
Plan Year (and succeeding Plan Years, as necessary) for all of the remaining Members in the
plan. Excess amounts may not be distributed to Members or Former Members.

     (2)     Such excess amounts in a Member’s Account shall be allocated and reallocated to other
Members’ Accounts. However, if that allocation or reallocation causes the limitations of Code
Section 415 to be exceeded with respect to each Member for the Plan Year, the remaining excess
amounts must be held unallocated in a suspense account for the Plan Year and allocated and
reallocated in the next Plan Year to all of the Members’ Accounts. Furthermore, the excess
amounts must be used to reduce employer contributions for the next Plan Year (and succeeding
Plan Years, as necessary) for all of the Members in the Plan. Excess amounts may not be
distributed to Members or Former Members.

     (3)     Such excess amounts in a Member’s Account shall be held unallocated in a suspense account for
the Plan Year, and allocated and reallocated in the next Plan Year (and succeeding Plan Years,
as necessary) to all of the Members’ Accounts. The excess amounts so allocated and
reallocated must be used to reduce employer contributions for the next Plan Year (and
succeeding Plan Years, as necessary) for all of the Members in the Plan. Excess amounts may
not be distributed to Members or Former Members.

     (4)     If any excess of Annual Additions still remains after methods (1), (2), or (3) above have
been applied to other defined contribution plans and before any of those methods are applied
to the Plan, the Plan shall distribute to the Member an amount equal to the lesser of the
remaining excess of Annual Additions or the Member’s accumulated Salary Deferral (after
reduction for the distribution of Excess Deferral and Excess Contribution amounts under
Subsections 3.9 and 3.10). The Plan shall also distribute any gains attributable to the
distributed Salary deferral amounts.

24

 

     (i)     If such reduction of employer contributions as provided in Paragraph (h) of this
Subsection is necessary for any Plan Year, reduction of employer contributions for other defined
contribution plans shall take place prior to reductions with respect to this Plan.

     (j)     If a suspense account is in existence at any time during the Plan Year in accordance with
this Subsection, investment gains and losses and other income shall not be allocated to the
suspense account. If the treatment described in this Subsection 4.2 is necessary, such treatment
shall be performed on the plans in the following order:

     (i)     plans other than those referred to in (ii) and (iii) below;

     (ii)     the Shell Provident Fund;

     (iii)     this Plan.

     (k)     The Plan Administrator shall notify the Member and the Participating Company if the
limitation on Contributions or allocation or reallocation of Contributions to such Member’s Account
for any Plan Year is affected by the limitations set forth in this Subsection.

     (l)     The limitation described in Subsection 4.2(d) shall apply to payments under the Shell
Pension Plan, except that it shall not apply to payments under the Shell Pension Plan, to the
extent provided in the following described circumstances:

     (i)     Except as provided in Subsection 4.2(l)(iii) below, in the case of any Employee or
former Employee who has ever been a member of the Senior Staff, the limitation described in
Subsection 4.2(d) shall not be applicable to payments under the Shell Pension Plan
commencing on or after January 1, 2002; and

     (ii)     Except as provided in Subsection 4.2(l)(iii) below, in the case of any Employee or
former Employee who has never been a member of the Senior Staff, the limitation described in
Subsection 4.2(d) shall not be applicable to payments under the Shell Pension Plan
commencing on or after January 1, 2000.

     (iii)     The limitation described in Subsection 4.2(d) shall continue to apply: (1) to
any Shell Pension Plan participant whose payments under the Shell Pension Plan commenced
prior to January 1, 2000; and (2) in all events to the extent any Shell Pension Plan
participant has received a lump sum (or to the extent such participant’s election to receive
a lump sum payment has been honored) under the Shell Oil Company Benefit Restoration Plan or
any other non-tax qualified defined benefit plan of the employer which included or includes
an amount attributable to the amount of such benefit which was not paid or payable under the
Shell Pension Plan on account of the limitation under Section 415(e) of the Code as it was
in effect at the time of such election.

     4.3     Definitions: For purposes of Subsection 4.2, the term:

     (a)     “Annual Additions” means the sum for any Plan Year of—

     (i)     Contributions to the Trust and employer contributions to other defined contribution
plans, and

     (ii)     employee contributions to other defined contribution plans.

     (b)     “Compensation” is defined as follows:

     (i)     Compensation includes:

25

 

     (A)     The Member’s wages, salaries, fees for professional service and other
amounts received for personal services actually rendered in the course of employment
with an Employer (including, but not limited to, commissions paid salesmen,
compensation for services on the basis of a percentage of profits, commissions on
insurance premiums, tips and bonuses).

     (B)     For purposes of (A) above, earned income from sources outside the United
States (as defined in Sec. 911(b) of the Code), whether or not excludable from gross
income under Sec. 911 of the Code or deductible under Sec. 913 of the Code.

     (C)     Amounts described in Sections 104(a)(3), 105(a), and 105(h) of the Code,
but only to the extent that these amounts are includable in the gross income of the
Member.

     (D)     Amounts described in Section 105(d) of the Code whether or not these
amounts are excludable from the gross income of the Member under that Section.

     (E)     Amounts paid or reimbursed by the Employer for moving expenses incurred by
a Member, but only to the extent that these amounts are not deductible by the Member
under Section 217 of the Code.

     (F)     The value of a non-qualified stock option granted to a Member by the
Employer, but only to the extent that the value of the option is includable in the
gross income of the Member for the taxable year in which granted.

     (G)     The amount includable in the gross income of a Member upon making the
election described in Section 83(b) of the Code.

     (H)     The amount which is not includable in an Employee’s gross income as a
result of the application of Sections 402(g)(3) and 125 of the Code.

     (I)     For Plan Years beginning on and after January 1, 2001, the elective amounts
that are not includible in the gross income of the Employee by reason of Section
132(f)(4) of the Code.

      (ii)     Compensation does not include items such as:

     (A)     Contributions made by an Employer to a plan of deferred compensation to the
extent that, before the application of the limitations of Section 415 of the Code to
that plan, the contributions are not includable in the gross income of the Member
for the taxable year in which contributed. Additionally, any distributions from a
plan of deferred compensation are not considered as compensation for purposes of
Sec. 415 of the Code, regardless of whether such amounts are includable in the gross
income of the Member when distributed. However, any amounts received by a Member
pursuant to an unfunded non-qualified plan may be considered as compensation for
purposes of Section 415 of the Code in the year such amounts are includable in the
gross income of the Member.

     (B)     Amounts realized from the exercise of a non-qualified stock option, or when
restricted stock (or property) held by a Member either becomes freely transferable
or is no longer subject to a substantial risk of forfeiture as defined within the
meaning of Section 83 of the Code and the regulations thereunder.

     (C)     Amounts realized from the sale, exchange or other disposition of stock
acquired under a qualified stock option.

26

 

     (D)     Other amounts which receive special tax benefits, such as premiums for
group term life insurance (but only to the extent that the premiums are not
includable in the gross income of the Member).

     (iii)     Compensation (as defined in this Paragraph (b)) is measured as the compensation
of a Member from the Employer for a calendar year. The compensation actually paid or made
available
to a Member within the calendar year is the compensation used for purposes of applying the
limitations of Section 415 of the Code.

     (c)     “Annual Benefit” means the Member’s annual benefit payable in the form of a straight life
annuity under all defined benefit plans maintained by an Employer, excluding any benefits
attributable to the Member’s contributions or rollover contributions, if any, to the plans.

     (d)     “Projected Annual Benefit” means the Annual Benefit a Member would receive under the terms
of the plan, based upon the following assumptions:

     (i)     The Member will continue employment until the later of: (A) the Member’s normal
retirement age; or (B) the Member’s current age;

     (ii)     the Member’s compensation for the Plan Year under consideration will remain the
same until the date the Member attains the age described in (i); and

     (iii)     all other relevant factors used to determine benefits under the plan for the Plan
Year under consideration will remain constant for all future Plan Years.

     (e)     “Defined Benefit Plan Fraction” for any year is a fraction —

     (i)     the numerator of which is the Projected Annual Benefit of the Member under the plan
(determined as of the close of the year) provided that if the Member has participated in
more than one defined benefit plan maintained by the Employer, the numerator is the sum of
the Projected Annual Benefits under the plans, and

     (ii)     the denominator of which is the lesser of (A) or (B) below:

     (A)     The product of 1.25 multiplied by the dollar limitation under Section 415
of the Code, as adjusted in accordance with regulations issued by the Secretary of
the Treasury. In the case of a defined benefit plan which is a top-heavy plan (as
defined in Section 416 of the Code), the product shall be the same as described in
the preceding sentence, except that “1.0” shall be substituted for “1.25.”

     (B)     The product of 1.4 multiplied by an amount which is 100% of the Member’s
average compensation for the 3 consecutive years in which his compensation was the
highest.

     (f)     “Defined Contribution Plan Fraction” for any year is a fraction —

     (i)     the numerator of which is the sum of the Annual Additions to the accounts of the
Member, in all defined contribution plans maintained by the Employer, as of the end of the
Plan Year, and

     (ii)     the denominator of which is the sum of the lesser of (A) or (B) below determined
for such Plan Year and for each prior year of service with the Employer.

27

 

     (A)     The product of 1.25 multiplied by the dollar limitation under Section 415
of the Code as adjusted in accordance with regulations issued by the Secretary of
the Treasury. In the case of a defined contribution plan which is a top-heavy plan
(as defined in Section 416 of the Code), the product shall be the same as described
in the preceding sentence, except that “1.0” shall be substituted for “1.25.”

     (B)     The product of 1.4 multiplied by an amount equal to 25% of the Member’s
compensation for such year.

A Member’s Defined Contribution Plan Fraction, as otherwise defined in this Subsection 4.3(f) shall
be frozen as of December 31, 1999.

     4.4     Contributions in Excess of Deductible Amounts: Unless an Employer directs otherwise, an
Employer’s Contributions to the Trust: are conditioned upon their being deductible for such
Employer’s taxable year under Section 404 of the Code; and shall not exceed such deductible
amounts.

     4.5     Late Contributions: To the maximum extent permitted by applicable law, the Plan Administrator
shall cause the employing Participating Company to correct delayed contributions and repayments in
accordance with this Subsection 4.5. For delayed Employer contributions that are corrected within
two payroll periods, the Participating Company shall restore to the Member’s account only the
principal amount. For delayed Member contributions, delayed loan repayments, other delayed
investment-related payroll deductions that are not corrected as of the earliest date on which
contributions can reasonably be segregated from the employer’s general assets, the Participating
Company shall restore to the Member’s account the principal amount together with an amount equal to
the principal amount multiplied by the greater of: (a) the actual rate of return the Member would
have earned but for the delay or (b) the underpayment rate of Section 6621(a)(2) of the Code;
provided, however, for the sake of administrative convenience, the Plan Administrator shall have
the option of using, in lieu of the actual rate, the highest rate of return among the available
investment alternatives of the Fund during the period of the delay. For delayed Employer
contributions that are not corrected within two payroll periods, the Participating Company shall
restore to the Member’s account the principal amount adjusted to reflect the actual rate of return
that would have been credited to the Member’s account but for the error; provided, however, for the
sake of administrative convenience, the Plan Administrator shall have the option of using, in lieu
of the actual rate, such rate of return as shall be reasonably prudent under the circumstances.

28

 

SECTION V

NAMED FIDUCIARIES, PLAN ADMINISTRATION, MANAGEMENT

OF PLAN ASSETS, AND CLAIMS PROCEDURE

     5.1     Named Fiduciaries for the Plan: The “Named Fiduciaries” of the Plan shall be the Trustees
and the Plan Administrator. Solely for purposes of directing investments in their own accounts and
not for purposes of the operation or administration of the Plan, Members and Former Members and
Qualified Beneficiaries entitled under the Plan Instrument to direct investments in their own
accounts, shall be named Fiduciaries under the Plan. The Trustees may rely upon any investment
direction of such a Member, Former Member or Qualified Beneficiary, as long as any such direction
is proper on its face and consistent with the Plan Instrument and the Trust Agreement.
Furthermore, each Trustee may rely upon any direction, information, or action of another Trustee as
being proper under this Plan Instrument or the Trust Agreement and is not required under this Plan
Instrument or the Trust Agreement to inquire into the propriety of any such direction, information
or action. It is intended under this Plan Instrument and the Trust Agreement that each Trustee
shall be responsible for the proper exercise of his own powers, duties, responsibilities, and
obligations under this Plan Instrument and the Trust Agreement and shall not be responsible for any
act or failure to act of another Trustee, except in the following circumstances: (a) the Trustee
knowingly participates in or knowingly attempts to conceal the act or omission of another
fiduciary, and the Trustee knows the act or omission is a breach of a fiduciary responsibility by
the other fiduciary; or (b) the Trustee has knowledge of a breach by the other fiduciary and does
not make reasonable efforts to remedy the breach; or (c) the Trustee’s breach of his own fiduciary
responsibility permits the other fiduciary to commit a breach. No Trustee guarantees the Plan’s
assets in any manner against investment loss or depreciation in asset value.

     The Contributing Companies shall have no responsibility for overseeing or monitoring the
investment options under Schedule C of the Regulations. The Trustees and the Plan Administrator
shall have only limited responsibility for overseeing and monitoring the LifeStyle Funds set out in
Part I of Schedule C to the Regulations and shall have no responsibility for overseeing or
monitoring the Tier III Funds or the Tier IV Funds regardless of whether such Tier III Funds and/or
such Tier IV Funds underlie investment options under Part I and/or Part II of such Schedule C.
Each participant and each beneficiary shall have the sole responsibility for deciding to buy, sell,
or hold units in the investment options under Schedule C of the Regulations for his or her account
and the sole responsibility for determining whether any Tier III Funds and any Tier IV Funds in
said account provide acceptable risk and return characteristics and are otherwise consistent with
his or her investment objectives and the investment objectives of the Optional Fund.

     5.2     The Company’s Functions and Authority under the Plan: Shell Oil Company (the “Company”)
shall have the authority to amend the Plan, as provided in Section VIII of this Plan Instrument.

     5.3     The Trustees; Their Powers and Duties: The Trustees for the Plan shall be appointed and
may be removed by Shell Oil Company. Trustees shall not receive any remuneration from the Plan for
their services. The Trustees shall have the overall responsibility for the operation of the Plan
and shall have all powers necessary or incidental to provide for the Plan’s proper operation. In
addition to such powers, duties and responsibilities and those set forth in the Trust Agreement,
the Trustees shall have the following specific powers, duties and responsibilities:

     (a)     The Trustees shall appoint such person or persons or such entity or entities to serve as
Plan Administrator of the Plan. The Trustees shall have the power to remove any such Plan
Administrator at their
discretion and they may appoint persons or groups of persons other than the Plan Administrator to
perform certain administrative functions for the Plan.

     (b)     The Trustees shall select and enter into agreements and/or investment contracts with
banks, trust institutions and Investment Managers to provide for the holding, management and
distribution of Plan

29

 

assets which banks, trust institutions and Investment Managers shall be deemed
fiduciaries of the Plan. In this connection, the Trustees may enter into custodial agreements with
banks and/or trust companies to hold certain funds and/or securities of the Plan which would be
managed by an Investment Manager selected by the Trustees and they may direct the Plan
Administrator and his staff to manage certain funds and/or securities of the Plan held by such a
custodian. The Trustees may remove and replace any bank, trust institution, Investment Manager or
custodian as they see fit. Any bank, trust company or custodian having custody of the Plan’s funds
shall have capital stock and surplus of not less than Fifty Million Dollars ($50,000,000) and be
adequately insured or bonded. It shall be the duty of the Trustees to periodically (at least
annually) review the investment performances of any Investment Manager managing Plan assets. In
connection with such review, they may direct the Plan Administrator to gather and present to them
information which is necessary or useful to make such reviews.

     (c)     The Trustees may borrow money from time to time upon such terms and conditions as they may
deem expedient and, for the loans thus made or in renewal thereof, they may issue their promissory
note or notes as Trustees and may secure the repayment thereof by pledging any of the assets then
in their control.

     (d)     The Trustees shall have the power to settle or compromise any claims which they may have
as Trustees or which the Plan may have, or may settle or compromise any claims against the Plan or
against them as Trustees and they may delegate to the Plan Administrator the power to settle any
particular claim in favor of, or against, the Plan.

     (e)     The Trustees shall have full power and authority to determine all matters arising in the
interpretation and application of the Plan including the Trust Agreement and the determination of
any such matter by the Trustees shall be conclusive on all persons, provided, however, the Plan
Administrator shall be empowered to interpret provisions and application of the Plan as to
Withdrawals and Loans, and, as to any particular claim on which he is called upon to rule under the
Plan’s claims procedure and his interpretation and application shall be binding as to any such
claimant subject to the claimant’s right to have the matter reviewed by Trustees under such claims
procedure.

     (f)     The Trustees may employ one or more persons to render advice with regard to any
responsibility the Trustees have under the Plan, and may employ counsel and agents and engage such
clerical, financial, and accounting services as they deem expedient. The Trustees shall not be
deemed imprudent by reason of their taking or refraining from taking action in accordance with the
opinion of counsel. The Trustees shall have the power to remove and replace anyone they shall have
appointed or employed.

     (g)     The Trustees may act by a majority of their number then in office either by vote at a
meeting or in writing without a meeting. The Trustees may appoint a chairman and vice-chairman
from among their number and a secretary and such other officers as they may deem advisable who need
not be Trustees; may appoint an executive committee consisting of three or more Trustees with full
authority to exercise any of the powers of the Trustees except those under paragraphs (c), (d), (e)
and (f) above; may authorize any two or more Trustees, or, one or more Trustees and the Plan
Administrator to execute any agreement, contract or investment management agreement contemplated
under paragraph (b) above; may appoint such other committees, whose members need not be Trustees,
with such powers as they may deem expedient; may provide that any such committee may act by a
majority of its number then in office (but in no event less than two) either by a vote at a meeting
or in writing without a meeting; may designate alternates for any members of any such committee;
may adopt by-laws governing the transaction of their business and the duties of such officers; may
remove any such officers, abolish any such committees, and alter or repeal any such by-laws; and
may transact their business under the name “Shell Pay Deferral Investment Fund.”

     (h)     Except as otherwise provided herein, the Trustees shall have the power to invest and
reinvest all funds received by them in such securities, obligations, or properties (real or
personal) or participations or interests therein, the rate of return which is fixed by the
instruments evidencing the investment (referred to herein collectively as “securities”), and
insurance company group annuity investment contracts and

30

 

agreements, as they may deem advisable in
their discretion as though they were the beneficial owners thereof, excluding securities issued or
to be issued by any of the Participating or Affiliated Companies. Notwithstanding the foregoing,
an investment in any collective or common trust fund shall not be prohibited even though such
collective or common trust fund may hold securities issued by any of the Participating or
Affiliated Companies so long as such securities shall not exceed 5% of the assets of the optional
fund to which the investment relates. The Trustees shall have power to sell, transfer, or exchange
assets held hereunder from time to time at such prices and upon such terms and conditions and in
such manner as they may deem proper. The Trustees may lend securities held hereunder consistent
with the fiduciary duty and prohibited transaction rules of ERISA. The Trustees may exercise any
voting powers appurtenant to any securities at the time held by them and may execute any proxies or
powers of attorney (as to either discretionary or ministerial matters) and any agreements which
they may deem necessary or advisable in connection with the investment, holding, or management of
the assets in their custody and control, it being the intention hereof that the Trustees shall have
full power, within the limitations of this Trust Agreement, to manage all assets held by them
hereunder, as though the absolute owners thereof. The purchaser of any assets from the Trustees
need not inquire into the application of the purchase money by the Trustees nor into the expediency
or propriety of the Trustees to negotiate or make the same. Securities held by the Trustees may be
registered in the name of the Plan, the Trustees or their agents or nominees, or other persons; or
they may be unregistered.

     (i)     Notwithstanding anything in this Plan Instrument or the Trust Agreement to the contrary,
the Trustees shall have the right to resolve conflicting rights and claims in such a manner as is
in the best interests of all participants and beneficiaries.

     5.4     Investment Managers, Insurance Companies, Custodians, Group Trust:

     (a)     The Trustees may manage certain assets themselves or appoint one or more Investment
Managers for each fund offered by the Plan except, in the case of the Thrift Fund, they may select
one or more insurance companies or other institutions offering investment contracts to manage
certain assets, divide such assets between such companies and an Investment Manager, and/or direct
the Plan Administrator and his staff to manage the assets. As to certain Plan assets, the Trustees
may select a bank or trust institution to act as custodian for same if the Investment Manager or
other fiduciary managing such assets either does not perform such services or the Trustees believe
it to be advantageous to have another party act as custodian.

     (b)     Each Investment Manager shall individually have power to sell, transfer, or otherwise
dispose of assets of the fund held by it from time to time at such prices and upon such terms and
conditions and in such manner as it may deem proper. Each Investment Manager may exercise any
voting powers appurtenant to any such assets at the time held by it and may execute any proxies or
powers of attorney (as to either discretionary or ministerial matters) and any agreements which it
may deem necessary or advisable in connection with its investment, holding, or management of
assets, it being the intention hereof that such Investment Manager shall have full power, subject
to the other provisions hereof, to manage all assets held by it as though the absolute owner
thereof. The purchaser of any assets from any Investment Manager need not inquire into the
application of the purchase money by such Investment Manager nor into the expediency or propriety
of any sale or the authority of such Investment Manager to negotiate or make same. Securities held
by each Investment Manager may be registered in the name of “Shell Pay Deferral Investment Fund,”
any Investment Manager or its agent or nominees, or other persons; or they may be unregistered.
Such securities shall be kept separate and apart from all other property belonging to or in the
custody of each Investment Manager, except any Investment Manager shall have the power in its
discretion to cause any investment to be registered in the name of any one or more nominees of any
system for the central handling of securities and
such securities may thereupon be placed for deposit with such system; however, such Investment
Manager shall remain accountable for such investment.

     (c)     Each Investment Manager may invest in any single, collective, or common trust fund for
employee benefit plans qualified under Section 401(a) of the Code maintained by a trust company.
An

31

 

investment in any collective or common trust fund shall not be prohibited even though such
collective or common trust fund may hold securities issued by any of the Participating or
Affiliated Companies so long as such securities shall not exceed 5% of the assets of the optional
fund to which the investment relates. Without limiting the generality of the foregoing, the
agreement with the bank or trust company may authorize the bank or trust company to invest and
reinvest the assets transferred to it in interests in any trust fund that has been or shall be
created and maintained by the bank or trust company as trustee for the collective investment of
funds of trusts for employee benefit plans qualified under Section 401(a) of the Code, and, to the
extent required by Revenue Ruling 81-100 and further to the extent consistent with the Plan, the
instrument creating such trust fund, together with any amendments is hereby incorporated in and
made part of the Plan.

     (d)     In addition to any other investments proper under the Fund, the Trustees shall have the
power to invest in one or more collective investment funds now existing or hereinafter established
(including, without limitation, the Shell Savings Group Trust established effective January 1, 1996
between Shell Oil Company and the then Trustees) which contemplate the commingling for investment
purposes of the funds therein with trust assets of other pension plans which are qualified under
Section 401 of the Code. To the extent required by Revenue Ruling 81-100 and to the extent
consistent with this Trust Agreement, the instrument creating any collective investment fund in
which any part of the Fund is invested, as in force and effect at the time of the investment and as
thereafter amended, is hereby incorporated in and made part of this Trust Agreement. Such
collective investment fund shall be invested and reinvested by its trustees and/or investment
managers in the classes and types of investments designated by the appropriate provisions of the
Fund.

     (e)     The Investment Manager of the Royal Dutch Shell Stock Fund shall have the right to close
the Royal Dutch Shell Stock Fund to purchases and redemptions whenever trading in shares of Royal
Dutch Shell plc is suspended or whenever, in the judgment of the Investment Manager, substantial
purchase and sales orders for such shares are pending but not executed.

     5.5     Plan Administrator: The Plan Administrator shall be responsible for administration of the
Plan and shall perform such specific administrative functions as may be prescribed by the Trustees.
If more than one person and/or entity is appointed Plan Administrator, or, if certain persons are
appointed by the Trustees for certain administrative duties, the Trustees may allocate some or all
of the responsibility to each individual and/or entity appointed, and, each such individual or
entity shall only be responsible for the duties allocated to such person or entity. The Plan
Administrator may designate persons or entities other than the Plan Administrator to perform some
or all of the responsibilities of the Plan Administrator. The Plan Administrator shall be
responsible for any administrative duties not allocated to a particular person or entity and shall
have the following powers and duties in addition to those stated elsewhere in the Plan Instrument
or as prescribed by the Trustees unless such functions are given to other persons appointed by the
Trustees:

     (a)     To prescribe such procedures, rules, regulations and methods of communication as necessary
or proper for the efficient administration of the Plan;

     (b)     Except where specific powers or duties are given under the Plan to others, to determine
all questions arising in the administration of the Plan, including the power to determine the
rights of any Member or beneficiaries, to determine questions of eligibility, to enforce the Plan
in accordance with its terms and to consider and interpret the Plan and settle and discharge
disputes arising thereunder, subject to review under the claims procedure. The Plan Administrator
shall consider the records of the Participating
Companies and Affiliated Companies as conclusive evidence in making determinations concerning
eligibility or benefits under the Plan except in unusual circumstances;

     (c)     To determine the fair market value of assets of the Plan on Valuation Dates and as often
as required by the Trustees and other Plan provisions; to keep the books and records of the Plan
and to do all the

32

 

clerical, bookkeeping, and accounting work in connection with the management and
administration of the Plan;

     (d)     To prepare and distribute all reports and information concerning the Plan required by law
or the Plan;

     (e)     To employ such agents, attorneys, accountants, and other individuals as deemed necessary
or advisable for the administration of the Plan;

     (f)     To accept service of legal process for suits against the Plan or arising under it, to
bring such matters to the attention of the Trustees and to bring legal action in the name of the
Plan if authorized by the Trustees;

     (g)     To periodically monitor the investment performance of any Investment Manager and submit
reports to the Trustees covering such performances;

     (h)     To approve and authorize payment of expenses of administration of the Plan; and

     (i)     To administer the loan program.

     5.6     Delegation by Plan Administrator: The Plan Administrator shall be able to delegate
ministerial functions within the framework of policies, interpretations, rules, practices, and
procedures set by the Plan Administrator without delegating any power to the appointee to make any
decisions as to such. Following are the types of administrative functions intended to be covered
by this delegation if such functions are the Plan Administrator’s responsibility:

     (a)     Application of rules determining eligibility for participation or benefits;

     (b)     Calculation of service for participation, compensation and allowable Contributions;

     (c)     Preparation of Employee communications material;

     (d)     Maintenance of Employees’ service and employment records;

     (e)     To employ one or more persons to render advice with regard to any responsibility the
Trustees have under the Plan, and to employ such agents, attorneys, accountants, and other
individuals as deemed necessary or advisable for the administration of the Plan;

     (f)     Orientation of new Employees and advising Employees of their rights and options under the
Plan;

     (g)     Processing of communications required under the Plan including applications for
membership, directions for Salary Deferrals, investment options, designations of beneficiaries and
the like;

     (h)     Collection of Contributions and applications of such Contributions as provided in the
Plan;

     (i)     Processing of claims and bringing same to the attention of the Plan Administrator;

     (j)     Making recommendations with respect to Plan administration; and

     (k)     Valuations of Accounts.

     5.7     Claims Procedure: Any claim for benefits under the Plan shall be made in writing and
submitted to the Plan Administrator, who shall reach a decision as soon as reasonable under the

33

 

circumstances and notify the claimant, or his duly authorized representative, thereof promptly
(and, except as provided herein, within ninety (90) days of the receipt of the claim) in writing by
mail addressed to the last known address of the claimant or such representative, as the case may
be, appearing on the records of the Plan Administrator. If the Plan Administrator determines that
special circumstances require an extension of time for processing the claim, the Plan Administrator
shall have up to an additional 90 days to respond provided he gives notice of the extension, the
reasons therefor, and the expected date of response to the claimant prior to the end of the initial
90-day period. If the claim shall be denied, in whole or in part, the notice thereof shall be by
certified mail, return receipt requested, and shall set forth, in a manner reasonably calculated to
be understood:

     (a)     the specific reason or reasons for the denial;

     (b)     specific reference to pertinent Plan provisions on which the denial is based;

     (c)     a description of any additional material or information to be submitted by the claimant in
order to perfect his claim, and an explanation of why such material or information is necessary;
and

     (d)     an explanation of the Plan’s claim review procedure and time limits, and a statement of
the claimant’s right to bring a civil lawsuit.

     Upon denial, in whole or in part, of a claim by the Plan Administrator, the claimant, or his
duly authorized representative, as the case may be, may, within the period ending ninety (90) days
from the date of receipt of the denial as aforesaid:

     (e)     request review thereof, by filing a written application with the Trustees or a committee
thereof;

     (f)     upon request, review pertinent documents, records, and other information and obtain copies
free of charge; and

     (g)     submit comments, documents, records, and other information relating to the claim in
writing.

Documents, records, and other information are “pertinent” if they were relied upon in making the
determination on the claim or if they were submitted, considered, or generated in the course of
making the benefit determination.

     The Trustees, or a committee thereof shall constitute the review board, which shall fully
review such request, review all comments, documents, records, and other information submitted by
the claimant relating to the claim, without regard to whether such information was submitted or
considered in the initial benefit determination, hold any hearing deemed appropriate by such review
board, and notify the claimant or his duly authorized representative, as the case may be, of the
decision in writing as soon as practicable, but in no event later than sixty (60) days after
receipt of the written request for review; provided, however, if a hearing is requested or if the
Trustees determine that special circumstances exist, the Trustees shall have up to an additional
sixty (60) days to respond provided they give notice of the extension, the reasons therefor, and
the expected date of response to the claimant prior to the end of the initial 60-day period;
provided further, if the Trustees have regularly scheduled quarterly meetings, their
response date shall be up to five (5) days after the next regularly scheduled meeting which comes
at least thirty (30) days after their receipt of the request for review. In no event, however,
shall the Trustees respond later than five (5) days following the third regularly scheduled meeting
after the receipt of the request for review. Such notice of the decision on appeal shall be
written in a manner reasonably calculated to be understood, shall include the specific reasons for
the decision, and shall set forth specific references to the Plan provisions on which the decision
rests. The use of the claims procedure of this

34

 

Subsection is mandatory in pursuing claims for
benefits. Except as otherwise provided, failure to file a claim by the end of the Plan Year
following the Plan Year in which the individual knew or should have known of the claim shall
constitute an irrevocable waiver of the claim unless it shall be shown not to have been reasonably
possible to furnish proof within the specified time period, and that proof was furnished as soon as
was reasonably possible, in which case failure to furnish proof within the time provided shall not
invalidate nor reduce the claim. Failure to raise issues or present evidence at any stage in the
claims procedure shall preclude those issues or evidence from being presented in a judicial review
of the claim. If any time limitation of the Plan with respect to furnishing proof of loss or
bringing of an action at law or in equity is less than that permitted by ERISA, such limitation is
hereby extended to agree with the minimum period permitted by such law.

     In the event the Plan Administrator or the Trustees extend the time for response due to the
claimant’s failure to provide information necessary to decide the claim, the period for the benefit
determination shall be tolled from the date notice of the extension is sent to the claimant until
the claimant responds to the request for additional information.

     The Plan Administrator may implement reasonable procedures for ensuring that an individual has
been authorized to act on behalf of a claimant.

SECTION VI

WITHDRAWALS AND LOANS

     6.1     General Provisions — Withdrawals and Loans: Hardship withdrawals (“Withdrawals”) will be
available under the terms of the Plan for Members. “Borrowers” to whom loans (“Loans”) will be
available under the terms of the Plan are:

     (1)     Members, Nonseparated Members, and

     (2)     those:

          (a)     Former Members and

          (b)     Surviving Beneficiaries that are 18 years or older

who have an Account under this Fund with which to secure the value of the Loan. However, Loans may
not discriminate in favor of Highly Compensated Employees.

     Applications for Withdrawals and requests for Loans must be submitted to the Plan
Administrator. The Plan Administrator will consider such applications and requests at least once a
month. Members shall pre-qualify for Withdrawals in accordance with the procedures established by
the Plan Administrator. Withdrawals, when the Plan Administrator has pre-qualified the Member, and
Loans will be made effective (unless denied): on the date the Withdrawal application or Loan
request, as the case may be, is actually received provided it is received on a Valuation Date
before the New York Stock Exchange closes for trading; or on the Valuation Date next succeeding the
day on which it is actually received, if it is not
received on a Valuation Date or if it is received on a Valuation Date after the New York Stock
Exchange closes for trading. Members, with respect to Withdrawals may specify an Optional Fund
from which the Withdrawal is to be made. Otherwise, the Withdrawal will be funded pro rata from
the Member’s Optional Fund Accounts. Where by virtue of the summary plan description or otherwise,
the Member is informed or otherwise aware that he or she has a right to allocate Withdrawals to his
or her Optional Fund Accounts and moreover, that the failure to make a valid allocation shall be
treated as a direction to allocate the Withdrawal

35

 

to the Optional Fund Accounts on a pro rata
basis, then the Member’s failure to allocate a Withdrawal properly shall be deemed an exercise of
his or her control and discretion to allocate the Withdrawal to his or her Optional Fund Accounts
on a pro rata basis.

     6.2     Withdrawals for Hardship: A Member may withdraw such amounts as are needed to satisfy
such Member’s immediate and heavy financial need, in accordance with and subject to the following
conditions:

     (a)     A distribution will be deemed to be made on account of an immediate and heavy financial
need if the distribution is on account of:

     (i)     Payment of tuition and related educational fees as specified by the Commissioner of
the Internal Revenue Service for the next 12 months or portion thereof of post-secondary
education for the Member, such Member’s spouse, child or children, or dependents (as defined
in section 152, and, for taxable years beginning on or after January 1, 2005, without regard
to section 152(b)(1), (b)(2) and (d)(1)(B));

     (ii)     Purchase (excluding mortgage payments) of a principal residence of the Member;

     (iii)     Medical and dental expenses described in Section 213(d) of the Code previously
incurred by the Member, such Member’s spouse, or any dependents of the Member, within the
meaning of Section 152 (consistent with the definition of dependent as used in the
application of Sections 105 and 106 of the Code), or necessary for these persons to obtain
medical or dental care described in Section 213(d) of the Code;

     (iv)     The need to prevent the eviction of the Member from such Member’s principal
residence or foreclosure on the mortgage of the Member’s principal residence; or

     (v)     Such other reason as the Commissioner of the Internal Revenue Service shall approve
through communications of general applicability; provided such reason is expressly included
by the Plan Administrator as a certifiable reason for the Hardship Withdrawal.

     (b)     Withdrawals shall be considered only to the extent that the amount requested is not in
excess of the amount required to relieve the hardship, or to the extent that such need may not be
satisfied from other resources that are reasonably available to the Member, including assets of
such Member’s spouse and minor dependents. The amount requested may include amounts necessary to
pay any federal, state, or local income taxes or penalties reasonably anticipated to result from
the Withdrawal. The Member shall certify in his application for a Withdrawal:

     (i)     the amount needed to meet the hardship,

     (ii)     that the hardship is of an immediate and heavy financial nature,

     (iii)     the amount of funds reasonably available to him, his spouse, and minor
dependents, and

     (iv)     that he will in fact use such funds and the Withdrawal to meet the hardship.

     The Member shall also represent, and the Plan Administrator shall be entitled to reasonably
rely upon the Member’s representation, that the need cannot be relieved:

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

36

 

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

     (vii)     by cessation of Salary Deferrals; or

     (viii)     by (A) other distributions under this Plan and distributions under the Shell
Provident Fund and any other plans maintained by the Employing Company or a Controlled Group
Company, or (B) borrowing tax-free (at the time of the loan) from this Plan and any other
plan maintained by the Employing Company or a Controlled Group Company, or (C) borrowing
from commercial sources on reasonable commercial terms. Notwithstanding the foregoing, the
Plan Administrator shall require Members to first obtain all loans and other distributions,
other than hardship distributions, under the Shell Provident Fund, all defined contribution
plans of Affiliates and this Plan unless such loan or distribution would itself increase the
immediate and heavy financial need.

     (c)     A Member may be denied a Withdrawal if he has a Loan outstanding under the Plan and the
Plan Administrator determines such a Withdrawal would impair the security for such Loan, or, would
violate the conditions of Subsection 6.3(a) if it were deemed to be a Loan.

     (d)     Withdrawals will be distributions under the Plan.

     (e)     Except as provided in Subsection 12.9, for a period of 24 calendar months after the Member
receives the Withdrawal, the Member shall not be entitled to make any Salary Deferrals hereunder,
and for a period of 12 calendar months after the Member receives the Withdrawal, the Member shall
not be entitled to make any elective contributions and employee contributions to all other plans
maintained by the Employer, including the Shell Provident Fund, but excluding any health or welfare
benefit plan.

     (f)     The amount of a Member’s Withdrawal shall not exceed the sum of such Member’s Account
balance, if any, as of December 31, 1988, and any Salary Deferrals made thereafter.

     (g)     If a Member’s application for a Withdrawal is denied in whole or in part, the claims
procedure of Subsection 5.7 shall apply.

     (h)     During periods of extreme market conditions or market closures, a Withdrawal direction or
Loan request may not become effective until normal trading resumes in all securities markets.
Similarly whenever the Investment Manager closes the Royal Dutch Shell Stock Fund to redemptions or
whenever, in the judgment of the Investment Manager, liquidity in the Royal Dutch Shell Stock Fund
is insufficient to honor in the aggregate all Loan, Withdrawal, and distribution requests involving
redemptions from the Royal Dutch Shell Stock Fund, then Withdrawal directions or Loan requests to
redeem units of the Royal Dutch Shell Stock Fund and/or Withdrawal directions or Loan requests to
redeem other Optional Funds units which redemptions are dependent in whole or in part upon
redemptions of Royal Dutch Shell Stock Fund units shall not become effective until the Royal Dutch
Shell Stock Fund reopens and/or, in the judgment of the Investment Manager, liquidity in the Royal
Dutch Shell Stock Fund is sufficient to honor in the aggregate all Loans, Withdrawals, and
distributions involving redemptions from the Royal Dutch Shell Stock Fund.

     6.3     Loans: The Plan Administrator shall be authorized to administer the loan program.
Borrowers may apply for Loans under the Plan subject to the following terms and conditions:

     (a)     With respect to each Account hereunder, the total amount of outstanding Loans, including
loans from other qualified plans maintained by the Employing Company or a Controlled Group Company,
shall not exceed the lesser of:

     (i)     Fifty Thousand Dollars ($50,000) reduced by the excess (if any) of (A) the highest
outstanding balance of Loans from the Plan during the one-year period ending on the day
before the

37

 

date on which such Loan was made, over (B) the outstanding balance of Loans from
the Plan on the date on which such Loan was made, or

     (ii)     one-half the value of the Account, determined as of the last Valuation Date
preceding the Borrower’s application for a Loan.

          For any Loan, including loans from other qualified plans maintained by the Employing Company
or a Controlled Group Company, that is deemed distributed as a result of a default that has not
been repaid (such as by a plan loan offset), the unpaid amount of such Loan including accrued
interest will be considered outstanding for purposes of this Subsection 6.3(a) as required under
the applicable Department of Treasury regulations.

     (b)     Loans shall not be made for less than Five Hundred Dollars ($500.00).

     (c)     Loans shall meet the requirements of Section 4975(d)(1) of the Code.

     (d)     Loans shall be adequately secured by the value of the Member’s Account.

     (e)     The rate of interest for Loans shall be set by the Plan Administrator based on an annual
rate equal to the prime index as quoted by Bloomberg L.P., The Wall Street Journal, or any other
widely available, easily accessible source. The Plan Administrator shall be entitled to select a
rate which discourages arbitrage and reflects the fact that payments are made via payroll
deduction. The Plan Administrator shall not be required to charge different rates for different
parts of the country and need not consider the creditworthiness of the Borrower nor the usury laws
of any particular jurisdiction. The Plan Administrator will periodically review the Loan rate and
make adjustments when appropriate. However, the rate set for each Loan shall remain the same
during the term of the Loan, except that the rate of interest may not exceed 6% per year during
periods that the Borrower is on “military service,” within the meaning of, and as required by, the
Servicemembers Civil Relief Act. Principal and interest paid on a Loan shall be credited and
allocated in accordance with the Member’s current Contribution allocation, the Nonseparated
Member’s last Contribution allocation, or the Former Member’s last Contribution allocation.

     (f)     Loans, by their terms, shall be amortized in substantially level monthly or semi-monthly
payments with the final payment or balance due upon the expiration of a fixed term of not more than
five (5) years and of not less than six (6) months; provided, however, the Plan Administrator, to
the extent permitted under applicable law and regulations, may approve a Loan for up to a ten-year
term in the case of a Loan used to acquire any dwelling unit which within a reasonable period of
time is to be used (determined at the time the Loan is made) as the principal residence of the
Borrower based upon a certification made by the Borrower, and consistent with such certification.

     (g)     Loans shall be made pursuant to a loan agreement between the Borrower and the Plan,
utilizing such methods and provisions as the Plan Administrator shall approve. Loan payments will
be made in installments by payroll deductions, in the case of an Active Employee actively at work,
and by direct payment (including payments through the use of the automatic clearing house method of
debiting his account with a financial institution) in the case of any other Borrower, with minimum
payments of Twenty-Five Dollars ($25) per month.

     (h)     Borrowers may not have more than three (3) Loans outstanding at one time under this Plan,
the Shell Provident Fund, and any other qualified plan of the Company or any Affiliated Company
outstanding at one time.

     (i)     The Plan Administrator shall be entitled to deny any Loan where he has reasonable cause to
believe that the Borrower is not making a bona fide Loan as, for example, when the Borrower has no
intention to repay it.

38

 

     (j)     Loans shall meet such other requirements as the Plan Administrator may determine advisable
or necessary to provide adequate security and to comply with all applicable laws and regulations.

     (k)     For Loans made or renewed on or after January 1, 1994, the entire unpaid principal balance
and accrued interest of a Loan shall become due and payable if the Borrower does not agree, or
revokes his agreement, to make Loan payments through the use of the automatic clearing house method
of debiting his account with a financial institution when Loan payments cannot be made by payroll
deduction. Notwithstanding the above, the preceding sentence of this Subsection 6.3(k) shall not
apply to Loans made or renewed after June 1, 1996.

     (l)     The entire unpaid principal balance and accrued interest of a Loan shall become
immediately due and payable upon the death of the Borrower. Notwithstanding the above, the
preceding sentence shall not apply if a beneficiary that is 18 years or older is the sole
beneficiary of the Member, Nonseperated Member or Former Member’s account, and such beneficiary
affirmatively elects to continue to repay the Loan under its original terms, where such election is
received by the Plan no later than the last day that a Borrower would have to cure a failure to pay
an installment payment under Subsection 6.4 below.

     (m)     A Loan may be prepaid by a Borrower at any time without a penalty fee or charge. Such
prepayments shall be applied towards the principal payment amounts due at the end of the term of
the Loan. Such prepayments will not relieve the Borrower from making subsequent installment
payments under the terms of the Loan, except to the extent that the outstanding principal balance
is reduced to less than the amount of an installment payment.

     (n)     Installment payments required under the terms of a Loan may be suspended under this Plan
as permitted under Section 414(u)(4) of the Code for a Member during periods of qualified military
service, provided that such Member is not receiving Compensation or is receiving Compensation that
is less than the amount of the installment payments required under the terms of the Loan.

     (o)     Installment payments required under the terms of a Loan may be suspended not longer than
one year under this Plan as permitted under the applicable Department of Treasury regulations for a
Member that is on a bona fide leave of absence, provided that such Member is not receiving
Compensation or is receiving Compensation that is less than the amount of the installment payments
required under the terms of the Loan. At the end of the suspension period permitted under this
Subsection 6.3(o), the installment payments will resume at an increased amount required to pay the
entire unpaid principal balance of the Loan, including the interest that accrued during the
suspension period, and the interest that will accrue, by the end of the original term of the Loan
extended by the length of the suspension period permitted under this Subsection 6.3(o).
Notwithstanding the preceding sentence, the amount of an installment payment due after the end of
the suspension period under this Subsection 6.3(o) must not be less than the amount required under
the terms of the original Loan ; and the term of the loan may not be extended beyond five
years from the date the loan was issued (unless such loan was used to acquire a principal residence
as permitted under Subsection 6.3(f) above).

     (p)     Notwithstanding the foregoing requirements of this Subsection 6.3 or of Subsection 6.4
following, if plan loans are to be transferred to the Plan and Trust for a participant or
beneficiary in connection with a merger or asset transfer, then the terms and conditions of this
Subsection 6.3 and Subsection 6.4 may be modified by the Plan Administrator to the extent necessary to accommodate the
administration of such loans, provided such loans meet the applicable requirements of ERISA and the
Code.

     (q)     A Loan will be funded on a pro rata basis from a Borrower’s Optional Fund Accounts on the
basis of the source of the amounts in the following order:

     (i)     Salary Deferral Account;

39

 

     (ii)     Catch-Up Contribution Account;

     (iii)     Prior Plan Company Contribution Account;

     (iv)     Company Contribution Account;

     (v)     Prior Plan Rollover Account;

     (vi)     Prior Plan After-Tax Rollover Account; and

     (vii)     Prior Plan Member After-Tax Account.

     Notwithstanding the above, a Borrower may specify an Optional Fund from which the Loan is to
be made, subject to the hierarchy described above. Where by virtue of the summary plan description
or otherwise, the Borrower is informed or otherwise aware that the Borrower has a right to specify
an Optional Fund from which the Loan is to be made subject to the hierarchy described above and
moreover, that failure to specify an Optional Fund shall result in the Loan being funded on a pro
rata basis from the Member’s Optional Fund Accounts, then the Borrower’s failure to specify
properly an Optional Fund from which the Loan is to be made shall be deemed an exercise of the
Borrower’s control and discretion to fund the Loan on a pro rata basis, subject to the hierarchy
described above.

     (r)     Notwithstanding the foregoing requirements of this Subsection 6.3, the installment
obligations for any loan requested on or after January 1, 2004, must be paid by payroll deduction
if, at the time the loan is requested, the Borrower has a previous loan (including any loan from
other qualified plans of the Employing Company or any Controlled Group Company) that resulted in a
deemed distribution that has not been repaid (such as by plan loan offset); moreover, if at a later
time, the installment obligations of such loan cannot be made by payroll deduction (other than
during the periods permitted by Subsections 6.3(n) or 6.3(o)), the amount then outstanding on the
loan will be treated as a deemed distribution under Section 72(p) of the Code.

     6.4     Loan Defaults:

     (a)     If any Loan granted to a Borrower, within the meaning of Subsection 6.3, pursuant to this
Section VI is not repaid in accordance with its terms, and the failure continues for a period of at
least thirty (30) days, the Plan Administrator shall notify the Borrower in writing in a timely
matter that he has thirty (30) days from the date of the notice to cure the failure (the “Cure
Period”), and if the failure is not cured within the Cure Period, the Plan Administrator shall,
without further notice to the Borrower, accelerate the balance due on the Loan and treat the Loan
as in default. If the Borrower is deceased, such notice may be given to the person who would be
entitled to receive distribution of his Account under the terms of the Plan and who has or may
elect to continue to repay the Loan under its original terms as provided in Subsection 6.3(l) above
(hereinafter referred to as “Beneficiary Borrower”). If the failure is not cured within the Cure
Period, and:

     (i)     if one of the distributable events of Section VII has occurred, then the Plan
Administrator shall reduce the Account by the balance due on the Loan and record and report
the transaction as an offset distribution;

     (ii)     if a distributable event under Section VII has not occurred and the Borrower is
eligible for, and consents to, a Withdrawal then the Plan Administrator shall declare the
balance due on any such Loan to be a Withdrawal under the Plan and so record and report the
transaction as an offset distribution; or

     (iii)     if a distributable event under Section VII has not occurred and the Borrower is
not eligible for, or does not consent to, a Withdrawal then the Plan Administrator: (A)
shall record and

40

 

report the unpaid Loan balance and any accrued but unpaid interest as a
taxable deemed distribution; and (B) at the earliest time the Account can be distributed
under Section VII, may reduce the Account by the balance due on the Loan, including any
accrued but unpaid interest.

          In any such event, the Plan will be completely discharged of all liability under the Plan for
the balance of the Account up to the balance (including interest) due on any such Loan.

     (b)     Written notice to the Borrower (or to the Beneficiary Borrower if the Borrower is
deceased) will conclusively be presumed to have been given under the terms of Subsection 6.4(a)
above when mailed (postage prepaid) to the last known address for the Borrower or the Beneficiary
Borrower according to the Plan Administrator’s records. If the Plan Administrator has no address
for the Beneficiary Borrower to be notified if the Borrower is deceased, the written notice may be
mailed to the Beneficiary Borrower at the Borrower’s last known address and, in such event, such
notice will conclusively be presumed to have been properly given to the Beneficiary Borrower.

     (c)     Notwithstanding the above, the Plan Administrator may extend the Cure Period provided that
the following conditions are met:

     (i)     the Cure Period is not extended by more than 30 days;

     (ii)     it is demonstrated that the Borrower made a good faith effort to cure the failure
by the end of the Cure Period; and

     (iii)     the criteria above is applied by the Plan Administrator on a consistent basis for
all Borrowers similarly situated.

          In no event may the Cure Period for the failure to pay an installment payment when due
continue beyond the last day of the calendar quarter following the calendar quarter in which the
required installment payment was due.

     6.5     Status of Member Who Receives Loan: If a Member receives a Loan under this Section, his
status as a Member in the Plan and his rights with respect to his Plan benefits shall not be
affected, except to the extent that the Member has used his Account as security for the Loan,
pursuant to Subsection 6.3.

     6.6.     Notwithstanding the above, at the written request of a Borrower and upon the
demonstration by such Borrower that continuation of Loan payments via payroll deductions would
cause financial hardship, the Plan Administrator may cease all future Loan payments by payroll
deduction and accelerate the entire unpaid principal balance due on the Loan with accrued interest.
In this event, the Borrower will be treated as having defaulted on the Loan as of the day payroll
deductions are terminated; in addition, such Borrower will be restricted from obtaining a new Loan
under this Plan for a period extending at least through the due date of the last installment
payment that would have been payable under the original terms of the Loan which was declared in
default.

SECTION VII

DISTRIBUTIONS OF ACCOUNTS

     7.1     Distributions Upon Termination of Employment: After termination of service as an
Employee, a Member’s Account shall, subject to all applicable provisions of this Plan, be
distributed in accordance with the following terms and conditions:

41

 

     (a)     Except as provided in Subsections 7.1(b), 7.3(a) and (b), and 7.10 below, the Member’s
Account, decreased by the amount necessary to satisfy as of the Member’s termination of employment
the unpaid principal and accrued interest on any Loans made to the Member from the Plan (which
Loans shall be deemed satisfied as a result of such reduction), shall be paid out to him in a lump
sum, if living, or, if the Member is deceased and distribution has not commenced, then the Account,
as adjusted, shall be payable under Subsection 7.4 below. Payment shall be made as soon as
administratively feasible, but not later than the sixtieth (60th) day after the close of the Plan
Year in which occurs the later of the following events: (1) the Member attains age 65; or (2) the
Member terminates service with all Participating Companies. Notwithstanding the preceding
provisions of this Subsection 7.1(a), consistent with the provisions of Treasury Regulation section
1.401(a)-14(a), and subject to the provisions of Subsection 7.6(a), a Member must file a claim for
benefits before payment of benefits will commence.

     (b)     No distribution of any part of a Member’s Account shall be made, without the Member’s
written consent, to a Member prior to age 65. An automatic deferral effected under this provision
shall be a deferral under the Plan.

     (c)     Any deferral under the above provisions and the account during such a deferral shall be
subject to the terms and conditions set forth in 7.3(c), (d), (e), (f), and (g) below.

     (d)     During periods of extreme market conditions or market closures, a distribution direction
may not become effective until normal trading resumes in all securities markets. Similarly
whenever the Investment Manager closes the Royal Dutch Shell Stock Fund to redemptions or whenever,
in the judgment of the Investment Manager, liquidity in the Royal Dutch Shell Stock Fund is
insufficient to honor in the aggregate all Loan, Withdrawal, and distribution requests involving
redemptions from the Royal Dutch Shell Stock Fund, then distribution directions to redeem units of
the Royal Dutch Shell Stock Fund and/or distribution directions to redeem other Optional Funds
units which redemptions are dependent in whole or in part upon redemptions of Royal Dutch Shell
Stock Fund units shall not become effective until the Royal Dutch Shell Stock Fund reopens and/or,
in the judgment of the Investment Manager, liquidity in the Royal Dutch Shell Stock Fund is
sufficient to honor in the aggregate all Loans, Withdrawals, and distributions involving
redemptions from the Royal Dutch Shell Stock Fund.

          Where there has been a termination of the Plan or a termination of participation in the Plan
by a Participating Company pursuant to Subsection 8.4, the Trustees, upon advice of counsel, shall
for purposes of this Section treat the service of such Members as having terminated at the time of
such Plan termination or termination of participation.

          Except as provided in Subsection 12.10, for purposes of this Subsection 7.1, no termination of
service will be treated as such unless it constitutes retirement or other separation from service
within the meaning of section 401(k)(2)(B) of the Code.

     7.2     Distributions Upon Age 591/2 Years: Notwithstanding anything in this Plan to the contrary,
any Member who attains age 591/2 even though he is still employed by a Participating Company may, by
direction to the Plan Administrator, withdraw all or a portion of the amount standing to his
credit. The value of the Account for distribution will be determined as of the next succeeding Valuation Date following receipt of such direction or
on the receipt date of such direction if such direction is received on a Valuation Date prior to
the time the New York Stock Exchange closes for trading. A withdrawal direction for one hundred
percent (100%) of the amount standing to the Member’s credit shall accelerate the payment of any
outstanding Loan the Member may have at the time of such withdrawal direction.

          During periods of extreme market conditions or market closures, a distribution direction may
not become effective until normal trading resumes in all securities markets. Similarly whenever
the Investment Manager closes the Royal Dutch Shell Stock Fund to redemptions or whenever, in the
judgment of the Investment Manager, liquidity in the Royal Dutch Shell Stock Fund is insufficient
to

42

 

honor in the aggregate all Loan, Withdrawal, and distribution requests involving redemptions
from the Royal Dutch Shell Stock Fund, then distribution directions to redeem units of the Royal
Dutch Shell Stock Fund and/or distribution directions to redeem other Optional Funds units which
redemptions are dependent in whole or in part upon redemptions of Royal Dutch Shell Stock Fund
units shall not become effective until the Royal Dutch Shell Stock Fund reopens and/or, in the
judgment of the Investment Manager, liquidity in the Royal Dutch
Shell Stock Fund is sufficient to honor in the aggregate all Loans, Withdrawals, and distributions involving redemptions from the
Royal Dutch Shell Stock Fund.

     7.3     Deferred Distribution: As an optional alternative means of deferring distributions to
that provided under 7.1(b) above, and subject to the minimum distribution requirements of
Subsection 7.6, distributions of all or a portion of an Account may be deferred by a Member
terminating service as an Employee, or, if there is no deferral in effect for the Account, by a
deceased Member’s Qualified Beneficiary, consistent with such administrative procedures as may be
prescribed by the Plan Administrator and in accordance with the following terms and conditions:

     (a)     An election to defer distribution of an Account, subject to the minimum distribution
requirements of Subsection 7.6 of this Section VII, shall be made by notifying the Plan
Administrator at any time prior to the Member’s or Former Member’s attainment of age 65, if made by
a Member or a Former Member or a Qualified Beneficiary who is an Alternate Payee, or, if made by
any other Qualified Beneficiary, within three (3) calendar months after the death of the Member
(provided there is no deferral in effect).

     (b)     If a Member’s termination of service occurs by reason of death and such a Member is
survived by a Qualified Beneficiary, such Qualified Beneficiary shall have the right to defer
distribution to a date which could have been selected by the Member had termination of service
occurred by reason other than the Member’s death.

     (c)     A Former Member or a Qualified Beneficiary shall be entitled to request in writing, a
distribution of all or a part of his deferred Account as of the Valuation Date coincident with or
next following the receipt of such request. Payments shall be made as soon as administratively
feasible following the applicable Valuation Date.

          Subject to the minimum distribution rules of section 401(a)(9) of the Code in the case of a
non-spouse Qualified Beneficiary, on and after July 16, 1996, a Former Member or a Qualified
Beneficiary shall be entitled to request a distribution of all or a part of his deferred Account
balance: (1) in single sum form; or (2) in the form of a series of substantially equal monthly,
quarterly, semi-annual, or annual payments (x) for a term of years, or (y) for the life or life
expectancy of the Former Member or of the Qualified Beneficiary, as the case may be, or, (z) in the
case of a Former Member, for the joint lives of the Former Member and the Former Member’s
designated beneficiary; and any such distribution shall be made or shall commence, as the case may
be, on the day on which it is actually received provided it is received on a Valuation Date before
the New York Stock Exchange closes for trading; or on the Valuation Date next succeeding the day on
which it is actually received, if it is not received on a Valuation Date or if it is received on a
Valuation Date after the New York Stock Exchange closes for trading. In the case of a
distribution in single sum form, a Former Member or Qualified Beneficiary may specify an
Optional Fund from which the distribution from his Account is to be made. Otherwise, the
distribution in single sum form will be funded pro rata from the Member’s Optional Fund Accounts.
In the case of any distribution other than a distribution in single sum form, allocation of the
dollar amount of such a distribution request shall be made on a pro rata basis from all the
Member’s Optional Fund Accounts. A Former Member or Qualified Beneficiary may direct at any time a
total distribution of the deferred Account as of the Valuation Date coincident with or next
following the receipt of such request.

     (d)     Any deferral shall be subject and subordinate to any conflicting terms of a qualified
domestic relations order or valid property settlement agreement, but the fact that a portion of a
Member’s or a

43

 

Former Member’s Account has been partitioned under a qualified domestic relations
order or valid property settlement agreement shall not prevent a Member or a Former Member or a
Qualified Beneficiary from exercising rights of deferral as to the Member’s or Former Member’s
portion of the account.

     (e)     If a Former Member whose Account has been deferred is reemployed by a Participating
Company, such deferral will be canceled, except as to distributions already made, and distribution
of the remainder of the Account will be made under the terms of the Plan as if the Former Member
had not previously terminated service.

     (f)     In the event distribution of the Account of a Former Member or a Qualified Beneficiary has
been deferred under the provisions of the Plan, and the Former Member or Qualified Beneficiary
dies, distribution of the Account will be accelerated and the Account distributed to the person
entitled to the proceeds; provided, in the case of the death of a Former Member leaving a Qualified
Beneficiary, the deferral shall remain effective, but the Qualified Beneficiary will have the same
rights of acceleration which the Former Member had at the time of death.

     (g)     The rights and restrictions under the Plan applicable to a Member shall, during a period
of deferral, be applicable to a Former Member or a Qualified Beneficiary except for rights under
Sections II, III (not including rights to transfer assets between funds under Subsection 3.4 nor
including rights to receive statements under Subsection 3.8, which shall continue during the
deferral period) and VI (except for the right to apply for a Loan). Further, as an exception, a
Qualified Beneficiary shall under no circumstances have the right given a Member under Subsection
7.4 to name or change a beneficiary.

     7.4     Distributions on Death of Member:

     (a)     Subject to the applicable consent provisions of 7.4(b) below, a Member may name an
individual, trust, or Qualified Charitable Organization as a beneficiary, or multiple or
combination of individuals, trusts, and Qualified Charitable Organizations as beneficiaries
(hereinafter referred to as “beneficiary,” whether one or more) to receive all or any part of the
amount standing to the Member’s credit with the Fund in the event the Member dies before such
amount is distributed. Such distribution shall be made in a lump sum as soon as administratively
feasible after the Member’s or Former Member’s death, subject to any valid deferral under the Plan.
Each designation of Beneficiary shall be made in the manner as may be prescribed by the Plan
Administrator and may be done prior to distribution of the Account. No designation or change of
Beneficiary shall be effective until it is accepted by the Plan Administrator or by its duly
authorized agent, but when so approved, it will be effective retroactively to the date of the
designation or request for change of Beneficiary. Each designation so accepted will cancel all
prior designations. If any Member or Former Member fails to designate a Beneficiary in the manner
provided, his Account shall be distributed to his surviving spouse, or, if none, to the estate of
the Member or Former Member.

          A “Qualified Charitable Organization” for these purposes shall mean a charitable organization
in existence at the time of the distribution that is either:

     (1)     an organization described in Section 170(c) of the Code and listed in the IRS
Cumulative List of Organizations described in Section 170(c) of the Internal Revenue Code as
published by the Internal Revenue Service (currently published as Publication 78) at the
time of distribution;

     (2)     an organization which is a church or other church organization which qualifies as a
charitable organization under Section 501(c)(3) of the Code; or

     (3)     an educational organization which either qualifies as a charitable organization
under Section 501(c)(3) of the Code or which otherwise constitutes an educational
organization to which charitable contributions may be deducted under section 170 of the
Code.

44

 

          In order to be recognized as a Qualified Charitable Organization any organization designated
hereunder must present clear and convincing evidence to the Plan Administrator that it meets the
requirements described above. The Plan Administrator may rely on a listing of the designated
organization in the current IRS Cumulative List of Organizations described in Section 170(c) of the
Internal Revenue Code as published by the Internal Revenue Service (currently published as
Publication 78) at the time of distribution in order to treat such organization as a Qualified
Charitable Organization. In the event that an organization described in (2) or (3) is not listed
in such publication and is otherwise unable to produce documentation to the satisfaction of the
Plan Administrator that it is an organization described in Section 170(c) of the Code, or, if the
Plan Administrator cannot locate such organization within a reasonable period of time, such
designation will be of no force and effect and distribution of such interest which was to pass to
the designated organization shall instead be paid in as provided in paragraph 3 below. Such
determination shall be at the Plan Administrator’s discretion and any decision by the Plan
Administrator shall be final and binding.

     (b)     A Member may designate a Beneficiary who is not the Member’s spouse, provided: (i) the
Member’s spouse consents to, and acknowledges the effect of, the designation in a writing which has
been notarized, in which case such designation cannot be changed to another such Beneficiary
without the spouse’s consent, or (ii) the Member establishes to the satisfaction of the Plan
Administrator that the consent may not be obtained because there is no spouse, because the spouse
cannot be located, or because of such other circumstances as are consistent with regulations issued
by the Secretary of the Treasury. Spousal consent shall be irrevocable.

     (c)     No person shall have the discretion to change a Member’s or a Former Member’s designation
of beneficiary after his death; provided, however, any disclaimer by a surviving spouse and/or
Qualified Beneficiary which is valid under applicable Federal and state laws shall be recognized by
the Plan Administrator and shall not be deemed to change a Member’s or Former Member’s designation
of beneficiary after his death.

     7.5     Distribution Made on Valuation Dates: Except as otherwise expressly set forth herein, all
distributions under the Plan shall be made in lump sums and shall be made effective as of the close
of business of a Valuation Date.

     7.6     Required Distribution: Notwithstanding anything in the Plan to the contrary, on and after
January 1, 2003, a Member’s or Former Member’s Account
shall be distributed consistent
with Section XIV of the Plan Instrument.

     7.7     Delay of Distribution: Should, at the time a distribution is scheduled to be made, a
question exist as to the person entitled to any amounts, or, the amount payable cannot be
ascertained, or, the payee cannot be located, the distribution may be delayed not later than sixty
(60) days after the date such question is resolved, such amount is ascertained, or the payee is
located; provided, however that during periods of extreme market conditions, market closures, or
illiquidity, the distribution may be delayed until the later of: (a) the day all securities
markets resume normal trading; or (b) the day sufficient liquidity returns, in the judgment of the Investment Manager. If the Plan
Administrator cannot ascertain the whereabouts of any Member, Former Member or Beneficiary to whom
a payment is due, the Plan Administrator may direct that the payment and all remaining payments
otherwise due to the payee be canceled on the records of the Plan and the amount thereof applied as
a forfeiture in accordance with this Subsection. If the Member, Former Member or Beneficiary later
notifies the Plan Administrator of his whereabouts, a Participating Company shall make a
Contribution to the Plan in an amount equal to the payment due to such payee. Forfeitures shall be
used to reduce administrative expenses of the Plan and not to increase benefits.

     7.8     Qualified Domestic Relations Order Distribution: Notwithstanding any other provisions in
the Plan to the contrary, the Plan shall make distributions to an alternate payee (as defined by
ERISA and the Code) pursuant to any final judgment, decree or order (including judicial approval of
a property settlement agreement) which the Plan Administrator has determined to be a qualified
domestic relations order as defined

45

 

under ERISA and the Code. Such distributions shall be made, if
authorized by the qualified domestic relations order, within a reasonable time after the Plan
Administrator has made the determination that the requirements for a qualified domestic relations
order have been satisfied, notwithstanding the Member’s continuing employment by a Participating
Company. Any accrued benefit of a Member or Former Member may be apportioned between the Member or
Former Member and the alternate payee either through separate accounts or by providing the
alternate payee a severable portion of the Member’s or Former Member’s Account. The rights under
the Plan applicable to an alternate payee with respect to a separate account shall be limited to
the purpose of providing for a separate accounting and shall not include any other rights which may
be applicable to an Account, such as the right to transfer assets between optional funds or to
deferrals pursuant to Subsection 7.3.

     7.9     Distributions on Plan Termination or Corporate Sale: Subject to all applicable provisions
of this Plan, a Member’s Account shall be distributed upon any of the following events:

     (a)     termination of the Plan without establishment of a successor plan;

     (b)     the date of the sale by a Participating Company of substantially all of the assets used by
such Participating Company in its trade or business with respect to a Member who continues
employment with the corporation acquiring such assets; and

     (c)     the date of the sale by a corporation of such corporation’s interest in a Participating
Company which is a subsidiary with respect to a Member who continues employment with such
subsidiary.

     7.10     Direct Rollovers: This Subsection 7.10 applies to distributions and withdrawals
(including those certain distributions that result from the operation of Section VI) made on or
after January 1, 1993, but before January 1, 2002. This Subsection 7.10 as modified by Subsection
12.5 applies to distributions and withdrawals (including those certain distributions that result
from the operation of Section VI) made on or after January 1, 2002.

     (a)     Notwithstanding any provision of the Plan to the contrary that would otherwise limit a
Distributee’s election under this Subsection, a Distributee may elect, at the time and in the
manner prescribed by the Plan Administrator, to have any portion of an Eligible Rollover
Distribution paid directly to an Eligible Retirement Plan specified by the Distributee in a Direct
Rollover.

     (b)     Definitions.

     (i)     “Eligible Rollover Distribution” shall mean any distribution or withdrawal of all
or any portion of the balance to the credit of the Distributee, except that an Eligible
Rollover Distribution does not include: any distribution or withdrawal that is one of a
series of substantially
equal periodic payments (not less frequently than annually) either made for the life
(or life expectancy) of the Distributee or the joint lives (or joint life expectancies) of
the Distributee and the Distributee’s designated beneficiary, or for a specified period of
ten years or more; any distribution or withdrawal to the extent such distribution or
withdrawal is required under section 401(a)(9) of the Code; and the portion of any
distribution or withdrawal that is not includable in gross income for federal income tax
purposes (determined without regard to the exclusion for net unrealized appreciation with
respect to employer securities).

     (ii)     “Eligible Retirement Plan” shall mean an individual retirement account described
in section 408(a) of the Code, an individual retirement annuity described in section 408(b)
of the Code, an annuity plan described in section 403(a) of the Code, or a qualified trust
described in section 401(a) of the Code, that accepts the Distributee’s Eligible Rollover
Distribution. However, in the case of an Eligible Rollover Distribution to the surviving
spouse, an Eligible Retirement Plan is limited to an individual retirement account or
individual retirement annuity.

46

 

     (iii)     “Distributee” shall include a Member or Former Member. In addition, the Member’s
or Former Member’s surviving spouse and the Member’s or Former Member’s 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.

     (iv)     “Direct Rollover” shall mean a payment by the Plan to the Eligible Retirement Plan
specified by the Distributee.

     7.11     Distributions from Prior Plan Accounts:

     (a)     Distributions from Prior Plan Company Contribution Account: Any Member who has amounts
credited to the Prior Plan Company Contribution Account may, by direction to the Plan
Administrator, withdraw once in every twelve-month period all or a portion of the amount standing
to his or her credit in his or her Prior Plan Company Contribution Account. Except as may be
permitted by Subsection 7.2, this Subsection 7.11(a) shall not apply to a Member until the Member
has at least five years of participation in the Plan. For purposes of this Subsection 7.11(a),
“participation in the Plan” shall include, in addition to participation in this Plan, participation
in the Alliance Savings Plan, the Star Enterprise Thrift Plan, the Star Enterprise Savings Plan,
and any other plan from which a Member’s account was transferred in a direct trust-to-trust
transfer to the Alliance Savings Plan. For purposes of this Subsection 7.11(a), “participation in
the Plan” shall also include, in addition to participation in this Plan, participation in the
Pennzoil-Quaker State Company Savings and Investment Plan and the Pennzoil-Quaker State Company
Savings and Investment Plan for Hourly Employees.

     (b)     Distributions from Prior Plan Member After-Tax Account, Prior Plan Rollover Account, and
Prior Plan After-Tax Rollover Account: Any Member may, by direction to the Plan Administrator,
withdraw all or a portion of the amount standing to his or her credit in his or her Prior Plan
Member After-Tax Account, Prior Plan Rollover Account, and Prior Plan After-Tax Rollover Account.

     (c)     Other Terms and Conditions: The Member may specify the Optional Fund from which
distributions under this Subsection 7.11 are to be made. Otherwise the failure to make a valid
allocation shall be treated as a direction by the Member to allocate the distribution pro rata from
the Member’s Optional Fund Accounts. During periods of extreme market conditions or market
closures, a distribution direction may not become effective until normal trading resumes in all
securities markets. Similarly whenever the Investment Manager closes the Royal Dutch Shell Stock
Fund to redemptions or whenever, in the judgment of the Investment Manager, liquidity in the Royal
Dutch Shell Stock Fund is insufficient to honor distribution requests involving redemptions from
the Royal Dutch Shell Stock Fund, then distribution directions to redeem units of the Royal Dutch
Shell Stock Fund and/or distribution directions to redeem other Optional Funds units which redemptions are dependent in whole or in part upon redemptions of Royal Dutch
Shell Stock Fund units shall not become effective until the Royal Dutch Shell Stock Fund reopens
and/or, in the judgment of the Investment Manager, liquidity in the Royal Dutch Shell Stock Fund is
sufficient to honor distributions involving redemptions from the Royal Dutch Shell Stock Fund.

SECTION VIII

AMENDMENT, MERGER, TERMINATION OF PLAN,

ADDITION OF PARTICIPATING COMPANIES

     8.1     Right to Amend: Shell Oil Company shall have the right to amend this Plan in whole or in
part at any time and from time to time. Any amendment may be substantial and may be retroactive in
effect. In making amendments to, the Trust Agreement and the Plan Instrument, Shell Oil Company
shall act through its Board of Directors or such person or persons as have been directly or
indirectly delegated the authority of the Board to so act on behalf of Shell Oil Company.

47

 

     8.2     Conditions of Amendment: It is expressly understood, however, that no amendment shall be
made (unless required by law) which would

     (a)     Deprive any Beneficiary of a then deceased Member of the right to receive the benefits to
which the Beneficiary may be entitled hereunder, or

     (b)     Decrease or otherwise deprive any Member of the benefits to which he is entitled
hereunder.

     (c)     No amendment, except as permitted by Treasury Regulations shall eliminate an optional form
of benefit, if any, with respect to benefits attributable to service before any such amendment.

     8.3     Merger of Plan: Any merger or consolidation with, or transfer of assets or liabilities to
another plan shall not be permitted unless each Member’s interest in this Plan immediately after
such merger, consolidation, or transfer (if the Plan then terminated) is equal to or greater than
his interest in this Plan immediately prior to the merger, consolidation, or transfer (if the Plan
had then terminated).

     8.4     Termination of Plan: Shell Oil Company intends to continue the Plan indefinitely but
reserves the right to terminate it at any time. However the participation of any of the
Participating Companies (including the obligation to make further Salary Deferral Contributions to
the Trust for the account of its employees who are Members, with respect to periods subsequent to
the cessation of its participation) shall terminate whenever (1) such Participating Company is
dissolved or liquidated or ceases for any reason to be an Affiliated Company of Shell Oil Company
or (2) upon not less than sixty (60) days prior written notice to the Trustees, unless waived by
the Trustees in writing, it withdraws from the Plan, or (3) upon not less than sixty (60) days
prior written notice to it and to the Trustees, unless waived by it and the Trustees in writing,
its participation is terminated by Shell Oil Company. For purposes of the preceding sentence,
“Affiliated Company” shall be as defined in Subsection 1.7 of the Plan Instrument, except that the
phrase “at least 80 percent” shall be substituted for the phrase “more than 50 percent.” Where
termination of participation of a Participating Company has occurred pursuant to this subsection,
written notice of such termination shall be sent to all employees of such Participating Company who
are Members of the Plan.

          In the event of a termination of participation in the Plan by any one or more of the
Participating Companies, the right of Members who are in its or their employ to specify any Salary
Deferral relative to such Participating Company’s contribution to the Trust on his behalf with respect to
periods subsequent to the cessation of the Contributing Company’s or Companies’ participation shall
cease.

     8.5     Addition of Participating Companies: Additional companies may become Participating
Companies in the Plan upon adoption of the Plan by such company with the consent of Shell Oil
Company that any such company be permitted to join the Plan as of a specified date.

SECTION IX

TOP-HEAVY REQUIREMENTS

     9.1     Determination of Top-Heavy: The requirements of this section, as modified by Subsection
12.11, shall become operative during any Plan Year the Plan should become top-heavy.

          The Plan will be considered a top-heavy plan for the Plan Year if as of the last day of the
preceding Plan Year (or with respect to the last day of the initial Plan Year, the last day of such
year) (1) the aggregate of Accounts of Members who are Key Employees (as defined in Section 416(i)
of the Code) exceeds 60% of the aggregate of Accounts of all Members (the “60% Test”) or (2) the
Plan is part of a required aggregation group (within the meaning of Section 416(g) of the Code) and
the required aggregation

48

 

group is top-heavy. For purposes of making the “60% Test,” Members who
have not been employed by a Participating Company at any time during the last five years shall be
excluded. However, and notwithstanding the results of the 60% Test, the Plan shall not be
considered a top-heavy plan for any Plan Year in which the Plan is a part of a permissive
aggregation group (within the meaning of Section 416(g) of the Code) which is not top-heavy.

     9.2     Compensation Limitation: Compensation of any Member in excess of the Annual Compensation
Limit, consistent with the provisions of Subsection 1.18 of this Plan, shall not be taken into
account.

     9.3     Distributions to Certain Key Employees: If a Member is a five percent (5%) owner (defined
in Section 416(i) of the Code as a “Key Employee”) with respect to the Plan Year in which he
attains age 701/2, distribution of his Account shall commence not later than the first of April in
the Plan Year following the Plan Year in which he attains age 701/2, whether or not his employment
has terminated in such year.

     9.4     Minimum Contribution: In the event that Contributions paid to the Trust during the Plan
Year on behalf of a Member who is not a Key Employee are less than three percent (3%) of such
Member’s Compensation, as defined in Subsection 4.2, the Employing Company shall contribute an
amount equal to the difference between three percent (3%) of such Member’s Compensation and the
Contributions which have been paid to the Trust on behalf of such Member for the Plan Year.

     9.5     Impact on Maximum Contributions: For any Plan Year in which the Plan is a top-heavy plan,
Subsection 4.2 shall be read so as to give effect to Section 416(h) of the Code.

SECTION X

MISCELLANEOUS

     10.1     Nonguarantee of Employment: The adoption and maintenance of the Plan shall not be deemed
to constitute a contract between the Employer and any Employee or to be a consideration for, or an
inducement or condition of the employment of any Employee. Nothing herein contained shall be
deemed to give any Employee the right to be retained in the service of the Employer or to interfere
with the rights of the Employer to discharge any Employee at any time.

     10.2     Choice of Law: Except as governed by ERISA, the Plan shall be construed and administered
according to the laws of the State of Texas and all Members, by participating in the Plan, shall be
deemed to have consented to this provision and all of the other terms and provisions of the Plan.

     10.3     Legal Disability: Whenever a Member (or Beneficiary) entitled to receive any payment
hereunder is under a legal disability or is legally incapacitated so as to be unable to manage his
financial affairs, the Plan Administrator may direct that payments be held or made to such person
or to his legal representative or to a relative of such person for the benefit of the Member (or
Beneficiary), or the Plan Administrator may direct that the payment be applied for the benefit of
such Member (or Beneficiary) in such manner as the Plan Administrator, in the exercise of his
fiduciary duty under ERISA, considers prudent. Any payment in accordance with these provisions
shall be a complete discharge of any liability for the making of such payment under the provisions
of the Plan.

     10.4     Methods of Communications: The Plan Administrator, or his designated agent, shall
prescribe the appropriate methods of communication as he may deem expedient in the administration
of the Plan. No application, designation of Beneficiary, notice, direction, request or other
communication by the Member, Former Member or Beneficiary provided for under the terms of the Plan
shall be valid unless

49

 

performed in the prescribed manner. Except for such communications
specifically directed to be sent to other persons or entities under the Plan, no communications
concerning the Plan shall be effective for any purpose unless provided in the manner prescribed by
the Plan Administrator and received by the Plan Administrator or his designated agent at the time
and place he may designate. Employees seeking to become Members and Members, Former Members or
their Beneficiaries seeking benefits under the Plan shall furnish the Plan Administrator whatever
information may reasonably be required to determine eligibility for participation or benefits.

     10.5     Indemnification of Fiduciaries: The Participating Companies shall indemnify each
individual fiduciary under the Plan (whether a “Named Fiduciary” or a fiduciary under ERISA) who is
or was an Employee (except for Members, Former Members, and Qualified Beneficiaries to the extent
they direct investments in their own accounts) to the fullest extent permitted under applicable
laws and under the by-laws of the employing Participating Company, against all or any portion of
any liability, and/or costs and expenses reasonably incurred by such a fiduciary in connection
with, arising out of, or resulting from, any claim, suit or proceeding in which he may be involved
by reason of having been a fiduciary (other than Members, Former Members, and Qualified
Beneficiaries who were fiduciaries by virtue of directing investments in their own accounts), while
an Employee of the Employing Company or of an Affiliated Company; provided, however, the Employing
Company shall not be obligated to indemnify such a fiduciary against any such liability, costs or
expenses in connection with any action or omission to act in respect of which such a fiduciary
shall be finally adjudged in any such action, suit or proceeding to have been guilty of fraud or
willful misconduct in the performance of his duties.

     10.6     Legal Effect of Invalidity of any Provisions: If any provision of this instrument shall
be held invalid or unenforceable, such invalidity or unenforceability shall not affect any other
provisions hereof and this instrument shall be construed and enforced as if such provision had not
been included.

     10.7     Spendthrift Provisions: No portion of any Member’s or Former Member’s Account under the
Plan shall be subject in any manner to anticipation, alienation, sale, transfer, assignment,
pledge, encumbrance or charge, and any attempt so to anticipate, alienate, sell, transfer, assign,
pledge, encumber or charge the same shall be void; nor shall any such benefit be in any manner
liable for or subject to the debts, contracts, liabilities, engagements, or torts of any Member,
Former Member or Beneficiary, provided, however, this provision shall not apply to the use of an
Account as security for a Loan under the terms of the Plan, nor, shall it apply to a qualified
domestic relations order as defined in ERISA and the Code which may direct payment or distribution
of any part of the Member’s or Former Member’s Account to an alternate payee or payees (as defined
in ERISA and the Code).

     10.8     Member’s Interest Non-Forfeitable: A Member shall have, at all times, a non-forfeitable
interest in his Account under the Plan. This provision, however, shall not affect the use of an
Account as security for a Loan under the terms of the Plan.

     10.9     Gender: Terms of gender appearing in the Plan as masculine shall be deemed to include
the feminine gender, and the singular may include the plural, unless the context clearly indicates
to the contrary.

     10.10     Operation of Plan Non-Discriminatory: The Plan Administrator, the Trustees and any
other fiduciary shall, in performing their duties under the Plan, act in a uniform manner in
accordance with the provisions of Section 401(a) of the Code, so as not to produce prohibited
discrimination in favor of Highly Compensated Employees.

     10.11     Effective Date of Plan: Except as otherwise provided, the provisions of this restated
Plan shall be effective as of August 1, 2005.

50

 

SECTION XI

MILITARY SERVICE

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

SECTION XII

EGTRRA AMENDMENTS

     12.1     Adoption and Effective Date of Section XII:

     (a)     This Section XII of the Plan Instrument is adopted to reflect certain provisions of the
Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA). The provisions of Section XII
are intended as good faith compliance with the requirements of EGTTRA and are to be construed in
accordance with EGTRRA and guidance issued thereunder. Except as otherwise provided, the
provisions of Section XII shall be effective as of the first day of the first plan year beginning
after December 31, 2001.

     (b)     The provisions of this Section XII of the Plan Instrument shall supercede the other
provisions of the Plan to the extent that those provisions are inconsistent with the provisions
contained in this Section XII.

     12.2     Plan Loans for Owner-Employees and Shareholder Employees: Effective for Plan Loans made
after December 31, 2001, plan provisions and operations prohibiting Loans to any owner-employee or
shareholder-employee shall cease to apply.

     12.3     Limitations on Contributions.

     (a)     This Subsection 12.3 shall be effective for limitation years beginning after December 31,
2001.

     (b)     Except to the extent permitted under Subsection 12.8 and Section 414(v) of the Code, if
applicable, the Annual Additions that may be contributed or allocated to a Member’s account under
the Plan for any Plan year shall not exceed the lesser of:

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

     (ii)     100 percent of the Member’s compensation, within the meaning of Section 415(c)(3)
of the Code, for the calendar year.

     12.4     Increase in the Annual Compensation Limit: The annual compensation of each Member taken
into account in determining allocations for any Plan Year beginning after December 31, 2001, shall
not exceed $200,000, as adjusted for cost-of-living increases in accordance with Section
401(a)(17)(B) of the Code. Annual compensation means compensation during the Plan Year or such
other consecutive 12-month period over which compensation is otherwise determined under the Plan
(the determination period). The cost-of-living adjustment in effect for a calendar year applies to
annual compensation for the determination period that begins with or within such calendar year.

     12.5     Direct Rollovers of Plan Distributions:

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     (a)     This Subsection 12.5 shall apply to distributions made after December 31, 2001.

     (b)     For purposes of the direct rollover provisions in Subsection 7.10 of the Plan, an Eligible
Retirement Plan shall also mean an annuity contract described in Section 403(b) of the Code and an
eligible plan under Section 457(b) of the Code which is maintained by a state, political
subdivision of a state, or any agency or instrumentality of a state or political subdivision of a
state and which agrees to separately account for amounts transferred into such plan from this plan.
The definition of Eligible Retirement Plan shall also apply in the case of a distribution to a
surviving spouse, or to a spouse or former spouse who is the Alternate Payee under a qualified
domestic relation order, as defined in Section 414(p) of the Code.

     (c)     For purposes of the direct rollover provisions in Subsection 7.10 of the Plan, any amount
that is distributed on account of hardship shall not be an Eligible Rollover Distribution and the
distributee may not elect to have any portion of such a distribution paid directly to an Eligible
Retirement Plan.

     (d)     For purposes of the direct rollover provisions in Subsection 7.10 of the Plan, a portion
of a distribution shall not fail to be an Eligible Rollover Distribution merely because the portion
consists of after-tax employee contributions which are not includible in gross income. However,
such portion may be transferred only to an individual retirement account or annuity described in
Section 408(a) or (b) of the Code, or to a qualified defined contribution plan described in Section
401(a) or 403(a) of the Code that agrees to separately account for amounts so transferred,
including separately accounting for the portion of such distribution which is includible in gross
income and the portion of such distribution which is not so includible.

     12.6     Repeal of Multiple Use Test: The multiple use test described in Treasury Regulation
section 1.401(m)-2 and Subsection 3.5 of the Plan shall not apply for Plan Years beginning after
December 31, 2001.

     12.7     Salary Deferrals — Contribution Limitation: No Member shall be permitted to have Salary
Deferrals made under this Plan, or any other qualified plan maintained by the employer during any
taxable year, in excess of the dollar limitation contained in Section 402(g) of the Code in effect
for such taxable year, except to the extent permitted under Subsection 12.8 of this Plan and
Section 414(v) of the Code, if applicable.

     12.8     Catch-Up Contributions: All employees who are eligible to make Salary Deferrals under
this Plan and who have attained age 50 before the close of the Plan Year shall be eligible to make
catch-up contributions in accordance with, and subject to the limitations of, Section 414(v) of the
Code. Such catch-up contributions shall not be taken into account for purposes of the provisions
of the Plan implementing the required limitations of Sections 402(g) and 415 of the Code. The Plan
shall not be treated as failing to satisfy the provisions of the Plan implementing the 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.

     12.9     Suspension Period Following Hardship Distribution: A Member who receives a distribution
of Salary Deferrals after December 31, 2001, as a Withdrawal on account of hardship shall be
prohibited from making elective deferrals and employee contributions under this and all other plans
of the employer for 6 months after receipt of the distribution. A Member who receives a
distribution of Salary Deferrals in calendar year 2000 or 2001 as a Withdrawal on account of
hardship shall be prohibited from making elective deferrals and employee contributions under this
and all other plans of the employer for the later of: (a) 6 months after receipt of the
distribution, or (b) the earlier of April 1, 2002, or such other date as is administratively
feasible.

52

 

     12.10     Distribution Upon Severance From Employment: For Plan Years beginning on or after
January 1, 2002, a Member’s Salary Deferrals, and earnings attributable to these contributions,
shall be distributable on account of the Member’s severance from employment occurring after
December 31, 2001. Effective as of July 1, 2002, a Member’s Salary Deferrals, and earnings
attributable to these contributions, shall be distributable on account of the Member’s severance
from employment regardless of when the severance from employment occurred. However, any
distribution under this Subsection 12.10 shall be subject to all other provisions of the Plan
regarding distributions, including but not limited to Subsection 7.3(e) of the Plan, other than
provisions that require separation from service before such amounts may be distributed. No
severance from employment shall be treated as such unless it constitutes retirement or other
severance from employment within the meaning of Section 401(k)(2)(B) of the Code.

     12.11     Modification of Top-Heavy Rules:

     (a)     This Subsection 12.11 shall apply for purposes of determining whether the plan is a
top-heavy plan under Section 416(g) of the Code for Plan Years beginning after December 31, 2001,
and whether the Plan satisfies the minimum benefits requirements of Section 416(c) of the Code for
such years. This Subsection 12.11 amends Section IX of the Plan.

     (b)     Key employee means any employee or former employee (including any deceased employee) who
at any time during the Plan Year that includes the determination date was an officer of the
Employer having annual compensation greater than $130,000 (as adjusted under Section 416(i)(1) of
the Code for Plan Years beginning after December 31, 2002), a 5-percent owner of the Employer, or a
1-percent owner of the Employer having annual compensation of more than $150,000. For this
purpose, annual compensation means compensation within the meaning of Section 415(c)(3) of the
Code. The determination of who is a key employee will be made in accordance with Section 416(i)(1)
of the Code and the applicable regulations and other guidance of general applicability issued
thereunder.

     (c)     This Subsection 12.11(c) shall apply for purposes of determining the present values of
accrued benefits and the amounts of account balances of employees as of the determination date.

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

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

SECTION XIII

ASSETS TRANSFERRED FROM THE SIEMENS SAVINGS PLAN

     13.1     For purposes of this Section XIII, the following terms shall have the meanings given below:

53

 

     (a)     “Former Siemens Solar Employee” shall mean any participant in the Siemens Savings Plan as
of January 1, 2002, who was:

     (i)     an active employee of Siemens Solar Industries L.P. (“SSI”) as of December 31,
2001,

     (ii)     an employee of SSI as of the Closing Date of the Siemens Solar Transaction,
including an employee on an employer authorized leave of absence or receiving short-term or
long-term disability benefits, or

     (iii)     a retired or vested terminated employee of SSI as of the Closing Date, and

with respect to whom assets were transferred from the Siemens Savings Plan to this Plan.

     (b)     “Siemens Savings Plan” shall mean the Siemens Savings Plan as sponsored by the Siemens
Corporation as of the Closing Date.

     (c)     “Siemens Solar Transaction” shall mean that transaction described in that Framework
Agreement dated February 20, 2001, by and between Siemens Aktiengesellschaft, Shell Erneuerbare
Energien GmbH, and E.ON Energie Ag.

     (d)     “Closing Date” shall mean April 3, 2001.

     13.2     In connection with the transfer of assets from the Siemens Savings Plan pursuant to the
Siemens Solar Transaction, amounts attributable to salary reduction contributions made under such
plan shall be credited to the respective accounts established hereunder for the benefit of Former
Siemens Solar Employees. Such Former Siemens Solar Employees or their beneficiaries thereunder
shall be fully vested in all amounts credited to their accounts in connection with such transfer.
The Plan Administrator may establish such special transitional rules as he deems appropriate in
connection with such transfer of assets.

     13.3     Each Former Siemens Solar Employee shall be credited as of January 1, 2002, with Participation
Service and Accredited Service equal to the amount of service credited to such Former Siemens Solar
Employee for vesting purposes under the terms of the Siemens Savings Plan as of December 31, 2001.

SECTION XIV

MINIMUM DISTRIBUTION REQUIREMENTS

     14.1     General Rules:

     (a)     Effective Date: The provisions of this Section XIV will apply for purposes of making
required minimum distributions on and after January 1, 2003.

     (b)     Precedence: The requirements of this Section XIV will take precedence over any
inconsistent provisions of the Plan.

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

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

54

 

     14.2     Time and Manner of Distribution:

     (a)     Required Beginning Date: A Member’s entire interest will be distributed, or begin to be
distributed, to such Member no later than the Member’s Required Beginning Date.

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

     (i)     If the Member’s surviving spouse is the Member’s sole Designated Beneficiary, then,
except as provided in Subsection 14.6, distributions to the surviving spouse will begin by
December 31 of the calendar year immediately following the calendar year in which the Member
died, or by December 31 of the calendar year in which the Member would have attained age 70
1/2, if later.

     (ii)    If the Member’s surviving spouse is not the Member’s sole Designated Beneficiary,
then, except as provided in Subsection 14.6, distributions to the Designated Beneficiary
will begin by December 31 of the calendar year immediately following the calendar year in
which the Member died.

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

     (iv)   If the Member’s surviving spouse is the Member’s sole Designated Beneficiary and
the surviving spouse dies after the Member but before distributions to the surviving spouse
begin, Subsection 14.2(b), other than Subsection 14.2(b)(i), will apply as if the surviving
spouse were the Member.

          For purposes of this Subsection 14.2(b) and Subsection 14.4, unless Subsection 14.2(b)(iv)
applies, distributions are considered to begin on the Member’s Required Beginning Date. If
Subsection 14.2(b)(iv) applies, distributions are considered to begin on the date distributions are
required to begin to the surviving spouse under Subsection 14.2(b)(i). If distributions under an
annuity purchased from an insurance company irrevocably commence to the Member before the Member’s
Required Beginning Date (or to the Member’s surviving spouse before the date distributions are
required to begin to the surviving spouse under Subsection 14.2(b)(i)), the date distributions are
considered to begin is the date distributions actually commence.

     (c)     Forms of Distribution: Unless the Member’s interest is distributed in the form of an
annuity purchased from an insurance company or in a single sum on or before the Required Beginning
Date, as of the first Distribution Calendar Year, distributions will be made in accordance with
Subsections 14.3 and 14.4. If the Member’s interest is distributed in the form of an annuity
purchased from an insurance company, distributions thereunder will be made in accordance with the
requirements of Section 401(a)(9) of the Code and the Treasury Regulations.

     14.3     Required Minimum Distributions During Member’s Lifetime:

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

     (i)     the quotient obtained by dividing the Member’s Account Balance by the distribution
period in the Uniform Lifetime Table set forth in Section 1.401(a)(9)-9 of

55

 

the Treasury
Regulations, using the Member’s age as of the Member’s birthday in the Distribution Calendar
Year; or

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

     (b)     Lifetime Required Minimum Distributions Continue Through Year of Member’s Death: Required
minimum distributions will be determined under this Subsection 14.3 beginning with the first
Distribution Calendar Year and up to and including the Distribution Calendar Year that includes the
Member’s date of death.

     14.4     Required Minimum Distributions After Member’s Death:

     (a)     Death On or After Date Distributions Begin:

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

	 	(A)	 	The Member’s remaining Life Expectancy is
calculated using the age of the Member in the year of death, reduced by
one for each subsequent year.
	 
	 	(B)	 	If the Member’s surviving spouse is the
Member’s sole Designated Beneficiary, the remaining Life Expectancy of
the surviving spouse is calculated for each Distribution Calendar Year
after the year of the Member’s death using the surviving spouse’s age
as of the spouse’s birthday in that year. For Distribution Calendar
Years after the year of the surviving spouse’s death, the remaining
Life Expectancy of the surviving spouse is calculated using the age of
the surviving spouse as of the spouse’s birthday in the calendar year
of the spouse’s death, reduced by one for each subsequent calendar
year.
	 
	 	(C)	 	If the Member’s surviving spouse is not the
Member’s sole Designated Beneficiary, the Designated Beneficiary’s
remaining Life Expectancy is calculated using the age of the
beneficiary in the year following the year of the Member’s death,
reduced by one for each subsequent year.

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

     (b)     Death Before Date Distributions Begin:

56

 

     (i)     Member Survived by Designated Beneficiary: If the Member dies before the date
distributions begin and there is a Designated Beneficiary, the minimum amount that will be
distributed for each Distribution Calendar Year after the year of the Member’s death is the
quotient obtained by dividing the Member’s Account Balance by the remaining Life Expectancy
of the Member’s Designated Beneficiary, determined as provided in Subsection 14.4(a).

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

     (iii)     Death of Surviving Spouse Before Distributions to Surviving Spouse Are Required
to Begin: If the Member dies before the date distributions begin, the Member’s surviving
spouse is the Member’s sole Designated Beneficiary, and the surviving spouse dies before
distributions are required to begin to the surviving spouse under Subsection 14.2(b)(1),
this Subsection 14.4(b) will apply as if the surviving spouse were the Member.

     14.5     Definitions:

     (a)     Designated Beneficiary: The individual who is designated as a Qualified Beneficiary under
Subsection 7.4 and is the designated beneficiary under Section 401(a)(9) of the Code and Section
1.401(a)(9)-1, Q&A-4, of the Treasury Regulations.

     (b)     Distribution Calendar Year: A calendar year for which a minimum distribution is required.
For distributions beginning before the Member’s death, the first Distribution Calendar Year is the
calendar year immediately preceding the calendar year which contains the Member’s Required
Beginning Date. For distributions beginning after the Member’s death, the first Distribution
Calendar Year is the calendar year in which distributions are required to begin under Subsection
14.2(b). The required minimum distribution for the Member’s first Distribution Calendar Year will
be made on or before the Member’s Required Beginning Date. The required minimum distribution for
other Distribution Calendar Years, including the required minimum distribution for the Distribution
Calendar Year in which the Member’s Required Beginning Date occurs, will be made on or before
December 31 of that Distribution Calendar Year.

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

     (d)     Member: For purposes of this Section XIV of the Plan Instrument, “Member” shall include a
Former Member as defined in Subsection 1.40.

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

     (f)     Required Beginning Date: For any Member, the Required Beginning Date is April 1 of the
calendar year following the later of (i) the calendar year in which the Member attains age 70-1/2,
or (ii) the calendar year in which the Member retires provided that the Member is not a 5 percent
owner with respect to the Plan Year ending in the calendar year in which the Member attains age
70-1/2.

57

 

     14.6     Election to Allow Designated Beneficiaries to Elect 5-Year Rule: Designated
Beneficiaries may elect on an individual basis whether the 5-year rule or the life expectancy rule
in Subsections 14.2(b) and 14.4(b) applies to distributions after the death of a Member who has a
Designated Beneficiary. The election must be made no later than September 30 of the calendar year
in which distribution would be required to begin under Subsection 14.2(b). If the Designated
Beneficiary does not make an election under this Subsection 14.6, distributions will be made in
accordance with Subsections 14.2(b) and 14.4(b).

     14.7     Election to Allow Designated Beneficiary Receiving Distributions Under the 5-Year Rule to
Elect Life Expectancy Distributions: A Designated Beneficiary may make a new election to receive
payments under the life expectancy rule until November 1, 2003, provided that all amounts that
would have been required to be distributed under the life expectancy rule for all Distribution
Calendar Years before 2004 are distributed by December 31, 2003.

SECTION XV

MERGER OF CRI GROUP SAVINGS PLAN

     15.1     For purposes of this Section XV, the following terms shall have the meanings given below:

     (a)     “CRI Savings Account” shall mean, for a given CRI Savings Participant, the amount, if any,
accrued as of December 31, 2002, in his pre-tax account in the CRI Group Savings Plan.

     (b)     “CRI Savings Participant” shall mean a person participating as of December 31, 2002, in
the CRI Group Savings Plan.

     15.2     A CRI Savings Participant shall have his CRI Savings Accounts transferred to the Plan as
of January 1, 2003, by virtue of the merger of the accounts of all CRI Savings Participants into
the Plan as of January 1, 2003.

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SECTION XVI

TRANSFERRED ASSETS

     16.1     Right to Transfer Assets to this Plan: In the event of a transfer of assets from, or a
merger or consolidation of, another plan that is qualified under section 401(a) of the Code based
on the opinion of tax counsel (“Qualified Plan”) into this Plan, the Trustees may direct the Plan
Administrator to accept the Transferred Assets on behalf of a Member. For purposes of this Plan,
“Transferred Assets” shall mean those assets which are transferred from a Qualified Plan directly
to the Plan by the trustee(s) of the Qualified Plan on behalf of the Member, provided that the
Qualified Plan from which the assets are transferred provides benefits protected under Section
411(d)(6) of the Code which are also protected by this Plan, or the transfer satisfies one of the
exceptions set forth in the Treasury Regulations under Section 411(d)(6) of the Code.

     16.2     Transferred Asset Accounts: Except as otherwise provided in this Plan, assets transferred
from a Qualified Plan to this Plan shall be accounted for as follows: salary deferrals (i.e.
pre-tax elective contributions) and qualified non-elective contributions (and earnings thereon)
shall be credited to the Salary Deferral Account; catch-up contributions (and earnings thereon)
shall be credited to the Catch-Up Contribution Account; company contributions, including matching
contributions, (and earnings thereon) from qualified plans that allow for in-service distributions
of such assets before the Member attains 591/2 years of age shall be credited to the Prior Plan
Company Contribution Account; company contributions, including matching contributions, (and
earnings thereon) from qualified plans that do not allow for in-service distributions of such
assets before the Member attains 591/2 years of age shall be credited to the Company Contribution
Account; employee post-tax contributions (and earnings thereon) shall be credited to the Prior Plan
Member After-Tax Account; rollover contributions (and earnings thereon) shall be credited to the
Prior Plan Rollover Account; and after-tax rollover contributions (and earnings thereon) shall be
credited to the Prior Plan After-Tax Rollover Account.

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SECTION XVII

ASSETS TRANSFERRED FROM THE PENNZOIL-QUAKER STATE COMPANY

SAVINGS AND INVESTMENT PLAN AND THE PENNZOIL-QUAKER STATE

COMPANY SAVINGS AND INVESTMENT PLAN FOR HOURLY EMPLOYEES

     17.1     In connection with the transfer of assets from the Relevant Plans on or about December
23, 2004, amounts attributable to salary deferrals (i.e. pre-tax elective contributions) including
catch-up contributions made under the Relevant Plans and all assets in the form of a loan that is
at least partially sourced from salary deferrals or catch-up contributions shall be credited to the
respective accounts established hereunder for the benefit of Former PQS Participants. The Plan
Administrator may establish such special transitional rules as he deems appropriate in connection
with such transfer of assets.

     17.2     For purposes of this Article,

     (a)     “Former PQS Participant” shall mean any individual who met each of the following
characteristics:

     (i)     transferred employment directly from a company participating in one of the
Relevant Plans to a Participating Company during the period October 1, 2002 to
November 1, 2004 or was an employee of Pennzoil-Quaker State Company on and
immediately before January 1, 2004, the day in which such company became a
Participating Company, and

     (ii)     as of November 2, 2004, was not employed by Jiffy Lube International,
Inc., Q Lube, Inc., or Pennzoil-Quaker State International Corporation.

     (b)     “Relevant Plans” means the Pennzoil-Quaker State Company Savings and Investment
Plan and the Pennzoil-Quaker State Company Savings and Investment Plan for Hourly
Employees.

     17.3     Notwithstanding the above, assets transferred in the form of a loan from the Relevant
Plans, that was separately accounted for in sources designated as either the Company Match Account
or the Company Match Vested Account in the PQS Administrative Manual as of November 2004, shall be
credited to the Prior Plan Company Contribution Account established in this Plan.

     17.4     Notwithstanding the above, assets transferred in the form of a loan from the Relevant
Plans, which was separately accounted for as the source designated as either Prior Employer Match
Account, Prior Plan Match Account, Prior Plan P/S Account, or Prior Plan ESOP Account in the PQS
Administrative Manual as of November 2004 shall be credited to the Prior Plan Rollover Account
established in this Plan.

     17.5     Notwithstanding the above, assets transferred in the form of a loan from the Relevant
Plans, which was separately accounted for as the source designated as either Safe harbor Match
Account or Prior Company Match Account in the PQS Administrative Manual as of November 2004, shall
be credited to the Company Contribution Account established in this Plan.

     17.6     Notwithstanding the above, assets transferred in the form of a loan from the Relevant
Plans, which was separately accounted for as the source designated as QNEC Account in the PQS
Administrative Manual as of November 2004, shall be credited to the Salary Deferral Account
established in this Plan.

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SECTION XVIII

MERGER OF SHELL TRADING SAVINGS PLAN

     18.1     In connection with the transfer of assets from the Shell Trading Savings Plan on or about
December 29, 2004, account balances of amounts attributable to salary deferrals (i.e. pre-tax
elective contributions) including catch-up contributions and all assets in the form of a loan that
is at least partially sourced from salary deferrals or catch-up contributions shall be credited to
the respective accounts established herein. The Plan Administrator may establish such special
transition rules as he deems appropriate in connection with such transfer of assets.

     18.2     Notwithstanding the above, assets transferred in the form of a loan from the Shell Trading
Savings Plan that were credited to the Matching Account in such plan shall be credited to the
Company Contribution Account established in this Plan.

     18.3     Notwithstanding the above, assets transferred in the form of a loan from the Shell Trading
Savings Plan that were credited to the LEDCO Account in such plan shall be credited to the Company
Contribution Account established in this Plan.

61

 

SCHEDULE A

	 	 	 
	Business Entity	 	Date of Acquisition
	The Goodyear Tire & Rubber Company

	 	December 18, 1992
	 
	 	 
	Hi-Tek Polymers, Inc.

	 	April 1, 1993
	 
	 	 
	Schering Berlin Polymers, Inc.

	 	April 2, 1993

62

 

SCHEDULE B

Part One

Incentive Compensation Plans

Incentive Compensation Plan (as adopted by Shell Oil Company and certain of its subsidiaries with
effect from 1/1/94)

Shell Polypropylene Company 1995 Incentive Compensation Plan

Success Shares — CalResources Incentive Compensation Plan

Coral Energy Resources Services Company Bonus Plan

Part Two

(Intentionally left blank)

63

 

SCHEDULE C

Part I of Schedule C

Tier I

LifeStyle Funds

Fidelity Freedom Income Fund®

Fidelity Freedom 2010 Fund®

Fidelity Freedom 2020 Fund®

Fidelity Freedom 2030 Fund®

Fidelity Freedom 2040 Fund®

Core Funds

1-3 Year Government Bond Index Fund

A fund using a stratified sampling approach to aim to match the performance of the Lehman Brothers
1-3 Year Government Bond Index, an unmanaged index that measures the performance of U.S.
government-issued bonds with maturities greater than one year but less than three years.

20+ Treasury Bond Index Fund

A fixed-income index fund designed to match the performance of the Lehman Brothers 20+ Treasury
Index and consisting exclusively of U.S. Treasury issues with maturities greater than 20 years
which are guaranteed timely interest and principal payments by the full faith and credit of the
U.S. government and certain short-term investments.

Government/Credit Bond Index Fund

A fund using a stratified sampling approach to aim to match the performance of the Lehman Brothers
Government/Credit Bond Index, an unmanaged index that measures the performance of U.S. government
and high-quality corporate bonds with maturities of at least one year.

Intermediate Government Bond Index Fund

A fixed-income index fund designed to match the performance of the Lehman Brothers Intermediate
Government Bond Index and consisting exclusively of U.S. government issued bonds which are
guaranteed timely interest and principal payments by the full faith and credit of the U.S.
government and certain short-term investments.

Mid-Cap Equity Index Fund

A broadly diversified equity index fund designed to match the performance of the S&P MidCap 400
Index and consisting primarily of the equities of mid-sized U.S. companies.

Royal Dutch Shell Stock Fund

A non-diversified, unmanaged, unitized fund consisting primarily of RDS Class A American depositary
receipts representing Class A ordinary shares of Royal Dutch Shell plc and short-term instruments.

64

 

Russell 1000 Value Index Fund

A diversified large-capitalization equity index fund that aims to match the performance of the
Russell 1000® Value Index.

Russell 1000 Growth Index Fund

A diversified large-capitalization equity index fund that aims to match the performance of the
Russell 1000® Growth Index.

Russell 2000® Equity Index Fund

A small capitalization equity index fund designed to match the performance of the Russell 2000®
Index and consisting primarily of small capitalization securities.

Russell 2000 Value Index Fund

A small-capitalization equity index fund that aims to match the performance of the Russell
2000® Value Index.

Russell 2000 Growth Index Fund

A small-capitalization equity index fund that aims to match the performance of the Russell
2000® Growth Index.

Thrift Fund

A fund consisting of such fixed-income investments as the Trustees shall from time to time
determine in accordance with the Trust Agreement. Investments may include, but shall not be
limited to, investment contracts of insurance companies or financial institutions and high quality,
short-term, U.S. dollar-denominated money market securities issuers.

U. S. Debt Index Fund

A broad fixed-income index fund designed to match the performance of the Lehman Brothers Aggregate
Bond Index and consisting primarily of investment-grade bonds with maturities of at least one year
including U.S. government, corporate, mortgage-backed, and asset-backed bonds.

U. S. Equity Index Fund

An equity index fund designed to approximate the composition and total return of the Standard &
Poor’s Composite Index of 500 Stocks (S&P 500®) and consisting primarily of the common
stocks that make up the S&P 500®. Except as provided in Section VI of the Trust
Agreement, assets of the U. S. Equity Index Fund shall not be invested in securities of any of the
Contributing or Affiliated Companies.

U. S. Equity Market Fund

A total market equity index fund designed to match the performance of the Barclays’ U.S. Equity
Market Index and consisting primarily of the publicly available universe of equity shares.

U. S. Treasury Inflation Protected Securities Index Fund

A fund using a full-replication approach to aim to match the performance of the Lehman Brothers
U.S. Treasury Inflation Protection Securities Index, an unmanaged index that measures the
performance of inflation-indexed bonds issued by the U.S. Treasury.

Part II of Schedule C

Tier II

Fidelity Mutual Funds

Fidelity Blue Chip Growth Fund

65

 

Fidelity Diversified International Fund

Fidelity Dividend Growth Fund

Fidelity Equity-Income Fund

Fidelity Equity-Income II Fund

Fidelity Fund

Fidelity Growth & Income Portfolio

Fidelity Mid Cap Stock Fund

Fidelity Overseas Fund

Fidelity Puritan® Fund

Fidelity Small Cap Independence Fund

Fidelity Small Cap Stock Fund

Fidelity Value Fund

Part III of Schedule C

Tier III

Mutual Fund Window —  such of the following mutual funds as are from time to time
available through Fidelity’s

FundsNetSM program and all Fidelity mutual funds not
offered in Tier II:

AIM Balanced Fund Class A

AIM Basic Value Fund Class A

AIM Blue Chip Fund Class A

AIM Constellation Fund Class A

AIM Global Aggressive Growth Fund Class A

AIM Mid Cap Core Equity Fund Class A

AIM Premier Equity Fund

AIM Weingarten Fund Class A

Alger Capital Appreciation Fund — Institutional Class

Alger Mid Cap Growth Fund — Institutional Class

Alger Small Cap Fund — Institutional Class

66

 

American AAdvantage Balanced Fund

American AAdvantage International Equity Fund

American AAdvantage Large Cap Value Fund

American AAdvantage Short-Term Bond Fund

American Century Large Company Value Fund — Investor Class

American Century Small Company Fund — Investor Class

American Century Ultra Fund — Investor Class

Ariel Appreciation Fund

Ariel Fund

Ariel Premier Bond Fund  — Investor Class

Artisan International Fund

Artisan Mid Cap Fund

Baron Asset Fund

Baron Growth Fund

Calvert Capital Accumulation Fund

Calvert New Vision Small Cap Fund

Calvert Social Investment Balanced Fund

Calvert Social Investment Fund Equity — A

Calvert World Values Fund, Inc.— International Equity Fund

Columbia Acorn Select Fund — Z

Columbia High Yield Fund — Z

Credit Suisse Capital Appreciation Fund

Credit Suisse Global Fixed Income Fund

Credit Suisse International Focus Fund

Credit Suisse Large Cap Value Fund — Class A

Credit Suisse Mid-Cap Growth Fund

Credit Suisse Small Cap Value Fund

67

 

CRM Mid Cap Value Fund — Investor Class

Domini Social Equity Fund

Dreyfus Founders Balanced Fund F

Dreyfus Founders Discovery Fund F

Dreyfus Founders Growth & Income Fund F

Dreyfus Founders Growth Fund F

Dreyfus Founders Mid-Cap Growth Fund F

Dreyfus Founders Passport Fund F

Dreyfus Founders Worldwide Growth Fund F

Fidelity Aggressive Growth Fund

Fidelity Aggressive International Fund

Fidelity Asset ManagerSM

Fidelity Asset Manager: AggressiveSM

Fidelity Asset Manager: GrowthSM

Fidelity Asset Manager: IncomeSM

Fidelity Balanced Fund

Fidelity Blue Chip Value Fund

Fidelity Canada Fund

Fidelity Capital & Income Fund

Fidelity Capital Appreciation Fund

Fidelity Cash Reserves

Fidelity China Region Fund

Fidelity Contrafund

Fidelity Convertible Securities Fund

Fidelity Disciplined Equity Fund

Fidelity Discovery Fund

Fidelity Emerging Markets Fund

68

 

Fidelity Europe Capital Appreciation Fund

Fidelity Europe Fund

Fidelity Export and Multinational Fund

Fidelity Fifty Fund

Fidelity Floating Rate High Income Fund

Fidelity Focused Stock Fund

Fidelity Four-in-One Index Fund

Fidelity Freedom 2000 Fund

Fidelity Freedom 2005 Fund

Fidelity Freedom 2015 Fund

Fidelity Freedom 2025 Fund

Fidelity Freedom 2035 Fund

Fidelity Ginnie Mae Fund

Fidelity Global Balanced Fund

Fidelity Government Income Fund

Fidelity Growth & Income II Portfolio

Fidelity Growth Company Fund

Fidelity High Income Fund

Fidelity Independence Fund

Fidelity Inflation-Protected Bond Fund

Fidelity Institutional Short-Intermediate Government Fund

Fidelity Intermediate Bond Fund

Fidelity Intermediate Government Income Fund

Fidelity International Growth & Income Fund

Fidelity International Small Cap Fund

Fidelity Investment Grade Bond Fund

Fidelity Japan Fund

69

 

Fidelity Japan Smaller Companies Fund

Fidelity Large Cap Stock Fund

Fidelity Latin America Fund

Fidelity Leveraged Company Stock Fund

Fidelity Low-Priced Stock Fund

Fidelity Magellan® Fund

Fidelity Mortgage Securities Fund — Initial Class

Fidelity Nasdaq Composite® Index Fund

Fidelity New Markets Income Fund

Fidelity Nordic Fund

Fidelity OTC Portfolio

Fidelity Pacific Basin Fund

Fidelity Real Estate Income Fund

Fidelity Real Estate Investment Portfolio

Fidelity Retirement Government Money Market Portfolio

Fidelity Retirement Money Market Portfolio

Fidelity Short-Term Bond Fund

Fidelity Small Cap Retirement Fund

Fidelity Southeast Asia Fund

Fidelity Stock Selector

Fidelity Strategic Dividend & Income Fund

Fidelity Strategic Income Fund

Fidelity Structured Large Cap Growth

Fidelity Structured Large Cap Value

Fidelity Structured Mid Cap Growth

Fidelity Structured Mid Cap Value

Fidelity Total Bond Fund

70

 

Fidelity Trend Fund

Fidelity U.S. Bond Index Fund

Fidelity U.S. Government Reserves

Fidelity Ultra-Short Bond Fund

Fidelity Utilities Fund

Fidelity Value Discovery Fund

Fidelity Value Strategies Fund

Fidelity Worldwide Fund

FMA Small Company Portfolio

Franklin Small-Mid Cap Growth Fund A

INVESCO Core Equity Fund

INVESCO Dynamics Fund

INVESCO Small Company Growth Fund

INVESCO Total Return Fund

Janus Balanced Fund

Janus Enterprise Fund

Janus Flexible Income Fund

Janus Fund

Janus Mercury Fund

Janus Twenty Fund

Janus Worldwide Fund

Legg Mason Value Trust

Lord Abbett Mid Cap Value Fund — Class A

Lord Abbett Mid Cap Value Fund — Class P

Managers Bond Fund

Managers Capital Appreciation Fund

Managers Special Equity Fund

71

 

Managers Value Fund

MS Institutional Fund Active International Allocation Portfolio Class B

MS Institutional Fund Emerging Markets Portfolio Class B

MS Institutional Fund Equity Growth Portfolio Class B

MS Institutional Fund Global Value Equity Portfolio Class B

MS Institutional Fund International Equity Portfolio Class B

MS Institutional Fund International Magnum Portfolio Class B

MS Institutional Fund Small Company Growth Portfolio Class B

MS Institutional Fund Trust Balanced Portfolio

MS Institutional Fund Trust Core Plus Fixed Income Portfolio

MS Institutional Fund Trust High Yield Portfolio

MS Institutional Fund Trust Mid Cap Growth Portfolio

MS Institutional Fund Trust Value Portfolio

MS Institutional Fund Value Equity Portfolio Class B

Mutual Discovery Fund A

Mutual Shares Fund A

Neuberger Berman Focus Trust

Neuberger Berman Genesis Trust

Neuberger Berman Guardian Trust

Neuberger Berman Manhattan Trust

Neuberger Berman Partners Trust

Neuberger Berman Socially Responsive Trust

Oakmark Equity and Income Fund

Oakmark Fund

Oakmark Select Fund

PBHG Emerging Growth Fund

PBHG Growth Fund

72

 

PBHG Large Cap Fund

PBHG Mid Cap Fund

PBHG Strategic Small Company Fund

PIMCO CCM Capital Appreciation Fund — Administrative Class

PIMCO CCM Mid Cap Fund — Administrative Class

PIMCO Global Bond Fund — Administrative Class

PIMCO High Yield Fund— Administrative Class

PIMCO Long-Term U.S. Government Fund — Administrative Class

PIMCO Low Duration Fund — Administrative Class

PIMCO NFJ Small Cap Value Fund — Administrative Class

PIMCO Total Return Fund — Administrative Class

Robertson Stephens Emerging Growth Fund

Robertson Stephens Smaller Company Growth Fund

Royce Low-Priced Stock Fund

Scudder 21st Century Growth Fund

Scudder Dreman High Return Equity — A

Scudder Global Discover Fund

Scudder Growth & Income Fund

Scudder International Fund

Spartan 500 Index Fund

Spartan Extended Market Index Fund

Spartan Government Income Fund

Spartan International Index Fund

Spartan Investment Grade Bond Fund

Spartan Total Market Index Fund

Spartan U.S. Equity Index Fund

Strong Advisor Common Stock Fund Class Z

73

 

Strong Advisor Small Cap Value Fund

Strong Discovery Fund

Strong Government Securities Fund

Strong Growth Fund

Strong Large Cap Growth Fund

Strong Opportunity Fund

Strong Short-Term Bond Fund

Strong Ultra Short-Term Income Fund

TCW Galileo Aggressive Growth Equities Fund Class N

TCW Galileo Select Equities Fund Class N

TCW Galileo Small Cap Growth Fund Class N

Templeton Developing Markets Trust A

Templeton Foreign Fund A

Templeton Foreign Smaller Companies Fund A

Templeton Global Bond Fund A

Templeton Growth Fund A

Templeton World Fund A

UAM: FPA Crescent Portfolio

UAM: Rice, Hall, James Small Cap Portfolio

USAA Cornerstone Strategy Fund

USAA Emerging Markets Fund

USAA GNMA Trust

USAA Growth Fund

USAA Income Fund

USAA Income Stock Fund

USAA International Fund

Van Kampen Growth & Income Fund — A

74

 

Villanova Capital: Gartmore Millennium Growth Fund

Villanova Capital: Gartmore Value Opportunity Fund

Western Asset Core Portfolio FI Class

Part IV of Schedule C

Tier IV

Fidelity Select Portfolios — such of the following mutual funds as are from time to time
available through Fidelity:

Fidelity Select Portfolios: Air Transportation Portfolio

Fidelity Select Portfolios: Automotive Portfolio

Fidelity Select Portfolios: Banking Portfolio

Fidelity Select Portfolios: Biotechnology Portfolio

Fidelity Select Portfolios: Brokerage and Investment Management Portfolio

Fidelity Select Portfolios: Business Services and Outsourcing Portfolio

Fidelity Select Portfolios: Chemicals Portfolio

Fidelity Select Portfolios: Computers Portfolio

Fidelity Select Portfolios: Construction and Housing Portfolio

Fidelity Select Portfolios: Consumer Industries Portfolio

Fidelity Select Portfolios: Cyclical Industries Portfolio

Fidelity Select Portfolios: Defense and Aerospace Portfolio

Fidelity Select Portfolios: Developing Communications Portfolio

Fidelity Select Portfolios: Electronics Portfolio

Fidelity Select Portfolios: Energy Portfolio

Fidelity Select Portfolios: Energy Service Portfolio

Fidelity Select Portfolios: Environmental Portfolio

Fidelity Select Portfolios: Financial Services Portfolio

Fidelity Select Portfolios: Food and Agriculture Portfolio

Fidelity Select Portfolios: Gold Portfolio

75

 

Fidelity Select Portfolios: Health Care Portfolio

Fidelity Select Portfolios: Home Finance Portfolio

Fidelity Select Portfolios: Industrial Equipment Portfolio

Fidelity Select Portfolios: Industrial Materials Portfolio

Fidelity Select Portfolios: Insurance Portfolio

Fidelity Select Portfolios: Leisure Portfolio

Fidelity Select Portfolios: Medical Delivery Portfolio

Fidelity Select Portfolios: Medical Equipment and Systems Portfolio

Fidelity Select Portfolios: Money Market Portfolio

Fidelity Select Portfolios: Multimedia Portfolio

Fidelity Select Portfolios: Natural Gas Portfolio

Fidelity Select Portfolios: Natural Resources Portfolio

Fidelity Select Portfolios: Networking and Infrastructure Portfolio

Fidelity Select Portfolios: Paper and Forest Products Portfolio

Fidelity Select Portfolios: Pharmaceuticals Portfolio

Fidelity Select Portfolios: Retailing Portfolio

Fidelity Select Portfolios: Software and Computer Services Portfolio

Fidelity Select Portfolios: Technology Portfolio

Fidelity Select Portfolios: Telecommunications Portfolio

Fidelity Select Portfolios: Transportation Portfolio

Fidelity Select Portfolios: Utilities Growth Portfolio

Fidelity Select Portfolios: Wireless Portfolio

76

 

TRUST AGREEMENT

SHELL PAY DEFERRAL INVESTMENT FUND

     This Trust Agreement is made by and between SHELL OIL COMPANY, CORAL ENERGY SERVICES, LLC, CRI
U.S. LP, EQUILON ENTERPRISES LLC d/b/a SHELL OIL PRODUCTS US, MOTIVA COMPANY, PECTEN CHEMICALS
INC., PECTEN MIDDLE EAST SERVICES COMPANY LIMITED, PECTEN OVERSEAS SERVICES COMPANY, PECTEN
PRODUCING COMPANY, PECTEN SERVICES COMPANY, PENNZOIL-QUAKER STATE COMPANY d/b/a SOPUS PRODUCTS,
SHELL AGRICULTURAL CHEMICAL COMPANY, SHELL CAPITAL, INC., SHELL CHEMICAL LP, SHELL CHEMICAL RISK
MANAGEMENT COMPANY, SHELL ENERGY RESOURCES COMPANY, SHELL ENERGY SERVICES COMPANY, L.L.C., SHELL
EXPATRIATE EMPLOYMENT US INC., SHELL EXPLORATION & PRODUCTION COMPANY, SHELL GLOBAL SOLUTIONS (US)
INC., SHELL INFORMATION TECHNOLOGY INTERNATIONAL INC., SHELL INTERNATIONAL EXPLORATION AND
PRODUCTION INC., SHELL MARINE PRODUCTS (US) COMPANY, SHELL NORTH AMERICA GAS & POWER SERVICES
COMPANY, SHELL OFFSHORE INC., SHELL OIL PRODUCTS COMPANY LLC, SHELL OIL PRODUCTS LAN LLC, SHELL
PIPELINE COMPANY LP, SHELL SOLAR EMPLOYMENT SERVICES INC., SHELL TECHNOLOGY VENTURES INC., SHELL
TRADING GAS AND POWER COMPANY, SHELL TRADING GP OVERSEAS SERVICES COMPANY, SHELL US GAS & POWER,
LLC, SHELL TRADING NORTH AMERICA COMPANY, SHELL TRADING (US) COMPANY, SWEPI LP, SHELL WINDENERGY
SERVICES INC., SIEP OVERSEAS SERVICES, INC., SPLC SERVICES COMPANY LLC, and such other companies as
may become parties hereto from time to time as hereinafter provided (the affiliated companies which
at any given time are participating in the Shell Pay Deferral Investment Fund being hereinafter
referred to as the “Participating Companies”), and T. T. Coles, J. M. Esquivel, F. A. Glaviano, S.
Hodge, and J. D. Hofmeister, as Trustees, and such other persons who may become Trustees hereunder
from time to time as hereinafter provided (the persons who at any given time are acting as Trustees
hereunder being hereinafter called the “Trustees”).

W I T N E S S E T H:

          WHEREAS, the Participating Companies are establishing the Shell Pay Deferral Investment Fund
(hereinafter referred to as “the Plan”) for the benefit of their Employees who are eligible and
elect to participate as “Members”;

          WHEREAS, the Plan will be an employee benefit plan under ERISA and is designed to comply with
Sections 401(a) and 401(k) of the Code and will be evidenced by a Plan Instrument to be effective
as of the date set forth in Subsection 10.11 of the Plan, to which this Trust Agreement will be
attached and made a part;

          WHEREAS, in order to implement and carry out the provisions of the Plan, the Participating
Companies desire to establish a trust which will be part of the Plan and which is designed to be
exempt from federal income tax under the Code;

          NOW, THEREFORE, in consideration of the provisions and mutual covenants hereinafter set forth,
the parties hereto agree as follows:

77

 

ARTICLE I

ADOPTION OF THE PLAN, CREATION OF THE TRUST

AND DESIGNATION OF TRUSTEES

     1.1     The Participating Companies hereby adopt the Plan as set forth in the Plan Instrument of which
this Trust Agreement is made a part, for the exclusive benefit of their Employees who become
Members of the Plan and their Beneficiaries, and hereby join in the creation of the trust to which
Contributions under the Plan are to be made (“the Trust”); the Trust being for the purpose of
holding and distributing Plan assets under the terms of the Plan.

     1.2     The Trustees named above are hereby designated Trustees for the Plan and shall so serve until
they are removed under the terms of the Plan, resign or become unable to serve.

     1.3     The signature of any Participating Company to any counterpart or copy of this Trust Agreement
or of any ratification or adoption instrument approved by counsel to the Plan shall be sufficient
evidence of its adoption of the Plan, ratification of the Trust and approval and designation of the
Trustees then serving at the time of execution of any such instrument.

ARTICLE II

ACCEPTANCE OF THE TRUST; DISCHARGE OF DUTIES BY TRUSTEES

     2.1     The Trustees hereby accept appointment as Trustees and agree to hold, administer and disburse
all of the principal and earnings of the funds contributed to or accumulated in the Trust in
accordance with all of the terms and conditions of the Plan as set forth in the Plan Instrument of
which this Trust Agreement is a part. The signature of any person named or appointed as a Trustee
to any counterpart of this Trust Agreement shall be sufficient evidence of his acceptance of such
appointment and his agreement to serve as Trustee.

     2.2     The Trustees shall discharge their duties set forth in the Plan Instrument including the Trust
Agreement:

     (a)     solely in the interest of the Members and their Beneficiaries;

     (b)     for the exclusive purpose of providing benefits to Members and their Beneficiaries;

     (c)     with the care, skill, prudence, and diligence under the circumstances then prevailing that
a prudent man acting in a like capacity and familiar with such matters would use in the conduct of
the enterprise of a like character and with like aims;

     (d)     by diversifying the investments of the Trust so as to minimize the risk of large losses,
unless under the circumstances it is clearly prudent not to do so, or unless the Members, Former
Members, or Qualified Beneficiaries entitled under the terms of the Plan Instrument to direct
investments in their own accounts, have otherwise directed; and

     (e)     in accordance with the documents and instruments governing the Plan insofar as such
documents and instruments are consistent with ERISA.

ARTICLE III

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RELIANCE BY TRUSTEE ON OTHER TRUSTEES AND FIDUCIARIES;

DELEGATION OF DUTIES

     3.1     The Trustees may rely upon any investment direction of a Member, or a Former Member or
Qualified Beneficiary entitled under the terms of the Regulations to direct investments in their
own accounts, as long as any such direction is proper on its face and consistent with the Plan
Instrument and this Trust Agreement. Each Trustee may rely upon any direction, information or
action of another Trustee as being proper under the Plan or the Trust and is not required to
inquire into the propriety of any such direction, information or action. It is intended that each
Trustee shall be responsible for the proper exercise of his own powers, duties, responsibilities,
and obligations under the Plan and the Trust and shall not be responsible for any act or failure to
act of another fiduciary (including another Trustee), except in the following circumstances: (a)
the Trustee knowingly participates in or knowingly attempts to conceal the act or omission of
another fiduciary, and the Trustee knows the act or omission is a breach of a fiduciary
responsibility by the other fiduciary; or (b) the Trustee has knowledge of a breach by the other
fiduciary and does not make reasonable efforts to remedy the breach; or (c) the Trustee’s breach of
his own fiduciary responsibility permits the other fiduciary to commit a breach. No Trustee
guarantees the Plan assets in any manner against investment loss or depreciation in asset value.

     3.2     The Trustees shall jointly manage and control the assets of the Plan unless there is a specific
allocation or delegation of specific responsibilities, obligations, and duties among the Trustees
or other fiduciaries. There may be an allocation and delegation of fiduciary responsibilities to
other fiduciaries as provided under the Plan. If such an allocation or delegation shall be made,
the specified Trustee or fiduciary shall then be responsible for the duties allocated or delegated,
and the other Trustees or fiduciaries shall not be liable for any breach of fiduciary
responsibility for the duties allocated or delegated except as set forth above.

     3.3     The Contributing Companies shall have no responsibility for overseeing or monitoring the
investment options under Schedule C of the Regulations. The Trustees and the Plan Administrator
shall have only limited responsibility for overseeing and monitoring the LifeStyle Funds set out in
Part I of Schedule C to the Regulations and shall have no responsibility for overseeing or
monitoring the Tier III Funds or the Tier IV Funds regardless of whether such Tier III Funds and/or
such Tier IV Funds underlie investment options under Part I and/or Part II of such Schedule C.
Each participant and each beneficiary shall have the sole responsibility for deciding to buy, sell,
or hold units in the investment options under Schedule C of the Regulations for his or her account
and the sole responsibility for determining whether any Tier III Funds and any Tier IV Funds in
said account provide acceptable risk and return characteristics and are otherwise consistent with
his or her investment objectives and the investment objectives of the Optional Fund.

ARTICLE IV

CONTRIBUTIONS TO TRUST;

INVESTMENT AND DISPOSITION OF FUNDS

     4.1     Contributions to the Trust by the Participating Companies shall be made in accordance with the
Plan as set forth in the Plan Instrument of which this Trust Agreement is made a part. Funds paid
in as Contributions under the Plan will be allocated and directed to the respective insurance
companies, banks, trust institutions, custodians and Investment Managers charged with the duty of
holding, managing, investing and disbursing the respective funds offered by the Plan under written
agreements executed by and between

79

 

the Trustees and such parties; such allocations between such
funds to be in accordance with the directions of Members and credited to their respective Accounts
under the Plan.

     4.2     All funds paid into the Trust as Contributions shall be held, managed, deposited, invested,
reinvested, disbursed and distributed to or for the benefit of Members in accordance with the terms
and conditions of the Plan. No Trustee shall be liable for the acts or omissions of any insurance
company, Investment Manager, bank or trust company charged with the duty of holding, managing,
investing or disbursing Plan assets, or, be under an obligation to invest or otherwise manage any
asset of the Plan subject to the management of any such party. However, the Trustees will have the
responsibility to periodically review the performance of all Investment Managers of the Plan and to
remove and replace any if it appears advisable to do so.

     4.3     All Contributions made pursuant to the Plan shall be held by the Trustees in accordance with
the terms of the Trust Agreement for the exclusive benefit of the Members and their Beneficiaries,
and shall be applied to provide benefits under the Plan and to pay expenses of administration of
the Plan and the Trust, to the extent that such expenses are not otherwise paid. At no time prior
to the satisfaction of all liabilities with respect to such Members and their Beneficiaries shall
any part of the corpus or income of the Trust (other than such part as may be required to pay
administration expenses and taxes), be used for, or diverted to, purposes other than for the
exclusive benefit of such Members and their Beneficiaries. Notwithstanding anything to the
contrary, however, Contributions to the Plan are subject to the following conditions:

     (a)     that the Plan is qualified under Section 401(a) and if the Plan does not so qualify, the
Trustee shall, upon written request of a Participating Company, return to such Participating
Company the amount of such Contribution and any increment thereon within one year after the date
that initial qualification is denied;

     (b)     that the Contributions are deductible under Section 404 of the Code and to the extent the
deduction is disallowed, the Trustee shall upon written request of a Participating Company, return
the Contribution (to the extent disallowed) and any increment thereon to such Participating Company
within one year after the date the deduction is disallowed; and

     (c)     If a Contribution is made by a Participating Company by a mistake of fact, the Trustee
shall, upon written request of a Participating Company, return the Contribution and any increment
thereon to such Participating Company within one year after the date of payment to the Trustee.

ARTICLE V

RESIGNATION OR REMOVAL OF TRUSTEES;

SUCCESSOR TRUSTEES; NUMBER OF TRUSTEES

     5.1     Shell Oil Company may remove and replace any Trustee as it sees fit. Any Trustee may resign by
giving written notice to the Plan Administrator and the remaining Trustees. The number of Trustees
shall not be less than three (3) and Shell Oil Company will appoint Trustees to keep the required
number.

     5.2     A Trustee shall not be liable or responsible for any acts or omissions in the administration of
the Trust prior to the date he became a Trustee or after the date he shall cease to be a Trustee.
A successor Trustee shall not have a duty to review the actions of any prior Trustee.

     5.3     The signature of any successor Trustee (or Trustee added to the original number of Trustees) to
any counterpart or copy of the Trust Agreement shall be sufficient evidence of his acceptance of
the Trust.

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     5.4     A Certificate executed by any Trustee or in accordance with the by-laws adopted by the
Trustees, certifying who are or were Trustees at any given time shall be sufficient evidence
thereof.

ARTICLE VI

AMENDMENT OF TRUST AGREEMENT

     6.1     The Trust Agreement may be amended in accordance with the provisions of Section VIII of the
Plan Instrument.

ARTICLE VII

ADDITIONAL PARTICIPATING COMPANIES

     7.1     Any company may, with the consent of Shell Oil Company, become a Participating Company in the
Plan provided it ratifies and adopts the Plan including this Trust Agreement. Shell Oil Company
under its consent shall specify the effective date of participation.

ARTICLE VIII

NON-ALIENATION OF RIGHTS

     8.1     Except as provided under the loan provisions set forth in the Plan Instrument, no assets
standing to the credit of any Member under the Plan shall be subject in any manner to anticipation,
alienation, sale, transfer, assignment, pledge, encumbrance of charges by a Participating Company,
a Member or a Beneficiary of a Member, and any attempt to anticipate, alienate, sell, transfer,
assign, pledge, encumber or charge any such assets shall be void. Further, any such assets shall
in no manner be liable for or subject to the debts, contracts or liabilities of any Member or a
Beneficiary of any Member. This provision shall not be applicable to a qualified domestic
relations order as defined in Section 206(d) of ERISA and Section 414(p) of the Code which may
direct payment or distribution of all or part of such sums, shares or securities to an Alternate
Payee. Any accrued benefit of a Member or Former Member may be apportioned between the Member or
Former Member and the Alternate Payee either through separate accounts or by providing the
Alternate Payee a severable portion of the Member’s or Former Member’s Account.

ARTICLE IX

COMPENSATION AND EXPENSES

     9.1     The Trustees shall not receive any remuneration from the Plan for their services. The
following costs and expenses incurred by or in the operation or administration of the Plan or the
Trust, if appropriate, shall be borne by the Plan and paid out of the funds held by the Trustees:

	 	 	(1)     Compensation of independent accountants, counsel, agent or agents, custodians, and Investment
Managers, including investment contract consultants and independent counsel assisting in
determining the qualified status of domestic relations orders, as the Trustees or the Plan
Administrator may appoint or employ;

81

 

	 	 	(2)     Premiums for insurance against loss of plan assets due to breach of any fiduciary duty;
	 
	 	 	(3)     Premiums for insurance on behalf of any fiduciary of the Plan to cover liability for his own
account;
	 
	 	 	(4)     Bonding expenses required under the Plan or Trust;
	 
	 	 	(5)     User fees for requests to the Internal Revenue Service for rulings, determination letters,
and similar requests;
	 
	 	 	(6)     All taxes of any kind that may be levied or assessed under existing or future laws in respect
of the Plan or Trust on the income or gains thereof or therefrom;
	 
	 	 	(7)     Brokerage commissions, transfer taxes, and other charges and expenses that can be
specifically identified in connection with the purchase and sale of securities or otherwise
carrying out the investment purposes of the funds; and
	 
	 	 	(8)     Reasonable direct expenses (supported by surrounding facts and circumstances) for services
provided by a Participating Company for the administration of the Plan or Trust.

               Said costs and expenses shall be paid out of the fund to which they relate or allocated
between the funds on such basis as the Trustees shall determine. Brokerage commissions, transfer
taxes or other charges and expenses that can be specifically identified in connection with the
purchase and sale of securities shall be added to the cost thereof, or deducted from the proceeds
thereof, as the case may be.

               The Participating Companies shall pay all remaining expenses, which shall be shared ratably by
them as they may agree, and failing such agreement, as determined by the Trustees.

ARTICLE X

EXECUTION, DELIVERY AND INVALIDITY

     10.1     The Trust Agreement and the Plan Instrument shall be governed by the laws of the State of
Texas, to the extent not preempted by ERISA.

     10.2     If any provision of this Trust Agreement shall be held invalid or unenforceable, such
invalidity or unenforceability shall not affect any other provision hereof, and this Trust
Agreement shall be construed and enforced as if such provisions had not been included.

          IN WITNESS WHEREOF, the respective Participating Companies have executed this Trust Agreement
by and through their respective duly authorized officers and the Trustees have executed such
instrument evidencing their acceptance to serve in such capacity.

	 	 	 
	 	 	PARTICIPATING COMPANIES:

	 
	 	 

	 
	 	SHELL OIL COMPANY

	 	 	CORAL ENERGY SERVICES, LLC

	 	 	CRI U.S. LP

	 	 	EQUILON ENTERPRISES LLC d/b/a SHELL OIL PRODUCTS US

	 	 	MOTIVA COMPANY

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	 	 	PECTEN CHEMICALS INC.

	 	 	PECTEN MIDDLE EAST SERVICES COMPANY LIMITED

	 	 	PECTEN OVERSEAS SERVICES COMPANY

	 	 	PECTEN PRODUCING COMPANY

	 	 	PECTEN SERVICES COMPANY

	 	 	PENNZOIL-QUAKER STATE COMPANY d/b/a SOPUS PRODUCTS

	 	 	SHELL AGRICULTURAL CHEMICAL COMPANY

	 	 	SHELL CAPITAL INC.

	 	 	SHELL CHEMICAL LP

	 	 	SHELL CHEMICAL RISK MANAGEMENT COMPANY

	 	 	SHELL ENERGY RESOURCES COMPANY

	 	 	SHELL ENERGY SERVICES COMPANY, L.L.C.

	 	 	SHELL EXPATRIATE EMPLOYMENT US INC.

	 	 	SHELL EXPLORATION & PRODUCTION COMPANY

	 	 	SHELL GLOBAL SOLUTIONS (US) INC.

	 	 	SHELL INFORMATION TECHNOLOGY INTERNATIONAL INC.

	 	 	SHELL INTERNATIONAL EXPLORATION AND PRODUCTION INC.

	 	 	SHELL MARINE PRODUCTS (US) COMPANY

	 	 	SHELL NORTH AMERICA GAS & POWER SERVICES COMPANY

	 	 	SHELL OFFSHORE INC.

	 	 	SHELL OIL PRODUCTS COMPANY LLC

	 	 	SHELL OIL PRODUCTS LAN LLC

	 	 	SHELL PIPELINE COMPANY LP

	 	 	SHELL SOLAR EMPLOYMENT SERVICES INC.

	 	 	SHELL TECHNOLOGY VENTURES INC.

	 	 	SHELL TRADING GAS AND POWER COMPANY

	 	 	SHELL TRADING GP OVERSEAS SERVICES COMPANY

	 	 	SHELL US GAS & POWER, LLC

	 	 	SHELL TRADING NORTH AMERICA COMPANY

	 	 	SHELL TRADING (US) COMPANY

	 	 	SWEPI LP

	 	 	SHELL WINDENERGY SERVICES INC.

	 	 	SIEP OVERSEAS SERVICES, INC.

	 	 	SPLC SERVICES COMPANY LLC

	 
	 	 	TRUSTEES:

	 
	 	 	T. T. Coles                J. M. Esquivel

	 	 	F. A. Glaviano           S. Hodge

	 	 	               J. D. Hofmeister

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          I,       
                   
                 , DO HEREBY CERTIFY that I am Secretary of the Trustees acting under
the foregoing Shell Pay Deferral Investment Fund Plan Instrument and Trust Agreement dated as of
August 1, 1984, and that the foregoing is a true and correct copy of said Plan Instrument and Trust
Agreement as amended to this date and that the same is now in full force and effect.

          WITNESS, my hand this                      day of                               , 20     .

                                                         
               
Secretary

     Each of the undersigned successor or additional Trustees has hereunto set his hand and seal to
witness his acceptance of the Trust as of the date set forth opposite his name.

	 	 	 
	                                                        

	 	                                                            (L.S.)
	Date
	 	 
	 
	 	 
	                                                        

	 	                                                            (L.S.)
	Date
	 	 
	 
	 	 
	                                                        

	 	                                                            (L.S.)
	Date
	 	 
	 
	 	 
	                                                        

	 	                                                            (L.S.)
	Date
	 	 
	 
	 	 
	                                                        

	 	                                                            (L.S.)
	Date
	 	 
	 
	 	 
	                                                        

	 	                                                            (L.S.)
	Date
	 	 

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