Document:

EX-10.17

 

Exhibit 10.17

THE HARTFORD

INVESTMENT AND SAVINGS PLAN

(As Amended and Restated as of January 1, 2008)

ARTICLE ONE

INTRODUCTION AND PURPOSE

1.1 Introduction. The Hartford Investment and Savings Plan (the “Plan”) was established
effective December 19, 1995 to cover Eligible Employees of The Hartford and Hartford Fire. The
Hartford was spun-off from ITT Corporation effective December 19, 1995. The Plan was amended and
restated effective January 1, 1997. Effective as of the IPO Date, Hartford Life became a publicly
held company, was designated as a Participating Corporation for purposes of the Plan and securities
of Hartford Life were made available for investment under the Plan. Effective as of the Merger
Date, Hartford Life ceased to be a publicly held company due to its merger with a subsidiary of The
Hartford, and its securities ceased to be available for investment under the Plan. Effective April
1, 2002, the Omni Insurance Group 401(k) Retirement Plan was merged into the Plan. Effective July
1, 2003, the Access Coverage Corporation 401(k) Plan was merged into the Plan.

This Plan shall maintain account balances transferred from the ITT Investment and Savings Plan for
Salaried Employees (the “Pre-Distribution ITT Plan”) which had been maintained by Pre-Distribution
ITT through December 18, 1995 for members who became Eligible Employees of Hartford Fire on the
Distribution Date and for certain deferred members whose last services for Pre-Distribution ITT
were performed for an insurance business of Pre-Distribution ITT. Certain of these members, prior
to May 9, 1989, were members in the Investment and Savings Plan for Salaried Employees of Hartford
Fire Insurance Company (the “Hartford Plan”). The Hartford Plan was merged into the
Pre-Distribution ITT Plan effective on May 9, 1989.

Effective November 29, 2001, a portion of this Plan was converted into an employee stock ownership
plan (“ESOP”) within the meaning of Code Section 4975(e)(7). The ESOP is designed to invest
primarily in The Hartford Stock.

Participation in the Plan is available, as set forth herein, to Eligible Employees of The Hartford
and Hartford Fire, Hartford Life, and of such other companies affiliated therewith as may become
participating companies under the Plan. A quarterly statement is sent to each member of the Plan
reflecting the status of his or her Accounts under the Plan as of the end of each calendar quarter.

The Plan is a defined contribution plan under ERISA, and as such is subject to the provisions of
Titles I, II and III, but not Title IV, thereof. Titles I, II and III include requirements for
covered plans governing reporting, disclosure, participation, vesting, fiduciary responsibility and
enforcement. Title IV provides for plan termination insurance by the Federal government’s Pension Benefit Guaranty Corporation.
This insurance does not apply to defined contribution plans such as the Plan.

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State Street Bank, Westwood, Massachusetts, is the Trustee with respect to the Plan.

1.2 Purpose. The purpose of the Plan is to (A) supplement retirement income by
encouraging Eligible Employees to save on a regular and long-term basis; (B) provide Eligible
Employees with ownership of The Hartford securities; (C) provide additional financial resources for
emergencies and financial hardships; and (D) offer Eligible Employees additional incentives to
continue their careers with The Hartford.

1.3 Prospectus. The Plan (as amended) is included as part of the Prospectus.

1.4 Tax Qualification. For purposes of qualification under Section 401(a) of the Internal
Revenue Code, the Plan includes a savings plan portion and a stock bonus portion. Prior to
November 29, 2001, the stock bonus portion consisted of assets related to the leveraged employee
stock ownership plan in effect from 1989 through the Distribution Date under the Pre-Distribution
ITT Plan, and Floor Company Contributions made by The Hartford. Effective November 29, 2001, the
stock bonus portion of the Plan (referred to in this Plan as the “ESOP”) consists of the assets
invested in The Hartford Stock in The Hartford Financial Services Group, Inc. Stock Fund.

1.5 Eligible Employees Serving in the U.S. Armed Services. If an Eligible Employee serves
in the Armed Services of the United States, notwithstanding any provision of the Plan to the
contrary, Plan contributions, benefits and Service credit with respect to qualified military
service will be provided in accordance with Code Section 414(u).

ARTICLE TWO

DEFINITIONS

“Accounts” means, with respect to any Member or Deferred Member, his or her Basic Investment
Account, Supplemental Investment Account, Catch-Up Contributions Account, Company Contribution
Account, Rollover Account and ESOP Account.

“Actual Contribution Percentage” means, effective January 1, 2006, the average of the ratios,
calculated separately for each applicable Employee, of (A) the sum of the After-Tax Savings and
Matching Company Contributions made for the current Plan Year to (B) the Employee’s Compensation
for that Plan Year. Effective November 29, 2001 through December 31, 2005, “Actual Contribution
Percentage” means the average of the ratios, calculated separately for each applicable Employee, of
(A) the sum of the After-Tax Savings other than ESOP Contributions and the Matching Company
Contributions other than ESOP Contributions, made for a Plan Year to (B) the Employee’s
Compensation for the Plan Year or portion of the Plan Year that the Plan includes the ESOP. Each
such Actual Contribution Percentage shall be computed to the nearest one-hundredth of one percent
of the Employee’s Compensation. Notwithstanding the above, the Plan Administrator may elect, on
and after January 1, 2006, to permissively disaggregate the ESOP and non-ESOP portions of the Plan
for purposes of determining Actual Contribution Percentages.

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“Actual Deferral Percentage” means, the average of the ratios, calculated separately for each
applicable Employee, of (A) the amount of Before-Tax and Roth 401(k) Savings made on the Employee’s
behalf for the current Plan Year to (B) the Employee’s Compensation for that Plan Year. Before-Tax
Catch-Up Savings and Roth 401(k) Catch-Up Savings shall be included in determining the Actual
Deferral Percentage to the extent that the Before-Tax and Roth 401(k) Savings are less than the
limitation under Code Section 402(g). Each such Actual Deferral Percentage shall be computed to
the nearest one-hundredth of one percent of the Employee’s Compensation. Notwithstanding the
above, the Plan Administrator may elect, on and after January 1, 2006, to permissively disaggregate
the ESOP and non-ESOP portions of the Plan for purposes of determining Actual Deferral Percentages.

“After-Tax Savings” means savings made by a Member under Section 4.3, and includes both Basic
After-Tax Savings and Supplemental After-Tax Savings.

“Basic After-Tax Investment Account” means that portion of the Trust Fund which, with respect to
any Member or Deferred Member, is attributable to Basic After-Tax Savings and any investment
earnings and gains or losses thereon.

“Basic After-Tax Savings” means the contributions made by a Member which are credited to his or her
Basic After-Tax Investment Account in accordance with Section 4.3(B)(i).

“Basic Before-Tax Investment Account” means that portion of the Trust Fund which, with respect to
any Member or Deferred Member, is attributable to Basic Before-Tax Savings and any investment
earnings and gains or losses thereon.

“Basic Before-Tax Savings” means the contributions made on a Member’s behalf which are credited to
his or her Basic Before-Tax Investment Account in accordance with Section 4.1(B)(i).

“Basic Investment Account” means that portion of the Trust Fund which, with respect to any Member
or Deferred Member, includes his or her Basic Before-Tax Investment Account, Basic Roth 401(k)
Investment Account and Basic After-Tax Investment Account.

“Basic Roth 401(k) Investment Account” means that portion of the Trust Fund which, with respect to
any Member or Deferred Member, is attributable to Basic Roth 401(k) Savings and any investment
earnings and gains or losses thereon.

“Basic Roth 401(k) Savings” means the contributions made on a Member’s behalf which are credited to
his or her Basic Roth 401(k) Investment Account in accordance with Section 4.2(B)(i).

“Basic Savings” means the Basic After-Tax Savings contributed by a Member and the Basic Before-Tax
Savings and Basic Roth 401(k) Savings contributed on a Member’s behalf.

“Before-Tax Catch-Up Contributions Account” means that portion of the Trust Fund which, with
respect to any Member or Deferred Member, is attributable to Before-Tax Catch-Up Savings made on
and after January 1, 2006, and any investment earnings and gains or losses thereon.

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“Before-Tax Catch-Up Savings” means contributions made on a Member’s behalf which are credited to
his or her Supplemental Before-Tax Investment Account for periods prior to January 1, 2006, and
which are credited to his or her Before-Tax Catch-Up Contributions Account for periods on and after
January 1, 2006, in accordance with Section 4.1(C).

“Before-Tax Savings” means savings made by a Member under Section 4.1 (other than Before-Tax
Catch-Up Savings made on and after January 1, 2006), and includes both Basic Before-Tax Savings and
Supplemental Before-Tax Savings (including Before-Tax Catch-Up Savings made prior to January 1,
2006).

“Beneficiary” means such beneficiary or beneficiaries as may be designated from time to time by the
Member or Deferred Member, on a form provided by the Plan Administrator for such purpose, to
receive, in the event of the Member’s or Deferred Member’s death, the value of his or her Accounts
at the time of death. Except as hereinafter provided, in the case of a Member or Deferred Member
who is married, the Beneficiary shall be the Member’s or Deferred Member’s spouse, unless such
spouse consents, in writing, on a form witnessed by a notary public to the designation of another
person as Beneficiary. In the case of a Member or Deferred Member who incurs a divorce under
applicable State law prior to commencing benefits under the Plan, such Member’s or Deferred
Member’s designation of Beneficiary shall remain valid unless otherwise provided in a qualified
domestic relations order (as described in Article Twelve of the Plan) or unless such Member or
Deferred Member changes his or her Beneficiary or is subsequently remarried.

“Board of Directors” means the Board of Directors of Hartford Fire Insurance Company or of any
successor, by merger, purchase or otherwise.

“Break in Service” shall mean the 12 consecutive month period commencing on the Severance from
Service date during which an Employee does not have any Hours Worked. Severance from Service shall
mean the earlier of (a) the date on which an Eligible Employee quits, retires, is discharged or
dies; or (b) the first anniversary of the first date of a period in which he or she remains absent
from Service (with or without pay) for any reason other than quit, retirement, discharge or death,
such as vacation, holiday, sickness, disability, leave of absence or layoff. If Service is
interrupted for maternity or paternity reasons addressed in the definition of Service, then the
date of Severance from Service shall be the earlier of (a) the date he or she quits, is discharged,
retires or dies, or (b) the second anniversary of the date on which he or she is first absent from
Service, as provided in such Service definition.

“Code” means the Internal Revenue Code of 1986, as amended from time to time. References to any
section of the Code shall include any successor provision thereto.

“Company” means The Hartford and Hartford Fire, as constituted on the Distribution Date, or any
successor, by merger, purchase or otherwise with respect to their Eligible Employees, any
Participating Division with respect to its Eligible Employees and any Participating Corporation
(including Planco Financial Services, LLC) with respect to its Eligible Employees.

“Company Contributions” means Matching Company Contributions and Floor Company Contributions made
under Article Five, and Matching Company Contributions made before 1990 under

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the Pre-Distribution ITT Plan. Prior to January 1, 2006, no Company Contributions shall be made
with respect to Employees of Planco Financial Services, Inc.

“Company Contribution Account” means that portion of the Trust Fund which, with respect to any
Member or Deferred Member, is attributable to (A) Matching Company Contributions made under Article
Five, (B) Floor Company Contributions made under Article Five, (C) Matching Company Contributions
made for periods before 1990 under the Pre-Distribution ITT Plan, (D) any contributions and
investment earnings thereon made on his or her behalf and transferred to the Trust Fund pursuant to
a Prior Plan Transfer, and (E) any investment earnings and gains or losses on any of the
aforementioned amounts.

“Compensation” means total wages and other compensation paid to or for the Member as reported on
the Member’s Form W-2, Wage and Tax Statement, plus elective contributions under Code Sections
401(k), 414(v), 132(f)(4) and 125, provided that for purposes of Section 6.3, Compensation means
Compensation as defined in Code Section 415(c)(3), including elective contributions under Code
Sections 401(k), 414(v), 132(f)(4) and 125.

In addition to other applicable limitations set forth in the Plan, and notwithstanding any other
provision of the Plan to the contrary, the annual compensation of each Member taken into account
under the Plan shall not exceed the OBRA ‘93 annual compensation limit, such compensation to be
measured for each individual from the beginning of each calendar year, regardless of whether such
individual has become a Member pursuant to Article Three or elects to contribute Savings under
Article Four. The OBRA ‘93 annual compensation limit is $200,000 beginning January 1, 2003, as
adjusted by the Secretary of the Treasury to reflect cost-of-living adjustments in accordance with
Code Section 401(a)(17)(B). The cost-of-living adjustment in effect for a calendar year applies to
any period, not exceeding 12 months, over which compensation is determined beginning in such
calendar year.

Any reference in this Plan to the limitation under Code Section 401(a)(17) means the OBRA ‘93
annual compensation limit set forth in this provision.

“Deferred Member” means (A) a Member who has terminated employment with the Company and whose
Vested Share will be deferred in accordance with Article Eleven, (B) the spouse Beneficiary or
Non-Spouse Beneficiary of a deceased Member or Deferred Member, or (C) an alternate payee
designated as such pursuant to a domestic relations order as qualified by the Plan.

“Disability” means, with respect to a Member, the total disability of such Member that results in
the Member qualifying for benefits under the Hartford Fire Insurance Company Long Term Disability
Plan for salaried Employees or a similar disability plan sponsored by the Company. If a Member
qualifies for benefits under such plan, then he or she shall be deemed to be totally disabled as
determined by the insurance company that administers such plan. If a Member does not qualify for
benefits under such plans, then he or she shall be deemed to be totally disabled if his or her
disability meets the definition of total disability set forth in such a plan, as determined by the
applicable Plan Committee. For purposes of this Plan, the effective date of disability shall be the
later of the date of disability as defined in the applicable disability plan or the date on which
the applicable insurance company issues its determination of total disability. If a Member is
deemed to be totally disabled as provided herein, he or

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she shall also be deemed to have incurred a Termination of Employment with the Company and its affiliated
corporations as of such date.

“Distribution Date” means December 19, 1995.

“Effective Date” means the Distribution Date with respect to those Participating Corporations and
Participating Divisions that began their participation in the Plan on such date; “Effective Date”
with respect to any other Participating Corporation or Participating Division shall mean the date
as of which such Participating Corporation or Participating Division begins its participation in
the Plan. The Pre-Distribution ITT Plan was originally effective as of April 1, 1974. Hartford
Life was designated as a Participating Corporation effective as of the IPO Date.

“Eligible Employee” means an Employee employed by the Company; provided, however, that except as
the Board of Directors or the Pension Administration Committee, pursuant to authority delegated by
the Board of Directors, may otherwise provide on a basis uniformly applicable to all persons
similarly situated, “Eligible Employee” shall not include any “Ineligible Person,” which means all
of the following:

(A) a person who is covered for current service under a retirement plan of the
Company or any of its affiliated Companies other than the Hartford Fire Insurance
Company Retirement Plan for U.S. Employees, or any other Plan specified by the Board
of Directors from time to time, or

(B) a person whose terms and conditions of employment are determined by a collective
bargaining agreement with the Company which does not make this Plan applicable to him
or her, or

(C) a person who is eligible for participation in any of the following plans being
maintained by certain Canadian affiliates of the Company: the Hartford Fire
Insurance Company Retirement Savings Plan, the Hartford Fire Insurance Company
Deferred Profit Sharing Plan, and the Hartford Fire Insurance Company Employee Profit
Sharing Plan or any successor to the foregoing plans, or

(D) prior to January 1, 2006, a person who is an employee of Planco Financial
Services, Inc., other than a regular hourly or salaried full-time or part-time
commissioned wholesaler or a regular hourly or salaried full-time or part-time
administrative assistant to such a wholesaler, or

(E) a person who is a leased employee (within the meaning of Code Section 414(n)(2))
of the Company or is otherwise employed through a temporary help firm, technical help
firm, staffing firm, employee leasing firm, or professional employer organization,
regardless of whether such person is an Employee of the Company, or

(F) A person who performs services for the Company as an independent contractor or
under any other non-employee classification, or who is classified by the Company as,
or determined by the Company to be, an independent contractor, regardless of whether such

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person is characterized or ultimately determined by the Internal Revenue Service or
any other Federal, State or local government authority or regulatory body to be an
employee of the Company or its affiliates for income or wage tax purposes or for any
other purpose.

Notwithstanding any provision in the Plan to the contrary, if any person is an Ineligible Person,
or otherwise does not qualify as an Eligible Employee, or otherwise is ineligible to participate in
the Plan, and such individual is later required by a court or governmental authority or regulatory
body to be classified as a person who is eligible to participate in the Plan, such person shall not
be eligible to participate in the Plan, notwithstanding such classification, unless and until
designated as an Eligible Employee by the Plan Administrator, and if so designated, the
participation of such person in the Plan shall be prospective only.

Further, in addition to the foregoing, to the extent that any particular individual is excluded
from participation in the Plan for one of the reasons set forth above or any other reason, and such
individual is later required by a court or governmental authority or regulatory body to be allowed
to participate in the plan for past or future periods because such exclusion is found to be
improper, such person shall, to the extent such person would have met the applicable Internal
Revenue Code definition of “highly compensated employee,” “highly compensated individual,” or “less
than 1, 000 hours employee” for any part of such periods, be deemed to have been excluded from the
Plan for such periods (including past, present and future periods), and shall continue to be
excluded from the Plan for such periods (including past, present and future periods), for the
independent reason that such person qualified and/or qualifies as a “highly compensated employee,”
a “highly compensated individual,” or a “less than 1,000 hours employee,” as applicable, who
properly may be excluded from participation in the Plan.

“Employee” shall mean any person regularly employed by the Company but shall not include any person
who performs services for the Company as an independent contractor or under any other non-employee
classification, or who is classified by the Company as, or determined by the Company to be, an
independent contractor.

“Enrollment Date” means the first day of any payroll period that begins on or after the date an
Eligible Employee satisfies the membership requirements set forth in Article Three.

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

“ESOP” means the portion of the Plan that consists of assets invested in The Hartford Stock in The
Hartford Financial Services Group, Inc. Stock Fund at any time on and after November 29, 2001.

“ESOP Account” means that portion of the Trust Fund which, with respect to any Member or Deferred
Member, is attributable to allocations made under the employee stock ownership plan portion of the
Pre-Distribution ITT Plan.

“ESOP Actual Contribution Percentage” means, for Plan Years prior to 2006, the average of the
ratios, calculated separately for each applicable Employee, of (A) the sum of the After-Tax Savings
that are ESOP Contributions and the Matching Company Contributions that are ESOP Contributions,
made for a Plan Year to (B) the Employee’s Compensation for the Plan Year or portion of the Plan Year
that the Plan includes the ESOP. Each such ESOP Actual Contribution Percentage shall be computed
to the

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nearest one-hundredth of one percent of the Employee’s Compensation. Effective December 31,
2001, this test is performed using the current year testing method.

“ESOP Actual Deferral Percentage” means, for Plan Years prior to 2006, the average of the ratios,
calculated separately for each applicable Employee, of (A) the amounts of Before-Tax Savings that
are ESOP Contributions made on the Employee’s behalf for a Plan Year to (B) the Employee’s
Compensation for the Plan Year or portion of the Plan Year that the Plan includes the ESOP. Each
such ESOP Actual Deferral Percentage shall be computed to the nearest one-hundredth of one percent
of the Employee’s Compensation. Effective December 31, 2001, this test is performed using the
current year testing method.

“ESOP Contribution” means a contribution or contributions to the Plan made on or after November 29,
2001, with respect to the Member’s Before-Tax Savings, After-Tax Savings, Roth 401(k) Savings or
Catch-Up Savings, or Company Contributions made as Matching Company Contributions or Floor Company
Contributions, that are made in The Hartford Stock or made in cash and immediately invested in The
Hartford Stock in The Hartford Financial Services Group, Inc. Stock Fund.

“Floor Company Contribution” means a contribution made on or after the Distribution Date pursuant
to Section 5.2. Prior to January 1, 2006, no Floor Company Contributions shall be made with
respect to Employees of Planco Financial Services, Inc.

“Hardship Committee” means the Hardship Committee established hereunder for the purposes set forth
in Article Sixteen.

“Hartford Fire” means Hartford Fire Insurance Company or a successor by merger, purchase or
otherwise with respect to its Employees. Hartford Fire is the sponsor of the Plan.

“Hartford Fire Plan” means the Investment and Savings Plan of Hartford Fire Insurance Company as in
effect on May 8, 1989.

“Hartford Life” means Hartford Life, Inc. (a Delaware corporation), as constituted on the IPO Date,
and Hartford Life and Accident Insurance Company, or a successor of either of the foregoing by
merger, purchase or otherwise with respect to their Employees, both of which are affiliated with
The Hartford, and with Hartford Fire, the sponsor of this Plan.

“Highly Compensated Member” shall mean, with respect to any Plan Year, any Member who (A) in the
Plan Year or the immediately preceding Plan Year was a five percent owner, or (B) in the
immediately preceding Plan Year earned annual Compensation from the Company or an affiliated
company which exceeds a dollar amount that is indexed annually and is determined pursuant to Code
Section 414(q)(1)(B), which amount shall be adjusted at the same time and in the same manner as the
dollar limit on benefits under a defined benefit plan is adjusted pursuant to Code Section 415(d).

“Hours Worked” means hours for which an Employee is compensated whether or not he or she has
worked, such as paid holidays, paid vacation, paid sick leave and paid time off, and back pay for
the period for which it was awarded, and each such hour shall be computed as only one hour, even
though he or she is compensated at more than the straight time rate. With respect to any period for
which an

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Employee is compensated but has not worked, hours counted shall be included on the basis
of the Employee’s normal work-day or work-week. This definition of Hours Worked shall be applied in
compliance with 29 Code of Federal Regulations Section 2530.200b-2(b) and (c), as promulgated by
the United States Department of Labor, in a consistent and nondiscriminatory manner.

“Investment and Savings Plan Investment Committee” means the Committee established hereunder for
the purposes of managing the investment of Plan assets as set forth in Article Fifteen.

“Investment Funds” means the funds approved by the Investment and Savings Plan Investment Committee
from time to time, in which contributions permitted by the Plan may be invested.

“IPO” means the initial public offerings of Hartford Life Stock.

“IPO Date” means May 22, 1997, the date of consummation of the IPO.

“IRS” means the Federal Internal Revenue Service.

“Limitation Year” means the calendar year.

“Loan Valuation Date” means the business day on which a Member’s properly completed application for
a loan under the Plan is made in the form or manner required by the Plan Administrator.

“Matching Company Contribution” means a contribution made pursuant to Section 5.1. Prior to
January 1, 2006, no Matching Company Contributions shall be made with respect to Employees of
Planco Financial Services, Inc.

“Member” shall mean any person who has become a Member as provided in Article Three.

“Merger Date” means June 27, 2000, the date of consummation of the merger between Hartford Life and
a wholly owned subsidiary of The Hartford, pursuant to which Hartford Life became a wholly owned
subsidiary of The Hartford.

“Non-Spouse Beneficiary” means a Beneficiary who is not the spouse of the Member or Deferred
Member.

“Participating Corporation” means any affiliate of Hartford Fire which, by action of the Board of
Directors (or by an officer of Hartford Fire under authority delegated by the Board of Directors)
has been designated as a Participating Corporation in the Plan as to all of its Employees, or as to
the Employees of one or more of its operating or other units, and whose Board of Directors has
adopted this Plan.

“Participating Division” means any division or unit of Hartford Fire or an affiliate of Hartford
Fire which, by action of the Board of Directors (or by an officer of Hartford Fire under authority
delegated by the Board of Directors) has been designated as a Participating Division or Unit in
this Plan as to all of its Employees, or as to the employees of one or more of its operating
subdivisions or other sub-units,

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and in the case of a division or unit of an affiliate of Hartford
Fire, the Board of Directors of such affiliate has adopted this Plan on behalf of such division or
unit.

“Pension Administration Committee” means the Committee established hereunder for the purposes of
administering the Plan as provided in Article Fourteen.

“Plan” means The Hartford Investment and Savings Plan, as set forth herein or as amended from time
to time.

“Plan Administrator” means the administrator for the Plan as provided in Article Fourteen at its
offices at Hartford Plaza, Hartford, CT 06115.

“Plan Year” means the calendar year.

“Pre-Distribution ITT” means ITT Corporation (a Delaware corporation), as constituted on the day
before the Distribution Date.

“Pre-Distribution ITT Plan” means the ITT Investment and Savings Plan For Salaried Employees, as in
effect on the day before the Distribution Date.

“Principal Employment Date” means the first day of the first payroll period following the date a
person becomes principally employed by the Company.

“Prior Plan Transfer” means that portion of a Company Contribution Account or Supplemental
Investment Account that is attributable to amounts transferred from the trust of a qualified profit
sharing or other defined contribution plan previously in effect at a Participating Corporation or
Participating Division to the extent permitted by Article Four.

“QDRO” means an order determined to be a qualified domestic relations order under Article Twelve.

“Retirement” means:

	 	(A)	 	Certain Members Hired Before 2001. Solely with respect
to a Member with an original hire date with the Company before January 1, 2001
who: (i) is covered in whole or in part under the final average pay formula of
the Retirement Plan, or (ii) is not eligible for coverage under the Retirement
Plan, “Retirement” shall mean satisfaction of the requirements for early or
normal retirement under the final average pay formula of the Retirement Plan
(assuming such Member were covered under the final average pay formula of the
Retirement Plan), provided such event results in such Member’s separation from
the employment of the Company; or
	 
	 	(B)	 	Certain Members Hired During 2001. Solely with respect
to a Member with an original hire date with the Company on or after January 1,
2001 but before January 1, 2002 who: (i) is covered under the cash balance
formula of the Retirement Plan, or (ii) is not eligible for coverage under the
Retirement Plan, “Retirement” shall mean satisfaction of the requirements for
early or normal retirement under the final

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	 	 	 	average pay formula of the Retirement
Plan (assuming such Member were covered under the final average pay formula of
the Retirement Plan), provided such event results in such Member’s separation
from the employment of the Company; or
	 
	 	(C)	 	Certain Members Hired During 2002 or Later. Solely with
respect to a Member with an original hire date with the Company on or after
January 1, 2002 who: (i) is covered under the cash balance formula of the
Retirement Plan, or (ii) is not eligible for coverage under the Retirement Plan,
“Retirement” shall mean, solely for purposes of this Plan, separation from the
employment of the Company on or after reaching age 65.

“Retirement Plan” means The Hartford Retirement Plan for U.S. Employees, as it may be amended from
time to time.

“Rollover Account” means the portion of the Trust Fund which, with respect to a Member or Deferred
Member, is attributable to Rollover Contributions and any investment earnings and gains or losses
thereon.

“Rollovers” means the rollover contributions permitted by Article Four.

“Roth 401(k) Savings” means savings made by a Member under Section 4.2, and includes both Basic
Roth 401(k) Savings and Supplemental Roth 401(k) Savings.

“Roth 401(k) Catch-Up Contributions Account” means that portion of the Trust Fund which, with
respect to any Member or Deferred Member, is attributable to Roth 401(k) Catch-Up Savings, and any
investment earnings and gains or losses thereon.

“Roth 401(k) Catch-Up Savings” means contributions made on a Member’s behalf which are credited to
his or her Roth 401(k) Catch-Up Contributions Account in accordance with Section 4.2(C).

“Salary” means an Eligible Employee’s compensation from the Company at his or her base rate,
including any payments made on account of such Eligible Employee’s short-term disability under The
Hartford Income Protection Plan, excluding any compensation deferred under a deferred compensation
plan, and determined before any election by the Member pursuant to Section 4.1(A) or (C) or 4.2(A)
or (C) hereof and before any election by the Member under Code Sections 125 and 132(f)(4),
excluding any overtime, bonus, foreign service allowance or any other form of compensation, except
to the extent otherwise deemed “Salary” for purposes of the Plan under such nondiscriminatory rules
as may be adopted by the Pension Administration Committee with respect to all Members or any
particular Participating Company or Participating Division. Salary shall not include severance pay
or accrued vacation pay that is paid upon termination of employment. Sales incentive payments and
lump summerit increases shall be included in Salary for purposes of the Plan to the extent they are
designated as being so included by the Plan Administrator. Effective from January 1, 2005, Salary
shall include rehabilitation pay from the Company paid to a recipient of long term disability
benefits.

In addition to other applicable limitations set forth in the Plan, and notwithstanding any other
provision of the Plan to the contrary, the annual salary of each Member taken into account under
the Plan shall not

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exceed the OBRA ‘93 annual compensation limit, such compensation to be measured
for each individual from the beginning of each calendar year, regardless of whether such individual
has become a Member pursuant to Article Three or elects to contribute Savings under Article Four.
The OBRA ‘93 annual compensation limit is $200,000 beginning January 1, 2003, as adjusted by the
Secretary of the Treasury to reflect cost-of-living adjustments in accordance with Code Section
401(a)(17)(B) ($230,000 effective as of January 1, 2008). The cost-of-living adjustment in effect
for a calendar year applies to any period, not exceeding 12 months, over which salary is determined
beginning in such calendar year. Any reference in this Plan to the limitation under Code Section
401(a)(17) shall mean the OBRA ‘93 annual compensation limit set forth in this provision.

“Savings” means Before-Tax Savings, Roth 401(k) Savings, After-Tax Savings and Before-Tax Catch-Up
and Roth 401(k) Catch-Up Savings permitted under Article Four.

“Service”, subject to Section 3.6, means the period of elapsed time beginning on the date a person
becomes an Eligible Employee of the Company or any subsidiary, affiliate or predecessor of the
Company, and ending on his or her most recent severance date, which shall be the earlier of (A) the
date he or she quits, is discharged, retires or dies or (B) the first anniversary of the date on
which he or she is first absent from service, with or without pay, for any reason such as vacation,
sickness, disability, layoff or leave of absence. If Service is interrupted for maternity or
paternity reasons, meaning an interruption of Service by reason of (i) the pregnancy of the
Eligible Employee, (ii) the birth of a child of the Eligible Employee or (iii) the placement of a
child with the Eligible Employee by reason of adoption, or for purposes of caring for a newborn
child of the Eligible Employee immediately following the birth or adoption of the newborn, then the
date of severance from Service shall be the earlier of (a) the date he or she quits, is discharged,
retires or dies, or (b) the second anniversary of the date on which he or she is first absent from
service. If an Eligible Employee terminates and is later reemployed within 12 months of (I) his or
her date of termination or (II), with respect to an individual who does not complete an Hour Worked
as an Eligible Employee on or after January 1, 2006, the first day of an absence from service
immediately preceding his or her date of termination, if earlier, the period between his or her
severance date and his or her date of reemployment shall be included in his or her Service. With
respect to Service for purposes of the vesting schedule in Section 5.3, if an Eligible Employee
terminates and is later reemployed after 12 or more months have elapsed since his or her severance
date, the period of service prior to his or her severance date shall be included in his or her
Service.

Under the circumstances hereinafter stated and upon such conditions as the Pension Administration
Committee shall determine on a basis uniformly applicable to all Employees similarly situated, the
period of Service of an Eligible Employee shall be deemed not to be interrupted by an absence of
the type hereinafter stated and the period of such absence shall be included in determining the
length of an Eligible Employee’s Service if a leave of absence has been authorized by the Company
or any affiliate of the Company (for the period of such authorized leave of absence only), or if an
Eligible Employee enters
service in the armed forces of the United States and his or her right to reemployment is protected
by the Selective Service Act or any similar law then in effect, and the Eligible Employee returns
to regular employment within the period during which the right to reemployment is protected by any
such law.

As provided in Section 3.5, periods of employment with Pre-Distribution ITT prior to the
Distribution Date shall be treated as periods of employment with The Hartford and Hartford Fire.

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Periods of employment by an Eligible Employee with The Prudential Insurance Company of America (the
“Prudential”) in its AARP Operations Division prior to June 1, 1997 shall be treated as periods of
employment with the Company so long as such Eligible Employee becomes employed by the Company
during June, 1997 in accordance with and under the terms of the AARP GHIP Management Agreement
dated February 26, 1997 immediately following employment with the Prudential. Periods of
employment by any Employee with United HealthCare Insurance Company during the period June 1, 1997
through December 31, 1997 shall be treated as periods of employment with the Company so long as
such Eligible Employee becomes employed by the Company during 1997 in accordance with and under the
terms of the AARP GHIP Management Agreement dated February 26, 1997 immediately following
employment with United HealthCare Insurance Company, if such employment with United HealthCare
Insurance Company immediately followed employment with the Prudential in its AARP Operations
Division.

Periods of employment by an Eligible Employee with Omni Insurance Company (“Omni”) prior to January
1, 2002 shall be treated as periods of employment with the Company so long as such Eligible
Employee remained employed by Omni on December 31, 2001 and became employed by the Company on
January 1, 2002.

Periods of employment by an Eligible Employee with Fortis, Inc. and applicable subsidiaries
(collectively, “Fortis”) prior to April 1, 2001 shall be treated as periods of employment with the
Company so long as such Eligible Employee remained employed by Fortis on March 30, 2001 and became
employed by the Company on April 1, 2001.

Periods of employment by an Eligible Employee with Access Coverage Corporation (“Access”) prior to
November 5, 2001 shall be treated as periods of employment with the Company so long as such
Eligible Employee remained employed by Access on November 4, 2001 and became employed by the
Company on November 5, 2001.

Service prior to January 1, 2004 with Planco Financial Services, Inc. or Planco, Incorporated as a
commissioned wholesaler or administrative assistant to such a wholesaler shall be treated as
Service for an individual who became an Eligible Employee of Planco Financial Services, Inc. on
January 1, 2004.

Eligible Employees who commence employment with the Company on or after January 1, 2007 in
connection with the acquisition of a business by the Company, shall be credited with periods of
employment under the Plan for periods of employment with the acquired business to the extent so
provided by the Plan Administrator.

For an individual who completes an Hour Worked as an Eligible Employee on or after January 1, 2006,
service as a leased employee, within the meaning of Code Section 414(n)(2), shall be taken into
account solely to the extent provided by Code Section 414(n).

“Supplemental After-Tax Investment Account” means the portion of the Trust Fund that is
attributable to Supplemental After-Tax Savings and any investment earnings and gains or losses
thereon.

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“Supplemental After-Tax Savings” means contributions credited to the Supplemental After-Tax
Investment Account under Section 4.3(B)(ii) or pursuant to a Prior Plan Transfer.

“Supplemental Before-Tax Investment Account” means the portion of the Trust Fund attributable to
Supplemental Before-Tax Savings and any investment earnings and gains or losses thereon.

“Supplemental Before-Tax Savings” means contributions credited to the Supplemental Before-Tax
Investment Account under Section 4.1(B)(ii), under Section 4.1(C) with respect to periods prior to
January 1, 2006, or pursuant to a Prior Plan Transfer.

“Supplemental Investment Account” means the portion of the Trust Fund that includes the
Supplemental Before-Tax Investment Account, the Supplemental Roth 401(k) Investment Account and the
Supplemental After-Tax Investment Account.

“Supplemental Roth 401(k) Investment Account” means the portion of the Trust Fund attributable to
Supplemental Roth 401(k) Savings and any investment earnings and gains or losses thereon.

“Supplemental Roth 401(k) Savings” means contributions credited to the Supplemental Roth 401(k)
Investment Account under Section 4.2(B)(ii) or pursuant to a Prior Plan Transfer.

“Supplemental Savings” means Supplemental Before-Tax Savings, Supplemental Roth 401(k) Savings and
Supplemental After-Tax Savings contributed under Article Four, as well as Supplemental Before-Tax
and After-Tax Savings made pursuant to a Prior Plan Transfer.

“Termination of Employment” means a voluntary or involuntary separation from employment with the
Company for any reason, including, but not limited to, Retirement, death, Disability, resignation
or dismissal by the Company, but shall not include a transfer in employment between the Company and
any other Participating Corporation. With respect to any leave of absence and any period of
service in the armed forces of the United States, the rules contained in the definition of Service
contained in the Plan shall apply.

“The Hartford” means The Hartford Financial Services Group, Inc. (a Delaware corporation), which is
affiliated with Hartford Fire (the sponsor of the Plan).

“The Hartford Stock” means common stock of The Hartford Financial Services Group Inc., par value
$.01 per share.

“Trust Fund” means the aggregate funds held by the Trustee under the trust agreement or agreements
established for the purposes of this Plan or the aggregate funds held under an insurance contract
or contracts established with The Hartford or its affiliates, consisting of the funds described in
Article Eight.

“Trustee” means the Trustee at any time acting as such under the trust agreement established for
the purposes of the Plan.

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“Valuation Date” means the day the Trust Fund is valued for a particular purpose in accordance with
Article Eight.

“Vested Company Contribution Account” means the portion of a Company Contribution Account that is
vested under Article Five.

“Vested Share” means the portion of Accounts that vested under Articles Four and Five.

“Withdrawal Valuation Date” means (A) for non-hardship withdrawals under Section 10.1, the
business day that the Plan Administrator or designee receives the request for such a withdrawal
(which request must be made in the manner and by the date required by the Plan Administrator), or
(B) for hardship withdrawals under Section 10.2, the business day that the Hardship Committee or
designee receives the request for such a withdrawal (which request must be made in the manner and
by the date required by the Plan Administrator).

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ARTICLE THREE

MEMBERSHIP

3.1. Eligibility for Membership. Effective January 1, 2006, an Eligible Employee who has
attained age 18 shall be immediately eligible to be a Member for purposes of making contributions
to the Plan described in Article III and Article IV of the Plan.

3.2. Becoming a Member by Making an Enrollment Election. An Eligible Employee who is
eligible to become a Member shall become a Member by making an enrollment election before an
Enrollment Date and in the manner and by the time required by the Plan Administrator. By making an
enrollment election, the Eligible Employee: (A) designates the rate of his or her After-Tax
Savings, (B) authorizes the Company to make regular payroll deductions of the amount of his or her
After-Tax Savings, if any, (C) designates the rate of his or her Before-Tax Savings, Roth 401(k)
Savings and any Before-Tax Catch-Up and Roth 401(k) Catch-Up Savings, (D) authorizes the Company to
reduce his or her Salary by the amount of his or her Before-Tax Savings and/or Roth 401(k) Savings
and Before-Tax Catch-Up and/or Roth 401(k) Catch-Up Savings, if any, (E) makes an investment
election as described in Article Seven, (F) designates a beneficiary for his or her Accounts, and
(G) makes a dividend election as described in Section 7.6, if applicable.

3.3 Failure to Make Proper Enrollment Election. In the case of an Eligible Employee who
is hired on or after January 1, 2008, who is eligible to become a Member but does not make a proper
enrollment election, such Eligible Employee shall automatically become a Member hereunder 60 days
after the date such Eligible Employee is eligible to become a Member (or as soon as practicable
thereafter). Such Eligible Employee shall be deemed to have made elections to: (A) designate a 3%
rate of Before-Tax Savings, (B) designate a zero rate of After-Tax Savings, (C) designate a zero
rate of Roth 401(k) Savings, (D) designate, if eligible, a zero rate of Before-Tax Catch-Up Savings
and Roth 401(k) Catch-Up Savings, (E) invest his or her Savings in the applicable Default Vanguard
Target Retirement Fund set forth in Section 8.3(G), and (F) designate his or her Spouse as
Beneficiary hereunder if such Member is married, and to designate his or her estate as Beneficiary
hereunder if such Member is unmarried. Such an Eligible Employee may elect to change such deemed
elections as permitted by the Plan.

Upon completion of six months of Service, such an Eligible Employee shall be entitled to Floor
Company Contributions under the Plan as of such date.

3.4 Automatic Increase Program. Unless he or she elects otherwise, a Member who is
automatically enrolled in the Plan in accordance with Section 3.3 will have his or her rate of
Before-Tax Savings increased by one percent each April 1st; provided that as of April
1st, it has been at least six months since the date the Member was automatically
enrolled in the Plan. Such increased rate will not exceed 10% of such Member’s Salary or cause the
Member’s Before-Tax Savings to exceed any Plan limits or limits imposed by the IRS. This election
can be made in the manner and by the time required by the Plan Administrator.

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Members who are not automatically enrolled in the Plan may elect to have their rate of Before-Tax
Savings automatically increased by a percentage they elect (up to 10%) on April 1st of
each year, or another date they may choose, up to the Plan limit or limits imposed by the IRS.

3.5 Pre-Distribution ITT Plan Participants: Continuity of Membership, Service and Incidents
of Participation. Each person who was a “Member” or “Deferred Member” under the
Pre-Distribution ITT Plan on the day before the Distribution Date, and whose Accounts were
transferred to this Plan, shall be a Member or Deferred Member under this Plan as of the
Distribution Date. The Service of such Members or Deferred Members while employed by
Pre-Distribution ITT before the Distribution Date shall be treated as service with Hartford Fire
under this Plan, except as specifically provided to the contrary in this Plan. All incidents of
participation with respect to such Members or Deferred Members under the Pre-Distribution ITT Plan
for periods before the Distribution Date, including any elections or designations in effect on the
day before the Distribution Date, shall be taken into account for purposes of this Plan, except as
specifically provided herein to the contrary.

3.6. Rehired Members.

(A) Rehired Members Who Make Proper Enrollment Elections. Any rehired
Eligible Employee who at the time of Termination of Employment was a Member of this
Plan or of the Pre-Distribution ITT Plan will again become a Member as of the first
available payroll cycle following the date of such Eligible Employee’s rehire (the
“Re-Enrollment Date”), provided that the Eligible Employee makes a proper enrollment
election under this Article Three.

(B) Rehired Members Who Do Not Make Proper Enrollment Elections. In the case
of a rehired Eligible Employee who was a Member at the time of Termination of
Employment, and who does not make a proper enrollment election with respect to the
Re-Enrollment Date, such Eligible Employee shall automatically become a Member as of
the first available payroll cycle following the Re-Enrollment Date (or as soon as
practicable thereafter). Such a Member shall be entitled to Floor Company
Contributions under the Plan as of such date, and shall be deemed to have made
elections to: (i) designate a zero rate of After-Tax Savings, (ii) designate a zero
rate of Before-Tax Savings and Roth 401(k) Savings, (iii) designate, if eligible, a
zero rate of Before-Tax Catch-Up Savings and Roth 401(k) Catch-Up Savings and (iv)
designate his or her Spouse as Beneficiary hereunder if such Member is married, and
if not married, to designate his or her estate as Beneficiary hereunder. Such an
Eligible Employee may change such deemed elections as permitted by the Plan.

3.7. Transfers between the Company and Associated Companies. Effective January 1, 2004, if
an employee is transferred from employment with an Associated Company to employment with the
Company, for purposes of eligibility to become a Member and receive Matching Company Contributions
and Floor Company Contributions, and for purposes of vesting, his or her service with the
Associated Company shall be taken into consideration as “Service” under this Plan. For purposes of
this Section, “Associated Company” shall mean any division, subsidiary or affiliated company of the

-17-

 

Company not participating in this Plan as a Participating Corporation or a Participating Division
which is (a) a component member of a controlled group of corporations (as defined in Section 414(b)
of the Code) which includes the Company, (b) any trade or business (whether or not incorporated)
which is under common control (as defined in Section 414(c) of the Code) with the Company, (c) any
organization (whether or not incorporated) which is a member of an affiliated service group (as
defined in Section 414(m) of the Code) which includes the Company or (d) any other entity required
to be aggregated with the Company pursuant to regulations under Code Section 414(o), during the
period it is a division, subsidiary or affiliated company of the Company or during such period as
may otherwise be determined by the Board of Directors or the Pension Administration Committee.

If an Eligible Employee is transferred from employment with the Company to employment with an
Associated Company, he will not have a Termination of Employment for purposes of this Plan until
such time as he is employed neither by the Company nor by an Associated Company. During any such
period of employment, such employee will be credited with Service. In no event, however, will such
an employee be deemed eligible for contributions to the Plan during any such period of employment.

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ARTICLE FOUR

MEMBER CONTRIBUTIONS

4.1. Member Before-Tax Savings.

(A) Salary Reduction Election for Before-Tax Savings. A Member may elect,
subject to the IRS limits described in Article Six and any other Plan limits, to have
his or her Salary reduced (by payroll deduction) by a whole percent not exceeding
30%, and to have that amount contributed to the Trust Fund as Before-Tax Savings.
Such election shall be made in the manner and by the date required by the Plan
Administrator, and shall be effective with the next payroll paid after the election
(or as soon as practicable thereafter). A Member’s election shall continue to apply
notwithstanding a change in his or her principal employer from one Participating
Corporation to another Participating Corporation, unless the Member changes or
suspends his or her Salary reduction rate or savings as permitted by the Plan. The
Plan Administrator may establish a separate limit on the percentage of Salary that a
Highly Compensated Member may contribute to the Trust Fund as Before-Tax Savings.

(B) Types of Before-Tax Savings; Crediting of Before-Tax Savings to
Accounts.

(i) Basic Before-Tax Savings. Before-Tax Savings that do not exceed 6% of a
Member’s Salary for the period during which such contributions are made shall
be known as “Basic Before-Tax Savings,” and shall be credited to the Member’s
Basic Before-Tax Investment Account.

(ii) Supplemental Before-Tax Savings. Before-Tax Savings that exceed the
maximum allowed under the preceding paragraph shall be known as “Supplemental
Before-Tax Savings,” and shall be credited to a Member’s Supplemental
Before-Tax Investment Account. Supplemental Before-Tax Savings may also
include Catch-Up Savings made prior to January 1, 2006 and amounts credited on
a Member’s behalf pursuant to a Prior Plan Transfer.

(C) Before-Tax Catch-Up Savings. All Members who are eligible to make
Before-Tax Savings and who will have attained age 50 before the close of the Plan
Year may elect to make Before-Tax Catch-Up Savings which, when taken together with a
Member’s Before-Tax Savings, Roth 401(k) Savings, Roth 401(k) Catch-Up Savings and
After-Tax Savings, equal up to 75% of a Member’s Salary for a pay period. Such
Before-Tax Catch-Up Savings shall be made in accordance with, and subject to the
limitations of, Code Section 414(v). Such Before-Tax Catch-up Savings shall not be
taken into account for purposes of the limitations of Code Sections 402(g) and 415.
The Plan shall not be treated as failing to satisfy the provisions of the Plan
implementing the requirements of Code Section 401(k)(3), 401(k)(11), 401(k)(12),
410(b) or 416, as applicable, by reason of any Member making such Before-Tax Catch-Up
Savings hereunder. Prior to January

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1, 2006, Before-Tax Catch-Up Savings shall be credited to a Member’s
Supplemental Before-Tax Investment Account; on and after January 1, 2006, Before-Tax
Catch-Up Savings shall be credited to a Member’s Before-Tax Catch-Up Contributions
Account

(D) Change in Salary Reduction Election for Before-Tax Savings and Before-Tax
Catch-Up Savings. A Member may elect to change the rate of his or her Salary
reduction for Basic or Supplemental Before-Tax Savings or Before-Tax Catch-Up Savings
as of any business day by giving notice to the Company in a manner and by the date
required by the Plan Administrator. The changed rate of Salary reduction shall be
effective as of the next payroll period (or as soon as practicable thereafter).
Notwithstanding the above, Members who are also members in a Hartford Excess Savings
Plan may not elect to change their rate of Salary reduction for Basic or Supplemental
Before-Tax Savings under this Plan after January 1 of the applicable Plan Year (the
Salary reduction rate in effect on January 1 of the Plan Year will continue to apply
for that entire Plan Year, except in the case of a suspension of Savings due to a
Safe Harbor Hardship withdrawal as set forth in Section 4.5(B) below; such an Excess
Savings Plan member may nonetheless elect to change his or her rate of Salary
reduction for Before-Tax Catch-Up Savings during the Plan Year).

(E) Vesting of Before-Tax Savings and Before-Tax Catch-Up Savings.
Before-Tax Savings and Before-Tax Catch-Up Savings credited to a Member’s Accounts
shall at all times be fully vested and nonforfeitable.

4.2. Member Roth 401(k) Savings.

(A) Salary Reduction Election for Roth 401(k) Savings. A Member may elect, subject
to the IRS limits described in Article Six and any other Plan limits, to have his or her
Salary reduced (by payroll deduction) by a whole percent not exceeding 30%, and to have that
amount contributed to the Trust Fund as Roth 401(k) Savings, except that a Member may not
elect to contribute Roth 401(k) Savings of more than the difference between 30% of Salary
and the amount of Before-Tax Savings properly elected. Such election shall be made in the
manner and by the date required by the Plan Administrator, and shall be effective with the
next payroll paid after the election (or as soon as practicable thereafter). A Member’s
election shall continue to apply notwithstanding a change in his or her principal employer
from one Participating Corporation to another Participating Corporation, unless the Member
changes or suspends his or her Salary reduction rate or savings as permitted by the Plan.
The Plan Administrator may establish a separate limit on the percentage of Salary that a
Highly Compensated Member may contribute to the Trust Fund as Roth 401(k) Savings.

(B) Types of Roth 401(k) Savings; Crediting of Roth 401(k) Savings to Accounts.

(i) Basic Roth 401(k) Savings. Roth 401(k) Savings that do not exceed the
difference between 6% of a Member’s Salary for the period during which such
contributions are made and the amount credited as Basic Before-Tax Savings for that
period shall be known as “Basic Roth 401(k) Savings,” and shall be credited to the
Member’s Basic Roth 401(k) Investment Account.

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(ii) Supplemental Roth 401(k) Savings. Roth 401(k) Savings that exceed the maximum
allowed under the preceding paragraph shall be known as “Supplemental Roth 401(k)
Savings,” and shall be credited to a Member’s Supplemental Roth 401(k) Investment
Account. Supplemental Roth 401(k) Savings may also include amounts credited on a
Member’s behalf pursuant to a Prior Plan Transfer.

(C) Roth 401(k) Catch-Up Savings. All Members who are eligible to make Roth
401(k) Savings and who will have attained age 50 before the close of the Plan Year may elect
to make Roth 401(k) Catch-Up Savings which, when taken together with a Member’s Before-Tax
Savings, Roth 401(k) Savings, After-Tax Savings, and Before-Tax Catch-Up Savings equal up to
75% of a Member’s Salary for a pay period. Such Roth 401(k) Catch-Up Savings shall be made
in accordance with, and subject to the limitations of, Code Section 414(v). Such Roth
401(k) Catch-up Savings shall not be taken into account for purposes of the limitations of
Code Sections 402(g) and 415. The Plan shall not be treated as failing to satisfy the
provisions of the Plan implementing the requirements of Code Section 401(k)(3), 401(k)(11),
401(k)(12), 410(b) or 416, as applicable, by reason of any Member making such Roth 401(k)
Catch-Up Savings hereunder. Roth 401(k) Catch-Up Savings shall be credited to a Member’s
Roth 401(k) Catch-Up Contributions Account

(D) Change in Salary Reduction Election for Roth 401(k) Savings and Roth 401(k)
Catch-Up Savings. A Member may elect to change the rate of his or her Salary reduction
for Basic or Supplemental Roth 401(k) Savings or Roth 401(k) Catch-Up Savings as of any
business day by giving notice to the Company in a manner and by the date required by the
Plan Administrator. The changed rate of Salary reduction shall be effective as of the next
payroll period (or as soon as practicable thereafter). Notwithstanding the above, Members
who are also members in a Hartford Excess Savings Plan may not elect to change their rate of
Salary reduction for Basic or Supplemental Roth 401(k) Savings under this Plan after January
1 of the applicable Plan Year (the Salary reduction rate in effect on January 1 of the Plan
Year will continue to apply for that entire Plan Year, except in the case of a suspension of
Savings due to a Safe Harbor Hardship withdrawal as set forth in Section 4.5(B) below; such
an Excess Savings Plan member may nonetheless elect to change his or her rate of Salary
reduction for Roth 401(k) Catch-Up Savings during the Plan Year).

(E) Vesting of Roth 401(k) Savings and Roth 401(k) Catch-Up Savings. Roth 401(k)
Savings and Roth 401(k) Catch-Up Savings credited to a Member’s Accounts shall at all times
be fully vested and nonforfeitable.

4.3. Member After-Tax Savings.

(A) Salary Reduction Election for After-Tax Savings. A Member may elect,
subject to the IRS limits described in Article Six and any other Plan limits, to have
his or her Salary reduced (by payroll deductions) by a whole percent not exceeding
30%, and to have that amount contributed to the Trust Fund as After-Tax Savings,
except that a Member may not elect to contribute After-Tax Savings of more than the
difference between 30% of Salary and the amount of Before-Tax Savings plus Roth
401(k) Savings

-21-

 

properly elected. Such election shall be made in the manner and by the date
required by the Plan Administrator, and shall be effective with the next payroll paid
after the election (or as soon as practicable thereafter). A Member’s election shall
continue to apply notwithstanding a change in his or her principal employer from one
Participating Corporation to another Participating Corporation, unless the Member
changes or suspends his or her Salary reduction rate or savings as permitted by the
Plan. The Plan Administrator may establish a separate, lower limit on the percentage
of Salary that a Highly Compensated Member may contribute to the Trust Fund as
After-Tax Savings. The Plan Administrator may also provide for Member elections as
to whether After-Tax Savings are to commence automatically when a Member’s Before-Tax
and Roth 401(k) Savings reach the maximum allowed under Code Section 402(g) for a
Plan Year.

(B) Types of After-Tax Savings; Crediting of After-Tax Savings to Accounts.

(i) Basic After-Tax Savings. After-Tax Savings that do not exceed the
difference between 6% of a Member’s Salary for the period during which such
contributions are made and the amount credited as Basic Before-Tax Savings and
Basic Roth 401(k) Savings for that period shall be known as “Basic After-Tax
Savings” and shall be credited to the Member’s Basic After-Tax Investment
Account.

(ii) Supplemental After-Tax Savings. After-Tax Savings that exceed the
maximum allowed under the preceding paragraph shall be known as “Supplemental
After-Tax Savings” and shall be credited to the Member’s Supplemental
After-Tax Investment Account. Supplemental After-Tax Savings may also include
amounts credited on a Member’s behalf pursuant to a Prior Plan Transfer.

(C) Change in Salary Reduction Election for After-Tax Savings. A Member may
elect to change the rate of his or her Salary reduction for After-Tax Savings as of
any business day by giving notice to the Company in the manner and by the date
required by the Plan Administrator. The changed rate of Salary reduction shall be
effective as of the next payroll period (or as soon as practicable thereafter).

(D) Vesting of After-Tax Savings. After-Tax Savings credited to a Member’s
Accounts shall at all times be fully vested and nonforfeitable.

4.4 Member Rollover Contributions.

(A) Contribution of Rollovers. To the extent permitted by the Code, a
Member may elect, subject to the IRS limits described in Article Six and any other
Plan limits, to contribute any of the following amounts to the Trust Fund: (i) a
distribution or proceeds from a sale of distributed property that qualifies as an
Eligible Rollover Distribution as defined in Article Eleven hereof from a trust
described in Code Section 401(a) and exempt from tax under Code Section 501(a), (ii)
a distribution from a “conduit” individual retirement account or annuity, provided
the entire amount of the distribution is

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from a source described in clause (i) hereof, (iii) a Prior Plan Transfer, which
means a direct rollover or transfer from a prior employer’s plan, provided that (a)
the Member can establish to the satisfaction of the Plan Administrator that such
prior employer’s plan assets meets the qualification requirements under Code Section
401(a), and (b) a trust-to-trust transfer shall not be permitted unless the amount
transferred is free of all defined benefit characteristics and does not make the Plan
a transferee plan under Code Section 401(a)(11)(B)(iii)(III); or (iv) an annuity
contract described in section 403(b) of the Code; or, (v) an eligible plan under
section 457 of the Code which is maintained by a state, political subdivision of a
state, or an agency or instrumentality of a state or political subdivision of a
state. A Member may also roll over to the Trust Fund non-taxable distributions from
traditional individual retirement accounts, attributable to deductible contributions,
and distributions from SIMPLE individual retirement accounts made more than two years
after the date the Member first participated in the SIMPLE individual retirement
account, to the extent permitted by the Code and rules established by the Plan
Administrator. Any amount so contributed must be paid to the Trustee on or before
the sixtieth day after the Member receives such amount (or be transferred directly
from a prior plan) and shall be held in the Trust Fund and credited to a separate
Rollover Account on behalf of the Member.

While generally only Members who are currently Eligible Employees may elect to roll
over amounts to the Trust Fund, Members and Deferred Members who are not currently
employed may elect to directly roll over Eligible Rollover Distributions from The
Hartford Retirement Plan for U.S. Employees to a Rollover Account under the Plan.

(B) Vesting in Rollovers. Amounts credited to a Member’s Rollover Account
shall at all times be fully vested and nonforfeitable.

4.5 Suspension and Resumption of Member Savings.

(A) Member Election to Suspend Savings. A Member (other than a Member who
is also a member in a Hartford Excess Savings Plan) may elect to suspend or resume
his or her Before-Tax, Roth 401(k) or After-Tax Savings or Before-Tax Catch-Up or
Roth 401(k) Catch-Up Savings as of any business day by giving notice to the Company
in the manner and by the time required by the Plan Administrator. Such suspension or
resumption will be effective as of the next payroll period (or as soon as practicable
thereafter).

(B) Suspension due to Withdrawal for Safe Harbor Hardship. A Member who
takes a hardship withdrawal from his or her Supplemental Before-Tax Investment or
Supplemental Roth 401(k) Account, Basic Before-Tax or Basic Roth 401(k) Investment
Account or Before-Tax Catch-Up or Roth 401(k) Catch-Up Contributions Account under
Section 10.2, which is attributable to a Safe Harbor Hardship as defined in that
Section, shall have his or her Savings under the Plan suspended for a period of six
months. Such suspension will be effective as of the later of the next payroll period
after the Valuation Date that applies to the withdrawal (or as soon as practicable
thereafter). During such suspension, Floor Company Contributions will continue to be
made on behalf of the

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Member, but no Matching Company Contributions shall be made on his or her
behalf. Also, the Member will continue to be considered a Member for purposes of
Article Six. Savings may be resumed by giving notice to the Company in the manner
and by the date required by the Plan Administrator. Such resumption shall be
effective as of the next payroll period following the six month suspension period (or
as soon as practicable thereafter). (The resumption of contributions shall be
automatic for a Member who is also a member in a Hartford Excess Savings Plan.)

4.6 Member Elective Transfers. A Member may make an elective transfer to the Plan,
provided such elective transfer (A) is from a plan qualified under Code Section 401(a), (B) results
from the Company’s acquisition of assets or a subsidiary within the meaning of Code Section
401(k)(10), and (C) meets the requirements of Code Section 414(l) and Treasury Regulation
1.411(d)(4), Q&A 3(b).

-24-

 

ARTICLE FIVE

COMPANY CONTRIBUTIONS

5.1. Matching Company Contributions.

(A) Matching Company Contributions with respect to Basic Savings. Effective
January 1, 2006, subject to the IRS limits described in Article Six and any other
Plan limits, the Company shall, with respect to each Member principally employed by
it who has attained age 18 and completed at least six months of Service as an
Eligible Employee, contribute to the Trust Fund a Matching Company Contribution in an
amount equal to 50% of such Member’s Basic Savings for each payroll period. (No
Matching Company Contributions shall be made with respect to a Member’s Supplemental
Savings, or a Member’s Before-Tax Savings or Roth 401(k) Savings that exceed the
limits provided in Code Sections 402(g) and 415 or Section 4.1(A), 4.2(A) or 6.1 of
the Plan.) Such Matching Company Contribution shall be credited to such Member’s
Company Contribution Account, and shall be invested as described in Article 8 hereof.
No Matching Company Contributions shall be made with respect to a Member’s Catch-Up
Savings.

(B) No Matching Company Contributions Following Certain Withdrawals.
Notwithstanding Section 5.1(A), Matching Company Contributions shall not be made in
respect of a Member’s Basic Savings during a suspension period that follows a
hardship withdrawal under Article Ten.

(C) No Matching Company Contributions for Planco Financial Services, Inc.
Employees Before 2006. Notwithstanding Section 5.1(A), Matching Company
Contributions shall not be made prior to January 1, 2006 with respect to a Member who
is an Employee of Planco Financial Services, Inc.

5.2. Floor Company Contributions. Effective January 1, 2006, subject to the IRS limits
described in Article Six and any other Plan limits, the Company shall, with respect to each
Eligible Employee principally employed by it who has attained age 18 and completed at least six
months of Service as an Eligible Employee, contribute to the Trust Fund a Floor Company
Contribution in an amount equal to one-half of one percent (0.5%) of such Eligible Employee’s
Salary for each payroll period, provided that, for each payroll period commencing on or after
January 1, 2004 with respect to such a Member who is not a Highly Compensated Member, the amount of
such Floor Company Contribution shall be increased to an amount equal to one and one-half percent
(1.5%) of such Member’s Salary for such payroll period. Floor Company Contributions shall be
credited to such Member’s Company Contribution Account, and shall be invested as described in
Article 8 hereof. Notwithstanding the first sentence of this Section 5.2, no Floor Company
Contributions shall be made prior to January 1, 2006 with respect to Eligible Employees who are
Employees of Planco Financial Services, Inc.

5.3 Vesting of Amounts in Company Contribution Accounts.

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(A) Vesting in Matching Company Contributions.

(i) General Rules. A Member shall be fully vested in, and have a nonforfeitable
right to, the portion of his or her Company Contribution Account that is attributable
to Matching Company Contributions in accordance with the following schedule:

Years of Service..... Percentage of Company Contribution that is Vested

	 	 	 	 	 
	less than 1 year
	 	 	0	%
	1 but less than 2 years
	 	 	20	%
	2 but less than 3 years
	 	 	40	%
	3 but less than 4 years
	 	 	60	%
	4 but less than 5 years
	 	 	80	%
	5 or more years
	 	 	100	%

(ii) Earlier Vesting in Certain Circumstances. Notwithstanding the foregoing
schedule, a Member shall immediately be fully vested in 100% of his or her Company
Contribution Account upon the earlier of: (a) the Member reaching age 65, (b) the
Member’s Retirement provided the Member has an original hire date with the Company
before January 1, 2002, (c) the Member’s Disability, (d) the Member’s death, (e) the
termination of the Plan, or (f) the complete discontinuance of Company contributions
under the Plan. In addition, a Member shall be immediately fully vested in all
dividends paid on or after November 29, 2001 with respect to any portion of his or
her Company Contribution Account that is invested in The Hartford Stock.

(B) Vesting in Floor Company Contributions. Each Member and Deferred Member shall
at all times be fully vested in the portion of his or her Company Contribution Account
attributable to Floor Company Contributions.

(C) Vesting in Amounts Attributable to a Prior Plan Transfer. Each Member and
Deferred Member shall at all times be fully vested in the portion of his or her Company
Contribution Account attributable to a Prior Plan Transfer.

(D) Special Rules for Certain ESOP and Company Contribution Account Balances.

(i) Members Who Previously Worked for Pre-Distribution ITT. A Member who performed
services for Pre-Distribution ITT at any time between June 30, 1995 and the
Distribution Date shall be fully vested in the amounts credited to his or her ESOP
Account and Company Contribution Account as of the Distribution Date.

(ii) Forfeitures by Members Who Did Not Previously Work for Pre-Distribution ITT. In
the case of a Member or Deferred Member who did not perform services for
Pre-Distribution ITT between June 30, 1995 and the Distribution Date, any amounts in
his or her ESOP Account and Company Contribution Account that were forfeited under
Section 5.5(a) of the Pre-Distribution ITT Plan shall remain forfeited, except to the
extent

-26-

 

restored pursuant to this Article Five on account of subsequent employment with
the Company.

5.4 Forfeiture of Certain Unvested Amounts in Company Contribution Accounts.

(A) Forfeiture upon Termination of Employment. In the event of Termination of
Employment of a Member for any reason other than one listed in Section 5.3(A)(ii), the
unvested portion of the Member’s Company Contribution Account shall be forfeited as of the
earlier of the date (i) the Member receives a distribution of the entire vested portion of
his or her Accounts, or (ii) the Member incurs five consecutive Breaks in Service.

(B) Restoration of Unvested Amounts in the Event of Rehire. In the case of a
Member’s Termination of Employment for any reason other than one listed in Section
5.3(A)(ii), the unvested portion of the Member’s Company Contribution Account shall be
restored if the Member again becomes an Eligible Employee of the Company before incurring
five consecutive Breaks in Service. Any restoration of unvested amounts under this
paragraph shall be made as of the Valuation Date following the date the Plan Administrator
receives notice of the reemployment. The extent to which the Member vests in amounts
restored under this Section shall be determined in accordance with the vesting schedule in
this Article Five.

(C) Use of Forfeited Amounts to Reduce Future Company Contributions. As soon as
practicable after a Member receives a distribution of the entire vested portion of his or
her Accounts or incurs five consecutive Breaks in Service, the unvested portion of the
Member’s Company Contribution Account shall be forfeited and applied to reduce future
Company contributions under the Plan.

(D) Crediting of Forfeited Amounts to Accounts in Certain Circumstances. In the event of
the termination of the Plan or complete discontinuance of Company contributions hereunder, any
forfeitures not previously applied in accordance with the preceding paragraph shall be
credited proportionately to the Accounts of all Members and Deferred Members as described in
Article Seventeen.

5.5 Additional Company Contributions if Plan is Top-Heavy.

(A) Additional Contribution. For any Plan Year with respect to which the Plan is
Top-Heavy (as defined in the next paragraph), an additional Company contribution shall be
allocated on behalf of each Member (or each Eligible Employee eligible to become a Member)
who is not a “key employee,” and who has not separated from service as of the last day of
the Plan Year, to the extent that the amounts allocated to his or her Accounts as a result
of contributions made under Sections 5.1 and 5.2 for that Plan Year are less than 3% of his
or her W-2 remuneration for that Plan Year. However, if the greatest percentage of W-2
remuneration for that Plan Year (after being limited to the annually indexed dollar amount
under Code Section 401(a)(17)) contributed by a “key employee” under Section 4.1 or
allocated to his or her Accounts as a result of contributions made pursuant to Section 5.1
for the Plan Year would be less than 3%, such lesser percentage shall be substituted for
“3%” in the preceding sentence. Notwithstanding the

-27-

 

foregoing, no minimum contribution shall be made with respect to a Member if the
required minimum benefit under Code Section 416(c)(1) is provided by the Retirement Plan.

(B) Definition of Top-Heavy Plan. The Plan shall be considered Top-Heavy with
respect to any Plan Year, if, as of the last day of the preceding Plan Year, the value of
the aggregate of the Accounts under the Plan for all “key employees” exceeds 60 percent of
the value of the aggregate of the Accounts under the Plan for all Eligible Employees. The
value of such Accounts shall be determined as of the Valuation Date on or before the last
day of such preceding Plan Year, in accordance with Code Sections 416(g)(3) and (4) and
Article Seven of this Plan. Account balances under the Plan will be combined with the
account balances or the present value of accrued benefits under any other qualified plan of
the Company and its affiliates in which “key employees” participate or which enable the Plan
to meet the requirements of Code Section 401(a)(4) or 410. Additionally, provided that the
resulting aggregation group satisfies the requirements of Code Sections 401(a)(4) and 410,
the Company may elect to combine the account balances under the Plan with the account
balances or the present value of accrued benefits under any other qualified plan of the
Company or its affiliates not required to be combined with this Plan if all members are
non-key employees and the contributions or benefits under the other plan are at least
comparable to the benefits provided under this Plan. The determination as to whether an
Eligible Employee will be considered a “key employee” shall be made in accordance with the
provisions of Code Sections 416(i)(l) and (5), and on the basis of the Eligible Employee’s
Forms W-2 remuneration for the applicable Plan Year from the Company, or an affiliate of the
Company (if applicable).

For the Plan Years commencing before January 1, 2000, the Plan will be super Top-Heavy if
the top-heavy ratio exceeds 90% and a factor of 1.0 will be applied to the dollar limit.

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ARTICLE SIX

IRS LIMITS ON MEMBER SAVINGS

AND COMPANY CONTRIBUTIONS

6.1 IRS Limits on Before-Tax and Roth 401(k) Savings.

(A) Maximum Amount of Before-Tax and Roth 401(k) Savings. The maximum dollar
amount of combined Before-Tax and Roth 401(k) Savings that may be made on behalf of any
Member for a calendar year, when combined with the Member’s Before-Tax Catch-Up Savings and
Roth 401(k) Catch-Up Savings, shall be the maximum amount determined by the Secretary of the
Treasury, pursuant to Section 402(g) of the Code. In the event that the foregoing limitation
is exceeded for any calendar year, the excess Before-Tax Savings and Roth 401(k) Savings as
adjusted for investment experience will, in the sole discretion of the Plan Administrator,
either (i) be deemed to have been contributed to the Plan as Before-Tax Catch-Up Savings or
Roth 401(k) Catch-Up Savings, if eligible, (ii) be deemed to have been distributed to the
Member and recontributed to the Plan as After-Tax Savings, or (iii) be returned to the
Member on behalf of whom such Savings were contributed. Any returned amounts will be
returned no later than April 15 following the end of the calendar year that the
contributions were made. However, if the Member participated in more than one qualified
defined contribution plan to which he or she contributed pursuant to a salary deferral
arrangement, the Member shall notify the Plan Administrator by April 15 of the following
calendar year of the amount of the excess deferrals to be allocated to this Plan, and such
portion of the excess deferrals so allocated shall be recontributed to the Plan as After-Tax
Savings or returned to the Member as provided in the preceding sentence.

Notwithstanding the foregoing, in the case of any Member who (a) ceases to be an Eligible
Employee during a Plan Year, (b) is employed during such Plan Year by an employer which is
not the Company or an entity within the controlled group of corporations (as defined in Code
Section 414(b) and the Regulations thereunder) containing the Company, and (c) exceeds the
limitation on elective deferrals enumerated in Code Section 402(g) ($15,500 in 2008) based
on the Member’s participation in the Plan and participation in a plan maintained by the
subsequent employer, the Plan shall not distribute to such a Member any Before-Tax Savings
or Roth 401(k) Savings (or any income thereon) that arise solely as a result of the Member
exceeding the Code Section 402(g) limit for the Plan Year, unless such limit was exceeded
solely because of the Member’s participation in this Plan, without considering any other
plan.

(B) Limit on Before-Tax Savings and Roth 401(k) Savings for Highly Compensated
Members.

(i) Actual Deferral Percentage. With respect to each Plan Year, the Actual
Deferral Percentage for Highly Compensated Members shall not exceed the greater of: (i) 125
percent of the Actual Deferral Percentage for all other Members for the Plan Year, or (ii)
the lesser of

-29-

 

(a) 200 percent of the Actual Deferral Percentage of all other Members for the
Plan Year or (b) the Actual
Deferral Percentage of all other Members for the Plan Year plus 2 percentage points.
Before-Tax Savings and Roth 401(k) Savings must have been allocated to Members’ Accounts
during the Plan Year and may only be based on Salary received by a Member during the Plan
Year or earned during the Plan Year and received by the Member within 21/2 months after the
end of the Plan Year. To the extent a Highly Compensated Employee has not reached his or her
Before-Tax and Roth 401(k) Catch-Up Contribution limit under the Plan, excess contributions
allocated to such Highly Compensated Employee are Before-Tax and/or Roth Catch-Up
Contributions and will not be treated as excess contributions. In the event the Actual
Deferral Percentage for Highly Compensated Employees for any Plan Year exceeds the limits
described above, the following shall occur: (1) the Plan Administrator shall determine the
hypothetical reductions of the Highly Compensated Employees beginning with the highest
Actual Deferral Percentage and moving toward lower percentages until one of such limitations
is met; (2) the Plan Administrator shall then determine the total dollar amount of such
reductions; (3) the Plan Administrator shall then reduce the Before-Tax Savings of the
Highly Compensated Employees beginning with the highest dollar amount and moving toward
lower dollar amounts until the total dollar amount in (2) above is reached. For purposes of
the preceding sentence, the “highest amount” is determined after distribution of any excess
contributions. Such amount of excess contributions, as adjusted for investment experience,
will be distributed to the Members on whose behalf such contributions were made or, under
rules adopted by the Plan Administrator, such Members may elect to recharacterize such
adjusted contributions as After—Tax Savings. Any such recharacterization or distribution
of the adjusted excess contributions will be made to the Highly Compensated Employees on the
basis of the respective portion of the adjusted excess contributions attributable to each of
such Employees and the recharacterization or the distribution of the adjusted excess
contributions will be made to the Employees on whose behalf such contributions were made
within 12 months following the end of the Plan Year for which the deferrals were made. The
amount of such recharacterization or distribution of any excess contributions shall be
reduced by excess deferrals previously distributed for the taxable year ending in the same
Plan Year and the amount of such distribution of any excess deferrals shall be reduced by
excess contributions previously distributed or recharacterized for the Plan Year beginning
in such taxable year. Excess contributions shall be adjusted for any income or loss up to
the date of distribution in accordance with IRS regulations; the Plan will not fail to use a
reasonable method of computing the income allocable to excess contributions merely because
the income allocable to the excess contributions is determined on a date that is no more
than seven days before the distribution.

(ii) ESOP Actual Deferral Percentage. With respect to each Plan Year beginning prior to
January 1, 2006, the ESOP Actual Deferral Percentage shall be subject to the limits and
corrections for Before-Tax Savings that are ESOP Contributions determined in the same manner
as set forth in paragraph (i), above.

(iii) In the event that any portion of a Highly Compensated Employee’s Before-Tax Savings
or Roth 401(k) Savings, as adjusted for investment experience, is returned or
recharacterized pursuant to Section 6.1(A) as a result of the maximum dollar limit
applicable to Before-Tax Savings and Roth 401(k) Savings, the Actual Deferral Percentage, or
ESOP Actual Deferral Percentage, as applicable, shall be determined before such excess
deferral is returned. Any

-30-

 

 adjusted excess of a Member’s deferrals that are recharacterized
pursuant to Section 6.1(A) shall
be treated as (I) annual additions pursuant to Section 6.3 and (II) Before-Tax Savings or
Roth 401(k) Savings for purposes of their withdrawability prior to Termination of Employment
and shall be subject to the financial hardship requirement provisions of Section 10.2.

(iv) For purposes of determining the Actual Deferral Percentage or ESOP Actual Deferral
Percentage for Highly Compensated Employees, all contributions made by Highly Compensated
Employees to qualified plans shall be aggregated. The contributions of all Employees under
plans that are aggregated with this Plan for purposes of Section 401(a) or 410(b) of the
Code shall be aggregated and deemed to have been made under a single plan.

(v) For Plan Years commencing before 1997, in determining the Actual Deferral Percentage of
Highly Compensated Employees, the Highly Compensated Employee’s Before-Tax Savings and
Compensation shall include the Before-Tax Savings and Compensation of family members (as
defined in Section 414(q)(6) of the Code). In the event that recharacterization or
distribution of excess deferrals is required, appropriate adjustment shall be made for all
family members as provided in the Code.

(C) Additional Limits on Before-Tax and Roth 401(k) Savings. From time to time and
in order to comply with Section 401(k)(3) of the Code, the Plan Administrator may impose a
limitation on the extent to which a Highly Compensated Member may contribute Before-Tax and
Roth 401(k) Savings hereunder, based on a reasonable projection of savings rates of
non-Highly Compensated Members.

6.2 IRS Limits on After-Tax Savings and Matching Company Contributions.

(A) Limit on After-Tax Savings and Matching Company Contributions for Highly
Compensated Members.

(i) Actual Contribution Percentage. With respect to each Plan Year, the Actual
Contribution Percentage for Highly Compensated Members shall not exceed the greater
of (i) 125 percent of the Actual Contribution Percentage for all other Members for
the Plan Year or (ii) the lesser of (a) 200 percent of the Actual Contribution
Percentage of all other Members for the Plan Year or (b) the Actual Contribution
Percentage of all other Members for the Plan Year plus 2 percentage points. In the
event the Actual Contribution Percentage for Highly Compensated Members for any Plan
Year exceeds the limits described above, the following shall occur: (1) the Plan
Administrator shall determine the hypothetical reductions of the Highly Compensated
Employees beginning with the highest Actual Contribution Percentage and moving toward
lower percentages until one of such limitations is met, (2) the Plan Administrator
shall then determine the total dollar amount of such reductions, and (3) the Plan
Administrator shall then reduce the After-Tax Savings and Matching Company
Contributions of the Highly Compensated Employees beginning with the highest dollar
amount and moving toward lower dollar amounts until the total dollar amount in (2)
above is reached. A Member’s Actual Contribution Percentage shall be determined
after a Member’s excess Before-Tax and Roth 401(k) Savings are either recontributed
to the Plan as After-Tax Savings or paid to

-31-

 

the Member. Such amount of
excess aggregate contributions, as adjusted for investment experience, will be
returned to, or paid to, the Members for whom such contributions were made within 12
months following the end of the Plan Year for which the contributions were made. To
the extent contributions must be paid or returned to a Member under the preceding
sentence, the distribution shall be made from the following categories of
contributions (adjusted to reflect earnings or losses attributable thereto): First,
Supplemental After—Tax Savings; second, Basic After—Tax Savings (to the extent that
associated Matching Company Contributions are vested, they also shall be distributed
in this category); third, remaining vested Matching Company Contributions. To the
extent that an additional adjustment is required, nonvested Matching Company
Contributions shall be forfeited. Excess aggregate contributions shall be adjusted
for any income or loss up to the date of distribution in accordance with IRS
regulations; the Plan will not fail to use a reasonable method of computing the
income allocable to excess aggregate contributions merely because the income
allocable to the excess aggregate contributions is determined on a date that is no
more than seven days before the distribution.

(ii) ESOP Actual Contribution Percentage. With respect to each Plan Year beginning
prior to January 1, 2006, the ESOP Actual Contributions Percentage shall be subject
to the limits and corrections for After-Tax Savings that are ESOP Contributions and
Matching Company Contributions that are ESOP Contributions determined in the same
manner as set forth in paragraph (i), above.

(iii) For purposes of determining the Actual Contribution Percentage or ESOP Actual
Contribution Percentage for Highly Compensated Members, all contributions made by
them to qualified plans shall be aggregated. The contributions of all Employees
under plans that are aggregated with this Plan for purposes of Code Section 401(a) or
410(b) shall be aggregated and deemed to have been made under a single plan.

(B) Additional Limits on After-Tax Savings. From time to time and in order to
comply with Code Section 401(m) of the Code, the Plan Administrator may impose an additional
limit on the amount of After-Tax Savings that a Highly Compensated Member may contribute to
the Trust Fund, based on a reasonable projection of savings rates of non- Highly Compensated
Members.

6.3 Annual Limits on Additions to Member Accounts.

(A) Definitions. For purposes of this Section, the following definitions shall
apply:

(i) Definition of “Annual Addition.” The “Annual Addition” to a Member’s Accounts
for any Limitation Year means the sum of (a) the Member’s Before-Tax Savings for such
Year, (b) the Member’s Roth 401(k) Savings for such Year, (c) the Member’s After-Tax
Savings for such Year, and (d) all Matching Company Contributions and Floor Company
Contributions by the Company or an Affiliate for the Member for such Year.

-32-

 

(ii) Definition of “Affiliate.” The term “Affiliate” means any subsidiary or
affiliate within the Company’s controlled group of companies, as determined under
Code Section 414, except that the phrase “more than 50 percent” shall be substituted
for the phrase “at least 80 percent” where it appears in Code Section 1563(a)(1).

(B) Maximum Annual Addition for this Plan. Notwithstanding any provision of this
Plan to the contrary, except as otherwise provided in this Article Six, the Annual Addition
to a Member’s Accounts under the Plan for any Limitation Year, when added to the Member’s
Annual Addition for that Limitation Year under any other qualified defined contribution plan
of the Company or any Affiliate of the Company, shall not exceed the Maximum Annual
Addition. The Maximum Annual Addition shall be the lesser of: (i) $46,000 (in 2008), as
adjusted for increases in the cost-of-living under Code Section 415(d), or (ii) 100 percent
of the Member’s compensation, within the meaning of Code Section 415(c)(3), for the
limitation year. The foregoing limit shall not apply to any contribution for medical
benefits after separation from service (within the meaning of Code Sections 401(h) or
419A(f)(2)) which is otherwise treated as an Annual Addition.

(i) Consequences of Exceeding Maximum Annual Addition. In the event of a
determination that the Annual Addition to a Member’s Accounts for any Limitation Year
would exceed the Maximum Annual Addition, such Annual Addition shall be reduced to
the extent necessary to bring it within the Maximum Annual Addition. In accordance
with and to the extent permitted by Treasury regulations under Code Section 415, such
Member’s Before-Tax Savings, Roth 401(k) Savings and After-Tax Savings shall be
distributed to the Member, along with gains attributable to such Before-Tax Savings,
Roth 401(k) Savings and After-Tax Savings, to the extent that such distribution would
reduce the excess Annual Addition to the Member’s Accounts. Such distribution shall
be made first from Supplemental After-Tax Savings, and then from Supplemental
Before-Tax Savings, and then from Supplemental Roth 401(k) Savings.

(C) Maximum Annual Addition for Members Participating in Other Defined Contribution
Plans. In the event that a Member is a participant in any other defined contribution
plans (whether or not terminated) of the Company or an Affiliate, the total amount added to
such Member’s Accounts under this Plan and all such other plans in any Limitation Year shall
not exceed the Maximum Annual Addition. In the event of a determination that such total
amount would exceed the Maximum Annual Addition, the amounts added to such Member’s Accounts
shall be reduced as follows:

(i) First, the annual additions to the Member’s Accounts under such other defined
contribution plans shall be reduced to the extent necessary and to the extent
permitted by law so that the Maximum Annual Addition for this Plan is not exceeded;
and

(ii) Second, if after application of the preceding paragraph the amounts added to
the Member’s Accounts would still exceed the Maximum Annual Addition, then the Annual
Addition to the Member’s Accounts under this Plan shall be reduced.

-33-

 

(D) Maximum Annual Addition for Members Participating in Defined Benefit Plans. In
the event that a Member is a participant in any defined benefit plan maintained by the
Company or an Affiliate, it is intended that the benefits under such defined benefit plan
shall be reduced before applying the Maximum Annual Addition for this Plan, to the extent
required to meet the requirements of Code Section 415(e) for Limitation Years beginning
before January 1, 2000.

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ARTICLE SEVEN

CREDITS TO ACCOUNTS;

ASSET VALUATION AND ALLOCATION

7.1 Establishment of Accounts. The Accounts described below shall be established for
Members and Deferred Members, as appropriate, to hold contributions under the Plan and earnings
thereon:

	 	 	 	 	 	 	 
	Type of Contribution	 	Sub-Account	 	 	 	Account
	-Basic Before-Tax Savings

-Basic Roth 401(k) Savings

-Basic After-Tax Savings

	 	Basic Before-Tax Investment Account

Basic Roth 401(k) Investment Account

Basic After-Tax Investment Account
	 	} 	 	Basic Investment

Account
	 
	 	 	 	 	 	 
	-Supplemental Before-Tax Savings

-Supplemental Roth 401(k) Savings

-Supplemental After-Tax Savings

-Prior Plan Transfers

	 	Supplemental Before-Tax Investment Account

Supplemental Roth 401(k) Investment Account

Supplemental After-Tax Investment Account

 

	 	} 	 	Supplemental

Investment Account
	 
	 	 	 	 	 	 
	- Before-Tax Catch-Up Savings
Prior to January 1, 2006

	 	Supplemental Before-Tax Investment Account
	 	 	 	Supplemental

Investment Account
	 
	 	 	 	 	 	 
	- Before-Tax Catch-Up Savings On
and After January 1, 2006

	 	 
 	 	 	 	Before-Tax Catch-Up

Contributions Account
	 
	 	 	 	 	 	 
	-Roth 401(k) Catch-Up Savings

	 	 
	 	 	 	Roth 401(k)Catch-Up

Contributions Account
	 
	 	 	 	 	 	 
	-Rollovers

	 	 
	 	 	 	Rollover Account
	 
	 	 	 	 	 	 
	-Matching Company Contributions
(including pre-Distribution ITT
type) 

-Floor Company Contributions

-Prior Plan Transfers 

-Reinvested Dividends

Attributable to the Hartford
Financial Services Group, Inc.
Stock Fund

	 	
 

 

 

 

 	 	} 	 	Company Contribution

Account
	 
	 	 	 	 	 	 
	ESOP balances (from Pre-
Distribution ITT
Plan)

	 	 
	 	 	 	ESOP Account

7.2 Crediting of Contributions to Accounts. Member Savings, Rollovers and Company
Contributions shall be credited to the appropriate Account as soon as practicable after they are
transferred to the Trust Fund.

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7.3 Method of Determining Value of Amounts Credited to Accounts. At the end of each
business day in which the Plan is in effect and operation, the amount of credit of a Member or
Deferred Member in each of the funds shall be expressed and credited to the Accounts of such Member
or Deferred Member using the unit accounting method, a method of participant accounting under which
all balances are carried as “units,” which are multiplied by a unit value to give the actual cash
value. For purposes of Article Eight, the interest of a Member or Deferred Member in The Hartford
Financial Services Group, Inc. Stock Fund and shall be converted into a number of shares of The
Hartford Stock as of any particular time, by dividing the value of all shares of Stock in the
applicable Fund by the value of the interest of the Member or Deferred Member in the Fund at such
time. The resulting number of shares of Stock shall be deemed allocated to such Member.

7.4 Valuation of The Hartford Stock. For the purpose of determining the value of The
Hartford Stock hereunder, in the event such Stock is traded on a national securities exchange, such
Stock shall be valued at the closing price of such Stock on the New York Stock Exchange composite
tape on the business day such Stock is delivered to the Trustee. In the event such Stock is not
traded on a national securities exchange, such Stock shall be valued in good faith by an
independent appraiser selected by the Trustee and meeting requirements similar to those in the
regulations prescribed under Code Section 170(a)(1).

7.5 Asset Valuation; Allocation of Gains and Losses. At the end of each business day, the
Trustee shall (A) determine the total fair market value of all assets then held by it in each
Investment Fund, (B) determine the gain or loss in the value of such assets, and (C) allocate such
gain or loss pro rata by fund to the balances credited to the Accounts of all Members and Deferred
Members as of such day.

7.6 Dividends Paid with Respect to The Hartford Stock.

(A) Dividend Election. A Member or Deferred Member may elect, with respect to a dividend
paid on The Hartford Stock that is allocated to the Member’s or Deferred Member’s Accounts
as of the ex-dividend date of such dividend, to have the dividend either distributed in cash
to the Member or Deferred Member or reinvested in shares of The Hartford Stock in The
Hartford Financial Services Group, Inc. Stock Fund. The Plan Administrator shall prescribe
rules regarding the timing and manner of a dividend election.

(B) Default Election. In the absence of an affirmative dividend election, the Member or
Deferred Member shall be deemed to have elected to have the dividend reinvested in The
Hartford Stock.

(C) Effect and Duration of Election. An election made in accordance with subsections (A) or
(B), shall remain in effect until changed by the Member or Deferred Member in accordance
with the rules established by the Plan Administrator. The election shall apply to all
dividends with an ex-dividend date after the election date. A Member or Deferred member may
change his or her dividend election at any time in the manner prescribed by the Plan
Administrator.

(D) Cash Payment. Dividends elected to be paid in cash shall be distributed to the Member
or Deferred Member as soon as administratively practicable after the dividend is received by
the Trustee in the Trust Fund. The amount of cash dividends distributed shall be reduced by
the

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amount of any losses attributable to such dividends while held in the Trust Fund. No
earnings attributable to such dividends shall be distributed.

ARTICLE EIGHT

INVESTMENT OF SAVINGS AND

CONTRIBUTIONS IN INVESTMENT FUNDS

8.1 Approval of Investment Funds for the Plan. Contributions to the Plan shall be invested
by the Trustee in the Investment Funds approved by the Investment and Savings Plan Investment
Committee from time to time. The Investment and Savings Plan Investment Committee, or such other
Committee or individual as may be designated by the Board of Directors, may from time to time add
Investment Funds to, or eliminate Investment Funds from, the group of Investment Funds available
hereunder. Notwithstanding the foregoing, the Trustee temporarily may hold cash or make short-term
investments in obligations of the United States Government, commercial paper, an interim investment
fund for tax-qualified employee benefit plans established by the Trustee, or other investments of a
short-term nature, unless otherwise provided by applicable law.

8.2 Trustee Investment of Contributions in Investment Funds. Contributions to the Plan
shall be invested by the Trustee in the Investment Funds as described below. An account shall be
established for each Member and Deferred Member in each Investment Fund as to which Savings,
Rollovers, Company Contributions and ESOP balances are made, contributed, or otherwise properly
allocated.

(A) Savings and Rollovers. Member and Deferred Member Savings and Rollovers shall
be invested in multiples of 1% in one or more of the Investment Funds, as properly elected
by the Member or Deferred Member. Effective January 1, 2006, Members and Deferred Members
may make separate investment elections with respect to (i) Savings and (ii) Rollovers.

(B) Company Contributions and ESOP Account Balances. Member and Deferred Member
Company Matching Contributions, Floor Contributions and ESOP Account Balances shall be
invested in multiples of 1% in one or more of the Investment Funds, as properly elected by
the Member or Deferred Member. Floor Contributions made with respect to periods after
August 31, 2006 shall be invested in the applicable Default Vanguard Target Retirement Fund
set forth in Section 8.3(G) in the event that a proper Investment Fund election is not made
with respect to such Floor Contributions.

8.3 Changes in Investment Elections.

(A) General Rules. A Member or Deferred Member may make changes to his or her
investment elections and transfer amounts between Investment Funds to the extent permitted
by this Section 8.3. Such changes and transfers may be made by giving notice to the Company
in a manner and by the date required by the Plan Administrator. All changes and transfers
shall be made in multiples of 1%, except that Members and Deferred Members may also elect to
transfer a specific dollar amount of investments between Investment Funds.

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(B) Change of Investment Funds for Future Savings and Rollovers. A Member may elect
to change the Investment Funds in which his or her future Savings and Rollovers shall be
invested, in accordance with the rules described in the preceding paragraph.

(C) Redistribution Among Investment Funds for Past Savings and Rollovers. A Member
or Deferred Member may elect to redistribute his or her past Savings and Rollovers among any
of the Investment Funds, in accordance with the rules of Section 8.3(A), except that
if a Member transfers amounts out of the Stable Value Fund, those amounts may not be
transferred to the Hartford Money Market HLS Fund or the Hartford Total Return Bond Fund for
a period of 90 days.

(D) Changes / Redistributions for Company Contributions and ESOP Account Balances.
Members may elect to change the Investment Funds in which future Matching Company
Contributions and Floor Company Contributions shall be invested, in accordance with the
rules of Section 8.3(A). Members, Deferred Members, Beneficiaries of the foregoing and
Alternate Payees may elect to redistribute past Company Contributions and ESOP Account
balances among any of the Investment Funds, in accordance with the rules of Section 8.3(A),
and subject to the restrictions described in Section 8.3(C).

(E) Restriction on Electronic Transfers to 20 Per Calendar Year. In addition to
the above restrictions, a Member or Deferred Member shall be limited to 20 electronic
transfers of amounts between Investment Funds per calendar year. For this purpose, (i) a
transfer shall occur on a day as of which any amounts are moved between Investment Funds,
regardless of the number of Investment Funds affected by transfers between Investment Funds
on that day, and (ii) an electronic transfer includes any transfer initiated online, through
an interactive voice recognition system or by telephone to a Plan representative. Once the
20 electronic transfer limit has been reached, the Member or Deferred Member shall initiate
any subsequent transfers by mail or overnight courier service to The Hartford HR Service
Center, using a transfer request form obtained from The Hartford HR Service Center.
Notwithstanding the restriction in this Section 8.3(E), a Member or Deferred Member may
elect, after having effected 20 electronic transfers during the applicable time period, to
initiate a transfer of amounts from The Hartford Financial Services Group, Inc. Stock Fund
to the Stable Value Fund by means of a telephone call to a Plan representative at The
Hartford HR Service Center.

(F) Rebalancing of Investment Funds. The Plan Administrator may provide
Members with the option of rebalancing their investment allocation between Investment
Funds, either periodically or at the Member’s election. Such rebalancing is subject to
the restrictions described in Sections 8.3(C) and (E).

(G) Default Investment Funds. The applicable Default Vanguard Target
Retirement Fund is as follows, depending upon the Member’s or Deferred Member’s date of
birth:

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	Member’s or Deferred	 	 
	Member’s Date of Birth	 	Default Target Retirement Fund
	Prior to 1940

	 	Vanguard Target Retirement Income Fund
	 
	 	 
	1940 through 1944

	 	Vanguard Target Retirement 2005 Fund
	 
	 	 
	1945 through 1954

	 	Vanguard Target Retirement 2015 Fund
	 
	 	 
	1955 through 1964

	 	Vanguard Target Retirement 2025 Fund
	 
	 	 
	1965 through 1974

	 	Vanguard Target Retirement 2035 Fund
	 
	 	 
	1975 or later

	 	Vanguard Target Retirement 2045 Fund

(H) Limitation on Contributions and Transfers to The Hartford Financial Services Group,
Inc. Stock Fund. Effective September 1, 2006, no more than 10% of a Member or Deferred
Member’s own Savings (including any related loan repayments), no more than 10% of Company
Contributions made on behalf of a Member or Deferred Member (including any related loan
repayments) and no more than 10% of any Rollover (including any related loan repayments),
may be invested in The Hartford Financial Services Group, Inc. Stock Fund. Should a Member
or Deferred Member as of September 1, 2006 have more than 10% of any of such Member or
Deferred Member’s own Savings, Company Contributions and Rollovers (including in each case
any related loan repayments) directed to be invested in The Hartford Financial Services
Group, Inc. Stock Fund, any amount so directed above the 10% limit shall instead be invested
in the applicable Default Vanguard Target Retirement Fund set forth in Section 8.3(G).

In addition, effective September 1, 2006, (i) if more than 10% of a Member or Deferred
Member’s total Accounts (excluding any loan balance) is invested in The Hartford Financial
Services Group, Inc. Stock Fund, the Member shall not be able to transfer any additional
amounts to such Fund, and (ii) no more than 10% of any amount transferred between Investment
Funds can be transferred to The Hartford Financial Services Group, Inc. Stock Fund.

8.4 Trustee Purchase of The Hartford Stock. The trustee shall purchase The Hartford Stock

from any source. Such Stock purchased from The Hartford shall be purchased at fair market value.
Such Stock purchased from The Hartford may be treasury shares or newly issued shares or authorized
but unissued shares; provided however, that in no event shall a commission be charged with respect
to such a purchase.

8.5 Member Voting of The Hartford Stock. Each Member, Deferred Member and Beneficiary is
for the purposes of this Section hereby designated a named fiduciary within the meaning of Section
402(a)(2) of ERISA with respect to any shares of The Hartford Stock allocated to their respective
Accounts, and may direct the Trustee as to the manner in which such Stock is to be voted. Before
each annual or special meeting of shareholders of The Hartford, there shall be sent to each such
person a copy of the proxy solicitation material for such meeting, together with a form requesting
instructions to the Trustee on how to vote such Stock. Upon receipt of such instructions, the
Trustee shall vote such Stock as instructed. In lieu of voting fractional shares of such Stock as
so instructed, the Trustee may vote the combined fractional shares of such Stock to the extent
possible to reflect the directions of the Members, Deferred Members and Beneficiaries with
allocated fractional shares of each class of such Stock. The

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Trustee shall vote shares of such Stock allocated to Accounts under the Plan, for which no valid
voting instructions were received, in the same manner and in the same proportion that the shares of
The Hartford Stock with respect to which the Trustee received valid voting instructions are voted.
Instructions to the Trustee shall be in such form and pursuant to such regulations as the Plan
Administrator may prescribe. Any instructions received by the Trustee regarding the voting of The
Hartford Stock shall be confidential and shall not be divulged by the Trustee to the Company, or to
any director, officer, employee or agent of the Company, it being the intent of this Section to
ensure that the Company (and its directors, officers, employees and agents) cannot determine the
voting instructions given by any person.

8.6 Procedures in the Event of a Tender Offer for The Hartford. The provisions of this
Section shall apply in the event any person, either alone or in conjunction with others, makes a
tender offer, makes an exchange offer, or otherwise offers to purchase or solicits an offer to sell
to such person one percent or more of the outstanding shares of a class of The Hartford Stock held
by a Trustee hereunder (herein jointly and severally referred to as a Tender Offer). As to any
Tender Offer, each Member and Deferred Member (or Beneficiary in the event of the death of the
Member or Deferred Member) shall have the right to determine confidentially whether shares held
subject to the Plan will be tendered.

(A) Instructions to Trustee. In the event a Tender Offer is commenced, the Plan
Administrator, promptly after receiving notice of such commencement, shall transfer certain
of its record keeping functions to an independent record keeper. The functions so
transferred shall be those necessary to preserve the confidentiality of any directions given
by the Members and Deferred Members (or Beneficiary in the event of the death of the Member
or Deferred Member) in connection with the Tender Offer. A trustee may not take any action
in response to a Tender Offer except as otherwise provided in this Section. Each Member is,
for all purposes of this Section, hereby designated a named fiduciary within the meaning of
Section 402(a)(2) of ERISA, with respect to the shares of The Hartford Stock allocated to
his or her Accounts. Each Member and Deferred Member (or Beneficiary in the event of the
death of the Member or Deferred Member) may direct the Trustee to sell, offer to sell,
exchange or otherwise dispose of The Hartford Stock allocated to any such individual’s
Accounts in accordance with the provisions, conditions and terms of such tender offer and
the provisions of this Section, provided, however, that such directions shall be
confidential and shall not be divulged by the Trustee or independent record keeper to the
Company or to any director, officer, employee or agent of the Company, it being the intent
to ensure that the Company (and its directors, officers, employees and agents) cannot
determine the direction given by any Member, Deferred Member or Beneficiary. Such
instructions shall be in such form and shall be filed in such manner and at such time as the
Trustee may prescribe.

(B) Trustee Action on Member Instructions. The Trustee shall sell, offer to sell,
exchange or otherwise dispose of The Hartford Stock allocated to the Member’s, Deferred
Member’s or Beneficiary’s Accounts with respect to which it has received directions to do so
under this Section 8.6. The proceeds of a disposition directed by a Member, Deferred Member
or Beneficiary from his or her Accounts under this Section 8.6 shall be allocated to such
individual’s Accounts and be governed by the provisions of this Section or other applicable
provisions of the Plan and the trust agreements related hereto.

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(C) Trustee Action With Respect to Members Not Issuing Instructions or Issuing Invalid
Instructions. To the extent to which Members, Deferred Members and Beneficiaries do not
issue valid directions to the Trustee to sell, offer to sell, exchange or otherwise dispose
of The Hartford Stock allocated to their Accounts, such individuals shall be deemed to have
directed the Trustee that such shares remain invested in The Hartford Stock subject to all
provisions of the Plan, including Section 8.6(D).

(D) Investment of Plan Assets after Tender Offer. To the extent possible, the
Trustee shall reinvest the proceeds of a disposition of The Hartford Stock in an
individual’s Accounts in The Hartford Stock as expeditiously as possible in the exercise of
the Trustee’s fiduciary responsibility and shall otherwise be held by the Trustee subject to
the provisions of the trust agreement and the Plan. In the event that The Hartford Stock is
no longer available to be acquired following a tender offer, the Company may direct the
substitution of new employer securities for such Stock or for the proceeds of any
disposition of such Stock. Pending the substitution of new employer securities or the
termination of the Plan and trust, the Trust Fund shall be invested in such securities as
the Trustee shall determine; provided, however, that, pending such investment, the Trustee
shall invest the cash proceeds in short-term securities issued by the United States of
America or any agency or instrumentality thereof or any other investments of a short-term
nature, including corporate obligations or participations therein and interim collective or
common investment funds.

ARTICLE NINE

MEMBER LOANS

BEFORE TERMINATION OF EMPLOYMENT

9.1 Request for a Loan; Consequences of Request. At any time before Termination of
Employment, a Member may make a request, in a manner and by the date required by the Plan
Administrator, for a loan of a whole dollar amount from his or her Accounts. By making such a
request, the Member (A) specifies the amount and the term of the loan, (B) agrees to the annual
percentage rate of interest, (C) agrees to the finance charge, (D) promises to repay the loan, and
(E) authorizes the Company to make regular payroll deductions to repay the loan. Loans will be
permitted only if all of the conditions described in the next paragraph are satisfied. Permitted
loans will be deducted from Member Accounts as of the Loan Valuation Date, and will be paid in cash
as soon as practicable thereafter. Amounts so deducted will not participate in the investment
experience of the Plan.

9.2 Conditions for Taking a Loan.

(A) Loan Amount. The loan must be at least $500, but cannot exceed the lesser of:
(a) 50% of the Member’s Vested Share (determined based on the most recent information
available to the Plan Administrator), or (b) $50,000 minus the Member’s highest outstanding
loan balance (if any) during the preceding one year period.

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(B) Order of Sources for Loans. Loans can only be taken from the Accounts listed in
Section 9.3, and they must also be taken according to the order of sources for loans listed
in that Section, such that the full amount must be borrowed from each source on the list,
beginning with the first source on the list, before any amount may be borrowed from the next
source on the list (unless otherwise stated on the list).

(C) Required Term and Repayment Schedule. The loan must be repaid no less
frequently than on a monthly basis over a period of twelve, twenty-four, thirty-six,
forty-eight or sixty months, except that a Member who requests a loan to buy his or her own
principal residence may repay the loan over a period of seventy-two through one
hundred-eighty months, in twelve month increments. Extensions of loan terms will not be
permitted after a loan is made. If a Member is serving in the Armed Services of the United
States and loan repayments are suspended pursuant to Section 9.5, the term of the loan will
be extended by the period of military service to the extent consistent with Code Section
414(u).

(D) Maximum Number of Loans. A Member may have no more than two loans outstanding
at any time.

(E) Other Conditions. The Plan Administrator may make such additional conditions or
rules for taking loans as may be determined appropriate in its sole discretion, which
conditions shall be in writing and communicated to Members. Such written conditions are
incorporated herein by reference.

9.3 Order of Sources for Loans.

	 	(A)	 	Before-Tax Rollover Account.
	 
	 	(B)	 	After-Tax Rollover Account
	 
	 	(C)	 	Basic Before-Tax and Supplemental Before-Tax Investment Accounts.
	 
	 	(D)	 	Before-Tax Catch-Up Contributions Account.
	 
	 	(E)	 	Prior Plan Transfers.
	 
	 	(F)	 	Basic After-Tax Investment Account.
	 
	 	(G)	 	Supplemental After-Tax Investment Account
	 
	 	(H)	 	ESOP Account.
	 
	 	(I)	 	Floor Company Contributions in the Company Contribution Account.
	 
	 	(J)	 	Vested Matching Company Contributions in the Company Contribution Account.

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	 	(K)	 	Reinvested Dividends Attributable to The Hartford Financial Services Group,
Inc. Stock Fund.
	 
	 	(L)	 	Roth 401(k) Rollover Account.
	 
	 	(M)	 	Basic Roth 401(k) and Supplemental Roth 401(k) Investment Account.
	 
	 	(N)	 	Roth 401(k) Catch-Up Contributions Account.

9.4 Interest Rates for Loans. The Plan Administrator shall establish and communicate to Members a reasonable rate of interest for loans that it determines to be commensurate with the interest rates
charged by persons in the business of lending money for loans in similar circumstances, which
interest rate shall remain in effect for the term of the loan. Such rate shall be determined as
follows: On the last business day of February, May, August, and November of each Plan Year, the
Plan Administrator shall determine the prime rate published in the Wall Street Journal on that day,
and then add 1% to that prime rate (the “Applicable Interest Rate”). The Plan Administrator shall
then set the Plan loan interest rate for the next calendar quarter equal to the Applicable Interest
Rate. The rate of interest on a loan to a Member who is serving in the Armed Services of the
United States shall not exceed such rate as may be prescribed by applicable law.

9.5 Other Repayment Terms; Prepayment. Loan repayments will be made to the Accounts from
which the loan was taken in reverse order, beginning with the last source in Section 9.3 from which
the loan was taken, and working backwards to the first source. Repayments will be invested in the
Investment Funds in accordance with the Member’s investment elections at the time of repayment. No
loan repayment will be credited with investment experience under the Plan until the date designated
by the Plan Administrator. The entire outstanding balance of a loan may be prepaid at any time,
with interest through the date of prepayment. The date of prepayment will be date designated by
the Plan Administrator. If a Member is serving in the Armed Services of the United States, loan
repayments will be suspended during the period of active service. Upon completion of active
military service, loan repayments will resume.

9.6 Loan Default during Employment. Under certain circumstances, including, but not
limited to, the failure of a Member to make repayment of a loan for ninety (90) days, the Plan
Administrator may declare a Member’s loan to be in default. In the event default is declared, the
outstanding loan balance and any accrued interest may be treated as a withdrawal before Termination
of Employment under Article Ten to the extent that the Member is eligible to make such a
withdrawal.

9.7 Outstanding Loan Balance at Termination of Employment.

(A) Certain Members Eligible to Continue Loan Repayments. Upon Termination of
Employment of a Member who (i) has a Vested Share of $5,000 or more (effective March 28,
2005, more than $1,000), and (ii) has not elected a distribution of his or her Accounts from
the Plan, such Member may elect to continue to make loan repayments on his or her
outstanding loan balance in the manner approved by the Plan Administrator. If such a Member
fails to make a valid election to continue loan repayments, or elects a distribution of his or her Accounts
from the Plan, then the provisions of the next succeeding paragraph shall apply.

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(B) Other Members. Upon Termination of Employment of a Member who does not satisfy
the requirements of the immediately preceding paragraph, the outstanding loan balance of
such a Member shall become due and payable and shall either be canceled or, if the Member so
elects, prepaid in full to his or her Accounts with interest to the date of prepayment. Any
prepayment must be made by the Valuation Date following Termination of Employment or, if
earlier, the Valuation Date that applies to the Member’s distribution or deferral election.

9.9 Death after Request for Loan. If a Member requests a loan and dies after the
issuance of any check for any part of such loan, but before negotiation of such check, then any
unpaid part of the loan as represented by the non-negotiated check will be paid to the Member’s
estate. If a Member requests a loan and dies before the issuance of any check for any part
of such loan, then the request for the loan shall be null and void with respect to the part of the
loan represented by the check that was not issued. For purposes of this Section, a check will be
considered issued on the earlier of (i) the date of issuance shown on the check, or (ii) the Loan
Valuation Date.

ARTICLE TEN

MEMBER WITHDRAWALS

BEFORE TERMINATION OF EMPLOYMENT

10.1 Non-Hardship Withdrawals.

(A) Request for a Non-Hardship Withdrawal. At any time before Termination of
Employment, a Member may make a request, in a manner and by the date required by the Plan
Administrator, for a non-hardship withdrawal of a dollar or percentage amount from his or
her Accounts. Non-hardship withdrawals will be permitted to the extent that the conditions
of Section 10.1(B) are satisfied. Permitted non-hardship withdrawals will be deducted from
a Member’s Accounts as of the Withdrawal Valuation Date, and will be distributed as soon as
practicable thereafter. Amounts so deducted will not participate in the investment
experience of the Plan. A Member who takes a non-hardship withdrawal shall not be required
to cease contributing Basic and Supplemental Savings under the Plan.

(B) Conditions for Non-Hardship Withdrawals.

(i) Minimum Amount for Withdrawal. The amount for withdrawal must be at least $500.

(ii) Proration of Withdrawal Among Accounts. Withdrawals by Members with Accounts in
more than one Investment Fund must be prorated among such Accounts based on their
respective values.

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(iii) Order of Sources for Withdrawals. Withdrawals can only be taken with respect
to all or a portion of the Accounts listed in Section 10.1(C), and they must also be
taken according to the order of sources for withdrawals listed in Section 10.1(C),
such that the full amount must be withdrawn from each source on the list, beginning
with the first source on the list, before any amount may be withdrawn from the next
source on the list (unless otherwise stated on the list).

(iv) Other Conditions. The Plan Administrator may make such additional
conditions or rules for making non-hardship withdrawals as may be determined
appropriate in its sole discretion, which conditions shall be in writing and
communicated to Members. Such written conditions are incorporated herein by
reference.

(C) Order of Sources for Non-Hardship Withdrawals.

(i) Supplemental After-Tax Investment Account

(ii) Rollover Account

(iii) ESOP Account.

(iv) Amounts attributable to Floor Company Contributions in the Company Contribution
Account that were made with respect to payroll periods prior to January 1, 2004,
except that a Member who has completed less than 60 months of Service may
only withdraw such Floor Company Contributions that were made more than 24 months
before the proposed withdrawal date (and after withdrawing the available amounts,
such a Member may withdraw amounts from the source described in the next paragraph).
Amounts attributable to Floor Company Contributions made with respect to payroll
periods commencing on or after January 1, 2004 cannot be withdrawn pursuant to this
provision.

(v) Basic After-Tax Investment Account.

(vi) Vested Matching Company Contributions in the Company Contribution Account,
except that a Member who has completed less than 60 months of Service may
only withdraw the Vested Matching Company Contributions that were made more than 24
months before the proposed withdrawal date.

(vii) Reinvested Dividends Attributable to The Hartford Financial Services Group.,
Inc. Stock Fund.

(viii) Prior Plan Transfers.

(D) Non-Hardship Withdrawal of Before-Tax and Roth 401(k) Savings at Age 59 1/2. A
Member who has reached age 59 1/2 may, without regard to financial hardship, withdraw all or a
portion of his or her Basic Before-Tax Investment Account, Supplemental Before-Tax

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Investment Account, Before-Tax Catch-Up Contributions Account, Basic Roth 401(k) Investment
Account, Supplemental Roth 401(k) Investment Account, Roth 401(k) Catch-Up Contributions
Account and amounts attributable to Floor Company Contributions in his or her Company
Contribution Account (regardless of whether those Floor Company Contributions are
attributable to payroll periods commencing on or after January 1, 2004).

10.2 Hardship Withdrawals

(A) Ability to make Hardship Withdrawals. A Member who has not reached age 59 1/2
and who satisfies all of the requirements of this Section 10.2 may make a hardship
withdrawal of all or a portion of his or her Supplemental Before-Tax Investment Account,
Basic Before-Tax Investment Account, Before-Tax Catch-Up Contributions Account, Supplemental
Roth 401(k) Investment Account, Basic Roth 401(k) Investment Account, Roth 401(k) Catch-Up
Account and the amount of his or her Company Contribution Account attributable to Prior Plan
Transfers, other than the portion of each such Account that represents earnings credited to
the Account after December 31, 1988. A Member who has reached age 59 1/2 may withdraw all or
a portion of the foregoing Accounts without regard to financial hardship.

(B) Bona Fide Financial Hardship and Immediate and Heavy Financial Need Required. A
hardship withdrawal will not be permitted unless the Member establishes to the satisfaction
of the Hardship Committee that a bona fide financial hardship exists. For this purpose, a
bona fide financial hardship means an immediate and heavy need to draw on financial
resources not reasonably available from other sources of the Member. Bona fide financial
hardships shall include (i) cash down payments and/or closing costs associated with the
purchase of a Member’s principal residence, (ii) unreimbursed expenses for medical care
described in section 213(d) of the Code previously incurred by the Member, the Member’s
spouse or any dependents of the Member (as defined in section 152 of the Code) or necessary
for these persons to obtain medical care described in section 213(d), (iii) room and board
expenses, tuition expenses and related educational fees for post-secondary education for
such persons for the next academic year, (iv) payments to prevent the eviction of a Member
from his or her principal residence or the foreclosure of a mortgage on such residence, (v)
burial or funeral expenses for a Member’s parent, spouse, child or dependent, and (vi)
expenses to repair damage to a Member’s principal residence, which would qualify for a
casualty deduction under IRS rules without regard to the amount of the loss as a percentage
of the Member’s income (collectively, “Safe Harbor Hardships”). Bona fide financial
hardship shall also include any other reasons deemed appropriate by the Hardship Committee
(“Non-Safe Harbor Hardships”). In order to receive a withdrawal for a Non-Safe Harbor
Hardship, a Member must demonstrate lack of other reasonably available financial resources
by disclosing details of his or her personal and family finances. In order to receive a
withdrawal for a Safe Harbor Hardship, a Member must agree to suspend all Before-Tax
Savings, Roth 401(k) Savings, After-Tax Savings, Before-Tax Catch-Up Savings and Roth 401(k)
Catch-Up Savings for a six month period as described in Article Four. The Hardship Committee shall make determinations of financial hardship in a uniform and
nondiscriminatory manner, with reference to all the relevant facts and circumstances and in
accordance with applicable tax law under Code Section 401(k).

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(C) Withdrawal Limited to Financial Need (Plus Taxes). The amount of a hardship
withdrawal cannot exceed the amount of the immediate and heavy financial need demonstrated
by the Member (plus applicable taxes on the withdrawal). For this purpose, loans and
amounts withdrawn from other Accounts will be considered.

(D) All Available Loans and Distributions must be Taken First. A hardship
withdrawal will not be permitted unless the Member has obtained (i) all distributions (other
than hardship distributions) available under all other retirement plans (including this
Plan) maintained by the Company, including, effective November 29, 2001, distribution of
all cash dividends currently available to the Member under Section 7.6 of this Plan and (ii)
all non-taxable loans available under all retirement plans maintained by the Company,
including this Plan, provided that making the payments on such loans does not result in a
financial hardship for the Member.

10.3 Penalty for Making Withdrawals from Certain Accounts. Matching Company Contributions
under Article 5 will be suspended for three months after the applicable Withdrawal Valuation Date
for any Member who has not reached age 591/2 and who makes a non-hardship or hardship withdrawal of
any amount from his or her Basic After-Tax Investment Account, or any amount of Vested Matching
Company Contributions from his or her Company Contribution Account.

10.4 Form of Payment. Withdrawal payments from The Hartford Financial Services Group, Inc.
Stock Fund shall be made in the form of The Hartford Stock, except that: (A) fractional shares will
be paid in cash, (B) a recipient may request that such amounts be paid in cash, and (C) hardship
withdrawals will be paid in cash. Withdrawal payments from any Investment Fund other than The
Hartford Financial Services Group, Inc. Stock Fund shall be paid in cash in a single sum.

10.5 Death after Request for Withdrawal. If a Member dies after requesting a withdrawal,
payment of the withdrawn amounts will be made (or will not be made) in accordance with the rules in
Article Nine for death after a loan request.

10.6 Direct Rollover of Withdrawals. Hardship Withdrawals do not qualify as “eligible
rollover distributions” under Article Eleven.

ARTICLE ELEVEN

DISTRIBUTIONS FROM ACCOUNTS

11.1 Types of Distributions

(A) Distribution or Deferral for Members Under Age 70
  1/2. Upon Termination of
Employment, a Member may request a distribution of the value of his or her Vested Share. If
a Member does not make such a request, and the value of such Vested Share is less than $5,000
(effective March 28, 2005, is $1,000 or less), such value will be paid to the Member in a
single lump sum payment as soon as practicable. If a Member does not make such a request,
and the value of the Member’s Vested share is $5,000 or more (effective March 28, 2005, is
greater than

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$1,000), the Member shall be deemed to request a deferral of the distribution
of such Vested Share until such time that the Member reaches age 70 1/2. Such a Member
automatically shall become a Deferred Member, and may request a distribution of all or part
of the Vested Share at any time before reaching age 70 1/2 (subject to a minimum distribution
amount of $500 for any partial distribution) in accordance with the Plan.

(B) Distributions to Certain Members who Have Reached Age 70 1/2. Effective January
1, 1998 or such later date as determined by the Plan Administrator, except as provided
below, a Member who reaches age 70 1/2 on or after January 1, 1997 is not required to commence
distribution of his or her Vested Share until Termination of his or her Employment.
However, such a Member may request a distribution of all or part of such Vested Share at any
time after reaching age 70 1/2 (subject to a minimum distribution amount of $500 for any
partial distribution). A Member who reaches age 70 1/2 on or after January 1, 1988 but before
January 1, 1997 must have commenced distribution of his or her Vested Share by no later than
the April 1 following the year in which he or she attains age 70 1/2. A Deferred Member or a
Member who is a “5 percent owner” as defined in Code Section 414(q)(1) and (3) must commence
distribution of his or her Vested Share by no later than the April 1 following the year in
which he or she reaches age 70 1/2. The Vested Share of such Member shall be paid under the
payment method described in Section 11.6(A) below assuming the maximum allowable number of
payments based upon the Member’s age, if permissible under the terms of that payment method.
If payment under the terms of that payment method is not permissible, the Vested Share of
the Member shall be paid in an immediate lump sum. Alternatively, the Member may elect that
his or her Vested Share be paid under the payment method described in Section 11.6(B) below,
if permissible under the terms of that payment method, or in an immediate lump sum. Payment
of the Vested Share of a Member who has reached age 70 1/2 pursuant to this Section shall be
made no less frequently than annually, and once such payment has commenced, the Member may
not elect an alternate method for payment of such Vested Share while the Member is still an
Eligible Employee.

(C) Distribution to Beneficiary in the Event of Death. Upon the death of a
Member or Deferred Member, the value of such person’s Vested Share shall be distributed in a
lump sum to his or her Beneficiary. However, if the value of the Vested Share is $5,000 or
more (effective January 1, 2006, is greater than $1,000): (i) if the spouse is the sole
Beneficiary, such spouse may elect to defer receipt of the Vested Share until the year in
which the Member or Deferred Member would have reached age 70 1/2, or (ii) if the Beneficiary
is a Non-Spouse Beneficiary, such Beneficiary may elect to defer receipt of the Vested Share
for up to five years from the date of death of the Member or Deferred Member or may elect to
receive a periodic distribution under Section 11.7(B), subject to such minimum distribution
rules as may be required by law or determined appropriate by the Plan Administrator. If the
value of the Vested Share to be distributed is $5,000 or more (effective January 1, 2006, is
greater than $1,000) and the Beneficiary does not file application for distribution of such
Vested Share nor elect to defer receipt of such Vested Share, (i) if the spouse is the sole
Beneficiary, then such Beneficiary shall be deemed to have elected to defer receipt of such Vested Share until the Member or Deferred
Member would have reached age 70 1/2, or (ii) if the Beneficiary is a Non-Spouse Beneficiary,
then such Beneficiary shall be deemed to have elected to defer receipt of such Vested Share
until the end of the calendar year following the calendar year in which the death of the
Member or Deferred Member occurred. However, any Beneficiary described in the preceding
sentence may

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file application for distribution of all or part of such Vested Share at any
time prior to the date when such distribution is required to be made, subject to a minimum
distribution amount of $500 for partial distributions to spouses, and subject to such minimum
distribution rules as may be required by law or determined appropriate by the Plan
Administrator for partial distributions to Non-Spouse Beneficiaries.

(D) ESOP Distributions. Notwithstanding the provisions of (A), (B), or (C), above,
and Section 11.5, effective November 29, 2001, a Member or Deferred Member may elect to
commence distribution of the value of his or her Vested Share invested in The Hartford
Financial Services Group, Inc. Stock Fund not later than one year after the end of the Plan
Year—

(i) in which the Member separates from service by reason of (a) Retirement in the
case of a Member with an original hire date with the Company before January 1, 2002,
(b) separation of service on or after reaching age 65 in the case of a Member with an
original hire date with the Company on or after January 1, 2002, (c) Disability, or
(d) death; or

(ii) which is the fifth Plan Year following the Plan Year in which the Member
otherwise separates from service, unless the Member is reemployed by the Company or
any subsidiary, affiliate or predecessor of the Company before such year.

Unless the Member or Deferred Member or Beneficiary otherwise elects, distribution of the
value of a Member’s Vested Share invested in The Hartford Financial Services Group, Inc.
Stock Fund will be made in substantially equal periodic payments of a period not longer than
the greater of—

(x) five years; or

(y) if the fair market value of the Vested Share invested in The Hartford Financial
Services Group, Inc. Stock Fund exceeds $935,000 (in 2008) as of the date
distribution is required to begin under this Article Eleven, five years plus an
additional one year (up to an additional five years) for each $185,000 increment or
fraction thereof by which such value exceeds $935,000. The dollar amounts prescribed
in this paragraph shall be adjusted for cost of living increases as prescribed by the
Secretary of the Treasury.

11.2 Manner of Requesting Distribution. All requests for any distributions permitted by
this Article Eleven shall be made in a manner and by the date required by the Plan Administrator.
No distribution will be made unless the procedures prescribed by the Plan Administrator are
properly followed.

11.3 Valuation of Distribution. Distributions will be valued as of the date that the Plan
Administrator (or designee) receives a properly completed distribution request, which date shall be
treated as the Valuation Date that applies to the distribution.

11.4 Time of Distribution. All distributions will be paid to the appropriate payee as soon
as practicable following the applicable Valuation Date. If part of a distribution is to be made in
the form of stock, the stock will be distributed after the cash part of the distribution. Unless a
Member so elects, payment of a Member’s Vested Share shall commence no later than 60 days after the
close of the Plan Year in which the latest of the following occurs:

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(1) The Member attains age 65,

(2) Occurs the 10th anniversary of the date on which the Member commenced
participation in the Plan, or

(3) The Member terminates Service with the Company and its affiliates.

11.5 Form of Distribution. Except as otherwise provided in the Plan, distributions shall
be made in a form determined under the rules of this Section.

(A) Stock and Cash Distributions. Distributions from The Hartford Financial
Services Group, Inc. Stock Fund shall be made in the form of The Hartford Stock, except
that: (i) fractional shares will be paid in cash, and (ii) a recipient may request that
such amounts be paid in cash. Distributions from any Investment Fund other than The
Hartford Financial Services Group, Inc. Stock Fund shall be paid in cash.

(B) Lump Sum Distributions. Distributions shall be paid in a single lump sum,
unless otherwise permitted by the Plan.

(C) Periodic Distributions. One of the two forms of periodic distribution
described in Section 11.6 below may be requested by (i) a Member whose employment terminates
after reaching age 55, (ii) a Member whose employment terminates before reaching age 55 due
to Retirement provided the Member has an original hire date with the Company before January
1, 2002, (iii) a Member whose employment terminates before reaching age 55 due to
Disability, and (iv) a Deferred Member who has reached age 55. Prior to November 29, 2001,
periodic distributions shall be made in cash. Periodic distributions that commence or are
modified on or after November 29, 2001 shall be made in the form of The Hartford Stock, or
cash, or both, as provided in (A), above.

(D) Prior Plan Transfers. Alternative methods of distribution may apply to that
portion of an Account attributable to a Prior Plan Transfer.

11.6 Distribution of Periodic Payments. A person described in Section 11.5(C) may request
one of the forms of periodic distributions described in this Section.

(A) Annual Installments over a Selected Period of Years. Annual payments may be
made over a period of years selected by the recipient that does not exceed the lesser of (i)
30 years, or (ii) the applicable Distribution Period set forth in Appendix A. The first of
such payments shall be made as soon as practicable after the applicable Valuation Date, and
the remaining payments shall be made annually on each anniversary thereafter. The amount of
each payment shall be determined by multiplying the value of the recipient’s Accounts as of
the applicable Valuation Date by a fraction, the numerator of which shall be one, and the denominator of which shall
be the number of years in the selected period.

(B) Annual Installments over Expected Life. Annual payments may be made to a Member
over a period of years in an amount determined under Appendix A. The first of such payments
shall be made as soon as practicable after the applicable Valuation Date, and the remaining
payments shall be made annually on each anniversary thereafter. The amount of each payment

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shall be determined by dividing the value of the recipient’s Accounts as of the applicable
Valuation Date by the applicable Distribution Period set forth in Appendix A based upon the
Member’s attained age in the year of the distribution.

(C) Later Distribution of Lump Sum Payment. A person who previously requested
or is otherwise receiving a distribution of periodic payments under this Section may, at any
time thereafter, request a lump sum distribution of the value of any unpaid installments.
In addition, once the value of a Member’s or Deferred Member’s vested Accounts falls below
$1,000, the balance of the vested Accounts will be distributed to the Member or Deferred
Member in a single lump sum payment in lieu of any further installments.

(D) Minimum Required Distributions. Effective January 1, 2003, notwithstanding
anything in the Plan to the contrary, all distributions from the Plan shall be made in
accordance with Code Section 401(a)(9) and Final Treasury Regulations issued thereunder.

11.7 Distribution in the Event of Death.

(A) Death of Member or Deferred Member after Requesting Non-Periodic Distribution.
If a Member or Deferred Member requests a non-periodic distribution and dies after
the applicable Valuation Date or the issuance of any check or shares of The Hartford Stock
for any part of such distribution, but before negotiating any check comprising all
or a portion such distribution, the cash portion of the distribution shall be paid to his or
her estate. If such a person dies before the Valuation Date or issuance of a check
or shares of The Hartford Stock, then the distribution shall be paid to his or her
Beneficiary. For purposes of this paragraph, a check or share of stock will be considered
issued on the earlier of (i) the date of issuance shown on the check or stock certificate,
or (ii) the Valuation Date.

(B) Death of Member or Deferred Member after Requesting Periodic Distribution. If a
Member or Deferred Member requests a periodic distribution permitted by Section 11.6, but
dies before all of the installments comprising such distribution are paid, then if
the Beneficiary of such Member or Deferred Member is not a spouse, and if an installment is
paid with a Valuation Date that occurred before his or her death and before the negotiation
of the check comprising all or a portion of such installment, then such cash portion of the
installment shall be paid to his or her estate, and the remaining value of the Accounts in
question shall be paid to his or her Beneficiary in a single lump sum payment, unless such
Beneficiary elects to have payments made over a period not to exceed the Beneficiary’s life
expectancy. In the latter case, the first of such payments shall commence no later than the
end of the year following the year of the Member’s death, and the remaining payments shall
be made annually thereafter. The amount of each payment shall be determined by multiplying the value of the Accounts as of the applicable
Valuation Date by a fraction, the numerator of which shall be one, and the denominator of
which shall be the number of years remaining in the period. If the sole Beneficiary of the
Member or Deferred Member is a spouse, then such spouse Beneficiary may elect to have
payments made over a period not to exceed the spouse’s life expectancy recalculated
annually. In such case, the first of such payments shall commence no later than the end of
the year following the year of the Member’s death, or if the Member had not yet attained age
70 1/2, the year in which the Member would have attained age 701/2, if later. Alternatively,
the spouse may request a lump sum

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distribution of the value of the Accounts as permitted by the Plan (and no deferral of receipt of such value will be permitted).

(C) Death of Spouse Beneficiary. If a spouse Beneficiary with Accounts in the Plan
dies, payment of the remaining value of such Accounts shall be made to the Beneficiary of
such spouse, if any, or if none, to the estate of such spouse, in each case such payment to
be made in the form of a single lump sum payment.

(D) Proof of Death and Rights of Beneficiaries; Disputes. The Pension
Administration Committee and/or the Plan Administrator may require and rely on such proof of
death and such evidence of the right of any Beneficiary or other person to receive the
undistributed value of the Accounts of a deceased Member, Deferred Member or Beneficiary as
determined appropriate, and the determination of the rights of Beneficiaries or other
persons to receive payment shall be conclusive. Payment to any Beneficiary shall be final
and shall fully satisfy and discharge the obligation of the Plan with respect to any and all
Accounts of a deceased Member or Deferred Member. In the event of a dispute regarding an
Account, the Pension Administration Committee may make a final determination, or initiate or
participate in any action or proceeding as may be necessary or appropriate to determine any
Beneficiary under the Plan. During the pendency of any action or proceeding, the Pension
Administration Committee may deposit an amount equal to the disputed payment with a court
and such deposit shall relieve the Plan of all of its obligation with respect to any such
disputed Accounts. Alternatively such Committee, at its discretion, may direct any disputed
Accounts be invested in the Investment Fund involving the least risk of loss of assets (as
determined in the sole discretion of such Committee) pending resolution of the dispute
regarding such Accounts.

11.8 Direct Rollover of Certain Distributions.

(A) Effective Date. This Section 11.8 shall apply to distributions made on or
after December 31, 2001.

(B) Definitions. For purposes of this Section, the following definitions shall
apply:

(i) “Distributee” includes a Member or Deferred Member, his or her spouse
Beneficiary, and any spouse or former spouse who is an alternate payee under a QDRO
pursuant to Article Twelve. On and after May 1, 2007, Distributee will include
Beneficiaries to the extent permitted by the Code.

(ii) “Eligible Rollover Distribution” is a distribution of any part of a person’s
Vested Share, except: (a) any distribution that is one of a series of substantially
equal periodic payments made for the life or life expectancy of the Distributee, or
for a specified period of ten years or more, (b) any distribution required under Code
Section 401(a)(9), (c) any hardship withdrawal under Section 10.2 of the Plan, (d)
any portion of a distribution not includable in gross income, and (e) any other
distribution that does not qualify as an eligible rollover distribution under the
Code. A portion of a distribution shall not fail to be an eligible rollover
distribution merely because the portion consists of after-tax contributions or Roth
401(k) contributions which are not includible in gross income.

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However, such portion may be transferred only to an individual retirement account or annuity described in
Code Section 408(a), 408(b) or 408A or to a qualified defined contribution plan
described in Code Section 401(a) or 403(a) 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.

(iii) “Eligible Retirement Plan” means, to the extent permitted by the Code, (a) an
individual retirement account described in Code Section 408(a), (b) an individual
retirement annuity described in Code Section 408(b), (c) an annuity plan described in
Code Section 403(a), (d) a qualified plan described in Code Section 401(a) that
accepts the Eligible Rollover Distribution, (e) an annuity contract described in Code
Section 403(b), or (f) an eligible plan under Code Section 457(b) which is maintained
by a state, a 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
relations order, as defined in Code Section 414(p).

(iv) “Direct Rollover” means a payment by the Plan directly to the Eligible
Retirement Plan specified by the distributee in cash and/or shares.

(C) Ability to Request a Direct Rollover. If the Plan Administrator determines that
a withdrawal or distribution hereunder qualifies as an Eligible Rollover Distribution, the
Distributee may request a Direct Rollover of all or part of such withdrawal or distribution
to one or two Eligible Retirement Plans that accept such Direct Rollover.

(D) Direct Rollovers Not Permitted in Certain Circumstances. In the event that the
provisions of this Section 11.8 or any part hereof ceases to be required by law, than this
Section or the part not required automatically shall be of no further force or effect.

11.9 Elective Transfers From Plan. A distribution or withdrawal from the Plan shall be
eligible for an elective transfer to a qualified transferee employee plan, and as such will
generally be treated as a distribution of a Member’s accrued benefit under the Plan (but shall not
be treated as a distribution for purposes of the minimum distribution requirements of Code Section
401(a)(9)), only if all of the following requirements are satisfied: (A) the transfer must be payable proximate to, and solely on
account of, a disposition of assets or a subsidiary described in Code Sections 401(k)(10), (B) the
transfer must satisfy the requirements of Code Section 414(l), (C) the transfer must be conditioned
upon a voluntary, fully informed election by the Member to make the transfer, and in making such
election, the Member must have the option of retaining his or her Account benefits (including all
optional forms of benefit) under this Plan, (D) if Code Sections 401(a)(11) and 417 otherwise apply
to the Account, the spousal consent requirements of those Section must be met with respect to the
transfer, (E) the notice requirement described in Code Section 417, if applicable, must be met with
respect to the Member and spousal transfer election, (E) the Accounts to be transferred must be
eligible for immediate distribution or withdrawal under the Plan, (F) the amount of the benefit
transferred must be equal to the transferor’s

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entire nonforfeitable Account balance under the Plan, and (G) the Member must be fully vested in the transferred benefit under the transferee plan.

11.10 Procedure where Person is Unable to be Located. If the Plan Administrator is unable
to locate any person who is or may become entitled to a benefit under the Plan because the identity
or whereabouts of the person cannot be ascertained, the Plan Administrator shall give written
notice addressed to such person at his or her last known address as shown on the records of the
Company, unless the amount of such benefit is $500.00 or less. This amount shall automatically be
forfeited, without notice, if determined appropriate by the Plan Administrator, and such forfeiture
shall be applied to reduce future Company Contributions, subject to reinstatement, if a proper
application for such amount is subsequently made. Any reinstatement shall be made with interest,
which for purposes of this Section means, for any particular year, interest at the January first
Federal mid-term interest rate published by the Internal Revenue Service for that year, such
January first rate to apply on a prorated basis to all months in such year, and such interest to be
compounded annually. If the amount of such benefit is greater than $500.00, the amount of such
benefit for such person shall continue to be maintained in the Plan until the earlier of: (A) the
date such person makes application therefor, (B) the third anniversary of the date the Plan
Administrator first gave notice to such person as provided in this Section, or (C) the day before
such benefit would otherwise escheat under any applicable law. If the Plan Administrator, by
making reasonably diligent effort, cannot locate such person within the time described in the
preceding sentence, the amount of such person’s benefit under the Plan shall be forfeited, and such
forfeiture shall be applied to reduce future Company Contributions, subject to reinstatement, upon
proper application as stated in this section.

ARTICLE TWELVE

QUALIFIED DOMESTIC RELATIONS ORDERS

12.1 Procedures for QDROs. The Pension Administration Committee shall establish
procedures consistent with Code Section 414(p) to determine the qualified status of any Domestic
Relations Order, which shall be referred to herein as a “DRO” and which means a judgment, decree or
order or any modification thereof (including approval of a property settlement agreement) that (A)
relates to the provision of child support, alimony payments or marital property rights to a spouse,
former spouse, child, or other dependent of a Member, and (B) is made pursuant to a state domestic
relations law (including a community property law). Such Committee shall also establish procedures
to administer any QDRO (as defined below), and to provide all notices required by Code Section 414(p) to the
Member, and to the Alternate Payee, which shall mean a spouse, former spouse, child or other
dependent of a Member who is recognized by a DRO as having a right to receive all, or a portion of,
the benefits payable under the Plan with respect to such Member. All procedures so established
shall be binding on all Members, Deferred Members and Alternate Payees. The Pension Administration
Committee may charge a fee to the Accounts of a Member, Deferred Member or Alternate Payee for
processing of a DRO.

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12.3 Determination of QDRO Status. Within a reasonable period of time after the receipt
of a DRO (or any modification thereof), the Pension Administration Committee or designee shall
determine whether such order qualifies as a qualified domestic relations order under Code Section
414(p). Any DRO that so qualifies shall be considered a “QDRO” for purposes of this Article Twelve.
A DRO shall not fail to qualify as a QDRO merely because it provides for payment to the Alternate
Payee before the Member’s Termination of Employment.

12.4 Establishment of Temporary Holding Account. If, during any period in which the issue
of whether a DRO qualifies as a QDRO is being determined, an Alternate Payee would be entitled to
payment if the order were determined to be a QDRO, the Pension Administration or designee shall
cause to be segregated in a separate account all amounts that would be payable to the Alternate
Payee during such period if the order were determined to be a QDRO. Notwithstanding anything
herein to the contrary, (A) any amounts held in such an account shall not be eligible for
withdrawal or distribution from the Plan, and (B) such amounts shall not be counted in determining
the maximum amount available for a loan under Article Nine.

12.5 Payment from Temporary Holding Account in Certain Cases. If, by the expiration of the
18 month period beginning on the date the first payment would be required to be made to an
Alternate Payee under a DRO, either (i) it is determined that the DRO does not qualify as a QDRO,
or the issue as to whether the DRO so qualifies has not been resolved, the Pension Administration
Committee or designee shall cause to be paid all amounts which have been segregated pursuant to
Section 12.4, including any earnings having accrued thereon, to the person who would have been
entitled to such amounts if there had been no DRO. Notwithstanding the foregoing, if the Member or
his or her Beneficiaries are not yet entitled, or have not elected, to receive benefit payments
under the Plan, such segregated amounts, including all earnings having accrued thereon, shall be
restored to the Member’s Accounts and invested in accordance with the investment election most
recently submitted by the Member under Article Eight.

12.6 Payment to Alternate Payee of Order if Determined to be a QDRO. If a QDRO is
determined to exist, (i) the Trustee shall be instructed to apply, on a prospective basis, the
terms and provisions of such QDRO, and (ii) any unpaid amounts segregated under this Article Twelve
shall be paid to the applicable Alternate Payee in accordance with the QDRO.

12.7 Subsequent Determination or Order to be Applied Prospectively. If , after the
expiration of the 18-month period beginning on the date the first payment would be required to be
made to an Alternate Payee under a DRO, such DRO is determined to qualify as a QDRO, such QDRO
shall be applied prospectively only.

ARTICLE THIRTEEN

GENERAL MATTERS

RELATING TO COMMITTEES

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13.1 Appointment of Committees. The Board of Directors of Hartford Fire has appointed a
Pension Administration Committee, an Investment and Savings Plan Investment Committee, and a
Hardship Committee, each such Committee to be comprised of the number of members set forth herein.
On and after June 1, 2004, each Committee in its discretion shall appoint additional members to the
respective Committee and accept resignations from existing members, which appointments and
acceptances will be final unless otherwise determined by the Board of Directors of Hartford Fire.
Each Committee shall have a Chairman as designated by the Board of Directors of Hartford Fire prior
to June 1, 2004 (or as subsequently designated by the Committee) from among its regular members,
and shall also designate a Secretary who may be, but need not be, one of the members thereof. Any
person so appointed may resign at any time by delivering his or her written resignation to the
Secretary of Hartford Fire and the Chairman or Secretary of his or Committee.

The Pension Administration Committee shall be comprised of not less than five persons. The
Investment and Savings Plan Investment Committee shall be comprised of not less than four persons,
and the Hardship Committee shall be comprised of not less than three persons. Notwithstanding any
vacancies, the Pension Administration Committee and the Investment and Savings Plan Investment
Committee each may act as long as there are at least three members thereof, and the Hardship
Committee may act as long as there are at least two members thereof.

13.2 Committees to be Named Fiduciaries. Each Committee appointed pursuant to the Plan is
designated as a named fiduciary within the meaning of Section 402(a) of ERISA.

13.3 Authority of Committees. Each Committee shall have the authority, powers and
responsibilities set forth in the Plan, and shall also have such authority, powers and
responsibilities as may from time to time be delegated or allocated to them by resolutions of the
Board of Directors, including, but not limited to, powers reserved to the Board of Directors to the
extent specifically delegated to a particular Committee by the Board of Directors.

13.4 Action by Committees. Action by each Committee may be taken by majority vote of its
members and/or alternate members at a meeting upon such notice, or upon waiver of notice, and at
such time and place as each Committee may determine from time to time; or action may be taken by
written consent of a majority of the members of the Committee without a meeting with the same
effect for all purposes as if assented to at a meeting.

13.5 Policies and Procedures of Committees. Each Committee shall establish such policies,
procedures, rules and regulations as such Committees may deem necessary to carry out the provisions
of the Plan and transactions of their business.

13.6 Appointment of Subcommittees. Each Committee may appoint from among their members
such subcommittees with such powers as may be determined appropriate by the appointing Committee,
and each may authorize one or more of its members or any agent to execute or deliver any
instrument, make any payment, or take any other action on behalf of the appointing Committee.

13.7 Delegation of Committee Authority. Each Committee may in its sole discretion
delegate to one or more of its members or alternate members, or to an administrator or manager, or
to such other individual or agent as may be selected by the Committee, all or a portion of its
authority, powers and

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responsibilities, including the authority to supervise the conduct of the daily affairs of the Committee, or to take any other action on behalf of the delegating Committee
as may be determined appropriate by the Committee in its sole discretion (including the execution
or delivery of any instrument or the making of any payment on behalf of the Committee), each of
which of the foregoing shall be carried out in accordance with the provisions of the Plan and any
policies which may from time to time be established by the delegating Committee.

13.8 Use of Experts by Committees. Each Committee may retain counsel and other independent
advisors, employ agents and provide for such clerical, accounting and other services as it may
require in carrying out its responsibilities under the Plan. To the extent permitted by law, and
to the extent not otherwise paid by the Company, expenses associated with such services shall be
paid from the assets of the Plan.

13.9 Compensation of Committee Members. No member of any Committee shall receive any
compensation for his or her services as such, and except as required by law, no bonds or other
security shall be required of him or her in such capacity in any jurisdiction.

13.10 Liability of Committee Members. Each of the members of the Committees shall use that
degree of care, skill, prudence and diligence in carrying out their duties that a prudent person,
acting in a like capacity and familiar with such matters, would use in the conduct of a similar
situation. Committee members shall not be liable for the breach of fiduciary responsibility of
another fiduciary unless: (A) he or she participates knowingly in, or knowingly undertakes to
conceal, an act or omission of such other fiduciary, knowing such act or omission is a breach, (B)
by his or her failure to discharge his or her duties solely in the interest of the Members and
other persons entitled to benefits under the Plan, for the exclusive purpose of providing benefits
and defraying reasonable expenses of administering the Plan not met by the Company, he or she has
enabled such other fiduciary to commit a breach, (C) he or she has knowledge of a breach by such
other fiduciary and does not make reasonable efforts to remedy the breach, or (D) if the Committee
of which he or she is a member improperly allocates responsibilities among its members or to others
and he or she fails to review prudently such allocation.

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ARTICLE FOURTEEN

ADMINISTRATION OF PLAN —

PENSION ADMINISTRATION COMMITTEE

14.1 Composition of Pension Administration Committee. The Pension Administration
Committee shall be comprised of not less than five members. Notwithstanding any vacancies in
memberships, the Pension Administration Committee may act so long as at least three memberships are
filled.

14.2 Authority and Responsibilities of Pension Administration Committee. The Pension
Administration Committee shall be responsible, except as otherwise herein expressly provided, for
general supervision of the administration of the Plan. Said Committee shall also have such
authority, powers and responsibilities as are set forth in the Plan or may be delegated by the
Board of Directors as provided in Article Thirteen. Said Committee shall also have the right to
exercise powers reserved to the Board of Directors hereunder, including the right to amend the
Plan, to the extent that, in the judgment of said Committee, the exercise of such powers does not
involve any material cost to the Company.

14.3 Confidentiality of Information. For purposes of the regulations under Section 404(c)
of ERISA, the Pension Administration Committee shall be designated the fiduciary responsible for
safeguarding the confidentiality of all information relating to the purchase, sale and holding of
employer securities and the exercise of shareholder rights appurtenant thereto. The Pension
Administration Committee shall safeguard such information pursuant to written procedures providing
for such confidentiality. In addition, for purposes of avoiding any situation for undue employer
influence in the exercise of any shareholder rights, the Pension Administration Committee shall
appoint an independent fiduciary, who shall not be affiliated with any sponsor of the Plan, to
ensure the maintenance of confidentiality pursuant to the regulations under Section 404(c) of
ERISA.

14.4 Interpretation of the Plan. Except as to matters which are required by law to be
determined or performed by the Board of Directors, or which from time to time the Board of
Directors may reserve to itself or allocate or delegate to officers of Hartford Fire or to another
Committee, the Pension Administration Committee shall have the full discretionary authority to
determine all questions and to make all factual determinations regarding any and all matters
arising in the administration, interpretation and application of the Plan, including but not
limited to the right to remedy possible ambiguities, inequities, inconsistencies or omissions, and
including but not limited to questions of interpretation with respect to eligibility to
participate, employment status, amount and timing of benefits payable under the Plan and all other
definitions and questions of interpretation. Such determinations and interpretations shall be
final, conclusive and binding on all parties who have a claim or interest under the Plan.

14.5 Delegation of Authority to Plan Administrator. The Pension Administration Committee
may delegate to the Plan Administrator or other administrator the responsibility of administering
and operating the details of the Plan in accordance with the provisions of the Plan and any
policies which may from time to time be established by the Pension Administration Committee. The
Plan Administrator shall be Hartford Fire’s Vice President, Employee Benefits (or successor or
other person

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holding a similar position). Except as to matters which are required by law to be determined or
performed by the Board of Directors, or which from time to time the Board of Directors may reserve
to itself or allocate or delegate to officers of Hartford Fire or to another Committee, and except
as otherwise provided in the Plan or by the Pension Administration Committee, the Plan
Administrator shall have the full discretionary authority to determine all questions and to make
all factual determinations regarding any and all matters arising in the administration,
interpretation and application of the Plan, including but not limited to the right to remedy
possible ambiguities, inequities, inconsistencies or omissions, and including but not limited to
questions of interpretation with respect to eligibility to participate, employment status, amount
and timing of benefits payable under the Plan and all other definitions and questions of
interpretation. Such determinations and interpretations shall be final, conclusive and binding on
all parties who have a claim or interest under the Plan.

ARTICLE FIFTEEN

MANAGEMENT OF INVESTMENT FUNDS —

INVESTMENT AND SAVINGS PLAN INVESTMENT COMMITTEE

15.1 Composition of Investment and Savings Plan Investment Committee. The Investment and
Savings Plan Investment Committee shall be comprised of not less than four members. Notwithstanding
any vacancies in memberships, the Investment and Savings Plan Investment Committee may act so long
as at least three memberships are filled.

15.2 Authority and Responsibilities of Investment and Savings Plan Investment Committee.
The Investment and Savings Plan Investment Committee shall be responsible, except as otherwise
herein expressly provided, for directing and coordinating all activity relating to the investment
management of the assets of the Plan. Said Committee shall also have such authority, powers and
responsibilities as are set forth in the Plan or may be delegated by the Board of Directors as
provided in Article Thirteen, including, but not limited to the following: (A) Establishment of
one or more trusts for the Plan and any funding agreements for the Plan, (B) Selection and
appointment of the Trustee and any funding agents, (C) Provision, consistent with the provisions
of the Plan and applicable trusts, of direction to the Trustee, which may involve but need not be
limited to direction of investment of all or a part of the Plan assets, and (D) Appointment and
provision for use of investment advisors and investment managers. In discharging the foregoing
responsibilities, the Investment and Savings Plan Investment Committee shall evaluate and monitor
the investment performance of the Trustee and investment managers, if any.

15.3 Trust Fund. All of the funds of the Plan shall be held by a Trustee appointed from
time to time by the Investment and Savings Plan Investment Committee in one or more trusts under a
trust instrument or instruments approved or authorized by said Committee for use in providing the
benefits of the Plan; provided that no part of the corpus or income of the Trust Fund shall be used
for, or diverted to, purposes other than for the exclusive benefit of Members, Deferred Members and
Beneficiaries.

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15.4 Reports to Members and Deferred Members. At least annually at a time to be
determined by the Pension Administration Committee, each Member and Deferred Member shall be
furnished a statement setting forth the value of each of his or her Accounts, together with a
statement of the amounts contributed to each such Account by the Member or Deferred Member and by
the Company and the vested amount of the Company Contribution Account or the earliest time a
portion of the Company Contribution Account will become vested.

15.5 Fiscal Year. The fiscal year of the Plan and the trust shall end on the 30th day of
December in 1997, and shall end on the 31st day of December in years after 1997 or such other date
as may be designated by the Investment and Savings Plan Investment Committee.

ARTICLE SIXTEEN

HARDSHIP WITHDRAWALS —

HARDSHIP COMMITTEE

16.1 Composition of Hardship Committee. The Hardship Administration Committee shall be
comprised of not less than three members. Notwithstanding any vacancies in memberships, the
Hardship Committee may act so long as at least two memberships are filled.

16.2 Authority and Responsibilities of Hardship Committee. The Hardship Committee shall
be responsible, except as otherwise herein expressly provided, for determining whether a bona fide
financial hardship exists as a condition for a Member’s withdrawal from his or her Supplemental
Before-Tax Investment Account, Basic Before-Tax Investment Account, Before-Tax Catch-Up
Contributions Account, Supplemental Roth 401(k) Investment Account, Basic Roth 401(k) Investment
Account, or Roth 401(k) Catch-Up Contributions Account under the Plan. Said Committee shall also
have such authority, powers and responsibilities as are set forth in the Plan or may be delegated
by the Board of Directors as provided in Article Thirteen.

16.3 Determination of Financial Hardship. In determining whether a bona fide financial
hardship exists in a particular case, the Hardship Committee shall take into account all pertinent
facts and circumstances and shall base its determination on the meaning of the term hardship under
the applicable tax laws, including cases and Internal Revenue Service guidelines. A determination
by the Hardship Committee as to the existence or absence of a hardship shall be final, conclusive
and binding on all parties.

ARTICLE SEVENTEEN

GENERAL AND ADMINISTRATIVE PROVISIONS

17.1 No Right to Employment. Nothing herein contained nor any action taken under the
provisions hereof shall be construed as giving any Employee the right to be retained in the employ
of the Company.

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17.2 Inalienability of Benefits. Except as specifically provided in the Plan or as may be
required under the terms of a QDRO, or pursuant to the requirements of Code Section 401(a)(13)(C),
or as applicable law may otherwise require, no benefit under the Plan shall be subject in any
manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance or charge, and
any attempts so to do shall be void, nor shall any such benefit be in any manner liable for or
subject to debts, contracts, liabilities, engagements or torts of the person entitled to such
benefit; and in the event that the Pension Administration Committee shall find that any Member,
Deferred Member or Beneficiary who is or may become entitled to benefits hereunder has become
bankrupt or that any attempt has been made to anticipate, alienate, sell, transfer, assign, pledge,
encumber or charge any of his or her benefits under the Plan, except as specifically provided in
the Plan or as applicable law may otherwise require, then such benefit shall cease and terminate,
and in that event the Pension Administration Committee shall hold or apply the same to or for the
benefit of such Member, Deferred Member or Beneficiary who is or may become entitled to benefits
hereunder, his or her spouse, children, parents or other blood relatives, or any of them.

17.3 Source of Benefit Payments. Benefits under the Plan shall be payable only out of the
Trust Fund, and the Company shall not have any legal obligation, responsibility or liability to
make any direct payment of benefits under the Plan. Neither the Company nor the Trustee guarantees
the Trust Fund against any loss or depreciation or guarantees the payment of any benefit hereunder.
No person shall have any rights under the Plan with respect to the Trust Fund, or against the
Company, except as specifically provided for herein.

17.4 Plan Expenses. The expenses of administering the Plan, including but not limited to
investment management, Trustee, record keeping and audit fees, fees for legal services, and
expenses of the Plan fiduciaries, shall be paid out of the assets of the Trust Fund to the extent
they are not paid by the Company. In the event the Company pays any expense of administering the
Plan, the Company shall be entitled to be reimbursed for the payment out of the assets of the Trust
Fund. All expenses paid out of the Trust Fund shall be allocated among Members pursuant to
procedures adopted by the Pension Administration Committee.

17.5 Relief from Liability. The Plan is intended to constitute a Plan as described in
Section 404(c) of ERISA and Title 29 of the Code of Federal Regulations Section 2550.404c-1. The
Plan fiduciaries are relieved of any liability for any losses that are the direct and necessary
result of investment instructions given by any Member, Deferred Member or Beneficiary.

17.6 Uniform Action by Certain Committees. Action by the Pension Administration Committee
and the Hardship Committees shall be uniform in nature as applied to all persons similarly
situated, and no such action shall be taken which will discriminate in favor of any Members who are
Highly Compensated Employees.

17.7 Amendment of Plan. The Board of Directors reserves the right at any time and from
time to time, and retroactively if deemed necessary or appropriate to conform with governmental
regulations or other policies, to modify or amend in whole or in part any or all of the provisions
of the Plan; provided that no such modification or amendment shall (A) make it possible for any
part of the funds of the Plan to be used for, or diverted to, purposes other than for the exclusive
benefit of Members, Deferred Members and Beneficiaries, or (B) increase the duties of the Trustee without its consent thereto in
writing. Except

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as may be required to conform with governmental regulations, no such amendment
shall adversely affect the rights of any Member or Deferred Member with respect to contributions
made on his or her behalf prior to the date of such amendment.

17.8 Merger or Consolidation of Plan. The Plan may not be merged or consolidated with, nor
may its assets or liabilities be transferred to, any other plan unless each Member or Deferred
Member under the Plan would, if the resulting plan were then terminated, receive a benefit
immediately after the merger, consolidation, or transfer which is equal to or greater than the
benefit he or she would have been entitled to receive immediately before the merger, consolidation,
or transfer if the Plan had then terminated.

17.9 Termination of Plan. The Plan is entirely voluntary on the part of the Company. The
Board of Directors reserves the right at any time to terminate the Plan, the trust agreement and
the trust hereunder or to suspend, reduce or partially or completely discontinue contributions
thereto. In the event of such termination or partial termination of the Plan or complete
discontinuance of contributions, the interests of Members and Deferred Members shall automatically
become nonforfeitable. In the event of such termination or partial termination or complete
discontinuance, any forfeitures not previously applied in accordance with Article Five shall be
credited ratably to the Accounts of all Members and Deferred Members in proportion to the amounts
of Matching Company Contributions made under Article Five credited during the current calendar
year, or, if no Matching Company Contributions have been made during the current calendar year,
then in proportion to such Matching Company Contributions during the last previous calendar year
during which such Matching Company Contributions were made.

17.10 Headings and Word Usage. The headings used in this Plan are used for convenience of
reference and in the case of any conflict, the text of the Plan, rather than any headings, shall
control. Words used in the singular are intended to include the plural, whenever appropriate.

17.11
Construction. The Plan shall be construed, regulated and administered in accordance
with the laws of the State of New York, subject to the provisions of applicable Federal laws.

17.12 Tax Withholding. The Plan Administrator shall have the right, to the extent not
prohibited by law, to make such provisions as deemed appropriate in its sole discretion to satisfy
any obligation of the Company to withhold federal, state or local income or other taxes incurred by
reason of the operation of the Plan or benefits provided under the Plan, including but not limited
to at any time (i) requiring a Participant to submit payment to the Company for such taxes before
paying benefits under the Plan or making settlement of any amount due under the Plan, (ii)
withholding such taxes from wages or other amounts due to a Participant before paying benefits
under the Plan or making settlement of any amount due under the Plan, (iii) making settlement of
any amount due under the Plan part in shares of common stock of The Hartford and part in cash to
facilitate satisfaction of such withholding obligations, or (iv) receiving shares of common stock
of the Hartford already owned by a Participant or withholding such shares otherwise due to a
Participant in an amount determined necessary to satisfy such withholding obligations.

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APPENDIX A: Distribution Table

	 	 	 
	Age of the Employee	 	Distribution Period
	 	 	 
	70
	 	27.4
	71
	 	26.5
	72
	 	25.6
	73
	 	24.7
	74
	 	23.8
	75
	 	22.9
	76
	 	22.0
	77
	 	21.2
	78
	 	20.3
	79
	 	19.5
	80
	 	18.7
	81
	 	17.9
	82
	 	17.1
	83
	 	16.3
	84
	 	15.5
	85
	 	14.8
	86
	 	14.1
	87
	 	13.4
	88
	 	12.7
	89
	 	12.0
	90
	 	11.4
	91
	 	10.8
	92
	 	10.2
	93
	 	9.6
	94
	 	9.1
	95
	 	8.6
	96
	 	8.1
	97
	 	7.6
	98
	 	7.1
	99
	 	6.7
	100
	 	6.3
	101
	 	5.9
	102
	 	5.5
	103
	 	5.2
	104
	 	4.9
	105
	 	4.5
	106
	 	4.2
	107
	 	3.9
	108
	 	3.7
	109
	 	3.4
	110
	 	3.1
	111
	 	2.9
	112
	 	2.6
	113
	 	2.4
	114
	 	2.1
	115 and older
	 	1.9

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EMPLOYMENT AGREEMENT

     THIS AGREEMENT is by and between Ecology Coatings, Inc., a Nevada corporation (the “Company”),
and Kevin P. Stolz (the “Executive”) and is entered to be effective as of February 1, 2008 (the
“Effective Date”).

RECITALS

     WHEREAS, the Board of Directors of the Company (the “Board”) has determined that it is in the
best interests of the Company and its shareholders to assure that the Company will have the
continued employment and dedication of the Executive; and

     WHEREAS, the Board has further determined that it is desirable to provide the Executive with
compensation and benefits terms which adequately compensate the Executive for the services he
renders to the Company, and, to ensure that such compensation and benefits are consistent with
those of like executives of other public companies.

AGREEMENT

     Now, therefore, it is hereby agreed as follows:

     1. EMPLOYMENT PERIOD. The term of this Agreement shall commence as of the Effective Date and
shall expire, subject to earlier termination of employment as hereinafter provided, on February 1,
2010 (the “Employment Period”); provided, however, that on any day prior to and including February
1, 2010, the Employment Period may be extended by the Company for an additional year unless prior
thereto either party has given written notice to the other that such party does not wish to extend
the term of this Agreement This Agreement may be terminated prior to or on the last day of the
Employment Period by (i) the Company for Cause, (as defined in Section 3.2 below), (ii) the
Executive for Good Reason (as defined in Section 3.4 below) or (iii) the “Company” or the
“Executive” upon thirty (30) days’ written notice given by one party to the other party for any
reason except Death or Disability.

     2. TERMS OF EMPLOYMENT.

          2.1 Position and Duties.

               2.1.1 Position. During the Employment Period, the Executive will be employed
in executive
capacities in the positions of Controller and Chief Accounting Officer of the Company, or in other
such positions as designated by the Board, at its office in Bloomfield Hills, Michigan, or any such
other place designated by the Board.

          2.2 Duties.

               2.2.1 During the Employment Period, Executive shall serve as Controller and Chief
Accounting
Officer of the Company and shall have the normal duties, responsibilities, functions and authority
of such position, subject to the powers of the Board to expand or limit such duties,
responsibilities, functions and authority, limited only to those duties,

 

 

responsibilities, functions and authority commensurate with a controller and/or chief
accounting officer position. Without limiting the foregoing: Executive shall be responsible for
supervising and taking all actions necessary to ensure proper, timely and accurate preparation of
the Company’s financial statements, in conformance with GAAP and SEC regulations and preparation,
timely and accurate filing of all tax filings and SEC filings as required

               2.2.2 Executive shall report to the Board of Directors and shall devote his best
efforts to
the business and affairs of the Company and its Subsidiaries. Executive shall perform his duties,
functions and responsibilities to the Company to the best of his abilities in a diligent,
trustworthy, businesslike and efficient manner. Executive will conduct his primary business
activities from within the Company’s principal place of business, currently in the Bloomfield
Hills, Michigan area, other than while Executive is engaged in business travel for the Company.

          2.3 Compensation.

               2.3.1 Base Salary. The Executive shall receive an annual base salary of One
Hundred Forty
Thousand and 00/100 dollars ($140,000) from the Effective Date through February 1, 2010.
Thereafter, the Board or the Compensation Committee of the Board (the “Committee”) may review the
Executive’s salary and total cash compensation within one hundred twenty (120) days of the end of
each of the Company’s fiscal years during the Employment Period to determine what, if any,
increases shall be made thereto. The base salary payable to the Executive in any given year is
hereafter referred to as the “Annual Base Salary.” Any increase in the Annual Base Salary shall not
serve to limit or reduce any other obligation to the Executive under this Agreement. The Annual
Base Salary shall not be reduced after any increase and the term “Annual Base Salary,” as used in
this Agreement, shall refer to the Annual Base Salary as increased. The Annual Base Salary shall
in all instances be payable in twenty-four (24) equal semi-monthly installments.

               2.3.2 Grant of Stock Options. The Company shall issue the Executive options
to purchase fifty
thousand (50,000) shares of the Company’s common stock as soon as practicable after the Effective
Date of this Agreement. The exercise price of the options shall be $3.00. The options shall vest as
follows: 50% on the first anniversary of the Effective Date and 50% on the second anniversary of
the Effective Date. The options issued under this Section 2.3.2 have a ten-year term from the date
of their issue, and will be incentive stock options to the extent allowable under the Internal
Revenue Code and non-qualified options as to the balance.

               2.3.3 Annual Bonus and Option Plans. The Executive shall also be eligible to
participate in
any applicable Company bonus plan or program, stock option, restricted stock, educational
reimbursement, or other plan or program in effect immediately prior to the Effective Date, or put
into effect by the Board at any time after the Effective Date or the Amendment Effective Date.

               2.3.4 Incentive, Savings and Retirement Plans. During the Employment Period,
the Executive
shall be entitled to participate in all incentive, savings and retirement plans, practices,
policies and programs applicable generally to other executives of the Company, as the same may be
amended from time to time, but in no event shall such plans, practices, policies and programs
provide the Executive with incentive opportunities, savings opportunities

-2-

 

and retirement benefit opportunities, in each case, less favorable, in the aggregate, than the
most favorable of those provided by the Company to other executives of the Company; provided,
however, the dollar value awarded Executive in the reasonable discretion of management need not be
equal to that awarded to all other executives.

               2.3.5 Welfare Benefit Plans. During the Employment Period, the Executive
and/or the
Executive’s family, as the case may be, shall be eligible for participation in and shall receive
all benefits under welfare benefit plans, practices, policies and programs provided by the Company
(including, without limitation, medical, prescription, dental, vision, disability, salary
continuance, employee life, group life, accidental death and travel accident insurance plans and
programs, collectively referred to in this Section 2.3.5 as the “Welfare Benefit Plans”) to the
extent applicable generally to other executives of the Company, but in no event shall such Welfare
Benefit Plans, programs provide the Executive with benefits which are less favorable, in the
aggregate, than the most favorable of such Welfare Benefit Plans provided generally at any time
after the Effective Date to other executives of the Company. If the Executive elects to opt out of
any or all of the foregoing Welfare Benefit Plans that the Company offers because Executive has his
own coverage in such areas, the Company will reimburse the Executive for the reasonable cost of
such coverage, but only to the extent that such cost does not exceed cost of the Company providing
coverage under its own Welfare Benefit Plans directly to the Executive.

               2.3.6 Expenses. During the Employment Period, the Executive shall be
entitled to receive
prompt reimbursement for all reasonable expenses incurred by the Executive in the conduct of
Company business.

               2.3.7 Vacation. During the Employment Period, the Executive shall be
entitled to paid
vacation of four (4) weeks annually and otherwise be in accordance with the plans, policies,
programs and practices of the Company in all respects as in effect for the Executive during the one
hundred twenty (120) day period immediately preceding the Effective Date or, if more favorable to
the Executive, as in effect generally at any time after the Effective Date with respect to other
executives of the Company.

               2.3.8 No Management Fees. In no event shall the Executive be entitled to
receive any
additional compensation for serving as a member and/or manager of the Company or any affiliate of
the Company.

     3. TERMINATION OF EMPLOYMENT.

          3.1 Death or Disability. The Executive’s employment shall terminate automatically upon the
Executive’s death during the Employment Period. If the Company determines in good faith that any
Disability of the Executive has occurred during the Employment Period (pursuant to the definition
of Disability set forth below), it may give to the Executive written notice in accordance with
Section 10.2, of its intention to terminate the Executive’s employment. In such event, the
Executive’s employment with the Company shall terminate effective on the thirtieth (30th) day
after receipt of such notice by the Executive (the “Disability Effective Date”), provided that,
within the thirty (30) days after such receipt, the Executive shall not have returned to full-time
performance of the Executive’s duties. For

-3-

 

 purposes of this Agreement, the term “Disability” shall mean the absence of the Executive from
the Executive’s duties with the Company on a full-time basis for one hundred eighty (180)
consecutive business days as a result of incapacity due to mental or physical illness certified by
a physician selected by the Company or its insurers and acceptable to the Executive or the
Executive’s legal representative.

          3.2 Cause. The Company may terminate the Executive’s employment during the Employment Period
for Cause. For purposes of this Agreement, the term “Cause” shall mean: (i) the willful and
continued failure of the Executive to perform substantially the Executive’s duties with the Company
as set forth in Section 2.1.2, “Duties,” (other than any such failure resulting from incapacity due
to physical or mental illness), after a written demand for substantial performance is delivered to
the Executive by the Board, accompanied by a resolution adopted by the vote of two-thirds (2/3) of
the entire Board, excluding the Executive, at a meeting of the Board held for such purpose, which
resolution specifically identifies the manner in which the Board believes that the Executive has
not substantially performed the Executive’s duties and Executive has not cured any such failure to
perform within thirty (30) business days of such demand, or; (ii) dishonest or fraudulent conduct,
a deliberate attempt to do injury to the Company, or other conduct, past or present, that
materially discredits the Company or is materially detrimental to the reputation of the Company
including the Executive’s conviction of or plea of guilty or no contest to a felony under any state
or federal statute, which is materially injurious to the Company as determined by a resolution
adopted by the vote of three-fourths (3/4) of the entire Board, excluding the Executive, at a
meeting of the Board held for such purpose, which resolution specifically identifies the alleged
illegal conduct or gross misconduct. For purposes of this provision, no act or failure to act, on
the part of the Executive, shall be considered “willful” unless it is done, or omitted to be done,
by the Executive in bad faith. The vote of the Board on the resolutions contemplated in (i) and
(iv) of this Section 3.2 will not be taken until after written notice of not less than five (5)
business days to the Executive of the meeting and an opportunity for Executive to be heard before
the Board at such meeting.

          3.3 Good Reason. The Executive may terminate his employment for Good Reason at any time
within ninety (90) days after the Executive first has actual knowledge of the occurrence of such
Good Reason. For purposes of this Agreement, the term “Good Reason” shall mean:

               3.3.1 the assignment to the Executive of any duties that are not consistent with
the duties
set forth in Section 2.1.2, “Duties,” or any other action by the Company that results in a material
diminution in any of the Executive’s positions as set forth in Section 2.1.1, “Position,” or in the
Executive’s authority, duties or responsibilities, excluding for this purpose an isolated,
insubstantial and inadvertent action not taken in bad faith and which is remedied by the Company
promptly after receipt of notice thereof given by the Executive;

               3.3.2 any failure by the Company to comply with any of the provisions of
Section 2.2,
“Compensation,” other than an isolated, insubstantial and inadvertent failure not occurring in bad
faith and which is remedied by the Company promptly after receipt of notice thereof given by the
Executive;

-4-

 

               3.3.3 the Company’s requiring the Executive, without the Executive’s
consent and full
agreement, to be based at any office other than in the Detroit, Michigan metropolitan area or a
position other than as provided in Section 2.1.1;

               3.3.4 any purported termination by the Company of the Executive’s employment
otherwise than as
expressly permitted by this Agreement;

               3.3.5 any action taken by the Company or its Board of Directors in connection with
a “Change
in Control,” as defined in Section 4.5, “Change in Control,” that results in the Executive being
removed as the Controller and/or Chief Accounting Officer of the Company without the Executive’s
consent; or

               3.3.6 any failure by the Company to comply with and satisfy Section 9.3.

          3.4 Notice of Termination. Any termination by the Company for Cause, or by the Executive for
Good Reason, shall be communicated by Notice of Termination to the other party hereto given in
accordance with Section 10.2 of this Agreement. For purposes of this Agreement, the term “Notice
of Termination” means a written notice that:

               3.4.1 indicates the specific termination provision in this Agreement relied upon;

               3.4.2 to the extent applicable, sets forth in reasonable detail the facts and
circumstances
claimed to provide a basis for termination of the Executive’s employment under the provision so
indicated; and

               3.4.3 if the Date of Termination (as defined below) is other than the date of
receipt of such
notice, specifies the termination date, which date shall be not more than thirty (30) days after
the giving of such notice. The failure by the Executive or the Company to set forth in the Notice
of Termination any fact or circumstance which contributes to a showing of Good Reason or Cause
shall not waive any right of the Executive or the Company, respectively, hereunder or preclude the
Executive or the Company, respectively, from asserting such fact or circumstance in enforcing the
rights of the Executive or the Company under this Agreement.

          3.5 Date of Termination. The term “Date of Termination” means:

               3.5.1 if the Executive’s employment is terminated by the Company for Cause, or
by the
Executive for Good Reason, the date of receipt of the Notice of Termination or any later date
specified therein, as the case may be;

               3.5.2 if the Executive’s employment is terminated by the Company other than
for Cause or
Disability, the date on which the Company notifies the Executive of such termination; and

               3.5.3 if the Executive’s employment is terminated by reason of death or
Disability, the date
of death of the Executive or the Disability Effective Date, as the case may be.

-5-

 

     4. OBLIGATIONS OF THE COMPANY UPON TERMINATION.

          4.1 Termination for Good Reason, Other Than for Cause, Death or Disability. If, during the
Employment Period, the Company shall terminate the Executive’s employment other than for Cause,
Death or Disability, or the Executive shall terminate employment for Good Reason, the Company shall
pay to the Executive, or Executive’s beneficiary as designated by him in writing to the Company,
within thirty (30) days after the Date of Termination the aggregate of the amounts set forth in
Section 4.1.2 through Section 4.1.6 in a lump sum in cash and shall pay the amounts due under
Section 4.1.1 and Section 4.1.7 as provided in those Sections:

               4.1.1 the amount of Annual Base Salary compensation that would be payable to the
Executive
over a twenty-four (24) month period, provided that the Company will pay such amount to the
Executive over the period that the compensation would have been due had the termination not
occurred;

               4.1.2 any declared and accrued, but as of then unpaid, bonus or stock options grant
(whether
or not vested) to which the Executive would have received but for such termination. Additionally,
any stock options owned or granted shall be deemed immediately vested, not forfeitable, and shall
be the property of Executive, exercisable according to their terms for the balance of the term of
years of the options;

               4.1.3 any accrued vacation pay;

               4.1.4 any amounts payable pursuant to the Company’s Defined Benefit Pension
Plan, 401(k) plan,
including such amounts which would have accrued (whether or not vested) if the Executive’s
employment had continued after the Date of Termination for the period then remaining under this
Agreement, as it may have been renewed as provided for in Section 1, “Employment Period”;

               4.1.5 any other amounts or benefits required to be paid or provided or which the
Executive is
eligible to receive under any plan, program, policy or practice or contract or agreement of the
Company (such other amounts and benefits shall be referred to as the “Other Benefits”);

               4.1.6 for the remaining term of this Agreement, as it may have been renewed
pursuant to
Section 1, “Employment Period,” or such longer period as may be provided by the terms of the
appropriate plan, program, practice or policy, the Company shall continue benefits to the Executive
and/or the Executive’s family at least equal to those which would have been provided to them in
accordance with Section 2.2.5, “Welfare Benefit Plans,” of this Agreement if the Executive’s
employment had not been terminated or, if more favorable to the Executive, as in effect generally
at any time thereafter with respect to other executives of the Company and their families,
provided, however, that if the Executive becomes re-employed with another employer and is eligible
to receive medical or other welfare benefits under another employer-provided plan, the medical and
other welfare benefits described herein shall be secondary to those provided under such other plan
during such applicable period of eligibility, and for purposes of determining eligibility (but not
the time of commencement of benefits) of the

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Executive for retiree benefits pursuant to such plans, practices, programs and policies, the
Executive shall be considered to have remained employed for the remaining term of this Agreement,
as it may have been renewed pursuant to Section 1, “Employment Period,” and to have retired on the
last day of such period.

          4.2 Death. If the Executive’s employment is terminated by reason of the Executive’s death
during the Employment Period, this Agreement shall terminate without further obligations to the
Executive’s legal representatives under this Agreement, other than for (i) payment of any death
benefit compensation due under other contracts; (ii) payment of the amounts due under the term life
insurance policy described in Section 2.2.4, “Incentive Savings and Retirement Plans”; (iii) full
vesting and non-forfeiture of stock options granted to Executive; and (iv) the timely payment or
provision of Other Benefits. Such amounts shall be paid to the Executive’s estate or beneficiary,
as applicable, in a lump sum in cash within thirty (30) days of the Date of Termination. The term
“Other Benefits” as utilized in this Section 4.2 shall include, without limitation, and the
Executive’s estate and/or beneficiaries shall be entitled to receive, benefits at least equal to
the most favorable benefits provided by the Company to the estates and beneficiaries of other
executives of the Company under such plans, programs, practices and policies relating to death
benefits, if any, as in effect with respect to other executives and their beneficiaries at any time
during the one hundred twenty (120) day period immediately preceding the Effective Date or, if more
favorable to the Executive’s estate and/or the Executive’s beneficiaries, as in effect on the date
of the Executive’s death with respect to other executives of the Company and their beneficiaries.

          4.3 Disability. If the Executive’s employment is terminated by reason of the Executive’s
Disability under Section 3.1, “Death or Disability,” during the Employment Period, this Agreement
shall terminate without further obligations to the Company, other than for the timely payment or
provision of (i) Base Salary through the Termination Date; (ii) accrued bonus through the
Termination Date; (iii) payment of pension, 401(k), and Other Disability Benefits; (iv) full
vesting and non-forfeiture of stock options; and (v) the receipt of fully-paid Welfare Benefit
Plans under Section 2.2.5, “Welfare Benefit Plans,” for the balance of the term of this Agreement.
In addition, Executive shall be paid for the term of this Agreement at regular pay periods that
amount equal to the difference between his Annual Base Salary and the disability insurance payment
received by the disabled Executive under the Company’s disability insurance program. The term
“Other Benefits” as utilized in this Section 4.3 shall include, and the Executive shall be entitled
after the Disability Effective Date to receive, disability and other benefits at least equal to the
most favorable of those generally provided by the Company to disabled executives and/or their
families in accordance with such plans, programs, practices and policies relating to disability, if
any, as in effect generally with respect to other executives and their families at any time during
the one hundred twenty (120) day period immediately preceding the Effective Date or, if more
favorable to the Executive and/or the Executive’s family, as in effect at any time thereafter
generally with respect to other executives of the Company and their families.

          4.4 Termination by the Company for Cause; and Termination by the Executive for Other than for
Good Reason. If the Executive’s employment shall be terminated for Cause during the Employment
Period, this Agreement shall terminate without further obligations to the Company other than the
obligation to pay to the Executive: (i) the Annual Base Salary through

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the Date of Termination; (ii) the amount of any compensation previously deferred by the
Executive; and (iii) Other Benefits under Sections 4.2, “Death,” and Section 4.3, “Disability,” in
each case to the extent therefore unpaid. If the Executive voluntarily terminates employment
during the Employment Period, excluding a termination for Good Reason by the Executive, this
Agreement shall terminate without further obligations to the Company, other than for items (i),
(ii) and (iii) of this paragraph, accrued but unpaid vacation leave, and the timely payment or
provision of Other Benefits. In such case, all accrued obligations shall be paid to the Executive
in a lump sum in cash within thirty (30) days of the Date of Termination. A termination of the
Executive by the Company for Cause or a termination by the Executive for other than Good Reason
shall not affect the status of any vested stock options.

          4.5 Change in Control. If, during the term of this Agreement and within one year after a
“Change in Control,” as defined below, the Company shall terminate the Executive’s employment other
than for Cause, Death or Disability or the Executive shall terminate employment for Good Reason,
the Company shall (i) pay to the Executive the amount of compensation that would have been payable
to the Executive over the period then remaining under this Agreement and on the same schedule as
such payments would have been due had the termination not occurred, provided that the Company shall
pay the Executive for a minimum of twenty-four (24) months on this basis; and (ii) cause all stock
options issued to the Executive that have not vested as of the termination to be immediately
vested.

               4.5.1 The term “Change in Control” shall mean an event or the last of a
series of related
events by which:

               4.5.2 the Company merges or consolidates with or into another entity or completes
any other
corporate reorganization, if more than fifty percent (50%) of the combined voting power of the
continuing or surviving entity’s securities outstanding immediately after such merger,
consolidation or other reorganization is owned by persons who were not stockholders of the Company
immediately prior to such merger, consolidation or other reorganization; or

               4.5.3 the Company sells, transfers or otherwise disposes of all or substantially
all of the
consolidated assets of the Company or its subsidiaries and the Company does not own stock in the
purchaser or purchasers having more than fifty percent (50%) of the voting power in elections for
directors; or

               4.5.4 the composition of the Board changes, as a result of which fewer than one
half of the
incumbent directors are directors who either:

	 	(i)	 	had been directors of the Company
twenty-four (24) months prior to such change; or
	 
	 	(ii)	 	were elected, or nominated for
election, to the Board with the affirmative votes of at least a
majority of the directors who had been directors of the Company
twenty-four (24) months prior to such change and who were still
in office at the time of the election or nomination.

-8-

 

A transaction shall not constitute a Change of Control if (i) its sole purpose is to change the
state of the Company’s incorporation or to create a holding company that will be owned in
substantially the same proportions by the Persons who held the Company’s securities immediately
before such transaction or (ii) the Company acquires another corporation or entity through the
purchase or other acquisition of control of the voting stock or assets of such corporation or
entity; or

               4.5.5 Any Person acquires direct or indirect beneficial ownership of more than thirty-three
percent (33%) of the voting power of the Company, whether in a single transaction or a series of
transactions. [Isn’t this inconsistent with § 4.5.2?]

               4.5.6 As used in this Agreement, a “Person” means any “person,” as that term is used in
Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended, together with all of
that person’s “affiliates” and “associates,” as those terms are defined in Rule 12b-2 of such Act.

     5. NON-EXCLUSIVITY OF RIGHTS. Nothing in this Agreement shall prevent or limit the
Executive’s continuing or future participation in any plan, program, policy or practice provided by
the Company and for which the Executive may qualify, nor, subject to Section 4, “Obligations of the
Company Upon Termination,” shall anything herein limit or otherwise affect such rights as the
Executive may have under any other contract or agreement with the Company. Amounts which are
vested benefits or which the Executive is otherwise entitled to receive under any plan, policy,
practice or program of or any contract or agreement with the Company at or subsequent to the Date
of Termination shall be payable in accordance with such plan, policy, practice or program or
contract or agreement except as explicitly modified by this Agreement. Executive is currently a
party to, and in the future may be a party to other, employment arrangements, agreements, and
incentive plans, including but not limited to, a death benefit plan, stock option agreements, and a
change of control agreement. This Agreement shall not supersede any of the terms or conditions of
such other agreements. To the extent of any inconsistency in these agreements, the agreements
shall be interpreted and applied in the way to confer upon the Executive the greatest benefits.
The agreements shall be read and applied consistent with each other, but in the event of a
conflict, the terms most favorable to the Executive will be applied from the various provisions of
the agreements in the aggregate.

     6. FULL SETTLEMENT; LEGAL FEES. The Company’s obligation to make the payments provided for in
this Agreement and otherwise to perform its obligations hereunder shall not be subject to any
set-off, counterclaim, recoupment, defense or other claim, right or action that the Company may
have against the Executive. In no event shall the Executive be obligated to seek other employment
or take any other action by way of mitigation of the amounts payable to the Executive under any of
the provisions of this Agreement and except as specifically provided in Section 4.1.6, such amounts
shall not be reduced whether or not the Executive obtains other employment. Provided that the
Executive is the prevailing party, the Company will reimburse the Executive to the full extent
permitted by law, all legal fees and expenses that the Executive may reasonably incur as a result
of any contest by the Company, the Executive or others of the validity or enforceability of, or
liability or entitlement under, any provision of this Agreement or any guarantee of performance
thereof (whether such contest is between the Company and the Executive or between either of them
and any third party, and

-9-

 

including as a result of any contest by the Executive about the amount of any payment pursuant
to this Agreement), plus in each case interest on any delayed payment at the applicable Federal
rate (“Applicable Federal Rate”) provided for in Section 7872(f)(2)(A) of the Internal Revenue Code
of 1986, as amended (the “Code”).

     7. CONFIDENTIAL INFORMATION; NONCOMPETITION.

          7.1 Nondisclosure. The Executive shall hold in fiduciary capacity for the benefit of the
Company all secret, proprietary or Confidential Information, knowledge or data relating to the
Company and its businesses, which shall have been obtained by the Executive during the Executive’s
employment by the Company. During the period the Executive is employed with the Company, and after
termination of the Executive’s employment with the Company, the Executive shall not, without the
prior written consent of the Company or as may otherwise be required by law or legal process,
communicate or divulge any such information, knowledge or data to anyone other than the Company and
those designated by it. The restrictions set forth in this Section 7 will not apply to information
which is generally known to the public or in the trade, unless such knowledge results from an
unauthorized disclosure by the Executive or representatives of the Executive in violation of this
Agreement. This exception will not affect the application of any other provisions of this
Agreement to such information in accordance with the terms of such provision. All documents and
tangible things embodying or containing Confidential Information are the Company’s exclusive
property. The Executive will protect the confidentiality of their content and will return all
copies, facsimiles and specimens of them and any other form of Confidential Information in the
Executive’s possession, custody or control to the Company before leaving the employment with the
Company.

          7.2 Definition of Confidential Information. The term “Confidential Information” includes all
information of any nature and in any form which at the time or times concerned is not generally
known to the public, other than by act or acts of an employee not authorized by Company to disclose
such information, and which relates to any one or more of the aspects of the present and past
business of Company or any of its predecessors, including, but not limited to, patents and patent
applications, inventions and improvements, whether patentable or not, development projects,
policies, processes, formulas, techniques, know-how and other facts relating to sales, advertising,
franchising, promotions, financial matters, customers, customer lists, customer purchases or
requirements, licenses or trade secrets.

          7.3 Competition. During the term of the Executive’s employment with the Company, and for the
period during which he receives compensation from the Company under Section 4.1.1 after the
termination of his employment with the Company, the Executive will not, directly or indirectly,
engage, participate or invest in or be employed by any business anywhere in the world which:

               7.3.1 Develops or manufactures products that are competitive with or similar to products
developed or manufactured by the Company; or

               7.3.2 Distributes, markets or otherwise sells products manufactured by others which are
competitive with or similar to products distributed, marketed or sold by the Company; or provides
services which are competitive with or similar to services provided by the

-10-

 

Company, including, in each case, any products or services the Company has under development
or which are the subject of active planning at any time during the term of the Executive’s
employment.

          The foregoing restriction shall apply regardless of the capacity in which the Executive
engages or engaged, participates or participated, or invests or invested in or is employed by a
given business, whether as owner, partner, shareholder, consultant, agent, Executive, co-venturer
or otherwise. In addition, during the term of the Executive’s employment with the Company, and for
a period of twelve (12) months thereafter, the Executive will not, directly or indirectly, without
the prior written consent of the Company, solicit for hire with any business any person who is
employed by the Company at such time or was employed by the Company within the preceding twelve
(12) months. The provisions of this Section 7 shall not prevent the Executive from acquiring or
holding publicly traded stock or other publicly traded securities of a business, so long as the
Executive’s ownership does not exceed ten percent (10%) of the outstanding securities of such
company of the same class as those held by the Executive or from engaging in any activity or having
an ownership interest in any business that is reviewed by the Board. The Executive understands
that the restrictions set out in this Section 7 are intended to protect the Company’s interest in
its secret, proprietary or Confidential Information and established customer relationships and
goodwill, and agrees that such restrictions are reasonable and appropriate for this purpose.

          7.4 Damages. The Executive agrees that it would be difficult to measure any damages caused to
the Company which might result from any breach by the Executive of the promises set forth in this
Agreement, and that in any event money damages would be an inadequate remedy for any such breach.
Accordingly, the Executive agrees that in the case of breach, or proposed breach, of any portion of
this Agreement, the Company shall be entitled, in addition to all other remedies that it may have,
to an injunction or other appropriate equitable relief to restrain any such breach without showing
or proving any actual damage to the Company.

     8. DISPUTE RESOLUTION. If there shall be any dispute between the Company and the Executive
(i) in the event of any termination of the Executive’s employment by the Company, provided such
termination was not for Cause, or (ii) otherwise arising out of this Agreement, the dispute will be
resolved in accordance with the dispute resolution procedures set forth in Exhibit A attached to
this Agreement, the provisions of which are incorporated as a part of this Agreement, and the
parties of this Agreement agree that such dispute resolution procedures will be the exclusive
method for resolution of disputes under this Agreement; provided, however, that (a) either party
may seek preliminary judicial relief if, in such party’s judgment, such action is necessary to
avoid irreparable injury during the pendency of such procedures, and (b) nothing in Exhibit A will
prevent either party from exercising the rights of termination set forth in this Agreement. IT IS
EXPRESSLY UNDERSTOOD THAT BY SIGNING THIS AGREEMENT, WHICH INCORPORATES BINDING ARBITRATION, THE
COMPANY AND EXECUTIVE AGREE, EXCEPT AS SPECIFICALLY PROVIDED OTHERWISE IN SECTION 7, “CONFIDENTIAL
INFORMATION; NONCOMPETITION,” AND THIS SECTION 8, TO WAIVE COURT OR JURY TRIAL AND TO WAIVE
PUNITIVE, STATUTORY, CONSEQUENTIAL, AND ANY DAMAGES, OTHER THAN COMPENSATORY DAMAGES.

-11-

 

     9. SUCCESSORS.

          9.1 This Agreement is personal to the Executive and without the prior written consent of the
Company shall not be assigned by the Executive otherwise than by will or the laws of descent and
distribution. This Agreement shall inure to the benefit of and be enforceable by the Executive’s
legal representatives.

          9.2 This Agreement shall inure to the benefit of and be binding upon the Company and its
successors and assigns.

          9.3 The Company will require any successor (whether direct or indirect, by purchase, merger,
consolidation or otherwise) to all or substantially all of the business and/or assets of the
Company to assume expressly and agree to perform this Agreement in the same manner and to the same
extent that the Company would be required to perform it if no such succession had taken place. As
used in this Agreement, the term “Company” shall mean the Company as defined above and any
successor to its business and/or assets as aforesaid which assumes and agrees to perform this
Agreement by operation of law, or otherwise.

     10. MISCELLANEOUS.

          10.1 This Agreement shall be governed by and construed in accordance with the laws of the State
of Michigan, without reference to principles of conflict of laws. The captions of this Agreement
are set forth for convenience only and shall have no separate force or effect. This Agreement may
not be amended or modified otherwise than by a written agreement executed by the parties hereto or
their respective successors and legal representatives.

          10.2 All notices and other communications hereunder shall be in writing and shall be given by
hand delivery to the other party or by registered or certified mail, return receipt requested,
postage prepaid, addressed as follows:

	 	 	 
	 

	 	If to the Executive:
	 
	 	 
	 

	 	Kevin P. Stolz
	 

	 	2836 Santia Drive
	 

	 	Troy, Michigan 48085
	 
	 	 
	 

	 	If to the Company:
	 
	 	 
	 

	 	Ecology Coatings, Inc.
	 

	 	Adam S. Tracy, Esq, General Counsel
	 

	 	35980 Woodward Avenue, Suite 200
	 

	 	Bloomfield Hills, Michigan 48304
	 
	 	 
	 

	 	With a copy to:
	 
	 	 
	 

	 	Chairman – Compensation Committee of
	 

	 	the Board of Directors
	 

	 	c/o Ecology Coatings, Inc.

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	 	35980 Woodward Avenue, Suite 200
	 

	 	Bloomfield Hills, Michigan 48304

or to such other address as either party shall have furnished to the other in writing in accordance
herewith. Notice and communications shall be effective when actually received by the addressee.

          10.3 The invalidity or unenforceability of any provision of this Agreement shall not affect the
validity or enforceability of any other provision of this Agreement.

          10.4 The Company may withhold from any amounts payable under this Agreement such Federal,
state, local or foreign taxes as shall be required to be withheld pursuant to any applicable law or
regulation.

          10.5 The failure of the Executive or the Company to insist upon strict compliance with any
provision hereof or any other provision of this Agreement or the failure to assert any right the
Executive or the Company may have hereunder, including, without limitation, shall not be deemed to
be a waiver of such provision or right or any other provision or right of this Agreement, except
that if the Executive chooses to terminate employment for Good Reason pursuant to Section 3.3,
“Good Reason,” and complies with the provisions of Section 3, “Termination of Employment,” the
Executive shall only be entitled to compensation and benefits applicable to such event of
termination.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

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     IN WITNESS WHEREOF, pursuant to the authorization from its Compensation Committee and Board of
Directors, the Company has caused this Agreement to be executed in its name on its behalf, as of
the dates first above written.

	 	 	 
	 

	 	COMPANY:
	 
	 	 
	 

	 	ECOLOGY COATINGS, INC.
	 
	 	 
	 

	 	 
	 

	 	Robert Liebig,
	 

	 	Chairman, Compensation Committee
	 

	 	The Board of Directors of Ecology Coatings, Inc.
	 
	 	 
	 

	 	EXECUTIVE:
	 
	 	 
	 

	 	 
	 

	 	Kevin P. Stolz

-14-

 

EXHIBIT A

DISPUTE RESOLUTION PROCEDURES

     1. If a controversy arises that is covered by Section 8, “Dispute Resolution,” of the
Agreement, then not later than twelve (12) months from the date of the event that is the subject of
dispute either party may serve on the other a written notice specifying the existence of such
controversy and setting forth in reasonably specific detail the grounds of the notice (“Notice of
Controversy”); provided that, in any event, the other party will have at least thirty (30) days
from and after the date of the Notice of Controversy to serve a written notice of any counterclaim
(“Notice of Counterclaim”). The Notice of Counterclaim will specify the claim or claims in
reasonably specific detail. If the Notice of Controversy or the Notice of Counterclaim, as the
case may be, is not served within the applicable period, the claim set forth therein will be deemed
to have been waived, abandoned and rendered unenforceable.

     2. For a three (3) week period following receipt of the Notice of Controversy or the Notice of
Counterclaim, as the case may be, the parties will make a good faith effort to resolve the dispute
through negotiation (“Period of Negotiation”). Neither party will take any action during the
Period of Negotiation to initiate arbitration proceedings.

     3. If the parties agree during the Period of Negotiation to mediate the dispute, then the
Period of Negotiation will be extended by an amount of time to be agreed upon by the parties to
permit such mediation. In no event, however, may the Period of Negotiation be extended by more
than five weeks or, stated differently, in no event may the Period of Negotiation be extended to
encompass more than a total of eight weeks.

     4. If the parties agree to mediate the dispute but are thereafter unable to agree within a
week on the format and procedures for the mediation, then the effort to mediate will cease, and the
period of Negotiation will terminate four weeks from the Notice of Controversy or the Notice of
Counterclaim, as the case may be.

     5. Following the termination of the Period of Negotiation, the dispute, including the main
claim and counterclaim, if any, will be settled by arbitration, governed by the Federal Arbitration
Act, 9 U.S.C. §1 et seq. (“FAA”), and judgment upon the award may be entered in any court having
jurisdiction. The format and procedures of the arbitration are set forth below (referred to below
as the “Arbitration Agreement”).

     6. A notice of intention to arbitrate (“Notice of Arbitration”) will be served within
forty-five (45) days of the termination of the Period of Negotiation. If the Notice of Arbitration
is not served within this period, the claim set forth in the Notice of Controversy or the Notice of
Counterclaim, as the case may be, will be deemed to have been waived, abandoned and rendered
unenforceable.

     7. The arbitration, including the Notice of Arbitration, will be governed by the Commercial
Rules of the American Arbitration Association (“AAA”) in effect on the date of the Notice of
Arbitration, except that the terms of this Arbitration Agreement will control in the

 

 

event of any difference or conflict between such Rules and the terms of this Arbitration
Agreement.

     8. The arbitrator will reach a decision on the merits on the basis of applicable legal
principles as embodied in the law of the State of Michigan. The arbitration hearing will take
place in Detroit, Michigan.

     9. There will be one arbitrator, regardless of the amount in controversy. The arbitrator
selected, in order to be eligible to serve, will be a lawyer in Detroit, Michigan with at least
fifteen (15) years experience specializing in either general commercial litigation or general
corporate and commercial matters. In the event the parties cannot agree on a mutually acceptable
single arbitrator from the list submitted by the AAA, the AAA will appoint the arbitrator who will
meet the foregoing criteria.

     10. At the time of appointment and as a condition of the appointment, the arbitrator will be
apprised of the time limitations and other provisions of this Arbitration Agreement and will
indicate such dispute resolver’s agreement to the Tribunal Administrator to comply with such
provisions and time limitations.

     11. During the thirty (30) day period following appointment of the arbitrator, either party
may serve on the other a request for limited numbers of documents directly related to the dispute.
Such documents will be produced within seven (7) days of the request.

     12. Following the thirty-day period of document production, there will be a forty-five (45)
day period during which limited depositions will be permissible. Neither party will take more than
five (5) depositions, and no deposition will exceed three (3) hours of direct testimony.

     13. Disputes as to discovery or prehearing matters of a procedural nature will be promptly
submitted to the arbitrator pursuant to telephone conference call or otherwise. The arbitrator
will make every effort to render a ruling on such interim matters at the time of the hearing (or
conference call) or within five (5) business days thereafter.

     14. Following the period of depositions, the arbitration hearing will promptly commence. The
arbitrator will make every effort to commence the hearing within thirty (30) days of the conclusion
of the deposition period and, in addition, will make every effort to conduct the hearing on
consecutive business days to conclusion.

     15. An award will be rendered, at the latest, within nine (9) months of the date of the Notice
of Arbitration and within thirty (30) days of the close of the arbitration hearing. The award will
set forth the grounds for the decision (findings of fact and conclusions of law) in reasonably
specific detail. The award will be final and nonappealable except as provided in the FAA and
except that a court of competent jurisdiction will have the power to review whether, as a matter of
law, based upon the findings of fact by the arbitrator, the award should be confirmed or should be
modified or vacated in order to correct any errors of law made by the arbitrator. Such judicial
review will be limited to issues of law, and the parties agree that the findings of fact made by
the arbitrator will be final and binding on the parties and will serve as the facts to

-2-

 

be relied upon by the court in determining the extent to which the award should be confirmed,
modified or vacated.

     The award may only be made for compensatory damages, and if any other damages (whether
exemplary, punitive, consequential, statutory or other) are included, the award will be vacated and
remanded, or modified or corrected, as appropriate to promote this damage limitation.

-3-

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