Document:

EX-10.87

 

Exhibit 10.87

RESOLUTION OF THE

COMPENSATION COMMITTEE

OF PHH CORPORATION

JUNE 27, 2007

     WHEREAS, pursuant to the PHH Corporation 2005 Equity and Incentive Plan
(the “Plan”), PHH Corporation (the “Corporation”) has granted certain
Restricted Stock Units and Non-Qualified Stock Options that provide for vesting
or acceleration of vesting in the event that the Corporation meets certain
annual performance targets for each of the 2005 through 2008 fiscal years (the
“Performance Targets”);

     WHEREAS, the Compensation Committee has determined that it is appropriate
to maintain the Performance Target for fiscal 2007 based upon the consolidated
pre-tax income after minority interest for the Corporation.

     NOW, THEREFORE, BE IT:

     RESOLVED, that the Performance Target for fiscal 2007 is hereby set as
consolidated pre-tax income after minority interest of $[***], excluding
one-time items, such as merger related expenses, for the Corporation’s fiscal
year ending December 31, 2007 for the vesting of (1) the Restricted Stock Units
granted on February 1, 2005, as amended, in conversion of certain Restricted
Stock Units granted by Cendant Corporation in 2004; (2) the Non-Qualified Stock
Options granted on February 1, 2005, as amended, in conversion of certain
Non-Qualified Stock Options granted by Cendant Corporation in 2004; (3) the
Restricted Stock Units granted on June 28, 2005 and October 26, 2005, as
amended; and (4) the Non-Qualified Stock Options granted on June 28, 2005, as
amended; and

     RESOLVED, that the appropriate officers and employees of the Corporation
are hereby authorized, empowered, and directed, in the name and on behalf of
the Corporation, to execute, acknowledge, and deliver any and all documents,
instruments, and papers, to give all notices that may be required or
appropriate, and to take or cause to be taken such actions as may be determined
to be necessary, appropriate or advisable to carry out the intent or purposes
of all of the foregoing resolutions, such determination to be evidenced
conclusively by the execution and delivery of such documents or the taking of
such actions.

 

[***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 UNDER THE SECURITIES
EXCHANGE ACT OF 1934, AS AMENDED.exv10w1

 

Exhibit 10.1

ATLANTIC COAST FEDERAL CORPORATION

EMPLOYEE STOCK OWNERSHIP PLAN

Adopted effective January 1, 2004

Amended and Restated effective January 1, 2006

 

 

ATLANTIC COAST FEDERAL CORPORATION

EMPLOYEE STOCK OWNERSHIP PLAN

     This
Employee Stock Ownership Plan, executed on the 29th day of August, 2006, by
Atlantic Coast Federal Corporation, a federally chartered mid-tier mutual holding company (the
“Company”),

WITNESSETH THAT

     WHEREAS, the board of directors of the Company initially adopted an employee stock ownership
plan (“Plan”), effective January 1, 2004, for eligible employees of the Company and its affiliates,
including Atlantic Coast Federal (the “Bank”), in accordance with the terms and conditions set
forth therein;

     WHEREAS, the Company desires to amend the Plan and to submit the Plan, as amended, to the
Internal Revenue Service for a favorable determination letter on its qualification under the
provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001 (“EGTRRA”); and

     WHEREAS, the Company desires that this Plan document shall govern the policies and procedures
and practices of the Plan from January 1, 2006 until such time as the Plan is again amended and
restated or terminated. The Plan document effective January 1, 2004, shall govern the Plan from
said date until December 31, 2005.

     NOW, THEREFORE, the Company hereby amends and restates the following Plan setting forth the
terms and conditions pertaining to contributions by the Employer and the payment of benefits to
Participants and Beneficiaries.

     IN WITNESS WHEREOF, the Company has adopted this Plan and caused this instrument to be
executed by its duly authorized officers as of the above date.

	 	 	 	 	 	 	 	 	 
	ATTEST:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	/s/ Pamela T. Saxon

	 	 	 	By:	 	/s/ Forrest W. Sweat, Jr.	 	 
	 

Secretary

	 	 
	 	 	 	 

Authorized Officer
	 	 

 

 

CONTENTS

	 	 	 	 	 
	 	 	Page No.	 
	Section 1.
Plan Identity
	 	 	1	 
	1.1 Name
	 	 	1	 
	1.2 Purpose
	 	 	1	 
	1.3 Effective Date
	 	 	1	 
	1.4 Fiscal Period
	 	 	1	 
	1.5 Single Plan for All Employers
	 	 	1	 
	1.6 Interpretation of Provisions
	 	 	1	 
	Section 2.
Definitions
	 	 	1	 
	Section 3.
Eligibility for Participation
	 	 	11	 
	3.1 Initial Eligibility
	 	 	11	 
	3.2 Definition of Eligibility Year
	 	 	11	 
	3.3 Terminated Employees
	 	 	11	 
	3.4 Certain Employees Ineligible
	 	 	11	 
	3.5 Participation and Reparticipation
	 	 	12	 
	3.6 Omission of Eligible Employee
	 	 	12	 
	3.7 Inclusion of Ineligible Employee
	 	 	12	 
	Section 4.
Contributions and Credits
	 	 	12	 
	4.1 Discretionary Contributions
	 	 	12	 
	4.2 Contributions for Stock Obligations
	 	 	13	 
	4.3 Conditions as to Contributions
	 	 	13	 
	4.4 Rollover Contributions
	 	 	14	 
	Section 5.
Limitations on Contributions and Allocations
	 	 	14	 
	5.1
Limitation on Annual Additions
	 	 	14	 
	5.2 Effect of Limitations
	 	 	16	 
	5.3 Limitations as to Certain Participants
	 	 	16	 
	5.4 Erroneous Allocations
	 	 	17	 
	5.5 Dividend Recharacterization
	 	 	17	 
	Section 6.
Trust Fund and Its Investment
	 	 	18	 
	6.1 Creation of Trust Fund
	 	 	18	 
	6.2 Stock Fund and Investment Fund
	 	 	18	 
	6.3 Acquisition of Company Stock
	 	 	18	 
	6.4 Participants’ Option to Diversify
	 	 	19	 
	Section 7.
Voting Rights and Dividends on Company Stock
	 	 	20	 
	7.1 Voting and Tendering of Company Stock
	 	 	20	 
	7.2 Application of Dividends
	 	 	21	 
	Section 8.
Adjustments to Accounts
	 	 	22	 
	8.1 ESOP Allocations
	 	 	22	 
	8.2 Charges to Accounts
	 	 	23	 
	8.3 Stock Fund Account
	 	 	24	 

 

 

	 	 	 	 	 
	 	 	Page No.	 
	8.4 Investment Fund Account
	 	 	24	 
	8.5 Adjustment to Value of Trust Fund
	 	 	24	 
	8.6 Participant Statements
	 	 	24	 
	Section 9.
Vesting of Participants’ Interests
	 	 	25	 
	9.1 Deferred Vesting in Accounts
	 	 	25	 
	9.2 Computation of Vesting Years
	 	 	25	 
	9.3 Full Vesting Upon Certain Events
	 	 	26	 
	9.4 Full Vesting Upon Plan Termination
	 	 	27	 
	9.5 Forfeiture, Repayment, and Restoral
	 	 	27	 
	9.6 Accounting for Forfeitures
	 	 	28	 
	9.7 Vesting and Nonforfeitability
	 	 	28	 
	Section 10.
Payment of Benefits
	 	 	28	 
	10.1 Benefits for Participants
	 	 	28	 
	10.2 Time for Distribution
	 	 	29	 
	10.3 Marital Status
	 	 	30	 
	10.4 Delay in Benefit Determination
	 	 	30	 
	10.5 Accounting for Benefit Payments
	 	 	30	 
	10.6 Options to Receive and Sell Company Stock
	 	 	30	 
	10.7 Restrictions on Disposition of Company Stock
	 	 	32	 
	10.8 Continuing Loan Provisions; Creations of Protections and Rights
	 	 	32	 
	10.9 Direct Rollover of Eligible Distribution
	 	 	32	 
	10.10 Waiver of 30-Day Period After Notice of Distribution
	 	 	33	 
	Section 11.
Rules Governing Benefit Claims and Review of Appeals
	 	 	33	 
	11.1 Claim for Benefits
	 	 	33	 
	11.2 Notification by Committee
	 	 	34	 
	11.3 Claims Review Procedure
	 	 	34	 
	Section 12.
The Committee and its Functions
	 	 	34	 
	12.1 Authority of Committee
	 	 	34	 
	12.2 Identity of Committee
	 	 	35	 
	12.3 Duties of Committee
	 	 	35	 
	12.4 Compliance with ERISA
	 	 	36	 
	12.5 Action by Committee
	 	 	36	 
	12.6 Execution of Documents
	 	 	36	 
	12.7 Adoption of Rules
	 	 	36	 
	12.8 Responsibilities to Participants
	 	 	36	 
	12.9 Alternative Payees in Event of Incapacity
	 	 	36	 
	12.10 Indemnification by Employers
	 	 	36	 
	12.11 Nonparticipation by Interested Member
	 	 	37	 
	Section 13.
Adoption, Amendment, or Termination of the Plan
	 	 	37	 
	13.1 Adoption of Plan by Other Employers
	 	 	37	 
	13.2 Plan Adoption Subject to Qualification
	 	 	37	 
	13.3 Right to Amend or Terminate
	 	 	37	 

(ii)

 

	 	 	 	 	 
	 	 	Page No.	 
	Section 14.
Miscellaneous Provisions
	 	 	38	 
	14.1 Plan Creates No Employment Rights
	 	 	38	 
	14.2 Nonassignability of Benefits
	 	 	38	 
	14.3 Limit of Employer Liability
	 	 	38	 
	14.4 Treatment of Expenses
	 	 	38	 
	14.5 Number and Gender
	 	 	39	 
	14.6 Nondiversion of Assets
	 	 	39	 
	14.7 Separability of Provisions
	 	 	39	 
	14.8 Service of Process
	 	 	39	 
	14.9 Governing State Law
	 	 	39	 
	14.10 Employer Contributions Conditioned on Deductibility
	 	 	39	 
	14.11 Unclaimed Accounts
	 	 	39	 
	14.12 Qualified Domestic Relations Order
	 	 	40	 
	Section 15.
Top-Heavy Provisions
	 	 	41	 
	15.1 Top-Heavy Plan
	 	 	41	 
	15.2 Super Top-Heavy Plan
	 	 	41	 
	15.3 Definitions
	 	 	41	 
	15.4 Top-Heavy Rules of Application
	 	 	43	 
	15.5 Minimum Contributions
	 	 	44	 
	15.7 Top-Heavy Provisions Control in Top-Heavy Plan
	 	 	44	 

(iii)

 

ATLANTIC COAST FEDERAL CORPORATION

EMPLOYEE STOCK OWNERSHIP PLAN

Section 1. Plan Identity.

     1.1 Name. The name of this Plan is “Atlantic Coast Federal Corporation Employee Stock
Ownership Plan.”

     1.2 Purpose. The purpose of this Plan is to describe the terms and conditions under
which contributions made pursuant to the Plan will be credited and paid to the Participants and
their Beneficiaries.

     1.3 Effective Date. The Effective Date of this Plan was initially, January 1, 2004.
The Effective Date of this restatement is January 1, 2006.

     1.4 Fiscal Period. This Plan shall be operated on the basis of a January 1 to
December 31 fiscal year for the purpose of keeping the Plan’s books and records and distributing or
filing any reports or returns required by law.

     1.5 Single Plan for All Employers. This Plan shall be treated as a single plan with
respect to all participating Employers for the purpose of crediting contributions and forfeitures
and distributing benefits, determining whether there has been any termination of Service, and
applying the limitations set forth in Section 5.

     1.6 Interpretation of Provisions. The Employers intend this Plan and the Trust
Agreement to be a qualified stock bonus plan under Section 401(a) of the Code and an employee stock
ownership plan within the meaning of Section 407(d)(6) of ERISA and Section 4975(e)(7) of the Code.
The Plan is intended to have its assets invested primarily in qualifying employer securities of
one or more Employers within the meaning of Section 407(d)(3) of ERISA, and to satisfy any
requirement under ERISA or the Code applicable to such a plan.

     Accordingly, the Plan and Trust Agreement shall be interpreted and applied in a manner
consistent with this intent and shall be administered at all times and in all respects in a
nondiscriminatory manner.

Section 2. Definitions.

     The following capitalized words and phrases shall have the meanings specified when used in
this Plan and in the Trust Agreement, unless the context clearly indicates otherwise:

 

 

     “Account” means a Participant’s interest in the assets accumulated under this Plan as
expressed in terms of a separate account balance which is periodically adjusted to reflect his
Employer’s contributions, the Plan’s investment experience, and distributions and forfeitures.

     “Active Participant” means a Participant who has satisfied the eligibility requirements under
Section 3 and who has at least 1,000 Hours of Service during the current Plan Year. However, a
Participant shall not qualify as an Active Participant unless (i) he is in active Service with an
Employer as of the last day of the Plan Year, or (ii) he is on a Recognized Absence as of that
date, or (iii) his Service terminated during the Plan Year by reason of Disability, death, Early or
Normal Retirement.

     “Bank” means Atlantic Coast Federal and any entity which succeeds to the business of Atlantic
Coast Federal. and adopts this Plan as its own pursuant to Section 13.1 of the Plan.

     “Beneficiary” means the person or persons who are designated by a Participant to receive
benefits payable under the Plan on the Participant’s death. In the absence of any designation or
if all the designated Beneficiaries shall die before the Participant dies or shall die before all
benefits have been paid, the Participant’s Beneficiary shall be his surviving Spouse, if any, or
his estate if he is not survived by a Spouse. The Committee may rely upon the advice of the
Participant’s executor or administrator as to the identity of the Participant’s Spouse.

     “Break in Service” means any Plan Year, or, for the initial eligibility computation period
under Section 3.2, the 12-consecutive month period beginning on the first day of which an Employee
has an Hour of Service, in which an Employee has 500 or fewer Hours of Service. Solely for this
purpose, an Employee shall be considered employed for his normal hours of paid employment during a
Recognized Absence (said Employee shall not be credited with more than 501 Hours of Service to
avoid a Break in Service), unless he does not resume his Service at the end of the Recognized
Absence. Further, if an Employee is absent for any period (i) by reason of the Employee’s
pregnancy, (ii) by reason of the birth of the Employee’s child, (iii) by reason of the placement of
a child with the Employee in connection with the Employee’s adoption of the child, or (iv) for
purposes of caring for such child for a period beginning immediately after such birth or placement,
the Employee shall be credited with the Hours of Service which would normally have been credited
but for such absence, up to a maximum of 501 Hours of Service.

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

     “Committee” means the committee responsible for the administration of this Plan in accordance
with Section 12.

-2-

 

     “Company” means Atlantic Coast Federal Corporation, the holding company of the Bank, and any
entity which succeeds to the business of the Company and adopts this Plan as its own pursuant to
Section 13.1 of the Plan.

     “Company Stock” means shares of the Company’s voting common stock or preferred stock meeting
the requirements of Section 409(e)(3) of the Code issued by an Employer which is a member of the
same controlled group of corporations within the meaning of Code Section 414(b). The term “Company
Stock” shall include fractional shares, unless the context clearly indicates otherwise.

     “Compensation” Except as otherwise provided in Section 5, the term “Compensation” means a
Participant’s total regular earnings from the Company paid during a Plan Year for services rendered
that are reportable on the Participant’s IRS Form W-2, Wage and Tax Statement, including bonuses,
overtime, and commissions. In addition, the term “Compensation” shall include earnings which are
not currently includible in a Participant’s gross income for federal income tax purposes by reason
of Section 125, 132(f), 402(e)(3), 402(h), or 403(b) of the Code. However, the term “Compensation”
shall not include any of the following: (a) any earnings in excess of the amount that is determined
under Section 401(a)(17) of the Code (which amount for the Limitation Year ending December 31, 2004
is $205,000; or (b) any contributions or benefits under this Plan or under any other pension,
profit sharing, insurance, hospitalization, or other plan or policy maintained by the Company for
the benefit of the Participant. In any case where a Participant commences participation in the
Plan, or resumes active participation in the Plan after incurring a Break-in-Service, on any day
other than the first day of a Plan Year, his or her Compensation for that Plan Year shall be that
portion of his or her Compensation as determined herein paid during the period of his or her
participation in the Plan for that Plan Year.

     “Disability” means the inability to engage in any substantial gainful activity by reason of
any medically determinable physical or mental impairment which can be expected to result in death
or which has lasted or can be expected to last for a continuous period of not less than 12 months.
An individual shall not be considered to be permanently and totally disabled unless he furnishes
proof of the existence thereof in such form and manner, and at such times, as the Committee may
require.

     “Early Retirement Date” means the date on which a Participant’s employment with the Company is
terminated for any reason on or after the date on which he or she attains age 55.

     “Effective Date” of the restated Plan means January 1, 2006. Originally, the Plan’s Effective
Date was January 1, 2004.

     “Eligible Employee” means an Employee, other than an Employee identified in Section 3.4, who
has performed 1,000 Hours of Service in the applicable Eligibility Year in accordance with Section
3.2.

-3-

 

     “Employee” means any individual who is employed by the Company or the Bank, including an
officer, who receives regular Compensation other than retirement benefits under this Plan and
including Leased Employees. However, if Leased Employees constitute less than twenty percent of
the Company’s “nonhighly compensated work force” (as defined in Code Section 414(n)(5)(c)(ii) of
the Code), the term “Employee” shall not include any Leased Employees who are covered by a plan
described in Code Section 414(n)(5)(B) maintained by a leasing organization.

     “Employer” means the Company, the Bank, or any affiliate within the purview of section 414(b),
(c) or (m) and 415(h) of the Code, any other corporation, partnership, or proprietorship which
adopts this Plan with the Company’s consent pursuant to Section 13.1, and any entity which succeeds
to the business of any Employer and adopts the Plan pursuant to Section 13.2.

     “Entry Date” means the Effective Date of the Plan and each January 1 and July 1 of each Plan
Year after the Effective Date. Notwithstanding the foregoing, effective January 1, 2006, “Entry
Date” shall mean January 1 of each Plan Year.

     “ERISA” means the Employee Retirement Income Security Act of 1974 (P.L. 93-406, as amended).

     “Fair Market Value” means, with respect to Company Stock, either (a) the price of the stock
prevailing on a national securities exchange which is registered under Section 6 of the Securities
Exchange Act of 1934, or (b) if the stock is not traded on a national securities exchange, then the
offering price for the stock as established by the current bid and asked prices quoted by persons
independent of the Company and any affiliates of the Company. If at any time there shall be no
generally-recognized market for the Company Stock, then the Fair Market Value of the Company Stock
shall be determined by the Trustee based upon a valuation of an independent appraiser meeting the
requirements of the regulations prescribed under Code Section 170(a)(1).

     “Highly Compensated Employee” for any Plan Year means an Employee who, during either that or
the immediately preceding Plan Year was at any time a five percent owner of the Employer (as
defined in Code Section 416(i)(1)) or, during the immediately preceding Plan Year, had Compensation
exceeding $95,000 (the $95,000 amount is adjusted at the same time and in the same manner as under
Code Section 415(d)) and was in the group of Employees consisting of the top 20 percent of all
Employees when ranked on the basis of compensation paid by the Employer during the preceding Plan
Year. For these purposes, “the top 20 percent of all Employees” shall be determined by taking into
account all
individuals working for all related Employer entities described in the definition of
“Service,” but excluding any individual who has not completed six months of Service, who normally
works fewer than 171/2 hours per week or in fewer than six months per year, who has not

-4-

 

reached age 21, whose employment is covered by a collective bargaining agreement, or who is a nonresident alien
who receives no earned income from United States sources.

     “Hours of Service” means hours to be credited to an Employee under the following rules:

     (a) Each hour for which an Employee is paid or is entitled to be paid for services to
an Employer is an Hour of Service.

     (b) Each hour for which an Employee is directly or indirectly paid or is entitled to be
paid for a period of vacation, holidays, illness, disability, lay-off, jury duty, temporary
military duty, or leave of absence is an Hour of Service. However, except as otherwise
specifically provided, no more than 501 Hours of Service shall be credited for any single
continuous period which an Employee performs no duties. No more than 501 Hours of Service
will be credited under this paragraph for any single continuous period (whether or not such
period occurs in a single computation period). Further, no Hours of Service shall be
credited on account of payments made solely under a plan maintained to comply with worker’s
compensation, unemployment compensation, or disability insurance laws, or to reimburse an
Employee for medical expenses.

     (c) Each hour for which back pay (ignoring any mitigation of damages) is either awarded
or agreed to by an Employer is an Hour of Service. However, no more than 501 Hours of
Service shall be credited for any single continuous period during which an Employee would
not have performed any duties. The same Hours of Service will not be credited both under
paragraph (a) or (b) as the case may be, and under this paragraph (c). These hours will be
credited to the employee for the computation period or periods to which the award or
agreement pertains rather than the computation period in which the award agreement or
payment is made.

     (d) Hours of Service shall be credited in any one period only under one of the
foregoing paragraphs (a), (b) and (c); an Employee may not get double credit for the same
period.

     (e) If an Employer finds it impractical to count the actual Hours of Service for any
class or group of non-hourly Employees, each Employee in that class or group shall be
credited with 90 Hours of Service for each bi-weekly pay period in which he has at least one
Hour of Service. However, an Employee shall be credited only for his normal working hours
during a paid absence.

     (f) Hours of Service to be credited on account of a payment to an Employee (including
back pay) shall be recorded in the period of Service for which the payment was made. If the
period overlaps two or more Plan Years, the Hours of Service credit shall be allocated in
proportion to the respective portions of the period included in the

-5-

 

several Plan Years.
However, in the case of periods of 31 days or less, the Administrator may apply a uniform
policy of crediting the Hours of Service to either the first Plan Year or the second.

     (g) In all respects an Employee’s Hours of Service shall be counted as required by
Section 2530.200b-2(b) and (c) of the Department of Labor’s regulations under Title I of
ERISA.

     “Investment Fund” means that portion of the Trust Fund consisting of assets other than Company
Stock. Notwithstanding the above, assets from the Investment Fund may be used to purchase Company
Stock in the open market or otherwise, or used to pay on the Stock Obligation, and shares so
purchased will be allocated to a Participant’s Stock Fund.

     “Leased Employee” means any person (other than an employee of the “Recipient”) who, pursuant
to an agreement between the Recipient and the Leasing Organization: (a) has performed services for
the Recipient (or for the Recipient and a related person determined in accordance with Code Section
414(n)(6)) on a substantially full-time basis for a period of at least one year; and (b) performed
these services under the primary direction and control of the Recipient. For these purposes, the
terms “Recipient” and “Leasing Organization” shall have the meanings set forth in Code Section
414(n).

     “Normal Retirement” means retirement on or after the Participant’s Normal Retirement Date.

     “Normal Retirement Date” means the date on which a Participant’s employment with the Company
is terminated for any reason on or after the date on which he or she attains age 65.

     “Participant” means any Eligible Employee who is an Active Participant participating in the
Plan, or an Employee or former Employee who was previously an Active Participant and still has a
balance credited to his Account.

     “Period of Uniformed Service” means the length of time that an Employee serves in the
Uniformed Services.

     “Plan Year” means the twelve-month period that begins on January 1st and ends on
December 31st.

     “Recognized Absence” means a period for which —

     (a) an Employer grants an Employee a leave of absence for a limited period, but only if
an Employer grants such leave on a nondiscriminatory basis; or

     (b) an Employee is temporarily laid off by an Employer because of a change in business
conditions; or

-6-

 

     (c) an Employee is on active military duty, but only to the extent that his employment
rights are protected by the Military Selective Service Act of 1967 (38 U.S.C. Sec. 2021).

     “Reemployment After a Period of Uniformed Service”

          (a) “Reemployment (or Reemployed) After a Period of Uniformed Service” means that an Employee
returned to employment with a Participating Employer, within the time frame set forth in
subparagraph (b) below, after a Period of Uniformed Service in the Uniformed Services and the
following rules corresponding to provisions of the Uniformed Services Employment and Reemployment
Rights Act of 1994 (“USERRA”) apply: (i) he or she gives sufficient notice of leave to the
Participating Employer prior to commencing a Period of Uniformed Service, or is excused from
providing such notice; (ii) his or her employment with the Participating Employer prior to a Period
of Uniformed Service was not of a brief, nonrecurrent nature that would preclude a reasonable
expectation that such employment would continue indefinitely or for a significant period; (iii) the
Participating Employer’s circumstances have not changed so that reemployment is unreasonable or an
undue hardship to the Participating Employer; and (iv) the applicable cumulative Periods of
Uniformed Service under USERRA equals five years or less, unless service in the Uniformed Services:

               (1) in excess of five years is required to complete an initial Period of Uniformed Service;

               (2) prevents the Participant from obtaining orders releasing him or her from such Period of
Uniformed Service prior to the expiration of a five-year period (through no fault of the
Participant);

               (3) is required in the National Guard for drill and instruction, field exercises or active
duty training, or to fulfill necessary additional training, or to fulfill necessary additional
training requirements certified in writing by the Secretary of the branch of Uniformed Services
concerned; or

               (4) for a Participant is

                    (A) required other than for training under any provisions of law
during a war or national
agency declared by the President or Congress;

                    (B) required (other than for training) in support of an
operational mission for which
personnel have been ordered to active duty other than during war or national emergency;

                    (C) required in support of a critical mission or requirement of
the Uniformed Services; or

-7-

 

                    (D) the result of being called into service as a member of the
National Guard by the President
in the case of rebellion or danger of rebellion against the authority of the United States
Government or if the President is unable to execute the laws of the United States with the regular
forces.

          (b) The applicable statutory time frames within which an Employee must report to a
Participating Employer after a Period of Uniformed Service are as follows:

               (1) If the Period of Uniformed Service was less than 31 days,

                    (A) not later than the beginning of the first full regularly
scheduled work period on the
first full calendar day following the completion of the Period of Uniformed Service and the
expiration of eight hours after a period of time allowing for the safe transportation of the
Employee from the place of service in the Uniformed Services to the Employee’s residence; or

                    (B) as soon as possible after the expiration of the eight-hour
period of time referred to in
Clause (A), if reporting within the period referred to in such clause is impossible or
unreasonable through no fault of the Employee.

               (2) In the case of an Employee whose Period of Uniformed Service was for more than 30 days
but
less than 181 days, by submitting an application for reemployment with a Participating Employer not
later than 14 days after the completion of the Period of Uniformed Service or, if submitting such
application within such period is impossible or unreasonable through no fault of the Employee, the
next first full calendar day when submission of such application becomes reasonable.

               (3) In the case of an Employee whose Period of Uniformed Service was for more than
180 days,
by submitting an application for reemployment with a Participating Employer not later than 90 days
after the completion of the Period of Uniformed Service.

               (4) In the case of an Employee who is hospitalized for, or convalescing from, an illness or
injury related to the Period of Uniformed Service the Employee shall apply for reemployment with a
Participating Employer at the end of the period that is necessary for the Employee to recover.
Such period of recovery shall not
exceed two years, unless circumstances beyond the Employee’s control make reporting as above
unreasonable or impossible.

          (c) Notwithstanding subparagraph (a), Reemployment After a Period of Uniformed Service
terminates upon the occurrence of any of the following:

               (1) a dishonorable or bad conduct discharge from the Uniformed Services;

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               (2) any other discharge from the Uniformed Services under circumstances other than an
honorable condition;

               (3) a discharge of a commissioned officer from the Uniformed Services by court martial, by
commutation of sentence by court martial, or, in time of war, by the President; or

               (4) a demotion of a commissioned officer in the Uniformed Services for absence without
authorized leave of at least 3 months confinement under a sentence by court martial, or confinement
in a federal or state penitentiary after being found guilty of a crime under a final sentence.

     “Service” means an Employee’s period(s) of employment or self-employment with an Employer,
excluding for initial eligibility purposes any period in which the individual was a nonresident
alien and did not receive from an Employer any earned income which constituted income from sources
within the United States. An Employee’s Service shall include any Service which constitutes
Service with a predecessor Employer within the meaning of Section 414(a) of the Code, provided,
however, that Service with an acquired entity shall not be considered Service under the Plan unless
required by applicable law or agreed to by the parties to such transaction. An Employee’s Service
shall also include any Service with an entity which is not an Employer, but only to the extent: (i)
that the other entity is a member of a controlled group of corporations or is under common control
with other trades and businesses within the meaning of Section 414(b) or 414(c) of the Code, and a
member of the controlled group or one of the trades and businesses is an Employer, (ii) that the
other entity is a member of an affiliated service group within the meaning of Section 414(m) of the
Code, and a member of the affiliated service group is an Employer, or (iii) of the Employee’s
Service with all employers aggregated with the Employer under Section 414(o) of the Code (but not
until the Proposed Regulations under Section 414(o) become effective). Notwithstanding any
provision of this Plan to the contrary, contributions, benefits and service credit with respect to
qualified military service will be provided in accordance with Section 414(u) of the Code.

     “Spouse” means the individual, if any, to whom a Participant is lawfully married on the date
benefit payments to the Participant are to begin, or on the date of the Participant’s death, if
earlier. A former Spouse shall be treated as the Spouse or surviving Spouse to the
extent provided under a qualified domestic relations order as described in section 414(p) of
the Code.

     “Stock Fund” means that portion of the Trust Fund consisting of Company Stock.

     “Stock Obligation” means an indebtedness arising from any extension of credit to the Plan or
the Trust which satisfies the requirements set forth in Section 6.3 and which was obtained for any
or all of the following purposes:

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          (i) to acquire qualifying Employer securities as defined in Treasury Regulations § 54.4975-12;

          (ii) to repay such Stock Obligation; or

          (iii) to repay a prior exempt loan.

     “Trust” or “Trust Fund” means the trust fund created under this Plan to hold the assets of the
Plan.

     “Trust Agreement” means the agreement between the Company and the Trustee concerning the Trust
Fund. If any assets of the Trust Fund are held in a co-mingled trust fund with assets of other
qualified retirement plans, “Trust Agreement” shall be deemed to include the trust agreement
governing that co-mingled trust fund. With respect to the allocation of investment responsibility
for the assets of the Trust Fund, the provisions of Article II of the Trust Agreement are
incorporated herein by reference.

     “Trustee” means one or more corporate persons or individuals selected from time to time by the
Company to serve as trustee or co-trustees of the Trust Fund.

     “Unallocated Stock Fund” means that portion of the Stock Fund consisting of the Plan’s holding
of Company Stock which has been acquired in exchange for one or more Stock Obligations and which
have not yet been allocated to the Participant’s Accounts in accordance with Section 4.2.

     “Uniformed Service” means the performance of duty on a voluntary or involuntary basis in the
uniformed service of the United States, including the U.S. Public Health Services, under competent
authority and includes active duty, active duty for training, initial activity duty for training,
inactive duty training, full-time National Guard duty, and the period for which a person is absent
from a position of employment for purposes of an examination to determine the fitness of the person
to perform any such duty.

     “Valuation Date” means for so long as there is a generally recognized market for the Company
Stock each business day. If at any time there shall be no generally-recognized market for the
Company Stock, then “Valuation Date” shall mean the last day of the Plan
Year and each other date as of which the Committee shall determine the investment experience
of the Investment Fund and adjust the Participants’ Accounts accordingly.

     “Valuation Period” means the period following a Valuation Date and ending with the next
Valuation Date, provided, however, that with respect to the assets in the Investment Fund, the last
day of the Valuation Period shall be December 31.

     “Vesting Year” means a unit of Service credited to a Participant pursuant to Section 9.2 for
purposes of determining his vested interest in his Account.

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     “Year of Service” means a 12-month period of Service during which an Employee or Participant
has completed at least 1,000 Hours of Service with the Company, the Bank, the Bank’s mutual
predecessor or an affiliate. For purposes of determining Vesting Years prior to the adoption of
the Plan, a Year of Service shall be based on the calendar year.

Section 3. Eligibility for Participation.

     3.1 Initial Eligibility. An Eligible Employee shall enter the Plan (retroactively) as
of the Entry Date immediately preceding the last day of the Eligible Employee’s first
Eligibility Year.

     3.2 Definition of Eligibility Year. “Eligibility Year” means an applicable
eligibility period (as defined below) in which the Eligible Employee has completed 1,000 Hours of
Service for the Employer. For this purpose, an Employee’s first “eligibility period” is the
12-consecutive month period beginning on the first day on which he has an Hour of Service. If the
Employee does not have 1,000 Hours of Service in the first eligibility period, the next eligibility
period shall commence on the first day of the Plan Year commencing within the Employee’s first
eligibility period, and subsequent eligibility periods shall be each Plan Year thereafter.

     3.3 Terminated Employees. An Employee shall have no interest or rights under this
Plan if the Employee is never in active Service with an Employer on or after the Effective Date.

     3.4 Certain Employees Ineligible.

          3.4-1. No Employee shall participate in the Plan while his Service is covered by a collective
bargaining agreement between an Employer and the Employee’s collective bargaining representative if
(i) retirement benefits have been the subject of good faith bargaining between the Employer and the
representative and (ii) the collective bargaining agreement does not provide for the Employee’s
participation in the Plan.

          3.4-2. Leased Employees are not eligible to participate in the Plan.

          3.4-3. Employees who are nonresident aliens with no earned income (within the meaning of Code
Section 911(d)(2)) from the Employer which constitutes income from sources within the United States
(within the meaning of Code Section 861(a)(3)).

          3.4-4. An Eligible Employee may elect not to participate in the Plan, provided, however, such
election is made solely to meet the requirements of Code Section 409(n). For an election to be
effective for a particular Plan Year, the Eligible Employee or Participant must file the election
in writing with the Plan Administrator no later than the last day of the Plan Year for which the
election is to be effective. The Employer may not make a contribution under the Plan for the
Eligible Employee or for the Participant for the Plan Year

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for which the election is effective, nor
for any succeeding Plan Year, unless the Eligible Employee or Participant re-elects to participate
in the Plan. The Eligible Employee or Participant may elect again not to participate, but not
earlier than the first Plan Year following the Plan Year in which the re-election was first
effective.

     3.5 Participation and Reparticipation. Subject to the satisfaction of the foregoing
requirements, an Eligible Employee shall participate in the Plan during each period of his Service
from the date on which he first becomes eligible until his termination. For this purpose, an
Eligible Employee who returns before five (5) consecutive one year Breaks in Service who previously
satisfied the initial eligibility requirements or who returns after five (5) consecutive one year
Breaks in Service with a vested Account balance in the Plan shall re-enter the Plan as of the date
of his return to Service with an Employer.

     3.6 Omission of Eligible Employee. If, in any Plan Year, any Eligible Employee who
should be included as a Participant in the Plan is erroneously omitted and discovery of such
omission is not made until after a contribution by his Employer for the year has been made, the
Employer shall, in its sole discretion, (i) either allocate an amount equal to the omitted
allocation (A) from forfeitures under Section 9.6 or (B) from dividends received on Company Stock
in the Unallocated Stock Fund, or (ii) make a subsequent contribution with respect to the omitted
Eligible Employee in the amount which the said Employer would have contributed regardless of
whether or not it is deductible in whole or in part in any taxable year under applicable provisions
of the Code.

     3.7 Inclusion of Ineligible Employee. If, in any Plan Year, any person who should not
have been included as a Participant in the Plan is erroneously included and discovery of such
incorrect inclusion is not made until after a contribution for the year has been made, the Employer
shall not be entitled to recover the contribution made with respect to the ineligible person
regardless of whether or not a deduction is allowable with respect to such contribution. In such
event, the amount contributed with respect to the ineligible person shall constitute a forfeiture
for the fiscal year in which the discovery is made. Any person who, after the close of a Plan
Year, is
retroactively treated by the Company, an affiliated company or any other party as an Employee
for such prior Plan Year shall not, for purposes of the Plan, be considered an Employee for such
prior Plan Year unless expressly so treated as such by the Company.

Section 4. Contributions and Credits.

     4.1 Discretionary Contributions.

     4.1-1. The Employer shall from time to time contribute, with respect to a Plan Year, such
amounts as it may determine from time to time. The Employer shall have no obligation to contribute
any amount under this Plan except as so determined in its sole discretion. The Employer’s
contributions and available forfeitures for a Plan Year shall be credited as of the

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last day of the
year to the Accounts of the Active Participants in the manner set forth in Section 8.1-2.

     4.1-2. Upon a Participant’s Reemployment After a Period of Uniformed Service, the Employer
shall make an additional contribution on behalf of such Participant that would have been made on
his or her behalf during the Plan Year or Years corresponding to the Participant’s Period of
Uniformed Service.

     4.2 Contributions for Stock Obligations. If the Trustee, upon instructions from the
Committee, incurs any Stock Obligation upon the purchase of Company Stock, the Employer may
contribute for each Plan Year an amount sufficient to cover all payments of principal and interest
as they come due under the terms of the Stock Obligation. If there is more than one Stock
Obligation, the Employer shall designate the one to which any contribution is to be applied.
Investment earnings realized on Employer contributions and any dividends paid by the Employer on
Company Stock held in the Unallocated Stock Account, shall be applied to the Stock Obligation
related to that Company Stock, subject to Section 7.2.

     In each Plan Year in which Employer contributions, earnings on contributions, or dividends on
Company Stock in the Unallocated Stock Fund are used as payments under a Stock Obligation, a
certain number of shares of the Company Stock acquired with that Stock Obligation which is then
held in the Unallocated Stock Fund shall be released for allocation among the Participants. The
number of shares released shall bear the same ratio to the total number of those shares then held
in the Unallocated Stock Fund (prior to the release) as (i) the principal and interest payments
made on the Stock Obligation in the current Plan Year bears to (ii) the sum of (i) above, and the
remaining principal and interest payments required (or projected to be required on the basis of the
interest rate in effect at the end of the Plan Year) to satisfy the Stock Obligation.

     At the direction of the Committee, the current and projected payments of interest under a
Stock Obligation may be ignored in calculating the number of shares to be released in each year if
(i) the Stock Obligation provides for annual payments of principal and interest
at a cumulative rate that is not less rapid at any time than level annual payments of such
amounts for 10 years, (ii) the interest included in any payment is ignored only to the extent that
it would be determined to be interest under standard loan amortization tables, and (iii) the term
of the Stock Obligation, by reason of renewal, extension, or refinancing, has not exceeded 10 years
from the original acquisition of the Company Stock.

     4.3 Conditions as to Contributions. Employers’ contributions shall in all events be
subject to the limitations set forth in Section 5. Contributions may be made in the form of cash,
or securities and other property to the extent permissible under ERISA, including Company Stock,
and shall be held by the Trustee in accordance with the Trust Agreement. In addition to the
provisions of Section 13.2 for the return of an Employer’s contributions in connection with a
failure of the Plan to qualify initially under the Code, any amount

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contributed by an Employer due
to a good faith mistake of fact, or based upon a good faith but erroneous determination of its
deductibility under Section 404 of the Code, shall be returned to the Employer within one year
after the date on which the contribution was originally made, or within one year after its
nondeductibility has been finally determined. However, the amount to be returned shall be reduced
to take account of any adverse investment experience within the Trust Fund in order that the
balance credited to each Participant’s Account is not less that it would have been if the
contribution had never been made.

     4.4 Rollover Contributions. This Plan shall not accept a direct rollover or rollover
contribution of an “eligible rollover distribution” as such term is defined in Section 10.9-1 of
the Plan.

Section 5. Limitations on Contributions and Allocations.

     5.1 Limitation on Annual Additions. Notwithstanding anything herein to the contrary,
allocation of Employer contributions for any Plan Year shall be subject to the following:

          5.1-1 If allocation of Employer contributions in accordance with Section 4.1 will result in an
allocation of more than one-third the total contributions for a Plan Year to the Accounts of Highly
Compensated Employees, then allocation of such amount shall be adjusted so that such excess will
not occur.

          5.1-2 After adjustment, if any, required by the preceding paragraph, the annual additions
during any Plan Year to any Participant’s Account under this and any other defined contribution
plans maintained by the Employer or an affiliate (within the purview of Section 414(b), (c) and (m)
and Section 415(h) of the Code, which affiliate shall be deemed the Employer for this purpose)
shall not exceed the lesser of $44,000 (or such other dollar amount which results from
cost-of-living adjustments under Section 415(d) of the Code) (the
“dollar limitation”) or 100 percent of the Participant’s Compensation for such limitation year
(the “percentage limitation”). The percentage limitation shall not apply to any contribution for
medical benefits after separation from service (within the meaning of Section 401(h) or Section
419A(f)(2) of the Code) which is otherwise treated as an annual addition. If, as a result of the
allocation of forfeitures, a reasonable error in estimating a Participant’s annual compensation, a
reasonable error in determining the amount of elective deferrals (within the meaning of Code
Section 402(g)(3)) that may be made with respect to any individual under the limits of Code Section
415, or under other limited facts and circumstances that the Commissioner of the Internal Revenue
Service finds justify the availability of the rules set forth in this paragraph, the annual
additions under the terms of the Plan for a particular Participant would cause the limitations of
Code Section 415 applicable to that Participant for the limitation year to be exceeded, the excess
amounts shall not be deemed annual additions in that limitation year if they are treated in
accordance with any one of the following:

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          (i) Any excess amount at the end of the Plan Year that cannot be allocated to the
Participant’s Account shall be reallocated to the remaining Participants who are eligible for an
allocation of Employer contributions for the Plan Year. The reallocation shall be made in
accordance with Section 4.1 of the Plan as if the Participant whose Account otherwise would receive
the excess amount is not eligible for an allocation of Employer contributions.

          (ii) If the allocation or reallocation of the excess amounts causes the limitations of Code
section 415 to be exceeded with respect to each Participant for the limitation year, then the
excess amount will be held unallocated in a suspense account. The suspense account will be applied
to reduce future Employer contributions for all remaining Participants in the next limitation year
and each succeeding limitation year if necessary.

          (iii) If a suspense account is in existence at any time during a limitation year, it will not
participate in any allocation of investment gains and losses. All amounts held in suspense
accounts must be allocated to Participants’ Accounts before any contributions may be made to the
Plan for the limitation year.

          (iv) If a suspense account exists at the time of Plan termination, amounts held in the
suspense account that cannot be allocated shall revert to the Employer.

          5.1-3 For purposes of this Section 5.1, the “annual addition” to a Participant’s Accounts
means the sum of (i) Employer contributions, (ii) Employee contributions, if any, and (iii)
forfeitures. For these purposes, annual additions to a defined contribution plan shall not include
the allocation of the excess amounts remaining in the Unallocated Stock Fund subsequent to a sale
of stock from such fund in accordance with a transaction described in Section 8.1 of the Plan.

          5.1-4 Notwithstanding the foregoing, if no more than one-third of the Employer contributions
to the Plan for a year which are deductible under Section 404(a)(9)
of the Code are allocated to Highly Compensated Employees (within the meaning of Section
414(q) of the Internal Revenue Code), the limitations imposed herein shall not apply to:

          (i) forfeitures of Employer securities (within the meaning of Section 409 of the Code) under
the Plan if such securities were acquired with the proceeds of a loan described in Section
404(a)(9)(A) of the Code), or

          (ii) Employer contributions to the Plan which are deductible under Section 404(a)(9)(B) and
charged against a Participant’s Account.

          5.1-5 If the Employer contributes amounts, on behalf of Eligible Employees covered by this
Plan, to other “defined contribution plans” as defined in Section 3(34) of ERISA, the limitation on
annual additions provided in this Section shall be applied to annual additions in the aggregate to
this Plan and to such other plans. Reduction of annual

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additions, where required, shall be
accomplished first by reductions under such other plan pursuant to the directions of the named
fiduciary for administration of such other plans or under priorities, if any, established under the
terms of such other plans and then by allocating any remaining excess for this Plan in the manner
and priority set out above with respect to this Plan.

          5.1-6 A limitation year shall mean each 12 consecutive month period ending on December 31.

     5.2 Effect of Limitations. The Committee shall take whatever action may be necessary
from time to time to assure compliance with the limitations set forth in Section 5.1. Specifically,
the Committee shall see that each Employer restrict its contributions for any Plan Year to an
amount which, taking into account the amount of available forfeitures, may be completely allocated
to the Participants consistent with those limitations. Where the limitations would otherwise be
exceeded by any Participant, further allocations to the Participant shall be curtailed to the
extent necessary to satisfy the limitations. Where an excessive amount is contributed on account
of a mistake as to one or more Participants’ compensation, or there is an amount of forfeitures
which may not be credited in the Plan Year in which it becomes available, the amount shall be
corrected in accordance with Section 5.1-2 of the Plan. If it is determined at any time that the
Committee and/or Trustee has erred in accepting and allocating any contributions or forfeitures
under this Plan, or in allocating net gain or loss pursuant to Sections 8.2 and 8.3, then the
Committee, in a uniform and nondiscriminatory manner, shall determine the manner in which such
error shall be corrected and shall promptly advise the Trustee in writing of such error and of the
method for correcting such error. The Accounts of any or all Participants may be revised, if
necessary, in order to correct such error.

     5.3 Limitations as to Certain Participants. Aside from the limitations set forth in
Section 5.1, if the Plan acquires any Company Stock in a transaction as to which a selling
shareholder or the estate of a deceased
shareholder is claiming the benefit of Section 1042 of the Code, the Committee shall see that
none of such Company Stock, and no other assets in lieu of such Company Stock, are allocated to the
Accounts of certain Participants in order to comply with Section 409(n) of the Code.

     This restriction shall apply at all times to a Participant who owns (taking into account the
attribution rules under Section 318(a) of the Code, without regard to the exception for employee
plan trusts in Section 318(a)(2)(B)(i) more than 25 percent of any class of stock of a corporation
which issued the Company Stock acquired by the Plan, or another corporation within the same
controlled group, as defined in Section 409(l)(4) of the Code (any such class of stock hereafter
called a “Related Class”). For this purpose, a Participant who owns more than 25 percent of any
Related Class at any time within the one year preceding the Plan’s purchase of the
Company Stock
shall be subject to the restriction as to all allocations of the

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Company Stock, but any other
Participant shall be subject to the restriction only as to allocations which occur at a time when
he owns more than 25 percent of any Related Class.

     Further, this restriction shall apply to the selling shareholder claiming the benefit of
Section 1042 and any other Participant who is related to such a shareholder within the meaning of
Section 267(b) of the Code, during the period beginning on the date of sale and ending on the later
of (1) the date that is ten years after the date of sale, or (2) the date of the Plan allocation
attributable to the final payment of acquisition indebtedness incurred in connection with the sale.

     This restriction shall not apply to any Participant who is a lineal descendant of a selling
shareholder if the aggregate amounts allocated under the Plan for the benefit of all such
descendants do not exceed five percent of the Company Stock acquired from the shareholder.

     5.4 Erroneous Allocations. No Participant shall be entitled to any annual additions
or other allocations to his Account in excess of those permitted under Section 5. If it is
determined at any time that the administrator and/or Trustee have erred in accepting and allocating
any contributions or forfeitures under this Plan, or in allocating investment adjustments, or in
excluding or including any person as a Participant, then the administrator, in a uniform and
nondiscriminatory manner, shall determine the manner in which such error shall be corrected, after
taking into consideration Sections 3.6 and 3.7, if applicable, and shall promptly advise the
Trustee in writing of such error and of the method for correcting such error. The Accounts of any
or all Participants may be revised, if necessary, in order to correct such error.

     5.5 Dividend Recharacterization. If any dividend paid on Stock shall be
recharacterized to be an Employer contribution to the Plan for any limitation year, and if this
recharacterization would cause an allocation to the Participant’s Accounts to exceed the limits
allowed under Section 415 of the Code for the
limitation year, then the Participant’s Accounts shall be retroactively reduced by an amount
equal to the sum of (i) the excess of the amount credited to the Participant’s Accounts over the
maximum amount that was properly allocable to his or her Accounts (the “excess amount”)
plus (ii) all earnings of the Trust Fund credited to the Participant’s Accounts that are
attributable to the excess amount. This provision shall be administered in such a way as to assure
that no Participant receives any benefit from an allocation of any excess amount to his or her
Accounts. Any excess amount and any earnings attributable to the excess amount shall be placed in
the suspense account referred to in Section 5.1. It shall be conclusively presumed that any error
with respect to the characterization of any dividend payment by the Company was a mistake of fact
with respect to which the Trustee or the Administrator shall be entitled to make corrective
adjustments to Participant Accounts.

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     Section 6. Trust Fund and Its Investment.

     6.1 Creation of Trust Fund. All amounts received under the Plan from Employers and
investments shall be held as the Trust Fund pursuant to the terms of this Plan and of the Trust
Agreement between the Company and the Trustee. The benefits described in this Plan shall be
payable only from the assets of the Trust Fund, and none of the Company, any other Employer, its
board of directors or trustees, its stockholders, its officers, its employees, the Committee, and
the Trustee shall be liable for payment of any benefit under this Plan except from the Trust Fund.

     6.2 Stock Fund and Investment Fund. The Trust Fund held by the Trustee shall be
divided into the Stock Fund, consisting entirely of Company Stock, and the Investment Fund,
consisting of all assets of the Trust other than Company Stock. The Trustee shall have no
investment responsibility for the Stock Fund, but shall accept any Employer contributions made in
the form of Company Stock, and shall acquire, sell, exchange, distribute, and otherwise deal with
and dispose of Company Stock in accordance with the instructions of the Committee. The Trustee
shall have full responsibility for the investment of the Investment Fund, except to the extent such
responsibility may be delegated from time to time to one or more investment managers pursuant to
Section 2.3 of the Trust Agreement, or to the extent the Committee directs the Trustee to purchase
Company Stock with the assets in the Investment Fund.

     6.3 Acquisition of Company Stock. From time to time the Committee may, in its sole
discretion, direct the Trustee to acquire Company Stock from the issuing Employer or from
shareholders, including shareholders who are or have been Employees, Participants, or fiduciaries
with respect to the Plan. The Trustee shall pay for such Company Stock no more than its Fair
Market Value, which shall be determined conclusively by the Committee pursuant to Section 12.3. The
Committee may direct the Trustee to finance the acquisition of Company Stock by incurring or
assuming indebtedness to the seller or another party which indebtedness shall be called a “Stock
Obligation.” The term “Stock Obligation” shall refer to a loan made to the Plan by a
disqualified person within the meaning of Section 4975(e)(2) of the Code, or a loan to the Plan
which is guaranteed by a disqualified person. A Stock Obligation includes a direct loan of cash, a
purchase-money transaction, and an assumption of an obligation of a tax-qualified employee stock
ownership plan under Section 4975(e)(7) of the Code (“ESOP”). For these purposes, the term
“guarantee” shall include an unsecured guarantee and the use of assets of a disqualified person as
collateral for a loan, even though the use of assets may not be a guarantee under applicable state
law. An amendment of a Stock Obligation in order to qualify as an “exempt loan” is not a
refinancing of the Stock Obligation or the making of another Stock Obligation. The term “exempt
loan” refers to a loan that satisfies the provisions of this paragraph. A “non-exempt loan” fails
to satisfy this paragraph. Any Stock Obligation shall be subject to the following conditions and
limitations:

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          6.3-1 A Stock Obligation shall be for a specific term, shall not be payable on demand except
in the event of default, and shall bear a reasonable rate of interest.

          6.3-2 A Stock Obligation may, but need not, be secured by a collateral pledge of either the
Company Stock acquired in exchange for the Stock Obligation, or the Company Stock previously
pledged in connection with a prior Stock Obligation which is being repaid with the proceeds of the
current Stock Obligation. No other assets of the Plan and Trust may be used as collateral for a
Stock Obligation, and no creditor under a Stock Obligation shall have any right or recourse to any
Plan and Trust assets other than Company Stock remaining subject to a collateral pledge.

          6.3-3 Any pledge of Company Stock to secure a Stock Obligation must provide for the release
of pledged Company Stock in connection with payments on the Stock Obligations in the ratio
prescribed in Section 4.2.

          6.3-4 Repayments of principal and interest on any Stock Obligation shall be made by the
Trustee only from Employer cash contributions designated for such payments, from earnings on such
contributions, and from cash dividends received on Company Stock, in the last case, however,
subject to the further requirements of Section 7.2.

          6.3-5 In the event of default of a Stock Obligation, the value of Plan assets transferred in
satisfaction of the Stock Obligation must not exceed the amount of the default. If the lender is a
disqualified person within the meaning of Section 4975 of the Code, a Stock Obligation must provide
for a transfer of Plan assets upon default only upon and to the extent of the failure of the Plan
to meet the payment schedule of said Stock Obligation. For purposes of this paragraph, the making
of a guarantee does not make a person a lender.

     6.4 Participants’ Option to Diversify. The Committee shall provide for a procedure
under which each Participant may, during the qualified election period, elect to “diversify” a
portion of the Company Stock allocated to his Account, as provided in Section 401(a)(28)(B) of the
Code. An election to
diversify must be made on the prescribed form and filed with the Committee within the period
specified herein. For each of the first five (5) Plan years in the qualified election period, the
Participant may elect to diversify an amount which does not exceed 25% of the number of shares
allocated to his Account since the inception of the Plan, less all shares with respect to which an
election under this Section has already been made. For the last year of the qualified election
period, the Participant may elect to have up to 50 percent of the value of his Account committed to
other investments, less all shares with respect to which an election under this Section has already
been made. The term “qualified election period” shall mean the six (6) Plan Year period beginning
with the first Plan Year in which a Participant has both attained age 55 and completed 10 years of
participation in the Plan. A Participant’s election to diversify his Account may be made within
each year of the qualified election period and shall continue for the 90-day period immediately
following the last day of each year in the qualified election period. Once a Participant makes
such election, the Plan must complete diversification in accordance with

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such election within 90
days after the end of the period during which the election could be made for the Plan Year. In the
discretion of the Committee, the Plan may satisfy the diversification requirement by any of the
following methods:

          6.4-1 The Plan may distribute all or part of the amount subject to the diversification
election.

          6.4-2 The Plan may offer the Participant at least three other distinct investment options, if
available under the Plan. The other investment options shall satisfy the requirements of
Regulations under Section 404(c) of the Employee Retirement Income Security Act of 1974, as amended
(“ERISA”).

          6.4-3 The Plan may transfer the portion of the Participant’s Account subject to the
diversification election to another qualified defined contribution plan of the Employer that offers
at least three investment options satisfying the requirements of the Regulations under Section
404(c) of ERISA.

Section 7. Voting Rights and Dividends on Company Stock.

     7.1 Voting and Tendering of Company Stock.

          7.1-1. The Trustee generally shall vote all shares of Company Stock held under the Plan in
accordance with the written instructions of the Committee. However, if any Employer has
registration-type class of securities within the meaning of Section 409(e)(4) of the Code, or if a
matter submitted to the holders of the Company Stock involves a merger, consolidation,
recapitalization, reclassification, liquidation, dissolution, or sale of substantially all assets
of an entity, then (i) the shares of Company Stock which have been allocated to Participants’
Accounts shall be voted by the Trustee in accordance with the
Participants’ written instructions, and (ii) the Trustee shall vote any unallocated Company
Stock, allocated Company Stock for which it has received no voting instructions, and Company Stock
for which Participants vote to “abstain,” in the same proportions as it votes the allocated Company
Stock for which it has received instructions from Participants; provided, however, that if an
exempt loan, as defined in Section 4975(d) of the Code, is outstanding and the Plan is in default
on such exempt loan, as default is defined in the loan documents, then to the extent that such loan
documents require the lender to exercise voting rights with respect to the unallocated shares, the
loan documents will prevail. In the event no shares of Company Stock have been allocated to
Participants’ Accounts at the time Company Stock is to be voted and any exempt loan which may be
outstanding is not in default, each Participant shall be deemed to have one share of Company Stock
allocated to his or her Account for the sole purpose of providing the Trustee with voting
instructions.

     Notwithstanding any provision hereunder to the contrary, all unallocated shares of Company
Stock must be voted by the Trustee in a manner determined by the Trustee to be for the exclusive
benefit of the Participants and Beneficiaries. Whenever such voting rights

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are to be exercised,
the Employers shall provide the Trustee, in a timely manner, with the same notices and other
materials as are provided to other holders of the Company Stock, which the Trustee shall distribute
to the Participants. The Participants shall be provided with adequate opportunity to deliver their
instructions to the Trustee regarding the voting of Company Stock allocated to their Accounts. The
instructions of the Participants’ with respect to the voting of allocated shares hereunder shall be
confidential.

          7.1-2 In the event of a tender offer, Company Stock shall be tendered by the Trustee in the
same manner as set forth above with respect to the voting of Company Stock. Notwithstanding any
provision hereunder to the contrary, Company Stock must be tendered by the Trustee in a manner
determined by the Trustee to be for the exclusive benefit of the Participants and Beneficiaries.

     7.2 Application of Dividends.

          7.2-1 Stock Dividends. Dividends on Company Stock which are received by the Trustee
in the form of additional Company Stock shall be retained in the Stock Fund, and shall be allocated
among the Participants’ Accounts and the Unallocated Stock Fund in accordance with their holdings
of the Company Stock on which the dividends are paid.

          7.2-2 Cash Dividends. The treatment of dividends paid in cash shall be determined
after consideration to whether the cash dividends are paid on Company Stock held in Participants’
Accounts or the Unallocated Stock Fund.

               (i) On Company Stock in Participants’
Accounts.

               (A) Employer Exercises Discretion. Dividends on Company Stock credited to
Participants’ Accounts which are received by the Trustee in the form of cash
shall, at the direction of the Employer paying the dividends, either (i) be credited to the
Accounts in accordance with Section 8.4(c) and invested as part of the Investment Fund, (ii) be
distributed immediately to the Participants in proportion with the Participants’ Stock Fund Account
balance, (iii) be distributed to the Participants within 90 days of the close of the Plan Year in
which paid in proportion with the Participants’ Stock Fund Account balance or (iv) be used to make
payments on the Stock Obligation. If dividends on Company Stock allocated to a Participant’s
Account are used to repay the Stock Obligation, Company Stock with a Fair Market Value equal to the
dividends so used must be allocated to such Participant’s Account in lieu of the dividends.

               (B) Participant Exercises Discretion over Dividend. In addition, in the sole
discretion of the Employer, the Employer may grant Participants the right to elect: (I) to have
cash dividends paid on shares of Company Stock credited to such Participants’ Stock Fund Accounts
distributed to the Participant, or (II) to leave the cash dividends allocated to the Participant’s
Account in the Plan, to be credited to the Stock Fund Account and invested in shares of Company
Stock. Dividends on which such election may be made will be fully

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vested in the Participant (even
if not otherwise vested, absent the ability to make such election). Accordingly, the Employer may
choose to offer this election only to Participants who are fully vested in their Account. In the
event the Employer elects to give Participants the right to determine the treatment of such
dividends, the Participant’s election shall be made by filing with the Committee the appropriate
written direction as provided by the Committee at such time and in accordance with such procedures
and limitations which the Committee may from time to time establish; provided, however, that the
procedures established by the Committee shall provide a reasonable opportunity to change the
election at least annually, may establish a default election if a Participant fails to make an
affirmative election within the time established for making elections, may provide that the
election is applicable for the Plan Year and cannot be revoked with respect to such Plan Year,
shall otherwise be implemented in a manner such that the dividends paid or reinvested will
constitute “applicable dividends” which may be deducted under Code Section 404(k), and are in
accordance with applicable guidance issued or to be issued by the Secretary of the Treasury. If the
Employer elects to give Participants the right to exercise the discretion in this Paragraph
7.2-2(i)(B), the ability to make such election shall be available to the Participant with respect
to dividends paid for the entire Plan Year.

               (ii) On Company Stock in the Unallocated Stock Fund. Dividends received on shares of
Company Stock held in the Unallocated Stock Fund shall be applied to the repayment of principal and
interest then due on the Stock Obligation used to acquire such shares. If the amount of dividends
exceeds the amount needed to repay such principal and interest (including any prepayments of
principal and interest deemed advisable by the Employer), then in the sole discretion of the
Committee, the excess shall: (A) be allocated to Active Participants on a non-discriminatory
basis, consistent with Section 7.2-2(i) above, and in the discretion of the Committee, treated as a
dividend described in such Section, or (B) be deemed to be general earnings of the Trust Fund and
used for paying appropriate Plan or
Trust related expenditures for the Plan Year, including make-up contributions to inadvertently
omitted Eligible Employees under Section 3.6. Notwithstanding the foregoing, dividends paid on a
share of Company Stock may not be used to make payments on a particular Stock Obligation unless the
share was acquired with the proceeds of such loan or a refinancing of such loan.

Section 8. Adjustments to Accounts.

     8.1 ESOP Allocations. Amounts available for allocation for a particular Plan Year
will be divided into two categories. The first category relates to shares of Company Stock
released from the Unallocated Stock Fund attributable to using cash dividends to make Stock
Obligation payments. The second category relates to contributions made by the Employer, shares of
Company Stock released from the Unallocated Stock Fund on the basis of Employer contributions (or
on the basis of the complete repayment of the Stock Obligation through the sale or other
disposition of Company Stock in the Unallocated Stock Fund) and amounts forfeited from Stock Fund
Accounts pursuant to Section 9.5.

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          8.1-1. Shares of Company Stock attributable to the first category will be allocated to the
Stock Fund Accounts of eligible Participants as follows:

               (i) first, if dividends paid on shares of Company Stock held in Participants’ Stock Fund
Accounts are used to make payments on an Stock Obligation, there shall be allocated to each such
account a number of shares of Company Stock released from the Unallocated Stock Fund with a Fair
Market Value (determined as of the Valuation Date coincident with or immediately preceding the loan
payment date) that at least equals the amount of dividends so used,

               (ii) second, if necessary, any remaining shares of Company Stock shall be applied to reinstate
amounts forfeited from Stock Fund Accounts of former employees who are entitled to a reinstatement
under Section 9.5, and

               (iii) finally, any remaining shares of Company Stock shall be allocated as a general
investment gain in proportion to the number of shares held in the Active Participants’ Stock Fund
Accounts as of the last Valuation Date of the Plan Year for which they are allocated in the same
manner as described in Section 7.2-2(i).

          8.1-2. Shares of Company Stock or cash attributable to the second category (i.e., Employer
contributions, Company Stock released from the Unallocated Stock Fund on the basis of Employer
contributions, and amounts forfeited) will be allocated to the Stock Fund Accounts or Investment
Fund Accounts, as the case may be, pro rata, in proportion to the Compensation of each Active
Participant that was earned by such Participant during the period of the Plan Year in which such
person participated in the Plan compared to total Compensation for all Active Participants.

          8.1-3. Shares of Company Stock or cash attributable to contributions made under Section 4.1-2
shall be allocated specifically to the Participants on whose behalf such contributions were made.

          8.1-4 If, in any Plan Year during which an outstanding Stock Obligation exists, the Employer
directs the Trustee to sell or otherwise dispose of a number of shares of Company Stock in the
Unallocated Stock Fund sufficient to repay, in its entirety, the Stock Obligations, and following
such repayment, there remains Company Stock or other assets in the Unallocated Stock Fund, such
Company Stock or other assets shall be allocated as of the last day of the Plan Year in which the
repayment occurred as earnings of the Plan to Active Participants, in proportion to the number of
shares held in Active Participants’ Stock Fund Accounts.

     8.2 Charges to Accounts. When a Valuation Date occurs, any distributions made to or
on behalf of any Participant or Beneficiary since the last preceding Valuation Date shall be
charged to the proper Accounts maintained for that Participant or Beneficiary.

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     8.3 Stock Fund Account. Subject to the provisions of Sections 5 and 8.1, as of the
last day of each Plan Year, the Trustee shall credit to each Participant’s Stock Fund Account: (a)
the Participant’s allocable share of Company Stock purchased by the Trustee or contributed by the
Employer to the Trust Fund for that year; (b) the Participant’s allocable share of the Company
Stock that is released from the Unallocated Stock Fund for that year; (c) the Participant’s
allocable share of any forfeitures of Company Stock arising under the Plan during that year; and
(d) any stock dividends declared and paid during that year on Company Stock credited to the
Participant’s Stock Fund Account.

     8.4 Investment Fund Account. Subject to the provisions of Sections 5 and 8.1 as of
the last day of each Plan Year, the Trustee shall credit to each Participant’s Investment Fund
Account: (a) the Participant’s allocable share of any contribution for that year made by the
Employer in cash or in property other than Company Stock that is not used by the Trustee to
purchase Company Stock or to make payments due under a Stock Obligation; (b) the Participant’s
allocable share of any forfeitures from the Investment Fund Accounts of other Participants arising
under the Plan during that year; (c) any cash dividends paid during that year on Company Stock
credited to the Participant’s Stock Fund Account, other than dividends which are paid directly to
the Participant and other than dividends which are used to repay Stock Obligation; and (d) the
share of the net income or loss of the Trust Fund properly allocable to that Participant’s
Investment Fund Account, as provided in Section 8.5.

     8.5 Adjustment to Value of Trust Fund. As of the last day of each Plan Year, the
Trustee shall determine: (i) the net
worth of that portion of the Trust Fund which consists of properties other than Company Stock
(the “Investment Fund”); and (ii) the increase or decrease in the net worth of the Investment Fund
since the last day of the preceding Plan Year. The net worth of the Investment Fund shall be the
fair market value of all properties held by the Trustee under the Trust Agreement other than
Company Stock, net of liabilities other than liabilities to Participants and their beneficiaries.
The Trustee shall allocate to the Investment Fund Account of each Participant that percentage of
the increase or decrease in the net worth of the Investment Fund equal to the ratio which the
balances credited to the Participant’s Investment Fund Account bear to the total amount credited to
all Participants’ Investments Fund Accounts. This allocation shall be made after application of
Section 7.2, but before application of Sections 8.1, 8.4 and 5.1.

     8.6 Participant Statements. Each Plan Year, the Trustee will provide each Participant
with a statement of his or her Account balances as of the last day of the Plan Year.

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Section 9. Vesting of Participants’ Interests.

     9.1 Vesting in Accounts. A Participant’s vested interest in his Account shall be
based on his Vesting Years in accordance with the following table, subject to the balance of this
Section 9:

	 	 	 	 	 
	Vesting	 	Percentage of
	Years	 	Interest Vested
	Fewer than 1
	 	 	0	%
	1 year
	 	 	20	%
	2 years
	 	 	40	%
	3 years
	 	 	60	%
	4 years
	 	 	80	%
	5 years
	 	 	100	%

     9.2 Computation of Vesting Years. For purposes of this Plan, a “Vesting Year” means
generally a Plan Year in which an Eligible Employee has performed at least 1,000 Hours of Service,
beginning with the first Plan Year in which the Eligible Employee has completed an Hour of Service
with the Employer, and including Service with other Employers as provided in the definition of
“Service.” Notwithstanding the above, an Eligible Employee shall receive one (1) Vesting Year of
credit for every two (2) Years of Service with the Bank’s mutual predecessor prior to the adoption
of the Plan. However, a Participant’s Vesting Years shall be computed subject to the following
conditions and qualifications:

          9.2-1 To the extent applicable, a Participant’s vested interest in his Account accumulated
before five (5) consecutive one year Breaks in Service shall be determined without regard to any
Service after such five consecutive Breaks in Service. Further, if a Participant has five (5)
consecutive one year Breaks in Service before his interest in his Account has become vested to some
extent, pre-Break in Service years of Service shall not be required to be taken into account for
purposes of determining his post-Break in Service vested percentage.

          9.2-2 To the extent applicable, in the case of a Participant who has five (5) or more
consecutive one year Breaks in Service, the Participant’s pre-Break in Service will count in
vesting of the Employer-derived post-Break in Service accrued benefit only if either:

          (i) such Participant has any nonforfeitable interest in the accrued benefit attributable to
Employer contributions at the time of separation from Service, or

          (ii) upon returning to Service the number of consecutive one year Breaks in Service is less
than the number of years of Service.

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          9.2-3 Notwithstanding any provision of the Plan to the contrary, calculation of service for
determining Vesting Years with respect to qualified military service will be provided in accordance
with Section 414(u) of the Code.

          9.2-4 To the extent applicable, if any amendment changes the vesting schedule, including an
automatic change to or from a top-heavy vesting schedule, any Participant with three (3) or more
Vesting Years may, by filing a written request with the Employer, elect to have his vested
percentage computed under the vesting schedule in effect prior to the amendment. The election
period must begin not later than the later of sixty (60) days after the amendment is adopted, the
amendment becomes effective, or the Participant is issued written notice of the amendment by the
Employer or the Committee.

     9.3 Full Vesting Upon Certain Events.

          9.3-1 Notwithstanding Section 9.1, a Participant’s interest in his Account shall fully vest on
the Participant’s Normal Retirement Date. The Participant’s interest shall also fully vest in the
event that his Service is terminated by Early Retirement, Disability or by death.

          9.3-2 The Participant’s interest in his Account shall also fully vest in the event of a
“Change in Control” of the Bank, or the Company. For these purposes, “Change in Control” shall
mean an event of a nature that (i) would be required to be reported in response to Item 5.01 of the
Current Report on Form 8 K, as in effect on the date hereof, pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934 (the “Exchange Act”); or (ii) results in a Change in Control of the
Bank or the Company within the meaning of the Home
Owners Loan Act, as amended, and applicable rules and regulations promulgated thereunder as in
effect at the time of the Change in Control (collectively, the “HOLA”); or (iii) without limitation
such a Change in Control shall be deemed to have occurred at such time as (a) any “Person” (as the
term is used in Sections 13(d) and 14(d) of the Exchange Act) is or becomes the “beneficial owner”
(as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the
Bank or the Company representing 25% or more of the Bank’s or the Company’s outstanding securities
except for any securities purchased by the Bank’s employee stock ownership plan or trust; or (b)
individuals who constitute the Board on the date hereof (the “Incumbent Board”) cease for any
reason to constitute at least a majority thereof, provided, however, that this sub-section (b)
shall not apply if the Incumbent Board is replaced by the appointment by a Federal banking agency
of a conservator or receiver for the Bank and, provided further that any person becoming a director
subsequent to the date hereof whose election was approved by a vote of at least two-thirds of the
directors comprising the Incumbent Board or whose nomination for election by the Company’s
stockholders was approved by the same Nominating Committee serving under an Incumbent Board, shall
be, for purposes of this clause (b), considered as though he were a member of the Incumbent Board;
or (c) a reorganization, merger, consolidation, sale of all or substantially all the assets of the
Bank or the Company, or similar transaction in which the Bank or Company is not the

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surviving
institution occurs; or (d) a proxy statement soliciting proxies from stockholders of the Company,
by someone other than the current management of the Company, seeking stockholder approval of a plan
of reorganization, merger or consolidation of the Company or similar transaction with one or more
corporations as a result of which the outstanding shares of the class of securities then subject to
the Plan are to be exchanged for or converted into cash or property or securities not issued by the
Company; or (e) a tender offer is made for 25% or more of the voting securities of the Company and
the shareholders owning beneficially or of record 25% or more of the outstanding securities of the
Company have tendered or offered to sell their shares pursuant to such tender offer and such
tendered shares have been accepted by the tender offeror. Notwithstanding anything herein to the
contrary, the reorganization of the Company by way of a second step conversion shall not be
considered a “Change in Control.”

          9.3-3 Upon a Change in Control described in 9.3-2, the Plan shall be terminated and the Plan
Administrator shall direct the Trustee to sell a sufficient amount of Company Stock from the
Unallocated Stock Fund to repay any outstanding Stock Obligation in full. The proceeds of such
sale shall be used to repay such Stock Obligation. After repayment of the Stock Obligation, all
remaining shares in the Unallocated Stock Fund (or the proceeds thereof, if applicable) shall be
deemed to be earnings and shall be allocated in accordance with the requirements of Section 8.1-4.

     9.4 Full Vesting Upon Plan Termination. Notwithstanding Section 9.1, a Participant’s
interest in his Account shall fully vest upon termination of this Plan or upon the permanent and
complete discontinuance
of contributions by his Employer. In the event of a partial termination, the interest of each
affected Participant shall fully vest with respect to that part of the Plan which is terminated.

     9.5 Forfeiture, Repayment, and Restoral. If a Participant’s Service terminates before
his interest in his Account is fully vested, that portion which has not vested shall be forfeited.
If a Participant’s Service terminates prior to having any portion of his Account become vested,
such Participant shall be deemed to have received a distribution of his vested interest immediately
upon his termination of Service. In all other cases, a forfeiture will occur on the earlier of (i)
the date on which the Participant receives a distribution of the Participant’s vested Account
balance, or (ii) the end of the first Plan Year in which the Participant incurs a Break in Service.

     If a Participant who has suffered a forfeiture of the nonvested portion of his Account returns
to Service before he has five (5) consecutive one-year Break in Service, the nonvested portion
shall be restored, provided that, if the Participant had received a distribution of his vested
Account balance, the amount distributed shall be repaid prior to such restoral. The Participant
may repay such amount at any time within five years after he has returned to Service. The amount
repaid shall be credited to his Account at the time it is repaid and an additional amount, equal to
that portion of his Account which was previously

-27-

 

forfeited, shall be restored to his Account at the
same time from other Employees’ forfeitures and, if such forfeitures are insufficient, then from
amounts allocated in accordance with Section 8.1-1(ii), and if insufficient, then from a special
contribution by his Employer for that year. Upon repayment by the Participant of the amounts that
were distributed from his or her Accounts: (i) there shall be restored to the Participant’s Stock
Fund Account that number of shares that have a value equal to the value of the shares that
previously were forfeited from his or her Stock Fund Account (determined as of the date of
forfeiture); and (ii) there shall have been restored to the Participant’s Investment Fund Account
the amount forfeited from that Account. If the Participant did not receive a distribution of his
vested Account balance, any forfeiture restored shall include earnings that would have been
credited to the Account but for the forfeiture. A Participant who was deemed to have received a
distribution of his vested interest in the Plan shall have his Account restored as of the first day
on which he performs an Hour of Service after his return. Section 5.1, which imposes limitations
on allocations to Participants and limitations on contributions by the Company, shall not apply to
a reinstatement under this Section.

     9.6 Accounting for Forfeitures. If a portion of a Participant’s Account is forfeited,
Company Stock allocated to said Participant’s Account shall be forfeited only after other assets
are forfeited. If interests in more than one class of Company Stock have been allocated to a
Participant’s Account, the Participant must be treated as forfeiting the same proportion of each
class of Company Stock. A forfeiture shall be charged to the Participant’s Account as of the first
day of the first Valuation Period in which the forfeiture becomes certain pursuant to Section 9.5.
Except as otherwise provided in that Section or in Section 3.6, a forfeiture shall be added to the
contributions of
the terminated Participant’s Employer which are to be credited to other Participants pursuant
to Section 4.1 as of the last day of the Plan Year in which the forfeiture becomes certain.

     9.7 Vesting and Nonforfeitability. A Participant’s interest in his Account which has
become vested shall be nonforfeitable for any reason.

Section 10. Payment of Benefits.

     10.1 Benefits for Participants. For a Participant whose Service ends for any reason,
distribution will be made to or for the benefit of the Participant or, in the case of the
Participant’s death, his Beneficiary, by payment in a lump sum, in accordance with Section 10.2.
Notwithstanding any provision to the contrary, if the value of a Participant’s vested Account
balance at the time of any distribution does not exceed $1,000, then such Participant’s vested
Account shall be distributed in a lump sum within 60 days after the end of the Plan Year in which
employment terminates without the Participant’s consent. If the value of a Participant’s vested
Account balance is in excess of $5,000, then his benefits shall not be paid prior to his Normal
Retirement Date unless he elects an early payment date in a written election filed with the
Committee. A Participant may modify such an election at any time, provided any new benefit payment
date is at least 30 days after a modified election is

-28-

 

delivered to the Committee. Failure of a
Participant to consent to a distribution prior his Normal Retirement Date shall be deemed to be an
election to defer commencement of payment of any benefit under this section. Notwithstanding the
foregoing, unless a Participant elects to receive a distribution, the Plan administrator shall
transfer accounts in excess of $1,000 but not in excess of $5,000 in a direct rollover to an
individual retirement plan designated by the Plan administrator in accordance with Code Section
401(a)(31)(B) and the regulations promulgated thereunder. All distributions of $5,000 or less that
are made pursuant to this Section without the Participant’s consent shall be made in cash.

     10.2 Time for Distribution.

          10.2-1 If the Participant and, if applicable, with the consent of the Participant’s spouse,
elects the distribution of the Participant’s Account balance in the Plan, distribution shall
commence as soon as practicable following his termination of Service, but no later than one year
after the close of the Plan Year in which the Participant separates from service following the
Participant’s Normal Retirement Date under the Plan, Disability, or death.

          10.2-2 Unless the Participant elects otherwise, the distribution of the balance of a
Participant’s Account shall commence not later than the 60th day after the latest of the close of
the Plan Year in which -

          (i) the Participant attains the age of 65;

          (ii) occurs the tenth anniversary of the year in which the Participant commenced participation
in the Plan; or

          (iii) the Participant terminates Service with the Employer.

          10.2-3 Notwithstanding anything to the contrary, (1) with respect to a 5-percent owner (as
defined in Code Section 416), distribution of a Participant’s Account shall commence (whether or
not he remains in the employ of the Employer) not later than the April 1 of the calendar year next
following the calendar year in which the Participant attains age 701/2, and (2) with respect to all
other Participants, payment of a Participant’s benefit will commence not later than April 1 of the
calendar year following the calendar year in which the Participant attains age 701/2, or, if later,
the year in which the Participant retires. A Participant’s benefit from that portion of his
Account committed to the Investment Fund shall be calculated on the basis of the most recent
Valuation Date before the date of payment.

          10.2-4 Distribution of a Participant’s Account balance after the Participant’s death shall
comply with the following requirements:

          (i) If a Participant dies before distributions have commenced, distribution of his Account to
his Beneficiary shall commence not later than one year after the end of the Plan Year in which the
Participant died; however, if the Participant’s Beneficiary is his

-29-

 

surviving Spouse, distributions
may commence on the date on which the Participant would have attained age 701/2. In either case,
distributions shall be completed within five years after they commence.

          (ii) If the Participant dies after distribution has commenced pursuant to Section 10.1 but
before his entire interest in the Plan has been distributed to him, then the remaining portion of
that interest shall, in accordance with Section 401(a)(9) of the Code, be distributed at least as
rapidly as under the method of distribution being used under Section 10.1 at the date of his death.

          (iii) If a married Participant dies before benefit payments begin, then the Committee shall
cause the balance in his Account to be paid to his Beneficiary, provided, however, that no election
by a married Participant of a different Beneficiary than his surviving Spouse shall be valid unless
the election is accompanied by the Spouse’s written consent, which (i) must acknowledge the effect
of the election, (ii) must explicitly provide either that the designated Beneficiary may not
subsequently be changed by the Participant without the Spouse’s further consent, or that it may be
changed without such consent, and (iii) must be witnessed by the Committee, its representative, or
a notary public. This requirement shall not apply if the Participant establishes to the Committee’s
satisfaction that the Spouse may not be located.

          10.2-5 All distributions under this section shall be determined and made in accordance with
Code Section 401(a)(9) and final Treasury Regulations Sections 1.401(a)(9)-1 through 1.401(a)(9)-9, including the minimum distribution incidental benefit
requirements of Code Section 401(a)(9)(G). These provisions override any distribution options in
the Plan inconsistent with Code Section 401(a)(9).

     10.3 Marital Status. The Committee, the Plan, the Trustee, and the Employers shall be
fully protected and discharged from any liability to the extent of any benefit payments made as a
result of the Committee’s good faith and reasonable reliance upon information obtained from a
Participant and his Employer as to his marital status.

     10.4 Delay in Benefit Determination. If the Committee is unable to determine the
benefits payable to a Participant or Beneficiary on or before the latest date prescribed for
payment pursuant to Section 10.1 or 10.2, the benefits shall in any event be paid within 60 days
after they can first be determined, with whatever makeup payments may be appropriate in view of the
delay.

     10.5 Accounting for Benefit Payments. Any benefit payment shall be charged to the
Participant’s Account as of the first day of the Valuation Period in which the payment is made.

     10.6 Options to Receive Company Stock. Unless ownership of virtually all Company
Stock is restricted to active Employees and qualified retirement plans for the

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benefit of Employees
pursuant to the certificates of incorporation or by-laws of the Employers issuing Company Stock, a
terminated Participant or the Beneficiary of a deceased Participant may instruct the Committee to
distribute the Participant’s entire vested interest in his Account in the form of Company Stock.
In that event, the Committee shall apply the Participant’s vested interest in the Investment Fund
to purchase sufficient Company Stock from the Stock Fund or from any owner of Company Stock to make
the required distribution. In all other cases, other than as specifically set forth in Section
10.1, the Participant’s vested interest in the Stock Fund shall be distributed in shares of Company
Stock, and his vested interest in the Investment Fund shall be distributed in cash.

     Except in the case of Company Stock that is treated on an established securities market, any
Participant who receives Company Stock pursuant to Section 10.1, and any person who has received
Company Stock from the Plan or from such a Participant by reason of the Participant’s death or
incompetence, by reason of divorce or separation from the Participant, or by reason of a rollover
contribution described in Section 402(a)(5) of the Code, shall have the right to require the
Employer which issued the Company Stock to purchase the Company Stock for its current Fair Market
Value (hereinafter referred to as the “put right”). The put right shall be exercisable by written
notice to the Committee during the first 60 days after the Company Stock is distributed by the
Plan, and, if not exercised in that period, during the first 60 days in the following Plan Year
after the Committee has
communicated to the Participant its determination as to the Company Stock’s current Fair
Market Value. However, the put right shall not apply to the extent that the Company Stock, at the
time the put right would otherwise be exercisable, may be sold on an established market in
accordance with federal and state securities laws and regulations. Similarly, the put option shall
not apply with respect to the portion of a Participant’s Account which the Employee elected to have
reinvested under Code Section 401(a)(28)(B). If the put right is exercised, the Trustee may, if so
directed by the Committee in its sole discretion, assume the Employer’s rights and obligations with
respect to purchasing the Company Stock. Notwithstanding anything herein to the contrary, in the
case of a plan established by a bank (as defined in Code Section 581), the put option shall not
apply if prohibited by a federal or state law and Participants are entitled to elect their benefits
be distributed in cash.

     The Employer or the Trustee, as the case may be, may elect to pay for the Company Stock in
equal periodic installments, not less frequently than annually, over a period beginning not later
than 30 days after the exercise of the put right and not exceeding five years, with adequate
security and interest at a reasonable rate on the unpaid balance, all such terms to be set forth in
a promissory note delivered to the seller with normal terms as to acceleration upon any uncured
default.

     Nothing contained herein shall be deemed to obligate any Employer to register any Company
Stock under any federal or state securities law or to create or maintain a public market to
facilitate the transfer or disposition of any Company Stock. The put right described herein may
only be exercised by a person described in the second preceding

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paragraph, and may not be
transferred with any Company Stock to any other person. As to all Company Stock purchased by the
Plan in exchange for any Stock Obligation, the put right shall be nonterminable. The put right for
Company Stock acquired through a Stock Obligation shall continue with respect to such Company Stock
after the Stock Obligation is repaid or the Plan ceases to be an employee stock ownership plan.

     10.7 Restrictions on Disposition of Company Stock. Except in the case of Company
Stock which is traded on an established securities market, a Participant who receives Company Stock
pursuant to Section 10.1, and any person who has received Company Stock from the Plan or from such
a Participant by reason of the Participant’s death or incompetence, by reason of divorce or
separation from the Participant, or by reason of a rollover contribution described in Section
402(a)(5) of the Code, shall, prior to any sale or other transfer of the Company Stock to any other
person, first offer the Company Stock to the issuing Employer and to the Plan at the greater of (i)
its current Fair Market Value, or (ii) the purchase price offered in good faith by an independent
third party purchaser. This restriction shall apply to any transfer, whether voluntary,
involuntary, or by operation of law, and whether for consideration or gratuitous. Either the
Employer or the Trustee may accept the offer within 14 days after it is delivered. Any Company
Stock distributed by the Plan shall bear a conspicuous legend describing the
right of first refusal under this Section 10.7, as well as any other restrictions upon the
transfer of the Company Stock imposed by federal and state securities laws and regulations.

     10.8 Continuing Loan Provisions; Creations of Protections and Rights. Except as
otherwise provided in Sections 10.6 and 10.7 and this Section, no shares of Company Stock held or
distributed by the Trustee may be subject to a put, call or other option, or buy-sell arrangement.
The provisions of this Section shall continue to be applicable to such Company Stock even if the
Plan ceases to be an employee stock ownership plan under Section 4975(e)(7) of the Code.

     10.9 Direct Rollover of Eligible Distribution. A Participant or distributee may
elect, at the time and in the manner prescribed by the Trustee or the Committee, to have any
portion of an eligible rollover distribution paid directly to an eligible retirement plan specified
by the Participant or distributee in a direct rollover.

          10.9-1 An “eligible rollover” is any distribution that does not include: any distribution that
is one of a series of substantially equal periodic payments (not less frequently than annually)
made for the life (or life expectancy) of the distributee or the joint lives (or joint life
expectancies) of the Participant and the Participant’s Beneficiary, or for a specified period of
ten years or more; any distribution to the extent such distribution is required under Code Section
401(a)(9); any hardship distribution described in Section 401(k)(2)(B)(i)(IV) of the Code; and the
portion of any distribution that is not included in gross income (determined without regard to the
exclusion for net unrealized appreciation with respect to employer securities). A portion of a
distribution shall not fail to be an eligible

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

          10.9-2 An “eligible retirement plan” is an individual retirement account described in Code
Section 408(a), an individual retirement annuity described in Code Section 408(b), an annuity plan
described in Code Section 403(a), or a qualified trust described in Code Section 401(a), that
accepts the distributee’s eligible rollover distribution. An eligible retirement plan shall also
include an annuity contract described in Section 403(b) of the Code and an eligible plan under
Section 457(b) of the Code which is maintained by a state, or any agency or instrumentality of a
state or political subdivision of a state and which agrees to separately account for amounts
transferred into such plan from this Plan. In the case of an
eligible rollover distribution to a surviving Spouse, an eligible retirement plan is an
individual retirement account or individual retirement annuity.

          10.9-3 A “direct rollover” is a payment by the Plan to the eligible retirement plan specified
by the distributee.

          10.9-4 The term “distributee” shall refer to a deceased Participant’s Spouse or a
Participant’s former Spouse who is the alternate payee under a qualified domestic relations order,
as defined in Code Section 414(p).

     10.10 Waiver of 30-Day Period After Notice of Distribution. If a distribution is one
to which Sections 401(a)(11) and 417 of the Code do not apply, such distribution may commence less
than 30 days after the notice required under Section 1.411(a)-11(c) of the Income Tax Regulations
is given, provided that:

          (i) the Trustee or Committee, as applicable, clearly informs the Participant that the
Participant has a right to a period of at least 30 days after receiving the notice to consider the
decision of whether or not to elect a distribution (and, if applicable, a particular option), and

          (ii) the Participant, after receiving the notice, affirmatively elects a distribution.

Section 11. Rules Governing Benefit Claims and Review of Appeals.

     11.1 Claim for Benefits. Any Participant or Beneficiary who qualifies for the payment
of benefits shall file a claim for his benefits with the Committee on a form provided by the
Committee. The claim, including any election of an alternative benefit form, shall be filed at
least 30 days before the date on which the benefits are to begin. If a Participant or

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Beneficiary
fails to file a claim by the day before the date on which benefits become payable, he shall be
presumed to have filed a claim for payment for the Participant’s benefits in the standard form
prescribed by Sections 10.1 or 10.2.

     11.2 Notification by Committee. Within 90 days after receiving a claim for benefits
(or within 180 days, if special circumstances require an extension of time and written notice of
the extension is given to the Participant or Beneficiary within 90 days after receiving the claim
for benefits), the Committee shall notify the Participant or Beneficiary whether the claim has been
approved or denied. If the Committee denies a claim in any respect, the Committee shall set forth
in a written notice to the Participant or Beneficiary:

          (i) each specific reason for the denial;

          (ii) specific references to the pertinent Plan provisions on which the denial is based;

          (iii) a description of any additional material or information which could be submitted by the
Participant or Beneficiary to support his claim, with an explanation of the relevance of such
information; and

          (iv) an explanation of the claims review procedures set forth in Section 11.3.

     11.3 Claims Review Procedure. Within 60 days after a Participant or Beneficiary
receives notice from the Committee that his claim for benefits has been denied in any respect, he
may file with the Committee a written notice of appeal setting forth his reasons for disputing the
Committee’s determination. In connection with his appeal the Participant or Beneficiary or his
representative may inspect or purchase copies of pertinent documents and records to the extent not
inconsistent with other Participants’ and Beneficiaries’ rights of privacy. Within 60 days after
receiving a notice of appeal from a prior determination (or within 120 days, if special
circumstances require an extension of time and written notice of the extension is given to the
Participant or Beneficiary and his representative within 60 days after receiving the notice of
appeal), the Committee shall furnish to the Participant or Beneficiary and his representative, if
any, a written statement of the Committee’s final decision with respect to his claim, including the
reasons for such decision and the particular Plan provisions upon which it is based.

Section 12. The Committee and its Functions.

     12.1 Authority of Committee. The Committee shall be the “plan administrator” within
the meaning of ERISA and shall have exclusive responsibility and authority to control and manage
the operation and administration of the Plan, including the interpretation and application of its
provisions, except to the extent such responsibility and authority are otherwise specifically (i)
allocated to the Company, the Employers, or the Trustee under the Plan and Trust Agreement, (ii)
delegated in writing to other persons by the Company, the

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Employers, the Committee, or the Trustee,
or (iii) allocated to other parties by operation of law. The Committee shall have exclusive
responsibility regarding decisions concerning the payment of benefits under the Plan. The
Committee shall have no investment responsibility with respect to the Investment Fund except to the
extent, if any, specifically provided in the Trust Agreement. In the discharge of its duties, the
Committee may employ accountants, actuaries, legal counsel, and other agents (who also may be
employed by an Employer or the Trustee in the same or some other capacity) and may pay their
reasonable expenses and compensation.

     12.2 Identity of Committee. The Committee shall consist of the those persons
appointed to the Committee by the Company from time to time. Any individual, including a director,
trustee, shareholder, officer, or Employee of an Employer, shall be eligible to serve as a member
of the Committee. The Company shall have the power to remove any individual serving on the
Committee at any time without cause upon 10 days written notice, and any individual may resign from
the Committee at any time upon 10 days written notice to the Company. The Company shall notify the
Trustee of any change in membership of the Committee.

     12.3 Duties of Committee. The Committee shall keep whatever records may be necessary
to implement the Plan and shall furnish whatever reports may be required from time to time by the
Company. The Committee shall furnish to the Trustee whatever information may be necessary to
properly administer the Trust. The Committee shall see to the filing with the appropriate
government agencies of all reports and returns required of the Plan under ERISA and other laws.

     Further, the Committee shall have exclusive responsibility and authority with respect to the
Plan’s holdings of Company Stock and shall direct the Trustee in all respects regarding the
purchase, retention, sale, exchange, and pledge of Company Stock and the creation and satisfaction
of Stock Obligations. The Committee shall at all times act consistently with the Company’s
long-term intention that the Plan, as an employee stock ownership plan, be invested primarily in
Company Stock. Subject to the direction of the board as to the application of Employer
contributions to Stock Obligations, and subject to the provisions of Sections 6.4 and 10.6 as to
Participants’ rights under certain circumstances to have their Accounts invested in Company Stock
or in assets other than Company Stock, the Committee shall determine in its sole discretion the
extent to which assets of the Trust shall be used to repay Stock Obligations, to purchase Company
Stock, or to invest in other assets to be selected by the Trustee or an investment manager. No
provision of the Plan relating to the allocation or vesting of any interests in the Stock Fund or
the Investment Fund shall restrict the Committee from changing any holdings of the Trust, whether
the changes involve an increase or a decrease in the Company Stock or other assets credited to
Participants’ Accounts. In determining the proper extent of the Trust’s investment in Company
Stock, the Committee shall be authorized to employ investment counsel, legal counsel, appraisers,
and other agents and to pay their reasonable expenses and compensation.

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     12.4 Compliance with ERISA. The Committee shall perform all acts necessary to comply
with ERISA. Each individual member or employee of the Committee shall discharge his duties in good
faith and in accordance with the applicable requirements of ERISA.

     12.5 Action by Committee. All actions of the Committee shall be governed by the
affirmative vote of a number of members which is a majority of the total number of members
currently appointed, including vacancies.

     12.6 Execution of Documents. Any instrument executed by the Committee shall be signed
by any member or employee of the Committee.

     12.7 Adoption of Rules. The Committee shall adopt such rules and regulations of
uniform applicability as it deems necessary or appropriate for the proper administration and
interpretation of the Plan.

     12.8 Responsibilities to Participants. The Committee shall determine which Employees
qualify to enter the Plan. The Committee shall furnish to each Eligible Employee whatever summary
plan descriptions, summary annual reports, and other notices and information may be required under
ERISA. The Committee also shall determine when a Participant or his Beneficiary qualifies for the
payment of benefits under the Plan. The Committee shall furnish to each such Participant or
Beneficiary whatever information is required under ERISA (or is otherwise appropriate) to enable
the Participant or Beneficiary to make whatever elections may be available pursuant to Sections 6
and 10, and the Committee shall provide for the payment of benefits in the proper form and amount
from the assets of the Trust Fund. The Committee may decide in its sole discretion to permit
modifications of elections and to defer or accelerate benefits to the extent consistent with
applicable law and the best interests of the individuals concerned.

     12.9 Alternative Payees in Event of Incapacity. If the Committee finds at any time
that an individual qualifying for benefits under this Plan is a minor or is incompetent, the
Committee may direct the benefits to be paid, in the case of a minor, to his parents, his legal
guardian, or a custodian for him under the Uniform Gifts to Minors Act, or, in the case of an
incompetent, to his spouse, or his legal guardian, the payments to be used for the individual’s
benefit. The Committee and the Trustee shall not be obligated to inquire as to the actual use of
the funds by the person receiving them under this Section, and any such payment shall completely
discharge the obligations of the Plan, the Trustee, the Committee, and the Employers to the extent
of the payment.

     12.10 Indemnification by Employers. Except as separately agreed in writing, the
Committee, and any member or employee of the Committee, shall be indemnified and held harmless by
the Employer, jointly and severally, to the fullest extent permitted by ERISA, and subject to and
conditioned upon compliance with 12 C.F.R. Section 545.121, to the extent applicable, against any
and all costs, damages, expenses, and liabilities reasonably incurred by or imposed upon it or him
in connection with any claim made against it or him or

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in which it or he may be involved by reason
of its or his being, or having been, the Committee, or a member or employee of the Committee, to
the extent such amounts are not paid by insurance.

     12.11 Nonparticipation by Interested Member. Any member of the Committee who also is
a Participant in the Plan shall take no part in any determination specifically relating to his own
participation or benefits, unless his abstention would leave the Committee incapable of acting on
the matter.

Section 13. Adoption, Amendment, or Termination of the Plan.

     13.1 Adoption of Plan by Other Employers. With the consent of the Company, any entity
may become a participating Employer under the Plan by (i) taking such action as shall be necessary
to adopt the Plan, (ii) becoming a party to the Trust Agreement establishing the Trust Fund, and
(iii) executing and delivering such instruments and taking such other action as may be necessary or
desirable to put the Plan into effect with respect to the entity’s Employees.

     13.2 Plan Adoption Subject to Qualification. Notwithstanding any other provision of
the Plan, the adoption of the Plan and the execution of the Trust Agreement are conditioned upon
their being determined initially by the Internal Revenue Service to meet the qualification
requirements of Section 401(a) of the Code, so that the Employers may deduct currently for federal
income tax purposes their contributions to the Trust and so that the Participants may exclude the
contributions from their gross income and recognize income only when they receive benefits. In the
event that this Plan is held by the Internal Revenue Service not to qualify initially under Section
401(a), the Plan may be amended retroactively to the earliest date permitted by U.S. Treasury
Regulations in order to secure qualification under Section 401(a). If this Plan is held by the
Internal Revenue Service not to qualify initially under Section 401(a) either as originally adopted
or as amended, each Employer’s contributions to the Trust under this Plan (including any earnings
thereon) shall be returned to it and this Plan shall be terminated. In the event that this Plan is
amended after its initial qualification and the Plan as amended is held by the Internal Revenue
Service not to qualify under Section 401(a), the amendment may be modified retroactively to the
earliest date permitted by U.S. Treasury Regulations in order to secure approval of the amendment
under Section 401(a).

     13.3 Right to Amend or Terminate. The Company intends to continue this Plan as a
permanent program. However, each participating Employer separately reserves the right to suspend,
supersede, or terminate the Plan at any time and for any reason, as it applies to that Employer’s
Employees, and the Company reserves the right to amend, suspend, supersede, merge, consolidate, or
terminate the Plan at any time and for any reason, as it applies to the Employees of each Employer.
No amendment, suspension, supersession, merger, consolidation, or termination of the Plan shall
(i) reduce any Participant’s or Beneficiary’s

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proportionate interest in the Trust Fund, (ii) reduce
or restrict, either directly or indirectly, the benefit provided any Participant prior to the
amendment, or (iii) divert any portion of the Trust Fund to purposes other than the
exclusive benefit of the Participants and their Beneficiaries prior to the satisfaction of all
liabilities under the Plan. Moreover, there shall not be any transfer of assets to a successor
plan or merger or consolidation with another plan unless, in the event of the termination of the
successor plan or the surviving plan immediately following such transfer, merger, or consolidation,
each participant or beneficiary would be entitled to a benefit equal to or greater than the benefit
he would have been entitled to if the plan in which he was previously a participant or beneficiary
had terminated immediately prior to such transfer, merger, or consolidation. Following a
termination of this Plan by the Company, the Trustee shall continue to administer the Trust and pay
benefits in accordance with the Plan as amended from time to time and the Committee’s instructions.

Section 14. Miscellaneous Provisions.

     14.1 Plan Creates No Employment Rights. Nothing in this Plan shall be interpreted as
giving any Employee the right to be retained as an Employee by an Employer, or as limiting or
affecting the rights of an Employer to control its Employees or to terminate the Service of any
Employee at any time and for any reason, subject to any applicable employment or collective
bargaining agreements.

     14.2 Nonassignability of Benefits. No assignment, pledge, or other anticipation of
benefits from the Plan will be permitted or recognized by the Employer, the Committee, or the
Trustee. Moreover, benefits from the Plan shall not be subject to attachment, garnishment, or
other legal process for debts or liabilities of any Participant or Beneficiary, to the extent
permitted by law. This prohibition on assignment or alienation shall apply to any judgment,
decree, or order (including approval of a property settlement agreement) which relates to the
provision of child support, alimony, or property rights to a present or former spouse, child or
other dependent of a Participant pursuant to a state domestic relations or community property law,
unless the judgment, decree, or order is determined by the Committee to be a qualified domestic
relations order within the meaning of Section 414(p) of the Code, as more fully set forth in
Section 14.12 hereof.

     14.3 Limit of Employer Liability. The liability of the Employer with respect to
Participants under this Plan shall be limited to making contributions to the Trust from time to
time, in accordance with Section 4.

     14.4 Treatment of Expenses. All expenses incurred by the Committee and the Trustee in
connection with administering this Plan and Trust Fund shall be paid by the Trustee from the Trust
Fund to the extent the expenses have not been paid or assumed by the Employer or by the Trustee.
The Committee may determine that, and shall inform the Trustee when, reasonable expenses may be
charged directly to the Account or Accounts of a Participant or group of Participants to whom or
for whose benefit
such expenses are

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allocable, subject to the guidelines set forth in Field Assistance Bulletin
2003-03, to the extent not superseded, or any successor directive issued by the Department of
Labor.

     14.5 Number and Gender. Any use of the singular shall be interpreted to include the
plural, and the plural the singular. Any use of the masculine, feminine, or neuter shall be
interpreted to include the masculine, feminine, or neuter, as the context shall require.

     14.6 Nondiversion of Assets. Except as provided in Sections 5.2 and 14.12, under no
circumstances shall any portion of the Trust Fund be diverted to or used for any purpose other than
the exclusive benefit of the Participants and their Beneficiaries prior to the satisfaction of all
liabilities under the Plan.

     14.7 Separability of Provisions. If any provision of this Plan is held to be invalid
or unenforceable, the other provisions of the Plan shall not be affected but shall be applied as if
the invalid or unenforceable provision had not been included in the Plan.

     14.8 Service of Process. The agent for the service of process upon the Plan shall be
the president of the Company, or such other person as may be designated from time to time by the
Company.

     14.9 Governing State Law. This Plan shall be interpreted in accordance with the laws
of the State of Georgia to the extent those laws are applicable under the provisions of ERISA.

     14.10 Employer Contributions Conditioned on Deductibility. Employer Contributions to
the Plan are conditioned on deductibility under Code Section 404. In the event that the Internal
Revenue Service shall determine that all or any portion of an Employer Contribution is not
deductible under that Section, the nondeductible portion shall be returned to the Employer within
one year of the disallowance of the deduction.

     14.11 Unclaimed Accounts. Neither the Employer nor the Trustees shall be under any
obligation to search for, or ascertain the whereabouts of, any Participant or Beneficiary. The
Employer or the Trustees, by certified or registered mail addressed to his last known address of
record with the Employer, shall notify any Participant or Beneficiary that he is entitled to a
distribution under this Plan, and the notice shall quote the provisions of this Section. If the
Participant or Beneficiary fails to claim his benefits or make his whereabouts known in writing to
the Employer or the Trustees within seven (7) calendar years after the date of notification, the
benefits of the Participant or Beneficiary under the Plan will be disposed of as follows:

          (i) If the whereabouts of the Participant is unknown but the whereabouts of the Participant’s
Beneficiary is known to the Trustees, distribution will be made to the Beneficiary.

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          (ii) If the whereabouts of the Participant and his Beneficiary are unknown to the Trustees,
the Plan will forfeit the benefit, provided that the benefit is subject to a claim for
reinstatement if the Participant or Beneficiary makes a claim for the forfeited benefit.

     Any payment made pursuant to the power herein conferred upon the Trustees shall operate as a
complete discharge of all obligations of the Trustees, to the extent of the distributions so made.

     14.12 Qualified Domestic Relations Order. Section 14.2 shall not apply to a
“qualified domestic relations order” defined in Code Section 414(p), and such other domestic
relations orders permitted to be so treated under the provisions of the Retirement Equity Act of
1984. Further, to the extent provided under a “qualified domestic relations order,” a former
Spouse of a Participant shall be treated as the Spouse or surviving Spouse for all purposes under
the Plan.

In the case of any domestic relations order received by the Plan:

          (i) The Employer or the Committee shall promptly notify the Participant and any other
alternate payee of the receipt of such order and the Plan’s procedures for determining the
qualified status of domestic relations orders, and

          (ii) Within a reasonable period after receipt of such order, the Employer or the Committee
shall determine whether such order is a qualified domestic relations order and notify the
Participant and each alternate payee of such determination. The Employer or the Committee shall
establish reasonable procedures to determine the qualified status of domestic relations orders and
to administer distributions under such qualified orders.

     During any period in which the issue of whether a domestic relations order is a qualified
domestic relations order is being determined (by the Employer or Committee, by a court of competent
jurisdiction, or otherwise), the Employer or the Committee shall segregate in a separate account in
the Plan or in an escrow account the amounts which would have been payable to the alternate payee
during such period if the order had been determined to be a qualified domestic relations order. If
within eighteen (18) months the order (or modification thereof) is determined to be a qualified
domestic relations order, the Employer or the Committee shall pay the segregated amounts (plus any
interest thereon) to the person or persons entitled thereto. If within eighteen (18) months it is
determined that the order is not a qualified domestic relations order, or the issue as to whether
such order is a qualified domestic relations order is not resolved, then the Employer or the
Committee shall pay the segregated amounts (plus any interest thereon) to the person or persons who
would have been entitled to such amounts if there had been no order. Any determination that an
order is a
qualified domestic relations order which is made after the close of the eighteen (18) month
period shall be applied prospectively only. The term “alternate payee” means any Spouse, former
Spouse, child or other dependent of a Participant who is recognized by a domestic

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relations order
as having a right to receive all, or a portion of, the benefit payable under a Plan with respect to
such Participant.

Section 15. Top-Heavy Provisions.

     15.1 Top-Heavy Plan. This Plan is top-heavy if any of the following conditions exist:

          (i) If the top-heavy ratio for this Plan exceeds sixty percent (60%) and this Plan is not part
of any required aggregation group or permissive aggregation group;

          (ii) If this Plan is a part of a required aggregation group (but is not part of a permissive
aggregation group) and the aggregate top-heavy ratio for the group of Plans exceeds sixty percent
(60%); or

          (iii) If this Plan is a part of a required aggregation group and part of a permissive
aggregation group and the aggregate top-heavy ratio for the permissive aggregation group exceeds
sixty percent (60%).

     15.2 Super Top-Heavy Plan This Plan will be a super top-heavy Plan if any of the
following conditions exist:

          (i) If the top-heavy ratio for this Plan exceeds ninety percent (90%) and this Plan is not
part of any required aggregation group or permissive aggregation group.

          (ii) If this Plan is a part of a required aggregation group (but is not part of a permissive
aggregation group) and the aggregate top-heavy ratio for the group of Plans exceeds ninety percent
(90%), or

          (iii) If this Plan is a part of a required aggregation group and part of a permissive
aggregation group and the aggregate top-heavy ratio for the permissive aggregation group exceeds
ninety percent (90%).

     15.3 Definitions.

     In making this determination, the Committee shall use the following definitions and
principles:

          15.3-1 The “Determination Date,” with respect to the first Plan Year of any plan, means the
last day of that Plan Year, and with respect to each subsequent Plan Year, means the last day of
the preceding Plan Year. If any other plan has a Determination Date which differs from this Plan’s
Determination Date, the top-heaviness of this Plan shall be
determined on the basis of the other plan’s Determination Date falling within the same
calendar years as this Plan’s Determination Date.

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          15.3-2 A “Key Employee” means any employee or former employee (including any deceased
employee) who at any time during the plan year that includes the determination date was an officer
of the employer having annual compensation greater than $135,000 (as adjusted under section
416(i)(1) of the Code), a 5-percent owner of the employer, or a 1-percent owner of the employer
having annual compensation of more than $150,000. For this purpose, annual compensation means
compensation within the meaning of section 415(c)(3) of the Code. The determination of who is a
key employee will be made in accordance with section 416(i)(1) of the Code and the applicable
regulations and other guidance of general applicability issued thereunder.

          15.3-3 A “Non-key Employee” means an Employee who at any time during the five years ending on
the top-heavy Determination Date for the Plan Year has received compensation from an Employer and
who has never been a Key Employee, and the Beneficiary of any such Employee.

          15.3-4 A “required aggregation group” includes (a) each qualified Plan of the Employer in
which at least one Key Employee participates in the Plan Year containing the Determination Date and
(b) any other qualified Plan of the Employer which enables a Plan described in (a) to meet the
requirements of Code Sections 401(a)(4) or 410. For purposes of the preceding sentence, a
qualified Plan of the Employer includes a terminated Plan maintained by the Employer within the
period ending on the Determination Date. In the case of a required aggregation group, each Plan in
the group will be considered a top-heavy Plan if the required aggregation group is a top-heavy
group. No Plan in the required aggregation group will be considered a top-heavy Plan if the
required aggregation group is not a top-heavy group. All Employers aggregated under Code Sections
414(b), (c) or (m) or (o) (but only after the Code Section 414(o) regulations become effective) are
considered a single Employer.

          15.3-5 A “permissive aggregation group” includes the required aggregation group of Plans plus
any other qualified Plan(s) of the Employer that are not required to be aggregated but which, when
considered as a group with the required aggregation group, satisfy the requirements of Code
Sections 401(a)(4) and 410 and are comparable to the Plans in the required aggregation group. No
Plan in the permissive aggregation group will be considered a top-heavy Plan if the permissive
aggregation group is not a top-heavy group. Only a Plan that is part of the required aggregation
group will be considered a top-heavy Plan if the permissive aggregation group is top-heavy.

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     15.4 Top-Heavy Rules of Application.

          For purposes of determining the value of Account balances and the present value of accrued
benefits the following provisions shall apply:

          15.4-1 The value of Account balances and the present value of accrued benefits will be
determined as of the most recent Valuation Date that falls within or ends with the twelve (12)
month period ending on the Determination Date.

          15.4-2 For purposes of testing whether this Plan is top-heavy, the present value of an
individual’s accrued benefits and an individual’s Account balances is counted only once each year.

          15.4-3 The Account balances and accrued benefits of a Participant who is not presently a Key
Employee but who was a Key Employee in a Plan Year beginning on or after January 1, 1984 will be
disregarded.

          15.4-4 Employer contributions attributable to a salary reduction or similar arrangement will
be taken into account. Employer matching contributions also shall be taken into account for
purposes of satisfying the minimum contribution requirements of Section 416(c)(2) of the Code and
the Plan.

          15.4-5 When aggregating Plans, the value of Account balances and accrued benefits will be
calculated with reference to the Determination Dates that fall within the same calendar year.

          15.4-6 The present values of accrued benefits and the amounts of account balances of an
employee as of the determination date shall be increased by the distributions made with respect to
the employee under the plan and any plan aggregated with the plan under Section 416(g)(2) of the
Code during the 1-year period ending on the determination date. The preceding sentence shall also
apply to distributions under a terminated plan which, had it not been terminated, would have been
aggregated with the plan under Section 416(g)(2)(A)(i) of the Code. In the case of a distribution
made for a reason other than separation from service, death, or disability, this provision shall be
applied by substituting “five (5) year period” for “one (1) year period.”

          15.4-7 Accrued benefits and Account balances of an individual shall not be taken into account
for purposes of determining the top-heavy ratios if the individual has performed no services for
the Employer during the one (1) year period ending on the applicable Determination Date.
Compensation for purposes of this subparagraph shall not include any payments made to an individual
by the Employer pursuant to a qualified or non-qualified deferred compensation plan.

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          15.4-8 The present value of the accrued benefits or the amount of the Account balances of any
Employee participating in this Plan shall not include any rollover contributions or other transfers
voluntarily initiated by the Employee except as described below. If this Plan transfers or rolls
over funds to another Plan in a transaction voluntarily initiated by the Employee, then this Plan
shall count the distribution for purposes of determining Account balances or the present value of
accrued benefits. A transfer incident to a merger or consolidation of two or more Plans of the
Employer (including Plans of related Employers treated as a single Employer under Code Section
414), or a transfer or rollover between Plans of the Employer, shall not be considered as
voluntarily initiated by the Employee.

     15.5 Minimum Contributions. For any Top-Heavy Year, each Employer shall make a
special contribution on behalf of each Participant to the extent that the total allocations to his
Account pursuant to Section 4 is less than the lesser of:

          (i) three percent of his Compensation for that year, or

          (ii) the highest ratio of such allocation to Compensation received by any Key Employee for
that year. For purposes of the special contribution of this Section 15.2, a Key Employee’s
Compensation shall include amounts the Key Employee elected to defer under a qualified 401(k)
arrangement. Such a special contribution shall be made on behalf of each Participant who is
employed by an Employer on the last day of the Plan Year, regardless of the number of his Hours of
Service, and shall be allocated to his Account.

     If the Employer maintains a qualified plan in addition to this Plan and more than one such
plan is determined to be Top-Heavy, a minimum contribution or a minimum benefit shall be provided
in one of such other plans, including a plan that consists solely of a cash or deferred arrangement
which meets the requirements of Section 401(k)(12) of the Code and matching contributions with
respect to which the requirements of Section 401(m)(11) of the Code are met. If the Employer has
both a Top-Heavy defined benefit plan and a Top-Heavy defined contribution plan and a minimum
contribution is to be provided only in the defined contribution plan, then the sum of the Employer
contributions and forfeitures allocated to the Account of each Non-key Employee shall be equal to
at least five percent (5%) of such Non-key Employee’s Compensation for that year.

     15.6 Top-Heavy Provisions Control in Top-Heavy Plan. In the event this Plan becomes
top-heavy and a conflict arises between the top-heavy provisions herein set forth and the remaining
provisions set forth in this Plan, the top-heavy provisions shall control.

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