Document:

EX-10.04

EXHIBIT 10.04

CONFIDENTIAL TREATMENT REQUESTED — Confidential portions of this document have been redacted
and filed separately with the Commission.

PREFERRED PARTNERSHIP

AGREEMENT

by and among

THE HARTFORD FINANCIAL SERVICES GROUP, INC.,

HARTFORD LIFE, INC.,

HARTFORD INVESTMENT FINANCIAL SERVICES, LLC,

HL INVESTMENT ADVISORS, LLC

and

WELLINGTON MANAGEMENT COMPANY, LLP

Dated as of December 5, 2011

 

 

 

	 	 	 	 	 	 	 

	 

	 	TABLE OF CONTENTS	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE I	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	DEFINITIONS	 	 	 	 
	 
	 	 	 	 	 	 
	Section 1.1

	 	Definitions
	 	 	1	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE II	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	PREFERRED PARTNERSHIP	 	 	 	 
	 
	 	 	 	 	 	 
	Section 2.1

	 	Preferred Subadviser
	 	 	11	 
	Section 2.2

	 	Preferred Partner
	 	 	11	 
	Section 2.3

	 	Certain Restrictions on Wellington Subadvisory Business
	 	 	12	 
	Section 2.4

	 	Wellington Portfolio Managers
	 	 	12	 
	Section 2.5

	 	Fixed Income Hartford Funds
	 	 	13	 
	Section 2.6

	 	Wellington Termination Right
	 	 	13	 
	Section 2.7

	 	Hartford Termination Right
	 	 	13	 
	Section 2.8

	 	No Further Restrictions on HIMCO
	 	 	13	 
	Section 2.9

	 	Fiduciary Duties
	 	 	13	 
	Section 2.10

	 	Update of Certain Schedules
	 	 	14	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE III	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	FEES	 	 	 	 
	 
	 	 	 	 	 	 
	Section 3.1

	 	Agreement With Respect to Fees
	 	 	14	 
	Section 3.2

	 	Fee Waivers for Fixed Income Mandates
	 	 	15	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE IV	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	REPRESENTATIONS AND WARRANTIES OF HARTFORD	 	 	 	 
	 
	 	 	 	 	 	 
	Section 4.1

	 	Organization and Standing
	 	 	16	 
	Section 4.2

	 	Power and Authority
	 	 	16	 
	Section 4.3

	 	Non-Contravention; Consents
	 	 	16	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE V	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	REPRESENTATIONS AND WARRANTIES OF WELLINGTON	 	 	 	 
	 
	 	 	 	 	 	 
	Section 5.1

	 	Organization and Standing
	 	 	17	 
	Section 5.2

	 	Power and Authority
	 	 	17	 
	Section 5.3

	 	Non-Contravention; Consents
	 	 	17	 

 

i

 

	 	 	 	 	 	 	 

	 

	 	ARTICLE VI	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	COVENANTS	 	 	 	 
	 
	 	 	 	 	 	 
	Section 6.1

	 	Brand
	 	 	18	 
	Section 6.2

	 	Periodic Certifications
	 	 	18	 
	Section 6.3

	 	Notice of a Hartford Sale
	 	 	18	 
	Section 6.4

	 	Right of First Refusal
	 	 	20	 
	Section 6.5

	 	Notice of Wellington Change of Control Event
	 	 	21	 
	Section 6.6

	 	Notice of HIG Change of Control Event
	 	 	21	 
	Section 6.7

	 	IPO or Spin Out
	 	 	22	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE VII	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	CONFIDENTIALITY	 	 	 	 
	 
	 	 	 	 	 	 
	Section 7.1

	 	Treatment of Confidential Information
	 	 	22	 
	Section 7.2

	 	Permitted Disclosure
	 	 	22	 
	Section 7.3

	 	Effect of Termination
	 	 	23	 
	Section 7.4

	 	Ownership of Confidential Information
	 	 	23	 
	Section 7.5

	 	Disclosure Related to Sale
	 	 	23	 
	Section 7.6

	 	Equitable Relief
	 	 	23	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE VIII	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	DISPUTE RESOLUTION	 	 	 	 
	 
	 	 	 	 	 	 
	Section 8.1

	 	Disputes; Resolution by Executive Officers
	 	 	24	 
	Section 8.2

	 	Injunctive Relief
	 	 	24	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE IX	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	TERM AND TERMINATION OF PREFERRED	 	 	 	 
	 

	 	PARTNERSHIP; MAKE-WHOLE PAYMENT	 	 	 	 
	 
	 	 	 	 	 	 
	Section 9.1

	 	Term
	 	 	24	 
	Section 9.2

	 	Termination
	 	 	24	 
	Section 9.3

	 	Effect of Termination
	 	 	25	 
	Section 9.4

	 	Make-Whole Payment
	 	 	26	 
	Section 9.5

	 	Determination of Total Enterprise Value
	 	 	26	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE X	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	MISCELLANEOUS	 	 	 	 
	 
	 	 	 	 	 	 
	Section 10.1

	 	Amendments; Extension; Waiver
	 	 	27	 
	Section 10.2

	 	Entire Agreement
	 	 	27	 
	Section 10.3

	 	Interpretation
	 	 	28	 

 

ii

 

	 	 	 	 	 	 	 

	Section 10.4

	 	Severability
	 	 	28	 
	Section 10.5

	 	Notices
	 	 	28	 
	Section 10.6

	 	Binding Effect; Persons Benefiting; No Assignment
	 	 	29	 
	Section 10.7

	 	Disclaimers
	 	 	29	 
	Section 10.8

	 	Specific Performance
	 	 	30	 
	Section 10.9

	 	Counterparts
	 	 	30	 
	Section 10.10

	 	Governing Law; Waiver of Jury Trial
	 	 	30	 
	Section 10.11

	 	Certain Understandings
	 	 	30	 

 

iii

 

TABLE OF SCHEDULES

	 	 	 

	SCHEDULE A

	 	EXECUTIVE OFFICERS
	 
	 	 
	SCHEDULE B

	 	HARTFORD HLS FUNDS
	 
	 	 
	SCHEDULE C

	 	BROKER-DEALERS*
	 
	 	 
	SCHEDULE D

	 	INTENTIONALLY OMITTED
	 
	 	 
	SCHEDULE E

	 	WELLINGTON PORTFOLIO MANAGERS*
	 
	 	 
	SCHEDULE F

	 	FIXED INCOME FUND MANDATES
	 
	 	 
	SCHEDULE G

	 	FEE REVISIONS ON EXISTING HARTFORD FUNDS*
	 
	 	 
	SCHEDULE H

	 	ALLOCATION SERVICES FEES*

	 	 	 
	*	 	Portions of this exhibit have been omitted pursuant to a Confidential Treatment Request submitted
to the Securities and Exchange Commission on the date hereof. Redacted information has been filed
separately with the Securities and Exchange Commission.

 

iv

 

PREFERRED PARTNERSHIP AGREEMENT

This PREFERRED PARTNERSHIP AGREEMENT, dated as of December 5, 2011 (as amended from time to
time, the “Agreement”), is by and among The Hartford Financial Services Group, Inc., a
Delaware corporation (together with any successor thereto or permitted assignee thereof,
“Hartford”), Hartford Life, Inc., a Delaware corporation (“HLI”), Hartford
Investment Financial Services, LLC, a Delaware limited liability company, HL Investment Advisors,
LLC, a Connecticut limited liability company, and Wellington Management Company, LLP, a
Massachusetts limited liability partnership (together with any successor thereto or permitted
assignee thereof, “Wellington”).

RECITALS:

WHEREAS, the Hartford Parties (as defined below) and Wellington seek to establish a
relationship pursuant to which Wellington will serve as preferred subadviser to the Hartford Funds
(as defined below), and Hartford will serve as Wellington’s preferred partner with respect to the
Covered Funds (as defined below), on the terms and conditions set forth in this Agreement;

WHEREAS, the Hartford Parties and Wellington desire to make certain representations,
warranties, covenants and agreements in connection with the arrangements contemplated by this
Agreement; and

WHEREAS, the parties hereto desire to enter into this Agreement.

NOW, THEREFORE, in consideration of the mutual covenants, promises and representations set
forth herein, and for other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties agree as follows:

ARTICLE I

DEFINITIONS

Section 1.1 Definitions. For all purposes in this Agreement, the following terms shall have the following respective
meanings (which shall apply equally to the singular and plural form of any such term as the context
requires):

“Affiliate” means, with respect to any Person, any other Person that directly or
indirectly through one or more intermediaries, controls, is controlled by or is under common
control with such first Person; provided, however, that, for the avoidance of
doubt, Wellington is not an Affiliate of Hartford or any of its Affiliates and vice versa for
purposes of this Agreement or any other purpose. “Control,” when used with respect to any
specified Person, means the possession, directly or indirectly, of the power to direct (or cause
the direction of) the management and policies of such Person, whether through the ownership of
voting securities or other voting interests, by contract or otherwise; and the terms
“controlling” and “controlled” have correlative meanings to the foregoing. For
purposes of the definition of “Control,” a general partner, managing member or managing partner of
a Person shall always be considered
to control such Person. Notwithstanding the foregoing sentences of this definition, (i)
neither Allianz SE nor any of its Affiliates shall be deemed to be an Affiliate of Hartford or any
of its Affiliates for purposes of this Agreement and (ii) no natural person that is a partner of
Wellington shall be deemed to be an Affiliate of Wellington.

 

 

 

“Agreement” shall have the meaning set forth in the Preamble.

“Applicable Law” means, with respect to any Person, any statute, law, ordinance, rule,
regulation, order writ, injunction, directive, judgment, decree or other requirement of any
Governmental Authority (including any applicable requirements of any SRO) to the extent applicable
to such Person or any of its properties, assets, officers, directors, members, partners, employees
or agents.

“Appraiser” means a nationally recognized investment bank that (a) is listed as one of
the top twenty such investment banks in the “League Table of Financial Advisors to Americas M&A:
Value” as published by The Mergermarket Group (www.mergermarket.com) for the most recent calendar
quarter preceding the date on which such investment bank is hired and (b) has not provided material
investment banking services to any Party or any of its Affiliates within the 12-month period
immediately preceding the date on which such investment bank is hired in connection with Section
9.5, nor is expected to do so in the subsequent 12-month period.

“Bankruptcy Event” means, with respect to the applicable Person, the occurrence of any
of the following events: (i) such Person makes a general assignment for the benefit of creditors;
(ii) such Person files a voluntary petition in bankruptcy; (iii) such Person is adjudged bankrupt
or insolvent, or has entered against him an order for relief in any bankruptcy or insolvency
proceeding or vacated within 90 days of such order; (iv) such Person files a petition or answer
seeking any reorganization, arrangement, composition, readjustment, liquidation, dissolution or
similar relief under any statute, regulation or law; (v) such Person files an answer or other
pleading admitting or failing to contest the material allegations of a petition filed against such
Person in any proceeding of this nature; (vi) such Person seeks, consents to, or acquiesces in the
appointment of, a trustee, receiver, or liquidator of all or any substantial part of such Person’s
properties; (vii) if 60 days after the commencement of any proceeding against such Person seeking
reorganization, arrangement, composition, readjustment, liquidation, dissolution or similar relief
under any statute, law or regulation or the entry of any order for relief, the proceeding has not
been dismissed or stayed, or the order vacated or stayed; or (viii) if within 90 days after the
appointment without his consent or acquiescence of a trustee, receiver or liquidator of such Person
or of all or any substantial part of his properties, the appointment is not vacated or stayed, or
if within 90 days after the expiration of any such stay, the appointment is not vacated.

“Business Day” means any day other than a Saturday, Sunday or a day on which the New
York Stock Exchange is closed.

“Closing AUM Percentage” shall equal the quotient (expressed as a percentage)
of (i) the total assets under management of the Legacy Hartford Funds that are subadvised by
Wellington immediately prior to consummation of a Hartford Sale or HIG Change of Control
Event (as applicable) divided by (ii) the total assets under management of all of the Legacy
Hartford Funds as of such time.

 

2

 

“Confidential Information” means any and all information, materials and know-how,
whether disclosed prior to, on or after the date of this Agreement, regardless of the form in which
it is communicated or maintained, whether oral, electronic, visual, written or in any other form or
medium, together with all tangible and intangible embodiments and copies thereof, that are
delivered or disclosed by any Party or its representatives or agents to the other Party or its
representatives or agents or otherwise obtained by any Party or its representatives or agents under
this Agreement. The term “Confidential Information” shall (i) include (a) any extracts, derivatives
or summaries that contain or otherwise reflect any such information and (b) the existence and terms
of this Agreement and (ii) not include any information (excluding the existence and terms of this
Agreement) that:

(a) is or becomes publicly known without fault on the part of the disclosing Party or its
representatives;

(b) has been received by a Party at any time from a source (other than another Party) that, to
the knowledge of the receiving Party, has the right to disclose such Confidential Information;

(c) was otherwise known by the disclosing Party prior to disclosure to such Party by another
Party; or

(d) is developed by the disclosing Party independently from and without use of or reference to
any Confidential Information.

“Consolidator” means any Person that is engaged, directly or through a subsidiary or
Affiliate, in the business of managing publicly traded liquid securities with total assets under
management of $[***] billion or more for third parties (whether via mutual funds, managed accounts
or otherwise). For the avoidance of doubt, any registered mutual fund sponsored or advised by any
Person shall be third party assets for purposes of calculating the assets under management under
this definition.

“Covered Fund” means an open-end, closed-end or actively managed
exchange-traded fund registered under the Investment Company Act (i) for which Wellington serves as
the sole investment adviser or subadviser, (ii) the shares of which are offered and sold primarily
to retail investors in the United States through one or more broker-dealers that are not Affiliates
of the sponsor or manager of the applicable fund and (iii) that is offered on a stand-alone basis.
The term “Covered Fund” shall not include (i) a fund registered under the Investment Company Act
that is sponsored or managed by The Vanguard Group, Inc. (or any successor thereto) or its
Affiliates, (ii) a fund registered under the Investment Company Act or a Sleeve that, in either
case, represents one of multiple investment approaches in a bundled investment option to the end
investor (e.g., the fund or Sleeve is part of a multi-Sleeve or multi-

Certain information in this exhibit, marked by “[***]” has been redacted and will be filed
separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities
Exchange Act of 1934, as amended. Confidential treatment has been requested with respect to the
redacted portions.

 

3

 

manager fund or suite of
funds, fund of funds or target date fund that includes funds or Sleeves for which parties other than
Wellington serve as investment adviser or sub-adviser), (iii) any portion of a fund registered
under the Investment Company Act that represents one of multiple investment approaches offered by
multiple managers or investment advisers in a bundled investment option to the end investor, (iv)
a fund registered under the Investment Company Act sold primarily in conjunction with a variable
insurance product and (v) any money market fund.

“Cure Period” shall have the meaning set forth in Section 9.2(b)(ii).

“EDGAR” means the SEC’s Electronic Data Gathering, Analysis and Retrieval system.

“Encumbrance” means any lien, pledge, security interest, claim, charge, easement,
limitation, commitment, encroachment, restriction or encumbrance of any kind or nature whatsoever.

“Exchange Act” means the Securities Exchange Act of 1934, as amended, and all rules
and regulations of the SEC thereunder.

“Executive Officers” means the individuals listed on Schedule A and any
successor to any such individual. Hartford and Wellington may update the individuals listed as
Executive Officers of them on Schedule A by written notice to the other, provided any such
individual shall be an executive officer of Hartford or Wellington.

“FINRA” means the Financial Industry Regulatory Authority or any successor thereto.

“Fixed Income Fund Mandates” shall have the meaning set forth in Section 2.5.

“Governmental Authority” means any nation, state, territory, province, county, city or
other unit or subdivision thereof or any entity, authority, agency, department, board, commission,
instrumentality, court or other judicial body authorized on behalf of any of the foregoing to
exercise legislative, judicial, regulatory or administrative functions of or pertaining to
government, and any governmental or non-governmental self-regulatory organization.

“Hartford” shall have the meaning set forth in the Preamble.

“Hartford Adviser” means Hartford Investment Financial Services, LLC, HL Investment
Advisors, LLC or any Affiliate of Hartford that may, from time to time, act as investment adviser
to any Hartford Fund, together with any successor thereto or permitted assignee thereof.

 

4

 

“Hartford Funds” means all open-end, closed-end and actively managed exchange-traded
funds registered under the Investment Company Act and advised by Hartford or any of its Affiliates
(including the Hartford Advisers). Notwithstanding the foregoing, the term Hartford Funds shall
not include:

(i) any open-end fund registered under the Investment Company Act organized after the date of
this Agreement that is sponsored by and offered exclusively to and through Hartford’s variable
annuity, variable life or retirement plan businesses,

(ii) Hartford Portfolio Diversifier HLS Fund,

(iii) American Funds Growth-Income HLS Fund,

(iv) American Funds Bond HLS Fund,

(v) American Funds New World HLS Fund,

(vi) American Funds International HLS Fund,

(vii) American Funds Global Bond HLS Fund,

(viii) American Funds Global Growth and Income HLS Fund,

(ix) American Funds Blue Chip Income & Growth HLS Fund,

(x) American Funds Growth-Income HLS Fund,

(xi) American Funds Growth HLS Fund,

(xii) American Funds Asset Allocation HLS Fund,

(xiii) American Funds Global Growth HLS Fund,

(xiv) American Funds Global Small Capitalization HLS Fund,

(xv) The Hartford Money Market Fund,

(xvi) Hartford Money Market HLS Fund (or any other money market fund sponsored by
Hartford),

(xvii) Hartford Index HLS Fund, and

(xviii) any other American Fund that satisfies clause (i) of this definition.

“Hartford Funds Board” means the boards of directors or trustees, as the case may be,
of each of the Hartford Funds.

“Hartford HLS Funds” means the funds set forth on Schedule B hereto.

“Hartford Parties” means Hartford, HLI, Hartford Investment Financial Services, LLC
and HL Investment Advisors, LLC.

“Hartford Sale” means an HMF Sale or a Non-HMF Sale.

 

5

 

“HIG Change of Control Event” means (a) any event (or series of related events
consummated pursuant to a common plan or arrangement) where any “person” or “group” (as such terms
are used in Section 13(d) and 14(d) of the Exchange Act) is or becomes the “beneficial owner” (as
defined in Rules 13d-3 and 13d-5 under the Exchange Act, except that a Person will be deemed to
have “beneficial ownership” of all securities that such Person has the right to acquire, whether
such right is exercisable immediately or in the future), directly or indirectly, of more than 50%
of the voting power of the outstanding voting stock of Hartford (other than with respect to one or
more Persons beneficially owning proxies to vote more than 50% of the voting stock of Hartford at
an annual or special meeting which is not for the purpose of approving a merger or other
acquisition transaction or, where such proxies are held by a Consolidator, to replace a majority of
the directors) or (b) any transaction (including any merger, capital stock exchange, asset
acquisition, stock purchase, reorganization or other similar transaction, including a joint venture
or obtaining a majority interest through contractual arrangements) (or series of related
transactions implemented pursuant to a common plan or arrangement) pursuant to which (i) more than
50% of the voting stock of Hartford is converted into or exchanged for cash, securities or other
property or Hartford conveys, transfers, leases or otherwise disposes of all or substantially all
of the assets of Hartford (other than (x) a transfer of such assets to one or more controlled,
wholly-owned Affiliates of Hartford or (y) any such transaction where the Persons who were the
beneficial owners of the outstanding voting stock of Hartford immediately prior to such transaction
beneficially own immediately following such transaction, directly or indirectly (including, without
limitation, through one or more holding companies or subsidiaries), 50% or more of the outstanding
voting stock of the corporation or other entity resulting from such transaction) or (ii) without
limitation of clause (i)with respect to mergers and consolidations, Persons who were the beneficial
owners of the outstanding voting stock of Hartford immediately prior to such transaction
beneficially do not own, immediately following such transaction, directly or indirectly (including,
without limitation, through one or more holding companies or subsidiaries), 50% or more of the
outstanding voting stock of the corporation or other entity resulting from such transaction
immediately following such transaction).

“HIG Change of Control Notice” shall have the meaning set forth in Section 6.6.

“HIMCO” means Hartford Investment Management Company.

“HLI” shall have the meaning set forth in the Preamble.

“HMF Business” means the business, assets and operations of the mutual fund business
of Hartford and its Affiliates (including the Hartford Advisers), including the sponsoring and
management of the Hartford Funds. By way of example, the HMF Business as of the date of this
Agreement shall be deemed to include the business, assets and operations of the mutual fund
business described in the Confidential Information Memorandum prepared by Hartford and its
representatives, dated March 31, 2011.

 

6

 

“HMF Sale” means any direct or indirect sale, issuance, conveyance, transfer
or other disposition (whether occurring in a single transaction or as part of a series of related
transactions consummated pursuant to a common plan or arrangement) of or an interest in 25% or more
of the voting, equity or economics rights or assets (by market value) of the HMF
Business (including via the sale, issuance, conveyance, transfer or other disposition of the
equity of any direct or indirect owner of the HMF Business), other than (i) any such transaction
solely involving a controlled, wholly-owned Affiliate of Hartford, (ii) an initial public offering
or spin out of the HMF Business, (iii) a HIG Change of Control Event or, for the avoidance of
doubt, any indirect sale, issuance, conveyance, transfer or other disposition involving Hartford or
any successor of Hartford (but no other Hartford Affiliate) where the Persons who were the
beneficial owners of the outstanding voting stock of Hartford or any successor of Hartford
immediately prior to such transaction beneficially own, immediately following such transaction,
directly or indirectly (including, without limitation, through one or more holding companies or
subsidiaries) 50% or more of the outstanding voting stock of the corporation or other entity
resulting from such transaction immediately following such transaction or (iv) a Non-HMF Sale;
provided that, solely for purposes of Section 6.4, the reference in this definition to
“25%” shall be replaced with “50%”.

“Investment Company Act” means the Investment Company Act of 1940, as amended, and all
rules and regulations of the SEC thereunder.

“Legacy Hartford Funds” means the Hartford Funds existing at the closing of the
Hartford Sale or HIG Change of Control Event, as applicable.

“Make-Whole Payment” shall have the meaning set forth in Section 9.4(a).

“Material Adverse Effect” means with respect to Hartford or Wellington, as applicable,
any change, effect, event, occurrence, state of facts or development that could reasonably be
expected to cause the applicable Party to be unable to perform its obligations hereunder in any
material respect.

“Non-Hartford Covered Fund AUM” shall equal the total assets under management of
Wellington in Covered Funds not sponsored or managed by Hartford or one of its Affiliates,
calculated as of the specified measurement date.

“Non-HMF Sale” means any HMF Sale (applied without giving effect to clause (iv)
of such definition for purposes of this definition) that satisfies each of the following: (i) the
transaction (or series of related transactions consummated pursuant to a common plan or
arrangement) involves the sale, issuance, conveyance, transfer or other disposition of one or more
Hartford businesses in addition to, or that includes, the HMF Business (including a business of
which the HMF Business may be a business line or unit (e.g., Hartford’s Wealth Management
Division), (ii) the net income of the HMF Business represents [***]% or more of the total net
income of the Hartford businesses (including the HMF Business) involved in the applicable
transaction and (iii) the HMF Business was not offered as being available for separate purchase
(provided that, in the event that the HMF Business was offered as being available for
separate purchase and Hartford thereafter determines that it will sell the HMF Business only as
part of the larger sale of the Hartford businesses, such larger sale shall continue to be a
Non-HMF-Sale and Wellington shall not have a right to participate in such larger sale under Section
6.3 or have a right of first refusal under Section 6.4 with respect to such larger sale). For
purposes of this definition, net income shall be the net income for the 12 month period ended at
the end of the calendar quarter ending immediately prior to the date on which the applicable
Preliminary Hartford Sale Notice is required to be delivered as provided in or derived from
Hartford’s financial statements for the applicable period filed with the SEC.

Certain information in this exhibit, marked by “[***]” has been redacted and will be filed
separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities
Exchange Act of 1934, as amended. Confidential treatment has been requested with respect to the
redacted portions.

 

7

 

“Party” means each Person identified on the signature page hereto.

“Person” means any natural person, corporation, company, limited liability company,
partnership (limited or general), limited liability partnership, joint venture, association, trust,
unincorporated organization or other entity.

“Preliminary Hartford Sale Notice” shall have the meaning set forth in Section 6.3(a).

“Restricted Broker-Dealer” means any of the following: (i) any Person set forth on
Schedule C hereto for so long as such Person is one of the top 25 (based on gross sales for
all Hartford Funds using the most recently available reliable sales data) broker-dealers that has a
written selling agreement with respect to Hartford Funds; (ii) any Person that, after the date
hereof, becomes one of the top 25 (based on gross sales for all Hartford Funds using the most
recently available reliable sales data) broker-dealers with a written selling agreement with
respect to Hartford Funds; or (iii) any Person set forth on Schedule C by mutual agreement
of Hartford and Wellington. Notwithstanding the foregoing clause (ii), no Person with whom
Wellington is in active discussions with regarding a subadvisory engagement shall be a Restricted
Broker-Dealer to the extent that such Person is not set forth on Schedule C in effect as of
the date of the commencement of such discussions.

“ROFR Election Period” shall have the meaning set forth in Section 6.4(a).

“ROFR Exercise Notice” shall have the meaning set forth in Section 6.4(a).

“ROFR Notice” shall have the meaning set forth in Section 6.4(a).

“ROFR Sale” means an HMF Sale where a Consolidator will, after the consummation of the
HMF Sale, own (or have a right to acquire) a direct or indirect interest in the HMF Business. For
the avoidance of doubt, (i) a direct or indirect interest held by a Consolidator in its capacity as
a limited partner (or similar passive investor) of a third party fund or “sidecar” fund investment
solely for investment purposes shall not be a ROFR Sale and (ii) in the case of an HMF Sale where a
Consolidator only provides debt financing (which may include a de minimus amount of an equity
“kicker” in respect of such debt financing in a customary amount, as applicable), to a purchaser in
connection therewith, such HMF Sale shall not be a ROFR Sale.

“SEC” means the Securities and Exchange Commission.

“Sleeve” means that portion of the assets of a fund registered under the Investment
Company Act that is managed pursuant to a particular investment strategy within the broader
investment strategy of the fund as a whole.

 

8

 

“SRO” shall mean any industry self-regulatory organization, agency, or authority or
stock exchange, including FINRA, each national securities exchange in the U.S. and any other
commission, board, agency or body, whether in the U.S. or foreign, that is charged with the
supervision or regulation of brokers, dealers, securities underwriting or trading, stock exchanges,
commodities exchanges, investment companies or investment advisers.

“TER” shall have the meaning set forth in Section 3.1(b).

“Term” shall have the meaning set forth in Section 9.1.

“Total Enterprise Value” means the total enterprise value of the HMF Business derived
from a Hartford Sale or HIG Change of Control Event, as applicable, measured as of the closing of
such Hartford Sale or HIG Change of Control Event, all as determined pursuant to Section 9.5. Total
Enterprise Value shall take into account (i) any debt or equity instruments or assets received by
Hartford and its Affiliates (including any equity interest in the purchaser), (ii) the net present
value of any earn-out, contingent consideration or other future payment (determined using an
appropriate discount rate in light of prevailing market conditions at the time, the conditions to
the payment of such contingent amounts, and any other material factors relevant to the timing and
likelihood of such future payments being made, including indemnity obligations) and (iii) the net
debt for borrowed money (less all cash and cash equivalents), if any, of Hartford and its
Affiliates allocable to the HMF Business as is determined by the Appraiser(s) to be appropriate.
For the avoidance of doubt, in the case of a Hartford Sale or HIG Change of Control Event (as
applicable) that involves, directly or indirectly, less than 100% of the HMF Business, Total
Enterprise Value shall be determined as if 100% of the HMF Business had been sold in the Hartford
Sale or HIG Change of Control Event (as applicable).

“Trigger Event” means (i) the termination or replacement, in whole or in part, of
Wellington as subadviser to a Hartford Fund (including as a result of a fund merger or appointment
of a co-manager for a Hartford Fund that was previously subadvised only by Wellington) or (ii) any
Person other than Wellington (including any Affiliate of Hartford or internal management function)
serving as subadviser for any portion of a Hartford Fund, or as adviser for a Hartford Fund with no
subadviser, other than, (A) in either case, in connection with a Voluntary Resignation or (B) in
the case of clause (ii), any Person acting in such capacity on the date of this Agreement but
solely in respect of the Hartford Fund which such Person advises or subadvises on the date of this
Agreement.

“Voluntary Resignation” means any resignation or other voluntary termination initiated
by Wellington of its role as subadviser to a Legacy Hartford Fund, other than a resignation or
other voluntary termination that results from Hartford or the Hartford Advisers recommending to the
Hartford Funds Board any reduction in the rate of any subadvisory fee payable by any Hartford Fund.

“WAUM” shall equal the total assets under management of Wellington in Covered Funds
(including Non-Hartford Covered Fund AUM), including assets managed through subadvisory
relationships, calculated as of the specified measurement date.

“Wellington” shall have the meaning set forth in the Preamble.

 

9

 

“Wellington Change of Control Event” means (a) any event (or series of related events
consummated pursuant to a common plan or arrangement) where any “person” or “group” (as such terms
are used in Section 13(d) and 14(d) of the Exchange Act) is or becomes the “beneficial owner” (as
defined in Rules 13d-3 and 13d-5 under the Exchange Act, except that a Person will be deemed to
have “beneficial ownership” of all securities that such Person has the right to acquire, whether
such right is exercisable immediately or in the future), directly or indirectly, of more than 50%
of the voting power of the outstanding voting equity of Wellington (other than with respect to one
or more Persons beneficially owning proxies to vote more than 50% of the voting stock of Hartford
at an annual or special meeting which is not for the purpose of approving a merger or other
acquisition transaction) or (b) any transaction (including any merger, capital stock exchange,
asset acquisition, stock purchase, reorganization or other similar transaction, including a joint
venture or obtaining a majority interest through contractual arrangements) (or series of related
transactions implemented pursuant to a common plan or arrangement) pursuant to which (i) more than
50% of the voting equity of Wellington is converted into or exchanged for cash, securities or other
property or Wellington conveys, transfers, leases or otherwise disposes of all or substantially all
of the assets of Wellington (other than (x) a transfer of such assets to one or more Affiliates of
Wellington or (y) any such transaction where the Persons who were the beneficial owners of the
outstanding voting equity of Wellington immediately prior to such transaction beneficially own,
directly or indirectly (including, without limitation, through one or more holding companies or
subsidiaries), 50% or more of the outstanding voting stock of the corporation or other entity
resulting from such transaction) or (ii) without limitation of clause (i), Persons who were the
beneficial owners of the outstanding voting equity of Wellington immediately prior to such
transaction beneficially do not own, immediately following such transaction directly or indirectly
(including, without limitation, through one or more holding companies or subsidiaries), 50% or more
of the outstanding voting stock of the corporation or other entity resulting from such
transaction). Notwithstanding the foregoing, (x) the admittance and withdrawal of partners of
Wellington in the ordinary course shall not be a Wellington Change of Control Event and (y) the
partners of Wellington shall not be deemed to be a “group” solely as a result of their status as
partners.

“Wellington Subadvised Percentage” shall equal:

(i) the Closing AUM Percentage, less

(ii) with respect to any Legacy Hartford Fund (or portion thereof) where a Trigger
Event occurs following the consummation of the Hartford Sale or HIG Change of Control Event
(as applicable), the quotient (expressed as a percentage) of (A) the assets under
management of such Legacy Hartford Fund (or portion thereof) that were subadvised by
Wellington immediately prior to the Trigger Event divided by (B) the total assets under
management of all Legacy Hartford Funds at such time, plus

 

10

 

(iii) with respect to any Hartford Fund not subadvised by Wellington at the
consummation of the Hartford Sale or HIG Change of Control Event (as applicable) that
engages Wellington as subadviser following the consummation of the Hartford Sale or HIG
Change of Control Event (as applicable), the quotient (expressed as a percentage) of (A)
the assets under management of such Hartford Fund at the time of engagement that will be
subadvised by Wellington divided by (B) the total assets under management of
all Legacy Hartford Funds at such time. Any Hartford Fund (other than a Legacy
Hartford Fund) that engages Wellington as subadviser after the date of consummation of a
Hartford Sale or HIG Change of Control Event (as applicable) shall be treated as a Legacy
Hartford Fund solely for purposes of applying clauses (ii) and (iii) of this definition
(including in the case of a subsequent Trigger Event with respect to any such Hartford
Fund).

It is understood and agreed that any Legacy Hartford Fund in respect of which there is a Voluntary
Resignation by Wellington, at any time, shall be deemed to continue to be advised by Wellington
solely for purposes of the calculation of the Wellington Subadvised Percentage.

ARTICLE II

PREFERRED PARTNERSHIP

Section 2.1 Preferred Subadviser. (a) Subject to the terms and conditions of this Agreement (including Section 2.9),
Wellington shall be the preferred subadviser to the Hartford Funds. Subject to the terms and
conditions of this Agreement, each Hartford Adviser shall, and Hartford shall cause it to,
recommend Wellington to the Hartford Funds Boards as subadviser to the Hartford Funds on terms
substantially similar to the existing subadvisory agreements with Wellington (other than fee rates,
which shall be reasonably acceptable to Hartford and Wellington), and Wellington shall serve in
such capacity in each instance approved by the Hartford Funds Boards.

(b) Following the occurrence of a Trigger Event, no Hartford Adviser shall, and Hartford shall
not permit any of them to, enter into any agreement for a new advisory or subadvisory engagement
with respect to any Hartford Fund with any Person other than Wellington (including any Affiliate of
Hartford or internal management function) if, after giving effect to the applicable Trigger Event
and such new advisory or subadvisory agreement, Hartford believes in good faith that Wellington
would serve as subadviser to less than [***]% of the total assets under management of all of the
Hartford Funds (with such determination based upon the most recently reliable assets under
management data and with it being understood and agreed that any Hartford Fund in respect of which
there is a Voluntary Resignation by Wellington shall be deemed to continue to be advised by
Wellington solely for purposes of such calculation).

Section 2.2 Preferred Partner. Subject to the terms and conditions of this Agreement, Hartford shall be the preferred partner
of Wellington with respect to Covered Funds. Subject to the terms and conditions of this
Agreement, Hartford shall, and shall cause Hartford Investment Financial Services, LLC, Hartford
Securities Distribution Company, Inc., Hartford Life Distributors, LLC and any other registered
broker-dealer Affiliate who serves as a principal underwriter for a Hartford Fund or is primarily
engaged in wholesale distribution of the Hartford Funds to, use its good faith and commercially
reasonable efforts to promote the distribution in the U.S. broker-sold mutual fund market of the
Hartford Funds for which Wellington acts as subadviser.

Certain information in this exhibit, marked by “[***]” has been redacted and will be filed
separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities
Exchange Act of 1934, as amended. Confidential treatment has been requested with respect to the
redacted portions.

 

11

 

Section 2.3 Certain Restrictions on Wellington Subadvisory Business.

(a) Wellington shall not, without the prior written consent of Hartford, enter into any
agreement for a new engagement to (i) serve as the sole adviser or subadviser to any Covered Fund
or (ii) serve as the sole adviser to any separately managed account or unified management account
offered primarily to retail investors in the U.S. where, in the case of clauses (i) and (ii), such
Covered Fund or account is (A) sponsored by a Restricted Broker-Dealer and (B) offered on a
stand-alone basis to the end investor (i.e., the fund or account does not represent one of multiple
investment approaches in a bundled investment option).

(b) Wellington shall not enter into any agreement for a new engagement to subadvise any
Covered Fund that is not sponsored or managed by Hartford or a Hartford Adviser if, at the time of
entering into such an agreement, Wellington believes in good faith that the assets under management
of the new engagement at the time of initial funding will cause the Non-Hartford Covered Fund AUM
to exceed [***]% of WAUM (with such determination based upon the most recently available reliable
assets under management data).

(c) Prior to June 30, 2016, Wellington shall not enter into any agreement for a new engagement
to subadvise any fixed-income Covered Fund other than a Covered Fund sponsored or managed by
Hartford or a Hartford Adviser without the prior written consent of Hartford.

Section 2.4 Wellington Portfolio Managers. Wellington shall not assign an individual lead portfolio manager of any Hartford Fund(s) (or any
portion of any other Hartford Fund with a substantially similar investment approach managed by the
same individual) whose assets under management subadvised or otherwise managed by such individual
exceeds $[***] billion (with such determination based upon the most recently available reliable
assets under management data and determined, in the case of a lead portfolio manager that
contributes to any other Hartford Fund with a substantially similar investment approach and for
which the portfolio manager is not the lead portfolio manger, without regard to such other Hartford
Fund, i.e., to avoid any double-counting of assets under management) to serve as a lead portfolio
manager for a Covered Fund with a substantially similar investment approach to the applicable
Hartford Fund(s) not sponsored or managed by Hartford or one of its Affiliates; provided,
however, that an individual lead portfolio manager shall be permitted to manage a Covered
Fund where such individual acted as portfolio manager to such Covered Fund at the time the assets
under management of such Hartford Fund(s) exceeded $[***] billion. In addition, Wellington shall
not assign an individual lead portfolio manager responsible for any Hartford Fund(s) listed on
Schedule E hereto to serve as a lead portfolio manager for a Covered Fund with a
substantially similar investment approach to the applicable Hartford Fund(s) not sponsored by
Hartford or one of its Affiliates; provided, however, that this restriction shall
cease to apply to the relevant portfolio manager when any milestone set forth on Schedule E
for the applicable Covered Fund
is not achieved. The list of Hartford Funds on Schedule E may be amended only upon the
mutual written agreement of the Parties.

Certain information in this exhibit, marked by “[***]” has been redacted and will be filed
separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities
Exchange Act of 1934, as amended. Confidential treatment has been requested with respect to the
redacted portions.

 

12

 

Section 2.5 Fixed Income Hartford Funds. No later than December 31, 2012, each Hartford Adviser shall, and Hartford shall cause it to,
recommend to the Hartford Funds Board that Wellington be engaged as subadviser on all existing
fixed income funds identified on Schedule F (together with any successor thereto whether by
merger or otherwise, the “Fixed Income Fund Mandates”); provided that, if an event
involving Wellington occurs after the date hereof that a Hartford Adviser determines prevents it
from making a recommendation for any Fixed Income Fund Mandate as a result of the Hartford
Adviser’s exercise of its fiduciary duties to the applicable Fixed Income Fund Mandate, the
Hartford Adviser shall not be required to make such recommendation.

Section 2.6 Wellington Termination Right. Notwithstanding any other provision of this Agreement, Wellington shall have the right
to terminate the provisions of this Article II within 60 days following (i) a breach of 2.1(b) by
Hartford or a Hartford Adviser, (ii) the date on which Wellington receives notice from Hartford
(or, if earlier, the date on which Wellington discovers) that any Hartford HLS Fund ceases to be
offered as an investment option within the variable annuity and variable life contracts issued by
Hartford or its Affiliates on the date hereof (including, for the avoidance of doubt, if Hartford
or one of its Affiliates obtains a substitution order to replace any such Hartford HLS Fund) or
(iii) the five year anniversary of this Agreement. For the avoidance of doubt, this Section 2.6
shall not give Wellington the right to terminate this Agreement under Section 9.2.

Section 2.7 Hartford Termination Right. Notwithstanding any other provision of this Agreement, the obligations of Hartford
under Sections 6.4 and 9.4 shall terminate automatically without further action by the Parties if
Wellington breaches its obligations under Sections 2.3 or 2.4 of this Agreement. In addition,
Hartford shall have the right to terminate the provisions of this Article II within 60 days
following (i) a breach by Wellington of its obligations under Section 2.3 or 2.4 or (ii) the
five-year anniversary of this Agreement. For the avoidance of doubt, this Section 2.7 shall not
give Hartford the right to terminate this Agreement under Section 9.2.

Section 2.8 No Further Restrictions on HIMCO. Subject to the terms of this Agreement (including Sections 2.5, 2.6, 9.2(b)(ii) and 9.4), HIMCO
shall not be restricted in its
ability to subadvise open-end, closed-end or actively managed exchange-traded funds (regardless of
whether such funds are registered under the Investment Company Act).

Section 2.9 Fiduciary Duties.

(a) The Parties acknowledge that, to the extent provided by Applicable Law, (i) Wellington is
a fiduciary to the Hartford Funds in its capacity as an investment adviser to the Hartford Funds
for which it serves as subadviser and (ii) each Hartford Adviser is a fiduciary to the Hartford
Funds for which it serves as investment adviser. Wellington acknowledges and agrees that Hartford
shall not be deemed to have breached its obligations under Section 2.1(a) hereof to the extent that
a failure to retain, hire or recommend Wellington for any subadvisory assignment under this
Agreement is as a result of a Hartford Adviser’s exercise of its fiduciary duties to the applicable
Hartford Fund(s) or the exercise by the Hartford Funds Board of its fiduciary duties. For the
avoidance of doubt, the

 

13

 

Parties acknowledge and agree that (A) other than as expressly provided in
the immediately preceding sentence, this Section 2.9 is not intended to, and shall not, modify,
qualify, limit or in any way affect any of the contractual rights or obligations of the Parties
under this Agreement and (B) notwithstanding the immediately preceding sentence, any action or
failure to act by Hartford or one of its Affiliates or the Hartford Funds Board (including a
decision to terminate or fail to hire Wellington as subadviser to a Hartford Fund) due, in whole or
in part, to the exercise (or purported exercise) of a Hartford Adviser’s or the Hartford Funds
Board’s fiduciary obligation shall not impact the inclusion or exclusion of the assets under
management of or fees payable in respect of any Hartford Fund for any calculation under this
Agreement (including for purposes of Sections 2.6, 9.2 and 9.4).

(b) In the event that any Hartford Adviser determines that it is required to recommend the
termination of Wellington or is not able to recommend the hiring or continuation of Wellington as a
subadviser to any Hartford Fund as a result of a Hartford Adviser’s exercise of its fiduciary
duties to the applicable Hartford Fund(s), the Hartford Adviser shall provide notice (which may be
oral) of any such determination to Wellington, with such notice containing a detailed explanation
of the reasons for such determination. Such notice shall be provided to Wellington a reasonable
amount of time prior to the time that the Hartford Funds Board is notified of such determination.

Section 2.10 Update of Certain Schedules. Within 10 Business Days after the end of each calendar year (other than 2011), Hartford shall
deliver to Wellington an updated Schedule C that reflects any changes to such schedule as
determined pursuant to the definition of “Restricted Broker-Dealer.” Within 30 days after the
delivery of any updated Schedule C, Wellington shall inform Hartford if any new Person
listed thereon is covered by the last sentence of the definition of “Restricted Broker-Dealer”,
each of whom shall be removed from the updated Schedule C. In the event that either party
objects to any change or failure to make a change to any updated Schedule C, the provisions
of Section 8.1 shall apply.

ARTICLE III

FEES

Section 3.1 Agreement With Respect to Fees.

(a) Fees. Subject to the terms of this Agreement, the Hartford Advisers shall, and Hartford
shall cause them to, recommend to the Hartford Funds Board the fee schedule described in
Schedule G for each Hartford Fund identified therein.

(b) Certain Fee Reductions. The new subadvisory fees to be implemented for the funds
identified in paragraph 2 of Schedule G are contingent on (i) the approval of the Hartford
Funds Board and (ii) the Hartford Funds Board and Hartford reducing the Total Expense Ratio
(“TER”) on each of these funds as provided in paragraph 2 of Schedule G. If the
TER for any such fund increases for any reason (including via increased management fees or fee
waiver removal, lapse or modification), Wellington shall be entitled to share pro rata in such
increase.

 

14

 

(c) Prospective Fee Changes. Wellington shall not request that the Hartford Funds Board
increase the fee rate payable by any existing Hartford Fund to which Wellington provides
subadvisory services. The Hartford Advisers shall not, and Hartford shall not permit them to,
recommend to the Hartford Funds Board any reduction in the rate of any subadvisory fee payable by
any Hartford Fund (including those described in Section 3.1(f)) to which Wellington provides
subadvisory services.

(d) Participation in Fee Reductions. Wellington and Hartford agree to share pro rata in any
reduction in the fee rate paid by any existing Hartford Fund initiated by the Hartford Funds Board,
including any fee waiver, as a result of any changes to the fee structure or computation
implemented by the Hartford Funds Board; provided, however, that Wellington shall
have an opportunity to discuss with the Hartford Funds Board any proposed reduction in such fee
rate a reasonable amount of time prior to the Hartford Funds Board voting on such reduction. For
the avoidance of doubt, Wellington shall not bear any portion of a fee decrease (however occurring)
that is not initiated by the Hartford Funds Board.

(e) Participation in Fee Increases. Wellington and Hartford agree to share pro rata in any
increase in the fee rate paid by any Hartford Fund, including via a removal, lapse or modification
of any fee waiver, as a result of any changes to the fee structure or computation implemented by
the Hartford Funds Board.

(f) Allocation Services Fees. The fee rate for asset allocation services to the Hartford
Funds and Hartford-managed 529 plans to be provided by Wellington shall be as set forth on
Schedule H. Wellington and Hartford agree to share pro rata in any reduction in the fee
rate paid by any such Hartford Fund initiated by the Hartford Funds Board, including any fee waiver
in excess of the fee waiver in effect as of the date hereof, as a result of any changes to the fee
structure or computation implemented by the Hartford Funds Board. For the avoidance of doubt,
Wellington shall not bear any portion of a fee decrease (however occurring) that is not initiated
by the Hartford Funds Board.

Section 3.2 Fee Waivers for Fixed Income Mandates. Wellington shall implement a fee waiver program for each Fixed Income Fund Mandate that (i)
maintains that subadvisory fee in effect as of the date of this Agreement on each of the Fixed
Income Fund Mandates for the first two years Wellington subadvises each fund; and (ii) beginning
with the first year after the initial two-year period described in clause (i), reduces the fee
waiver by one third each year such that at the beginning of the fifth year that Wellington
subadvises such funds, the fee waiver shall be equal to zero.

 

15

 

ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF HARTFORD

Each Hartford Party severally but not jointly represents and warrants to Wellington as follows
as of the date hereof, with each Hartford Party representing and warranting to Wellington only as
to those items that are specifically applicable to each such entity:

Section 4.1 Organization and Standing. Hartford is a corporation duly incorporated, validly existing and in good standing under the
laws of the State of Delaware. HLI is a corporation duly incorporated, validly existing and in
good standing under the laws of the State of Delaware. Each of the Hartford Advisers is a limited
liability company duly organized, validly existing and in good standing under the laws of the State
of Delaware or the State of Connecticut, as applicable. Each Hartford Party is duly qualified to do
business and is in good standing in each jurisdiction in which such qualification is required for
the conduct of its business, except where the failure to be so qualified is not reasonably likely
to have a Material Adverse Effect. Each Hartford Party has in effect all federal, state, local and
foreign governmental authorizations required for it to carry on its business, except where the
failure to obtain such authorizations is not reasonably likely to have a Material Adverse Effect.

Section 4.2 Power and Authority. Each Hartford Party has full corporate or limited liability power and authority, as the case may
be, to carry on its business as presently being conducted and to execute and deliver this Agreement
and to perform its obligations hereunder. The execution and delivery of this Agreement has been
duly authorized by all necessary corporate action on the part of each Hartford Party. Assuming the
due authorization, execution and delivery of this Agreement by Wellington, this Agreement
constitutes a legal, valid and binding obligation of each Hartford Party, enforceable against it in
accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency,
reorganization, moratorium or similar laws relating to or affecting creditors generally.

Section 4.3 Non-Contravention; Consents.

(a) The execution, delivery and performance of this Agreement by each Hartford Party will not
(i) violate, conflict with, or result in a breach of any provisions of, or constitute a default (or
an event which, with notice or lapse of time or both, would constitute a default) under, or result
in the termination of, or accelerate the performance required by, or result in a right of
termination or acceleration (which is not expressly and permanently waived) under, or result in the
creation of any Encumbrance upon any material assets of Hartford (or any of its
Affiliates) under any of the terms, conditions or provisions of, (x) the organizational
documents of Hartford (or the constituent documents of any of its Affiliates, as applicable), or
(y) any note, bond, mortgage, indenture, deed of trust, license, lease, agreement or other
instrument or obligation to which Hartford (or any of its Affiliates) is a party or by or to which
it or any of its properties may be bound or subject; or (ii) violate in any material respect any
Applicable Law.

(b) No material notice to, filing with, authorization of, exemption by, order or permit from,
or consent or approval of, any Governmental Authority is necessary for any Hartford Party to enter
into this Agreement or to complete any of the actions contemplated hereunder.

 

16

 

ARTICLE V

REPRESENTATIONS AND WARRANTIES OF WELLINGTON

Wellington represents and warrants to the Hartford Parties as follows as of the date hereof:

Section 5.1 Organization and Standing. Wellington is a limited liability partnership duly organized, validly existing and in good
standing under the laws of the Commonwealth of Massachusetts. Wellington is duly qualified to do
business and is in good standing in each state in which such qualification is required for the
conduct of its business except where the failure to be so qualified is not reasonably likely to
have a Material Adverse Effect. Wellington has in effect all federal, state, local and foreign
governmental authorizations required for it to carry on its business, except where the failure to
obtain such authorizations is not reasonably likely to have a Material Adverse Effect.

Section 5.2 Power and Authority. Wellington has full power and authority to carry on its business as presently being conducted.
Wellington has all requisite limited liability partnership power and authority to execute and
deliver this Agreement and to perform its obligations hereunder. The execution and delivery of
this Agreement has been duly authorized by all requisite action on the part of Wellington.
Assuming the due authorization, execution and delivery of this Agreement by Hartford, this
Agreement constitutes a valid and binding obligation of Wellington, enforceable against it in
accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency,
reorganization, moratorium or similar laws relating to or affecting creditors generally.

Section 5.3 Non-Contravention; Consents.

(a) The execution, delivery and performance of this Agreement by Wellington will not (i)
violate, conflict with, or result in a breach of any provisions of, or constitute a default (or an
event which, with notice or lapse of time or both, would constitute a default) under, or result in
the termination of, or accelerate the performance required by, or result in a right of termination
or acceleration (which is not expressly and permanently waived) under, or result in the creation of
any Encumbrance upon any material assets of Wellington (or any of its Affiliates) under any of the
terms, conditions or provisions of, (x) the organizational documents of Wellington (or the
constituent documents of any of its Affiliates, as applicable), or
(y) any note, bond, mortgage, indenture, deed of trust, license, lease, agreement or other
instrument or obligation to which Wellington (or any of its Affiliates) is a party or by or to
which it or any of its properties may be bound or subject; or (ii) violate in any material respect
any Applicable Law.

(b) No material notice to, filing with, authorization of, exemption by, order or permit from,
or consent or approval of, any Governmental Authority is necessary for Wellington to enter into
this Agreement or to complete any of the actions contemplated hereunder.

 

17

 

ARTICLE VI

COVENANTS

Section 6.1 Brand.

(a) Subject to mutually agreed documentation between Wellington and the Hartford Funds,
Wellington shall permit the Hartford Funds to use the term “WMC” in the
name of any fund so long as
it is (i) subadvised solely by Wellington and (ii) the applicable Hartford Fund name also includes
the name of the Hartford Fund family (e.g., “Hartford”). Hartford hereby acknowledges and agrees
that it and its Affiliates shall not acquire any right, title or interest in or to and shall not
register (or cause the Hartford Funds to register) the term “WMC” (either alone or in connection
with other words or terms), which term “WMC” is and shall remain the exclusive property of
Wellington. The foregoing permitted use is subject to compliance by the Hartford Funds with such
use and quality control requirements and guidelines as may be reasonably requested by Wellington.

(b) No Party shall use any written materials that include the other Party’s name or brand or
any variation thereof or that are otherwise supplied by the other Party without the prior written
consent of the other Party, which consent shall not be unreasonably withheld, delayed or
conditioned.

Section 6.2 Periodic Certifications

(a) No later than five Business days following the date on which Wellington enters into an
agreement with respect to an engagement described in Section 2.3(b), Wellington shall deliver a
certificate to Hartford, signed by an Executive Officer of Wellington, setting forth, to the
knowledge of such Executive Officer, the amount of Non-Hartford Covered Fund AUM and WAUM (which
the Parties acknowledge will be based upon information obtained from third parties and thus will be
subject to any errors or omissions that may be contained therein) and indicating the date(s) as of
which such amounts were determined.

(b) No later than five Business days following a Trigger Event, Hartford shall deliver a
certificate to Wellington, signed by an Executive Officer of Hartford, setting forth to the
knowledge of such Executive Officer (i) for purposes of Section 2.6(i), the amount of assets under
management of the Hartford Funds and the amount of such assets under management subadvised by
Wellington and indicating the date(s) as of which such amounts were determined and (ii) for
purposes of Section 9.4, the assets under management of the applicable
Legacy Hartford Fund and the total assets under management for all Legacy Hartford Funds
determined as of the specified measurement date.

(c) No later than ten Business days following the end of each calendar year (other than 2011),
Wellington and Hartford shall deliver a certificate to the other, signed by an Executive Officer
thereof, certifying that (i) in the case of Wellington, it has complied with its obligations under
Sections 2.3, 2.4 and 3.1(c) and (ii) in the case of Hartford, it has complied with its obligations
under Sections 2.1 (second sentence only) and 3.1(c).

Section 6.3 Notice of a Hartford Sale. (a) Promptly following a decision by Hartford or one of its Affiliates to take
substantial steps to explore a potential Hartford Sale, including where Hartford (i) solicits
formal interest in a potential Hartford Sale from any Person (other than a controlled, wholly-owned
Affiliate of Hartford), (ii) hires an investment banker or broker to explore a potential Hartford
Sale or (iii) engages in substantive negotiations with any Person (other than a controlled,
wholly-owned Affiliate of Hartford) regarding a potential Hartford Sale, Hartford shall provide
written notice to Wellington (a “Preliminary Hartford Sale Notice”), which

 

18

 

notice shall
describe in reasonable detail the nature of the action(s) triggering
the notice (including whether
a Person who is a Consolidator is a potential purchaser (or other Person participating in or
providing equity financing for the ROFR Sale)). Wellington may, at its option, elect to
participate as a bidder in any process involving a potential HMF Sale, so long as such potential
HMF Sale is to a Consolidator or is part of a common process whereby multiple bidders are
solicited, on the same basis afforded to any other third party (which would include any term or
condition as to the timing to submit a proposal); provided, however, that this
opportunity of Wellington to participate as a bidder excludes any situation where Hartford has
elected to negotiate exclusively with a single non-Consolidator bidder. Hartford shall keep
Wellington informed on a current basis as to the status of any potential Hartford Sale as well as
any material developments related to such proposed Hartford Sale. Within five Business Days of
entering into a definitive written agreement that, if consummated would create a Hartford Sale
(other than a Hartford Sale to Wellington), Hartford shall provide written notice to Wellington of
such Hartford Sale; provided, however, that for the purposes of this Section 6.3, any notice
requirement shall be satisfied upon any filing related to such transaction pursuant to the EDGAR
system.

(b) In furtherance of Section 6.3(a), in connection with a ROFR Sale, subject to Wellington
executing a non-disclosure agreement reasonably acceptable to Hartford and Wellington, from and
after the delivery of the applicable Preliminary Hartford Sale Notice until the time, if any, that
a potential HMF Sale is no longer a ROFR Sale (which period shall, for the avoidance of doubt,
continue after the time, if any, that Wellington ceases to participate in the sales process),
Hartford shall (and shall cause its Affiliates and representatives to), in connection with such
ROFR Sale:

(i) provide Wellington and its representatives and financing sources with the
same level of access to the properties, books and records and employees of Hartford
and its Affiliates to conduct its due diligence review of the HMF Business as is
provided to other potential purchasers;

(ii) as is reasonably requested by Wellington, discuss the status and timing of
the sale process with Wellington and its representatives and financing sources;

(iii) promptly provide Wellington with written information regarding the
structure, type and amount of consideration and other material terms related to any
proposed ancillary commercial or strategic relationship contained in the bids
received by any Consolidators in the second or later round (or first round where
there is only one round) of the sales process (provided that the identity
and any information that could reasonably be expected to reveal the identity of the
Consolidator shall in no event be provided; provided further that
such written information shall include a reasonable description of the nature and
extent of the business of any Consolidator (without identifying such Consolidator by
name) to the extent necessary for Wellington to evaluate the structure, type or
amount of consideration or other material terms related to any proposed ancillary
commercial or strategic relationship); and

 

19

 

(iv) promptly provide Wellington with copies of drafts (and mark-ups) of the
primary and ancillary transaction agreements provided to or received from a
Consolidator described in clause (iii) (provided that (A) the identity and
any information that could reasonably be expected to reveal the identity of the
Consolidator as well as any information regarding the Consolidator’s intentions with
respect to the post-closing operations of the HMF Business to the extent related to
Wellington shall be redacted and (B) notwithstanding clause (A), as soon as
practicable prior to the delivery of the ROFR Notice (which shall not be later than
the time Hartford selects a single Consolidator to pursue the ROFR Sale), Hartford
shall disclose the name of the Consolidator who is the winning bidder).

(c) Within five Business Days of the closing of a Hartford Sale to any Person other than
Wellington, Hartford shall provide written notice to Wellington of such Hartford Sale.

Section 6.4 Right of First Refusal.

(a) Prior to entering into any definitive agreement for a ROFR Sale, Hartford shall provide
written notice to Wellington (the “ROFR Notice”). The ROFR Notice shall describe in
reasonable detail the proposed ROFR Sale, including the name of the Consolidator, the structure,
type and amount of all consideration to be paid in connection therewith and a copy of the primary
transaction agreement and, to the extent necessary for Wellington to evaluate the structure, type
or amount of consideration or other material terms related to any proposed ancillary commercial or
strategic relationship to be entered into in connection with the proposed HMF Sale, any applicable
ancillary agreement (each in substantially agreed form. Wellington shall have the right,
exercisable in writing (a “ROFR Exercise Notice”) within ten Business Days of the receipt
of the ROFR Notice (the “ROFR Election Period”), to elect to purchase the HMF Business in
the place of the potential purchaser(s) on substantially similar material terms and conditions as
those set forth in the ROFR Notice;
provided that the type of consideration may provide for the substitution of cash in
lieu of non-cash consideration (which will include the value of any commercial or strategic
relationship to be entered into between Hartford or one of its Affiliates and a Consolidator as
part of the ROFR Sale). In the event that Wellington delivers a ROFR Exercise Notice and
Wellington and Hartford cannot agree on the valuation of any such relationship on or prior to the
end of the 15 Business Day period in Section 6.4(b) (as may be extended), (x) the procedures of
Section 9.5 shall apply to the determination of such value and (y) any signing and closing of any
transaction between Wellington and Hartford shall not be subject to the agreement by them of such
value on or prior to the end of the 15 Business Day period in Section 6.4(b) as may be extended
(but subject to payment by Wellington of the amount determined in accordance with the procedures
set forth in Section 9.5 at closing). For the avoidance of doubt, Wellington may elect to have one
or more third parties (including an equity and/or debt financing provider) participate in the
applicable proposed ROFR Sale.

 

20

 

(b) Following delivery of a ROFR Exercise Notice, Hartford and Wellington shall negotiate in
good faith for 15 Business Days (as may be extended pursuant to this Section 6.4(b) in the
immediately succeeding sentence) the terms and conditions of the
definitive transaction agreements. If Hartford and Wellington do not execute and deliver to one
another the definitive transaction agreements within 15 Business Days of the delivery of the ROFR
Exercise Notice (which period may be extended upon the mutual written agreement of the Parties for
an additional seven Business Days if, at the end of the 15 Business Day period, the Parties are in
substantial agreement as to the primary transaction agreement), Hartford shall be free for a period
of 45 Business Days thereafter to execute and deliver all of the definitive transaction agreements
described in the ROFR Notice for the ROFR Sale, which sale shall be on the same material terms and
conditions as were set forth in the ROFR Notice (or on terms and conditions that are no more
favorable to the purchaser (or other Person participating in or providing equity financing for the
ROFR Sale) than the terms and conditions in the ROFR Notice). If the ROFR Sale is not consummated
within 365 days from the execution and delivery of definitive documents in the ROFR Notice for the
ROFR Sale, such proposed ROFR Sale shall require a new ROFR Notice and the provisions of this
Section 6.4 shall apply anew to such proposed ROFR Sale.

(c) If Wellington has not delivered a ROFR Exercise Notice by the expiration of the ROFR
Election Period, Hartford shall be free for a period of 45 Business Days thereafter to execute and
deliver all of the definitive agreements described in the ROFR Notice for the ROFR Sale, which sale
shall be on the same material terms and conditions as were set forth in the ROFR Notice (or on
terms and conditions that are no more favorable to the purchaser (or other Person participating in
or providing equity financing for the ROFR Sale) than the terms and conditions in the ROFR Notice).
In the case of any proposed ROFR Sale (i) where any material term or condition changes from that
term or condition as set forth in the ROFR Notice (other than a term or condition that is not more
favorable to the purchaser (or other Person participating in or providing equity financing for the
ROFR Sale) than the applicable term or condition in the ROFR Notice) or (ii) in respect of which a
ROFR Exercise Notice is not delivered and (A) where all of the definitive agreements described in
the ROFR Notice are not executed and delivered within the aforementioned 45 Business Day period or
(B) the ROFR Sale is not consummated within 365 days from the execution and delivery of definitive
documents, such proposed ROFR Sale shall require a new ROFR Notice and the provisions of this
Section 6.4 shall apply anew to such proposed ROFR Sale.

Section 6.5 Notice of Wellington Change of Control Event. In the event that Wellington enters into a definitive written agreement that, if consummated,
will create a Wellington Change of Control Event, Wellington shall provide written notice to
Hartford promptly following the time that Wellington notifies any client of such Wellington Change
of Control Event; provided, however, that for the purposes of this Section 6.5, any notice
requirement shall be satisfied upon any filing related to such transaction pursuant to the EDGAR
system.

Section 6.6 Notice of HIG Change of Control Event. In the event that Hartford or any Affiliate of Hartford enters into a definitive written
agreement that, if consummated, will create a HIG Change of Control Event, Hartford shall provide
prompt written notice to Wellington (“HIG Change of Control Notice”); provided,
however, that for the purposes of this Section 6.6, any notice requirement shall be
satisfied upon any filing related to such transaction pursuant to the EDGAR system.

 

21

 

Section 6.7 IPO or Spin Out. Promptly following such time, if any, as Hartford or its Affiliates decides to take substantial
steps to undertake an initial public offering of the HMF Business or a spin-out transaction of the
HMF Business, Hartford shall provide to Wellington notice of such fact (which notice may be oral).

ARTICLE VII

CONFIDENTIALITY

Section 7.1 Treatment of Confidential Information. Subject to Section 7.2, each Party shall, and shall cause its Affiliates to, hold all
Confidential Information in strict confidence and shall not disclose any Confidential Information
to any Person, except to directors, officers, partners, stockholders, employees and advisors of a
Party or its Affiliates who need to know such information solely for the purpose of this Agreement,
have been informed of the confidential nature of the Confidential Information and are bound by
written agreements with the disclosing Party which contain restrictions regarding disclosure and
use of the Confidential Information comparable to and no less restrictive than those set forth
herein. Each Party shall take at least the same degree of care that each uses to protect its own
confidential and proprietary information and materials of similar nature and importance to protect
the confidentiality and avoid the unauthorized use, disclosure, publication or dissemination of any
Confidential Information.

Section 7.2 Permitted Disclosure. (a) Notwithstanding Section 7.1, prior to making any regulatory filing with a
Governmental Authority of this Agreement or the information contained herein (including a Form 8-K
or Form 10-K filed by Hartford), the disclosing Party shall provide the other Party with a
reasonable opportunity to comment on such documents and the redacted form of such documents, as
applicable.

(b) Notwithstanding Section 7.1, in the event that any Party is requested under Applicable Law
(including by oral questions, interrogatories, requests for information or documents, subpoena,
civil investigative demand or similar process) to disclose Confidential Information, it is agreed
that the disclosing Party shall provide the other Party with prompt notice of such event (to the
extent possible) so that the non-disclosing Party may seek a protective order or other appropriate
remedy or waive compliance with the applicable provisions of this Agreement by the disclosing
Party; it being understood and agreed that, in the event that any Party, in the reasonable judgment
of its counsel, is required under Applicable Law (including by oral questions, interrogatories,
requests for information or documents, subpoena, civil investigative demand or similar process), to
disclose Confidential Information, the disclosing Party may make such disclosures as required under
such Applicable Law. In the event the non-disclosing Party determines to seek such protective order
or other remedy, the disclosing Party shall cooperate with the non-disclosing Party in seeking such
protective order or other remedy. In the event that such protective order or other remedy is not
obtained and disclosure of Confidential Information is required, or the non-disclosing Party grants
a waiver hereunder, (i) the disclosing Party (A) may, without liability hereunder furnish that
portion (and only that portion) of the Confidential Material which, based upon the written advice
of counsel to the disclosing Party, such Party is legally required to disclose and (B) shall
exercise its commercially
reasonable efforts to have confidential treatment accorded any Confidential Information so
furnished and (ii) the Parties agree to consult with each other as to the form and substance of
such disclosure and provide the other with a reasonable time to review and comment on such
disclosure as and to the extent possible.

 

22

 

Section 7.3 Effect of Termination. Upon termination of this Agreement, or at any time at any Party’s request, all Parties shall (i)
immediately cease any and all use of the other Party’s Confidential Information in any way for any
purpose, (ii) promptly, at the other Party’s instruction, either return to the other Party or
destroy all materials (in written, electronic or other form) containing or constituting
Confidential Information disclosed hereunder, including any and all copies, extracts, summaries and
derivatives thereof, except that one copy of each such document or other media may be maintained
for archival purposes, subject to protection and non-disclosure in accordance with the terms of
this Agreement and (iii) as promptly as is reasonably practicable, cease any and all use of the
other Party’s name, brand or any variation thereof. Upon the request of one Party, the other Party
shall certify in writing the completion of such return and/or destruction.

Section 7.4 Ownership of Confidential Information. Each Party retains all right, title and interest in and to its own Confidential Information. No
Party acquires any license or right to any Confidential Information or any intellectual property
rights or other rights owned by the other Party, by implication or otherwise, except the limited
right to use such Confidential Information solely for a purpose related to the subject matter of
this Agreement but in all cases subject to the provisions of this Agreement (including Section
7.1).

Section 7.5 Disclosure Related to Sale. Notwithstanding any provision of this Agreement to the contrary, in connection with a Hartford
Sale or HIG Change of Control Event or Wellington Change of Control Event or as part of any due
diligence process related thereto, no Confidential Information of any Party (other than the
existence and terms of this Agreement, including an unredacted version of this Agreement, which may
not be provided prior to the delivery of a Preliminary Hartford Sale Notice in the case of a
Hartford Sale) may be provided by any Party to any Person without the prior written consent of the
other Parties.

Section 7.6 Equitable Relief. Each Party understands and agrees that, because of the unique nature of the Confidential
Information, the Parties may suffer irreparable harm if the any Party fails to comply with any of
its obligations under this Article VII, and monetary damages may be inadequate to compensate the
injured Party for such breach. Accordingly, the Parties agree that each Party shall, in addition
to any other remedies available to them under this Agreement, be entitled to seek injunctive or
equitable relief to enforce the terms of this Article VII without posting a bond or other
undertaking.

 

23

 

ARTICLE VIII

DISPUTE RESOLUTION

Section 8.1 Disputes; Resolution by Executive Officers. The Parties recognize that disputes as to certain matters may from time to time arise during the
term of this Agreement. It is the desire of the Parties to facilitate the resolution of disputes
arising under this
Agreement in an expedient manner by mutual cooperation and without resort to arbitration or litigation. To
accomplish this objective, prior to the commencement of any litigation proceedings the Parties
agree that, subject to Section 8.2, any disputes, controversies or differences which may arise
between the Parties out of or in relation to or in connection with this Agreement shall be promptly
presented to one or more of the Executive Officers for resolution. Upon receipt of notice of such
dispute, controversy, or difference, one or more of the Executive Officers may request, and the
Parties shall promptly (and in any event within five (5) Business Days) provide, such further
information and documentation that is available to each Party and reasonably required to verify and
evaluate the dispute, controversy, or difference. If the matter is not resolved within 30 Business
Days following receipt by one or more the Executive Officers of all requested information and
documentation, then any Party may thereafter pursue litigation proceedings.

Section 8.2 Injunctive Relief. Nothing in this Article VIII will preclude any Party from seeking equitable relief or interim or
provisional relief from a court of competent jurisdiction, including a temporary restraining order,
preliminary injunction or other interim equitable relief, concerning a dispute either prior to or
during any dispute resolution under Section 8.1 if necessary to protect the interests of such
Party, prevent material harm to such Party or to preserve the status quo pending the resolution of
the dispute.

ARTICLE IX

TERM AND TERMINATION OF PREFERRED

PARTNERSHIP; MAKE-WHOLE PAYMENT

Section 9.1 Term. Subject to the provisions of Section 9.2 below, the term of this Agreement (as extended at any
time by the parties in their respective sole discretions by mutual written agreement, the
“Term”) shall commence on the date hereof and shall continue through June 5, 2018. No
later than June 5, 2016 and, to the extent the Term is extended, no later than June 5 of each year
thereafter, one or more Executive Officer of each Party will meet to discuss an extension of the
Term; provided that no Party shall have any obligation to extend the Term (which decision will be
made by each Party in its sole discretion) or negotiate such an extension in good faith.

Section 9.2 Termination.

(a) This Agreement shall terminate automatically without further action by the Parties upon:

(i) the closing of a Hartford Sale or HIG Change of Control Event; or

(ii) the closing of a Wellington Change of Control Event.

 

24

 

(b) This Agreement may be terminated by written notice from the terminating Party to the other
Parties as follows:

(i) by Wellington, within 90 days following (A) December 31, 2012, if Fixed
Income Fund Mandates representing at least [***]% of the total subadvisory revenues
from the Fixed Income Fund Mandates for the twelve months ended December 31, 2012
have not entered into subadvisory contracts with Wellington that are in effect on
December 31, 2012 or (B) June 30, 2013, if Fixed Income Fund Mandates representing
[***]% of the assets under management of the Fixed Income Fund Mandates as of June
30, 2013 have not entered into subadvisory contracts with Wellington that are in
effect on June 30, 2013;

(ii) by either Wellington or Hartford, without cost or penalty (including
attorneys’ fees and costs), if at any time there is (A) any violation by the other
Party of Applicable Law or violation of or default under any authorization of,
exemption by, order or permit from any Governmental Authority relating to the HMF
Business or Wellington or (B) any formal investigation into the foregoing or (C) any
lawsuit or other legal proceeding involving the Hartford Parties or any
broker-dealer referred to in Section 2.2, any Hartford Fund or Wellington that, in
the case of clauses (A), (B) and (C), is reasonably likely to have a material
adverse effect on the Hartford Funds and that, if curable, remains uncured for a
period of 180 days (the “Cure Period”) following the earlier of the
discovery or receipt of written notification thereof; provided,
however, that any termination right under this Section 9.2(b)(ii) shall be
deemed waived if not exercised within 60 days following the expiration of the Cure
Period, provided that in the case of a formal investigation or pending lawsuit or
other legal proceeding the Cure Period shall not commence until the final
determination thereof;

(iii) by either Wellington or Hartford, without cost or penalty (including
attorneys’ fees and costs) but subject to Section 9.3(d), if a Bankruptcy Event
occurs with respect to the other Party; or

(iv) the closing of an initial public offering or spin-out transaction, as
applicable, of the HMF Business prior to June 5, 2014, if and only if Wellington has
provided written notice to Hartford indicating it has elected to terminate this
Agreement upon (and subject to) such consummation.

Section 9.3 Effect of Termination

In the event of termination of this Agreement pursuant to Section 9.2, this Agreement shall
forthwith become void and have no effect without any liability on the part of any Party, other than
the provisions set forth in

(a) Article VII and Article X;

(b) solely in the case of a termination pursuant to Section 9.2(a)(i), Sections 9.4 and 9.5;

Certain information in this exhibit, marked by “[***]” has been redacted and will be filed
separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities
Exchange Act of 1934, as amended. Confidential treatment has been requested with respect to the
redacted portions.

 

25

 

(c) solely in the case of a termination pursuant to Section 9.2(b)(i) if, and only if,
Hartford has breached its obligations under Section 2.5 hereof and a definitive agreement for a
Hartford Sale or HIG Change of Control Event (as applicable) is entered into within five years of
such termination under Section 9.2(b)(i), Sections 9.4 and 9.5; and

(d) solely in the case of a termination pursuant to Section 9.2(b)(iii) if, and only if, a
Bankruptcy Event occurs with respect to any Hartford Party other than Hartford (but not, for the
avoidance of doubt, upon a Bankruptcy Event of Hartford), Sections 9.4 and 9.5.

The provisions set forth in clauses (a), (b), (c) and (d) above shall survive any termination and
remain in full force and effect according to their terms. Notwithstanding the foregoing, no Party
shall be relieved or released from any liability arising out of its willful breach of any provision
of this Agreement (including reasonable attorneys’ fees and expenses in connection with the
enforcement of such Party’s rights under this Agreement).

Section 9.4 Make-Whole Payment.

(a) If, at the time of the closing of a Hartford Sale or HIG Change of Control Event (as
applicable) or anytime during the five-year period following such closing, the Wellington
Subadvised Percentage is less than [***]% after giving effect to the applicable Trigger Event,
Hartford shall make a cash payment to Wellington (a “Make-Whole Payment”) in an amount
equal to the product of (i) the Total Enterprise Value in respect of the Hartford Sale or HIG
Change of Control Event (as applicable) times (ii)(A) in the case of an HMF Sale or a HIG Change of
Control Event, [***] and (B) in the case of a Non-HMF Sale, [***]. The Make-Whole Payment only
shall be payable once, with respect to the first to occur of any Hartford Sale or HIG Change of
Control Event, as applicable.

(b) A Make-Whole Payment shall be made no later than 15 Business Days following the date on
which the applicable Trigger Event occurred (or, if later, the date on which Total Enterprise Value
is finally determined). A Make-Whole Payment shall be made by wire transfer of immediately
available U.S. federal funds to the account or accounts designated in writing by Wellington no less
than two Business Days prior to the Make-Whole Payment date.

(c) For the avoidance of doubt, a Hartford Sale or HIG Change of Control Event (as applicable)
and Trigger Event and resulting Make-Whole Payment may occur after the termination of this
Agreement solely to the extent provided in Section 9.3, and the obligations of Hartford related to
the Make-Whole Payment shall terminate at the time of termination of this Agreement in all other
instances. In no event shall a Hartford Sale or HIG Change of Control Event in which Wellington is
the purchaser be deemed a Trigger Event or result in a Make Whole Payment.

Section 9.5 Determination of Total Enterprise Value. The Total Enterprise Value in respect of the Hartford Sale or HIG Change of Control Event (as
applicable) shall be conclusively determined pursuant to this Section 9.5.

Certain information in this exhibit, marked by “[***]” has been redacted and will be filed
separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities
Exchange Act of 1934, as amended. Confidential treatment has been requested with respect to the
redacted portions.

 

26

 

(a) Hartford and Wellington shall negotiate in good faith for a period of 10 Business Days (or
such longer period as they may mutually agree in writing) in order to agree in writing on the Total
Enterprise Value prior to engaging any Appraiser.

(b) If, at the end of the aforementioned period of negotiation, Hartford and Wellington have
not agreed upon the Total Enterprise Value, they shall select an Appraiser by mutual agreement (not
to be unreasonably withheld) within 10 Business Days after the expiration of such period of
negotiation. In the event that they are unable to agree upon a mutually acceptable Appraiser
within such period, each shall select one Appraiser no later than 10 Business Days after the end of
such period, which Appraisers shall select a third Appraiser as soon as possible, each of which who
shall be instructed to state the Total Enterprise Value (which, for the avoidance of doubt, shall
conform to the definition of “Total Enterprise Value” as set forth in this Agreement) in writing as
a number and not a range in a written report. The Members shall use commercially reasonable
efforts to cause the Appraiser(s) to complete their work and issue their report as soon as possible
and in no event more than 30 days after their engagement. If the respective determinations of the
Total Enterprise Value vary by less than 10% of the highest Total Enterprise Value determination,
the Total Enterprise Value shall be the average of the three Total Enterprise Value values. If the
Total Enterprise Value determinations vary by 10% or more, the Total Enterprise Value shall be
equal to the average of the two closest of the three Total Enterprise Value values. If any
Appraiser is only willing to provide a range for the Total Enterprise Value, the average of the
highest and lowest value in such range shall be deemed to be such Appraiser’s determination of the
Total Enterprise Value if the range between such highest and lowest value is no more than 20%,
otherwise, such range shall be disregarded and only the remaining determination(s) shall be used.
The costs of the Appraiser shall be borne (x) if there is one Appraiser, equally by Hartford and
Wellington or (y) if there are three Appraisers, by the respective party selecting such Appraiser
and the cost of the third Appraiser shall be borne equally by Hartford and Wellington. The
determination of the Appraiser(s) shall be final and binding on all of the Parties.

ARTICLE X

MISCELLANEOUS

Section 10.1 Amendments; Extension; Waiver. This Agreement may only be amended, altered or modified by a written instrument executed by each
of the Parties hereto. The waiver by any Party hereto of a breach of any provision of this
Agreement shall not operate or be construed as a further or continuing waiver of such breach or as
a waiver of any other or subsequent breach. No failure on the part of any Party to exercise, and
no delay in exercising, any right, power or remedy hereunder shall operate as a waiver thereof, and
no single or partial exercise of such right, power or remedy by such Party shall preclude any other
or further exercise thereof or the exercise of any other right, power or remedy.

Section 10.2 Entire Agreement. This Agreement (including the exhibits and schedules hereto) constitutes the entire
understanding and agreement of the parties hereto, except as provided herein, and supersedes all
prior agreements and understandings, written and oral, among the parties with respect to the
subject matter hereof.

 

27

 

Section 10.3 Interpretation. When a reference is made in this Agreement to a section, exhibit or schedule, such reference
shall be to a section, exhibit or schedule to this Agreement unless otherwise indicated. The table
of contents and headings contained in this Agreement are for reference purposes only and shall not
affect in any way the meaning or interpretation of this Agreement. Whenever the words “include,”
“includes” or “including” are used in this Agreement, they shall be deemed to be followed by the
words “without limitation.” Whenever the context may require, any pronouns used in this Agreement
shall include the corresponding masculine, feminine or neuter forms and the singular form of nouns
and pronouns shall include the plural and vice versa. The exhibits and schedules to this Agreement
are hereby incorporated and made a part hereof and are an integral part of this Agreement. All
exhibits and schedules annexed hereto or referred to herein are hereby incorporated in and made a
part of this Agreement as if set forth in full herein.

Section 10.4 Severability. Any term or provision of this Agreement which is invalid or unenforceable in any jurisdiction
shall, as to that jurisdiction, be ineffective to the extent of such invalidity or unenforceability
without rendering invalid or unenforceable the remaining terms and provisions of this Agreement or
affecting the validity or enforceability of any of the terms or provisions of this Agreement in any
other jurisdiction. If any provision of this Agreement is so broad as to be unenforceable, the
provision shall be interpreted to be only as broad as is enforceable.

Section 10.5 Notices. All notices and other communications hereunder shall be in writing (other than via electronic
mail) and shall be deemed given and effective (i) when delivered, if delivered in person, (ii) when
transmitted by fax (with confirmation of transmission received), (iii) three Business Days after
mailing, if mailed by certified or registered mail (return receipt requested and obtained) or (iv)
one Business Day after transmitted, if transmitted by a nationally recognized overnight courier to
the parties at the following addresses (or at such other address for a party as shall be specified
by like notice):

If to any Hartford Party:

Hartford Life, Inc.

200 Hopmeadow Street

Simsbury, CT 06089

Facsimile: 860 547-4721

Telephone: 860 547-5000

Attention: Director of Wealth Management Law

With a copy to:

The Hartford

One Hartford Plaza

Hartford, CT 06155

Attention: General Counsel

Facsimile: 860 547-4721

Telephone: 860 547-5000

Attention: General Counsel

 

28

 

With a copy to:

Dechert LLP

200 Clarendon Street, 27th Floor

Boston, Massachusetts 02116-5021

Attention: John O’Hanlon and David Schulman

Facsimile: 617-426-6567

If to Wellington:

Wellington Management Company, LLP

280 Congress Street

Boston, Massachusetts 02210

Attention: General Counsel

Facsimile: 617-790-7760

With a copy to:

Skadden, Arps, Slate, Meagher & Flom LLP

4 Times Square

New York, New York 10036

Attention: Stephen Arcano and David Hepp

Facsimile: 212-735-3000

Section 10.6 Binding Effect; Persons Benefiting; No Assignment. This Agreement shall inure to the benefit of and be binding upon the Parties and their
respective successors and permitted assigns, if any. Nothing in this Agreement is intended or
shall be construed to confer upon any Person other than the Parties and their successors and
permitted assigns, if any, any right, remedy or claim under or by reason of this Agreement or any
part hereof. Without the prior written consent of each Party, neither this Agreement nor any
rights or obligations hereunder may be assigned, transferred or delegated by any Party.

Section 10.7 Disclaimers.

(a) Hartford represents and acknowledges that the representations and warranties set forth in
Article IV constitute the sole and exclusive representations to Wellington in connection with this
Agreement, and Wellington understands, acknowledges and agrees that all other representations and
warranties of any kind or nature, express or implied, are specifically disclaimed by Hartford.

(b) Wellington represents and acknowledges that the representations and warranties set forth
in Article V constitute the sole and exclusive representations to Hartford in connection with this
Agreement, and Hartford understands, acknowledges and agrees that all other representations and
warranties of any kind or nature, express or implied, are specifically disclaimed by Wellington.

(c) Notwithstanding the foregoing Sections 10.7(a) and 10.7(b), Hartford recognizes that
Wellington does not waive, and Wellington recognizes that Hartford
does not waive, any rights they
may have based on a fraud claim, whether under statute or common law.

 

29

 

(d) IN NO EVENT SHALL ANY PARTY OR ITS AFFILIATES BE LIABLE, WHETHER IN CONTRACT, TORT
(INCLUDING NEGLIGENCE) OR OTHERWISE, FOR ANY PUNITIVE OR CONSEQUENTIAL DAMAGES (INCLUDING LOST
SAVINGS, LOST PROFIT OR BUSINESS INTERRUPTION EVEN IF A PARTY IS NOTIFIED IN ADVANCE OF SUCH
POSSIBILITY) ARISING OUT OF OR PERTAINING TO THE SUBJECT MATTER OF THIS AGREEMENT; PROVIDED
THAT THE FOREGOING SHALL NOT APPLY IN THE CASE OF (I) A BREACH BY WELLINGTON OF SECTION 2.3 OR 2.4
OR (II) A BREACH BY HARTFORD OF SECTION 6.3 OR 6.4 AND THE PARTIES ACKNOWLEDGE THAT A PARTY SHALL
BE ENTITLED TO SEEK SUCH DAMAGES (OTHER THAN PUNITIVE DAMAGES) IN THE CASE OF ANY SUCH BREACH.

(e) This Agreement is not intended to, and shall not, create or result in any legal
partnership, relationship of principal and agent, or joint venture among the Parties.

Section 10.8 Specific Performance. The Parties agree that if any of the provisions of this Agreement were not performed by the
parties hereto in accordance with their specific terms or were otherwise breached, no adequate
remedy at law would exist and damages would be difficult to determine, and that each party hereto
will be entitled to specific performance to prevent such breaches of the provisions of this
Agreement and to enforce specifically the terms and provisions hereof, in addition to any other
remedy to which it may be entitled at law or in equity.

Section 10.9 Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an
original, but all of which taken together shall constitute one and the same agreement, it being
understood that all of the parties need not sign the same counterpart.

Section 10.10 Governing Law; Waiver of Jury Trial. This Agreement shall be governed by and construed in accordance with the laws of the State of New
York applicable to agreements made and to be performed entirely within the State of New York,
without regard to the conflict of law provisions thereof that would result in the application of
the laws of any other jurisdiction. Each of the parties hereto hereby irrevocably waives any and
all right to trial by jury in any legal proceeding arising out of or related to this Agreement.

Section 10.11 Certain Understandings. Each of the Parties is a sophisticated legal entity or person that was advised by experienced
counsel and, to the extent it deemed necessary, other advisors in connection with this Agreement.
Accordingly, each of the Parties hereby acknowledges that (i) it has not relied or will rely in
respect of this Agreement or the transactions contemplated hereby upon any document or written or
oral information previously furnished to or discovered by it or its representatives, other than
this Agreement and (ii) the parties’ respective rights and obligations with respect to this
Agreement and the events giving rise thereto will be solely as set forth in this Agreement.

 

30

 

*******

 

31

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the
date first above written.

	 	 	 	 	 	 	 

	 	 	THE HARTFORD FINANCIAL SERVICES
	 	 	GROUP, INC.
	 
	 	 	 	 	 	 
	 

	 	By:  
	/s/ Liam E. McGee	 	 
	 

	 	 	 	 	 
	 

	 	 	Name: 
	Liam E. McGee	 	 
	 

	 	 	Title:
	Chairman and CEO	 	 
	 
	 	 	 	 	 	 
	 	 	HARTFORD LIFE, INC.
	 
	 	 	 	 	 	 
	 

	 	By:
	/s/ David Levenson	 	 
	 

	 	 	 	 	 
	 

	 	 	Name:
	David Levenson	 	 
	 

	 	 	Title:
	President	 	 
	 
	 	 	 	 	 	 
	 	 	HARTFORD INVESTMENT FINANCIAL
	 	 	SERVICES, LLC
	 
	 	 	 	 	 	 
	 

	 	By:
	/s/ James Davey	 	 
	 

	 	 	 	 	 
	 

	 	 	Name:
	James Davey	 	 
	 

	 	 	Title:
	CEO and President	 	 
	 
	 	 	 	 	 	 
	 	 	HL INVESTMENT ADVISORS, LLC
	 
	 	 	 	 	 	 
	 

	 	By:
	/s/ James Davey	 	 
	 

	 	 	 	 	 
	 

	 	 	Name:
	James Davey	 	 
	 

	 	 	Title:
	CEO and President	 	 
	 
	 	 	 	 	 	 
	 	 	WELLINGTON MANAGEMENT COMPANY,
	 	 	LLP
	 
	 	 	 	 	 	 
	 

	 	By:
	/s/ Perry M. Traquina	 	 
	 

	 	 	 	 	 
	 

	 	 	Name:
	Perry M. Traquina	 	 
	 

	 	 	Title:
	President and Chief Executive Officer	 	 

 

 

 

SCHEDULE A

EXECUTIVE OFFICERS

Hartford:

	1.	 	Chief Financial Officer, Hartford Financial Services Group, Inc.

	2.	 	General Counsel, Hartford Financial Services Group, Inc.

	3.	 	Chief Executive Officer, Wealth Management

	4.	 	Chief Financial Officer, Wealth Management

	5.	 	Chief Executive Officer, Hartford Mutual Funds

	6.	 	Director of Wealth Management Law (or successor position)

Wellington:

	1.	 	Any Managing Partner

	2.	 	Chief Financial Officer

	3.	 	General Counsel

	4.	 	Director, Global Equity Portfolio Management

	5.	 	Director, Global Fixed Income Portfolio Management

	6.	 	Director, Global Relationship Group

 

 

 

SCHEDULE B

HARTFORD HLS FUNDS

Hartford Advisers HLS Fund

Hartford Capital Appreciation HLS Fund

Hartford Disciplined Equity HLS Fund

Hartford Dividend and Growth HLS Fund

Hartford Global Growth HLS Fund

Hartford Healthcare HLS Fund

Hartford High Yield HLS Fund

Hartford Global Research HLS Fund

Hartford Growth HLS Fund

Hartford International Opportunities HLS Fund

Hartford MidCap HLS Fund

Hartford MidCap Value HLS Fund

Hartford Small Company HLS Fund

Hartford Small/Mid Cap Equity HLS Fund

Hartford Stock HLS Fund

Hartford Total Return Bond HLS Fund

Hartford Value HLS Fund

Hartford Growth Opportunities HLS Fund

Hartford SmallCap Growth HLS Fund

Hartford U.S. Government Securities HLS Fund

 

 

 

SCHEDULE C

BROKER-DEALERS

[***]

Certain information in this exhibit, marked by “[***]” has been redacted and will be filed
separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities
Exchange Act of 1934, as amended. Confidential treatment has been requested with respect to the
redacted portions.

 

 

 

SCHEDULE D

INTENTIONALLY OMITTED

 

 

 

SCHEDULE E

WELLINGTON PORTFOLIO MANAGERS

[***]

Certain information in this exhibit, marked by “[***]” has been redacted and will be filed
separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities
Exchange Act of 1934, as amended. Confidential treatment has been requested with respect to the
redacted portions.

 

 

 

SCHEDULE F

FIXED INCOME FUND MANDATES

The Hartford High Yield Fund

Hartford High Yield HLS Fund

The Hartford Floating Rate Fund

The Hartford Strategic Income Fund

The Hartford Corporate Opportunities Fund

The Hartford Total Return Bond Fund

Hartford Total Return Bond HLS Fund

The Hartford Municipal Opportunities Fund

The Hartford Municipal Real Return Fund

The Hartford Inflation Plus Fund

Hartford US Government Securities HLS Fund

The Hartford Short Duration Fund

The Hartford Floating Rate High Income Fund

 

 

 

SCHEDULE G

FEE REVISIONS ON EXISTING HARTFORD FUNDS

[***]

Certain information in this exhibit, marked by “[***]” has been redacted and will be filed
separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities
Exchange Act of 1934, as amended. Confidential treatment has been requested with respect to the
redacted portions.

 

 

 

SCHEDULE H

ALLOCATION SERVICES FEES

[***]

Certain information in this exhibit, marked by “[***]” has been redacted and will be filed
separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities
Exchange Act of 1934, as amended. Confidential treatment has been requested with respect to the
redacted portions.EX-10.28

Exhibit 10.28

THE HARTFORD

INVESTMENT AND SAVINGS PLAN

(As Amended and Restated as of February 1, 2012)

ARTICLE ONE

INTRODUCTION AND PURPOSE

1.1 Introduction. The Hartford Investment and Savings Plan (the “Plan”) was
established effective December 19, 1995 to cover Eligible Employees of The Hartford and Hartford
Fire. The Hartford was spun-off from ITT Corporation effective December 19, 1995. The Plan was
amended and restated effective January 1, 1997. Effective as of the IPO Date, Hartford Life became
a publicly held company, was designated as a Participating Corporation for purposes of the Plan and
securities of Hartford Life were made available for investment under the Plan. Effective as of the
Merger Date, Hartford Life ceased to be a publicly held company due to its merger with a subsidiary
of The Hartford, and its securities ceased to be available for investment under the Plan. Effective
April 1, 2002, the Omni Insurance Group 401(k) Retirement Plan was merged into the Plan. Effective
July 1, 2003, the Access Coverage Corporation 401(k) Plan was merged into the Plan. Effective
January 1, 2009, the Planco Profit Sharing Plan is merged into the Plan. The Planco Profit Sharing
Plan’s profit sharing contribution allocation for 2008, if any, will be allocated under this Plan
in 2009 to the Members eligible to receive the contributions in accordance with the provisions of
the Planco Profit Sharing Plan.

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

Effective November 29, 2001, a portion of this Plan was converted into an employee stock ownership
plan (“ESOP”) within the meaning of Code Section 4975(e)(7). The ESOP is designed to invest
primarily in The Hartford Stock within the meaning of such provision, and more specifically shall
be invested entirely in The Hartford Stock except to the extent of such cash equivalent reserves as
may be required for liquidity purposes as more fully set forth herein.

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

 

 

 

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

State Street Bank and Trust Company, Boston, Massachusetts, is the Trustee with respect to the
Plan.

1.2 Purpose. The purpose of the Plan is to (A) supplement retirement income by
encouraging Eligible Employees to save on a regular and long-term basis; (B) provide Eligible
Employees with an opportunity to own beneficially The Hartford Stock to the maximum extent
permitted under ERISA and without regard to any requirement of diversification applicable to other
investments of the Plan, it being intended that the presumption established under applicable law
that investment in The Hartford Stock is prudent be given full effect to the maximum extent
consistent with applicable law (under which it is recognized that dire circumstances such as an
imminent collapse of The Hartford could require curtailment or termination of such investment); (C)
provide additional financial resources for emergencies and financial hardships; and (D) offer
Eligible Employees additional incentives to continue their careers with The Hartford.

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

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

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

 

- 2 -

 

ARTICLE TWO

DEFINITIONS

“Accounts” means, with respect to any Member or Deferred Member, his or her After-Tax Rollover
Investment Account, Before-Tax Rollover Investment Account, Company Contributions Investment
Account, Employee Contributions Investment Account, Roth 401(k) Contributions Investment Account,
Roth 401(k) Rollover Investment Account, and Roth Conversion Investment Account.

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

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

“After-Tax Rollover Investment Account” means that portion of the Trust Fund which, with respect to
any Eligible Employee, is attributable to After-Tax Rollovers, and any investment earnings and
gains or losses thereon.

“After-Tax Rollovers” means amounts contributed in accordance with Section 4.4 of an Eligible
Rollover Distribution (as defined in Section 11.8(B)(ii)) that consist of after-tax contributions
to an Eligible Retirement Plan (as defined in Section 11.8(B)(iii)).

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

 

- 3 -

 

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

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

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

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

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

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

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

“Before-Tax Rollover Investment Account” means that portion of the Trust Fund which, with
respect to any Eligible Employee, is attributable to Before-Tax Rollovers, and any investment
earnings and gains or losses thereon.

“Before-Tax Rollovers” means amounts contributed in accordance with Section 4.4 of an Eligible
Rollover Distribution (as defined in Section 11.8(B)(ii)) that consist of taxable distributions
from an Eligible Retirement Plan (as defined in Section 11.8(B)(iii)).

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

 

- 4 -

 

“Beneficiary” means such beneficiary or beneficiaries as may be designated from time to time by the
Member or Deferred Member, on a form provided by the Plan Administrator for such purpose, to
receive, in the event of the Member’s or Deferred Member’s death, the value of his or her Accounts
at the time of death. Except as hereinafter provided, in the case of a Member or Deferred Member who is married, the Beneficiary shall be the Member’s or Deferred Member’s spouse, unless
such spouse consents, in writing, on a form witnessed by a notary public to the designation of
another person as Beneficiary. A Deferred Member who is an alternate payee designated as such
pursuant to a qualified domestic relations order may not, however, name a spouse as a Beneficiary.
In the case of a Member or Deferred Member who incurs a divorce under applicable State law prior to
commencing benefits under the Plan, such Member’s or Deferred Member’s designation of Beneficiary
shall remain valid unless otherwise provided in a qualified domestic relations order (as described
in Article Twelve of the Plan) or unless such Member or Deferred Member changes his or her
Beneficiary or is subsequently remarried. In the absence of a beneficiary designation, the default
Beneficiary will be the Member’s Spouse or, if none, the Member’s estate.

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

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

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

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

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

“Company Contributions” means Matching Company Contributions and Floor Company Contributions made
under Article Five, Matching Company Contributions made before 1990 under the Pre-Distribution ITT
Plan, ESOP Account and Planco Profit Sharing Contributions. Prior to January 1, 2006, no Company
Contributions were made with respect to Employees of Planco Financial Services, Inc.

 

- 5 -

 

“Company Contributions Investment Account” means that portion of the Trust Fund that, with respect
to any Member or Deferred Member, consists of his or her ESOP Account, Matching Company
Contributions Account, Floor Company Contributions Account, Pre-2004 Floor Company Contributions
Account, Prior Plan Transfers Account, Planco Profit Sharing Contributions Account, and Reinvested
Dividend Account.

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

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

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

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

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

“Distribution Date” means December 19, 1995.

 

- 6 -

 

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

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

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

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

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

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

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

	 
	 	(F)   a person who performs services for the Company as an independent contractor or
under any other non-employee classification, or who is classified by the Company as,
or determined by the Company to be, an independent contractor, regardless of whether
such person is characterized or ultimately determined by the Internal Revenue Service
or any other Federal, State or local government authority or regulatory body to be an employee of the Company or its affiliates for income or wage
tax purposes or for any other purpose.

 

- 7 -

 

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

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

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

“Employee Contributions Investment Account” means that portion of the Trust Fund that, with respect
to any Member or Deferred Member, consists of his or her Before-Tax Account, Basic After-Tax
Account, Supplemental After-Tax Account, Catch-up Contributions Account, and any qualified
non-elective contributions made on his or her behalf.

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

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

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

 

- 8 -

 

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

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

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

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

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

“Floor Company Contributions Account” means that portion of the Company Contributions Investment
Account which, with respect to any Member or Deferred Member, is attributable to Floor Company
Contributions, other than Pre-2004 Floor Company Contributions, and any investment earnings and
gains or losses thereon.

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

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

 

- 9 -

 

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

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

“Hours Worked” means hours for which an Employee is compensated whether or not he or she has
worked, such as paid holidays, paid vacation, paid sick leave and paid time off, and back pay for
the period for which it was awarded, and each such hour shall be computed as only one hour, even
though he or she is compensated at more than the straight time rate. With respect to any period for
which an Employee is compensated but has not worked, hours counted shall be included on the basis
of the Employee’s normal work-day or work-week. This definition of Hours Worked shall be applied in
compliance with 29 Code of Federal Regulations Section 2530.200b-2(b) and (c), as promulgated by
the United States Department of Labor, in a consistent and nondiscriminatory manner.

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

“Investment Funds” means (A) The Hartford Stock Fund, (B) such other investment funds as may from
time to time be expressly referred to in the Plan (such as the Stable Value fund and other fixed
income funds named in Section 8.3(C) and the Vanguard Target Retirement Funds named in Section
8.3(G)) so long as such other investment funds continue to be approved by the Investment and
Savings Plan Investment Committee, and (C) such other funds as are approved by the Investment and
Savings Plan Investment Committee from time to time, in which contributions permitted by the Plan
and/or existing Plan assets may be invested.

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

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

“IRS” means the Federal Internal Revenue Service.

“Limitation Year” means the calendar year.

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

 

- 10 -

 

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

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

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

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

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

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

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

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

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

“Plan Year” means the calendar year.

“Planco Profit Sharing Contributions” means the contributions and their investment earnings that
are attributable to profit sharing contributions merged into this Plan from the Planco Profit
Sharing Plan or that plan’s 2008 profit sharing contribution as may be allocated under this Plan.

“Planco Profit Sharing Contributions Account” means that portion of the Company Contributions
Investment Account which, with respect to any Member or Deferred Member, is attributable to Planco
Profit Sharing Contributions, and any investment earnings and gains or losses thereon.

 

- 11 -

 

“Pre-2004 Floor Company Contributions” means amounts attributable to Floor Company Contributions in
the Pre-2004 Floor Company Contributions Account that were made with respect to payroll periods
prior to January 1, 2004.

“Pre-2004 Floor Company Contributions Account” means that portion of the Company Contributions
Investment Account which, with respect to any Member or Deferred Member, is attributable to
Pre-2004 Floor Company Contributions, and any investment earnings and gains or losses thereon.

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

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

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

“Prior Plan Transfer” means amounts transferred from the trust of a qualified profit sharing or
other defined contribution plan previously in effect at a Participating Corporation or
Participating Division to the extent permitted by Article Four.

“Prior Plan Transfers Account” means that portion of the Company Contributions Investment Account
which, with respect to any Member or Deferred Member, is attributable to a Prior Plan Transfer, and
any investment earnings and gains or losses thereon.

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

“Reinvested Dividends Account” means that portion of the Company Contributions Investment Account
which, with respect to any Member or Deferred Member, is attributable to reinvested dividends of
The Hartford Stock Fund.

“Retirement” means:

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

 

- 12 -

 

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

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

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

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

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

“Roth 401(k) Contributions Account” means that portion of the Roth 401(k) Contributions Investment
Account which, with respect to any Member or Deferred Member, consists of his or her Basic Roth
401(k) Savings and Supplemental Roth 401(k) Savings and any investment earnings and gains or losses
thereon.

“Roth 401(k) Contributions Investment Account” means that portion of the Trust Fund which, with
respect to any Member or Deferred Member, consists of his or her Roth 401(k) Contributions Account
and Roth 401(k) Catch-Up Contributions Account.

“Roth 401(k) Rollover Investment Account” means that portion of the Trust Fund which, with respect
to any Eligible Employee, is attributable to one or more rollover contributions made in accordance
with Section 4.4 of an Eligible Rollover Distribution (as defined in Section 11.8(B)(ii)) of
amounts attributable to Roth 401(k) contributions, and any investment earnings and gains or losses
thereon.

 

- 13 -

 

“Roth 401(k) Rollovers” means amounts contributed in accordance with Section 4.4 of an Eligible
Rollover Distribution (as defined in Section 11.8(B)(ii)) that consist of taxable distributions
from an Eligible Retirement Plan (as defined in Section 11.8(B)(iii)).

“Roth Conversion” means an in-plan Roth rollover in accordance with Article 10A.

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

“Salary” means an Eligible Employee’s compensation from the Company at his or her base rate,
including any payments made on account of such Eligible Employee’s short-term disability under The
Hartford Income Protection Plan, excluding any compensation deferred under a deferred compensation
plan, and determined before any election by the Member pursuant to Section 4.1(A) or (C) or 4.2(A)
or (C) hereof and before any election by the Member under Code Sections 125 and 132(f)(4),
excluding any overtime, bonus, foreign service allowance or any other form of compensation, except
to the extent otherwise deemed “Salary” for purposes of the Plan under such nondiscriminatory rules
as may be adopted by the Pension Administration Committee with respect to all Members or any
particular Participating Company or Participating Division. Salary shall not include severance pay
or accrued vacation pay that is paid upon termination of employment. Sales incentive payments and
lump sum merit increases shall be included in Salary for purposes of the Plan to the extent they
are designated as being so included by the Plan Administrator. Effective from January 1, 2005 to
December 31, 2011, Salary shall include rehabilitation pay from the Company paid to a recipient of
long term disability benefits.

In addition to other applicable limitations set forth in the Plan, and notwithstanding any other
provision of the Plan to the contrary, the annual salary of each Member taken into account under
the Plan shall not exceed the OBRA ‘93 annual compensation limit, such compensation to be measured
for each individual from the beginning of each calendar year, regardless of whether such individual
has become a Member pursuant to Article Three or elects to contribute Savings under Article Four.
The OBRA ‘93 annual compensation limit is $200,000 beginning January 1, 2003, as adjusted by the
Secretary of the Treasury to reflect cost-of-living adjustments in accordance with Code Section
401(a)(17)(B) ($250,000 effective as of January 1, 2012). The cost-of-living adjustment in effect
for a calendar year applies to any period, not exceeding 12 months, over which salary is determined
beginning in such calendar year. Any reference in this Plan to the limitation under Code Section
401(a)(17) shall mean the OBRA ‘93 annual compensation limit set forth in this provision.

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

 

- 14 -

 

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

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

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

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

 

- 15 -

 

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

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

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

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

Periods of employment by an Eligible Employee with Planco, LLC prior to January 1, 2009 shall be
treated as periods of employment with the Company as long as such Eligible Employee remained
employed by Planco, LLC on December 31, 2008 and became employed by the Company on January 1, 2009.
Such Service shall be determined in accordance with and under the terms of the Planco Profit
Sharing Plan. Eligible Employees who were at any time Members prior to becoming employees of
Planco, LLC who will again be Eligible Employees on January 1, 2009 will receive the greater of
their Service for the period as an Employee prior to January 1, 2009 determined in accordance with
and under the terms of the Planco Profit Sharing Plan or under this Plan.

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

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

Periods of employment by an Eligible Employee with Xchanging prior to October 1, 2010 shall be
treated as periods of employment with the Company so long as such Eligible Employee becomes
employed by the Company during October, 2010 in accordance with and under the terms of the sold
fees agreement for Oasis Outsourcing dated September 15, 2010 immediately following employment with
the Xchanging.

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

 

- 16 -

 

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

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

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

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

“Termination of Employment” means a voluntary or involuntary separation from employment with the
Company for any reason, including, but not limited to, Retirement, death, Disability, resignation
or dismissal by the Company, but shall not include a transfer in employment between the Company and
any other Participating Corporation. With respect to any leave of absence and any period of
service in the armed forces of the United States, the rules contained in the definition of Service
contained in the Plan shall apply. Notwithstanding the foregoing, for purposes of Code Section
401(k)(2)(B)(i)(I), a Member is treated as having terminated employment during any period he or she
is performing service in the uniformed services described in Code Section 3401(h)(2)(A).

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

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

“The Hartford Stock Fund” means the Investment Fund established pursuant to the Plan which by its
terms is invested exclusively in The Hartford Stock, except for such reserves as may be deemed
necessary for liquidity and the effecting of transactions with respect thereto.

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

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

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

 

- 17 -

 

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

“Vested Share” means the portion of Accounts that vest under Articles Four and Five and a
Member’s Roth Conversion Investment Account.

“Withdrawal Valuation Date” means the business day as of which the Plan Administrator or its
designee processes the request for a withdrawal or Roth Conversion (which request must be made in a
manner and by the date required by the Plan Administrator).

 

- 18 -

 

ARTICLE THREE

MEMBERSHIP

3.1. Eligibility for Membership. Effective January 1, 2008, an Eligible Employee
will be immediately eligible to become a Member for purposes of making contributions to the Plan
described in Article III and Article IV of the Plan.

3.2. Becoming a Member by Making an Enrollment Election. An Eligible Employee who is
eligible to become a Member shall become a Member by making an enrollment election before an
Enrollment Date and in the manner and by the time required by the Plan Administrator. By making an
enrollment election, the Eligible Employee: (A) designates the rate of his or her After-Tax
Savings, (B) authorizes the Company to make regular payroll deductions of the amount of his or her
After-Tax Savings, if any, (C) designates the rate of his or her Before-Tax Savings, Roth 401(k)
Savings and any Before-Tax Catch-Up and Roth 401(k) Catch-Up Savings, (D) authorizes the Company to
reduce his or her Salary by the amount of his or her Before-Tax Savings and/or Roth 401(k) Savings
and Before-Tax Catch-Up and Roth 401(k) Catch-Up Savings, if any, (E) makes an investment election
as described in Article Seven, (F) designates a beneficiary for his or her Accounts, and (G) makes
a dividend election as described in Section 7.6, if applicable. Alternatively, an Eligible
Employee may become a Member by electing to contribute to the Plan After-Tax Rollovers, Before-Tax
Rollovers, or Roth 401(k) Rollovers in accordance with Section 4.4 in lieu of the elections
identified in (A), (B), (C), and (D) in the preceding sentence.

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

Upon completion of six months of Service, an Eligible Employee shall in any event become a Member
entitled to Floor Company Contributions under the Plan as of such date.

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

 

- 19 -

 

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

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

3.6. Rehired Members.

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

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

 

- 20 -

 

3.7 Transfers between the Company and Associated Companies. Effective January 1, 2004, if
an employee is transferred from employment with an Associated Company to employment with the
Company, for purposes of eligibility to become a Member and receive Matching Company Contributions
and Floor Company Contributions, and for purposes of vesting, his or her service
with the Associated Company shall be taken into consideration as “Service” under this Plan. For
purposes of this Section, “Associated Company” shall mean any division, subsidiary or affiliated
company of the Company not participating in this Plan as a Participating Corporation or a
Participating Division which is (a) a component member of a controlled group of corporations (as
defined in Section 414(b) of the Code) which includes the Company, (b) any trade or business
(whether or not incorporated) which is under common control (as defined in Section 414(c) of the
Code) with the Company, (c) any organization (whether or not incorporated) which is a member of an
affiliated service group (as defined in Section 414(m) of the Code) which includes the Company or
(d) any other entity required to be aggregated with the Company pursuant to regulations under Code
Section 414(o), during the period it is a division, subsidiary or affiliated company of the Company
or during such period as may otherwise be determined by the Board of Directors or the Pension
Administration Committee.

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

 

- 21 -

 

ARTICLE FOUR

MEMBER CONTRIBUTIONS

4.1. Member Before-Tax Savings.

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

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

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

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

(C) Before-Tax Catch-Up Savings. All Members who are eligible to make Before-Tax
Savings, who will have attained age 50 before the close of the Plan Year, and who have
contributed at least 6% of Salary in any combination of Before-Tax, Roth 401(k) or After-Tax
Savings, may elect to make Before-Tax Catch-Up Savings which, when taken together with a
Member’s Before-Tax Savings, Roth 401(k) Savings, Roth 401(k) Catch-Up Savings and After-Tax
Savings, equal up to 75% of a Member’s Salary for a pay period. Such Before-Tax Catch-Up
Savings shall be made in accordance with, and subject to, the limitations of Code Section
414(v) and in addition, when combined with any Roth 401(k) Catch-Up Savings, will not exceed
69% of a Member’s Salary. Such Before-Tax Catch-up Savings shall not be taken into account
for purposes of the limitations of Code Sections 402(g) and 415. The Plan shall not be
treated as failing to satisfy the provisions of the Plan implementing the requirements of
Code Section 401(k)(3), 401(k)(11), 401(k)(12), 410(b) or 416, as applicable, by reason of any Member making such Before-Tax Catch-Up Savings
hereunder. Prior to January 1, 2006, Before-Tax Catch-Up Savings shall be credited to a
Member’s Before-Tax Account; on and after January 1, 2006, Before-Tax Catch-Up Savings shall
be credited to a Member’s Catch-Up Contributions Account.

 

- 22 -

 

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

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

4.2. Member Roth 401(k) Savings.

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

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

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

 

- 23 -

 

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

(C) Roth 401(k) Catch-Up Savings. All Members who are eligible to make Roth
401(k) Savings, who will have attained age 50 before the close of the Plan Year, and who
have contributed at least 6% of Salary in any combination of Before-Tax, Roth 401(k) or
After-Tax Savings, may elect to make Roth 401(k) Catch-Up Savings which, when taken
together with a Member’s Before-Tax Savings, Roth 401(k) Savings, After-Tax Savings, and
Before-Tax Catch-Up Savings equal up to 75% of a Member’s Salary for a pay period. Such
Roth 401(k) Catch-Up Savings shall be made in accordance with, and subject to, the
limitations of Code Section 414(v) and in addition, when combined with any Before-Tax
Catch-Up Savings, will not exceed 69% of a Member’s Salary. Such Roth 401(k) Catch-up
Savings shall not be taken into account for purposes of the limitations of Code Sections
402(g) and 415. The Plan shall not be treated as failing to satisfy the provisions of the
Plan implementing the requirements of Code Section 401(k)(3), 401(k)(11), 401(k)(12), 410(b)
or 416, as applicable, by reason of any Member making such Roth 401(k) Catch-Up Savings
hereunder. Roth 401(k) Catch-Up Savings shall be credited to a Member’s Roth 401(k)
Catch-Up Contributions Account.

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

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

 

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4.3 Member After-Tax Savings.

(A) Salary Reduction Election for After-Tax Savings. A Member may elect, subject
to the IRS limits described in Article Six and any other Plan limits, to have his or her
Salary reduced (by payroll deductions) by a whole percent not exceeding 30%, and to have
that amount contributed to the Trust Fund as After-Tax Savings, except that a Member may not
elect to contribute After-Tax Savings of more than the difference between 30% of Salary and
the amount of Before-Tax Savings plus Roth 401(k) Savings properly elected. Such election
shall be made in the manner and by the date required by the Plan Administrator, and shall be
effective with the next payroll paid after the election (or as soon as practicable
thereafter). A Member’s election shall continue to apply notwithstanding a change in his or
her principal employer from one Participating Corporation to another Participating
Corporation, unless the Member changes or suspends his or her Salary reduction rate or
savings as permitted by the Plan. The Plan Administrator may establish a separate, lower
limit on the percentage of Salary that a Highly Compensated Member may contribute to the
Trust Fund as After-Tax Savings. The Plan Administrator may also provide for Member
elections as to whether After-Tax Savings are to commence automatically when a Member’s
Before-Tax and Roth 401(k) Savings reach the maximum allowed under Code Section 402(g) for a
Plan Year.

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

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

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

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

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

 

- 25 -

 

4.4 Member Rollover Contributions.

(A) Contribution of Rollovers. To the extent permitted by the Code, a Member may
elect, subject to the IRS limits described in Article Six and any other Plan limits, to
contribute any of the following amounts to the Trust Fund: (i) a distribution or proceeds
from a sale of distributed property that qualifies as an Eligible Rollover Distribution as
defined in Article Eleven hereof from a trust described in Code Section 401(a) and exempt
from tax under Code Section 501(a), (ii) a distribution from a “conduit” or traditional
individual retirement account or annuity, (iii) a Prior Plan Transfer, which means a direct
rollover or transfer from a prior employer’s plan, provided that (a) the Member can
establish to the satisfaction of the Plan Administrator that such prior employer’s plan
assets meets the qualification requirements under Code Section 401(a), and (b) a
trust-to-trust transfer shall not be permitted unless the amount transferred is free of all
defined benefit characteristics and does not make the Plan a transferee plan under Code
Section 401(a)(11)(B)(iii)(III); or (iv) an annuity contract described in section 403(b) of
the Code; or, (v) an eligible plan under section 457(b) of the Code which is maintained by a
state, political subdivision of a state, or an agency or instrumentality of a state or
political subdivision of a state. A Member may also roll over to the Trust Fund non-taxable
distributions from traditional individual retirement accounts, attributable to deductible
contributions, and distributions from SIMPLE individual retirement accounts made more than
two years after the date the Member first participated in the SIMPLE individual retirement
account, to the extent permitted by the Code and rules established by the Plan
Administrator. Any amount so contributed must be paid to the Trustee on or before the
sixtieth day after the Member receives such amount (or be transferred directly from a prior
plan) and shall be held in the Trust Fund and credited as set forth in (C) below.

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

(B) Vesting in Rollovers. Amounts credited to a Member’s After-Tax Rollover
Investment Account, Before-Tax Rollover Investment Account or Roth 401(k) Rollover
Investment Account shall at all times be fully vested and nonforfeitable.

(C) Crediting to Accounts; Investment. Amounts contributed under this Section 4.4
shall be credited, depending on the character of the rollover contribution, to the following
Accounts, as applicable: the Before-Tax Rollover Investment Account, the After-Tax Rollover
Investment Account or the Roth 401(k) Rollover Investment Account. Each such Account will be
invested in accordance with the Member’s direction pursuant to Article Eight. In the
absence of such direction, the applicable Account(s) shall be invested in the applicable
Default Vanguard Target Retirement Fund set forth in Section 8.3(G).

 

- 26 -

 

4.5 Suspension and Resumption of Member Savings.

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

(B) Suspension due to Withdrawal for Hardship. A Member who takes a hardship
withdrawal from his or her Basic or Supplemental Before-Tax Savings or Basic or Supplemental
Roth 401(k) Savings or Before-Tax Catch-Up or Roth 401(k) Catch-Up Contributions under
Section 10.2, which is attributable to a Hardship as defined in that Section, shall have his
or her Savings under the Plan suspended for a period of six months. Such suspension will be
effective as of the next payroll period after the Valuation Date that applies to the
withdrawal (or as soon as practicable thereafter). During such suspension, Floor Company
Contributions will continue to be made on behalf of the Member, but no Matching Company
Contributions shall be made on his or her behalf. Also, the Member will continue to be
considered a Member for purposes of Article Six. Savings may be resumed by giving notice to
the Company in the manner and by the date required by the Plan Administrator. Such
resumption shall be effective as of the next payroll period following the six month
suspension period (or as soon as practicable thereafter). (The resumption of contributions
shall be automatic for a Member who is also a member in a Hartford Excess Savings Plan.)

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

 

- 27 -

 

ARTICLE FIVE

COMPANY CONTRIBUTIONS

5.1. Matching Company Contributions.

(A) Matching Company Contributions with respect to Basic Savings. Effective
January 1, 2008, subject to the IRS limits described in Article Six and any other Plan
limits, the Company shall, with respect to each Member principally employed by it who has
completed at least six months of Service as an Eligible Employee, contribute to the Trust
Fund a Matching Company Contribution in an amount equal to 50% of such Member’s Basic
Savings for each payroll period. (No Matching Company Contributions shall be made with
respect to a Member’s Supplemental Savings, a Member’s Before-Tax Savings or a Member’s Roth
401(k) Savings that exceed the limits provided in Code Sections 402(g) and 415 or Section
4.1(A), 4.2(A) or 6.1 of the Plan.) Such Matching Company Contribution shall be credited to
such Member’s Company Contributions Investment Account, and shall be invested as described
in Article 8 hereof. No Matching Company Contributions shall be made with respect to a
Member’s Catch-Up Savings.

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

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

5.2. Floor Company Contributions. Effective January 1, 2008, subject to the IRS limits
described in Article Six and any other Plan limits, the Company shall, with respect to each
Eligible Employee principally employed by it who has completed at least six months of Service as an
Eligible Employee, contribute to the Trust Fund a Floor Company Contribution in an amount equal to
one-half of one percent (0.5%) of such Eligible Employee’s Salary for each payroll period, provided
that, for each payroll period commencing on or after January 1, 2004 with respect to such a Member
who is not a Highly Compensated Member, the amount of such Floor Company Contribution shall be
increased to an amount equal to one and one-half percent (1.5%) of such Member’s Salary for such
payroll period. Floor Company Contributions shall be credited to such Member’s Company
Contributions Investment Account, and shall be invested as described in Article 8 hereof.
Notwithstanding the first sentence of this Section 5.2, no Floor Company Contributions shall be
made prior to January 1, 2006 with respect to Eligible Employees who are Employees of Planco
Financial Services, Inc.

 

- 28 -

 

5.3 Vesting of Amounts in Company Contributions Investment Account.

(A) Vesting in Matching Company Contributions.

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

Years of Service Percentage of Company Contributions that is Vested

	 	 	 	 	 

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

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

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

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

(D) Vesting in Planco Profit Sharing Contributions.

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

 

- 29 -

 

Years of Service Percentage of Company Contribution that is Vested

	 	 	 	 	 

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

(ii) Earlier Vesting in Certain Circumstances. Notwithstanding the foregoing
schedule, a Member shall immediately be fully vested in 100% of his or her Company
Contributions Investment Account that is attributable to Planco Profit Sharing
Contributions upon the earlier of: (a) the Member reaching age 65, (b) the Member’s
Disability, (c) the Member’s death, (d) the termination of the Plan, or (e) the
complete discontinuance of Company contributions under the Plan.

(E) Special Rules for Certain ESOP and Company Contributions Investment Account
Balances.

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

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

(F) Special Vesting Rules for Death While Performing Qualified Military Service.

The vested status of a Member who dies or becomes disabled on or after January 1,
2007 while performing military service shall be determined under this Section
5.3(F).

If a Member leaves employment with the Company to perform qualified military service
and dies while performing such qualified military service, to the extent that a
Member was not fully vested in his Accounts at the time such Member commenced the
period of qualified military service during which his death occurred, such Member
shall be fully vested as otherwise required under this Article 5. For purposes of
this Section 5.3(F), the term “qualified military service” shall be defined as set
forth in Code Section 414(u).

 

- 30 -

 

5.4 Forfeiture of Certain Unvested Amounts in Company Contributions Investment Account.

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

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

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

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

5.5 Additional Company Contributions if Plan is Top-Heavy.

(A) Additional Contribution. For any Plan Year with respect to which the Plan is
Top-Heavy (as defined in the next paragraph), an additional Company contribution shall be
allocated on behalf of each Member (or each Eligible Employee eligible to become a Member)
who is not a “key employee,” and who has not separated from service as of the last day of
the Plan Year, to the extent that the amounts allocated to his or her Accounts as a result
of contributions made under Sections 5.1 and 5.2 for that Plan Year are less than 3% of his
or her W-2 remuneration for that Plan Year. However, if the greatest percentage of W-2
remuneration for that Plan Year (after being limited to the annually indexed dollar amount
under Code Section 401(a)(17)) contributed by a “key employee” under Section 4.1 or
allocated to his or her Accounts as a result of contributions made pursuant to Section 5.1 for the Plan Year would be less than 3%, such lesser percentage shall be substituted for
“3%” in the preceding sentence. Notwithstanding the foregoing, no minimum contribution shall
be made with respect to a Member if the required minimum benefit under Code Section
416(c)(1) is provided by the Retirement Plan.

 

- 31 -

 

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

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

 

- 32 -

 

ARTICLE SIX

IRS LIMITS ON MEMBER SAVINGS

AND COMPANY CONTRIBUTIONS

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

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

Notwithstanding the foregoing, in the case of any Member who (a) ceases to be an Eligible
Employee during a Plan Year, (b) is employed during such Plan Year by an employer which is
not the Company or an entity within the controlled group of corporations (as defined in Code
Section 414(b) and the Regulations thereunder) containing the Company, and (c) exceeds the
limitation on elective deferrals enumerated in Code Section 402(g) ($16,500 in 2011) based
on the Member’s participation in the Plan and participation in a plan maintained by the
subsequent employer, the Plan shall not distribute to such a Member any Before-Tax Savings
or Roth 401(k) Savings (or any income thereon) that arise solely as a result of the Member
exceeding the Code Section 402(g) limit for the Plan Year, unless such limit was exceeded
solely because of the Member’s participation in this Plan, without considering any other
plan.

 

- 33 -

 

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

(i) Actual Deferral Percentage. With respect to each Plan Year, the Actual
Deferral Percentage for Highly Compensated Members shall not exceed the greater of: (i) 125
percent of the Actual Deferral Percentage for all other Members for the Plan Year, or (ii)
the lesser of (a) 200 percent of the Actual Deferral Percentage of all other Members for the
Plan
Year or (b) the Actual Deferral Percentage of all other Members for the Plan Year plus 2
percentage points. Before-Tax Savings and Roth 401(k) Savings must have been allocated to
Members’ Accounts during the Plan Year and may only be based on Salary received by a Member
during the Plan Year or earned during the Plan Year and received by the Member within 21/2
months after the end of the Plan Year. In the event the Actual Deferral Percentage for
Highly Compensated Employees for any Plan Year exceeds the limits described above, the Plan
Administrator will choose one of the following methods to satisfy the limits:

(a) The Floor Company Contribution will be treated as a qualified nonelective contribution
that, in combination with Before-Tax Savings and Roth 401(k) Savings, allows the Plan to
satisfy the limits. The Company will make an additional qualified nonelective contribution,
if necessary, for the Plan to satisfy the limits. Any qualified nonelective contribution
made under this Section 6.1(B)(i)(a) shall be made in accordance with the requirements of
Treas. Reg. Section 1.401(k)-2(a)(6).

(b) Excess contributions will be distributed in accordance with the paragraph below.

(c) Excess contributions will be recharacterized in accordance with the following paragraph.

To determine the amount of excess contributions, the Plan Administrator will (1) determine
the hypothetical reductions of the Highly Compensated Employees beginning with the highest
Actual Deferral Percentage and moving toward lower percentages until one of such limitations
is met; (2) then determine the total dollar amount of such reductions; and (3) then reduce
the Before-Tax Savings of the Highly Compensated Employees beginning with the highest dollar
amount and moving toward lower dollar amounts until the total dollar amount in (2) above is
reached. For purposes of the preceding sentence, the “highest amount” is determined after
distribution of any excess contributions. Such amount of excess contributions, as
adjusted for investment experience, will be distributed to the Members on whose behalf such
contributions were made or, under rules adopted by the Plan Administrator, such Members may
elect to recharacterize such adjusted contributions as After—Tax Savings. Any such
recharacterization or distribution of the adjusted excess contributions will be made to the
Highly Compensated Employees on the basis of the respective portion of the adjusted excess
contributions attributable to each of such Employees and the recharacterization or the
distribution of the adjusted excess contributions will be made to the Employees on whose
behalf such contributions were made within 12 months following the end of the Plan Year for
which the deferrals were made. The amount of such recharacterization or distribution of any
excess contributions shall be reduced by excess deferrals previously distributed for the
taxable year ending in the same Plan Year and the amount of such distribution of any excess
deferrals shall be reduced by excess contributions previously distributed or recharacterized
for the Plan Year beginning in such taxable year. Excess contributions shall be adjusted
for any income or loss up to the date of distribution in accordance with IRS regulations;
the Plan will not fail to use a reasonable method of computing the income allocable to
excess contributions merely because the income allocable to the excess contributions is determined on a date that is no more than
seven days before the distribution.

 

- 34 -

 

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

(iii) In the event that any portion of a Highly Compensated Employee’s Before-Tax Savings
or Roth 401(k) Savings, as adjusted for investment experience, is returned or
recharacterized pursuant to Section 6.1(A) as a result of the maximum dollar limit
applicable to Before-Tax Savings and Roth 401(k) Savings, the Actual Deferral Percentage, or
ESOP Actual Deferral Percentage, as applicable, shall be determined before such excess
deferral is returned. Any adjusted excess of a Member’s deferrals that are recharacterized
pursuant to Section 6.1(A) shall be treated as (I) annual additions pursuant to Section 6.3
and (II) Before-Tax Savings or Roth 401(k) Savings for purposes of their withdrawability
prior to Termination of Employment and shall be subject to the financial hardship
requirement provisions of Section 10.2.

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

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

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

 

- 35 -

 

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

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

(i) Actual Contribution Percentage. With respect to each Plan Year, the Actual
Contribution Percentage for Highly Compensated Members shall not exceed the
greater of (i) 125 percent of the Actual Contribution Percentage for all other
Members for the Plan Year or (ii) the lesser of (a) 200 percent of the Actual
Contribution Percentage of all other Members for the Plan Year or (b) the Actual
Contribution Percentage of all other Members for the Plan Year plus 2 percentage
points. In the event the Actual Contribution Percentage for Highly Compensated
Members for any Plan Year exceeds the limits described above, the following shall
occur: (1) the Plan Administrator shall determine the hypothetical reductions of the
Highly Compensated Employees beginning with the highest Actual Contribution
Percentage and moving toward lower percentages until one of such limitations is met,
(2) the Plan Administrator shall then determine the total dollar amount of such
reductions, and (3) the Plan Administrator shall then reduce the After-Tax Savings
and Matching Company Contributions of the Highly Compensated Employees beginning with
the highest dollar amount and moving toward lower dollar amounts until the total
dollar amount in (2) above is reached. A Member’s Actual Contribution Percentage
shall be determined after a Member’s excess Before-Tax and Roth 401(k) Savings are
either recontributed to the Plan as After-Tax Savings or paid to the Member. Such
amount of excess aggregate contributions, as adjusted for investment experience, will
be returned to, or paid to, the Members for whom such contributions were made within
12 months following the end of the Plan Year for which the contributions were made.
To the extent contributions must be paid or returned to a Member under the preceding
sentence, the distribution shall be made from the following categories of
contributions (adjusted to reflect earnings or losses attributable thereto): First,
Supplemental After—Tax Savings; second, Basic After—Tax Savings (to the extent that
associated Matching Company Contributions are vested, they also shall be distributed
in this category); third, remaining vested Matching Company Contributions. To the
extent that an additional adjustment is required, nonvested Matching Company
Contributions shall be forfeited. Excess aggregate contributions shall be adjusted
for any income or loss up to the date of distribution in accordance with IRS
regulations; the Plan will not fail to use a reasonable method of computing the
income allocable to excess aggregate contributions merely because the income
allocable to the excess aggregate contributions is determined on a date that is no
more than seven days before the distribution.

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

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

 

- 36 -

 

(iv) For Plan Years commencing before 1997, in determining the Actual
Contribution Percentage of Highly Compensated Members, their After-Tax Savings and
Compensation shall include the After-Tax Savings and Compensation of family members
(as defined in Section 414(q)(6) of the Code). In the event that distribution of
excess contributions is required, appropriate adjustment shall be made for all family
members as provided in the Code.

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

6.3 Annual Limits on Additions to Member Accounts.

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

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

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

(B) Maximum Annual Addition for this Plan. Notwithstanding any provision of this
Plan to the contrary, except as otherwise provided in this Article Six, the Annual Addition
to a Member’s Accounts under the Plan for any Limitation Year, when added to the Member’s
Annual Addition for that Limitation Year under any other qualified defined contribution plan
of the Company or any Affiliate of the Company, shall not exceed the Maximum Annual
Addition. The Maximum Annual Addition shall be the lesser of: (i) $46,000 (for 2008), as
adjusted for increases in the cost-of-living under Code Section 415(d), or (ii) 100 percent
of the Member’s compensation, within the meaning of Code Section 415(c)(3), for the
limitation year. For purposes of this Section 6.3, compensation within the meaning of
Section 415(c)(3) of the Code for a limitation year shall include payments made by the later
of two and a half months after severance from employment or the end of the limitation year
that includes the date of severance from employment, provided that absent a severance from
employment, such payments would have been paid to 

 

- 37 -

 

the employee while the employee continued
in
 employment with the employer and are regular compensation for services during the employee’s
regular working hours, compensation for services outside of the employee’s regular working
hours (such as overtime or shift differential), commissions, bonuses or other similar
compensation. The foregoing limit shall not apply to any contribution for medical benefits
after separation from service (within the meaning of Code Sections 401(h) or 419A(f)(2))
which is otherwise treated as an Annual Addition. For purposes of this Section 6.3,
compensation within the meaning of Section 415(c)(3) of the Code for a limitation year shall
also include differential wage payments made to active duty members of the uniformed
services in accordance with Code Section 3401(h). For this purpose, differential wage
payments shall mean any payment which:

(i) is made by an employer to an individual with respect to any period during which
the individual is performing service in the uniformed services (as defined in chapter
43 of title 38, United States Code) while on active duty for a period of more than 30
days, and

(ii) represents all or a portion of the wages the individual would have received
from the employer if the individual were performing service for the employer.

If the limitation on annual additions to a Member’s Accounts is exceeded, such
excess annual additions shall be corrected as permitted under applicable law, statute,
regulation or procedure.

(C) Maximum Annual Addition for Members Participating in Other Defined Contribution
Plans. In the event that a Member is a participant in any other defined contribution
plans (whether or not terminated) of the Company or an Affiliate, the total amount added to
such Member’s Accounts under this Plan and all such other plans in any Limitation Year shall
not exceed the Maximum Annual Addition. If the limitation on annual additions to a
Participant’s accounts is exceeded, such excess annual additions shall be corrected as
permitted under applicable law, statute, regulation or procedure.

(D) Good Faith Compliance. This Section 6.3 is intended to reflect certain
provisions of the final regulations under Section 415 of the Internal Revenue Code which
became effective for the Plan Year beginning January 1, 2008. The terms of the Plan, and in
particular, this Section 6.3, are intended to be in good faith compliance with the
requirements of the 415 Regulations and are to be construed in accordance with the 415
Regulations and guidance issued thereunder.

 

- 38 -

 

ARTICLE SEVEN

CREDITS TO ACCOUNTS;

ASSET VALUATION AND ALLOCATION

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

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

	 	-Before-Tax Account
	} 	 Employee Contributions
	-Supplemental Before-Tax Savings

	 	-Before-Tax Account
	 	 Investment Account
	 
	 	 	 	 	 	 
	-Basic After-Tax Savings 

	 	-Basic After-Tax Account
	} 	 Employee Contributions
	-Supplemental After-Tax Savings 

-Amounts attributable to qualified
non-elective contributions

	 	-Supplemental After-Tax
Account
	 	 Investment Account

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

	 	- Before-Tax Account
	} 	Employee Contributions
	-Before-Tax Catch-Up Savings On and
After January 1, 2006

	 	-Catch-up Contributions Account
	 	Investment Account
	 
	-Basic Roth 401(k) Savings

	 	-Roth 401(k) Contributions
Account
	} 	Roth 401(k)Contributions
	-Supplemental Roth 401(k) Savings

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

	 	-Roth 401(k) Catch-Up
Contributions Account
	 	 
	 
	 	 	 	 	 	 
	-Before-Tax Rollovers

	 	 	.	 	 	Before-Tax Rollover
Investment Account
	 
	 	 	 	 	 	 
	-After-Tax Rollovers

	 	 	.	 	 	After-Tax Rollover
Investment Account
	 
	 	 	 	 	 	 
	-Roth 401(k) Rollovers

	 	 	.	 	 	Roth 401(k) Rollover
Investment Account
	 
	 	 	 	 	 	 
	-Roth Conversions

	 	 	.	 	 	Roth Conversion 
Investment Account
	 
	 	 	 	 	 	 
	-Matching Company Contributions

(including pre-Distribution ITT 

type)

	 	-Matching Company
Contributions Account
	 	 
	-Floor Company Contributions

	 	-Floor Company Contributions Account
	 	 
	-Prior Plan Transfer 

	 	-Prior Plan Transfers Account
	} 	Company Contributions
	-Pre-2004 Floor Company Contributions

	 	-Pre-2004 Floor Company
Contributions Account
	 	Investment Account
	-Reinvested Dividends attributable
to The Hartford Stock

	 	-Reinvested Dividends Account
	 	 
	 
	 	 	 	 	 	 
	-Planco Profit Sharing Contributions

	 	-Planco Profit Sharing
Contributions Account
	 	Company Contributions

Investment Account
	 
	 	 	 	 	 	 
	-ESOP Account (from
Pre—Distribution ITT Plan)-

	 	-ESOP Account
	 	Company Contributions

Investment Account

 

- 39 -

 

7.2. Crediting of Contributions, Rollovers and Roth Conversions. Member Savings,
Before-Tax Rollovers, After-Tax Rollovers, Roth 401(k) Rollovers, Company Contributions, and Roth
Conversions shall be credited to the appropriate Account as soon as practicable after they are
transferred to the Trust Fund or, in the case of Roth Conversions, as soon as practicable
following conversion.

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

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

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

7.6. Dividends Paid with Respect to The Hartford Stock.

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

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

 

- 40 -

 

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

(D) Cash Payment. Dividends elected to be paid in cash shall be distributed to the Member
or Deferred Member as soon as administratively practicable after the dividend is received by
the Trustee in the Trust Fund. The amount of cash dividends distributed shall be reduced by
the amount of any losses attributable to such dividends while held in the Trust Fund. No
earnings attributable to such dividends shall be distributed.

7.7. Death While Performing Military Service. If a Member dies on or after January 1,
2007 while performing qualified military service as defined in Section 414(u)(1) of the Code, then
in determining any contribution or allocation such Member is otherwise entitled to under the terms
of the Plan, such Member will be deemed to have resumed employment with the Employer on the day
preceding such death and will be deemed to have a Termination of Employment on the actual date of
death.

 

- 41 -

 

ARTICLE EIGHT

INVESTMENT OF SAVINGS AND

CONTRIBUTIONS IN INVESTMENT FUNDS

8.1 Investment Funds Available under the Plan. The investment alternatives available
under the Plan shall include (i) The Hartford Stock Fund and (ii) each other Investment Fund
approved for the purpose by the Investment and Savings Plan Investment Committee. All
contributions to the Plan shall be invested by the Trustee in The Hartford Stock Fund or such other
Investment Funds in accordance with the investment elections by Members or Deferred Members made in
accordance with the Plan or in the default investment fund provided for in the absence of such an
election.

The Investment and Savings Plan Investment Committee may from time to time add Investment Funds to,
or eliminate Investment Funds from, the group of Investment Funds available hereunder, provided,
however, that such Committee shall have no authority with respect to The Hartford Stock Fund.
Notwithstanding the foregoing, the Trustee temporarily may hold cash or make short-term investments
in obligations of the United States Government, commercial paper, an interim investment fund for
tax-qualified employee benefit plans established by the Trustee, or other investments of a
short-term nature, unless otherwise provided by applicable law.

It is the intention of Hartford Fire, the sponsor of the Plan, that The Hartford Stock Fund shall
be a permanent feature of the Plan, and shall continue to be invested exclusively in The Hartford
Stock (except to the extent of cash in The Hartford Stock Fund necessary to facilitate transactions
into and out of The Hartford Stock Fund) without regard to (A) the diversification of assets, (B)
the risk profile of investment in The Hartford Stock, to the maximum extent consistent with the
presumption of prudence established under applicable law with respect to investments by an eligible
individual account plan as defined in ERISA (“EIAP”) and/or ESOP in employer common stock, (C) the
amount of income provided by The Hartford Stock, (D) fluctuation in the fair market value of The
Hartford Stock, and (E) the relative investment returns of The Hartford Stock Fund in comparison to
any investment index, industry peer group, or any other performance measure that might be
appropriate to investment options other than The Hartford Stock Fund, in view of the purpose of the
Plan as an EIAP, and of The Hartford Stock Fund as an ESOP, provide Members (including Deferred
Members) with the opportunity to own beneficially The Hartford Stock. The Company shall appoint an
independent named fiduciary and investment manager for the assets of the Plan that consist of The
Hartford Stock held in The Hartford Stock Fund (the “Stock Fund Fiduciary”), and it is the
intention that the Stock Fund Fiduciary shall maintain The Hartford Stock Fund as a permanent
feature of the Plan in accordance with this section to the fullest extent permitted by ERISA
(taking into account, without limitation, that Members and Deferred Members have available to them
other investment options under the Plan and are able to construct a diversified portfolio of
investments consistent with their individual desired level of risk and return). To the extent
permitted by law, and to the extent not otherwise paid by the Company, expenses associated with the
services provided by the Stock Fund Fiduciary shall be paid from the assets of the Plan.

 

 - 42 - 

 

8.2 Trustee Investment of Contributions in Investment Funds. Contributions to the Plan
shall be invested by the Trustee in the Investment Funds as described below. Accounts shall be
established for each Member and Deferred Member in any Investment Fund as to which Savings,
Before-Tax Rollovers, After-Tax Rollovers, Roth 401(k) Rollovers, Company Contributions, Roth
401(k) Contributions and Roth Conversions are made, contributed, or otherwise properly allocated,
subject to the below paragraphs.

(A) Accounts. A Member or Deferred Member shall direct the investment of each of
his or her Employee Contributions Investment Account, Company Contributions Investment
Account, Before-Tax Rollover Investment Account, After-Tax Rollover Investment Account, Roth
401(k) Contributions Investment Account, Roth 401(k) Rollover Investment Account, and Roth
Conversion Investment Account in multiples of 1% in one or more of the Investment Funds, as
properly elected by the Member or Deferred Member. In the event that a proper Investment
Fund election is not made with respect to any Account, such account shall be invested in the
applicable Default Vanguard Target Retirement Fund set forth in Section 8.3(G).
Notwithstanding the previous sentence, in the event that a proper Investment Fund election
is not on file for any Member or Deferred Member, the settlement proceeds paid to such
Member or Deferred Member as a result of the settlement of In re. Hartford Financial
Services Group, Inc. ERISA Litigation, No. 3:08-cv-01708 (D. Conn.), shall be invested in
the Stable Value Fund.

(B) Investment of Floor Company Contributions Prior to Allocation. Pending
allocation to Member Accounts, Floor Company Contributions may be invested in an investment
fund (other than The Hartford Stock Fund) as designated by the Investment and Savings Plan
Investment Committee.

8.3 Changes in Investment Elections.

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

(B) Change of Investment Funds for Future Contributions. A Member may elect to
change the Investment Funds in which his or her future contributions to his or her
After-Tax Rollover Investment Account, Before-Tax Rollover Investment Account, Company
Contributions Investment Account, Employee Contributions Investment Account, Roth 401(k)
Contributions Investment Account, Roth 401(k) Rollover Investment Account, or Roth
Conversion Investment Account shall be invested, in accordance with the rules described in
the preceding paragraph.

 

 - 43 - 

 

(C) Redistribution Among Investment Funds for Past Contributions. A Member or
Deferred Member may elect to redistribute amounts attributable to past contributions to his
or her After-Tax Rollover Investment Account, Before-Tax Rollover Investment Account,
Company Contributions Investment Account, Employee Contributions Investment Account, Roth
401(k) Contributions Investment Account, Roth 401(k) Rollover Investment Account, or Roth
Conversion Investment Account among any of the Investment Funds, in accordance with the
rules of Section 8.3(A), except that if a Member transfers amounts out of the Stable
Value Fund, those amounts may not be transferred to the Hartford Money Market HLS Fund or
the Hartford Total Return Bond Fund for a period of 90 days.

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

(E) “Round Trip” Transaction limit. To prevent excessive trading, a Member or
Deferred Member will be restricted on “round trip transactions” between any Hartford HLS
mutual funds, the Vanguard Target Retirement funds, and the RS Partners Y Fund. A roundtrip
transaction occurs when a Member exchanges in and then out of an investment fund option
within 30 days. Exchanges do not include systematic contributions or withdrawals (i.e.,
regular contributions, loan payments, hardship withdrawals) or exchanges of $1,000 or less.

Members are limited to one roundtrip transaction per investment fund within any rolling
90-day period, subject to an overall limit of four roundtrip transactions across all funds
subject to the restrictions over a rolling 12-month period. If a Member has two or more
roundtrip transactions with respect to a single fund within a rolling 90- day period, he or
she will be blocked from making additional purchases of the fund for 85 days. If a Member
has four or more roundtrip transactions across all funds subject to the restrictions during
any rolling 12-month period, he or she will be limited to one exchange day per calendar
quarter for a one-year period.

Notwithstanding the foregoing rules, the excessive trading rules and other trading limits
established or imposed by the Investment Funds and/or the recordkeeper shall govern.

 

 - 44 - 

 

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

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

For contributions made prior to December 1, 2009:

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

	 	Vanguard Target Retirement Income Fund
	 
	 	 
	1940 through 1944

	 	Vanguard Target Retirement 2005 Fund
	 
	 	 
	1945 through 1954

	 	Vanguard Target Retirement 2015 Fund
	 
	 	 
	1955 through 1964

	 	Vanguard Target Retirement 2025 Fund
	 
	 	 
	1965 through 1974

	 	Vanguard Target Retirement 2035 Fund
	 
	 	 
	1975 or later

	 	Vanguard Target Retirement 2045 Fund

For contributions made on and after December 1, 2009 but prior to February 1, 2012:

	 	 	 
	Member's or Deferred	 	 
	Member's Date of Birth	 	Default Target Retirement Fund
	 
	 	 
	Prior to 1937

	 	Vanguard Target Retirement Income Fund
	 
	 	 
	1937 through 1942

	 	Vanguard Target Retirement 2005 Fund
	 
	 	 
	1943 through 1947

	 	Vanguard Target Retirement 2010 Fund
	 
	 	 
	1948 through 1952

	 	Vanguard Target Retirement 2015 Fund
	 
	 	 
	1953 through 1957

	 	Vanguard Target Retirement 2020 Fund
	 
	 	 
	1958 through 1962

	 	Vanguard Target Retirement 2025 Fund
	 
	 	 
	1963 through 1967

	 	Vanguard Target Retirement 2030 Fund

 

 - 45 - 

 

	 	 	 
	Member's or Deferred	 	 
	Member's Date of Birth	 	Default Target Retirement Fund
	 
	 	 
	1968 through 1972

	 	Vanguard Target Retirement 2035 Fund
	 
	 	 
	1973 through 1977

	 	Vanguard Target Retirement 2040 Fund
	 
	 	 
	1978 through 1982

	 	Vanguard Target Retirement 2045 Fund
	 
	 	 
	1983 or Later

	 	Vanguard Target Retirement 2050 Fund

For contributions made on or after February 1, 2012:

	 	 	 
	Member's or Deferred	 	 
	Member's Date of Birth	 	Default Target Retirement Fund
	 
	 	 
	Prior to 1943

	 	Vanguard Target Retirement Income Trust II
	 
	 	 
	1943 through 1947

	 	Vanguard Target Retirement 2010 Trust II
	 
	 	 
	1948 through 1952

	 	Vanguard Target Retirement 2015 Trust II
	 
	 	 
	1953 through 1957

	 	Vanguard Target Retirement 2020 Trust II
	 
	 	 
	1958 through 1962

	 	Vanguard Target Retirement 2025 Trust II
	 
	 	 
	1963 through 1967

	 	Vanguard Target Retirement 2030 Trust II
	 
	 	 
	1968 through 1972

	 	Vanguard Target Retirement 2035 Trust II
	 
	 	 
	1973 through 1977

	 	Vanguard Target Retirement 2040 Trust II
	 
	 	 
	1978 through 1982

	 	Vanguard Target Retirement 2045 Trust II
	 
	 	 
	1983 or Later

	 	Vanguard Target Retirement 2050 Trust II

Existing balances invested in the Default Investment Funds (other than the Vanguard
Target Retirement 2005 Fund) as of market close on January 31, 2012 shall be
transferred from the applicable Vanguard Target Retirement Fund to the corresponding
trust of the same target date identified above; the balance of the Vanguard Target
Retirement 2005 Fund shall be transferred to the Vanguard Target Retirement Income
Trust II.

In the event that there is no date of birth on record for a participant who has failed
to provide investment direction, his or her Accounts shall be invested in the Vanguard
Target Retirement Income Trust II.

 

 - 46 - 

 

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

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

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

8.5 Member Voting of The Hartford Stock. Each Member, Deferred Member and Beneficiary is
for the purposes of this Section hereby designated a named fiduciary within the meaning of Section
402(a)(2) of ERISA with respect to any shares of The Hartford Stock allocated to their respective
Accounts, and may direct the Trustee as to the manner in which such Stock is to be voted. Before
each annual or special meeting of shareholders of The Hartford, there shall be sent to each such
person a copy of the proxy solicitation material for such meeting, together with a form requesting
instructions to the Trustee on how to vote such Stock. Upon receipt of such instructions, the
Trustee shall vote such Stock as instructed. In lieu of voting fractional shares of such Stock as
so instructed, the Trustee may vote the combined fractional shares of such Stock to the extent
possible to reflect the directions of the Members, Deferred Members and Beneficiaries with
allocated fractional shares of each class of such Stock. The Trustee shall vote shares of such
Stock allocated to Accounts under the Plan, for which no valid voting instructions were received,
in the same manner and in the same proportion that the shares of The Hartford Stock with respect to
which the Trustee received valid voting instructions are voted. Instructions to the Trustee shall
be in such form and pursuant to such regulations as the Plan Administrator may prescribe. Any
instructions received by the Trustee regarding the voting of The Hartford Stock shall be
confidential and shall not be divulged by the Trustee to the Company, or to any director, officer,
employee or agent of the
Company, it being the intent of this Section to ensure that the Company (and its directors,
officers, employees and agents) cannot determine the voting instructions given by any person.

 

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

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

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

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

 

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

 

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ARTICLE NINE

MEMBER LOANS

BEFORE TERMINATION OF EMPLOYMENT

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

9.2 Conditions for Taking a Loan.

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

(B) Order of Sources for Loans. The order of sources for any loan shall be
determined according to rules established by the Plan Administrator in a consistent and
nondiscriminatory manner.

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

(D) Maximum Number of Loans. A Member may have no more than two loans outstanding
at any time. Employees who become Members of the Plan on January 1, 2009 as a result of the
merger of the Planco Profit Sharing Plan into this Plan shall be permitted to continue to
have three loans outstanding until one of the three is repaid in full, if they have three
outstanding at the time of the plan merger.

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

 

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

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

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

9.6 Outstanding Loan Balance at Termination of Employment.

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

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

 

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

 

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ARTICLE TEN

MEMBER WITHDRAWALS

BEFORE TERMINATION OF EMPLOYMENT

10.1 Non-Hardship Withdrawals.

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

(B) Conditions for Non-Hardship Withdrawals.

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

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

(iii) Order of Sources for Withdrawals. The order of sources for any withdrawal
shall be determined according to rules established by the Plan Administrator in a
consistent and nondiscriminatory manner, provided, however, that the following
limitations shall apply:

(a) In the case of a withdrawal prior to the Member’s attainment of age 59 1/2 ,
the Member’s Before-Tax Account, Catch-Up Contributions Account, Roth 401(k)
Contributions Account, Roth 401(k) Catch-Up Contributions Account, Floor Company
Contributions Account and amounts attributable to qualified nonelective contributions
cannot be withdrawn. Vested Matching Company Contributions in the Matching Company
Contributions Account can be withdrawn except that a Member who has completed less
than 60 months of Service may only withdraw the vested Matching Company Contributions
that were made more than 24 months before the proposed withdrawal date.

(b) In the case of a withdrawal following the Member’s attainment of age 59 1/2,
the entire balance of the Member’s Accounts shall be available for withdrawal.

 

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

10.2 Hardship Withdrawals

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

(B) Bona Fide Financial Hardship and Immediate and Heavy Financial Need Required.
A hardship withdrawal will not be permitted unless the Member establishes that a bona fide
financial hardship exists. For this purpose, a bona fide financial hardship means an
immediate and heavy need to draw on financial resources not reasonably available from other
sources of the Member. Bona fide financial hardships are (i) costs directly related to the
purchase of a principal residence for the Member (excluding mortgage payments), (ii)
expenses for (or necessary to obtain) medical care that would be deductible under Code
Section 213(d) (determined without regard to whether the expenses exceed 7.5% of adjusted
gross income), (iii) payment of tuition, related educational fees, and room and board
expenses, for up to the next 12 months of post-secondary education for the Member, or the
Member’s spouse, children, or dependents (as defined in Code Section 152, and without regard
to Code Section 152(b)(1), (b)(2) and (d)(1)(B)), (iv) payments necessary to prevent the
eviction of the Member from his or her principal residence or foreclosure on the mortgage on
that residence, (v) payments for burial or funeral expenses for the Member’s deceased
parent, spouse, children or dependents (as defined in Code Section 152, and without regard
to Code Section 152(d)(1)(B)), and (vi) expenses for the repair of damage to the Member’s
principal residence that would qualify for the casualty deduction under Code Section 165
(determined without regard to whether the loss exceeds 10% of adjusted gross income)
(collectively, “Safe Harbor Hardships”). In order to receive a withdrawal for a Hardship, a
Member must agree to suspend all Before-Tax Savings, Roth 401(k) Savings, After-Tax Savings,
Before-Tax Catch-Up Savings and Roth 401(k) Catch-Up Savings as well as all stock option,
stock purchase or similar plans maintained by the Company for a six month period as
described in Article Four. Determinations of Safe Harbor Hardship shall be made in a uniform
and nondiscriminatory manner in accordance with applicable tax law under Code Section
401(k). Withdrawals by reason of non-Safe Harbor Hardships will not be approved under the
Plan.

 

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

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

10.3 Penalty for Making Withdrawals from Certain Accounts. Matching Company Contributions
under Article 5 will be suspended for three months after the applicable Withdrawal Valuation Date
for any Member who has not reached age 591/2 and who makes a non-hardship or hardship withdrawal of
any amount from his or her Basic After-Tax Account, or any amount of vested Matching Company
Contributions from his or her Company Contributions Investment Account. This suspension also
applies in the event of a withdrawal of Planco Profit Sharing Contributions or amounts withdrawn
from the Reinvested Dividends Account or Roth Conversion Investment Account.

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

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

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

 

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ARTICLE 10A

ROTH CONVERSIONS

10A.1 Request for a Roth Conversion.

(A) Generally. Effective October 1, 2011, at any time before or after Termination
of Employment, a Member or a Deferred Member (other than a beneficiary or alternate payee
who, as defined under federal law, is not a spouse or former spouse) may make a request, in
a manner and by the date required by the Plan Administrator, for an in-plan Roth rollover in
accordance with Code section 402A(c)(4) of a dollar amount from the vested portion of his or
her Accounts. Such request shall be fulfilled to the extent that the conditions of 10A.1(B)
and 10A.2 are satisfied, and cannot be reversed. An in-plan Roth rollover shall be known as
a Roth Conversion and shall be credited to and held in a separate Roth Conversion Investment
Account. A Roth Conversion shall be deducted, in kind, from a Member’s or Deferred Member’s
Accounts as of the Withdrawal Valuation Date, and will be converted and deposited in a Roth
Conversion Investment Account established for that conversion as soon as practicable
thereafter.

(B) Roth Conversion Rules.

	 	(i)	 	Eligible Amount. An amount is eligible for Roth
Conversion if it is:

	 
	 	(a)	 	an eligible rollover distribution (as defined in Section 402(c)(4) of the
Code), and

	 
	 	(b)	 	an Account described in Section 10A.2 below.

	 
	 	(ii)	 	Proration of Roth Conversion Among Accounts. Roth
Conversions by Members or Deferred Members with Accounts in more than one
Investment Fund must be prorated among such Accounts based on their respective
values.

	 
	 	(iii)	 	Minimum Amount for Conversion. The amount for a Roth
Conversion must be at least $500.

	 
	 	(iv)	 	Outstanding Loan Balance. Any outstanding loan balance
shall not be eligible for Roth Conversion.

	 
	 	(v)	 	Special Rule for Certain Amounts Attributable to the Planco
Profit Sharing Plan. The rules set forth in Section 11.5(E) of the Plan,
relating to the application of survivor annuity rules, shall continue to apply,
upon a Roth Conversion, to the amounts described in that Section.

 

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

	 	 	10A.2 Eligible Accounts and Order of Sources for Roth Conversion. A Member or Deferred
Member (other than a beneficiary or alternate payee who, as determined under federal law, is
not a spouse or former spouse) may roll over in a Roth Conversion all or a portion of his or
her Accounts in accordance with subsections (A) or (B) below, as applicable.

(A) Prior to Age 591/2 and Prior to Termination of Employment. A Member who has not
attained age 591/2 may roll over in a Roth Conversion the following Accounts:

	 	(i)	 	Supplemental After-Tax Account.

	 
	 	(ii)	 	After-Tax Rollover Investment Account.

	 
	 	(iii)	 	Before-Tax Rollover Investment Account.

	 
	 	(iv)	 	ESOP Account.

	 
	 	(v)	 	Pre-2004 Floor Company Contributions Account. Amounts attributable to
Floor Company Contributions made with respect to payroll periods commencing on or
after January 1, 2004 cannot be converted pursuant to this provision.

	 
	 	(vi)	 	Basic After-Tax Account.

	 
	 	(vii)	 	Vested Matching Company Contributions in the Company Contributions
Investment Account, except that a Member who has completed less than 60 months of
Service may only convert the vested Matching Company Contributions that were made
more than 24 months before the proposed conversion date.

	 
	 	(viii)	 	Vested portion of Planco Profit Sharing Contributions Account.

	 
	 	(ix)	 	Reinvested Dividends Account.

	 
	 	(x)	 	Prior Plan Transfers Account.

(B) Age 59 1/2 or Older or Following Termination of Employment. A Member who is age
59 1/2 or older and a Deferred Member (other than a beneficiary or alternate payee who, as
determined under federal law, is not a spouse or former spouse) may roll over in a Roth
Conversion all or a portion of his or her Accounts. In the event that the Member or
Deferred Member elects to roll over a portion of, and not his or her total Accounts, the
order of
sources from which Roth Conversion amounts will be taken from his/her Accounts will be
determined according to procedures established by the Plan Administrator.

 

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10A.3 Matching Company Contributions Following a Roth Conversion. Matching Company
Contributions shall not be suspended for any Member by reason of a Roth Conversion.

10A.4 Roth Conversion Rules. This Article 10A is intended to reflect IRS guidance
regarding the Roth Conversion feature. In the event that such guidance is modified, or
additional guidance is issued, this Article 10A shall be deemed to be amended to reflect
such guidance.

 

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ARTICLE ELEVEN

DISTRIBUTIONS FROM ACCOUNTS

11.1 Types of Distributions

(A) Distribution or Deferral for Members Under Age 70 1/2. Upon Termination of
Employment, a Member may request a distribution of the value of his or her Vested Share. If
a Member does not make such a request, and the value of such Vested Share is less than
$5,000 (effective March 28, 2005, is $1,000 or less), such value will be paid to the Member
in a single lump sum payment as soon as practicable. If a Member does not make such a
request, and the value of the Member’s Vested share is $5,000 or more (effective March 28,
2005, is greater than $1,000), the Member shall be deemed to request a deferral of the
distribution of such Vested Share until such time that the Member reaches age 70 1/2. Such
a Member automatically shall become a Deferred Member, and may request a distribution of all
or part of the Vested Share at any time before reaching age 70 1/2 (subject to a minimum
distribution amount of $500 for any partial distribution) in accordance with the Plan.

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

 

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Notwithstanding Section 11.1(B) and (C) of the Plan, a Member or Beneficiary who would have
been required to receive required minimum distributions for 2009 but for the enactment of
section 401(a)(9)(H) of the Code (“2009 RMDs”), and who would have satisfied that
requirement by receiving distributions that are equal to the 2009 RMDs, will not receive
those distributions for 2009 unless the Member or Beneficiary chooses to receive such
distributions. Members and Beneficiaries described in the preceding sentence will be given
the opportunity to elect to receive the distributions described in the preceding sentence. A
Member who would have satisfied the requirement by receiving one or more payments in a
series of substantially equal distributions (that include the 2009 RMDs) made at least
annually and expected to last for the life (or life expectancy) of the Member, the joint
lives (or joint life expectancy) of the Member and the Member’s designated beneficiary, or
for a period of at least 10 years (“Extended 2009 RMDs”) will continue to receive those
distributions for 2009. In addition, notwithstanding Section 11.8 of the Plan, and solely
for purposes of applying the direct rollover provisions of the Plan, 2009 RMDs may be
considered as eligible rollover distributions in 2009 to the extent they otherwise meet the
requirements of Section 11.8(B).

(C) Distribution to Beneficiary in the Event of Death. Upon the death of a Member
or Deferred Member, the value of such person’s Vested Share shall be distributed in a lump
sum to his or her Beneficiary. However, if the value of the Vested Share is $5,000 or more
(effective January 1, 2006, is greater than $1,000): ( i ) if the Beneficiary is a spouse,
such spouse may elect to defer receipt of the Vested Share until the year in which the Member
or Deferred Member would have reached age 70 1/2, or (ii) if the Beneficiary is a Non-Spouse
Beneficiary, such Beneficiary may elect to defer receipt of the Vested Share for up to five
years from the date of death of the Member or Deferred Member or may elect to receive a
periodic distribution under Section 11.7(B), subject to such minimum distribution rules as
may be required by law or determined appropriate by the Plan Administrator. If the value of
the Vested Share to be distributed is $5,000 or more (effective January 1, 2006, is greater
than $1,000) and the Beneficiary does not file application for distribution of such Vested
Share nor elect to defer receipt of such Vested Share, (i) if the Beneficiary is a spouse,
then such Beneficiary shall be deemed to have elected to defer receipt of such Vested Share
until the Member or Deferred Member would have reached age 70 1/2, or (ii) if the Beneficiary
is a Non-Spouse Beneficiary, then such Beneficiary shall be deemed to have elected to defer
receipt of such Vested Share until the end of the calendar year following the calendar year
in which the death of the Member or Deferred Member occurred. However, any Beneficiary
described in the preceding sentence may file application for distribution of all or part of
such Vested Share at any time prior to the date when such distribution is required to be
made, subject to a minimum distribution amount of $500 for partial distributions to spouses,
and subject to such minimum distribution rules as may be required by law or determined
appropriate by the Plan Administrator for partial distributions to Non-Spouse Beneficiaries.

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

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

 

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

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

(x) five years; or

(y) if the fair market value of the Vested Share invested in The Hartford Stock Fund
exceeds $885,000 (in 2006) as of the date distribution is required to begin under
this Article Eleven, five years plus an additional one year (up to an additional five
years) for each $175,000 increment or fraction thereof by which such value exceeds
$885,000. The dollar amounts prescribed in this paragraph shall be adjusted for cost
of living increases as prescribed by the Secretary of the Treasury.

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

11.3 Valuation of Distribution; Order of Sources. Distributions will be valued as of the
Withdrawal Valuation Date. The order of sources for any distribution shall be determined according
to rules established by the Plan Administrator in a consistent and nondiscriminatory manner.

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

	 	(1)	 	The Member attains age 65,

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

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

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

 

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

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

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

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

(E) Special Distribution Rules for Certain Amounts Attributable to the Planco Profit
Sharing Plan. Amounts under this Plan attributable to certain defined benefit plan
amounts under the Planco Profit Sharing Plan will be subject the survivor annuity
requirements of Code Section 401(a)(11) and 417. Any distributions subject to such
requirements shall be made in accordance with Sections 16.5 and 16.6 of the Planco Profit
Sharing Plan Basic Plan Document as it existed on December 31, 2008.

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

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

(B) Annual Installments over Expected Life. Annual payments may be made to a Member
over a period of years in an amount determined under Appendix A. The first of such payments
shall be made as soon as practicable after the applicable Valuation Date, and the remaining
payments shall be made annually on each anniversary thereafter. The amount of each payment
shall be determined by dividing the value of the recipient’s Accounts as of
the applicable Valuation Date by the applicable Distribution Period set forth in Appendix A
based upon the Member’s attained age in the year of the distribution.

 

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

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

11.7 Distribution in the Event of Death.

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

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

 

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

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

11.8 Direct Rollover of Certain Distributions.

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

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

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

 

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(ii) “Eligible Rollover Distribution” is a distribution of any part of a person’s
Vested Share, except: (a) any distribution that is one of a series of substantially
equal periodic payments made for the life or life expectancy of the Distributee, or
for a specified period of ten years or more, (b) any distribution required under Code
Section 401(a)(9), (c) any hardship withdrawal under Section 10.2 of the Plan, (d)
any portion of a distribution not includable in gross income, and (e) any other
distribution that does not qualify as an eligible rollover distribution under the
Code. A portion of a distribution shall not fail to be an eligible rollover
distribution merely because the portion consists of after-tax contributions or Roth
401(k) contributions which are not includible in gross income. However, such portion
may be transferred only to an individual retirement account or annuity described in
Code Section 408(a), 408(b) or 408A or to a qualified defined contribution plan
described in Code Section 401(a) or 403(a) that agrees to separately account for
amounts so transferred, including separately accounting for the portion of such
distribution which is includible in gross income and the portion of such distribution
which is not so includible.

(iii) “Eligible Retirement Plan” means, to the extent permitted by the Code, (a) an
individual retirement account described in Code Section 408(a), (b) an individual
retirement annuity described in Code Section 408(b), (c) an annuity plan described in
Code Section 403(a), (d) a qualified plan described in Code Section 401(a) that
accepts the Eligible Rollover Distribution, (e) an annuity contract described in Code
Section 403(b), (f) an eligible plan under Code Section 457(b) which is maintained by
a state, a political subdivision of a state, or any agency or instrumentality of a
state or political subdivision of a state, and which agrees to separately account for
amounts transferred into such plan from this Plan, or (g) a Roth individual
retirement account described in Section 408A of the Code (subject to certain income
restrictions for Direct Rollovers made before January 1, 2010). The definition of
Eligible Retirement Plan shall also apply in the case of a distribution to a
surviving spouse, or to a spouse or former spouse who is the alternate payee under a
qualified domestic relations order, as defined in Code Section 414(p).

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

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

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

 

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

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

11.11 Claims Procedure. The Pension Administration Committee shall establish claims
procedures in accordance with applicable law and shall afford a reasonable opportunity to any
person whose claim for benefits has been denied for a full and fair review of the decision denying
such claim.

Any individual having a claim for benefits under the Plan shall be required to exhaust the
administrative remedies available under the Plan prior to filing a claim for benefits in a court of
law. Any such claim must be filed in a court no later than twelve (12) months following the date
on which such individual commenced receiving benefits from the Plan, or, if earlier, the date the
individual purportedly should have commenced receiving benefits. Such twelve (12) month period
(the “limitation period”) shall be measured without regard for any period of time during which a
claim for such benefits is pending before the Pension Administration Committee. The limitation
period set
forth herein is intended to apply without regard for any state or federal statute of limitations
that might otherwise apply to an individual’s claim for benefits from the Plan if the Plan were
silent on the limitations of claims. Any claim filed after the limitations period set forth herein
has lapsed shall be time-barred.

 

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ARTICLE TWELVE

QUALIFIED DOMESTIC RELATIONS ORDERS

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

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

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

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

 

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

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

 

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ARTICLE THIRTEEN

GENERAL MATTERS

RELATING TO COMMITTEES

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

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

13.2 Named Fiduciaries. Each Committee appointed pursuant to the Plan, and the Stock Plan
Fiduciary appointed under Section 8.1, is designated as a named fiduciary within the meaning of
Section 402(a) of ERISA.

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

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

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

 

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

13.7 Delegation of Committee Authority. Each Committee may in its sole discretion
delegate to one or more of its members or alternate members, or to an administrator or manager, or
to such other individual or agent as may be selected by the Committee, all or a portion of its
authority, powers and responsibilities, including the authority to supervise the conduct of the
daily affairs of the Committee, or to take any other action on behalf of the delegating Committee
as may be determined appropriate by the Committee in its sole discretion (including the execution
or delivery of any instrument or the making of any payment on behalf of the Committee), each of
which of the foregoing shall be carried out in accordance with the provisions of the Plan and any
policies which may from time to time be established by the delegating Committee.

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

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

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

 

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ARTICLE FOURTEEN

ADMINISTRATION OF PLAN -

PENSION ADMINISTRATION COMMITTEE

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

14.2 Authority and Responsibilities of Pension Administration Committee. The Pension
Administration Committee shall be responsible, except with respect to matters that are the
responsibility of the Investment and Savings Plan Investment Committee or Stock Fund Fiduciary
appointed under Section 8.1 or as otherwise herein expressly provided, for general supervision of
the administration of the Plan. Said Committee shall also have such authority, powers and
responsibilities as are set forth in the Plan or may be delegated by the Board of Directors as
provided in Article Thirteen. Said Committee shall also have the right to exercise powers reserved
to the Board of Directors hereunder, including the right to amend the Plan, to the extent that, in
the judgment of said Committee, the exercise of such powers does not involve any material cost to
the Company.

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

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

 

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

 

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ARTICLE FIFTEEN

MANAGEMENT OF INVESTMENT FUNDS -

INVESTMENT AND SAVINGS PLAN INVESTMENT COMMITTEE

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

15.2 Authority and Responsibilities of Investment and Savings Plan Investment Committee.
The Investment and Savings Plan Investment Committee shall be responsible, except as otherwise
herein expressly provided, for directing and coordinating all activity relating to the investment
management of the assets of the Plan. Said Committee shall also have such authority, powers and
responsibilities as are set forth in the Plan or may be delegated by the Board of Directors as
provided in Article Thirteen, including, but not limited to the following: (A) Establishment of
one or more trusts for the Plan and any funding agreements for the Plan, (B) Selection and
appointment of the Trustee and any funding agents, (C) Provision, consistent with the provisions
of the Plan and applicable trusts, of direction to the Trustee, which may involve but need not be
limited to direction of investment of all or a part of the Plan assets, and (D) Appointment and
provision for use of investment advisors and investment managers. In discharging the foregoing
responsibilities, the Investment and Savings Plan Investment Committee shall evaluate and monitor
the investment performance of the Trustee and investment managers, if any. Where a Stock Fund
Fiduciary has been appointed to act in accordance with Section 8.1 of the Plan, the Investment and
Savings Plan Investment Committee shall have no responsibility or authority to act with respect to
the assets of the Plan that consist of The Hartford Stock held in The Hartford Stock Fund.

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

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

 

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

 

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ARTICLE SIXTEEN

GENERAL AND ADMINISTRATIVE PROVISIONS

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

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

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

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

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

 

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

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

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

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

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

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

 

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

 

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APPENDIX A: Distribution Table

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

 

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