Document:

exv10w11

Exhibit 10.11

LEGACY HEALTHCARE PROPERTIES TRUST INC.

EMPLOYMENT AGREEMENT

of

JOHN KRUEGER

          THIS EMPLOYMENT AGREEMENT (the “Agreement”) is entered into by and between LEGACY
HEALTHCARE PROPERTIES TRUST INC., a Maryland corporation (hereinafter referred to as the
“Company”), and JOHN KRUEGER (hereinafter referred to as the “Executive”) and is
effective as of the Effective Date hereinbelow defined at Section 7.19.

          WHEREAS, the Company has initiated an initial public offering of shares of the Company’s
common stock (the “Initial Offering”);

          WHEREAS, the execution and delivery of this Agreement by the Executive was an inducement to
the Company to consummate the Initial Offering; and

          WHEREAS, the Company wishes to offer employment to the Executive, and the Executive wishes to
accept such offer, on the terms set forth below.

Accordingly, the parties hereto agree as follows:

          1. Term. The Company hereby employs the Executive and the Executive hereby accepts
such employment for an initial term commencing as of the Effective Date and ending on December 31,
2013, unless sooner terminated in accordance with the provisions of Section 4 (the period during
which the Executive is employed hereunder being hereinafter referred to as the “Term”). The
Term shall be subject to automatic one- (1-) year renewals unless notice of non-renewal is provided
between the parties in accordance with the notice provisions of Section 7.6, as follows (if elected
by the Executive or the Company, a “Non-Renewal”): (a) if elected by the Executive, the
Executive will notify the Company of the Non-Renewal at least ninety (90) days prior to the end of
any such Term, or (b) if elected by the Company, the Company will notify the Executive of the
Non-Renewal at least one hundred eighty (180) days prior to the end of any such Term.

          2. Duties. The Executive, in his capacity as Executive Vice President of the Company,
shall faithfully perform for the Company the duties of said office and shall perform such other
duties of an executive, managerial or administrative nature as shall be specified and designated
from time to time by the Chief Executive Officer and the Board of Directors of the Company (the
“Board”). Such duties may include, without limitation, the performance of services for, and
serving on the board of directors of, any subsidiary of the Company without any additional
compensation. The Executive shall devote substantially all of the Executive’s business time and
effort to the performance of the Executive’s duties hereunder. Provided that the following
activities do not interfere with the Executive’s duties to the Company and provided that the
following activities do not violate the Executive’s covenant against competition as described at
Section 6.2 hereof, during the Term the Executive may perform personal, charitable and other
business activities, including, without limitation, serving as a member of one or more boards of
directors of charitable or other professional organizations, and may serve on the boards of
directors of other business organizations that are not engaged in any aspect of the senior housing
industry, provided, however, that service on the boards of directors of other business
organizations shall require the consent of the Board.

          3. Compensation.

               3.1 Salary. The Company shall pay the Executive during the Term a salary at the rate
of Two Hundred Thousand and No/00 Dollars ($200,000) per annum (the “Annual Salary”), in
accordance with the customary payroll practices of the Company applicable to senior executives
generally. The Annual Salary may be increased from time to time by an amount and on such conditions
as may be approved by the Board or the Compensation Committee of the Board (the “Compensation
Committee”), and upon such increase, the increased amount shall thereafter be deemed to be the
Annual Salary. Annual Salary will be paid in monthly or bi-monthly installments as determined by
the Board, and no Annual Salary will be paid later than 75 days after the conclusion of

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any calendar year in which such Annual Salary is deemed earned and payable to the Executive.

               3.2 Cash and Equity Bonus Compensation. The Executive will be eligible to participate
in the Company’s annual bonus program (the “Bonus Plan”) for cash bonus compensation.
Additionally, the Executive will be eligible to participate in the Company’s 2010 Equity Incentive
Plan (the “2010 Equity Incentive Plan”) and any subsequent equity incentive plan approved
by the Board (each and any of the foregoing is a “Company Incentive Plan”) for equity bonus
compensation (any equity compensation granted to the Executive by the Company, whether under this
Agreement, a Company Incentive Plan or otherwise approved by the Board, and whether in the form of
restricted stock, stock options, long-term incentive plan units, stock appreciation rights or other
equity or equity-linked awards, is, collectively, “Equity Compensation”). The terms of the
Bonus Plan, any Company Incentive Plan and the terms of any awards made under any of them will be
established by the Compensation Committee; provided, however, at a minimum, Executive is eligible
for the bonus compensation and Equity Compensation specified in this Agreement and Attachment
“A” attached hereto.

               3.3 Benefits — In General. The Executive shall be permitted during the Term to
participate in any group life, hospitalization or disability insurance plans, health programs,
pension and profit sharing plans, relocation programs and similar benefits that may be available to
other senior executives of the Company generally, on the same terms as may be applicable to such
other executives (except as otherwise provided in this Section 3), in each case to the extent that
the Executive is eligible under the terms of such plans or programs.

               3.4 Paid Time Off. The Executive shall be entitled to no fewer than twenty-five (25)
days of paid time off per year.

               3.5 Disability Benefits and Life Insurance. To the extent the Company’s group life and
disability insurance plans do not provide this level of benefits, the Executive shall be entitled
to additional benefits so that his long-term disability coverage provides benefits (to continue for
such period as is provided in the applicable disability plan or program, as amended from time to
time, and with waiting periods and pre-existing condition exceptions waived to the extent such
coverage is available on commercially reasonable terms) equal seventy-five percent (75%) of his
Annual Salary in the case of a covered disability, and life insurance coverage with a face amount
equal to one (1) times the Executive’s Annual Salary. Premiums on all primary or supplemental
disability policies provided by the Company under this Agreement shall be paid by the Company,
provided that the value of such premiums shall be taxed as income to the Executive.

               3.6 Expenses. The Company shall pay or reimburse the Executive for all ordinary and
reasonable out-of-pocket expenses actually incurred and, in the case of reimbursement, actually
paid by the Executive during the Term in the performance of the Executive’s services under this
Agreement, provided that the Executive shall submit such expenses in accordance with the policies
applicable to senior executives of the Company generally.

               3.7 Earned and Accrued Bonus. For purposes of this Agreement, with respect to
“Earned and Accrued Bonus” payments to be made to the Executive in connection with the
termination of his employment, cash bonus payments and Equity Compensation awards shall be deemed
to be “earned and accrued” (a) if the Executive is employed with the Company as of the date
of the last day of the period for which a bonus payment shall be made or for which Equity
Compensation is vested, if the Executive is employed with the Company as of the date such vested
award or vesting is scheduled to occur; and (b) to the extent that the criteria or performance
goals for determining the amount of such payment or award are objective and measurable criteria,
and such objective and measurable criteria have been satisfied or achieved. Earned and Accrued
Bonus specifically includes, without limitation, any cash payments payable to Executive under the
Bonus Plan and any Equity Compensation that is awarded and vested.

               3.8 Acceleration of Rights upon Change in Control. Upon the occurrence of a “Change in
Control” (as such term is defined in the 2010 Equity Incentive Plan as in effect on the
Effective Date hereof), all Equity Compensation awarded to the Executive under this Agreement, to
the extent not vested as of the date of the Change in Control, shall, immediately prior to the
effectiveness of the Change in Control, be deemed vested (treating any applicable performance
criteria as fully satisfied). Notwithstanding the foregoing, to the extent necessary for the
Executive to avoid taxes and/or penalties under Section 409A of the Internal Revenue Code of

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1986, as amended (the “Tax Code”), a Change in Control shall not be deemed to occur
unless it constitutes a “change in control event” within the meaning of Section 1.409A-3(i)(5) of
the Treasury Regulations promulgated under Section 409A of the Tax Code.

          4. Termination of Employment. The Company may terminate the Executive’s employment
for any reason or for no reason and with or without Cause (as defined herein below). The Executive
may terminate the Executive’s employment with the Company for Good Reason (as defined herein below)
or without Good Reason. The Company or the Executive may terminate the Executive’s employment upon
the Executive’s disability as provided in Section 4.1, or by Non-Renewal. The survival provisions
of this Agreement described at Section 7.15 contemplate without limitation that upon the
termination his employment the Executive shall be subject to the provisions of the Covenant Against
Competition set forth in Section 6.2.

               4.1 Termination upon the Executive’s Death or Disability.

                    (a) If the Executive dies during the Term, the obligations of the Company to or with
respect to the Executive shall terminate in their entirety except as otherwise provided in this
Section 4.1 and except for the surviving provisions of this Agreement as described at Section
7.15.

                    (b) If the Executive becomes eligible for disability benefits under the Company’s long-term
disability plans and arrangements (or, if none apply, would have been so eligible under a
competitive plan as reasonably determined by the Compensation Committee), the Company or the
Executive shall have the right, to the extent permitted by law, to terminate the employment of
the Executive upon at least ninety (90) days’ prior written notice to the other party, provided
that the Company shall not have the right to terminate the Executive’s employment in accordance
with this Section 4.1(b) if, (i) in the opinion of a qualified physician reasonably acceptable
to both parties, it is reasonably certain that the Executive will be able to resume his duties
on a regular full-time basis within one hundred eighty (180) days of the date that the notice of
such termination is delivered, and (ii) upon the expiration of such one hundred eighty (180) day
period, the Executive has resumed his duties on a regular full-time basis.

                    (c) Upon the Executive’s death or the termination of the Executive’s employment by virtue
of disability, all of the following shall apply:

                              (i) the Executive, or the Executive’s estate or beneficiaries in the case of the death of the
Executive, shall have no right to receive any compensation or benefit hereunder on and after the
effective date of the termination of employment, except that the Company shall reimburse
Executive’s COBRA premium under the Company’s major medical group health and dental plan (including
the costs of Executive’s premium required to maintain coverage for his dependents), and the Company
will continue to provide such additional continuing benefits (including without limitation life
insurance benefits) as the Executive and his dependents would have been entitled to under this
Agreement, as on a monthly basis for a period of eighteen (18) months after the termination, and
the Executive, or the Executive’s estate or beneficiaries the case of the death of the Executive,
shall be entitled to receive the Executive’s Annual Salary and other benefits that are earned and
accrued under this Agreement prior to the date of termination, the Executive’s Earned and Accrued
Bonuses, vesting of any Equity Compensation as provided in clause (ii) below, and reimbursement
under this Agreement for expenses incurred prior to the date of such termination;

                              (ii) all of the Equity Compensation awarded to the Executive, to the extent not vested as of
the date of the termination of the Executive’s employment, shall immediately be deemed vested
(treating any applicable performance criteria as fully satisfied), and any outstanding options to
acquire shares of Company stock shall immediately be vested and shall be, as determined in the
discretion of the Board, either (A) exercisable by the Executive or, in the case of the Executive’s
death, by the beneficiaries of Executive’s estate, for one (1) year following the termination (or,
if shorter, the balance of the regular term of the options), or (B) cashed out or cancelled, as if
in accordance with a Change in Control event, pursuant to the terms set forth in Section 14.03 of
the 2010 Equity Incentive Plan as in effect on the Effective Date hereof; and

                              (iii) this Agreement shall otherwise terminate and there shall be no further rights with
respect to the Executive hereunder except for the surviving provisions of this Agreement as
provided in

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Section 7.15. The payments to be made in this Section 4.1(c) shall be in addition to, rather
than in lieu of, the entitlement of Executive or his estate to any other insurance or benefit
proceeds as a result of his death or disability.

               4.2 Termination by the Company for Cause. The Company may terminate the Executive’s
employment at any time for “Cause” if any of the following have occurred:

                    (a) the Executive’s conviction for (or pleading guilty or nolo contendere to) any felony,
or a misdemeanor involving moral turpitude;

                    (b) the Executive’s indictment for any felony or misdemeanor involving moral turpitude, if
such indictment is not discharged or otherwise resolved within eighteen (18) months;

                    (c) the Executive’s commission of an act of fraud, theft, dishonesty or breach of fiduciary
duty related to the Company, its Business (as defined in Section 6.1) or the performance of the
Executive’s duties hereunder;

                    (d) the continuing failure or habitual neglect by the Executive to perform the Executive’s
duties hereunder, except that, if such failure or neglect is curable, the Executive shall have
thirty (30) days from his receipt of a notice of such failure or neglect to cure such condition
and, if the Executive does so to the reasonable satisfaction of the Board (such cure opportunity
being available only once), then such failure or neglect shall not constitute Cause hereunder;

                    (e) any violation by the Executive of the Restrictive Covenants set forth in Section 6
except that, if such violation is not willful and is curable, the Executive shall first have
thirty (30) days from his receipt of notice of such violation to cure such condition and, if the
Executive does so to the reasonable satisfaction of the Board, such violation shall not
constitute Cause hereunder; or

                    (f) the Executive’s material breach of this Agreement, except that, if such breach is
curable, the Executive shall first have thirty (30) days from his receipt of such notice of such
breach to cure such breach and, if the Executive does so to the reasonable satisfaction of the
Board, such breach shall not constitute Cause hereunder.

If the Company terminates the Executive’s employment for Cause, the Executive shall have no right
to receive any compensation or benefit hereunder on and after the effective date of the termination
of employment, except that the Executive shall be entitled to receive the Executive’s Annual
Salary, and other benefits that are earned and accrued under this Agreement prior to the date of
termination, any Earned and Accrued Bonus, and reimbursement under this Agreement for expenses
incurred prior to the date of termination, provided, however, that if the Company terminates the
Executive’s employment for Cause specifically pursuant to Section 4.2(a), (b), or (c) above, then
no Earned and Accrued Bonus shall be payable hereunder. This Agreement shall otherwise terminate
upon such termination of employment and the Executive shall have no further rights or obligations
hereunder except for the surviving provisions of this Agreement as described at Section 7.15.

               4.3 Termination by the Company without Cause. The Company may terminate the
Executive’s employment at any time without Cause upon sixty (60) days prior written notice to the
Executive. If the Company terminates the Executive’s employment without the occurrence of any of
the events constituting Cause and the termination is not due to the Executive’s death or disability
or is not a Non-Renewal, then the termination by the Company is without Cause. If the Company
terminates the Executive’s employment without Cause, then the Severance Package provisions of
Section 5 shall apply, and this Agreement shall otherwise terminate and the Executive shall have no
further rights or obligations hereunder except for the surviving provisions of this Agreement as
described at Section 7.15.

               4.4 Termination of Employment by the Executive for Good Reason. Subject to the notice
and cure provisions set forth below, the Executive may terminate the Executive’s employment with
the Company for Good Reason and receive the Severance Package provisions of Section 5 if any of the
following have occurred without the Executive’s written consent (“Good Reason”):

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                    (a) any material diminution in the Executive’s title, authorities, duties or
responsibilities (including without limitation the assignment of duties inconsistent with his
position, or a significant adverse alteration of the nature or status of his responsibilities,
or a significant adverse alteration of the conditions of his employment);

                    (b) any material diminution in the title, authority, duties, or responsibilities of the
supervisor to whom the Executive is required to report, or any or significant adverse change of
the supervisor to whom the Executive is required to report (including assignment to a new
supervisor which results in a material adverse alteration of the nature or conditions of
Executive’s employment);

                    (c) after there has occurred a Change in Control, any of the following has occurred: (i) a
duplication with other Company personnel of the Executive’s title, authorities, duties or
responsibilities; (ii) a significant adverse alteration of the budget over which the Executive
retains authority; or (iii) a duplication with other Company personnel of the title, authority,
duties, or responsibilities of the supervisor to whom the Executive is required to report;

                    (d) any material reduction of the Executive’s Annual Salary;

                    (e) the Company’s material breach of this Agreement;

                    (f) if, as of the Effective Date, the Company’s corporate headquarters are located in
Orlando, Florida, a requirement by the Company that Executive’s work location be moved more than
fifty (50) miles from the Company’s principal place of business in Orlando, Florida, provided,
however, that if prior to the first anniversary of the Effective Date the Company’s corporate
headquarters are moved to the Washington, D.C. metro area, then a requirement by the Company
made prior to the first anniversary of the Effective Date that Executive’s work location be
moved to the Washington, D.C. metro area shall not constitute Good Reason; or

                    (g) if prior to the first anniversary of the Effective Date the Company’s corporate
headquarters are located in the Washington, D.C. metro area, a requirement by the Company that
Executive’s work location be moved more than fifty (50) miles from the Company’s initial
principal place of business in the Washington, D.C. metro area.

Notwithstanding the forgoing, the Executive shall not be deemed to have terminated this Agreement
for Good Reason unless: (y) the Executive terminates this Agreement no later than six (6) months
following the initial existence of the above referenced event or condition which is the basis for
such termination (it being understood that each instance of any such event shall constitute a
separate basis for such termination and a separate event or condition occurring on the date of such
instance for purposes of calculating the six- (6)-month period); and (z) the Executive provides to
the Company a written notice of the existence of the above referenced event or condition which is
the basis for the termination within sixty (60) days following the initial existence of such event
or condition, and the Company fails to remedy such event or condition within 30 days following the
receipt of such notice. This Agreement shall otherwise terminate upon such termination of
employment and the Executive shall have no further rights or obligations hereunder except for the
surviving provisions of this Agreement as described at Section 7.15.

               4.5 Termination of Employment by the Executive without Good Reason. The Executive may
terminate the Executive’s employment with the Company at any time without Good Reason. If the
Executive terminates his employment without the occurrence of any of the events constituting
“Good Reason” and the termination is not due to the Executive’s death or disability, then
the termination by the Executive is without Good Reason. If the Executive terminates the
Executive’s employment with the Company without Good Reason, the Executive shall have no right to
receive any compensation or benefit hereunder on and after the effective date of the termination of
employment, except that the Executive shall be entitled to receive the Executive’s Annual Salary,
and other benefits that are earned and accrued under this Agreement or under applicable Company
benefit plans prior to the date of termination and reimbursement under this Agreement for expenses
incurred prior to the date of termination. This Agreement shall otherwise terminate upon such
termination of employment and the Executive

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shall have no further rights or obligations hereunder except for the surviving provisions of
this Agreement as described at Section 7.15.

               4.6 Termination upon Expiration and Non-Renewal of Agreement. If the Company
terminates employment by Non-Renewal in accordance with the provisions of Section 1 and Section 7.6
hereof, the Severance Package provisions of Section 5 shall apply. If the Executive terminates
employment by Non-Renewal in accordance with the provisions of Section 1 and Section 7.6 hereof,
the termination will be treated as a termination of his employment without Good Reason. This
Agreement shall otherwise terminate upon the termination of the Executive’s employment, and the
Executive shall have no further rights or obligations hereunder except for the surviving provisions
of this Agreement as described at Section 7.15.

          5. Severance Package for Certain Terminations of Employment. The Executive shall be
entitled to certain rights and shall be bound by certain obligations as described in this Section 5
(the “Severance Package”) if the Executive’s employment terminates under any of the
following conditions: (x) if proper notice is provided as set forth at Section 1 and Section 7.6,
as a result of a Non-Renewal by the Company; (y) if the Company terminates the Executive’s
employment without Cause, or (z) if the Executive terminates the Executive’s employment for Good
Reason. For purposes of this Agreement, the “Severance Package” shall consist of all of
the following rights and obligations:

                    (a) The Executive shall be entitled to receive the Executive’s Annual Salary, and other
benefits that are earned and accrued under this Agreement and under applicable Company benefit
plans prior to the date of termination, any Earned and Accrued Bonus, and reimbursement under
this Agreement for expenses incurred prior to the date of termination;

                    (b) If the Executive signs the general release of claims in favor of the Company in the
form set forth in Attachment “B” and the general release becomes irrevocably effective
not later than forty-five (45) days of the date of the termination event, the Executive shall
also be entitled to all of the following:

                              (i) a cash payment equal to the sum of the Executive’s Annual Salary (as in effect on the
effective date of such termination excluding any reduction not permitted by this Agreement),
plus the greater of (A) the Annual Cash Bonus Compensation (as described on Attachment
“A”) most recently earned by the Executive, whether paid or unpaid, and (B) the average Annual
Cash Bonus Compensation actually paid for the last three full fiscal years (“Average Annual
Bonus”), payable in equal installments over the period that corresponds to the period during
which the covenants provided in Section 6.2 hereof are to be applicable in accordance with the
Company’s usual and customary salary payroll practices. If, at the time of a termination to which
this sub-subparagraph b(i) applies, at least three full fiscal years have not occurred, then to the
extent necessary to calculate the Average Annual Bonus for the last three years as set forth above,
the Target Annual Cash Bonus Compensation (as set forth on Attachment “A”) shall be used
for the missing years); provided, however, that in the event the termination of
employment is in connection with a Non-Renewal by the Company, such payments shall equal the sum of
(AA) the Executive’s Annual Salary (as in effect on the effective date of such termination
excluding any reduction not permitted by this Agreement) plus (BB) the Executive’s Average
Annual Bonus Compensation, which together shall be payable in equal installments over a twelve (12)
month period in accordance with the Company’s usual and customary salary payroll practices (and
made payable to the Executive’s estate in the event that the Executive dies prior to the expiration
of such period); and provided, further, that if the Executive is a “specified
employee” within the meaning of Section 409A of the Tax Code, any payments of “deferred
compensation” (as defined under Treasury Regulation Section 1.409A-1(b)(1), after giving effect to
the exemptions in Treasury Regulation Sections 1.409A-1(b)(3) through (b)(12)), shall not commence
until the first day of the seventh month beginning after the date of the Executive’s “separation
from service” (as defined under Treasury Regulation Section 1.409A-1(h)) to avoid the imposition of
the additional 20% tax under Section 409A of the Tax Code (and in the case of installment payments,
the first payment shall include all installment payments required by this subsection that otherwise
would have been made during such period); and

                              (ii) for a period of eighteen (18) months after termination of employment, the Company shall
reimburse Executive’s COBRA premium under the Company’s major medical group health and

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dental plan (including the costs of Executive’s premium required to maintain coverage for his
dependents), and the Company will provide such additional continuing health, dental, disability and
life insurance benefits applicable to senior executives of the Company generally as the Executive
and his dependents would have received under this Agreement (and for such additional benefits, at
such costs to the Company, provided that the value of premiums on all primary or supplemental
disability policies shall be taxed as income to the Executive) as would have applied in the absence
of such termination or expiration (but not taking into account any post-termination increases in
Annual Salary that may otherwise have occurred without regard to such termination and that may have
favorably affected such benefits), it being expressly understood and agreed that nothing in this
clause (b)(ii) shall restrict the ability of the Company to generally amend or terminate such plans
and programs from time to time in its sole discretion; provided, however, that the
Company shall in no event be required to provide such reimbursements or coverage after such time as
the Executive becomes entitled to receive health benefits from another employer or recipient of the
Executive’s services (and provided, further, that such entitlement shall be determined without
regard to any individual waivers or other arrangements);

                              (iii) all of the Equity Compensation awarded to the Executive, to the extent not vested as of
the date of the termination of the Executive’s employment, shall immediately be deemed vested
(treating the performance criteria for the year of termination as fully satisfied), and any
outstanding options to acquire shares of Company stock shall immediately be vested and shall be, as
determined in the discretion of the Board, either (A) exercisable by the Executive or, in the case
of the Executive’s death, by the beneficiaries of Executive’s estate, for one (1) year following
the termination (or, if shorter, the balance of the regular term of the options), or (B) cashed out
or cancelled, as if in accordance with a Change in Control event, pursuant to the terms set forth
in Section 14.03 of the 2010 Equity Incentive Plan as in effect on the Effective Date hereof.

Unless delayed pursuant to Section 7.21 of this Agreement, payments due under the Severance Package
shall be paid to the Executive (or installment payments shall commence) on the fiftieth
(50th) day following the date of the termination event. This Agreement shall otherwise
terminate upon such termination of employment and the Executive shall have no further rights
hereunder except for surviving provisions of this Agreement as provided in Section 7.15.

          6. Covenants of the Executive.

               6.1 General Covenants of the Executive. The Executive acknowledges that (a) the
principal business of the Company is the acquisition, development and ownership of Healthcare REIT
interests in senior housing properties (such business, and any and all other businesses that after
the date hereof, and from time to time during the Term, become material with respect to the
Company’s then-overall business, herein being collectively referred to as the “Business”)
(for purposes of this Agreement, “Healthcare REIT” shall mean a company that invests in
primarily senior housing properties and that is qualified as a real estate investment trust for
purposes of federal income taxation); (b) the Company knows of a limited number of persons who have
developed the Business; (c) the Business is, in part, national in scope; (d) the Executive’s work
for the Company and its subsidiaries has given and will continue to give the Executive access to
the confidential affairs and proprietary information of the Company and to “trade secrets,” (as
defined in Section 688.002(4) of the Florida Statutes) of the Company and its subsidiaries; (e) the
covenants and agreements of the Executive contained in this Section 6.1 are essential to the
business and goodwill of the Company; and (f) the Company would not have entered into this
Agreement but for the covenants and agreements set forth in this Section 6.1.

               6.2 Covenant Against Competition. The covenant against competition herein described
shall apply as follows:

                    (a) during the Term;

                    (b) for a period of one (1) year following a termination of the Executive’s employment for
any reason; and

                    (c) as to Section 6.2(bb) and (dd), at any time during and after the Executive’s employment
with the Company and its subsidiaries (and the predecessors of either).

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During the time periods for described hereinabove, the Executive covenants as follows:

               (aa) The Executive shall not, directly or indirectly, own, manage, control or participate in
the ownership, management, or control of, or be employed or engaged by or otherwise affiliated or
associated as an employee, employer, consultant, agent, principal, partner, stockholder, corporate
officer, director or in any other individual or representative capacity, engage or participate in
any Healthcare REIT or other financial investment business which owns senior housing properties as
its primary business and that has assets in excess of Two Hundred Million and No/00 Dollars
($200,000,000), if such business is in competition in any manner whatsoever with the Business of
the Company in any state or country or other jurisdiction in which the Company conducts its
Business as of the date of termination; provided, however, that, notwithstanding
the foregoing, (i) the Executive may own or participate in the ownership of any entity which he
owned or managed or participated in the ownership or management of prior to the Effective Date
which ownership, management or participation has been disclosed to the Company; and (ii) the
Executive may invest in securities of any entity, solely for investment purposes and without
participating in the business thereof, if (A) such securities are traded on any national securities
exchange or the National Association of Securities Dealers, Inc. Automated Quotation System or
equivalent non-U.S. securities exchange, (B) the Executive is not a controlling person of, or a
member of a group which controls, such entity and (C) the Executive does not, directly or
indirectly, own one percent (1%) or more of any class of securities of such entity.

               (bb) Except in connection with the business and affairs of the Company and its affiliates: the
Executive shall keep secret and retain in strictest confidence, and shall not use for his benefit
or the benefit of others, all confidential matters relating to the Business and the business of any
of its affiliates and to the Company and any of its affiliates, learned by the Executive heretofore
or hereafter directly or indirectly from the Company or any of its subsidiaries (or any predecessor
of either) (the “Confidential Company Information”), including, without limitation,
information with respect to the Business and any aspect thereof, profit or loss figures, and the
Company’s or its affiliates’ (or any of their predecessors) properties, and shall not disclose such
Confidential Company information to anyone outside of the Company except with the Company’s express
written consent and except for Confidential Company Information which (i) at the time of receipt or
thereafter becomes publicly known through no wrongful act of the Executive; (ii) is clearly
obtainable in the public domain; (iii) was not acquired by the Executive in connection with the
Executive’s employment or affiliation with the Company; (iv) was not acquired by the Executive from
the Company or its representatives or from a third-party who has an agreement with the Company not
to disclose such information; (v) was legally in the possession of or developed by the Executive
prior to the Effective Date; or (vi) is required to be disclosed by rule of law or by order of a
court or governmental body or agency. For purposes of this Agreement, “affiliate” means, with
respect to the Company, any person, partnership, corporation or other entity that controls, is
controlled by or is under common control with the Company within the meaning of Rule 405 of
Regulation C under the Securities Act of 1933, as now in effect or as hereafter amended.

               (cc) The Executive shall not, without the Company’s prior written consent, directly or
indirectly, (i) knowingly solicit or knowingly encourage to leave the employment or other service
of the Company or any of its affiliates, any employee employed by the Company at the time of the
termination thereof or knowingly hire (on behalf of the Executive or any other person or entity)
any employee employed by the Company at the time of the termination who has left the employment or
other service of the Company or any of its affiliates (or any predecessor of either) within one (1)
year of the termination of such employee’s or independent contractor’s employment or other service
with the Company and its affiliates; or (ii) whether for the Executive’s own account or for the
account of any other person, firm, corporation or other business organization, intentionally
interfere with the Company’s or any of its affiliates, relationship with, or endeavor to entice
away from the Company or any of its affiliates, any person who during the Executive’s employment
with the Company is or was a customer or client of the Company or any of its affiliates (or any
predecessor of either). Notwithstanding the above, nothing shall prevent the Executive from
soliciting loans, investment capital, or the provision of management services from third parties
engaged in the Business if the activities of the Executive facilitated thereby do not otherwise
adversely interfere with the operations of the Business.

               (dd) All memoranda, notes, lists, records, property and any other tangible product and
documents (and all copies thereof) made, produced or compiled by the Executive or made available to
the Executive during the Term concerning the Business of the Company and its affiliates shall be
the Company’s property and shall be delivered to the Company at any time on request.
Notwithstanding the above, the Executive’s contacts and

8

 

contact data base shall not be the Company’s property. Notwithstanding the above, software,
methods and material developed by the Executive prior to the Term of the Agreement shall not be the
Company’s property.

               6.3 [This provision intentionally left blank.]

               6.4 Rights and Remedies upon Breach. The Executive acknowledges and agrees that any
breach by him of any of the provisions of Sections 6.1 or 6.2 (the “Restrictive Covenants”)
would result in irreparable injury and damage for which money damages would not provide an adequate
remedy. Therefore, if the Executive breaches, or threatens to commit a breach of, any of the
Restrictive Covenants, the Company and its affiliates shall have the right and remedy to have the
Restrictive Covenants specifically enforced (without posting bond and without the need to prove
damages) by any court having equity jurisdiction, including, without limitation, the right to an
entry against the Executive of restraining orders and injunctions (preliminary, mandatory,
temporary and permanent) against violations, threatened or actual, and whether or not then
continuing, of such covenants. This right and remedy shall be in addition to, and not in lieu of,
any other rights and remedies available to the Company and its affiliates under law or in equity
(including, without limitation, the recovery of damages). The existence of any claim or cause of
action by the Executive, whether predicated on this Agreement or otherwise, shall not constitute a
defense to the enforcement of the Restrictive Covenants. The Company has the right to cease making
the payments provided as part of the Severance Package in the event of a material breach of any of
the Restrictive Covenants that, if capable of cure and not willful, is not cured within thirty (30)
days after receipt of notice thereof from the Company.

          7. Other Provisions.

               7.1 Severability. The Executive acknowledges and agrees that the Executive has had an
opportunity to seek advice of counsel in connection with this Agreement and that the Restrictive
Covenants are reasonable in geographical and temporal scope and in all other respects. If it is
determined that any of the provisions of this Agreement, including, without limitation, any of the
Restrictive Covenants, or any part thereof, is invalid or unenforceable, the remainder of the
provisions of this Agreement shall not thereby be affected and shall be given full affect, without
regard to the invalid portions.

               7.2 Duration and Scope of Covenants. If any court or other decision maker of
competent jurisdiction determines that any of the Executive’s covenants contained in this
Agreement, including, without limitation, any of the Restrictive Covenants, or any part thereof,
are unenforceable because of the duration or geographical scope of such provision, then, after such
determination has become final and unappealable, the duration or scope of such provision, as the
case may be, shall be reduced so that such provision becomes enforceable and, in its reduced form,
such provision shall then be enforceable and shall be enforced.

               7.3 Enforceability of Restrictive Covenants; Jurisdictions. The Company and the
Executive intend to and hereby consent to jurisdiction to enforce the Restrictive Covenants upon
the courts of any jurisdiction within the geographical scope of the Restrictive Covenants. If the
courts of any one or more of such jurisdictions hold the Restrictive Covenants wholly unenforceable
by reason of breadth of scope or otherwise it is the intention of the Company and the Executive
that such determination not bar or in any way affect the Company’s right, or the right of any of
its affiliates, to the relief provided above in the courts of any other jurisdiction within the
geographical scope of such Restrictive Covenants, as to breaches of such Restrictive Covenants in
such other respective jurisdictions, such Restrictive Covenants as they relate to each
jurisdiction’s being, for this purpose, severable, diverse and independent covenants, subject,
where appropriate, to the doctrine of res judicata.

               7.4 Arbitration. Except with respect to any claims or disputes arising from or
relating to the Restrictive Covenants or arising after a Change in Control, any disputes arising
under or in connection with this Agreement shall be resolved by binding arbitration, to be held in
Orlando, Florida (or within 10 miles of the initial principal office location in the Washington,
D.C. metro area, if the Company has relocated its principal offices) in accordance with the
Commercial Arbitration Rules, as amended from time to time, of the American Arbitration Association
(the “AAA”). The Company and the Executive will each select an arbitrator, and a third
arbitrator will be selected jointly by the arbitrators selected by the Company and the Executive
within 15 days after demand for arbitration is made by a Party. If the arbitrators selected by the
Company and the Executive are unable to agree on a third arbitrator within that period, then either
the Company or the Executive may request that the AAA select the

9

 

third arbitrator. The arbitrators will possess substantive legal experience in the principle
issues in dispute and will be independent of the Company and the Executive. To the extent permitted
by applicable law and not prohibited by the Company’s certificate of incorporation and bylaws, the
Company will pay all expenses (including the reasonable expenses of the Executive, including his
reasonable legal fees, if the Executive is the prevailing party in such arbitration) incurred in
connection with arbitration and the fees and expenses of the arbitrators and will advance such
expenses from time to time as required. Except as may otherwise be agreed in writing by the parties
or as ordered by the arbitrators upon substantial justification shown, the hearing for the dispute
will be held within 60 days of submission of the dispute to arbitration. The arbitrators will
render their final award within 30 days following conclusion of the hearing and any required
post-hearing briefing or other proceedings ordered by the arbitrators. The arbitrators will state
the factual and legal basis for the award. The decision of the arbitrators will be final and
binding and not subject to judicial review and final judgment may be entered upon such an award in
any court of competent jurisdiction, but entry of such judgment will not be required to make such
award effective.

               7.5 Attorneys’ Fees. If litigation after a Change in Control shall be brought to
enforce or interpret any provision contained herein, the Company, to the extent permitted by
applicable law and not prohibited by the Company’s certificate of incorporation and bylaws, shall
indemnify the Executive for the Executive’s reasonable attorneys’ fees and disbursements incurred
in such litigation if the Executive is the prevailing party in such litigation.

               7.6 Notices. Any notice, consent or other communication required or permitted
hereunder shall be in writing and shall be delivered personally, telegraphed, telexed, sent by
facsimile transmission or sent by certified, registered or express mail, postage prepaid. Any such
notice, consent or other communication shall be deemed given when so delivered personally,
delivered by overnight courier, telexed or sent by facsimile transmission or, if mailed, five days
after the date of deposit in the United States mails as follows:

	 	(a)	 	If to the Company, to:
	 
	 	 	 	Legacy Healthcare Properties Trust Inc.

189 South Orange Avenue, South Tower, Orlando, Florida 32801

Attention: Chief Executive Officer

Facsimile: (407) 404-6499
	 
	 	 	 	with a copy in either case to:
	 
	 	 	 	Hunton & Williams LLP

Riverfront Plaza, East Tower, 951 East Byrd Street, Richmond,

Virginia 23219

Attention: Daniel M. LeBey, Esq.

Facsimile: (804) 788-8218
	 
	 	(b)	 	If to the Executive, to:
	 
	 	 	 	John Krueger

c/o Legacy Healthcare Properties Trust Inc.

189 South Orange Avenue, South Tower, Orlando, Florida 32801

Facsimile: (407) 404-6499
	 
	 	 	 	with a copy in either case to:
	 
	 	 	 	Akerman Senterfitt

420 S. Orange Avenue, #1200, Orlando, Florida 32801

Attention: Beppy Landrum Owen, Esq.

Facsimile: (407) 254-3773

Any such person may by notice given in accordance with this Section to the other parties hereto
designate another address or person for receipt by such person of notices hereunder.

10

 

               7.7 Entire Agreement. This Agreement contains the entire agreement between the
parties with respect to the subject matter hereof and supersedes all prior agreements, written or
oral, with the Company or its subsidiaries (or any predecessor of either).

               7.8 Waivers and Amendments. This Agreement may be amended, superseded, canceled,
renewed or extended, and the terms hereof may be waived, only by a written instrument signed by the
parties or, in the case of a waiver, by the party waiving compliance. No delay on the part of any
party in exercising any right, power or privilege hereunder shall operate as a waiver thereof, nor
shall any waiver on the part of any party of any such right, power or privilege nor any single or
partial exercise of any such right, power or privilege, preclude any other or further exercise
thereof or the exercise of any other such right, power or privilege.

               7.9 GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED EXCLUSIVELY IN
ACCORDANCE WITH THE LAWS OF THE STATE OF FLORIDA WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW.
Subject to the parties’ obligations under Section 7.4, the Executive and the Company each hereby
expressly consents to the exclusive venue and jurisdiction of the state and federal courts located
in Orlando, Florida, for any lawsuit arising from or relating to this Agreement.

               7.10 Assignment. This Agreement shall be binding upon and inure to the benefit of the
executors, administrators, heirs, successors and assigns of the parties; provided, however, that
except as herein expressly provided, this Agreement shall not be assignable either by the Company
(except to an affiliate of the Company, in which event the Company shall remain liable if the
affiliate fails to meet any of the Company’s obligations hereunder, including without limitation to
provide the employment opportunities offered hereby and to make payments or provide benefits or
otherwise) or by the Executive. In the event that the Executive consents to the assignment of this
Agreement to a successor in interest of the Company upon a Change in Control, such consent shall
not be deemed to waive or diminish the Executive’s rights under Section 3.8.

               7.11 Withholding. The Company shall be entitled to withhold from any payments or
deemed payments any amount of withholding required by law. In the event that the Company determines
that any federal, state, local or foreign tax or withholding payment is required relating to the
vesting in or delivery of any Equity Compensation, the Company shall have the right to require such
payments from the Executive or withhold such amounts from other payments due to the Executive from
the Company or any affiliate, or to withhold such Equity Compensation that would otherwise have
been issued to the Executive. The Executive shall have the right to elect, in his discretion, the
manner in which such payments shall be made or withheld. No other taxes, fees, impositions, duties
or other charges or offsets of any kind shall be deducted or withheld from amounts payable
hereunder, unless otherwise required by law.

               7.12 No Duty to Mitigate. The Executive shall not be required to mitigate damages or
the amount of any payment provided for under this Agreement by seeking other employment or
otherwise, nor will any payments hereunder be subject to offset in the event the Executive does
mitigate.

               7.13 Binding Effect. This Agreement shall be binding upon and inure to the benefit of
the parties and their respective successors, permitted assigns, heirs, executors and legal
representatives.

               7.14 Counterparts. This Agreement may be executed by the parties hereto in separate
counterparts, each of which when so executed and delivered shall be an original but all such
counterparts together shall constitute one and the same instrument. Each counterpart may consist of
two copies hereof each signed by one of the parties hereto.

               7.15 Survival. The rights and obligations of the parties under this Agreement, which
by their nature would continue beyond the termination or expiration of this Agreement, shall
survive the termination or expiration of this Agreement. The Company’s obligations hereunder shall
not be terminated by reason of any liquidation, dissolution, bankruptcy, cessation of business, or
similar event relating to the Company. This Agreement shall not be terminated by any merger or
consolidation or other reorganization of the Company. In the event any such merger, consolidation
or reorganization shall be accomplished by transfer of stock or by transfer of assets or otherwise,
the provisions of this Agreement shall be binding upon and inure to the benefit of the surviving or
resulting corporation or person.

11

 

               7.16 Existing Agreements. Executive represents to the Company that the Executive is
not subject or a party to any employment or consulting agreement, non-competition covenant or other
agreement, covenant or understanding which might prohibit the Executive from executing this
Agreement or limit the Executive’s ability to fulfill the Executive’s responsibilities hereunder.

               7.17 Headings. The headings in this Agreement are for reference only and shall not
affect the interpretation of this Agreement.

               7.18 Parachute Provisions. If any amount payable to or other benefit receivable by the
Executive pursuant to this Agreement is deemed to constitute a Parachute Payment (as defined
below), alone or when added to any other amount payable or paid to or other benefit receivable or
received by the Executive which is deemed to constitute a Parachute Payment (whether or not under
an existing plan, arrangement or other agreement), and would result in the imposition on the
Executive of an excise tax under Section 4999 of the Tax Code, then, in addition to any other
benefits to which the Executive is entitled under this Agreement, the Executive shall be paid by
the Company an amount in cash equal to the sum of the excise taxes payable by the Executive by
reason of receiving Parachute Payments plus the amount necessary to put the Executive in the same
after-tax position (taking into account any and all applicable federal, state and local excise,
income or other taxes at the highest applicable rates on such Parachute Payments and on any
payments under this Section 7.18) as if no excise taxes had been imposed with respect to Parachute
Payments. The amount of any payment under this Section 7.18 shall be computed by a certified public
accounting firm mutually and reasonably acceptable to the Executive and the Company, the
computation expenses of which shall be paid by the Company. “Parachute Payment” shall mean
any payment deemed to constitute a “parachute payment” as defined in Section 280G of the Tax Code.

               7.19 Effective Date. The Effective Date shall be closing date of the Initial Offering.

               7.20 Indemnification; Directors and Officer’s Insurance. The Executive shall be
entitled to indemnification in all instances in which the Executive is acting within the scope of
his authority to the fullest extent permitted by applicable law and not prohibited by the Company’s
certificate of incorporation and bylaws, from and against any damages or liabilities, including
reasonable attorney’s fees; provided, however, that the Executive shall not be entitled to
indemnification for damages or liabilities which result from or arise out of the Executive’s
willful misconduct or gross negligence. During the Term, the Company will maintain directors’ and
officers’ liability insurance in a coverage amount of not less than Two Million and No/00 Dollars
($2,000,000).

               7.21 409A. This Agreement and the amounts payable and other benefits hereunder are
intended to comply with, or otherwise be exempt from, Section 409A of the Tax Code. This Agreement
shall be administered, interpreted and construed in a manner consistent with Section 409A. If any
provision of this Agreement is found not to comply with, or otherwise not to be exempt from, the
provisions of Section 409A, it shall be modified and given effect, in the sole discretion of the
Board or Compensation Committee thereof and without requiring the Executive’s consent, in such
manner as the Board or Compensation Committee determines to be necessary or appropriate to comply
with, or to effectuate an exemption from, Section 409A. Each payment under this Agreement shall be
treated as a separate identified payment for purposes of Section 409A. The preceding provisions
shall not be construed as a guarantee by the Company of any particular tax effect to the Executive
of the payments and other benefits under this Agreement.

With respect to any reimbursement of expenses of, or any provision of in-kind benefits to, the
Executive, as specified under this Agreement, such reimbursement of expenses or provision of
in-kind benefits shall be subject to the following conditions: (a) the expenses eligible for
reimbursement or the amount of in-kind benefits provided in one taxable year shall not affect the
expenses eligible for reimbursement or the amount of in-kind benefits provided in any other taxable
year, except for any medical reimbursement arrangement providing for the reimbursement of expenses
referred to in Section 105(b) of the Tax Code; (b) the reimbursement of an eligible expense shall
be made no later than the end of the year after the year in which such expense was incurred; and
(c) the right to reimbursement or in-kind benefits shall not be subject to liquidation or exchange
for another benefit.

If a payment obligation under this Agreement arises on account of the Executive’s “separation from
service” (as defined under Treasury Regulation Section 1.409A-1(h)) while the Executive is a
“specified employee” (as defined under Section 409A of the Tax Code and determined in good faith by
the Compensation Committee), any payment

12

 

of “deferred compensation” (as defined under Treasury Regulation Section 1.409A-1(b)(1), after
giving effect to the exemptions in Treasury Regulation Sections 1.409A-1(b)(3) through (b)(12))
that is scheduled to be paid within six months after such separation from service shall accrue
without interest and shall be paid on the first day of the seventh month beginning after the date
of the Executive’s separation from service or, if earlier, within 15 days after the appointment of
the personal representative or executor of the Executive’s estate following his death.

[Signature page follows.]

13

 

          IN WITNESS WHEREOF, the parties hereto have signed their names to this Employment Agreement as
of the day and year set forth below.

	 	 	 	 	 
	 	COMPANY:

LEGACY HEALTHCARE PROPERTIES

TRUST INC., a Maryland corporation:

 	 
	Date:                                         , 2010 	By:  	 	 
	 	 	Name:  	Thomas J. Hutchison III 	 
	 	 	Title:  	Chief Executive Officer 	 
	 
	 	EXECUTIVE:

 	 
	Date:                                         , 2010 	By:  	 	 
	 	 	Name:  	John Krueger 	 
	 	 	 	 
	 

14

 

ATTACHMENT “A”

to

LEGACY HEALTHCARE PROPERTIES TRUST INC.

EMPLOYMENT AGREEMENT

of

JOHN KRUEGER

          1. Annual Cash Bonus Compensation. Executive shall be eligible to participate in the
Bonus Plan during the term of this Agreement. Executive’s bonus will be subject to Executive’s
achievement of performance criteria established annually by the Compensation Committee:

               1.1 For Threshold level, Executive shall receive 50% of his Annual Salary as bonus
compensation;

               1.2 For Target level, Executive shall receive 75% of his Annual Salary as bonus compensation;
and

               1.3 For Maximum level, Executive shall receive 100% of his Annual Salary as bonus
compensation.

For purpose of the Annual Bonus, Annual Salary means the Annual Salary paid to the Executive during
the calendar or portion of the calendar year covered by the bonus. Any bonus compensation in
excess of 100% of Executive’s Annual Salary may be paid, in whole or in part, at the option of the
Executive, in shares of the Company’s common stock. Executive’s performance criteria shall be
established annually by the Compensation Committee. For each fiscal year, Executive’s bonus, if
any, will be paid to Executive in a lump sum on or before seventy five (75) days after the end of
such fiscal year.

          2. Equity Bonus Compensation.

               2.1 Equity Compensation. As additional incentive compensation to the Executive,
subject to the 2010 Equity Incentive Plan and the terms set forth herein, Equity Compensation shall
be awarded to the Executive as follows:

                    (a) IPO Stock Award. Pursuant to the 2010 Equity Incentive Plan, a Stock Award (as
defined therein) of the Company’s common stock (the “IPO Stock Award”) shall be granted
to the Executive on the Effective Date, and the same shall be fully vested upon grant. The
number of shares of common stock granted to the Executive in the IPO Stock Award shall be
calculated as the product of X and Y, where X is 1.6% of the sum of (i) the total number of shares issued by the Company in the Initial Offering (the “IPO Shares”), and (ii) all shares issued in connection with the Company’s private placement of additional shares of common
stock to the Company’s officers concurrently with the Initial Offering (the “Private
Placement Shares” and, together with the IPO Shares, the “Total Offering”), rounded
to the nearest 1,000, and where Y is (the following percentage): 7%. In addition, in the event
any shares of common stock are issued as a result of any exercise by the Initial Offering
underwriters of their over-allotment option (the “Underwriters’ Over-allotment Shares”),
the number of shares granted to the Executive in the IPO Stock Award will be adjusted, as of the
Effective Date, to include additional shares in an amount equal to the product of (i) 1.6% of
the Underwriters’ Over-allotment Shares issued and (ii) 7%. By way of example, if the Total
Offering is 13,900,000 shares (including 13,750,000 IPO Shares, 150,000 Private Placement Shares
and no Underwriters’ Over-allotment Shares), then the IPO Award shall be 15,568 shares of the
Company’s common stock.

                    (b) Restricted Stock Award. Pursuant to the 2010 Equity Incentive Plan and subject
to the terms of this Agreement, a Stock Award (as defined in the 2010 Equity Incentive Plan) of
the Company’s common stock (the “Restricted Stock Award”) shall be awarded to the
Executive as of the Effective Date. The number of shares of common stock granted to the
Executive in the Restricted Stock Award shall be calculated as the product of X and Y, where X
is 1.8% of the total number of shares issued by the Company in the Total Offering, rounded to
the nearest 1,000, and where Y is (the following percentage): 7.5%. In addition,

15

 

in the event any Underwriters’ Over-allotment Shares are issued, the number of shares
granted to the Executive in the Restricted Stock Award will be adjusted, as of the Effective
Date, to include additional shares in an amount equal to the product of (i) 1.8% of the
Underwriters’ Over-allotment Shares issued, and (ii) 7.5%. By way of example, if the Total
Offering is 13,900,000 shares (including 13,750,000 IPO Shares, 150,000 Private Placement Shares
and no Underwriters’ Over-allotment Shares), then the Restricted Stock Award shall be 18,765
shares of the Company’s common stock. The shares granted in the Restricted Stock Award shall
be, subject to the terms of this Agreement, subject to forfeiture restrictions that will lapse
commencing on the first anniversary of the Effective Date and on each of the next four
anniversaries of the Effective Date thereafter, as to 20% of the shares of common stock covered
by the Restricted Stock Award on each such anniversary, at which time such shares shall become
vested and nonforfeitable so long as the Executive is employed by the Company on the applicable
anniversary date. Except as provided otherwise in this Agreement, any shares of common stock
covered by the Restricted Stock Award that are subject to forfeiture restrictions on or before
the date that the Executive’s service as an employee of the Company terminates shall be
forfeited on the date that such service terminates. Shares of common stock covered by the
Restricted Stock Award that have not become vested and nonforfeitable as provided in this
Agreement cannot be transferred. Shares of common stock covered by the Restricted Stock Award
may be transferred, subject to the requirements of applicable securities laws, after such shares
have become vested and nonforfeitable as provided in this Agreement.

               2.2 Stockholder Rights. On and after the Effective Date hereof and prior to
forfeiture of the shares of common stock covered by the Restricted Stock Award, the Executive shall
have all of the rights of a stockholder of the Company with respect to the shares of common stock
covered by the Restricted Stock Award, including the right to vote the shares and to receive, free
of all restrictions, all dividends declared and paid on the shares. Notwithstanding the preceding
sentence, the Company shall retain custody of the certificates representing the shares of common
stock covered by the Stock Award until the date that the shares become vested and nonforfeitable
and the Executive hereby appoints the Company’s Chief Executive Officer and the Company’s Secretary
as the Executive’s attorneys in fact, with full power of substitution, with the power to transfer
to the Company and cancel any shares of common stock covered by the Restricted Stock Award that are
forfeited.

               2.3 Restricted Stock Award Subject to Plan. The Restricted Stock Award shall be
governed by the terms of 2010 Equity Incentive Plan. In the event of any conflict between the
provisions of the 2010 Equity Incentive Plan in effect on the Effective Date and the provisions of
this Attachment “A”, the provisions of the 2010 Equity Incentive Plan shall govern. All
references to the 2010 Equity Incentive Plan in this Attachment “A” shall mean the 2010
Equity Incentive Plan as in effect on the Effective Date. The Executive hereby acknowledges that a
copy of the 2010 Equity Incentive Plan has been made available to the Executive and the Executive
agrees to be bound by all of the terms of the 2010 Equity Incentive Plan.

               2.4 Rights upon Vesting. Prior to vesting, Equity Compensation awarded to the
Executive under this Attachment “A” shall be subject to forfeiture or acceleration pursuant
to the terms of this Agreement and the 2010 Equity Incentive Plan. Upon the vesting of any Equity
Compensation awarded to the Executive under this Attachment “A”, as of the date of such
vesting and subject to the terms of any applicable Company Incentive Plan, the Company shall
deliver such Equity Compensation to the Executive, and the same shall be freely transferable and
non-forfeitable, and the Executive shall be entitled to all rights, preferences and dividends as
may be appurtenant to or otherwise payable by the Company thereon.

               2.5 409A. In the event delivery of any Equity Compensation is delayed pursuant to
Section 7.21 of this Agreement, at the same time the Equity Compensation is delivered, the
Executive shall receive an amount equal to the dividend(s) that would be payable on such Equity
Compensation subject to the delayed delivery if the record date of such dividend(s) is after the
date of the Executive’s “separation from service” (as defined under Treasury Regulation Section
1.409A-1(h)) and prior to the delivery of the Equity Compensation to the Executive.

16

 

ATTACHMENT “B”

to

LEGACY HEALTHCARE PROPERTIES TRUST INC.

EMPLOYMENT AGREEMENT

of

JOHN KRUEGER

General Release of Claims

          Consistent with Section 5 of the Employment Agreement dated                          , 2010, between Legacy
Healthcare Properties Trust, Inc. ( the “Company”) and me (the “Employment
Agreement”) and in consideration for and contingent upon my receipt of the Severance Package
set forth in Sections 5(b) of the Employment Agreement, I, for myself, my attorneys, heirs,
executors, administrators, successors, and assigns, do hereby fully and forever release and
discharge the Company and its affiliated entities (as defined in the Employment Agreement), as well
as their predecessors, successors, assigns, and their current or former directors, officers,
partners, agents, employees, attorneys, and administrators from all suits, causes of action, and/or
claims, demands or entitlements of any nature whatsoever, whether known, unknown, or unforeseen,
which I have or may have against any of them arising out of or in connection with my employment by
the Company, the Employment Agreement, the termination of my employment with the Company, or any
event, transaction, or matter occurring or existing on or before the date of my signing of this
General Release, except that I am not releasing any (a) right to indemnification that I may
otherwise have, (b) right to Annual Salary and benefits under applicable benefit plans that are
earned and accrued but unpaid as of the date of my signing this General Release, (c) right to
reimbursement for business expenses incurred and not reimbursed as of the date of my signing this
General Release, (d) right to any bonus payment(s) or other compensation due under the Employment
Agreement, the Bonus Plan, any Company Incentive Plan that is earned and accrued for the most
recent completed calendar year for which a bonus payment has not then been paid as of the date of
my signing this General Release, or (e) claims arising after the date of my signing this General
Release. I agree not to file or otherwise institute any claim, demand or lawsuit seeking damages or
other relief and not to otherwise assert any claims, demands or entitlements that are lawfully
released herein. I further hereby irrevocably and unconditionally waive any and all rights to
recover any relief or damages concerning the claims, demands or entitlements that are lawfully
released herein. I represent and warrant that I have not previously filed or joined in any such
claims, demands or entitlements against the Company or the other persons released herein and that I
will indemnify and hold them harmless from all liabilities, claims, demands, costs, expenses and/or
attorneys’ fees incurred as a result of any such claims, demands or lawsuits.

          Except as otherwise expressly provided above, this General Release specifically includes, but
is not limited to, all claims of breach of contract, employment discrimination (including any
claims coming within the scope of Title VII of the Civil Rights Act, the Age Discrimination in
Employment Act, the Older Workers Benefit Protection Act, the Equal Pay Act, the Americans with
Disabilities Act, the Family and Medical Leave Act, and any comparable Florida law, all as amended,
or any other applicable federal, state, or local law), claims under the Employee Retirement Income
Security Act, as amended, claims under the Fair Labor Standards Act, as amended (or any other
applicable federal, state or local statute relating to payment of wages), claims concerning
recruitment, hiring, termination, salary rate, severance pay, stock options, wages or benefits due,
sick leave, holiday pay, vacation pay, life insurance, group medical insurance, any other fringe
benefits, worker’s compensation, termination, employment status, libel, slander, defamation,
intentional or negligent misrepresentation and/or infliction of emotional distress, together with
any and all tort, contract, or other claims which might have been asserted by me or on my behalf in
any suit, charge of discrimination, or claim against the Company or the persons released herein.

          I acknowledge that I have been given an opportunity of twenty-one (21) days to consider this
General Release and that I have been encouraged by the Company to discuss fully the terms of this
General Release with legal counsel of my own choosing. Moreover, for a period of seven (7) days
following my execution of this General Release, I shall have the right to revoke the waiver of
claims arising under the Age Discrimination in Employment Act, a federal statute that prohibits
employers from discriminating against employees who are age 40 or over. If I elect to revoke this
General Release within this seven-day period, I must inform the Company by delivering a

17

 

written notice of revocation to the Company’s Director of Human Resources,
                                        , no later than 11:59 p.m. on the seventh calendar day after I sign this
General Release. I understand that, if I elect to exercise this revocation right, this General
Release shall be voided in its entirety and the Company shall be relieved of all obligations to
make the portion of the Severance Package described in Section 5(b) of the Employment Agreement. I
may, if I wish, elect to sign this General Release prior to the expiration of the 21-day
consideration period, and I agree that if I elect to do so, my election is made freely and
voluntarily and after having an opportunity to consult counsel.

AGREED:

	 	 	 

	[Form of Agreement Only — Do No Execute]
	 	 
	                                                            

	 	                                                            
	                                                            

	 	Date

18exv4w2

Exhibit 4.2

ING [U.S.] FINANCIAL HOLDINGS CORPORATION

401(k) SAVINGS PLAN

 

2001 Restatement

 

     ING [U.S.] Financial Services Corporation, ING [U.S.] Securities, Futures & Options
Incorporated, ING Real Estate Investors, Inc., ING Bank, N.V., ING Furman Selz LLC, Aeltus
Investment Management, Inc., BBL (USA) Holdings, Inc., and Pomona Capital Management LLC (each the
“Company”), hereby amends and restates the ING [U.S.] Financial Holdings Corporation 401(k) Savings
Plan (the “Plan”) upon the terms and conditions set forth below.

 W I T  N  E  S  S  E  T  H:

     WHEREAS, the Company desires to amend the Plan as necessary to comply in all respects with
legislative and regulatory requirements imposed subsequent to the Plan’s restatement in 1997, and
to reflect the merger of the Profit-Sharing Plan of Furman Selz, LLC into this Plan; and

     WHEREAS, the Company desires to amend the Plan to include amendments adopted to reflect
certain provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001 (“EGTRRA”),
which amendments are intended as good faith compliance with EGTRRA and are to be construed in
accordance with EGTRRA and guidance issued thereunder;

     NOW, THEREFORE, the Company, acting pursuant to Section 13.1 of the Plan as in effect
immediately before the adoption of this instrument, hereby amends and restates the Plan, as
hereinafter set forth, effective generally as of January 1, 1997.

 

 

ARTICLE 1

TITLE AND PURPOSE

     1.1 Title. The Plan shall be known as the ING [U.S.] Financial Holdings Corporation
401(k) Savings Plan.

     1.2 Purpose; Exclusive Benefit. The Plan is maintained for the purpose of enabling
Employees of a Company who qualify as Participants to share in the profits of the Company and to
save and invest in accordance with the terms of the Plan. The Plan is intended to qualify as a
profit sharing plan under Section 401(a) of the Code and to constitute a qualified cash or
deferred arrangement under Section 401(k) of the Code. The principal and income of the Plan shall
never be paid or revert to the Company, or be used for any purpose whatsoever other than the
exclusive purpose of providing benefits to the Participants or their Beneficiaries and defraying
the reasonable expenses of administering the Plan, except that (a) amounts described in Section
6.4(i) may be returned to the Company upon termination of the Plan; (b) contributions made by
mistake of fact may, if the Company so elects, be returned to the Company within one (1) year of
the date of payment; and (c) contributions of the Company, all of which are hereby conditioned on
their deductibility under the Code, may, if and to the extent that a deduction therefor is
disallowed, and if the Company so elects, be returned to the Company within one year of the
disallowance of the deduction. Earnings attributable to contributions returnable to the Company
under the foregoing sentence shall not be returned to the Company, but any losses attributable to
those contributions shall reduce the amount returned to the Company.

- 2 -

 

ARTICLE 2

DEFINITIONS

     2.1 “Account” means any or all of the accounts maintained on the books of the Plan
for a Participant’s benefit pursuant to any provision of the Plan.

     2.2 “Administrator” has the meaning set forth in Section 11.1.

     2.3 “Affiliated Companies” means each Company and all corporations, partnerships,
trades or businesses (whether or not incorporated) described in and subject to the terms of
Section 15.1. “Affiliated Company” means each Company and each Affiliated Company.

     2.4 “Annual Addition” means the sum of the contributions of the Company (including
Deferral Contributions) allocated to a Participant’s Account for the Plan Year.

     2.5 “Application” has the meaning set forth in Section 4.2.

     2.6 “Average Contribution Percentage” has the meaning set forth in Section 6.3.

     2.7 “Average Deferral Percentage” has the meaning set forth in Section 4.3.

     2.8 “BBL Plan” means the Deferred Salary Profit Sharing Thrift Plan for Employees of
Bank Brussels Lambert, New York Branch.

     2.9 “Beneficiary” means the person, persons or entity designated by a Participant
pursuant to Section 8.2 (or if no such person or entity is designated or survives, the person or
persons specified in Section 8.3) to receive the benefits distributable under the Plan on account
of his death.

     2.10 “Claimant” has the meaning set forth in Section 11.9.

     2.11 “Code” means the Internal Revenue Code of 1986, as amended from time to time, or
other statute of similar import.

     2.12 “Company” means each of ING [U.S.] Financial Services Corporation, ING [U.S.]
Securities, Futures & Options Incorporated, ING Real Estate Investors, Inc., ING Bank, N.V., ING
Furman Selz LLC, Aeltus Investment Management, Inc., BBL (USA) Holdings, Inc., and Pomona Capital
Management LLC, and any successor to substantially all of the business thereof. “Company,” when
used throughout the Plan shall refer to the appropriate participating employer; provided, however,
that for purposes of Articles 11 and 12 and Section 13.1, “Company” shall refer only to ING
[U.S.] Financial Services Corporation.

     2.13 “Company Contributions Account” means an account maintained on the books of the
Plan for the purpose of recording allocations to a Participant of contributions by the Company
pursuant to Section 5.1, and any income, expenses, gains and losses attributable thereto and any
withdrawals or distributions therefrom.

- 3 -

 

     2.14 “Compensation” means amounts paid within a Plan year to a Participant for
services rendered to the Company consisting of his basic salary, wages, overtime, cash bonuses,
pre-tax deferrals, commissions, and other cash compensation, but excluding all other types of
compensation such as, without limitation, severance pay and any other irregular payments or fringe
benefits; provided, however, that for all purposes and provisions of the Plan other than Section
6.4, the Deferral Contributions made on behalf of a Participant pursuant to Article 4, any pre-tax
contributions made by an Employee pursuant to a program described in Section 132(f) of the Code,
and any pre-tax contributions made by an Employee pursuant to a plan described in Section 125 of
the Code, shall be considered part of his Compensation. Notwithstanding the preceding sentence,
for purposes of Sections 2.28, 4.3 and 6.3 of the Plan, “Compensation” means total compensation
paid within a Plan Year to a Participant, as defined in Section 415(c)(3) of the Code, and, for
Plan Years beginning after December 31, 1997, with the inclusion of amounts not includible in
income under Sections 125 or 402(e)(3) of the Code. The Compensation of each Employee taken into
account under the Plan for any Plan Year shall not exceed $160,000, or such other amount as may
apply under Section 401(a)(17) of the Code, in each case as adjusted by the Secretary of the
Treasury pursuant to Section 415(d) of the Code. Effective January 1, 2002, “$200,000” shall be
substituted for “$160,000” in the preceding sentence.

     2.15 “Deferral Contribution” means an amount contributed to the Plan pursuant to
Article 4.

     2.16 “Deferral Contributions Account” means an account maintained on the books of the
Plan for the purpose of recording contributions made to the Plan by the Company pursuant to a
Participant’s election in accordance with Article 4, and any income, expenses, gains or losses
attributable thereto and any withdrawals or distributions therefrom.

     2.17 “Eligible Distribution” has the meaning set forth in Section 10.6.

     2.18 “Eligible Plan” has the meaning set forth in Section 10.6.

     2.19 “Eligible Recipient” has the meaning set forth in Section 10.6.

     2.20 “Employee” means each individual who is a common law employee of an Affiliated
Company. “Part-Time Employee” shall mean an Employee who is employed on the basis that he or she
will regularly work not more than twenty-one (21) hours per week. “Full-Time Employee” shall mean
an Employee who is employed on the basis that he or she will regularly work more than twenty-one
(21) hours per week. An individual initially hired as a Full-Time Employee shall not thereafter
be treated as a Part-Time Employee, unless he or she shall be rehired as a Part-Time Employee
following a termination of employment or a Leave of Absence.

     2.21 “Employment Commencement Date” means the date on which an Employee or a Leased
Employee first renders an Hour of Service to an Affiliated Company. In the case of an Employee
who returns to employment with the Affiliated Companies after a One-Year Break in Service,
Employment Commencement Date shall mean the date on which the Employee renders an Hour of Service
after such One-Year Break in Service. In the case of an Employee

- 4 -

 

of any corporation, partnership, trade or business that becomes an Affiliated Company (or is
merged into or otherwise becomes part of an Affiliated Company) in accordance with Section 15.1,
such Employee’s Employment Commencement Date for purposes of the Plan shall be established by the
Company, but in the absence of any affirmative action to establish an earlier date, the Employment
Commencement Date of each such Employee shall be the date his or her employer became an Affiliated
Company.

     2.22 “Entry Date” means the first day of each month.

     2.23 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended
from time to time, or other statute of similar import.

     2.24 “Excess Aggregate Contributions” has the meaning set forth in Section 10.12.

     2.25 “Excess Contributions” has the meaning set forth in Section 10.11.

     2.26 “Excess Deferral Amount” has the meaning set forth in Section 10.10.

     2.27 “Fiscal Year” means the regular annual accounting period of the Company for
federal income tax purposes, which at the time of the adoption of this restatement coincides with
the calendar year.

     2.28 “Highly Compensated Employee” means an employee of an Affiliated Company who:

     (a) Was at any time a 5-percent owner, within the meaning of Section 416(i)(1) of the
Code, of an Affiliated Company during the Plan Year in question or the immediately preceding
Plan Year; or

     (b) Had Compensation during the Plan Year immediately preceding the Plan Year in
question in excess of $80,000 (as adjusted pursuant to Section 414(q)(1) of the Code), and,
if an election as provided for in Section 414(q)(1)(B)(ii) of the Code is in effect, was a
member of the top-paid group of employees, within the meaning of Section 414(q)(3) of the
Code, determined by excluding the following Employees for such year:

     (i) Employees who have not completed six months of service;

     (ii) Employees who normally work less than seventeen and one-half hours per
week;

     (iii) Employees who normally work during not more than six months during any
year;

     (iv) Employees who have not attained age 21; and

     (v) Employees who are included in a unit of employees covered by a collective
bargaining agreement.

- 5 -

 

     2.29 “Hour of Service” means the following:

     (a) Each hour for which an Employee is paid, or entitled to payment, for the
performance of duties for an Affiliated Company. These hours shall be credited to the
Employee for the computation period or periods in which the duties were performed; provided,
however, that in the event a single payroll period covers more than one computation period,
hours shall be credited to the Employee for the computation period in which the payroll
period ends.

     (b) Each hour for which an Employee is paid, or entitled to payment, by an Affiliated
Company on account of a period of time during which no duties are performed (irrespective of
whether the employment relationship has terminated) due to vacation, holiday, illness,
incapacity (including disability), jury duty, military duty, severance (for purposes of
determining an Employee’s Years of Service only, and only to the extent provided pursuant to
a written severance agreement) or leave of absence; provided, however, that:

     (i) no more than 501 Hours of Service shall be credited under this paragraph
(b) to an Employee on account of any single continuous period during which the
Employee performs no services (whether or not such period occurs in a single Plan
Year or other computation period);

     (ii) an hour for which an Employee is paid, or entitled to payment, by an
Affiliated Company on account of a period during which no duties are performed
shall not be credited to the Employee if such payment is made or due under a plan
maintained solely for the purpose of complying with applicable worker’s
compensation or unemployment compensation or disability insurance laws; and

     (iii) Hours of Service shall not be credited for a payment which solely
reimburses an Employee for medical or medically related expenses incurred by the
Employee.

     (c) Each hour for which back pay, irrespective of mitigation of damages, is either
awarded or agreed to by an Affiliated Company; provided, however, that the same Hours of
Service shall not be credited under both paragraph (a) above and this paragraph (c); and
provided, further, that no more than 501 Hours of Service shall be credited under this
paragraph (c) with respect to payments of back pay, to the extent that such back pay is
agreed to or awarded for a period of time described in paragraph (b) above, during which the
Employee did not or would not have performed any duties. These hours shall be credited to
the Employee for the computation period or periods to which the award or payment pertains,
rather than the computation period in which the award, agreement or payment is made.

     Hours of Service for nonperformance of duties shall be credited in accordance with Department
of Labor Regulations Section 2530.200b-2(b). Hours of Service shall be credited

- 6 -

 

to the applicable computation period in accordance with Department of Labor Regulations
Section 2530.200b-2(c).

     Solely for the purpose of determining whether an Employee has incurred a One-Year Break in
Service, an Employee who is absent from work on account of pregnancy or of the birth or adoption
of a child, or for purposes of caring for a newborn or newly adopted child, shall be credited
during such absence with the number of Hours of Service which would normally have been credited to
him but for such absence (or, if the number just described cannot be determined, with eight Hours
of Service per day of such absence); provided, however, that no more than 501 Hours of Service
shall be credited with respect to any such pregnancy, birth or adoption; and provided, further,
that the Employee must furnish such information as the Administrator shall reasonably require to
establish the reason for the absence and number of days for which it counted. Hours of Service
credited in accordance with the preceding sentence shall be credited for the computation period in
which the absence begins, if necessary to prevent a One-Year Break in Service in that period, or
if not, in the computation period next following that in which the absence begins.

     A Leased Employee shall be credited with Hours of Service in the same manner as an Employee,
treating payment or entitlement to payment on account of services performed for an Affiliated
Company as though the payment were made or to be made by the Affiliated Company.

     2.30 “Leased Employee” means any person, other than an Employee, who has performed
for an Affiliated Company (or for the recipient and related persons determined in accordance with
Section 414(n)(b) of the Code) on a substantially full-time basis for a period of at least one
year services under the primary direction or control of the Affiliated Company. A Leased Employee
shall not be eligible to participate in the Plan, but a Leased Employee who becomes an Employee
shall receive credit for purposes of Articles 3 and 9, respectively, for the Hours of Service and
for the Years of Service credited to him while he was a Leased Employee, and for the period of one
year immediately before he became a Leased Employee.

     2.31 “Leave of Absence” means any extended unpaid absence from employment which is
authorized in writing by an Affiliated Company on a uniform and nondiscriminatory basis. Leave of
Absence may be authorized for reasons of illness, injury, temporary reduction in work force,
training, education or other reasons in the discretion of an Affiliated Company. Leave of Absence
shall be authorized for any period of military service in the Armed Forces of the United States
during which the Employee’s re-employment rights are protected by law. If an Employee leaves
employment pursuant to a Leave of Absence and fails (for any reason other than his death or
Retirement) to return to employment with the Company at its expiration, he shall be deemed to have
quit as of the commencement of the Leave of Absence, unless he has again become an Employee by the
first anniversary of that date. A Full-Time Employee shall be considered to have continued
employment with the Affiliated Companies during a Leave of Absence. During a Leave of Absence a
Part-Time Employee shall, for purposes of this Plan, be credited with Hours of Service at the rate
of the number of hours per day that active Employees in his job classification were scheduled to
work during such Leave of Absence.

- 7 -

 

     For purposes of determining whether an Employee has incurred a One-Year Break in Service or
has earned a Year of Service for vesting purposes, an Employee on Leave of Absence shall be
credited during such absence with the number of Hours of Service that would normally have been
credited to him but for such absence (or, if the number just described cannot be determined, with
eight Hours of Service per day of such absence); provided, however, that no more than 501 Hours of
Service shall be credited with respect to any Leave of Absence. Hours of Service credited in
accordance with the preceding sentence shall first be credited for the Plan Year in which the
absence begins, as necessary, and any remaining Hours of Service shall be credited in the Plan
Year next following that in which the absence begins.

     2.32 “Non-Highly Compensated Employee” means an Employee who is not a Highly
Compensated Employee.

     2.33 “One-Year Break in Service” means a Plan Year during which an Employee is not
credited with more than 500 Hours of Service.

     2.34 “Participant” means an Employee who is either currently participating in the
Plan in accordance with Article 3, or who has an Account in the Trust Fund resulting from his past
participation in the Plan. “Former Participant” means a Participant whose service with the
Affiliated Companies has terminated for any reason and for whom there remains an amount in the
Trust Fund which is allocable to his Account.

     2.35 “Plan” means the ING [U.S.] Financial Holdings Corporation 401(k) Savings Plan
as set forth herein, with any and all supplements and amendments hereto which may be in effect.

     2.36 “Plan Year” means the calendar year.

     2.37 “Predecessor Plan” means each of the Capital Holdings Plan, the Securities Plan,
and the Barings Plan.

     2.38 “Qualified Domestic Relations Order” means a judgment, decree or order that (a)
relates to the provision of child support, alimony, or marital property rights to a spouse, former
spouse, child or other dependent of a Participant, (b) is made pursuant to the domestic relations
law (including community property law of any state), and (c) is determined by the Administrator to
constitute a “qualified domestic relations order” within the meaning of Section 414(p) of the
Code.

     2.39 “Retirement” means Normal, Late, Early or Disability Retirement, as provided in
Article 7.

     2.40 “Rollover Account” means an account maintained on the books of the Plan for the
purpose of recording the Rollover Contributions, if any, made by or on behalf of a Participant
pursuant to Section 4.4, and any income, expenses, gains or losses attributable thereto and any
distributions therefrom.

     2.41 “Rollover Contribution” means a contribution made in accordance with Section
4.4.

- 8 -

 

     2.42 “Securities Plan Benefits Account” means an account maintained on the books of
the Plan for the purpose of recording the benefits of Participants in the ING [U.S.] Securities,
Futures & Options, Inc. Profit Sharing 401(k) Plan as of December 31, 1996, and any earnings
attributable to said benefits earned on or after January 1, 1997.

     2.43 “Severance Date” means the earlier of (a) the date on which an Employee
separates from service with the Company because of Retirement, death, quit or discharge, or (b)
the first anniversary of the date on which an Employee begins a period of absence from active
employment with the Company, with or without pay, for any reason other than Retirement, death,
quit or discharge.

     2.44 “Special Contribution” has the meaning set forth in Section 4.3.

     2.45 “Tax-Qualified Retirement Plan” means a retirement plan that meets the
requirements of Section 401(a) of the Code.

     2.46 “Transfer Contribution” means a contribution made in accordance with Section
4.6.

     2.47 “Trust Agreement” means the trust agreement relating to the Plan by and between
Internationale Nederlanden (U.S.) Capital Holdings Corporation and The Charles Schwab Trust
Company, provided, however, that as of January 1, 2001, Trust Agreement means the ING [U.S.]
Financial Holdings Corporation 401(k) Savings Plan Trust Agreement with Putnam Fiduciary Trust
Company as Trustee, with any and all supplements and amendments which may be in effect.

     2.48 “Trust” and “Trust Fund” means the fund established pursuant to the
Trust Agreement.

     2.49 “Trustee” means (before January 1, 2001) Charles Schwab Trust Company and (after
December 31, 2000) Putnam Fiduciary Trust Company, or such other person or persons who from time
to time act as trustee under the Trust Agreement.

     2.50 “Valuation Date” means each day that the New York Stock Exchange is open for
business, or such other date or dates as the Administrator may designate. Valuation Dates shall
occur no less frequently than once in every twelve months.

     2.51 “Year of Service” has the meaning set forth in Section 9.3.

- 9 -

 

ARTICLE 3

ELIGIBILITY TO PARTICIPATE

     3.1 Initial Eligibility. Each Employee of the Company who was a Participant in the
Plan as of June 30, 1999, shall remain eligible to participate. Each other Employee of the
Company who is a Full-Time Employee shall become a Participant on the Entry Date coinciding with
or next following the date which is six consecutive months following the Employee’s Employment
Commencement Date, provided that such Full-Time Employee is still an Employee on such Entry Date.
If an Employee who becomes a Participant in accordance with this paragraph declines to elect any
Deferral Contributions beginning as of the first date he or she becomes a Participant, such
Participant shall not be eligible to elect Deferral Contributions until the next following Entry
Date.

     Each other Employee of the Company who is a Part-Time Employee shall become a Participant in
the Plan on the Entry Date next following the date he has completed a period of 12 consecutive
months since his Employment Commencement Date, during which he was credited with at least 1,000
Hours of Service. The first such period considered shall commence on his Employment Commencement
Date; subsequent periods shall coincide with the Plan Year, commencing with the Plan Year in which
the first anniversary of his Employment Commencement Date occurs.

     A Participant who is seconded by the Company to an Affiliated Company for a temporary period
shall remain a Participant during such period, and for all purposes of this Plan his service for
such Affiliated Company during such period shall be treated as service for the Company.

     A person who becomes an Employee who is not a member of a group or class ineligible to
participate in the Plan after previously having been either a Temporary Employee or a person who
would have been a Leased Employee but for having performed services for less than one year shall
receive credit for purposes of this Article 3 for all Hours of Service credited while in such
prior employment classification pursuant to the provisions of the relevant Predecessor Plan. For
persons whose crediting of service under this paragraph is required to be calculated according to
the Securities Plan, such crediting shall be calculated in accordance with the provisions of
Income Tax Regulations Section 1.410(a)-7(f)(1)(ii).

     3.2 Eligibility Following Interruption of Service. An Employee who incurs one or
more One-Year Breaks in Service after having become a Participant shall remain eligible to
participate in the Plan, and may resume participation in the Plan as of the date on which he first
completes an Hour of Service following his return to employment. An Employee who fulfills the
relevant requirement of Section 3.1 and incurs one or more consecutive One-Year Breaks in Service
before the occurrence of his Entry Date shall become eligible to participate in the Plan as of the
date on which he first completes an Hour of Service following his return to employment. An
Employee whose employment terminates before he has fulfilled the relevant requirements of Section
3.1 shall be treated as a new Employee upon his re-employment.

- 10 -

 

     3.3 Determination and Notice of Eligibility by Administrator. The determination of
an Employee’s eligibility to participate in the Plan shall be made from the records of the Company
by the Administrator, who shall have full discretionary authority to interpret and apply the
eligibility provisions of the Plan. The Administrator shall inform each Employee who satisfies
the requirements of Section 3.1 or 3.2 of his eligibility to participate in the Plan.

     3.4 Eligibility Classification. Notwithstanding the foregoing provisions of this
Article 3, an Employee shall not be eligible to participate in the Plan for a Plan Year if such
Employee is a member of a classification of Employees of the Company which the Company has
designated as not currently eligible to be Participants. An Employee seconded to the Company by
an Affiliated Company for a temporary period of service also is not eligible to participate in the
Plan. The Company may at any time and from time to time remove any one or more Employees or any
group(s) or class(es) of Employees from eligibility for participation in this Plan, provided that
in no event shall such removal reduce the amounts theretofore credited to the Account of any
Participant. The following are not eligible to participate in the Plan:

	 	(1)	 	An Employee seconded to the Company by an Affiliated Company for a temporary
period of service.
	 
	 	(2)	 	A Leased Employee.
	 
	 	(3)	 	An individual who was hired for a specified fixed time period and whose
employment has not been changed to a permanent status (a “Temporary Employee”).
	 
	 	(4)	 	An Employee of ING Bank, N.V. other than one employed in its New York
representative office.

     3.5 Determination of Eligibility by Plan Administrator. The determination of an
Employee’s eligibility to participate in the Plan and to have a Company Contribution allocated to
his Account for the Plan Year shall be made from the records of the Company by the Plan
Administrator, who shall have full discretionary authority to interpret and apply the eligibility
provisions of the Plan and to make factual determinations necessary in connection therewith.

     3.6 Exclusion of Certain Individuals. Notwithstanding any other provision of this
Article 3 to the contrary, any individual classified by the Company as a contractor and/or an
independent contractor, including any Leased Employee, shall be ineligible to participate in the
Plan, notwithstanding any recharacterization of the individual as an employee for any federal,
state or local law purpose.

     3.7 Application of USERRA. Notwithstanding any provision of this Plan to the
contrary, contributions, benefits, and service credit with respect to qualified military service
will be provided in accordance with Section 414(u) of the Code. This provision shall be effective
as of the effective date of the Uniformed Services Employment and Reemployment Rights Act of 1994,
as amended from time to time, with respect to the Plan.

- 11 -

 

     3.8 Participation in Plan by Employees of ING Baring Furman Selz LLC. Effective
January 1, 1999, the following provisions shall apply to each person actively employed by ING
Baring Furman Selz LLC (“Furman Selz”) as of October 1, 1998:

     (a) Such person shall become a Participant in the Plan on January 1, 1999 if enrolled
on the active employment rolls of either Furman Selz or another Company on such date.

     (b) Such person shall be credited with Years of Service as if all service with Furman
Selz were service with a Company participating in the Plan.

     3.9 Participation in the Plan by Former Employees of UBS A.G. In connection with the
acquisition from UBS A.G. of the so-called “UBS Conduit Team,” effective September 15, 1999, an
Employee’s Employment Commencement Date shall be the date on which he or she first rendered an
Hour of Service with UBS A.G.; provided, however, that this rule shall not apply to an individual
who was not a member of the “UBS Conduit Team” at the time of the acquisition.

     3.10 Participation in Plan by Employees of BBL (USA) Holdings, Inc. Effective
October 1, 2001, the following provisions shall apply to each person actively employed by BBL
(USA) Holdings, Inc. (“BBL”) as of December 17, 1997:

     (a) Such person shall become a Participant in the Plan on October 1, 2001 if enrolled
on the active employment rolls of either BBL or another Company on such date.

     (b) Such person shall be credited with Years of Service as if all service with BBL were
service with a Company participating in the Plan.

     (c) If such person had an account in the BBL Plan as of December 31, 1995, Schedule A
shall apply to the amount of such account as of October 1, 2001 and earnings credited
thereon (the “BBL Plan Account”).

     3.11 Participation in Plan by Employees of ING Bank, N.V. Effective July 1, 2001,
each Employee who is employed in the New York representative office of ING Bank, N.V. shall become
a Participant in the Plan.

     3.12 Participation in Plan by Employees of Pomona Capital Management LLC. Effective
January 1, 2001, the following provisions shall apply to each person actively employed by Pomona
Capital Management LLC (“Pomona”) as of October 26, 2000:

     (a) Such person shall become a Participant in the Plan on January 1, 2001 if enrolled
on the active employment rolls of either Pomona or another Company on such date.

     (b) Such person shall be credited with Years of Service as if all service with Pomona
were service with a Company participating in the Plan.

- 12 -

 

     3.13 Participation in Plan by Employees of Aeltus Investment Management, Inc.
Effective January 1, 2002, the following provisions shall apply to each person actively employed
by Aeltus Investment Management, Inc. (“Aeltus”) as of December 31, 2001:

     (a) Such person shall become a Participant in the Plan on January 1, 2002 if enrolled
on the active employment rolls of either Aeltus or another Company on such date.

     (b) Such person shall be credited with Years of Service as if all service with Aeltus,
Aetna Services, Inc. or any affiliate of them were service with a Company participating in
the Plan.

     3.14 Erroneous Inclusion of Ineligible Employee. If in any Plan Year any person is
erroneously included in the Plan as a Participant and discovery of the incorrect inclusion is made
after a contribution on behalf of the person has been made to the Plan, the amount contributed,
plus income or loss allocable thereto, on behalf of the ineligible person shall constitute a
forfeiture for the period in which the discovery is made; provided, however, that any Deferral
Contributions shall be returned, together with the income or loss allocable thereto, to the person
who made the contribution.

     3.15 Erroneous Exclusion of Eligible Employee. If in any Plan Year an eligible
person is erroneously omitted from participation in the Plan, and if the eligible person so
directs, the person shall be permitted to make-up Deferral Contributions that would have been
made; provided, however, that no Deferral Contributions will be permitted with respect to
Compensation currently available; and provided, further, that no Deferral Contributions shall
exceed the maximum amount that would have been made on behalf of the eligible person in accordance
with the limitations of Articles 4, 5, and 6 of the Plan. The Company shall make a Company
Contribution with respect to Deferral Contributions made in accordance with this Section;
provided, however, that the Company Contribution shall not exceed the maximum amount of Company
Contribution that would have been made on behalf of the eligible person in accordance with the
limitations of Articles 5 and 6 of the Plan. The eligible person’s Account shall be credited with
income on any Deferral Contribution, and Company Contribution allocated to his Account, and such
income may be derived from forfeitures available for reallocation. In lieu of the above, the
Company may, in its discretion and with the consent of the Administrator, provide for make-up
Deferral Contributions and Company Contributions to the extent the eligible person would otherwise
have been eligible to make contributions and receive a Company Contribution pursuant to the terms
of the Plan, subject to the limitations of Articles 4, 5, and 6 of the Plan.

     The amount necessary to satisfy the provisions of this Section 3.10, other than Deferral
Contributions, shall be derived from supplementary contributions of the Company pursuant to the
last sentence of Section 5.1, to the extent the deficiency is not satisfied from forfeited amounts
pursuant to the terms of Section 6.8.

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ARTICLE 4

DEFERRAL CONTRIBUTIONS

     4.1 Participants’ Deferral Contributions. Subject to Section 4.3, each Employee who
has become eligible to participate in the Plan in accordance with Article 3 shall be entitled to
elect that the Company contribute to the Plan as a Deferral Contribution on his behalf any whole
percentage of his Compensation from one percent to 15 percent (20 percent for periods after
December 31, 2001, except that for a Non-Highly Compensated Employee for periods after December
31, 2001 such limit shall be 100%). No Participant shall be entitled to elect to have the Company
make a Deferral Contribution for any Plan Year if the contribution: (i) would cause the Annual
Addition to his Account to exceed the maximum specified in Section 6.4; or (ii) the contribution
would cause the total of the Participant’s Deferral Contributions for any calendar year to exceed
the limit set forth in Section 402(g) of the Code. Deferral Contributions shall constitute
contributions of the Company to the Plan for all purposes except the determination of Compensation
under Section 2.14. A Participant shall be 100 percent vested in his Deferral Contributions at
all times.

     4.2 Time and Manner of Deferral Contributions. The time and manner of Deferral
Contributions on behalf of Participants shall be subject to the following rules and conditions:

     (a) Each Participant shall provide, at such time and in such manner as the
Administrator shall specify, an election indicating the percentage(s), if any, of his
Compensation which shall be contributed to the Plan on his behalf as a Deferral Contribution
(an “Application”). Applications for Employees who have not previously elected to have
Deferral Contributions made on their behalf will be accepted by the Administrator as of such
date or dates as the Administrator shall from time to time establish and announce in
writing, but at least twice in every Plan Year. A Participant’s election to commence
Deferral Contributions shall remain in effect until modified or suspended in accordance with
paragraphs (d) and (e).

     (b) Deferral Contributions shall be made by payroll deductions in the percentages
elected by each Participant in his Application, and in such other manner as the
Administrator may permit in accordance with paragraph (c).

     (c) Subject to the provisions of this Section 4.2, the Administrator shall have the
discretionary authority to establish uniform and nondiscriminatory rules and procedures, and
from time to time to modify or change such rules and procedures, governing the manner and
method by which Deferral Contributions shall be made to the Plan; provided, however, that in
no event shall a Deferral Contribution be permitted with respect to Compensation currently
available to a Participant.

     (d) Within the limits prescribed in this Article 4, a Participant may elect to change
the percentage rate at which Deferral Contributions, if any, are made on his behalf, at such
times and in such manner as the Administrator shall from time to time establish and announce
in writing, but at least once each month.

- 14 -

 

     (e) A Participant may elect at any time to reduce or suspend completely the Deferral
Contributions made on his behalf, and a Participant who has suspended his Deferral
Contributions may elect to have such contributions resume, within the limits prescribed by
this Article 4, at such times and in such manner as the Administrator shall from time to
time establish and announce in writing.

     (f) All Deferral Contributions made by the Company on behalf of a Participant shall be
transmitted by the Company to the Trustee within the time required by the applicable
regulations issued pursuant to Section 401(k) of the Code and by rules and regulations
promulgated by the Department of Labor.

     4.3 Nondiscrimination Requirements for Deferral Contributions. Deferral
Contributions for a Plan Year must satisfy at least one of the following tests:

     (a) The Average Deferral Percentage (as hereinafter defined) for the group of Highly
Compensated Employees who have satisfied the eligibility requirements of Article 3 (the “HCE
Group”) does not exceed the Average Deferral Percentage for the preceding Plan Year for the
group of Non-Highly Compensated Employees who have satisfied the eligibility requirements of
Article 3 (the “NHCE Group”) times 1.25; or

     (b) The Average Deferral Percentage for the HCE Group does not exceed the Average
Deferral Percentage for the NHCE Group for the preceding Plan Year times 2.0, and the
Average Deferral Percentage for the HCE Group does not exceed the Average Deferral
Percentage for the NHCE Group for the preceding Plan Year by more than two (2) percentage
points.

     If the Company makes an election pursuant to Section 401(k)(3)(A) of the Code, the term
“current Plan Year,” when used in this Section 4.3, shall be substituted for the term “preceding
Plan Year.”

     The Average Deferral Percentage for a group of Participants for a Plan Year shall be the
average, expressed as a percentage, of the individual ratios of (i) an Employee’s Deferral
Contributions for the Plan Year to (ii) the Employee’s Compensation for the Plan Year while he is
a Plan Participant (or, provided that this method is applied to all Employees for a Plan Year, the
Participant’s Compensation for that portion of the Plan Year during which he was eligible to
participate in the Plan). In calculating such ratios, (i) Deferral Contributions returned to a
Participant to reduce an Excess Amount as defined in Section 6.4 shall be excluded; (ii)
contributions made on behalf of a Highly Compensated Employee pursuant to Section 401(k) of the
Code under all plans of any Affiliated Companies shall be considered to have been made under a
single arrangement; and (iii) the rules set forth in Income Tax Regulations Section 1.401(k)-1(b)
shall apply.

     For purposes of this Section 4.3 the term “Participant” includes any Employee who was
eligible for all or part of the Plan Year to make Deferral Contributions, or who would have been
eligible but for a suspension pursuant to Section 10.9 or the limitation contained in Section 6.4.
The Average Deferral Percentage for any Participant who makes no Deferral Contributions shall be
zero. Effective January 1, 1999, if the Company elects to apply the

- 15 -

 

special minimum coverage rule of Section 410(b)(4)(B) of the Code (relating to participation
of employees not meeting certain age and service requirements) and such rules are satisfied, the
Company may elect to exclude for purposes of this Section 4.3 all Employees (other than Highly
Compensated Employees) who have not met the minimum age and service requirements of Section
410(a)(1)(A) of the Code.

     Subject to the rules of Income Tax Regulations Section 1.401(k)-1(b)(5), in calculating
Average Deferral Percentages, the Administrator may calculate an Employee’s ratio of Deferral
Contributions to Compensation by taking into account Company Contributions allocated to his
Account as though they were Deferral Contributions. For any Plan Year in which the Deferral
Contributions elected by Participants do not satisfy one of the tests in this Section 4.3, the
Company may, but shall not be required to, make an additional contribution, which shall be
designated a Special Contribution, for the benefit of all Employees who have satisfied the
eligibility requirements of Article 3, or of all such Employees who are Non-Highly Compensated
Employees, as the Board of Directors shall specify by resolution. Any such Special Contribution
shall be allocated in proportion to the Compensation of the Employees for whose benefit it is
made.

     If the Average Deferral Percentage for the HCE Group exceeds the percentage permitted under
this Section 4.3, the amount of Deferral Contributions for certain HCEs will be reduced in the
following manner:

     The reduction in Deferral Contributions shall be effected by decreasing the amount of
Deferral Contributions of the HCE with the highest dollar amount of Deferral Contributions until
such HCE’s Deferral Contributions equal the dollar amount of the Deferral Contributions of the HCE
with the next highest dollar amount thereof; however, if a lesser reduction would suffice to
permit the Average Deferral Percentage for the HCE Group to satisfy the limitation of this Section
4.3, the reduction shall be in such lesser amount. If the total amount of reductions pursuant to
the preceding sentence hereof is less than the amount necessary to cause the Average Deferral
Percentage to satisfy such limitation, then the step described in the preceding sentence shall be
repeated. Any reduction made pursuant to this paragraph shall be designated an Excess
Contribution and shall be distributed in accordance with Section 10.11, and such reduction shall
be effective for purposes of determining the amount of contributions to be made for the
Participant’s Account pursuant to Section 5.2.

     4.4 Rollover Contributions. The Administrator, in its sole discretion, may permit an
Employee, whether or not the Employee is otherwise eligible to participate in the Plan pursuant to
any provision of the Plan to make or cause to be made on his behalf a Rollover Contribution which
satisfies the requirements of this Section 4.4. In determining whether to permit a Rollover
Contribution with respect to any Employee, the Administrator shall be concerned primarily with
whether the contribution satisfies all applicable requirements of the Code, or cases, regulations
or rulings thereunder, relating to such contributions, and in making any such determination, the
Administrator may require the Employee to furnish such certificates, affidavits, opinions of
counsel, rulings of the Internal Revenue Service, or other information as the Administrator, in
its sole discretion, considers necessary or appropriate. Any permitted Rollover Contribution made
by or on behalf of an Employee shall represent his interest in a Tax-Qualified Retirement Plan of
a previous employer of the Employee, or an individual

- 16 -

 

retirement savings plan which has been used by the Employee as a conduit for a prior
distribution of his account in a Tax-Qualified Retirement Plan of a previous employer. Rollover
Contributions shall be made either directly to the Trustee or to the Company for transmittal to
the Trustee as soon as practicable after the receipt thereof, as directed by the Administrator.
All such contributions shall be credited to a Rollover Account established for the Employee.
Rollover Accounts shall be fully vested at all times. Effective January 1, 2002, for purposes of
this Section 4.4, Tax-Qualified Retirement Plan shall include a plan described in Section 403(a)
of the Code, an annuity contract described in Section 403(b) of the Code, and an eligible plan
under Section 457(b) of the Code.

     4.5 Catch-Up Contributions. All Participants who are eligible to make Deferral
Contributions under this Plan and who have attained age 50 before the close of the Plan Year shall
be eligible to make catch-up contributions in accordance with, and subject to the limitations of,
Section 414(v) of the Code. Such catch-up contributions shall not be taken into account for
purposes of the provisions of the Plan implementing the required limitations of Sections 402(g)
and 415 of the Code. The Plan shall not be treated as failing to satisfy the provisions of the
plan implementing the requirements of section 401(k)(3), 401(k)(11), 401(k)(12), 410(b), or 416 of
the Code, as applicable, by reason of the making of such catch-up contributions. Catch-up
contributions shall be disregarded in calculating contributions by the Company pursuant to Section
5.2.

     4.6 Transfers from Qualified Plans. The Administrator, in his sole discretion, may
authorize the transfer to the Trust Fund of an amount of cash or other property acceptable to the
Trustee representing part or all of an Employee’s interest in any Tax-Qualified Retirement Plan.
Such a transfer shall be made directly from the Trustee, and assets so received by the Trustee
shall be held for the benefit of the Employee, accounted for as attributable to employer
contributions or employee contributions in the same manner as under the transferor plan, and shall
be subject to such other restrictions or limitations as the Administrator shall deem appropriate.

- 17 -

 

ARTICLE 5

CONTRIBUTIONS

     5.1 Company’s Annual Contribution. For each Plan Year, the Company shall contribute
to the Trust the sum of:

     (a) The aggregate Deferral Contributions of all Participants employed by the Company;
and

     (b) The aggregate Company Contributions determined in accordance with Section 5.2;

provided that the amount so contributed shall not exceed the maximum amount allowable as a
deduction under Section 404 of the Code for the Fiscal Year corresponding to the Plan Year with
respect to which it is made.

Contributions by each Company pursuant to this Section 5.1 shall constitute the funding policy and
method for the Plan adopted in accordance with Section 402(b)(1) of ERISA. Notwithstanding any
provision to the contrary, for any Plan Year in which Section 3.10 or 9.4 requires a contribution
that cannot be satisfied by a reallocation of forfeitures pursuant to the terms of Section 6.8,
the Company may make a supplementary contribution in the amount necessary to eliminate the
deficiency, regardless of whether the supplementary contribution causes the Company’s total
contribution to exceed the amount deductible under the Code.

     5.2 Company Contributions.

     (a) For any Plan Year the amount of the Company Contributions made for each
Participant’s Account shall be equal to 100 percent of his Deferral Contributions for such
Plan Year, disregarding any Deferral Contributions that exceed six percent of his
Compensation for that period, or that are required to be distributed as Excess Deferral
Amounts pursuant to Section 10.10, as Excess Contributions pursuant to Section 10.11, or as
an Excess Amount pursuant to Section 6.4(i).

     (b) The amount of Company Contributions by a Company for a Plan Year may be determined
by the Company in its sole discretion to be increased by up to fifty percent of amounts paid
in accordance with subsection (a) above. Said contributions shall be allocated to
Participants who are employed as of the last day of the Plan Year for which said amounts are
being contributed.

     (c) If any forfeitures should arise with respect to a Plan Year pursuant to Section
6.2(b), Section 6.3, Section 10.16 or otherwise, such forfeitures shall reduce the Company
Contribution for such Plan Year.

     5.3 Payment of Company’s Contribution. The Company’s contribution for each Plan Year
shall be paid directly to the Trustee within the time required by law in order to obtain a
deduction of the amount of such contribution for federal income tax purposes for the corresponding
Fiscal Year, as determined under the then applicable provisions of the Code and

- 18 -

 

regulations pursuant thereto. If the Company makes a discretionary Company Contribution
pursuant to Section 5.2(b), the Company shall contribute to the Trust such portion of the Company
Contribution for the Plan Year no later than the 15th day of the third month of the year following
the Plan Year.

     5.4 Schedule. As soon as is practicable after the end of each Plan Year (and in any
event, prior to the expiration of the period within which the Company is required by the Code to
make its contribution for each year, whether or not the Company makes a contribution for the
year), the Company shall if requested deliver to the Administrator and the Trustee a schedule
showing:

     (a) The amount of each Participant’s Deferral Contributions under Section 4.1 for the
Plan Year; and

     (b) The amount of Deferral Contributions of each Participant with respect to which a
Company Contribution is allocable pursuant to Section 5.2.

The schedule shall also give information as to Participants who have terminated employment during
the Plan Year, to the extent that this information has not already been given to the Trustee.

     5.5 Correction of Errors. Notwithstanding any other provision of the Plan, in the
event that the Administrator discovers after the allocations for a Plan Year have been completed
that as a result of error or inadvertence contributions in accordance with the terms of the Plan
have not been made for the benefit of an Employee who should have been a Participant, then the
Company shall make an additional contribution in the amount necessary to correct the error. In
the event that the Administrator discovers after the allocations for a Plan Year have been
completed that as a result of error or inadvertence a Participant’s Account has been credited with
an amount in excess of the amount determined in accordance with the terms of the Plan, then to the
extent that the return of such an amount to the Company is permitted under Section 1.2, the amount
shall be returned, and to the extent that return of the amount is not permitted, the amount shall
be treated as a forfeiture.

     5.6 No Obligation of Trustee and Administrator. Neither the Administrator nor the
Trustee shall be under a duty to inquire into the correctness of the amount of, or to enforce
payment of, any contribution to be made hereunder by the Company, and no one shall have any right
to question any determination of the Board of Directors concerning the amount of contribution or
the failure to make a contribution in any given year.

- 19 -

 

ARTICLE 6

ALLOCATION OF CONTRIBUTIONS AND TRUST EARNINGS

     6.1 Accounts of Participants. The Administrator or Trustee shall maintain separate
Accounts on the books of the Plan for each Participant, which shall be designated “Deferral
Contributions Account,” “Company Contributions Account” and, if applicable, “Rollover Account” and
“Securities Plan Benefits Account.” Assets transferred from a Predecessor Plan shall be accounted
for as attributable to employer contributions or employee contributions in the same manner as
under the Predecessor Plan. The Trustee shall not be required to segregate the funds in the
Accounts of Participants for purposes of investment or otherwise.

     An Employee who commenced employment with the Company on or before December 31, 1996 shall be
fully vested in his Company Contributions Account at all times.

     6.2 Allocation of Company Contributions. Subject to Section 6.4, the Company’s
contributions for each Plan Year shall be allocated among the Accounts of Participants as follows:

     (a) The Deferral Contributions elected by each Participant shall be allocated to his
Deferral Contributions Account, subject to Section 4.3.

     (b) The Company Contributions made on behalf of each Participant pursuant to Section
5.2 shall be allocated to his Company Contributions Account, subject to Section 6.3.

     6.3 Nondiscrimination Requirements for Company Contributions. Notwithstanding
Section 6.2, Company Contributions for a Plan Year must satisfy at least one of the following
tests:

     (a) The Average Contribution Percentage (as hereinafter defined) for the group of
Participants who are Highly Compensated Employees (the “HCE Group”) does not exceed the
Average Contribution Percentage for the group of Participants who are Non-Highly Compensated
Employees (the “NHCE Group”) for the preceding Plan Year times 1.25; or

     (b) The Average Contribution Percentage for the HCE Group does not exceed the Average
Contribution Percentage for the NHCE Group for the preceding Plan Year times 2.0, and the
Average Contribution Percentage for the HCE Group does not exceed the Average Contribution
Percentage for the NHCE Group for the preceding Plan Year by more than two percentage
points.

     If the Company makes an election pursuant to Section 401(m)(3) of the Code, the term “current
Plan Year,” when used in this Section 6.3, shall be substituted for the term “preceding Plan
Year.”

     The Average Contribution Percentage for a group of Participants for a Plan Year shall be the
average, expressed as a percentage, of the individual ratios of (i) the Company

- 20 -

 

Contributions allocated to the Account of a Participant for the Plan Year to (ii) the
Participant’s Compensation for the Plan Year while he is a Plan Participant (or, provided that
this method is applied to all Employees for a Plan Year, the Participant’s Compensation for that
portion of the Plan Year during which he was eligible to participate in the Plan). In calculating
such ratios, (i) contributions described in Section 401(m) of the Code and allocable to the
Account of a Highly Compensated Employee who is eligible to have such contributions allocated to
his account under two or more plans described in Section 401(a) of the Code that are maintained by
any Affiliated Company shall be considered to have been made under a single plan; and (ii) the
rules set forth in Income Tax Regulations Section 1.401(m)-1 shall apply.

     In addition to the limitation described in the preceding paragraph, Company Contributions
allocated to the Accounts of Participants in the HCE Group for any Plan Year shall be further
reduced as necessary to prevent the combined allocations of Deferral Contributions and Company
Contributions from exceeding the “aggregate limit” calculated in accordance with Income Tax
Regulations Section 1.401(m)-2(b)(3). If the Average Contribution Percentage for the HCE Group
exceeds the percentage permitted under this Section 6.3, or the combined Average Deferral
Percentage and Average Contribution Percentage for the HCE Group exceeds the “aggregate limit” as
defined in Income Tax Regulations Section 1.401(m)-2(b)(3), the amount of Company Contributions
for certain HCEs will be reduced in the following manner. Effective January 1, 2002, the multiple
use test of Income Tax Regulations Section 1.401(m)-2 shall not apply.

     For purposes of this Section 6.3, the term “Participant” includes any Employee who was
eligible for all or part of the Plan Year to receive allocations of Company Contributions or who
would have been eligible but for a suspension pursuant to Section 10.9 or the limitation contained
in Section 6.4. The Average Contribution Percentage for any Participant who receives no Company
Contributions shall be zero. Effective January 1, 1999, if the Company elects to apply the
special minimum coverage rule of Section 410(b)(4)(B) of the Code (relating to participation of
Employees not meeting certain age and service requirements) and such rule is satisfied, the
Company may elect to exclude for purpose of this Section 6.3 all Employees (other than Highly
Compensated Employees) who have not met the minimum age and service requirements of Section
410(a)(1)(A) of the Code.

     The reduction in Company Contributions shall be effected by decreasing the amount of Company
Contributions of the HCE with the highest dollar amount of Company Contributions until such HCE’s
Company Contributions equal the dollar amount of the Company Contributions of the HCE with the
next highest dollar amount thereof; however, if a lesser reduction would suffice to permit the
Average Contribution Percentage for the HCE Group to satisfy the limitation of this Section 6.3,
the reduction shall be in such lesser amount. If the total amount of reductions pursuant to the
preceding sentence hereof is less than the amount necessary to cause the Average Contribution
Percentage to satisfy such limitation, then the step described in the preceding sentence shall be
repeated. The dollar amount by which an HCE’s Company Contribution is reduced pursuant to this
paragraph (an “Excess Aggregate Contribution”) shall be distributed in accordance with Section
10.12.

     For purposes of this Section 6.3 only, “Company Contributions” means only Company
Contributions made pursuant to Section 5.2(a).

- 21 -

 

     6.4 Limitation on Participant Allocations. Any other provision of the Plan
notwithstanding, the Annual Addition with respect to a Participant for any Plan Year (which the
Company hereby designates as the Plan’s limitation year) shall not exceed an amount equal to the
lesser of $30,000 (or such larger amount as shall be in effect as a result of adjustment pursuant
to Section 415(d) of the Code) or twenty-five percent of the Participant’s “415 safe-harbor
compensation,” consisting of wages, salaries, and fees for professional services and other amounts
received (without regard to whether or not an amount is paid in cash) for personal services
actually rendered in the course of employment to the extent that the amounts are includable in
gross income (including, but not limited to, commissions paid salesmen, compensation for services
on the basis of a percentage of profits, commissions on insurance premiums, tips, bonuses, fringe
benefits, and reimbursements or other expense allowances under a nonaccountable plan (as described
in Treas. Reg. § 1.62-2(c)), and excluding the following:

     (a) Employer contributions to a plan of deferred compensation which are not includible
in the employee’s gross income for the taxable year in which contributed, or employer
contributions under a simplified employee pension plan, or any distributions from a plan of
deferred compensation, provided, however that for Plan Years beginning after December 31,
1997 “415 safe harbor compensation” shall include benefits under Section 132(f) of the Code
and any salary reduction elected pursuant to Sections 125, 401(k), 403(b) or 408(k) of the
Code;

     (b) Amounts realized from the exercise of a non-qualified stock option, or when
restricted stock (or property) held by the employee either becomes freely transferable or is
no longer subject to a substantial risk of forfeiture;

     (c) Amounts realized from the sale, exchange or other disposition of stock acquired
under a qualified stock option; and

     (d) Other amounts which received special tax benefits, or contributions made by the
employer (whether or not under a salary reduction agreement) towards the purchase of an
annuity contract described in Section 403(b) of the Code (whether or not the contributions
are actually excludable from the gross income of the employee).

Effective January 1, 2002, the first sentence of this Section 6.4 shall be applied substituting
“$40,000” for “$30,000” and “one hundred percent” for “twenty-five percent,” and the limit on
annual additions shall be applied without respect to catch-up contributions described in Section
4.5.

     For limitation years beginning on or before December 31, 1999, in the event that a
Participant is or has been or may be covered under any defined benefit plan (within the meaning of
Section 414(j) of the Code) maintained by the Affiliated Companies, the Participant’s projected
annual benefit in such defined benefit plan or plans shall be reduced by that amount necessary in
order that the sum of the Defined Benefit Plan Fraction (as hereinafter defined) and the Defined
Contribution Plan Fraction (as hereinafter defined), computed as of the close of the year, will
not exceed 1.0.

- 22 -

 

     For purposes of this Section 6.4, the following definitions shall apply:

     The “Defined Benefit Plan Fraction” for any Plan Year means a fraction, the numerator of
which is the projected annual benefit of the Participant determined as of the close of the Plan
Year under all defined benefit plans maintained by the Affiliated Companies and the denominator of
which is the lesser of (a) the product of 1.25 multiplied by the dollar limitation in effect under
Section 415(b)(1)(A) of the Code for the Plan Year, or (b) the product of 1.4 multiplied by the
amount which may be taken into account under Section 415(b)(1)(B) of the Code with respect to the
Participant for the Plan Year.

     The “Defined Contribution Plan Fraction” for any Plan Year means a fraction, the numerator of
which is the sum of the Annual Additions credited to the Participant under this Plan and any other
defined contribution plan maintained by the Affiliated Companies as of the close of the Plan Year,
and the denominator of which is the sum of the lesser of the following amounts determined for such
Plan Year and for each of the Participant’s prior Years of Service with the Affiliated Companies:
(a) the product of 1.25 multiplied by the dollar limit under Section 415(c)(1)(A) of the Code for
the Plan Year, or (b) the product of 1.4 multiplied by twenty-five percent (25%) of the
Participant’s compensation (as defined in regulations issued pursuant to Section 415 of the Code)
for the Plan Year.

     Any amount that would otherwise be allocated to the Account of any Participant but for the
limitations set forth in this Section 6.4 (hereinafter referred to as the “Excess Amount”) shall
be disposed of as follows:

     (i) Any Deferral Contribution by the Participant, together with income gain and
loss attributable thereto to the extent that the return thereof would reduce the
Excess Amount, shall be returned to the Participant. The Excess Amount shall be
held in an unallocated suspense account to which investment gains and losses shall
be allocated; and amounts shall be withdrawn from the suspense account and allocated
as hereinafter set forth. If the Participant is entitled to participate in
contributions by the Company at the end of the succeeding Plan Year, then any
remaining Excess Amount shall be reapplied to reduce contributions of the Company
under the Plan for such Plan Year (and for succeeding Plan Years) for him, so that
in each such year the sum of actual Company contributions plus the reapplied amount
of Company contributions shall equal the amount which would otherwise be allocated
to the Participant’s Account. If the Participant is not entitled to participate in
contributions by the Company at the end of the succeeding Plan Year, then the Excess
Amount shall be reapplied to reduce contributions of the Company for all remaining
Participants. If the Plan is terminated while there remains an Excess Amount which
cannot under the limitations of this Section 6.4 be allocated to the Accounts of any
Participants, the Excess Amount shall be returned to the Company, notwithstanding
any other provision hereof.

     (ii) In lieu of or in addition to the procedure described in paragraph (a)
above, the Company may, if it so elects, reduce its contribution to the Plan for

- 23 -

 

allocation to the Account of the Participant in question, by the amount
necessary to eliminate the Excess Amount.

     6.5 Net Value of the Trust. The Trustee shall ascertain the net value of the Trust
Fund on the basis of the fair market value of its assets and liabilities as of each Valuation
Date.

     6.6 Adjustment of Accounts. The balance of each Account of each Participant shall be
adjusted as of each Valuation Date,

     (a) First, by reducing the balance of each Account by the aggregate amount of all
distributions and withdrawals made from it since the immediately preceding Valuation Date;

     (b) Second, by increasing or decreasing the balance of the Account as necessary to
reflect the current fair market value of the assets in which the Account is invested;

     (c) Third, by crediting the Deferral Contributions Account with any Deferral
Contributions, and the Company Contributions Account with any Company contributions, made
for the benefit of the Participant for the period elapsed since the immediately preceding
Valuation Date.

     In adjusting each Account pursuant to clause (b) above, the income, expenses, gain and loss
(realized and unrealized) of the Trust Fund shall be allocated among the Accounts in proportion to
the balances of such Accounts as of the immediately preceding Valuation Date, as reduced pursuant
to clause (a) above. Loans shall be considered investments directed by a Participant pursuant to
Section 12.2. The amount loaned shall be charged solely against the Accounts of the Participant,
and repaid amounts and interest shall be credited solely thereto. The Account of a Participant
shall continue to be adjusted pursuant to this Section 6.6 until it has been distributed in its
entirety.

     6.7 Limitation of Participant’s Rights. Nothing contained in this Article 6 or
elsewhere in the Plan shall be deemed to give any Participant any interest in any specific part of
the Trust Fund or any interest other than his or her right to receive benefits in accordance with
the applicable provisions of the Plan.

     6.8 Forfeiture Accounts. Until sufficient time has passed in order that a
determination can be made as to whether a Participant whose employment with the Company has
terminated or has been curtailed has incurred five consecutive One-Year Breaks in Service, the
Administrator or Trustee shall account separately for any portion of his Company Contributions
Account that may be forfeited in accordance with Article 9 as a result of the Participant’s
separation from service. A Forfeiture Account shall be maintained primarily for bookkeeping
purposes, and the Trustee shall not be required to segregate assets in any such account for
investment or otherwise. As of the end of the Plan Year in which the Forfeiture Account is
forfeited in accordance with Section 9.4, and after the adjustments described in Section 6.6, the
amount credited to a Forfeiture Account shall be first used to restore contributions of returning
Participants, next to make any positive adjustment of contributions and earnings thereon
determined by the Plan Administrator to be appropriate with respect to a

- 24 -

 

Participant’s Account, including without limitation, an adjustment pursuant to Section 3.7
and, finally to reduce, but not below zero, the Company contributions described in Section 5.2.

- 25 -

 

ARTICLE 7

RETIREMENT BENEFITS

     7.1 Normal Retirement. A Participant’s Normal Retirement Date is the later of the
date he attains age 65 or the date on which he completes two years as a Participant in the Plan.

     7.2 Late Retirement. A Participant who has reached his Normal Retirement Date may
remain as an Employee until the date he establishes with the Company for his retirement. While
any Participant continues to be an Employee, he shall have all the rights under the Plan that he
would have had if he had not yet attained his Normal Retirement Date.

     7.3 Early Retirement. A Participant’s Early Retirement Date shall be the earliest
date upon which a Participant has both attained age 55 and completed two years as a Participant in
the Plan.

     7.4 Disability Retirement. If before his Normal Retirement Date a Participant
becomes totally and permanently disabled, according to the applicable insurance policy provisions
for determining whether the Participant is eligible for long-term disability benefits, he may
thereupon retire.

     7.5 Retirement Benefits. Any termination of service with the Company by a
Participant after satisfying the conditions of Section 7.1, 7.2, 7.3, or 7.4 shall be considered
Retirement for purposes of the Plan. A Participant shall be entitled to benefits under the Plan
to the extent of the credit balance of his Account as of the Valuation Date on which a
distribution of benefits on account of his Retirement is made, adjusted to reflect contributions
allocated and distributions made since the last Valuation Date and further adjusted, if necessary,
to reflect loans, distributions, including deemed distributions, offsets, and repayments pursuant
to the loan program in Section 14.2. Benefits determined under this Article 7 shall be payable in
accordance with Article 10.

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ARTICLE 8

DEATH BENEFITS

     8.1 Death of a Participant. If a Participant dies before the termination of his
employment, his Beneficiary shall be entitled to benefits under the Plan to the extent of the
credit balance of his Account as of the Valuation Date on which a distribution of benefits on
account of his death is made, adjusted to reflect contributions allocated and distributions made
since the most recent prior Valuation Date, and further adjusted, if necessary, to reflect loans,
distributions, including deemed distributions, offsets, and repayments pursuant to the loan
program in Section 14.2. If a Participant dies after leaving employment but before distribution
to him of all of the benefits to which he is entitled under the Plan has been completed, his
Beneficiary shall be entitled to the benefits the Participant would have received had he lived.
In all other cases, benefits determined under this Article 8 shall be paid in a single lump sum.

     8.2 Designation of Beneficiary. A Participant may designate a beneficiary or
beneficiaries under the Plan by completing and delivering to the Administrator a form provided by
the Administrator, and may revoke or revise any such designation by completing and delivering
another such form, in which case the form bearing the later date that was last received by the
Administrator shall control; provided, however, that a Participant’s designation of a Beneficiary
other than his spouse shall not take effect unless either (i) the Participant’s spouse consents in
writing to such designation, and the spouse’s consent acknowledges the effect of such designation
and is witnessed by a notary public, or (ii) it is established to the satisfaction of the
Administrator that the Participant has no spouse, or that the spouse’s consent cannot be obtained
because the spouse cannot be located, or because of such other circumstances as may be prescribed
in regulations pursuant to Section 417 of the Code. No such designation shall be effective unless
filed with the Administrator before the death of the Participant. The marriage of a Participant
shall revoke any designation of Beneficiary made before the marriage, and the divorce of a
Participant shall revoke any designation of such person’s former spouse as a Beneficiary except as
otherwise provided in a Qualified Domestic Relations Order.

     8.3 Distribution in Case No Beneficiary Designated or Surviving. If no Beneficiary
has been properly designated or if no designated Beneficiary survives a deceased Participant the
benefits otherwise distributable to the deceased shall be paid to the person (or if the class
consists of more than one person, in equal shares to each of the persons) in the first of the
following classes:

     (a) Participant’s surviving spouse;

     (b) Participant’s surviving issue, by right of representation; or

     (c) Participant’s estate;

provided, however; that as a condition to payment, the Administrator may require such receipts,
releases, indemnity agreements, waivers, proofs, and other documents as it may deem necessary or
desirable.

- 27 -

 

	8.4	 	Death of a Beneficiary. Unless otherwise specified in the form of designation of
Beneficiary, in the event of the death of a Beneficiary who has become entitled to receive
benefits under the Plan, any benefits remaining to be paid to the deceased Beneficiary shall be
paid to his estate.

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ARTICLE 9

SEVERANCE BENEFITS

     9.1 Severance Benefit. If a Participant terminates his service with the Affiliated
Companies for any reason other than death or Retirement before he has completed two Years of
Service, he shall be entitled to benefits under the Plan to the extent of the credit balance of
his Deferral Contributions Account, Rollover Account and Securities Plan Benefits Account, as of
the Valuation Date which coincides with or immediately precedes the date of distribution of
benefits hereunder, adjusted, if necessary, pursuant to the loan program referred to in Section
14.2. If a Participant terminates his service with the Affiliated Companies for any reason other
than death or Retirement after he has completed two Years of Service, he shall be entitled to
benefits under the Plan to the extent of the credit balance of his Company Contributions Account,
Deferral Contributions Account, Rollover Account and Securities Plan Benefits Account. Any
severance benefit determined under this Article 9 shall be payable in accordance with Article 10,
except that benefits shall not be payable in the form of a series of substantially equal annual
(or more frequent) installments over a period certain not extending beyond the life expectancy of
the Participant unless the Participant elects to defer payment of the severance benefit until he
attains his Normal Retirement Date.

     9.2 Vested Balance. A Participant’s Deferral Contributions Account, Rollover
Account, and, if applicable, Securities Plan Benefits Account shall be fully vested at all times.
Unless a Participant’s Company Contributions Account has become fully vested on account of his
death or Retirement, a Participant shall fully vest in his Company Contributions Account when he
has been credited with two Years of Service provided, however, that a Participant whose Employment
Commencement Date is after December 31, 2001 shall vest in his Company Contributions Account 25%
after he has been credited with One Year of Service, 50% after he has been credited with two Years
of Service, 75% after he has been credited with three Years of Service and 100% after he has been
credited with four Years of Service.

     9.3 Years of Service. The number of Years of Service to be credited to a Participant
shall be determined as follows:

     (a) General Rule. An Employee (whether or not he is a Participant for the Plan
Year) or Leased Employee shall be credited with one Year of Service for each Plan Year
during which he is credited with at least 1,000 Hours of Service.

     (b) Returned Employees. In the case of a Participant who incurs one or more
consecutive One-Year Breaks in Service and then returns to employment with the Company, the
following rules shall apply:

     (i) In determining the vested portion of the Company Contributions Account of
the Participant attributable to Company contributions and forfeitures occurring
before the One-Year Break in Service, the Participant’s Years of Service after the
One-Year Break in Service shall be included, unless the Participant incurred at
least five consecutive One-Year Breaks in Service.

- 29 -

 

     (ii) In determining the vested portion of the Company Contributions Account of
the Participant attributable to Company contributions and forfeitures occurring
after the One-Year Break in Service, Years of Service before the One-Year Break in
Service shall be included in the number of Years of Service of the Participant if,
but only if, such Participant is credited with 1,000 Hours of Service during the
twelve consecutive month period measured from the date of his return from such
One-Year Break in Service, or during any Plan Year following his return from such
One-Year Break in Service.

     (iii) In the case of a Participant who returns to employment with the Company
following five consecutive One-Year Breaks in Service, subaccounts shall be
maintained with respect to the portions of his Company Contributions Account which
accrued prior to and subsequent to such One-Year Breaks in Service until all such
subaccounts become fully vested.

     (iv) In the case of a Participant who was fully vested in his Company
Contributions Account by reason of the last sentence of Section 6.1 and who returns
to employment with the Company following five consecutive One-Year Breaks in
Service, said Participant shall be subject to the provisions of this Article 9 with
respect to Company Contributions allocated to his Company Contributions Account
after his return to employment.

     9.4 Disposition of Forfeitures. When a Participant whose Account has not become
fully vested in accordance with Section 9.2 terminates his employment with the Company for any
reason other than death or Retirement, or incurs a One-Year Break in Service without a termination
of employment, the portion of his Company Contributions Account which is not then vested shall be
credited to a Forfeiture Account as described in Section 6.8, and the Forfeiture Account shall be
disposed of as follows:

     (a) If a Former Participant receives no distribution with respect to his Company
Contributions Account, and he returns to employment with the Company before he has incurred
five consecutive One-Year Breaks in Service, the amount credited to his Forfeiture Account
shall thereupon be restored to his Company Contributions Account. The amount to be restored
shall be determined as if the Forfeiture Account had been invested throughout the
Participant’s absence in a money market fund offered as an investment option under the Plan
or a similar short-term fixed income investment.

     (b) If a Former Participant receives a distribution of the vested portion of his
Company Contributions Account, and he returns to employment with the Company before he has
incurred five consecutive One-Year Breaks in Service, the amount credited to his Forfeiture
Account shall be restored to his Company Contributions Account only if he repays to the
Trustee the full amount of his distribution, before the date on which he incurs five
consecutive One-Year Breaks in Service. The amount to be restored shall be determined as if
the Forfeiture Account had been invested throughout the Participant’s absence in a money
market fund offered as an investment option under the Plan or a similar short-term fixed
income investment.

- 30 -

 

     (c) If a Former Participant who receives no distribution or deemed distribution does
not return to employment with the Company before he incurs five consecutive One-Year Breaks
in Service, the nonvested portion of his Account balance shall be irrevocably forfeited and
the related forfeiture will be reallocated to the Forfeiture Account as of the last day of
the Plan Year that constitutes his fifth consecutive One-Year Break in Service.

     (d) The Company may direct that the amount credited to
a Participant’s Forfeiture Account be reallocated among the Accounts of other Participants
as of the end of a Plan Year before the Participant has incurred five consecutive One-Year
Breaks in Service, provided that the Forfeiture Account continues to be maintained on the
books of the Plan and remains subject to the restoration rules described in subparagraphs
(a) and (b).

     (e) The amount necessary to restore any Participant’s
Account shall be derived first from the net earnings, if any, of Forfeited Accounts during
the Plan Year; second from the amounts of any Forfeiture Accounts which the Company has
released for reallocation as of the end of the Plan Year; and finally, to the extent of any
deficiency, from supplementary contributions of the Company pursuant to the last sentence of
Section 5.1. In no event shall the amount restored to a Participant’s Account be less than
the amount credited to the Account when a Forfeiture Account was established for the
Participant.

     9.5 Severance Benefits in Certain Cases. In applying the provisions of Section 9.2
to a Participant who has received a severance benefit under Section 9.1 or a hardship distribution
pursuant to Section 10.9 with respect to his Company Contributions Account on account of a prior
termination of employment wherein, for any reason, the Participant did not incur five consecutive
One-Year Breaks in Service, the vested amount remaining in such Account at any time shall be
determined in accordance with the formula:

          Vested Amount = P(AB + D) — D

where (i) P equals the vested percentage at the relevant time; (ii) AB is the credit balance of
his Company Contributions Account as of the appropriate Valuation Date; and (iii) D is the amount
previously distributed. The amount of severance benefit distributable to a terminated Participant
in accordance with the preceding sentence shall be reduced by any distribution to him since the
appropriate Valuation Date.

- 31 -

 

ARTICLE 10

DISTRIBUTION OF BENEFITS

     10.1 Time and Manner of Distribution of Retirement and Severance Benefits.
Distribution of Retirement benefits shall be made not later than the sixtieth day following the
close of the Plan Year in which a Participant’s Retirement occurs, unless he elects in writing to
postpone distribution until a date that satisfies the requirements of Section 10.2; provided,
however, that the failure of a Participant to consent to a distribution of benefits shall be
deemed an election to postpone benefit distributions until the Participant’s Normal Retirement
Date as defined in Section 7.1. Subject to Section 10.2, a Participant’s severance benefit
distribution shall be made not later than the sixtieth day after the close of the Plan Year in
which the Participant’s employment with the Company terminates, provided that one of the following
circumstances exists:

     (a) As of the Valuation Date next preceding the distribution, the value of the
Participant’s Account did not exceed $3,500 ($5,000 for distributions occurring after
December 31, 1997); or

     (b) The Participant has consented in writing to the making of the distribution.

In any other circumstances, the distribution shall be made not later than the sixtieth day after
the close of the Plan Year in which occurs the earliest of the Administrator’s receipt of the
Participant’s consent to making a distribution, Normal Retirement Date or death; provided,
however; that the failure of a Participant to consent to a distribution of benefits shall be
deemed to be an election to postpone benefit distributions until such time as distributions are
required pursuant to Section 10.2.

     Except as otherwise provided by Schedules A or B, benefits on account of Retirement shall be
distributed in cash or kind, in either of the following manners, as elected by the Participant:

     (a) A lump sum; or

     (b) A series of substantially equal annual (or more frequent) installments over a
period certain not extending beyond the life expectancy of the Participant (or, if his
Beneficiary is his spouse or is an individual designated by the Participant in accordance
with Section 8.2, the joint life and last survivor expectancy of the Participant and such
spouse or other individual).

     Notwithstanding any other provision of this Plan, effective January 1, 2002 distributions
shall be available only in a lump sum and in substantially equal annual installments over either
five or ten years, provided, however, that the above provisions of this Section 10.1, and all
other provisions of this Plan relating thereto, shall remain in effect with respect to a
Participant who reached his or her annuity starting date, or who commenced distributions, prior to
the date determined by the Administrator to be ninety days after the distribution of a summary
plan description or summary of material modifications describing the change made by this
paragraph.

- 32 -

 

     Life expectancy and joint and last survivor expectancy shall be computed by use of the
expected return multiples in Tables V and VI of Income Regulations Section 1.72-9. The life
expectancy or expectancies of a Participant and his spouse shall be redetermined every year,
unless the Participant explicitly elects otherwise on or before his required beginning date
specified in Section 10.2 that one or both of such expectancies not be recalculated. The life
expectancy of a Beneficiary who is not the Participant’s spouse shall not be recalculated.

     A distribution to which Sections 401(a)(11) and 417 of the Code do not apply may commence
less than thirty days after the notice required under Income Tax Regulations Section
1.411(a)-11(c) is given, provided that the Administrator informs the distributee that he has a
right to a period of at least thirty days after receiving the notice to consider whether or not to
elect a distribution and, if so, what form of distribution, and the Participant thereafter
affirmatively elects a distribution.

     10.2 Minimum Distribution Requirements. In the event of his Retirement or other
termination of employment during his lifetime, a Participant may postpone the commencement of
benefit distributions until any date which meets the requirements stated in this Section 10.2.
Distributions must in all events satisfy the minimum distribution requirements in Section
401(a)(9) of the Code and any proposed, temporary or final regulations promulgated thereunder.

     The entire interest of a Participant must be distributed, or begin to be distributed, no
later than the Participant’s required beginning date, determined as follows:

     (a) General Rule. The required beginning date of a Participant is the first
day of April of the calendar year following the later of the calendar year in which the
Participant attains age 701/2 or the calendar year in which the Participant’s Retirement
occurs.

     (b) Former Participants and five-percent owners. The required beginning date
of a Former Participant or a Participant who is a five-percent owner is the first day of
April following the calendar year in which the employee attains age 701/2. A Participant is
treated as a five-percent owner for purposes of this Section 10.2 if he is a “5-percent
owner” as defined in Section 416(i) of the Code at any time during the Plan Year ending
within the calendar year in which he attains age 701/2.

     For Plan Years Ending Before January 1, 2001. Commencing with the calendar year
immediately preceding the Participant’s or Former Participant’s required beginning date, the
minimum amount required to be distributed with respect to each calendar year is the Participant’s
or Former Participant’s applicable Account balance divided by the life expectancy or joint life
and last survivor expectancy that measures the period certain of the distribution. The applicable
Account balance is the credit balance of the Participant’s or Former Participant’s Account as of
the last day of the calendar year immediately preceding the calendar year for which the minimum
distribution amount is determined; provided, however, that any distribution made on or before the
Participant’s or Former Participant’s required beginning date, with respect to the first calendar
year in which minimum distributions are required, shall be treated for this purpose as if it had
been made in the calendar year

- 33 -

 

immediately preceding the Participant’s or Former Participant’s required beginning date. A
Participant’s first minimum required distribution must be made on or before the Participant’s or
Former Participant’s required beginning date. The minimum required distribution for each
subsequent calendar year, including the minimum distribution for the calendar year in which the
Participant’s required beginning date occurs, must be made on or before December 31 of the
calendar year with respect to which it is made. For purposes of this Section 10.2, life
expectancy and joint and last survivor expectancy shall be computed by use of the expected return
multiples in Tables V and VI of Income Tax Regulations Section 1.72-9. The life expectancy or
expectancies of a Participant and his spouse shall be redetermined every year, unless the
Participant explicitly elects otherwise on or before his required beginning date specified in
Section 10.2 that one or both of such expectancies not be recalculated. The life expectancy of a
Beneficiary who is not the Participant’s spouse shall not be recalculated.

     For Plan Years After December 31, 2000. With respect to distributions under the Plan
made in calendar years beginning on or after January 1, 2001, the Plan will apply the minimum
distribution requirements of Section 401(a)(9) of the Code in accordance with the regulations
under Section 401(a)(9) that were proposed in January 2001, notwithstanding any provision of the
Plan to the contrary. This provision shall continue in effect until the end of the last calendar
year beginning before the effective date of final regulations under Section 401(a)(9) or such
other date as specified in guidance published by the Internal Revenue Service.

     Distributions made to satisfy the requirements of this Section 10.2 shall be made from all
Accounts on a pro rata basis.

     10.3 Time and Manner of Distribution of Death Benefits. In the event of the death of
a Participant who has not received any distribution of benefits, distribution of benefits to his
Beneficiary shall be made promptly after his death, and in no event later than the sixtieth day
following the close of the Plan Year in which his death occurs. Distribution shall be made in a
lump sum. If the Beneficiary of a deceased Participant who had not received any distribution of
benefits from the Plan at the time of his death is his surviving spouse, and the surviving spouse
dies before payment of benefits from the Plan commences, then the rules stated in this Section
10.3 shall apply as though the surviving spouse were the Participant.

     10.4 Elective Distribution after Attainment of Age 59-1/2. A Participant who
continues in employment after reaching age 59-1/2 may at his election receive one or more single
sum distributions from his Account. With respect to distributions before January 1, 2002, each
such distribution must be in an amount not less than $500.00 (or, if less, the entire credit
balance of his Account). The election to receive such a distribution shall be made in writing in
a form acceptable to the Administrator, and delivered to the Administrator. A distribution
pursuant to this Section 10.4 may not be repaid to the Plan.

     10.5 Notice of Death, Retirement or Termination of Service. As soon as possible
after the death, Retirement or other termination of service of a Participant, the Administrator
shall deliver to the Trustee a notice specifying the name and address of the Participant
(including, if applicable, any designated or contingent Beneficiary) who is entitled to receive
benefits under the Plan, the time such benefits are to be paid, and the medium of payment.

- 34 -

 

     10.6 Direct Rollover Distributions. Notwithstanding any other provision of the Plan,
an Eligible Recipient may elect, at the time and in the manner prescribed by the Administrator, to
have all or any portion of an Eligible Distribution paid to an Eligible Plan specified by the
Eligible Recipient.

     As used in this Section 10.6, the terms set forth below have the following meanings:

     “Eligible Distribution” means any distribution made after December 31, 1992 from the Plan to
an Eligible Recipient, to the extent that it is includible in the Eligible Recipient’s gross
income (or would be includible but for the exclusion of net unrealized appreciation in employer
securities), and is not required under Section 401(a)(9) of the Code, unless the distribution is
one of a series of substantially equal periodic payments made no less frequently than annually
over a specified period of ten or more years, or the life or life expectancy of an Eligible
Recipient or the joint lives or joint life expectancies of the Eligible Recipient and a designated
beneficiary, any portion of any distribution which is applied as a loan payment offset under the
loan program referred to in Section 14.2, or effective January 1, 1999 the distribution consists
of Employee Deferral Contributions or Special Contributions and is made pursuant to Section 10.9.

     “Eligible Plan” means any of the following that agrees to accept an Eligible Recipient’s
Eligible Distribution: an individual retirement account described in Section 408(a) of the Code;
an individual retirement annuity described in Section 408(b) of the Code; and, for any Eligible
Recipient other than a Participant’s surviving spouse, a qualified plan described in Section
401(a) of the Code or a qualified annuity described in Section 403(a) of the Code.

     “Eligible Recipient” means a Participant, a Former Participant, the surviving spouse of a
deceased Participant or Former Participant or an alternate payee under a Qualified Domestic
Relations Order who is either the spouse or former spouse of a Participant or Former Participant.

     10.7 Direct Rollover Distributions After 2001.

     (a) Effective Date. This section shall apply to distributions made after December 31,
2001.

     (b) Modification of definition of eligible retirement plan. For purposes of the direct
rollover provisions in Section 10.6 of the Plan, an eligible retirement plan shall also mean
an annuity contract described in section 403(b) of the Code and an eligible plan under
section 457(b) of the Code which is maintained by a state, political subdivision of a state,
or any agency or instrumentality of a state or political subdivision of a state and which
agrees to separately account for amounts transferred into such plan from this plan. The
definition of eligible retirement plan shall also apply in the case of a distribution to a
surviving spouse, or to a spouse or former spouse who is the alternate payee under a
qualified domestic relation order, as defined in section 414(p) of the Code.

     (c) Modification of definition of eligible rollover distribution to exclude hardship
distributions. For purposes of the direct rollover provisions in Section 10.6 of the Plan,
any amount that is distributed on account of hardship shall not be an eligible

- 35 -

 

rollover distribution and the distributee may not elect to have any portion of such a
distribution paid directly to an eligible retirement plan.

     (d) Modification of definition of eligible rollover distribution to include after-tax
employee contributions. For purposes of the direct rollover provisions in Section 10.6 of
the Plan, a portion of a distribution shall not fail to be an eligible rollover distribution
merely because the portion consists of after-tax employee contributions which are not
includible in gross income. However, such portion may be transferred only to an individual
retirement account or annuity described in section 408(a) or (b) of the Code, or to a
qualified defined contribution plan described in section 401(a) or 403(a) of the Code that
agrees to separately account for amounts so transferred, including separately accounting for
the portion of such distribution which is includible in gross income and the portion of such
distribution which is not so includible.

     10.8 Distribution under Qualified Domestic Relations Order. If the Administrator
determines that the Plan has received a Qualified Domestic Relations Order with respect to a
Participant’s Account, distributions shall be made in accordance with the requirements of such
Qualified Domestic Relations Order, notwithstanding that the Qualified Domestic Relations Order
provides for payments to an alternate payee before the Participant reaches the “earliest
retirement age” within the meaning of Section 414(p)(4)(B) of the Code, and before any
distribution other than a hardship distribution may be made to the Participant pursuant to the
Plan.

     10.9 Hardship Distributions. The Administrator may instruct the Trustee to
distribute to a Participant who is experiencing hardship due to an immediate and heavy financial
need the amount necessary to satisfy that need, but not more than the sum of (i) the credit
balance of his Deferral Contributions Account as of December 31, 1988, (ii) the aggregate amount
of his Deferral Contributions made after December 31, 1988, and (iii) (prior to January 1, 2002
only) the aggregate credit balance of his vested Company Contributions Account as of the Valuation
Date on which the distribution is made, adjusted as necessary to reflect contributions allocated
and distributions made since the most recent prior Valuation Date and further adjusted, if
necessary, to reflect loans, distributions, including deemed distributions offsets, and repayments
pursuant to the Loan Program in Section 14.2. Hardship distributions shall be deemed to come
first from a Participant’s Company Contributions Account, and then from his Deferral Contributions
Account. No hardship distribution may be made which would impair the collateral of the Trustee
for a loan to a Participant. The amount of an immediate and heavy financial need may include any
amounts necessary to pay any federal, state or local income taxes or penalties reasonably
anticipated to result from the distribution. For purposes of this Section 10.9, a distribution
will be considered to be made on account of an immediate and heavy financial need only if it is
made on account of:

     (a) Costs directly related to the purchase of a dwelling unit to be used as a principal
residence of the Participant (excluding mortgage payments); or

     (b) Payment of tuition and related educational fees for the next twelve months of
post-secondary education for the Participant, his spouse, or dependents; or

- 36 -

 

     (c) Expenses for medical care described in Section 213(d) of the Code for the
Participant, his spouse, children and dependents, or necessary for these persons to obtain
such care; or

     (d) Payment necessary to prevent the eviction of the Participant from his principal
residence or the foreclosure of a mortgage on the Participant’s principal residence; or

     (e) Such additional circumstances as the Secretary of the Treasury shall announce from
time to time in rulings of general application pursuant to the Income Tax Regulations issued
under Section 401(k) of the Code.

     A Participant who requests a distribution pursuant to this Section 10.9 must represent to the
Administrator that he is unable to meet his financial need through reimbursement or compensation
by insurance or otherwise, by reasonable liquidation of his assets (including those of his spouse
and minor children), by cessation of Deferral Contributions, by other distributions or nontaxable
loans from benefit plans, or by borrowing from commercial sources on reasonable terms. A
Participant who receives a distribution pursuant to this Section 10.9 may not make Deferral
Contributions in the period of twelve calendar months immediately following the distribution (or,
in the case of distributions occurring after December 31, 2000, until the later of January 1, 2002
or six calendar months immediately following the distribution).

     10.10 Distribution of Excess Deferrals. Notwithstanding any other provision of the
Plan, Excess Deferral Amounts and income or loss allocable thereto (including all earnings,
expenses, and appreciation or depreciation in value, whether or not realized) shall be distributed
no later than each April 15 to Participants who claim Excess Deferral Amounts for the preceding
calendar year.

     “Excess Deferral Amount” means the amount of Deferral Contributions for a calendar year that
the Participant designates to the Plan pursuant to the following procedure. The Participant’s
designation shall be submitted to the Administrator in writing no later than March 1, shall
specify the Participant’s Excess Deferral Amount for the preceding calendar year; and shall be
accompanied by the Participant’s written statement that if the Excess Deferral Amount is not
distributed, it will when added to amounts deferred under other plans or arrangements described in
Section 401(k), 408(k) or 403(b) of the Code exceed the limit imposed on the Participant by
Section 402(g) of the Code for the year in which the deferral occurred. A Participant who has an
Excess Deferral Amount for a taxable year, taking into account only his Deferral Contributions
under the Plan or any other plans of this employer, shall be deemed to have designated the entire
amount of such Deferral Contributions.

     The income or loss allocable to an Excess Deferral Amount for the preceding calendar year
shall be determined by

     (a) multiplying the income or loss allocated to the Participant’s Deferral
Contributions Account for the preceding calendar year by a fraction, the numerator of which
is the Excess Deferral Amount and the denominator of which is the balance of the

- 37 -

 

Participant’s Deferral Contributions Account without regard to any income or loss
occurring during the preceding calendar year; or

     (b) any other reasonable method that is actually used by the Plan for allocating income
and loss to Participants’ Accounts, provided that the method does not violate Section
401(a)(4) of the Code, and is used consistently for all Participants and for all corrective
distributions with respect to a given Plan Year.

     10.11 Distribution of Excess Contributions. Notwithstanding any other provision of
the Plan, Excess Contributions and income or loss allocable thereto (including all earnings,
expenses and appreciation or depreciation in value, whether or not realized) shall be distributed
no later than the last day of each Plan Year to Participants on whose behalf such Excess
Contributions were made for the preceding Plan Year.

     “Excess Contributions” shall mean the amount described in Section 401(k)(8)(B) of the Code.
The income or loss allocable to Excess Contributions for the preceding Plan Year shall be
determined by

     (a) multiplying the income or loss allocated to the Participant’s Deferral
Contributions Account for the preceding Plan Year by a fraction, the numerator of which is
the Excess Contributions on behalf of the Participant for the preceding Plan Year and the
denominator of which is the balance of the Participant’s Deferral Contributions Account
without regard to any income or loss occurring during the preceding Plan Year; or

     (b) any other reasonable method that is actually used by the Plan for allocating income
and loss to Participants’ Accounts, provided that the method does not violate Section
401(a)(4) of the Code, and is used consistently for all Participants and for all corrective
distributions with respect to a given Plan Year.

     The Excess Contributions which would otherwise be distributed to the Participant shall be
reduced by the amount of Excess Deferrals distributed to the Participant. Amounts distributed
under this Section 10.11 shall be treated as distributions from the Participant’s Deferral
Contributions Account.

     10.12 Distribution of Excess Aggregate Contributions. Notwithstanding any other
provision of the Plan, Excess Aggregate Contributions and income or loss allocable thereto
(including all earnings, expenses, and appreciation or depreciation in value, whether or not
realized) shall be distributed no later than the last day of each Plan Year to Participants to
whose accounts Company Contributions were allocated for the preceding Plan Year.

     “Excess Aggregate Contributions” shall mean the amount described in Section 401(m)(6)(B) of
the Code. The income or loss allocable to Excess Aggregate Contributions for the preceding Plan
Year shall be determined by

     (a) multiplying the income or loss allocated to the Participant’s Company Contributions
Account for the preceding Plan Year by a fraction, the numerator of which is the Excess
Aggregate Contributions on behalf of the Participant for the preceding Plan

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Year and the denominator of which is the balance of the Participant’s Company
Contributions Account without regard to income or loss occurring during the preceding Plan
Year; or

     (b) any other reasonable method that is actually used by the Plan for allocating income
and loss to Participants’ Accounts, provided that the method does not violate Section
401(a)(4) of the Code, and is used consistently for all Participants and for all corrective
distributions with respect to a given Plan Year.

     10.13 Withdrawals from Rollover and After-Tax Accounts and of Certain Matching
Contributions. Subject to such reasonable and nondiscriminatory rules as the Administrator
may establish from time to time to facilitate administration of the Plan, a Participant or
Beneficiary may, by giving notice to the Administrator of his intention to withdraw, at any time
and from time to time, withdraw all or any part of his Rollover Account, or of any after-tax
Account that was transferred from the BBL Plan or from the ING Savings Plan and ESOP. A
distribution of all or any part of a Rollover Account shall be made in accordance with the
provisions of this Article 10. Any employer matching contribution transferred from the ING
Savings Plan and ESOP may be withdrawn under this Section 10.13 after two years have expired from
the date of such contribution. The Administrator shall direct the Trustee to make the
distribution requested by the Participant or Beneficiary as promptly as practicable.

     10.14 Distributions upon Plan Termination. The balances of Participants’ Accounts,
including Deferral Contributions and income attributable thereto, may be distributed to
Participants or their beneficiaries as soon as administratively feasible after the termination of
the Plan, provided that neither the Company nor an Affiliated Company maintains a successor plan.

     10.15 Cessation of Interest. The interest in the Plan and Trust of a Participant or
Beneficiary shall cease upon the delivery to him of a lump sum distribution or the sum of all
installments, as required by the Administrator in its notice.

     10.16 Missing Persons. If a person entitled to benefits under the Plan cannot be
located after diligent search by the Administrator or the Trustee and the whereabouts of such
person continues to be unknown for a period of three years, the Administrator or Trustee may
determine that such person has died, whereupon his benefits shall be distributed to the
Beneficiary determined in accordance with Article 8, or if no such Beneficiary can be determined
or located after reasonable efforts, the Administrator may determine that such benefits are
forfeited and the amount thereof shall be allocated as provided in Section 5.2(c); provided,
however, that such benefits shall be restored upon the filing of a claim by the Participant or
Beneficiary within the time prescribed by applicable law or regulations.

     10.17 Mailing of Benefits. Whenever the Trustee is directed to make payment or
delivery of benefits in accordance with a notice of the Administrator, mailing a check in the
appropriate amount to the person or persons entitled thereto at the address designated in such
notice shall be adequate delivery by the Trustee for all purposes.

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     10.18 Minors and Incompetents. In the event that any benefit hereunder becomes
payable to a minor or to a person under legal disability or to a person not judicially declared
incompetent but who, by reason of illness or mental or physical disability, is, in the opinion of
the Administrator, unable properly to administer such benefit, then the same shall be paid out in
such of the following ways as the Administrator deems best, and the Trustee, the Administrator and
the Company shall not incur any liability therefor: (a) directly to such person; (b) to the
legally appointed guardian or conservator of such person; (c) to some relative or friend for the
care and support of such person; or (d) by the Administrator’s using such benefit directly for
such person’s care and support.

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ARTICLE 11

ADMINISTRATION OF THE PLAN

     11.1 Appointment of Administrator. The Company may appoint one or more individuals,
firms, corporations or other entities to be the Administrator of the Plan, and the Company may, at
any time and from time to time, remove such person(s) as Administrator, with or without cause. If
the Company determines that the Administrator shall be a committee of individuals, it shall
appoint such a committee (the “Committee”) to consist of two or more persons who may, but need not
be, Employees, and who may be Trustees. A member of the Committee may be removed by the Company
at any time with or without cause. Vacancies in the Committee may be filled by the Company. The
Administrator or a member of the Committee may resign at any time by filing written notice thereof
with the Company. Each member of the Committee shall serve until such time as he dies, resigns,
or is removed by the Company. In the absence of any action by the Company to appoint an
Administrator as herein set forth, the Company shall be the Administrator of the Plan.

     11.2 Powers and Duties of Administrator; Administrator Not to Act in Discriminatory
Manner. The Administrator shall constitute the “named fiduciary” and the “administrator” with
respect to the Plan as such terms are defined in ERISA, and in such capacities it shall have
authority to control and manage the operation and administration of the Plan. The Administrator
shall have the powers and duties specified in the Plan and, not in limitation but in amplification
of the foregoing, shall have discretionary authority to construe the Plan and the Trust Agreement
and to determine all questions and to make all necessary factual determinations with respect to
all issues arising thereunder, including particular questions submitted by the Trustee on all
matters necessary for it properly to discharge its duties, powers and obligations.

     The Administrator may employ such accountants, counsel, specialists, and other persons as it
deems necessary or desirable in connection with the administration of this Plan. To the extent
permitted by ERISA, the Administrator may delegate any of its fiduciary responsibilities or other
duties or responsibilities to such persons as the Administrator deems appropriate.

     The Administrator may correct any defect, supply any omission, reconcile any inconsistency,
and adopt such rules and procedures with respect to the administration of this Plan in such manner
and to such extent as it may deem necessary and expedient to carry out the Plan. The rules and
decisions of the Administrator made in good faith upon any matter within the scope of its
authority shall be final and binding upon all parties, but the Administrator at all times shall
make similar decisions on similar questions involving similar circumstances, and the
Administrator shall not act in such a manner as to discriminate in favor of Highly Compensated
Participants.

     The Administrator and every person who handles assets of the Plan shall be covered by a
fidelity bond meeting the requirements of Section 412 of Title I of ERISA.

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     11.3 Notification of Trustee. The Company shall from time to time notify the Trustee
of the names and addresses of all members of the Administrator and of changes thereof, and the
Trustee may act in full reliance upon the last such notice received.

     11.4 Committee Procedures: Chairman and Secretary. In the event that the Company
appoints a Committee as Administrator, the Committee may adopt such bylaws and regulations as it
deems desirable for the conduct of its affairs. Any act which the Plan or the Trust Agreement
authorizes or requires the Administrator to do may be done by a majority of the members of the
Committee serving at the time. The action of such majority of the members of the Committee
expressed either by a vote at a meeting or in writing without a meeting shall constitute the
action of the Administrator and shall have the same effect for all purposes as if assented to by
all of the members of the Committee at the time in office. A member of the Committee who is a
Participant or Former Participant under the Plan shall not vote on any question relating
exclusively to himself.

     The Committee may from time to time elect one of its members as Chairman. The Administrator
shall appoint a Secretary to the Committee, who may be either a member of the Committee or a
nonmember approved by the Company. The Chairman and Secretary shall hold their respective offices
until their successors are elected, or until the officer in question sooner dies, resigns, is
removed from office or replaced by the action of the Administrator, or, in the case of a Chairman,
becomes disqualified by ceasing to be a member of the Committee. A Chairman of the Committee
shall have such powers and duties as are commonly incident to such office, including without
limitation, the powers and duties enumerated in any bylaws established by the Committee, the power
and duty to preside at all meetings of the Committee, to prepare an agenda for all such meetings
(and for actions to be taken without a meeting), and such other powers and duties as the Committee
may from time to time designate. The Secretary shall keep a record of all meetings of the
Committee and actions taken by the Committee without a meeting.

     By vote of its members, the Committee may authorize any one or more of its members or the
Secretary to execute any document or documents on its behalf and to execute any instructions and
notices of the Administrator, including instructions and notices to the Trustee pursuant to the
Trust Agreement. Promptly after the meeting (or action without a meeting) at which one or more
persons are authorized to execute any such documents, instructions or notices to the Trustee, the
members of the Committee shall furnish the Trustee with a certificate signed by each such member
as to the designation of the person so authorized by the Administrator.

     11.5 Administrator to Keep Accurate Records. The Administrator shall keep accurate
records and minutes of its proceedings and actions with respect to the Plan. It shall also
maintain, or cause to be maintained, accounts showing the operation and condition of the Trust
Fund and shall keep, or cause to be kept, in convenient form such data as may be necessary for the
valuation of the assets and liabilities of the Plan. The Administrator shall prepare or cause to
be prepared and distributed to Employees and other individuals or filed with the appropriate
government agencies, as the case may be, all necessary descriptions, reports, information, and
data required pursuant to the Code, ERISA and any other applicable laws.

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     11.6 Reliance on Specialists. Neither any Company, its officers, directors or
employees, the Administrator nor the Trustee shall be responsible for any reports furnished by any
specialist retained or employed by the Administrator but they shall be entitled to rely thereon as
well as on certificates furnished by an accountant, and on all opinions of counsel. Each Company,
its officers, directors and employees, the Administrator and the Trustee shall be fully protected
with respect to any action taken or suffered by them in good faith in reliance upon such
specialist, accountant or counsel, and all actions taken or suffered in such reliance shall be
conclusive upon each of them and upon all Employees, Participants, Beneficiaries and any other
persons interested hereunder and under the Trust Agreement.

     11.7 Compensation; Liability. The Administrator shall be entitled to reimbursement
for its reasonable expenses incurred hereunder. Individuals serving as Administrator (or as a
member of a Committee designated as Administrator) who are also full-time Employees shall not be
compensated for their services as Administrator, save as their compensation as Employees may be
such compensation. Other individuals, firms or corporations serving as Administrator shall be
entitled to reasonable compensation for their services as such. The Company will indemnify the
Administrator (or any member of a Committee designated as Administrator) who is also a full-time
Employee against all liability occasioned by any act or omission to act, provided that the
Administrator (or the Committee and such member) act in good faith. The Company shall be entitled
to defend or maintain either in its own name or in the name of the Administrator or any member
thereof any suit or litigation arising hereunder with respect to the Administrator or any member
thereof, and may employ its own counsel for such purpose. Except as may be required by ERISA, no
bond or other security shall be required of the Administrator for the faithful performance of its
duties hereunder, and no member of the Committee shall incur any liability except for his own
willful misfeasance or default.

     11.8 Elections, Requests, and Designations. The Administrator may establish or
change a standard form of request for any election, request or designation which may be made by a
Participant or Beneficiary under this Plan, and any such election, request or designation shall be
valid only when made on such form (or such alternative form as is acceptable to the Administrator)
and filed with the Administrator or some other person or persons designated by the Administrator
for that purpose.

     11.9 Claims Procedure. Effective Prior to January 1, 2002. A Participant or
Beneficiary who asserts a right to any benefit under the Plan which he has not received (a
“Claimant”) must file a written claim with the Administrator. If the Administrator wholly or
partially denies a claim, it shall within ninety days of its receipt of the claim provide a
written notice of denial to the Claimant, setting forth:

     (i) specific reasons for the denial of the claim;

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

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     (iii) a description of any additional material or information necessary to
perfect the claim and an explanation of why such material or information is
necessary; and

     (iv) an explanation of the Plan’s claims review procedure.

     A Claimant whose application for benefits is denied, or who has received neither an
affirmative reply nor a notice of denial within ninety days after filing his claim, may request a
full and fair review of the decision denying the claim. The request must be made in writing to
the Administrator within sixty days after receipt of the notice of denial (or, if no notice of
denial is issued, within sixty days after the expiration of ninety days from the filing of the
claim). In connection with the review, the Claimant or his authorized representative may:

     (i) request a hearing by the Administrator upon written application to the
Administrator;

     (ii) review pertinent documents in the possession of the Administrator; or

     (iii) submit issues and comments in writing to the Administrator for review.

     A decision on review by the Administrator shall be made promptly, and not later than sixty
days after the receipt by the Administrator of a request for review, unless special circumstances
(such as the need to hold a hearing) require an extension of time for processing, in which case
the claimant will be so notified of the extension, and a decision shall be rendered as soon as
possible, and not later than 120 days after the receipt of the request for review. The decision
shall be in writing and shall include specific reasons for the decision written in a manner
calculated to be understood by the claimant and specific reference to the pertinent provisions of
the Plan on which the decision is based. The Administrator shall have discretionary authority to
interpret and apply the provisions of the Plan with respect to, and to make any factual
determination in connection with, any benefit claim, and the decision of the Administrator shall
be final and binding upon all parties.

     Effective as of January 1, 2002. (a) If a Participant or Beneficiary (a
“Claimant”) asserts a right to any benefit under the Plan that he has not received, he must
file a written claim for the benefit with the person or persons designated by the
Administrator (which must be a person or persons other than the Administrator). If the
claim is wholly or partially denied, written notice shall be provided to the Claimant within
a reasonable period of time, but no more than ninety days of the receipt of the written
claim application, and the notice shall state:

     (i) The specific reasons for the denial of the
claim;

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

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     (iii) A description of any additional material or information necessary to
perfect the claim and an explanation of why such material or information is
necessary; and

     (iv) An explanation of the Plan’s claims review procedure, including a
statement of the Claimant’s right to bring a civil action under Section 502(a) of
ERISA following an adverse benefit determination on review.

     (b) A Claimant whose application for benefits is denied may request a full and fair
review of the decision denying the claim within sixty days after receipt of the notice of
the denial. The Claimant:

     (i) May request a hearing by the Administrator upon written application to the
Administrator;

     (ii) Shall have reasonable access to, and copies of, upon request and free of
charge, all documents, records and other information relevant to the Claimant’s
claim; and

     (iii) May submit written comments, documents, records and other information
relating to the claim.

     (c) A decision on review shall take into account all comments, documents, records and
other information submitted by the Claimant relating to the claim, without regard to whether
such information was submitted or considered in the initial benefit determination. The
decision of the Administrator shall be made promptly and not later than sixty days after the
receipt by the Administrator of a request for review, unless special circumstances (such as
the need to hold a hearing) require an extension of time for processing, in which case the
Claimant will be so notified of the extension and the reason for the extension, and a
decision shall be rendered as soon as possible, and not later than 120 days after the
receipt of the request for review. If an extension is required due to a failure by the
Claimant to submit information necessary to decide a claim, the time period for completing
the review shall be tolled from the date on which notification of the extension is sent
until the date on which the Claimant responds to the request for additional information.

     The decision shall be in writing and shall include specific reasons for the decision
written in a manner calculated to be understood by the Claimant and specific reference to
the pertinent provisions of the Plan on which the decision is based. The decision shall
also include a statement that the Claimant is entitled to receive, upon request and free of
charge, reasonable access to, and copies of, all documents, records and other information
relevant to the Claimant’s claim, along with a statement of the Claimant’s right to bring a
civil action under Section 502(a) of ERISA following an adverse benefit determination on
review.

     (d) The Administrator shall have discretionary authority to interpret and apply the
provisions of the Plan with respect to, and to make any factual determination in connection
with, any benefit claim.

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ARTICLE 12

TRUSTEE

     12.1 Trust Agreement. The Trust Agreement is incorporated herein by this reference.

     12.2 Investment of Trust Fund. The Trustee shall invest the assets of the Trust Fund
in accordance with the provisions of the Trust Agreement and this Section 12.2:

     (a) The Trustee will invest Accounts in accordance with the Trust Agreement and the
following provisions of this Section 12.2. Pursuant to such rules as the Administrator may
establish, a Participant or Beneficiary may direct the Trustee to invest amounts contributed
for his Account in any one or more investment media approved or announced from time to time
in writing by the Administrator as being available under the Plan, including loans to
Participants as provided pursuant to Section 14.2. The Administrator may, in its
discretion, permit such elections to be in writing or by telephone with a representative or
a voice response unit or through the Internet or other electronic means subject to the
following rules and conditions:

     (i) The Administrator shall from time to time establish and announce in
writing reasonable rules and regulations concerning the number of investment media
into which a Participant or Beneficiary may direct that portions of any single
contribution be invested, the minimum dollar amount that may be invested in any
single medium, the intervals at which a Participant or Beneficiary may change his
investment directions as to future contributions, and the intervals at which a
Participant or Beneficiary may change his directions as to the future investment of
amounts then credited to his Account. Nothing herein shall be construed to require
the Trustee to carry out any direction which would result in a prohibited
transaction under Section 406 of ERISA or Section 4975 of the Code or would
generate income taxable to the Plan, and the Trustee may decline to carry out any
direction which could create a fiduciary liability for the Trustee which would not
otherwise exist.

     (ii) Subject to the rules announced in accordance with subsection (i), each
Participant’s or Beneficiary’s investment directions shall be completed and
transmitted to the Trustee before they are to become effective and shall thereafter
control the investment of his Account until he submits a subsequent direction. The
Trustee shall, upon his request, give a Participant or Beneficiary written
confirmation of his investment directions. Subject to the rules announced in
accordance with subsection (i), each Participant or Beneficiary may give investment
directions effective as of each April 1, July 1, October 1, and January 1.

     (iii) Amounts received by the Trustee for a Participant’s or Beneficiary’s
Account shall be invested as promptly as practicable after their receipt by the
Trustee in the medium directed by the Participant or Beneficiary.

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Any distribution thereon which is received in cash shall be applied as soon as
practicable to the purchase of additional interests in the directed medium. Any
distribution thereon which is received in any form of property other than
additional shares or other evidences of interest in the directed medium itself
shall be converted to cash as soon as practicable, and reinvested in additional
interests in the directed medium. Notwithstanding the preceding sentence, if for
any reason it proves impracticable in the opinion of the Trustee to convert any
such increment promptly into cash, then the Trustee may in its sole discretion
determine the method and time of sale, disposition, use, application or conversion
of the same, provided that Accounts are credited with their proportionate interests
therein as prescribed in Article 6.

     (iv) In the event that a Participant or Beneficiary fails to direct the
Trustee as to the investment of an amount to be credited to his Account, the
Trustee shall invest that amount in accordance with a standing direction from the
Participant or Beneficiary, or if there is no such standing direction, the Trustee
in its sole discretion shall determine the manner of its investment until the
Participant or Beneficiary provides proper direction.

     (v) The Trustee shall have no liability or responsibility for any loss or
expense to any Participant’s or Beneficiary’s Account(s) resulting from any
investment made in accordance with the directions of the Participant or
Beneficiary.

     (vi) Any income, gain, loss or expense realized by a Participant’s or
Beneficiary’s Account, and any brokerage commissions associated with a
Participant’s or Beneficiary’s Account shall be allocated to his Account and shall
not be shared by or allocated to any other Participant’s or Beneficiary’s Account.
The Plan may charge each Participant’s or Beneficiary’s Account with the reasonable
expenses of carrying out the Participant’s or Beneficiary’s directions.

     12.3 Life Insurance and Annuity Contracts. To the extent that a Predecessor Plan
permitted a Participant to direct the trustee of the Predecessor Plan to invest his Account in
life insurance and annuity contracts and where a Participant so directed the trustee of the
Predecessor Plan, the Trustee shall maintain said investment in the Plan. After December 31,
1996, a Participant may not direct the Trustee to invest his Account in life insurance and annuity
contracts.

     12.4 Trustee’s Accounts. The assets of the Trust Fund shall be valued at their fair
market value annually by the Trustee as of the last day of each Plan Year, and such other
Valuation Dates as may be designated by the Administrator, and the values reported to the Company
and the Administrator, together with a statement of receipts and disbursements for the preceding
Plan Year and such other information regarding the Trust Fund as the Company may request.

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     12.5 Trustee’s Records. The Trustee shall keep and maintain records under the
direction of the Administrator which shall accurately disclose at all times the state of the Trust
Fund.

     12.6 Trustee’s Liability. The Trustee shall not be responsible for the validity of
the Plan or Trust Agreement, nor for the adequacy of the Trust Fund to meet the obligations
hereunder, but shall be accountable only for funds paid to it under the Trust Agreement.

     12.7 Trustee’s Compensation and Expenses. The Trustee shall be entitled to
reimbursement for its reasonable expenses incurred hereunder. An individual serving as Trustee
who is also a full-time Employee of the Company shall not be compensated for his or her services
as Trustee, save as his or her compensation as an Employee may be such compensation. Other
individuals and any corporation or trust company serving as a Trustee shall be entitled to
compensation for its services in such amount as the Company and such Trustee may agree upon from
time to time. Such reimbursement or compensation due a Trustee, if not paid by the Company,
shall constitute a charge upon the Trust Fund.

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ARTICLE 13

AMENDMENT AND TERMINATION

     13.1 Right to Amend or Terminate. The Company reserves the right at any time and
from time to time to amend the Plan or the Trust, or terminate the Plan or the Trust, by execution
of an appropriate instrument by a duly authorized officer of the Company, which authorization may
be extended by ratification as well as by action in advance. The Company shall deliver to the
Trustee a copy of any such amendment or a notice of termination executed by an officer thereunto
duly authorized. The foregoing notwithstanding, the Company shall have no power to amend or
terminate the Plan or the Trust in such manner as would:

     (a) Increase the duties or liabilities of the Trustee without the written consent of
the Trustee;

     (b) Cause or permit any of the Trust assets to be diverted to purposes other than the
exclusive benefit of the Participants or their Beneficiaries and defraying the reasonable
expenses of administering the Plan and the Trust;

     (c) Cause any reduction in the amount theretofore credited to any Participant or
Beneficiary; or

     (d) Cause or permit any portion of the Trust assets to revert to or become the property
of the Company, except as provided in Section 1.2.

     13.2 Permanence of Plan. The Company has established the Plan with the bona fide
intention and expectation that the Company will be able to make contributions indefinitely, but
the Company is not and shall not be under any obligation or liability whatsoever to maintain the
Plan (or the Trust) for any given length of time and may in its sole and absolute discretion
terminate the Plan (or the Plan and Trust) or discontinue its contributions hereunder at any time
without any liability whatsoever for such termination or discontinuance.

     13.3 Termination of Plan or Plan and Trust. Unless the Plan and Trust be sooner
terminated pursuant to (a) or (b) below, the Plan and, if so directed by the Company, the Trust
shall terminate upon delivery to the Trustee of a notice of termination executed on behalf of the
Company specifying the date as of which the Plan (or the Plan and Trust) shall terminate. The
preceding sentence notwithstanding, both the Plan and the Trust shall automatically terminate upon
the happening of either of the following events:

     (a) adjudication of the Company as a bankrupt or general assignment by the Company to
or for the benefit of creditors; or

     (b) dissolution of the Company.

     In the event of the bankruptcy, liquidation or dissolution of the Company, the Plan shall be
deemed terminated.

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     13.4 Vesting on Termination or Partial Termination of Plan or Discontinuance of
Contributions. The Company shall notify the Trustee in writing if it shall permanently
discontinue contributions hereunder. Notwithstanding any other provisions of the Plan, if the
Plan is terminated or if the Company shall permanently discontinue contributions hereunder
(irrespective of whether the Trust shall be terminated), the interests of all Participants in the
Plan and Trust shall become fully vested and nonforfeitable as of the date of such termination or
such discontinuance. Upon the partial termination of the Plan with respect to a group of
Participants, Former Participants or Beneficiaries, the interests of all such Participants, Former
Participants or Beneficiaries in the Plan and Trust shall become fully vested and nonforfeitable
as of the date of such partial termination.

     13.5 Successor to Business of Company. Unless the Plan and Trust be sooner
terminated, a successor to the business of the Company, by whatever form or manner resulting, may
continue the Plan and Trust with respect to the successor entity by executing appropriate
supplementary instruments, and such successor shall thereupon succeed to all the rights, powers,
and duties of the Company hereunder. The employment of any Employee who has continued in the
employ of such successor shall not be deemed to have been terminated or severed for any purpose
hereunder if any such supplemental instrument so provides.

     13.6 Liquidation of Trust. In the event of the termination of the Plan or the
complete discontinuance of contributions by the Company, or in the event of the partial
termination of the Plan with respect to a group of Participants, the Administrator shall direct
the Trustee to:

     (a) reduce to cash such part or all of the Trust Fund as the Company may deem
appropriate;

     (b) pay the liabilities, if any, of the Trust;

     (c) value the remaining assets of the Trust as of the date of termination, partial
termination or discontinuance; and

     (d) allocate any previously unallocated assets and adjust the Account balances as
provided in Article 6.

In the event the Trust is also terminated, the Company shall also direct the Trustee to distribute
the assets of the Trust in cash or in kind or partly in cash and partly in kind in liquidation to
and among the persons having an interest in the Trust in proportion to the amounts standing to the
credit of their respective Accounts as of the termination date. If the Trust is not terminated,
the Company shall so notify the Trustee and the Trustee shall continue to administer the Trust
Fund as provided in this Plan and the Trust Agreement.

     13.7 Merger or Consolidation of Plan. In the case of any merger or consolidation of
the Plan with, or transfer of assets or liabilities of the Plan to, any other plan, the value of
the benefits to which each Participant or Beneficiary would become entitled if the resulting or
transferee plan were terminated immediately after such merger, consolidation or transfer must
equal or exceed the value of the benefits to which such Participant or Beneficiary would have been
entitled had the Plan been terminated immediately prior to such merger, consolidation or transfer
of assets.

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ARTICLE 14

SPENDTHRIFT PROVISION; LOANS

     14.1 Alienation Prohibited. The beneficial interest in the Trust of a Participant or
Beneficiary shall not be assignable or subject to attachment or receivership, nor shall it pass to
any trustee in bankruptcy or be reached or applied by any legal process for the payment of any
obligations of the Participant or Beneficiary; provided, however, that the rule just stated shall
not apply in the case of any Qualified Domestic Relations Order, nor to any loan pursuant to
Section 14.2 nor, effective for judgments, orders, and decrees issued and settlement agreements
entered into on or after August 5, 1997, to any offset of a Participant’s or Beneficiary’s
benefits provided under the Plan against an amount that such person is ordered or required to pay
the Plan if:

     (a) The order or requirement to pay arises:

     (i) under a judgment of conviction for a crime involving the Plan;

     (ii) under a civil judgment (including a consent order or decree) entered by a
court in an action brought in connection with a violation (or alleged violation) of
Part 4 of Subtitle B of Title I of ERISA; or

     (iii) pursuant to a settlement agreement between the Secretary of Labor and
such person in connection with a violation (or alleged violation) of Part 4 of
Subtitle B of Title I of ERISA by a fiduciary or any other person; and

     (b) The judgment, order, decree or settlement agreement expressly provides for the
offset of all or part of the amount ordered or required to be paid to the Plan against the
Participant’s or Beneficiary’s benefits provided under the Plan.

     14.2 Loans to Participants. Loans shall only be made to Participants who are
Employees of an Affiliated Company. Upon application of a Participant, the Administrator may, but
shall in no case be required to, direct the Trustee to make a loan from the Trust, in an amount
specified by the Administrator, to such Participant, subject to the following conditions:

     (a) Maximum Principal Amount. The maximum principal balance at any time
outstanding on a loan originated, when added to the principal balance of any loan to the
Participant then outstanding, shall not exceed the lesser of (i) $50,000, reduced by the
excess, if any, of the highest outstanding principal balance of loans from the Plan and from
all other qualified plans of the Affiliated Companies to the Participant during the period
of one year ending on the day preceding the origination of the loan under consideration,
over the outstanding principal balance of such loans on the day preceding the origination of
the loan under consideration, or (ii) the greater of $10,000 or fifty percent of the account
balance in which the Participant is vested.

     (b) Minimum Principal Amount. The minimum principal amount of any loan is
$1,000.

- 51 -

 

     (c) Duration. The repayment period of any loan shall be no less than six
months and no more than five years.

     (d) Promissory Note. Each loan shall be evidenced by such documentation as the
Administrator shall require.

     (e) Security. Each loan shall be secured by the assignment of fifty percent of
the Participant’s vested account balance.

     (f) Repayment Method. A loan to a Participant shall be repaid by substantially
level payroll deductions made in every pay period at least quarterly. A loan repayable by
payroll deductions may provide for a change in its terms in the event that the borrower
ceases to be paid by the Company.

     (g) Interest Rate. The loan shall bear interest at the prime rate most
recently published in the Wall Street Journal, plus two percent, or such other rate as
determined by the Administrator.

     (h) Plan Accounting. The distribution of the proceeds of a loan shall be
charged solely against the Account of the Participant, and all repayments of principal and
interest shall be credited solely to the Participant’s Account. The unpaid principal
balance of a loan shall be reflected as a receivable for the Participant’s Account. The
Participant must pay the administrative expenses incurred by the Trustee and the
Administrator in connection with a loan, in the amount of $50 or such other amount as
established by the Administrator, and any such expenses not paid directly by the Participant
may be charged against his Account.

     (i) Number of Loans Outstanding. A Participant shall have only one loan
outstanding at one time, and the Administrator shall not make a loan to a Participant until
a period of at least three months has passed from the time any previous loan was retired.

     (j) Death of Borrower. The death of the borrower shall terminate the loan.
The unpaid principal and interest due and owing on the date of the borrower’s death shall be
offset against the borrower’s Account. No payments shall be permitted after the borrower’s
death. The tax consequences of the offset shall be reported to the borrower’s estate and
not to the beneficiary of the Account.

     (k) Default. The Administrator shall promptly notify the Trustee of any
default in repayment of a loan. The Trustee shall foreclose on the security for a loan in
default at the later of the date of the default or the first date on which Article 10
permits a distribution to be made to the Participant. Foreclosure shall consist of the
distribution to the borrower of his promissory note. The Administrator and the trustee may
take this step without advance notice to the borrower.

     (l) Compliance with USERRA. Loan repayments will be suspended under the Plan
as permitted under Section 414(u)(4) of the Code. The provision shall be effective as of
the effective date of the Uniformed Services Employment and

- 52 -

 

Reemployment Rights Act of 1994, as amended from time to time, with respect to the
Plan.

     (m) Subject to the foregoing provisions of this Section 14.2, the Administrator shall
from time to time establish the terms and conditions on which loans will be made. However,
in making its determination with respect to eligibility for loans, the Administrator shall
adopt and follow uniform and nondiscriminatory rules so that loans are available to all
Participants on a reasonably equivalent basis. The Administrator’s determination in all
such matters shall be final and binding.

- 53 -

 

ARTICLE 15

SPECIAL TAX QUALIFICATION PROVISIONS

     15.1 Affiliated Companies. For all purposes of the Plan except for Section 6.4,
“Affiliated Companies” shall mean the Company and all corporations, partnerships, trades or
businesses (whether or not incorporated) which constitute a controlled group of corporations with
the Company, a group of trades or businesses under common control with the Company or an
affiliated service group, within the meaning of Section 414(b), Section 414(c), Section 414(m), or
Section 414(o) respectively, of the Code. For purposes of the limitation on contributions set
forth in Section 6.4, “Affiliated Companies” shall mean the Company and all corporations,
partnerships, trades or businesses (whether or not incorporated) which constitute a controlled
group of corporations with the Company or a group of trades or businesses under common control
with the Company, within the meaning of Section 414(b) or Section 414(c) of the Code, as modified
by Section 414(o) and Section 415(h) of the Code, or which constitute an affiliated service group
within the meaning of Section 414(m) of the Code.

     In furtherance and not in limitation of the other provisions of the Plan, for each Plan Year
in which the Company is one of the Affiliated Companies, all service of an Employee with any one
or more of the Affiliated Companies shall be treated as employment by the Company for purposes of
determining the Employee’s Hours of Service, eligibility to participate in the Plan, Years of
Service and limitations on contributions in Section 6.4. Service of an individual for an employer
which becomes an Affiliated Company during his employment shall be treated as employment by the
Company from and after the date on which such an employer becomes an Affiliated Company. The
transfer of employment by an Employee to another Affiliated Company shall not be a Retirement or
other termination of employment for purposes of the Plan; provided, however, that contributions
under the Plan relating to any such Employee shall be allocated to his Account only with respect
to his Compensation from the Company.

     An Affiliated Company may become a participating company in the Plan and Trust upon the
execution of a participation agreement by the Company and the Affiliated Company, in which case
the terms and conditions of the Plan relating to contributions and benefits shall apply to such a
participating company as though it were the Company, and to its employees as though they were
employees of the Company; provided, however, that all powers reserved to the Company in Articles
11, 12 and Section 13.1 of the Plan shall rest exclusively with the Company.

     15.2 Top-Heavy Plan Requirements. Notwithstanding any other provisions of the Plan,
the following provisions shall apply to any Plan Year for which the Plan is determined to be a
“top-heavy plan” within the meaning of Section 416 of the Code.

     (a) The Plan will be considered a top-heavy plan for the initial Plan Year if as of the
last day of such Plan Year, and for any subsequent Plan Year if as of the last day of the
preceding Plan Year (the “Determination Date”) (i) the total credit balance of the Accounts
of Participants who are “key employees” (as defined in Section 416(i)(1) of the Code)
exceeds sixty percent of the total credit balance of the Accounts of all Participants (the
“sixty percent test”) or (ii) the Plan is part of a “required aggregation group” (as

- 54 -

 

hereinafter defined) which is top-heavy. However, notwithstanding the results of the
sixty percent test, the Plan shall not be considered a top-heavy plan for any Plan Year in
which the Plan is part of any aggregation group (within the meaning of Section 416(g) of the
Code) which is not top-heavy.

     (b) An aggregation group is a group of tax qualified retirement plans maintained by any
Affiliated Company or Companies. A required aggregation group includes each such plan in
which a key employee participates, and each other plan which enables any plan in which a key
employee participates to meet the requirements of Section 401(a)(4) or Section 410 of the
Code. A permissive aggregation group includes the required aggregation group plus any other
plan or plans which, when considered with the required aggregation group, satisfy the
requirements of Section 401(a)(4) and Section 410 of the Code, and which the Administrator
has designated as a permissive aggregation group. All plans in any aggregation group must
have the same Determination Date. An aggregation group shall be considered top-heavy if,
treating all of the plans in the aggregation group as a single plan, the single plan would
be top-heavy under the sixty percent test.

     (c) For purposes of determining whether the Plan or any aggregation group is top-heavy
under the sixty percent test, the following rules shall apply: (1) the credit balance of
the Accounts of Participants shall be increased by the aggregate distributions made with
respect to any Participant during the five year period ending on the Determination Date, (2)
there shall not be taken into account the Account balance of any Participant who on the
Determination Date is not a key employee but who was a key employee in a prior Plan Year,
and (3) there shall not be taken into account the Account balance of any individual who has
not received within the five years preceding the Determination Date any compensation (other
than benefits under the Plan) from any Affiliated Company which has adopted the Plan within
the five years preceding the Determination Date.

     (d) Notwithstanding Section 6.2, the Company’s contribution, if any, shall be allocated
among the Accounts of Participants in a manner such that the Account (including the
Participant’s account in all other qualified retirement plans maintained by Affiliated
Companies) of each Participant who is a “non-key employee” (as defined in Section 416(i)(2)
of the Code) shall receive an amount equal to at least three percent of the Participant’s
Section 415 Compensation for such Plan Year (or, if less, the largest percentage of Section
415 Compensation provided on behalf of any Participant who is a key employee for that Plan
Year) or five percent of the non-key employee’s Section 415 Compensation for the Plan Year
in the event the non-key employee is a participant in both a defined benefit plan and a
defined contribution plan, and such minimum contribution shall be allocated to the Accounts
of each Participant for the year other than one who is no longer an Employee on the last day
of the year regardless of his or her Hours of Service within the year. All Deferral
Contributions shall be taken into account in satisfying the provisions of this subsection
(d).

     (e) If (1) the Plan would be considered a top-heavy plan if a “ninety percent test”
were utilized under subsection (a) above or (2) if Company contributions (together

- 55 -

 

with any available forfeiture amounts) do not produce an allocation to the Account of
each Participant who is a non-key employee equal in value to at least seven and one-half
percent of the Participant’s Compensation, then, in calculating the denominators of the
Defined Benefit Plan Fraction and the Defined Contribution Plan Fraction in accordance with
Section 6.4, the factor “1.0” shall be substituted for “1.25.”

     (f) The minimum benefit requirements of subsections (d) and (e) above shall be reduced
or offset, as determined by the Administrator in accordance with applicable regulations of
the Treasury Department, to the extent contributions or benefits otherwise meeting the
requirements of this Article 15 are accrued for a non-key employee under any one or more
other qualified plans maintained by the Affiliated Companies.

     15.3 Modification of Top-Heavy Rules.

     (a) Effective date. This section shall apply for purposes of determining whether the
Plan is a top-heavy plan under section 416(g) of the Code for plan years beginning after
December 31, 2001, and whether the Plan satisfies the minimum benefits requirements of
section 416(c) of the Code for such years. This section modifies Section 15.2 of the Plan.

	 	(b)	 	Determination of top-heavy status.
	 
	 	(i)	 	Key employee. Key employee means any employee or former
employee (including any deceased employee) who at any time during the Plan Year
that includes the determination date was an officer of the Firm having annual
compensation greater than $130,000 (as adjusted under section 416(i)(1) of the
Code for plan years beginning after December 31, 2002), a 5-percent owner of
the Firm, or a 1-percent owner of the Firm having annual compensation of more
than $150,000. For this purpose, annual compensation means compensation within
the meaning of section 415(c)(3) of the Code. The determination of who is a
key employee will be made in accordance with section 416(i)(1) of the Code and
the applicable regulations and other guidance of general applicability issued
thereunder.
	 
	 	(ii)	 	Determination of present values and amounts. This Section 15.3
shall apply for purposes of determining the present values of accrued benefits
and the amounts of account balances of employees as of the Determination Date.
	 
	 	(iii)	 	Distributions during year ending on the Determination Date. The
present values of accrued benefits and the amounts of account balances of an
Employee as of the Determination Date shall be increased by the distributions
made with respect to the Employee under the Plan and any plan aggregated with
the Plan under section 416(g)(2) of the Code during the one-year period ending
on the Determination Date. The preceding sentence shall also apply to
distributions under a terminated plan which,

- 56 -

 

	 	 	 	had it not been terminated, would have been aggregated with the Plan under
Section 416(g)(2)(A)(i) of the Code. In the case of a distribution made for
a reason other than separation from service, death, or disability, this
provision shall be applied by substituting “five-year period” for “one-year
period.”
	 
	 	(iv)	 	Employees not performing services during year ending on the
Determination Date. The accrued benefits and accounts for any individual who
has not performed services for the employer during the one-year period ending
on the Determination Date shall not be taken into account.
	 
	 	(c)	 	Minimum benefits.
	 
	 	(i)	 	Matching contributions. Employer matching contributions shall
be taken into account for purposes of satisfying the minimum contribution
requirements of Section 416(c)(2) of the Code and the Plan. The preceding
sentence shall apply with respect to matching contributions under the Plan or,
if the Plan provides that the minimum contribution requirement shall be met in
another plan, such other plan. Employer matching contributions that are used
to satisfy the minimum contribution requirements shall be treated as matching
contributions for purposes of the actual contribution percentage test and other
requirements of Section 401(m) of the Code.

- 57 -

 

ARTICLE 16

MISCELLANEOUS

     16.1 Rights of Employees. The adoption and maintenance of the Plan and Trust shall
not be deemed to be a contract between the Company and any Employee. Nothing herein contained
shall be deemed to give any Employee the right to be retained in the employ of the Company or to
diminish the right of the Company to discharge any Employee at any time, nor shall it be deemed to
give the Company the right to require any Employee to remain in its employ or interfere with the
Employee’s right to terminate his employment at any time.

     16.2 Obligation of the Company. All benefits payable under the Plan shall be paid or
provided for solely from the Trust, and neither the Company nor the Trustee assumes any personal
liability or responsibility therefor.

     16.3 Action by the Company. Whenever, under the terms of the Plan, the Company is
permitted or required to do or perform any act or thing, it shall be done or performed by an
officer thereunto duly authorized by the Company.

     16.4 Construction. The provisions of the Plan shall be construed, administered, and
enforced according to the laws of the United States of America insofar as they may be applicable,
and otherwise according to the laws of the State of New York. The masculine gender shall include
both sexes; the singular shall include the plural and the plural the singular, unless the context
otherwise requires. In any questions of interpretation or other matter of doubt, the Trustee,
Administrator, and the Company may rely upon the legal opinion of counsel for the Company or any
other attorney at law designated by the Company.

     16.5 Liability of Company. The only duty of the Company hereunder shall be to use
reasonable care in the selection of the Administrator and the Trustee. Subject to its agreement
to indemnify the Administrator as provided in Section 11.7 and the Trustee if and to the extent
provided in the Trust Agreement, neither the Company nor any person acting on its behalf shall be
liable for any act or omission on the part of the Trustee, or for any act performed or the failure
to perform any act by any person with respect to the Plan or the Trust.

     16.6 Titles. The titles of the Articles and Sections hereof are included for
convenience only and shall not be construed as part of the Plan or in any respect affecting or
modifying its provisions. Such words as “herein,” “hereinafter,” “hereof”, and “hereunder” refer
to this instrument as a whole and not merely to the subdivision in which said words appear.

     16.7 Counterparts. The Plan may be executed in any number of counterparts and each
fully executed counterpart shall be deemed an original.

     16.8 Expenses. All expenses incurred in establishing and operating the Plan,
including, without limiting the generality of the foregoing, legal fees, brokerage commissions,
administrative expenses, Trustee’s expenses, and the like, may be paid by the Company, but if not
so paid shall be paid by the Trustee from the Trust Fund.

- 58 -

 

ARTICLE 17

EFFECTIVE DATES

     The provisions of this restated and amended Plan are generally effective as of January 1,
1997, but any provision of this Plan that specifies a different effective date shall be effective
as of the specified date. Any event occurring before the effective date of the provision of this
Plan addressing such events shall be governed by the relevant provision of the relevant Plan as in
effect on the happening of the event in question.

* * * * * *

     IN WITNESS WHEREOF, ING [U.S.] Financial Services Corporation has caused this instrument,
including Schedules A and B hereto, to be duly executed in its name and behalf.

	 	 	 

	ING
[U.S.]FINANCIAL SERVICES
CORPORATION
	 
	 	 
	By:
	 	 
	 

	 	 
	Date: February 2002

- 59 -

 

SCHEDULE A

FORMER PARTICIPANTS IN THE ING [U.S.] SECURITIES,

FUTURES & OPTIONS, INC. PROFIT SHARING 401(k) PLAN AND THE BBL PLAN

     In accordance with Section 411(d)(6) of the Code and the regulations thereunder, a Participant
or Beneficiary who was formerly a Participant or the spouse of a Participant in the Securities Plan
on December 31, 1996 or in the BBL Plan on December 31, 1995, shall be entitled to a distribution
and shall be entitled to elect to receive a distribution of his or her Securities Plan Benefit
Account or BBL Plan Account in the following form in addition to any optional forms of benefit
available under the Plan:

     (a) Purchase from an insurance company of a nontransferable life annuity contract or
joint life and last survivor annuity contract and, in the case of a BBL Plan Account, a
contingent annuity or a single life annuity contract with 5, 10 or 15 years guaranteed.

     A Participant who elects to have his Securities Plan Benefit Account or BBL Plan
Account distributed in the form of a life annuity or joint and last survivor annuity, and
who is married on the Annuity Starting Date, shall receive benefits in the form of a
Qualified Joint and Survivor Annuity unless he and his spouse make a Qualified Election of
another form of benefit:

     (1) Qualified Election means a waiver of a Qualified Joint and Survivor
Annuity. Any such waiver shall not be effective unless: (i) the Participant’s
spouse consents in writing to the waiver; (ii) the waiver designates a specific
Beneficiary, including any class of beneficiaries or any contingent beneficiaries,
which may not be changed without spousal consent (unless the spouse’s consent
expressly permits designations by the Participant without any further spousal
consent); (iii) the spouse’s consent acknowledges the effect of the waiver; and (iv)
the spouse’s consent is witnessed by a Plan representative or notary public.
Additionally, a Participant’s waiver of the Qualified Joint and Survivor Annuity
shall not be effective unless the waiver designates a form of benefit payment which
may not be changed without spousal consent (unless the spouse’s consent expressly
permits designations by the Participant without any further spousal consent). If it
is established to the satisfaction of the Plan representative that there is no
spouse or that the spouse cannot be located, a waiver will be deemed a Qualified
Election. Any consent by a spouse obtained under these provisions (and any
establishment that the consent of a spouse may not be obtained) shall be effective
only with respect to the particular spouse involved. A consent that permits
designations by the Participant without any requirement of further consent by the
spouse must acknowledge that the spouse has the right to limit the consent to a
specific Beneficiary and a specific form of benefit where applicable, and that the
spouse voluntarily elects to relinquish either or both of those rights. A
revocation of a prior waiver may be made by a Participant without the consent of the
spouse at any time before the commencement of benefits. The number of revocations
shall not be limited. No

 

 

consent obtained under this provision shall be valid unless the Participant has
received notice as provided in Section (a)(4).

     (2) Qualified Joint and Survivor Annuity means an immediate annuity for
the life of a Participant, with a survivor annuity for the life of the spouse which
is at least fifty percent (e.g., 66 2/3%, 75%, 100%, etc.) of the amount of the
annuity which is payable during the joint lives of the Participant and the spouse,
and which is the amount of benefit that can be purchased with the Securities Plan
Benefit Account.

     (3) Annuity Starting Date means the first day of the first period for
which an amount is paid as an annuity (or any other form).

     (4) Notice Requirements. In the case of a Qualified Joint and Survivor
Annuity, no less than thirty days and no more than ninety days before a
Participant’s Annuity Starting Date the Administrator shall provide to him a written
explanation of (i) the terms and conditions of a Qualified Joint and Survivor
Annuity, (ii) the Participant’s right to make, and the effect of, an election to
waive the Qualified Joint and Survivor Annuity form of benefit, (iii) the rights of
the Participant’s spouse and (iv) the right to make, and the effect of, a revocation
of a previous election to waive the Qualified Joint and Survivor Annuity.

     (b) A distribution to which Sections 401(a)(11) and 417 of the Code do not apply may
commence less than thirty days after the notice required under Income Tax Regulations
Section 1.411(a)-11(c) is given, provided the Administrator informs the distributee that he
has a right to a period of at least thirty days after receiving the notice to consider
whether or not to elect a distribution and, if so, what form of distribution, and the
distributee thereafter affirmatively elects a distribution.

     (c) A distribution to which Sections 401(a)(11) and 417 of the Code do apply may
commence less than thirty days after the notices required under Sections 402(f), 411(a)(11)
and 417(a)(3) of the Code are given provided that: (i) the Administrator informs the
distributee that he has a right to a period of at least thirty days after receiving the
notices to consider whether or not to elect a distribution, and if applicable, the form of
distribution option; (ii) the distributee thereafter affirmatively elects a distribution;
(iii) the distributee is permitted to revoke an affirmative distribution election at any
time prior to the expiration of the seven day period that begins on the day after the
notices are provided to the distributee; and (iv) the distribution in fact does not commence
before the expiration of such period.

     (d) In any case in which a Participant’s consent to a distribution is required, the
failure to provide consent shall be treated as an election to defer distributions until such
time as distributions are required pursuant to Section 10.2 of this Plan.

- 2 -

 

     (e) All annuity contracts under this Plan shall be non-transferable when distributed.
Furthermore, the terms of any annuity contract purchased and distributed to a Participant or
spouse shall comply with all of the requirements of this Plan.

     (f) Subject to the spouse’s right of consent afforded under the Plan, the restrictions
imposed by this Schedule A shall not apply if a participant has, prior to January 1, 1984,
made a written designation to have his retirement benefit paid in an alternative method
acceptable under Code Section 401(a) as in effect prior to the enactment of the Tax Equity
and Fiscal Responsibility Act of 1982.

     (g) Unless otherwise elected as provided below, a Participant who dies before the
Annuity Starting Date and who has a surviving spouse shall have the Qualified Pre-Retirement
Survivor Annuity (“QPSA”) paid to his surviving spouse. The Participant’s spouse may direct
that payment of the QPSA commence within a reasonable period after the Participant’s death.
If the spouse does not so direct, payment of such benefit will commence at the time the
Participant would have attained the later of his Normal Retirement Age or age 62. However,
the spouse may elect a later commencement date.

     (1) Any election to waive the QPSA before the Participant’s death must be made
by the Participant in writing during the election period and shall require the
spouse’s irrevocable consent in the same manner provided for in Section (a)(1).
Further, the spouse’s consent must acknowledge the specific non-spouse Beneficiary.
Notwithstanding the foregoing, the non-spouse Beneficiary need not be acknowledged,
provided the consent of the spouse acknowledges that the spouse has the right to
limit consent only to a specific Beneficiary and that the spouse voluntarily elects
to relinquish such right.

     (2) The election period to waive the QPSA shall begin on the first day of the
Plan Year in which the Participant attains age 35 and end on the date of the
Participant’s death. An earlier waiver (with spousal consent) may be made provided
a written explanation of the QPSA is given to the Participant and such waiver
becomes invalid at the beginning of the Plan Year in which the Participant turns age
35. In the event a vested participant separates from service prior to the beginning
of the election period, the election period shall begin on the date of such
separation from service.

     (3) With regard to the election, the Administrator shall provide each
Participant within the applicable period, with respect to such Participant (and
consistent with Regulations), a written explanation of the QPSA containing
comparable information to that required pursuant to Section (a)(3). For the
purposes of this paragraph, the term “applicable period” means, with respect to a
Participant, whichever of the following periods ends last:

     (i) The period beginning with the first day of the Plan Year in which the
Participant attains age 32 and ending with the close of the Plan Year preceding the
Plan Year in which the Participant attains age 35;

- 3 -

 

     (ii) A reasonable period after the individual becomes a Participant. For this
purpose, in the case of an individual who becomes a Participant after age 32, the
explanation must be provided by the end of the three-year period beginning with the
first day of the first Plan Year for which the individual is a Participant;

     (iii) A reasonable period ending after the Plan no longer fully subsidizes the
cost of the QPSA with respect to the Participant;

     (iv) A reasonable period ending after Code Section 401(a)(11) applies to the
Participant; or

     (v) A reasonable period after separation from service in the case of a
Participant who separates before attaining age 35. For this purpose, the
Administrator must provide the explanation beginning one year before the separation
from service and ending one year after separation.

     (4) In the event there is an election to waive the QPSA, and for death benefits
in excess of QPSA, such death benefits shall be paid to the Participant’s
Beneficiary by either of the following methods, as elected by the Participant (or if
no election has been made prior to the Participant’s death by his Beneficiary):

     (i) One lump-sum payment in cash or in property;

     (ii) Payment in monthly, quarterly, semi-annual, or annual cash installments
over a period to be determined by the Participant or his Beneficiary. After
periodic installments commence, the Beneficiary shall have the right to reduce the
period over which such periodic installments shall be made, and the cash amount of
such periodic installments shall be adjusted accordingly.

     (iii) If death benefits in excess of the QPSA are to be paid to the surviving
spouse, such benefits may be paid pursuant to (i) or (ii) above, or used to purchase
an annuity contract or annuity settlement option so as to increase the payments made
pursuant to the QPSA.

     (5) In the event the death benefit is payable in installments, then, upon the
death of the Participant, the Administrator may direct that the death benefit be
segregated and applied to the purchase of an annuity or invested separately in a
segregated account, and that the funds accumulated in the annuity segregated account
be used for the payment of the installments.

- 4 -

 

SCHEDULE B

MERGER WITH PROFIT-SHARING PLAN OF FURMAN SELZ LLC

     1. Authorization of Transfer. Pre-Tax Contribution Accounts and Rollover
Contribution Accounts maintained in the Profit-Sharing Plan of Furman Selz LLC (the “Furman Selz
Plan”) shall be merged into the Plan as of January 4, 1999. All Profit-Sharing Contribution
Accounts of the Furman Selz Plan shall be merged into the Plan as of July 1, 1999. These mergers
shall be treated as transfers for purposes of Section 4.6, and except as set forth in this Schedule
B, the terms of the Plan shall supersede the terms of the Furman Selz Plan with respect to all
events occurring after January 4, 1999 with respect to Pre-Tax Contribution Accounts and Rollover
Accounts and occurring after July 1, 1999 with respect to Profit-Sharing Contribution Accounts.

     2. Furman Selz Accounts. The assets transferred shall be maintained in a Furman Selz
Plan Pre-Tax Contribution Account, the Furman Selz Plan Rollover Account and a Furman Selz Plan
Profit-Sharing Contribution Account, as the case may be. Each such account shall be maintained on
the books of the Plan for as long as the Administrator determines to be appropriate. Each account
will reflect the amount transferred to the Plan as well as any income, expenses, gains or losses
attributable thereto and any withdrawals or distributions therefrom.

     3. Vesting. The vested portion of a Participant’s Profit-Sharing Contribution
Account shall be the percentage shown in the vesting schedule set forth below (and not in the
vesting schedule set forth in Section 9.2), as determined in accordance with the Years of Service
rules set forth in Sections 3.8 and 9.3 of the Plan:

	 	 	 	 	 
	Years of Service	 	Vested Percentage
	Less than 2
	 	 	0	%
	2
	 	 	20	%
	3
	 	 	40	%
	4
	 	 	60	%
	5
	 	 	80	%
	6
	 	 	100	%

     4. Retirement. In the case of a Participant employed by ING Baring Furman Selz LLC
prior to January 1, 1999, including an individual originally hired prior to January 1, 1999 who is
rehired on or after January 1, 1999, the Normal Retirement Age shall be age 65.

     5. Distributions. The following provisions shall apply to any distribution from any
Furman Selz Plan Pre-Tax Contribution Account, Furman Selz Plan Profit-Sharing Contribution Account
or Furman Selz Plan Rollover Account and to any distribution of assets transferred and any income,
expenses, gains and losses attributable thereto and any withdrawals and distributions therefrom.

     A Participant or Beneficiary entitled to a distribution of assets transferred from the Furman
Selz Plan shall be entitled to elect to receive a distribution of assets transferred from the

 

 

Furman Selz Plan in any of the following forms, in addition to any optional forms of benefit
available under the Plan:

     (a) Series of substantially equal annual payments over a period not exceeding the life
expectancy of the Participant or Beneficiary or (if the Participant is the initial
recipient) the joint and last survivor life expectancy of the Participant and his
Beneficiary, (with a right in each case to elect as of any anniversary of the commencement
of such payments to receive as a single lump sum the remaining unpaid amount) and determined
in each case as of the earlier of (i) the end of the Plan Year in which occurs the event
entitling the Participant or Beneficiary to a distribution of benefits or (ii) the date
installments commence; or

     (b) Purchase from an insurance company of a nontransferrable life annuity contract or
joint life and last survivor annuity contract, provided, however, that this option shall be
available to a Beneficiary only if the Beneficiary is the deceased Participant’s spouse and
only with respect to the purchase of a single life annuity contract with 50% of the Furman
Selz Account Balance (as defined below).

     A Participant who elects to have Retirement benefits distributed in the form of a life annuity
or joint life and last survivor annuity pursuant to clause (b), and who is married on the Annuity
Starting Date, shall receive benefits in the form of a Qualified Joint and Survivor Annuity unless
he and his spouse make a Qualified Election of another form of benefit.

     (1) Qualified Election means a waiver of a Qualified Joint and Survivor
Annuity. Any such waiver shall not be effective unless: (i) the Participant’s
spouse consents in writing to the waiver; (ii) the waiver designates a specific
Beneficiary, including any class of beneficiaries or any contingent beneficiaries,
which may not be changed without spousal consent (unless the spouse’s consent
expressly permits designations by the Participant without any further spousal
consent); (iii) the spouse’s consent acknowledges the effect of the waiver; and (iv)
the spouse’s consent is witnessed by a Plan representative or notary public.
Additionally, a Participant’s waiver of the Qualified Joint and Survivor Annuity
shall not be effective unless the waiver designates a form of benefit payment which
may not be changed without spousal consent (unless the spouse’s consent expressly
permits designations by the Participant without any further spousal consent). If it
is established to the satisfaction of the Plan representative that there is no
spouse or that the spouse cannot be located, a waiver will be deemed a Qualified
Election. Any consent by a spouse obtained under these provisions (and any
establishment that the consent of a spouse may not be obtained) shall be effective
only with respect to the particular spouse involved. A consent that permits
designations by the Participant without any requirement of further consent by the
spouse must acknowledge that the spouse has the right to limit the consent to a
specific Beneficiary and a specific form of benefit where applicable, and that the
spouse voluntarily elects to relinquish either or both of those rights. A
revocation of a prior waiver may be made by a Participant without the consent of the
spouse at any time before the commencement of benefits. The number of revocations
shall not be limited. No

- 2 -

 

consent obtained under this provision shall be valid unless the Participant has
received notice as provided in Section (b)(5).

     (2) Qualified Joint and Survivor Annuity means an immediate annuity for
the life of a Participant, with a survivor annuity for the life of the spouse which
is fifty percent of the amount of the annuity which is payable during the joint
lives of the Participant and the spouse, and which is the amount of benefit that can
be purchased with the Participant’s Furman Selz Account Balance.

     (3) Annuity Starting Date means the first day of the first period for
which an amount is paid as an annuity (or any other form).

     (4) Furman Selz Account Balance means the aggregate value of the
Participant’s Furman Selz Pre-Tax Contribution Account, Furman Selz Plan
Profit-Sharing Contribution Account, and Furman Selz Rollover Account balances.

     (5) Notice Requirements. In the case of a Qualified Joint and Survivor
Annuity, no less than thirty days and no more than ninety days before a
Participant’s Annuity Starting Date the Administrator shall provide to him a written
explanation of (i) the terms and conditions of a Qualified Joint and Survivor
Annuity, (ii) the Participant’s right to make, and the effect of, an election to
waive the Qualified Joint and Survivor Annuity form of benefit, (iii) the rights of
the Participant’s spouse and (iv) the right to make, and the effect of, a revocation
of a previous election to waive the Qualified Joint and Survivor Annuity.

     (c) A distribution to which Sections 401(a)(11) and 417 of the Code do not apply may
commence less than thirty days after the notice required under Income Tax Regulations
Section 1.411(a)-11(c) is given, provided the Administrator informs the distributee that he
has a right to a period of at least thirty days after receiving the notice to consider
whether or not to elect a distribution and, if so, what form of distribution, and the
distributee thereafter affirmatively elects a distribution.

     (d) A distribution to which Sections 401(a)(11) and 417 of the Code do apply may
commence less than thirty days after the notices required under Sections 402(f), 411(a)(11)
and 417(a)(3) of the Code are given provided that: (i) the Administrator informs the
distributee that he has a right to a period of at least thirty days after receiving the
notices to consider whether or not to elect a distribution, and if applicable, the form of
distribution option; (ii) the distributee thereafter affirmatively elects a distribution;
(iii) the distributee is permitted to revoke an affirmative distribution election at any
time prior to the expiration of the seven day period that begins on the day after the
notices are provided to the distributee; and (iv) the distribution in fact does not commence
before the expiration of such period.

- 3 -

 

     (e) In any case in which a Participant’s consent to a distribution is required, the
failure to provide consent shall be treated as an election to defer distributions until such
time as distributions are required pursuant to Section 10.2 of this Plan.

     The provisions of this Section 3 of Schedule B are intended to preserve for Participants and
Beneficiaries entitled to distributions of Furman Selz Plan assets all of the optional forms of
benefit available to such Participants, and shall be construed and applied in a manner consistent
with such intention.

     6. Limitations on Rights. The provisions of this Schedule B shall apply only with
respect to assets transferred from the Furman Selz Plan, together with earnings thereon, and shall
in no event be considered to give any person any legal or equitable right with respect to assets of
the Plan other than those transferred from the Furman Selz Plan to this Plan pursuant to this
Schedule B.

- 4 -

 

ING [U.S.] FINANCIAL HOLDINGS CORPORATION

401(k) SAVINGS PLAN

 

2001 Restatement

 

 

 

ING [U.S.] FINANCIAL HOLDINGS CORPORATION

401(k)SAVINGS PLAN

 

2001 Restatement

 

Table of Contents

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	ARTICLE 1 TITLE AND PURPOSE
	 	 	2	 
	1.1 Title
	 	 	2	 
	1.2 Purpose; Exclusive Benefit
	 	 	2	 
	 
	 	 	 	 
	ARTICLE 2 DEFINITIONS
	 	 	3	 
	2.1 “Account”
	 	 	3	 
	2.2 “Administrator”
	 	 	3	 
	2.3 “Affiliated Companies”
	 	 	3	 
	2.4 “Annual Addition”
	 	 	3	 
	2.5 “Application”
	 	 	3	 
	2.6 “Average Contribution Percentage”
	 	 	3	 
	2.7 “Average Deferral Percentage”
	 	 	3	 
	2.8 “BBL Plan”
	 	 	3	 
	2.9 “Beneficiary”
	 	 	3	 
	2.10 “Claimant”
	 	 	3	 
	2.11 “Code”
	 	 	3	 
	2.12 “Company”
	 	 	3	 
	2.13 “Company Contributions Account”
	 	 	3	 
	2.14 “Compensation”
	 	 	4	 
	2.15 “Deferral Contribution”
	 	 	4	 
	2.16 “Deferral Contributions Account”
	 	 	4	 
	2.17 “Eligible Distribution”
	 	 	4	 
	2.18 “Eligible Plan”
	 	 	4	 
	2.19 “Eligible Recipient”
	 	 	4	 
	2.20 “Employee”
	 	 	4	 
	2.21 “Employment Commencement Date”
	 	 	4	 
	2.22 “Entry Date”
	 	 	5	 
	2.23 “ERISA”
	 	 	5	 
	2.24 “Excess Aggregate Contributions”
	 	 	5	 
	2.25 “Excess Contributions”
	 	 	5	 
	2.26 “Excess Deferral Amount”
	 	 	5	 
	2.27 “Fiscal Year”
	 	 	5	 
	2.28 “Highly Compensated Employee”
	 	 	5	 

 

 

Table of Contents
(continued)

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	2.29 “Hour of Service”
	 	 	6	 
	2.30 “Leased Employee”
	 	 	7	 
	2.31 “Leave of Absence”
	 	 	7	 
	2.32 “Non-Highly Compensated Employee”
	 	 	8	 
	2.33 “One-Year Break in Service”
	 	 	8	 
	2.34 “Participant”
	 	 	8	 
	2.35 “Plan”
	 	 	8	 
	2.36 “Plan Year”
	 	 	8	 
	2.37 “Predecessor Plan”
	 	 	8	 
	2.38 “Qualified Domestic Relations Order”
	 	 	8	 
	2.39 “Retirement”
	 	 	8	 
	2.40 “Rollover Account”
	 	 	8	 
	2.41 “Rollover Contribution”
	 	 	8	 
	2.42 “Securities Plan Benefits Account”
	 	 	9	 
	2.43 “Severance Date”
	 	 	9	 
	2.44 “Special Contribution”
	 	 	9	 
	2.45 “Tax-Qualified Retirement Plan”
	 	 	9	 
	2.46 “Transfer Contribution”
	 	 	9	 
	2.47 “Trust Agreement”
	 	 	9	 
	2.48 “Trust” and “Trust Fund”
	 	 	9	 
	2.49 “Trustee”
	 	 	9	 
	2.50 “Valuation Date”
	 	 	9	 
	2.51 “Year of Service”
	 	 	9	 
	 
	 	 	 	 
	ARTICLE 3 ELIGIBILITY TO PARTICIPATE
	 	 	10	 
	3.1 Initial Eligibility
	 	 	10	 
	3.2 Eligibility Following Interruption of Service
	 	 	10	 
	3.3 Determination and Notice of Eligibility by Administrator
	 	 	11	 
	3.4 Eligibility Classification
	 	 	11	 
	3.5 Determination of Eligibility by Plan Administrator
	 	 	11	 
	3.6 Exclusion of Certain Individuals
	 	 	11	 
	3.7 Application of USERRA
	 	 	11	 
	3.8 Participation in Plan by Employees of ING Baring Furman Selz LLC
	 	 	12	 
	3.9 Participation in the Plan by Former Employees of UBS A.G
	 	 	12	 
	3.10 Participation in Plan by Employees of BBL (USA) Holdings, Inc
	 	 	12	 
	3.11 Participation in Plan by Employees of ING Bank, N.V.
	 	 	12	 
	3.12 Participation in Plan by Employees of Pomona Capital Management LLC
	 	 	12	 
	3.13 Participation in the Plan by Employees of Aeltus Investment Management,Inc.
	 	 	13	 
	3.14 Erroneous Inclusion of Ineligible Employee
	 	 	13	 
	3.15 Erroneous Exclusion of Eligible Employee
	 	 	13	 
	 
	 	 	 	 
	ARTICLE 4 DEFERRAL CONTRIBUTIONS
	 	 	14	 

- ii -

 

Table of Contents
(continued)

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	4.1 Participants’ Deferral Contributions
	 	 	14	 
	4.2 Time and Manner of Deferral Contributions
	 	 	14	 
	4.3 Nondiscrimination Requirements for Deferral Contributions
	 	 	15	 
	4.4 Rollover Contributions
	 	 	16	 
	4.5 Catch-Up Contributions
	 	 	17	 
	4.6 Transfers from Qualified Plans
	 	 	17	 
	 
	 	 	 	 
	ARTICLE 5 CONTRIBUTIONS
	 	 	18	 
	5.1 Company’s Annual Contribution
	 	 	18	 
	5.2 Company Contributions
	 	 	18	 
	5.3 Payment of Company’s Contribution
	 	 	18	 
	5.4 Schedule
	 	 	19	 
	5.5 Correction of Errors
	 	 	19	 
	5.6 No Obligation of Trustee and Administrator
	 	 	19	 
	 
	 	 	 	 
	ARTICLE 6 ALLOCATION OF CONTRIBUTIONS AND TRUST EARNINGS
	 	 	20	 
	6.1 Accounts of Participants
	 	 	20	 
	6.2 Allocation of Company Contributions
	 	 	20	 
	6.3 Nondiscrimination Requirements for Company Contributions
	 	 	20	 
	6.4 Limitation on Participant Allocations
	 	 	22	 
	6.5 Net Value of the Trust
	 	 	24	 
	6.6 Adjustment of Accounts
	 	 	24	 
	6.7 Limitation of Participant’s Rights
	 	 	24	 
	6.8 Forfeiture Accounts
	 	 	24	 
	 
	 	 	 	 
	ARTICLE 7 RETIREMENT BENEFITS
	 	 	26	 
	7.1 Normal Retirement
	 	 	26	 
	7.2 Late Retirement
	 	 	26	 
	7.3 Early Retirement
	 	 	26	 
	7.4 Disability Retirement
	 	 	26	 
	7.5 Retirement Benefits
	 	 	26	 
	 
	 	 	 	 
	ARTICLE 8 DEATH BENEFITS
	 	 	27	 
	8.1 Death of a Participant
	 	 	27	 
	8.2 Designation of Beneficiary
	 	 	27	 
	8.3 Distribution in Case No Beneficiary Designated or Surviving
	 	 	27	 
	8.4 Death of a Beneficiary
	 	 	28	 
	 
	 	 	 	 
	ARTICLE 9 SEVERANCE BENEFITS
	 	 	29	 
	9.1 Severance Benefit
	 	 	29	 
	9.2 Vested Balance
	 	 	29	 
	9.3 Years of Service
	 	 	29	 

- iii -

 

Table of Contents
(continued)

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	9.4 Disposition of Forfeitures
	 	 	30	 
	9.5 Severance Benefits in Certain Cases
	 	 	31	 
	 
	 	 	 	 
	ARTICLE 10 DISTRIBUTION OF BENEFITS
	 	 	32	 
	10.1 Time and Manner of Distribution of Retirement and Severance Benefits
	 	 	32	 
	10.2 Minimum Distribution Requirements
	 	 	33	 
	10.3 Time and Manner of Distribution of Death Benefits
	 	 	34	 
	10.4 Elective Distribution after Attainment of Age 59-1/2
	 	 	34	 
	10.5 Notice of Death, Retirement or Termination of Service
	 	 	34	 
	10.6 Direct Rollover Distributions
	 	 	35	 
	10.7 Direct Rollover Distributions After 2001
	 	 	35	 
	10.8 Distribution under Qualified Domestic Relations Order
	 	 	36	 
	10.9 Hardship Distributions
	 	 	36	 
	10.10 Distribution of Excess Deferrals
	 	 	37	 
	10.11 Distribution of Excess Contributions
	 	 	38	 
	10.12 Distribution of Excess Aggregate Contributions
	 	 	38	 
	10.13 Withdrawals from Rollover and After-Tax Accounts and of Certain Matching Contributions
	 	 	39	 
	10.14 Distributions upon Plan Termination
	 	 	39	 
	10.15 Cessation of Interest
	 	 	39	 
	10.16 Missing Persons
	 	 	39	 
	10.17 Mailing of Benefits
	 	 	39	 
	10.18 Minors and Incompetents
	 	 	40	 
	 
	 	 	 	 
	ARTICLE 11 ADMINISTRATION OF THE PLAN
	 	 	41	 
	11.1 Appointment of Administrator
	 	 	41	 
	11.2 Powers and Duties of Administrator; Administrator Not to Act in Discriminatory Manner           
	 	 	41	 
	11.3 Notification of Trustee
	 	 	42	 
	11.4 Committee Procedures: Chairman and Secretary
	 	 	42	 
	11.5 Administrator to Keep Accurate Records
	 	 	42	 
	11.6 Reliance on Specialists
	 	 	43	 
	11.7 Compensation; Liability
	 	 	43	 
	11.8 Elections, Requests, and Designations
	 	 	43	 
	11.9 Claims Procedure
	 	 	43	 
	 
	 	 	 	 
	ARTICLE 12 TRUSTEE
	 	 	46	 
	12.1 Trust Agreement
	 	 	46	 
	12.2 Investment of Trust Fund
	 	 	46	 
	12.3 Life Insurance and Annuity Contracts
	 	 	47	 
	12.4 Trustee’s Accounts
	 	 	47	 
	12.5 Trustee’s Records
	 	 	48	 

- iv - 

 

Table of Contents
(continued)

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	12.6 Trustee’s Liability
	 	 	48	 
	12.7 Trustee’s Compensation and Expenses
	 	 	48	 
	 
	 	 	 	 
	ARTICLE 13 AMENDMENT AND TERMINATION
	 	 	49	 
	13.1 Right to Amend or Terminate
	 	 	49	 
	13.2 Permanence of Plan
	 	 	49	 
	13.3 Termination of Plan or Plan and Trust
	 	 	49	 
	13.4 Vesting on Termination or Partial Termination of Plan or Discontinuance of Contributions        
	 	 	50	 
	13.5 Successor to Business of Company
	 	 	50	 
	13.6 Liquidation of Trust
	 	 	50	 
	13.7 Merger or Consolidation of Plan
	 	 	50	 
	 
	 	 	 	 
	ARTICLE 14 SPENDTHRIFT PROVISION; LOANS
	 	 	51	 
	14.1 Alienation Prohibited
	 	 	51	 
	14.2 Loans to Participants
	 	 	51	 
	 
	 	 	 	 
	ARTICLE 15 SPECIAL TAX QUALIFICATION PROVISIONS
	 	 	54	 
	15.1 Affiliated Companies
	 	 	54	 
	15.2 Top-Heavy Plan Requirements
	 	 	54	 
	15.3 Modification of Top-Heavy Rules
	 	 	56	 
	 
	 	 	 	 
	ARTICLE 16 MISCELLANEOUS
	 	 	58	 
	16.1 Rights of Employees
	 	 	58	 
	16.2 Obligation of the Company
	 	 	58	 
	16.3 Action by the Company
	 	 	58	 
	16.4 Construction
	 	 	58	 
	16.5 Liability of Company
	 	 	58	 
	16.6 Titles
	 	 	58	 
	16.7 Counterparts
	 	 	58	 
	16.8 Expenses
	 	 	58	 
	 
	 	 	 	 
	ARTICLE 17 EFFECTIVE DATES
	 	 	59	 
	 
	 	 	 	 
	Schedule A
	 	 	 	 
	Schedule B
	 	 	 	 

- v - 

 

ING FINANCIAL SERVICES LLC

401(k) SAVINGS PLAN

 

FIRST AMENDMENT

2002

 

     ING Financial Services LLC, having reserved the power to amend the ING [U.S.] Financial
Holdings Corporation 401(k) Savings Plan (the “Plan”) in Section 13.1 of the Plan, hereby amends
the Plan as set forth below:

* * * * *

     1. Effective January 1, 2002, the name “ING Furman Selz LLC” in Section 2.12 shall be “ING
Investment Management LLC.”

* * * * *

     2. Effective December 1, 2002, the bracketed letters “[U.S.]” shall be removed wherever they
appear in the Plan, including the Plan’s name, the first paragraph of page one of the Plan, Section
1.1, Section 2.12 and Section 2.35, and the reference in Section 2.12 to ING [U.S.] Securities,
Futures & Options Incorporated shall be deleted.

* * * * *

     3. Effective January 1, 2003, the Plan’s name shall be changed to “ING Financial Services LLC
401(k) Savings Plan.”

* * * * *

     4. Effective January 1, 2003, Aeltus Investment Management, Inc. shall cease to be a
participating employer and the reference to it in Section 2.12 of the Plan shall be deleted.

* * * * *

     5. Section 10.2 of the Plan shall be amended by adding the following Section 10.2A to the end
thereof:

     10.2A Additional Minimum Distribution Rules.

	 	(a)	 	General Rules.

	 	(i)	 	Effective Date. The provisions of this Section 10.2A
will apply for purposes of determining required minimum distributions for
calendar years beginning with the 2003 calendar year.

 

 

	 	(ii)	 	Precedence. The requirements of this Section will take precedence
over any inconsistent provisions of the Plan.
	 
	 	(iii)	 	Requirements of Regulations Incorporated. All
distributions required under this Section will be determined and made in
accordance with the regulations under Section 401(a)(9) of the Code.

	 	(b)	 	Time and Manner of Distribution.

	 	(i)	 	Required Beginning Date. The Participant’s entire
interest will be distributed, or begin to be distributed, to the Participant no
later than the Participant’s required beginning date.
	 
	 	(ii)	 	Death of Participant Before Distributions Begin. If
the Participant dies before distributions begin, the Participant’s entire
interest will be distributed, or begin to be distributed, no later than as
follows:

	 	(A)	 	If the Participant’s surviving spouse is the
Participant’s sole designated beneficiary, then distributions to the
surviving spouse will begin by December 31 of the calendar year
immediately following the calendar year in which the Participant died,
or by December 31 of the calendar year in which the Participant would
have attained age 701/2, if later.
	 
	 	(B)	 	If the Participant’s surviving spouse is not
the Participant’s sole designated beneficiary, then distributions to
the designated beneficiary will begin by December 31 of the calendar
year immediately following the calendar year in which the Participant
died.
	 
	 	(C)	 	If there is no designated beneficiary as of
September 30 of the year following the year of the Participant’s death,
the Participant’s entire interest will be distributed by December 31 of
the calendar year containing the fifth anniversary of the Participant’s
death.
	 
	 	(D)	 	If the Participant’s surviving spouse is the
Participant’s sole designated beneficiary and the surviving spouse dies
after the Participant but before distributions to the surviving spouse
begin, this Section 10.2A(b), other than Section 10.2A(b)(i), will
apply as if the surviving spouse were the Participant.

	 	 	 	For purposes of this Section 10.2A(b) and Section 10.2A(d), unless Section
10.2A(b)(ii)(D) applies, distributions are considered to begin on the
Participant’s required beginning date. If Section 10.2A(b)(ii)(D)

- 2 -

 

	 	 	 	applies, distributions are considered to begin on the date distributions are
required to begin to the surviving spouse under Section 10.2A(b)(ii)(A).

	 	(iii)	 	Forms of Distribution. Unless the Participant’s
interest is distributed in a single sum on or before the required beginning
date, as of the first distribution calendar year distributions will be made in
accordance with Sections 10.2A(c) and 10.2A(d).

	 	(c)	 	Required Minimum Distributions During Participant’s Lifetime.

	 	(i)	 	Amount of Required Minimum Distribution For Each
Distribution Calendar Year. During the Participant’s lifetime, the minimum
amount that will be distributed for each distribution calendar year is the
lesser of:

	 	(A)	 	the quotient obtained by dividing the
Participant’s account balance by the distribution period in the Uniform
Lifetime Table set forth in Treas. Reg. § 1.401(a)(9)-9, using the
Participant’s age as of the Participant’s birthday in the distribution
calendar year; or
	 
	 	(B)	 	if the Participant’s sole designated
beneficiary for the distribution calendar year is the Participant’s
spouse, the quotient obtained by dividing the Participant’s account
balance by the number in the Joint and Last Survivor Table set forth in
Treas. Reg. § 1.401(a)(9)-9, using the Participant’s and spouse’s
attained ages as of the Participant’s and spouse’s birthdays in the
distribution calendar year.

	 	(ii)	 	Lifetime Required Minimum Distributions Continue Through
Year of Participant’s Death. Required minimum distributions will be
determined under this Section 10.2A(c) beginning with the first distribution
calendar year and up to and including the distribution calendar year that
includes the Participant’s date of death.

	 	(d)	 	Required Minimum Distributions After Participant’s Death.

	 	(i)	 	Death On or After Date Distributions Begin.

	 	(A)	 	Participant Survived by Designated
Beneficiary. If the Participant dies on or after the date
distributions begin and there is a designated beneficiary, the minimum
amount that will be distributed for each distribution calendar year
after the year of the Participant’s death is the quotient obtained by
dividing the

- 3 -

 

	 	 	 	Participant’s account balance by the longer of the remaining life
expectancy of the Participant or the remaining life expectancy of the
Participant’s designated beneficiary, determined as follows:

	 	(1)	 	The Participant’s remaining life
expectancy is calculated using the age of the Participant in the
year of death, reduced by one for each subsequent year.
	 
	 	(2)	 	If the Participant’s surviving
spouse is the Participant’s sole designated beneficiary, the
remaining life expectancy of the surviving spouse is calculated
for each distribution calendar year after the year of the
Participant’s death using the surviving spouse’s age as of the
spouse’s birthday in that year. For distribution calendar years
after the year of the surviving spouse’s death, the remaining
life expectancy of the surviving spouse is calculated using the
age of the surviving spouse as of the spouse’s birthday in the
calendar year of the spouse’s death, reduced by one for each
subsequent calendar year.
	 
	 	(3)	 	If the Participant’s surviving
spouse is not the Participant’s sole designated beneficiary, the
designated beneficiary’s remaining life expectancy is calculated
using the age of the beneficiary in the year following the year
of the Participant’s death, reduced by one for each subsequent
year.

	 	(B)	 	No Designated Beneficiary. If the
Participant dies on or after the date distributions begin and there is
no designated beneficiary as of September 30 of the year after the year
of the Participant’s death, the minimum amount that will be distributed
for each distribution calendar year after the year of the Participant’s
death is the quotient obtained by dividing the Participant’s account
balance by the Participant’s remaining life expectancy calculated using
the age of the Participant in the year of death, reduced by one for
each subsequent year.

	 	(ii)	 	Death Before Date Distributions Begin.

	 	(A)	 	Participant Survived by Designated
Beneficiary. If the Participant dies before the date distributions
begin and there is a designated beneficiary, the minimum amount that
will be distributed for each distribution calendar year after the year
of the Participant’s death is

- 4 -

 

	 	 	 	the quotient obtained by dividing the Participant’s account balance
by the remaining life expectancy of the Participant’s designated
beneficiary, determined as provided in Section 10.2A(d)(i).
	 
	 	(B)	 	No Designated Beneficiary. If the
Participant dies before the date distributions begin and there is no
designated beneficiary as of September 30 of the year following the
year of the Participant’s death, distribution of the Participant’s
entire interest will be completed by December 31 of the calendar year
containing the fifth anniversary of the Participant’s death.
	 
	 	(C)	 	Death of Surviving Spouse Before
Distributions to Surviving Spouse Are Required to Begin. If the
Participant dies before the date distributions begin, the Participant’s
surviving spouse is the Participant’s sole designated beneficiary, and
the surviving spouse dies before distributions are required to begin to
the surviving spouse under Section 10.2A(b)(ii)(A), this Section
10.2A(d) will apply as if the surviving spouse were the Participant.

	 	(e)	 	Definitions.

	 	(i)	 	Designated beneficiary. The individual who is
designated as the beneficiary under Article 8.2 of the Plan and is the
designated beneficiary under Section 401(a)(9) of the Code and Treas. Reg. §
1.401(a)(9)-1, Q&A-4.
	 
	 	(ii)	 	Distribution calendar year. A calendar year for which
a minimum distribution is required. For distributions beginning before the
Participant’s death, the first distribution calendar year is the calendar year
immediately preceding the calendar year which contains the Participant’s
required beginning date. For distributions beginning after the Participant’s
death, the first distribution calendar year is the calendar year in which
distributions are required to begin under Section 10.2A(b)(ii). The required
minimum distribution for the Participant’s first distribution calendar year
will be made on or before the Participant’s required beginning date. The
required minimum distribution for other distribution calendar years, including
the required minimum distribution for the distribution calendar year in which
the Participant’s required beginning date occurs, will be made on or before
December 31 of that distribution calendar year.
	 
	 	(iii)	 	Life expectancy. Life expectancy as computed by use
of the Single Life Table in Treas. Reg. § 1.401(a)(9)-9.

- 5 -

 

	 	(iv)	 	Participant’s account balance. The account balance as
of the last valuation date in the calendar year immediately preceding the
distribution calendar year (valuation calendar year) increased by the amount of
any contributions made and allocated or forfeitures allocated to the account
balance as of dates in the valuation calendar year after the valuation date and
decreased by distributions made in the valuation calendar year after the
valuation date. The account balance for the valuation calendar year includes
any amounts rolled over or transferred to the Plan either in the valuation
calendar year or in the distribution calendar year if distributed or
transferred in the valuation calendar year.
	 
	 	(v)	 	Required beginning date. The date specified in Section
10.2 of the Plan.

* * * * *

     6. Further Amendments. Except as hereinabove specifically amended, all provisions of
the Plan shall continue in full force and effect; provided, however, that the Company hereby
reserves the power from time to time to further amend the Plan.

* * * * *

     IN WITNESS WHEREOF, the Company has caused this First Amendment to be executed in its name and
on its behalf and its corporate seal to be affixed hereto by its officer thereunto duly authorized,
as of the 31st day of December, 2002.

	 	 	 	 	 
	 	ING FINANCIAL SERVICES LLC

 	 
	 	By:  	/s/
James M. Beach	 
	 	 	Name:  	James M. Beach 	 
	 	 	Title:  	Director, Human Resources &
Plan Administrator 	 
	 

- 6 -

 

ING FINANCIAL SERVICES LLC

401(k) SAVINGS PLAN

 

SECOND AMENDMENT

2003

 

     ING Financial Services LLC (the “Company”), having reserved the power to amend the ING
Financial Services LLC 401(k) Savings Plan (the “Plan”) in Section 13.1 of the Plan, hereby amends
the Plan as set forth below:

* * * * *

     1. Effective January 1, 2004, Section 3.1 of the Plan shall be amended by deleting the phrase
in the second sentence thereof “following the date which is six consecutive months.”

* * * * *

     2. Paragraph 1. of the First Amendment 2002 (changing the name of ING Furman Selz LLC) is
hereby revoked retroactively, having been unnecessary.

* * * * *

     3. The following is added at the end of Section 5 of Schedule B:

     Effective October 1, 2003, distributions shall be available only in a
lump sum and in substantially equal installments over five or ten years,
provided, however, that the above provisions of this Schedule B and all
other provisions of this Plan relating thereto, shall remain in effect with
respect to a Participant who reached his or her annuity starting date, or
who commenced distributions, prior to the date determined by the
Administrator to be ninety days after the distribution of a summary plan
description or summary of material modifications describing the change made
by this paragraph.

* * * * *

     4. Effective January 1, 2004, Section 2.12 shall be amended to read in its entirety as
follows:

     “Company” means ING Financial Services LLC.

* * * * *

 

 

     5. Further Amendments. Except as hereinabove specifically amended, all provisions of
the Plan shall continue in full force and effect; provided, however, that the Company hereby
reserves the power from time to time to further amend the Plan.

* * * * *

     IN WITNESS WHEREOF, the Company has caused this Second Amendment to be executed in its name
and on its behalf by its officer thereunto duly authorized, this
31st day
of December, 2004.

	 	 	 	 	 
	 	ING FINANCIAL SERVICES LLC

 	 
	 	By:  	/s/
Karen Morse	 
	 	 	Name:  	Karen Morse	 
	 	 	Title:  	Vice President, Employee Benefits	 

- 2 -

 

	 	 	 	 	 

ING FINANCIAL SERVICES LLC

401(k) SAVINGS PLAN

 

THIRD AMENDMENT

2004

 

     ING Financial Services LLC, having reserved the power to amend the ING [U.S.] Financial
Holdings Corporation 401(k) Savings Plan (the “Plan”) in Section 13.1 of the Plan, hereby amends
the Plan as set forth below:

* * * * *

     1. Effective January 1, 2005, Section 14.2(c) is hereby deleted in its entirety and replaced
with the following:

     (c) Duration. The repayment period of any loan shall be no less than six
months and no more than five years. Notwithstanding the foregoing, in the event a loan is
approved for the purchase of the Participant’s principal residence, the maximum repayment
period shall be ten years.

* * * * *

     2. Effective January 1, 2005, Section 14.2(i) is hereby deleted in its entirety and replaced
with the following:

     (i) Number of Loans Outstanding. A Participant shall have no more than two
loans outstanding at one time.

* * * * *

     IN WITNESS WHEREOF, the Company has caused this Third Amendment to be executed in its name and
on its behalf and its corporate seal to be affixed hereto by its officer thereunto duly authorized,
as of the
31st  day
of December, 2004.

	 	 	 	 	 
	 	ING FINANCIAL SERVICES LLC

 	 
	 	By:  	/s/
Karen Morse	 
	 	 	Name:  	Karen Morse	 
	 	 	Title:  	Vice President, Employee Benefits	 
	 

 

 

ING FINANCIAL SERVICES LLC

401(k) SAVINGS PLAN

 

FOURTH AMENDMENT

2005

 

     ING Financial Services LLC, having reserved the power to amend the ING Financial Services LLC
401(k) Savings Plan (the “Plan”) in Section 13.1 of the Plan, hereby amends the Plan as set forth
below:

* * * * *

     1. Effective January 1, 2005, The last sentence of Section 6.8 is hereby deleted in its
entirety and replaced with the following:

     “As of the end of the Plan Year in which the Forfeiture Account is forfeited in
accordance with Section 9.4, and after the adjustments described in Section 6.6, the amount
credited to a Forfeiture Account may be used as follows:

	 	(a)	 	to pay administrative expenses,
	 
	 	(b)	 	to restore contributions of returning Participants,
	 
	 	(c)	 	to make any positive adjustment of contributions and earnings
thereon determined by the Plan Administrator to be appropriate with respect to
a Participant’s Account, including without limitation, an adjustment pursuant
to Section 3.7, or
	 
	 	(d)	 	to reduce, but not below zero, the Company contributions
described in Section 5.2.”

* * * * *

     2. Effective March 28, 2005, Section 10.1(a) is hereby deleted in its entirety and replaced
with the following:

     “(a) As of the Valuation Date next preceding the distribution, the value of the
Participant’s Account did not exceed $1,000; or”

* * * * *

 

 

     3. Effective March 28, 2005, the following paragraph is hereby added to Section 10.1:

     “Notwithstanding any provisions of the Plan to the contrary, if the value of the
Participant’s Account does not exceed $5,000, distribution shall be made automatically in a
lump sum.”

* * * * *

     IN WITNESS WHEREOF, the Company has caused this Fourth Amendment to be executed in its name
and on its behalf and its corporate seal to be affixed hereto by its officer thereunto duly
authorized, as of the 15th day of April, 2005.

	 	 	 	 	 
	 	ING FINANCIAL SERVICES LLC

 	 
	 	By:  	/s/ Karen Morse	 
	 	 	Name:  	Karen Morse 	 
	 	 	Title:  	Director, Employee Benefits	 
	 

- 2 -

 

FIFTH AMENDMENT

TO THE

ING FINANCIAL SERVICES LLC

401(K) SAVINGS PLAN

FOR THE

FINAL 401(k)/401(m) REGULATIONS AMENDMENT

ARTICLE I

PREAMBLE

	1.1	 	Adoption and effective date of amendment. This Amendment to the Plan is adopted to
reflect certain provisions of the Final Regulations under Code Sections 401(k) and 401(m) that
were published on December 29, 2004 (hereinafter referred to as the “Final 401(k)
Regulations”). This Amendment is intended as good faith compliance with the requirements of
these provisions. This Amendment shall be effective with respect to Plan Years beginning after
December 31, 2005.
	 
	1.2	 	Supersession of inconsistent provisions. This Amendment shall supersede the
provisions of the Plan to the extent those provisions are inconsistent with the provisions of
this Amendment.
	 
	1.3	 	Application of provisions. Certain provisions of this Amendment relate to elective
deferrals of a 401(k) plan; if the Plan to which this Amendment relates is not a 401(k) plan,
then those provisions of this Amendment do not apply. Certain provisions of this Amendment
relate to matching contributions and /or after-tax employee contributions subject to Code
Section 401(m); if the Plan to which this Amendment relates is not subject to Code Section
401(m), then those provisions of this Amendment do not apply.

ARTICLE II

GENERAL RULES

	2.1	 	Deferral elections. A cash or deferred arrangement (“CODA”) is an arrangement under
which eligible Employees may make elective deferral elections. Such elections cannot relate to
compensation that is currently available prior to the adoption or effective date of the CODA.
In addition, except for occasional, bona fide administrative considerations, contributions
made pursuant to such an election cannot precede the earlier of (1) the performance of
services relating to the contribution and (2) when the compensation that is subject to the
election would be currently available to the Employee in the absence of an election to defer.
	 
	2.2	 	Vesting provisions. Elective Contributions are always fully vested and
nonforfeitable. The Plan shall disregard Elective Contributions in applying the vesting
provisions of the Plan to other contributions or benefits under Code Section 411(a)(2).
However, the Plan shall otherwise take a participant’s Elective Contributions into account in
determining the Participant’s vested benefits under the Plan. Thus, for example, the Plan
shall take Elective Contributions into account in determining whether a Participant has a
nonforfeitable right to contributions under the Plan for purposes of forfeitures, and for
applying provisions permitting the repayment of distributions to have forfeited amounts
restored, and the provisions of Code Sections 410(a)(5)(D)(iii) and 411(a)(6)(D)(iii)
permitting a plan to disregard certain service completed prior to breaks-in-service (sometimes
referred to as “the rule of parity”).

1

 

ARTICLE III

HARDSHIP DISTRIBUTIONS

	3.1	 	Applicability. The provisions of this Article III apply if the Plan provides for
hardship distributions upon satisfaction of the deemed immediate and heavy financial need
standards set forth in Regulation Section 1.401(k)-1(d)(2)(iv)(A) as in effect prior to the
issuance of the Final 401(k) Regulations.
	 
	3.2	 	Hardship events. A distribution under the Plan is hereby deemed to be on account of
an immediate and heavy financial need of an Employee if the distribution is for one of the
following or any other item permitted under Regulation Section 1.401(k)-1(d)(3)(iii)(B):

	 	(a)	 	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);
	 
	 	(b)	 	Costs directly related to the purchase of a principal residence for the
Employee (excluding mortgage payments);
	 
	 	(c)	 	Payment of tuition, related educational fees, and room and board expenses, for
up to the next twelve (12) months of post-secondary education for the Employee, the
Employee’s spouse, children, or dependents (as defined in Code Section 152, and, for
taxable years beginning on or after January 1, 2005, without regard to Code Section
152(b)(1), (b)(2), and (d)(1)(B));
	 
	 	(d)	 	Payments necessary to prevent the eviction of the Employee from the Employee’s
principal residence or foreclosure on the mortgage on that residence;
	 
	 	(e)	 	Payments for burial or funeral expenses for the Employee’s deceased parent,
spouse, children or dependents (as defined in Code Section 152, and, for taxable years
beginning on or after January 1, 2005, without regard to Code Section 152(d)(1)(B)); or
	 
	 	(f)	 	Expenses for the repair of damage to the Employee’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).

	3.3	 	Reduction of Code Section 402(g) limit following hardship distribution. If the Plan
provides for hardship distributions upon satisfaction of the safe harbor standards set forth
in Regulation Sections 1.401(k)-1(d)(3)(iii)(B) (deemed immediate and heavy financial need)
and 1.401(k)-1(d)(3)(iv)(E) (deemed necessary to satisfy immediate need), then there shall be
no reduction in the maximum amount of elective deferrals that a Participant may make pursuant
to Code Section 402(g) solely because of a hardship distribution made by this Plan or any
other plan of the Employer.

ARTICLE IV

ACTUAL DEFERRAL PERCENTAGE (ADP) TEST

	4.1	 	Targeted contribution limit. Qualified Nonelective Contributions (as defined in
Regulation Section 1.401(k)-6) cannot be taken into account in determining the Actual Deferral

2

 

	 	 	Ratio (ADR) for a Plan Year for a Non-Highly Compensated Employee (NHCE) to the extent such
contributions exceed the product of that NHCE’s Code Section 414(s) compensation and the
greater of five percent (5%) or two (2) times the Plan’s “representative contribution rate.”
Any Qualified Nonelective Contribution taken into account under an Actual Contribution
Percentage (ACP) test under Regulation Section 1.401(m)-2(a)(6) (including the determination
of the representative contribution rate for purposes of Regulation Section
1.401(m)-2(a)(6)(v)(B)), is not permitted to be taken into account for purposes of this
Section (including the determination of the “representative contribution rate” under this
Section). For purposes of this Section:

	 	(a)	 	The Plan’s “representative contribution rate” is the lowest “applicable
contribution rate” of any eligible NHCE among a group of eligible NHCEs that consists
of half of all eligible NHCEs for the Plan Year (or, if greater, the lowest “applicable
contribution rate” of any eligible NHCE who is in the group of all eligible NHCEs for
the Plan Year and who is employed by the Employer on the last day of the Plan Year),
and
	 
	 	(b)	 	The “applicable contribution rate” for an eligible NHCE is the sum of the
Qualified Matching Contributions (as defined in Regulation Section 1.401(k)-6) taken
into account in determining the ADR for the eligible NHCE for the Plan Year and the
Qualified Nonelective Contributions made for the eligible NHCE for the Plan Year,
divided by the eligible NHCE’s Code Section 414(s) compensation for the same period.

	 	 	Notwithstanding the above, Qualified Nonelective Contributions that are made in connection
with an Employer’s obligation to pay prevailing wages under the Davis-Bacon Act (46 Stat.
1494), Public Law 71-798, Service Contract Act of 1965 (79 Stat. 1965), Public Law 89-286,
or similar legislation can be taken into account for a Plan Year for an NHCE to the extent
such contributions do not exceed 10 percent (10%) of that NHCE’s Code Section 414(s)
compensation.
	 
	 	 	Qualified Matching Contributions may only be used to calculate an ADR to the extent that
such Qualified Matching Contributions are matching contributions that are not precluded from
being taken into account under the ACP test for the Plan Year under the rules of Regulation
Section 1.401(m)-2(a)(5)(ii) and as set forth in Section 6.1.
	 
	4.2	 	Limitation on QNECs and QMACs. Qualified Nonelective Contributions and Qualified
Matching Contributions cannot be taken into account to determine an ADR to the extent such
contributions are taken into account for purposes of satisfying any other ADP test, any ACP
test, or the requirements of Regulation Section 1.401(k)-3, 1.401(m)-3, or 1.401(k)-4. Thus,
for example, matching contributions that are made pursuant to Regulation Section 1.401(k)-3(c)
cannot be taken into account under the ADP test. Similarly, if a plan switches from the
current year testing method to the prior year testing method pursuant to Regulation Section
1.401(k)-2(c), Qualified Nonelective Contributions that are taken into account under the
current year testing method for a year may not be taken into account under the prior year
testing method for the next year.
	 
	4.3	 	ADR of HCE if multiple plans. The Actual Deferral Ratio (ADR) of any Participant who
is a Highly Compensated Employee (HCE) for the Plan Year and who is eligible to have Elective
Contributions (as defined in Regulation Section 1.401(k)-6) (and Qualified Nonelective
Contributions and/or Qualified Matching Contributions, if treated as Elective Contributions
for purposes of the ADP test) allocated to such Participant’s accounts under two (2) or more
cash or deferred arrangements described in Code Section 401(k), that are maintained by the
same Employer, shall be determined as if such Elective

3

 

	 	 	Contributions (and, if applicable, such Qualified Nonelective Contributions and/or Qualified
Matching Contributions) were made under a single arrangement. If an HCE participates in two
or more cash or deferred arrangements of the Employer that have different Plan Years, then
all Elective Contributions made during the Plan Year being tested under all such cash or
deferred arrangements shall be aggregated, without regard to the plan years of the other
plans. However, for Plan Years beginning before the effective date of this Amendment, if the
plans have different Plan Years, then all such cash or deferred arrangements ending with or
within the same calendar year shall be treated as a single cash or deferred arrangement.
Notwithstanding the foregoing, certain plans shall be treated as separate if mandatorily
disaggregated under the Regulations of Code Section 401(k).

	4.4	 	Plans using different testing methods for the ADP and ACP test. Except as otherwise
provided in this Section, the Plan may use the current year testing method or prior year
testing method for the ADP test for a Plan Year without regard to whether the current year
testing method or prior year testing method is used for the ACP test for that Plan Year.
However, if different testing methods are used, then the Plan cannot use:

	 	(a)	 	The recharacterization method of Regulation Section 1.401(k)-2(b)(3) to correct
excess contributions for a Plan Year;
	 
	 	(b)	 	The rules of Regulation Section 1.401(m)-2(a)(6)(ii) to take Elective
Contributions into account under the ACP test (rather than the ADP test); or
	 
	 	(c)	 	The rules of Regulation Section 1.401(k)-2(a)(6)(v) to take Qualified Matching
Contributions into account under the ADP test (rather than the ACP test).

ARTICLE V

ADJUSTMENT TO ADP TEST

	5.1	 	Distribution of Income attributable to Excess Contributions. Distributions of Excess
Contributions must be adjusted for income (gain or loss), including an adjustment for income
for the period between the end of the Plan Year and the date of the distribution (the “gap
period”). The Administrator has the discretion to determine and allocate income using any of
the methods set forth below:

	 	(a)	 	Reasonable method of allocating income. The Administrator may use any
reasonable method for computing the income allocable to Excess Contributions, provided
that the method does not violate Code Section 401(a)(4), is used consistently for all
Participants and for all corrective distributions under the Plan for the Plan Year, and
is used by the Plan for allocating income to Participant’s accounts. A Plan will not
fail to use a reasonable method for computing the income allocable to Excess
Contributions merely because the income allocable to Excess Contributions is determined
on a date that is no more than seven (7) days before the distribution.
	 
	 	(b)	 	Alternative method of allocating income. The Administrator may allocate
income to Excess Contributions for the Plan Year by multiplying the income for the Plan
Year allocable to the Elective Contributions and other amounts taken into account under
the ADP test (including contributions made for the Plan Year), by a fraction, the
numerator of which is the Excess Contributions for the Employee for the Plan Year, and
the denominator of which is the sum of the:

4

 

	 	(1)	 	Account balance attributable to Elective Contributions and
other amounts taken into account under the ADP test as of the beginning of the
Plan Year, and
	 
	 	(2)	 	Any additional amount of such contributions made for the Plan
Year.

	 	(c)	 	Safe harbor method of allocating gap period income. The Administrator
may use the safe harbor method in this paragraph to determine income on Excess
Contributions for the gap period. Under this safe harbor method, income on Excess
Contributions for the gap period is equal to ten percent (10%) of the income allocable
to Excess Contributions for the Plan Year that would be determined under paragraph (b)
above, multiplied by the number of calendar months that have elapsed since the end of
the Plan Year. For purposes of calculating the number of calendar months that have
elapsed under the safe harbor method, a corrective distribution that is made on or
before the fifteenth (15th) day of a month is treated as made on the last day of the
preceding month and a distribution made after the fifteenth day of a month is treated
as made on the last day of the month.
	 
	 	(d)	 	Alternative method for allocating Plan Year and gap period income. The
Administrator may determine the income for the aggregate of the Plan Year and the gap
period, by applying the alternative method provided by paragraph (b) above to this
aggregate period. This is accomplished by (1) substituting the income for the Plan Year
and the gap period, for the income for the Plan Year, and (2) substituting the amounts
taken into account under the ADP test for the Plan Year and the gap period, for the
amounts taken into account under the ADP test for the Plan Year in determining the
fraction that is multiplied by that income.

	5.2	 	Corrective contributions. If a failed ADP test is to be corrected by making an
Employer contribution, then the provisions of the Plan for the corrective contributions shall
be applied by limiting the contribution made on behalf of any NHCE pursuant to such provisions
to an amount that does not exceed the targeted contribution limits of Section 4.1 of this
Amendment, or in the case of a corrective contribution that is a Qualified Matching
Contribution, the targeted contribution limit of Section 6.1 of this Amendment.

ARTICLE VI

ACTUAL CONTRIBUTION PERCENTAGE (ACP) TEST

	6.1	 	Targeted matching contribution limit. A matching contribution with respect to an
Elective Contribution for a Plan Year is not taken into account under the Actual Contribution
Percentage (ACP) test for an NHCE to the extent it exceeds the greatest of:

	 	(a)	 	five percent (5%) of the NHCE’s Code Section 414(s) compensation for the Plan
Year;
	 
	 	(b)	 	the NHCE’s Elective Contributions for the Plan Year; and
	 
	 	(c)	 	the product of two (2) times the Plan’s “representative matching rate” and the
NHCE’s Elective Contributions for the Plan Year.

	 	 	For purposes of this Section, the Plan’s “representative matching rate” is the lowest
“matching rate” for any eligible NHCE among a group of NHCEs that consists of half of

5

 

	 	 	all eligible NHCEs in the Plan for the Plan Year who make Elective Contributions for the
Plan Year (or, if greater, the lowest “matching rate” for all eligible NHCEs in the Plan who
are employed by the Employer on the last day of the Plan Year and who make Elective
Contributions for the Plan Year).

	 	 	For purposes of this Section, the “matching rate” for an Employee generally is the matching
contributions made for such Employee divided by the Employee’s Elective Contributions for
the Plan Year. If the matching rate is not the same for all levels of Elective Contributions
for an Employee, then the Employee’s “matching rate” is determined assuming that an
Employee’s Elective Contributions are equal to six percent (6%) of Code Section 414(s)
compensation.
	 
	6.2	 	Targeted QNEC limit. Qualified Nonelective Contributions (as defined in Regulation
Section 1.401(k)-6) cannot be taken into account under the Actual Contribution Percentage
(ACP) test for a Plan Year for an NHCE to the extent such contributions exceed the product of
that NHCE’s Code Section 414(s) compensation and the greater of five percent (5%) or two (2)
times the Plan’s “representative contribution rate.” Any Qualified Nonelective Contribution
taken into account under an Actual Deferral Percentage (ADP) test under Regulation Section
1.401(k)-2(a)(6) (including the determination of the “representative contribution rate” for
purposes of Regulation Section 1.401(k)-2(a)(6)(iv)(B)) is not permitted to be taken into
account for purposes of this Section (including the determination of the “representative
contribution rate” for purposes of subsection (a) below). For purposes of this Section:

	 	(a)	 	The Plan’s “representative contribution rate” is the lowest “applicable
contribution rate” of any eligible NHCE among a group of eligible NHCEs that consists
of half of all eligible NHCEs for the Plan Year (or, if greater, the lowest “applicable
contribution rate” of any eligible NHCE who is in the group of all eligible NHCEs for
the Plan Year and who is employed by the Employer on the last day of the Plan Year),
and
	 
	 	(b)	 	The “applicable contribution rate” for an eligible NHCE is the sum of the
matching contributions (as defined in Regulation Section 1.401(m)-1(a)(2)) taken into
account in determining the ACR for the eligible NHCE for the Plan Year and the
Qualified Nonelective Contributions made for that NHCE for the Plan Year, divided by
that NHCE’s Code Section 414(s) compensation for the Plan Year.

	 	 	Notwithstanding the above, Qualified Nonelective Contributions that are made in connection
with an Employer’s obligation to pay prevailing wages under the Davis-Bacon Act (46 Stat.
1494), Public Law 71-798, Service Contract Act of 1965 (79 Stat. 1965), Public Law 89-286,
or similar legislation can be taken into account for a Plan Year for an NHCE to the extent
such contributions do not exceed 10 percent (10%) of that NHCE’s Code Section 414(s)
compensation.
	 
	6.3	 	ACR of HCE if multiple plans. The Actual Contribution Ratio (ACR) for any Participant
who is a Highly Compensated Employee (HCE) and who is eligible to have matching contributions
or after-tax Employee contributions allocated to his or her account under two (2) or more
plans described in Code Section 401(a), or arrangements described in Code Section 401(k) that
are maintained by the same Employer, shall be determined as if the total of such contributions
was made under each plan and arrangement. If an HCE participates in two (2) or more such plans
or arrangements that have different plan years, then all matching contributions and after-tax
Employee contributions made during the Plan Year being tested under all such plans and
arrangements shall be aggregated, without regard to the plan years of the other plans. For
plan years beginning before the

6

 

	 	 	effective date of this Amendment, all such plans and arrangements ending with or within the
same calendar year shall be treated as a single plan or arrangement. Notwithstanding the
foregoing, certain plans shall be treated as separate if mandatorily disaggregated under the
Regulations of Code Section 401(m).

	6.4	 	Plans using different testing methods for the ACP and ADP test. Except as otherwise
provided in this Section, the Plan may use the current year testing method or prior year
testing method for the ACP test for a Plan Year without regard to whether the current year
testing method or prior year testing method is used for the ADP test for that Plan Year.
However, if different testing methods are used, then the Plan cannot use:

	 	(a)	 	The recharacterization method of Regulation Section 1.401(k)-2(b)(3) to correct
excess contributions for a Plan Year;
	 
	 	(b)	 	The rules of Regulation Section 1.401(m)-2(a)(6)(ii) to take Elective
Contributions into account under the ACP test (rather than the ADP test); or
	 
	 	(c)	 	The rules of Regulation Section 1.401(k)-2(a)(6) to take Qualified Matching
Contributions into account under the ADP test (rather than the ACP test).

ARTICLE VII

ADJUSTMENT TO ACP TEST

	7.1	 	Distribution of Income attributable to Excess Aggregate Contributions. Distributions
of Excess Aggregate Contributions must be adjusted for income (gain or loss), including an
adjustment for income for the period between the end of the Plan Year and the date of the
distribution (the “gap period”). For the purpose of this Section, “income” shall be determined
and allocated in accordance with the provisions of Section 5.1 of this Amendment, except that
such Section shall be applied by substituting “Excess Contributions” with “Excess Aggregate
Contributions” and by substituting amounts taken into account under the ACP test for amounts
taken into account under the ADP test.
	 
	7.2	 	Corrective contributions. If a failed ACP test is to be corrected by making an
Employer contribution, then the provisions of the Plan for the corrective contributions shall
be applied by limiting the contribution made on behalf of any NHCE pursuant to such provisions
to an amount that does not exceed the targeted contribution limits of Sections 6.1 and 6.2 of
this Amendment.

     IN WITNESS WHEREOF, the Company has caused this Fifth Amendment to be executed in its name and
on its behalf and its corporate seal to be affixed hereto by its officer thereunto duly authorized,
as of the 15th day of March, 2006.

	 	 	 	 	 
	 	ING FINANCIAL SERVICES LLC

 	 
	 	By:  	/s/ Karen Morse	 
	 	 	Name:  	Karen Morse	 
	 	 	Title:  	Director, Employee Benefits	 
	 

7

 

Final
401(k) Amendment

ING Financial Services, LLC

EIN: 13-2946164

Plan Number: 002

SUMMARY OF MATERIAL MODIFICATION TO THE

ING FINANCIAL SERVICES LLC

401(k) SAVINGS PLAN

SUMMARY PLAN DESCRIPTION

	(1)	 	General. This is a Summary of Material Modifications regarding the ING Financial Services LLC
401(k) Savings Plan (“Plan”). This Summary of Material Modifications supplements the Summary
Plan Description (“SPD”) previously provided to you. You should retain this document with your
copy of the SPD.
	 
	(2)	 	Summary Description of Modification. Below is a summary of the modification made to our Plan.
	 
	 	 	Hardship Distributions
	 
	 	 	The IRS issued regulations regarding the events that can qualify for a hardship distribution
from our Plan. The list of permissible events now includes the following (the last two are
the new events under the regulations):

	 	•	 	Expenses for medical care (described in Section 213(d) of the Internal Revenue
Code) previously incurred by you, your spouse or your dependent or necessary for
you, your spouse or your dependent to obtain medical care;
	 
	 	•	 	Costs directly related to the purchase of your principal residence (excluding
mortgage payments);
	 
	 	•	 	Tuition, related educational fees, and room and board expenses for the next
twelve (12) months of post-secondary education for yourself, your spouse or
dependent;
	 
	 	•	 	Amounts necessary to prevent your eviction from your principal residence or
foreclosure on the mortgage of your principal residence;

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Final
401(k) Amendment

	 	•	 	Payments for burial or funeral expenses for your deceased parent, spouse,
children or other dependents; or
	 
	 	•	 	Expenses for the repair of damage to your principal residence that would qualify
for the casualty deduction under the Internal Revenue Code.

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SIXTH AMENDMENT

TO THE

ING FINANCIAL SERVICES LLC

401(k) SAVINGS PLAN

ROTH ELECTIVE DEFERRALS

SECTION 1

PREAMBLE

	1.1	 	Adoption and effective date. This Amendment to the ING Financial Services LLC 401(k)
Savings Plan is adopted to reflect Code Section 402A, as enacted by the Economic Growth and
Tax Relief Reconciliation Act of 2001. It is intended as good faith compliance with the
requirements of Code Section 402A. This Article shall be effective as of January 1, 2008.
	 
	1.2	 	Supersession of inconsistent provisions. The provisions of this Article shall
supersede the provisions of the Plan to the extent those provisions are inconsistent with the
provisions of this Article.
	 
	1.3	 	As of the effective, date the Plan will accept Roth Elective Deferrals made on behalf of
Participants. A Participant’s Roth Elective Deferrals will be allocated to a separate Account
maintained for such deferrals as described in Section 2, hereinafter called the Roth Elective
Deferral Account.
	 
	1.4	 	Unless specifically stated otherwise, Roth Elective Deferrals will be treated as Elective
Deferral Contributions for all purposes under the Plan.

SECTION 2

SEPARATE ACCOUNTING

	2.1	 	Contributions and withdrawals of Roth Elective Deferrals will be credited and debited to the
Roth Elective Deferral Account for each Participant.
	 
	2.2	 	The Plan will maintain a record of the amount of Roth Elective Deferrals in each
Participant’s Roth Elective Deferral Account.
	 
	2.3	 	Gains, losses and other credits or charges must be separately allocated on a reasonable and
consistent basis to each Participant’s Roth Elective Deferral Account and the Participant’s
other Accounts under the Plan.
	 
	2.4	 	No contributions other than Roth Elective Deferrals and properly attributable earnings will
be credited to each Participant’s Roth Elective Deferral Account.

SECTION 3

DIRECT ROLLOVERS

	3.1	 	Notwithstanding any provisions of the Plan to the contrary, a direct rollover of a
distribution from a Roth Elective Deferral Account under the Plan will only be made to another
Roth elective deferral account under an applicable retirement plan described in

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	 	 	Code Section 402A(e)(1) or a Roth IRA described in Code Section 408A, and only to the extent
the rollover is permitted under the rules of Code Section 402(c).
	 
	3.2	 	Notwithstanding any provisions of the Plan to the contrary, the Plan will accept a rollover
contribution to a Roth Elective Deferral Account only if it is a direct rollover from another
Roth elective deferral account under an applicable retirement plan described in Code Section
402A(e)(1) and only to the extent the rollover is permitted under the rules of Code Section
402(c).
	 
	3.3	 	The Plan will not provide for a direct rollover for distributions from a Participant’s Roth
Elective Deferral Account if the amount of the distributions that are eligible rollover
distributions are reasonably expected to total less than $200 during a year. In addition, any
distribution from a Participant’s Roth Elective Deferral Account is not taken into account in
determining whether distributions from a Participant’s other Accounts are reasonable expected
to total less than $200 during a year. However, eligible rollover distributions from a
Participant’s Roth Elective Deferral Account are taken into account in determining whether the
total amount of the Participant’s Account balance under the Plan exceeds $1,000 for purposes
of Section 10.1.
	 
	3.4	 	The provisions of the Plan that allow a Participant to elect a direct rollover of only a
portion of an eligible rollover distribution but only if the amount rolled over is at least
$500 is applied by treating any amount distributed from the Participant’s Roth Elective
Deferral Account as a separate distribution from any amount distributed from the Participant’s
other Accounts in the Plan, even if the amounts are distributed at the same time.

SECTION 4

CORRECTION OF EXCESS CONTRIBUTIONS

	4.1	 	In the case of a distribution of excess contributions in accordance with Section 4.01, a
Highly Compensated Employee may designate the extent to which the excess amount is composed of
before tax Elective Deferral Contributions and Roth Elective Deferrals but only to the extent
such types of deferrals were made for the year.
	 
	4.2	 	If the Highly Compensated Employee does not designate which type of elective deferrals are to
be distributed, the Plan will distribute before tax Elective Deferral Contributions first.

SECTION 5

DEFINITION

	5.1	 	Roth Elective Deferrals
	 
	 	 	A Roth Elective Deferral is an elective deferral that is

	 	(a)	 	designated irrevocably by the Participant at the time of the cash or deferred
election as a Roth Elective Deferral that is being made in lieu of all or a portion of
the before tax Elective Deferral Contribution the Participant is otherwise eligible to
make under the terms of the Plan; and

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	 	(b)	 	treated by the Company as includible in the Participant’s income at the time
the Participant would have received that amount in cash if the Participant had not made
a cash or deferred election.

     IN WITNESS WHEREOF, the Company has caused this Fifth Amendment to be executed in its name and
on its behalf and its corporate seal to be affixed hereto by its officer thereunto duly authorized,
as of the 31st day of December, 2007.

	 	 	 	 	 
	 	ING FINANCIAL SERVICES LLC

 	 
	 	By:  	/s/ Karen Morse	 
	 	 	Name:  	Karen Morse	 
	 	 	Title:  	Director, Employee Benefits	 
	 

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ING FINANCIAL SERVICES LLC

401(k) SAVINGS PLAN

 

SEVENTH AMENDMENT

2008

 

     ING Financial Services LLC, having reserved the power to amend the ING Financial Services LLC
401(k) Savings Plan (the “Plan”) in Section 13.1 of the Plan, hereby amends the Plan as set forth
below:

* * * * *

     Effective as of March 1, 2008, the following sentence is hereby added to Section 9.2:

     “Notwithstanding any provisions of the Plan to the contrary, any Participant who was
terminated as a result of the closing of the Private Wealth Management Group shall vest in
his Company Contributions Account 25% if he has less than one Year of Service and 100% after
he has been credited with one Year of Service.”

* * * * *

     IN WITNESS WHEREOF, the Company has caused this Seventh Amendment to be executed in its name
and on its behalf and its corporate seal to be affixed hereto by its officer thereunto duly
authorized, as of the 1 day of May  , 2008.

	 	 	 	 	 
	 	ING FINANCIAL SERVICES LLC

 	 
	 	By:  	/s/
Karen Morse	 
	 	 	Name:  	Karen Morse 	 
	 	 	Title:  	Director; Employee Benefits 	 
	 

 

ING FINANCIAL SERVICES LLC

401(k) SAVINGS PLAN

 

EIGHTH AMENDMENT

2009

 

     ING Financial Services LLC (the “Company”), having reserved the power to amend the ING
Financial Services LLC 401(k) Savings Plan (the “Plan”) in Section 13.1 of the Plan, hereby amends
the Plan as set forth below.

* * * * *

     1. Section 415 Compensation Amendment. Section 2.14 of the Plan shall be amended by
adding the following new paragraph at the end thereof:

     Effective January 1, 2008, and solely for purposes of defining compensation within the
meaning of Section 415(c) of the Code (i) Compensation for purposes of Sections 2.28, 4.3,
and 6.3, “415 safe harbor compensation” for purposes of Section 6.4, Section 415
Compensation for purposes of Section 15.2, and “compensation” for purposes of Section 15.3
shall include regular compensation for services during an Employee’s regular working hours
or compensation for services outside regular working hours (such as overtime or shift
differential), commissions, bonuses or other similar payments if the payment would have been
paid prior to severance had the individual continued in employment and if the payment is
made no later than the later of 21/2 months after severance or the end of the limitation year
that includes the date of severance, and (ii) “415 safe harbor compensation” for purposes of
Section 6.4, Section 415 Compensation for purposes of Section 15.2, and “compensation” for
purposes of Section 15.3 shall not exceed $230,000 (for 2008), or such other amount as may
apply under Section 401(a)(17) of the Code, in each case, as adjusted by the Secretary of
the Treasury pursuant to Section 415(d) of the Code.

* * * * *

     2. Disposition of Excess Amount. Section 6.4 of the Plan shall be amended effective
January 1, 2008 by adding the following new paragraph at the end thereof:

     Notwithstanding the preceding paragraphs, any disposition of an Excess Amount shall be
handled in a manner consistent with the Employee Plans Compliance Resolution System, as
published in Rev. Proc. 2006-27, and any successor thereto.

* * * * *

 

 

     3. Further Amendments. Except as hereinabove specifically amended, all provisions of
the Plan shall continue in full force and effect; provided, however, that the Company hereby
reserves the power from time to time to further amend the Plan.

* * * * *

     IN WITNESS WHEREOF, the Company has caused this Eighth Amendment to be executed in its name
and on its behalf by its officer thereunto duly authorized, this 29th day of
May, 2009.

	 	 	 	 	 
	 	ING FINANCIAL SERVICES LLC

 	 
	 	By:  	/s/
Karen Morse	 
	 	 	Name:  	Karen Morse 	 
	 	 	Title:  	Director, Employee Benefits 	 
	 

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ING FINANCIAL SERVICES LLC

401(K) SAVINGS PLAN

 

NINTH AMENDMENT

2009

 

     ING Financial Services LLC (the “Company”), having reserved the power to amend the ING
Financial Services LLC 401(k) Savings Plan (the “Plan”) in Section 13.1 of the Plan, hereby amends
the Plan as set forth below.

*   *   *   *   *

     1. HEART Act Provisions. Section 3.7 of the Plan shall be amended by adding the
following new paragraph at the end thereof:

     The Beneficiary of a Participant who dies on or after January 1, 2007 while in
qualified military service shall be entitled to any additional benefits (other than benefit
accruals relating to the period of qualified military service) provided under the Plan had
the Participant resumed and then terminated employment on account of death. Further, for
years beginning after December 31, 2008, an individual receiving differential wage payments,
within the meaning of Section 3401(h)(2) of the Code, shall be treated as an Employee and
the payments shall be treated as compensation, all as required by Section 414(u)(12) of the
Code. Finally, for years beginning after December 31, 2008 and to the extent required under
Section 414(u)(12) of the Code, any Participant shall be treated as having been severed from
employment for purposes of Section 401(k)(2)(B)(i)(1) of the Code during any period the
Participant is performing service in the uniformed services as described in Section
3401(h)(2)(A) of the Code; provided, however, that a Participant who elects to receive a
distribution by reason of such deemed severance from employment may not make Deferral
Contributions during the six-month period beginning on the date of the distribution.

*   *   *   *   *

     2. RMD Waiver. Section 10.2A(a) of the Plan shall be amended by adding the following
at the end thereof:

	 	(iv)	 	2009 RMD Waiver. Notwithstanding any provision herein
to the contrary, no required minimum distribution shall be necessary with
respect to the 2009 Plan Year or any other Plan Year for which required minimum
distributions are waived under the Code and, if such waiver is elective with
respect to the Plan, has been agreed to by the Administrator. To the extent a
Participant or Beneficiary elects to receive an amount that would otherwise
have been a required minimum distribution (but for the preceding sentence), a
direct rollover of such amount shall (if permitted by

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	 	 	 	applicable guidance) be available pursuant to Sections 10.6 and 10.7 and
such amount shall be treated as an Eligible Distribution.

*   *   *   *   *

     3. Rollover of Eligible Distributions to a Roth IRA. Section 10.7(b) shall be amended
by adding the following new sentence at the end thereof:

	 	 	 	Effective January 1, 2008, for purposes of the direct rollover provisions in Section
10.6 of the Plan, an eligible retirement plan (or Eligible Plan) shall also mean an
applicable retirement plan described in Section 402A(e)(1) of the Code or a Roth IRA
within the meaning of Section 408A of the Code, to the extent the rollover is
permitted under Sections 402(c) and 408A(e) of the Code.

*   *   *   *   *

     4. Rollover of After-Tax Employee Contributions. Effective January 1, 2007, Section
10.7(d) shall be amended by replacing the phrase “qualified defined contribution plan described in
section 401(a) or 403(a) of the Code” with the phrase “qualified plan described in Section 401(a)
or an arrangement described in Section 403(a) or 403(b) of the Code” in the second sentence
thereof.

*   *   *   *   *

     5. Beneficiary Rollover. Article 10 shall be amended by adding the following new
Section 10.19 at the end thereof:

     10.19 Beneficiary Rollover. Effective January 1, 2010, all or a portion of
the Account of a deceased Participant may, at the election of the Beneficiary, be directly
transferred to an individual retirement account maintained in the name of the Participant
for the benefit of the Beneficiary, all in accordance with Section 402(c)(11) of the Code.

*   *   *   *   *

     6. Excess Deferral Amounts Gap Period Income. Section 10.10 shall be amended by
adding the following paragraph at the end thereof:

     Effective for Plan Years beginning on or after January 1, 2008, Excess Deferral Amounts
shall not be adjusted for income or loss up to the date of distribution but rather only
through the end of the preceding calendar year; provided, however, that income or loss shall
be distributed with respect to the period between the end of the Plan Year and the date of
the distribution for the 2007 Plan Year.

*   *   *   *   *

     7. Excess Contributions Gap Period Income. Section 10.11, as amended by Section 5.1
of the Fifth Amendment to the Plan, shall be amended by adding the following paragraph at the end
thereof.

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     Effective for Plan Years beginning on or after January 1, 2008, Excess Contributions
shall no longer be adjusted for income or loss up to the date of distribution (the “gap
period”) but rather only through the end of the preceding calendar year.

*   *   *   *   *

     8. Excess Aggregate Contributions Gap Period Income. Section 10.12, as amended by
Section 7.1 of the Fifth Amendment to the Plan, shall be amended by adding the following paragraph
at the end thereof.

     Effective for Plan Years beginning on or after January 1, 2008, Excess Aggregate
Contributions shall no longer be adjusted for income or loss up to the date of distribution
(the “gap period”) but rather only through the end of the preceding calendar year.

 *   *   *   *   *

     9. Roth Elective Deferrals. Effective January 1, 2010, Roth Elective Deferrals will
no longer be permitted under the Plan. Any current Roth Elective Deferral elections will be
reclassified as traditional 401(k) Elective Deferrals as of January 1, 2010. Any Roth Elective
Deferrals made prior to January 1, 2010 will continue to be separately accounted for in each
Participant’s Roth Elective Deferral Account.

*   *   *   *   *

     10. Further Amendments. Except as hereinabove specifically amended, all provisions of
the Plan shall continue in full force and effect; provided, however, that the Company hereby
reserves the power from time to time to further amend the Plan.

*   *   *   *   *

     IN WITNESS WHEREOF, the Company has caused this Ninth Amendment to be executed in its name and
on its behalf by its officer thereunto duly authorized, this
29th day of December, 2009.

	 	 	 	 	 
	 	ING FINANCIAL SERVICES LLC

 	 
	 	By:  	/s/
James Beach	 
	 	 	Name:  	James Beach	 
	 	 	Title:  	Head of Human Resources	 
	 

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