Document:

exv10w31

 

EXHIBIT 10.31

Effective March 1, 2005, the annual salaries for our named executive officers will be as follows:

	 	•  	J.J. Mulva — $1,500,000
	 
	 	•  	J.W. Nokes — $852,000
	 
	 	•  	W.B. Berry — $725,000
	 
	 	•  	J.A. Carrig — $659,000
	 
	 	•  	J.E. Lowe — $546,000exv10w8

 

Exhibit 10.8

COOPER CAMERON CORPORATION

RETIREMENT SAVINGS PLAN

As Amended and Restated

Effective May 1, 2003

 

 

COOPER CAMERON CORPORATION

RETIREMENT SAVINGS PLAN

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	 
	ARTICLE I DEFINITIONS AND CONSTRUCTION
	 	 	1	 
	1.1 Definitions
	 	 	1	 
	1.2 Construction.
	 	 	12	 
	ARTICLE II ELIGIBILITY TO PARTICIPATE
	 	 	13	 
	2.1 Commencement of Participation.
	 	 	13	 
	2.2 Changes in Employment Status.
	 	 	14	 
	2.3 Election Form.
	 	 	15	 
	ARTICLE III CONTRIBUTIONS
	 	 	16	 
	3.1 Basic Contributions.
	 	 	16	 
	3.2 Matching Contributions.
	 	 	16	 
	3.3 Rollover Contributions.
	 	 	17	 
	3.4 Transferred Contributions.
	 	 	17	 
	3.5 Company Retirement Contributions.
	 	 	17	 
	3.6 Catch-Up Contributions.
	 	 	17	 
	3.7 Profit Sharing Contributions.
	 	 	18	 
	3.8 Effect of Plan Termination or Withdrawal.
	 	 	18	 
	ARTICLE IV ADMINISTRATION OF CONTRIBUTIONS
	 	 	19	 
	4.1 Limitations on Basic Contributions.
	 	 	19	 
	4.2 Excess Elective Deferrals.
	 	 	19	 
	4.3 Limitation on Matching Contributions.
	 	 	20	 
	4.4 Delivery of Contributions.
	 	 	20	 
	4.5 Allocation of Matching Contributions.
	 	 	21	 
	4.6 Allocation of Company Retirement Contributions.
	 	 	21	 
	4.7 Allocation of Profit Sharing Contributions.
	 	 	21	 
	4.8 Crediting of Contributions.
	 	 	21	 
	4.9 Changes in Reduction and Deduction Authorizations.
	 	 	22	 
	ARTICLE V DEPOSIT AND INVESTMENT OF CONTRIBUTIONS
	 	 	23	 
	5.1 Deposit of Contributions.
	 	 	23	 
	5.2 Investment of Accounts.
	 	 	23	 
	5.3 Elimination of Funds.
	 	 	23	 
	ARTICLE VI ESTABLISHMENT OF FUNDS AND MEMBERS’ ACCOUNTS
	 	 	25	 
	6.1 Investment Responsibility.
	 	 	25	 
	6.2 Establishment and Maintenance of Funds.
	 	 	25	 
	6.3 Company Stock Fund.
	 	 	25	 
	6.4 Income on Trust Funds.
	 	 	25	 
	6.5 Separate Accounts.
	 	 	25	 
	6.6 Voting of Company Stock in the Company Stock Fund.
	 	 	25	 
	ARTICLE VII VESTING
	 	 	27	 
	7.1 Vesting in Basic, Supplemental, Matching, and Rollover/Transfer Accounts.
	 	 	27	 
	7.2 Vesting in Company Retirement and Profit Sharing Contributions.
	 	 	27	 

(i)

 

 

	 	 	 	 	 
	7.3 Forfeitures.
	 	 	27	 
	7.4 Election of Former Vesting Schedule.
	 	 	29	 
	7.5 Vesting Service.
	 	 	29	 
	7.6 Transfers.
	 	 	30	 
	7.7 Loss and Reinstatement of Years of Vesting Service.
	 	 	31	 
	7.8 Finality of Determinations.
	 	 	32	 
	ARTICLE VIII WITHDRAWALS WHILE EMPLOYED
	 	 	33	 
	8.1 Withdrawals Prior to Age 591⁄2.
	 	 	33	 
	8.2 Withdrawals After Age 591⁄2.
	 	 	34	 
	8.3 Form of Withdrawals.
	 	 	34	 
	ARTICLE IX
LOANS
	 	 	35	 
	9.1 Eligibility for Loan.
	 	 	35	 
	9.2 Maximum Loan.
	 	 	35	 
	9.3 Operation of Article.
	 	 	35	 
	ARTICLE X DISTRIBUTION ON RETIREMENT OR OTHER TERMINATION OF EMPLOYMENT
	 	 	36	 
	10.1 Eligibility for Distribution.
	 	 	36	 
	10.2 Distribution of Separate Accounts.
	 	 	36	 
	10.3 Form of Distribution.
	 	 	40	 
	10.4 Limitation on Commencement of Distribution.
	 	 	40	 
	10.5 Restriction on Alienation.
	 	 	41	 
	10.6 Payments to Incompetents or Minors.
	 	 	41	 
	10.7 Commercial Annuities.
	 	 	42	 
	10.8 Actuarial Equivalency.
	 	 	42	 
	10.9 Eligible Rollover Distributions.
	 	 	42	 
	10.10 Transfer to Cooper Cameron Salaried Plan.
	 	 	42	 
	10.11 Deferral of Payments.
	 	 	42	 
	10.12 Lost or Missing Members or Beneficiaries.
	 	 	43	 
	10.13 Minimum Distribution Requirements.
	 	 	43	 
	ARTICLE XI BENEFICIARIES AND DEATH BENEFITS
	 	 	47	 
	11.1 Designation of Beneficiary.
	 	 	47	 
	11.2 Beneficiary in the Absence of Designated Beneficiary.
	 	 	47	 
	11.3 Spousal Consent to Beneficiary Designation.
	 	 	47	 
	11.4 Death Benefits from Basic, Supplemental, Matching, and
Rollover/Transfer Accounts.
	 	 	47	 
	11.5 Death Benefits from IAR Accounts.
	 	 	47	 
	11.6 Commencement of Death Benefits.
	 	 	49	 
	ARTICLE XII ADMINISTRATION
	 	 	50	 
	12.1 Plan Administrator.
	 	 	50	 
	12.2 Authority of the Company.
	 	 	50	 
	12.3 Action of the Company.
	 	 	50	 
	12.4 Claims Review Procedure.
	 	 	51	 
	12.5 Qualified Domestic Relations Orders.
	 	 	51	 
	12.6 Indemnification.
	 	 	51	 
	ARTICLE XIII AMENDMENT AND TERMINATION
	 	 	52	 
	13.1 Amendment.
	 	 	52	 
	13.2 Limitation of Amendment.
	 	 	52	 

(ii)

 

 

	 	 	 	 	 
	13.3 Termination.
	 	 	52	 
	13.4 Withdrawal of an Employer.
	 	 	53	 
	13.5 Corporate Reorganization.
	 	 	53	 
	ARTICLE XIV ADOPTION BY SUBSIDIARIES: EXTENSION TO NEW BUSINESS OPERATIONS
	 	 	54	 
	ARTICLE XV MISCELLANEOUS PROVISIONS
	 	 	55	 
	15.1 No Commitment as to Employment.
	 	 	55	 
	15.2 Benefits.
	 	 	55	 
	15.3 No Guarantees.
	 	 	55	 
	15.4 Exclusive Benefit.
	 	 	55	 
	15.5 Duty to Furnish Information.
	 	 	55	 
	15.6 Merger, Consolidation, or Transfer of Plan Assets.
	 	 	55	 
	15.7 Return of Contributions to Employers.
	 	 	55	 
	15.8 Addenda.
	 	 	56	 
	15.9 Validity of Agreement.
	 	 	56	 
	15.10 Uniformed Services Employment and Reemployment Rights Act Requirements.
	 	 	56	 
	ARTICLE XVI SECTION 415 LIMITATIONS
	 	 	57	 
	16.1 Application.
	 	 	57	 
	16.2 Section 415 Definitions.
	 	 	57	 
	16.3 Limitations and Corrections.
	 	 	58	 
	16.4 Multiple Plans.
	 	 	59	 
	16.5 Contribution Adjustments.
	 	 	59	 
	ARTICLE XVII TOP-HEAVY PLAN RULES
	 	 	60	 
	17.1 Application.
	 	 	60	 
	17.2 Top-Heavy Definitions.
	 	 	60	 
	17.3 Top-Heavy Minimum Allocation Rules.
	 	 	63	 
	17.4 Top-Heavy Compensation Limitation.
	 	 	64	 
	17.5 Top-Heavy Vesting Provisions.
	 	 	64	 
	17.6 Top-Heavy Plan/Benefit Limitations.
	 	 	65	 
	ADDENDA
	 	AD-1

(iii)

 

 

COOPER CAMERON CORPORATION

RETIREMENT SAVINGS PLAN

     WHEREAS, Cooper Cameron Corporation (the “Company”) has heretofore adopted the Cooper Cameron
Corporation Retirement Savings Plan, hereinafter referred to as the “Plan,” for the benefit of
certain of its employees; and

     WHEREAS, the Company desires to restate the Plan and to amend the Plan in several respects,
intending thereby to provide an uninterrupted and continuing program of benefits;

     NOW, THEREFORE, the Plan is hereby restated in its entirety as follows with no interruption in
time, effective as of May 1, 2003, except as otherwise indicated herein.

 

 

ARTICLE I

DEFINITIONS AND CONSTRUCTION

1.1 Definitions

The following words and phrases as used herein shall have the meanings hereinafter set forth,
unless a different meaning is plainly required by the context:

     (1) The term “Addendum” shall mean the overriding provisions which are applicable to certain
Employees in accordance with the provisions of Section 16.8 and which shall constitute for all
purposes a part of the Plan and in the event of conflict with any other provision of the Plan shall
control.

     (2) The term “Affiliate” shall mean any member of a controlled group of corporations (as
determined under Section 414(b) of the Code) of which the Company is a member; any member of a
group of trades or businesses under common control (as determined under Section 414(c) of the Code)
with the Company; and any member of an affiliated service group (as determined under Section 414(m)
of the Code) of which the Company is a member.

     (3) The term “Allocation Month” shall mean each calendar month for which an Employer makes
Company Retirement Contributions in accordance with the provisions of Section 3.5.

     (4) The term “Allocation Year” shall mean each Plan Year.

     (5) The term “Basic Account” shall mean the Separate Account of a Member to which Basic
Contributions are credited in accordance with the provisions of Section 4.8.

     (6) The term “Basic Contribution” shall mean any cash or deferred arrangement contribution
made to the Plan by an Employer on behalf of a Member in accordance with the provisions of Sections
2.3 and 3.1.

     (7) The term “Beneficiary” shall mean the person or persons who, in accordance with the
provisions of Article XI hereof, shall be entitled to receive distribution hereunder in the event a
Member or Inactive Member dies before his interest shall have been distributed to him in full.

     (8) The term “Break in Service” shall mean any Plan Year during which an Employee completes
not more than 500 Hours of Service; provided, however, that for purposes of Section 7.7(b), no
Employee shall incur a Break in Service solely by reason of an absence due to (i) the birth of a
child of the Employee, (ii) the pregnancy of the Employee, (iii) the placement of a child with the
Employee on account of the adoption of such child by such Employee, or (iv) the caring for a child
of an Employee for a period beginning following the birth or placement of such child, with respect
to the Plan Year in which such absence begins, if the Employee otherwise would have incurred a
Break in Service or, in any other case, in the immediately following Plan Year; and provided
further, that although an Employee may not receive credit for vesting or benefit accrual purposes,
a Break in Service shall not be deemed to occur with respect to any layoff or sick leave not in
excess of the period of time during which his seniority is

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retained; and provided further, however, that no Member shall incur a Break in Service by
reason of failure to complete more than 500 hours of service during the Plan Year beginning and
ending on December 31, 2001.

     (9) The term “Code” shall mean the Internal Revenue Code of 1986, as amended from time to
time. Reference to a section of the Code shall include such section and any comparable section or
Sections of any future legislation that amends, supplements, or supersedes such section.

     (10) The term “Company” shall mean Cooper Cameron Corporation, its successors, and the
surviving corporation resulting from any merger or consolidation of Cooper Cameron Corporation with
any other corporation or corporations.

     (11) The term “Company Retirement Contributions” shall mean the contributions made to the Plan
by an Employer in accordance with the provisions of Section 3.5.

     (12) The term “Company Stock” shall mean the common stock of Cooper Cameron Corporation.

     (13) The term “Company Stock Fund” shall mean the investment fund established to invest in
Company Stock and maintained pursuant to the provisions of Section 6.3.

     (14) The term “Compensation” shall mean the total of all wages, salaries, fees for
professional service and other amounts received in cash or in kind by a Member while a Member for
services actually rendered or labor performed for the Employer to the extent such amounts are
includable in gross income, subject to the following adjustments and limitations:

	 	(A)	 	The following shall be excluded:

	 	(i)	 	Accrued or unused vacation pay which is paid
following termination of employment;
	 
	 	(ii)	 	Reimbursements and other expense allowances
(including but not limited to automobile expense allowances and foreign
service premiums);
	 
	 	(iii)	 	Cash and noncash fringe benefits;
	 
	 	(iv)	 	Moving expense reimbursements;
	 
	 	(v)	 	Employer contributions to or payments from this
or any other deferred compensation program, whether such program is
qualified under Section 401(a) of the Code or nonqualified, other than
Basic Contributions;
	 
	 	(vi)	 	Welfare benefits (including but not limited to
severance benefits);

-2-

 

	 	(vii)	 	Amounts realized from the receipt or exercise
of a stock option that is not an incentive stock option within the
meaning of Section 422 of the Code;
	 
	 	(viii)	 	Amounts realized at the time property described in Section 83 of the
Code is freely transferable or no longer subject to a substantial risk
of forfeiture;
	 
	 	(ix)	 	Amounts realized as a result of an election
described in Section 83(b) of the Code;
	 
	 	(x)	 	Any amount realized as a result of a
disqualifying disposition within the meaning of Section 421(a) of the
Code; and
	 
	 	(xi)	 	Any other amounts that receive special tax
benefits under the Code but are not hereinafter included.

	 	(B)	 	Basic Contributions and any other elective contributions made
on a Member’s behalf by the Employer that are not includable in income under
Section 125, Section 402(e)(3), Section 402(h), or Section 403(b) of the Code
and any amounts that are not includable in the gross income of a Member under a
salary reduction agreement by reason of the application of Section 132(f) of
the Code shall be included.
	 
	 	(C)	 	The Compensation of any Member taken into account for purposes
of the Plan shall be limited to $200,000 for any Plan Year with such limitation
to be:

	 	(i)	 	Adjusted automatically to reflect any
amendments to Section 401(a)(17) of the Code and any cost-of-living
increases authorized by Section 401(a)(17) of the Code; and
	 
	 	(ii)	 	Prorated for a Plan Year of less than twelve
months and to the extent otherwise required by applicable law.”

     (15) The term “Contribution Hour” shall mean an hour of employment in an hourly-rated
employment classification while an IAR Member of the Plan for which such Member receives
Compensation from an Employer, including overtime hours and any paid hours for vacation periods or
holidays, but excluding any other paid hours for any other absences during which no duties are
performed.

     (16) The term “Contribution Rate” shall mean the following contribution rates, which are
effective with respect to Contribution Hours credited on or after April 28, 2003, depending upon an
IAR Member’s employment classification at the time such Contribution Hours are credited:

-3-

 

	 	 	 
	Employment Classification
	 	Contribution Rate

	Labor Grade 82, 83, or 84
	 	$0.37
	Labor Grade 85
	 	$0.44
	Labor Grade 86, 87, or 88
	 	$0.48

Notwithstanding the foregoing, in no event shall an IAR Member’s Contribution Rate be a rate that
is less than the Contribution Rate applicable for such IAR Member as of April 27, 2003; provided,
however, that if an IAR Member’s Labor Grade changes on or after such date, such IAR Member’s
Contribution Rate will be determined pursuant to the Schedule set forth above.

     (17) The term “Controlled Entity” shall mean each corporation that is a member of a controlled
group of corporations, within the meaning of Section 1563(a) of the Code determined without regard
to Section 1563(a)(4) and Section 1563(e)(3)(C), of which the Company is a member, each trade or
business (whether or not incorporated) with which the Company is under common control and each
corporation that is a member of an affiliated service group, within the meaning of Section 414(m)
of the Code, of which the Company is a member.

     (18) The term “Cooper Savings Plan” shall mean the Cooper Industries, Inc. Retirement and
Savings Plan, the Cooper Industries, Inc. Savings Plan, and Cooper Industries, Inc. Stock Ownership
Plan.

     (19) The term “Effective Date” shall mean May 1, 2003 as to this restatement of the Plan,
except (A) as otherwise indicated in specific provisions of the Plan, and (B) that provisions of
the Plan required to have an earlier effective date by applicable statute and/or regulation and
shall apply, as of such required effective date, to any plan merged into this Plan. The original
effective date of the Plan was April 1, 1995.

     (20) The term “Eligible Employee” shall mean any salaried or hourly Employee of the Employer
who is (i) a common law employee who is paid in United States dollars from a payroll maintained in
the United States, (ii) a non-United States citizen who is a lawful, permanent resident of the
United States and who is subject to United States federal income taxes on his worldwide income, or
(iii) an Eligible Foreign Employee. In no event shall the term “Eligible Employee” mean (i) any
person who is rendering service to an Employer solely as a director or an independent contractor,
(ii) any person who is covered by a collective bargaining agreement unless such agreement
specifically provides for coverage by the Plan, or (iii) any person who is a nonresident alien and
who receives no earned income within the meaning of Section 911(b) of the Code from an Employer
which constitutes income from sources within the United States as defined in Section 861(a)(3) of
the Code, or (iv) an Employee who is a Leased Employee or who is designated, compensated, or
otherwise classified by the Employer as a Leased Employee. Notwithstanding any provision of the
Plan to the contrary, no individual who is designated, compensated, or otherwise classified or
treated by the Employer as an independent contractor shall be eligible to become a Member of the
Plan.

     (21) The term “Eligible Foreign Employee” shall mean any individual who (i) is a citizen of
the United States or a permanent, lawful resident of the United States, (ii) is an

-4-

 

employee of an Included Foreign Affiliate, and (iii) is not covered by any other funded plan
of deferred compensation under which contributions are provided by any other person, firm, or
corporation with respect to the remuneration paid to such individual by the Included Foreign
Affiliate.

     (22) The term “Eligible Retirement Plan” shall mean, with respect to distributions made from
the Plan after December 31, 2001, any of: an individual retirement account described in Section
408(a) of the Code, an individual retirement annuity described in Section 408(b) of the Code, an
annuity plan described in Section 403(a) of the Code, a qualified plan described in Section 401(a)
of the Code, that, under its provisions does, and under applicable law may, accept an Eligible
Rollover Distribution, an annuity contract described in Section 403(b) of the Code, and an eligible
plan under Section 457(b) of the Code that is maintained by a state, political subdivision of a
state, or agency or instrumentality of a state or political subdivision of a state and that agrees
to separately account for the 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 an alternate payee under a qualified domestic relations order, as
defined in Section 414(p) of the Code.

     (23) The term “Eligible Rollover Distribution” shall mean all or any portion of a Plan
distribution to a Member or a Beneficiary who is a deceased Member’s surviving spouse or an
alternate payee under a qualified domestic relations order who is a Member’s spouse or former
spouse; provided, however, that such distribution is not (i) one of a series of substantially equal
periodic payments made at least annually for over a specified period of ten or more years or the
life of the Member or Beneficiary or the joint lives of the Member and a designated beneficiary,
(ii) a distribution to the extent such distribution is required under Section 401(a)(9) of the
Code; or (iii) the portion of any distribution which is not includable in gross income (determined
without regard to any exclusion of net unrealized appreciation with respect to employer
securities). Further, a distribution pursuant to Section 8.1 from the Separate Account of a Member
attributable to Basic Contributions who has not attained age 591⁄2 shall not constitute an Eligible
Rollover Distribution. Notwithstanding the foregoing or any other provision of the Plan, (A) any
amount that is distributed from the Plan on account of hardship pursuant to Section 8.1 shall not
be an Eligible Rollover Distribution and no election may be made to have any portion of such a
distribution paid directly to an Eligible Retirement Plan and (B) 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 includable in gross income; provided, however, that 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 includable in gross income and
the portion of such distribution which is not so includable.

     (24) The term “Employee” shall mean each (A) individual employed by the Employer or a
Controlled Entity and (B) Leased Worker.

-5-

 

     (25) The term “Employer” shall mean the Company or any Affiliate of the Company which adopts
the Plan as herein provided so long as the Affiliate has not withdrawn from the Plan.

     (26) The term “Employment Commencement Date” shall mean the first date on which an Employee
completes an Hour of Service.

     (27) The term “Entry Date” shall mean January 1 or July 1.

     (28) The term “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as
amended from time to time. Reference to a section of ERISA shall include such section and any
comparable section or Sections of any future legislation that amends, supplements, or supersedes
such section.

     (29) The term “Foreign Affiliate” shall mean a “foreign affiliate” as defined in Section
3121(1)(8) of the Code.

     (30) The term “Fund” shall mean any of the investment funds established and maintained in
accordance with the provisions of Section 6.2.

     (31) The term “Highly-Compensated Employee” shall mean each Employee who performs services
during the Plan Year for which the determination of who is highly compensated is being made (the
“Determination Year”) and who:

	 	(a)	 	is a fiver-percent owner of the Employer (within the meaning of
section 416(i)(1)(A)(iii) of the Code) at any time during the Determination
Year or the twelve-month period immediately preceding the Determination Year
(the “Look-Back Year”); or
	 
	 	(b)	 	for the Look-Back Year, receives compensation (within the
meaning of section 414(q)(4) of the Code; “compensation” for purposes of this
Paragraph) in excess of $80,000 (with such amount to be adjusted automatically
to reflect any cost-of-living adjustments authorized by section 414(q)(1) of
the Code) during the Look-Back Year.

For the purposes of the preceding sentence, (i) all employers aggregated with the Employer under
section 414(b), (c), (m), or (o) of the Code shall be treated as a single employer and (ii) a
former Employee who had a separation year (generally, the Determination Year such Employee
separates from service) prior to the Determination Year and who was an active Highly Compensated
Employee for either such separation year or any Determination Year ending on or after such
Employee’s fifty-fifth birthday shall be deemed to be a Highly Compensated Employee. To the extent
that the provisions of this Paragraph are inconsistent or conflict with the definition of a “highly
compensated employee” set forth in section 414(q) of the Code and the Treasury regulations
thereunder, the relevant terms and provisions of section 414(q) of the Code and the Treasury
regulations thereunder shall govern and control.

     (32) The term “Hour of Service” shall mean an hour for which an employee is paid, or entitled
to be paid, with respect to the performance of duties for an Employer or a Controlled

-6-

 

Entity either as regular wages, salary or commissions, or pursuant to an award or agreement
requiring an Employer or a Controlled Entity to pay back wages. Hours under this paragraph shall
be calculated and credited pursuant to Section 2530.200b-2(b) and (c) of the Department of Labor
regulations which are incorporated herein by reference.

     (33) The term “IAR Account” shall mean the Separate Account of a Member to which the Company
Retirement Contributions are credited in accordance with the provisions of Section 4.8.

     (34) The term “IAR Member” shall mean, except as provided in Section 2.1(c) with respect to
certain Part Time Employees and Temporary Employees, an Eligible Employee whose Employment
Commencement Date occurred prior to May 1, 2003, who is employed in an hourly-rated employment
classification and to whom Company Retirement Contributions are allocated pursuant to the
provisions of Section 3.5. No Employee whose Employment Commencement Date occurs on or after May
1, 2003 shall become an IAR Member. An Eligible Employee who was an IAR Member but who terminated
employment with the Employer and was reemployed by an Employer after May 1, 2003 in an hourly-rated
employment classification shall not become an IAR Member upon his reemployment and shall become a
Profit Sharing Member instead.

     (35) The term “Inactive Member” shall mean any Member who ceases to be an Employee and whose
Separate Accounts have not been distributed in accordance with the provisions of the Plan.

     (36) The term “Included Foreign Affiliate” means a “Foreign Affiliate” with respect to which
there shall be in effect between the Company and the Secretary of the Treasury or his delegate an
agreement pursuant to Section 3121(1) of the Code, whereby coverage under Title II of the federal
Social Security Act has been extended to service performed outside the United States by United
States citizens employed by such “Foreign Affiliate.”

     (37) The term “Leased Worker” shall be a person (other than a person who is an employee
without regard to this paragraph (37)) engaged in performing services for a Controlled Entity (the
“recipient”) pursuant to an agreement between the recipient and any other person (“Leasing
Organization”) who meets the following requirements:

	 	(a)	 	he has performed services for one or more Controlled Entities
(or for any other “related persons” determined in accordance with Section
414(n)(6) of the Code) on a substantially full-time basis for a period of at
least one year;
	 
	 	(b)	 	such services are of a type historically performed in the
business field of the recipient, in the United States, by employees (or, from
and after January 1, 1997, such services are performed under primary direction
or control by the Employer or a Controlled Entity); and
	 
	 	(c)	 	he is not participating in a “safe harbor plan” of the Leasing
Organization. (For this purpose, a “safe harbor plan” is a plan that satisfies
the requirements of Section 414(n)(5) of the Code, which will generally be a

-7-

 

	 	 	 	money purchase pension plan with a non-integrated employer contribution rate
of at least ten percent of compensation and which provides for immediate
participation and full and immediate vesting).

A person who is a Leased Worker during any taxable year beginning after December 31, 1983, shall
also be considered an employee of a Controlled Entity during such period (and solely for the
purpose of determining length of service for participation and vesting purposes, and shall also be
considered to have been an employee for any earlier period in which he was a Leased Worker) but
shall not be a Member and shall not otherwise be eligible to become covered by the Plan during any
period in which he is a Leased Worker. Notwithstanding the foregoing, the sole purpose of this
paragraph (37) is to define and apply the term “Leased Worker” strictly (and only) to the extent
necessary to satisfy the minimum requirements of Section 414(n) of the Code relating to “leased
employees.” This paragraph (37) shall be interpreted, applied and, if and to the extent necessary,
deemed modified without formal amendment of language, so as to satisfy solely the minimum
requirements of Section 414(n) of the Code.

     (38) The term “Matching Account” shall mean the Separate Account of a Member to which Matching
Contributions are credited in accordance with the provisions of Section 4.8.

     (39) The term “Matching Contribution” shall mean the contributions which an Employer
contributes to the Plan in accordance with the provisions of Section 3.2.

     (40) The term “Member” shall mean an Eligible Employee who participates in the Plan in
accordance with the provisions of Article II.

     (41) The term “Participation Service” shall mean the measure of service used in determining a
Part Time Employee’s or Temporary Employee’s eligibility to participate in the Plan as determined
pursuant to Section 2.1(c).

     (42) The term “Part Time Employee” shall mean an Employee who is classified as a part time
employee under the Employer’s regular payroll practices.

     (43) The term “Pay Period” shall mean the periodic payroll period for which a Member receives
compensation from an Employer.

     (44) The term “Period of Service” shall mean each period of an individual’s Service commencing
on his Employment Commencement Date or a Reemployment Date, if applicable, and ending on a
Severance Date. Notwithstanding the foregoing, a period during which an individual is absent from
Service by reason of the individual’s pregnancy, the birth of a child of the individual, the
placement of a child with the individual in connection with the adoption of such child by the
individual, or for the purposes of caring for such child for the period immediately following such
birth or placement shall not constitute a Period of Service between the first and second
anniversary of the first date of such absence. A Period of Service shall also include any period
required to be credited as a Period of Service by federal law other than ERISA or the Code, but
only under the conditions and to the extent so required by such federal law. Further, to the
extent required by section 414(n) of the Code and the applicable interpretative authority
thereunder, an individual’s Period of Service shall include any period for

-8-

 

which such individual was a Leased Worker (or would have been a Leased Worker but for the
requirements of clause (a) of the definition of such term set forth in Section 1.1(37)).

     (45) The term “Period of Severance” shall mean each period of time commencing on an
individual’s Severance Date and ending on a Reemployment Date.

     (46) The term “Permanent and Total Disability” shall mean a physical or mental condition which
has resulted in an Employee being eligible for benefits under the Employer’s long-term disability
income plan. An Employee shall cease to be Permanently and Totally Disabled for purposes of the
Plan as of the date he ceases to be eligible for benefits under the Employer’s long-term disability
income plan.

     (47) The term “Plan” shall mean the profit-sharing plan set forth herein, which is called the
“Cooper Cameron Corporation Retirement Savings Plan,” with all amendments, modifications, and
supplements hereafter made.

     (48) The term “Plan Year” shall mean the calendar year.

     (49) The term “Profit Sharing Account” shall mean the Separate Account of a Member to which
Profit Sharing Contributions are credited in accordance with the provisions of Section 4.8.

     (50) The term “Profit Sharing Contribution” shall mean the contributions that an Employer
contributes to the Plan in accordance with the provisions of Section 3.7.

     (51) The term “Profit Sharing Member” shall mean each Member who was hired by the Employer on
or after May 1, 2003.

     (52) The term “Reemployment Date” shall mean the first date on which an Employee completes an
Hour of Service after a Severance Date.

     (53) The term “Retirement Age” shall mean age 65 unless otherwise specified in an Addendum.

     (54) The term “Rollover/Transfer Account” shall mean the Separate Account of a Member to which
Rollover Contributions or Transfer Contributions are credited in accordance with the provisions of
Section 3.3 or 3.4.

     (55) The term “Rollover Contribution” shall mean, effective January 1, 2003, a contribution to
the Plan made in accordance with Section 3.3 by any Eligible Employee of amounts received by him as
an “eligible rollover distribution” within the meaning of Section 402(f)(2)(a) of the Code from:

	 	(a)	 	a qualified plan described in Section 401(a) or 403(a) of the Code (excluding
after-tax employee contributions);
	 
	 	(b)	 	an annuity contract described in Section 403(b) of the Code (excluding
after-tax employee contributions);

-9-

 

	 	(c)	 	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 (excluding after-tax employee contributions); or
	 
	 	(d)	 	an individual retirement account or annuity described in Section 408(a) or (b)
of the Code (excluding after-tax employee contributions), provided that the entire
balance in or value of, as applicable, such individual retirement account or annuity is
attributable to an ‘eligible rollover distribution’ within the meaning of Section
402(f)(2)(a) of the Code from a plan or contract described in clause (a) or (b) above
that was contributed to such account or annuity, or a contribution to such account or
annuity as a rollover from a plan described in paragraph (c) above pursuant to Section
457(e)(16), as adjusted for income or losses attributable thereto.

     (56) The term “Salaried Plan” shall mean the Cooper Cameron Corporation Retirement Plan.

     (57) The term “Separate Account” shall mean any of the accounts established and maintained in
accordance with the provisions of Section 6.5 by the Company which reflects the interest of the
Basic Account, Supplemental Account, Matching Account, IAR Account, Profit Sharing Account and
Rollover/Transfer Account of a Member.

     (58) The term “Service” shall mean the period of an individual’s employment with the Employer
or a Commonly Controlled Entity. In no event shall Service include any period of service with a
corporation or other entity prior to the date it became a Commonly Controlled Entity or after it
ceases to be a Commonly Controlled Entity except to the extent required by law, or to the extent
determined by the Company. The Company, in its discretion, may credit individuals with Service for
service with the Employer or a prior employer for periods before such individual has commenced or
recommenced participation in the Plan, but only if (i) such service would not otherwise be credited
as Service and (ii) such crediting of Service (A) has a legitimate business reason, (B) does not by
design or operation discriminate significantly in favor of Highly Compensated Employees, and (C) is
applied to all similarly situated employees. In addition, the Company, in its discretion, may
credit individuals with Service based on imputed service for periods after such individual has
commenced participation in the Plan while such individual is not performing service for the
Employer or while such individual is an Employee with a reduced work schedule, but only if (i) such
service would not otherwise be credited as Service, (ii) such crediting of Service (A) has a
legitimate business reason, (B) does not by design or operation discriminate significantly in favor
of Highly Compensated Employees, and (C) is applied to all similarly situated employees, and (iii)
the individual has not permanently ceased to perform service as an Employee, provided that the
preceding clause (iii) of this sentence shall not apply if (x) the individual is not performing
service for the Employer because of a disability, (y) the individual is performing service for
another employer under an arrangement that provides some ongoing business benefit to the Employer,
or (z) for purposes of vesting, the individual is performing service for another employer that is
being treated under the Plan as actual service with the Employer.

-10-

 

     (59) The term “Severance Date” shall mean the later of (a) the date on which contributions to
the Plan on behalf of a person cease, or (b) the date on which an Employee retires, becomes totally
and permanently disabled, dies, or otherwise terminates employment; provided, however, that if an
Employee is absent from employment while in active service in the Armed Forces of the United
States, his Severance Date shall be the date on which he terminated his employment, unless he
returns to employment with an Employer or a Controlled Entity during the time period prescribed by
federal law; and provided further, that no Employee shall incur a Severance Date until the second
anniversary of the first date on which such Employee is absent from employment with an Employer or
a Controlled Entity for maternity or paternity reasons. For purposes of this paragraph, an absence
for maternity or paternity reasons means an absence due to the pregnancy of the Employee, the birth
of a child of the Employee, the placement of a child with the Employee in connection with the
adoption of such child by the Employee, or the caring of such child for a period beginning
immediately following such birth or placement. Notwithstanding the foregoing, if an Employee
retires or dies, or his employment otherwise is terminated during a period of absence from
employment for any reason other than retirement or termination, his Severance Date shall be the
date of such retirement, death, or other termination of employment. In any case where an Employee
receives severance pay upon his termination of active employment as an Employee, the Employee’s
Severance Date shall be the date after his termination of active employment as an Employee and
prior to any resumption of such active employment on which the earlier occurs: (i) his death, or
(ii) the date on which he is last paid severance pay.

     (60) The term “Supplemental Account” shall mean the Separate Account for each Member which is
credited with his Supplemental Contributions, if any.

     (61) The term “Supplemental Contribution” shall mean any contribution made to the Plan prior
to April 1, 1996, by a Member as a “Supplemental Contribution” in accordance with the provisions of
the Plan in effect prior to April 1, 1996.

     (62) The term “Temporary Employee” shall mean an Employee who is classified as a temporary
employee under the Employer’s regular payroll practices.

     (63) The term “Transferred Contributions” shall mean any assets which are transferred to the
Trustee of the Plan in accordance with the provisions of Section 3.4.

     (64) The term “Trust” shall mean the trust established under the Trust Agreement to hold and
invest contributions made under the Plan.

     (65) The term “Trust Agreement” shall mean the agreement between the Company and the Trustee
establishing the Trust.

     (66) The term “Trustee” shall mean the trustee or trustees qualified and acting under the
Trust Agreement at any time.

     (67) The term “Valuation Date” shall mean each business day for purposes of the New York Stock
Exchange of each year.

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     (68) The term “Vesting Service” shall mean the period of employment used in determining a
Member’s vested interest in his IAR Account or Profit Sharing Account (as applicable) in accordance
with the provisions of Sections 7.5, 7.6, and 7.7.

	1.2	 	Construction.
	 
	 	 	Where necessary or appropriate to the meaning hereof, the singular shall be deemed to
include the plural and the masculine pronoun to include the feminine.

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ARTICLE II

ELIGIBILITY TO PARTICIPATE

	2.1	 	Commencement of Participation.

	 	(a)	 	Each Eligible Employee whose Employment Commencement Date occurs prior to
January 1, 2002 shall become a Member and, if applicable, an IAR Member and participate
in the Plan as of his Employment Commencement Date.
	 
	 	(b)	 	Each Eligible Employee (other than a Part Time Employee or a Temporary
Employee) whose Employment Commencement Date occurs on or after January 1, 2002 but
prior to May 1, 2003 shall become a Member and, if applicable, an IAR Member and
participate in the Plan as of his Employment Commencement Date.
	 
	 	(c)	 	Each Eligible Employee who is a Part Time Employee or Temporary Employee and
whose Employment Commencement Date occurs on or after January 1, 2002 but prior to May
1, 2003 shall become a Member and, if applicable, an IAR Member and participate in the
Plan on the first Entry Date coincident with or next following the later of the date on
which such Employee completes one year of Participation Service or the date on which
such Employee attains the age of 21; provided, however, that any Part Time Employee or
Temporary Employee who has not become an IAR Member before May 1, 2003 shall not become
an IAR Member on or after such date notwithstanding any satisfaction by such employee
of such participation requirements; and provided further, however, that any such
Employee shall become a Profit Sharing Member on the first Entry Date coincident with
or next following the later of the date such Employee completes One Year of
Participation Service or the date on which such Employee attains the age of 21,
notwithstanding that such Employee’s Employment Commencement Date preceded May 1, 2003.
An individual completes one year of Participation Service on the last day of the
twelve-consecutive month period beginning with the individual’s Employment Commencement
Date or beginning with anniversaries of such Employment Commencement Date during which
such individual completes 1,000 Hours of Service.
	 
	 	(d)	 	Each Eligible Employee (other than a Part Time Employee or a Temporary
Employee) whose Employment Commencement Date occurs on or after May 1, 2003 shall
become a Member and, if applicable, a Profit Sharing Member and participate in the Plan
as of his Employment Commencement Date.
	 
	 	(e)	 	Each Eligible Employee who is a Part Time Employee or Temporary Employee and
whose Employment Commencement Date occurs on or after May 1, 2003 shall become a Member
and, if applicable, a Profit Sharing Member and participate in the Plan on the first
Entry Date coincident with or next following the later of the date on which such
Employee completes one year of Participation Service or the date on which such Employee
attains the age of twenty-one.

-13-

 

	 	(f)	 	Notwithstanding the foregoing,

	 	(i)	 	A Temporary Employee or Part Time Employee who was a Member of
the Plan prior to a termination of employment shall remain a Member and an IAR
Member or Profit Sharing Member, as applicable, upon his reemployment as an
Eligible Employee; provided, however, that no such Employee who is reemployed
on or after May 1, 2003 shall be an IAR member upon his reemployment;
	 
	 	(ii)	 	A Temporary Employee or Part Time Employee who has completed
one year of Participation Service and has attained the age of twenty-one but
who has not become a Member, an IAR Member, and/or a Profit Sharing Member, as
applicable because he was not an Eligible Employee shall become a Member, an
IAR Member, and/or a Profit Sharing Member, as applicable, upon the later of
(A) the date he becomes an Eligible Employee as a result of a change in his
employment status or (B) the first Entry Date upon which he would have become a
Member if he had been an Eligible Employee; provided, however, that no such
Employee shall become an IAR Member based on a change of employment status that
occurs on or after May 1, 2003;
	 
	 	(iii)	 	A Temporary Employee or Part Time Employee who was an Eligible
Employee who had completed one year of Participation Service but who had not
attained the age of twenty-one prior to a termination of his employment shall
become a Member, an IAR Member, and/or a Profit Sharing Member, as applicable,
upon the later of (i) the date of his reemployment or (ii) the first Entry Date
following his attainment of age twenty-one; provided, however, that no such
Employee may become an IAR Member on or after May 1, 2003; and
	 
	 	(iv)	 	A Temporary Employee or Part Time Employee who was an Eligible
Employee and who had met the age and service requirements of this Section to
become a Member, an IAR Member, and/or a Profit Sharing Member, as applicable,
but who terminated employment prior to the Entry Date upon which he would have
become a Member, an IAR Member, and/or a Profit Sharing Member, as applicable,
shall become a Member, an IAR Member, and/or a Profit Sharing Member, as
applicable, upon the later of (i) the date of his reemployment or (ii) the
Entry Date upon which he would have become a Member, an IAR Member, and/or a
Profit Sharing Member, as applicable, if he had not terminated employment;
provided, however, that no such Employee may become an IAR Member on or after
May 1, 2003.

2.2 Changes in Employment Status.

If a Member ceases to be an Eligible Employee but continues in the employment of an Employer as an
Employee he shall continue as a Member until his participation is otherwise terminated in

-14-

 

accordance with the provisions of the Plan; provided, however, that such Member shall share in
Matching Contributions for any month of such continued participation only to the extent and on the
basis of his Basic Contributions made during such month; and provided further that each such Member
who is an IAR Member shall share in Company Retirement Contributions for any month of such
continued participation only to the extent and on the basis of his Contribution Hours during such
month; and provided further, however, that each such Member who is a Profit Sharing Member who is
not an Eligible Employee on the last day of a Plan Year shall not receive a Profit Sharing
Contribution for such Plan Year. If a Member ceases to be an Eligible Employee and ceases to be an
Employee but continues in the employment of an Employer or a Controlled Entity, he shall become an
Inactive Member until his participation in the Plan is otherwise terminated in accordance with the
provisions of the Plan or he again becomes an Employee and an active Member.

2.3 Election Form.

Each Member shall file with his Employer a written election in accordance with procedures
established by the Company with respect to his participation in the Plan which shall contain his
authorization for his Employer to reduce his Compensation in order to make Basic Contributions and,
if eligible, catch-up contributions on his behalf pursuant to the provisions of Sections 3.1 and
3.6, respectively, and his election as to the investment of such contributions pursuant to the
provisions of Section 5.2; provided, however, that such election must be filed with his Employer at
least 20 days prior to the first day of the payroll period as of which he is eligible to make Basic
Contributions (or at least 20 days prior to the first day of any subsequent payroll period for
which he is eligible to make Basic Contributions), unless a shorter period of time is acceptable to
the Company.

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ARTICLE III

CONTRIBUTIONS

3.1 Basic Contributions.

Commencing with the date as of which he becomes a Member, each Member may elect to defer an
integral percentage of from 1% to 20% (or such lesser percentage as may be prescribed from time to
time by the Company) of his Compensation for a Plan Year by having his Employer contribute the
amount so deferred to the Plan. In restriction of the Members’ elections provided in Section 2.3,
this Section, and Section 4.8, and except to the extent permitted under Section 3.6 and Section
414(v) of the Code, the Basic Contributions and the elective deferrals (within the meaning of
Section 402(g)(3) of the Code) under all other plans, contracts and arrangements of the Employer on
behalf of any Member for any calendar year shall not exceed the dollar limitation contained in
Section 402(g) of the Code in effect for such calendar year. If a Member elects to have such Basic
Contributions made on his behalf, his Compensation shall be reduced by the percentage he elects
pursuant to the terms of the Compensation reduction authorization described in Section 2.3 or 4.8.
Unless specifically provided otherwise in the Plan, each Member who is an Eligible Employee may
elect to have Basic Contributions made on his behalf to the Plan. Notwithstanding the foregoing
provisions of this Section 3.1, Basic Contributions made with respect to a Plan Year on behalf of
Highly Compensated Employees shall not exceed the limitations set forth in Section 4.1.

3.2 Matching Contributions.

	 	(a)	 	Each Employer shall cause to be paid to the Trustee as its Matching
Contribution hereunder for each payroll period an amount which equals the sum of (i)
100 percent of the Basic Contributions for such payroll period which are attributable
to the first three percent of the Compensation of each Member, and (ii) 50 percent of
the Basic Contributions for such payroll period which are attributable to amounts in
excess of three percent, but not in excess of six percent, of the Compensation of each
Member; provided, however, that Matching Contributions shall not be made with respect
to any catch-up contributions made pursuant to Section 3.6.
	 
	 	(b)	 	In addition to the Matching Contributions made pursuant to Paragraph (a) above,
for each Plan Year each Employer shall cause to be paid to the Trustee, as additional
Matching Contributions hereunder, with respect to each Member of the Plan who made
Basic Contributions during such Plan Year, an amount equal to the difference, if any,
between (1) the sum of (A) 100% of the Basic Contributions for such Plan Year which are
attributable to the first three percent of the Compensation of such Member and (B) 50
percent of the Basic Contributions for such Plan Year which are attributable to amounts
in excess of three percent, but not in excess of six percent, of the Compensation of
such Member, and (2) the Matching Contributions for such Member for such Plan Year that
were made pursuant to Paragraph (a) above.

-16-

 

3.3 Rollover Contributions.

With the approval of the Company and in accordance with procedures established by the Company, a
Member may elect to make a Rollover Contribution to the Plan by delivering, or causing to be
delivered, to the Trustee the assets in cash which constitute such Rollover Contribution at such
time or times and in such manner as shall be specified by the Company. Upon receipt by the
Trustee, such assets shall be credited to a Rollover/Transfer Account established on behalf of such
Member and shall be deposited in the Fund or Funds selected by the Member as indicated on his
investment election filed with the Company by the Member. Such election shall specify a
combination of investment selections among such Funds, in increments of integral percentages which,
in the aggregate, equal 100 percent. A Rollover Contribution by a Member pursuant to this Section
3.3 shall not be deemed to be a contribution of such Member for any purpose of the Plan and shall
be fully vested in the Member at all times.

3.4 Transferred Contributions.

The Company may cause the transfer to the Trustee of funds representing the vested account balances
(hereinafter referred to as “Transferred Contributions”) of Members held by a funding agent of a
tax-qualified plan (hereinafter referred to as a “transferor plan”) in which such Members
previously participated; provided, however, that (i) such transfer shall be made at such time or
times and in such manner as shall be specified by the Company in accordance with procedures
established by the Company; (ii) no such transfer shall be permitted from a transferor plan on
behalf of a Member who was at any time a five percent owner of the employer maintaining such
transferor plan; and (iii) no portion of such transfer shall be composed of assets attributable to
deductible employee contributions. The Trustee shall credit the Rollover/Transfer Account of any
Member on whose behalf such funds were transferred and shall deposit such funds in the Fund or
Funds selected by the Member as indicated on his investment election filed with his Employer by
such Member. Such election shall specify a combination of investment selections among the Funds,
in increments of integral percentages which, in the aggregate, equal 100 percent. The portion of
the Rollover/Transfer Account of a Member attributable to Transferred Contributions shall be fully
vested in such Member at all times.

3.5 Company Retirement Contributions.

Each Employer shall cause to be paid to the Trustee as its Company Retirement Contribution
hereunder for each month an amount equal to the sum of the product of each Participating Unit IAR
Member’s Contribution Hours during each Pay Period that ends within such month multiplied by the
applicable Contribution Rate minus the forfeitures applicable to such Participating Unit pursuant
to Section 7.3.

3.6 Catch-Up Contributions.

All Eligible Employees who are eligible to make Basic Contributions to the Plan pursuant to Section
3.1 above for a Plan Year and who will have attained age 50 before the close of such Plan Year
shall be eligible to make catch-up contributions to the Plan for such Plan Year 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

-17-

 

implementing the required limitations of Sections 402(g) and 415 of the Code, as described,
respectively, in Sections 3.1 and 17.3 of the Plan. 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 made by a Member pursuant to this Section 3.6 shall be
treated as Basic Contributions for all purposes of the Plan except as otherwise specifically
provided.

3.7 Profit Sharing Contributions.

Each Employer shall cause to be paid to the Trustee as its Profit Sharing Contribution hereunder
for each Plan Year in which the Company meets or exceeds its financial objectives for such Plan
Year, as established and determined in the sole discretion of the Board of Directors of the
Company, an amount which equals 2% of the Compensation received by each Profit Sharing Member for
such Plan Year; provided, however, that a Profit Sharing Member must be employed by such Employer
as of the last day of such Plan Year; and provided, further, however, that any Profit Sharing
Member whose employment with the Employer terminates during such Plan Year on account of such
Member’s Retirement, death or Permanent and Total Disability shall be entitled to receive a Profit
Sharing Contribution (if any) for such Plan Year, determined as provided above. Profit Sharing
Contributions shall be made without regard to current or accumulated profits of the Employer.
Notwithstanding the foregoing, the Plan is intended to qualify as a profit sharing plan for
purposes of sections 401(a), 402, 412, and 417 of the Code.

3.8 Effect of Plan Termination or Withdrawal.

Notwithstanding any other provision of the Plan to the contrary, the termination of the Plan or the
withdrawal of an Employer from the Plan shall terminate the liability of the Employer or such
Employer, respectively, to make further Matching Contributions, Profit Sharing Contributions and
Company Retirement Contributions hereunder.

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ARTICLE IV

ADMINISTRATION OF CONTRIBUTIONS

4.1 Limitations on Basic Contributions.

	 	(a)	 	The Plan shall utilize the safe harbor method of satisfying the “actual
deferral percentage” test set forth in Section 401(k)(3) of the Code pursuant to
Section 401(k)(12) of the Code and Internal Revenue Service Notices 98-52 and 2000-3,
and shall be considered to be using the “current year testing method” as such term is
defined in Internal Revenue Service 98-1. If, for any Plan Year, the Company
determines that the Plan did not satisfy the conditions for such safe harbor method,
one of the ‘actual deferral percentage’ tests set forth in Section 401(k)(3) of the
Code and the Treasury regulations and other guidance issued thereunder must be met for
such Plan Year. Such testing shall utilize the current year testing method as such
term is defined in Internal Revenue Service Notice 98-1. The Company may elect, in
accordance with applicable Treasury regulations, to treat Matching Contributions to the
Plan as Basic Contributions for the purposes of meeting these requirements.
	 
	 	(b)	 	Anything to the contrary herein notwithstanding, if, for any Plan Year, the
aggregate Basic Contributions made by the Employer on behalf of Highly Compensated
Employees exceeds the maximum amount of Basic Contributions permitted on behalf of such
Highly Compensated Employees pursuant to Section 4.1(a), an excess amount shall be
determined by reducing Basic Contributions made on behalf of Highly Compensated
Employees in order of their highest actual deferral percentages in accordance with
Section 401(k)(8)(B)(ii) of the Code and the Treasury regulations thereunder. Once
determined, such excess shall be distributed to Highly Compensated Employees in order
of the highest dollar amounts contributed on behalf of such Highly Compensated
Employees in accordance with Section 401(k)(8)(C) of the Code and the Treasury
regulations thereunder before the end of the next following Plan Year.

4.2 Excess Elective Deferrals.

If a Member who had Basic Contributions made on his behalf for a Plan Year files with the Company,
within the time limit prescribed by the Company after the end of such Plan Year, a written
statement, on a form acceptable to the Company, that he has elective deferrals within the meaning
of Section 402(g) of the Code for the taxable year in excess of the dollar limitation on elective
deferrals in effect for such taxable year, and specifying the amount of such excess the Member
claims as allocable to the Plan, the amount of such excess, adjusted for income or loss
attributable to such excess elective deferral, shall be distributed to the Member by April 15 of
the year following the year of the excess elective deferral and Matching Contributions thereon
shall be forfeited. Distributions pursuant to this Section 4.2 shall be made proportionately from
the Separate Accounts to which Basic Contributions were made for such Plan Year.

-19-

 

4.3 Limitation on Matching Contributions.

	 	(a)	 	The Plan shall utilize the safe harbor method of satisfying the “actual
contribution percentage” test set forth in Section 401(m)(2) of the Code pursuant to
Section 401(m)(11) of the Code and Internal Revenue Service guidance issued thereunder,
and shall be considered to be using the “current year testing method” as such term is
defined in Internal Revenue Service 98-1. If, for any Plan Year, the Company
determines that the Plan did not satisfy the conditions for such safe harbor method,
one of the “actual contribution percentage” tests set forth in Section 401(m)(2) of the
Code and the Treasury regulations and other guidance issued thereunder must be met for
such Plan Year. Such testing shall utilize the current year testing method as such
term is defined in Internal Revenue Service Notice 98-1. The Company may elect, in
accordance with applicable Treasury regulations, to treat Basic Contributions to the
Plan as Matching Contributions for the purposes of meeting these requirements.
	 
	 	(b)	 	Anything to the contrary herein notwithstanding, if, for any Plan Year, the
aggregate amount of Matching Contributions and qualified nonelective contributions
allocated to the Separate Accounts of Highly Compensated Employees exceeds the maximum
amount of such Matching Contributions and qualified nonelective contributions permitted
on behalf of such Highly Compensated Employees pursuant to Section 4.3(a), an excess
amount shall be determined by reducing Matching Contributions made on behalf of Highly
Compensated Employees in order of their highest contribution percentages in accordance
with Section 401(m)(6)(B)(ii) of the Code and Treasury regulations thereunder. Once
determined, such excess shall be distributed to Highly Compensated Employees in order
of the highest dollar amounts contributed on behalf of such Highly Compensated
Employees in accordance with Section 401(m)(6)(C) of the Code and the Treasury
regulations thereunder (or, if such excess contributions are forfeitable, they shall be
forfeited) before the end of the next following Plan Year. Such testing shall utilize
the current year testing method as such term is defined in Internal Revenue Service
Notice 98-1. Notwithstanding any distributions pursuant to the foregoing provisions,
excess contributions shall be treated as Annual Additions for purposes of Article XVII.
Distributions pursuant to this Section 4.3(b) shall be made proportionately from
Separate Accounts to which excess contributions were made for such Plan Year.

4.4 Delivery of Contributions.

Each Employer shall cause to be delivered to the Trustee all Basic, Matching, Company Retirement,
Profit Sharing Rollover, and Transferred Contributions made in accordance with the provisions of
Article III as soon as reasonably practicable; provided, however, that Basic Contributions elected
by each Member shall be deducted from his Compensation for each payroll period and shall be paid by
the Employer to the Trust as of the earliest date on which such contributions can reasonably be
segregated from the Employer’s general assets; and further provided, however, that in no event
shall such date occur later than the fifteenth (15th) business day of the month following the month
in which such contribution amounts would otherwise have

-20-

 

been payable to the Member in cash; and further provided, however, that Matching Contributions with
respect to Basic Contributions made in accordance with Section 3.2 during a Plan Year quarter shall
be delivered to the Trustee no later than the last day of the Plan Year quarter following the Plan
Year quarter during which such Basic Contributions were made.

4.5 Allocation of Matching Contributions.

The Matching Contributions of an Employer for any month shall be considered allocated to the
Members’ Matching Accounts for whom such contributions are made no later than the last day of the
Plan Year for which they are made, as determined pursuant to Section 3.2, except as provided in
Section 4.7.

4.6 Allocation of Company Retirement Contributions.

The Company Retirement Contributions of an Employer for any month shall be allocated as of the date
such contribution is received by the Trust to the IAR Accounts of the Members for whom such
contribution is made.

4.7 Allocation of Profit Sharing Contributions. 

The Profit Sharing Contribution of an Employer for any Plan Year shall be allocated as of the date
such contribution is received by the Trust to the Profit Sharing Accounts of the Profit Sharing
Members for whom such contribution is made.

4.8 Crediting of Contributions.

Subject to the provisions of Article VII, contributions made to the Plan shall be credited to the
Separate Accounts of a Member in the following manner:

	 	(a)	 	The amount of Basic Contributions made on behalf of a Member shall be credited
to such Member’s Basic Account as of the date such contribution is received by the
Trust and shall be invested in the Fund or Funds selected by the Member in accordance
with the provisions of Section 5.2.
	 
	 	(b)	 	The amount of Matching Contributions allocated to a Member shall be credited to
such Member’s Matching Account as of the date such contribution is received by the
Trust and shall be invested in the Company Stock Fund subject to the provisions of
Section 5.3.
	 
	 	(c)	 	The amount of Company Retirement Contributions allocated to an IAR Member shall
be credited to such Member’s IAR Account as of the date such contribution is received
by the Trust and shall be invested in the Fund or Funds selected by the Member in
accordance with the provisions of Section 5.2.
	 
	 	(d)	 	The amount of Profit Sharing Contributions allocated to a Profit Sharing Member
shall be credited to such Member’s Profit Sharing Account as of the date such
contribution is received by the Trust and shall be invested in the Fund or Funds
selected by the Member in accordance with the provisions of Section 5.2.

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4.9 Changes in Reduction and Deduction Authorizations.

Effective as of any payroll period, any Member may suspend his Basic Contributions or change the
percentage of his Compensation which is contributed as Basic Contributions in accordance with the
procedures and within the time period prescribed by the Plan Administrator. Notwithstanding the
foregoing, any Member who changes the percentage of his Basic Contributions shall be limited to the
percentage of his Compensation which does not exceed the applicable limitations set forth in
Section 3.1, and, if applicable, Section 3.6. If the Company determines that a reduction of
Compensation deferral elections made pursuant to Sections 2.3, 3.1, and this Section 4.9 is
necessary to insure that the restrictions set forth in Sections 3.1 and 4.1, 4.3 or 17.3 are met
for any Plan Year, the Company may reduce the elections of affected Members on a temporary and
prospective basis in such manner as the Company shall determine.

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ARTICLE V

DEPOSIT AND INVESTMENT OF CONTRIBUTIONS

5.1 Deposit of Contributions.

Any Basic Contributions of a Member which are credited to a Member’s Basic Account, any Company
Retirement Contributions which are credited to an IAR Member’s IAR Account, and any Profit Sharing
Contributions which are credited to a Profit Sharing Member’s Profit Sharing Account shall be
deposited by the Trustee in such Fund or Funds selected by such Member in accordance with the
provisions of Section 5.2. Any Matching Contributions which are credited to a Member’s Matching
Account shall be deposited by the Trustee in the Company Stock Fund. The Trustee shall have no
duty to collect or enforce payment of contributions or inquire into the amount or method used in
determining the amount of contributions, and shall be accountable only for contributions received
by it.

5.2 Investment of Accounts.

	 	(a)	 	Each Member shall designate, in accordance with the procedures established by
the Company, the manner in the amounts allocated to his Basic, IAR, Profit Sharing and
Rollover/Transfer Accounts shall be invested from among the Funds made available from
time to time by the Company pursuant to Section 6.2. A Member may designate one of
such Funds for all of the contributions to his Basic, IAR, Profit Sharing and
Rollover/Transfer Accounts, or he may split the investment of the amounts allocated to
such Accounts among such Funds in such increments as the Company may prescribe. If a
Member fails to make a designation of 100% of the contributions to his Basic, IAR,
Profit Sharing and Rollover/Transfer Accounts, such nondesignated contributions shall
be invested in the Fund or Funds designated by the Company from time to time in a
uniform and nondiscriminatory manner.
	 
	 	(b)	 	A Member may change his investment designation for future contributions to be
allocated to his Basic, IAR, Profit Sharing and Rollover/Transfer Accounts. Any such
change shall be made in accordance with the procedures established by the Company, and
the frequency of such changes may be limited by the Company.
	 
	 	(c)	 	A Member or Inactive Member may convert his investment designation with respect
to amounts already allocated to any of his Separate Accounts that are invested in one
of the Funds; provided, however, that such conversion may be made only to one or more
of those Funds made available by the Company pursuant to Section 6.2. Any such
conversion shall be made in accordance with the procedures established by the Company,
and the frequency of such conversions may be limited by the Company.

5.3 Elimination of Funds.

Notwithstanding any provision in this Article V to the contrary, in the event any one or more of
the Funds is eliminated as an investment fund by the Company, each Member and Inactive Member who
has an investment election in effect which designates such investment fund for the

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investment of amounts allocated to such individual’s Separate Accounts, shall designate a
continuing Fund or Funds made available by the Company pursuant to Section 6.2 for the investment
of such amounts; provided, however, that in the event such individual fails to make such a
designation, such contributions or amounts shall be invested in a the Fund or Funds designated by
the Company in a uniform and nondiscriminatory manner.

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ARTICLE VI

ESTABLISHMENT OF FUNDS AND MEMBERS’ ACCOUNTS

6.1 Investment Responsibility.

The Plan is intended to constitute a plan described in Section 404(c) of ERISA and DOL Regs.
Section 2550.404c-1 and insofar as the Plan complies with said Section 404(c), Plan fiduciaries
shall be relieved of liability for any losses which are the direct result of investment
instructions given by Members, Inactive Members, and Beneficiaries.

6.2 Establishment and Maintenance of Funds.

The Company shall cause at least three Funds, other than the Company Stock Fund, to be established
and maintained at all times. Each such Fund shall be diversified and shall have different risk and
return characteristics from the other Funds. Any Fund which invests primarily in investments with
restrictions regarding Funds to which investment transfers may be made or to which a minimum
investment period is applicable shall not be considered as one of such requisite three Funds.

6.3 Company Stock Fund.

Except as specifically provided otherwise, the assets of the Company Stock Fund shall be invested
by the Trustee primarily in Company Stock. The Trustee shall receive Company Stock from the
Company or purchase Company Stock in the market; provided, however, that any such purchase shall be
made only in exchange for fair market value as determined by the Trustee. The Company Stock Fund
may, from time to time, be invested in a short-term investment fund managed by the Trustee.

6.4 Income on Trust Funds.

Unless specifically provided otherwise in the Plan or the Trust Agreement, any dividends, interest,
distributions, or other income received by the Trustee in respect of a Fund shall be reinvested by
the Trustee in the Fund with respect to which such income was received by it.

6.5 Separate Accounts.

Each Member shall have established in his name Separate Accounts which shall be dependent upon the
manner in which the assets of his Basic, Supplemental, Matching, IAR, Profit Sharing, and
Rollover/Transfer Accounts are invested.

6.6 Voting of Company Stock in the Company Stock Fund.

Each Member or Beneficiary who has shares of Company Stock allocated to his Matching Account shall
be a named fiduciary with respect to the voting of Company Stock held thereunder and shall have the
following powers and responsibilities:

	 	(a)	 	Prior to each annual or special meeting of the shareholders of the Company, the
Company shall cause to be sent to each Member and Beneficiary who has

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	 	 	 	Company Stock allocated to his Matching Account and invested in the Company Stock
Fund under the Plan a copy of the proxy solicitation material therefor, together
with a form requesting confidential voting instructions, with respect to the voting
of such Company Stock as well as the voting of Company Stock for which the Trustee
does not receive instructions. Each such Member and/or Beneficiary shall instruct
the Trustee to vote the number of such uninstructed shares of Company Stock equal to
the proportion that the number of shares of Company Stock allocated to his Matching
Account and invested in the Company Stock Fund bears to the total number of shares
of Company Stock in the Plan for which instructions are received. Upon receipt of
such a Member’s or Beneficiary’s instructions, the Trustee shall then vote in
person, or by proxy, such shares of Company Stock as so instructed.
	 
	 	(b)	 	The Company shall cause the Trustee to furnish to each Member and Beneficiary
who has Company Stock allocated to his Matching Account and invested in the Company
Stock Fund under the Plan notice of any tender or exchange offer for, or a request or
invitation for tenders or exchanges of, Company Stock made to the Trustee. The
Trustee shall request from each such Member and Beneficiary instructions as to the
tendering or exchanging of Company Stock allocated to his Matching Account and invested
in the Company Stock Fund and the tendering or exchanging of Company Stock for which
the Trustee does not receive instructions. Each such Member shall instruct the Trustee
with respect to the tendering or exchanging of Company Stock for which the Trustee does
not receive instructions. Each such Member shall instruct the Trustee with respect to
the tendering or exchanging of the number of such uninstructed shares of Company Stock
equal to the proportion that the number of the shares of Company Stock allocated to his
Matching Account and invested in the Company Stock Fund bears to the total number of
shares of Company Stock in the Plan for which instructions are received. The Trustee
shall provide Members and Beneficiaries with a reasonable period of time in which they
may consider any such tender or exchange offer for, or request or invitation for
tenders or exchanges of, Company Stock made to the Trustee. Within the time specified
by the Trustee, the Trustee shall tender or exchange such Company Stock as to which the
Trustee has received instructions to tender or exchange from Members and Beneficiaries.
	 
	 	(c)	 	Instructions received from Members and Beneficiaries by the Trustee regarding
the voting, tendering, or exchanging of Company Stock shall be held in strictest
confidence and shall not be divulged to any other person, including officers or
employees of the Company, except as otherwise required by law, regulation or lawful
process.

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ARTICLE VII

VESTING

7.1 Vesting in Basic, Supplemental, Matching, and Rollover/Transfer Accounts.

A Member shall be 100 percent vested in the balance of his Basic, Supplemental, Matching, and
Rollover/Transfer Accounts.

7.2 Vesting in Company Retirement and Profit Sharing Contributions.

Effective except as specified in an otherwise applicable Addendum with respect to an IAR Member’s
vested interest in the balance of his IAR Account, a Member shall be vested in the balance of his
IAR Account and/or Profit Sharing Account in accordance with the following schedule:

	 	 	 
	Years of Vesting Service
	 	Vested Percentage

	Less than 5
	 	0%
	5 or more
	 	100%

Notwithstanding the foregoing, except as specified otherwise in an applicable Addendum, any
IAR Member who was credited with three or more Years of Vesting Service as of May 1, 2003
shall be vested in the balance of his IAR Account in accordance with the following vesting
schedule:

	 	 	 
	Years of Vesting Service
	 	Vested Percentage

	3 years but less than 4 years
	 	33%
	4 years but less than 5 years
	 	67%
	5 years or more
	 	100%

Notwithstanding the foregoing, upon the occurrence of one of the events hereinafter listed
while a Member is an Employee, such Member shall be 100% vested in the balance of his IAR
Account and/or Profit Sharing Account, as applicable:

	 	(i)	 	attainment of Retirement Age;
	 
	 	(ii)	 	death; or
	 
	 	(iii)	 	Permanent and Total Disability.

7.3 Forfeitures.

At the time a Member or Inactive Member terminates employment with the Company and its Controlled
Entities prior to attaining Retirement Age for any reason other than Permanent and Total Disability
or death, only his vested interest in his IAR Account and/or his Profit Sharing Account (as
applicable) shall be distributable pursuant to the provisions of Sections 10.2, 10.3, and 10.4 and
his unvested interest shall be governed by the following provisions.

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	 	(a)	 	The unvested portion of such a Member’s IAR Account and/or his Profit Sharing
Account (as applicable) shall be forfeited at the earliest of the following:

	 	(i)	 	the date on which the Member’s entire vested interest in his
IAR Account and/or his Profit Sharing Account (as applicable) is distributed in
a single sum or is considered distributed under paragraph (c) below; or
	 
	 	(ii)	 	with respect to the unvested portion of the Member’s IAR
Account, the end of the fifth consecutive Break in Service, or, with respect to
the unvested portion of the Member’s Profit Sharing Account, the date such
Member completes a Period of Severance of five consecutive years; or
	 
	 	(iii)	 	the date of the Member’s death.

	 	(b)	 	Forfeitures from IAR Accounts shall be applied against the Employer’s next
contribution obligation with respect to Company Retirement Contributions under the
Plan. Forfeitures from Profit Sharing Accounts shall be applied against the Employer’s
next contribution obligation (if any) with respect to Profit Sharing Contributions.
	 
	 	(c)	 	A zero vested balance of a Member or Inactive Member shall be treated as though
it were distributed immediately when employment terminates.
	 
	 	(d)	 	If a Member or Inactive Member is reemployed prior to five consecutive Breaks
in Service but after a forfeiture under paragraph (a) above because of an imputed or
full distribution, the forfeited amount(s), unadjusted for interim gains or losses,
shall be subject to restoration under paragraphs (f) and (g). No restoration shall
occur, if reemployment occurs after five consecutive Breaks in Service (in the case of
amounts forfeited from such Member’s IAR Account) or if reemployment occurs after the
Member completes a Period of Severance of five consecutive years (in the case of
amounts forfeited from such Member’s Profit Sharing Account). Further, no restoration
shall occur if repayment does not occur under paragraph (g).
	 
	 	(e)	 	If a Member or Inactive Member who is not 100% vested in his IAR Account
receives a distribution of the vested portion of his IAR Account prior to incurring
five consecutive Breaks in Service with the exception of distributions under paragraph
(a)(i), (a)(iii), or (c) above, the vested portion of his IAR Account at any time prior
to five consecutive Breaks in Service shall not be less than an amount (X) determined
in the following manner: X = P(AB + D) — D. For purposes hereof, P is the vested
percentage applicable to such Account at the relevant time; AB is the balance of such
Account at the relevant time; and D is the amount of distributions from such Account.
	 
	 	(f)	 	Amount(s) subject to restoration under paragraph (d) shall be credited to the
Member’s IAR Account and/or Profit Sharing Account (as applicable) upon reemployment
and shall be made from the assets of a special contribution of the

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	 	 	 	Company which shall not constitute an “annual addition” within the meaning of
Section 415 of the Code.
	 
	 	(g)	 	A reemployed Member who is rehired under the conditions set forth in paragraph
(d) may repay the full amount previously distributed from his partially vested IAR
Account and/or Profit Sharing Account (as applicable) as follows:

	 	(1)	 	Repayment shall be made in a single sum.
	 
	 	(2)	 	Repayment may only be made while the Member remains employed
and may not be made later than five years after reemployment.
	 
	 	(3)	 	Repayment cannot be made in whole or in part by rollover from
another plan or individual retirement account.

7.4 Election of Former Vesting Schedule.

In the event the Company adopts an amendment to the Plan that directly or indirectly affects the
computation of a Member’s nonforfeitable interest in his Matching Account, and/or Profit Sharing
Account (as applicable) any Member who is credited with three or more years of Vesting Service
shall have a right to have his nonforfeitable interest in such account as of the effective date of
the amendment continue to be determined under the vesting schedule in effect prior to such
amendment rather than under the new vesting schedule, unless the nonforfeitable interest of such
Member in such account under the Plan, as amended, at any time is not less than such account
interest determined without regard to such amendment. A Member shall exercise such right by giving
written notice of his exercise thereof to the Company within 60 days after the latest of (i) the
date he received notice of such amendment from the Company, (ii) the effective date of the
amendment, or (iii) the date the amendment is adopted. Notwithstanding the foregoing provisions of
this Section 7.4, the vested interest of each Member on the effective date of such amendment shall
not be less than his vested interest under the Plan through the later of the effective date or the
date the Plan amendment is adopted.

7.5 Vesting Service.

Vesting Service shall be credited to a Member in accordance with the following provisions:

	 	(a)	 	Vesting Service prior to April 1, 1995. Each Eligible Employee shall
be credited with years of Vesting Service for purposes of the Plan with respect to any
periods of employment prior to April 1, 1995 in an amount equal to the years of Vesting
Service, with which he had been credited in accordance with the Cooper Savings Plan
with respect to his IAR Account in effect on April 1, 1995.
	 
	 	(b)	 	Vesting Service on and after April 1, 1995. Subject to the provisions
of Sections 7.7 and 7.8, for purposes of determining an IAR Member’s Vested Interest in
his IAR account, such IAR Member who is an Eligible Employee on or after April 1, 1995,
shall be credited with a year of Vesting Service for each Plan Year on and after such
date for which he is credited with at least 1,000 Hours of Service; provided, however,
that if he is credited with less than 1,000 Hours of Service for

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	 	 	 	any Plan Year, he shall not be credited with a partial year of Vesting Service.
Subject to the provisions of Sections 7.7 and 7.8, for purposes of determining a
Profit Sharing Member’s vested interest in his Profit Sharing Account, each person
who is an Eligible Employee on and after May 1, 2003 shall be credited with Vesting
Service in an amount equal to his aggregate Periods of Service whether or not such
Periods of Service are completed consecutively or were completed prior to May 1,
2003. Notwithstanding anything to the contrary in the preceding sentence, (1) if a
Member terminates his Service (at a time other than during a leave of absence) and
subsequently resumes his Service, if his Reemployment Date is within twelve months
of his Severance Date, such Period of Severance shall be treated as a Period of
Service for purposes of this Section, and (2) if a Member terminates his Service
during a leave of absence and subsequently resumes his Service, if his Reemployment
Date is within twelve months of the beginning of such leave of absence, such Period
of Severance shall be treated as a Period of Service for purposes of the preceding
sentence.
	 
	 	(c)	 	Vesting Service With Respect to the Plan Year Beginning and Ending on
December 31, 2001. Notwithstanding anything to the contrary herein, for the
purposes of determining the amount of Vesting Service with which a Member shall be
credited during the series of Plan Years beginning on December 30, 2000 and ending on
December 31, 2002, the Hours of Service credited to such Member during the Plan Year
beginning and ending on December 31, 2001 shall be counted together with the Hours of
Service completed by the Member during the Plan Year beginning on December 31, 2000 and
ending on December 30, 2001 and also during the Plan Year beginning on January 1, 2002
and ending on December 31, 2002.

7.6 Transfers.

Notwithstanding the provisions of Section 7.1, years of Vesting Service credited to a person shall
be subject to the following:

	 	(a)	 	Any person who transfers or re-transfers to employment with an Employer as an
Eligible Employee directly from other employment (i) with the Employer in a capacity
other than as an Employee or (ii) with a Controlled Entity, shall be credited with
years of Vesting Service, for such other employment as if such other employment were
employment with an Employer as an Eligible Employee for the entire period of
employment.
	 
	 	(b)	 	Any person who transfers from employment with an Employer as an Eligible
Employee directly to other employment (i) with an Employer in a capacity other than as
an Eligible Employee or (ii) with a Controlled Entity, shall be deemed by such transfer
not to lose his credited years of Vesting Service, and shall be deemed not to retire or
otherwise terminate his employment until such time as he is no longer in the employment
of a Controlled Entity, at which time he shall become entitled to benefits, if he is
otherwise eligible therefor under the provisions of the Plan; provided, however, that
up to such time he shall receive

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	 	 	 	credit for years of Vesting Service for such other employment as if such other
employment were employment with the Employer as an Eligible Employee.
	 
	 	(c)	 	Any person who transfers to employment with an Employer as an Eligible Employee
directly from employment with Cooper Industries, Inc. in a capacity covered by the
Cooper Savings Plan shall be credited with the Hours of Service with which he was
credited under the Cooper Savings Plan for the period from January 1, 1995 through
March 31, 1995 with respect to his IAR Account for the 1995 Plan Year under the Plan
with respect to his IAR Account.

7.7 Loss and Reinstatement of Years of Vesting Service.

Except as otherwise specifically provided in this Section 7.7, an IAR Member’s years of Vesting
Service to be taken into account in determining his vested interest in his IAR Account shall be
lost if he retires or if his employment with an Employer and its Controlled Entities terminates for
any other reason and, if he thereafter returns to employment as an Eligible Employee, he shall be
treated for Plan purposes as a new Eligible Employee. Notwithstanding the foregoing provisions, a
retired or former IAR Member who returns to employment with an Employer or a Controlled Entity
shall be reinstated with the years of Vesting Service with which he was credited at the time of his
prior retirement or other termination of employment if:

	 	(a)	 	he was eligible for a benefit from his IAR Account at the time of his previous
retirement or other termination of employment, or
	 
	 	(b)	 	he terminated his employment before satisfying the conditions of eligibility
for a benefit from his IAR Account and the number of his consecutive one-year Breaks in
Service is less than five or the aggregate number of his years of Vesting Service at
the time of such prior termination of employment was greater than the number of his
consecutive one-year Breaks in Service (the aggregate number of years of Vesting
Service not to include any years of Vesting Service not required to be taken into
account due to previous Breaks in Service); provided, however, that if he should return
to employment with an Employer or a Controlled Entity in a capacity other than as an
Eligible Employee, his period of employment shall be treated for purposes of the Plan
in accordance with the provisions of Section 7.6(b).

Except as otherwise specifically provided in this Section 7.7, a Profit Sharing Member’s years of
Vesting Service to be taken into account in determining his vested interest in his Profit Sharing
Account shall be lost if he retires or if his employment with an Employer and its Controlled
Entities terminates for any other reason and, if he thereafter returns to employment as an Eligible
Employee, he shall be treated for Plan purposes as a new Eligible Employee. Notwithstanding the
foregoing provisions, a retired or former Profit Sharing Member who returns to employment with an
Employer or a Controlled Entity shall be reinstated with the years of Vesting Service with which he
was credited at the time of his prior retirement or other termination of employment if:

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	 	(a)	 	he was eligible for a benefit from his Profit Sharing Account at the time of
his previous retirement or other termination of employment, or
	 
	 	(b)	 	he terminated his employment before satisfying the conditions of eligibility
for a benefit from his Profit Sharing Account and he is reemployed by an Employer or a
Controlled Entity before he incurs a Period of Severance that equals or exceeds the
greater of five years of his aggregate Period of Service completed before such Period
of Severance.

Years of Vesting Service which are reinstated under this Section 7.7 shall be reinstated in
accordance with and subject to all applicable provisions of the Plan with respect to reemployment.

7.8 Finality of Determinations.

Notwithstanding anything to the contrary contained in this Article VII, there shall be no
duplication of years of Vesting Service credited to an Employee for any one period of his
employment with an Employer or a Controlled Entity. All determinations with respect to the
crediting of years of Vesting Service under the Plan shall be made on the basis of the records of
the Employers, and all determinations so made shall be final and conclusive upon Eligible
Employees, former Eligible Employees, and all other persons claiming a benefit interest under the
Plan. In addition, the Company shall have the exclusive responsibility with respect to determining
the amount of Basic, Matching, Company Retirement, and Profit Sharing Contributions, and any
adjustment thereto to comply with the terms of the Plan or the Code. A determination so made shall
be final and conclusive upon the Employer, all Members, and Beneficiaries.

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ARTICLE VIII

WITHDRAWALS WHILE EMPLOYED

8.1 Withdrawals Prior to Age 591⁄2.

Subject to the provisions in this Section 8.1, a Member or an Inactive Member who is receiving
compensation from a Controlled Entity and who has not attained age
591⁄2, may:

	 	(a)	 	file a written request with the Company in the form and within the time period
prescribed by the Company for a withdrawal of an amount credited to his Separate
Accounts attributable to Basic, Rollover, Supplemental and Transferred Contributions.
Such withdrawal shall be permitted only if (i) the reason for the withdrawal is to
enable the Member to meet an immediate and heavy financial need which cannot be met
from other sources, including but not limited to sources outside the Plan and all other
accounts and available loans under the Plan, and which meet the requirements of Section
401(k) of the Code and regulations thereunder, and (ii) would not exceed the lesser of
the balance of such Separate Accounts or the amount required to meet the need for which
the withdrawal is requested. The amount required to meet the 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. If
the Company approves such request, such withdrawal shall be made from a Member’s
Separate Accounts in accordance with procedures established by the Company. A
withdrawal shall be deemed to be made on account of an immediate and heavy financial
need of a Member if the withdrawal is for:

	 	(1)	 	Expenses for medical care described in section 213(d) of the
Code previously incurred by the Member, the Member’s spouse, or any dependents
of the Member (as defined in section 152 of the Code) or necessary for those
persons to obtain medical care described in section 213(d) of the Code and not
reimbursed or reimbursable by insurance;
	 
	 	(2)	 	Costs directly related to the purchase of a principal residence
of the Member (excluding mortgage payments);
	 
	 	(3)	 	Payment of tuition and related educational fees, and room and
board expenses, for the next twelve months of post-secondary education for the
Member or the Member’s spouse, children, or dependents (as defined in section
152 of the Code);
	 
	 	(4)	 	Payments necessary to prevent the eviction of the Member from
his principal residence or foreclosure on the mortgage of the Member’s
principal residence; or
	 
	 	(5)	 	Such other financial needs that the Commissioner of Internal
Revenue may deem to be immediate and heavy financial needs through the
publication of revenue rulings, notices, and other documents of general
applicability.

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	 	 	 	The above notwithstanding, (1) withdrawals under this Paragraph from a Member’s
Basic Account shall be limited to the sum of the Member’s Basic Contributions to the
Plan, plus income allocable thereto and credited to the Member’s Basic Account as of
the Valuation Date coincident with or next preceding December 31, 1988, less any
previous withdrawals of such amounts.

	 	(b)	 	file a written request with the Company in the form and within the time period
prescribed by the Company for a withdrawal of an amount credited to his Supplemental
Account. Such withdrawal must be at least $500.00 (unless the value of the Member’s
Supplemental Account is less, in which case the withdrawal must equal the total value
of the Member’s Supplemental Account) and may only be made once in a calendar year.

8.2 Withdrawals After Age 591⁄2.

Subject to the provisions of this Section 8.2, a Member or an Inactive Member who is receiving
compensation from a Controlled Entity and who has attained at least age 591⁄2, may file a written
request with his Employer in the form and within the time period prescribed by the Company for a
withdrawal of an amount credited to his Separate Accounts; provided, however, than an IAR Member
may request a withdrawal of amounts credited to his IAR Account only to the extent of his vested
interest in such amounts, as determined in accordance with Section 7.2. A withdrawal made pursuant
to this Section 8.2 must be at least $500.00 (unless the aggregate value of the Member’s Separate
Accounts is less, in which case the withdrawal must equal the total aggregate value of the Member’s
Separate Accounts) and may only be made once in a calendar year, and shall be made from a Member’s
or Inactive Member’s Separate Accounts as elected by such Member or Inactive Member.

8.3 Form of Withdrawals.

All withdrawals made from Separate Accounts invested in the Funds, other than the Company Stock
Fund, shall be in the form of cash. All withdrawals made from Separate Accounts invested in the
Company Stock Fund shall be in the form of Company Stock or cash, as elected by the Member;
provided, however, that the value of any fractional shares of Company Stock shall be distributed in
the form of cash. Any withdrawal hereunder which constitutes an Eligible Rollover Distribution
shall be subject to the direct rollover election described in Section 10.9.

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ARTICLE IX

LOANS

9.1 Eligibility for Loan.

Upon application by (1) any Member who (a) is on the United States payroll of the Employer, (b) is
receiving compensation other than severance pay from a Controlled Entity, (c) has been
participating in the Plan for at least one year (provided, however, that the participation
requirement of this Clause (c) shall apply only for loans granted prior to January 1, 1998), and
(d) has not had an outstanding loan from the Plan for at least one month (an individual who is
eligible to apply for a loan under this Article being hereinafter referred to as a “Member” for
purposes of this Article), the Company may in its discretion direct the Trustee to make a loan or
loans to such Member. Such loans shall be made pursuant to the provisions of the Company’s written
loan procedure, which procedure is hereby incorporated by reference as a part of the Plan.

9.2 Maximum Loan.

	 	(a)	 	A loan to a Member may not exceed 50% of the nonforfeitable balance of such
Member’s Separate Accounts (excluding his IAR Account and Profit Sharing Account).
	 
	 	(b)	 	Paragraph (a) above to the contrary notwithstanding, the amount of a loan made
to a Member under this Article shall not exceed an amount equal to the difference
between:

	 	(i)	 	The lesser of $50,000 (reduced by the excess, if any, of (A)
the highest outstanding balance of loans from the Plan during the one-year
period ending on the day before the date on which the loan is made over (B) the
outstanding balance of loans from the Plan on the date on which the loan is
made) or one-half of the present value of the Member’s total nonforfeitable
accrued benefit under all qualified plans of the Employer or a Controlled
Entity; minus
	 
	 	(ii)	 	The total outstanding loan balance of the Member under all
other loans from all qualified plans of the Employer or a Controlled Entity.

	 	(c)	 	An IAR Member may not pledge his IAR Account as security for a loan pursuant to
this Article.

9.3 Operation of Article.

The provisions of this Article shall be applicable to loans granted on or renewed on or after May
1, 2003. Loans granted or renewed on or prior to such date shall be governed by the provisions of
the Plan as in effect prior to such date.

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ARTICLE X

DISTRIBUTION ON RETIREMENT OR OTHER TERMINATION OF EMPLOYMENT

10.1 Eligibility for Distribution.

Upon termination of employment with the Controlled Entities, each Member and Inactive Member shall
be entitled to receive the entire interest of his Basic, Supplemental, Matching, and
Rollover/Transfer Accounts and the vested interest of his IAR Account and/or Profit Sharing
Account, if any, in accordance with his provisions of Sections 10.2 and 10.3. Notwithstanding the
provisions of the Plan regarding availability of distributions from the Plan upon “termination of
employment,” a Member’s vested interest in his Separate Accounts shall be distributed on account of
the Member’s “severance from employment” as such term is used in Section 401(k)(2)(B)(i)(I) of the
Code. Distributions permitted under the Plan upon a Member’s “severance from employment” pursuant
to the preceding sentence shall apply for distributions after December 31, 2001 regardless of when
the severance from employment occurred.

10.2 Distribution of Separate Accounts.

Subject to the provisions of Section 10.3, the Company shall direct the Trustee to make
distribution to a Member or Inactive Member, who becomes eligible to receive the vested interest of
his Separate Accounts pursuant to the provisions of Section 10.1 in the manner hereinafter set
forth.

	 	(a)	 	Distributions of $5,000 or Less. If the value of the vested interest
of a Member, Inactive Member, Profit Sharing Member, or IAR Member, as the case may be,
in his Basic, Supplemental, Matching, IAR, Profit Sharing, and Rollover/Transfer
Accounts is $5,000 or less, distribution thereof shall be made to such a Member as soon
as practicable in a single sum payment.
	 
	 	(b)	 	Distributions of Over $5,000. If the value of the vested interest of a
Member, Inactive Member, Profit Sharing Member, or IAR Member, as the case may be, in
his Basic, Supplemental, Matching, IAR, Profit Sharing and Rollover/Transfer Accounts
is in excess of $5,000 such Member may elect to receive distribution of his Basic,
Supplemental, Matching, Profit Sharing, and Rollover/Transfer Accounts in a single sum
payment at any time prior to attainment of age 701⁄2. Notwithstanding the foregoing, no
such distribution may be made to a Member, Inactive Member, Profit Sharing Member or
IAR Member prior to Retirement Age, unless such Member and, in the case of an IAR
Member (or Member who was at any time an IAR Member), his spouse consent in writing to
such distribution. In the event that the vested interest of an IAR Member in his IAR
Account is in excess of $5,000, such IAR Member may elect to receive distribution of
his IAR Account in a single sum payment at any time prior to attainment of age 701⁄2;
provided, however, that such IAR Member waives distribution of the standard form of
benefit set forth below in paragraphs (1) and (2) of this Section 10.2(b) and if such
Member is married, his spouse consents in writing to such election and waiver and such
consent acknowledges the effect of such action and is witnessed by a notary public or a
Plan representative, unless a

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	 	 	 	Plan representative finds that such consent cannot be obtained because the spouse
cannot be located or because of other circumstances set forth in Section 401(a)(11)
of the Code and regulations issued thereunder. If the Basic, Supplemental,
Matching, IAR, Profit Sharing, and Rollover/Transfer Accounts of such a Member are
not distributed pursuant to the foregoing provisions, such Separate Accounts shall
be distributed with his IAR Account in the following manner:

	 	(1)	 	Married IAR Members. The standard form of benefit
payment of an IAR Account for any IAR Member who is married on the date his
Plan interest is to be distributable to him under the provisions of Section
10.1 and the foregoing provisions of Section 10.2(b) shall be a 50 percent
joint and survivor annuity. Such joint and survivor annuity shall be a
commercial annuity which is payable for the life of the IAR Member with a
survivor annuity for the life of the IAR Member’s surviving spouse equal to 50
percent of the amount of the annuity payable during the joint lives of the IAR
Member and such IAR Member’s surviving spouse. The standard joint and survivor
annuity shall be paid automatically as provided hereunder unless the IAR Member
elects to receive his benefit payments in another form during the election
period described in Section 10.2(b)(4)(iii); provided, however, that if
distribution is to be made prior to Retirement Age, it shall be made only with
the consent of the IAR Member and his spouse, if any; provided further that the
IAR Member’s spouse consents in writing to such election and the time of
benefit commencement thereof pursuant to the provisions of Section 10.2(b)(5).
Any such election may be revoked and subsequent elections may be made, or
revoked, at any time during such election period. If the IAR Member has
elected not to receive the standard joint and survivor annuity as provided
herein, such IAR Member’s benefit shall be paid in one of the benefit payment
forms under Section 10.2(b)(3), as selected by such IAR Member.
	 
	 	(2)	 	Unmarried IAR Members. The standard form of benefit
payment of an IAR Account for any IAR Member who is not married on the date his
Plan interest is to be distributable to him under the provisions of Section
10.1 and the foregoing provisions of Section 10.2(b), shall be a single life
annuity under Section 10.2(b)(3)(i), unless such IAR Member selects another
benefit payment form provided in Section 10.2(b)(3); provided, however, that if
distribution is to be made prior to Retirement Age, it shall be made only with
the consent of the IAR Member.
	 
	 	(3)	 	Optional Forms. Subject to the provisions of
paragraphs (a) and (b) of this Section 10.2(b), an IAR Member may elect to
receive his Separate Account in one of the following forms:

	 	(i)	 	A commercial annuity in the form of a single
life annuity for the life of such IAR Member;

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	 	(ii)	 	A commercial annuity in the form of a single
life cash refund annuity;
	 
	 	(iii)	 	A commercial annuity for a term certain of ten
years and continuous for the life of the IAR Member if he survives such
term certain;
	 
	 	(iv)	 	A commercial annuity payable for the life of
such Member with a survivor annuity for the life of his Beneficiary
which shall be equal to 50 percent, 75 percent, or 100 percent of the
annuity payable during the joint lives of the IAR Member and such IAR
Member’s Beneficiary;
	 
	 	(v)	 	A lump sum payment regardless of age; or
	 
	 	(vi)	 	A single life annuity commencing prior to the
earliest age as of which such IAR Member will become eligible for an
“old-age insurance benefit” under the federal Social Security Act,
adjusted so that an increased amount will be paid prior to such age and
a reduced amount thereafter; the purpose of this adjustment is to
enable the IAR Member to receive, from this Plan and under the federal
Social Security Act, an aggregate income in approximately a level
amount for life. Moreover, in the event the IAR Member so elects, if
such IAR Member dies before receiving payments aggregating the vested
amount of his Separate Accounts at his benefit commencement date, the
difference shall be paid in a single lump sum to his Beneficiary or if
there is none, to the executor or administrator of his estate.

	 	(4)	 	Notwithstanding the foregoing provisions of this Section
10.2(b), the following additional requirements must be satisfied in order for a
benefit to be paid pursuant to Section 10.2(b)(3):

	 	(i)	 	The benefit payment form described in Section
10.2(b)(3) above shall only be available if the present value of the
total payments actuarially expected to be made to the IAR Member shall
be more than 50 percent of the present value of the total payments
actuarially expected to be made to the IAR Member and his Beneficiary.
	 
	 	(ii)	 	The form of payment to the IAR Member or to the
IAR Member and his Beneficiary must be payable over a period of time
which does not exceed the longer of the life expectancy of the IAR
Member, or the joint and last survivor life expectancy of the IAR
Member and his Beneficiary.
	 
	 	(iii)	 	Subject to the provisions of Section
10.2(b)(5) with respect to any election described in Section
10.2(b)(3), the Company shall furnish

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	 	 	 	certain information, pertinent to such election, to each IAR Member
no less than thirty days (unless such thirty-day period is waived by
an affirmative election in accordance with applicable Treasury
regulations) and no more than ninety days before his Annuity Starting
Date. The furnished information shall include an explanation of (1)
the terms and conditions of the joint and survivor annuity, (2) the
IAR Member’s right to waive the standard joint and survivor annuity
and the effect of such election, (3) the rights of the IAR Member’s
spouse, if any, (4) the right to revoke such election and the effect
of such revocation, (5) a general description of the eligibility
conditions and other material features of the alternative forms of
benefit available pursuant to Section 10.2(b)(3), and (6) sufficient
additional information to explain the relative values of such
alternative forms of benefit. The period during which an IAR Member
may make or revoke such election shall be the ninety day period
ending on such IAR Member’s Annuity Starting Date provided that such
Election may also be revoked at any time prior to the expiration of
the seven-day period that begins the day after the information
required to be furnished to the IAR Member.

	 	(5)	 	In the event a benefit is subject to payment under the standard
joint and survivor annuity form set forth in Section 10.2(b)(1) and such IAR
Member elects another form of benefit payment which will not provide his spouse
with a lifetime survivor annuity which is at least 50 percent of the amount of
the annuity payable during the joint lives of the IAR Member and the spouse,
such benefit shall be paid in such form only if such IAR Member’s spouse
consents the form and time thereof in writing. Any spousal consent given
pursuant to this provision shall acknowledge the effect of such form and time
of payment and shall be witnessed by a Plan representative or a notary public,
unless a Plan representative finds that such consent cannot be obtained because
the spouse cannot be located or because of other circumstances set forth in
Section 401(a)(11) of the Code and regulations issued thereunder.
	 
	 	(6)	 	A Member who is a participant in the Salaried Plan and who has
elected to have his benefit under the Salaried Plan distributed in an annuity
form may elect to have his entire Plan interest transferred to the Salaried
Plan as of the date benefits are payable thereunder to be held and distributed
in accordance with the terms thereof.
	 
	 	(c)	 	Disregard of Rollover Contributions for Valuation of
Involuntary Cash Outs. For purposes of this Section 10.2 and Sections
10.3, 10.11, and 11.5(f), with respect to distributions made after December 31,
2002, the value of a Member’s vested interest in his Separate Accounts shall be
determined without regard to that portion of such accounts which is
attributable to Rollover Contributions (and earnings allocable thereto)

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	 	 	 	within the meaning of Sections 402(c), 403(a)(4), 403(b)(8),
408(d)(3)(A)(ii) and 457(e)(16) of the Code. If the value of a Member’s
Separate Accounts as so determined is $5,000 or less, the Member’s entire
nonforfeitable account balance (including amounts attributable to such
Rollover Contributions) shall be distributed pursuant to Section 10.2(a) or
11.5(f), as applicable.

10.3 Form of Distribution.

Unless the Member or Inactive Member otherwise elects (or is deemed to elect otherwise because the
present value of such Member’s nonforfeitable benefit exceeds $5,000 and he fails to consent to a
distribution while his benefit is immediately distributable within the meaning of Treasury
Regulations), the payment of benefits under the Plan to such Member shall begin no later than the
60th day after the close of the Plan Year in which the latest of the following events occurs:

	 	(i)	 	The date on which such Member attains age 65;
	 
	 	(ii)	 	The tenth anniversary of the date on which such Member commenced participation
in the Plan; and
	 
	 	(iii)	 	The date on which such Member terminates service with the Controlled entities.

All single sum distributions shall be made in cash; provided, however, a Member (or, if authorized
by the Member, his designated beneficiary or legal representative in the case of a deceased
Member), may elect to have the portion of his Accounts that is then invested in the Company Stock
Fund distributed in whole shares of Company Stock, with any partial shares to be distributed in
cash.

10.4 Limitation on Commencement of Distribution.

Notwithstanding any provision in the Plan to the contrary, all distributions required under this
Article X shall be determined and made in accordance with the regulations under Section 401(a)(9)
of the Code, including the minimum distribution incidental benefit requirements of Section
1.401(a)(9)-2 of the regulations. Accordingly, the entire interest of a Member or Inactive Member
in his Separate Accounts must be distributed, or must begin to be distributed, no later than such
Member’s Mandatory Distribution Date. The Mandatory Distribution Date of a Member or Inactive
Member shall be determined as follows:

	 	(i)	 	The Mandatory Distribution Date of such a Member who attains age 701⁄2 on or
after January 1, 1988, but prior to January 1, 1999, shall be April 1, 1990, or the
first day of April following the calendar year in which such Member attains age 701⁄2,
whichever is later.
	 
	 	(ii)	 	The Mandatory Distribution Date of such a Member who attains age 701⁄2 on or
after January 1, 1999, shall be the first day of April of the calendar year following
the later of (A) the calendar year in which such Member attains age 701⁄2 or (B) the
calendar year in which such Member terminates his employment with the

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	 	 	 	Employer (provided, however, that Clause (B) of this sentence shall not apply in the
case of a Member who is a “five-percent Owner” (as defined in section 416 of the
Code) with respect to the Plan Year ending in the calendar year in which such Member
attains age 701⁄2).
	 
	 	(iii)	 	The Mandatory Distribution Date of such a Member who has attained age 701⁄2
before January 1, 1988, shall be the first day of April of the calendar year following
the calendar year in which the later of such Member’s termination of employment or
attainment of age 701⁄2 occurs.
	 
	 	(iv)	 	The Mandatory Distribution Date of a Member who dies before another Mandatory
Distribution Date shall be (A) if payable to other than the Member’s spouse, the last
day of the one-year period following the death of such Member or (B) if payable to the
Member’s spouse, after the date upon which such Member would have attained age 70-1/2,
unless such surviving spouse dies before payments commence, in which case the Mandatory
Distribution Date may not be deferred beyond the last day of the one-year period
following the death of such surviving spouse.

A Member (other than a Member who is a “five-percent owner” (as defined in section 416 of the Code)
with respect to the Plan Year ending in the calendar year in which such Member attains the age 701⁄2)
who attains age 701⁄2 in calendar year 1998 or 1999 may elect to defer his Mandatory Disbursement
Date until no later than April 1 of the calendar year following the later of (A) the calendar year
in which such Member attains the age 701⁄2 or (B) the calendar year in which such Member terminates
his employment with the Company, provided, that such election is made by the end of the calendar
year in which such Member attains age 701⁄2.

Minimum distributions shall be determined in accordance with Section 10.13.

10.5 Restriction on Alienation.

Except as provided in Sections 401(a)(13)(B) and 414 (p) of the Code relating to qualified domestic
relations orders, no benefit under the Plan at any time shall be subject in any manner to
anticipation, alienation, assignment (either at law or in equity), encumbrance, garnishment, levy,
execution, or other legal or equitable process. No person shall have power in any manner to
anticipate, transfer, assign (either at law or in equity), alienate, or subject to attachment,
garnishment, levy, execution, or other legal or equitable process, or in any way encumber his
benefits under the Plan, or any part thereof, and any attempt to do so shall be void.

10.6 Payments to Incompetents or Minors.

In the event that it shall be found that any individual to whom an amount is payable hereunder is
incapable of attending to his financial affairs because of any mental or physical condition,
including the infirmities of advanced age, or is a minor, such amount (unless prior claim therefor
shall have been made a duly qualified guardian or other legal representative) may, in the
discretion of the Company, be paid to a duly appointed guardian or to another person for the use or
benefit of the individual found incapable of attending to his financial affairs or in satisfaction
of legal obligations incurred by or on behalf of such individual. The Trustee shall make such

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payment only upon receipt of written instructions to such effect from the Company. Any such
payment shall be charged to the Separate Accounts from which any such payment would otherwise have
been paid to the individual found to be a minor or incapable of attending to his financial affairs
and shall be a complete discharge or any liability therefor under the Plan.

10.7 Commercial Annuities.

In any case where a benefit payable under the Plan is to be paid in the form of a commercial
annuity, a commercial annuity contract shall be purchased and distributed to the Member, Inactive
Member, or Beneficiary, as the case may be. Upon the distribution of any such contract, the Plan
shall have no further liability with respect to the amount used to purchase the annuity contract
and the company issuing such contract shall be solely responsible to the recipient of the contract
for the annuity payments thereunder. All certificates for commercial annuity benefits shall be
non-transferable, and no benefit thereunder may be sold, assigned, discounted, or pledged. Any
commercial annuity purchased under the Plan shall contain such terms and provisions as may be
necessary to satisfy the requirements under the Plan.

10.8 Actuarial Equivalency.

With respect to any benefit payment pursuant to the Plan, whichever form of payment is selected,
the value of such benefit shall be the actuarial equivalent of the value of the vested balance of
the Separate Accounts to which the particular Member, Inactive Member, or Beneficiary, as the case
may be, is entitled.

10.9 Eligible Rollover Distributions.

Each Member and Beneficiary who receives an Eligible Rollover Distribution may elect in the time
and in a manner prescribed by the Company to have all or any portion of such Eligible Rollover
Distribution transferred to an Eligible Retirement Plan; provided, however, that only one such
transfer may be made with respect to an Eligible Rollover distribution to an Eligible Retirement
Plan. Notwithstanding the foregoing, the Member may elect, after receiving the notice required
under Section 402(f) of the Code, to receive such Eligible Rollover Distribution prior to the
expiration of the 30-day period beginning on the date such Member is issued such notice; provided
that the Member or Beneficiary is permitted to consider his decision for at least 30 days and is
advised of such right in writing.

10.10 Transfer to Cooper Cameron Salaried Plan.

In accordance with procedures established by the Company, any Member (other than an IAR Member) who
is a participant in the Salaried Plan and who wishes to receive distribution of the vested balance
of his Separate Accounts in the form of an annuity, may elect to transfer such balance to the
Salaried Plan as of his benefit commencement date to be held and distributed in accordance with the
terms thereof.

10.11 Deferral of Payments.

Subject to the provisions of Section 10.4, but notwithstanding the provisions of any other Section
of the Plan to the contrary, a Member whose Plan interest is determined to have a present value

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of $5,000 or more shall not receive payment of such interest prior to the later of normal
retirement age or age 62, unless consented to by the Member in writing.

10.12 Lost or Missing Members or Beneficiaries.

In the case of a benefit payable on behalf of a Member, if the Company is unable to locate the
Member or beneficiary to whom such benefit is payable, upon the Company’s determination thereof,
such benefit shall be forfeited. Notwithstanding the foregoing, if subsequent to any such
forfeiture the Member or beneficiary to whom such benefit is payable makes a valid claim for such
benefit, such forfeited benefit shall be restored to the Plan in the manner provided in Section
7.3.

10.13 Minimum Distribution Requirements.

	 	(a)	 	The provisions of this Section 10.13 will apply for purposes of determining
required minimum distributions for calendar years beginning with the 2003 Distribution
Calendar Year.
	 
	 	(b)	 	The requirements of this Section 10.13 will take precedence over any
inconsistent provisions of the Plan.
	 
	 	(c)	 	All distributions required under this Section 10.13 will be determined and made
in accordance with the Treasury regulations under Section 401(a)(9) of the Code.
	 
	 	(d)	 	Notwithstanding the other provisions of this Section 10.13, distributions may
be made under a designation made before January 1, 1984, in accordance with Section
242(b)(2) of the Tax Equity and Fiscal Responsibility Act (TEFRA) and the provisions of
the Plan that relate to Section 242(b)(2) of TEFRA.
	 
	 	(e)	 	The Member’s entire interest will be distributed, or begin to be distributed,
to the Member no later than the Member’s Required Beginning Date. If the Member dies
before distributions begin, the Member’s entire interest will be distributed, or begin
to be distributed, no later than as follows:

	 	(1)	 	If the Member’s surviving spouse is the Member’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 Member died, or by December 31 of the calendar year in which the
Member would have attained age 701⁄2, if later.
	 
	 	(2)	 	If the Member’s surviving spouse is not the Member’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 Member died.
	 
	 	(3)	 	If there is no Designated Beneficiary as of September 30 of the
year following the year of the Member’s death, the Member’s entire interest
will be distributed by December 31 of the calendar year containing the
fifth anniversary of the Member’s death.

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	 	(4)	 	If the Member’s surviving spouse is the Member’s sole
Designated Beneficiary and the surviving spouse dies after the Member but
before distributions to the surviving spouse begin, this Paragraph
(disregarding item (1) above), will apply as if the surviving spouse were the
Member.

For purposes of this Paragraph (e) and Paragraph (g) below, unless item (4) above
applies, distributions are considered to begin on the Member’s Required Beginning
Date. If item (4) above applies, distributions are considered to begin on the date
distributions are required to begin to the surviving spouse under item (1) above. If
distributions under an annuity purchased from an insurance company irrevocably
commence to the Member before the Member’s Required Beginning Date (or to the
Member’s surviving spouse before the date distributions are required to begin to the
surviving spouse under item (1) above), the date distributions are considered to
begin is the date distributions actually commence. Unless the Member’s interest is
distributed in the form of an annuity purchased from an insurance company or in a
single sum on or before the Required Beginning Date, as of the first Distribution
Calendar Year distributions will be made in accordance with Paragraphs (f) and (g)
of this Section 10.13, whichever is applicable. If the Member’s interest is
distributed in the form of an annuity purchased from an insurance company,
distributions thereunder will be made in accordance with the requirements of Section
401(a)(9) of the Code and the Treasury regulations.

	 	(f)	 	During the Member’s lifetime, the minimum amount that will be distributed for
each Distribution Calendar Year is the lesser of:

	 	(1)	 	the quotient obtained by dividing the Member’s Account Balance
by the distribution period in the Uniform Lifetime Table set forth in Section
1.401(a)(9)-9 of the Treasury regulations, using the Member’s age as of the
Member’s birthday in the Distribution Calendar Year; or
	 
	 	(2)	 	if the Member’s sole Designated Beneficiary for the
Distribution Calendar Year is the Member’s spouse, the quotient obtained by
dividing the Member’s Account Balance by the number in the Joint and Last
Survivor Table set forth in Section 1.401(a)(9)-9 of the Treasury regulations,
using the Member’s and spouse’s attained ages as of the Member’s and spouse’s
birthdays in the Distribution Calendar Year.

Required minimum distributions will be determined under this Paragraph (f) beginning
with the first Distribution Calendar Year and up to and including the Distribution
Calendar Year that includes the Member’s date of death.

	 	(g)	 	If the Member dies on or after the date distributions begin and there is a
Designated Beneficiary, the minimum amount that will be distributed for each

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	 	 	 	Distribution Calendar Year after the year of the Member’s death is the quotient
obtained by dividing the Member’s Account Balance by the longer of the remaining
Life Expectancy of the Member or the remaining Life Expectancy of the Member’s
Designated Beneficiary, determined as follows:

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

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

	 	(h)	 	If the Member dies before the date distributions begin and there is a
Designated Beneficiary, the minimum amount that will be distributed for each
Distribution Calendar Year after the year of the Member’s death is the quotient
obtained by dividing the Member’s Account Balance by the remaining Life Expectancy of
the Member’s Designated Beneficiary, determined as provided in item (1), (2) or (3) of
Paragraph (g), whichever is applicable. If the Member dies before the date
distributions begin and there is no Designated Beneficiary as of September 30 of the
year following the year of the Member’s death, distribution of the Member’s entire
interest will be completed by December 31 of the calendar year containing the fifth
anniversary of the Member’s death. If the Member dies before the date distributions
begin, the Member’s surviving spouse is the Member’s sole Designated Beneficiary, and
the surviving spouse dies before distributions are required to begin to the surviving
spouse under item (1) of Paragraph (e), this Paragraph (h) will apply as if the
surviving spouse were the Member. Notwithstanding the foregoing, if the Member dies
before distributions begin and

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	 	 	 	there is a Designated Beneficiary, distribution to the Designated Beneficiary is not
required to begin by the date specified in Paragraph (e) above but the Member’s
entire interest will be distributed to the Designated Beneficiary by December 31 of
the calendar year containing the fifth anniversary of the Member’s death. If the
Member’s surviving spouse is the Member’s sole Designated Beneficiary and the
surviving spouse dies after the Member but before distributions to either the Member
or the surviving spouse begin, this Paragraph will apply as if the surviving spouse
were the Member.
	 
	 	(i)	 	For purposes of this Section 10.13, the following terms and phrases shall have
these respective meanings:

	 	(1)	 	Designated Beneficiary: The individual who is
designated as a Member’s beneficiary under Section 11.1 of the Plan and is a
Designated Beneficiary under Section 401(a)(9) of the Code and Section
1.401(a)(9)-1, Q&A-4, of the Treasury regulations.
	 
	 	(2)	 	Distribution Calendar Year: A calendar year for which
a minimum distribution is required. For distributions beginning before the
Member’s death, the first Distribution Calendar Year is the calendar year
immediately preceding the calendar year which contains the Member’s Required
Beginning Date. For distributions beginning after the Member’s death, the first
Distribution Calendar Year is the calendar year in which distributions are
required to begin under Paragraph (e). The required minimum distribution for
the Member’s first Distribution Calendar Year will be made on or before the
Member’s Required Beginning Date. The required minimum distribution for other
Distribution Calendar Years, including the required minimum distribution for
the Distribution Calendar Year in which the Member’s Required Beginning Date
occurs, will be made on or before December 31 of that Distribution Calendar
Year.
	 
	 	(3)	 	Life Expectancy. Life Expectancy as computed by use of
the Single Life Table in Section 1.401(a)(9)-9 of the Treasury regulations.
	 
	 	(4)	 	Member’s Account Balance. The balance in a Member’s
Accounts 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 Member’s Accounts 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. A Member’s 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.
	 
	 	(5)	 	Requiring Beginning Date. With respect to a Member or
beneficiary, the date described in Section 10.4 of the Plan.

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ARTICLE XI

BENEFICIARIES AND DEATH BENEFITS

11.1 Designation of Beneficiary.

In the event of the death of a Member or Inactive Member prior to distribution in full of his
interest under the Plan, the spouse, if any, of such Member shall be his Beneficiary and receive
distribution of his remaining interest in accordance with the provisions of Section 11.4; provided,
however, that a Member or Inactive Member, may designate a person or persons other than his spouse
as his Beneficiary if the requirements of Section 11.3 are met.

11.2 Beneficiary in the Absence of Designated Beneficiary.

If a Member or Inactive Member who dies does not have a surviving spouse and if no Beneficiary has
been designated pursuant to the provisions of Section 11.1, or if no Beneficiary survives such
Member, then the Beneficiary shall be the estate of such Member. If any Beneficiary designated
pursuant to Section 11.1 dies after becoming entitled to receive distribution hereunder and before
such distributions are made in full, and if no other person or persons have been designated to
receive the balance of such distributions upon the happening of such contingency, the estate of
such deceased Beneficiary shall become the Beneficiary as to such balance.

11.3 Spousal Consent to Beneficiary Designation.

An election to designate a Beneficiary other than the spouse of such Member or Inactive Member
shall not be effective unless (A) such spouse has consented thereto in writing and such consent (i)
acknowledges the effect of such election, (ii) either consents to the specific designated
beneficiary (which designation may not be subsequently changed by the Member or Inactive Member
without spousal consent) or expressly permits such designation by the Member or Inactive Member
without the requirement of further consent by the spouse, and (iii) is witnessed by a Plan
representative (other than the Member, or Inactive Member, as applicable) or a notary public, or
(B) the consent of such spouse cannot be obtained because the spouse cannot be located or because
of other circumstances described by applicable Treasury regulations. Any such consent by such
spouse shall be irrevocable.

11.4 Death Benefits from Basic, Supplemental, Matching, and Rollover/Transfer Accounts.

In the event of the death of a Member or Inactive Member prior to distribution in full of his
interest in the Plan, the Beneficiary of such Member shall receive distribution of such Member’s
remaining interest in his Basic, Supplemental, Matching, Profit Sharing, and Rollover/Transfer
Accounts in a single sum to such Member’s Beneficiary, unless such Beneficiary elects to receive
such interest with his IAR Account interest, if any, in the form of a single life annuity.

11.5 Death Benefits from IAR Accounts.

	 	(a)	 	The interest in the IAR Account of any deceased IAR Member or Inactive Member
whose surviving spouse is his Beneficiary shall be a survivor annuity.

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	 	 	 	Such survivor annuity shall be a commercial annuity which is payable for the life of
such surviving spouse.
	 
	 	(b)	 	Any Member or Inactive Member who would otherwise have his death benefit from
his IAR Account paid in the form of a survivor annuity payable to his surviving spouse
may elect not to have his benefit paid in such form by electing to receive such death
benefit in a single sum or by designating a person other than his spouse as his
Beneficiary. Any election may be revoked and subsequent elections may be made or
revoked at any time prior to the death of the Member or Inactive Member.
	 
	 	(c)	 	Paragraph (b) above to the contrary notwithstanding, an election not to have
the death benefit paid in the form of a survivor annuity payable to the surviving
spouse may be made before the first day of the Plan Year in which a Member or Inactive
Member attains the age of thirty-five only (A) after the Member or Inactive Member
separated from service and only with respect to benefits accrued under the Plan before
the date of such separation or (B) in the case of a Member who has not separated from
service, if the Member has been furnished the information in Paragraph (c) below, with
such election to become invalid upon the first day of the Plan Year in which the Member
attains the age of thirty-five, whereupon a new election may be made by such Member.
	 
	 	(d)	 	The Company shall furnish certain information, pertinent to the Paragraph (b)
election to each Member within the period beginning with the first day of the Plan Year
in which he attains the age of thirty-two (but not earlier than the date such Member
begins participation in the Plan) and ending with the later of (1) the last day of the
Plan Year preceding the Plan Year in which the Member attains the age of thirty-five,
or (2) a reasonable time after the Employee becomes a Member. If a Member separated
from service before attaining the age of thirty-five, such information shall be
furnished to such Member within the period beginning one year before the Member
separates from service and ending one year after such separation. Such information
shall also be furnished to a Member who has not attained the age of thrifty-five or
terminated employment, within a reasonable time after written request by such Member.
The furnished information shall include an explanation of (1) the terms and conditions
of the survivor annuity, (2) the Member’s right to elect to waive the survivor annuity
and the effect of such election, (3) the rights of the Member’s surviving spouse, (4)
the right to revoke such election and the effect of such revocation, (5) a general
description of the eligibility conditions and other material features of the
alternative forms of benefit available pursuant to Paragraph (f) below, and (6)
sufficient additional information to explain the relative value of such alternative
forms of benefit.
	 
	 	(e)	 	For purposes of this Section 11.5 the IAR Account death benefit of a deceased
Member or Inactive Member who is not survived by his spouse or who has elected not to
have his IAR Account death benefit paid in the survivor annuity form set forth in
Section 11.5(a) shall be paid to his Beneficiary in one of the following alternative
forms to be selected by such Member or Inactive Member

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	 	 	 	(or his Beneficiary if authorized by such Member or Inactive Member) or, in the
absence of such selection, in a single sum payment; provided, however, that the
period and the methods of payment of any such form shall be in compliance with the
provisions of section 401(a)(9) of the Code and applicable Treasury regulations
thereunder:

	 	(i)	 	A single lump payment; or
	 
	 	(ii)	 	A commercial annuity in the form of a single life annuity.

	 	(f)	 	Notwithstanding any other provisions of the Plan to the contrary, payment of a
survivor annuity pursuant to this Section 11.5 shall not be made without the consent of
the surviving spouse prior to the time the deceased Member or Inactive Member would
have attained Retirement Age except that if the entire interest payable hereunder to a
Beneficiary is $5,000 or less, such interest shall be paid in a single lump-sum payment
form within a reasonable period of time after the death of the Member or Inactive
Member.

11.6 Commencement of Death Benefits.

A survivor benefit shall be paid to the surviving spouse of a deceased Member or deceased former
Member upon termination of employment thereafter regardless of the age at which such Member’s death
occurs, and shall be payable monthly thereafter during the life of the surviving spouse, the last
payment being for the month in which the death of the surviving spouse occurs. Notwithstanding the
foregoing, in no event shall a survivor benefit be paid to the surviving spouse of a deceased
Member or deceased former Member prior to the later of the date on which such deceased Member or
deceased former Member would have attained normal retirement age or age 62, unless such surviving
spouse consents thereto not more than 90 days before the annuity starting date of such survivor
benefit. In the event of the death of the surviving spouse prior to the commencement of the
payment of the survivor benefit, no survivor benefit shall be payable pursuant to the provisions of
this Article XI with respect to such deceased Member or deceased former Member.

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ARTICLE XII

ADMINISTRATION

12.1 Plan Administrator.

For purposes of ERISA, the Company shall be the Plan Administrator and, as such, shall be
responsible for the compliance of the Plan with the reporting and disclosure provisions of ERISA.

12.2 Authority of the Company.

The Company shall have all the powers and authority expressly conferred upon it herein and,
further, shall have the sole right to interpret and construe the Plan, and to determine any
disputes arising thereunder, subject to the provisions of Section 7.9. In exercising such powers
and authority, the Company at all times shall exercise good faith, apply standards of uniform
application, and refrain from arbitrary action. Any decision of the Company in such exercise of
its powers, authorities and duties shall be final and binding upon all affected parties. The
Company may employ such attorneys, agents, and accountants as it may deem necessary or advisable to
assist it in carrying out its duties hereunder. The Company shall be a “named fiduciary” as that
term is defined in Section 402(a)(2) of ERISA. The Company may:

	 	(a)	 	allocate any of the powers, authorities, or responsibilities for the operation
and administration of the Plan, which are retained by it or granted to it by this
Article XII, to the Trustee; and
	 
	 	(b)	 	designate a person or persons other than itself to carry out any of such
powers, authorities, or responsibilities;

provided, however, that no powers, authorities, or responsibilities of the Trustee shall be subject
to the provisions of paragraph (b) of this Section 12.2; and provided further, that no allocation
or delegation by the Company of any of its powers, authorities, or responsibilities to the Trustee
shall become effective unless such allocation or delegation first shall be accepted by the Trustee
in a writing signed by it and delivered to the Company.

12.3 Action of the Company.

Any act authorized, permitted, or required to be taken by the Company under the Plan, which has not
been delegated in accordance with Section 12.2, may be taken by a majority of the members of the
Board of Directors of the Company, either by vote at a meeting, or in writing without a meeting.
All notices, advices, directions, certifications, approvals, and instructions required or
authorized to be given by the Company under the Plan shall be in writing and signed by either (i)
a majority of the members of the Board of Directors of the Company, or by such member or members as
may be designated by an instrument in writing, signed by all the members thereof, as having
authority to execute such documents on its behalf, or (ii) a person who becomes authorized to act
for the Company in accordance with the provisions of paragraph (b) of Section 12.2. Subject to the
provisions of Section 12.4, any action taken by the Company which is authorized, permitted, or
required under the Plan shall be final and binding upon the Company

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and the Trustees, all persons who have or who claim an interest under the Plan, and all third
parties dealing with any Trustee or the Company.

12.4 Claims Review Procedure.

Claims for Plan benefits and reviews of Plan benefit claims which have been denied or modified will
be processed in accordance with the written Plan claims procedures established by the Cooper
Cameron Corporation Plans Administration Committee, which procedures are hereby incorporated by
reference as a part of the Plan and may be amended from time to time by such committee.

12.5 Qualified Domestic Relations Orders.

Except as otherwise provided with respect to “qualified domestic relations orders” and certain
judgments and settlements pursuant to section 206(d) of the Act and sections 401(a)(13) and 414(p)
of the Code, and, except as otherwise provided under other applicable law, no right or interest of
any kind in any benefit shall be transferable or assignable by any Member or any beneficiary or be
subject to anticipation, adjustment, alienation, encumbrance, garnishment, attachment, execution,
or levy of any kind. Plan provisions to the contrary notwithstanding, the Company shall comply
with the terms and provisions of any “qualified domestic relations order,” including an order that
requires distributions to an alternate payee prior to a Member’s “earliest retirement age” as such
term is defined in section 206(d)(3)(E)(ii) of the Act and section 414(p)(4)(B) of the Code, and
shall establish appropriate procedures to effect the same.

12.6 Indemnification.

In addition to whatever rights of indemnification the members of the Board of Directors of the
Company, or any other person or persons (other than the Trustees) to whom any power, authority, or
responsibility of the Company is allocated or delegated pursuant to paragraph (b) of Section 12.2,
may be entitled under the articles of incorporation, regulations, or bylaws of the Company, under
any provision of law, or under any other agreement, the Company shall satisfy such liability
actually and reasonably incurred by any such member or such other person or persons, including
expenses, attorneys’ fees, judgments, fines, and amounts paid in settlement, in connection with any
threatened, pending, or completed action, suit, or proceeding which is related to the exercise, or
failure to exercise, by such member or such other person or persons of any of the powers,
authorities, responsibilities, or discretion of the Company as provided under the Plan and the
Trust Agreement, or reasonably believed by such member or such other person or persons to be
provided thereunder, and any action taken by such member or such other person or persons in
connection therewith.

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ARTICLE XIII

AMENDMENT AND TERMINATION

13.1 Amendment.

Subject to the provisions of Section 13.2, the Company may at any time and from time to time, amend
the Plan.

13.2 Limitation of Amendment.

The Company shall make no amendment to the Plan which shall result in the forfeiture or reduction
of the interest of any Member, Inactive Member, Beneficiary, or person claiming under or through
any one or more of them pursuant to the Plan; provided, however, that nothing herein contained
shall restrict the right to amend the provisions hereof relating to the administration of the Plan
and Trust. Moreover, no amendment shall be made hereunder which shall permit any part of the Trust
property to revert to any Employer or be used for or be diverted to purposes other than the
exclusive benefit of Members, Inactive Members, Beneficiaries, and persons claiming under or
through them pursuant to the Plan.

13.3 Termination.

The Company reserves the right, by action of its Board of Directors, to terminate the Plan as to
all Employers at any time. The Plan shall terminate automatically if there shall be a complete
discontinuance of contributions hereunder by all Employers. In the event of the termination of the
Plan, written notice thereof shall be given to all Members and Beneficiaries having an interest
under the Plan, and to the Trustee. Upon any such termination of the Plan, the Trustee and the
Company shall take the following actions for the benefit of Members and Beneficiaries:

	 	(a)	 	As of the termination date, the Trustee shall value the Funds hereunder and the
Company shall adjust all accounts accordingly. The termination date shall become a
Valuation Date. In determining the net worth of the Funds hereunder, the Trustee shall
include as a liability such amounts as in its judgment shall be necessary to pay all
expenses in connection with the termination of the Trust and the liquidation and
distribution of the Trust property, as well as other expenses, whether or not accrued,
and shall include as an asset all accrued income.
	 
	 	(b)	 	The Trustee, upon instructions from the Company, shall then segregate and
distribute an amount equal to the entire interest of each Member, Inactive Member, and
Beneficiary in the Funds to or for the benefit of each Member, Inactive Member, or
Beneficiary in accordance with the provisions of Sections 10.2 and 10.3.

Notwithstanding anything to the contrary contained in the Plan, upon any such Plan termination or
discontinuance of contributions by the Employers, the interest of each Member, Inactive Member, and
Beneficiary shall become fully vested and nonforfeitable; and, if there is a partial termination of
the Plan, the interest of each Member, Inactive Member, and Beneficiary who is affected by such
partial termination shall become fully vested and nonforfeitable.

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13.4 Withdrawal of an Employer.

An Employer other than the Company may, by action of its Board of Directors, withdraw from the
Plan, such withdrawal to be effective upon notice in writing to the Company (the effective date of
such withdrawal being hereinafter referred to as the “withdrawal date”), and shall thereupon cease
to be an Employer for all purposes of the Plan. An Employer shall be deemed automatically to
withdraw from the Plan in the event of its complete discontinuance of contributions, or in the
event it ceases to be a Subsidiary.

13.5 Corporate Reorganization.

The merger, consolidation, or liquidation of the Company or any Employer with or into the Company
or any other Employer shall not constitute a termination of the Plan as to the Company or such
Employer.

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ARTICLE XIV

ADOPTION BY SUBSIDIARIES: EXTENSION

TO NEW BUSINESS OPERATIONS

Any Subsidiary of the Company which at the time is not an Employer may, with the consent of the
Cooper Cameron Corporation Plans Administration Committee, adopt the Plan and become an Employer
hereunder by causing an appropriate written instrument evidencing such adoption to be executed
pursuant to the authority of its Board of Directors and to be filed with the Company.

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ARTICLE XV

MISCELLANEOUS PROVISIONS

15.1 No Commitment as to Employment.

Nothing herein contained shall be construed as a commitment or agreement upon the part of any
Employee hereunder to continue his employment with an Employer, and nothing herein contained shall
be construed as a commitment on the part of any Employer to continue the employment or rate of
compensation of any Employee hereunder for any period.

15.2 Benefits.

Nothing in the Plan shall be construed to confer any right or claim upon any person other than the
parties hereto, Members and Beneficiaries.

15.3 No Guarantees.

Neither any Employer, including the Company, nor the Trustee guarantees the Trust from loss or
depreciation, nor the payment of any amount which may become due to any person hereunder. All
benefits payable under the Plan shall be paid or provided for solely from the Plan assets and
neither the Company nor the Trustee assumes any liability or responsibility for the adequacy
thereof.

15.4 Exclusive Benefit.

No part of the Plan assets shall be used for any purpose other than the exclusive purpose of
providing benefits which Members and Beneficiaries are entitled to under the Plan, and for the
purpose of defraying the reasonable expenses of administering the Plan.

15.5 Duty to Furnish Information.

Each of the Employers, the Company, or the Trustee shall furnish to any of the others any
documents, reports, returns, statements, or other information that any other reasonably deems
necessary to perform its duties imposed hereunder or otherwise imposed by law.

15.6 Merger, Consolidation, or Transfer of Plan Assets.

The Plan shall not be merged or consolidated with any other plan, nor shall any of its assets or
liabilities be transferred to another plan, unless, immediately after such merger, consolidation,
or transfer of assets or liabilities, each Member, Inactive Member, and Beneficiary in the Plan
would receive a benefit under the Plan which is at least equal to the benefit he would have
received immediately prior to such merger, consolidation, or transfer of assets or liabilities
(assuming in each instance that the Plan had then terminated).

15.7 Return of Contributions to Employers.

Notwithstanding any other provision of the Plan to the contrary, Basic, Matching and Company
Retirement Contributions are contingent upon the deductibility of such contributions under

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Section 404 of the Code. In the event a Basic, Matching or Company Retirement Contribution (or any
portion thereof) is made under a mistake of fact, such a contribution shall be returned to the
Employers within one year after the payment of the contribution. Since Basic, Matching, and
Company Retirement Contribution (or any portion thereof) are conditioned upon the deductibility of
the contribution under Section 404 of the Code as set forth above, in the event such deduction is
disallowed, any such contribution shall be returned to the Employers within one year after the
disallowance of the deduction.

15.8 Addenda.

In the event that it is deemed necessary to accommodate any transition of coverage under other
benefit plans to coverage under the Plan with respect to certain groups of Employees, an Addendum
setting forth special overriding provisions applicable to such Employees may be added to the Plan.
Each Addendum shall for all purposes constitute a part of the Plan and in the event of conflict
with any other provision of the Plan, shall control. The provisions of the Plan, together with the
provisions specified in each Addendum shall constitute the terms of the Plan applicable to the
Employees employed at the location or facility specified in the Addendum.

15.9 Validity of Agreement.

Except as provided under federal law, the provisions of the Plan shall be governed by and construed
in accordance with the laws of the State of Texas.

15.10 Uniformed Services Employment and Reemployment Rights Act Requirements. 

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

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ARTICLE XVI

SECTION 415 LIMITATIONS

16.1 Application. 

The provisions set forth in this Article XVI are intended solely to comply with the requirements of
Section 415 of the Code, as amended, and shall be interpreted, applied, and if and to the extent
necessary, deemed modified without further formal language so as to satisfy solely the minimum
requirements of said Section. For such purposes, the limitations of Section 415 of the Code, as
amended, are hereby incorporated by reference and made part hereof as though fully set forth
herein, but shall be applied only to particular Plan benefits in accordance with the provisions of
this Article XVI, to the extent such provisions are not consistent with Section 415 of the Code.
If there is any discrepancy between the provisions in this Article XVI and the provisions of
Section 415 of the Code, such discrepancy shall be resolved in such a way as to give full effect to
the provisions of Section 415 of the Code.

16.2 Section 415 Definitions.

For purposes of this Article XVI, the following terms and phrases shall have these respective
meanings:

	 	(a)	 	“Annual Additions” of a Member for any Limitation Year shall mean the total of
(A) the Basic Contributions, Matching Contributions, Company Retirement Contributions
and forfeitures, if any, allocated to such Member’s Separate Accounts for such year,
(B) Member’s contributions, if any, (excluding any Rollover Contributions) for such
year, and (C) amounts referred to in Sections 415(l)(1) and 419A(d)(2) of the Code.
The Annual Additions of a Member for any Limitation Year shall not include Member
catch-up contributions made pursuant to Section 3.6 and Section 414(v) of the Code.
	 
	 	(b)	 	“415 Compensation” shall mean the total of all amounts paid by the Employer to
or for the benefit of a Member for services rendered or labor performed for the
Employer which are required to be reported on the Member’s federal income tax
withholding statement or statements (Form W-2 or its subsequent equivalent), subject to
the following adjustments and limitations:

	 	(1)	 	The following shall be included:

	 	(A)	 	From and after December 31, 1998, elective
deferrals (as defined in Section 402(g)(3) of the Code) from
compensation to be paid by the Employer to the Member;
	 
	 	(B)	 	Any amount which is contributed or deferred by
the Employer at the election of the Member and which is not includible
in the gross income of the Member by reason of Section 125 or 457 of
the Code; and

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	 	(C)	 	Any amounts that are not includable in the
gross income of a Member under a salary reduction agreement by reason
of the application of Section 132(f) of the Code.

	 	(2)	 	The 415 Compensation of any Member taken into account for
purposes of the Plan shall be limited to $200,000 for any Plan Year with such
limitation to be:

	 	(A)	 	Adjusted automatically to reflect any
amendments to Section 401(a)(17) of the Code and any cost-of-living
increases authorized by Section 401(a)(17) of the Code; and
	 
	 	(B)	 	Prorated for a Plan Year of less than twelve
months and to the extent otherwise required by applicable law.

	 	(c)	 	“Limitation Year” shall mean the calendar year.
	 
	 	(d)	 	“Maximum Annual Additions” of a Member for any Limitation Year shall mean the
lesser of (a) $40,000 (with such amount to be adjusted automatically to reflect any
cost-of-living adjustment authorized by Section 415(d) of the Code) or (B) 100% of such
Member’s 415 Compensation during such Limitation Year, except that the limitation in
this Clause (B) shall not apply to any contribution for medical benefits (within the
meaning of Section 419A(f)(2) of the Code) after separation from service with the
Employer or a Controlled Entity that is otherwise treated as an Annual Addition or to
any amount otherwise treated as an Annual Addition under Section 415(l)(1) of the Code.

16.3 Limitations and Corrections. 

Contrary Plan provisions notwithstanding, in no event shall the Annual Additions credited to a
Member’s Separate Accounts for any Limitation Year exceed the Maximum Annual Additions for such
Member’s for such year. If as a result of allocation of forfeitures, a reasonable error in
estimating a Member’s compensation, a reasonable error in determining the amount of elective
deferrals (within the meaning of Section 402(g)(3) of the Code) that may be made with respect to
any individual under the limits of Section 415 of the Code, or because of other limited facts and
circumstances, the Annual Additions that would be credited to a Member’s Separate Accounts for a
Limitation Year would nonetheless exceed the Maximum Annual Additions for such Member for such
year, the excess Annual Additions which, but for this Article XVI, would have been allocated to
such Member’s Separate Accounts shall be disposed of as follows:

	 	(a)	 	First, any such excess Annual Additions in the form of Basic Contributions on
behalf of such Member that would not have been considered in determining the amount of
Matching Contributions shall be distributed to such Member, adjusted for income or loss
allocated thereto;
	 
	 	(b)	 	Next, any such excess Annual Additions in the form of Basic Contributions on
behalf of such Member that would have been considered in determining the amount of
Matching Contributions shall be distributed to such Member, adjusted

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	 	 	 	for income or loss allocated thereto, and the Matching Contributions that would have
been allocated to such Member’s Separate Account based upon such distributed Basic
Contributions shall be treated as a forfeiture; and
	 
	 	(c)	 	Finally, any such excess Annual Additions in the form of Company Retirement
Contributions, to the extent such amounts would otherwise have been allocated to such
Member’s Separate Account, shall be treated as a forfeiture.

16.4 Multiple Plans.

For purposes of determining whether the Annual Additions under this Plan exceed the limitations
herein provided, all defined contribution plans of the Employer are to be treated as one defined
contribution plan. In addition, all defined contribution plans of Controlled Entities shall be
aggregated for this purpose. For purposes of this Article XVI only, a “Controlled Entity” (other
than an affiliated service group member within the meaning of Section 414(m) of the Code) shall be
determined by application of a more than 50% control standard in lieu of an 80% control standard.
If the Annual Additions credited to a Member’s Separate Accounts for any Limitation Year under this
Plan plus the additions credited on his behalf under other defined contribution plans required to
be aggregated pursuant to this Section would exceed the Maximum Annual Additions for such Member
for such Limitation Year, the Annual Additions under this Plan and the additions under such other
plans shall be reduced on a pro rata basis and allocated, reallocated, or returned in accordance
with applicable plan provisions regarding Annual Additions in excess of Maximum Annual Additions.

16.5 Contribution Adjustments. 

If the limitations set forth in this Article XVI would not otherwise be met for any Limitation
Year, the Basic Contributions elections of affected Members may be reduced by the Employer on a
temporary and prospective basis in such manner as the Employer shall determine.

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ARTICLE XVII

TOP-HEAVY PLAN RULES

17.1 Application.

For any Plan Year in which the Plan is a Top-Heavy Plan (as defined in Section 2), the provisions
set forth in this Article XVII shall be applied in accordance with Section 416 of the Code.

17.2 Top-Heavy Definitions.

The following definitions shall be applicable to this Article XVII:

	 	(a)	 	The term “Compensation” shall mean 415 Compensation, as defined in Section
17.2(b).
	 
	 	(b)	 	The term “Determination Date” shall mean for any Plan Year subsequent to the
first Plan Year, the last day of the preceding Plan Year and for the first Plan Year of
the Plan, the last day of that Year.
	 
	 	(c)	 	The term “Employer” shall mean the Company and each Controlled Entity.
	 
	 	(d)	 	The term “Key Employee” means any Employee or former Employee (including any
deceased Employee) who at any time during the Plan Year that includes the Determination
Date was an officer of the Employer having annual compensation greater than $130,000
(as adjusted under Section 416(i)(1) of the Code for plan years beginning after
December 31, 2002), a 5-percent owner of the Employer, or a 1-percent owner of the
Employer having annual compensation of more than $150,000. For this purpose, annual
compensation means compensation within the meaning of Section 415(c)(3) of the Code.
The determination of who is a Key Employee will be made in accordance with Section
416(i)(1) of the Code and the applicable regulations and other guidance of general
applicability issued thereunder.
	 
	 	(e)	 	The term “Permissive Aggregation Group” shall mean the Required Aggregation
Group of plans plus any other plan or plans of the Employer which, when considered as a
group with the Required Aggregation Group, would continue to satisfy the requirements
of Section 401(a)(4) and 410 of the Code.
	 
	 	(f)	 	The term “Present Value” shall mean for purposes of computing present value
calculations in determining the Top-Heavy Ratio, present value calculations based on
the actuarial assumptions as stated in the applicable plan.
	 
	 	(g)	 	The term “Required Aggregation Group” shall mean (a) each tax qualified plan of
the Employer in which at least one Key Employee participates or participated at any
time during the determination period (regardless of whether the plan terminated), and
(b) any other tax qualified plan of the Employer which enables a

-60-

 

	 	 	 	plan described in clause (a) to meet the requirements of Section 401(a)(4) or 410 of
the Code.
	 
	 	(h)	 	The term “Super Top-Heavy Group” with respect to a particular Plan Year shall
mean a Required or Permissive Aggregation Group that, as of the Determination Date,
would qualify as a Top-Heavy Group under the definition in Paragraph (j) of this
Article XVII with “90 percent” substituted for “60 percent” each place where “60
percent” appears in such definition.
	 
	 	(i)	 	The term “Super Top-Heavy Plan” with respect to a particular Plan Year shall
mean a plan that, as of the Determination Date, would qualify as a Top-Heavy Plan under
the definition in Paragraph (k) of this Article XVII with “90 percent” substituted for
“60 percent” each place where “60 percent” appears in such definition. A plan is also
a “Super Top-Heavy Plan” if it is part of a Super Top-Heavy Group.
	 
	 	(j)	 	The term “Top-Heavy Group” with respect to a particular Plan Year shall mean a
Required or Permissive Aggregation Group if the sum, as of the Determination Date, of
the present value of the cumulative accrued benefits for Key Employees under all
defined benefit plans included in such group and the aggregate of the account balances
of Key Employees under all defined contribution plans included in such group exceeds 60
percent of a similar sum determined for all employees covered by the plans included in
such group.
	 
	 	(k)	 	The term “Top-Heavy Plan” for any Plan Year beginning after December 31, 1983,
the Plan shall be a Top-Heavy Plan if any of the following conditions exist:

	 	(i)	 	If the Top-Heavy Ratio for the Plan exceeds 60 percent and the
Plan is not part of any Required Aggregation Group or Permissive Aggregation
Group of plans.
	 
	 	(ii)	 	If the Plan is a part of a Required Aggregation Group of plans
but not part of a Permissive Aggregation Group and the Top-Heavy Ratio for the
group of plans exceeds 60 percent.
	 
	 	(iii)	 	If the Plan is a part of a Required Aggregation Group and part
of a Permissive Aggregation Group of plans and the Top-Heavy Ratio for the
Permissive Aggregation Group exceeds 60 percent.

	 	(l)	 	The term “Top-Heavy Ratio” shall mean:

	 	(i)	 	While the Employer maintains one or more defined contribution
plans (including any simplified employee pension plan) and the Employer has not
maintained any defined benefit plan which during the 5-year period ending on
the Determination Date(s) has or has had accrued benefits, the Top-Heavy Ratio
for the Plan alone or for the Required or Permissive Aggregation Group, as
appropriate, is a fraction, the numerator of which is the sum of the account
balances of all Key Employees as of the

-61-

 

	 	 	 	Determination Date(s) (including any part of any account balance distributed
during a one-year period (or, in the case of a distribution made for a
reason other than separation from service, death or disability, a five-year
period) ending on the Determination Date(s)) and including distributions
under a terminated plan which, had it not been terminated, would have been
aggregated with the Plan under Section 416(g)(2)(A)(i) of the Code, and the
denominator of which is the sum of all account balances (including any part
of any account balance distributed in the one-year period (or, in the case
of a distribution made for a reason other than separation from service,
death or disability, a five-year period) ending on the Determination
Date(s)) and including distributions under a terminated plan which, had it
not been terminated, would have been aggregated with the Plan under Section
416(g)(2)(A)(i) of the Code, both computed in accordance with Section 416 of
the Code. Both the numerator and denominator of the Top-Heavy Ratio are
adjusted to reflect any contribution not actually made as of the
Determination Date, but which is required to be taken into account on that
date under Section 416 of the Code.
	 
	 	(ii)	 	While the Employer maintains one or more defined contribution
plans (including any simplified employee pension plans) and the Employer
maintains or has maintained one or more defined benefit plans which during the
5-year period ending on the Determination Date(s) has or has had any accrued
benefits, the Top-Heavy Ratio for any Required or Permissive Aggregation Group
as appropriate is a fraction, the numerator of which is the sum of account
balances under the aggregated defined contribution plan or plans for all Key
Employees, determined in accordance with Subparagraph (i) above, and the
present value of accrued benefits under the aggregated defined benefit plan or
plans for all Key Employees as of the Determination Date(s), and the
denominator of which is the sum of the account balances under the aggregated
defined contribution plan or plans for all participants, determined in
accordance with Subparagraph (i) above, and the present value of accrued
benefits under the defined benefit plan or plans for all participants as of the
Determination Date(s), all determined in accordance with Section 416 of the
Code. The accrued benefits under a defined benefit plan in both the numerator
and denominator of the Top-Heavy Ratio are adjusted for any distribution of an
accrued benefit made in the five-year period ending on the Determination Date.
	 
	 	(iii)	 	For purposes of subparagraphs (i) and (ii) above, the value of
account balances and the present value of accrued benefits will be determined
as of the most recent valuation date that falls within or ends with the
12-month period ending on the Determination Date, except as provided in Section
416 of the Code for the first and second plan years of a defined benefit plan.
Notwithstanding the foregoing, the account balances and accrued benefits of
individuals who have not performed services for the

-62-

 

	 	 	 	Employer or any Controlled Entity at any time during the one-year period
ending on the applicable Determination Date shall not be considered. The
calculation of the Top-Heavy Ratio, and the extent to which distributions,
rollovers and transfers are taken into account will be made in accordance
with Section 416 of the Code. Deductible employee contributions shall not
be taken into account for purposes of computing the Top-Heavy Ratio. When
aggregating plans the value of account balances and accrued benefits will be
calculated with reference to the Determination Date that falls within the
same calendar year.

	 	(m)	 	The term “Valuation Date” shall mean for purposes of computing the Top-Heavy
Ratio, the Determination Date.
	 
	 	(n)	 	The term “Non-Key Employee” shall mean any Employee who is not a Key Employee.

17.3 Top-Heavy Minimum Allocation Rules.

The following Top-Heavy Plan minimum allocation rules shall apply:

	 	(a)	 	Except as otherwise provided in Paragraphs (b) and (c) below, the Employer
contributions and forfeitures allocated on behalf of any Member who is not a Key
Employee shall be the lesser of three percent of the non-Key Employee’s compensation or
in the case where the Employer has no defined benefit plan which designates the Plan to
satisfy Section 401 of the Code, the largest percentage of the first $150,000 of the
Key Employee’s compensation, allocated on behalf of any Key Employee for the Plan Year.
Basic Contributions cannot be used to satisfy the minimum Section 416 contributions
for non-key employees. Further, in making the determination of the percentage at which
contributions are made for the Key Employee with the highest percentage, Basic
Contributions on behalf of Key Employees are taken into account. Matching
Contributions shall be taken into account for purposes of satisfying the minimum
contribution requirements of this Section 17.3(a) and Section 416(c)(2) of the Code.
The preceding sentence shall apply with respect to Matching Contributions under the
Plan or, if the Plan provides that the minimum contribution shall be met in another
plan, such other plan. Matching Contributions that are used to satisfy the minimum
contribution requirements of this Section 17.3(a) shall be treated as matching
contributions for purposes of the actual contribution percentage test described in
Section 4.3 and other requirements of Section 401(m) of the Code.
	 
	 	(b)	 	The provisions in Paragraph (a) shall not apply to any Member who is not
actively employed as an Eligible Employee by the Employer on the last day of the Plan
Year for which the minimum allocation is to be made.
	 
	 	(c)	 	The provisions in Paragraph (a) shall not apply to any Member to the extent the
Member is covered under any other plan or plans of the Employer, and by the terms of
such plan or plans it is provided that the minimum allocation or benefit

-63-

 

	 	 	 	requirements applicable to Top-Heavy Plans shall be met in such other plan or plans.
If such other plan is, or if one of such other plans is, a defined benefit plan
maintained by the Employer, and such plan is a Top-Heavy Plan, the minimum benefit
requirements applicable to Top-Heavy Plans shall be met under such defined benefit
plan as provided therein, to the extent such benefit can be provided under such plan
or plans. If such other plan is, or if one of such other plans is, a defined
contribution plan maintained by the Employer, and such plan is a Top-Heavy Plan, the
minimum allocation requirements shall be met under such plan, except as may be
otherwise provided in such other plan. The application and administration of the
minimum allocation or benefit requirements for Top-Heavy Plans shall be satisfied in
a manner so as to only satisfy the minimum allocation/benefit requirements as
permissible and so as to avoid any duplication of minimum allocation/benefits for
non-Key Employees, as provided under Section 416 of the Code. Specifically, if any
Member in this Plan is a Member in the Cooper Cameron Corporation Retirement Plan,
the minimum contribution required under this Article XVII shall be satisfied by
applying the rules of this Section 17.3 to such plan. Further, the top heavy
requirements of Section 416 of the Code and this Article XVII of the Plan shall not
apply in any year beginning after December 31, 2001, in which the Plan consists
solely of a cash or deferred arrangement which meets the requirement of Section
401(k)(12) of the Code and matching contributions with respect to which the
requirements of Section 401(m)(11) of the Code are met.

17.4 Top-Heavy Compensation Limitation.

The annual compensation of any Member to be taken into account under the Plan during any Plan Year
in which the Plan is determined to be a Top-Heavy Plan shall not exceed $150,000 (or such adjusted
amount determined by the Secretary of the Treasury pursuant to Section 416(d)(2) of the Code).

17.5 Top-Heavy Vesting Provisions.

In the event that the Plan is determined to be a Top-Heavy Plan with respect to any Plan Year, a
Member who is eligible to receive the vested interest of his IAR Account and/or Profit Sharing
Account (as applicable) in accordance with the provisions of Section 7.2 shall be vested in a
portion of IAR Account which shall be no less than it would be under following vesting schedule:

	 	 	 
	Years of Service
	 	Vested Percentage

	Less than two years
	 	0%
	Two but less than three years
	 	20%
	Three but less than four years
	 	40%
	Four but less than five years
	 	60%
	Five years
	 	100%

-64-

 

17.6 Top-Heavy Plan/Benefit Limitations.

In any Plan Year in which the Plan is a Top-Heavy Plan, the denominators of the defined benefit
fraction and the defined contribution fraction (as such terms are used in applying the benefit
limitation provisions of Section 415 of the Code) shall be computed using 100 percent of the dollar
limitation instead of 125 percent.

[Signature Page to Follow]

-65-

 

     Executed
this 28 day of April, 2003, effective for all purposes as provided above.

	 	 	 
	COOPER CAMERON CORPORATION

	 
	 	 
	By:
	 	/s/ Jane L. Crowden
	

	 	
 
	Name:
	 	Jane L. Crowden
	

	 	
 
	Title:
	 	VP, Human Resources
	

	 	
 

 

 

ADDENDA

TABLE OF CONTENTS

	 	 	 	 	 
	Addendum	 	Page	 
	Cameron Division Plant in Liberty, TX
	 	AD-3
	Cameron Division Plant in Patterson, LA
	 	AD-4
	Cooper Cameron Valves Plant in Ville Platte, LA
	 	AD-5
	Cooper Energy Services Division Plant in Houston, TX (Texcentric)
	 	AD-6
	Cameron Division Plant in Oklahoma City, OK (Demco)
	 	AD-7
	Wheeling Machine Products Division Facility in Pine Bluff, AR
	 	AD-9
	Cooper Cameron Valves Division Plant in Little Rock, AR
	 	AD-10
	Cooper Energy Services Division Plant at Ponca City, OK (Nickles)
	 	AD-12

AD-1

 

GEOGRAPHICAL INDEX TO ADDENDA

	 	 	 	 	 
	Location	 	Page	 
	Houston, TX

Cooper Energy Services Division Plant in Houston, TX
(Texcentric)
	 	AD-6
	Liberty, TX

Cameron Division Plant in Liberty, TX
	 	AD-3
	Little Rock, AR

Cooper Cameron Valves Division Plant in Little Rock, AR
	 	AD-10
	Oklahoma City, OK

Cameron Division Plant in Oklahoma City, OK (Demco)
	 	AD-7
	Patterson, LA

Cameron Division Plant in Patterson, LA
	 	AD-4
	Pine Bluff, AR

Wheeling Machine Division Facility Company in Pine Bluff, AR
	 	AD-9
	Ponca City, OK

Cooper Energy Services Division Plant in Ponca City, OK
(Nickles)
	 	AD-12
	Ville Platte, LA

Cooper Cameron Valves Plant in Ville Platte, LA
	 	AD-5

AD-2

 

COOPER CAMERON CORPORATION

RETIREMENT SAVINGS PLAN

ADDENDUM

FOR EMPLOYEES OF

CAMERON DIVISION PLANT AT LIBERTY, TEXAS

     Pursuant to Section 16.8 of the Cooper Cameron Corporation Retirement Savings Plan (“Plan”),
this Addendum relates to the Liberty, Texas plant at the Cameron Division of the Company.

     A. SPECIAL ACCOUNT FOR PRIOR PLAN BENEFITS:

     A separate subaccount shall be maintained with respect to benefits of a Member that were
transferred to the Plan (formerly the Cooper Savings Plan) from the Cameron Salaried and
Non-Bargaining Hourly Employees’ Retirement Plan and then to the Plan. Such separate subaccount
shall be 100% vested in such Member.

AD-3

 

COOPER CAMERON CORPORATION

RETIREMENT SAVINGS PLAN

ADDENDUM

FOR EMPLOYEES OF

CAMERON DIVISION PLANT AT PATTERSON, LOUISIANA

     Pursuant to Section 16.8 of the Cooper Cameron Corporation Retirement Savings Plan (“Plan”),
this Addendum relates to the Patterson, Louisiana plant at the Cameron Division of the Company.

     A. SECTION 3.6 — COMPANY RETIREMENT CONTRIBUTIONS:

     In addition to the Company Retirement Contribution otherwise set forth in Section 3.6, the
Company shall make the additional monthly Company Retirement Contribution set forth below with
respect to the following Members:

	 	 	 	 	 
	 	 	 	 	Monthly Additional
	 	 	 	 	Company Retirement
	Member
	 	SSN
	 	Contribution

	1. Crouch, Anthony J.
	 	###-##-####	 	$72.31
	2. Gant, Charles
	 	###-##-####	 	72.97
	3. Riley, Ronald
	 	###-##-####	 	86.56
	4. Trahen, Wilfred
	 	###-##-####	 	71.61

     B. SPECIAL ACCOUNT FOR PRIOR PLAN BENEFITS:

     A separate subaccount shall be maintained with respect to benefits of a Member that were
transferred to the Plan (formerly the Cooper Savings Plan) from the Cameron Salaried and
Non-Bargaining Hourly Employees’ Retirement Plan and then to the Plan. Such separate subaccount
shall be 100% vested in such Member.

AD-4

 

COOPER CAMERON CORPORATION

RETIREMENT SAVINGS PLAN

ADDENDUM

FOR EMPLOYEES OF COOPER CAMERON VALVES PLANT

IN VILLE PLATTE, LOUISIANA

     Pursuant to Section 16.8 of the Cooper Cameron Corporation Retirement Savings Plan (“Plan”),
this Addendum relates to the Ville Platte, Louisiana plant of the Cooper Cameron Valves Division of
the Company.

     A. SPECIAL ACCOUNT FOR PRIOR PLAN BENEFITS:

     A separate subaccount shall be maintained with respect to benefits of a Member that were
transferred to the Plan (formerly the Cooper Savings Plan) from the Cameron Salaried and
Non-Bargaining Hourly Employees’ Retirement Plan and then to the Plan. Such separate subaccount
shall be 100% vested in such Member.

AD-5

 

COOPER CAMERON CORPORATION

RETIREMENT SAVINGS PLAN

ADDENDUM

FOR EMPLOYEES OF THE COOPER ENERGY SERVICES

DIVISION AT THE HOUSTON, TEXAS PLANT

(TEXCENTRIC)

     Pursuant to Section 16.8 of the Cooper Cameron Corporation Retirement Savings Plan (“Plan”),
this Addendum relates to the Houston, Texas plant at the Cooper Energy Services Division (formerly
Texcentric) of the Company.

     A. SECTION 3.6 — COMPANY RETIREMENT CONTRIBUTIONS:

     In addition to the Company Retirement Contribution otherwise set forth in Section 3.6, the
Company shall make the additional monthly Company Retirement Contribution set forth below with
respect to the following Members:

	 	 	 	 	 
	 	 	 	 	Monthly Additional
	 	 	 	 	Company Retirement
	Member
	 	SSN
	 	Contribution

	1. Lee, Willie A.
	 	###-##-####	 	$130.00
	2. Kor, Jack
	 	###-##-####	 	  $54.00
	3. Shuck, Roger
	 	###-##-####	 	  $25.00
	4. Cunningham, George
	 	###-##-####	 	  $75.00

AD-6

 

COOPER CAMERON CORPORATION

RETIREMENT SAVINGS PLAN

ADDENDUM

FOR EMPLOYEES OF

CAMERON DIVISION PLANT AT OKLAHOMA CITY, OKLAHOMA

(DEMCO)

     Pursuant to Section 16.8 of the Cooper Cameron Corporation Retirement Savings Plan (“Plan”),
this Addendum relates to the Oklahoma City, Oklahoma facility of the Cameron Division of the
Company (formerly Demco).

     A. SECTION 3.6 — COMPANY RETIREMENT CONTRIBUTIONS:

     In addition to the Company Retirement Contribution otherwise set forth in Section 3.6, the
Company shall make the additional monthly Company Retirement Contribution with respect to each
Member who was employed on September 30, 1989 at a Cooper Cameron (formerly a Cooper Industries,
Inc.) facility and in an employment classification set forth on the Additional Retiree Medical
Credit Eligibility list as set forth below; provided, however, that such amount shall be prorated
and credited to such Member’s IAR Account based upon the number of pay periods applicable to such
Member in such month during which the Member was employed at a facility and in an employment
classification set forth on the Additional Retiree Medical Credit Eligibility List.

	 	(1)	 	Active members on October 1, 1989 in the Plan (formerly the
Cooper Savings Plan), who became Members on April 1, 1995, who attained at
least age 50 on December 31, 1989 and who elected retiree medical coverage.

	 	 	 
	 	 	Monthly Additional
	Year of Birth
	 	Credit Amount

	1939
	 	$60.00
	1938
	 	$60.00
	1937
	 	$65.00
	1936
	 	$65.00
	1935
	 	$70.00
	1934 or earlier
	 	$75.00

	 	(2)	 	Active Members on October 1, 1989 in the Plan (formerly the
Cooper Savings Plan), who became Members on April 1, 1995, who attained at
least age 50 on December 31, 1989 and who did not elect retiree medical
coverage.

	 	 	 
	 	 	Monthly Additional
	Year of Birth
	 	Credit Amount

	1939
	 	$105.00
	1938
	 	$110.00
	1937
	 	$115.00
	1936
	 	$120.00
	1935
	 	$125.00
	1934 or earlier
	 	$130.00

AD-7

 

	 	(3)	 	Active members on October 1, 1989 in the Plan (formerly the
Cooper Savings Plan), who became Members on April 1, 1995, and who had not
attained age 50 on December 31, 1989.

	 	 	 
	 	 	Monthly Additional
	Year of Birth
	 	Credit Amount

	1964 or later
	 	$10.00
	1963
	 	$11.00
	1962
	 	$13.00
	1961
	 	$15.00
	1960
	 	$17.00
	1959
	 	$19.00
	1958
	 	$21.00
	1957
	 	$23.00
	1956
	 	$25.00
	1955
	 	$27.00
	1954
	 	$29.00
	1953
	 	$31.00
	1952
	 	$34.00
	1951
	 	$37.00
	1950
	 	$40.00
	1949
	 	$44.00
	1948
	 	$48.00
	1947
	 	$52.00
	1946
	 	$54.00
	1945
	 	$60.00
	1944
	 	$65.00
	1943
	 	$70.00
	1942
	 	$75.00
	1941
	 	$80.00
	1940
	 	$90.00

     B. SPECIAL ACCOUNT FOR PRIOR PLAN BENEFITS:

     A separate subaccount shall be maintained with respect to benefits of a Member that were
transferred to the Plan (formerly the Cooper Savings Plan) from the Demco Pension Plan for Hourly
and Non-Exempt Salaried Employees and then to the Plan. Such separate subaccount shall be 100%
vested in such Member.

AD-8

 

COOPER CAMERON CORPORATION

RETIREMENT SAVINGS PLAN

ADDENDUM

FOR EMPLOYEES OF THE WHEELING MACHINE PRODUCTS DIVISION FACILITY

AT PINE BLUFF, ARKANSAS

     Pursuant to Section 16.8 of the Cooper Cameron Corporation Retirement Savings Plan (“Plan”),
this Addendum relates to the Pine Bluff, Arkansas facility of the Wheeling Machine Products
Division of the Company.

     A. SPECIAL ACCOUNT FOR PRIOR PLAN BENEFITS:

     A separate subaccount shall be maintained with respect to benefits of a Member that were
transferred to the Cooper Savings Plan from the Pension Plan for Hourly Employees in the Pine
bluff, Arkansas Facilities and then to the Plan. Such separate subaccount shall be 100% vested in
such Member.

AD-9

 

COOPER CAMERON CORPORATION

RETIREMENT SAVINGS PLAN

ADDENDUM

FOR EMPLOYEES OF COOPER CAMERON VALVES DIVISION PLANT AT LITTLE ROCK, ARKANSAS

     Pursuant to Section 16.8 of the Cooper Cameron Corporation Retirement Savings Plan (“Plan”),
this Addendum relates to the Cooper Cameron Valves Plant of the Company in Little Rock, Arkansas
(formerly Orbit Valve).

A. SPECIAL ACCOUNT FOR PRIOR PLAN BENEFITS:

     Separate sub-accounts shall be maintained with respect to benefits of a Member (an “Orbit
Member”) that were transformed to the Plan from the Orbit Valve Company Profit Sharing Plan (the
“Orbit Profit Sharing Plan”) and the Orbit Valve Company Employee Savings Plan (the “Orbit Savings
Plan”). Amounts in such separate sub-accounts that are attributable to a Member’s Matching and
Profit Sharing Contribution Accounts under the Orbit Savings Plan and a Member’s Account under the
Orbit Profit Sharing Plan shall respectively vest in accordance with the vesting schedule contained
in the plans from which such amounts were transferred, which is set forth below:

	 	 	 
	YEARS OF SERVICE
	 	NONFORFEITABLE PERCENTAGE

	0-4
	 	    0%
	5 or more
	 	100%

     In addition to the lump sum method of distribution of benefits set forth in Section 10.2 of
the Plan, an Orbit Member may elect to receive his such separate sub-accounts in periodic
installment payments for any term not extending beyond the life expectancy of such Member or the
joint and last survivor expectancy of such Member and a designated beneficiary. An Orbit Member
may make such an election only if the method of payment of any such form is in compliance with
Section 401(a)(9) of the Code and applicable Treasury regulations thereunder.

     In addition to the lump sum method of distribution of benefits set forth in Section 11.4 of
the Plan, the beneficiary of an Orbit Member may elect to receive payment of the separate
sub-accounts of the deceased Orbit Member in periodic installments for any term not extending
beyond the life expectancy of such beneficiary so long as the method of payment of such form is
compliance with Section 401(a)(9) of the Code and applicable treasury regulations thereunder. A
beneficiary’s election as to the method of distribution of such separate sub-accounts must be made
within the 90-day period ending on the first day of the first period for which an amount is payable
to such beneficiary. If a beneficiary fails to make an election within such 90-day period, the
separate sub-accounts of the deceased Orbit Member will be paid to such beneficiary in one lump
sum. If a beneficiary properly elects to receive payments in periodic installments, after such
installment payments commence, the beneficiary will have the option to reduce the period over which
such installments shall be made with the payments being adjusted accordingly. Upon the death of
such beneficiary, the remaining balance in the separate sub-account will be paid as soon as
administratively possible in one lump sum cash payment, to the beneficiary’s executor or to his
heirs at law if there is no administration of such beneficiary’s estate.

     In addition to the withdrawal rights contained in Section 8.2 of the Plan, Orbit Members who
participated in the Orbit Profit Sharing Plan may withdraw all or any part of the vested amount of
their

AD-10

 

Employer profit sharing contributions credited to their Matching Account after attaining age
591/2; provided, however, that such Members may only exercise such withdrawal rights once during
every six-month period of a calendar year. Furthermore, an Orbit Member who participated in the
Orbit Profit Sharing Plan with less than five years of Vesting Service may not withdraw amounts
which would reduce the Matching Account balance below the aggregate Employer profit sharing
contribution amounts allocated to such Member’s Participation Account during the two Plan Years
preceding the Plan merger date.

     In addition to the withdrawal rights contained in Section 8.2 of the Plan, an Orbit Member who
participated in the Orbit Savings Plan may withdraw all or any part of his sub-accounts
attributable to his Elective Contribution Account under such plan after attaining age 591/2;
provided, however, that such a Member may only exercise such withdrawal rights once during every
six-month period of a calendar year.

     Additional rights and restrictions that apply with respect to such separate sub-accounts are
described in the instruments entitled “Merged Orbit Valve Company Employee Savings Plan With and
Into Cooper Cameron Retirement Savings Plan” and “Merger of Orbit Valve Company Profit Sharing Plan
With and Into Cooper Cameron Corporation Retirement Savings Plan.

AD-11

 

COOPER CAMERON CORPORATION

RETIREMENT SAVINGS PLAN

ADDENDUM

FOR EMPLOYEES OF

COOPER ENERGY SERVICES DIVISION PLANT AT PONCA CITY, OKLAHOMA (NICKLES)

     Pursuant to Section 16.8 of the Cooper Cameron Corporation Retirement Savings Plan (“Plan”),
this Addendum relates to the Ponca City, Oklahoma plant at the Cooper Energy Services Division
(formerly Nickles) of the Company.

A. SPECIAL ACCOUNT FOR PRIOR PLAN BENEFITS:

     A separate sub-account shall be maintained under each Plan Account, with respect to the
benefits of a Member that was transferred to the Plan from the Nickles Machine Corporation Defined
Contribution Matching Plan and Trust (the “Nickles Plan”).

     In addition to the in service withdrawal rights contained in Section 8.2 of the Plan, such a
Member shall be permitted to withdraw all or any part of the separate sub-account portion of his
Supplemental Account under the Plan at any time. Further, after he attains age 591/2, such a Member
shall be permitted to withdraw any amount credited to such separate sub-accounts; provided,
however, that a withdrawal made pursuant to this sentence may be in any amount and may be made up
to two times in any 12 month period. Additional forms for distribution of benefits to such Members
and their beneficiaries, which were initially preserved in connection with the transfer of account
balances from the Nickles Plan to the Plan, were eliminated in accordance with Treasury Regulation
§ 1.411(d)-4 Q & A2(e).

AD-12

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