Document:

Exhibit 10.7

 

WaMu
Savings Plan

 

 

As
Amended and Restated

Effective
January 1, 2006

(Except
where other effective dates are specifically set forth herein)

 

 

TABLE OF CONTENTS

 

	
   

  	
  Page

  
	
   

  	
   

  
	
  PREAMBLE

  	
  1

  
	
   

  	
   

  
	
  ARTICLE I

  	
  NATURE OF
  PLAN

  	
  2

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.1

  	
  Purpose

  	
  2

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE II

  	
  DEFINITIONS

  	
  3

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.1

  	
  Account or
  Accounts

  	
  3

  
	
   

  	
  2.2

  	
  Actual
  Contribution Percentage Test

  	
  3

  
	
   

  	
  2.3

  	
  Actual
  Deferral Percentage Test

  	
  3

  
	
   

  	
  2.4

  	
  Alternate
  Payee

  	
  3

  
	
   

  	
  2.5

  	
  Beneficiary

  	
  3

  
	
   

  	
  2.6

  	
  Break in
  Service

  	
  4

  
	
   

  	
  2.7

  	
  Benefit
  Commencement Date

  	
  4

  
	
   

  	
  2.8

  	
  Catch-Up
  Contribution

  	
  4

  
	
   

  	
  2.9

  	
  Code

  	
  4

  
	
   

  	
  2.10

  	
  Committee or
  Committees

  	
  4

  
	
   

  	
  2.11

  	
  Company

  	
  4

  
	
   

  	
  2.12

  	
  Compensation

  	
  4

  
	
   

  	
  2.13

  	
  Considered
  Compensation

  	
  6

  
	
   

  	
  2.14

  	
  Disabled or
  Disability

  	
  6

  
	
   

  	
  2.15

  	
  Early
  Retirement Age

  	
  6

  
	
   

  	
  2.16

  	
  Eligible
  Employee

  	
  6

  
	
   

  	
  2.17

  	
  Employee

  	
  7

  
	
   

  	
  2.18

  	
  Employee
  After-Tax Contribution

  	
  7

  
	
   

  	
  2.19

  	
  Employment
  Commencement Date

  	
  7

  
	
   

  	
  2.20

  	
  Employer

  	
  7

  
	
   

  	
  2.21

  	
  Entry Date

  	
  7

  
	
   

  	
  2.22

  	
  ERISA

  	
  7

  
	
   

  	
  2.23

  	
  ESOP

  	
  7

  
	
   

  	
  2.24

  	
  Forfeitures

  	
  7

  
	
   

  	
  2.25

  	
  Highly
  Compensated Employee

  	
  7

  
	
   

  	
  2.26

  	
  Hour of
  Service

  	
  8

  
	
   

  	
  2.27

  	
  Human
  Resources Committee

  	
  9

  
	
   

  	
  2.28

  	
  Inactive
  Participant

  	
  9

  
	
   

  	
  2.29

  	
  Leased
  Employee

  	
  9

  
	
   

  	
  2.30

  	
  Leave of
  Absence

  	
  9

  
	
   

  	
  2.31

  	
  Limitation
  Year

  	
  10

  
	
   

  	
  2.32

  	
  Matching
  Contribution

  	
  10

  
	
   

  	
  2.33

  	
  Normal
  Retirement Age

  	
  10

  
	
   

  	
  2.34

  	
  Parental
  Leave of Absence

  	
  10

  
	
   

  	
  2.35

  	
  Participant

  	
  10

  
	
   

  	
  2.36

  	
  Participating
  Employer

  	
  10

  
	
   

  	
  2.37

  	
  Plan

  	
  10

  

 

i

 

	
   

  	
  2.38

  	
  Plan
  Administration Committee

  	
  11

  
	
   

  	
  2.39

  	
  Plan
  Investment Committee

  	
  11

  
	
   

  	
  2.40

  	
  Plan Year

  	
  11

  
	
   

  	
  2.41

  	
  Profit
  Sharing Contributions

  	
  11

  
	
   

  	
  2.42

  	
  Qualified
  Domestic Relations Order (QDRO)

  	
  11

  
	
   

  	
  2.43

  	
  Qualified
  Employer Contributions

  	
  11

  
	
   

  	
  2.44

  	
  Qualified
  Non-Elective Contribution (QNEC)

  	
  11

  
	
   

  	
  2.45

  	
  Reemployment
  Commencement Date

  	
  11

  
	
   

  	
  2.46

  	
  Related
  Employer

  	
  11

  
	
   

  	
  2.47

  	
  Related Plan

  	
  11

  
	
   

  	
  2.48

  	
  Required
  Beginning Date

  	
  12

  
	
   

  	
  2.49

  	
  Retirement

  	
  12

  
	
   

  	
  2.50

  	
  Rollover
  Contribution

  	
  12

  
	
   

  	
  2.51

  	
  Salary
  Deferral Contribution

  	
  12

  
	
   

  	
  2.52

  	
  Service

  	
  12

  
	
   

  	
  2.53

  	
  Trust

  	
  12

  
	
   

  	
  2.54

  	
  Trust
  Agreement

  	
  13

  
	
   

  	
  2.55

  	
  Trustee

  	
  13

  
	
   

  	
  2.56

  	
  Valuation
  Date

  	
  13

  
	
   

  	
  2.57

  	
  WSP

  	
  13

  
	
   

  	
  2.58

  	
  Year of
  Eligibility Service

  	
  13

  
	
   

  	
  2.59

  	
  Year of
  Vesting Service

  	
  13

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE III

  	
  ELIGIBILITY
  AND PARTICIPATION

  	
  14

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.1

  	
  Eligibility
  to Participant in the Plan

  	
  14

  
	
   

  	
  3.2

  	
  Transfers of
  Employment

  	
  15

  
	
   

  	
  3.3

  	
  Resumption
  of Participation Following Reemployment

  	
  15

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IV

  	
  PARTICIPANT
  CONTRIBUTIONS

  	
  16

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  4.1

  	
  Salary Deferral
  Contributions

  	
  16

  
	
   

  	
  4.2

  	
  General
  Rules for Salary Deferral Contributions

  	
  16

  
	
   

  	
  4.3

  	
  Catch-up
  Contributions

  	
  16

  
	
   

  	
  4.4

  	
  Rollover
  Contributions and Trust Transfers

  	
  17

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE V

  	
  EMPLOYER
  CONTRIBUTIONS

  	
  18

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  5.1

  	
  Matching
  Contribution

  	
  18

  
	
   

  	
  5.2

  	
  Profit Sharing
  Contributions

  	
  18

  
	
   

  	
  5.3

  	
  Top Heavy
  Minimum Contribution

  	
  19

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IV

  	
  BENEFIT
  LIMITATIONS

  	
  20

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  6.1

  	
  Section
  402(g) Limit on Salary Deferral Contributions

  	
  20

  
	
   

  	
  6.2

  	
  Safe Harbor

  	
  20

  
	
   

  	
  6.3

  	
  Nondiscrimination
  Tests

  	
  21

  
	
   

  	
  6.4

  	
  Corrective
  Procedures to Satisfy Nondiscrimination Tests

  	
  23

  
	
   

  	
  6.5

  	
  Maximum
  Annual Additions to a Participant’s Account

  	
  24

  

 

 

	
  ARTICLE VII

  	
  IN SERVICE
  WITHDRAWALS AND LOANS

  	
  26

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  7.1

  	
  In-Service
  Withdrawal From Accounts

  	
  26

  
	
   

  	
  7.2

  	
  Age 591⁄2
  Withdrawals

  	
  26

  
	
   

  	
  7.3

  	
  Hardship
  Withdrawals

  	
  26

  
	
   

  	
  7.4

  	
  Loans

  	
  28

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VIII

  	
  VESTING AND
  DISTRIBUTION OF BENEFITS

  	
  31

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.1

  	
  Vesting

  	
  31

  
	
   

  	
  8.2

  	
  Forfeiture
  of Contingent Interests

  	
  32

  
	
   

  	
  8.3

  	
  Distribution
  Upon Severance from Employment

  	
  33

  
	
   

  	
  8.4

  	
  Mandatory
  Distribution At Age 65

  	
   

  
	
   

  	
  85

  	
  Benefits
  Upon Disability

  	
  33

  
	
   

  	
  8.6

  	
  Death
  Benefits

  	
  34

  
	
   

  	
  8.7

  	
  Beneficiary
  Designation

  	
  34

  
	
   

  	
  8.8

  	
  Forms of
  Distribution

  	
  34

  
	
   

  	
  8.9

  	
  Payment
  Rules

  	
  35

  
	
   

  	
  8.10

  	
  Small
  Amounts

  	
  35

  
	
   

  	
  8.11

  	
  Required
  Beginning Date

  	
  36

  
	
   

  	
  8.12

  	
  Required
  Minimum Distributions

  	
  36

  
	
   

  	
  8.13

  	
  Direct
  Rollovers

  	
  40

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IX

  	
  PARTICIPANT
  ACCOUNTS

  	
  42

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  9.1

  	
  Individual
  Accounts

  	
  42

  
	
   

  	
  9.2

  	
  Allocation
  of Trust Fund Earnings and Losses to Participant Accounts

  	
  42

  
	
   

  	
  9.3

  	
  Account
  Statements

  	
  42

  
	
   

  	
  9.4

  	
  Finality of
  Determinations

  	
  43

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE X

  	
  INVESTMENT
  ELECTIONS

  	
  44

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  10.1

  	
  Permissible
  Investments

  	
  44

  
	
   

  	
  10.2

  	
  Investment
  of Contributions

  	
  44

  
	
   

  	
  10.3

  	
  Initial
  Investment Elections

  	
  44

  
	
   

  	
  10.4

  	
  Changing
  Future Contributions

  	
  45

  
	
   

  	
  10.5

  	
  Reinvesting
  Existing Account Balances

  	
  45

  
	
   

  	
  10.6

  	
  ESOP
  Dividend Election

  	
  45

  
	
   

  	
  10.7

  	
  Diversification
  Requirements

  	
  46

  
	
   

  	
  10.8

  	
  Right to
  Repurchase of Company Stock

  	
  47

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XI

  	
  THE
  TRUST/FINANCING

  	
  48

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  11.1

  	
  Purpose of
  the Trust

  	
  48

  
	
   

  	
  11.2

  	
  Appointment
  of Trustee

  	
  48

  
	
   

  	
  11.3

  	
  Exclusive
  Benefit of Participants

  	
  48

  
	
   

  	
  11.4

  	
  Benefits
  Supported Only By the Trust

  	
  48

  
	
   

  	
  11.5

  	
  Rights to
  Trust Assets

  	
  48

  
	
   

  	
  11.6

  	
  Payment of
  Expenses

  	
  48

  
	
   

  	
  11.7

  	
  Deductible
  Contribution

  	
  49

  

 

 

	
   

  	
  11.8

  	
  Voting

  	
  49

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XII

  	
  ADMINISTRATION

  	
  50

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  12.1

  	
  Committees

  	
  50

  
	
   

  	
  12.2

  	
  Administration

  	
  50

  
	
   

  	
  12.3

  	
  Indemnity

  	
  52

  
	
   

  	
  12.4

  	
  Bonding and
  Insurance

  	
  52

  
	
   

  	
  12.5

  	
  Fiduciaries

  	
  52

  
	
   

  	
  12.6

  	
  Claims and
  Appeals Procedures

  	
  54

  
	
   

  	
  12.7

  	
  Authority of
  Officers

  	
  55

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XIII

  	
  AMENDMENT
  AND TERMINATION

  	
  56

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  13.1

  	
  Amendment –
  General

  	
  56

  
	
   

  	
  13.2

  	
  Amendment –
  Vesting Schedule

  	
  56

  
	
   

  	
  13.3

  	
  Amendment –
  Consolidation or Merger

  	
  57

  
	
   

  	
  13.4

  	
  Termination
  of the Plan

  	
  57

  
	
   

  	
  13.5

  	
  Amendment
  Procedures

  	
  57

  
	
   

  	
  13.6

  	
  Plan
  Qualification

  	
  57

  
	
   

  	
  13.7

  	
  Allocation
  of the Trust Fund on Termination of Plan

  	
  57

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XIV

  	
  EMPLOYER
  PARTICIPATION/RELATED EMPLOYERS

  	
  58

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  14.1

  	
  Adoption by Employer

  	
  58

  
	
   

  	
  14.2

  	
  Effective
  Plan Provisions

  	
  58

  
	
   

  	
  14.3

  	
  Withdrawal
  by Employer

  	
  58

  
	
   

  	
  14.4

  	
  Termination
  by Participation by Participating Employer

  	
  58

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XV

  	
  MISCELLANEOUS
  PROVISIONS

  	
  59

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  15.1

  	
  Notices and
  Communications

  	
  59

  
	
   

  	
  15.2

  	
  Personal
  Data to Plan Administration Committee

  	
  59

  
	
   

  	
  15.3

  	
  Evidence

  	
  60

  
	
   

  	
  15.4

  	
  Information
  Available

  	
  60

  
	
   

  	
  15.5

  	
  Alienation

  	
  60

  
	
   

  	
  15.6

  	
  Execution of
  Receipts and Releases

  	
  60

  
	
   

  	
  15.7

  	
  Facility of
  Payment

  	
  61

  
	
   

  	
  15.8

  	
  Correction
  of Errors

  	
  61

  
	
   

  	
  15.9

  	
  Missing
  Persons

  	
  61

  
	
   

  	
  15.10

  	
  Back Pay Awards

  	
  62

  
	
   

  	
  15.11

  	
  Exclusive
  Benefit Rule

  	
  62

  
	
   

  	
  15.12

  	
  Qualified
  Domestic Relations Orders

  	
  63

  
	
   

  	
  15.13

  	
  Mistake of
  Fact

  	
  63

  
	
   

  	
  15.14

  	
  No Guarantee
  of Interests

  	
  63

  
	
   

  	
  15.15

  	
  Interpretations
  and Adjustments

  	
  64

  
	
   

  	
  15.16

  	
  Uniform
  Rules

  	
  64

  
	
   

  	
  15.17

  	
  Severability

  	
  64

  
	
   

  	
  15.18

  	
  Successors

  	
  64

  

 

 

	
   

  	
  15.19

  	
  Headings

  	
  64

  
	
   

  	
  15.20

  	
  Governing
  Law

  	
  65

  
	
   

  	
   

  	
   

  	
   

  
	
  APPENDIX A -
  ACQUIRED COMPANY PROVISIONS

  	
  66

  

 

 

PREAMBLE

 

Washington Mutual Savings Bank, predecessor to Washington Mutual Bank,
established the Washington Mutual Savings Bank Employee Incentive Savings Plan
(the “Plan”) effective July 1, 1973. The Plan was amended and restated in
its entirety effective January 1, 1976 and again on July 1, 1981. Effective
January 1, 1985, the Plan was amended and restated in its entirety to
consolidate prior amendments and to comply with the requirements of the Tax
Equity and Fiscal Responsibility Act of 1982, the Deficit Reduction Act of 1984
and the Retirement Equity Act of 1984. The Plan was again amended and restated
on January 1, 1987 to consolidate amendments and to make certain other changes.

 

On June 24, 1991, effective January 1, 1987, the Plan was amended and
restated and renamed the Washington Mutual Savings Bank Retirement Savings and
Investment Plan. The restated Plan was amended to incorporate a cash or
deferred arrangement described in section 401(k) of the Internal Revenue Code
and to comply with the requirements of the Tax Reform Act of 1986, the Revenue
Act of 1987, the Technical and Miscellaneous Revenue Act of 1988, the Omnibus
Budget Reconciliation Act of 1989, and the Omnibus Budget Reconciliation Act of
1990. The Plan was amended from time to time since such restatement.

 

Effective January 1, 1994, and September 30, 1998, the Plan was again
amended and restated to reflect Washington Mutual, Inc. as the Plan sponsor and
to comply with certain statutory changes. The Plan was amended April 1, 2002 to
include an employee stock ownership program (“ESOP”).

 

Effective January 1, 2004, the Plan was again amended and restated and
renamed the WaMu Savings Plan (“Plan”). The restated Plan was amended to be a
safe harbor plan for ADP/ACP testing purposes, to consolidate amendments and to
reflect certain provisions of the Economic Growth and Tax Relief Reconciliation
Act of 2001 (“EGTRRA”) and other statutory changes.

 

Due to corporate mergers and acquisitions engaged in by Employers
hereunder, the Plan has from time to time been merged with the tax-qualified
defined contribution plans formerly sponsored by certain entities. To the
extent described in Appendix A credit for service with certain acquired or
merged entities has been extended under the Plan to employees that have become
Participants.

 

The Company desires to amend and restate the Plan again, in order to
reflect statutory and benefits design changes, and to incorporate amendments
made since the prior restatement. In consideration of the foregoing, the Plan
is hereby amended and restated as follows, to be generally effective as of
January 1, 2006, except as otherwise set forth in specific provisions.

 

1

 

ARTICLE I

 

NATURE OF PLAN

 

1.1           Purpose

 

The Company
established and maintains the Plan in order to aid Eligible Employees to
accumulate capital for their retirement. The Company intends that the Plan
continue to be qualified under Code section 401(a), with a cash or deferred
arrangement qualified under Code section 401(k) and a trust exempt from
taxation under Code section 501(a). Pursuant to the requirements of Code
section 401(a)(27), the Company also intends that the Plan be a profit sharing
plan.

 

Effective April 1,
2002, the Plan consists of the WaMu Savings Program (“WSP”) and the Employee
Stock Ownership Program (“ESOP”). The ESOP is designed to invest primarily in
qualifying employer securities, and is intended to qualify as an employee stock
ownership plan within the meaning of ERISA Section 407(d)(6) and Code Section
4975(e)(7).

 

The provisions of
this Plan (as herein amended and restated) shall generally apply only to an
Employee, former Employee, Participant or Inactive Participant whose Service
with the Company terminates on or after January 1, 2006, except as otherwise
provided herein. For example, amendments with retroactive effective dates prior
to January 1, 2006 that are designed to bring the plan document into
conformance with the prior operation of the plan (e.g., regarding automatic
rollovers) would apply to participants who terminated employment on or after
such retroactive effective date. The rights of any Employee, former Employee,
Participant or Inactive Participant whose Service with the Employer terminated
before January 1, 2006, except as otherwise provided herein, shall be governed
by the Plan as it existed prior to this amendment and restatement.

 

 

ARTICLE II

 

DEFINITIONS

 

Capitalized words
and phrases used in this Plan shall have the meanings specified in this
Article, unless a different meaning is clearly required by the context.  Any words herein used in the masculine shall
be read and construed in the feminine where they would so apply.  Words in the singular shall be read and
construed as though used in the plural in all cases where they would so apply.

 

2.1           Account or
Accounts.  “Account” or “Accounts” means
the accounts established for the purpose of recording any contributions made on
behalf of a Participant and any income, expenses, gains, or losses incurred
thereon. The Plan Administration Committee shall establish and maintain such
other sub-accounts as it decides in its discretion to be reasonably required or
appropriate in order to discharge its duties under the Plan.

 

2.2           Actual
Contribution Percentage Test.  “Actual
Contribution Percentage Test” or “ACP test” means the test described in Plan
Section 6.3(b).

 

2.3           Actual
Deferral Percentage Test.  “Actual
Deferral Percentage Test” or “ADP test” means the test described in Plan
Section 6.3(a).

 

2.4           Alternate
Payee.  “Alternate Payee” means any
spouse, former spouse, child, or other dependent of a Participant who is
recognized by a Qualified Domestic Relations Order as having a right to receive
all, or a portion of, the benefits payable under the Plan with respect to such
Participant.

 

2.5           Beneficiary.  “Beneficiary” means any person or fiduciary
designated by a Participant who is or may become entitled to a benefit under
the Plan following the death of the Participant; provided, that in the case of
a married Participant, the Participant’s Beneficiary shall be the Participant’s
surviving spouse unless the Participant’s spouse:

 

(a)           Consents
to the designation of another party as Beneficiary of all or a part of the
benefit to which the Participant may become entitled under the Plan,

 

(b)           Such
election designates a Beneficiary (or a form of benefit) which may not be
changed without spousal consent (or the consent of the spouse expressly permits
designations by the Participant without any requirement of further spousal
consent),

 

(c)           The
spouse’s consent acknowledges the effect of such election, and

 

(d)           Such
consent is witnessed by a notary public or a member of the Plan Administration
Committee.

 

Such
spousal consent shall not be required if it is established to the satisfaction
of the Plan Administration Committee that such consent cannot be obtained
because the spouse cannot 

 

 

be located or because of such other
circumstances as the Secretary of the Treasury may prescribe by regulations.
Any consent by a spouse hereunder shall be effective only with respect to that
spouse.

 

2.6           Break in
Service.  A “Break in Service” means a
Plan Year during which an Employee or Participant does not complete more than
500 Hours of Service, determined as of the end of the Plan Year.  To the extent required by Code section
414(u), a Participant shall not be considered to have incurred a Break in Service
with respect to any period of qualified military service by such Participant.

 

Solely
for purposes of determining whether a Break in Service has occurred, an
individual who is absent from work for any unpaid Leave of Absence or Parental
Leave of Absence shall receive credit for 8 Hours of Service per day of such
absence, provided, however, that the total number of Hours of Service to be so
credited on account of any such absence shall not exceed 501. The Hours of
Service credited under this provision for any unpaid Leave of Absence shall be
credited beginning in the Plan Year in which the absence begins.  The Hours of Service credited under this
provision in the case of a Parental Leave of Absence shall be credited (1) in
the Plan Year in which the absence begins, if crediting is necessary to prevent
a Break in Service in that period, or (2) in all other cases, in the following
Plan Year.

 

2.7           Benefit
Commencement Date.  The term “Benefit
Commencement Date” means the first day of the first period for which a Plan
benefit is payable to a Participant or Beneficiary under the terms of the Plan.

 

2.8           Catch-Up
Contribution.  “Catch-up Contribution”
means a contribution made by the Employer pursuant to Section 4.3.

 

2.9           Code.  “Code” means the Internal Revenue Code of
1986, as amended and including all regulations promulgated pursuant thereto.

 

2.10         Committee or
Committees.  “Committee” or “Committees”
means the Human Resource Committee, and either or both of the Plan
Administration Committee and the Plan Investment Committee (as described in
Article XII), as the context may indicate.

 

2.11         Company.  “Company” means Washington Mutual, Inc., and
its successors and assigns; and prior to November 30, 1994, Washington Mutual
Savings Bank.

 

2.12         Compensation.

 

(a)           Scope
of Provision

 

Compensation as
defined in this Section 2.12 shall apply for purposes of determining:

 

(i)            The
identity of Highly Compensated Employees;

 

(ii)           The
limitation on Annual Additions;

 

 

(iii)          The
Actual Deferral Percentage;

 

(iv)          The
Actual Contribution Percentage; and

 

(v)           The
Top Heavy Plan provisions.

 

(b)           Inclusions

 

A Participant’s
Compensation consists of the Participant’s wages, salaries, fees for personal
services, commissions, production incentive compensation, bonuses and other
amounts received (without regard to whether or not an amount is paid in cash)
for personal services actually rendered in the course of employment with an
Employer as an Employee to the extent that the amounts are includable in gross
income.  Compensation shall also include
any amounts excluded from gross income of an Employee under Code sections 125,
132(f)(4), 402(e)(3), 402(h)(1)(B), or 403(b).

 

(c)           Exclusions

 

A Participant’s
Compensation does not include:

 

(i)            Employee
Contributions to a plan of nonqualified deferred compensation to the extent the
contributions are not includible in the gross income of the Employee for the
taxable year in which contributed;

 

(ii)           Employer
contributions (A) to a plan of deferred compensation to the extent such
contributions are not included in the gross income of the participant for the
taxable year in which contributed; or (B) on behalf of the Participant to a
simplified employee pension plan to the extent such contributions are
deductible under the Code;

 

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

 

(iv)          Amounts
realized from the exercise of a nonqualified stock option, or when restricted
stock (or property) becomes freely transferable or no longer subject to a
substantial risk of forfeiture;

 

(v)           Amounts
not otherwise described in this Section 2.12(c) that receive special tax
benefits, such as premiums for group-term life insurance (but only to the
extent that the premiums are not includible in the gross income of the
employee);

 

(vi)          Contributions
made by an Employer (whether or not under a salary reduction agreement) towards
the purchase of a 403(b) annuity contract, regardless of whether the
contributions are excludible from the gross income of the Participant; and

 

 

(vii)         Distributions
from a plan of deferred compensation, regardless of whether such amounts are
includible in the gross income of the employee when distributed.

 

(d)           Statutory
Limits

 

Effective for Plan
Years beginning after December 31, 2001, Compensation for all purposes in
excess of $200,000 (adjusted as provided in Code section 401(a) (17)(B)) shall
be disregarded.

 

2.13         Considered
Compensation.  For purposes of making
contributions and allocations hereunder, “Considered Compensation” shall mean
Compensation, reduced by all of the following items (even if includible in
gross income):  reimbursements or other
expense allowances, fringe benefits (cash and noncash), moving expense,
deferred compensation, and welfare benefits. 
Payments of bonus or incentive program benefits are included in
Considered Compensation even if they are considered deferred compensation.  “Considered Compensation” shall only include
compensation actually received by the Participant during the period he or she
is a Participant in the portion of the Plan for which the contribution is
made.  For example, only compensation
received after a Participant satisfies the minimum service requirement to enter
the employer matching portion of the Plan will be considered in determining the
amount of matching contribution made on behalf of the Participant for the Plan
Year in which he or she enters the matching portion of the Plan.

 

2.14         Disabled or
Disability.  A Participant is “Disabled”
when determined by the Social Security Administration to be totally and permanently
disabled or when determined to be eligible for benefits under the Company’s
long term disability program.

 

2.15         Early
Retirement Age.  “Early Retirement Age”
means attainment of age 55.

 

2.16         Eligible
Employee.  “Eligible Employee” means any
Employee of the Employer, except the following:

 

(a)           An
Employee whose employment with an Employer is covered by a collective
bargaining agreement where
retirement benefits were the subject of good faith bargaining and the agreement
does not expressly provide for participation in this Plan;

 

(b)           An
individual who performs services for an Employer pursuant to an agreement
between an Employer and a leasing organization including, without limitation, a
Leased Employee, and who is not otherwise an Employee;

 

(c)           A
nonresident alien who does not receive United States source income;

 

(d)           An
individual who is not treated by the Employer as an employee for payroll tax
purposes, even if such individual is subsequently determined by a government
agency, by the conclusion or settlement of threatened or pending litigation, or
otherwise to be (or to have been) a common law employee of the Employer;

 

 

(e)           Individuals
who are both Employees and who are employed by an entity that is not an
Employer or Related Employer and who are not directly compensated by an
Employer; and

 

(f)            Employees
who are eligible to make deferrals pursuant to the terms of another cash or
deferred arrangement maintained by an Employer or a Related Employer.

 

2.17         Employee.  “Employee” means any person who is employed
by the Employer as a common law employee for payroll tax purposes.  In addition, the term “Employee” shall mean
any Leased Employee that Code section 414(n) requires the Employer to treat as
an employee, but only to the extent coverage of such leased employee is
necessary to maintain the qualification of the Plan.

 

2.18         Employee
After-Tax Contribution . “Employee After-Tax Contribution” means the balance,
if any, of Salary Deferral Contributions recharacterized as such and allocated
to a Participant’s Account.

 

2.19         Employment
Commencement Date.  “Employment
Commencement Date” means the date on which an Employee first completes an Hour
of Service for the Employer.

 

2.20         Employer.  The “Employer” means the Company and
Participating Employers.

 

2.21         Entry
Date.  Entry Date” means the date on
which an Eligible Employee becomes a Participant in the Plan and can elect to
commence making Salary Deferral Contributions, which is the Eligible Employee’s
Employment Commencement Date (or, if later, the date an Employee becomes an
Eligible Employee). Notwithstanding the foregoing, the Entry Date for certain
Eligible Employees incident to certain corporate transactions shall be as
specified in Appendix A, and any such Entry Date on Appendix A shall be the
applicable Entry Date for the affected Eligible Employee even if such date is
later than the date the individual’s Employment Commencement Date or the date
the individual became an Eligible Employee.

 

2.22         ERISA.  “ERISA” means the Employee Retirement Income
Security Act of 1974, as amended, and including all regulations promulgated
pursuant thereto.

 

2.23         ESOP.  “ESOP” means that part of the Plan that
qualifies as an employee stock ownership plan pursuant to Code §409 and
4975(e)(7) and is a stock bonus plan designed to invest primarily in Employer
securities.  Only Participants who are
employed (or who used to be employed) by a corporation while that corporation
is (or was) part of the same controlled group of corporations as the Company)
pursuant to Code Sections 409(l)(4) and 1563(a), hereinafter referred to as the
“WaMu Controlled Group”)are eligible to participate in the ESOP portion of the
Plan.

 

2.24         Forfeitures.  “Forfeitures” means the part, if any, of a
Participants’ Account that is forfeited pursuant to Section 8.2.

 

2.25         Highly
Compensated Employee.  “Highly
Compensated Employee” means an Employee or an employee of a Related Employer,
who is included in at least one of the following categories within the meaning
of Code section 414(q) and regulations thereunder:

 

 

(a)           An
Employee who was a five percent (5%) owner (within the meaning of Code
section 414(q)(2)) of the Employer at any time during the Plan Year
coinciding with the determination year, or the 12 month period preceding the
Plan Year (the “look-back year”); or

 

(b)           An
Employee who received aggregate Compensation from the Employer for the
look-back year in excess of the dollar limitation contained in Code
section 414(q)(1)(B)(i) (which is $95,000 in the lookback year of 2005 to
be considered highly compensated for the Plan Year commencing
January 1, 2006).

 

2.26         Hour of
Service.  “Hour of Service” means each
hour for which an Employee is paid or entitled to payment by the Employer or
any Related Employer on account of:

 

(a)           Performance
of duties;

 

(b)           A
period of time during which no duties are performed (irrespective of whether
the employment relationship has terminated) due to vacation, holiday, illness,
incapacity (including disability), layoff, jury duty, military duty, or leave
of absence.  No more than five hundred
and one (501) Hours of Service shall be credited under this paragraph for any
single continuous period (whether or not such period occurs in a single
computation period).  Hours under this
paragraph shall be calculated and credited pursuant to 29 CFR 2530.200b-2(a),
(b) and (c), which are incorporated herein by this reference;

 

(c)           An
award of back pay, irrespective of mitigation of damages, agreed to by the
Employer or any Related Employer. 
However, hours credited under (a) or (b) above shall not also be
credited under this Subsection (c);

 

(d)           Notwithstanding
the preceding provisions of this Section 2.26, no credit will be given:

 

(i)            For
an Hour of Service for which the individual is directly or indirectly paid, or
entitled to payment, on account of a period during which no duties are
performed if such payment is made or due under a plan maintained solely for the
purpose of complying with applicable worker’s compensation, unemployment
compensation or disability insurance laws; or

 

(ii)           For
an Hour of Service for which a payment is made which solely reimburses the
individual for medical or medically related expenses incurred;

 

(e)           Hours
of Service will also be credited for any individual considered an employee
under Code section 414(n); and

 

(f)            The
Committee shall determine Hours of Service from records of hours worked and
hours for which payment are made or due according to each Hour of Service
actually completed by an Employee. 
However, in the event that actual Hours of 

 

 

Service cannot be
determined from the Employer’s records, the Employee shall be credited with
Hours of Service in accordance with the equivalencies based on periods of
employment set forth in 29 CFR 2530.200b-3(e). (i.e., if records are maintained
daily – 10 hours; weekly – 45 hours; bi-weekly – 90 hours;  semi-monthly – 95 hours; monthly – 190
hours.)

 

2.27         Human
Resources Committee.  “Human Resources
Committee” means the Company’s Human Resources Committee of the Board of
Directors.

 

2.28         Inactive
Participant.  Any individual who has had
a severance from employment with the Employer and all Related Employers or who
has ceased to be an Eligible Employee and who has not yet received his entire
Accounts under the Plan and any Participant to whom Section 3.2 applies.

 

2.29         Leased
Employee.  “Leased Employee” means any
person (other than an employee of the recipient) who under an agreement between
the recipient and any other person (“leasing organization”), has performed
services for the recipient (or for the recipient and any related persons
determined in accordance with Code section 414(n)(6)) on a substantially
full-time basis for a period of at least one year, and such services are
performed under the primary direction and control of the recipient.  A Leased Employee shall be treated as
employed by the Employer for purposes of calculating Service even if not
eligible for participation in the Plan.

 

2.30         Leave of
Absence.  “Leave of Absence” means any
period of absence from the active employment of an Employer granted to the
Employee in accordance with a uniform policy, consistently applied, or military
service under circumstance in which the Employee has reemployment rights under
Federal law, subject to the following conditions:

 

(a)           Absence
from the active Service of the Employer by reason of Leave of Absence granted
by the Employer because of accident, illness, or military service or for any
other reason granted by the Employer on the basis of a uniform policy applied
without discrimination will not terminate an Employee’s Service, provided he
returns to the active employment of the Employer at or prior to the expiration
of his leave, or, if not specified therein, within the period of time which
accords with the Employer’s policy with respect to permitted absences.

 

(b)           Absence
from the active Service of the Employer because of engagement in military
service under circumstances in which the Employee has reemployment rights under
Federal law will be considered a Leave of Absence granted by the Employer and
will not terminate the Service of an Employee if he returns to the active
employment of the Employer within 90 days from and after discharge or
separation from such engagement or, if later, within the period of time during
which he has re-employment rights under any applicable Federal law.

 

(c)           If
any Such Employee who is on Leave of Absence pursuant to paragraphs (a) or (b)
above does not return to the active Service of the Employer at or prior to the
expiration of his Leave of Absence, his Service will be considered terminated
as of the date on which his Leave of Absence began; provided, however, that if
such 

 

 

 

Employee is prevented
from his timely return to the active employment of the Employer because of his
permanent disability or his death, he shall be treated under the Plan as though
he returned to active Service immediately preceding the date of his permanent
disability or his death.

 

2.31         Limitation
Year.  “Limitation Year” means the twelve
(12) month period beginning on January 1 and ending on December 31.

 

2.32         Matching
Contribution.  “Matching Contribution”
means a contribution made by the Employer and allocated to the Participants’
Accounts pursuant to Section 5.1.

 

2.33         Normal
Retirement Age.  “Normal Retirement Age”
means the date the Participant attains age 65.

 

2.34         Parental
Leave of Absence.  “Parental Leave of
Absence” means any period of absence from the active Service of an Employer on
account of:

 

(a)           The
pregnancy of the Employee;

 

(b)           The
birth of a child of the Employee;

 

(c)           The
placement of a child with the Employee in connection with the adoption of such
child by the Employee; or

 

(d)           Caring
for such child for a period beginning immediately following such birth or
placement.

 

2.35         Participant.  “Participant” means an Eligible Employee,
other than a Inactive Participant, for whom a contribution is due and payable
to his Account under Sections 3.1(a), 3.1(b), or 3.1(c), or received by the
Plan pursuant to Section 3.1(d).

 

An Employee or former Employee who becomes a
Participant solely by virtue of making a Rollover Contribution at a time when
he has not satisfied the requirements of Sections 3.1(a), 3.1(b), or
3.1(c) or Section 3.3 shall not (i) be eligible to elect to made Salary
Deferral Contributions, (ii) be eligible to receive a Matching Contribution or
Profit Sharing Contribution, or (iii) be eligible to receive a forfeiture
allocation until such individual satisfies the requirements of Sections 3.1(a),
3.1(b), or 3.1(c) or Section 3.3 and is deemed a Participant for those
purposes.

 

2.36         Participating
Employer.  “Participating Employer” means
a Related Employer which, with the consent of the Board of Directors of the
Company, adopts the Plan on behalf of all or a portion of its employees by
taking appropriate corporate action.  For
the purposes of this Section 2.36 the Board of Directors shall be deemed to
have consented to the participation of a Related Employer if the document
evincing an acquisition provides for participation by the Related Employer.

 

2.37         Plan.  “Plan” means the WaMu Savings Plan in its
present form and as amended from time to time. 
Unless the context or the specific provisions of the Plan otherwise
provide, the term Plan shall refer to both the WaMu Savings Program (“WSP”) and
the Employee Stock 

 

 

 

Ownership Program (“ESOP”).  The WSP and ESOP shall constitute a single
plan under Treasury Regulation Section 1.414(l)-1(b)(1) (including, without
limitation, for purposes of spousal consents and beneficiary elections).

 

2.38         Plan
Administration Committee.  “Plan
Administration Committee” means any committee as may from time to time be
constituted and appointed by the Human Resources Committee to administer some
or all of the duties and responsibilities of the Plan administration as
described in Article XII.

 

2.39         Plan Investment
Committee.  “Plan Investment Committee”
means any Committee as may from time to time be constituted and appointed by
the Company or Board of Directors to perform the duties indicated in Section
12.2(c).

 

2.40         Plan
Year.  “Plan Year” means the 12 month
period beginning on January 1 and ending on December 31 of each year.

 

2.41         Profit
Sharing Contributions.  “Profit Sharing
Contributions” means those contributions made by the Employer as described
under Section 5.2 which are allocated to a Participant’s Account.

 

2.42         Qualified
Domestic Relations Order (QDRO). 
“Qualified Domestic Relations Order” is defined in Section 15.12.

 

2.43         Qualified
Employer Contributions.  “Qualified
Employer Contributions” means Employer Contributions that both qualify for aggregation
for Code section 401(k) and 401(m) discrimination testing purposes, pursuant to
Code sections 401(k)(3)(1)(ii) or 401(m)(3), and were in fact aggregated for
such purposes.

 

2.44         Qualified
Non-Elective Contribution (“QNEC”).  A
“Qualified Non-elective Contribution” means a contribution made by the Employer
and allocated to Participants’ Accounts pursuant to Section 6.4.

 

2.45         Reemployment
Commencement Date.  “Reemployment
Commencement Date” means the date on which an Employee who terminates employment
with all Employers and all Related Employers first performs an Hour of Service
following such severance of employment.

 

2.46         Related
Employer.  “Related Employer” means any
business entity that is, along with an Employer, (i) a member of a controlled group
of corporations (as defined by Code section 414(b), with such section being
modified, for purposes of Section 6.5, in accordance with Code section 415(h)),
(ii) a member of a group of trades or businesses (whether or not incorporated)
that are under common control (as defined by Code section 414(c), with such
section being modified, for purposes of Section 6.5, in accordance with Code
section 415(h)), (iii) a member of an affiliated Service group (as defined by
Code section 414(m)), or (iv) any other entity described by Treasury
Regulations promulgated under Code section 414(o).

 

2.47         Related
Plan.  “Related Plan” means any other
defined contribution plan (as defined in Code section 415(k)) maintained by the
Employer of any Related Employer.

 

 

2.48         Required
Beginning Date.  “Required Beginning
Date” is defined as the date upon which a Participant must begin a distribution
of his Account, as further defined in Section 8.11.

 

2.49         Retirement.  “Retirement” means termination of employment
at or after Normal Retirement Age, or at or after Early Retirement Age with one
or more Years of Service.

 

2.50         Rollover
Contribution.  “Rollover Contribution”
means a contribution, which the Participant has elected to roll over pursuant
to the provisions of Section 4.4. The Plan will accept the following types of
contributions:

 

(a)           A
direct rollover or a Participant contribution of an eligible rollover
distribution from a qualified plan described in Code section 401(a) or a
tax-deferred annuity plan or custodial account plan described in Code section
403(b), provided that the entire distribution would otherwise be includible in
gross income (i.e., rollovers of after-tax contributions are not permitted by
this Plan); or

 

(b)           A
participant’s rollover contribution of the portion of a distribution from an
individual retirement account or annuity described in Code sections 408(a) or
408(b) that is eligible to be rolled over and would otherwise be includible in
gross income (i.e., rollovers of after-tax contributions are not permitted by
this Plan), provided that such account or annuity consists solely of eligible
rollover distributions from a qualified plan described in Code section 401(a)
or a plan described in Code section 403(b).

 

A
Participant contribution of a eligible rollover contribution may only be
accepted if the contribution is received by the Plan not later than the 60th
day following the date the check was issued to the Participant, unless the
60-day requirement has been waived by the IRS pursuant to Code section 402(c)(3).

 

2.51         Salary
Deferral Contribution.  “Salary Deferral
Contribution” means a contribution made by the Employer pursuant to Section
4.1, which is intended to qualify as an elective deferral under Code section
401(k).

 

2.52         Service.  “Service” means any period of time the
Employee is employed by an Employer, including any period the Employee is on
Leave of Absence authorized by the Employer under a uniform, nondiscriminatory
policy applicable to all Employees.  The
Plan shall treat service of an Employee with a predecessor or Related Employer
as Service with an Employer to the extent required by Code section 414(a) and
shall consider qualified military service to the extent required under Code
section 414(u) and regulations thereunder. Service shall also include periods
described in Appendix A for the purposes provided therein.

 

2.53         Trust.  “Trust” means the trusts related to the Plan,
including the WaMu Savings Plan Trust as may be amended from time to time, to
hold, administer, and invest the contributions made under the Plan, and all
property of every kind held or acquired by the Trustees under the Trust
Agreements.

 

 

2.54         Trust
Agreement.  “Trust Agreement” means the
agreements between the Company and the Trustees or any successor Trustees
establishing the Trust and specifying the duties of the Trustee.

 

2.55         Trustee.  “Trustee” means the persons or entities from
time to time appointed as Trustee under either Trust Agreement.

 

2.56         Valuation
Date.  “Valuation Date” means daily, each
day of the Plan Year that the New York Stock Exchange is open.

 

2.57         WSP.  “WSP” means the portion of the Plan that is
not part of the ESOP.

 

2.58         Year of
Eligibility Service.  “Year of
Eligibility Service” means the period beginning on the date on which the
Employee is first credited with an hour of service for the performance of
duties with the Employer or a Related Employer, and ending on the 365th day on
which the Employee is employed with the Employer or a Related Employer (i.e.,
in order to earn a Year of Eligibility Service, the Employee must be employed
on each of the 365 days, and the 365 days are aggregated and need not be worked
consecutively).  For purposes of
determining under this Section 2.57 the number of days in which the Employee is
employed with the Employer or a Related Employer, days shall include days of
service that are credited for participation purposes as specifically described
in Appendix A.

 

2.59         Year of
Vesting Service.  “Year of Vesting
Service” means any Plan Year during which an Employee completes 1,000 Hours of
Service with the Employer or a Related Employer.

 

If a Participant who has a nonforfeitable interest in
Matching Contributions, Profit Sharing Contributions or other amounts that are
credited to his Accounts incurs five consecutive Breaks in Service, Service
after such Breaks in Service shall not increase the Participant’s
nonforfeitable percentage in his Accounts derived from Profit Sharing, Matching
Contributions or other contributions subject to vesting schedules that were
made prior to such five consecutive Breaks in Service.

 

 

ARTICLE III

 

ELIGIBILITY AND PARTICIPATION

 

3.1           Eligibility
to Participate in the Plan

 

(a)           Salary
Deferral Contributions

 

(i)            Each
Eligible Employee may elect to become a Participant in the Plan for all purposes
except for Matching Contributions and Profit Sharing Contributions at any time
following the Eligible Employee’s Entry Date.

 

(ii)           Notwithstanding
anything in the Plan to the contrary, in order for a Participant to have Salary
Deferral Contributions made on the Participant’s behalf, the Participant must
make a deferral election in the manner prescribed by the Plan Administration
Committee. Amounts will be withheld from the Participant’s paycheck in
accordance with the deferral election as soon as administratively feasible
following the date the Participant elects to begin Salary Deferral
Contributions.

 

(b)           Matching
Contributions

 

An Eligible
Employee shall be eligible to commence receiving Matching Contributions as of
the first day of the month next following the date he is credited with one Year
of Eligibility Service, provided he has elected to commence Salary Deferral
Contributions pursuant to Section 3.1(a). 
Any Matching Contributions will only be made on Salary Deferral
Contributions that are made on or after the first day of the month next
following the date he is credited with one Year of Eligibility Service.

 

(c)           Profit
Sharing Contributions

 

An Eligible
Employee shall be eligible to commence receiving Profit Sharing Contributions,
if any, as of the first day of the month next following the date he is credited
with one Year of Eligibility Service.

 

(d)           Rollover
Contributions

 

If the Employee
has not already become a Participant, an Eligible Employee shall become a
Participant on the date a Rollover Contribution is made on his behalf, solely
for purposes of such Rollover Contribution. 
However, such Employee shall not be eligible to make Salary Deferral
Contributions or receive an allocation of Matching Contributions and Profit
Sharing Contributions until the Employee has satisfied the general requirements
of this Article.

 

 

3.2           Transfers
of Employment

 

If a
Participant ceases to be an Eligible Employee, but continues in the employ of
an Employer or a Related Employer, such Participant shall become an Inactive
Participant until his entire Account balance is forfeited or distributed.  An Inactive Participant shall not be entitled
to receive an allocation of contributions or forfeitures under the Plan for the
period that he is not an Eligible Employee.

 

If an
Employee who is not an Eligible Employee becomes an Eligible Employee, such
Eligible Employee shall become a Participant immediately as of his transfer
date if such Eligible Employee has already satisfied the eligibility
requirements and would have otherwise previously become a Participant in
accordance with Section 3.1 except that such Employee was not an Eligible
Employee.  Otherwise, such Eligible
Employee shall become a Participant in accordance with Section 3.1.

 

3.3           Resumption
of Participation Following Reemployment. 
If a Participant terminates employment with all Employers and all
Related Employers and is reemployed as an Eligible Employee, he shall be
eligible to participate, in accordance with the requirements of Section 3.1, on
his Reemployment Commencement Date.

 

Any
other Employee who terminates employment with all Employers and all Related
Employers and is reemployed by an Employer or a Related Employer shall become a
Participant as provided in Section 3.1.

 

 

ARTICLE IV PARTICIPANT CONTRIBUTIONS

 

4.1           Salary
Deferral Contributions

 

(a)           Except
as otherwise provided in this Plan, a Participant may elect to have his
Considered Compensation reduced by any whole percentage from 1 to 50 percent,
subject to the Deferral Limitation as set forth in Section 6.1(a).  Effective January 1, 2005, a Participant may
elect to have his Considered Compensation reduced by any whole percentage from
1 to 75 percent.  The Employer shall
contribute the amount deferred to the Trust as a Salary Deferral Contribution,
subject to certain benefit limitations described in Article VI of the Plan.

 

(b)           The
Deferral Limitation above shall be decreased by any Salary Deferrals under Code
section 401(k) made by a Participant under any Related Plan, to the extent that
any “excess deferrals” are allocated to this Plan pursuant to
Section 6.4(d).

 

(c)           Notwithstanding
Subsection (a), the Committee may limit the amount of the Salary Deferral
Contributions, which shall be made on behalf of a Participant (and the
corresponding Considered Compensation reduction) to the extent that the
Committee determines necessary to comply with the limits of Article VI.

 

4.2           General
Rules for Salary Deferral Contributions. The Employer shall make Salary
Deferral Contributions in the manner specified by and in accordance with rules
established by the Company and by such deadlines as the Company shall
establish, in its discretion.  Salary
Deferral elections, and changes in elections, will be effective with the soonest
payroll period following the submission of the election or change for which it
is administratively practicable to make the change.

 

(a)           Participant’s
Salary Deferral Contributions will cease effective the first day of the month
following separation from service.

 

4.3           Catch-up
Contributions

 

A
Participant may elect to make a Catch-up Contribution as follows:

 

(a)           A
Participant who has or will have attained age 50 before the close of the Plan
Year shall be eligible to make a Catch-up Contribution in accordance with
Section 414(v) of the Code.

 

(b)           Catch-up
Contributions shall not be taken into account for purposes of the provisions of
the Plan implementing the required limitations of Code sections 402(g) and
415.  The Plan shall not be treated as
failing to satisfy the provisions of the plan implementing the requirements of
Code sections 401(k)(3), 401(k)(11), 401(k)(12), 410(b), or 416, as applicable,
by reason of the making of such Catch-up Contributions.

 

 

(c)           The
Catch-up Contribution shall be in addition to the Salary Deferral Contribution,
in Section 4.1, above.  However, in no
event shall a Participant’s total Salary Deferral Contribution and Catch-up
Contribution exceed 75 percent of the Participant’s Considered Compensation.

 

4.4           Rollover
Contributions and Trust Transfers

 

An
Eligible Employee may make a Rollover Contribution to the Plan.  Rollover Contributions must be made
exclusively in cash.

 

(a)           Rollover
Contributions shall be separately accounted for and are at all times
nonforfeitable.  Before accepting a
Rollover Contribution, the Committee may require a Participant to furnish
satisfactory evidence that the proposed contribution is in fact a Rollover
Contribution which the Code permits an employee to make to a plan qualified
under Code section 401(a).

 

(b)           The
Trustee may accept a transfer of assets from another plan that is qualified
under Code section 401(a).  In such an
event, the Committee shall determine the appropriate Accounts of the affected
Participants or shall establish new Accounts to allocate such assets.  If the Trustee accepts an asset transfer that
would require the Plan to provide any benefit, pursuant to Code section
411(d)(6) or otherwise, that is not provided for in the Plan on the date of
such transfer, the Committee may establish new Accounts to preserve the
protected benefits of the affected Participants.  The provisions of Section 13.3 shall apply if
the Trustee accepts any trust-to-trust transfer of assets

 

 

ARTICLE V

 

EMPLOYER CONTRIBUTIONS

 

5.1           Matching
Contribution

 

Effective January 1, 2004 the Matching Contribution
shall be made on behalf of each eligible Participant as follows:

 

(a)           100%
of the Participant’s Salary Deferral Contribution that does not exceed 3% of
the Participant’s Considered Compensation for the Plan Year; plus

 

(b)           50%
of the Participant’s Salary Deferral Contribution in excess of the first 3% of
the Participant’s Considered Compensation, up to 5% of the Participant’s
Considered Compensation for the Plan Year, for a maximum total matching
contribution under this Section 5.1 of 4% of the Participant’s Considered
Compensation for the Plan Year.

 

(c)           The
Matching Contribution in Section 5.1 is intended to satisfy the safe harbor
matching contribution provisions provided for in Code sections 401(k)(12) and
401(m)(11).  This contribution will be
nonforfeitable as provided in Section 8.1 of the Plan.  Contributions made by the Employer under
Section 5.1 with respect to a Participant may be made and allocated to the
Participant’s Account with respect to each payroll period, but in any event
shall be made no later than the due date, including extensions, for filing the
Participating Employer federal income tax return for the taxable year end
coincident with or in the Plan Year with respect to which such contributions
are to be made.

 

5.2           Profit
Sharing Contributions

 

(a)           Effective
January 1, 2004, at the sole discretion of the Committee, a Profit Sharing
Contribution may be made in an amount, if any, determined by the Employer, in
its sole and absolute discretion.

 

(b)           Profit
Sharing Contributions, if any, shall be allocated as of the last Valuation Date
of the Plan Year among the Accounts of Participants eligible under
Section 3.1(c), who completed 1000 Hours of Service during the Plan Year
and were employed by the Company on the final day of the Plan Year, or who
terminated employment with the Employer during the Plan Year by reason of
death, Disability, or Retirement.  Such
allocation shall be pro rata according to the ratio that each such
Participant’s Considered Compensation for the Plan Year bears to the Considered
Compensation of all Participants entitled to such allocation of the Profit
Sharing Contributions for such Plan Year.

 

 

5.3           Top Heavy
Minimum Contribution

 

For any Plan Year in which the Plan is determined to
be top heavy within the meaning of Code Section 416(g) and regulations
thereunder, the Employer shall make a minimum Employer contribution (taking
into account Matching Contributions) of not less than three percent (3%) of
Compensation for each Participant who is not a “key employee” as that term is
defined in Code Section 416(i)(1). A determination as to whether the Plan is
top heavy shall be made as of the last day of the immediately preceding Plan
Year (the “determination date”).

 

All of the plans of Related Employers shall be
aggregated, as required or permitted in Code section 416(g)(2), in determining
whether or not the Plan is top heavy.

 

 

ARTICLE VI

 

BENEFIT LIMITATIONS

 

6.1           Section
402(g) Limit on Salary Deferral Contributions

 

(a)           Deferral
Limitation

 

Notwithstanding
Section 4.1, Salary Deferral Contributions to this Plan (including any
other plans of a Related Employer subject to Code section 402(g), but not
including any Catch-up Contributions) for any calendar year, shall not exceed
the maximum dollar limitation on elective deferrals under Code
section 402(g)(1)(B).

 

(b)           Distribution
of Excess Deferrals

 

If a Participant
is required to include in his gross income for a calendar year elective
deferrals (as defined in Code section 402(g)(3)) which exceed the deferral
limitation in (a) above, such amounts shall be treated as “excess deferrals”
and shall be distributed to the Participant. 
The Committee shall distribute such excess deferral, adjusted for any
income or losses allocable to such amount (determined in accordance with the
principles of Section 6.4) for the Plan Year in question not later than the
April 15th following the calendar year in which the excess deferrals were made
, or such later time as permitted by the Code or in Treasury Regulations.  Any distribution made pursuant to this
Section may be made notwithstanding any other provision of the Plan.

 

6.2           Safe
Harbor

 

(a)           Nondiscrimination
Testing

 

As the Employer
has elected to make the safe harbor cash or deferred arrangement option
pursuant to Section 4.1 of this
Plan, the provisions of this Article and any provisions relating to the Average
Deferral Percentage Test described in Code section 401(k)(3) or the Average
Contribution Percentage Test described in Code section 401(m)(2) do not apply,
except as required by law or regulation. 
Aggregation and disaggregation rules provided under Code sections 401(k)
and 401(m) will still be applicable.

 

(b)           Notice

 

At least 30 days,
but not more than 90 days, before the beginning of the Plan Year, the Employer
will provide each Participant a comprehensive notice of the Participant’s
rights and obligations under the Plan, written in a manner calculated to be
understood by the average Employee.  The
notice shall describe (i) the safe harbor contribution formula used under the
Plan (including a description of the levels of Matching Employer Contributions,
if any, available under the Plan), (ii) any other contributions under the Plan
(including the potential for discretionary Matching Employer Contributions) and
the conditions under which such contributions are made, 

 

 

(iii) the plan to which
safe harbor contributions will be made (if different than this Plan), (iv) the
type and amount of Compensation that may be deferred under the Plan, (v) how to
make cash or deferred elections, including any administrative requirements that
apply to such elections, (vi) the periods available under the Plan for making
cash or deferred elections, and (vii) withdrawal and vesting provisions
applicable to contributions under the Plan. 
If an Employee
becomes eligible to participate (as provided under Section 3.1) after the 90th
day before the beginning of the Plan Year and does not receive the notice for
that reason, the notice must be provided no more than 90 days before the
Employee becomes eligible but not later than the date the Employee becomes
eligible.

 

6.3           Nondiscrimination
Tests

 

Notwithstanding Section 4.1, and in order to fulfill
the requirements of this Section 6.3, the Plan Administrator shall have the
discretion to limit the Salary Deferral Contributions of a Highly Compensated
Employee (HCE) and/or the Matching Contributions for an HCE, in the manner
described in Section (d), or to cause the Trustee to distribute contributions
which exceed the limitations of this Section as described in Section 6.1.

 

For purposes of the ADP and ACP tests described in
this Article, the definition of “Compensation” may be modified by the Plan
Administrator to mean any definition of compensation that complies with Code
section 414(s).

 

(a)           Actual
Deferral Percentage (ADP) Test

 

For each Plan
Year, the Salary Deferral Contributions under the Plan must meet one of the
actual deferral percentage tests (hereinafter “ADP Test”) described below to
satisfy the nondiscrimination requirements of the Code.  For purposes of this ADP Test, Eligible
Employees who do not qualify for making Salary Deferral Contributions pursuant
to Section 4.1 shall not be considered. 
To pass the ADP Test, either:

 

(i)            The
ADP (as hereinafter defined) for a Plan Year for the group of Eligible
Employees who are Highly Compensated Employees does not exceed the ADP for the
current Plan Year for all other Eligible Employees multiplied by 1.25; or

 

(ii)           The
ADP for a Plan Year for the group of Eligible Employees who are Highly Compensated
Employees (i) is not more than two percentage points higher than the ADP for
the current Plan Year for all other Eligible Employees and (ii) does not exceed
the ADP for the prior Plan Year for all other Eligible Employees multiplied by
two.

 

The “ADP” for a
specified group of Eligible Employees for a Plan Year means the average of the
ratios (calculated separately for each Employee in the group to the nearest
one-hundredth of one percent) of (i) his Salary Deferral Contributions to (ii)
his Compensation earned during the Plan Year or while a Participant (as
determined by the Committee for each Plan Year), determined in accordance with
Code section 401(k)(3) and regulations pursuant thereto.

 

 

Further, a
Participant’s Salary Deferral Contribution to the Plan is included in
calculating the ratios for the Participant for a Plan Year if it is allocated
to the Participant’s Account as of a date within the Plan Year and was earned
for services rendered to an Employer during a pay period ending within the Plan
Year.

 

In calculating the
deferral percentage for a Participant, Compensation for the entire Plan Year
shall be taken into account even where the Participant was not an Eligible
Employee for the entire Plan Year.  In
determining the ADP of an Eligible Employee who is a Highly Compensated
Employee, all such deferrals under plans maintained by any Related Employer
that maintain a feature subject to Code section 401(k) in which such a Highly
Compensated Employee is eligible to participate shall be aggregated.

 

Further, in the
event that a Related Employer maintains another plan which together with this
Plan is treated as a single plan for purposes of section 401(a)(4) or 410(b)
Code other than section 410(b)(2)(A)(ii)), then any and all Salary Deferral
Contributions and other contributions that are taken into account in
determining a Participant’s ADP under either of the plans shall be treated as
made under a single plan, and if two or more of such plans are permissively
aggregated for purposes of Code section 401(k) they shall be treated as a
single plan for purposes of satisfying Code sections 401(a)(4) and 410(b).

 

(b)           Actual
Contribution Percentage (ACP) Test

 

For each Plan
Year, the Matching Contributions under the Plan must meet one of the actual
contribution percentage tests (hereinafter the “ACP Test”) described below to
satisfy the nondiscrimination requirements of the Code. To pass the ACP test,
either:

 

(i)            The
ACP (as hereinafter defined) for a Plan Year for the group of Eligible
Employees who are Highly Compensated Employees does not exceed the ACP for the
current Plan Year for all other Eligible Employees multiplied by 1.25; or

 

(ii)           The
ACP for a Plan Year for the group of Eligible Employees who are Highly
Compensated Employees (i) is not more than two percentage points higher than
the ACP for the current Plan Year for all other Eligible Employees and (ii)
does not exceed the ACP for the prior Plan Year for all other Eligible
Employees multiplied by two.

 

The “ACP” for a
specified group of Eligible Employees for a Plan Year means the average of the
ratios (calculated separately for each Employee in the group to the nearest
one-hundredth of one percent) of the Matching Contributions allocated to each
such Participant’s Account as of any date within the Plan Year being
tested.  Compliance with the ACP Test
shall be determined in accordance with the rules set forth in Code section
401(m)(2) and regulations thereunder.

 

In determining the
ACP of an Eligible Employee who is a Highly Compensated Employee, contributions
allocated to such Highly Compensated Employees under all 

 

 

plans maintained by any
Related Employer that are subject to Code section 401(m) in which such a Highly
Compensated Employee is eligible to participate shall be aggregated.

 

Further, in the
event that a Related Employer maintains another plan which together with this
Plan is treated as a single plan for purposes of Code sections 401(a)(4) or
410(b) other than Code section 410(b)(2)(A)(ii)), then any and all matching
contributions, voluntary employee after-tax contributions and other
contributions subject to 401(m) under any and all such plans shall be treated
as made under a single plan, and if two or more of such plans are permissively
aggregated for purposes of Code section 401(m) they shall be treated as a
single plan for purposes of satisfying Code sections 401(a)(4) and 410(b).

 

6.4           Corrective
Procedures to Satisfy Nondiscrimination Tests

 

(a)           Reduction
of Contributions

 

If at any time
during a Plan Year, the Committee determines on a projected basis that it is
necessary to reduce the Salary Deferral Contributions of one or more
Participants to satisfy the dollar limit on annual deferrals described in
Section 6.1 or the ADP nondiscrimination test described in Section 6.3(a)), it shall
have the authority to do so in such amounts and for such periods of time as it
deems necessary under the circumstances.

 

(b)           Aggregation
of Contributions to Satisfy ADP Test

 

The Committee may,
in its sole discretion, elect to aggregate Matching Contributions with Salary
Deferral Contributions to the extent necessary to satisfy the ADP
nondiscrimination test provided that such aggregation does not itself result in
discrimination.

 

(c)           Qualified
Non-Elective Employer Contributions

 

The Committee may,
in its sole discretion, elect to make additional non-elective contributions to
the Plan on behalf of some or all of the Eligible Employees who are not Highly
Compensated Employees to the extent necessary to satisfy the ADP
nondiscrimination test.  Such additional
contributions may be made in accordance with a reasonable methodology
acceptable to the Committee that favors non-Highly Compensated Employees.

 

(d)           Return
of Excess Contributions

 

An ADP excess
contribution exists if contributions under this Plan on behalf of Highly
Compensated Employees fail to meet the ADP test described in
Section 6.3(a).  Within twelve
months after the end of the Plan Year for which there is an excess,
contributions which exceed the ADP limitation, adjusted for earnings and losses
during the calendar year, less amounts previously returned pursuant, shall be
distributed to Highly Compensated Employees. 
Each Highly Compensated Employee’s deferral shall 

 

 

be reduced in the order
of those Highly Compensated Employees with the largest dollar amount
deferred.  Also, if such amount is
returned to a Participant within 21⁄2 months after the end of the calendar year,
such amount shall be reported as taxable income in the preceding calendar year.  Notwithstanding the foregoing, the Plan Administrator
may choose any other correction method prescribed by the Secretary of the
Treasury, Internal Revenue Service or in the Code or tax regulations to the
extent such choice is allowed thereunder.

 

6.5           Maximum
Annual Additions to a Participant’s Accounts

 

For purposes of
this Article, the Employer and any Related Employer shall be considered a
single employer, to the extent required by the Code.

 

(a)           General

 

The Annual Additions with
respect to a Plan Year to a Participant’s Accounts in this Plan and any other
defined contribution plan maintained by the Employer shall not
exceed the lesser of

 

(i)            $40,000,
as indexed in accordance with Code section 415(d)(1)(C); or

 

(ii)           One
hundred percent (100%) of the Participant’s Compensation.

 

(b)           Annual
Additions

 

For purposes of
this Article, the term “Annual Additions” for any Participant in any Plan Year
means the sum of:

 

(i)            The
amount of Profit Sharing, Matching Contributions, Salary Deferral
Contributions, and Forfeitures (if any) allocated to a Participant’s Accounts;
and

 

(ii)           With
respect only to the $40,000 limitation, amounts attributable to retiree medical
benefits on behalf of a Key Employee in an account in a welfare fund subject to
Code section 419A.

 

(c)           Timing
of Annual Additions

 

Employee
Elective Deferrals are treated as Annual Additions in the year in which
the contribution would have been paid as taxable Compensation if it had not
been designated for contribution to the Plan.

 

(d)           Remedy

 

If for any Plan
Year the Annual Additions exceed the foregoing limitations because of a
reasonable error in determining Compensation or the amount of a Participant’s
contribution permitted under Code section 415, or other justified 

 

 

circumstances, the
Committee shall direct the Trustee to distribute the amount of Employee Salary
Deferral Contributions in excess of the limits, without earnings.

 

The limitation
shall be satisfied by reducing contributions made on behalf of the Participant
to the extent necessary in the following order:

 

(i)            Salary
Deferral Contributions made on the Participant’s behalf for the limitation year
that have not been matched, if any, shall be reduced.

 

(ii)           Salary
Deferral Contributions made on the Participant’s behalf for the limitation year
that have been matched and the Matching Contributions attributable thereto, if
any, shall be reduced pro rata.

 

(iii)          Qualified
non-elective contributions made on the Participant’s behalf for the limitation
year shall be reduced.

 

If the Annual
Additions exceed the limits for any other reason, the Employer shall allocate
the excess to a suspense account.  The
suspense account shall be credited with investment earnings and losses as of
each Valuation Date in the same manner as Participant’s Accounts.  Such suspense account is for accounting
purposes only and shall remain in the Trust Fund to be reallocated as provided
below.

 

Contents of the
suspense account shall be allocated to the affected Participant’s Account in
subsequent years when that can be done without exceeding the limitations of
this Section 6.5.  So long as any amount
remains in the suspense account, the Employer shall not contribute to the Plan
any amount which would cause an additional allocation to the suspense account.  In the event the Participant ceases to be a
Participant when any amount remains in a suspense account, such amount shall be
reallocated to other Participants who are eligible to receive a contribution as
of the end of the Plan Year following the calendar year in which he ceases to
be a Participant.  In the event the Plan
terminates before any amount remaining in the suspense account has been fully
allocated to Participant Accounts, the balance of the suspense account shall be
distributed to the Employer.

 

 

ARTICLE VII

 

IN-SERVICE WITHDRAWALS AND LOANS

 

7.1           In-Service
Withdrawal From Accounts

 

To the extent permitted by this Article, a Participant
may withdraw any amount from his Accounts not in excess of his vested Account
balance by filing a request for a withdrawal in accordance in such manner as
prescribed by the Plan Administration Committee.  The payment of the amount to be withdrawn
shall occur as soon as administratively feasible on or after the Valuation Date
following receipt and approval of such request.

 

(a)           Rollover
Contributions

 

A Participant may
elect to receive all or any portion of his Account to the extent of any
Rollover Contributions and any earnings thereon, and

 

(b)           Employee
After-Tax Contributions

 

A Participant who
is employed by an Employer may elect to withdraw all or any portion of his
Employee After-Tax Contributions, plus earnings thereon at any time.

 

7.2           Age 591⁄2
Withdrawals

 

Upon attainment of age 591⁄2, a Participant who is
employed by an Employer may withdraw all or any portion of his vested Accounts.

 

7.3           Hardship
Withdrawals

 

(a)           A
Participant who encounters an immediate and heavy financial need may make a
withdrawal of his Salary Deferral Contributions (excluding any earnings thereon
accrued after the last day of the last Plan Year ending before January 1, 1989)
required to meet the immediate financial need created by the hardship and not
reasonably available from other resources of the Employee.  Notwithstanding the foregoing, no hardship
distribution will be allowed for a Participant whose eligible amount under this
Section is less than $500.

 

Hardship
determinations shall be made according to the standards set forth below in
Subsections (b) and (c).  These standards
shall be modified automatically in accordance with guidance published by the
Internal Revenue Service to expand the list of deemed immediate and heavy
financial need and additional methods for distributions to be deemed necessary
to satisfy an immediate and heavy financial need.

 

(b)           Immediate
and Heavy Financial Need

 

A distribution
will be made on account of an immediate and heavy financial need of the
Participant if the distribution is on account of:

 

 

(i)            Medical expenses described in Code section 213(d) incurred
or expected to be incurred by the Participant, the Participant’s spouse, or any
dependents of the Participant (as defined in Code section 152).

 

(ii)           Purchase (excluding mortgage payments) of
a principal residence of the Participant.

 

(iii)          Payment of tuition and related
educational fees, and room and board expenses, for the next 12 months of
post-secondary education for the Participant, the Participant’s spouse,
children or dependents.

 

(iv)          The need to prevent the eviction of the
Participant from the Participant’s principal residence or foreclosure on the
mortgage of the Participant’s principal residence.

 

(v)           Effective November 1, 2005, payments
for burial or funeral expenses for the Participant’s deceased parent, spouse,
children or dependents (as defined in Code Section 152 but without regard
to Section 152(d)(1)(B)). Between November 1 and December 31,
2005, the Plan Administrator (or its delegate) must determine, based upon all
the relevant facts and circumstances, that the need to pay such burial or
funeral expenses was an immediate and heavy financial need.

 

(vi)          Effective November 1,
2005, expenses for the repair of damage to the Participant’s principal
residence that would qualify for the casualty deduction under Code Section 165
(determined with out regard to whether the loss exceeds 10% of adjusted gross
income). Between November 1 and December 31, 2005, the Plan
Administrator (or its delegate) must determine, based upon all the relevant
facts and circumstances, that the need to pay such repair expenses was an
immediate and heavy financial need.

 

(c)           Withdrawal
Necessary to Satisfy Financial Need

 

A withdrawal will be deemed necessary to satisfy an immediate and heavy
financial need of the Participant if and only if the Participant certifies and
agrees that all of the following requirements are satisfied:

 

(i)            The withdrawal amount is not in excess of
the amount of an immediate and heavy financial need (including amounts
necessary to pay any federal, state or local income taxes or penalties
reasonably anticipated to result from the distribution); and

 

(ii)           The Participant has obtained all
distributions (including a distribution of dividends related to the Participant’s
investment in the Company Stock Fund), other than the hardship withdrawal, and
all nontaxable (at the time of the loan) loans currently available under all
plans maintained by any Employer or any Related Employer;

 

 

(iii)          The Participant suspends Salary Deferral
Contributions to the Plan for the six-month (180 day) period following the date
of his hardship withdrawal. The suspension must also apply to all elective
contributions and Employee After-Tax Contributions to all other qualified and
non-qualified plans maintained by any Employer or Related Employer, other than
any mandatory Employee After-Tax Contribution portion of a defined benefit
plan, including stock option, stock purchase, and other similar plans, but not
including health and welfare benefit plans (other than the cash or deferred
arrangement portion of a cafeteria plan);

 

(d)           No
redeposit of Hardship Withdrawal

 

A Participant shall not be permitted to re-contribute or redeposit in
his Accounts any portion of the amounts withdrawn by reason of hardship.

 

(e)           Hardship
Withdrawal Ineligible for Rollover

 

The portion of a Hardship withdrawal distributed after December 31,
1998 attributable to Elective Deferral Contribution may not be part of
an eligible rollover distribution.

 

7.4           Loans

 

(a)           Availability
of Loans

 

Effective October 1, 2004 loans shall be permitted under this Plan
for Participants who are currently employed by the Company and the provisions
of this Section shall be implemented as the Committee determines in its
discretion. When a loan is permitted under the Plan, any such loan shall be
subject to the requirements of Code Section 72(p) and regulations
thereunder, and such conditions and limitations as the Committee deems
necessary for administrative convenience and to preserve the tax-qualified
status of the Plan.

 

(b)           Minimum
and Maximum Loan Amounts

 

The maximum amount of a loan under the Plan shall be the lesser of (i) 50%
of the vested portion of the Participant’s Account Balance or (ii) $50,000
reduced by the excess (if any) of (A) the highest aggregate outstanding
principal balance of all loans from the Plan during the 1-year period ending on
the day before the date of the loan, over (B) the outstanding principal
balance of the loan from the Plan to the Participant on the date of the loan. The
minimum loan permitted shall be $1,000, or such lower amount that is
established in writing by the Plan Administrator. Any administrative fees or
expenses incurred by the Plan in connection with any loan shall be charged to
the Account of the Participant requesting the loan. In addition, the Committee
may, in its discretion establish a lower maximum amount of a loan to ensure
that the loan amount does not exceed 50% of the vested portion of the
Participants Account Balance due to market fluctuations.

 

 

(c)           Number,
Frequency And Duration

 

Each Participant may have one loan outstanding at one time under
the Plan. A loan must be for a minimum term of one year. In no event may the
loan term extend beyond five years. Any renewal or extension of a loan shall be
deemed to be a new loan for purposes of this section 7.4.

 

(d)           Interest

 

Interest on a loan will be charged at a fixed annual
rate for the entire term of the loan and the rate shall be established at the
date the loan is approved. The interest rate for loans are established on the
first day of each quarter based on the Prime Rate plus one percent (+1%).

 

(e)           Source and
Application of Funds

 

Loan proceeds will be withdrawn based on funds hierarchy from the
Participants’ Accounts with the exception of the BrokerageLink Account. The
BrokerageLink Account balance will be used to calculate the available loan
amounts, but the loan amounts cannot be charged against the BrokerageLink
Account.

 

(f)            Repayment

 

The Participant shall be required to repay his loan with payments of
principal and interest sufficient to amortize the loan in substantially equal
installments over its term. All payment by Employees while employed shall be by
means of payroll deductions, which deductions shall be authorized by the
Participant as a condition to receipt of the loan. Loans are payable in full
upon severance from employment. Payments made by a Participant with respect to
a loan shall be invested for the Account of such Participant in the Investment
Funds in accordance with the Participant’s Investment directions in effect at
the time such payments are made. In the absence of a valid investment election,
the loan repayments will be invested in the Standard Plan Option Default Fund.

 

A participant may repay a loan in full at any time from when the
loan repayments begin. Partial loan repayments are not allowed under the Plan
provisions.

 

If a participant is on a bona fide leave of absence (including military
leave), loan repayments may be suspended but interest will continue to
accrue during the suspension period. If a loan is suspended and the Participant
returns to active employment with the Company following a leave of absence, the
outstanding principal loan balance and accrued interest will be recalculated
with repayment to be extended to the 5 year maximum term, regardless of the
length of leave of absence.

 

(g)           Defaults

 

A loan shall be deemed in default at the end of the calendar quarter
following the calendar quarter in which the repayments were discontinued. Upon
default by a Participant in any of the terms of a loan, the loan will be come
immediately due and

 

 

payable and the
Plan Administrator in such case shall charge the unpaid balance of such loan,
together with any interest in his Account balance.

 

(h)           Security

 

Each
loan shall be secured by the Participant’s vested account balance.

 

(i)            Fees

 

The
Plan Administration Committee may charge a reasonable fee for establishing
and administering loans.

 

(j)            Loans
Relating to Merged Plans

 

From time to time the Plan acquires Participant loans in connection
with the transfer of assets from a qualified plan of an acquired entity or the
merger of another qualified plan. Such loans are called Acquired Participant
Loans. The Acquired Participant Loans are identified in Appendix A hereto.

 

Acquired Participant Loans shall be governed by an Acquisition Loan
Policy adopted by the Plan Administration Committee and any related
administrative guidelines to the extent that the policy and guidelines are not
inconsistent with the basic terms of the loans or any agreement between the
Company and a merged company. For purposes of this Section 7.4(j) the
basic terms of the loans shall include principal, interest rate, term and
payment.

 

 

ARTICLE VIII

 

VESTING AND
DISTRIBUTION OF BENEFITS

 

8.1           Vesting

 

(a)     Employee
Contributions

 

Salary
Deferral Contributions, Rollover Contributions, Employee After-Tax
Contributions and QNECs, if any allocated to a Participant’s Account, plus
earnings thereon shall be 100% vested and nonforfeitable at all times.

 

(b)     Matching
Contributions after 2003

 

Matching
Contributions made on or after January 1, 2004 and allocated to the
Participant’s Account shall be 100% vested and nonforfeitable. However, the
Matching Contributions, made to the Participant and allocated to his Account
prior to January 1, 2004, shall be subject to the vesting requirements in Section 8.1(c).

 

(c)     Other
Matching and Profit Sharing Contributions

 

Except
as provided in Appendix A or subpart (d) below, a Participant’s
nonforfeitable right to Profit Sharing Contributions and Matching
Contributions, made to the Participant and allocated to his Account prior to January 1,
2004, upon termination of employment shall be based upon his Years of Vesting
Service in accordance with the following schedule:

 

	
  Years of Vesting Service

  	
   

  	
  Percent Vested

  	
   

  
	
  Less than 2

  	
   

  	
  0

  	
  %

  
	
  2

  	
   

  	
  25

  	
  %

  
	
  3

  	
   

  	
  50

  	
  %

  
	
  4

  	
   

  	
  75

  	
  %

  
	
  5 or more

  	
   

  	
  100

  	
  %

  

 

(d)           Notwithstanding
the foregoing, Profit Sharing Contributions and Matching Contributions made to
the Participant and allocated to his Account prior to January 1, 2004,
shall be 100% vested and nonforfeitable upon the earliest to occur of the
following:

 

(i)            The date of the Participant’s death while
an Employee;

 

(ii)           The date of the Participant’s Disability
while an Employee (including an Employee who is on an approved leave of
absence);

 

(iii)          The date the Participant terminates
Service on or after the completion of one year of Service and the attainment of
his Early Retirement Date

 

 

(provided, however, that
this subpart (iii) shall not apply to the portions of any Accounts
that are attributable to plan mergers and are subject to Appendix A);

 

(iv)          The date the Participant attains age 65
while an Employee.

 

(e)           Vesting of
Dividends

 

(f)            A
Participant shall be vested in all dividends paid with respect to shares of
Company Stock in the Company Stock Fund in which the Participant is vested.

 

(g)           Dishonesty

 

If a Participant or Inactive Participant has engaged in “dishonesty,”
and terminates prior to completing three Years of Vesting Service, the Profit
Sharing Contributions and Matching Contributions allocated to the Participant’s
Account and any earnings thereon shall be treated as a forfeiture. A
Participant shall not forfeit their interest in their Salary Deferral
Contributions or Rollover Contributions. For purposes of this Section, “dishonesty”
means that the Participant has engaged in acts of fraud, embezzlement, theft or
any other crime of moral turpitude or has otherwise been dishonest in his
relationship with the Employer (without necessity of formal criminal
proceedings being initiated against him) and his employment terminated by
either discharge or resignation, as determined by the Committee. This subsection (g) shall
not apply to the extent its application would cause the Plan to fail to be
considered a “safe harbor 401(k) plan” in any given Plan Year pursuant to Code section 401(k)(12)
and the treasury regulations thereunder.

 

8.2           Forfeiture
of Contingent Interests

 

(a)           Timing of
Forfeitures

 

Matching Contributions and Profit Sharing Contributions allocated to a
Participant’s Account that are not vested shall be forfeited on the earlier of
the following dates:

 

(i)            The last day of the fifth consecutive one
year break in Years of Vesting Service, or

 

(ii)           As soon as practicable after the date on
which the Participant receives a distribution of the value of his vested
Account balance, (including a deemed cashout of $0).

 

(b)           Restoration
of Non-Vested Accounts

 

If a Participant incurs a forfeiture by reason of Section 8.2(a)(ii) and
returns to Service prior to incurring five consecutive Breaks in Service, the
amount of the forfeiture shall be restored (unadjusted for any gains or losses)
as part of such Participant’s Account

 

 

if the Participant
repays to the Plan the full amount of the distribution prior to the earlier of

 

(i)            The Plan’s termination, or

 

(ii)           The lapse of five years following the
Participant’s reemployment by the Employer or a Related Employer (provided that
the Participant must be an Employee at the time of repayment). If the
Participant received a deemed cashout of $0, he shall be deemed to have repaid
the distribution upon reemployment.

 

As of the Valuation Date immediately following such repayment, and
prior to any allocation of Trust earnings, forfeitures, or Employer
Contributions specified in Article V, the amount of a Participant’s
previous forfeiture (the “Restoration Amount”) shall be allocated to his
Account.

 

The Restoration Amount shall be credited first against
forfeitures arising for the Plan Year, and if such forfeitures are not
sufficient to satisfy the Restoration Amount in full, the remainder of such
amount shall be satisfied out of Employer Contributions for the Plan Year. The
Restoration Amount shall not be deemed an Annual Addition. In addition, the
Employer may make an Employer Contribution for the purpose of restoring a
forfeiture even thought he Employer has no profits.

 

The Committee shall give timely notice to any rehired
Employee if such Employee is eligible to make a repayment, of his right to make
such repayment before the expiration of the periods of the occurrence of the
events specified above, and such notice shall also include an explanation of
the consequences of not making such repayment.

 

8.3           Distribution
Upon Severance from Employment

 

A Participant may elect to receive a distribution
of his Account on account of a severance from employment. The Inactive
Participant may elect that the distributions be paid as soon as
administratively feasible after the date that the severance from employment
occurs. All elections as to the date of payment of the Participant’s Account
shall be subject to any earlier payment date required under the rules in Section 8.4,
Section 8.10 or Section 8.11.

 

8.4           Mandatory
Distribution At Age 65 

 

Notwithstanding
any other provisions of this Plan to the contrary, a Participant who has
separated from employment shall receive a distribution of his Accounts upon
attainment of age 65.

 

8.5           Benefits
Upon Disability

 

A Participant who is Disabled may elect to
receive a distribution of his Account. The Participant may elect that the
distributions be paid as soon as administratively feasible after the Valuation
Date that coincides with or next follows the determination by the Plan
Administration Committee that the Participant is disabled or the time requested
by the Participant. All elections

 

 

as to the date of payment of the vested balance of the
Participant’s Account shall be subject to any earlier payment date required
under the rules in Section 8.10 and Section 8.11.

 

8.6           Death
Benefits

 

In the event of death, payment of the Participant’s
Vested Accrued Benefit shall commence as soon as administratively feasible
after the Valuation Date that coincides with or next follows death. The
foregoing rule shall apply to regardless of whether or not the Beneficiary
is the Participant’s surviving spouse.

 

8.7           Beneficiary
Designation

 

(a)           Subject to
the limitations of Section 2.55, each Participant may designate a
Beneficiary to whom the Trustee shall pay his vested Account in the Trust in
the event of his death. The Plan Administration Committee shall prescribe the
manner for the designation of Beneficiary(s) and, upon the receipt of a revised
beneficiary designation, the Participant’s previous Beneficiary designation
shall be revoked. A Participant may designate multiple and/or contingent
Beneficiaries.

 

(b)           No
Beneficiary Designation

 

Subject to the limitations of Section 2.55, if a Participant fails
to name a Beneficiary, or if the Beneficiary named by a Participant predeceases
him, the Committee may direct that payment of a Participant’s Account be
made to the person or persons in the following priority:

 

(i)            the Participant’s spouse at the time of
death;

 

(ii)           if no surviving spouse, then to the
Participant’s surviving children (including adopted children) in equal shares;

 

(iii)          if the Participant has no surviving
children, then to the Participant’s surviving parents in equal shares;

 

(iv)          if the Participant has no surviving
parents then to the Participant’s estate or such other individual or entity designated
by the Committee, in its sole discretion, if no estate exists or it is
otherwise impractical to make payment to the estate.

 

The Committee, in its sole discretion, shall direct the Trustee as to
whom the Trustee shall make payment under this Section.

 

8.8           Forms of
Distribution

 

All distributions
made pursuant to this Article VIII shall be paid, at the applicable time
in a single lump sum payment. A Participant, Beneficiary or Alternate
Payee may elect a direct rollover of that payment, to the extent permitted
under

Section 8.12(e)(v).

 

 

8.9           Payment
Rules

 

(a)           Method of
Payment

 

After all required accounting adjustments, the Trustee, in accord with
the direction of the Plan Administration Committee, shall make payment of the
Participant’s vested Account in cash or in kind (but only to the extent his
Account contains contributions that constitute contributions to the ESOP under Section 10.2
or, with respect to amounts not in the ESOP, the Trustee permits in-kind direct
rollovers to an IRA), or a combination thereof. Fractional shares cannot be
distributed in-kind.

 

(b)           Withholding

 

The Employer may withhold or require the withholding from any
payment that is made under this Plan of any federal, state or local taxes
required by law to be withheld, with respect to such payment. If an Employer
(or other person required to withhold) is unable to withhold the full amount
required to be withheld and the Participant (or Beneficiary or Alternate Payee,
as applicable) does not make a cash payment to the Employer of the amount
required to be withheld, then the Employer may withhold from any other
amounts payable to the Participant (or Beneficiary or Alternate Payee, as
applicable) by the Employer the additional amount that is required be withheld,
with respect to any benefit under this Plan.

 

(c)           Valuation

 

The value of the Participant’s Accounts shall be determined as of the
Valuation Date coincident with or immediately preceding the date of
distribution. However, if Salary Deferral Contributions or Employer Contributions
are allocated to the Participant’s Accounts after such Valuation Date for the
Plan Year in which the Participant receives a distribution on account of Normal
Retirement, Early Retirement, death, or Disability, then the value of the
Participant’s Accounts shall be adjusted to reflect such additional
allocations.

 

8.10         Small
Amounts

 

Notwithstanding the provisions of this Article but
subject to the following sentence, if an Inactive Participant’s vested Accounts
do not exceed $5,000 (determined without regard to the value attributable to
such Participant’s Rollover Contributions plus earnings thereon at the time he
would be eligible to receive a distribution due to severance from employment),
the Plan Administration Committee shall direct the Trustee to distribute the
Participant’s vested Accounts (including a deemed distribution of $0) to the
Participant or his Beneficiary in a lump sum as soon as administratively
feasible following the Valuation Date that coincides with or next follows the
Participant’s severance from employment. Effective March 28, 2005, in the
event of a mandatory distribution greater than $1,000 in accordance with the
provisions of this Section 8.10 if the Participant does not elect to have
such distribution paid directly to an eligible retirement plan specified by the
Participant in a direct rollover or to receive the distribution directly, then
the Plan Administration Committee will pay the distribution in a direct
rollover to an individual retirement plan designated by the Plan Administration
Committee. For purposes of

 

 

determining whether a
distribution is greater than $1,000, rollover contributions (and earnings
thereon) within the meaning of Code Sections 402(c), 403(a)(4), 403(b)(8),
408(d)(3)(A)(ii), and 457(e)(16) that are being distributed shall be considered
part of the distribution that is subject to the $1,000 threshold.

 

8.11         Required
Beginning Date

 

The April 1st of the calendar year following the
later of the calendar year in which the Participant attains age 701⁄2 or the
calendar year in which the Participant retires, except that in the case of a
Participant who is a 5% owner of the Employer, the Required Beginning Date
shall mean April 1 of the calendar year following the year in which such
Participant attains 701⁄2.

 

However, for a Participant who is not a 5% owner of
the Employer, who attained age 701⁄2 during 1988 and had not retired by January 1,
1989, the Required Beginning Date shall be April 1, 1990. This rule shall
have no effect upon any life expectancy calculation for the Participant. In
addition, for a Participant who attained age 701⁄2 before January 1,
1988 and is not a 5% owner of the Employer, the Required Beginning Date shall
be April 1 of the calendar year following the later of the calendar
year in which the Participant attains age 701⁄2 or retires.

 

8.12         Required
Minimum Distributions

 

(a)           General
Rules

 

(i)            Effective Date. The provisions of this Section 8.12
will apply for purposes of determining required minimum distributions for
calendar years beginning with the 2003 calendar year.

 

(ii)           Precedence/Incorporation of Code. The requirements of this Section 8.12
will take precedence over any inconsistent Plan provisions. All distributions
required under this Section will be determined and made in accordance with
Code section 401(a)(9) and regulations promulgated thereunder.

 

(b)           Time and
Manner of Distributions

 

(i)            Required Beginning Date. A Participant’s entire interest will be
distributed, or begin to be distributed, to the Participant no later than the
Participant’s Required Beginning Date.

 

(ii)           Death of Participant Before Distributions
Begin. If the
Participant dies before distributions begin, the Participant’s entire interest
will be distributed, or begin to be distributed, as soon as practicable after
the Participant’s death, and in no event later than:

 

(A)          If
the Participant’s surviving spouse is the Participant’s sole designated
beneficiary, distributions to the surviving spouse will begin by December 31
of the calendar year immediately following the calendar year

 

 

in which the
Participant died, or by December 31 of the calendar year in which the
Participant would have attained age 701⁄2, if later;

 

(B)           If
the Participant’s surviving spouse is not the Participant’s sole designated
beneficiary, distributions to the designated beneficiary will begin by December 31
of the calendar year immediately following the calendar year in which the
Participant died;

 

(C)           If
there is no designated beneficiary as of September 30 of the year
following the year of the Participant’s death, the Participant’s entire
interest will be distributed by December 31 of the calendar year
containing the fifth anniversary of the Participant’s death; or

 

(D)          If
the Participant’s surviving spouse is the Participant’s sole designated beneficiary
and the surviving spouse dies after the Participant but before distributions to
the surviving spouse begin, subparagraphs (B) and (C) will apply as
if the surviving spouse were the Participant.

 

Distributions under this Subsection, other than those
to which subparagraph (D) applies, are considered to begin on the
Participant’s Required Beginning Date. If subparagraph (D) applies,
distributions are considered to begin on the date distributions are required to
begin to the surviving spouse, under subparagraph (A). If distributions under
an annuity purchased from an insurance company irrevocably commence to the
Participant before the Participant’s Required Beginning Date (or to the
Participant’s surviving spouse before the date distributions are required to
begin to the surviving spouse, under subparagraph (A)), the date distributions
are considered to begin is the date distributions actually commence.

 

(iii)          Application of 5-Year Rule to
Distributions to Designated Beneficiaries. If the Participant dies before distributions begin and
there is a designated beneficiary, the Participant’s entire interest will be
distributed to the designated beneficiary as soon as practicable after the
Participant’s death, and in no event later than December 31 of the calendar
year containing the fifth anniversary of the Participant’s death. If the
Participant’s surviving spouse is the participant’s sole designated beneficiary
and the surviving spouse dies after the Participant but before distributions to
either the participant or the surviving spouse begin, this election will apply
as if the surviving spouse were the Participant.

 

(iv)          Form of Distribution. The Participant’s interest will be
distributed in the form of a single sum on or before the Required
Beginning Date, as of the first distribution calendar year distributions will
be made in accordance with Sections (c) and (d).

 

 

(c)           Required
Minimum Distributions During Participant’s Lifetime

 

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

 

(A)          The
quotient obtained by dividing the Participant’s account balance by the
distribution period in the Uniform Lifetime Table set forth in Treas. Reg.
§ 1.401(a)(9)-9, using the Participant’s age as of the Participant’s
birthday in the distribution calendar year; or

 

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

 

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

 

(d)           Required
Minimum Distributions After Participant’s Death

 

(i)            Death on or After Date Distributions
Begin

 

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

 

(1)           The
Participant’s remaining life expectancy is calculated using the age of the
Participant in the year of death, reduced by one for each subsequent year.

 

(2)           If
the Participant’s surviving spouse is the Participant’s sole designated
beneficiary, the remaining life expectancy of the surviving spouse is
calculated for each distribution calendar year after the year of the
Participant’s death using the surviving spouse’s age as of the spouse’s
birthday in that year. For distribution calendar years after the year of the
surviving spouse’s death, the remaining life expectancy of the surviving spouse
is calculated

 

 

using the age of
the surviving spouse as of the spouse’s birthday in the calendar year of the
spouse’s death, reduced by one for each subsequent calendar year.

 

(3)           If
the Participant’s surviving spouse is not the Participant’s sole designated
beneficiary, the designated beneficiary’s remaining life expectancy is
calculated using the age of the beneficiary in the year following the year of
the Participant’s death, reduced by one for each subsequent year.

 

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

 

(ii)           Death Before Date Distributions Begin

 

(A)          Participant
Survived by Designated Beneficiary. If the Participant dies before the date
distributions begin and there is a designated beneficiary, the minimum amount
that will be distributed for each distribution calendar year after the year of
the Participant’s death is the quotient obtained by dividing the Participant’s
account balance by the remaining life expectancy of the Participant’s
designated beneficiary, determined as provided in Subsection (i) above.

 

(B)           No
Designated Beneficiary. If the Participant dies before the date distributions
begin and there is no designated beneficiary as of September 30 of the
year following the year of the Participant’s death, distribution of the
Participant’s entire interest will be completed by December 31 of the
calendar year containing the fifth anniversary of the Participant’s death.

 

(C)           Death
of Surviving Spouse Before Distributions to Surviving Spouse are Required to
Begin. If the Participant dies before the date distributions begin, the
Participant’s surviving spouse is the Participant’s sole designated
beneficiary, and the surviving spouse dies before distributions are required to
begin to the surviving spouse under Subsection (b)(ii)(A), this Subsection (d)(ii) will
apply as if the surviving spouse were the Participant.

 

(e)           Definitions

 

For purposes of this Section, the following
definitions apply.

 

 

(i)            Designated Beneficiary. The term “designated beneficiary” means
the individual who is designated as the Beneficiary under Section 2.5 and
is the designated beneficiary under Internal Revenue Code § 401(a)(9) and
Treas. Reg. § 1.401(a)(9)-1, Q&A-4.

 

(ii)           Distribution Calendar Year. The term “distribution calendar year”
means a calendar year for which a minimum distribution is required. For
distributions beginning before the Participant’s death, the first distribution
calendar year is the calendar year immediately preceding the calendar year
which contains the Participant’s Required Beginning Date. For distributions
beginning after the Participant’s death, the first distribution calendar year
is the calendar year in which distributions are required to begin under Subsection (b)(ii).
The required minimum distribution for the Participant’s first distribution
calendar year will be made on or before the Participant’s Required Beginning
Date. The required minimum distribution for other distribution calendar years,
including the required minimum distribution for the distribution calendar year
in which the Participant’s Required Beginning Date occurs, will be made on or
before December 31 of that distribution calendar year.

 

(iii)          Life Expectancy. The term “life expectancy” means the
life expectancy as computed by use of the Single Life Table in Treas.
Reg. § 1.401(a)(9)-9.

 

(iv)          Participant’s Account Balance. The term, “Participant’s account
balance” means the Account balance as of the last Valuation Date in the
calendar year immediately preceding the distribution calendar year (“valuation
calendar year”) increased by the amount of any contributions made and allocated
or forfeitures allocated to the Account balance as of dates in the valuation
calendar year after the Valuation Date and decreased by distributions made in
the valuation calendar after the Valuation Date. The Account balance for the
valuation calendar year includes any amounts rolled over or transferred to the
Plan either in the valuation calendar year or in the distribution calendar year
if distributed or transferred in the valuation calendar year.

 

(v)           Required Beginning Date. The date specified in Section 8.11
of the Plan.

 

8.13         Direct
Rollovers

 

A Participant may elect at the time and in the
manner prescribed by the Plan Administration Committee to make a direct
rollover, in accordance with the provisions of this Section 8.13 and Code
sections 401(a)(31) and 402(c), of an Eligible Rollover Distribution to an
Eligible Retirement Plan.

 

A surviving spouse Beneficiary or a former spouse who
is an Alternate Payee, pursuant to a QDRO under Section 15.12, may direct
a rollover under the same terms and conditions as a Participant. A non-spouse
Beneficiary may not direct a rollover pursuant to this Section.

 

 

(a)           Eligible
Rollover Distribution

 

Any distribution of all or any portion of the Participant’s Accounts,
except that it does not include:

 

(i)            Any distribution that is one of a series of
substantially equal periodic payments over a period of 10 years or more or over
a period equal to the life expectancy of the Participant or the joint and last
survivor life expectancy of the Participant and his Beneficiary;

 

(ii)           Any distribution to the extent it is
required under Code section 401(a)(9); or

 

(iii)          Any amount that is distributed on account
of hardship.

 

(b)           Eligible
Retirement Plan

 

“Eligible Retirement Plan” means an
individual retirement account or individual retirement annuity (other than an
endowment contract) under Code sections 408(a) or 408(b), a trust
qualified under Code section 401(a) and exempt from tax under Code section 501(a),
which accepts rollover distributions (as limited by Code section 401(a)(31)(D)),
an annuity plan under Code section 403(a), an annuity contract described
in Code section 403(b), or an eligible plan under Code section 457
that is maintained by a governmental entity which agrees to separately account
for amounts transferred into such plan from this Plan.

 

(c)           Notice to
Participants

 

In accordance with Code section 402(f), the Committee or Trustee
shall furnish each Participant, spousal Beneficiary or Alternate Payee eligible
for a directed rollover under this Section 8.13(c) with an
explanation of the directed rollover opportunity and related withholding
consequences of not choosing a directed rollover within a reasonable period (at
least 30 but not more than 90 days) prior to the Participant’s distribution. The
explanation shall clearly indicate that the Participant, spousal Beneficiary or
Alternate Payee has a right to a 30 day waiting period to consider the election.
A Participant, Beneficiary or Alternate Payee may waive the 30 day period
by affirmative election on forms provided by the Committee or Trustee.

 

 

ARTICLE IX

 

PARTICIPANT
ACCOUNTS

 

9.1           Individual
Accounts

 

The Plan Administration Committee shall establish and
maintain an Account for each Participant that shall reflect Employer and
Participant-directed contributions made on behalf of the Participant and
earnings, expenses, gains and losses attributable thereto, and investments made
with amounts in the Participant’s Account. The Trustee shall establish and
maintain such sub-accounts as it deems advisable from time to time.

 

9.2           Allocation
of Trust Fund Earnings and Losses to Participant Accounts

 

As of each Valuation Date, the Plan Administration
Committee shall

 

(a)           Adjust the
balances in the Accounts of all Participants upward or downward to reflect
investment gains and losses (adjusted by any expenses charged to the Plan that
are charged to the Participant’s Account in accordance with Section 0)
since the last Valuation Date; the gain or loss of each separate investment
fund will be allocated to each subaccount in the same proportion that the value
of such subaccount as of the last Valuation Date bears to the value of all
subaccounts invested in that fund as of the same date;

 

(b)           Credit to
the Accounts of each Participant the contributions which were deposited in the
Trust fund since the last Valuation Date;

 

(c)           Charge to
the Accounts of each Participant all payments or distributions made to or on
behalf of the Participant since the last Valuation Date;

 

(d)           Charge the
Account of each Participant such Participant’s share of any administrative
expenses as are allocable in accordance with Section 11.6, and the Plan’s
administrative procedures.

 

(e)           Credit and
charge the proper subaccounts of each Participant to reflect transfers among
investment funds.

 

9.3           Account
Statements

 

Each Participant shall be provided with a statement of
his Accounts under the Plan showing the Account values at least once each Plan
Year. Account statements may be delivered electronically as provided by
the Committee.

 

 

9.4           Finality
of Determinations

 

The Plan Administration Committee shall have exclusive
responsibility for determining the balance of each Participant’s Account
maintained hereunder. The Plan Administration Committee’s determinations
thereof shall be conclusive upon all interested parties.

 

 

ARTICLE X

 

INVESTMENT
ELECTIONS

 

10.1         Permissible
Investments

 

(a)           The
Committee shall arrange for the establishment of one or more investment funds
within the Trust Fund. If the Committee permits, one such investment fund shall
be “BrokerageLink.” The Plan Investment Committee may change the
investment funds from time to time in its discretion. The Plan Investment
Committee shall be the fiduciary responsible for selecting the investment funds
for the Plan.

 

(b)           Except as
otherwise provided in this Article X, all contributions allocated to an
Account shall be invested in one or more of the permissible investments, in
accordance with the investment elections of the Participant, Alternate Payee,
or Beneficiary, as applicable.

 

10.2         Investment
of Contributions

 

Each Participant may direct the investment of his
Account among the permissible investment funds. An investment direction shall
remain effective with regard to all subsequent amounts credited to a
Participant’s Accounts, until changed in accordance with the provisions of this
Section.

 

The Plan is intended to constitute a Plan described in
ERISA section 404(c) with respect to Participant directed investments.
The Plan Administrator shall make available to Participants information
concerning the portfolio characteristics of each investment, its historic
earnings performance, and other information to assist the Participants in
exercising their investment discretion, as contemplated in ERISA section 404(c).

 

10.3         Initial
Investment Elections

 

The Participants in the Plan are allowed to allocate
contributions to their accounts to various investment funds, including a fund
(the “Company Stock Fund”) which will be invested primarily in the common stock
of the Company (the “Company Stock”).

 

All contributions to the Plan which are directed for
investment in the Company Stock Fund shall first be considered made to the WSP.
To the extent such contributions are eligible to be made to the ESOP, they will
immediately be transferred to the ESOP, subject to any limitations or
restrictions the Plan Administration Committee adopts, in its sole discretion.

 

Coincident with an election to commence a Salary
Deferral, Matching Contribution, Profit Sharing Contribution or Rollover
Contribution to the Plan, a Participant shall make an investment direction
election allocating his future contributions among one or more of the
permissible investments in increments of one percent
(1%). Such an investment election shall be presented in the manner, and in
accordance with deadlines, established by the Committee.

 

 

The Plan Administration Committee may establish
and communicate that, in the absence of any such investment election by the
Participant, all such contributions shall be invested in a default fund. In the
absence of a timely investment election from the Participant, the Trustee shall
invest the Participant’s contributions in such default fund until the effective
date of any change in investment election by the Participant. The default fund
shall be selected by the Investment Committee.

 

10.4         Changing
Future Contributions

 

A Participant may change
his investment elections with
respect to future contributions, among one or more investment funds, by giving
direction in the manner, and in accordance with deadlines and limitations,
established by the Plan Administration Committee from time to time. Elections
will be implemented in accordance with the administrative procedures of the
Plan, and of the underlying investment fund, if any. The Participant’s election
shall specify a percentage in increments of one percent (1%), which
percentage may not exceed one hundred percent (100%).

 

10.5         Reinvesting
Existing Account Balances

 

A Participant may transfer existing balances of
his Account, from one or more of the permissible investments, by giving
direction in the manner, and in accordance with deadlines and limitations,
established by the Plan Administration Committee from time to time. Elections
will be implemented in accordance with the written administrative procedures of
the Plan and of the underlying investment fund, if any. The Participant’s
transfer election shall specify either (i) a percentage in increments of
one percent (1%), which aggregate percentage may not exceed one hundred
percent (100%), or (ii) a dollar amount in whole dollars that is to be
transferred.

 

A Participant may transfer a portion of his
account between the Company Stock Fund and the WSP at such times, and under
such circumstances as are provided by the Plan Administration Committee.

 

An Inactive Participant may continue to make
investment elections, in accordance with Article X, with respect to his
Account.

 

10.6         ESOP Dividend
Election

 

Every Participant in the ESOP may elect whether
vested dividends paid with respect to shares of Company Stock allocated to such
Participant’s Company Stock Fund shall be paid in cash to the Participant or
reinvested in the Company Stock Fund. An election with respect to a particular
dividend shall be effective if its is received by the Plan Administration
Committee, in the manner prescribed therefore, by the Plan Administration
Committee, by the date on which the right to receive such dividend is set for
owners of Company Stock generally. The election procedure shall comply with the
requirements of Code Section 404(k). If a valid election to receive a
dividend in cash is not received from a Participant, the Participant shall be
deemed to have elected to have such dividend reinvested in the Company Stock
Fund. Dividends other than cash dividends (e.g., stock dividends) are not
subject to the election option, and shall instead remain in the Company Stock
Fund. The Plan Administration Committee reserves the right to override a
Participant’s election to the extent necessary to meet other applicable rules (e.g.,
where Participant’s eligible for hardship distributions are required to receive
all currently

 

 

available distributions). If the Participant electing
a distribution of cash dividends cannot be located (for example, if the
Participant’s current address is not known at the time of the distribution),
the dividend shall be held in the investment fund providing a fixed rate of
return. If a Participant receives a total distribution of his or her ESOP
Account prior to the date a dividend attributable to such ESOP Account is paid
to the ESOP, the dividends that are subsequently paid with respect to his or
her ESOP Account shall be distributed to him or her as soon as administratively
practicable after they are received by the ESOP.

 

An election under this Section 10.6 shall remain
in effect until the Participant revokes the election or makes a new election.

 

All unvested dividends paid with respect to the
Company Stock Fund shall be reinvested in the Company Stock Fund.

 

If a Participant elects to have vested dividends paid
in cash, such amounts shall be paid annually (dividends received by the Plan
during a calendar year will be aggregated and paid once a year, in the same
year the dividends are received by the Plan). The amount of quarterly dividend
which would otherwise be payable to the Participant, if any, shall be
reinvested in the Company Stock Fund and the dividend amounts, plus earnings,
shall be paid as soon as possible before year end. Except where a Participant
becomes entitled to receive a distribution under the terms of this Plan, the
dividends shall not be available to the Participant until after year end.

 

The dividends on Company Stock held in the Company
Stock Fund and with respect to which the Participant is allowed to elect to
have such dividends paid in cash or reinvested in the Company Stock Fund shall
not be considered an employer contribution, Employee After-Tax Contribution or
forfeiture and, therefore, shall not constitute:

 

(a)           An annual
addition for purposes of Code section 415(c)(2);

(b)           An
elective deferral for purposes of Code section 402(g);

(c)           An
elective contribution for purposes of Code section 401(c); or

(d)           An
Employee After-Tax Contribution for purposes of Code section 401(m).

 

To the extent permitted by law and the requirements
for continued tax-qualified status of the Plan and the deductibility of cash
distributions of dividends, the Committee may establish rules regarding
the minimum amount of investment in the Company Stock Fund that must be held by
an account for an amount to be considered part of the ESOP. Such rules shall
be applied in a uniform and nondiscriminatory manner, with the purpose of
avoiding the cost and administrative burden of issuing small cash dividend
distribution checks.

 

10.7         Diversification
Requirement

 

Participants may elect at any time to have all or
any portion of their ESOP Accounts transferred to the WSP and invested in
investments other than the Company Stock Fund.

 

The provisions of this Section 10.7 shall be
interpreted and applied in a manner that is consistent with compliance with Code
section 401(a)(28).

 

 

10.8         Right to
Repurchase of Company Stock

 

In the event that Company Stock distributed to a
Participant or beneficiary hereunder is not readily tradable on an established
market, such participant or beneficiary may require the Company to
repurchase such Company Stock as set forth in Code sections 409(a) and
409(h).

 

 

ARTICLE XI

 

THE
TRUST/FINANCING

 

11.1         Purpose of
the Trust

 

A Trust has been created and will be maintained for
the purposes of the Plan, and the assets thereof shall be invested in
accordance with the terms of the Trust Agreement. All contributions will be
paid into the Trust, and all benefits under the Plan will be paid from the
Trust.

 

11.2         Appointment
of Trustee

 

Trustee shall be appointed by the Company to
administer the Trust. The Trustee’s obligations, duties, and responsibilities
shall be governed solely by the terms of the Trust Agreement.

 

11.3         Exclusive
Benefit of Participants

 

Subject to the provisions for the return of
contributions, the Trust will be used and applied only in accordance with the
provisions of the Plan to provide the benefits thereof, and no part of the
corpus or income of the Trust shall be used for or diverted to purposes other
than for the exclusive benefit of the Participants and their Beneficiaries and
with respect to expenses of administration. The Company reserves the right to
recover any amounts held in a suspense account at the termination of the Trust
that cannot be used to reduce Employer Contributions in the year of termination
because of the limitations contained in Section 6.5 of the Plan and Code section 415.

 

11.4         Benefits
Supported Only By the Trust

 

Any person having any claim under the Plan will look
solely to the assets of the Trust for satisfaction.

 

11.5         Rights to
Trust Assets

 

No Employee shall have any right to, or interest in,
any assets of the Trust upon termination of his employment or otherwise, except
as provided from time to time under this Plan, and then only to the extent of
the benefits payable under the Plan to such Employee out of the assets of the
Trust. Except as otherwise may be provided under Title IV of ERISA, all
payments of benefits as provided for in this Plan shall be made solely out of
the assets of the Trust and none of the Fiduciaries shall be liable therefore
in any manner.

 

11.6         Payment of
Expenses

 

Except as provided below, all reasonable costs and expenses
incident to the administration and protection of the Plan and Trusts, including
but not limited to legal, accounting, and Trustee fees, will be paid from the
Trust except to the extent the Employer

 

 

chooses in its sole discretion to pay any such expenses, and until
paid, shall constitute a first and prior claim and lien against the Trust. Such
expenses may be paid out of forfeitures in the Trust that occur each Plan
Year. All such costs and expenses paid from the Trust shall, unless allocable
to the Accounts of particular Participants, be charged against the Accounts of
all Participants on a pro rata basis or in such other reasonable manner as may be
directed by the Employer and disclosed to the Participants. However, any and
all expenses relating to settlor functions that arise from the creation, design
or termination of the Plan must be paid by the Employer and may not be
paid from the Trust. Notwithstanding the foregoing, the Human Resources
Committee may, in its discretion, authorize the Trustee to allocate certain
expenses to particular Participant’s Accounts, including but not limited to
distribution fees, loan fees, QDRO and hardship distribution fees, and
BrokerageLink account fees, but only to the extent permitted by law and related
regulations.

 

11.7         Deductible
Contribution

 

Notwithstanding anything herein to the contrary, any
contribution by the Employer to the Trust Fund is conditioned upon the
deductibility of the contribution by the Employer under the Code and, to the
extent any such deduction is disallowed, the Employer may within one year
following a final determination of the disallowance, demand repayment of such
disallowed contribution and the Trustee shall return such contribution less any
losses attributable thereto to the Employer within one year following the
disallowance.

 

11.8         Voting

 

If the class of
Company Stock held by the ESOP constitutes a “registration-type class of
securities” within the meaning of Code section 409(e)(4), each Participant
or Beneficiary may direct the Trustee with respect to the voting of any
shares of such Company Stock allocated to such Participant or Beneficiary’s
Account with respect to any corporate matter which invokes the voting of shares
with respect to the approval or disapproval of any corporate merger or
consolidation, recapitalization, reclassification, liquidation dissolution,
sale of substantially all of the assets of a trade or business, or such similar
transactions as may be set forth in applicable regulations.

 

 

ARTICLE XII

 

ADMINISTRATION

 

12.1         Committees

 

(a)           The Human
Resources Committee shall appoint a Plan Administration Committee and a Plan
Investment Committee. Each Committee will consist of three or more individuals.
The Human Resources Committee will designate one member of each Committee to
serve as chairman. Any member of a Committee may resign or be removed by
the chairman of the Human Resources Committee. The Human Resources Committee
shall notify each member of a Committee of the appointment, removal or
resignation of a Committee member.

 

(b)           Each
Committee may select a secretary to keep its records or to assist it in
the performance of any act, duty or obligation of the Committee. The secretary
may, but need not, be a member of the Committee.

 

(c)           The Plan
Administration Committee and the Plan Investment Committee shall each be a
named fiduciary of the Plan pursuant to ERISA. The Plan Administration
Committee shall serve as Plan Administrator. The Plan Investment Committee
shall be responsible for carrying out the investment policy and such other
duties as described in Section 12.2(c).

 

12.2         Administration

 

(a)           The
Plan Administration Committee will have complete control of the administration
of the Plan, subject to the provisions hereof, with all powers necessary to
enable it to carry out its duties properly in that respect. Not in limitation,
but in amplification of the foregoing, it will have the power and discretion to
construe the terms of the Plan and to determine all questions that may arise
hereunder, including all questions relating to the eligibility of Employees to
participate in the Plan and the amount of benefit to which any Participant or
Beneficiary may become entitled. Its decisions upon all matters within the
scope of its authority will be final. No person shall be entitled to any
benefits under this Plan except to the extent the Plan Administration Committee
determines in its discretion they are entitled to benefits.

 

(b)           The
Plan Administration Committee shall administer the Plan in a nondiscriminatory
manner for the exclusive benefit of Participants and their Beneficiaries. The
persons or entities to whom the Plan Administration Committee delegates any of
its discretion, authority, duties and responsibilities, shall have the
discretion in the performance of – and shall perform – all such duties as
are necessary to supervise the administration of the Plan and to control its
operation in accordance with the terms thereof, including, but not limited to,
the following:

 

(i)            Make and enforce such rules and
regulations as it shall deem necessary or proper for the efficient
administration of the Plan;

 

 

(ii)           Interpret the provisions of the Plan and
resolve any question arising under the Plan, or in connection with the
administration or operation thereof;

 

(iii)          Make all determinations affecting the
eligibility of any Employee to be or become a Participant;

 

(iv)          Determine eligibility for and amount of
retirement benefits for any Participant;

 

(v)           Authorize and direct the Trustee with
respect to all disbursements of benefits under the Plan;

 

(vi)          Employ and engage such persons, counsel
and agents and to obtain such administrative, clerical, medical, legal, audit
and actuarial services as it may deem necessary in carrying out the
provisions of the Plan;

 

(vii)         Delegate and allocate specific
responsibilities, obligations and duties imposed by the Plan to one or more
employees, officers or such other persons as the Plan Administrator deems
appropriate; and

 

(viii)        Amend the Plan for changes in the laws or
regulations related to the Plan, to clarify any provisions in the Plan or
correct any errors in the document, to simply administration or for
administrative convenience, and for any other reason provided that with respect
to an amendment “for any other reason”, the delegate reasonably believes that
the amendment will not have the impact of significantly increasing the cost or
potential liability exposure of the Plan to the Employer. The authority set
forth in this section 12.2(b)(viii) may be delegated only to a
senior executive of the Company.

 

Except
as otherwise indicated, the Plan Administration Committee may delegate any
of these powers and duties to employees of the Company or committees consisting
of employees.

 

(c)           Investment
Authority

 

The Plan Investment Committee shall have the following powers and duties with respect to the
investment of the Trust:

 

(i)            To direct the Trustee in the investment,
reinvestment, and disposition of the Trust, including the investment of up to
100% of the Trust in “qualifying employer securities” (as defined in section 407(d)(5) of
ERISA) without regard to the limitations of ERISA sections 407(a)(2), (3), or
(4), as provided in the Trust Agreement;

 

(ii)           To review, select or remove, and monitor
investment funds and fund managers;

 

 

(iii)          To receive and review reports of the
financial condition and of the receipts and disbursements of the Trust from the
Trustee;

 

(iv)          To furnish the Employer with information
which the Employer may require for tax or other purposes;

 

(v)           To engage the services of or remove an
Investment Manager or Managers (as defined in ERISA section 3(38)), each
of whom shall have full power and authority to manage, acquire or dispose (or
direct the Trustee with respect to acquisition or disposition) of any Plan
asset under its control; and

 

(vi)          To interpret and construe the Plan with
respect to the investment, reinvestment, and disposition of Plan assets.

 

12.3         Indemnity

 

The Company shall indemnify and hold harmless the
Committees, and their members, and each of them, from and against any and all
loss resulting from liability to which the Committee, or its members, may be
subjected by reason of any act or conduct (except willful or reckless
misconduct), in their official capacities in the administration of the Plan or
Trust or both, including all expenses reasonably incurred in their defense, in
case the Company fails to provide such defense.

 

12.4         Bonding and
Insurance

 

To the extent required by law, every member, every
fiduciary of the Plan and every person handling Plan funds shall be bonded. The
Plan Administration Committee shall take such steps as are necessary to assure
compliance with applicable bonding requirements. The Plan Administration
Committee may apply for and obtain fiduciary liability insurance insuring
the Plan against damages by reason of breach of fiduciary responsibility at the
Plan’s expense and insuring each fiduciary against liability to the extent
permissible by law.

 

12.5         Fiduciaries

 

(a)           Limitation
of Liability

 

To the extent permitted by law, no Participant shall have any claim
against the Company, Employer, any Committee, Trustee or any other fiduciary or
service provider to the Plan, or against the directors, officers, members,
agents or representatives of any of them (collectively “parties in interest”),
for any benefits under the Plan, and such benefits shall be payable solely from
the Trust Fund; nor shall any of the parties in interest incur any liability to
any person for any action taken or suffered or omitted to be taken by them
under the Plan in good faith. The Company intends that neither the Plan nor any
party in interest shall be liable for any loss due to a Participant exercising
control over the investment of assets in his Account.

 

 

(b)           Indemnification

 

(i)            Parties Protected by Indemnification. In order to facilitate the recruitment
of competent individuals as fiduciaries and/or service providers to the Plan,
the Employer agrees to provide the indemnification as described herein. This
provision shall apply to Employees who are considered Plan fiduciaries or
service providers to the Plan. Notwithstanding the preceding, this provision
shall not apply and indemnification will not be provided for any third party
corporation, partnership or other business entity that may be appointed as
a fiduciary or service provider to the Plan, or to any corporate Trustee or
Investment Manager appointed as a Plan fiduciary.

 

(ii)           Scope of Indemnification. The Company agrees to indemnify an
Employee fiduciary as described above for all acts taken in good faith in
carrying out his responsibilities under the terms of this Plan or other
responsibilities imposed upon such fiduciary by ERISA. This indemnification for
all acts is intentionally broad but shall not provide indemnification for gross
negligence, willful misconduct, embezzlement or diversion of Plan assets for
the benefit of the Employee fiduciary. The Company agrees to indemnify
Employees and other individuals as described in the previous paragraph herein
for all expenses of defending an action by a Participant, Beneficiary or
government entity, including all legal fees for counsel selected with the
consent of the Company and the Employer and other costs of such defense. The
Company and the Employer will also reimburse an Employee fiduciary for any monetary
recovery in any court or arbitration proceeding. In addition, if the claim is
settled out of court with the concurrence of the Company and the Employer, the
Company and the Employer will indemnify an Employee fiduciary for any monetary
liability under said settlement. The Company and the Employer shall have the
right, but not the obligation, to conduct the defense of such persons in any
proceeding to which this Section applies. The Company may satisfy its
obligations under this Section in whole or in part through the
purchase of a policy or policies of insurance providing equivalent protection.

 

(c)           Forfeitures
in Case of Breach of Fiduciary Duty

 

In the event that there is a judgment, order or decree issued against a
Participant by a Court, or a settlement agreement entered into with a
Participant, where the subject of the judgment, order, decree or settlement
consists of a proven or admitted violation of fiduciary duty against the Plan,
the Plan Administrator shall have the discretion to direct a forfeiture of some
or all of the balance of the Accounts of the Participant, in an amount up to
but not greater than the amount stated in such legal instrument, for purposes
of making a recovery on behalf of the Plan and Trust Fund.

 

 

12.6         Claims and
Appeals Procedures

 

(a)           The claims and appeals procedures under the Plan
shall be administered in accordance with guidelines which may be revised
in the discretion of the Plan Administration Committee from time to time;
provided, however, that any such guidelines shall be substantially in
accordance with the claims and appeals procedures described herein (as this
Plan may be amended from time to time).

 

(b)           A “claim” (as that term is used in this Section)
occurs when a Participant or Beneficiary (“Claimant”) either (i) makes an
application for a benefit under the Plan, or (ii) disputes a determination
by the Plan Administration Committee (or a person authorized by the Plan
Administration Committee) of the amount of any benefit or the resolution of any
matter affecting a benefit under the Plan. A claim or appeal may be filed
by an authorized representative of the Claimant.

 

(c)           Notwithstanding
any other provision of the Plan, a Claimant shall not have a right to submit a
dispute with respect to a benefit under this Plan more than three years after
the date the individual has knowledge of all material facts that are the
subject of the dispute.

 

(d)           Claims for benefits under the Plan shall be filed
with the Company benefits office on forms provided for that purpose. Each claim
will be decided by one or more persons who staff the benefits office (the
applicable person(s) in the benefits office who are authorized by the Plan
Administration Committee are referred to in this Section as the “Claims
Administrator”). The Claims Administrator will give the Claimant notice of the
disposition of a claim within 90 days after the claim has been filed, unless
special circumstances require an extension of time for processing, in which
case such notice of disposition shall be given within 180 days after the
application has been filed.

 

(e)           If a claim is denied in whole or in part, the
Claims Administrator shall give the Claimant a explanation stating the reasons
for the denial, citing pertinent provisions of the Plan, the manner in which
the claim denial can be appealed to the Appeals Committee and, in the event of
an appeal, the further information which the Claimant may submit or
request in connection with the appeal and the Claimant’s rights to pursue other
remedies under ERISA.

 

(f)            A Claimant wishing a review of a denied claim may submit
an appeal in a manner acceptable to the Appeals Committee, the membership of
which committee shall be determined by the Executive Vice President of Human
Resources. The deadline for submitting any such appeal shall be 60 days after
receipt of the notification of the denial of the claim, as described above. A
Claimant’s failure to submit an appeal within this 60-day period shall result
in the Claimant permanently forfeiting his or her right to appealing the
decision to the Appeals Committee or to a court for further review. Within 60
days following the receipt of the notice of appeal, the Appeals Committee will
issue the Claimant either (i) a notice of the decision of the reviewer, or
(ii) if special circumstances require an

 

 

extension of time for review, a notice of a 60-day
extension of the review period. In the latter case, the notice of the decision
of the reviewer shall be delivered to the Claimant by the Appeals Committee
within 120 days after the application has been filed. Determinations of the
Appeals Committee shall be made by majority vote. Members of the Appeals
Committee who vote on the decision on appeal shall not include any person who
decided the initial claim, but a person who decided the initial claim may participate
in the discussion of the appeal with the voting members of the Appeals
Committee.

 

(g)           The Plan hereby delegates full and complete
discretion to the Claims Administrator and the Appeals Committee:

 

(i)            To make findings of
fact pertaining to a claim or appeal;

 

(ii)           To interpret the
Plan as applied to the facts; and

 

(iii)          To decide all
aspects of the claim or appeal.

 

The decision by the Appeals Committee shall be
the final and conclusive administrative review proceeding under the Plan. No
person shall be entitled to any benefits under this Plan as a result of the
review of a denied claim except to the extent the Appeals Committee determines
in its discretion that such person is entitled to such benefits.

 

(h)           Effective
January 1, 2002, with respect to any claim submitted on or after that date
that involves an exercise of discretion by the Claims Administrator and/or the
Appeals Committee to determine whether or not the Claimant is “Disabled”, the
Plan Administration Committee shall maintain procedures for such claims and/or
appeals that comply with Department of Labor regulations applicable to
disability claims. Such procedures shall be consistent with such regulatory
requirements for de novo review, the consultation requirement for medical
judgments, limitations on the number of levels of appeal for a denied claim, the special time limits for deciding
disability claims, and the disclosure requirements in connection with
extensions of time.

 

12.7         Authority of
Officers

 

Any act which the Human Resources Committee is
permitted or required to perform under the terms of the Plan may be
performed by an officer of the Company duly authorized by the Human Resources
Committee.

 

 

ARTICLE XIII

 

AMENDMENT AND
TERMINATION

 

13.1         Amendment -
General

 

It is the Company’s intention that the Plan will
continue indefinitely. However, the Company, by action of either the Board of
Directors or the Human Resources Committee of the Board of Directors, may amend
the Plan at any time, including any remedial retroactive changes (within the
specified period of time as may be determined pursuant to Internal Revenue
Service regulations from time to time) to comply with the requirements of any
law or regulation issued by any governmental agency to which the Company is
subject. The Board of Directors and the Human Resources Committee may delegate
to the Plan Administration Committee, Plan Investment Committee, or a senior
executive of the Company authority to amend the Plan with respect to the
following:

 

(a)           Administration
of the Plan;

 

(b)           Amendments
necessary to comply with requirements of any law or regulation, or to retain
the tax-qualified status of the Plan; and

 

(c)           Amendments
that do not materially affect the financial obligations of the Company or any
Employer provided the delegate reasonably believes that the amendment will not
have the impact of significantly increasing the cost or potential liability
exposure of the Plan to the Employer.

 

No amendment made to this Plan pursuant to this Article XIII
shall decrease any Participant’s Account balance (determined in accordance with
Code section 411(d)(6)) as of the date of such amendment.

 

Any amendment to (including a termination of) the Plan
shall be made in writing. Upon the execution of the amendment by a duly
authorized officer or individual, the Plan shall be deemed amended as of the
date provided in the instrument of amendment. If no effective date is
specified, the amendment shall be effective as of the date the instrument is
executed.

 

13.2         Amendment -
Vesting Schedule

 

The Company reserves the right to amend the vesting schedule at
any time; however, no such amendment shall reduce the nonforfeitable percentage
of a Participant’s Account determined as of the date immediately preceding the
later of the date on which such amendment is adopted or effective, to a
percentage that is less than the Participant’s nonforfeitable percentage as
computed under the Plan without regard to the amendment.

 

In the event the Company amends the vesting schedule,
each Participant having at least three years of Service shall have his
nonforfeitable Account balance computed under the Plan in accordance with the
pre-amendment or post-amendment vesting schedule, whichever provides the more
favorable result for the Participant as of the Benefit Commencement Date. For

 

 

purposes of this Section 12.2, an amendment to the vesting schedule includes
any Plan amendment that directly or indirectly affects the nonforfeitable
percentage of a Participant’s right to his Account balance.

 

13.3         Amendment -
Consolidation or Merger. In the event the Plan’s assets and liabilities are
merged into, transferred to or otherwise consolidated with any other retirement
plan, then such transfer or merger must be accomplished so as to ensure that each
Participant would (if the other retirement plan then terminated) receive a
benefit immediately after the merger, transfer or consolidation, which is equal
to or greater than the benefit the Participant would have been entitled to
receive immediately before the merger, transfer or consolidation (as if the
Plan had then terminated). This provision shall not be construed as limiting
the powers of the Company to appoint a successor Trustee.

 

13.4         Termination
of the Plan

 

(a)           The
Company shall have the right, without prior notice and without cause, to
terminate the Plan at any time.

 

13.5         Amendment
Procedures

 

The termination of the Plan shall not cause or permit
any part of the Trust Fund to be diverted to purposes other than for the
exclusive benefit of the Participants and payment of reasonable Plan expenses,
or cause or permit any portion of the Trust Fund to revert to or become the
property of the Company at any time prior to the satisfaction of all
liabilities with respect to the Plan and Participants.

 

Upon termination of this Plan, the Plan Administration
Committee shall continue to act for the purpose of complying with the preceding
paragraph and shall have all power necessary or convenient to the winding up
and dissolution of the Plan as herein provided. While so acting, the Plan
Administration Committee shall be in the same status and position with respect
to other persons as if the Plan remained in existence.

 

13.6         Plan
Qualification

 

Any modification or amendment of the Plan may be
made retroactive, as necessary or appropriate, to establish and maintain a “qualified
plan” pursuant to Code section 401(a), and ERISA and regulations
thereunder and exempt status of the Trust Fund under Code section 501.

 

13.7         Allocation
of the Trust Fund on Termination of Plan

 

In the event of a complete or partial termination of
the Plan, or upon complete discontinuance of contributions under the Plan, with
respect to all Participants or a specified group or groups of Participants, the
Trustee shall allocate and segregate a proportionate interest in the Trust Fund
for the benefit of affected Participants.

 

All Participant Accounts shall be one hundred percent
(100%) vested and nonforfeitable. The Plan Administration Committee shall
direct the Trustee to allocate the assets of the Trust Fund to those affected
Participants.

 

 

ARTICLE XIV

 

EMPLOYER
PARTICIPATION/RELATED EMPLOYERS

 

14.1         Adoption by
Employer

 

Any entity which is a Related Employer shall become a
Participating Employer effective as of the date on which such entity becomes a
Related Employer, unless such Related Employer:

 

(a)           is
specifically precluded from sponsoring the Plan by the Board of Directors or
the Human Resources Committee; or

 

(b)           continues
to sponsor a separate cash or deferred arrangement for its employees.

 

14.2         Effective
Plan Provisions

 

A Related Employer that adopts the Plan shall be bound
by the provisions of the Plan in effect at the time of the adoption and as
subsequently in effect because of any amendment to the Plan.

 

14.3         Withdrawal
by Employer

 

Any Employer by action of its Board of Directors and
notice to the Company and the Trustees, may withdraw from the Plan and
Trust at any time without affecting other Employers not withdrawing, by
complying with the provisions of the Plan. Termination of the Plan as it
relates to an Employer upon its withdrawal shall be governed by the provisions
of Article XIII. A withdrawing Employer may arrange for the
continuation by itself or its successor of this Plan and Trust in separate form for
its own Employees or it may arrange for continuation of the Plan and Trust
by merger with an existing plan and trust qualified under Code sections 401(a) and
501(a) and transfer of such portion of the Trust assets as the Committee
determines are allocable to the Employer and its employees who are
Participants.

 

14.4         Termination
of Participation by Participating Employer

 

The Company may in its absolute discretion, by
resolution of the Board of Directors, terminate an Employer’s participation at
any time when (i) the Employer ceases to be a Related Employer, (ii) in
the Company’s judgment such Employer fails or refuses to discharge its
obligations under the Plan following such prior notice and opportunity to cure
as may be appropriate under the circumstances, or (iii) in the
Company’s judgment, such Employer should not be allowed to continue to
participate.

 

 

ARTICLE XV

 

MISCELLANEOUS PROVISIONS

 

15.1         Notices
and Communications

 

All applications,
notices, designations, elections, investment directions, statements and other
communications from and to Participants shall be on forms prescribed or
approved by the Committee.  A notice or
communication to a Participant shall be deemed to have been delivered and
received by the Participant or Beneficiary at his last address of record with
the Committee.  Notwithstanding the
foregoing, to the extent permitted by applicable law, and not inconsistent with
the terms of the Plan, the Plan Administration Committee may make telephonic or
other electronic communication or filing methods available for certain
elections, designations, investment directions or applications for benefits by
Participants and for certain notices, statements or other communications to
Participants.  Any person entitled to
notice under the Plan may waive the notice.

 

15.2         Personal
Data to Plan Administration Committee

 

Each Participant
and Beneficiary must furnish to the Committee evidence, data, or information,
as the Committee considers necessary or desirable for the purpose of
administering the Plan.

 

(a)           Address
for Notification

 

Each
Participant or Beneficiary shall file with the Committee his address, and each
subsequent change of such address.  Any
payment or distribution hereunder, and any communication addressed to a
Participant or Beneficiary, at the last address filed with the Committee, or if
no address has been filed, then the last address indicated on the records of
the Employer shall be deemed to have been delivered to the Participant or his
Beneficiary on the date that such distribu­tion or communication is deposited
in the United States mail, postage prepaid.

 

(b)           Place
of Payment and Proof of Continued Eligibility

 

Any
check representing payment hereunder and any communication addressed to an
Employee, a former Employee, a retired Employee, or Beneficiary at his last
address filed with the Committee shall be deemed to have been delivered to such
person on the date on which such check or communication is deposited in the
United States mail.  If the Committee,
for any reason, is in doubt as to whether benefit payments are being received
by the person entitled thereto, it shall, by registered mail addressed to the
person concerned, at his address last known to the Committee, notify such
person that all unmailed and future retirement income payments shall be
henceforth withheld until he provides the Committee with evidence of his
continued life and his proper mailing address.

 

 

(c)           Employer
Records

 

Records
of an Employer as to an Employee’s or Participant’s period of employment,
termination of employment and the reason therefore, leaves of absence,
reemployment, and Compensation will be conclusive on all persons, unless
determined to be incorrect.

 

15.3         Evidence

 

Evidence required
of anyone under the Plan may be by certificate, affidavit, document, or other
information that the person acting on it considers pertinent and reliable, and
signed, made or presented by the proper party or parties.

 

15.4         Information
Available

 

Any Participant in
the Plan or any Beneficiary may examine copies of the Plan description, latest
annual report, this Plan and Trust, contract, or any other instrument under
which the Plan was established or is operated. 
The Committee will maintain all of the items listed in this Section in
its office, or in such other place or places as it may designate from time to
time in order to comply with the regulations issued under ERISA, for
examination during reasonable business hours. 
Upon the request of a Participant or Beneficiary the Committee shall
furnish him with a copy of any item listed in this Section.  The Committee may make a reasonable charge to
the requesting person for the copy so furnished.  A beneficiary’s right to (and the Committees’,
or a Trustee’s duty to provide to the Beneficiary) information or data
concerning the Plan shall not arise until he first becomes entitled to receive
a benefit under the Plan.

 

15.5         Alienation

 

Except as provided
under a Qualified Domestic Relations Order, no benefit payable under the Plan
shall be subject in any manner to alienation, sale, transfer, assignment,
pledge, encumbrance, charge, garnishment, execution, or levy of any kind, either
voluntary or involuntary prior to actually being received by the person
entitled to the benefit under the terms of the Plan.  The Trust shall not in any manner be liable
for, or subject to, the debts, contracts, liabilities, engagements, or torts of
any person entitled to benefits hereunder, except to the extent that under a
Qualified Domestic Relations Order the Trustee is required to pay a portion of
a Participant’s Accounts to an Alternate Payee. 
In the event an Employer or the Trustee receives notice of an adverse
claim to a benefit distributable to a Participant, Inactive Participant or
Beneficiary, the Trustee may suspend payment(s) of such benefit until such
matter is resolved to the satisfaction of the Trustee.

 

15.6         Execution
of Receipts and Releases

 

Any payment to any
Participant, or to his legal representative or Beneficiary, in accordance with
the provisions of the Plan, shall to the extent thereof be in full satisfaction
of all claims hereunder against the Plan and Trust.  The Plan Administration Committee may require
such Participant, legal representative, or Beneficiary, as a condition
precedent to such payment, to execute a receipt and release therefore in such
form as it shall determine.

 

 

15.7         Facility
of Payment

 

In the event any
benefit under this Plan shall be payable to a person who is under legal
disability or is in any way incapacitated so as to be unable to manage his
financial affairs, the Committee may direct payment of such benefit to a duly
appointed guardian or other legal representative of such person or in the
absence of a guardian or legal representative, to a custodian for such person
under a Uniform Gift to Minors Act or to any relative of such person by blood
or marriage, for such person’s benefit. 
Any payment made in good faith pursuant to this provision shall fully
discharge the Company and the Plan of any liability to the extent of such
payment.

 

15.8         Correction
of Errors

 

Any Employer
contribution to the Trust Fund made under a mistake of fact (or investment
proceeds of such contribution if a lesser amount) shall be returned to the
Employer within one year after payment of the contribution.  In the event an incorrect amount is paid to a
Participant or Beneficiary, any remaining payments may be adjusted to correct
the error.  The Committee may take such
other action it deems necessary and equitable to correct any such error.  Notwithstanding the foregoing, the Plan
Administrator need not correct errors that involve a deminimis amount.

 

15.9         Missing
Persons

 

In the event a
distribution is required to commence on a Required Beginning Date under
Section 8.11 and the Participant or Beneficiary cannot be located, the
Participant’s Account shall be forfeited on the last day of the Plan Year
following the Plan Year in which distribution was supposed to commence.  Such forfeiture shall be used to reduce
Employer profit sharing contributions.

 

If the affected
Participant or Beneficiary later contacts the Committee, his Account shall be
reinstated and distributed as soon as practical.  The Committee shall reinstate the amount
forfeited by directing a special Employer contribution to be made in an amount
equal to such amount and allocating it to the affected Participant’s or
Beneficiary’s Account.  Such
reinstatement shall not be considered an annual addition for purposes of the
limitations on contributions pursuant to Code section 415.

 

Prior to
forfeiting any Account, the Committee shall attempt to contact the Participant
or Beneficiary by return receipt mail at his last known address according to
the Employer’s records, and by the letter forwarding services offered through
the Internal Revenue Service, the Social Security Administration, or such other
means as the Committee deems appropriate.

 

Alternatively, the
Committee may transfer such amounts to an IRA set up by the Committee, unless
the Participant directs otherwise.  The
Participant will be notified that the Participant may transfer the distribution
to another IRA.  Any default rollover
shall be made in accordance with any final regulations issued by the Department
of Labor.

 

 

15.10       Back
Pay Awards

 

The provisions of
this Section shall apply only to an Employee or former Employee who becomes
entitled to back pay by an award or agreement of an Employer without regard to
mitigation of damages.  If a person to
whom this Section applies was or would have become an Eligible Employee after
such back pay award or agreement has been effected, and if any such person who
had not previously elected to make Employee Elective Deferrals pursuant to
Section 3.1 shall within 30 days of the date he receives notice of the
provisions of this Section make an election to make Employee Elective Deferrals
in accordance with such Section 3.1 (retroactive to any Entry Date as of which
he was or has become eligible to do so), then such Participant may elect that
any Employee Elective Deferrals not previously made on his behalf but which,
after application of the foregoing provisions of this Section, would have been
made under the provisions of Article III, shall be made out of the proceeds of
such back pay award or agreement.

 

In addition, if
any such Employee or former Employee would have been eligible to participate in
the allocation of Employer Contributions under the provisions of Article V for
any prior Plan Year after such back pay award or agreement has been effected,
his Employer shall make a Employer Contribution equal to the amount of the
Employer Contribution which would have been allocated to such Participant under
the provisions of Article V as in effect during each such Plan Year.  The amounts of such additional contributions
shall be credited to the Account of such Participant.  Any additional contributions made by such
Participant and by an Employer pursuant to this Section shall be made in
accordance with, and subject to the limitations of the applicable provisions of
Articles IV, V, and VI.

 

15.11       Exclusive
Benefit Rule

 

Anything in this
Plan to the contrary notwithstanding, it shall be impossible at any time for
contributions or any part of the Trust Fund to revert to the Employer or to be
used for or diverted to any purpose other then the exclusive benefit of
Participants, their spouses and Beneficiaries (which purpose include payment of
reasonable expenses incurred to maintain, invest, value and administer the
Trust Fund and to maintain and administer the Plan), except that:

 

(a)           The
Plan is adopted contingent upon a timely request for and receiving a favorable
determination from the Internal Revenue Service to the effect that the Plan constitutes
a qualified profit sharing plan meeting the requirements of Code section 401(a)
with respect to an Employer, and if, upon initial request, the Internal Revenue
Service denies the Employer a determination to that effect, the Plan shall be
void and any assets in the Trust Fund at the time of such unfavorable
determination that had been contributed by the Employer shall be returned to
such Employer.

 

(b)           If
a contribution or portion thereof is made to the Trust Fund by an Employer
under a mistake of fact, then, upon request to the Retirement Committee, such
contributions or portion thereof shall be returned to Employer within one year
of the date of such contribution.

 

 

(c)           If
any part of any Employer’s contribution under the Plan is disallowed as a
deduction for federal income tax purposes, then to the extent such contribution
is disallowed, the contribution and any increment thereon shall be returned to
the Employer within one year after the disallowance.

 

15.12       Qualified
Domestic Relations Orders

 

(a)           Notwithstanding
any Plan provisions to the contrary, benefits under the Plan may be paid to
someone other than

the Participant or Beneficiary pursuant to a Qualified Domestic Relations
Order, in accordance with Code

section 414(p).  Payments to an alternate
payee pursuant to a Qualified Domestic Relations Order may be made in any form
otherwise permitted under the Plan.

 

(b)           The
Committee shall establish reasonable procedures to determine the qualified
status of a domestic relations order. Upon receiving a domestic relations
order, the Committee shall promptly notify the Participant and any Alternate
Payee named in the order, of the receipt of the order and the Plan’s procedures
for determining the qualified status of the order. Within a reasonable period
of time after receiving the domestic relations order, the Committee must
determine the qualified status of the order and must notify the Participant and
each alternate payee of its determination. The Committee shall provide such
notice by mailing it to the individual’s address specified in the domestic
relationship order, or in a manner consistent with the Department of Labor
regulations.

 

(c)           Amounts
payable to an Alternate Payee pursuant to a Qualified Domestic Relations Order
may be distributed in a single Lump Sum immediately upon qualification of the
Domestic Relations Order regardless of whether the Participant has attained
his  “earliest retirement age,” as that
term is defined in Code section 414(p)(4)(B).

 

(d)           With
respect to Qualified Domestic Relations Orders, the Committee may adopt such
rules and procedures as it deems appropriate, in its sole discretion.

 

15.13       Mistake
of Fact

 

If the amount of
contribution made to the Plan by the Employer for any Plan Year is in excess of
the amount required under Article V, and such excess payment is due to mistake
of fact, the Employer shall have the right to recover such excess contribution
within one year after the date the contribution is made to the Trustee.  The return of a contribution shall be permitted
hereunder only if the amount so returned (i) is the excess of the amount
actually contributed over the amount which would have otherwise been
contributed, (ii) does not include the earnings attributable to such
contribution, and (iii) is reduced by any losses attributable to such
contribution.

 

15.14       No
Guarantee of Interests

 

The Trustee, the
Plan Administration Committee, the Plan Investment Committee, and the Company
do not guarantee the Trust from loss or depreciation.  The Company does not

 

 

guarantee the payment of any
money that may be or becomes due to any person from the Trust.  The liability of the Committee and the
Trustee to make any payment from the Trust is limited to the then available
assets of the Trust.

 

15.15       Interpretations
and Adjustments

 

To the extent
permitted by law, an interpretation of the Plan and a decision on any matter
within a Fiduciary’s discretion made in good faith is binding on all
persons.  A misstatement or other mistake
of fact shall be corrected when it becomes known and the person responsible
shall make such adjustment on account thereof as he considers equitable and
practicable.

 

15.16       Uniform
Rules

 

In the
administration of the Plan, uniform rules will be applied to all Participants
similarly situated.

15.17       Severability

 

In the event any
provision of the Plan shall be held to be illegal or invalid for any reason,
the illegality or invalidity shall not affect the remaining provisions of the
Plan, but shall be fully severable and the Plan shall be construed and enforced
as if the illegal or invalid provision had never been included herein.

 

15.18       Successors

 

The Plan shall be
binding upon all persons entitled to benefits under the Plan, their respective
heirs and legal representatives, upon each Employer, its successors and
assigns, and upon the Trustee, the Plan Administration Committee, and their
successors.

 

15.19       Headings

 

The titles and
headings of Articles and Sections are included for convenience of reference
only and are not to be considered in construction of the provisions hereof.

 

 

15.20       Governing
Law

 

All questions
arising with respect to the provisions of this Agreement shall be determined by
application of the laws of the State of Washington except to the extent
Washington law is preempted by federal law.

 

IN WITNESS
WHEREOF, Washington Mutual, Inc. has caused this instrument to be executed on
this 27th day of December, 2005 but to be effective as of the dates first
written above.

 

 

	
   

  	
  WASHINGTON
  MUTUAL INC.

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Daryl D.
  David

  	
   

  
	
   

  	
   

  	
  Daryl David

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Its:
  Executive Vice President – Human Resources

  

 

 

APPENDIX A - ACQUIRED COMPANY PROVISIONS

 

To the extent a special provisions set out in this Appendix A is
inconsistent with any of the prior general provisions of the Plan, the special
provisions of this Appendix A will control:

 

 

TABLE OF CONTENTS FOR APPENDIX A

 

	
  ACQUIRED COMPANY

  	
   

  	
  ACQUISITION

  DATE

  	
   

  	
  PAGE (in

  Appendix A)

  
	
  Somers,
  Grove & Co., Inc.

  	
   

  	
  01/01/87

  	
   

  	
  4

  
	
  Participating
  Employers listed in Attachment A of the Plan as restated effective January 1,
  1987 (i.e. Washington Mutual Financial, Inc, Murphy Favre, Inc., Composite
  Research & Management Co., Murphy Favre Properties, Inc., Washington
  Mutual Insurance Services, Inc., E.J. Life Insurance Co., and Benefit Service
  Corporation

  	
   

  	
  01/01/87

  	
   

  	
  5

  
	
  IPC Pension
  Services Company, Inc. of Alaska

  	
   

  	
  07/01/88

  	
   

  	
  6

  
	
  Shoreline
  Federal Savings Bank

  	
   

  	
  07/01/88

  	
   

  	
  7

  
	
  Columbia
  Federal Savings Bank

  	
   

  	
  07/01/88

  	
   

  	
  8

  
	
  Mutual
  Travel, Inc.

  	
   

  	
  12/31/88

  	
   

  	
  9

  
	
  Old Stone
  Bank

  	
   

  	
  05/31/90

  	
   

  	
  10

  
	
  Benefit
  Service Corporation (Tacoma)

  	
   

  	
  01/01/91

  	
   

  	
  11

  
	
  Frontier
  Savings and Loan

  	
   

  	
  07/01/91

  	
   

  	
  12

  
	
  Williamsburg
  Federal Savings Bank

  	
   

  	
  10/01/91

  	
   

  	
  13

  
	
  Vancouver
  Federal Savings and Loan

  	
   

  	
  10/01/91

  	
   

  	
  14

  
	
  Sound
  Savings and Loan

  	
   

  	
  01/01/92

  	
   

  	
  15

  
	
  Great
  Northwest Bank

  	
   

  	
  04/01/92

  	
   

  	
  16

  
	
  Crossland
  Federal Savings Bank

  	
   

  	
  01/01/93

  	
   

  	
  17

  
	
  World
  Savings and Loan

  	
   

  	
  04/01/93

  	
   

  	
  18

  
	
  Pioneer
  Savings Bank

  	
   

  	
  04/01/93

  	
   

  	
  19

  
	
  Pacific
  First Financial Corporation, Pacific First Bank, a Federal Savings Bank or
  their affiliates (“Pacific First”)

  	
   

  	
  05/01/93

  	
   

  	
  20

  
	
  Great
  Western Bank

  	
   

  	
  05/01/93

  	
   

  	
  21

  
	
  Tri-City
  Cosmopolitan Travel Services, Inc.

  	
   

  	
  01/01/94

  	
   

  	
  22

  
	
  Global
  Express Travel

  	
   

  	
  01/01/94

  	
   

  	
  23

  
	
  Summit
  Savings and Loan

  	
   

  	
  01/01/95

  	
   

  	
  24

  
	
  Olympus
  Savings Bank Olympus Capital Corporation

  	
   

  	
  07/01/95

  	
   

  	
  25

  
	
  Enterprise
  Bank

  	
   

  	
  01/01/96

  	
   

  	
  26

  
	
  Western Bank

  	
   

  	
  04/01/96

  	
   

  	
  27

  
	
  Utah Federal
  Savings Bank

  	
   

  	
  04/01/97

  	
   

  	
  28

  
	
  American
  Savings Bank, FA

  	
   

  	
  04/01/97

  	
   

  	
  29

  
	
  United
  Western Financial Group, Inc.

  	
   

  	
  04/01/97

  	
   

  	
  30

  
	
  Great
  Western Financial Corporation and Great Western Financial Services Corp.

  	
   

  	
  01/01/98

  	
   

  	
  31

  
	
  H. F.
  Ahmanson & Company

  	
   

  	
  07/01/99

  	
   

  	
  32

  

 

 

	
  Peoples
  Security Finance Company, Inc. (“Peoples”)

  	
   

  	
  01/01/00

  	
   

  	
  33

  
	
  Alta
  Residential Mortgage, Inc. (“Alta”)

  	
   

  	
  04/01/00

  	
   

  	
  34

  
	
  Long Beach
  Mortgage Company

  	
   

  	
  07/01/00

  	
   

  	
  35

  
	
  PNC Mortgage
  Corp. of America and a subsidiary of PNC Bank, National Association (“PNC”)

  	
   

  	
  02/01/01

  	
   

  	
  36

  
	
  Bank United
  Corp.

  	
   

  	
  05/01/01

  	
   

  	
  37

  
	
  Fleet
  Mortgage Corp.

  	
   

  	
  06/01/01

  	
   

  	
  38

  
	
  Dime
  Bancorp, Inc.

  	
   

  	
  04/01/02

  	
   

  	
  39

  
	
  HomeSide
  Lending, Inc.

  	
   

  	
  07/01/02

  	
   

  	
  40

  
	
  Providian
  Financial Corporation and Providian National Bank

  	
   

  	
  10/1/05

  	
   

  	
  41

  

 

 

APPENDIX A

 

Provisions Related to Employees of Acquired Companies

 

This Appendix
contains provisions that apply to certain former employees of companies
acquired by Washington Mutual, Inc. 
These provisions relate to entry dates, service credit, service for
eligibility, participation and vesting, and participant loans.  To the extent any provisions in this Appendix
A are inconsistent with provisions in other sections of the Plan, the
provisions in this Appendix will prevail. 
This Appendix may be amended from time to time by the Plan
Administration Committee in connection with the acquisition of another company,
whether by asset or stock purchase.

 

 

Appendix A

 

Company: Somers, Grove & Co., Inc.

 

	
  Service, In
  General:

  	
   

  	
  Each
  Eligible Employee who (i) was an employee with Somers, Grove & Co., Inc.
  on December 31, 1986 and who had at least six months of service (as that term
  is defined in the former Somers, Grove & Co., Inc. 401(k) Savings Plan)
  on that date, or (ii) was a participant in said 401(k) Plan on December 31,
  1986 shall be credited with Service for years of service with Somers, Grove
  & Co., Inc.

  
	
   

  	
   

  	
   

  
	
  Vesting:

  	
   

  	
  Each former
  employee of Somers, Grove & Co., Inc. who had six months of service (as
  defined under the Somers, Grove & Co., Inc. 401(k) Savings Plan) as of
  December 31, 1986 shall be 100% vested in his or her Matching Account and
  Profit Sharing Account

  

 

Appendix A

 

Company: Participating Employers listed in Attachment A of the Plan as
restated effective 

January 1, 1987 (i.e. Washington Mutual Financial, Inc, Murphy Favre, Inc.,
Composite

Research & Management Co., Murphy Favre Properties, Inc., Washington Mutual

Insurance Services, Inc., E.J. Life Insurance Co., and Benefit Service
Corporation

 

	
  Vesting:

  	
   

  	
  Each
  participant shall be 100% vested in his Matching Account and Profit Sharing
  Account who (i) was a Participant on 1/1/87 and (ii) was 100% vested under
  the predecessor plan of those participating Employers listed in Attachment A
  of the Plan as restated Effective January 1, 1987 or who had one Year of Eligibility
  Service as of December 31, 1986

  

 

Appendix A

 

Company:  IPC Pension Services
Company, Inc. of Alaska

 

	
  Service, In
  General:

  	
   

  	
  Employees
  who were employed by IPC at the time it was acquired by WM Financial, Inc. on
  May 17, 1988 shall be credited with Service for service performed with IPC. 

  
	
   

  	
   

  	
   

  
	
  Eligibility
  for Participation Service

  	
   

  	
  Service
  shall include service with IPC effective January 1, 1988.  

  

 

 

Appendix A

 

Company:  Shoreline Federal
Savings Bank

 

	
  Service, In
  General:

  	
   

  	
  Employees
  who were employed by Shoreline Federal Savings Bank at the time it was
  acquired by the Company on May 2, 1988 shall be credited with Service for
  service performed with Shoreline Federal Savings Bank.  

  
	
   

  	
   

  	
   

  
	
  Eligibility
  for Participation Service

  	
   

  	
  Service
  shall include service with Shoreline Savings Bank, effective January 1, 1988.
  

  

 

Appendix A

 

Company:  Columbia Federal
Savings Bank

 

	
  Service, In
  General:

  	
   

  	
  Employees
  who were employed by Columbia Federal Savings Bank at the time it was
  acquired by the Company on May 2, 1988 shall be credited with Service for
  service performed with Columbia Federal Savings Bank. 

  

 

Appendix A

 

Company:  Mutual Travel, Inc.

 

Appendix A

 

Company:  Old Stone Bank

 

	
  Service, In
  General:

  	
   

  	
  Former
  employees of Old Stone Bank (i) employed in a “regular” position as defined
  by the Company (or the prior sponsor of the Plan) as of May 31, 1990, or (ii)
  originally employed in a “temporary” position as defined by the Company (or
  the prior sponsor of the Plan) as of May 31, 1990, and subsequently transferred
  to a “regular” position with the Company (or the prior sponsor of the Plan)
  shall be credited with Service for years of service with Old Stone Bank (or
  its predecessor) upon completion of one Year of Eligibility Service measured
  from May 31, 1990. 

  

 

 

	
  Eligibility
  for Participation Service

  	
   

  	
  Former
  employees of Old Stone Bank employed with the Company in a “regular” position
  (as defined by the Company) as of May 31, 1990, will be credited with Service
  for service performed with Old Stone Bank (or its predecessor). Former
  employees of Old Stone Bank employed with the Company in a “temporary”
  position (as defined by the Company) as of May 31, 1990, will be credited
  with Service for service performed with Old Stone Bank (or its predecessor)
  as of the date such employee transfers to a “regular” position with the
  Employer. 

  

 

Appendix A

 

Company:  Benefit Service
Corporation (Tacoma)

 

	
  Service, In
  General:

  	
   

  	
  Service
  Corporation (Tacoma) at the time it was acquired by WM Financial, Inc. shall
  be credited with Service for service performed with Benefit Service
  Corporation (Tacoma). 

  

 

Appendix A

 

Company:  Frontier Savings and
Loan

 

Appendix A

 

Company:  Vancouver Federal
Savings and Loan

 

	
  Service, In
  General:

  	
   

  	
  Employees
  who were employed by Vancouver Federal Savings and Loan at the time it was
  acquired by the Company on August 1, 1991 shall be credited with Service for
  service performed with Vancouver Federal Savings and Loan. 

  

 

Appendix A

 

Company:  Sound Savings and Loan

 

	
  Service, In
  General:

  	
   

  	
  Employees
  who were employed by Sound Savings and Loan at the time it was acquired by
  the Company on January 1, 1992 shall be credited with Service for service
  performed with Sound Savings and Loan. 

  

 

 

Appendix A

 

Company:  Great Northwest Bank

 

	
  Service, In
  General:

  	
   

  	
  Employees
  who were employed by Great Northwest Bank at the time it was acquired by the
  Company on April 1, 1992 shall be credited with Service for service performed
  with Great Northwest Bank. 

  

 

Appendix A

 

Company:  Pioneer Savings Bank

 

	
  Service, In
  General:

  	
   

  	
  Employees
  who were employed by Pioneer Savings Bank at the time it was acquired by the
  Company on March 1, 1993 shall be credited with Service for service performed
  with Pioneer Savings Bank. 

  
	
   

  	
   

  	
   

  
	
  Treatment of
  Pioneer ESOP Participants

  	
   

  	
  The Company acquired
  Pioneer Savings Bank and Pioneer merged into the Company as of March 1, 1993.
  As a result, the Company became the successor sponsor of the Pioneer Savings
  Bank Employee Stock Ownership Plan as amended and restated, generally
  effective as of January 1, 1998, (the “Pioneer ESOP”).  The Company continued to maintain the
  Pioneer ESOP but has made no contributions to the Pioneer ESOP.  Prior Pioneer Participants continued to accrue
  vesting service under the Pioneer ESOP for their service with the Company.

   

  Effective October 1,
  2003, each person who was entitled to a benefit under the Pioneer ESOP that
  had not been distributed in full as of September 30, 2003 (a “Prior Pioneer
  Participant”) became an Inactive Participant under Section 2.28 of the Plan
  only with respect to their ESOP Account attributable to the Pioneer ESOP.

   

  As of
  October 1, 2003, the Account of each Prior Pioneer Participant was credited
  with an amount equal to the benefit under the Pioneer ESOP as of September
  30, 2003. Amounts credited to Participant Accounts constitute contributions
  to the ESOP, and shall remain part of the ESOP until the Participants elect
  to transfer the funds to a fund other than the Company Stock Fund.  Each Participant who was a Prior Pioneer
  Participant, who became a Participant in the Plan effective 

  

 

 

	
   

  	
   

  	
  October 1, 2003, shall
  be fully vested in the amount attributable to the Pioneer ESOP in his Company
  Stock Fund.

  

 

Appendix A

 

Company:  Pacific First Financial
Corporation, Pacific First Bank, a Federal Savings Bank or their affiliates
(“Pacific First”)

 

	
  Service, In
  General:

  	
   

  	
  Employees
  who were employed by Pacific First and became Employees in connection with
  the acquisition of Pacific First by the Company on April 1, 1993, shall be
  credited with Service for service performed with Pacific First. 

  

 

Appendix A

 

Company:  Great Western Bank

 

	
  Service, In
  General:

  	
   

  	
  Employees,
  who were employed by Great Western Bank at the time it was acquired by
  Pacific First, shall be credited with Service for service performed with
  Great Western Bank. 

  
	
   

  	
   

  	
   

  
	
  Participant
  Loans:

  	
   

  	
  Acquired
  Participant Loans subject to Section 7.4(d).

   

  

 

Appendix A

 

Company:  Tri-City Cosmopolitan
Travel Services, Inc.

 

	
  Service, In
  General:

  	
   

  	
  Employees
  who were employed by Tri-City Cosmopolitan Travel Services, Inc. at the time
  it was acquired by Mutual Travel, Inc. on November 15, 1993 shall, effective
  January 1, 1994, be credited with Service for service performed with Tri-City
  Cosmopolitan Travel Services, Inc. 

  

 

Appendix A

 

Company:  Global Express Travel

 

	
  Service, In
  General:

  	
   

  	
  Employees
  who were employed by Global Express Travel at the time it was acquired by
  Mutual Travel, Inc. on October 1, 1993 shall be credited with Service for
  service performed with Global Express Travel. 

  

 

 

Appendix A

 

Company:  Summit Savings and Loan

 

	
  Service, In
  General:

  	
   

  	
  Employees
  who were employed by Summit Savings and Loan at the time it was acquired by
  the Company on November 15, 1994, and who are employed by an Employer on
  November 15, 1995, shall be credited with Service for service performed with
  Summit Savings and Loan that is in addition to Service credited for
  Eligibility for Participation below. 

  
	
   

  	
   

  	
   

  
	
  Eligibility
  for Participation Service:

  	
   

  	
  Employees
  who were employed by Summit Savings and Loan at the time it was acquired by
  the Company on November 15, 1994, shall be credited with Service for service
  performed with Summit Savings and Loan. 

  

 

Appendix A

 

Company:  Olympus Savings Bank

Olympus Capital Corporation

 

	
  Service, In
  General:

  	
   

  	
  Employees
  who were employed by Olympus Capital Corporation, or its affiliates, at the
  time it was acquired by an affiliate of the Company on April 28, 1995, and
  who are employed by an Employer on April 29, 1996, shall be credited with
  Service for service performed with Olympus Capital Corporation or its
  affiliates. 

  

 

Appendix A

 

Company:  Enterprise Bank

 

	
  Service, In
  General:

  	
   

  	
  Employees
  who were employed by Enterprise Bank at the time it was acquired by the
  Company on August 29, 1995, and who continue to be employed by an Employer
  thereafter, shall be credited with Service for service performed with
  Enterprise Bank. 

  

 

 

Appendix A

 

Company:  Western Bank

 

	
  Service, In
  General:

  	
   

  	
  Employees
  who were employed by Western Bank at the time it was acquired by the Company
  on February 1, 1996 shall be credited with Service for services performed
  with Western Bank. 

  
	
   

  	
   

  	
   

  
	
  Participant
  Loans:

  	
   

  	
  Acquired
  Participant Loans subject to Section 7.4(d).

   

  

 

Appendix A

 

Company:  Utah Federal Savings
Bank

 

	
  Service, In
  General:

  	
   

  	
  Employees
  who were employed by Utah Federal Savings Bank at the time it was acquired by
  the Company or by its affiliate shall be credited with Service for service
  performed with Utah Federal Savings Bank. 

  

 

Appendix A

 

Company:  American Savings Bank,
FA

 

	
  Service, In
  General:

  	
   

  	
  Employees
  who were employed by American Savings Bank, F.A. at the time it was acquired
  by the Company or by its affiliate shall be credited with up to one year of
  Service for service with American Savings Bank, F.A. 

  
	
   

  	
   

  	
   

  
	
  Vesting:

  	
   

  	
  Effective
  December 31, 2003 the American Savings Bank 401(k) Employer Matching account
  shall be 100% vested.

  
	
   

  	
   

  	
   

  
	
  Participant
  Loans:

  	
   

  	
  Acquired
  Participant Loans subject to Section 7.4(d).

  

 

Appendix A

 

Company:  United Western
Financial Group, Inc.

 

	
  Service, In
  General:

  	
   

  	
  Employees
  who were employed by United Western Financial Group, Inc. at the time it was
  acquired by the Company or by its affiliate shall be credited with Service
  for service performed with United Western Financial Group, Inc. or its
  affiliates. 

  

 

 

	
  Vesting:

  	
   

  	
  Each Employee who has one or more accounts
  under the Plan attributable to such Employee’s participation in a defined
  contribution plan maintained by United Western Financial Group, Inc. shall be
  vested in such account according to the following schedule:

   

  Matching
  Contributions Account:

  

 

	
   

  	
   

  	
  Years of Vesting Service

  	
   

  	
  Percent Vested

  	
   

  	
   

  
	
   

  	
   

  	
  Less than 3

  	
   

  	
  0

  	
  %

  	
   

  
	
   

  	
   

  	
  3 or more years

  	
   

  	
  100

  	
  %

  	
   

  

 

	
   

  	
   

  	
  Effective December 31, 2003, the United
  Western Financial Group, Inc. 401(k) Profit Sharing account shall be 100%
  vested.

  
	
   

  	
   

  	
   

  
	
  Participant
  Loans:

  	
   

  	
  Acquired
  Participant Loans subject to Section 7.4(d) 

  

 

Appendix A

 

Company:  Great Western Financial Corporation and

Great Western Financial Services Corp.

 

	
  Vesting:

  	
   

  	
  The PAYSOP Account is 100% vested.

   

  Effective
  December 31, 2003, the Great Western Employee Savings Incentive Plan (ESIP)
  Employer Matching account shall be 100% vested.

  
	
   

  	
   

  	
   

  
	
  Participant
  Loans:

  	
   

  	
  Not
  Applicable

  

 

Appendix A

 

Company:  H. F. Ahmanson &
Company

 

	
  Service, In
  General:

  	
   

  	
  Employees
  hired by the Company on or after July 21, 1998 and who were employed by H. F.
  Ahmanson and Company or one of its affiliates immediately prior to such hire
  shall be credited with Service for service performed with H. F. Ahmanson or
  its affiliates. 

  
	
  Eligibility
  for Participation Service

  	
   

  	
   

  
	
  Vesting:

  	
   

  	
  The Coast Match Account and the HSB/Coast
  Rollover Account shall be 100% Vested

   

  Effective December 31, 2003, the H.F.
  Ahmanson 401(k) Employer Matching Account shall be 100% vested.

  
	
   

  	
   

  	
   

  
	
  Participant
  Loans:

  	
   

  	
  Acquired Participant Loans subject to
  Section 7.4(d) 

  

 

 

Appendix A

 

Company:  Peoples Security
Finance Company, Inc. (“Peoples”)

 

	
  Eligibility
  for Participation Service

  	
   

  	
  Employees
  who were hired by the Company in connection with its purchase of assets of
  Peoples and who were employed by Peoples or one of its affiliates immediately
  prior to such hire shall be credited with Service for up to one year of
  service performed with Peoples or its affiliates. 

  

 

Appendix A

 

Company:  Alta Residential
Mortgage, Inc.  (“Alta”)

 

	
  Service, In
  General:

  	
   

  	
  Employees who
  were employed by Alta at the time it was acquired by the Company shall be
  credited with Service for service performed with Alta or its affiliates. 

  

 

Appendix A

 

Company:  Long Beach Mortgage
Company

 

	
  Service, In
  General:

  	
   

  	
  Employees
  who were employed by Long Beach Mortgage Company at the time it was acquired
  by the Company shall be credited with Service for service performed with Long
  Beach Mortgage Company. 

  
	
   

  	
   

  	
   

  
	
  Vesting:

  	
   

  	
  Effective
  December 31, 2003 the Long Beach Mortgage Company 401(k) Employer Matching
  Account and the Long Beach Mortgage Company 401(k) Pre-98 Employer Matching
  Account shall be 100% vested:

  
	
   

  	
   

  	
   

  
	
  Participant
  Loans:

  	
   

  	
  Acquired
  Participant Loans subject to Section 7.4(d).

  

 

Company:  PNC Mortgage Corp. of America

and a subsidiary of PNC Bank, National Association (“PNC”)

 

	
  Service, In
  General:

  	
   

  	
  Employees
  who were employed by a subsidiary of PNC Bank, National Association (“PNC”),
  as of January 31, 2001 when such subsidiary was acquired by the Company and
  who were employed by the Company upon the closing of such acquisitions shall
  be credited with Service for service with PNC. 

  

 

 

Appendix A

 

Company:  Bank United Corp.

 

	
  Service, In
  General:

  	
   

  	
  Employees
  who were employed by Bank United Corp. or one of its affiliates at the time
  that it was acquired by the Company or by one of its affiliates shall, after
  April 30, 2001, be credited with Service for service with Bank United Corp. 

  
	
  Eligibility
  for Participation Service

  	
   

  	
   

  
	
  Vesting:

  	
   

  	
  Effective
  December 31, 2003, the Bank United 401(k) Employer Match Account shall be
  100% vested.

  
	
   

  	
   

  	
   

  
	
  Participant
  Loans:

  	
   

  	
  Acquired
  Participant Loans subject to Section 7.4(d)

  

 

Appendix A

 

Company:  Fleet Mortgage Corp.

 

	
  Service, In
  General:

  	
   

  	
  Employees
  who were employed by Fleet Mortgage Corp. at the time it was acquired by the
  Company or by one of its affiliates and who continue employment with the
  Company, shall, after May 31, 2001, be credited with Service for service with
  Fleet Mortgage Corp. or its affiliates. 

  

 

Appendix A

 

Company:  Dime Bancorp, Inc.

 

	
  Service, In
  General:

  	
   

  	
  Employees
  who were employed by Dime Bancorp, Inc. at the time that it was acquired by
  the Company of by one of its affiliates or subsidiaries and who continue
  employment with the Company, shall, after March 31, 2002, be credited with
  Service for service with Dime Bancorp, Inc. or its affiliates or
  subsidiaries.

  
	
   

  	
   

  	
   

  
	
  Eligibility
  for Participation Service

  	
   

  	
  Not
  Applicable

  
	
   

  	
   

  	
   

  
	
  Vesting:

  	
   

  	
  Each
  Employee who has one or more accounts under the Plan attributable to such
  Employee’s participation in a defined contribution plan maintained by Dime
  Bancorp, Inc. shall be vested in such account in accordance with the vesting
  provisions set forth in Article VII of the 

  

 

 

	
   

  	
   

  	
  Retirement
  401(k) Investment Plan of Dime Bancorp, Inc., as amended.

  
	
   

  	
   

  	
   

  
	
  Participant
  Loans:

  	
   

  	
  Acquired
  Participant Loans subject to Section 7.4(d).

  

 

Appendix A

 

Company:  HomeSide Lending, Inc.

 

	
  Service, In
  General:

  	
   

  	
  Employees
  who were employed by HomeSide Lending, Inc. at the time that certain of its
  assets were acquired by the Company or by one of its affiliates or
  subsidiaries and who continue employment with the Company, shall, after June
  30, 2002, be credited with Service for service with HomeSide Lending, Inc. or
  its affiliates or subsidiaries.

  

 

Appendix A

 

Company:  Providian Financial
Corporation and Providian National Bank

 

	
  Entry Date

  	
   

  	
  Eligible
  Employees who on September 30, 2005 were employed by Providian Financial
  Corporation, Providian National Bank or any affiliates or subsidiaries
  thereof and who on October 1, 2005 became employed by the Employer may first
  enter the Plan on April 1, 2006.

  
	
   

  	
   

  	
   

  
	
  Service, In
  General:

  	
   

  	
  Employees
  who on September 30, 2005 were employed by Providian Financial Corporation,
  Providian National Bank or any affiliate or subsidiary thereof and who on
  October 1, 2005 became employed by the Employer shall, after April 1, 2006,
  be credited with Service for service with Providian Financial Corporation,
  Providian National Bank or their affiliates or subsidiaries.Exhibit 10.9

 

WASHINGTON MUTUAL, INC.

 

SUPPLEMENTAL EMPLOYEES’ RETIREMENT PLAN

 

 

Amended and Restated

Effective July 20, 2004

 

 

WASHINGTON MUTUAL, INC.

 

 

SUPPLEMENTAL EMLOYEES’ RETIREMENT PLAN

 

Effective July 20, 2004

 

TABLE OF CONTENTS

 

	
  PREAMBLE

  	
  4

  
	
  ARTICLE I

  	
  NATURE OF PLAN

  	
  4

  
	
   

  	
  1.1

  	
  PURPOSE

  	
  4

  
	
   

  	
  1.2

  	
  TOP HAT PLAN AND EXCESS BENEFITS

  	
  4

  
	
   

  	
  1.3

  	
  UNFUNDED PLAN

  	
  4

  
	
  ARTICLE II

  	
  DEFINITIONS AND CONSTRUCTION

  	
  5

  
	
   

  	
  2.1

  	
  ACCOUNTS

  	
  5

  
	
   

  	
  2.2

  	
  BENEFICIARY

  	
  5

  
	
   

  	
  2.3

  	
  CODE

  	
  5

  
	
   

  	
  2.4

  	
  COMMITTEE

  	
  6

  
	
   

  	
  2.5

  	
  COMPANY

  	
  6

  
	
   

  	
  2.6

  	
  COMPENSATION

  	
  6

  
	
   

  	
  2.7

  	
  DISABLED OR DISABILITY

  	
  6

  
	
   

  	
  2.8

  	
  ELIGIBLE EMPLOYEE

  	
  6

  
	
   

  	
  2.9

  	
  EMPLOYEE

  	
  6

  
	
   

  	
  2.10

  	
  EMPLOYER

  	
  6

  
	
   

  	
  2.11

  	
  ERISA

  	
  6

  
	
   

  	
  2.12

  	
  FORMER PARTICIPANT

  	
  6

  
	
   

  	
  2.13

  	
  HUMAN RESOURCES COMMITTEE

  	
  6

  
	
   

  	
  2.14

  	
  INTEREST RATE

  	
  6

  
	
   

  	
  2.15

  	
  NORMAL RETIREMENT AGE

  	
  6

  
	
   

  	
  2.16

  	
  PARTICIPANT

  	
  7

  
	
   

  	
  2.17

  	
  PENSION PLAN

  	
  7

  
	
   

  	
  2.18

  	
  PLAN

  	
  7

  
	
   

  	
  2.19

  	
  PLAN YEAR

  	
  7

  
	
   

  	
  2.20

  	
  RELATED EMPLOYER

  	
  7

  
	
   

  	
  2.21

  	
  RETIREMENT PLANS

  	
  7

  
	
   

  	
  2.22

  	
  SAVINGS PLAN

  	
  7

  
	
   

  	
  2.23

  	
  YEAR OF VESTING SERVICE

  	
  7

  
	
  ARTICLE III

  	
  BENEFITS

  	
  8

  
	
   

  	
  3.1

  	
  PARTICIPANT’S ACCOUNTS

  	
  8

  
					

 

 

	
   

  	
  3.2

  	
  BENEFITS CREDITED TO ACCOUNTS

  	
  8

  
	
   

  	
  3.3

  	
  INTEREST CREDITED TO ACCOUNTS

  	
  8

  
	
  ARTICLE IV

  	
  PAYMENT OF BENEFITS

  	
  9

  
	
   

  	
  4.1

  	
  PAYMENT

  	
  9

  
	
   

  	
  4.2

  	
  DETERMENTATION OF NONFORFEITABLE BENEFITS

  	
  9

  
	
   

  	
  4.3

  	
  UPON DEATH OF PARTICIPANT

  	
  10

  
	
   

  	
  4.4

  	
  PAYMENT IN THE EVENT OF LEGAL DISABILITY

  	
  10

  
	
   

  	
  4.5

  	
  ACCOUNTS CHARGED

  	
  10

  
	
   

  	
  4.6

  	
  UNCLAIMED ACCOUNTS

  	
  10

  
	
   

  	
  4.7

  	
  RIGHT TO OFFSET FOR TAXES, OTHER OBLIGATIONS

  	
  11

  
	
  ARTICLE V

  	
  PLAN ADMINISTRATION COMMITTEE

  	
  12

  
	
   

  	
  5.1

  	
  APPOINTMENT

  	
  12

  
	
   

  	
  5.2

  	
  TERM

  	
  12

  
	
   

  	
  5.3

  	
  COMPENSATION

  	
  12

  
	
   

  	
  5.4

  	
  POWERS OF PLAN ADMINISTRATION COMMITTEE

  	
  12

  
	
   

  	
  5.5

  	
  MANNER OF ACTION

  	
  13

  
	
   

  	
  5.6

  	
  AUTHORIZED REPRESENTATIVE

  	
  13

  
	
   

  	
  5.7

  	
  INTERESTED MEMBER

  	
  14

  
	
   

  	
  5.8

  	
  INDEMNITY

  	
  14

  
	
  ARTICLE VI

  	
  PARTICIPANT ADMINISTRATIVE PROVISIONS

  	
  15

  
	
   

  	
  6.1

  	
  BENEFICIARY DESIGNATION

  	
  15

  
	
   

  	
  6.2

  	
  PERSONAL DATA TO PLAN ADMINISTRATION COMMITTEE

  	
  15

  
	
   

  	
  6.3

  	
  ADDRESS FOR NOTIFICATION

  	
  15

  
	
   

  	
  6.4

  	
  PLACE OF PAYMENT AND PROOF OF CONTINUED ELIGIBILITY

  	
  15

  
	
   

  	
  6.5

  	
  ASSIGNMENT OR ALIENATION

  	
  16

  
	
   

  	
  6.6

  	
  INFORMATION AVAILABLE

  	
  16

  
	
   

  	
  6.7

  	
  BENEFICIARY’S RIGHT TO INFORMATION

  	
  16

  
	
   

  	
  6.8

  	
  CLAIMS PROCEDURE

  	
  16

  
	
   

  	
  6.9

  	
  APPEAL PROCEDURE FOR DENIAL OF BENEFITS

  	
  16

  
	
   

  	
  6.10

  	
  NO RIGHTS IMPLIED

  	
  17

  
	
  ARTICLE VII 

  	
  AMENDMENT AND TERMINATION

  	
  18

  
	
   

  	
  7.1

  	
  AMENDMENT

  	
  18

  
	
   

  	
  7.2

  	
  TERMINATION

  	
  18

  
	
  ARTICLE VIII

  	
  MISCELLANEOUS

  	
  19

  
	
   

  	
  8.1

  	
  EXECUTION OF RECEIPTS AND RELEASES

  	
  19

  
	
   

  	
  8.2

  	
  EMPLOYER RECORDS

  	
  19

  
					

 

 

	
   

  	
  8.3

  	
  INTERPRETATIONS AND ADJUSTMENTS

  	
  19

  
	
   

  	
  8.4

  	
  EVIDENCE

  	
  19

  
	
   

  	
  8.5

  	
  SEVERABILITY

  	
  19

  
	
   

  	
  8.6

  	
  NOTICE

  	
  19

  
	
   

  	
  8.7

  	
  WAIVER OF NOTICE

  	
  19

  
	
   

  	
  8.8

  	
  SUCCESSORS

  	
  19

  
	
   

  	
  8.9

  	
  HEADINGS

  	
  20

  
	
   

  	
  8.10

  	
  GOVERNING LAW

  	
  20

  

 

 

WASHINGTON MUTUAL, INC.

SUPPLEMENTAL EMPLOYEES’ RETIREMENT PLAN

 

Effective July 20, 2004

 

PREAMBLE

 

Washington
Mutual Bank originally established this plan to provide benefits to certain
management and highly compensated employees whose contributions to the Company’s
qualified retirement plans were limited by Internal Revenue Code Section
401(a)(17) beginning on January 1, 1994. 
Washington Mutual, Inc. became the successor sponsor of the Plan.  The Plan is hereby amended and restated
effective July 20, 2004 as follows:

 

ARTICLE I

NATURE OF PLAN

 

1.1          Purpose.  The purpose of this Plan is to provide
retirement benefits for certain key employees of the Company and its affiliates
that supplement the benefits accrued under the WaMu Pension Plan.

 

1.2          Top Hat Plan and
Excess Benefits.  The Plan is an
unfunded plan maintained primarily to provide deferred compensation benefits
for a select group of management or highly compensated employees (within the
meaning of sections 201(2), 301(a)(3), and 401(a)(1) of ERISA), and is intended
to be exempt from Parts 2, 3, and 4 of ERISA.

 

1.3          Unfunded Plan.
This Plan is established as an unfunded plan of deferred compensation.  The compensation that is payable hereunder
and interest that accrues thereon are represented solely by bookkeeping entries
on accounts maintained by the Plan Administration Committee.  No funds are held in trust or otherwise
segregated for the sole purpose of paying Plan benefits.  All Plan benefits are payable solely from the
general assets of the Company.  The
Company may from time to time reserve assets in a general account or grantor
trust owned by the Company for the purpose of paying liabilities that are
accrued under this Plan.  Participants
and Beneficiaries shall have no legal nor equitable rights, interest or claims
in any specific collateral, property or assets of the Company, but shall be
general unsecured creditors of the Company until benefits are paid hereunder.

 

End of Article I

 

4

 

ARTICLE II

DEFINITIONS AND CONSTRUCTION

 

For the
purpose of this Plan, the following definitions shall apply unless the context
requires otherwise.  Words used in the
masculine gender shall apply to the feminine, where applicable, and wherever
the context of the Plan dictates, the plural shall be read as the singular and
the singular as the plural.  The words “Article”
or “Section” in this Plan shall refer to an Article or Section of this Plan
unless specifically stated otherwise. 
Compounds of the word “here,” such as “herein” and “hereof” shall be
construed to refer to another provision of this Plan, unless otherwise
specified or required by the context.  In
determining the time within which an event or action is to take place for
purposes of the Plan, no fraction of a day shall be considered, and any act,
the performance of which would fall on a Saturday, Sunday, holiday or other
non-business day, may be performed on the next following business day.

 

2.1          Accounts.
The separate bookkeeping records maintained to record the benefits of a
Participant earned under the Plan which include the following or any others
that are established by the Plan Administration Committee.

 

(a)           “Pension Account”
shall mean the Account reflecting benefits credited to a Participant hereunder
that are earned with reference to the WaMu Pension Plan (or its predecessor),
together with earnings, gains and losses credited thereto.

 

(b)           “Savings Account”
shall mean the Account reflecting benefits credited to a Participant hereunder
that are earned with reference to the WaMu Savings Plan (or its predecessor),
together with earnings, gains and losses credited thereto.

 

2.2          Beneficiary.
 Any person or fiduciary designated
by a Participant who is or may become entitled to a benefit under the Plan
following the death of the Participant;
provided, that, in the case of a married Participant, the Participant’s
Beneficiary shall be the Participant’s surviving spouse unless the Participant’s
spouse (i) consents in writing to the designation of another party as
Beneficiary of all or a part of the benefit to which the Participant may become
entitled under the Plan, (ii) such election designates a Beneficiary which may
not be changed without spousal consent (or the consent of the spouse expressly
permits designations by the Participant without any requirement of further
spousal consent), (iii) the spouse’s consent acknowledges the effect of such
election, and (iv) such consent is witnessed by a notary public or a member of
the Plan Administration Committee.  Such
spousal consent shall not be required if it is established to the satisfaction
of the Plan Administration Committee that such consent cannot be obtained
because the spouse cannot be located or because of such other circumstances as
the Secretary of the Treasury may prescribe by regulations.  Any consent by a spouse hereunder shall be
effective only with respect to that spouse.

 

2.3          Code. The Internal Revenue Code of 1986, as
amended.

 

 

2.4          Committee.  The Plan Administration Committee, as it
is appointed from time to time by the Human Resources Committee pursuant to
Article V.

 

2.5          Company. Washington Mutual, Inc. or any successor
thereto.

 

2.6          Compensation.  A Participant’s compensation, determined
according to the definition of “compensation” under the Pension Plan for the
Plan Year, without regard to the limitations of section 401(a)(17) of the Code
contained in the Pension Plan, that is actually paid or made available to the
Participant during such year, less the maximum amount of compensation that can
be considered under section 401(a)(17)(A) of the Code, as adjusted by section
401(a)(17)(B) of the Code.

 

2.7          Disabled
or Disability. A Participant is Disabled when he is determined to be
disabled under the terms of the Pension Plan.

 

2.8          Eligible
Employee. An Employee who is in salary levels 1-5 or who is designated
as eligible by the Committee (whether individually or by class), in its
discretion.

 

2.9          Employee.
Any employee of an Employer; specifically excluding, however, a person who is a
nonresident alien who receives no earned income that constitutes income from
sources within the United States.

 

2.10        Employer.
The Company, Washington Mutual Bank, Washington Mutual Bank fsb, Washington
Mutual Life Insurance Company, Murphey Favre, Inc., Murphey Favre Securities
Services, Inc., Composite Research & Management Co., and Washington Mutual
Insurance Services, Inc.  The term
Employer also includes any Related Employer from time to time designated by the
Committee as an Employer.

 

2.11        ERISA.  The Employee Retirement Income Security Act
of 1974, as amended.

 

2.12        Former
Participant. Any individual, other then a Re-Employed Employee, who has
been a Participant, but who has terminated employment, and who has not yet
received the entire benefit to which he is entitled under the Plan.

 

2.13        Human
Resources Committee.  The Human Resources Committee of the Board of
Directors of the Company.

 

2.14        Interest Rate.  The rate at which interest is credited to
Participants Accounts under the Pension Plan for the Plan Year.

 

2.15        Normal
Retirement Age. The first day of the month that coincides with or
immediately precedes the date the Participant attains age 65.

 

 

2.16        Participant.  An Eligible Employee who is eligible for
benefits under any of the Retirement Plans and who the Committee has identified
as a Participant hereunder, including a Former Participant.

 

2.17        Pension
Plan. The WaMu Pension Plan, or its predecessor, the Washington Mutual,
Inc. Cash Balance Pension Plan.

 

2.18        Plan.
The Washington Mutual, Inc Supplemental Employees’ Retirement Plan as embodied
herein and as amended from time to time.

 

2.19        Plan
Year. The fiscal year of the Plan, which is the period from January 1
through December 31 of each year.

 

2.20        Related
Employer. Any business entity that is, along with an Employer, (i) a
member of a controlled group of corporations (as defined by section 414(b) of
the Code), (ii) a member of a group of trades or businesses (whether or not
incorporated) that are under common control (as defined by section 414(c) of
the Code), (iii) a member of an affiliated service group (as defined by section
414(m) of the Code), or (iv) any other entity described by Treasury Regulations
promulgated pursuant to section 414(o) of the Code.

 

2.21        Retirement
Plans.  T he WaMu Pension Plan
and the WaMu Savings Plan.

 

2.22        Savings
Plan.  The WaMu Savings Plan, or
its predecessor, the Washington Mutual, Inc. Retirement Savings and Investment
Plan.

 

2.23        Year
of Vesting Service.  Each Plan
Year in which a Participant earns a year of vesting service under the Pension
Plan.  A Year of Vesting Service will
also be credited for each year of vesting service earned under the Pension Plan
prior to the time the Participant was eligible to participate in this Plan.

 

End of Article II

 

 

ARTICLE III

Accounts and Credits

 

3.1      Participant’s Accounts.  The Committee shall establish for each
Participant one or more Accounts described in Section 2.1, as appropriate, to
which shall be allocated the proper benefit accruals hereunder, together with
interest credited thereto and less the distributions therefrom. 

 

3.2      Benefits Credited to Accounts.  For each Plan Year that a Participant earns a
Year of Vesting Service and remains an Employee on the last day of the Plan
Year, the following amounts shall be credited to his appropriate Accounts:

 

(a)           Pension
Account.  A percentage of each
Participant’s Compensation for the Plan Year equal to the benefit accrual
percentage under the Pension Plan for that Plan Year.

 

(b)           Savings
Account.  The profit sharing
contributions under the Savings Plan, if any, that would have been allocated to
the Participant’s accounts thereunder but for the limitations of section
401(a)(17) of the Code.  This credit
shall not include any matching contributions that are based on salary deferral
elections of the Participant under the Savings Plan.

 

3.3      Interest Credited to Accounts.  On a regular basis, and at least annually,
each Participant’s Accounts shall be credited with an amount of interest
payable on the accumulated amounts previously credited to the Accounts at the
Interest Rate for the Plan Year.  For
purposes of this Section 3.3, Interest Rate shall be the yield on 30-year
Treasury Constant Maturities, determined for each Plan Year on the basis of the
rate announced in the prior year.

 

End of Article III

 

 

ARTICLE IV

PAYMENT OF BENEFITS

 

4.1.         Payment. A Participant shall receive payment of the nonforfeitable balance of his
Accounts as follows:

 

(a)           Payment
will commence as soon as administratively possible after termination of
employment with the Company and all Related Employers.  Notwithstanding the preceding, if the
Participant is a Key Employee as set forth in Section 409A of the Code,
payments shall commence no earlier than 6 months after termination of
employment.

 

(b)           In general, a Participant shall receive
payment of the nonforfeitable balance in his Accounts in the form of a single
lump sum payment as soon as administratively feasible after the Payment
Commencement Date.  However, if the
Participant meets the requirements set forth in subparagraph (i) below, he may
elect another form of payment pursuant to subparagraph (ii) below.  In the absence of any election, payment will
be made in the form of a lump sum.

 

(i)            To be eligible to make an election to
receive payment in a form set forth in 4.1(b)(ii), a Participant must meet each
of the following requirements:

 

A.            The balance in his account on the Payment Commencement
Date must exceed $100,000; and

 

B.            The election must be made at least twelve
(12) months prior to the Payment Commencement Date.

 

(ii)           A Participant who meets the requirements of
Section 4.1(b)(i) may elect to receive payment of his nonforfeitable balance in
a series of installments over a period of up to ten (10) years.  If a Participant makes an election pursuant
to this Section 4.1(b)(ii), such election shall be null and void if the balance
of his Accounts does not exceed $100,000 at the time of termination.

 

 

4.2.         Determination of Nonforfeitable Benefits. A Participant’s Accounts shall be fully
nonforfeitable if termination of employment occurs as a result of death or
Disability or at any time following Normal Retirement Age.  Upon termination of employment for any other
reason, the nonforfeitable percentage of a Participant’s Accounts shall be
based upon such Participant’s Years of Vesting Service and shall be determined
in accordance with this Section 4.2.  Any
portion of a Participant’s Accounts that is not nonforfeitable shall be
forfeited at the time benefit payments commence.

 

 

If Participant has not engaged in dishonesty as defined in this Section
4.2, his nonforfeitable percentage shall be the same percentage used to
determine his vesting under the Pension Plan. 
The Account of a Participant who has engaged in dishonesty shall be
completely forfeited.  For purposes of
this Section, dishonesty means that the Participant has engaged in acts of
fraud, embezzlement, theft or any other crime of moral turpitude or has
otherwise been dishonest in his or her relationship with the Employer (without
necessity of criminal proceedings being initiated) and the Participant’s
employment terminated by either discharge or resignation, all as determined by
the Plan Administration Committee.

 

4.3.         Upon Death of Participant.  Upon the
death of a Participant, his entire balance will be paid to his Beneficiary, as
determined under Section 6, in a lump sum as soon as administratively feasible,
provided that the balance in his Accounts immediately after his death is less
than $100,000.  If his balance
immediately after his death is $100,000 or more, the balance will be paid in
three annual installments.

 

4.4.         Payment in the Event of Legal Disability.
Payments to any Participant, Former Participant, or Beneficiary shall be made
to the recipient entitled thereto in person or upon his personal receipt, in
form satisfactory to the Committee, except when the recipient entitled thereto
shall be under legal disability, or, in the sole judgment of the Committee,
shall otherwise be unable to apply such payment in furtherance of his own
interest and advantage.  The Committee
may, in such event, in its sole discretion, direct all or any portion of such
payments to be made in any one or more of the following ways:

 

(a)           To
such person directly;

 

(b)           To
the guardian of his person or his estate;

 

(c)           To a relative or friend of such person, to be expended for his benefit;
or

 

(d)           To a custodian for such person under any Uniform Gifts to Minors Act.

 

The decision of the Committee, in each case, will be final, binding,
and conclusive upon all persons ever interested hereunder.  The Committee shall not be obliged to see to
the proper application or expenditure of any payment so made.  Any payment made pursuant to the power herein
conferred upon the Committee shall operate as a complete discharge of all
obligations of the Employer and the Committee, to the extent of the
distributions so made.

 

4.5.         Accounts Charged. The
Committee shall charge all distributions made to a Participant or to his
Beneficiary from his Accounts against the Accounts of the Participant when
made.

 

4.6.         Unclaimed Accounts. Neither
the Employer nor the Plan Administration Committee shall be obliged to search
for or ascertain the whereabouts of any Participant or Beneficiary.  The Committee, by certified or registered
mail addressed to his last known

 

 

address of record with the
Committee or Employer, shall notify any Participant or Beneficiary that he is
entitled to a distribution under this Plan, and the notice shall state the
provisions of this Section.  If Payment
Commencement Date has arrived, and the Participant or the Beneficiary fails to
claim his benefits or make his whereabouts known in writing to the Committee by
the date that is immediately prior to three years (adjusted according to the
abandonment period of the escheat laws of the applicable state) after the date
of notification, the Participant’s Accounts shall be forfeited.

 

4.7.         Right To Offset For Taxes, Other Obligations.  Any payment or other
distribution of benefits under the Plan may be reduced by any amount required
to be withheld by the Company under any applicable law, rule, regulation, order
or other requirement, now or hereafter in effect, of any governmental
authority.  In addition, if a Participant
becomes entitled to a distribution under the Plan, and if at such time such
Participant has outstanding any debt, obligation or other liability representing
an amount owning to the Company, then the Company may offset such amount owning
it against the amount of benefits otherwise distributable to the extent
permitted by applicable law.

 

End of Article IV

 

 

ARTICLE V

PLAN ADMINISTRATION COMMITTEE

 

5.1.         Appointment.
The Plan Administration Committee has been appointed by the Company to
administer the Plan and serves in such capacity at the pleasure of the board of
directors of the Company.  The board of
directors of the Company may remove the Committee or appoint a successor
committee at any time.  If the Plan
Administration Committee ceases to exist or is removed without the appointment
of a replacement committee, the Company shall function as the Plan
Administration Committee.

 

5.2.         Term. Each member of the Committee shall serve
until his or her successor is appointed. 
Any member of the Committee may be removed by the Company, with or
without cause, which shall have the power to fill any vacancy which may
occur.  A member may resign upon written
notice to the Company.

 

5.3.         Compensation.
The members of the Committee shall serve without compensation for services as
such, but the Company shall pay all expenses of the members of the Committee.

 

5.4.         Powers
of Plan Administration Committee.  The Committee shall have full and absolute
discretion in the exercise of its powers hereunder.  All exercises of power by the Committee
hereunder shall be final, conclusive and binding on all interested parties,
unless found by a court of competent jurisdiction, in a final judgment that is
no longer subject to review or appeal, to be arbitrary and capricious.  In addition to the power otherwise enumerated
herein, the Committee shall have the following specific authority:

 

(a)           To
direct the administration of the Plan in accordance with the provisions herein
set forth;

 

(b)           To
adopt rules of procedure and regulations necessary for the administration of
the Plan that are not inconsistent with the terms of the Plan;

 

(c)           To
interpret and construe the provisions of the Plan and determine all questions
with respect to rights of Employees, Participants, and Beneficiaries under the
Plan, including but not limited to rights of eligibility of an Employee to
participate in the Plan, the value of a Participant’s Accounts, and the
nonforfeitable percentage of each Participant’s Accounts;

 

(d)           To
interpret and enforce the terms of the Plan and the rules and regulations it
adopts;

 

(e)           To
review and render decisions with respect to a claim for, (or denial of a claim
for) a benefit under the Plan;

 

(f)            To
furnish the Employer with information that the Employer may require for tax or
other purposes;

 

 

(g)           To
engage the service of counsel (who may, if appropriate, be counsel for the
Employer) and agents whom it may deem advisable to assist it with the
performance of its duties;

 

(h)           To
prescribe procedures to be followed by distributes in obtaining benefits;

 

(i)            To
receive from the Employer and from Employees such information as shall be
necessary for the proper administration of the Plan;

 

(j)            To
maintain, or cause to be maintained, separate Accounts in the name of each
Participant;

 

(k)           To
select a secretary, who need not be a member of the Committee; and

 

(l)            To
interpret and construe the Plan; and

 

(m)          To
amend the Plan, but only for the following purposes:

 

(i)            changes
in the laws or regulations related to this Plan;

 

(ii)           to clarify any
provisions in the Plan or to correct any errors in the document;

 

(iii)          to simplify
administration or for administrative convenience; and

 

(iv)          for any other reason,
provided that no such amendment shall materially increase the Company’s
liability or potential liability under this Plan.

 

5.5.         Manner
of Action.  The decision of a
majority of the members of the Plan Administration Committee appointed and
qualified shall control.  In case of a
vacancy in the membership of the Committee, the remaining members may exercise
any and all of the powers, authorities, duties, and discretion conferred upon
the Committee.  The Committee may, but
need not, call or hold formal meetings. 
Any decision made or action taken pursuant to written approval of a
majority of the then members shall be sufficient.  The Committee shall maintain adequate records
of its decisions.

 

5.6.         Authorized
Representative.  The Committee
may authorize any one of its members, or its secretary, to sign on its behalf
any notices, directions, applications, certificates, consents, approvals,
waivers, letters, or other documents.

 

 

5.7.         Interested
Member.  No member of the
Committee may decide or determine any matter concerning the distribution,
nature, or method of settlement of his own benefits under the Plan unless there
is only one person acting alone in the capacity as the Committee.

 

5.8.         Indemnity.  The Company shall indemnify and save harmless
the Committee, and its members, and each of them, from and against any and all
loss resulting from liability to which the Committee, or its members, may be
subjected by reason of any act, conduct, or inaction (except willful or
reckless misconduct), in their official capacities in the administration of the
Plan, including all expenses reasonably incurred in their defense, in case the
Company fails to provide such defense.

 

End of Article V

 

 

ARTICLE VI

PARTICIPANT ADMINISTRATIVE PROVISIONS

 

6.1          Beneficiary
Designation.  Each Participant
may from time to time designate a Beneficiary to whom his Accounts shall be
paid in the event of his death.  The
Committee shall prescribe the form for the designation of Beneficiary and, upon
the Participant’s filing the form with the Committee, it shall revoke all
designations filed prior to that date by the same Participant.  A Participant may designate multiple and/or
contingent Beneficiaries.  If a
Participant fails to name a Beneficiary, or if the Beneficiary named by a
Participant predeceases him or is otherwise ineligible to be a Beneficiary, the
Committee may direct that payment of a Participant’s Accounts be made to the
person or persons in the following priority: 
(i) the Participant’s spouse at the time of death; (ii) if no surviving
spouse, then to the Participant’s surviving children (including adopted
children) in equal shares; (iii) if the Participant has no surviving children,
then to the Participant’s surviving parents in equal shares; (iv) if the
Participant has no surviving parents then to the Participant’s estate or such
other individual or entity designated by the Committee, in its sole discretion,
if no estate exists or it is otherwise impractical to make payment to the
estate.

 

The Committee, in its sole discretion, shall
determine to whom the payment shall be made under this Section.

 

6.2          Personal
Data to Plan Administration Committee. 
Each Participant and Beneficiary must furnish to the Committee such
evidence, data, or information as the Committee considers necessary or
desirable for the purpose of administering the Plan.  The provisions of this Plan are effective for
the benefit of each Participant upon the condition precedent that each
Participant will promptly furnish full, true, and complete evidence, data, and
information when requested by the Committee, provided the Committee shall
advise each Participant of the effect of his failure to comply with its request.

 

6.3          Address
for Notification.  Each
Participant and each Beneficiary of a deceased Participant shall file with the
Committee, in writing, such person’s post office address, and each subsequent
change of such post office address.  Any
payment or distribution hereunder, and any communication addressed to a
Participant or his Beneficiary, at the last address filed with the Committee, or
if no address has been filed, then the last address indicated on the records of
the Employer shall be deemed to have been delivered to the Participant or his
Beneficiary on the date that such distribution or communication is deposited in
the United States mail, postage prepaid.

 

6.4          Place
of Payment and Proof of Continued Eligibility.  Any check representing payment hereunder and
any communication addressed to an Employee, a former Employee, a retired
Employee, or a Beneficiary at his last address filed with the Committee, or if
no such address has been filed, then at his last address as indicated on the
records of the Employer, shall be deemed to have been delivered to such person
on the date on which such check or communication is deposited in the United
States mail.  If the Committee, for any
reason, is in doubt as to whether benefit payments are being received by the
person entitled

 

 

thereto, it shall, by
registered mail addressed to the person concerned, at his address last known to
the Committee, notify such person that all unmailed and future retirement
payments shall be henceforth withheld until he provides the Committee with
evidence of his continued life and his proper mailing address.

 

6.5          Assignment
or Alienation.  Except as may be
specified under a “qualified domestic relations order,” as defined in section
514(b)(7) of ERISA, no benefit payable under the Plan shall be subject in any
manner to alienation, sale, transfer, assignment, pledge, encumbrance, charge,
garnishment, execution, or levy of any kind, either voluntary or involuntary
prior to actually being received by the person entitled to the benefit under
the terms of the Plan.  The Company shall
not in any manner be liable for, or subject to, the debts, contracts,
liabilities, engagements, or torts of any person entitled to benefits
hereunder.

 

6.6          Information
Available.  Any Participant or
Beneficiary may examine copies of this Plan or any other instrument under which
the Plan was established or is operated. 
The Plan Administration committee will maintain all of the items listed
in this Section in its office, or in such other place or places as he may
designate from time to time for examination during reasonable business
hours.  Upon the written request of a
Participant or Beneficiary, the Plan Administration Committee shall furnish him
with a copy of any item listed in this Section. 
The Plan Administration Committee may make a reasonable charge to the
requesting person for the copy so furnished.

 

6.7          Beneficiary’s
Right to Information.  A
beneficiary’s right to (and the Committees’ duty to provide to the Beneficiary)
information or data concerning the Plan shall not arise until the Beneficiary
first becomes entitled to receive a benefit under the Plan.

 

6.8          Claims
Procedure.  Prior to or upon
becoming entitled to receive a benefit hereunder, a Participant or Beneficiary
shall file a claim for such benefit with the Committee at the time and in the
manner prescribed thereby.  However, the
Committee may direct payment of a Participant’s or Beneficiary’s benefits
hereunder without requiring the filing of a claim therefore, if the Committee
has knowledge of such Participant’s or Beneficiary’s whereabouts.

 

6.9          Appeal
Procedure for Denial of Benefits. 
The Committee shall provide adequate notice in writing to any
Participant or to any Beneficiary (“Claimant”) whose claim for benefits under
the Plan the Committee has denied.

 

(a)           Such
notice must be sent within 90 days of the date the claim is received by the
Committee unless special circumstances require an extension of time for
processing the claim.  Such extension
shall not exceed 90 days and no extension shall be allowed unless, within the
initial 90 day period, the claimant is sent an extension notice indicating the
special circumstances requiring the extension and specifying a date by which
the Committee expects to render its decision.

 

(b)           The
Committee’s notice of denial to the Claimant shall set forth the following:

 

 

(1)           The
specific reason or reasons for the denial;

 

(2)           Specific
references to pertinent Plan provisions on which the Committee based its
denial;

 

(3)           A
description of any additional material and information needed for the Claimant
to perfect his or her claim and an explanation of why the material or
information is needed;

 

(4)           A
statement that the Claimant may request a review upon written application to
the Committee, review pertinent Plan documents, and submit issues and comments
in writing.  The notice must also state
that any appeal of the Committee’s adverse determination must be made in
writing to the Committee within 60 days after receipt of the Committee’s notice
of denial of benefits.  The notice must
further advise the Claimant that failure to appeal the action to the Committee
in writing within the 60-day period will render the Committee’s decision final,
binding, and conclusive.

 

(5)           The
address of the Committee to which the Claimant may forward his or her appeal.

 

(c)           If
the Claimant should appeal to the Committee, the Claimant or a duly authorized
representative, may submit, in writing, whatever issues and comments the
Claimant deems pertinent.  The Committee
shall re-examine all facts related to the appeal and make a final determination
as to whether the denial of benefits is justified under the circumstances.  The Committee shall advise the Claimant in
writing of its decision on the appeal, the specific reasons for the decision,
and the specific Plan provisions on which the decision is based.  The notice of the decision shall be given
within 60 days of the Claimant’s written request for review, unless special
circumstances (such as a hearing) would make the rendering of a decision within
the 60 day period infeasible, but in no event shall the Committee render a
decision regarding the denial of a claim for benefits later than 120 days after
its receipt of a request for review.  If
an extension of time for review is required because of special circumstances,
written notice of the extension shall be furnished to the claimant prior to the
date the extension period commences.

 

6.10        No
Rights Implied.  Nothing
contained in this Plan, or in any modification or amendment to the Plan, shall
give any Employee, Participant, or any Beneficiary any right to continue
employment, or any other legal or equitable right against an Employer, or
Employee of the Employer, or against their agents, except as expressly provided
by the Plan.

 

End of Article VI

 

 

ARTICLE VII

AMENDMENT AND TERMINATION

 

7.1          Amendment.  The Company shall have the right at any time,
without prior notice and without cause, to amend or terminate the Plan by
action of its board of directors or by action of the Human Resources Committee.  The Company shall make all amendments in
writing.  Each amendment shall state the
date to which it is either retroactively or prospectively effective.

 

7.2          Termination.
Upon termination of the Plan, the Company shall pay all benefits credited to
Participants pursuant to Section 4.1.

 

End of Article VII

 

 

ARTICLE VIII

MISCELLANEOUS

 

8.1          Execution
of Receipts and Releases.  Any
payment to any Participant, or to legal representative or Beneficiary, in
accordance with the provisions of the Plan, shall to the extent thereof be in
full satisfaction of all claims hereunder against the Plan.  The Committee may require such Participant,
legal representative, or Beneficiary, as a condition precedent to such payment,
to execute a receipt and release therefore in such form as it shall determine.

 

8.2          Employer
Records.  Each Employer shall,
upon request or as may be specifically required hereunder, furnish or cause to
be furnished, all of the information or documentation which is necessary or
required by the Committee to perform its duties and functions under the
Plan.  Records of an Employer as to an
Employee’s or Participant’s period of employment, termination of employment and
the reason therefore, leaves of absence, reemployment, and Compensation will be
conclusive on all persons, unless determined by the Committee to be incorrect.

 

8.3          Interpretations
and Adjustments.  To the extent
permitted by law, an interpretation of the Plan and a decision on any matter
within the Committee’s discretion made in good faith is binding on all
persons.  A misstatement of other mistake
of fact shall be corrected when it becomes known and the person responsible
shall make such adjustment on account thereof as he considers equitable and
practicable.

 

8.4          Evidence.  Evidence required of anyone under the Plan
may be by certificate, affidavit, document, or other information which the
person acting on it considers pertinent and reliable, and signed, made or
presented by the proper party or parties. 
Any action required of the Employer may be by resolution of its board of
directors or by any person authorized to act on behalf of the Employer.

 

8.5          Severability.  In the event any provision of the Plan shall
be held to be illegal or invalid for any reason, the illegality or invalidity
shall not affect the remaining provisions of the Plan, but shall be fully
severable and the Plan shall be construed and enforced as if the illegal or
invalid provision had never been included herein.

 

8.6          Notice.  Any notice required to be given herein by an
Employer or the Committee, shall be deemed delivered, when (a) personally
delivered, or (b) placed in the United States mails, in an envelope addressed
to the last address of record the person to whom the notice is given.

 

8.7          Waiver
of Notice.  Any person entitled
to notice under the Plan may waive the notice.

 

8.8          Successors.  The Plan shall be binding upon all persons
entitled to benefits under the Plan, their respective heirs and legal
representatives, upon each Employer, its successors and assigns, and upon the
Plan Administration Committee, and its successors.

 

 

8.9          Headings.  The titles and headings of Articles and
Sections are included for convenience of reference only and are not to be
considered in construction of the provisions hereof.

 

8.10        Governing
Law.  All questions arising with
respect to the provisions of this Agreement shall be determined by application
of the laws of the State of Washington except to the extent Washington law is
preempted by federal law.

 

End of Article VII

 

IN WITNESS
WHEREOF, the undersigned officer of Washington Mutual, Inc. has executed this
instrument as of May     , 2005.

 

	
   

  	
  WASHINGTON
  MUTUAL, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Daryl D. David

  	
   

  
	
   

  	
  Its: Executive
  Vice President – Human Resources

  

 

 

WASHINGTON MUTUAL, INC.

Supplemental Employees’ Retirement Plan

 

Amendment No. 1

 

THIS AMENDMENT to the Washington Mutual, Inc.
Supplemental Employees’ Retirement Plan  (“Plan”) is made by Washington Mutual, Inc. (“Company”).

 

WHEREAS, the Company maintains the Plan for
the benefit of its eligible employees; and

 

WHEREAS, effective October 1, 2005, Providian
Financial Corporation (“Providian”) will merge with and into the Company, and
Providian National Bank (“PNB”) will merge with and into Washington Mutual
Bank, FA (“WMB”); and

 

WHEREAS, employees of Providian who become
employees of the Company and employees of PNB who become employees of WMB on
October 1, 2005 as a result of the company mergers will not be moved to the
Company payroll system until April 1, 2006; and

 

WHEREAS, until April 1,
2006, the former Providian and PNB employees will continue to participate in
any supplemental nonqualified retirement plans that were sponsored by Providian
and PNB prior to the company mergers; and

 

WHEREAS, the Company would like to amend the
Plan to delay the Plan entry date for the former employees of Providian and PNB
to April 1, 2006.

 

NOW, THEREFORE, effective September 30, 2005,
the Plan is hereby amended as follows:

 

Section 2.8 of
the Plan, Eligible Employees, is amended by adding the following sentence to
the end of that section:

 

Notwithstanding
the foregoing Eligible Employees who on September 30, 2005 were employed by Providian
Financial Corporation, Providian National Bank or any affiliates or
subsidiaries thereof and who on October 1, 2005 became employed by the Employer
may first enter the Plan on April 1, 2006.

 

 

This amendment
is adopted and executed this 30th day of September, 2005.

 

 

	
   

  	
  WASHINGTON
  MUTUAL, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Daryl D.
  David

  	
   

  
	
   

  	
   

  	
  Daryl D.
  David

  
	
   

  	
   

  	
  Executive
  V.P. – Human Resources

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