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Exhibit 10.12


CB RICHARD ELLIS 401(K) PLAN

(Pro forma incorporating all amendments
through Amendment 2003-1)
TABLE OF CONTENTS

ARTICLE I    DEFINITIONS    

ARTICLE II    ELIGIBILITY TO PARTICIPATE

 

 
 
2.1

 

Eligibility to Participate

 

13
 
2.2

 

Exclusions from Participation

 

14
 
2.3

 

Participation Upon Reemployment

 

15
 
2.4

 

Leased Employees

 

16

ARTICLE III    PARTICIPANT CONTRIBUTIONS

 

 
 
3.1

 

Voluntary Contributions

 

16
 
3.2

 

Withdrawal of Participant Contributions

 

16
 
3.3

 

Rollover and Transfer Contributions

 

17

ARTICLE IV    PARTICIPATING COMPANY CONTRIBUTIONS

 

 
 
4.1

 

Contribution of Deferrals

 

18
 
4.2

 

Matching Profit Sharing Contribution

 

18
 
4.3

 

Discretionary Profit Sharing Contribution

 

18
 
4.4

 

Discretionary Contributions; Form and Time of Payment

 

18
 
4.5

 

Return of Excess Deferrals

 

19
 
4.6

 

Average Deferral Percentage Limitation

 

19
 
4.7

 

Allocation of Excess Contributions to Highly Compensated Employees

 

20
 
4.8

 

Distribution of Excess Contributions

 

21
 
4.9

 

Qualified Matching Profit Sharing Contributions

 

21
 
4.10

 

Corrective Qualified Non-Elective Contributions

 

21
 
4.11

 

Special Rules

 

22
 
4.12

 

Recordkeeping

 

22
 
4.13

 

Average Contribution Percentage Limitation

 

22
 
4.14

 

Allocation of Excess Aggregate Contributions to Highly Compensated Employees

 

23
 
4.15

 

Distribution or Forfeiture of Excess Aggregate Contributions

 

24
 
4.16

 

Use of Deferrals

 

24
 
4.17

 

Corrective Qualified Non-Elective Contributions

 

24
 
4.18

 

Special Rules

 

24

 

 

 

 

 

i


 
4.19

 

Applicability of the Multiple-Use Limitation

 

25
 
4.20

 

Multiple-Use Limitation

 

25
 
4.21

 

Correction of Multiple-Use Limitation

 

25

ARTICLE V    ACCOUNTING FOR PARTICIPANT'S INTERESTS

 

 
 
5.1

 

Establishment of Accounts

 

26
 
5.2

 

Allocation of Contributions and Forfeitures

 

26
 
5.3

 

Code Section 415 Limitation

 

27
 
5.4

 

Accounting for Trust Fund Income or Losses

 

30
 
5.5

 

Valuation of Trust Fund

 

30
 
5.6

 

Annual Statement of Accounts

 

30
 
5.7

 

Directed Accounts and Investment Options

 

31
 
5.8

 

Investment Funds

 

31
 
5.9

 

Old Company Stock Fund

 

31
 
5.10

 

Investment Direction for all Funds

 

32
 
5.11

 

Voting Rights

 

32
 
5.12

 

ERISA 404(c) Requirements

 

32
 
5.13

 

Allocation of 2000 Restoration Payments

 

33

ARTICLE VI    VESTING

 

 
 
6.1

 

Company Contribution Accounts

 

34
 
6.2

 

Aggregation of Years of Service for Vesting

 

34
 
6.3

 

Other Accounts

 

35
 
6.4

 

Forfeiture of Nonvested Amounts

 

35
 
6.5

 

Unclaimed Benefits

 

36
 
6.6

 

Application of Forfeited Amounts

 

36

ARTICLE VII    DESIGNATION OF BENEFICIARY

 

 
 
7.1

 

Designation of Beneficiary

 

37
 
7.2

 

Failure to Designate Beneficiary

 

37

ARTICLE VIII    DISTRIBUTIONS FROM THE TRUST FUND

 

 
 
8.1

 

Events Permitting Distributions

 

37
 
8.2

 

Rules Governing Distributions

 

39
 
8.3

 

Valuation of Interest

 

41
 
8.4

 

Characterization of Disability Distribution

 

41
 
8.5

 

Payment of Benefits to Alternate Payee

 

41
 
8.6

 

Direct Rollovers

 

42

 

 

 

 

 

ii



ARTICLE IX    TOP-HEAVY PROVISIONS

 

 
 
9.1

 

Priority over other Plan Provisions

 

43
 
9.2

 

Compensation Taken Into Account

 

43
 
9.3

 

Minimum Allocation

 

43
 
9.4

 

Modification of Aggregate Benefit Limit

 

44
 
9.5

 

Minimum Vesting

 

45

ARTICLE X    ADMINISTRATIVE PROCEDURES

 

 
 
10.1

 

Appointment of Committee Members

 

45
 
10.2

 

Officers and Employees of the Committee

 

45
 
10.3

 

Action of the Committee

 

45
 
10.4

 

Disqualification of Committee Member

 

46
 
10.5

 

Expenses of the Committee

 

46
 
10.6

 

Bonding and Compensation

 

46
 
10.7

 

General Powers and Duties of the Committee

 

46
 
10.8

 

Specific Powers and Duties of the Committee

 

46
 
10.9

 

Allocation of Fiduciary Responsibility

 

47
 
10.10

 

Information to be Submitted to the Committee

 

47
 
10.11

 

Allocation of Fiduciary Responsibility

 

47
 
10.12

 

Information to be Submitted to the Committee

 

48
 
10.13

 

Notices, Statements and Reports

 

48
 
10.14

 

Claims Procedure

 

48
 
10.15

 

Service of Process

 

50
 
10.16

 

Correction of Participants' Accounts

 

50
 
10.17

 

Payment to Minors or Persons Under Legal Disability

 

50
 
10.18

 

Uniform Application of Rules and Policies

 

50
 
10.19

 

Funding Policy

 

50

ARTICLE XI    INVESTMENT OF PLAN ASSETS

 

 
 
11.1

 

Trust Fund Investments

 

50
 
11.2

 

Loans to Participants

 

51

ARTICLE XII    TERMINATION, PARTIAL TERMINATION AND COMPLETE DISCONTINUANCE OF CONTRIBUTIONS

 

 
 
12.1

 

Continuance of Plan

 

52
 
12.2

 

Complete Vesting

 

52
 
12.3

 

Disposition of the Trust Fund

 

52

 

 

 

 

 

iii


 
12.4

 

Withdrawal by Participating Company

 

52

ARTICLE XIII    AMENDMENT OR TERMINATION OF THE PLAN

 

 
 
13.1

 

Right of Company to Amend Plan

 

53
 
13.2

 

Amendment Procedure

 

53
 
13.3

 

Effect on Other Participating Companies

 

53
 
13.4

 

Company Not Liable for Benefits

 

53

ARTICLE XIV    ADOPTION OF PLAN BY AFFILIATED COMPANIES

 

 
 
14.1

 

Adoption Procedure

 

54
 
14.2

 

Effect of Adoption by Affiliated Company

 

54
 
14.3

 

Additional Adoption Procedure

 

54

ARTICLE XV    MISCELLANEOUS

 

 
 
15.1

 

Reversion Prohibited

 

55
 
15.2

 

Bonding, Insurance and Indemnity

 

55
 
15.3

 

Merger, Consolidation or Transfer of Assets

 

56
 
15.4

 

Spendthrift Clause

 

56
 
15.5

 

Rights of Participants

 

57
 
15.6

 

Gender, Tense and Headings

 

57
 
15.7

 

Governing Law

 

57

ARTICLE XVI    NEW COMPANY STOCK FUND

 

 
 
16.1

 

Definitions

 

58
 
16.2

 

Establishment of New Company Stock Fund

 

58
 
16.3

 

Direction to Purchase Stock

 

58
 
16.4

 

Purchase of Stock by Trustee

 

59
 
16.5

 

Maximum Number of Shares

 

59
 
16.6

 

Allocation of New Company Stock to Participants Accounts

 

59
 
16.7

 

Repurchase of New Company Stock

 

59
 
16.8

 

Plan Distributions

 

59
 
16.9

 

Voting of New Company Stock

 

60
 
16.10

 

Tender of New Company Stock

 

60
 
16.11

 

General Provisions

 

61

APPENDIX I

 

I-1

APPENDIX II

 

II-1

APPENDIX III

 

III-1

iv



CB RICHARD ELLIS 401(K) PLAN

        The CB Commercial Holdings, Inc. Capital Accumulation Plan was adopted effective as of April 19, 1989, and was subsequently amended and renamed the CB Commercial 401(k) Capital Accumulation Plan. The Plan is hereby amended and restated as set forth herein as of the date of the Merger to add the New Employer Stock Fund, to rename the Plan the CB Richard Ellis 401(k) Plan and, except where other dates are specified, for the purpose of complying with the Uruguay Round Agreements Act of 1994, the Uniformed Services Employment and Reemployment Rights Act of 1994, the Small Business Job Protection Act of 1996, the Taxpayer Relief Act of 1997 and the IRS Restructuring and Reform Act of 1998. Set forth as Appendix I are provisions having application on or after April 19, 1989, but which are deleted from the Plan effective January 1, 1996 due to lack of any further applicability. The Plan is intended to qualify under Sections 401(a) and 401(k) of the Code. The Plan is subject to modification, amendment or termination at any time as provided in Articles 12 and 13, including (without limitation) amendments required to meet regulations and rules issued by the Secretary of the Treasury or his delegate or the Secretary of Labor. Capitalized terms used in this paragraph and in the hereinafter set forth text of the Plan are defined in Article 1 and Article 16.


ARTICLE I

DEFINITIONS

        1.1  "Account" means the records maintained by the Committee to determine the value of each Participant's interest in the assets of the Plan, and may refer to the Participant's Company Contribution Account, Matching Profit Sharing Contribution Account, Deferral Account, Voluntary Contribution Account or Rollover Account singularly or in any appropriate combination. All references to an Account of a Participant shall include any subaccount established pursuant to Section 5.1.

        1.2  "Actual Contribution Percentage" means the ratio determined under Section 4.13(a).

        1.3  "Actual Deferral Percentage" means the ratio determined under Section 4.6(a).

        1.4  "Affiliated Company" means:

        1.5  "Affiliated Group" means the Company and the Affiliated Companies.

        1.6  "Aggregate 401(k) Contributions" means, for any Plan Year, the sum of the following: (a) the Participant's Deferrals for the Plan Year; (b) the Matching Profit Sharing Contribution allocated to the Participant's Accounts as of a date within the Plan Year, to the extent that such Matching Profit Sharing Contributions are aggregated with Deferrals pursuant to section 4.9; and (c) the Qualified Non-Elective Contributions allocated to the Participant's Accounts as of a date within the Plan Year, to the extent that such Qualified Non-Elective Contributions are aggregated with Deferrals pursuant to Section 4.10.

        1.7  "Aggregate 401(m) Contributions" means, for any Plan Year, the sum of the following: (a) the Participant's Matching Profit Sharing contributions for the Plan Year; (b) the Participant's Deferrals for the Plan Year, to the extent that such Deferrals are aggregated with Deferrals, Voluntary Contributions

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and Matching Profit Sharing Contributions pursuant to Section 4.16; and (c) the Qualified Non-Elective Contributions allocated to the Participant's Accounts as of a date within the Plan Year, to the extent that such Qualified Non-Elective Contributions are aggregated with Voluntary Contributions and Matching Profit Sharing Contributions pursuant to Section 4.17; and (d) the Participant's voluntary Contributions for the Plan Year.

        1.8  "Annual Addition" means the sum described in Section 5.3(b).

        1.9  "Annual Statement" means the statement of a Participant's Accounts referred to in Section 5.6.

        1.10 "Applicant" has the meaning set forth in Section 10.12(a).

        1.11 "Average Contribution Percentage" means the average ratio determined under Section 4.13(b).

        1.12 "Average Deferral Percentage" means the average ratio determined under Section 4.6(b).

        1.13 "Beneficiary" means the one or more persons or entities entitled to receive distribution of a Participant's interest in the Plan in the event of his death.

        1.14 "Board" means the Board of Directors of the Company.

        1.15 "Claimant" has the meaning set forth in Section 10.12(b).

        1.16 "Claims Coordinator" has the meaning set forth in Section 10.12.

        1.17 "Code" means the Internal Revenue Code of 1986, as amended.

        1.18 "Committee" means the Administrative Committee appointed and acting pursuant to the provisions of Article 10.

        1.19 "Company" means CB Richard Ellis Services, Inc., a Delaware corporation, formerly known as CB Commercial Holdings, Inc. The term "Company" shall also include any successor employer if the successor employer expressly agrees in writing as of the effective date of succession to continue the Plan and become a party to the Trust Agreement.

        1.20 "Company Contribution Account" means the Account established under Section 5.1 for each Participant, the balance of which is attributable to Profit Sharing Contributions made pursuant to Section 4.3, forfeitures and earnings and losses of the Trust Fund with respect to such contributions and forfeitures.

        1.21 "Compensation" means remuneration of an Employee received while a Participant from the Affiliated Group in a Plan Year or fraction of a Plan Year calculated in accordance with Section 1.75(f) (including application of the Code Section 401(a)(17) limit set forth in the last two paragraphs of Section 1.75). For purposes of determining the amount of a Participant's Deferrals, Compensation shall not include any severance pay received by the Participant.

        1.22 "Deferral" means the portion of a Participant's compensation which he elects to defer so that such amount may be contributed to this Plan as a Participating Company contribution pursuant to Section 4.1.

        1.23 "Deferral Account" means the Account established under Section 5.1 for each Participant, the balance of which is attributable to the Participant's Deferrals and Qualified Non-Elective Contributions and earnings and losses of the Trust Fund with respect to such Deferrals and Qualified Non-Elective Contributions.

        1.24 "Defined Benefit Dollar Limitation" means, for any Plan Year or other Limitation Year, $90,000 or such amount as determined by the Commissioner of Internal Revenue under Section 415(d)

2



(1) of the code and Treasury Regulations thereunder as of the January 1 falling within such Plan Year or Limitation Year.

        1.25 "Defined Benefit Fraction" means the fraction described in Section 5.3(d)(1).

        1.26 "Defined Benefit Plan" means a Qualified Plan other than a Defined Contribution Plan.

        1.27 "Defined Contribution Dollar Limitation" means, for any Plan Year or other Limitation Year, $30,000 as adjusted under Code Section 415(d) as of the January 1 falling within such Plan Year or Limitation Year. If a short Limitation Year is created because of a Plan amendment changing the Limitation Year to a different 12-consecutive month period, the Defined Contribution Dollar Limitation for the short Limitation Year shall not exceed the amount determined in the preceding sentence multiplied by a fraction, the numerator of which is the number of months in the short Limitation Year and the denominator of which is 12.

        1.28 "Defined Contribution Fraction" means the fraction described in Section 5.3(d)(2).

        1.29 "Defined Contribution Plan" means a Qualified Plan which provides individual participant accounts for employer contributions, forfeitures and gains or losses thereon, in accordance with Section 414(i) of the Code.

        1.30 "Determination Date" means for any Plan Year subsequent to the first Plan Year, the last day of the preceding Plan Year.

        1.31 "Determination Period" means the Plan Year containing the Determination Date and the four preceding Plan Years.

        1.32 "Directed Account" means an Account, the investment of which is subject to Participant direction under Section 5.7.

        1.33 "Direct Rollover" means a payment by the Plan to the Eligible Retirement Plan specified by the Distributee.

        1.34 "Disability" means a physical or mental condition which totally and permanently prevents a Participant from engaging in any substantial gainful employment with the Affiliated Group. The determination of Disability shall be made by the Committee in its complete discretion after it has received such medical advice as it deems, in its complete discretion, appropriate and competent.

        1.35 "Distributee" means an Employee or a former Employee. In addition, the Employee's or former Employee's surviving spouse and the Employee's or former Employee's spouse or former spouse who is the Alternate Payee under a QDRO are Distributees with regard to the interest of the spouse or former spouse.

        1.36 "Effective Date" means April 19, 1989.

        1.37 "Eligible Participant" means a Participant who is eligible to receive an allocation of the Participating Company Profit Sharing Contribution and forfeitures in a particular Plan Year, pursuant to Section 5.2(a)(2).

        1.38 "Eligible Retirement Plan" means an individual retirement account described in section 408(a) of the Code, an individual retirement annuity described in section 408(b) of the Code, an annuity plan described in section 403 (a) of the Code, or a qualified trust described in section 401(a) of the Code, that accepts a Distributee's Eligible Rollover Distribution. However, in the case of an Eligible Rollover Distribution to the surviving spouse, an Eligible Retirement Plan is an individual retirement account or individual retirement annuity.

        1.39 "Eligible Rollover Distribution" means any distribution of all or any portion of the balance to the credit of a Distributee, except that an Eligible Rollover Distribution does not include: any

3



distribution that is one of a series of substantially equal periodic payments (not less frequently than annually) made for the life (or life expectancy) of the Distributee or the joint lives (or joint life expectancies) of the Distributee and the Distributee's designated beneficiary, or for a specified period of 10 years or more; effective for calendar years beginning on or after January 1, 1999, hardship withdrawals from Deferral Accounts; and any distribution to the extent such distribution is required under section 401(a)(9) of the Code; and the portion of any distribution that is not includable in gross income (determined without regard to the exclusion for net unrealized appreciation with respect to employer securities).

        1.40 "Employee" means any person who is: (a) employed by a member of the Affiliated Group if the relationship between the member of the Affiliated Group and such person is, for federal income tax purposes, the legal relationship of employer and employee, or (b) a Leased Employee as provided in Section 2.4. For purposes of this definition of "Employee," and notwithstanding any other provisions of the Plan to the contrary, individuals who are not classified by the Company, in its discretion, as employees under Section 3121(d) of the Code (including, but not limited to, individuals classified by the Company as independent contractors and non-employee consultants) and individuals who are classified by the Company, in its discretion, as employees of any entity other than a Participating Company do not meet the definition of Eligible Employee and are ineligible for benefits under the Plan, even if the classification by the Company is determined to be erroneous, or is retroactively revised. In the event the classification of an individual who is excluded from the definition of Employee under the preceding sentence is determined to be erroneous or is retroactively revised, the individual shall nonetheless continue to be excluded from the definition of Employee and shall be ineligible for benefits for all periods prior to the date the Company determines its classification of the individual is erroneous or should be revised. The foregoing sets forth a clarification of the intention of the Company regarding participation in the Plan for any Plan Year, including Plan Years prior to the amendment of this definition of "Employee."

        1.41 "Employment Commencement Date" means whichever of the following is applicable:

        1.42 "ERISA "means the Employee Retirement Income Security Act of 1974, as amended.

        1.43 "Excess Aggregate Contributions" means the amount by which the Aggregate 401(m) Contributions of Highly Compensated Employees are reduced pursuant to Sections 4.13(c), 4.14 and 4. 15.

        1.44 "Excess Contributions" means the amount by which the Aggregate 401(k) Contributions of Highly Compensated Employees are reduced pursuant to Sections 4.6(c), 4.7 and 4.8.

        1.45 "Excess Deferrals" means the amount of a Participant's, Deferrals and other elective deferrals (within the meaning of section 402(g) (3) of the Code) that exceed the limits set forth in Section 4.5.

        1.46 "Highly Compensated Employee" means

4


        1.47 "Hour of Service" means:

5


        Notwithstanding the foregoing: (1) no more than 501 Hours of Service shall be credited to an Employee under subsection (b), (c) or (f) on account of any single continuous period of time during which no services are performed; (2) an hour for which an Employee is directly or indirectly compensated or entitled to compensation by the Company or an Affiliated Company on account of a period during which no services are performed shall not constitute an Hour of Service hereunder if such compensation is paid or due under a plan maintained solely for the purpose of complying with applicable workers' compensation, unemployment compensation or disability insurance laws; (3) Hours of Service shall not be credited for payments which solely reimburse an Employee for medical or medically related expenses; and (4) the same Hour of Service shall not be credited to an Employee both under subsection (a) or (b) and under subsection (c).

        Each Employee whose Compensation is not determined on the basis of certain amounts for each hour worked (such as salaried, commission and piecework employees) and whose hours are not required to be counted and recorded by any federal law (such as the Fair Labor Standards Act) shall be credited with 10 Hours of Service daily, 45 Hours of Service weekly, 95 Hours of Service semimonthly or 190 Hours of Service monthly, if his Compensation is determined on a daily, weekly, semimonthly or monthly basis, respectively, for each such period in which the Employee would be credited with at least one Hour of Service pursuant to this Section. In addition, in lieu of counting Hours of Service for Employees whose Compensation is determined on the basis of certain amounts for each hour worked or whose hours are required to be counted and recorded by federal law, the Committee may apply one of the foregoing equivalencies for purposes of crediting such Employees with Hours of Service under this Section.

        The Committee shall determine the number of Hours of Service, if any, to be credited to an Employee under the foregoing rules in a uniform and nondiscriminatory manner and in accordance with applicable federal laws and regulations including without limitation Department of Labor Regulation Section 2530.200b-2 (b) and (c).

        1.48 "Key Employee" means any Employee or former Employee (and the Beneficiaries of such Employee) who at any time during the Determination Period was:

        The determination of who is a Key Employee will be made in accordance with Section 416(i) of the Code and the Treasury Regulations thereunder.

        1.49 "Leased Employee" means a person described in Section 2.4 (a).

6



        1.50 "Limitation Year" means the 12-consecutive-month period used by a Qualified Plan for purposes of computing the limitations on benefits and annual additions under Section 415 of the Code. The Limitation Year for this Plan is the Plan Year. If the Limitation Year is amended to a different 12-consecutive-month period, the new Limitation Year shall begin on a date within the Limitation Year in which the amendment is made.

        1.51 "Matching Profit Sharing Contributions" means the Participating Company contribution made on behalf of a Participant pursuant to Section 4.2.

        1.52 "Matching Profit Sharing Contributions Account" means the Account established under Section 5.1 for each Participant, the balance of which is attributable to Matching Profit Sharing Contributions made pursuant to Section 4.2, forfeitures and earnings and losses of the Trust Fund with respect to such contributions and forfeitures.

        1.53 "Maximum Annual Addition" means the limitation described in Section 5.3.

        1.54 "Merger" means the merger of BLUM CB Corp., a subsidiary of CBRE Holding, Inc., into CB Richard Ellis Services, Inc.

        1.55 "Minimum Allocation" means the Minimum Allocation described in Section 9.3.

        1.56 "Nonhighly Compensated Employee" for any Plan Year means any active Employee who is not a Highly Compensated Employee.

        1.57 "Normal Retirement Age" means the date a Participant attains age 65.

        1.58 "Old Company Stock" means shares of Class B-2 Common Stock, par value $.01 per share, of the Company, as in existence prior to the Merger.

        1.59 "One Year Break in Service" means, for purposes of determining vesting under Article 6, a Plan Year in which the Participant fails to complete at least one Hour of Service.

        1.60 "Participant" means an Employee or former Employee who has met the applicable eligibility requirements of Article 2 and who has not yet received a distribution of the entire amount of his vested interest in the Plan.

        1.61 "Participating Company" means the Company, each Affiliated Company that has adopted the Plan in the manner provided in Article 14, and each organizational unit of the Company or an Affiliated Company that is designated as a Participating Company by the Board of Directors of the Company; excluding, however, each organizational unit of the Company or any Affiliated Company that has adopted the Plan that is designated as a nonparticipating unit by the Board of Directors of the Company. For purposes of the Plan the term "organizational unit" shall include, without limitation, any division, department or office of the Company or any Affiliated Company.

        1.62 "Period of Service" means a period of time computed under the "elapsed time", method, as follows:

7


        1.63 "Period of Severance" means:

        1.64 "Permissive Aggregation Group" means the Required Aggregation Group of Qualified Plans plus any other Qualified Plan or. Qualified Plans of the Company or any Affiliated Company which, when considered as a group with the Required Aggregation Group, would continue to satisfy the "requirements of Sections 401 (a) (4) and 410 of the Code (including simplified employee pension plans).

        1.65 "Plan" means, effective as of the date of the Merger, the CB Richard Ellis 401(k) Plan set forth herein, as amended from time to time.

8



        1.66 "Plan Year" means the period with respect to which the records of the Plan are maintained, which shall be the 12-month period beginning on January 1 and ending on December 31, and includes such periods prior to the Effective Date.

        1.67 "Present Value" means present value based only on the interest and mortality rates specified in a Defined Benefit Plan for purposes of the calculation of the Top-Heavy Ratio.

        1.68 "Profit Sharing Contribution" means the Participating Company contribution made on behalf of a Participant pursuant to Section 4.3.

        1.69 "Projected Annual Benefit," means the annual benefit described in Section 5.3(d)(3).

        1.70 "QDRO" means a qualified domestic relations order as set forth in Section 15.4(b).

        1.71 "Qualified Plan" means an employee benefit plan that is qualified under Section 401(a) of the Code.

        1.72 "Qualified Non-Elective Contribution" means the contribution made under Section 4.10.

        1.73 "Required Aggregation Group" consists of: (a) each Qualified Plan (including simplified employee pension plans) of the Company or any Affiliated Company in which at least one Key Employee participates, and (b) any other Qualified Plan (including simplified employee pension plans) of the Company or any Affiliated Company which enables a Qualified Plan described in subclause (a) to meet the requirement of Sections 401(a)(4) or 410 of the Code.

        1.74 "Rollover Account" means the Account established under Section 5.1 for a Participant, the balance of which is attributable to the Participant's' rollover and transfer contributions under Section 3.3 and earnings and losses of the Trust Fund attributable to such contributions.

        1.75 "Section 414 (s) Compensation" means Compensation, unless, by appropriate action of the Committee or its delegate, with respect to a Plan Year, the Committee determines that it shall consist of remuneration received by an Employee from members of the Affiliated Group in a Plan Year, or fraction of a Plan Year, while such Employee is a Participant, as determined under one of the following subsections (a) through (g), and otherwise determined in accordance with the rules of this Section 1.75:

9


10


        Any definition of Section 414(s) Compensation shall be used consistently to define the compensation of all Employees taken into account in satisfying the requirements of an applicable provision for the relevant determination period.

        For purposes of applying the limitations of Article 4, Section 414(s) Compensation shall not include in any Plan Year amounts in excess of $150,000, as adjusted by the Commissioner of Internal Revenue to reflect increases in the cost-of-living in accordance with section 401(a)(17)(B).

        The annual compensation of each Participant taken into account in determining allocations for any Plan Year beginning after December 31, 2001, shall not exceed $200,000, as adjusted for cost-of-living increases in accordance with Section 401(a)(17)(B) of the Code. Annual compensation means compensation during the Plan Year or such other consecutive 12-month period over which compensation is otherwise determined under the plan (the determination period). The cost-of-living adjustment in effect for a calendar year applies to annual compensation for the determination period that begins with or within such calendar year.

        1.76 "Section 415 Compensation" means an Employee's remuneration described in Section 1.75(c) unless, by appropriate action of the Committee or its delegate, with respect to a Limitation Year, the Committee determines that it shall consist of any one of the definitions of remuneration described in subsections (a), (b) or (d) of Section 1.75. Any definition of Section 415 Compensation shall be used consistently, to define the compensation of all Employees taken into account in satisfying the requirements of an applicable provision of this Plan for the relevant determination period.

        1.77 "Severance" means an Employee's voluntary or involuntary termination of employment with the Company and all Affiliated Companies for any reason at any time.

        1.78 "TEFRA" means the Tax Equity and Fiscal Responsibility Act of 1982, as amended.

        1.79 "Top-Heavy Plan" means one of the following conditions exists:

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        1.80 "Top-Heavy Ratio" means the following:

        1.81 "Top-Heavy Valuation Date" means the last day of each Plan Year.

        1.82 "Top-Paid Group" for any Plan Year means the top 20 percent (in terms of Total Compensation) of all Employees of the Affiliated Company, excluding the following:

        1.83 "Total Compensation" means Section 415 Compensation adjusted to add back all elective deferrals in the manner described in Section 1.75(f).

        1.84 "Trust Agreement" means the agreement or agreements executed by the Company and the Trustee which establishes a trust fund to provide for the investment, reinvestment, administration and

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distribution of contributions made under the Plan and the earnings thereon, as amended from time to time.

        1.85 "Trust Fund" means the assets of the Plan held by the Trustee pursuant to the Trust Agreement

        1.86 "Trustee" means the one or more individuals or organizations who have entered into the Trust Agreement as Trustee(s), and any duly appointed successor.

        1.87 "Valuation Date" means the date with respect to which the Trustee determines the fair market value of the assets comprising the Trust Fund or any portion thereof. The regular Valuation Date shall be the last day of each Plan Year. However, if the Committee determines that the fair market value of the assets comprising the Trust Fund (or any portion thereof) has changed substantially since the previous Valuation Date, or if the Committee determines it to be in the best interests of the Plan and the Participants to value the assets of the Trust Fund (or any portion thereof) at a time other than the regular Valuation Date, the Committee may fix, in a uniform and nondiscriminatory manner, one or more interim Valuation Dates. While applying the foregoing rules to Trust Fund assets other than open and investment companies, the Committee may, with respect to the latter, establish Valuation Dates (including valuations more often than once a day) which coincide with such investment companies' mandated valuations for public shareholders generally.

        1.88 "Voluntary Contribution" means a contribution made to the Plan by or on behalf of a Participant pursuant to Section 3.1 that is included in the Participant's gross income for the year in which made.

        1.89 "Voluntary Contribution Account" means the Account established under Section 5.1 for a Participant, the balance of which is attributable to the Participant's Voluntary Contributions and the earnings and losses of the Trust Fund with respect to such contributions.

        1.90 "Welfare Benefit Fund" means an organization described in paragraph (7), (9), (17) or (20) of Section 501 (c) of the code, a trust, corporation or other organization not exempt from federal income tax, or to the extent provided. in Treasury Regulations, any account held for an employer by any person, which is part of a plan of an employer through which the employer provides benefits to employees or their beneficiaries, other than a benefit to which Sections 83(h), 404 (determined without regard to Section 404(b)(2)) or 404A applies, or to which an election under Section 463 applies.

        1.91 "Year of Service" means a Plan Year in which an Employee completes at least one Hour of Service.


ARTICLE II

ELIGIBILITY TO PARTICIPATE

        2.1    Eligibility to Participate    

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        2.2    Exclusions from Participation    

        Notwithstanding the fact that an Employee would otherwise become a Participant pursuant to Section 2.1 or 2.3:

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        2.3    Participation Upon Reemployment    

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        2.4    Leased Employees    


ARTICLE III

PARTICIPANT CONTRIBUTIONS

        3.1    Voluntary Contributions    

        Each Participant who is an Employee and who is not subject to Section 2.2 may, if permitted by the Company, make Voluntary Contributions during the Plan Year through payroll deductions or in a lump sum in such amount as such Participant may elect, provided that the amount of such contributions, when added to the contributions previously made by the Participant, if any, and reduced by any amounts withdrawn under Section 3.2, does not exceed 10% of the total Compensation of the Participant since becoming a Participant, and provided, further, that if the Affiliated Group maintained or maintains any other Qualified Plan, the total amount that may be contributed by the Participant to the Plan and such other Qualified Plan shall not exceed 10% of the total Compensation of the Participant since becoming a Participant in this Plan and all other such Qualified Plans. Voluntary Contributions are also subject to the limitations set forth in Section 4.13, 5.3 and 8.1(c)(2)(A). No Voluntary Contributions can be made to the Plan on or after January 1, 2002.

        3.2    Withdrawal of Participant Contributions    

        Upon application to the Committee, a Participant may withdraw an amount from his Voluntary Contribution Account not to exceed the fair market value of his Voluntary Contribution Account as of the Valuation Date preceding his application for withdrawal, excluding therefrom the unpaid principal balance of any outstanding loans to the Participant secured by his Voluntary Contribution Account pursuant to Section 11.2. Distribution of the amount requested and permitted to be distributed hereunder shall be made to the Participant as soon as it is administratively feasible to do so after Participant's application for withdrawal. Notwithstanding the foregoing, no withdrawal can be made of any portion of a Participant's Voluntary Contribution Account invested in the New Company Stock Fund.

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        3.3    Rollover and Transfer Contributions    

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ARTICLE IV

PARTICIPATING COMPANY CONTRIBUTIONS

        4.1    Contribution of Deferrals    

        Subject to the limitations set forth in this Article 4 and in Section 5.3, each Participating Company shall pay to the Trustee the Deferrals made for each Plan Year by Participants while they were employed with that Participating Company. The Committee shall establish procedures under which: (1) each Participant shall specify the portion of his Compensation which is to be deferred, and (2) such Deferrals are to be deposited with the Trustee as contributions to the Plan. The Committee has the authority and discretion to limit any Participant's individual Deferrals, if necessary to ensure compliance with this Article 4, the rules and restrictions of Sections 401(k), 404, and 415 of the Code and the regulations promulgated thereunder or, if desirable, for administrative reasons. For the latter purpose, the Committee may, without limitation, limit Deferrals to at least 1% of Compensation, or not more than 50% of Compensation, or impose other nondiscriminatory limitations.

        4.2    Matching Profit Sharing Contribution    

        In addition to the contribution described in Section 4.1 and subject to the limitations set forth in this Article 4 and in Section 5.3, each Participating Company may pay to the Trustee, on behalf of each Participant who makes Deferrals during the Plan Year and is employed by the Participating Company on the last day of the Plan Year (within the meaning of Section 5.2(a)(2)(C)), a Matching Profit Sharing Contribution. Matching Profit Sharing Contributions shall equal a uniform percentage of all such Participants' Deferrals during the Plan Year, such percentage to be determined by the company in its complete discretion for such Plan Year, subject to the limitation that the Matching Profit Sharing Contribution made on behalf of a Participant for a Plan Year shall not exceed 5% of such Participant's Compensation for such Plan Year.

        A Matching Profit Sharing Contribution for the Plan Year ended December 31, 2001 shall be made for Participants employed by the Fleet Management Division who were hired by that Division prior to July 1, 2001 and were actively employed by that Division on December 31, 2001. The amount of the contribution will equal the lesser of (a) 50 percent of each such Participant's Deferrals for the Plan Year or (b) 2.5 percent of such Participant's Compensation not in excess of $53,560 (for a maximum Matching Profit Sharing Contribution per Participant of $1,339).

        A Matching Profit Sharing Contribution for the Plan Year ended December 31, 2002 shall be made for Participants employed by the Fleet Management Division who were hired by that Division prior to July 1, 2002 and were actively employed by that Division on December 31, 2002. The amount of the contribution will equal the lesser of (a) 50 percent of each such Participant's Deferrals for the Plan Year or (b) 2.5 percent of such Participant's Compensation for the Plan Year not in excess of $54,900 (for a maximum Matching Profit Sharing Contribution per Participant of $1,372.50).

        4.3    Discretionary Profit Sharing Contribution    

        In addition to the contribution described in Sections 4.2, each Participating Company may pay to the Trustee as a Profit Sharing Contribution for a Plan Year such an amount, if any, as may be determined by the Board of Directors of such Participating Company.

        4.4    Discretionary Contributions; Form and Time of Payment    

        No Participating Company shall be required to make a Matching Profit Sharing Contribution or a Profit Sharing Contribution for any Plan Year, and each Participating Company's Board of Directors shall have the sole discretion to determine whether any such Contribution shall be made for a Plan Year. Prior to the date of the Merger, Matching Profit Sharing Contributions and Company Contributions may be made in whole or in part in Old Company Stock. A Participating Company's

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contribution of a Participant's Deferrals to the Plan pursuant to Section 4.1 shall be paid to the Trustee as soon as administratively possible after they are withheld from the Participant's Compensation; provided, however, that such contribution shall be made no later than the fifteenth business day of the month following the month in which such amount would otherwise have been payable to the Participant in cash, or as of such earlier or later date (in the case of any available extensions of time) as may be required or permitted by regulations issued pursuant to ERISA. A Participating Company's Contributions pursuant to Section 4 .2 or 4 .3 shall be paid to the Trustee prior to the deadline, as extended, for the filing of the Company's Federal Income Tax Return.

        4.5    Return of Excess Deferrals    

        The aggregate Deferrals of any Participant for any calendar year, together with his elective deferrals under any other plan or arrangement to which section 402(g) of the Code applies and that is maintained by an Affiliated Company, shall not exceed $7,000 (or such larger amount as may be adopted by the Commissioner of Internal Revenue to reflect a cost-of - -living adjustment). To the extent necessary to satisfy this limitation for any year, (1) Deferrals and such other elective deferrals may be prospectively restricted; and (2) after any such prospective restriction, the Excess Deferrals and excess elective deferrals under such other plan or arrangement (with earnings thereon, but reduced by any amounts previously distributed as Excess Contributions for the year) shall be paid to the Participant on or before the April 15 next following the calendar year in which such contributions were made. in the event that the aggregate Deferrals of any Participant for any calendar year, together with any other elective deferrals (within the meaning of section 402(g) (3) of the Code) under all plans, contracts or arrangements of an Affiliated Company, exceed $7,000 (or such larger amount as may be adopted by the Commissioner of Internal Revenue to reflect a cost-of-living adjustment), then the Participant may designate all or a portion of such Excess Deferrals as attributable to this Plan and may request a refund of such portion by notifying the Company in writing on or before the March 1 next following the close of such calendar year. If timely notice is received by the Company, then such portion of the Excess Deferrals, and any income or loss allocable to such portion, shall be refunded to the Participant not later than the April 15 next following the close of such calendar year. Any Excess Deferrals distributed pursuant to this Section 4.5 shall not be included in Deferrals that attract a Matching Profit Sharing Contribution under Section 4.2.

        Effective for Plan Years beginning on or after January 1, 2002, no Participant shall be permitted to have Deferrals made under this Plan, or any other qualified plan maintained by the Company during any taxable year, in excess of the dollar limitation contained in Section 402(g) of the Code in effect for such taxable year, except to the extent permitted under any provisions of this Plan that provide for catch-up contributions under Section 414(v) of the Code, if applicable.

        4.6    Average Deferral Percentage Limitation    

        The Plan shall satisfy the average deferral percentage test, as provided in section 401(k)(3) of the Code and section 1.401(k)-1 of the regulations issued thereunder. Subject to the special rules described in Section 4.11, the Aggregate 401(k) Contributions of Highly Compensated Employees shall not exceed the limits described below:

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        4.7    Allocation of Excess Contributions to Highly Compensated Employees.    

        Excess Contributions for Plan Years beginning on or after January 1, 1997 shall be determined by the Committee in accordance with this Section 4.7. The Committee shall calculate a tentative reduction amount to the Deferrals of the Highly Compensated Employee(s) with the highest Actual Deferral Percentage equal to the amount which, if it were actually reduced, would enable the Plan to meet the limits in Section 4.6(c) above, or to cause the Actual Deferral Percentage of such Highly Compensated Employee(s) to equal the Actual Deferral Percentage of the Highly Compensated Employee(s) with the

20



next-highest Actual Deferral Percentage, and the process shall be repeated until the limits in Section 4.6(c) above are satisfied. The aggregate amount of the tentative reduction amounts in the preceding sentence shall constitute "Refundable Contributions." The entire aggregate amount of the Refundable Contributions shall be refunded to Highly Compensated Employees (as set forth in Section 4.6(d)(ii)), or recharacterized as after-tax contributions (as set forth in Section 4.6(d)(i)). The amount to be refunded to each Highly Compensated Employee (or recharacterized) (which shall constitute his Excess Contributions) shall be determined as follows: (i) the Deferrals of the Highly Compensated Employee(s) with the highest dollar amount of Deferrals shall be refunded (or recharacterized) to the extent that there are Refundable Contributions or to the extent necessary to cause the dollar amount of Deferrals of such Highly Compensated Employee(s) to equal the dollar amount of Deferrals of the Highly Compensated Employee(s) with the next-highest Deferrals, and (ii) the process in the foregoing clause shall be repeated until the total amount of Deferrals refunded (or recharacterized) equals the total amount of Refundable Contributions. The Committee will not be liable to any Participant (or his Beneficiary, if applicable) for any losses caused by inaccurately estimating or calculating the amount of any Participant's Excess Contributions and earnings attributable to the Deferrals.

        4.8    Distribution of Excess Contributions    

        Excess Contributions allocated to Highly Compensated Employees for the Plan Year pursuant to Section 4.7, together with any income or loss allocable to such Excess Contributions, shall be distributed to such Highly Compensated Employees not later than March is next following the close of such Plan Year (in order to avoid a 10% excise tax under Section 4979 of the Code), if possible, and in any event not later than December 31 next following the close of such Plan Year. The distributed Excess Contributions shall be reduced by any Excess Deferrals previously distributed pursuant to Section 4.5 to such Highly Compensated Employee for the Plan Year of the Excess Contributions. Any Deferrals distributed pursuant to this Section 4.8 shall not be included in the Deferrals that attract a Matching Profit Sharing Contribution under Section 4.2 of the Plan.

        4.9    Qualified Matching Profit Sharing Contributions    

        The Company, in its sole discretion, may include all or a portion of the Matching Profit Sharing Contribution for a Plan Year in Aggregate 401(k) Contributions taken into account in applying the Average Deferral Percentage limitation described in Section 4.6 for such Plan Year, provided that the requirements of Treasury Regulation section 1.401(k)-1(b)(5) are satisfied.

        4.10    Corrective Qualified Non-Elective Contributions    

        In order to satisfy (or partially satisfy) the Average Deferral Percentage limitation described in Section 4.6, the Average Contribution Percentage limitation described in Section 4.13 or the multiple-use limitation described in Section 4.20 (or more than one of such limitations) the Company, in its sole discretion, may make a Qualified Non-Elective Contribution to the Plan. Any such Qualified Non-Elective Contribution contributed anew to the Plan shall be allocated, in a manner determined by the Company, to the Deferral Accounts of such Non-highly Compensated Employees as the Company selects. Such Qualified Non-Elective Contributions shall be paid to the Trustee no later than 12 months after the end of the Plan Year that is taken into account in determining the applicable percentage for Non-highly Compensated Employees under Section 4.6(c) or Section 4.13(c), whichever is applicable, and shall be allocated to the Accounts of Non-highly Compensated Employees as of the last day of such Plan Year. Qualified Non-Elective Contributions contributed anew to the Plan shall be 100% vested and nonforfeitable. Qualified Non-Elective Contributions shall be subject to the same distribution restrictions as Participant Deferrals. As an alternative to making a new Qualified Non-Elective Contribution to the Plan, the Company may redesignate a vested Profit-Sharing Contribution as a Qualified Non-Elective Contribution under the Plan; provided that the redesignated Profit-Sharing Contribution shall remain credited to the Account of the Participant whose Profit-

21



Sharing Contribution is being redesignated. The Company, in its sole discretion, may include all or a portion of the Qualified Non-Elective Contributions for a Plan Year in Aggregate 401(k) Contributions taken into account in applying the Average Deferral Percentage limitation described in Section 4.6 for such Plan Year, provided that the requirements of Treasury Regulation section 1.401(k)1(b)(5) are satisfied.

        4.11    Special Rules    

        The following special rules shall apply for purposes of this Article 4:

        4.12    Recordkeeping    

        The Company shall maintain records to demonstrate compliance with the nondiscrimination requirements of section 401(k) of the Code, including the extent to which Qualified Non-Elective Contributions and Qualified Matching Profit Sharing Contributions are taken into account.

        4.13    Average Contribution Percentage Limitation    

        The Plan shall satisfy the average contribution percentage test, as provided in section 401(m)(2) of the Code and section 1.401(m)-l of the regulations issued thereunder. Subject to the special rules

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described in Section 4.18, the Aggregate 401(m) Contributions of Highly Compensated Employees shall not exceed the limits described below:

        Notwithstanding the foregoing, this Section 4.13(c) will be applied for Plan Year 1998 by determining the Average Contribution Percentage for Nonhighly Compensated Employees for the same Plan Year. Notwithstanding Section 4.13(a), no Actual Contribution Percentage shall be determined for an individual who did not receive any Matching Profit Sharing Contribution for the Plan Year because the Plan requires that the individual perform a certain amount of service or be employed on the last day of the Plan Year and such individual failed to meet such requirement. Such an individual shall be disregarded in performing the test under this section.

        4.14    Allocation of Excess Aggregate Contributions to Highly Compensated Employees    

        Excess Aggregate Contributions for Plan Years beginning on or after January 1, 1997 shall be determined by the Committee in accordance with this Section 4.14. The Committee shall calculate a tentative reduction amount to the Matching Profit Sharing Contributions and/or Voluntary Contributions made with respect to the Highly Compensated Employee(s) with the highest contribution percentage equal to the amount which, if it were actually reduced, would enable the Plan to meet the limits in Section 4.13(c) above, or to cause the Actual Contribution Percentage of such Highly Compensated Employee(s) to equal the Actual Contribution Percentage of the Highly Compensated Employee(s) with the next-highest contribution percentage, and the process shall be repeated until the limits in Section 4.13 (c) above are satisfied. The aggregate amount of the tentative reduction amounts in the preceding sentence shall constitute "Refundable Company Contributions". The entire aggregate amount of the Refundable Company Contributions shall be refunded to Highly Compensated Employees. The amount to be refunded to each Highly Compensated Employee (which shall constitute his excess Matching Profit Sharing Contributions and/or Voluntary Contributions) shall be determined as follows: (i) the Matching Profit Sharing Contributions and/or Voluntary Contributions made with respect to the Highly Compensated Employee(s) with the highest dollar amount of Matching Profit Sharing Contributions and/or Voluntary Contributions shall be refunded to the extent that there are Refundable Company Contributions or to the extent necessary to cause the dollar amount of Matching Profit Sharing Contributions and/or Voluntary Contributions of such Highly Compensated Employee(s) to equal the dollar amount of Matching Profit Sharing Contributions and/or Voluntary Contributions made with respect to the Highly Compensated Employee(s) with the next-highest Matching Profit Sharing Contributions and/or Voluntary Contributions, and (ii) the process in the foregoing clause shall

23



be repeated until the total amount of Matching Profit Sharing Contributions and/or Voluntary Contributions refunded equals the total amount of Refundable Company Contributions. The earnings attributable to excess contributions will be determined in accordance with Treasury Regulations. The Committee will not be liable to any Participant (or to his Beneficiary, if applicable) for any losses caused by inaccurately estimating or calculating the amount of any Participant's excess contributions and earnings attributable to the contributions. The amount of Excess Aggregate Contributions for a Plan Year shall be determined only after first determining the amount of Excess Contributions that are treated as after-tax employee contributions due to recharacterization.

        4.15    Distribution or Forfeiture of Excess Aggregate Contributions    

        Vested Excess Aggregate Contributions allocated to Highly Compensated Employees for the Plan Year pursuant to Section 4.14, together with any income or loss allocable to such Excess Aggregate Contributions, shall be distributed to such Highly Compensated Employees not later than the March 15 next following the close of such Plan Year, if possible, and in any event no later than the December 31 next following the close of such Plan Year. Nonvested Excess Aggregate Contributions shall be forfeited.

        4.16    Use of Deferrals    

        The Company, in its sole discretion, may include all or a portion of the Deferrals for a Plan Year in Aggregate 401(m) Contributions taken into account in applying the Average Contribution Percentage limitation described in Section 4.13 for such Plan Year, provided that the requirements of Treasury Regulation section 1.401(m)-l(b)(5) are satisfied.

        4.17    Corrective Qualified Non-Elective Contributions    

        The Company, in its sole discretion, may include all or a portion of the Qualified Non-Elective contributions authorized under Section 4.10 for a Plan Year in Aggregate 401(m) Contributions taken into account in applying the Average Contribution Percentage limitation described in Section 4.13 for such Plan Year, provided that the requirements of Treasury Regulation section 1.401(m)-l(b)(5) are satisfied. Such Qualified Non-Elective Contributions shall be paid to the Trustee no later than 12 months after the end of the Plan Year which is taken into account in determining the applicable percentage for Non-highly Compensated Employees under Section 4.13(c) and shall be allocated to the Accounts of Non-highly Compensated Employees as of the last day of such Plan Year.

        4.18    Special Rules    

        The following special rules shall apply for purposes of this Article 4:

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        4.19    Applicability of the Multiple-Use Limitation    

        The limitation described in Section 4.20 shall apply only if, for a Plan Year, after the other limitations of this Article are applied as follows:

        4.20    Multiple-Use Limitation    

        The sum of the Average Deferral Percentage and Average Compensation Percentage of Highly Compensated Employees shall not exceed the greater of (a) or (b) below.

        The multiple use test described in Treasury Regulation Section 1.401(m)-2 and this Section 4.20 of the Plan shall not apply for Plan Years beginning after December 31, 2001.

        4.21    Correction of Multiple-Use Limitation    

        To the extent necessary, the limitation of section 4.20 shall be satisfied by one or more of the following methods: (a) the allocation of corrective "Qualified Non-Elective Contributions in the manner set forth in Sections 4.10 and 4.17, or (b) the distribution or forfeiture of Aggregate 401(m) Contributions (and income or loss allocable thereto) to Highly Compensated Employees in the manner set forth in Sections 4.14 and 4.15, followed by the distribution of Aggregate 401(k) Contributions (and

25



income or loss allocable thereto) to Highly Compensated Employees in the manner set forth in Sections 4.7 and 4.8.


ARTICLE V

ACCOUNTING FOR PARTICIPANT'S INTERESTS

        5.1    Establishment of Accounts    

        The Committee shall establish for each Participant each of the applicable Accounts set forth in Section 1.1. In addition, the committee may establish one or more subaccounts of a Participant's Account, if the Committee determines that such subaccounts are necessary or appropriate in administering the Plan.

        5.2    Allocation of Contributions and Forfeitures    

26


        5.3    Code Section 415 Limitation    

27


28


29


        For purposes of this Section, all Defined Benefit Plans ever maintained by the Company or an Affiliated Company shall be treated as one Defined Benefit Plan, and all Defined Contribution Plans ever maintained by the Company or an Affiliated Company shall be treated as one Defined Contribution Plan.

        5.4    Accounting for Trust Fund Income or Losses    

        The Committee, through its accounting records, shall clearly segregate each Account hereunder and each subaccount thereof established pursuant to Section 5.1, and shall maintain a separate and distinct record of all income and losses of the Trust Fund attributable to each such Account or subaccount. For purposes of this Section, income or loss of the Trust Fund shall include any unrealized increase or decrease in the fair market value of the assets of the Trust Fund as such values are determined by the Trustee pursuant to Section 5.5.

        Except as provided in Section 5.7, the share of net income or net loss of the Trust Fund to be credited to, or deducted from, each Account of each Participant shall be the allocable portion of the net income or net loss of the Trust Fund attributable to each such Account determined by the Committee as of each Valuation Date in a uniform and nondiscriminatory manner based upon the ratio that the balance of each such Account as of the previous Valuation Date bears to all such Account balances after adjustment for withdrawals, distributions and other additions or subtractions that may be appropriate.

        The share of net income or net loss to be credited to, or deducted from, any subaccount established for a Participant shall be-an allocable portion of the net income or net loss credited to or deducted from the Account under which such subaccount is established.

        5.5    Valuation of Trust Fund    

        Except as provided in Section 5.7, the fair market value of the total net assets comprising the Trust Fund shall be determined by the Trustee as of each Valuation Date. The Participating Companies, the Committee and the Trustee do not guarantee the Participants or their Beneficiaries against loss or depreciation or fluctuation of the value of the assets comprising the Trust Fund.

        5.6    Annual Statement of Accounts    

        The Committee shall furnish each Participant or his Beneficiary, at least annually, a statement (referred to as the "Annual Statement") showing: (a) the value of his Accounts at the end of the Plan Year, (b) the allocations to and distributions from his Accounts during the Plan Year, and (c) his vested and nonforfeitable interest in his Accounts at the end of the Plan Year, provided, however, that no

30



Annual Statement shall be provided to a Participant or his Beneficiary after such Participant's entire vested and nonforfeitable interest in his Accounts has been distributed to the Participant or his Beneficiary. In addition, the Annual Statement shall include other information required to be furnished to each Participant or his Beneficiary under applicable disclosure or reporting laws.

        5.7    Directed Accounts and Investment Options    

        Until otherwise provided by written resolution of the Committee, each Participant shall be permitted to direct the investment of all of his respective Accounts or subaccounts thereof as among investment vehicles created within the Trust Fund by the Committee. Such Accounts or subaccounts shall constitute Directed Accounts, and shall be subject to Participant investment direction under such procedures established by the Committee which are nondiscriminatory and acceptable to the Trustee. Such Accounts and subaccounts will be credited with only the income or losses directly attributable to their respective assets, including income and losses from the investment vehicles established by the Committee, and selected by the Participant for investment of Directed Accounts, in which case income or losses of such subfunds shall be allocated ratably to Directed Accounts invested therein, except as otherwise provided herein. Neither the Company, the Committee, nor the Trustee warrant, guarantee, or represent that the value of a Participant's Accounts at any time will equal or exceed the amount previously allocated or contributed thereto.

        5.8    Investment Funds    

        The assets of this Plan shall be invested in such categories of assets as shall be determined by the Committee and announced and made available on an equal basis to all Participants. Investment vehicles shall be designated only by the Committee. When the Trustee receives funds to be invested, such funds may be held as uninvested cash pending investment in one or more of the investment vehicles designated by the Committee.

        5.9    Old Company Stock Fund    

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        5.10    Investment Direction for all Funds    

        Each Participant shall instruct the Trustee at the time and on the form prescribed by the Committee as to the investment of all future contributions allocated to his Accounts which are available to be invested in investment vehicles. The initial investments made at the direction of the Participant shall continue until changed by the Participant in a subsequent election period.

        5.11    Voting Rights    

        The voting rights to stock held in the Old Company Stock Fund shall be exercised by the Trustee in accordance with the direction of the Participants holding units in the Old Company Stock Fund with respect to the Old Company Stock underlying such units on the basis of one vote for each whole unit so held. With respect to the election of directors and the appointment of the Company's independent accountants, the Committee, subject to its duties under ERISA, shall direct the Trustee to vote the shares of Old Company Stock for which the Trustee does not receive a Participant's direction in the same proportion as the shares of Old Company Stock for which the Trustee did receive Participants' directions. With respect to other matters for which stockholder approval is solicited, the Executive Committee of the Board shall, in its sole discretion, direct the Trustee with respect to the voting of shares of Old Company Stock for which the Trustee does not receive a Participant's direction. This solicitation of the direction of the Participants shall be at the time and in such manner as shall be in accordance with procedures set by the Company from time to time providing adequate time to the extent possible to receive a reply from all such Participants holding an interest in such Funds.

        5.12    ERISA 404(c) Requirements    

        The Plan is intended to comply with ERISA Section 404(c). Accordingly, the Plan is intended to satisfy, among other requirements, subsections (a), (b) and (c) below. Notwithstanding the foregoing, ERISA Section 404(c)(1)(B) will not apply to a Participant's election to acquire or dispose of interests in the New Company Stock Fund before New Company Stock is publicly traded on a national exchange or other generally recognized market and is traded with sufficient frequency and in sufficient volume to assure that Participant directions to buy or sell interests in the New Company Stock Fund may be acted upon promptly and efficiently.

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        5.13    Allocation of 2000 Restoration Payments    

        The Company's contributions, and earnings thereof, during Plan Year 2000 (the "2000 Restoration Amount') to reimburse Participant loan fees to certain Participants shall be allocated to Participants' Deferral Accounts, as deemed earnings for Plan Year 2000 as of December 31, 2000, which allocation shall not be deemed part of the Annual Addition for Plan Year 2000, in the manner set forth in this Section 5.13. The Committee shall determine in good faith the number of Participant loans originated under the Plan from January 1, 1993 through July 31, 1998, and the Participant to whom each loan was made. The 2000 Restoration Amount shall be divided by the number of such loans, and the result shall be allocated to the Deferral Account of each Participant associated with each such loan.

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ARTICLE VI

VESTING

        6.1    Company Contribution Accounts    

        6.2    Aggregation of Years of Service for Vesting    

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        6.3    Other Accounts    

        The interest of each Participant in his Accounts, other than the Accounts referenced in Section 6.1, if one or more such Accounts have been established for the Participant pursuant to Section 5.1, shall at all times be 100% vested and nonforfeitable.

        6.4    Forfeiture of Nonvested Amounts    

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X = P (AB + R × D) (R × D)

        6.5    Unclaimed Benefits    

        If the Committee, acting upon information available to it, cannot locate a person entitled to receive a benefit under the Plan within a reasonable period of time (as determined by the Committee in its sole discretion) after the benefit becomes payable and such person has not contacted the Committee or the Trustee concerning the distribution by the end of such period, the amount of the benefit shall be treated as a forfeiture and shall be applied in the manner described in Section 6.6. If, prior to the date final distributions are made from the Trust Fund following termination of the Plan, a person who was entitled to a benefit which has been forfeited pursuant to this Section makes a claim to the Committee or the Trustee for such benefit, such person shall be entitled to receive the amount of such benefit as soon as administratively feasible after such claim is received. The amount of the previously forfeited benefit shall be reinstated.

        6.6    Application of Forfeited Amounts    

        Subject to Section 6.4(b) (iii), the amount of a Participant's Company Contribution Account which is forfeited pursuant to Section 6.4 or 6.5 shall be allocated in accordance with Section 5.2 among the Company Contribution Accounts of Eligible Participants for the Plan Year in which the forfeiture occurs. The amount forfeited from Matching Profit Sharing Contribution Accounts shall be allocated as provided in Section 5.2(b).

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ARTICLE VII

DESIGNATION OF BENEFICIARY

        7.1    Designation of Beneficiary    

        7.2    Failure to Designate Beneficiary    

        Effective January 1, 1996, in the event a Participant has not designated a Beneficiary, or in the event no Beneficiary survives a Participant, the distribution of the Participant's interest in the Trust Fund (if any) upon his death shall be made: (a) to the Participant's spouse, if living, (b) if his spouse is not then living, to his then living issue by right of representation, (c) if neither his spouse nor his issue are then living, to his then living parents, and (d) if none of the above are then living, to his estate. In the event a Participant's death occurs prior to January 1, 1996, the order of any such distribution shall be subject to the provisions of the prior plan document.


ARTICLE VIII

DISTRIBUTIONS FROM THE TRUST FUND

        8.1    Events Permitting Distributions    

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        This Section 8.1(d) will not apply in Plan Years beginning on or after January 1, 2002.

        8.2    Rules Governing Distributions    

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        8.3    Valuation of Interest    

        The interest of a Participant in his Accounts and any subaccounts thereof which shall have become distributable hereunder shall be valued as of the Valuation Date immediately preceding the date such interest is to be distributed, provided, however, that there shall be added to the value of the Participant's Accounts the fair market value of any amounts allocated to his Accounts pursuant to Article 5 after such Valuation Date. Section 5.9 shall govern the valuation of Old Company Stock for valuation purposes.

        8.4    Characterization of Disability Distribution    

        In the event that a Participant receives a distribution by reason of the Participant's Disability, the benefit he receives hereunder shall be considered a payment for the loss of use of a bodily function unrelated to the period of his absence from work under Section 105(c) of the Code. The benefit shall be distributed to the Participant as soon as possible under the Plan, consistent with any requests or elections made hereunder by the Participant.

        8.5    Payment of Benefits to Alternate Payee    

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        8.6    Direct Rollovers    

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ARTICLE IX

TOP-HEAVY PROVISIONS

        9.1    Priority over other Plan Provisions    

        If the Plan is or becomes a Top-Heavy Plan, the provisions of this Article 9 will supersede any conflicting provisions of the Plan. However, the provisions of this Article shall not operate to increase the rights or benefits of Participants under the Plan except to the extent required by Section 416 of the Code and other provisions of law and the Treasury Regulations applicable to "top-heavy" plans, as that term is defined in Section 416(g) of the code, taking into account amendments of Section 416 of the Code and such other provisions of law which are enacted after TEFRA.

        9.2    Compensation Taken Into Account    

        For any Plan Year in which the Plan is a Top-Heavy Plan, the amount of each Participant's Compensation taken into account for purposes of determining allocations under the Plan shall not exceed the first $200,000 (effective January 1, 1994, $150,000, or such larger amount as may be prescribed by the Secretary of the Treasury or his delegate) of such Participant's Section 415 Compensation for such Plan Year.

        9.3    Minimum Allocation    

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        9.4    Modification of Aggregate Benefit Limit    

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        9.5    Minimum Vesting    

        The vesting schedule set forth below shall apply for any Plan Year in which Plan is a Top-Heavy Plan:

Completed Years of Service

  Percentage
 
2   20 %
3   40 %
4   60 %
5   100 %

        No decrease in a Participant's vested Percentage shall occur in the event the Plan's status as a Top-Heavy Plan changes for any Plan Year.

        Notwithstanding the above, this Section shall not apply to the Account balances of any Employee who does not have an Hour of Service after the Plan has initially become a Top-Heavy Plan. Such Employee's vested Account shall be determined without regard to this section.


ARTICLE X

ADMINISTRATIVE PROCEDURES

        10.1    Appointment of Committee Members    

        The Board shall appoint an Administrative Committee consisting of three or more members, to hold office at the pleasure of the Board. Members of the Committee shall not be required to be Employees or Participants. Any member may resign by giving notice in writing, filed with the Board. Notwithstanding the above, if any Committee member ceases to be an Employee while a member, such individual shall cease to be a Committee member upon such individual's date of termination or retirement unless otherwise determined by the Board.

        10.2    Officers and Employees of the Committee    

        Unless designated by the Board, the Committee shall choose from its members a Chairman and a Secretary. The Chairman may appoint one or more Assistant Secretaries for the Committee who may, but need not, be members of the Committee. The Secretary (or an Assistant Secretary) shall keep a record of the Committee's proceedings and all dates, records and documents pertaining to the Committee's administration of the Plan. The Committee may employ and suitably compensate such persons or organizations to render advice with respect to the duties of the Committee under the Plan as the Committee determines to be necessary or appropriate.

        10.3    Action of the Committee    

        Action of the Committee may be taken with or without a meeting of Committee members, provided, however, that any action shall be taken only upon the vote or other affirmative expression of a majority of the Committee's members qualified to vote with respect to such action. The Chairman or the Secretary of the Committee may execute any certificate or other written direction on behalf of the Committee. In the event the Committee members qualified to vote on any question are unable to determine such question by a majority vote or other affirmative expression of a majority of the

45



Committee members qualified to vote on such question, such question shall be determined by the Board, or some person designated by the Board.

        10.4    Disqualification of Committee Member    

        A member of the Committee who is a Participant shall not vote on any question relating specifically to himself.

        10.5    Expenses of the Committee    

        The expenses of the Committee properly and actually incurred in the performance of its duties under the Plan shall be paid from the Trust Fund, unless the Participating Companies in their discretion pay such expenses.

        10.6    Bonding and Compensation    

        The members of the Committee shall serve without bond, except as may be required by ERISA, and without compensation for their services as Committee members.

        10.7    General Powers and Duties of the Committee    

        The committee shall have full power to administer the Plan and the Trust Agreement and to construe and apply their provisions. For purposes of ERISA, the Committee shall be the named fiduciary with respect to the operation and administration of the Plan and the Trust Agreement. In addition, the Committee shall have the powers and authority granted by the terms of the Trust Agreement.

        The Committee, and all other persons with discretionary control respecting the operation, administration, control, and/or management of the Plan, the Trust Agreement, and/or the Trust Fund, shall perform their duties under the Plan and the Trust Agreement solely in the interests of Participants and their Beneficiaries, and shall use the care, prudence and diligence under the circumstances then prevailing that a prudent man acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of a like character and with like aims.

        10.8    Specific Powers and Duties of the Committee    

        The Committee shall administer the Plan and have all powers necessary to accomplish that purpose, including the following:

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        10.9    Allocation of Fiduciary Responsibility    

        The Committee from time to time may allocate to one or more of its members and/or may delegate to any other persons or organizations any of its rights, powers, duties and responsibilities of the Committee with respect to the operation and administration of the Plan and the Trust Agreement that are permitted to be so delegated under ERISA. Any such allocation or delegation shall be made in writing, shall be reviewed periodically by the Committee, and shall be terminable upon such notice as the Committee in its discretion deems reasonable and proper under the circumstances.

        Whenever a person or organization (the "Delegating Party") has the power and authority under the Plan or the Trust Agreement to delegate discretionary power and authority respecting the control, management, operation or administration of the Plan or any portion of the Trust Fund to another person or organization (the "Appointee"), the Delegating Party's responsibility with respect to such delegation is limited to the selection of the Appointee and the periodic review of the Appointee's performance and compliance with applicable law and regulations. Any breach of fiduciary responsibility by the Appointee which is not proximately caused by the Delegating Party's failure to properly select or supervise the Appointee, and in which breach the Delegating Party does not otherwise participate, will not be considered a breach by the Delegating Party.

        10.10    Information to be Submitted to the Committee    

        To enable the Committee to perform its functions, the Participating Companies shall supply full and timely information to the Committee on all matters relating to Employees and Participants as the Committee may require, and shall maintain such other records as the Committee may determine are necessary, including:

        10.11    Allocation of Fiduciary Responsibility    

        The Committee from time to time may allocate to one or more of its members and/or may delegate to any other persons or organizations any of its rights, powers, duties and responsibilities of the Committee with respect to the operation and administration of the Plan and the Trust Agreement

47



that are permitted to be so delegated under ERISA. Any such allocation or delegation shall be made in writing, shall be reviewed periodically by the Committee, and shall be terminable upon such notice as the Committee in its discretion deems reasonable and proper under the circumstances.

        Whenever a person or organization (the "Delegating Party") has the power and authority under the Plan or the Trust Agreement to delegate discretionary' power and authority respecting the control, management, operation or administration of the Plan or any portion of the Trust Fund to another person or organization (the "Appointee"), the Delegating Party, s responsibility with respect to such delegation is limited to the selection of the Appointee and the periodic review of the Appointee's performance and compliance with applicable law and regulations. Any breach of fiduciary responsibility by the Appointee which is not proximately caused by the Delegating Party's failure to properly select or supervise the Appointee, and in which breach the Delegating Party does not otherwise participate, will not be considered a breach by the Delegating Party.

        10.12    Information to be Submitted to the Committee    

        To enable the Committee to perform its functions, the Participating Companies shall supply full and timely information to the Committee on all matters relating to Employees and Participants as the Committee may require, and shall maintain such other records as the Committee may determine are necessary in order to determine the benefits due or which may become due to Participants or their Beneficiaries under the Plan. In addition, the Committee shall make arrangements to obtain from other Affiliated Companies such records and other information with respect to each Employee as are necessary for the Committee to determine benefits hereunder.

        10.13    Notices, Statements and Reports    

        The Company shall be the "administrator" of the Plan as defined in Section 3(16) (A) of ERISA for purposes of the reporting and disclosure requirements imposed by ERISA and the Code. The committee shall assist the Company, as requested, in complying with such reporting and disclosure requirements.

        10.14    Claims Procedure    

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        10.15    Service of Process    

        The Committee may from time to time designate an agent of the n for the service of legal process. The Committee shall cause h agent to be identified in materials it distributes or causes to be distributed when such identification is required under applicable law. In the absence of such a designation, the Company shall be the agent of the Plan for the service of legal process.

        10.16    Correction of Participants' Accounts    

        If an error or omission is discovered in the Accounts of a participant, or in the amount distributed to a Participant, the Committee shall make such equitable adjustments in the records of the Plan as may be necessary or appropriate to correct such error omission as of the Plan Year in which such error or omission is covered. Further, a Participating Company may, in its discretion, make a special contribution to the Plan which shall be allocated by the Committee only to the Accounts of one or more Participants to correct such error or omission.

        10.17    Payment to Minors or Persons Under Legal Disability    

        If any benefit becomes payable to a minor or to a person under legal disability, payment of such benefit shall be made only to the conservator or the guardian of the estate of such person appointed by a court of competent jurisdiction or such other person in such other manner as the Committee determines is necessary to ensure that the payment will legally discharge the Plan's obligation to such person.

        10.18    Uniform Application of Rules and Policies    

        The Committee in exercising its discretion granted under any the provisions of the Plan or the Trust Agreement shall do so in accordance with rules and policies established by it which 11 be uniformly applicable to all Participants.

        10.19    Funding Policy    

        The Plan is to be funded through Participating Company contributions, voluntary Participant contributions, and earnings on such contributions; and benefits shall be paid to Participants and Beneficiaries as provided in the Plan. The Committee shall determine investment policies from time to time that are consistent with the consistent of the Plan.


ARTICLE XI

INVESTMENT OF PLAN ASSETS

        11.1    Trust Fund Investments    

        The investment and reinvestment of Plan assets held in the Trust Fund shall be governed by the terms of the Trust Agreement executed in connection with the Plan.

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        11.2    Loans to Participants    

        Upon application to the Committee on a form provided by the Committee, any Participant that is actively employed by a Participating Company may request a loan from his Accounts, the terms and conditions of which shall be determined pursuant to the provisions of this Section. If the Committee approves such application, the loan shall be made from the Participant's Accounts in accordance with the order of priority established by the Committee, and shall be withdrawn from each investment vehicle in which an Account is invested in proportion to the current balance of the investment vehicles within such Account. Notwithstanding the foregoing, no loan can be made from any portion of a Participant's Accounts that are invested in the New Company Stock Fund.

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ARTICLE XII

TERMINATION, PARTIAL TERMINATION AND
COMPLETE DISCONTINUANCE OF CONTRIBUTIONS

        12.1    Continuance of Plan    

        The Participating Companies expect to continue this Plan indefinitely, but they do not assume an individual or collective contractual obligation to do so, and the right is reserved to the Company, by action of the Board, through adoption of a resolution in accordance with the Company's bylaws to terminate the Plan or to reduce, suspend or completely discontinue contributions thereto at any time. Any failure by the Company to contribute to the Trust in any year when no contribution is required under this Plan shall not of itself be a discontinuance of contributions under this Plan. In addition, subject to Section 12.4, any Participating Company at any time may discontinue its participation in the Plan with respect to its Employees.

        12.2    Complete Vesting    

        If the Plan is terminated, or if there is a complete discontinuance of contributions under the Plan by the Participating Companies, the amounts allocated or to be allocated to the Company Contribution Accounts and Matching Accounts of all affected Participants shall become 100% vested and nonforfeitable without regard to their Years of Service.

        In the event of a partial termination of the Plan, the amounts allocable to the Company Contribution Accounts and Matching Accounts of those Participants who cease to participate on account of the facts and circumstances which result in the partial termination shall become 100% vested and nonforfeitable without regard to their Years of Service.

        12.3    Disposition of the Trust Fund    

        If the Plan is terminated, or if there is complete discontinuance of contributions to the Plan, the Committee shall instruct the Trustee either: (a) to continue to administer the Plan and pay benefits in accordance with the Plan until the Trust Fund has been depleted, or (b) to liquidate the assets remaining in the Trust Fund. if the Trust Fund is liquidated, the Committee shall make, after deducting estimated expenses for liquidation and distribution, the allocations required under the Plan as though the date of completion of liquidation were a Valuation Date. The Trustee shall distribute to each Participant the amount credited to his Accounts as of the date of completion of the liquidation.

        12.4    Withdrawal by Participating Company    

        A Participating Company may withdraw from participation in the Plan or completely discontinue contributions to the Plan only with the approval of the Board. If any Participating Company withdraws from the Plan or completely discontinues contributions to the Plan, a copy of the resolutions of the Board of Directors of such Participating Company adopting such action, certified by the secretary of such Board of Directors and reflecting approval by the Board, shall be delivered to the Committee as soon as it is administratively feasible to do so, and the Committee shall communicate such action to the Trustee and to the Employees of the Participating Company.

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ARTICLE XIII

AMENDMENT OR TERMINATION OF THE PLAN

        13.1    Right of Company to Amend Plan    

        The Company reserves the right to amend the Plan in the manner set forth in Section 13.2 at any time and from time to time to the extent it may deem advisable or appropriate, provided, however, that:

        13.2    Amendment Procedure    

        Any amendment to the Plan shall be made by adoption of same pursuant to resolutions of the Board adopted in accordance with the Company's bylaws. A certified copy of the resolutions adopting any amendment and a copy of the adopted amendment as executed by the individual authorized by the resolutions on behalf of the Company shall be delivered to the Committee and to the Trustee.

        Upon such action by the Board, the Plan shall be deemed amended as of the date specified as the effective date by such Board action or in the instrument of amendment. The effective date of any amendment may be before, on or after the date of such Board action.

        The Board may delegate to an officer of the Company by written resolution the power to amend the Plan by such officer's execution of a written amendment.

        13.3    Effect on Other Participating Companies    

        Unless an amendment expressly provides otherwise, all Participating Companies shall be bound by any amendment adopted pursuant to this Article 13.

        13.4    Company Not Liable for Benefits    

        No member of the Affiliated Group shall not be liable for the payments of any benefits under this Plan and all benefits hereunder shall be payable solely from the assets of the Trust except as otherwise required by ERISA.

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ARTICLE XIV

ADOPTION OF PLAN BY AFFILIATED COMPANIES

        14.1    Adoption Procedure    

        Any Affiliated Company may become a Participating Company under the Plan provided that:

        14.2    Effect of Adoption by Affiliated Company    

        An Affiliated Company which adopts the Plan pursuant to Section 14.1 shall be deemed to be a Participating Company for all purposes hereunder, unless otherwise specified in the resolutions of the Board designating the Affiliated Company as a Participating Company. In addition, the Board may provide, in its discretion and by appropriate resolutions, that the Employees of the Affiliated Company shall receive credit for their employment with the Affiliated Company prior to the date it became an Affiliated Company for purposes of determining either or both the eligibility of such Employees to participate in the Plan and the vested and nonforfeitable interest of such Employees as Participants under Article 6, provided, however, that such credit shall be applied in a uniform and nondiscriminatory manner with respect to all such Employees.

        14.3    Additional Adoption Procedure    

        An Affiliated Company may also become a Participating Company under the Plan by means of completion and execution of a signature block as set forth on a form to be determined by the Committee, entitled "Adoption and Execution the CB Richard Ellis 401(k) Plan and Trust." Such complete execution shall be deemed to have the same effect as adoption and designation by the Board pursuant to Section 14.1(a) and shall constitute the agreement of the Affiliated Company in accordance with sections 14.1(b), (c) and (d). The effect of such completion and execution of such form shall be as described in Section 14.1 and the crediting of past service with an Affiliated Company referred to in Section 14.2 may also be implemented by a written amendment executed by an authorized officer as permitted by the last sentence of Section 13.2.

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ARTICLE XV

MISCELLANEOUS

        15.1    Reversion Prohibited    

        15.2    Bonding, Insurance and Indemnity    

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        15.3    Merger, Consolidation or Transfer of Assets    

        15.4    Spendthrift Clause    

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        15.5    Rights of Participants    

        Participation in the Plan shall not give any Participant the right to be retained in the employ of the Company or any Affiliated Company or any right or interest in the Plan or the Trust Fund except as expressly provided herein.

        15.6    Gender, Tense and Headings    

        Whenever any words are used herein in the masculine gender, they shall be construed as though they were also used in the feminine gender in all cases where they would so apply. Whenever any words used herein are in the singular form, they shall be construed as though they were also used in the plural form in all cases where they would so apply.

        Headings of Articles, Sections and subsections as used herein are inserted solely for convenience and reference and constitute no part of the Plan.

        15.7    Governing Law    

        The Plan shall be construed and governed in all respects in accordance with applicable federal law and, to the extent not preempted by such federal law, in accordance with the laws of the State of California.

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ARTICLE XVI

NEW COMPANY STOCK FUND

        16.1    Definitions.    

        The following terms used in this Article XVI will have the meanings set forth below.

        16.2    Establishment of New Company Stock Fund.    

        The New Company Stock Fund is hereby established under the Trust as of the date of the Merger. The New Company Stock Fund is in addition to the investment funds established for investment of the Trust Fund. Dividends or other distributions received in cash with respect to New Company Stock will be invested in one of the other investment funds in accordance with Participant directions. Dividends and other distributions received in the form of New Company Stock will be held in the New Company Stock Fund. The Company will provide a statement, at least annually, reflecting the most recent valuation of New Company Stock allocated to a Participant's account.

        16.3    Direction to Purchase Stock.    

        A Merger Date Participant can direct that up to fifty percent of the assets allocated to his Account under the Plan as of June 1, 2001, be invested in the New Company Stock Fund. The direction must specify a whole numbers of shares of New Company Stock to be allocated to each Participant's Account. If a Merger Date Participant provides a direction with respect to more shares of New Company Stock than can be purchased with fifty percent of the assets allocated to his Account as of June 1, 2001, the direction will be effective only with respect to the maximum number of whole shares that can be purchased with such assets. The direction will not be effective unless it is in writing on forms provided by the Company and received by the Company on or before such date as the Company designates.

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        16.4    Purchase of Stock by Trustee.    

        The Trustee will purchase from CBRE Holding, Inc. the aggregate number of shares of New Company Stock set forth in effective directions received from Merger Date Participants at the Purchase Price, provided that all of the following conditions have been satisfied:

        16.5    Maximum Number of Shares.    

        Notwithstanding the foregoing, the number of shares of New Company Stock that can be purchased by the Trustee under the Plan cannot exceed 889,819 shares.

        16.6    Allocation of New Company Stock to Participants Accounts.    

        The Trustee will allocate to the accounts of each Merger Date Participant providing an effective direction pursuant to Section 16.3 the number of shares of New Company Stock subject to such direction that have been purchased by the Trustee. If the number of shares subject to effective directions by Merger Date Participants exceeds the maximum number of shares that can be purchased under Section 16.5, the number of shares to be allocated to each Merger Date Participant's accounts will be determined by multiplying the number of shares elected by each Merger Date Participant by a fraction the numerator of which is the maximum number of shares that can be purchased under Section 16.5 and the denominator of which is the aggregate number of shares subject to effective directions. The amounts allocated to the other investment funds within the Merger Date Participant's Account immediately after the Merger will be reduced pro rata by the amount needed to purchase New Company Stock. The number of shares of New Company Stock allocated to a Participant's Account shall be adjusted as appropriate if there is a stock split, reverse stock split, stock dividend, recapitalization, combination or reclassification of New Company Stock.

        16.7    Repurchase of New Company Stock.    

        The Trustee will not have the right to sell the New Company Stock allocated to a Participant's accounts to the Company or an Affiliated Company prior to a Liquidation Event, although the Committee can establish a mechanism for the purchase and sale of New Company Stock between the Accounts of electing Participants. If a Liquidation Event occurs and the Participant elects to have his interest in the New Company Stock Fund distributed in cash, the Company or an Affiliated Company will repurchase the New Company Stock allocated to the applicable Participant's accounts from the Trustee as of the Repurchase Date. The Company or an Affiliated Company will repurchase such New Company Stock for cash at a price per share equal to the Value as of the Repurchase Date. No commission can be charged with respect to the repurchase and the repurchase will satisfy the other requirements of Department of Labor Regulations Section 2550.408e.

        16.8    Plan Distributions.    

        If a Participant who is entitled to receive a distribution from the Plan following a Liquidation Event has a portion of this Account balance invested in the New Company Stock Fund, the Participant can elect within such time as designated by the Committee: (1) to have the Trustee convert the Participant's interest in the New Company Stock Fund into, and receive, such New Company Stock in-kind (with cash for any fractional shares), or (2) to have the Trustee sell the Participant's interest in the New Company Stock Fund and receive such distribution in cash. A Participant cannot elect to receive a distribution of New Company Stock, rather than cash, at any time prior to the earlier of the

59



tenth anniversary of the Merger or 180 days after an underwritten initial public offering of New Company Stock after which New Company Stock is listed on a national securities exchange or the Nasdaq National Market, unless the Participant agrees to sign a stockholders' agreement in a form to be determined by the Company.

        Notwithstanding the foregoing, any portion of a Participant's accounts under the Plan invested in the New Company Stock Fund will not be available for distribution pursuant to Section 3.2 (relating to withdrawals from the Voluntary Contribution Account), Section 8.1(b) (relating to distributions to Participants who have attained age 591/2 but not terminated employment) or Section 8.1(c) (relating to hardships), distribution to an Alternate Payee pursuant to Section 8.5 prior to a Liquidation Event or loan to the Participant pursuant to Section 11.2. Any distributions under this Section 16.8 shall satisfy the requirements of Section 401(a)(9) of the Code and regulations issued thereunder.

        16.9    Voting of New Company Stock.    

        The Trustee will vote any New Company Stock held in the Trust Fund in accordance with the provisions of this Section 16.9. Within a reasonable time before each annual or special meeting of shareholders of New Company Stock, the Company or its delegate will send to each Participant who has an investment in the New Company Stock Fund a copy of the applicable proxy solicitation material, together with a form requesting instructions for the Trustee on how to vote New Company Stock allocated to such Participant's accounts. Such Participants will also receive a notice from the Trustee explaining (i) that all shares of New Company Stock will be voted or not voted by the Trustee only in accordance with instructions provided by Participants acting in their capacity as named fiduciaries; (ii) the implications under the fiduciary responsibility provisions of ERISA of the Participant agreeing to become a named fiduciary; (iii) that by returning the proxy solicitation and pursuant thereto specifically directing the Trustee how the shares are to be voted, such Participant is consenting to his appointment as named fiduciary hereunder with respect to the shares of New Company Stock allocated to his account and, a proportionate number of shares of New Company Stock allocated to the accounts of Participants who fail to consent to their appointment as named fiduciaries; (iv) that a Participant's consent to appointment as a named fiduciary or failure to consent to such appointment shall be binding only with respect to the specific proxy solicitation; (v) that, if voting instructions for the shares of New Company Stock allocated to the Participant's account are not timely received, the Trustee shall treat the non-receipt as a refusal by the Participant to be appointed as named fiduciary with respect to that proxy solicitation. The disclosure materials provided to each Participant must include an explanation that, when the Participant agrees to become a named fiduciary with respect to the New Company Stock allocated to his account, he also is agreeing to become a named fiduciary with respect to a proportionate number of shares of New Company Stock allocated to the accounts of Participants who have declined their appointment as named fiduciaries. Upon receipt of instructions, the Trustee will vote the shares as instructed. The Trustee will maintain the instructions of each Participant in confidence. The Trustee will vote New Company Stock for which it does not receive timely voting instructions with respect to such transaction in the same proportion as the Trustee votes New Company Stock for which it does receive timely instructions; provided, however, that the Trustee will in all events exercise its voting obligations consistent with the Trustee's fiduciary duties under ERISA.

        16.10    Tender of New Company Stock.    

        The Trustee will notify each Participant whose accounts are invested in the New Company Stock Fund of each tender or exchange offer for one percent or more of the New Company Stock and will use its best efforts to distribute or cause to be distributed to each such Participant in a timely manner all information distributed to shareholders of New Company Stock in connection with any such tender or exchange offer. Each Participant will have the right from time to time with respect to the New Company Stock allocated to his accounts to instruct the Trustee in writing as to the manner in which to respond to any tender or exchange offer which shall be pending or which may be made in the future

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for all such shares or any portion thereof. Any Participant's instructions will remain in force until superseded in writing by the Participant. Such Participants will also receive a notice from the Trustee explaining that (i) all shares of New Company Stock allocated to such Participant's account and subject to the offer will be tendered or exchanged or will not be tendered or exchanged by the Trustee only in accordance with decisions made by Participants acting in their capacity as named fiduciaries; (ii) by timely returning the form and pursuant thereto specifically directing that the shares subject to the decision of the Participant either be tendered or exchanged or not tendered or exchanged, such Participant is consenting to his appointment as named fiduciary hereunder; and (iii) a Participant's consent to appointment as a named fiduciary or failure to consent to such appointment shall be binding only with respect to the specific tender or exchange offer described in the materials sent to the Participant by the Trustee. The Trustee will tender or exchange whole shares only as and to the extent so instructed and will aggregate Participants' responses with respect to fractional shares and tender or exchange fractional shares in a manner designed to comply as closely as reasonably possible with the aggregate responses of all Participants with respect to such fractional shares. Except as provided by law, if the Trustee does not receive instructions from a Participant regarding any tender or exchange offer for New Company Stock allocated to such Participant's accounts, the Trustee will have no discretion in such matter and will not tender or exchange any such shares in response thereto. Unless and until shares are tendered or exchanged, the individual instructions received by the Trustee from Participants will be held by the Trustee in strict confidence and will not be divulged or released to any person, including officers or employees of the Company or any Affiliated Company, or any other company unless consented to by the Participant or otherwise required by law; provided, however that the Trustee will advise the Company at any time upon request of the total number of shares of New Company Stock held by the Trustee not subject to instructions or tender.

        16.11    General Provisions.    

        The provisions of this Article XVI supersede any provisions of the Trust Agreement or Plan which are inconsistent with this Article XVI. To the extent, if any, permitted by ERISA, each Participant will be a named fiduciary with respect to the exercise of voting and tender or exchange offer rights for New Company Stock held in such Participant's account. Notwithstanding any provision of this Trust Agreement to the contrary and subject to all federal and state securities laws, the terms of any stockholders agreement to which the Trustee is a party and all applicable provisions of ERISA, the Trustee can sell New Company Stock to any person, including any person deemed to be a "party in interest" within the meaning of ERISA Section 3(14) or a "disqualified person" within the meaning of Code Section 4975, if the Trustee determines that such sale is necessary to fulfill the Trustee's fiduciary obligations under ERISA. The Trustee shall comply with all federal and state securities laws and with all applicable provisions of ERISA when selling such New Company Stock, including, if required, the conditions that such sale or purchase be for "adequate consideration" (as defined in Section 3(18) of ERISA), and no commission be charged when a sale of New Company Stock is made with a "party in interest" or a "disqualified person." The Company will pay any reasonable expenses incurred as a result of such sale including without limitation any expenses related to compliance with applicable law.

        Executed this              day of                         , 2001.

    "Company"

 

 

CB Richard Ellis Services, Inc.



 

 

 
    By     

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APPENDIX I
to the CB Richard Ellis 401(k) Plan

        The following provisions shall be in effect from April 19, 1989 through the earlier of any date indicated in such provision or December 31, 1995, and shall be deleted from the Plan effective January 1, 1996:

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APPENDIX II

PREAMBLE

        This Appendix II to the Plan, along with certain provisions of the Plan previously adopted, reflect certain provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001 ("EGTRRA"). This Appendix II and the applicable provisions of the Plan previously adopted are intended as good faith compliance with the requirements of EGTRRA and are to be construed in accordance with EGTRRA and guidance issued thereunder. Except as otherwise provided, this Appendix II shall be effective as of January 1, 2002. This Appendix II shall supersede the provisions of the Plan to the extent those provisions are inconsistent with the provisions of this Appendix II.

1.
CATCH-UP CONTRIBUTIONS

        Effective for Plan Years beginning on or after January 1, 2003, all Employees who are eligible to make elective deferrals under this Plan and who have attained age 50 before the close of the Plan Year shall be eligible to make catch-up contributions in accordance with, and subject to the limitations of, Section 414(v) of the Code. Such catch-up contributions shall not be taken into account for purposes of the provisions of the Plan implementing the required limitations of Sections 402(g) and 415 of the Code. The Plan shall not be treated as failing to satisfy the provisions of the Plan implementing the requirements of Section 401(k)(3), 401(k)(11), 401(k)(12), 410(b), or 416 of the Code, as applicable, by reason of the making of such catch-up contributions.

2.
ROLLOVERS FROM OTHER PLANS

        The Plan will accept Participant rollover contributions and/or direct rollovers of distributions made after December 31, 2002, from the following types of plans, beginning on January 1, 2003.

        Direct Rollovers: The Plan will accept a Direct Rollover of an Eligible Rollover Distribution from: (a) a qualified plan described in Section 401(a) or 403(a) of the Code, including after-tax employee contributions; (b) an annuity contract described in Section 403(b) of the Code, excluding after-tax employee contributions; and (c) an eligible plan under Section 457(b) of the Code which is maintained by a state, political subdivision of a state, or any agency or instrumentality of a state or political subdivision of a state.

        Participant Rollover Contributions from Other Plans: The Plan will accept a Participant contribution of an Eligible Rollover Distribution from: (a) a qualified plan described in Section 401(a) or 403(a) of the Code; (b) an annuity contract described in Section 403(b) of the Code; and (c) an eligible plan under Section 457(b) of the Code which is maintained by a state, political subdivision of a state, or any agency or instrumentality of a state or political subdivision of a state.

        Participant Rollover Contributions from IRAs: The Plan will accept a Participant rollover contribution of the portion of a distribution from an individual retirement account or annuity described in Section 408(a) or 408(b) of the Code that is eligible to be rolled over and would otherwise be includible in gross income.

3.
MODIFICATION OF TOP-HEAVY RULES


        1.
    Effective date.     This section shall apply for purposes of determining whether the Plan is a Top-Heavy Plan under Section 416(g) of the Code for Plan Years beginning after December 31, 2001, and whether the Plan satisfies the minimum benefits requirements of Section 416(c) of the Code for such years. This section amends the sections of the Plan that set forth the rules applicable to Top-Heavy Plans.

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        2.
    Determination of top-heavy status.     


        3.
    Minimum benefits.     Company matching contributions shall be taken into account for purposes of satisfying the minimum contribution requirements of Section 416(c)(2) of the Code and the Plan. The preceding sentence shall apply with respect to matching contributions under the Plan or, if the Plan provides that the minimum contribution requirement shall be met in another Plan, such other Plan. Company matching contributions that are used to satisfy the minimum contribution requirements shall be treated as matching contributions for purposes of the actual contribution percentage test and other requirements of Section 401(m) of the Code.

4.
TREATMENT OF ROLLOVERS WITH RESPECT TO INVOLUNTARY CASH-OUTS

        The Company does not elect to exclude rollover contributions in determining the value of the Participant's nonforfeitable account balance for purposes of the Plan's involuntary cash-out rules.

5.
DISTRIBUTION UPON SEVERANCE FROM EMPLOYMENT

        A Participant's elective deferrals, qualified nonelective contributions, qualified matching contributions, and earnings attributable to these contributions shall be distributed on account of the Participant's severance from employment. However, such a distribution shall be subject to the other provisions of the Plan regarding distributions, other than provisions that require a separation from service before such amounts may be distributed. This paragraph shall apply to distributions after December 31, 2001, regardless of when the severance from employment occurred.

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APPENDIX III

MINIMUM DISTRIBUTION REQUIREMENTS

Section 1. General Rules


        1.1.
    Effective Date.     The provisions of this Appendix III will apply for purposes of determining required minimum distributions for calendar years beginning with the 2003 calendar year.


        1.2.
    Precedence.     The requirements of this Appendix III will take precedence over any inconsistent provisions of the Plan, provided that this Appendix shall not be considered to allow a Participant or Beneficiary to delay a distribution or elect an optional form of benefit not otherwise provided in the Plan.


        1.3.
    Requirements of Treasury Regulations Incorporated.     All distributions required under this Appendix III will be determined and made in accordance with the Treasury regulations under Section 401(a)(9) of the Internal Revenue Code.


        1.4.
    TEFRA Section 242(b)(2) Elections.     Notwithstanding the other provisions of this Appendix III, distributions may be made under a designation made before January 1, 1984, in accordance with Section 242(b)(2) of the Tax Equity and Fiscal Responsibility Act (TEFRA) and the provisions of the Plan that relate to Section 242(b)(2) of TEFRA.

Section 2. Time and Manner of Distribution.


        2.1.
    Required Beginning Date.     The Participant's entire interest will be distributed, or begin to be distributed, to the Participant no later than the Participant's Required Beginning Date.


        2.2.
    Death of Participant Before Distributions Begin.     If the Participant dies before distributions begin, the Participant's entire interest will be distributed, or begin to be distributed, no later than as follows:

        For purposes of this Section 2.2 and Section 4, unless Section 2.2(d) applies, distributions are considered to begin on the Participant's Required Beginning Date. If Section 2.2(d) applies, distributions are considered to begin on the date distributions are required to begin to the surviving spouse under Section 2.2(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

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under Section 2.2(a)), the date distributions are considered to begin is the date distributions actually commence.


        2.3.
    Forms of Distribution.     Unless the Participant's interest is distributed in the form of an annuity purchased from an insurance company or in a single sum on or before the Required Beginning Date, as of the first Distribution Calendar Year distributions will be made in accordance with Sections 3 and 4 of this article. If the Participant's interest is distributed in the form of an annuity purchased from an insurance company, distributions thereunder will be made in accordance with the requirements of Section 401(a)(9) of the Code and the Treasury regulations.

Section 3. Required Minimum Distributions During Participant's Lifetime.


        3.1.
    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:


        3.2.
    Lifetime Required Minimum Distributions Continue Through Year of Participant's Death.     Required minimum distributions will be determined under this Section 3 beginning with the first Distribution Calendar Year and up to and including the Distribution Calendar Year that includes the Participant's date of death.

Section 4. Required Minimum Distributions After Participant's Death.


        4.1.
    Death On or After Date Distributions Begin     

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        4.2.
    Death Before Date Distributions Begin.     

Section 5. Definitions.


        5.1.
    Designated Beneficiary.     The individual who is designated as the Beneficiary under Article VII of the Plan and is the designated beneficiary under Section 401(a)(9) of the Internal Revenue Code and Section 1.401(a)(9)-1, Q&A-4, of the Treasury regulations.


        5.2.
    Distribution Calendar Year.     A calendar year for which a minimum distribution is required. For distributions beginning before the Participant's death, the first Distribution Calendar Year is the calendar year immediately preceding the calendar year which contains the Participant's Required Beginning Date. For distributions beginning after the Participant's death, the first Distribution Calendar Year is the calendar year in which distributions are required to begin under Section 2.2. 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.


        5.3.
    Life Expectancy.     Life expectancy as computed by use of the Single Life Table in Section 1.401(a)(9)-9 of the Treasury regulations.


        5.4.
    Participant's Account Balance.     The account balance as of the last valuation date in the calendar year immediately preceding the Distribution Calendar Year (valuation calendar year) increased by the amount of any contributions made and allocated or forfeitures allocated to the account balance as of dates in the valuation calendar year after the valuation date and decreased by distributions made in the valuation calendar year after the valuation date. The account balance for the valuation calendar year includes any amounts rolled over or transferred to the Plan either in the valuation calendar year or in the Distribution Calendar Year if distributed or transferred in the valuation calendar year.


        5.5
    Required Beginning Date.     The date specified in Section 8.2(d) of the Plan.

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QuickLinks

CB RICHARD ELLIS 401(K) PLAN (Pro forma incorporating all amendments through Amendment 2003-1) TABLE OF CONTENTS
CB RICHARD ELLIS 401(K) PLAN
ARTICLE I DEFINITIONS
ARTICLE II ELIGIBILITY TO PARTICIPATE
ARTICLE III PARTICIPANT CONTRIBUTIONS
ARTICLE IV PARTICIPATING COMPANY CONTRIBUTIONS
ARTICLE V ACCOUNTING FOR PARTICIPANT'S INTERESTS
ARTICLE VI VESTING
ARTICLE VII DESIGNATION OF BENEFICIARY
ARTICLE VIII DISTRIBUTIONS FROM THE TRUST FUND
ARTICLE IX TOP-HEAVY PROVISIONS
ARTICLE X ADMINISTRATIVE PROCEDURES
ARTICLE XI INVESTMENT OF PLAN ASSETS
ARTICLE XII TERMINATION, PARTIAL TERMINATION AND COMPLETE DISCONTINUANCE OF CONTRIBUTIONS
ARTICLE XIII AMENDMENT OR TERMINATION OF THE PLAN
ARTICLE XIV ADOPTION OF PLAN BY AFFILIATED COMPANIES
ARTICLE XV MISCELLANEOUS
ARTICLE XVI NEW COMPANY STOCK FUND
APPENDIX I to the CB Richard Ellis 401(k) Plan