exv10w42






Exhibit 10.42




Service Corporation International

Executive Deferred Compensation Plan




Amended and Restated Effective December 8, 2009



 









 





TABLE OF CONTENTS




	 	 	 	 	 
	 	 	Page	 
	ARTICLE 1 Definitions
	 	 	1	 
	 
	 	 	 	 
	ARTICLE 2 Selection, Enrollment, Eligibility
	 	 	8	 
	 
	 	 	 	 
	2.1 Selection by Committee
	 	 	8	 
	2.2 Enrollment and Eligibility Requirements; Commencement of Participation
	 	 	8	 
	 
	 	 	 	 
	ARTICLE 3 Deferral Commitments/Company Contribution Amounts/Company Restoration Matching Amounts
/Vesting/Crediting/Taxes
	 	 	9	 
	 
	 	 	 	 
	3.1 Annual Deferral Amount
	 	 	9	 
	3.2 Timing of Deferral Elections; Effect of Election Form
	 	 	9	 
	3.3 Withholding and Crediting of Annual Deferral Amounts
	 	 	11	 
	3.4 Company Contribution Amount
	 	 	11	 
	3.5 Company Restoration Matching Amount
	 	 	12	 
	3.6 Vesting
	 	 	12	 
	3.7 Crediting/Debiting of Account Balances
	 	 	13	 
	3.8 FICA and Other Taxes
	 	 	14	 
	 
	 	 	 	 
	ARTICLE 4 Scheduled Distributions; Unforeseeable Emergencies
	 	 	15	 
	 
	 	 	 	 
	4.1 Scheduled Distributions
	 	 	15	 
	4.2 Postponing Scheduled Distributions
	 	 	15	 
	4.3 Other Benefits Take Precedence Over Scheduled Distributions
	 	 	16	 
	4.4 Unforeseeable Emergencies
	 	 	16	 
	 
	 	 	 	 
	ARTICLE 5 Change In Control Benefit
	 	 	16	 
	 
	 	 	 	 
	5.1 Change in Control Benefit
	 	 	16	 
	5.2 Payment of Change in Control Benefit
	 	 	17	 
	 
	 	 	 	 
	ARTICLE 6 Retirement Benefit
	 	 	17	 
	 
	 	 	 	 
	6.1 Retirement Benefit
	 	 	17	 
	6.2 Payment of Retirement Benefit
	 	 	17	 
	 
	 	 	 	 
	ARTICLE 7 Termination Benefit
	 	 	18	 
	 
	 	 	 	 
	7.1 Termination Benefit
	 	 	18	 
	6.2 Payment of Retirement Benefit
	 	 	18	 
	 
	 	 	 	 
	ARTICLE 8 Disability Benefit
	 	 	19	 
	 
	 	 	 	 
	8.1 Disability Benefit
	 	 	19	 
	8.2 Payment of Disability Benefit
	 	 	19	 
	 
	 	 	 	 
	ARTICLE 9 Death Benefit
	 	 	20	 






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	 	 	Page	 
	9.1 Death Benefit
	 	 	20	 
	9.2 Payment of Death Benefit
	 	 	20	 
	 
	 	 	 	 
	ARTICLE 10 Beneficiary Designation
	 	 	20	 
	 
	 	 	 	 
	10.1 Beneficiary
	 	 	20	 
	10.2 Beneficiary Designation; Change; Spousal Consent
	 	 	20	 
	10.3 Acknowledgement
	 	 	21	 
	10.4 No Beneficiary Designation
	 	 	21	 
	10.5 Doubt as to Beneficiary
	 	 	21	 
	10.6 Discharge of Obligations
	 	 	21	 
	 
	 	 	 	 
	ARTICLE 11 Leave of Absence
	 	 	21	 
	 
	 	 	 	 
	11.1 Paid Leave of Absence
	 	 	21	 
	11.2 Unpaid Leave of Absence
	 	 	21	 
	 
	ARTICLE 12 Termination of Plan, Amendment or Modification
	 	 	22	 
	12.1 Termination of Plan
	 	 	22	 
	12.2 Amendment
	 	 	22	 
	12.3 Plan Agreement
	 	 	22	 
	12.4 Effect of Payment
	 	 	22	 
	 
	 	 	 	 
	ARTICLE 13 Administration
	 	 	22	 
	 
	 	 	 	 
	13.1 Committee Duties
	 	 	22	 
	13.2 Administration Upon Change In Control
	 	 	23	 
	13.3 Agents
	 	 	23	 
	13.4 Binding Effect of Decisions
	 	 	23	 
	13.5 Indemnity of Committee
	 	 	23	 
	13.6 Employer Information
	 	 	23	 
	 
	 	 	 	 
	ARTICLE 14 Other Benefits and Agreements
	 	 	23	 
	 
	 	 	 	 
	14.1 Coordination with Other Benefits
	 	 	23	 
	 
	 	 	 	 
	ARTICLE 15 Claims Procedures
	 	 	24	 
	 
	 	 	 	 
	15.1 Presentation of Claim
	 	 	24	 
	15.2 Notification of Decision
	 	 	24	 
	15.3 Review of a Denied Claim
	 	 	24	 
	15.4 Decision on Review
	 	 	25	 
	15.5 Legal Action
	 	 	25	 
	 
	 	 	 	 
	ARTICLE 16 Trust
	 	 	25	 
	 
	 	 	 	 
	16.1 Establishment of the Trust
	 	 	25	 
	16.2 Interrelationship of the Plan and the Trust
	 	 	25	 






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	 	 	Page	 
	16.3 Distributions From the Trust
	 	 	25	 
	 
	 	 	 	 
	ARTICLE 17 Miscellaneous
	 	 	26	 
	 
	 	 	 	 
	17.1 Status of Plan
	 	 	26	 
	17.2 Unsecured General Creditor
	 	 	26	 
	17.3 Employer’s Liability
	 	 	26	 
	17.4 Nonassignability
	 	 	26	 
	17.5 Not a Contract of Employment
	 	 	26	 
	17.6 Furnishing Information
	 	 	26	 
	17.7 Terms
	 	 	27	 
	17.8 Captions
	 	 	27	 
	17.9 Governing Law
	 	 	27	 
	17.10 Notice
	 	 	27	 
	17.11 Successors
	 	 	27	 
	17.12 Spouse’s Interest
	 	 	27	 
	17.13 Validity
	 	 	27	 
	17.14 Incompetent
	 	 	27	 
	17.15 Domestic Relations Orders
	 	 	28	 
	17.16 Distribution in the Event of Income Inclusion Under Code Section 409A
	 	 	28	 
	17.17 Deduction Limitation on Benefit Payments
	 	 	28	 







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SERVICE CORPORATION INTERNATIONAL

Executive Deferred Compensation Plan

Amended and Restated December 8, 2009




Purpose


     The Plan was originally adopted effective as of January 1, 2005. The purpose of this Plan is to
provide specified benefits to Directors and a select group of management or highly compensated
Employees who contribute materially to the continued growth, development and future business
success of Service Corporation International, a Texas corporation, and its subsidiaries, if any,
that sponsor this Plan. This Plan shall be unfunded for tax purposes and for purposes of Title I of
ERISA.



     The Plan was previously amended and restated in its entirety to comply with all applicable laws,
including Code Section 409A and related Treasury guidance and Regulations, and shall be operated
and interpreted in accordance with this intention. The Plan is now again amended and restated in
its entirety to revise its vesting provisions and to permit class year distribution elections for
periods commencing on and after January 1, 2010. The provisions of this Plan, as amended and
restated, shall apply to any Participant with at least one hour of service on or after December 8,
2009.




ARTICLE 1

Definitions




     For the purposes of this Plan, unless otherwise clearly apparent from the context, the following
phrases or terms shall have the following indicated meanings:




	1.1	 	“Account Balance” shall mean, with respect to a Participant, an entry on the records of the
Employer equal to the sum of the Participant’s Annual Accounts. The Account Balance shall be a
bookkeeping entry only and shall be utilized solely as a device for the measurement and
determination of the amounts to be paid to a Participant, or his or her designated Beneficiary,
pursuant to this Plan.






If a Participant is both an Employee and a Director and participates in the Plan in each capacity,
then separate Account Balances (and separate Annual Accounts, if applicable) shall be established
for such Participant as a device for the measurement and determination of the (i) amounts deferred
under the Plan that are attributable to the Participant’s status as an Employee, and (ii) amounts
deferred under the Plan that are attributable to the Participant’s status as a Director.




	1.2	 	“Annual Account” shall mean, with respect to a Participant, an entry on the records of the
Employer equal to (i) the sum of the Participant’s Annual Deferral Amount, Company Contribution
Amount and Company Restoration Matching Amount for any one Plan Year, plus (ii) amounts credited or
debited to such amounts pursuant to this Plan, less (iii) all distributions made to the Participant
or his or her Beneficiary pursuant to this Plan that relate to the Annual Account for such Plan
Year. The Annual Account shall be a bookkeeping entry only and shall
be
utilized solely as a device for the measurement and determination of the amounts to be paid to a
Participant, or his or her designated Beneficiary, pursuant to this Plan. The distribution
elections made for a Participant’s Annual Account for each Plan Year, including each election made
for




1









 












periods prior to January 1, 2010, shall apply until such elections are changed pursuant to Sections
4.2, 6.2(b), 7.2(b) or 8.2, as applicable.




	1.3	 	“Annual Deferral Amount” shall mean that portion of a Participant’s Base Salary, Bonus,
Director Fees and LTIP Amounts that a Participant defers in accordance with Article 3 for any one
Plan Year, without regard to whether such amounts are withheld and credited during such Plan Year.
	 
	1.4	 	“Annual Installment Method” shall mean the
method used to determine the amount of each payment
due to a Participant who has elected to receive a benefit over a period of years in accordance with
the applicable provisions of the Plan. The amount of each annual payment due to the Participant
shall be calculated by multiplying the balance of the Participant’s benefit by a fraction, the
numerator of which is one and the denominator of which is the remaining number of annual payments
due to the Participant. The amount of the first annual payment shall be calculated as of the close
of business on or around the Participant’s Benefit Distribution Date, and the amount of each
subsequent annual payment shall be calculated on or around each anniversary of such Benefit
Distribution Date. For purposes of this Plan, the right to receive a benefit payment in annual
installments shall be treated as the entitlement to a single payment.
	 
	1.5	 	“Base Salary” shall mean the annual cash compensation relating to services performed during any
calendar year, excluding distributions from nonqualifled deferred compensation plans, bonuses,
commissions, overtime, fringe benefits, stock options, relocation expenses, incentive payments,
non-monetary awards, director fees and other fees, and automobile and other allowances paid to a
Participant for employment services rendered (whether or not such allowances are included in the
Employee’s gross income). Base Salary shall be calculated before reduction for compensation
voluntarily deferred or contributed by the Participant pursuant to all qualified or nonqualified
plans of any Employer and shall be calculated to include amounts not otherwise included in the
Participant’s gross income under Code Sections 125, 402(e)(3), 402(h), or 403(b) pursuant to plans
established by any Employer; provided, however, that all such amounts will be included in
compensation only to the extent that had there been no such plan, the amount would have been
payable in cash to the Employee.
	 
	1.6	 	“Beneficiary” shall mean one or more persons, trusts, estates or other entities, designated in
accordance with Article 10, that are entitled to receive benefits under this Plan upon the death of
a Participant.
	 
	1.7	 	“Beneficiary Designation Form” shall mean the form established from time to time by the
Committee that a Participant completes, signs and returns to the Committee to designate one or more
Beneficiaries.
	 
	1.8	 	“Benefit Distribution Date” shall mean the date upon which all or an objectively determinable
portion of a Participant’s vested benefits will become eligible for distribution. Except as
otherwise provided in the Plan, a Participant’s Benefit Distribution Date shall be determined based
on the earliest to occur of an event or scheduled date set forth in Articles 4 through 9, as
applicable.
	 
	1.9	 	“Board” shall mean the board of directors of the Company.




2









 









	1.10	 	“Bonus” shall mean any compensation, in
addition to Base Salary, and LTIP Amounts, earned by
a Participant under any Employer’s annual bonus and cash incentive plans.
	 
	1.11	 	“Change in Control” shall mean the occurrence of a “change in the ownership,” a “change in the
effective control” or a “change in the ownership of a substantial portion of the assets” of a
corporation, as determined in accordance with this Section. In order for an event described below
to constitute a Change in Control with respect to a Participant, except as otherwise provided in
Subsection (b)(ii), the applicable event must relate to the corporation for which the Participant
is providing services, the corporation that is liable for payment of the Participant’s Account
Balance (or all corporations liable for payment if more than one), as identified by the Committee
in accordance with Treas. Reg. § 1.409A-3(i)(5)(ii)(A)(2), or such other corporation identified by
the Committee in accordance with Treas. Reg. § 1 .409A-3 (i)(5)(ii)(A)(3).






In
determining whether an event shall be considered a “change in the ownership,” a “change in the
effective control” or a “change in the ownership of a substantial portion of the assets” of a
corporation, the following provisions shall apply:




	 	(a)	 	A “change in the ownership” of the applicable corporation shall occur on the date on which any
one person, or more than one person acting as a group, acquires ownership of stock of such
corporation that, together with stock held by such person or group, constitutes more than 50% of
the total fair market value or total voting power of the stock of such corporation, as determined
in accordance with Treas. Reg. § 1.409A-3(i)(5)(v). If a person or group is considered either to
own more than 50% of the total fair market value or total voting power of the stock of such
corporation, or to have effective control of such corporation within the meaning of Subsection (b),
and such person or group acquires additional stock of such corporation, the acquisition of
additional stock by such person or group shall not be considered to cause a “change in the
ownership” of such corporation.
	 
	 	(b)	 	A “change in the effective control” of the applicable corporation shall occur on either of the
following dates:






	 	(i)	 	The date on which any one person, or more than one person acting as a group, acquires (or has
acquired during the 12-month period ending on the date of the most recent acquisition by such
person or persons) ownership of stock of such corporation possessing 30% or more of the total
voting power of the stock of such corporation, as determined in accordance with Treas. Reg. § 1
..409A-3 (i)(5)(vi). If a person or group is considered to possess 30% or more of the total voting
power of the stock of a corporation, and such person or group acquires additional stock of such
corporation, the acquisition of additional stock by such person or group shall not be considered to
cause a “change in the effective control” of such corporation; or
	 
	 	(ii)	 	The date on which a majority of the members of the applicable corporation’s board of directors
is replaced during any 12-month period by directors whose appointment or election is not endorsed
by a majority of the members of such corporation’s board of
directors before the date of the appointment or election, as
determined in accordance with Treas. Reg. §1 .409A-3(i)(5)(vi). In determining whether the event
described in the preceding sentence has occurred, the applicable corporation to which the event
must relate shall only include a corporation




3









 









	 	 	 	identified in accordance with Treas. Reg. § 1 .409A-3 (i)(5)(ii) for which no other corporation is
a majority shareholder.









	 	(c)	 	A “change in the ownership of a substantial portion of the assets” of the applicable
corporation shall occur on the date on which any one person, or more than one person acting as a
group, acquires (or has acquired during the 12-month period ending on the date of the most recent
acquisition by such person or persons) assets from the corporation that have a total gross fair
market value equal to or more than 40% of the total gross fair market value of all of the assets of
the corporation immediately before such acquisition or acquisitions, as determined in accordance
with Treas. Reg. § 1 .409A-3 (i)(5)(vii). A transfer of assets shall not be treated as a “change in
the ownership of a substantial portion of the assets” when such transfer is made to an entity that
is controlled by the shareholders of the transferor corporation, as determined in accordance with
Treas. Reg. § 1 .409A-3(i)(5)(vii)(B).






	1.12	 	“Code” shall mean the Internal Revenue Code
of 1986, as it may be amended from time to time.
	 
	1.13	 	“Committee” shall mean the committee described in Article 13.
	 
	1.14	 	“Company” shall mean Service Corporation International, a Texas corporation, and any successor
to all or substantially all of the Company’s assets or business.
	 
	1.15	 	“Company Contribution Amount” shall mean,
for any one Plan Year, the amount determined in
accordance with Section 3.4.
	 
	1.16	 	“Company Restoration Matching Amount” shall mean, for any one Plan Year, the amount determined
in accordance with Section 3.5.
	 
	1.17	 	“Death Benefit” shall have the meaning
provided in Section 9.1.
	 
	1.18 	 	“Director” shall mean any member of the board of directors of any Employer.
	 
	1.19	 	“Director Fees” shall mean the annual fees earned by a Director from any Employer, including
retainer fees and meetings fees, as compensation for serving on the board of directors.
	 
	1.20	 	“Disability” or “Disabled” shall mean that a Participant is either (i) unable to engage in any
substantial gainful activity by reason of any medically determinable
physical or mental impairment
that can be expected to result in death or can be expected to last for a continuous period of not
less than 12 months, or (ii) by reason of any medically determinable physical or mental impairment
that can be expected to result in death or can be expected to last for a continuous period of not
less than 12 months, receiving income replacement benefits for a period of not less than 3 months
under an accident and health plan covering employees of the Participant’s Employer. For purposes of
this Plan, a Participant shall be deemed Disabled if determined to be totally disabled by the
Social Security Administration. A Participant shall also be deemed Disabled if determined to be
disabled in accordance with the applicable disability
insurance program of such Participant’s Employer, provided that
the definition of “disability” applied under
such disability insurance program complies with the requirements of this Section.
	 
	1.21	 	“Disability Benefit” shall have the meaning provided in Section 8.1.




4









 








	1.22	 	“Election Form” shall mean the form, which may be in electronic format, established from time
to time by the Committee that a Participant completes, signs and returns to the Committee to make
an election under the Plan.
	 
	1.23	 	“Employee” shall mean a person who is an employee of an Employer.
	 
	1.24	 	“Employer(s)” shall be defined as follows:






	 	(a)	 	Except as otherwise provided in Subsection (b), the term “Employer” shall mean the Company
and/or any of its subsidiaries (now in existence or hereafter formed or acquired) that have been
selected by the Board to participate in the Plan and have adopted the Plan as a sponsor.
	 
	 	(b)	 	For the purpose of determining whether a Participant has experienced a Separation from Service,
the term “Employer” shall mean:






	 	(i) 	 	 The entity for which the Participant performs services and with respect to which the legally
binding right to compensation deferred or contributed under this Plan
arises; and 
	 
	 	 (ii) 	 	 All other entities with which the entity described above would be aggregated and treated as a
single employer under Code   Section 414(b)   (controlled group of corporations) and Code Section
4  14(c)   (a group of trades or businesses, whether or not incorporated, under common control), as
applicable. In order to identify the group of entities described in the preceding sentence, the
Committee shall use an ownership threshold of at least 50% as a substitute for the 80% minimum
ownership threshold that appears in, and otherwise must be used when applying, the applicable
provisions of (A) Code Section 1563 for determining a controlled group of corporations under Code
Section  414(b) , and (B) Treas. Reg. §l. 414(c)-2 for determining the trades or businesses that are
under common control under Code Section 4  14(c) .






	 1.25	 	“ERISA” shall mean the Employee Retirement Income Security Act of 1974, as it may be amended
from time to time.
	 
	 1.26	 	“401(k)  Plan” shall mean the SCI Retirement Savings Plan, as it may be amended from time to
time, or any successor thereto.
	 
	 1.27	 	“LTIP Amounts” shall mean any portion of the compensation attributable to a Plan Year that is
earned by a Participant under the Company’s Performance Unit Plan or any other “performance-based
compensation plan within the meaning of Code Section 409A and so designated by the Committee.
	 
	 1.28	 	“Participant” shall mean any Employee or Director (i) who is selected to participate in the
Plan, (ii) whose executed Plan Agreement, Election Form and Beneficiary Designation Form are
accepted by the Committee, and (iii) whose Plan Agreement has not terminated.
	 
	 1.29	 	“Performance-Based Compensation” shall mean compensation the entitlement to or amount of which
is contingent on the satisfaction of pre-established organizational or individual




5









 







performance criteria relating to a performance period of at least 12 consecutive months, as
determined by the Committee in accordance with Treas. Reg. §1.409A-1(e).




	1.30	 	“Plan” shall mean the Service Corporation International Executive Deferred Compensation Plan,
which shall be evidenced by this instrument, as it may be amended from time to time, and by any
other documents that together with this instrument define a Participant’s rights to amounts
credited to his or her Account Balance.
	 
	1.31	 	“Plan Agreement” shall mean a written agreement in the form prescribed by or acceptable to the
Committee that evidences a Participant’s agreement to the terms of the Plan and which may establish
additional terms or conditions of Plan participation for a Participant. Unless otherwise determined
by the Committee, the most recent Plan Agreement accepted with respect to a Participant shall
supersede any prior Plan Agreements for such Participant. Plan Agreements may vary among
Participants and may provide additional benefits not set forth in the Plan or limit the benefits
otherwise provided under the Plan.
	 
	1.32	 	“Plan Year” shall mean a period beginning on January 1 of each calendar year and continuing
through December 31 of such calendar year.
	 
	1.33	 	“Retirement,“Retire(s)” or “Retired” shall mean with respect to a Participant who is an.
Employee, a Separation from Service on or after the attainment of age sixty (60) with five (5)
Years of Service, and shall mean with respect to a Participant who is a Director, a Separation from
Service. If a Participant is both an Employee and a Director and participates in the Plan in each
capacity, (i) the determination of whether the Participant qualifies for Retirement as an Employee
shall be made when the Participant experiences a Separation from Service as an Employee and such
determination shall only apply to the applicable Account Balance established in accordance with
Section 1.1 for amounts deferred under the Plan as an Employee, and (ii) the determination of
whether the Participant qualifies for Retirement as a Director shall be made at the time the
Participant experiences a Separation from Service as a Director and such determination shall only
apply to the applicable Account Balance established in accordance with Section 1.1 for amounts
deferred under the Plan as a Director.
	 
	1.34	 	“Separation from Service” shall mean a termination of services provided by a Participant to
his or her Employer, whether voluntarily or involuntarily, other than by reason of death or
Disability, as determined by the Committee in accordance with Treas.
Reg. § 1.409A-1 (h). In
determining whether a Participant has experienced a Separation from Service, the following
provisions shall apply:






	 	(a)	 	For a Participant who provides services to an Employer as an Employee, except as otherwise
provided in Subsection (c) below, a Separation from Service shall occur when such Participant has
experienced a termination of employment with such Employer. A Participant shall be considered to
have experienced a termination of employment when the facts and circumstances indicate that the
Participant and his or her Employer reasonably anticipate that either (i) no further services will
be performed for the Employer after a certain date, or (ii) that the level of bona fide services
the Participant will perform for the Employer after such date
(whether as an Employee or as an independent
contractor) will permanently decrease to no more than 20% of the average level of bona fide
services performed by such Participant (whether as an Employee or an independent contractor) over
the immediately preceding 36-month period (or the full period of




6









 








services to the Employer if the Participant has been providing services to the Employer less than
36 months).




If a Participant is on military leave, sick leave, or other bona fide leave of absence, the
employment relationship between the Participant and the Employer shall be treated as continuing
intact, provided that the period of such leave does not exceed six months, or if longer, so long as
the Participant retains a right to reemployment with the Employer under an applicable statute or by
contract. If the period of a military leave, sick leave, or other bona fide leave of absence
exceeds six months and the Participant does not retain a right to reemployment under an applicable
statute or by contract, the employment relationship shall be considered to be terminated for
purposes of this Plan as of the first day immediately following the end of such six month period.
In applying the provisions of this paragraph, a leave of absence shall be considered a bona fide
leave of absence only if there is a reasonable expectation that the Participant will return to
perform services for the Employer.




	 	(b)	 	For a Participant who provides services to an Employer as a Director, a Separation from Service
shall occur on the date the Participant ceases to serve on the Board of Directors of the Employer
and each of its subsidiaries and affiliates.
	 
	 	(c)	 	For a Participant who provides services to an Employer as both an Employee and a Director, a
Separation from Service generally shall not occur until the Participant has ceased providing
services for such Employer as both as an Employee and as a Director, as determined in accordance
with the provisions set forth in Subsections (a) and (b) above, respectively. Notwithstanding the
foregoing provisions in this Subsection (c), if a Participant provides services for an Employer as
both an Employee and as a Director, to the extent permitted by Treas. Reg. § 1 .409A- 1 (h)(5) the
services provided by such Participant as a Director shall not be taken into account in determining
whether the Participant has experienced a Separation from Service as an Employee, and the services
provided by such Participant as an Employee shall not be taken into account in determining whether
the Participant has experienced a Separation from Service as a Director.






	1.35	 	“Specified Employee” shall mean any Participant who is determined to be a “key employee” (as
defined under Code Section 416(i) without regard to paragraph (5) thereof) for the applicable
period, as determined annually by the Committee in accordance with
Treas. Reg. §1.409A-1(i). In
determining whether a Participant is a Specified Employee, the following provisions shall apply:






	 	(a)	 	The Committee’s identification of the individuals who fall within the definition of “key
employee” under Code Section 416(i) (without regard to paragraph (5) thereof) shall be based upon
the 12-month period ending on each December 31st (referred to below as the “identification date”).
In applying the applicable provisions of Code Section 416(i) to identify such individuals,
“compensation” shall be determined in accordance with
Treas. Reg. §1.415(c)-2(a) without regard to
(i) any safe harbor provided in Treas. Reg.
§ 1.415(c)-2(d), (ii) any of the special timing rules
provided in Treas. Reg $1.415(c)-2(e),
and (iii) any of the special rules provided in Treas. Reg. §1.415(c)-2(g); and






7












 






	 	(b)	 	Each Participant who is among the individuals identified as a “key employee” in accordance
with Subsection (a) shall be treated as a Specified Employee for purposes of this Plan if such
Participant experiences a Separation from Service during the 12-month period that begins on the
April 1st following the applicable identification date.






	1.36	 	“Termination Benefit” shall have the meaning provided in Section 7.1.
	 
	1.37	 	“Trust” shall mean one or more trusts established by the Company in accordance with Article
16.
	 
	1.38	 	“Unforeseeable Emergency” shall mean a severe financial hardship of the Participant resulting
from (i) an illness or accident of the Participant, the Participant’s spouse, the Participant’s
Beneficiary or the Participant’s dependent (as defined in Code Section 152 without regard to
paragraphs (b)(1), (b)(2) and (d)(1)(b) thereof), (ii) a loss of the Participant’s property due to
casualty, or (iii) such other similar extraordinary and unforeseeable circumstances arising as a
result of events beyond the control of the Participant, all as determined by the Committee based on
the relevant facts and circumstances.
	 
	1.39	 	“Years of Service” shall mean the total number of full years in which a Participant has been
employed by one or more Employers. For purposes of this definition, a year of employment shall be a
365 day period (or 366 day period in the case of a leap year) that, for the first year of
employment, commences on the Employee’s date of hiring and that, for any subsequent year, commences
on an anniversary of that hiring date. A partial year of employment shall not be treated as a Year
of Service.





ARTICLE 2

Selection, Enrollment, Eligibility





	2.1	 	Selection by Committee. Participation in the Plan shall be limited to Directors and, as
determined by the Committee in its sole discretion, a select group of management or highly
compensated Employees. From that group, the Committee shall select, in its sole discretion, those
individuals who may actually participate in this Plan.
	 
	2.2	 	Enrollment and Eligibility Requirements; Commencement of Participation.






	 	(a)	 	As a condition to participation, each Director or selected Employee shall complete, execute and
return to the Committee a Plan Agreement, an Election Form and a Beneficiary Designation Form by
the deadline(s) established by the Committee in accordance with the applicable provisions of this
Plan. In addition, the Committee shall establish from time to time such other enrollment
requirements as it determines, in its sole discretion, are necessary.






	 	(b)	 	Each Director or selected Employee who is eligible to participate in the Plan shall commence
participation in the Plan on the date that the Committee determines that the Director or Employee
has met all enrollment requirements set forth in this Plan and require by the Committee, including returning all require documents to the committee
Within the specified time period.




8









 












	 	(c)	 	If a Director or an Employee fails to meet all requirements established by the Committee within
the period required, that Director or Employee shall not be eligible to participate in the Plan
during such Plan Year.





ARTICLE 3

Deferral Commitments/Company Contribution Amounts/

Company Restoration Matching Amounts/Vesting/Crediting/Taxes





	3.1	 	Annual Deferral Amount. For each Plan Year, a Participant may elect to defer, as his or
her Annual Deferral Amount, Base Salary, Bonus, LTIP Amounts and/or Director Fees up to the
following maximum percentages for each deferral elected:





	 	 	 	 	 
	Deferral	 	Maximum Percentage	 
	Base Salary
	 	 	80	%
	Bonus
	 	 	90	%
	LTIP Amounts
	 	 	90	%
	Director Fees
	 	 	100	%







	 	 	Notwithstanding the foregoing, if a Participant first becomes a Participant after the first day of
a Plan Year, then to the extent required by Section 3.2 and Code Section 409A and related Treasury
Regulations, the maximum amount of the Participant’s Base
Salary, Bonus, LTIP Amounts or Director
Fees that may be deferred by the Participant for the Plan Year shall be determined by applying the
percentages set forth above to the portion of such compensation attributable to services performed
after the date that the Participant’s deferral election is made.





3.2 Timing of Deferral Elections; Effect of Election Form.





	 	(a)	 	General Timing Rule for Deferral Elections. Except as otherwise provided in this Section 3.2,
in order for a Participant to make a valid election to defer Base Salary, Bonus, Director Fees
and/or LTIP Amounts, the Participant must submit an Election Form on or before the deadline
established by the Committee, which in no event shall be later than
the December 31st preceding the
Plan Year in which such compensation will be earned.
	 
	 	 	 	Any deferral election made in accordance with this Section 3.2(a) shall be irrevocable; provided,
however, that if the Committee permits or requires Participants to make a deferral election by the
deadline described above for an amount that qualifies as Performance-Based Compensation, the
Committee may permit a Participant to subsequently change his or her deferral election for such
compensation by submitting a new Election Form in accordance with Section 3.2(d) below.






	 	(b)	 	Timing of Deferral Elections for Newly Eligible Plan Participants. A Director or
selected Employee who first becomes eligible to participate in the Plan on or after the
beginning of a Plan Year, as determined in accordance with Treas. Reg. §1.409A-2(a)(7)(ii) and the
“plan aggregation” rules provided in Treas. Reg. § 1
..409A-l(c)(2), may be permitted to make an
election to defer the portion of Base Salary, Bonus, Director Fees
and/or LTIP Amounts attributable
to services to be performed after such election,




9









 






	 	 	 	provided that the Participant submits an Election Form on or before the deadline established by the
Committee, which in no event shall be later than 30 days after the Participant first becomes
eligible to participate in the Plan.
	 
	 	 	 	If a deferral election made in accordance with this Section 3.2(b) relates to compensation earned
based upon a specified performance period, the amount eligible for deferral shall be equal to (i)
the total amount of compensation for the performance period, multiplied by (ii) a fraction, the
numerator of which is the number of days remaining in the service period after the Participant’s
deferral election is made, and the denominator of which is the total number of days in the
performance period.
	 
	 	 	 	Any deferral election made in accordance with this Section 3.2(b) shall become irrevocable no later
than the 30th day after the date the Director or selected Employee becomes eligible to participate
in the Plan.






	 	(c)	 	Timing of Deferral Elections for Fiscal Year Compensation. In the event that the fiscal
year of an Employer is different than the taxable year of a Participant, the Committee may
determine that a deferral election may be made for “fiscal year compensation” (as defined below),
by submitting an Election Form on or before the deadline established by the Committee, which in no
event shall be later than the last day of the Employer’s fiscal year immediately preceding the
fiscal year in which the services related to such compensation will begin to be performed. For
purposes of this Section, the term “fiscal year compensation” shall only include Bonus and LTIP
Amounts relating to a service period coextensive with one or more consecutive fiscal years of the
Employer, of which no amount is paid or payable during the Employer’s fiscal year(s) that
constitute the service period.
	 
	 	 	 	A deferral election made in accordance with this Section 3.2(c) shall be irrevocable; provided,
however, that if the Committee permits or requires Participants to make a deferral election by the
deadline described in this Section 3.2(c) for an amount that qualifies as Performance-Based
Compensation, the Committee may permit a Participant to subsequently change his or her deferral
election for such compensation by submitting a new Election Form in accordance with Section 3.2(d)
below.






	 	(d)	 	Timing of Deferral Elections for Performance-Based Compensation. Subject to the
limitations described below, the Committee may determine that an irrevocable deferral election for
an amount that qualifies as Performance-Based Compensation may be made by submitting an Election
Form on or before the deadline established by the Committee, which in no event shall be later than 6 months before the end of the performance period.
	 
	 	 	 	In order for a Participant to be eligible to make a deferral election for Performance-Based
Compensation in accordance with the deadline established pursuant to this Section 3.2(d), the
Participant must have performed services continuously from the later of (i) the beginning of the
performance period for such compensation, or (ii) the date upon which the performance criteria for
such compensation are established, through the date upon which the Participant makes the deferral
election for such compensation. In no event shall a deferral election submitted under this Section
3.2(d) be permitted to apply to any amount of Performance-Based Compensation that has become
readily ascertainable.




10









 












	 	(e)	 	Timing Rule for Deferral of Compensation Subject to Risk of Forfeiture. With
respect to compensation (i) to which a Participant has a legally binding right to payment
in a subsequent year, and (ii) that is subject to a forfeiture condition requiring the
Participant’s continued services for a period of at least 12 months from the date the
Participant obtains the legally binding right, the Committee may determine that an
irrevocable deferral election for such compensation may be made by timely delivering an
Election Form to the Committee in accordance with its rules and procedures, no later than
the 30th day after the Participant obtains the legally binding right to the compensation,
provided that the election is made at least 12 months in advance of the earliest date at
which the forfeiture condition could lapse, as determined in accordance with Treas. Reg.
§ 1.409A-2(a)(5).
	 
	 	 	 	Any deferral election(s) made in accordance with this Section 3.2(e) shall become irrevocable no
later than the 30th day after the Participant obtains the legally binding right to the compensation
subject to such deferral election(s).






	3.3	 	Withholding and Crediting of Annual Deferral Amounts. For each Plan Year, the Base
Salary portion of the Annual Deferral Amount shall be withheld from each regularly scheduled Base
Salary payroll in equal amounts, as adjusted from time to time for increases and decreases in Base
Salary. The Bonus, LTIP Amounts and/or Director Fees portion of the Annual Deferral Amount shall be
withheld at the time the Bonus, LTIP Amounts or Director Fees are or otherwise would be paid to the
Participant, whether or not this occurs during the Plan Year itself. Annual Deferral Amounts shall
be credited to the Participant’s Annual Account for such Plan Year at the time such amounts would
otherwise have been paid to the Participant






	3.4	 	Company Contribution Amount.






	 	(a)	 	For each Plan Year, an Employer may be required to credit amounts to a Participant’s
Annual Account in accordance with employment or other agreements entered into
between the Participant and the Employer, which amounts shall be part of the
Participant’s Company Contribution Amount for that Plan Year. Such amounts shall be
credited to the Participant’s Annual Account for the applicable Plan Year on the date or
dates prescribed by such agreements.






	 	(b)	 	For each Plan Year, an Employer, in its sole discretion, may, but is not required to, credit
any amount it desires to any Participant’s Annual Account under this Plan, which amount shall be
part of the Participant’s Company Contribution Amount for that Plan Year. The amount so credited to
a Participant may be smaller or larger than the amount credited to any other Participant, and the
amount credited to any Participant for a Plan Year may be zero, even though one or more other
Participants receive a Company Contribution Amount for that Plan Year. The Company Contribution
Amount described in this Section 3.4(b), if any, shall be credited to the Participant’s Annual
Account for the applicable Plan Year on a date or dates to be determined by the Committee.






	 	(c)	 	If not otherwise specified in the Participant’s employment or other agreement entered into
between the Participant and the Employer, the amount (or the method or formula for
determining the amount) of a Participant’s Company Contribution Amount shall be set
forth in writing in one or more documents, which shall be deemed to be incorporated into




11









 












	 	 	 	this Plan in accordance with Section 1.30, no later than the date on which such Company
Contribution Amount is credited to the applicable Annual Account of the Participant.






	3.5	 	Company Restoration Matching Amount. A Participant’s Company Restoration Matching
Amount for any Plan Year shall be an amount determined by the Committee to make up for certain
limits applicable to the 401(k) Plan or other qualified plan for such Plan Year, as identified by
the Committee, or for such other purposes as determined by the Committee in its sole discretion.
The amount so credited to a Participant under this Plan for any Plan Year (i) may be smaller or
larger than the amount credited to any other Participant, and (ii) may differ from the amount
credited to such Participant in the preceding Plan Year. The Participant’s Company Restoration
Matching Amount, if any, shall be credited to the Participant’s Annual Account for the applicable
Plan Year on a date or dates to be determined by the Committee. The amount (or the method or
formula for determining the amount) of a Participant’s Company Restoration Matching Amount shall be
set forth in writing in one or more documents, which shall be deemed to be incorporated into this
Plan in accordance with Section 1.30, no later than the date on which such Company Restoration
Matching Amount is credited to the applicable Annual Account of the Participant.






	3.6	 	Vesting.






	 	(a)	 	A Participant shall at all times be 100% vested in the portion of his or her Account Balance
attributable to Annual Deferral Amounts, plus amounts credited or debited on such amounts pursuant
to Section 3.7.






	 	(b)	 	A Participant shall be vested in the portion of his or her Account Balance attributable to any
Company Contribution Amounts, plus amounts credited or debited on such amounts pursuant to Section
3.7, in accordance with the vesting schedule(s) set forth in his or her Plan Agreement, employment
agreement or any other agreement entered into between the Participant and his or her Employer. If
not addressed in such agreements, a Participant shall vest in the portion of his or her Account
Balance attributable to any Company Contribution Amounts as provided in Subsection (c) below.






	 	(c)	 	A Participant shall be vested in the portion of his or her Account Balance attributable to any
Company Restoration Matching Amounts, plus amounts credited or debited on such amounts pursuant to
Section 3.7, only to the extent that the Participant would be vested in such amounts under the
provisions of the 401(k) Plan, as determined by the Committee in its sole discretion.






	 	(d)	 	Notwithstanding anything to the contrary contained in this Section 3.6, in the event of (i) a
Change in Control, (ii) a Participant’s Disability, (iii) a Participant’s Separation from
Service resulting from involuntary termination by the Company for any reason other than
cause, or (iv) a Participant’s death prior to Separation from Service, any amounts that are
not vested in accordance with Sections 3.6(b) or 3.6(c) above, shall immediately become
100% vested.






	 	(e)	 	Notwithstanding Section 3.6(d) above, the vesting schedules described in Sections 3.6(b) or 3.6(c) above
shall not be accelerated upon a Change in Control to the extent that the Committee determines that
such acceleration would cause the deduction limitations of Section 280G of the Code to become
effective. In the event of such a determination, the




12









 






	 	 	 	Participant may request independent verification of the Committee’s calculations with respect to
the application of Section 280G. In such case, the Committee must provide to the Participant within
90 days of such a request an opinion from a nationally recognized accounting firm selected by the
Participant (the “Accounting Firm”). The opinion shall state the Accounting Firm’s opinion that any
limitation in the vested percentage hereunder is necessary to avoid the limits of Section 280G and
contain supporting calculations. The cost of such opinion shall be paid for by the Company.






	 	(f)	 	Section 3.6(e) shall not prevent the acceleration of the vesting schedules described in
Sections 3.6(b) and (c) if such Participant is entitled to a “gross-up” payment, to eliminate the
effect of the Code section 4999 excise tax, pursuant to his or her employment agreement or other
agreement entered into between such Participant and the Employer.






	 	(g)	 	Notwithstanding anything to the contrary contained in this Section 3.6, in the event of a
Participant’s Separation from Service resulting from (i) voluntary resignation on or after
attainment of age 60 with 10 years of service or (ii) voluntary resignation on or after attainment
of age 55 with 20 years of service, any amounts that are not
vested in accordance with Sections 3.6(b), 3.6(c) or 3.6(d) above, shall immediately become 100% vested if the Committee, in its sole
discretion exercised during a meeting or by unanimous written consent prior to the date of
retirement, causes such amounts to vest.






	3.7	 	Crediting/Debiting of Account Balances. In accordance with, and subject to, the rules
and procedures that are established from time to time by the Committee, in its sole discretion,
amounts shall be credited or debited to a Participant’s Account Balance in accordance with the
following rules:






	 	(a)	 	Measurement Funds. The Participant may elect one or more of the measurement funds
selected by the Committee, in its sole discretion, which are based on certain mutual funds (the
“Measurement Funds”), for the purpose of crediting or debiting additional amounts to his or her
Account Balance. As necessary, the Committee may, in its sole discretion, discontinue, substitute
or add a Measurement Fund. Each such action will take effect as of the first day of the first
calendar quarter that begins at least 30 days after the day on which the Committee gives
Participants advance written notice of such change.






	 	(b)	 	Election of Measurement Funds. A Participant, in connection with his or her initial
deferral election in accordance with Section 3.2 above, shall elect, on the Election Form, one or
more Measurement Fund(s) (as described in Section 3.7(a) above) to be used to determine the amounts
to be credited or debited to his or her Account Balance. If a Participant does not elect any of the
Measurement Funds as described in the previous sentence, the Participant’s Account Balance shall
automatically be allocated into the lowest-risk Measurement Fund, as determined by the Committee,
in its sole discretion. The Participant may (but is not required to) elect, by submitting an
Election Form to the Committee that is accepted by the Committee, to add or delete one or more
Measurement Fund(s) to be used to determine the amounts to be credited or debited to his or her
Account Balance, or to change the portion of his or her Account Balance allocated to each
previously or newly elected Measurement Fund. If an election is made
in accordance with the previous
sentence, it shall apply as of the first business day deemed reasonably practicable by the
Committee, in its sole discretion, and shall continue thereafter for each subsequent day in which
the Participant participates in the Plan, unless changed in




13









 






	 	 	 	accordance with the previous sentence. Notwithstanding the foregoing, the Committee, in its sole
discretion, may impose limitations on the frequency with which one or more of
the Measurement Funds elected in accordance with this Section 3.7(b) maybe added or deleted by such
Participant; furthermore, the Committee, in its sole discretion, may impose limitations on the
frequency with which the Participant may change the portion of his or her Account Balance allocated
to each previously or newly elected Measurement Fund.






	 	(c)	 	Proportionate Allocation. In making any election described in Section 3.7(b) above, the
Participant shall specify on the Election Form, in increments of one percent (1%), the percentage
of his or her Account Balance or Measurement Fund, as applicable, to be allocated/reallocated.






	 	(d)	 	Crediting or Debiting Method. The performance of each Measurement Fund (either positive
or negative) will be determined on a daily basis based on the manner in which such Participant’s
Account Balance has been hypothetically allocated among the Measurement Funds by the Participant.






	 	(e)	 	No Actual Investment. Notwithstanding any other provision of this Plan that may be
interpreted to the contrary, the Measurement Funds are to be used for measurement purposes only,
and a Participant’s election of any such Measurement Fund, the allocation of his or her Account
Balance thereto, the calculation of additional amounts and the crediting or debiting of such
amounts to a Participant’s Account Balance shall not be considered or construed in any manner as an
actual investment of his or her Account Balance in any such Measurement Fund. In the event that the
Company or the Trustee (as that term is defined in the Trust), in its own discretion, decides to
invest funds in any or all of the investments on which the Measurement Funds are based, no
Participant shall have any rights in or to such investments themselves. Without limiting the
foregoing, a Participant’s Account Balance shall at all times be a bookkeeping entry only and shall
not represent any investment made on his or her behalf by the Company or the Trust; the Participant
shall at all times remain an unsecured creditor of the Company.






	3.8	 	FICA and Other Taxes.






	 	(a)	 	Annual Deferral Amounts. For each Plan Year in which an Annual Deferral Amount is being
withheld from a Participant, the Participant’s Employer(s) shall withhold from that portion of the
Participant’s Base Salary, Bonus, and/or LTIP Amounts that is not being deferred, in a manner
determined by the Employer(s), the Participant’s share of FICA and other employment taxes on such
Annual Deferral Amount. If necessary, the Committee may reduce the Annual Deferral Amount in order
to comply with applicable withholding requirements.






	 	(b)	 	Company Restoration Matching Amounts and Company Contribution Amounts. When a
Participant becomes vested in a portion of his or her Account Balance attributable to any Company
Restoration Matching Amounts and/or Company Contribution Amounts, the Participant’s Employer(s)
shall withhold from that portion of the Participant’s Base Salary, Bonus, and/or LTIP Amounts that
is not deferred, in a manner determined by the Employer(s), the Participant’s share of FICA and
other employment taxes on such amounts. If necessary, the Committee may reduce the vested






14












 






	 	 	 	portion of the Participant’s Company Restoration Matching Amount or Company Contribution
Amount, as applicable, in order to comply with applicable withholding amounts.






	 	(c)	 	Distributions. The Participant’s Employer(s), or the trustee of the Trust, shall withhold from
any payments made to a Participant under this Plan all federal, state and local income, employment
and other taxes required to be withheld by the Employer(s), or the trustee of the Trust, in
connection with such payments, in amounts and in a manner to be determined in the sole discretion
of the Employer(s) and the trustee of the Trust.
	 
	 	(d)	 	Right to Offset Against Account Balance. To the extent determined necessary by the Committee in
its sole discretion, the Company reserves the right to direct that the Participant’s Account
Balance be reduced to satisfy any and all federal, state and local income, employment and other
taxes required to be paid in connection with earnings of the Measurement Funds hypothetically
allocated to the Participant’s Account Balance.





ARTICLE 4

Scheduled Distribution; Unforeseeable Emergencies





	4.1	 	Scheduled Distributions. In connection with each election to defer an Annual Deferral Amount, a
Participant may elect to receive all or a portion of such Annual Deferral Amount, plus amounts
credited or debited on that amount pursuant to Section 3.7, in the form of a lump sum payment,
calculated as of the close of business on or around the Benefit Distribution Date designated by the
Participant in accordance with this Section (a “Scheduled Distribution”). The Benefit Distribution
Date for the amount subject to a Scheduled Distribution election shall be the first day of any Plan
Year designated by the Participant, which may be no sooner than three Plan Years after the end of
the Plan Year to which the Participant’s deferral election relates, unless otherwise provided on an
Election Form approved by the Committee.
	 
	 	 	Subject to the other terms and conditions of this Plan, each Scheduled Distribution elected shall
be paid out during a 60 day period commencing immediately after the Benefit Distribution Date. By
way of example, if a Scheduled Distribution is elected for Annual Deferral Amounts that relate to
services performed in the Plan Year commencing January 1, 2009, the earliest Benefit Distribution
Date that may be designated by a Participant would be January 1, 2013, and the Scheduled
Distribution would be paid out during the 60 day period commencing immediately after such Benefit
Distribution Date.
	 
	4.2	 	Postponing Scheduled Distributions. A Participant may elect to postpone a Scheduled
Distribution described in Section 4.1 above, and have such amount paid out during a 60 day period
commencing immediately after an allowable alternative Benefit Distribution Date designated in
accordance with this Section 4.2. In order to make such an election, the Participant must submit an
Election Form to the Committee in accordance with the following criteria:






	 	(a)	 	The election of the new Benefit Distribution Date shall have no effect until at least 12 months
after the date on which the election is made;
	 
	 	(b)	 	The new Benefit Distribution Date selected by the Participant for such Scheduled Distribution
must be the first day of a Plan Year that is no sooner than five years after the previously
designated Benefit Distribution Date; and




15









 






	 	(c)	 	The election must be made at least 12 months prior to the Participant’s previously designated
Benefit Distribution Date for such Scheduled Distribution.






	 	 	For purposes of applying the provisions of this Section 4.2, a Participant’s election to postpone a
Scheduled Distribution shall not be considered to be made until the date on which the election
becomes irrevocable. Such an election shall become irrevocable no later than the date that is 12
months prior to the Participant’s previously designated Benefit Distribution Date for such
Scheduled Distribution.
	 
	4.3	 	Other Benefits Take Precedence Over Scheduled Distributions. Should an event occur prior to any
Benefit Distribution Date designated for a Scheduled Distribution that would trigger a benefit
under Articles 5 through 9, as applicable, all amounts subject to a Scheduled Distribution election
shall be paid in accordance with the other applicable provisions of the Plan and not in accordance
with this Article 4.
	 
	4.4	 	Unforeseeable Emergencies.






	 	(a)	 	If a Participant experiences an Unforeseeable Emergency prior to the occurrence of a
distribution event described in Articles 5 through 9, as applicable, the Participant may petition
the Committee to receive a partial or full payout from the Plan. The payout, if any, from the Plan
shall not exceed the lesser of(i) the Participant’s vested Account Balance, calculated as of the
close of business on or around the Benefit Distribution Date for such payout, as determined by the
Committee in accordance with provisions set forth below, or (ii) the amount necessary to satisfy
the Unforeseeable Emergency, plus amounts necessary to pay Federal, state, or local income taxes or
penalties reasonably anticipated as a result of the distribution. A Participant shall not be
eligible to receive a payout from the Plan to the extent that the Unforeseeable Emergency is or may
be relieved (A) through reimbursement or compensation by insurance or otherwise, (B) by liquidation
of the Participant’s assets, to the extent the liquidation of such assets would not itself cause
severe financial hardship or (C) by cessation of deferrals under this Plan.
	 
	 	 	 	If the Committee, in its sole discretion, approves a Participant’s petition for payout from the
Plan, the Participant’s Benefit Distribution Date for such payout shall be the date on which such
Committee approval occurs and such payout shall be distributed to the Participant in a lump sum no
later than 60 days after such Benefit Distribution Date. In
addition, in the event of such approval the Participant’s outstanding deferral elections under the
Plan shall be cancelled.
	 
	 	(b)	 	A Participant’s deferral elections under this Plan shall also be cancelled to the extent the
Committee determines that such action is required for the Participant to obtain a hardship
distribution from an Employer’s 401(k) Plan pursuant to Treas.
Reg. §1.401(k)-1(d)(3).





ARTICLE 5

Change in Control Benefit





	5.1	 	Changes in Control Benefit. A Participant, in connection with his or her commencement of
participation in the Plan, shall have an opportunity to irrevocably elect to receive his or her
vested Account Balance in the form of a lump sum payment in the event that a Change in Control
occurs prior to the Participant’s Separation from Service, Disability or death (the “Change in




16









 






	 	 	Control Benefit”). The Benefit Distribution Date for the Change in Control Benefit, if any, shall
be the date on which the Change in Control occurs.
	 
	 	 	If a Participant elects not to receive a Change in Control Benefit, or fails to make an election in
connection with his or her commencement of participation in the Plan, the Participant’s Account
Balance shall be paid in accordance with the other applicable provisions of the Plan.
	 
	5.2	 	Payment of Change in Control Benefit. The Change in Control Benefit, if any, shall be
calculated as of the close of business on or around the Participant’s Benefit Distribution Date, as
determined by the Committee, and paid to the Participant no later than 60 days after the
Participant’s Benefit Distribution Date.





ARTICLE 6

Retirement Benefit





	6.1	 	Retirement Benefit. If a Participant experiences a Separation from Service that qualifies as a
Retirement, the Participant shall be eligible to receive his or her vested Account Balance in
either a lump sum or annual installment payments, as elected by the Participant in accordance with
Section 6.2 (the “Retirement Benefit”). A Participant’s Retirement Benefit shall be calculated as
of the close of business on or around the applicable Benefit Distribution Date for such benefit,
which shall be (i) the first day after the end of the six-month period immediately following the
date on which the Participant experiences such Separation from Service if the Participant is a
Specified Employee, and (ii) for all other Participants, the date on which the Participant
experiences a Separation from Service; provided, however, if a Participant changes the form of
distribution for the Retirement Benefit in accordance with Section 6.2(b), the Benefit Distribution
Date for the Retirement Benefit shall be determined in accordance with such Section 6.2(b).
	 
	6.2	 	Payment of Retirement Benefit.






	 	(a)	 	For periods commencing January 1, 2009 and ending December 31, 2009, a Participant, in
connection with his or her commencement of participation in the Plan, shall elect on an Election
Form to receive the Retirement Benefit in a lump sum or pursuant to an Annual Installment Method of
up to 15 years. Effective January 1, 2010, in connection with a Participant’s election to defer an
Annual Deferral Amount, the Participant shall elect the form in which the Retirement Benefit from
his or her Annual Account for such Plan Year will be paid. The Participant may elect to receive the
Retirement Benefit paid from each Annual Account in the form of a lump sum or pursuant to an Annual
Installment Method up to 15 years. If a Participant does not make any election with respect to the
payment of an Annual Account, then the Participant shall be deemed to have elected to receive the
Retirement Benefit paid from such Annual Account as a lump sum.
	 
	 	(b)	 	A Participant may change the form of payment for the Retirement Benefit by submitting an
Election Form to the Committee in accordance with the following criteria:






	 	(i)	 	The election shall not take effect until at least 12 months
after the date on  which the
election is made;




17









 






	 	(ii)	 	The new Benefit Distribution Date for the Participant’s Retirement Benefit shall be five years
after the Benefit Distribution Date that would otherwise have been applicable to such benefit; and
	 
	 	(iii)	 	The election must be made at least 12 months prior to the Benefit Distribution Date that
would otherwise have been applicable to the Participant’s Retirement Benefit.






	 	 	 	For purposes of applying the provisions of this Section 6.2(b), a Participant’s election to change
the form of payment for the Retirement Benefit shall not be considered to be made until the date on
which the election becomes irrevocable. Such an election shall become irrevocable no later than the
date that is 12 months prior to the Benefit Distribution Date that would otherwise have been
applicable to the Participant’s Retirement Benefit. Subject to the requirements of this Section
6.2(b), the Election Form most recently accepted by the Committee that has become effective shall
govern the form of payout of the Participant’s Retirement Benefit.
	 
	 	(c)	 	The lump sum payment shall be made, or installment payments shall commence, no later than 60
days after the Participant’s Benefit Distribution Date. Remaining installments, if any, shall be
paid no later than 60 days after each anniversary of the Participant’s Benefit Distribution Date.





ARTICLE 7

Termination Benefit





	7.1	 	Termination Benefit. If a Participant experiences a Separation from Service that does not
qualify as a Retirement, the Participant shall receive his or her vested Account Balance in the
form of a lump sum payment or pursuant to an Annual Installment Method of up to five years (the
“Termination Benefit”). A Participant’s Termination Benefit shall be calculated as of the close of
business on or around the Benefit Distribution Date for such benefit, which shall be (i) the first
day after the end of the six-month period immediately following the date on which the Participant
experiences such Separation from Service if the Participant is a Specified Employee, and (ii) for
all other Participants, the date on which the Participant experiences a Separation from Service;
provided, however, if a Participant changes the form of distribution for the Termination Benefit in
accordance with Section 7.2(b), the Benefit Distribution Date for the Termination Benefit shall be
determined in accordance with such Section 7.2(b)..
	 
	7.2	 	Payment of Termination Benefit.






	 	(a)	 	For periods commencing January 1, 2009 and ending
December 31, 2009, a Participant, in
connection with his or her commencement of participation in the Plan, shall elect on an Election
Form to receive the Termination Benefit in a lump sum or pursuant to an Annual Installment Method
of up to five years. Effective January 1, 2010, in connection with a Participant’s election to
defer an Annual Deferral Amount, the Participant shall elect the form in which the Termination
Benefit from his or her Annual Account for such Plan Year will be paid. The Participant may elect
to receive the Termination Benefit paid from each Annual Account in the form of a lump sum or
pursuant to an Annual Installment Method up to five years. If a Participant does not make any
election with respect to the




18









 






	 	 	 	payment of the Termination Benefit, then such Participant shall be deemed to have elected to
receive the Termination Benefit as a lump sum.
	 
	 	(b)	 	A Participant may change the form of payment for the Termination Benefit by submitting an
Election Form to the Committee in accordance with the following criteria:






	 	(i)	 	The election shall not take effect until at least 12 months after the date on which the
election is made;
	 
	 	(ii)	 	The new Benefit Distribution Date for the Participant’s Termination Benefit shall be five
years after the Benefit Distribution Date that would otherwise have been applicable to such
benefit; and
	 
	 	(iii)	 	The election must be made at least 12 months prior to the Benefit Distribution Date that
would otherwise have been applicable to the Participant’s Termination Benefit.






	 	 	 	For purposes of applying the provisions of this Section 7.2(b), a Participant’s election to change
the form of payment for the Termination Benefit shall not be considered to be made until the date
on which the election becomes irrevocable. Such an election shall become irrevocable no later than
the date that is 12 months prior to the Benefit Distribution Date that would otherwise have been
applicable to the Participant’s Termination Benefit. Subject to the requirements of this Section
7.2(b), the Election Form most recently accepted by the Committee that has become effective shall
govern the form of payout of the Participant’s Termination Benefit.
	 
	 	(c)	 	The lump sum payment shall be made, or installment payments shall commence, no later than 60
days after the Participant’s Benefit Distribution Date. Remaining installments, if any, shall be
paid no later than 60 days after each anniversary of the Participant’s Benefit Distribution Date.





ARTICLE 8

Disability Benefit





	8.1	 	Disability Benefit. If a Participant becomes Disabled prior to the occurrence of a distribution
event described in Articles 5 through 7, as applicable, the Participant shall receive his or her
vested Account Balance in the form of a lump sum or installment payment as provided in Section 8.2
below (the “Disability Benefit”). The Disability Benefit shall be calculated as of the close of
business on or around the Participant’s Benefit Distribution Date for such benefit, which shall be
the date on which the Participant becomes Disabled.
	 
	8.2	 	Payment of Disability Benefit. The Disability Benefit shall be paid to the Participant no later
than 60 days after the Participant’s Benefit Distribution Date.






	 	(a)	 	For periods commencing January 1, 2009 and ending December 31, 2009, a Participant, in
connection with his or her commencement of participation in the plan, shall elect on an Election
Form to receive the Disability Benefit in a lump sum or pursuant to an Annual Installment Method of
up to five years. Effective January 1, 2010, in connection with a Participant’s election to defer
an Annual Deferral Amount, the Participant shall elect the form in which the Disability Benefit
from his or her Annual Account for such Plan Year




19









 






	 	 	 	will be paid. The Participant may elect to receive the Disability Benefit paid from each Annual
Account in the form of a lump sum or pursuant to an Annual Installment Method up to five years. If
a Participant does not make any election with respect to the payment of the Disability Benefit,
then such Participant shall be deemed to have elected to receive the Disability Benefit as a lump
sum.
	 
	 	(b)	 	A Participant may change the form of payment for the Disability Benefit by submitting an
Election Form to the Committee in accordance with the following criteria:






	 	(i)	 	The election shall not take effect until at least 12 months after the date on which the
election is made; and
	 
	 	(ii)	 	The election must be made at least 12 months prior to the Benefit Distribution Date that would
otherwise have been applicable to the Participant’s Disability Benefit.






	 	 	 	For purposes of applying the provisions of this Section 8.2(b), a Participant’s election to change
the form of payment for the Disability Benefit shall not be considered to be made until the date on
which the election becomes irrevocable. Such an election shall become irrevocable no later than the
date that is 12 months prior to the Benefit Distribution Date that would otherwise have been
applicable to the Participant’s Disability Benefit. Subject to the requirements of this Section
8.2(b), the Election Form most recently accepted by the Committee that has become effective shall
govern the form of payout of the Participant’s Disability Benefit.





ARTICLE 9

Death Benefit





	9.1	 	Death Benefit. In the event of a Participant’s death prior to the complete distribution of his
or her vested Account Balance, the Participant’s Beneficiary(ies) shall receive the Participant’s
unpaid vested Account Balance in a lump sum payment (the “Death Benefit”). The Death Benefit shall
be calculated as of the close of business on or around the Benefit Distribution Date for such
benefit, which shall be the date of the Participant’s death.
	 
	9.2	 	Payment of Death Benefit. The Death Benefit shall be paid to the Participant’s Beneficiary(ies)
no later than 60 days after the Participant’s Benefit Distribution Date.





ARTICLE 10

Beneficiary Designation





	10.1	 	Beneficiary. Each Participant shall have the right, at any time, to designate his or her
Beneficiary(ies) (both primary as well as contingent) to receive any benefits payable under the
Plan to a beneficiary upon the death of a Participant. The Beneficiary designated under this Plan
may be the same as or different from the Beneficiary designation under any other plan of an
Employer in which the Participant participates.
	 
	10.2	 	Beneficiary Designation; Change; Spousal Consent. A Participant shall designate his or her
Beneficiary by completing and signing the Beneficiary Designation Form, and returning it to the
Committee or its designated agent. A Participant shall have the right to change a Beneficiary by
completing, signing and otherwise complying with the terms of the Beneficiary Designation






20











 






	 	 	
Form and the Committee’s rules and procedures, as in effect from time to time. If the
Participant names someone other than his or her spouse as a Beneficiary, the Committee may, in its
sole discretion, determine that spousal consent is required to be provided in a form designated by
the Committee, executed by such Participant’s spouse and returned to the Committee. Upon the
acceptance by the Committee of a new Beneficiary Designation Form, all Beneficiary designations
previously filed shall be canceled. The Committee shall be entitled to rely on the last Beneficiary
Designation Form filed by the Participant and accepted by the Committee prior to his or her death.

	 
	10.3	 	Acknowledgment. No designation or change in designation of a Beneficiary shall be
effective until received and acknowledged in writing by the Committee or its designated agent.






	10.4	 	No Beneficiary Designation. If a Participant fails to designate a Beneficiary as
provided in Sections 10.1, 10.2 and 10.3 above or, if all designated Beneficiaries predecease the
Participant or die prior to complete distribution of the Participant’s benefits, then the
Participant’s designated Beneficiary shall be deemed to be his or her surviving spouse. If the
Participant has no surviving spouse, the benefits remaining under the Plan to be paid to a
Beneficiary shall be payable to the executor or personal representative of the Participant’s
estate.






	10.5	 	Doubt as to Beneficiary. If the Committee has any doubt as to the proper Beneficiary
to receive payments pursuant to this Plan, the Committee shall have the right, exercisable in its
discretion, to cause the Participant’s Employer to withhold such payments until this matter is
resolved to the Committee’s satisfaction.






	10.6	 	Discharge of Obligations. The payment of benefits under the Plan to a Beneficiary
shall fully and completely discharge all Employers and the Committee from all further obligations
under this Plan with respect to the Participant, and that Participant’s Plan Agreement shall
terminate upon such full payment of benefits.





ARTICLE 11

Leave of Absence





	11.1	 	Paid Leave of Absence. If a Participant is authorized by the Participant’s Employer to
take a paid leave of absence from the employment of the Employer, and such leave of absence does
not constitute a Separation from Service, (i) the Participant shall continue to be considered
eligible for the benefits provided under the Plan, and (ii) the Annual Deferral Amount shall
continue to be withheld during such paid leave of absence in accordance with Section 3.2.






	11.2	 	Unpaid Leave of Absence. If a Participant is authorized by the Participant’s Employer
to take an unpaid leave of absence from the employment of the Employer for any reason, and such
leave of absence does not constitute a Separation from Service, such Participant shall continue to
be eligible for the benefits provided under the Plan. During the unpaid leave of absence, the
Participant shall not be allowed to make any additional
deferral elections. However, if the Participant returns to employment, the Participant may elect to
defer an Annual Deferral Amount for the Plan Year following his or her return to employment and for
every Plan Year thereafter while a Participant in the Plan, provided such deferral elections are
otherwise allowed and an Election Form is delivered to and accepted by the Committee for each such election in accordance
with Section 3.2 above.




21









 












ARTICLE 12

Termination of Plan, Amendment or Modification





	12.1	 	Termination of Plan. Although each Employer anticipates that it will continue the Plan
for an indefinite period of time, there is no guarantee that any Employer will continue the Plan or
will not terminate the Plan at any time in the future. Accordingly, each Employer reserves the
right to terminate the Plan with respect to all of its Participants. In the event of a Plan
termination no new deferral elections shall be permitted for the affected Participants and such
Participants shall no longer be eligible to receive new company contributions. However, after the
Plan termination the Account Balances of such Participants shall continue to be credited with
Annual Deferral Amounts attributable to a deferral election that was in effect prior to the Plan
termination to the extent deemed necessary to comply with Code Section 409A and related Treasury
Regulations, and additional amounts shall continue to credited or debited to such Participants’
Account Balances pursuant to Section 3.7. The Measurement Funds available to Participants following
the termsination of the Plan shall be comparable in number and type to those Measurement Funds
available to Participants in the Plan Year preceding the Plan Year in which the Plan termination is
effective. In addition, following a Plan termination, Participant Account Balances shall remain in
the Plan and shall not be distributed until such amounts become eligible for distribution in
accordance with the other applicable provisions of the Plan. Notwithstanding the preceding
sentence, to the extent permitted by Treas. Reg. §1.409A-3(j)(4)(ix), the Employer may provide
that upon termination of the Plan, all Account Balances of the Participants shall be distributed,
subject to and in accordance with any rules established by such Employer deemed necessary to comply
with the applicable requirements and limitations of Treas. Reg.
§1.409A-3(j)(4)(ix).






	12.2	 	Amendment. Any Employer may, at anytime, amend or modify the Plan in whole or in part
with respect to that Employer. Notwithstanding the foregoing, (i) no amendment or modification
shall be effective to decrease the value of a Participant’s vested Account Balance in existence at
the time the amendment or modification is made, and (ii) no amendment or modification of this
Section 12.2 or Section 13.2 of the Plan shall be effective.






	12.3	 	Plan Agreement. Despite the provisions of Sections 12.1 and 12.2 above, if a
Participant’s Plan Agreement contains benefits or limitations that are not in this Plan document,
the Employer may only amend or terminate such provisions with the written consent of the
Participant.






	12.4	 	Effect of Payment. The full payment of the Participant’s vested Account Balance in
accordance with the applicable provisions of the Plan shall completely discharge all obligations to
a Participant and his or her designated Beneficiaries under this Plan, and the Participant’s Plan
Agreement shall terminate.





ARTICLE 13

Administration





	13.1	 	Committee Duties. Except as otherwise provided in this Article 13, this Plan shall be
administered by a Committee, which shall consist of the Board, or such committee as the Board shall
appoint. Members of the Committee may be Participants under this Plan. The Committee shall also
have the discretion and authority to (i) make, amend, interpret
and enforce all appropriate
rules and regulations for the administration of this Plan, and (ii) decide or resolve any and all
questions, including benefit entitlement determinations and interpretations of this Plan, as may
arise in connection with the Plan. Any individual serving on the Committee who is a




22









 






	 	 	Participant shall not vote or act on any matter relating solely to himself or herself. When making
a determination or calculation, the Committee shall be entitled to rely on information furnished by
a Participant or the Company.






	13.2	 	Administration Upon Change In Control. Within 120 days following a Change in Control,
the individuals who comprised the Committee immediately prior to the Change in Control (whether or
not such individuals are members of the Committee following the Change in Control) may, by written
consent of the majority of such individuals, appoint an independent third party administrator (the
“Administrator”) to perform any or all of the Committee’s duties described in Section 13.1 above,
including without limitation, the power to determine any questions arising in connection with the
administration or interpretation of the Plan, and the power to make benefit entitlement
determinations. Upon and after the effective date of such appointment, (i) the Company must pay all
reasonable administrative expenses and fees of the Administrator, and (ii) the Administrator may
only be terminated ‘with the written consent of the majority of Participants with an Account
Balance in the Plan as of the date of such proposed termination.






	13.3	 	Agents. In the administration of this Plan, the Committee or the Administrator, as
applicable, may, from time to time, employ agents and delegate to them such administrative duties
as it sees fit (including acting through a duly appointed representative) and may from time to time
consult with counsel.






	13.4	 	Binding Effect of Decisions. The decision or action of the Committee or Administrator,
as applicable, with respect to any question arising out of or in connection with the
administration, interpretation and application of the Plan and the rules and regulations
promulgated hereunder shall be final and conclusive and binding upon all persons having any
interest in the Plan.






	13.5	 	Indemnity of Committee. All Employers shall indemnify and hold harmless the members of
the Committee, any Employee to whom the duties of the Committee may be delegated, and the
Administrator against any and all claims, losses, damages, expenses or liabilities arising from any
action or failure to act with respect to this Plan, except in the case of willful misconduct by
the Committee, any of its members, any such Employee or the Administrator.






	13.6	 	Employer Information. To enable the Committee and/or Administrator to perform its
functions, the Company and each Employer shall supply full and timely information to the Committee
and/or Administrator, as the case may be, on all matters relating to the Plan, the Trust, the
Participants and their Beneficiaries, the Account Balances of the Participants, the compensation of
its Participants, the date and circumstances of the Separation from Service, Disability or death of
its Participants, and such other pertinent information as the Committee or Administrator may
reasonably require.





ARTICLE 14

Other Benefits and Agreements





	14.1	 	Coordination with Other Benefits. The benefits provided for a Participant and
Participant’s Beneficiary under the Plan are in addition to any other benefits available to such
Participant under any other plan or programe for employees of the
Participant’s Employer. The Plan shall supplement and shall not supersede, modify or amend any other such plan or program except as may
otherwise be expressly provided.




23









 











ARTICLE 15

Claims Procedures





	15.1	 	Presentation of Claim. Any Participant or Beneficiary of a deceased Participant (such
Participant or Beneficiary being referred to below as a “Claimant”) may deliver to the Committee a
written claim for a determination with respect to the amounts distributable to such Claimant from
the Plan. If such a claim relates to the contents of a notice received by the Claimant, the claim
must be made within 60 days after such notice was received by the Claimant. All other claims must
be made within 180 days of the date on which the event that caused the claim to arise occurred. The
claim must state with particularity the determination desired by the Claimant.






	15.2	 	Notification of Decision. The Committee shall consider a Claimant’s claim within a
reasonable time, but no later than 90 days after receiving the claim. If the Committee determines
that special circumstances require an extension of time for processing the claim, written notice of
the extension shall be furnished to the Claimant prior to the termination of the initial 90 day
period. In no event shall such extension exceed a period of 90 days from the end of the initial
period. The extension notice shall indicate the special circumstances requiring an extension of
time and the date by which the Committee expects to render the benefit determination. The Committee
shall notify the Claimant in writing:






	 	(a)	 	that the Claimant’s requested determination has been made, and that the claim has been
allowed in full; or
	 
	 	(b)	 	that the Committee has reached a conclusion contrary, in whole or in part, to the
Claimant’s requested determination, and such notice must set forth in a manner calculated to be
understood by the Claimant:






	 	(i)	 	the specific reason(s) for the denial of the claim, or any part of it;
	 
	 	(ii)	 	specific reference(s) to pertinent provisions of the Plan upon which such denial was based;
	 
	 	(iii)	 	a description of any additional material or information necessary for the Claimant to perfect
the claim, and an explanation of why such material or information is necessary;
	 
	 	(iv)	 	an explanation of the claim review procedure set forth in Section 15.3 below; and
	 
	 	(v)	 	a statement of the Claimant’s right to bring a civil action under ERISA Section 502(a)
following an adverse benefit determination on review.






	15.3	 	Review of a Denied Claim. On or before 60 days after receiving a notice from the
Committee that a claim has been denied, in whole or in part, a Claimant (or the Claimant’s duly
authorized representative) may file with the Committee a written
request for a review of the denial of the claim. The Claimant (or the Claimant’s duly authorized representative):






	 	(a)	 	may, upon request and free of charge, have reasonable access to, and copies of, all documents,
records and other information relevant (as defined in applicable ERISA regulations) to the claim
for benefits;




24









 






	 	(b)	 	may submit written comments or other documents; and/or
	 
	 	(c)	 	may request a hearing, which the Committee, in its sole discretion, may grant.






	15.4	 	Decision on Review. The Committee shall render its decision on review promptly, and no
later than 60 days after the Committee receives the Claimant’s written request for a review of the
denial of the claim. If the Committee determines that special circumstances require an extension of
time for processing the claim, written notice of the extension shall be furnished to the Claimant
prior to the termination of the initial 60 day period. In no event shall such extension exceed a
period of 60 days from the end of the initial period. The extension notice shall indicate the
special circumstances requiring an extension of time and the date by which the Committee expects to
render the benefit determination. In rendering its decision, the Committee shall take into account
all comments, documents, records and other information submitted by the Claimant relating to the
claim, without regard to whether such information was submitted or considered in the initial
benefit determination. The decision must be written in a manner calculated to be understood by the
Claimant, and it must contain:






	 	(a)	 	specific reasons for the decision;
	 
	 	(b)	 	specific reference(s) to the pertinent Plan provisions upon which the decision was based;
	 
	 	(c)	 	a statement that the Claimant is entitled to receive, upon request and free of charge,
reasonable access to and copies of, all documents, records and other information relevant (as
defined in applicable ERISA regulations) to the Claimant’s claim for benefits; and
	 
	 	(d)	 	a statement of the Claimant’s right to bring a civil action under ERISA Section 502(a).






	15.5	 	Legal Action. A Claimant’s compliance with the foregoing provisions of this Article 15
is a mandatory prerequisite to a Claimant’s right to commence any legal action with respect to any
claim for benefits under this Plan.





ARTICLE 16

Trust





	16.1	 	Establishment of the Trust. In order to provide
assets from which to fulfill its
obligations to the Participants and their Beneficiaries under the Plan, the Company may establish a
trust by a trust agreement with a third party, the trustee, to which each Employer may, in its
discretion, contribute cash or other property, including securities issued by the Company, to
provide for the benefit payments under the Plan (the “Trust”).






	16.2	 	Interrelationship of the Plan and the Trust. The provisions of the Plan and the Plan
Agreement shall govern the rights of a Participant to receive distributions pursuant to the Plan.
The provisions of the Trust shall govern the rights of the Employers,
Participants and the creditors of the Employers to the assets transferred to the Trust. Each
Employer shall at all times remain liable to carry out its obligations under the Plan.






	16.3	 	Distributions From the Trust. Each Employer’s obligations under the Plan may be
satisfied with Trust assets distributed pursuant to the terms of the Trust, and any such
distribution shall reduce the Employer’s obligations under this Plan.




25









 











ARTICLE 17

Miscellaneous





	17.1	 	Status of Plan. The Plan is intended to be a plan that is not qualified within the
meaning of Code Section 401(a) and that “is unfunded and is maintained by an employer primarily for
the purpose of providing deferred compensation for a select group of management or highly
compensated employees” within the meaning of ERISA Sections 201(2), 301(a)(3) and 401(a)(1). The
Plan shall be administered and interpreted (i) to the extent possible in a manner consistent with
the intent described in the preceding sentence, and (ii) in accordance with Code Section 409A and
related Treasury guidance and Regulations.






	17.2	 	Unsecured General Creditor. Participants and their Beneficiaries, heirs, successors
and assigns shall have no legal or equitable rights, interests or claims in any property or assets
of an Employer. For purposes of the payment of benefits under this Plan, any and all of an
Employer’s assets shall be, and remain, the general, unpledged unrestricted assets of the Employer.
An Employer’s obligation under the Plan shall be merely that of an unfunded and unsecured promise
to pay money in the future.






	17.3	 	Employer’s Liability. An Employer’s liability for the payment of benefits shall be
defined only by the Plan and the Plan Agreement, as entered into between the Employer and a
Participant. An Employer shall have no obligation to a Participant under the Plan except as
expressly provided in the Plan and his or her Plan Agreement.






	17.4	 	Nonassignability. Neither a Participant nor any other person shall have any right to
commute, sell, assign, transfer, pledge, anticipate, mortgage or otherwise encumber, transfer,
hypothecate, alienate or convey in advance of actual receipt, the amounts, if any, payable
hereunder, or any part thereof, which are, and all rights to which are expressly declared to be,
unassignable and non-transferable. No part of the amounts payable shall, prior to actual payment,
be subject to seizure, attachment, garnishment or sequestration for the payment of any debts,
judgments, alimony or separate maintenance owed by a Participant or any other person, be
transferable by operation of law in the event of a Participant’s or any other person’s bankruptcy
or insolvency or be transferable to a spouse as a result of a property settlement or otherwise.






	17.5	 	Not a Contract of Employment. The terms and conditions of this Plan shall not be
deemed to constitute a contract of employment between any Employer and the Participant. Such
employment is hereby acknowledged to be an “at will” employment relationship that can be terminated
at any time for any reason, or no reason, with or without cause, and with or without notice, unless
expressly provided in a written employment agreement. Nothing in this Plan shall be deemed to give
a Participant the right to be retained in the service of any Employer, either as an Employee or a
Director, or to interfere with the right of any Employer to discipline or discharge the Participant
at any time.






	17.6	 	Furnishing Information. A Participant or his or her Beneficiary will cooperate with
the Committee by furnishing any and all information requested by the Committee and take such other
actions as may be requested in order to facilitate the administration of the Plan and the payments
of benefits hereunder, including but not limited to taking such physical examinations as the
Committee may deem necessary.




26









 












	17.7	 	Terms. Whenever any words are used herein in the masculine, they shall be construed as
though they were in the feminine in all cases where they would so
apply; and whenever any words
are used herein in the singular or in the plural, they shall be construed as though they were used
in the plural or the singular, as the case may be, in all cases where they would so apply.






	17.8	 	Captions. The captions of the articles, sections and paragraphs of this Plan are for
convenience only and shall not control or affect the meaning or construction of any of its
provisions.






	17.9	 	Governing Law. Subject to ERISA, the provisions of this Plan shall be construed and
interpreted according to the internal laws of the State of Texas without regard to its conflicts of
laws principles.






	17.10	 	Notice. Any notice or filing required or permitted to be given to the Committee under
this Plan shall be sufficient if in writing and hand-delivered, or sent by registered or certified
mail, to the address below:




Service Corporation International


Attn: Vice President, Human Resources

1929 Allen Parkway

Houston, Texas 77019




	 	 	Such notice shall be deemed given as of the date of delivery
or, if delivery is made by mail, as of
the date shown on the postmark on the receipt for registration or certification.
	 	 	Any notice or filing required or permitted to be given to a Participant under this Plan shall be
sufficient if in writing and hand-delivered, or sent by mail, to the last known address of the
Participant.






	17.11	 	Successors. The provisions of this Plan shall bind and inure to the benefit of the
Participant’s Employer and its successors and assigns and the Participant and the Participant’s
designated Beneficiaries.






	17.12	 	Spouse’s Interest. The interest in the benefits hereunder of a spouse of a
Participant who has predeceased the Participant shall automatically pass to the Participant and
shall not be transferable by such spouse in any manner, including but not limited to such spouse’s
will, nor shall such interest pass under the laws of intestate succession.






	17.13	 	Validity. In case any provision of this Plan shall be illegal or invalid for any
reason, said illegality or invalidity shall not affect the remaining parts hereof, but this Plan
shall be construed and enforced as if such illegal or invalid provision had never been inserted
herein.






	17.14	 	Incompetent. If the Committee determines in its discretion that a benefit under this
Plan is to be paid to a minor, a person declared incompetent or to a person incapable of
handling the disposition of that person’s property, the Committee may direct payment of such
benefit to the guardian, legal representative or person having the care and custody of such minor,
incompetent or incapable person. The Committee may require proof of
minority, incompetence, incapacity or guardianship, as it may deem appropriate prior to distribution of the benefit. Any payment of a
benefit shall be a payment for the account of the Participant and the Participant’s Beneficiary, as




27









 






	 	 	the case may be, and shall be a complete discharge of any liability under the Plan for such payment
amount.
	17.15	 	Domestic Relations Orders. If necessary to comply with a domestic relations order, as
defined in Code Section 4l4(p)(l)(B), pursuant to which a court has determined that a spouse or
former spouse of a Participant has an interest in the Participant’s benefits under the Plan, the
Committee shall have the right to immediately distribute the spouse’s or former spouse’s interest
in the Participant’s benefits under the Plan to such spouse or former spouse.






	17.16	 	Distribution in the Event of Income Inclusion Under Code Section 409A. If any
portion of a Participant’s Account Balance under this Plan is required to be included in income by
the Participant prior to receipt due to a failure of this Plan to comply with the requirements of
Code Section 409A and related Treasury Regulations, the Committee may determine that such
Participant shall receive a distribution from the Plan in an amount equal to the lesser of (i) the
portion of his or her Account Balance required to be included in income as a result of the failure
of the Plan to comply with the requirements of Code Section 409A and related Treasury Regulations,
or (ii) the unpaid vested Account Balance.






	17.17	 	Deduction Limitation on Benefit Payments. If an Employer reasonably anticipates that
the Employer’s deduction with respect to any distribution from this Plan would be limited or
eliminated by application of Code Section 162(m), then to the
extent permitted by Treas. Reg. § 1.409A-2(b)(7)(i), payment shall be delayed as deemed necessary to ensure that the entire amount of
any distribution from this Plan is deductible. Any amounts for which distribution is delayed
pursuant to this Section shall continue to be credited/debited with additional amounts in
accordance with Section 3.7. The delayed amounts (and any amounts credited thereon) shall be
distributed to the Participant (or his or her Beneficiary in the event of the Participant’s death)
at the earliest date the Employer reasonably anticipates that the deduction of the payment of the
amount will not be limited or eliminated by application of Code Section 162(m). In the event that
such date is determined to be after a Participant’s Separation from Service and the Participant to
whom the payment relates is determined to be a Specified Employee, then to the extent deemed
necessary to comply with Treas. Reg. §1.409A-3(i)(2), the delayed payment shall not be made before
the end of the six-month period following such Participant’s Separation from Service.
	 
	 	 	IN WITNESS WHEREOF, the Company has signed this Plan document
as of 8th December, 2009.





	 	 	 	 	 
	 	SERVICE CORPORATION INTERNATIONAL,

a Texas corporation

 	 
	 	By:  	/s/ Jane D. Jones
 	 
	 	 	Jane D. Jones 	 
	 	 	Title:  	Vice President, Human Resources 	 
	 




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