EX-10.1










Exhibit 10.1




 




 




 




 




 




 




Chico’s FAS, Inc.

2005 Deferred Compensation Plan




(Utilizing Newport Template for Final Regulations)




 




 




 




 




 




 




 




 




 




 




Effective Date

January 1, 2005








 









 








Chico’s FAS, Inc. 2005 Deferred Compensation Plan




	 	 	 	 	 
	Article I
	 	 	 	 
	Establishment and Purpose
	 	 	1	 
	 
	 	 	 	 
	Article II
	 	 	 	 
	Definitions
	 	 	1	 
	 
	 	 	 	 
	Article III
	 	 	 	 
	Eligibility and Participation
	 	 	9	 
	 
	 	 	 	 
	Article IV
	 	 	 	 
	Deferrals
	 	 	9	 
	 
	 	 	 	 
	Article V
	 	 	 	 
	Company Contributions
	 	 	12	 
	 
	 	 	 	 
	Article VI
	 	 	 	 
	Benefits
	 	 	13	 
	 
	 	 	 	 
	Article VII
	 	 	 	 
	Modifications to Payment Schedules
	 	 	17	 
	 
	 	 	 	 
	Article VIII
	 	 	 	 
	Valuation of Account Balances; Investments
	 	 	18	 
	 
	 	 	 	 
	Article IX
	 	 	 	 
	Administration
	 	 	19	 
	 
	 	 	 	 
	Article X
	 	 	 	 
	Amendment and Termination
	 	 	20	 
	 
	 	 	 	 
	Article XI
	 	 	 	 
	Informal Funding
	 	 	21	 
	 
	 	 	 	 
	Article XII
	 	 	 	 
	Claims
	 	 	22	 
	 
	 	 	 	 
	Article XIII
	 	 	 	 
	General Provisions
	 	 	28	 







 









 








Chico’s FAS, Inc. 2005 Deferred Compensation Plan




Article I

Establishment and Purpose



Chico’s FAS, Inc. (the “Company”) hereby amends and restates the Chico’s FAS, Inc. Deferred
Compensation Plan (the “Plan”), effective January 1, 2008. This amendment and restatement is a
continuation of the Chico’s FAS, Inc. Deferred Compensation Plan effective April 1 but applies only
to amounts deferred under the Plan on or after January 1, 2005, and to amounts deferred prior to
January 1, 2005 that were not vested as of December 31, 2004. Amounts deferred under the Plan prior
to January 1, 2005 that were vested as of December 31, 2004 (the “Grandfathered Accounts”) shall be
subject to the provisions of the Plan as in effect on October 3, 2004, as the same may be amended
from time to time by the Company without material modification, it being expressly intended that
such Grandfathered Accounts are to remain exempt from the requirements of Code Section 409A. The
provisions of the Plan applicable to Grandfathered Accounts are reflected in this document for ease
of reference.



The purpose of the Plan is to attract and retain key employees by providing Participants with an
opportunity to defer receipt of a portion of their salary, bonus, and other specified compensation.
The Plan is not intended to meet the qualification requirements of Code Section 401(a), but is
intended to meet the requirements of Code Section 409A, and shall be operated and interpreted
consistent with that intent.



The Plan constitutes an unsecured promise by a Participating Employer to pay benefits in the
future. Participants in the Plan shall have the status of general unsecured creditors of the
Company or the Adopting Employer, as applicable. Each Participating Employer shall be solely
responsible for payment of the benefits of its employees and their beneficiaries. The Plan is
unfunded for Federal tax purposes and is intended to be an unfunded arrangement for eligible
employees who are part of a select group of management or highly compensated employees of the
Employer within the meaning of Sections 201(2), 301(a)(3) and 401(a)(1) of ERISA. Any amounts set
aside to defray the liabilities assumed by the Company or an Adopting Employer will remain the
general assets of the Company or the Adopting Employer and shall remain subject to the claims of
the Company’s or the Adopting Employer’s creditors until such amounts are distributed to the
Participants.



Article II

Definitions




	2.1	 	Account. Account means a bookkeeping account maintained by the Committee to record
the payment obligation of a Participating Employer to a Participant as determined under the
terms of the Plan. The Committee may maintain an Account to record the total obligation to a
Participant and component Accounts to reflect amounts payable at different times and in
different forms. Reference to an Account means any such Account established by the Committee,
as the context requires. Accounts are intended to constitute unfunded obligations within the
meaning of Sections 201(2), 301(a)(3) and 401(a)(1) of ERISA.





 




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	2.2	 	Account Balance. Account Balance means, with respect to any Account, the total
payment obligation owed to a Participant from such Account as of the most recent Valuation
Date.
	 
	2.3	 	Adopting Employer. Adopting Employer means an Affiliate who, with the consent of the
Company, has adopted the Plan for the benefit of its eligible employees.
	 
	2.4	 	Affiliate. Affiliate means a corporation, trade or business that, together with the
Company, is treated as a single employer under Code Section 414(b) or (c).
	 
	2.5	 	Beneficiary. Beneficiary means a natural person, estate, or trust designated by a
Participant to receive payments to which a Beneficiary is entitled in accordance with
provisions of the Plan. The Participant’s spouse, if living, otherwise the Participant’s
estate, shall be the Beneficiary if: (i) the Participant has failed to properly designate a
Beneficiary, or (ii) all designated Beneficiaries have predeceased the Participant.
	 
	 	 	A former spouse shall have no interest under the Plan, as Beneficiary or otherwise, unless
the Participant designates such person as a Beneficiary after dissolution of the marriage,
except to the extent provided under the terms of a domestic relations order as described in
Code Section 414(p)(1)(B).
	 
	2.6	 	Business Day. Business Day means each day on which the New York Stock Exchange is
open for business.
	 
	2.7	 	Change in Control. Change in Control means, with respect to a Participating Employer
that is organized as a corporation, any of the following events: (i) a change in the ownership
of the Participating Employer, (ii) a change in the effective control of the Participating
Employer, or (iii) a change in the ownership of a substantial portion of the assets of the
Participating Employer.
	 
	 	 	For purposes of this Section, a change in the ownership of the Participating Employer occurs
on the date on which any one person, or more than one person acting as a group, acquires
ownership of stock of the Participating Employer 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 the Participating Employer. A change in the effective control of the
Participating Employer occurs on the date on which either: (i) a person, or more than one
person acting as a group, acquires ownership of stock of the Participating Employer
possessing 30% or more of the total voting power of the stock of the Participating Employer,
taking into account all such stock acquired during the 12-month period ending on the date of
the most recent acquisition, or (ii) a majority of the members of the Participating
Employer’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 Board of
Directors prior to the date of the appointment or election, but only if no other corporation
is a majority shareholder of the Participating Employer . A change in the ownership of a
substantial portion of assets occurs on the date on which any one person, or more than one
person acting as a group, other than a person or group of





 




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	 	 	persons that is related to the Participating Employer, acquires assets from the
Participating Employer 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 Participating Employer
immediately prior to such acquisition or acquisitions, taking into account all such assets
acquired during the 12-month period ending on the date of the most recent acquisition.
	 
	 	 	An event constitutes a Change in Control with respect to a Participant only if the
Participant performs services for the Participating Employer that has experienced the Change
in Control, or the Participant’s relationship to the affected Participating Employer
otherwise satisfies the requirements of Treasury Regulation Section 1.409A-3(i)(5)(ii).
	 
	 	 	Notwithstanding anything to the contrary herein, with respect to a Participating Employer
that is a partnership, Change in Control means only a change in the ownership of the
partnership or a change in the ownership of a substantial portion of the assets of the
partnership, and the provisions set forth above respecting such changes relative to a
corporation shall be applied by analogy.
	 
	 	 	The determination as to the occurrence of a Change in Control shall be based on objective
facts and in accordance with the requirements of Code Section 409A.
	 
	2.8	 	Claimant. Claimant means a Participant or Beneficiary filing a claim under Article
XII of this Plan.
	 
	2.9	 	Code. Code means the Internal Revenue Code of 1986, as amended from time to time.
	 
	2.10	 	Code Section 409A. Code Section 409A means section 409A of the Code, and regulations
and other guidance issued by the Treasury Department and Internal Revenue Service thereunder.
	 
	2.11	 	Committee. Committee means the committee appointed by the Board of Directors of the
Company (or the appropriate committee of such board) to administer the Plan. If no designation
is made, the Chief Executive Officer of the Company or his delegate shall have and exercise
the powers of the Committee.
	 
	2.12	 	Company. Company means Chico’s FAS, Inc.
	 
	2.13	 	Company Contribution. Company Contribution means a credit by a Participating Employer
to a Participant’s Account(s) in accordance with the provisions of Article V of the Plan.
Company Contributions are credited at the sole discretion of the Participating Employer and
the fact that a Company Contribution is credited in one year shall not obligate the
Participating Employer to continue to make such Company Contribution in subsequent years.
Unless the context clearly indicates otherwise, a reference to Company Contribution shall
include Earnings attributable to such contribution.
	 
	2.14	 	Company Stock. Company Stock means phantom shares of common stock issued by Company.





 




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	2.15	 	Compensation. Compensation means a Participant’s base salary, bonus, commission, and
such other cash or equity-based compensation (if any) approved by the Committee as
Compensation that may be deferred under this Plan. Compensation shall not include any
compensation that has been previously deferred under this Plan or any other arrangement
subject to Code Section 409A.
	 
	2.16	 	Compensation Deferral Agreement. Compensation Deferral Agreement means an agreement
between a Participant and a Participating Employer that specifies: (i) the amount of each
component of Compensation that the Participant has elected to defer to the Plan in accordance
with the provisions of Article IV, and (ii) the Payment Schedule applicable to one or more
Accounts. The Committee may permit different deferral amounts for each component of
Compensation and may establish a minimum or maximum deferral amount for each such component.
Unless otherwise specified by the Committee in the Compensation Deferral Agreement,
Participants may defer up to 80% of their base salary and up to 100% of other types of
Compensation for a Plan Year. A Compensation Deferral Agreement may also specify the
investment allocation described in Section 8.4.
	 
	2.17	 	Death Benefit. Death Benefit means the benefit payable under the Plan to a
Participant’s Beneficiary(ies) upon the Participant’s death as provided in Section 6.1 of the
Plan.
	 
	2.18	 	Deferral. Deferral means a credit to a Participant’s Account(s) that records that
portion of the Participant’s Compensation that the Participant has elected to defer to the
Plan in accordance with the provisions of Article IV. Unless the context of the Plan clearly
indicates otherwise, a reference to Deferrals includes Earnings attributable to such
Deferrals.
	 
	 	 	Deferrals shall be calculated with respect to the gross cash Compensation payable to the
Participant prior to any deductions or withholdings, but shall be reduced by the Committee
as necessary so that it does not exceed 100% of the cash Compensation of the Participant
remaining after deduction of all required income and employment taxes, other employee
benefit deductions, and other deductions required by law. Changes to payroll withholdings
that affect the amount of Compensation being deferred to the Plan shall be allowed only to
the extent permissible under Code Section 409A.
	 
	2.19	 	Disability Benefit. Disability Benefit means the benefit payable under the Plan to a
Participant in the event such Participant is determined to be Disabled.
	 
	2.20	 	Disabled. Disabled means that a Participant is, by reason of any
medically-determinable physical or mental impairment which can be expected to result in death
or can be expected to last for a continuous period of not less than 12 months: (i) unable to
engage in any substantial gainful activity, or (ii) receiving income replacement benefits for
a period of not less than three months under an accident and health plan covering employees of
the Participant’s employer. The Committee shall determine whether a Participant is Disabled in
accordance with Code Section 409A provided, however, that a





 




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Chico’s FAS, Inc. 2005 Deferred Compensation Plan





	 	 	Participant shall be deemed to be Disabled if determined to be totally disabled by the
Social Security Administration or the Railroad Retirement Board.
	 
	2.21	 	Earnings. Earnings means an adjustment to the value of an Account in accordance with
Article VIII.
	 
	2.22	 	Effective Date. Effective Date means January 1, 2005.
	 
	2.23	 	Eligible Employee. Eligible Employee means a member of a “select group of management
or highly compensated employees” of a Participating Employer within the meaning of Sections
201(2), 301(a)(3) and 401(a)(1) of ERISA, as determined by the Committee from time to time in
its sole discretion.
	 
	2.24	 	Employee. Employee means a common-law employee of an Employer.
	 
	2.25	 	Employer. Employer means, with respect to Employees it employs, the Company and each
Affiliate.
	 
	2.26	 	ERISA. ERISA means the Employee Retirement Income Security Act of 1974, as amended
from time to time.
	 
	2.27	 	Fiscal Year Compensation. Fiscal Year Compensation means Compensation earned during
one or more consecutive fiscal years of a Participating Employer, all of which is paid after
the last day of such fiscal year or years.
	 
	2.28	 	Grandfathered Account. Grandfathered Account means amounts deferred under the Plan
prior to January 1, 2005 that were vested as of December 31, 2004.
	 
	2.29	 	Participant. Participant means an Eligible Employee who has received notification of
his or her eligibility to defer Compensation under the Plan under Section 3.1 and any other
person with an Account Balance greater than zero, regardless of whether such individual
continues to be an Eligible Employee. A Participant’s continued participation in the Plan
shall be governed by Section 3.2 of the Plan.
	 
	2.30	 	Participating Employer. Participating Employer means the Company and each Adopting
Employer.
	 
	2.31	 	Payment Schedule. Payment Schedule means the date as of which payment of an Account
under the Plan will commence and the form in which payment of such Account will be made.
	 
	2.32	 	Performance-Based Compensation. Performance-Based Compensation means Compensation
where the amount of, or entitlement to, the Compensation is contingent on the satisfaction of
pre-established organizational or individual performance criteria relating to a performance
period of at least 12 consecutive months. Organizational or individual performance criteria
are considered pre-established if established in writing by





 




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	 	 	not later than 90 days after the commencement of the period of service to which the criteria
relate, provided that the outcome is substantially uncertain at the time the criteria are
established. The determination of whether Compensation qualifies as “Performance-Based
Compensation” will be made in accordance with Treas. Reg. Section 1.409A-1(e) and subsequent
guidance.
	 
	2.33	 	Plan. Generally, the term Plan means the “Chico’s FAS, Inc. 2005 Deferred
Compensation Plan” as documented herein and as may be amended from time to time hereafter.
However, to the extent permitted or required under Code Section 409A, the term Plan may in the
appropriate context also mean a portion of the Plan that is treated as a single plan under
Treas. Reg. Section 1.409A-1(c), or the Plan or portion of the Plan and any other nonqualified
deferred compensation plan or portion thereof that is treated as a single plan under such
section.
	 
	2.34	 	Plan Year. Plan Year means January 1 through December 31.
	 
	2.35	 	Retirement. Retirement means a Participant’s Separation from Service after attainment
of age 65.
	 
	2.36	 	Retirement Benefit. Retirement Benefit means the benefit payable to a Participant
under the Plan following the Retirement of the Participant.
	 
	2.37	 	Retirement/Termination Account. Retirement/Termination Account means an Account
established by the Committee to record the amounts payable to a Participant upon Separation
from Service. Unless the Participant has established a Specified Date Account, all Deferrals
and Company Contributions shall be allocated to a Retirement/Termination Account on behalf of
the Participant.
	 
	2.38	 	Separation from Service. Separation from Service means an Employee’s termination of
employment with the Employer. Whether a Separation from Service has occurred shall be
determined by the Committee in accordance with Code Section 409A.
	 
	 	 	Except in the case of an Employee on a bona fide leave of absence as provided below, an
Employee is deemed to have incurred a Separation from Service if the Employer and the
Employee reasonably anticipated that the level of services to be performed by the Employee
after a date certain would be reduced to 20% or less of the average services rendered by the
Employee during the immediately preceding 36-month period (or the total period of
employment, if less than 36 months) disregarding periods during which the Employee was on a
bona fide leave of absence.
	 
	 	 	An Employee who is absent from work due to military leave, sick leave, or other bona fide
leave of absence shall incur a Separation from Service on the first date immediately
following the later of: (i) the six month anniversary of the commencement of the leave, or
(ii) the expiration of the Employee’s right, if any, to reemployment under statute or
contract.





 




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	 	 	For purposes of determining whether a Separation from Service has occurred, the Employer
means the Employer as defined in Section 2.25 of the Plan, except that in applying Code
sections 1563(a)(1), (2) and (3) for purposes of determining whether another organization is
an Affiliate of the Company under Code Section 414(b), and in applying Treasury Regulation
Section 1.414(c)-2 for purposes of determining whether another organization is an Affiliate
of the Company under Code Section 414(c), “at least 50 percent” shall be used instead of “at
least 80 percent” each place it appears in those sections.
	 
	 	 	The Committee specifically reserves the right to determine whether a sale or other
disposition of substantial assets to an unrelated party constitutes a Separation from
Service with respect to a Participant providing services to the seller immediately prior to
the transaction and providing services to the buyer after the transaction. Such
determination shall be made in accordance with the requirements of Code Section 409A.
	 
	2.39	 	Specified Date Account. Specified Date Account means an Account established by the
Committee to record the amounts payable at a future date as specified in the Participant’s
Compensation Deferral Agreement. Unless otherwise determined by the Committee, a Participant
may maintain no more than five Specified Date Accounts. A Specified Date Account may be
identified in enrollment materials as an “In-Service Account” or such other name as
established by the Committee without affecting the meaning thereof.
	 
	2.40	 	Specified Date Benefit. Specified Date Benefit means the benefit payable to a
Participant under the Plan in accordance with Section 6.1(c).
	 
	2.41	 	Specified Employee. Specified Employee means an Employee who, as of the date of his
or her Separation from Service, is a “key employee” of the Company or any Affiliate, any stock
of which is actively traded on an established securities market or otherwise.
	 
	 	 	An Employee is a key employee if he or she meets the requirements of Code Section
416(i)(1)(A)(i), (ii), or (iii) (applied in accordance with applicable regulations
thereunder and without regard to Code Section 416(i)(5)) at any time during the 12-month
period ending on the Specified Employee Identification Date. Such Employee shall be treated
as a key employee for the entire 12-month period beginning on the Specified Employee
Effective Date.
	 
	 	 	For purposes of determining whether an Employee is a Specified Employee, the compensation of
the Employee shall be determined in accordance with the definition of compensation provided
under Treas. Reg. Section 1.415(c)-2(d)(3) (wages within the meaning of Code section 3401(a)
for purposes of income tax withholding at the source, plus amounts excludible from gross
income under section 125(a), 132(f)(4), 402(e)(3), 402(h)(1)(B), 402(k) or 457(b), without
regard to rules that limit the remuneration included in wages based on the nature or
location of the employment or the services performed); provided, however, that, with respect
to a nonresident alien who is not a Participant in the Plan, compensation shall not include
compensation that is not includible in the gross income of the Employee under Code Sections
872, 893, 894, 911,





 




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	     	 	931 and 933, provided such compensation is not effectively connected with the conduct of a
trade or business within the United States.
	 
	 	 	Notwithstanding anything in this paragraph to the contrary: (i) if a different definition of
compensation has been designated by the Company with respect to another nonqualified
deferred compensation plan in which a key employee participates, the definition of
compensation shall be the definition provided in Treas. Reg. Section 1.409A-1(i)(2), and
(ii) the Company may through action that is legally binding with respect to all nonqualified
deferred compensation plans maintained by the Company, elect to use a different definition
of compensation.
	 
	 	 	In the event of corporate transactions described in Treas. Reg. Section 1.409A-1(i)6), the
identification of Specified Employees shall be determined in accordance with the default
rules described therein, unless the Employer elects to utilize the available alternative
methodology through designations made within the timeframes specified therein.
	 
	2.42	 	Specified Employee Identification Date. Specified Employee Identification Date means
December 31, unless the Employer has elected a different date through action that is legally
binding with respect to all nonqualified deferred compensation plans maintained by the
Employer.
	 
	2.43	 	Specified Employee Effective Date. Specified Employee Effective Date means the first
day of the fourth month following the Specified Employee Identification Date, or such earlier
date as is selected by the Committee.
	 
	2.44	 	Substantial Risk of Forfeiture. Substantial Risk of Forfeiture means the description
specified in Treas. Reg. Section 1.409A-1(d).
	 
	2.45	 	Termination Benefit. Termination Benefit means the benefit payable to a Participant
under the Plan following the Participant’s Separation from Service prior to Retirement.
	 
	2.46	 	Unforeseeable Emergency. Unforeseeable Emergency means a severe financial hardship to
the Participant resulting from an illness or accident of the Participant, the Participant’s
spouse, the Participant’s dependent (as defined in Code section 152, without regard to section
152(b)(1), (b)(2), and (d)(1)(B)), or a Beneficiary; loss of the Participant’s property due to
casualty (including the need to rebuild a home following damage to a home not otherwise
covered by insurance, for example, as a result of a natural disaster); or other similar
extraordinary and unforeseeable circumstances arising as a result of events beyond the control
of the Participant. The types of events which may qualify as an Unforeseeable Emergency may be
limited by the Committee.
	 
	2.47	 	Valuation Date. Valuation Date means each Business Day.
	 
	2.48	 	Year of Service. Year of Service means each 12-month period of continuous service
with the Employer.





 




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Article III

Eligibility and Participation




	3.1	 	Eligibility and Participation. An Eligible Employee becomes a Participant upon the
earlier to occur of: (i) a credit of Company Contributions under Article V, or (ii) receipt of
notification of eligibility to participate.
	 
	3.2	 	Duration. A Participant shall be eligible to defer Compensation and receive
allocations of Company Contributions, subject to the terms of the Plan, for as long as such
Participant remains an Eligible Employee. A Participant who is no longer an Eligible Employee
but has not Separated from Service may not defer Compensation under the Plan beyond the Plan
Year in which he or she became ineligible but may otherwise exercise all of the rights of a
Participant under the Plan with respect to his or her Account(s). On and after a Separation
from Service, a Participant shall remain a Participant as long as his or her Account Balance
is greater than zero (0), and during such time may continue to make allocation elections as
provided in Section 8.4. An individual shall cease being a Participant in the Plan when all
benefits under the Plan to which he or she is entitled have been paid.





Article IV

Deferrals




	4.1	 	Deferral Elections, Generally.






	 	(a)	 	A Participant may elect to defer Compensation by submitting a Compensation
Deferral Agreement during the enrollment periods established by the Committee and in
the manner specified by the Committee, but in any event, in accordance with Section
4.2. A Compensation Deferral Agreement that is not timely filed with respect to a
service period or component of Compensation shall be considered void and shall have no
effect with respect to such service period or Compensation. The Committee may modify
any Compensation Deferral Agreement prior to the date the election becomes irrevocable
under the rules of Section 4.2.
	 
	 	(b)	 	The Participant shall specify on his or her Compensation Deferral Agreement the
amount of Deferrals and whether to allocate Deferrals to a Retirement/Termination
Account or to a Specified Date Account. If no designation is made, Deferrals shall be
allocated to the Retirement/Termination Account. A Participant may also specify in his
or her Compensation Deferral Agreement the Payment Schedule applicable to his or her
Plan Accounts. If the Payment Schedule is not specified in a Compensation Deferral
Agreement, the Payment Schedule shall be the Payment Schedule specified in Section 6.2.





 




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	4.2	 	Timing Requirements for Compensation Deferral Agreements.






	 	(a)	 	First Year of Eligibility. In the case of the first year in which an Eligible
Employee becomes eligible to participate in the Plan, he or she has up to 30 days
following his or her initial eligibility to submit a Compensation Deferral Agreement
with respect to Compensation to be earned during such year. The Compensation Deferral
Agreement described in this paragraph becomes irrevocable upon the end of such 30-day
period. The determination of whether an Eligible Employee may file a Compensation
Deferral Agreement under this paragraph shall be determined in accordance with the
rules of Code Section 409A, including the provisions of Treas. Reg. Section
1.409A-2(a)(7).
	 
	 	 	 	A Compensation Deferral Agreement filed under this paragraph applies to Compensation
earned on and after the date the Compensation Deferral Agreement becomes
irrevocable.
	 
	 	(b)	 	Prior Year Election. Except as otherwise provided in this Section 4.2,
Participants may defer Compensation by filing a Compensation Deferral Agreement no
later than December 31 of the year prior to the year in which the Compensation to be
deferred is earned. A Compensation Deferral Agreement described in this paragraph shall
become irrevocable with respect to such Compensation as of January 1 of the year in
which such Compensation is earned.
	 
	 	(c)	 	Performance-Based Compensation. Participants may file a Compensation Deferral
Agreement with respect to Performance-Based Compensation no later than the date that is
six months before the end of the performance period, provided that:






	 	(i)	 	the Participant performs services continuously from the later
of the beginning of the performance period or the date the criteria are
established through the date the Compensation Deferral Agreement is submitted;
and
	 
	 	(ii)	 	the Compensation is not readily ascertainable as of the date
the Compensation Deferral Agreement is filed.






	 	 	 	A Compensation Deferral Agreement becomes irrevocable with respect to
Performance-Based Compensation as of the day immediately following the latest date
for filing such election. Any election to defer Performance-Based Compensation that
is made in accordance with this paragraph and that becomes payable as a result of
the Participant’s death or disability (as defined in Treas. Reg. Section
1.409A-1(e)) or upon a Change in Control (as defined in Treas. Reg. Section
1.409A-3(i)(5)) prior to the satisfaction of the performance criteria, will be void.
	 
	 	(d)	 	Sales Commissions. Sales commissions (as defined in Treas. Reg. Section
1.409A-2(a)(12)(i)) are considered to be earned by the Participant in the taxable year
of the Participant in which the customer remits payment to the Employer.





 




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	 	 	 	The Compensation Deferral Agreement must be filed before the last day of the year
preceding the year in which the sales commissions are earned, and becomes
irrevocable after that date.
	 
	 	(e)	 	Fiscal Year Compensation. A Participant may defer Fiscal Year Compensation by
filing a Compensation Deferral Agreement prior to the first day of the fiscal year or
years in which such Fiscal Year Compensation is earned. The Compensation Deferral
Agreement described in this paragraph becomes irrevocable on the first day of the
fiscal year or years to which it applies.
	 
	 	(f)	 	Short-Term Deferrals. Compensation that meets the definition of a “short-term
deferral” described in Treas. Reg. Section 1.409A-1(b)(4) may be deferred in accordance
with the rules of Article VII, applied as if the date the Substantial Risk of
Forfeiture lapses is the date payments were originally scheduled to commence, provided,
however, that the provisions of Section 7.3 shall not apply to payments attributable to
a Change in Control (as defined in Treas. Reg. Section 1.409A-3(i)(5)).
	 
	 	(g)	 	Certain Forfeitable Rights. With respect to a legally binding right to a
payment in a subsequent year 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, an election to defer such Compensation
may be made on or before 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. The Compensation Deferral Agreement described in this paragraph becomes
irrevocable after such 30th day. If the forfeiture condition applicable to
the payment lapses before the end of the required service period as a result of the
Participant’s death or disability (as defined in Treas. Reg. Section 1.409A-3(i)(4)) or
upon a Change in Control (as defined in Treas. Reg. Section 1.409A-3(i)(5)), the
Compensation Deferral Agreement will be void unless it would be considered timely under
another rule described in this Section.
	 
	 	(h)	 	Company Awards. Participating Employers may unilaterally provide for deferrals
of Company awards prior to the date of such awards. Deferrals of Company awards (such
as sign-on, retention, or severance pay) may be negotiated with a Participant prior to
the date the Participant has a legally binding right to such Compensation.
	 
	 	(i)	 	“Evergreen” Deferral Elections. The Committee, in its discretion, may provide
in the Compensation Deferral Agreement that such Compensation Deferral Agreement will
continue in effect for each subsequent year or performance period. Such “evergreen”
Compensation Deferral Agreements will become effective with respect to an item of
Compensation on the date such election becomes irrevocable under this Section 4.2. An
evergreen Compensation Deferral Agreement may be terminated or modified prospectively
with respect to





 




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	 	 	 	Compensation for which such election remains revocable under this Section 4.2. A
Participant whose Compensation Deferral Agreement is cancelled in accordance with
Section 4.6 will be required to file a new Compensation Deferral Agreement under
this Article IV in order to recommence Deferrals under the Plan.






	4.3	 	Allocation of Deferrals. A Compensation Deferral Agreement may allocate Deferrals to
one or more Specified Date Accounts and/or to the Retirement/Termination Account. The
Committee may, in its discretion, establish a minimum deferral period for the establishment of
a Specified Date Account (for example, the third Plan Year following the year Compensation is
allocated to such accounts.).
	 
	4.4	 	Deductions from Pay. The Committee has the authority to determine the payroll
practices under which any component of Compensation subject to a Compensation Deferral
Agreement will be deducted from a Participant’s Compensation.
	 
	4.5	 	Vesting. Participant Deferrals shall be 100% vested at all times.
	 
	4.6	 	Cancellation of Deferrals. The Committee may cancel a Participant’s Deferrals: (i)
for the balance of the Plan Year in which an Unforeseeable Emergency occurs, (ii) if the
Participant receives a hardship distribution under the Employer’s qualified 401(k) plan,
through the end of the Plan Year in which the six month anniversary of the hardship
distribution falls, and (iii) during periods in which the Participant is unable to perform the
duties of his or her position or any substantially similar position due to a mental or
physical impairment that can be expected to result in death or last for a continuous period of
at least six months, provided cancellation occurs by the later of the end of the taxable year
of the Participant or the 15th day of the third month following the date the
Participant incurs the disability (as defined in this paragraph (iii)). In the event a
Participant receives an “Early Non-Scheduled Distribution” (voluntary withdrawal with
“haircut”) from a Grandfathered Account, the Participant shall continue to make Deferrals to
the Plan for the remainder of the Plan Year during which the Non-Scheduled Distribution was
made (despite language to the contrary in the prior Plan document), but shall not be permitted
to make Deferrals to the Plan in the Plan Year following the Plan Year in which the withdrawal
is made.





Article V

Company Contributions




	5.1	 	Discretionary Company Contributions. The Participating Employer may, from time to
time in its sole and absolute discretion, credit Company Contributions to any Participant in
any amount determined by the Participating Employer. Such contributions will be credited to a
Participant’s Retirement/Termination Account.
	 
	5.2	 	Vesting. Company Contributions described in Section 5.1, above, and the Earnings
thereon, shall vest in accordance with the vesting schedule(s) established by the





 




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	     	 	 Committee at the time that the Company Contribution is made. All Company Contributions shall
become 100% vested upon the occurrence of the earliest of: (i) the death of the Participant
while actively employed, (ii) the Disability of the Participant, (iii) Retirement of the
Participant, or (iv) a Change in Control. The Participating Employer may, at any time, in
its sole discretion, increase a Participant’s vested interest in a Company Contribution. The
portion of a Participant’s Accounts that remains unvested upon his or her Separation from
Service after the application of the terms of this Section 5.2 shall be forfeited.





Article VI

Benefits




	6.1	 	Benefits, Generally. A Participant shall be entitled to the following benefits under
the Plan:






	 	(a)	 	Retirement Benefit. Upon the Participant’s Separation from Service due to
Retirement, he or she shall be entitled to a Retirement Benefit. The Retirement Benefit
shall be equal to the vested portion of the Retirement/Termination Account and (i) if
the Retirement/Termination Account is payable in a lump sum, the unpaid balances of any
Specified Date Accounts, or (ii) if the Retirement/Termination Account is payable in
installments, the vested portion of any Specified Date Accounts with respect to which
payments have not yet commenced. The Retirement Benefit shall be based on the value of
that Account(s) as of the end of the month in which Separation from Service occurs or
such later date as the Committee, in its sole discretion, shall determine. Payment of
the Retirement Benefit will be made or begin the first day of the month following the
month in which Separation from Service occurs, provided, however, that with respect to
a Participant who is a Specified Employee as of the date such Participant incurs a
Separation from Service, payment will be made or begin on the first day of the seventh
month following the month in which such Separation from Service occurs. If the
Retirement Benefit is to be paid in the form of installments, any subsequent
installment payments to a Specified Employee will be paid on the anniversary of the
date the first payment would have been made had the Participant not been classified as
a Specified Employee.
	 
	 	(b)	 	Termination Benefit. Upon the Participant’s Separation from Service for reasons
other than death, Disability or Retirement, he or she shall be entitled to a
Termination Benefit. The Termination Benefit shall be equal to the vested portion of
the Retirement/Termination Account and: (i) if the Retirement/Termination Account is
payable in a lump sum, the unpaid balances of any Specified Date Accounts, or (ii) if
the Retirement/Termination Account is payable in installments, the vested portion of
any Specified Date Accounts with respect to which payments have not yet commenced. The
Termination Benefit shall be based on the value of that Account(s) as of the end of the
month in which Separation from Service occurs or such later date as the Committee, in
its sole





 




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	 	 	 	discretion, shall determine. Payment of the Termination Benefit will be made or
begin the first day of the month following the month in which Separation from
Service occurs, provided, however, that with respect to a Participant who is a
Specified Employee as of the date such Participant incurs a Separation from Service,
payment will be made or begin on the first day of the seventh month following the
month in which such Separation from Service occurs. If the Termination Benefit is to
be paid in the form of installments, any subsequent installment payments to a
Specified Employee will be paid on the anniversary of the date the first payment
would have been made had the Participant not been classified as a Specified
Employee.
	 
	 	(c)	 	Specified Date Benefit. If the Participant has established one or more
Specified Date Accounts, he or she shall be entitled to a Specified Date Benefit with
respect to each such Specified Date Account. The Specified Date Benefit shall be equal
to the vested portion of the Specified Date Account, based on the value of that Account
as of the end of the month designated by the Participant at the time the Account was
established. Payment of the Specified Date Benefit will be made or begin the first day
of the month following the designated month.
	 
	 	(d)	 	Disability Benefit. Upon a determination by the Committee that a Participant is
Disabled, he or she shall be entitled to a Disability Benefit. The Disability Benefit
shall be equal to the vested portion of the Retirement/Termination Account and the
unpaid balances of any Specified Date Accounts. The Disability Benefit shall be based
on the value of the Accounts as of the last day of the month prior to the month in
which payment is made, or such later date as is determined by the Committee, and will
be paid the first day of the seventh month following the month in which Disability of
such Participant occurred.
	 
	 	(e)	 	Death Benefit. In the event of the Participant’s death, his or her designated
Beneficiary(ies) shall be entitled to a Death Benefit. The Death Benefit shall be equal
to the vested portion of the Retirement/Termination Account and the unpaid balances of
any Specified Date Accounts. The Death Benefit shall be based on the value of the
Accounts as of the end of the month in which death occurred, with payment made in the
first day of the following month.
	 
	 	(f)	 	Unforeseeable Emergency Payments. A Participant who experiences an
Unforeseeable Emergency may submit a written request to the Committee to receive
payment of all or any portion of his or her vested Accounts. Whether a Participant or
Beneficiary is faced with an Unforeseeable Emergency permitting an emergency payment
shall be determined by the Committee based on the relevant facts and circumstances of
each case, but, in any case, a distribution on account of Unforeseeable Emergency may
not be made to the extent that such emergency is or may be reimbursed through insurance
or otherwise, by liquidation of the Participant’s assets, to the extent the liquidation
of such assets would not cause severe financial hardship, or by cessation of Deferrals
under this Plan. If an emergency payment is approved by the Committee, the amount of
the





 




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	 	 	 	payment shall not exceed the amount reasonably necessary to satisfy the need, taking
into account the additional compensation that is available to the Participant as the
result of cancellation of deferrals to the Plan, including amounts necessary to pay
any taxes or penalties that the Participant reasonably anticipates will result from
the payment. The amount of the emergency payment shall be subtracted first from the
vested portion of the Participant’s Retirement/Termination Account until depleted
and then from the vested Specified Date Accounts, beginning with the Specified Date
Account with the latest payment commencement date. Emergency payments shall be paid
in a single lump sum within the 90-day period following the date the payment is
approved by the Committee.
	 
	 	(g)	 	Voluntary Withdrawals of Grandfathered Accounts. A Participant may elect at any
time to voluntarily withdraw up to 90% of the vested Account Balance in his or her
Grandfathered Account(s). If such a withdrawal is requested, the Participant shall
forfeit an amount equal to 10% of the balance of the Grandfathered Account, to a
maximum reduction of $100,000, which shall be permanently forfeited, and he or she
shall not be permitted to make Deferrals to the Plan in the Plan Year following the
Plan Year in which the withdrawal is made.






	6.2	 	Form of Payment.






	 	(a)	 	Retirement Benefit. A Participant who is entitled to receive a Retirement
Benefit shall receive payment of such benefit in a single lump sum, unless the
Participant elects on his or her initial Compensation Deferral Agreement to have such
benefit paid in one of the following alternative forms of payment (i) substantially
equal annual installments over a period of two to fifteen years, as elected by the
Participant, or (ii) a lump sum payment of a percentage of the balance in the
Retirement/Termination Account, with the balance paid in substantially equal annual
installments over a period of two to fifteen years, as elected by the Participant.
	 
	 	(b)	 	Termination Benefit. A Participant who is entitled to receive a Termination
Benefit shall receive payment of such benefit in a single lump sum.
	 
	 	(c)	 	Specified Date Benefit. The Specified Date Benefit shall be paid in a single
lump sum, unless the Participant elects on the Compensation Deferral Agreement with
which the account was established to have the Specified Date Account paid in
substantially equal annual installments over a period of two to five years, as elected
by the Participant.
	 
	 	 	 	Notwithstanding any election of a form of payment by the Participant, upon a
Separation from Service the unpaid balance of a Specified Date Account with respect
to which payments have not commenced shall be paid in accordance with the form of
payment applicable to the Retirement, Termination, Disability or Death Benefit, as
applicable. If such benefit is payable in a single lump sum, the





 




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	 	 	 	unpaid balance of all Specified Date Accounts (including those in pay status) will
be paid in a lump sum.
	 
	 	(d)	 	Disability Benefit. A Participant who is entitled to receive a Disability
Benefit shall receive payment of such benefit in a single lump sum.
	 
	 	(e)	 	Death Benefit. A designated Beneficiary who is entitled to receive a Death
Benefit shall receive payment of such benefit in a single lump sum.
	 
	 	(f)	 	Change in Control. A Participant will receive his or her Retirement or
Termination Benefit in a single lump sum payment equal to the unpaid balance of all of
his or her Accounts if Separation from Service occurs within 24 months following a
Change in Control.
	 
	 	 	 	A Participant or Beneficiary receiving installment payments when a Change in Control
occurs, will receive the remaining account balance in a single lump sum within 90
days following the Change in Control.
	 
	 	(g)	 	Small Account Balances. The Committee shall pay the value of the Participant’s
Accounts upon a Separation from Service in a single lump sum if the balance of such
Accounts is not greater than the applicable dollar amount under Code Section
402(g)(1)(B), provided the payment represents the complete liquidation of the
Participant’s interest in the Plan.
	 
	 	(h)	 	Rules Applicable to Installment Payments. If a Payment Schedule specifies
installment payments, annual payments will be made beginning as of the payment
commencement date for such installments and shall continue on each anniversary thereof
until the number of installment payments specified in the Payment Schedule has been
paid. The amount of each installment payment shall be determined by dividing (a) by
(b), where (a) equals the Account Balance as of the Valuation Date and (b) equals the
remaining number of installment payments.
	 
	 	 	 	For purposes of Article VII, installment payments will be treated as a single form
of payment. If a lump sum equal to less than 100% of the Retirement/Termination
Account is paid, the payment commencement date for the installment form of payment
will be the first anniversary of the payment of the lump sum.
	 
	 	(i)	 	Payments from Grandfathered Accounts. Upon termination of employment other
than by reason of death and if: (i)the Participant’s Account Balance is at least
$50,000, and (ii) the Participant has at least attained the age of 50 with 10 or more
Years of Service with the Company, the Distributable Amount (defined in the prior Plan)
shall be paid to the Participant in substantially equal annual installments over
fifteen years commencing on the first day of the thirteenth month following the date of
termination, or if properly elected, beginning on such later date as is elected by the
Participant in any of the succeeding four Plan Years.





 




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	6.3	 	Acceleration of or Delay in Payments. The Committee, in its sole and absolute
discretion, may elect to accelerate the time or form of payment of a benefit owed to the
Participant hereunder, provided such acceleration is permitted under Treas. Reg. Section
1.409A-3(j)(4). The Committee may also, in its sole and absolute discretion, delay the time
for payment of a benefit owed to the Participant hereunder, to the extent permitted under
Treas. Reg. Section 1.409A-2(b)(7). If the Plan receives a domestic relations order (within
the meaning of Code Section 414(p)(1)(B)) directing that all or a portion of a Participant’s
Accounts be paid to an “alternate payee,” any amounts to be paid to the alternate payee(s)
shall be paid in a single lump sum.





Article VII

Modifications to Payment Schedules




	7.1	 	Participant’s Right to Modify. A Participant may modify any or all of the
alternative Payment Schedules with respect to an Account, consistent with the permissible
Payment Schedules available under the Plan, provided such modification complies with the
requirements of this Article VII.
	 
	7.2	 	Time of Election. The date on which a modification election is submitted to the
Committee must be at least 12 months prior to the date on which payment is scheduled to
commence under the Payment Schedule in effect prior to the modification.
	 
	7.3	 	Date of Payment under Modified Payment Schedule. Except with respect to modifications
that relate to the payment of a Death Benefit or a Disability Benefit, the date payments are
to commence under the modified Payment Schedule must be no earlier than five years after the
date payment would have commenced under the original Payment Schedule. Under no circumstances
may a modification election result in an acceleration of payments in violation of Code Section
409A.
	 
	7.4	 	Effective Date. A modification election submitted in accordance with this Article VII
is irrevocable upon receipt by the Committee and becomes effective 12 months after such date.
	 
	7.5	 	Effect on Accounts. An election to modify a Payment Schedule is specific to the
Account or payment event to which it applies, and shall not be construed to affect the Payment
Schedules of any other Accounts.
	 
	7.6	 	Modifications to Grandfathered Accounts. Notwithstanding the preceding provisions of
this Article VII, a Participant may twice extend the time of payment applicable to a
Grandfathered Account having a “Scheduled Withdrawal Date” at any time, provided the
modification is submitted in writing at least 12 months in advance of the date the
Grandfathered Account is scheduled to be paid and the extension is for at least two years.





 




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Article VIII

Valuation of Account Balances; Investments




	8.1	 	Valuation. Deferrals shall be credited to appropriate Accounts on the date such
Compensation would have been paid to the Participant absent the Compensation Deferral
Agreement. Company Contributions shall be credited to the Retirement/Termination Account at
the times determined by the Committee. Valuation of Accounts shall be performed under
procedures approved by the Committee.
	 
	8.2	 	Earnings Credit. Each Account will be credited with Earnings on each Business Day,
based upon the Participant’s investment allocation among a menu of investment options selected
in advance by the Committee, in accordance with the provisions of this Article VIII
(“investment allocation”).
	 
	8.3	 	Investment Options. Investment options will be determined by the Committee. The
Committee, in its sole discretion, shall be permitted to add or remove investment options from
the Plan menu from time to time, provided that any such additions or removals of investment
options shall not be effective with respect to any period prior to the effective date of such
change.
	 
	8.4	 	Investment Allocations. A Participant’s investment allocation constitutes a deemed,
not actual, investment among the investment options comprising the investment menu. At no time
shall a Participant have any real or beneficial ownership in any investment option included in
the investment menu, nor shall the Participating Employer or any trustee acting on its behalf
have any obligation to purchase actual securities as a result of a Participant’s investment
allocation. A Participant’s investment allocation shall be used solely for purposes of
adjusting the value of a Participant’s Account Balances.
	 
	 	 	A Participant shall specify an investment allocation for each of his Accounts in accordance
with procedures established by the Committee. Allocation among the investment options must
be designated in increments of 1%. The Participant’s investment allocation will become
effective on the same Business Day or, in the case of investment allocations received after
a time specified by the Committee, the next Business Day.
	 
	 	 	A Participant may change an investment allocation on any Business Day, both with respect to
future credits to the Plan and with respect to existing Account Balances, in accordance with
procedures adopted by the Committee. Changes shall become effective on the same Business Day
or, in the case of investment allocations received after a time specified by the Committee,
the next Business Day, and shall be applied prospectively.
	 
	8.5	 	Unallocated Deferrals and Accounts. If the Participant fails to make an investment
allocation with respect to an Account, such Account shall be invested in an investment option,
the primary objective of which is the preservation of capital, as determined by the Committee.





 




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	8.6	 	Company Stock. The Committee may include Company Stock as one of the investment
options described in Section 8.3. The Committee may, in its sole discretion, limit the
investment allocation of Company Contributions to Company Stock. The Committee may also
require Deferrals consisting of equity-based Compensation to be allocated to Company Stock.
	 
	8.7	 	Diversification. A Participant may not re-allocate an investment in Company Stock
into another investment option. The portion of an Account that is invested in Company Stock
will be paid under Article VI in the form of whole shares of Company Stock.
	 
	8.8	 	Effect on Installment Payments. If an Account is to be paid in installments, the
Committee will determine the portion of each payment that will be paid in the form of Company
Stock.
	 
	8.9	 	Dividend Equivalents. Dividend equivalents with respect to Company Stock will be
credited to the applicable Accounts in the form of additional shares or units of Company
Stock.





Article IX

Administration




	9.1	 	Plan Administration. This Plan shall be administered by the Committee which shall
have discretionary authority to make, amend, interpret and enforce all appropriate rules and
regulations for the administration of this Plan and to utilize its discretion to decide or
resolve any and all questions, including but not limited to eligibility for benefits and
interpretations of this Plan and its terms, as may arise in connection with the Plan. Claims
for benefits shall be filed with the Committee and resolved in accordance with the claims
procedures in Article XII.
	 
	9.2	 	Administration Upon Change in Control. Upon a Change in Control, the Committee, as
constituted immediately prior to such Change in Control, shall continue to act as the
Committee. The individual who was the Chief Executive Officer of the Company (or if such
person is unable or unwilling to act, the next highest ranking officer) prior to the Change in
Control shall have the authority (but shall not be obligated) to appoint an independent third
party to act as the Committee.
	 
	 	 	Upon such Change in Control, the Company may not remove the Committee, unless 2/3rds of the
members of the Board of Directors of the Company and a majority of Participants and
Beneficiaries with Account Balances consent to the removal and replacement of the Committee.
Notwithstanding the foregoing, neither the Committee nor the officer described above shall
have authority to direct investment of trust assets under any rabbi trust described in
Section 11.2.
	 
	 	 	The Participating Employer shall, with respect to the Committee identified under this
Section: (i) pay all reasonable expenses and fees of the Committee, (ii) indemnify the





 




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	 	 	Committee (including individuals serving as Committee members) against any costs, expenses
and liabilities including, without limitation, attorneys’ fees and expenses arising in
connection with the performance of the Committee’s duties hereunder, except with respect to
matters resulting from the Committee’s gross negligence or willful misconduct, and (iii)
supply full and timely information to the Committee on all matters related to the Plan, any
rabbi trust, Participants, Beneficiaries and Accounts as the Committee may reasonably
require.
	 
	9.3	 	Withholding. The Participating Employer shall have the right to withhold from any
payment due under the Plan (or with respect to any amounts credited to the Plan) any taxes
required by law to be withheld in respect of such payment (or credit). Withholdings with
respect to amounts credited to the Plan shall be deducted from Compensation that has not been
deferred to the Plan.
	 
	9.4	 	Indemnification. The Participating Employers shall indemnify and hold harmless each
employee, officer, director, agent or organization, to whom or to which are delegated duties,
responsibilities, and authority under the Plan or otherwise with respect to administration of
the Plan, including, without limitation, the Committee and its agents, against all claims,
liabilities, fines and penalties, and all expenses reasonably incurred by or imposed upon him
or it (including but not limited to reasonable attorney fees) which arise as a result of his
or its actions or failure to act in connection with the operation and administration of the
Plan to the extent lawfully allowable and to the extent that such claim, liability, fine,
penalty, or expense is not paid for by liability insurance purchased or paid for by the
Participating Employer. Notwithstanding the foregoing, the Participating Employer shall not
indemnify any person or organization if his or its actions or failure to act are due to gross
negligence or willful misconduct or for any such amount incurred through any settlement or
compromise of any action unless the Participating Employer consents in writing to such
settlement or compromise.
	 
	9.5	 	Delegation of Authority. In the administration of this Plan, the Committee may, from
time to time, employ agents and delegate to them such administrative duties as it sees fit,
and may from time to time consult with legal counsel who shall be legal counsel to the
Company.
	 
	9.6	 	Binding Decisions or Actions. The decision or action of the Committee in respect of
any question arising out of or in connection with the administration, interpretation and
application of the Plan and the rules and regulations thereunder shall be final and conclusive
and binding upon all persons having any interest in the Plan.





Article X

Amendment and Termination




	10.1	 	Amendment and Termination. The Company may at any time and from time to time amend
the Plan or may terminate the Plan as provided in this Article X. Each





 




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	 	 	Participating Employer may also terminate its participation in the Plan.
	 
	10.2	 	Amendments. The Company, by action taken by its Board of Directors, may amend the
Plan at any time and for any reason, provided that any such amendment shall not reduce the
vested Account Balances of any Participant accrued as of the date of any such amendment or
restatement (as if the Participant had incurred a voluntary Separation from Service on such
date) or reduce any rights of a Participant under the Plan or other Plan features with respect
to Deferrals made prior to the date of any such amendment or restatement without the consent
of the Participant. The Board of Directors of the Company may delegate to the Committee the
authority to amend the Plan without the consent of the Board of Directors for the purpose of:
(i) conforming the Plan to the requirements of law; (ii) facilitating the administration of
the Plan; (iii) clarifying provisions based on the Committee’s interpretation of the document;
and (iv) making such other amendments as the Board of Directors may authorize.
	 
	10.3	 	Termination. The Company, by action taken by its Board of Directors, may terminate
the Plan and pay Participants and Beneficiaries their Account Balances in a single lump sum at
any time, to the extent and in accordance with Treas. Reg. Section 1.409A-3(j)(4)(ix). If a
Participating Employer terminates its participation in the Plan, the benefits of affected
Employees shall be paid at the time provided in Article VI.
	 
	10.4	 	Accounts Taxable Under Code Section 409A. The Plan is intended to constitute a plan
of deferred compensation that meets the requirements for deferral of income taxation under
Code Section 409A. The Committee, pursuant to its authority to interpret the Plan, may sever
from the Plan or any Compensation Deferral Agreement any provision or exercise of a right that
otherwise would result in a violation of Code Section 409A.





Article XI

Informal Funding




	11.1	 	General Assets. Obligations established under the terms of the Plan may be satisfied
from the general funds of the Participating Employers, or a trust described in this Article
XI. No Participant, spouse or Beneficiary shall have any right, title or interest whatever in
assets of the Participating Employers. Nothing contained in this Plan, and no action taken
pursuant to its provisions, shall create or be construed to create a trust of any kind, or a
fiduciary relationship, between the Participating Employers and any Employee, spouse, or
Beneficiary. To the extent that any person acquires a right to receive payments hereunder,
such rights are no greater than the right of an unsecured general creditor of the
Participating Employer.
	 
	11.2	 	Rabbi Trust. A Participating Employer may, in its sole discretion, establish a
grantor trust, commonly known as a rabbi trust, as a vehicle for accumulating assets to pay
benefits under the Plan. Payments under the Plan may be paid from the general assets of the
Participating Employer or from the assets of any such rabbi trust. Payment from any





 




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	     	 	such source shall reduce the obligation owed to the Participant or Beneficiary under the
Plan.





Article XII

Claims




	12.1	 	Filing a Claim. Any controversy or claim arising out of or relating to the Plan shall
be filed in writing with the Committee which shall make all determinations concerning such
claim. Any claim filed with the Committee and any decision by the Committee denying such claim
shall be in writing and shall be delivered to the Participant or Beneficiary filing the claim
(the “Claimant”).






	 	(a)	 	In General. Notice of a denial of benefits (other than Disability benefits)
will be provided within 90 days of the Committee’s receipt of the Claimant’s claim for
benefits. If the Committee determines that it needs additional time to review the
claim, the Committee will provide the Claimant with a notice of the extension before
the end of the initial 90-day period. The extension will not be more than 90 days from
the end of the initial 90-day period and the notice of extension will explain the
special circumstances that require the extension and the date by which the Committee
expects to make a decision.
	 
	 	(b)	 	Disability Benefits. Notice of denial of Disability benefits will be provided
within forty-five (45) days of the Committee’s receipt of the Claimant’s claim for
Disability benefits. If the Committee determines that it needs additional time to
review the Disability claim, the Committee will provide the Claimant with a notice of
the extension before the end of the initial 45-day period. If the Committee determines
that a decision cannot be made within the first extension period due to matters beyond
the control of the Committee, the time period for making a determination may be further
extended for an additional 30 days. If such an additional extension is necessary, the
Committee shall notify the Claimant prior to the expiration of the initial 30-day
extension. Any notice of extension shall indicate the circumstances necessitating the
extension of time, the date by which the Committee expects to furnish a notice of
decision, the specific standards on which such entitlement to a benefit is based, the
unresolved issues that prevent a decision on the claim and any additional information
needed to resolve those issues. A Claimant will be provided a minimum of 45 days to
submit any necessary additional information to the Committee. In the event that a
30-day extension is necessary due to a Claimant’s failure to submit information
necessary to decide a claim, the period for furnishing a notice of decision shall be
tolled from the date on which the notice of the extension is sent to the Claimant until
the earlier of the date the Claimant responds to the request for additional information
or the response deadline.
	 
	 	(c)	 	Contents of Notice. If a claim for benefits is completely or partially denied,
notice of such denial shall be in writing and shall set forth the reasons for denial in
plain





 




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	 	     	 	language. The notice shall: (i) cite the pertinent provisions of the Plan document,
and (ii) explain, where appropriate, how the Claimant can perfect the claim,
including a description of any additional material or information necessary to
complete the claim and why such material or information is necessary. The claim
denial also shall include an explanation of the claims review procedures and the
time limits applicable to such procedures, including a statement of the Claimant’s
right to bring a civil action under Section 502(a) of ERISA following an adverse
decision on review. In the case of a complete or partial denial of a Disability
benefit claim, the notice shall provide a statement that the Committee will provide
to the Claimant, upon request and free of charge, a copy of any internal rule,
guideline, protocol, or other similar criterion that was relied upon in making the
decision.






	12.2	 	Appeal of Denied Claims. A Claimant whose claim has been completely or partially
denied shall be entitled to appeal the claim denial by filing a written appeal with a
committee designated to hear such appeals (the “Appeals Committee”). A Claimant who timely
requests a review of the denied claim (or his or her authorized representative) may review,
upon request and free of charge, copies of all documents, records and other information
relevant to the denial and may submit written comments, documents, records and other
information relevant to the claim to the Appeals Committee. All written comments, documents,
records, and other information shall be considered “relevant” if the information: (i) was
relied upon in making a benefits determination, (ii) was submitted, considered or generated in
the course of making a benefits decision regardless of whether it was relied upon to make the
decision, or (iii) demonstrates compliance with administrative processes and safeguards
established for making benefit decisions. The Appeals Committee may, in its sole discretion
and if it deems appropriate or necessary, decide to hold a hearing with respect to the claim
appeal.






	 	(a)	 	In General. Appeal of a denied benefits claim (other than a Disability benefits
claim) must be filed in writing with the Appeals Committee no later than 60 days after
receipt of the written notification of such claim denial. The Appeals Committee shall
make its decision regarding the merits of the denied claim within 60 days following
receipt of the appeal (or within 120 days after such receipt, in a case where there are
special circumstances requiring extension of time for reviewing the appealed claim). If
an extension of time for reviewing the appeal is required because of special
circumstances, written notice of the extension shall be furnished to the Claimant prior
to the commencement of the extension. The notice will indicate the special
circumstances requiring the extension of time and the date by which the Appeals
Committee expects to render the determination on review. The review will take into
account 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.
	 
	 	(b)	 	Disability Benefits. Appeal of a denied Disability benefits claim must be filed
in writing with the Appeals Committee no later than 180 days after receipt of the





 




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	 	 	 	written notification of such claim denial. The review shall be conducted by the
Appeals Committee (exclusive of the person who made the initial adverse decision or
such person’s subordinate). In reviewing the appeal, the Appeals Committee shall:
(i) not afford deference to the initial denial of the claim, (ii) consult a medical
professional who has appropriate training and experience in the field of medicine
relating to the Claimant’s disability and who was neither consulted as part of the
initial denial nor is the subordinate of such individual, and (iii) identify the
medical or vocational experts whose advice was obtained with respect to the initial
benefit denial, without regard to whether the advice was relied upon in making the
decision. The Appeals Committee shall make its decision regarding the merits of the
denied claim within 45 days following receipt of the appeal (or within 90 days after
such receipt, in a case where there are special circumstances requiring extension of
time for reviewing the appealed claim). If an extension of time for reviewing the
appeal is required because of special circumstances, written notice of the extension
shall be furnished to the Claimant prior to the commencement of the extension. The
notice will indicate the special circumstances requiring the extension of time and
the date by which the Appeals Committee expects to render the determination on
review. Following its review of any additional information submitted by the
Claimant, the Appeals Committee shall render a decision on its review of the denied
claim.
	 
	 	(c)	 	Contents of Notice. If a benefits claim is completely or partially denied on
review, notice of such denial shall be in writing and shall set forth the reasons for
denial in plain language.
	 
	 	 	 	The decision on review shall set forth: (i) the specific reason or reasons for the
denial, (ii) specific references to the pertinent Plan provisions on which the
denial is based, (iii) a statement that the Claimant is entitled to receive, upon
request and free of charge, reasonable access to and copies of all documents,
records, or other information relevant (as defined above) to the Claimant’s claim,
and (iv) a statement describing any voluntary appeal procedures offered by the plan
and a statement of the Claimant’s right to bring an action under Section 502(a) of
ERISA.
	 
	 	(d)	 	For the denial of a Disability benefit, the notice will also include a
statement that the Appeals Committee will provide, upon request and free of charge: (i)
any internal rule, guideline, protocol or other similar criterion relied upon in making
the decision, (ii) any medical opinion relied upon to make the decision, and (iii) the
required statement under Section 2560.503-1(j)(5)(iii) of the Department of Labor
regulations.






	12.3	 	Claims Appeals Upon Change in Control. Upon a Change in Control, the Appeals
Committee, as constituted immediately prior to such Change in Control, shall continue to act
as the Appeals Committee. Upon such Change in Control, the Company may not remove any member
of the Appeals Committee, but may replace resigning members if





 




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	 	 	2/3rds of the members of the Board of Directors of the Company and a majority of
Participants and Beneficiaries with Account Balances consent to the replacement.
	 
	 	 	The Appeals Committee shall have the exclusive authority at the appeals stage to interpret
the terms of the Plan and resolve appeals under the Claims Procedure.
	 
	 	 	Each Participating Employer shall, with respect to the Committee identified under this
Section: (i) pay its proportionate share of all reasonable expenses and fees of the Appeals
Committee, (ii) indemnify the Appeals Committee (including individual committee members)
against any costs, expenses and liabilities including, without limitation, attorneys’ fees
and expenses arising in connection with the performance of the Appeals Committee hereunder,
except with respect to matters resulting from the Appeals Committee’s gross negligence or
willful misconduct, and (iii) supply full and timely information to the Appeals Committee on
all matters related to the Plan, any rabbi trust, Participants, Beneficiaries and Accounts
as the Appeals Committee may reasonably require.
	 
	12.4	 	Legal Action. A Claimant may not bring any legal action, including commencement of
any arbitration, relating to a claim for benefits under the Plan unless and until the Claimant
has followed the claims procedures under the Plan and exhausted his or her administrative
remedies under such claims procedures.
	 
	 	 	If a Participant or Beneficiary prevails in a legal proceeding brought under the Plan to
enforce the rights of such Participant or any other similarly situated Participant or
Beneficiary, in whole or in part, the Participating Employer shall reimburse such
Participant or Beneficiary for all legal costs, expenses, attorneys’ fees and such other
liabilities incurred as a result of such proceedings. If the legal proceeding is brought in
connection with a Change in Control, or a “change in control” as defined in a rabbi trust
described in Section 11.2, the Participant or Beneficiary may file a claim directly with the
trustee for reimbursement of such costs, expenses and fees. For purposes of the preceding
sentence, the amount of the claim shall be treated as if it were an addition to the
Participant’s or Beneficiary’s Account Balance.
	 
	12.5	 	Discretion of Appeals Committee. All interpretations, determinations and decisions of
the Appeals Committee with respect to any claim shall be made in its sole discretion, and
shall be final and conclusive.
	 
	12.6	 	Arbitration.






	 	(a)	 	Prior to Change in Control. If, prior to a Change in Control, any claim or
controversy between a Participating Employer and a Participant or Beneficiary is not
resolved through the claims procedure set forth in Article XII, such claim shall be
submitted to and resolved exclusively by expedited binding arbitration by a single
arbitrator. Arbitration shall be conducted in accordance with the following
procedures:





 




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	 	 	 	 The complaining party shall promptly send written notice to the other party
identifying the matter in dispute and the proposed remedy. Following the giving of
such notice, the parties shall meet and attempt in good faith to resolve the matter.
In the event the parties are unable to resolve the matter within 21 days, the
parties shall meet and attempt in good faith to select a single arbitrator
acceptable to both parties. If a single arbitrator is not selected by mutual consent
within ten Business Days following the giving of the written notice of dispute, an
arbitrator shall be selected from a list of nine persons each of whom shall be an
attorney who is either engaged in the active practice of law or recognized
arbitrator and who, in either event, is experienced in serving as an arbitrator in
disputes between employers and employees, which list shall be provided by the main
office of either JAMS, the American Arbitration Association (“AAA”) or the Federal
Mediation and Conciliation Service. If, within three Business Days of the parties’
receipt of such list, the parties are unable to agree on an arbitrator from the
list, then the parties shall each strike names alternatively from the list, with the
first to strike being determined by the flip of a coin. After each party has had
four strikes, the remaining name on the list shall be the arbitrator. If such person
is unable to serve for any reason, the parties shall repeat this process until an
arbitrator is selected.
	 
	 	 	 	Unless the parties agree otherwise, within 60 days of the selection of the
arbitrator, a hearing shall be conducted before such arbitrator at a time and a
place agreed upon by the parties. In the event the parties are unable to agree upon
the time or place of the arbitration, the time and place shall be designated by the
arbitrator after consultation with the parties. Within 30 days of the conclusion of
the arbitration hearing, the arbitrator shall issue an award, accompanied by a
written decision explaining the basis for the arbitrator’s award.
	 
	 	 	 	In any arbitration hereunder, the Participating Employer shall pay all
administrative fees of the arbitration and all fees of the arbitrator, except that
the Participant or Beneficiary may, if he/she/it wishes, pay up to one-half of those
amounts. Each party shall pay its own attorneys’ fees, costs, and expenses, unless
the arbitrator orders otherwise. The prevailing party in such arbitration, as
determined by the arbitrator, and in any enforcement or other court proceedings,
shall be entitled, to the extent permitted by law, to reimbursement from the other
party for all of the prevailing party’s costs (including but not limited to the
arbitrator’s compensation), expenses, and attorneys’ fees. The arbitrator shall have
no authority to add to or to modify this Plan, shall apply all applicable law, and
shall have no lesser and no greater remedial authority than would a court of law
resolving the same claim or controversy. The arbitrator shall, upon an appropriate
motion, dismiss any claim without an evidentiary hearing if the party bringing the
motion establishes that it would be entitled to summary judgment if the matter had
been pursued in court litigation.
	 
	 	 	 	The parties shall be entitled to discovery as follows: Each party may take no more
than three depositions. The Participating Employer may depose the Participant or





 




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	 	 	 	Beneficiary plus two other witnesses, and the Participant or Beneficiary may depose
the Participating Employer, pursuant to Rule 30(b)(6) of the Federal Rules of Civil
Procedure, plus two other witnesses. Each party may make such reasonable document
discovery requests as are allowed in the discretion of the arbitrator.
	 
	 	 	 	The decision of the arbitrator shall be final, binding, and non-appealable, and may
be enforced as a final judgment in any court of competent jurisdiction.
	 
	 	 	 	This arbitration provision of the Plan shall extend to claims against any parent,
subsidiary, or affiliate of each party, and, when acting within such capacity, any
officer, director, shareholder, Participant, Beneficiary, or agent of any party, or
of any of the above, and shall apply as well to claims arising out of state and
federal statutes and local ordinances as well as to claims arising under the common
law or under this Plan.
	 
	 	 	 	Notwithstanding the foregoing, and unless otherwise agreed between the parties,
either party may apply to a court for provisional relief, including a temporary
restraining order or preliminary injunction, on the ground that the arbitration
award to which the applicant may be entitled may be rendered ineffectual without
provisional relief.
	 
	 	 	 	Any arbitration hereunder shall be conducted in accordance with the Federal
Arbitration Act: provided, however, that, in the event of any inconsistency between
the rules and procedures of the Act and the terms of this Plan, the terms of this
Plan shall prevail.
	 
	 	 	 	If any of the provisions of this Section 12.6(a) are determined to be unlawful or
otherwise unenforceable, in the whole part, such determination shall not affect the
validity of the remainder of this section and this section shall be reformed to the
extent necessary to carry out its provisions to the greatest extent possible and to
insure that the resolution of all conflicts between the parties, including those
arising out of statutory claims, shall be resolved by neutral, binding arbitration.
If a court should find that the provisions of this Section 12.6(a) are not
absolutely binding, then the parties intend any arbitration decision and award to be
fully admissible in evidence in any subsequent action, given great weight by any
finder of fact and treated as determinative to the maximum extent permitted by law.
	 
	 	 	 	The parties do not agree to arbitrate any putative class action or any other
representative action. The parties agree to arbitrate only the claims(s) of a single
Participant or Beneficiary.
	 
	 	(b)	 	Upon Change in Control. If, upon the occurrence of a Change in Control, any
dispute, controversy or claim arises between a Participant or Beneficiary and the
Participating Employer out of or relating to or concerning the provisions of the Plan,
such dispute, controversy or claim shall be finally settled by a court of





 




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	 	 	 	competent jurisdiction which, notwithstanding any other provision of the Plan, shall
apply a de novo standard of review to any determination made by the Company or its
Board of Directors, a Participating Employer, the Committee, or the Appeals
Committee.





Article XIII

General Provisions




	13.1	 	Assignment. No interest of any Participant, spouse or Beneficiary under this Plan and
no benefit payable hereunder shall be assigned as security for a loan, and any such purported
assignment shall be null, void and of no effect, nor shall any such interest or any such
benefit be subject in any manner, either voluntarily or involuntarily, to anticipation, sale,
transfer, assignment or encumbrance by or through any Participant, spouse or Beneficiary.
Notwithstanding anything to the contrary herein, however, the Committee has the discretion to
make payments to an alternate payee in accordance with the terms of a domestic relations order
(as defined in Code Section 414(p)(1)(B)).
	 
	 	 	The Company may assign any or all of its liabilities under this Plan in connection with any
restructuring, recapitalization, sale of assets or other similar transactions affecting a
Participating Employer without the consent of the Participant.
	 
	13.2	 	No Legal or Equitable Rights or Interest. No Participant or other person shall have
any legal or equitable rights or interest in this Plan that are not expressly granted in this
Plan. Participation in this Plan does not give any person any right to be retained in the
service of the Participating Employer. The right and power of a Participating Employer to
dismiss or discharge an Employee is expressly reserved. The Participating Employers make no
representations or warranties as to the tax consequences to a Participant or a Participant’s
beneficiaries resulting from a deferral of income pursuant to the Plan.
	 
	13.3	 	No Employment Contract. Nothing contained herein shall be construed to constitute a
contract of employment between an Employee and a Participating Employer.
	 
	13.4	 	Notice. Any notice or filing required or permitted to be delivered to the Committee
under this Plan shall be delivered in writing, in person, or through such electronic means as
is established by the Committee. 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. Written transmission shall be sent by certified mail to:





CHICO’S FAS, INC.

ATTN: DIRECTOR OF HUMAN RESOURCES

11215 METRO PARKWAY

FT. MYERS, FLORIDA 33966




 




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	 	 	Any notice or filing required or permitted to be given to a Participant under this Plan
shall be sufficient if in writing or hand-delivered, or sent by mail to the last known
address of the Participant.
	 
	13.5	 	Headings. The headings of Sections are included solely for convenience of reference,
and if there is any conflict between such headings and the text of this Plan, the text shall
control.
	 
	13.6	 	Invalid or Unenforceable Provisions. If any provision of this Plan shall be held
invalid or unenforceable, such invalidity or unenforceability shall not affect any other
provisions hereof and the Committee may elect in its sole discretion to construe such invalid
or unenforceable provisions in a manner that conforms to applicable law or as if such
provisions, to the extent invalid or unenforceable, had not been included.
	 
	13.7	 	Lost Participants or Beneficiaries. Any Participant or Beneficiary who is entitled to
a benefit from the Plan has the duty to keep the Committee advised of his or her current
mailing address. If benefit payments are returned to the Plan or are not presented for payment
after a reasonable amount of time, the Committee shall presume that the payee is missing. The
Committee, after making such efforts as in its discretion it deems reasonable and appropriate
to locate the payee, shall stop payment on any uncashed checks and may discontinue making
future payments until contact with the payee is restored.
	 
	13.8	 	Facility of Payment to a Minor. If a distribution is to be made to a minor, or to a
person who is otherwise incompetent, then the Committee may, in its discretion, make such
distribution: (i) to the legal guardian, or if none, to a parent of a minor payee with whom
the payee maintains his or her residence, or (ii) to the conservator or committee or, if none,
to the person having custody of an incompetent payee. Any such distribution shall fully
discharge the Committee, the Company, and the Plan from further liability on account thereof.
	 
	13.9	 	Governing Law. To the extent not preempted by ERISA, the laws of the State of Florida
shall govern the construction and administration of the Plan.





IN WITNESS WHEREOF, the undersigned executed this Plan as of the 18th day of
November, 2008, to be effective as of the Effective Date.



Chico’s FAS, Inc.




	 	 	 
	By: Manuel Jessup

 


	 	(Print Name)
	Its: EVP/Chief HR Officer

 


	 	(Title)
	/s/ Manuel Jessup

 


	 	(Signature)






 




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