Document:

Exhibit 10.1

 

SEVENTH
AMENDED AND RESTATED

 

TENET 2001
DEFERRED

 

COMPENSATION

 

PLAN

 

 

SEVENTH
AMENDED AND RESTATED

TENET 2001 DEFERRED COMPENSATION PLAN

 

Table of Contents

 

	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE I - PREAMBLE
  AND PURPOSE

  	
   

  	
  1

  
	
  1.1

  	
  Preamble

  	
   

  	
  1

  
	
  1.2

  	
  Purpose

  	
   

  	
  1

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE II -
  DEFINITIONS AND CONSTRUCTION

  	
   

  	
  2

  
	
  2.1

  	
  Definitions

  	
   

  	
  2

  
	
  2.2

  	
  Construction

  	
   

  	
  9

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE III -
  PARTICIPATION AND FORFEITABILITY OF BENEFITS

  	
   

  	
  10

  
	
  3.1

  	
  Eligibility
  and Participation

  	
   

  	
  10

  
	
  3.2

  	
  Forfeitability
  of Benefits

  	
   

  	
  11

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IV -
  DEFERRAL, COMPANY CONTRIBUTIONS, ACCOUNTING AND INVESTMENT CREDITING RATES

  	
   

  	
  12

  
	
  4.1

  	
  Deferral

  	
   

  	
  12

  
	
  4.2

  	
  Company
  Contributions

  	
   

  	
  14

  
	
  4.3

  	
  Accounting
  for Deferred Compensation

  	
   

  	
  15

  
	
  4.4

  	
  Investment
  Crediting Rates

  	
   

  	
  16

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE V -
  DISTRIBUTION OF BENEFITS – PRE-2005 ACCOUNTS

  	
   

  	
  19

  
	
  5.1

  	
  General
  Rules

  	
   

  	
  19

  
	
  5.2

  	
  Distributions
  Resulting from Termination

  	
   

  	
  19

  
	
  5.3

  	
  Scheduled
  In-Service Withdrawals

  	
   

  	
  20

  
	
  5.4

  	
  Non-Scheduled
  Withdrawals

  	
   

  	
  20

  
	
  5.5

  	
  Financial
  Necessity Distributions

  	
   

  	
  21

  
	
  5.6

  	
  Elective
  Distributions

  	
   

  	
  22

  
	
  5.7

  	
  Death of
  a Participant

  	
   

  	
  22

  
	
  5.8

  	
  Disability
  of a Participant

  	
   

  	
  22

  
	
  5.9

  	
  Change of
  Control

  	
   

  	
  22

  
	
  5.10

  	
  Withholding

  	
   

  	
  23

  
	
  5.11

  	
  Suspension
  of Benefits

  	
   

  	
  23

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VI -
  DISTRIBUTION OF BENEFITS – POST-2004 ACCOUNTS

  	
   

  	
  24

  
	
  6.1

  	
  Termination
  Distribution Election

  	
   

  	
  24

  
	
  6.2

  	
  Termination
  Distributions to Key Employees

  	
   

  	
  25

  
	
  6.3

  	
  Scheduled
  In-Service Withdrawals

  	
   

  	
  26

  
	
  6.4

  	
  Unforeseeable
  Emergency

  	
   

  	
  26

  
	
  6.5

  	
  Death of
  a Participant

  	
   

  	
  26

  
	
  6.6

  	
  Withholding

  	
   

  	
  26

  
	
  6.7

  	
  Impact of
  Reemployment on Benefits

  	
   

  	
  27

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VII - PAYMENT
  LIMITATIONS

  	
   

  	
  28

  
	
  7.1

  	
  Spousal
  Claims

  	
   

  	
  28

  
	
  7.2

  	
  Legal
  Disability

  	
   

  	
  30

  

 

i

 

	
  7.3

  	
  Assignment

  	
   

  	
  30

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VIII -
  FUNDING

  	
   

  	
  32

  
	
  8.1

  	
  Funding

  	
   

  	
  32

  
	
  8.2

  	
  Creditor
  Status

  	
   

  	
  32

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IX -
  ADMINISTRATION

  	
   

  	
  33

  
	
  9.1

  	
  The PAC

  	
   

  	
  33

  
	
  9.2

  	
  Powers of
  PAC

  	
   

  	
  33

  
	
  9.3

  	
  Appointment
  of Plan Administrator

  	
   

  	
  33

  
	
  9.4

  	
  Duties of
  Plan Administrator

  	
   

  	
  33

  
	
  9.5

  	
  Indemnification
  of PAC and Plan Administrator

  	
   

  	
  34

  
	
  9.6

  	
  Claims
  for Benefits

  	
   

  	
  35

  
	
  9.7

  	
  Arbitration

  	
   

  	
  36

  
	
  9.8

  	
  Receipt
  and Release of Necessary Information

  	
   

  	
  36

  
	
  9.9

  	
  Overpayment
  and Underpayment of Benefits

  	
   

  	
  37

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE X - OTHER
  BENEFIT PLANS OF THE COMPANY

  	
   

  	
  38

  
	
  10.1

  	
  Other
  Plans

  	
   

  	
  38

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XI -
  AMENDMENT AND TERMINATION OF THE PLAN

  	
   

  	
  39

  
	
  11.1

  	
  Continuation

  	
   

  	
  39

  
	
  11.2

  	
  Amendment
  of Plan

  	
   

  	
  39

  
	
  11.3

  	
  Termination
  of Plan

  	
   

  	
  39

  
	
  11.4

  	
  Termination
  of Affiliate’s Participation

  	
   

  	
  39

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XII -
  MISCELLANEOUS

  	
   

  	
  40

  
	
  12.1

  	
  No
  Reduction of Employer Rights

  	
   

  	
  40

  
	
  12.2

  	
  Provisions
  Binding

  	
   

  	
  40

  
	
   

  	
   

  	
   

  	
   

  
	
  EXHIBIT A

  	
   

  	
  42

  

 

ii

 

SEVENTH AMENDED AND RESTATED

TENET 2001 DEFERRED COMPENSATION PLAN

 

ARTICLE I

PREAMBLE AND PURPOSE

 

1.1                               Preamble.
This Seventh Amended and Restated Tenet 2001 Deferred Compensation Plan (the “Plan”)
of Tenet Healthcare Corporation (the “Company”), amends and restates the Tenet
2001 Deferred Compensation Plan adopted by the Compensation Committee (the “Committee”)
on October 10, 2000 as amended and restated by the Committee on July 22,
2003, October 8, 2002, December 4, 2001, July 24, 2001,  May 22, 2001 and September 10, 2003
as subsequently amended by the Committee effective April 1, 2004. The Plan
is intended to permit the Company and its participating Affiliates, as defined
herein (collectively, the “Employer”), to attract and retain a select group of
management or highly compensated employees and Directors, as defined herein.

 

Effective as of December 5, 1995, the Company adopted the Tenet
Executive Deferred Compensation and Supplemental Savings Plan (as the same has
been amended from time to time, the “Supplemental Plan”). Effective as of January 31,
2001, the Company transferred to this Plan amounts held for the benefit of
certain participants in the Supplemental Plan, other than those balances held
for the benefit of physician-employees who participate in the Supplemental Plan
and participants who are in pay-out status as of December 31, 2000, under
the Supplemental Plan. Effective as of December 31, 2002, the Committee
authorized the merger of the Supplemental Plan into this Plan.

 

Effective as of January 1, 2006, the Company adopted the Tenet
2006 Deferred Compensation Plan (the “2006 DCP”) to replace this Plan. Consequently,
no additional deferrals or contributions will be made to the Plan after December 31,
2005. This amendment and restatement of the Plan is intended to amend the Plan
to comply with the provisions of section 409A of the Internal Revenue Code
of 1986, as amended (the “Code”) with respect to compensation and bonus
deferrals and employer contributions made on and after January 1, 2005. Compensation
and bonus deferrals and employer contributions made to the Plan prior to January 1,
2005 were fully vested as of December 31, 2004 and are exempt from the
requirements of section 409A of the Code.

 

The Employer may adopt one or more trusts to serve as a possible
source of funds for the payment of benefits under this Plan.

 

1.2                               Purpose.
Through this Plan, the Employer intends to permit the deferral of compensation
and to provide additional benefits to Directors and a select group of management
or highly compensated employees of the Employer. Accordingly, it is intended
that this Plan will not constitute a “qualified plan” subject to the
limitations of section 401(a) of the Code, nor will it constitute a “funded
plan,” for purposes of such requirements. It also is intended that this Plan
will be exempt from the participation and vesting requirements of Part 2
of Title I of the Act, the funding requirements of Part 3 of Title I of
the Act, and the fiduciary requirements of Part 4 of Title I of the Act by
reason of the exclusions afforded plans that are unfunded and maintained by an
employer primarily for the purpose of providing deferred compensation for a
select group of management or highly compensated employees.

 

End of Article I

 

 

ARTICLE II

DEFINITIONS AND CONSTRUCTION

 

2.1                               Definitions.
When a word or phrase appears in this Plan with the initial letter capitalized,
and the word or phrase does not commence a sentence, the word or phrase will
generally be a term defined in this Section 2.1. The following words and
phrases with the initial letter capitalized will have the meaning set forth in
this Section 2.1, unless a different meaning is required by the context in
which the word or phrase is used.

 

(a)                                  “Account”  means one or more of the bookkeeping accounts maintained by the Company
or its agent on behalf of a Participant, as described in more detail in Section 4.4.
Separate bookkeeping Accounts will be maintained with respect to a Participant’s
Pre-2005 Deferrals and Post-2004 Deferrals and such Accounts will be referred
to respectively as the “Pre-2005 Account” and the “Post-2004 Account.”

 

(b)                                  “Act”  means the Employee
Retirement Income Security Act of 1974, as amended from time to time.

 

(c)                                  “Affiliate”  means a corporation that
is a member of a controlled group of corporations (as defined in section 414(b) of
the Code) that includes the Company, any trade or business (whether or not
incorporated) that is in common control (as defined in section 414(c) of
the Code) with the Company, or any entity that is a member of the same
affiliated service group (as defined in section 414(m) of the Code) as the
Company.

 

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

 

(e)                                  “Annual
Incentive Plan Award”  means the amount payable to an Employee each year, if any, under the
Company’s Annual Incentive Plan, as the same may be amended, restated,
modified, renewed or replaced from time to time.

 

(f)                                    “Basic
Deferral”  means
the Compensation deferral made by a Participant described in Section 4.1(a).

 

(g)                                 “Beneficiary”  means the person
designated by the Participant to receive a distribution of his benefits under
the Plan upon the death of the Participant. If the Participant is married, his
spouse will be his Beneficiary, unless his spouse consents in writing to the
designation of an alternate Beneficiary. In the event that a Participant fails
to designate a Beneficiary, or if the Participant’s Beneficiary does not
survive the Participant, the Participant’s Beneficiary will be his surviving
spouse, if any, or if the Participant does not have a surviving spouse, his estate.
The term “Beneficiary” also will mean a Participant’s spouse or former spouse
who is entitled to all or a portion of a Participant’s benefit pursuant to Section 7.1.

 

(h)                                 “Board”  means the Board of
Directors of the Company.

 

2

 

(i)                                    “Bonus”  means (i) a bonus
paid to a Participant in the form of an Annual Incentive Plan Award, (ii) an
annual bonus payment to a Participant pursuant to an employment or similar
agreement or (iii) any other bonus payment designated by the PAC as an
eligible bonus under the Plan.

 

(j)                                    “Bonus
Deferral”  means
the Bonus deferral made by a Participant described in Section 4.1(b). A
Participant may also defer a portion of his Bonus as a Supplemental
Deferral as described in Section 4.1(c).

 

(k)                                “Change
of Control”  of the Company will be deemed to have occurred if either (i) any
person, as such term is used in sections 13(c) and 14(d)(2) of the
Securities and Exchange Act of 1934, as amended (the “Exchange Act”), is or
becomes the beneficial owner, directly or indirectly, of securities of the
Company representing twenty percent (20%) or more of the combined voting power
of the Company’s then outstanding securities, or (ii) individuals who, as
of August 1, 2000, constitute the Board of the Company (the “Incumbent
Board”) cease for any reason to constitute at least a majority of the Board at
any time; provided, however, that (a) any individual who becomes a
director of the Company subsequent to August 1, 2000, whose election, or
nomination for election by the Company’s stockholders, was approved by a vote
of at least a majority of directors then comprising the Incumbent Board will be
deemed to have been a member of the Incumbent Board, and (b) no individual
who is elected initially (after August 1, 2000) as a director as a result
of an actual or threatened election contest, as such terms are used in Rule 14a-11
of Regulation 14A promulgated under the Exchange Act or any other actual or
threatened solicitations of proxies or consent by or on behalf of any person
other than the Incumbent Board will be deemed to have been a member of the
Incumbent Board.

 

(l)                                    “Code”  means the Internal Revenue
Code of 1986, as amended from time to time.

 

(m)                              “Company”  means Tenet Healthcare
Corporation.

 

(n)                                 “Compensation”  means base salaries,
commissions, and certain other amounts of cash compensation payable to the
Participant during the Plan Year. Compensation will exclude cash bonuses,
foreign service pay, hardship withdrawal allowances and any other pay intended
to reimburse the Employee for the higher cost of living outside the United
States, Annual Incentive Plan Awards, automobile allowances, ExecuPlan
payments, housing allowances, relocation payments, deemed income, income
payable under stock incentive plans, Christmas gifts, insurance premiums, and
other imputed income, pensions, retirement benefits, and contributions to and
payments from the 401(k) Plan and this Plan or any other nonqualified
retirement plan maintained by the Employer. The term “Compensation” for
Directors will mean any cash compensation from retainers, meeting fees and
committee fees paid during the Plan Year.

 

(o)                                  “Compensation
Committee”  means the Compensation Committee of the Board, which has the authority to
amend and terminate the Plan as provided in Article XI. The Compensation
Committee also will be responsible for determining the amount of the
Discretionary Contribution, if any, to be made by the Employer.

 

3

 

(p)                                  “Compensation
and Bonus Deferrals”  means the Basic Deferrals, Bonus Deferrals, Supplemental Deferrals and/or
Discretionary Deferrals described in Section 4.1 of the Plan.

 

(q)                                  “Covered
Person”  means
a covered employee within the meaning of section 162(m)(3) of the
Code or an Employee designated as a Covered Person by the Compensation
Committee.

 

(r)                                  “Director”  means a member of the
Board who is not an Employee.

 

(s)                                  “Disability”  means the total and
permanent incapacity of a Participant, due to physical impairment or mental
incompetence, to perform the usual duties of his employment with the
Employer. Disability will be determined by the Plan Administrator on the basis
of (i) evidence that the Participant has become entitled to receive
benefits from an Employer sponsored long-term disability plan, or in the case
of a Director, a long-term disability plan that covers such Director, or (ii) evidence
that the Participant has become entitled to receive primary benefits as a
disabled employee under the Social Security Act in effect on such date of
Disability.

 

(t)                                    “Discretionary
Contribution”  means the contribution made by the Employer on behalf of a Participant as
described in Section 4.2(b).

 

(u)                                 “Discretionary
Deferral”  means
the Compensation deferral described in Section 4.1(d) made by a
Participant.

 

(v)                                   “DRO”  means a domestic relations
order that is a judgment, decree, or order (including one that approves a
property settlement agreement) that relates to the provision of child support,
alimony payments or marital property rights to a spouse, former spouse, child
or other dependent of a Participant and is rendered under a state (within the
meaning of section 7701(a)(10) of the Code) domestic relations law
(including a community property law) and that:

 

(i)                                     Creates or
recognizes the existence of an Alternate Payee’s right to, or assigns to an
Alternate Payee the right to receive all or a portion of the benefits payable
with respect to a Participant under the Plan;

 

(ii)                                  Does not require the
Plan to provide any type or form of benefit, or any option, not otherwise
provided under the Plan;

 

(iii)                               Does not require the
Plan to provide increased benefits (determined on the basis of actuarial
value);

 

(iv)                              Does not require the
payment of benefits to an Alternate Payee that are required to be paid to
another Alternate Payee under another order previously determined to be a DRO;
and

 

(v)                                 Clearly specifies: the
name and last known mailing address of the Participant and of each Alternate
Payee covered by the DRO; the amount or percentage of the Participant’s
benefits to be paid by the Plan to each such Alternate Payee, or the manner in
which such amount or percentage is to be determined; the number of payments or
payment periods to which such order applies; and that it is applicable with
respect to this Plan.

 

4

 

(w)                                “Effective
Date”  means
January 1, 2005 except as provided otherwise herein.

 

(x)                                  “Election
Form”  means
the written forms provided by the PAC or the Plan Administrator pursuant to
which the Participant consents to participation in the Plan and makes elections
with respect to deferrals, requested investment crediting rates and
distributions hereunder. Such Participant consent and elections may be
done either in writing or on-line through an electronic signature.

 

(y)                                  “Eligible
Person”  means
(i) each Employee who is eligible for a Bonus as defined in Section 2.1(i) for
the applicable Plan Year, (ii) each Director, and (iii) all aviation
personnel who are Employees and are designated as captains. In addition, the
term “Eligible Person” will include any Employee designated as an Eligible
Person by the PAC. As provided in Section 3.1, the PAC may at any
time, in its sole and absolute discretion, limit the classification of Employees
who are eligible to participate in the Plan for a Plan Year and/or may modify
or terminate an Eligible Person’s participation in the Plan without the need
for an amendment to the Plan.

 

(z)                                  “Emergency”  means a Foreseeable
Emergency or Unforeseeable Emergency that makes a Participant eligible for a
Financial Necessity Distribution with respect to his Basic Deferrals, Bonus
Deferrals, Supplemental Deferrals and/or Discretionary Deferrals credited to
his Pre-2005 Account under Section 5.5.

 

(aa)                            “Employee”  means each select member
of management or highly compensated employee receiving remuneration, or who is
entitled to remuneration, for services rendered to the Employer, in the legal
relationship of employer and employee.’

 

(bb)                            “Employer”  means the Company and each
Affiliate which has adopted the Plan as a participating employer. An Affiliate may evidence
its adoption of the Plan either by a formal action of its governing body or by
commencing deferrals and taking other administrative actions with respect to
this Plan on behalf of its employees. An entity will cease to be a
participating employer as of the date such entity ceases to be an Affiliate.

 

(cc)                            “Fair
Market Value”  means the closing price of a share of Stock on the New York Stock
Exchange on the date as of which fair market value is to be determined.

 

(dd)                            “Five
Percent Owner”  means any person who owns (or is considered as owning within the meaning
of section 318 of the Code) more than five percent (5%) of the outstanding
stock of the Company or an Affiliate or stock possessing more than five percent
(5%) of the total combined voting power of all stock of the Company or an
Affiliate. The rules of sections 414(b), (c) and (m) of the Code will
not apply for purposes of applying these ownership rules. Thus, this ownership
test will be applied separately with respect to the Company and each Affiliate.

 

(ee)                            “Foreseeable
Emergency”  means, with respect to a Participant’s Basic Deferrals, Bonus Deferrals
and/or Discretionary Deferrals credited to his Pre-2005 Account, a severe
financial hardship to the Participant resulting from an event that, although
foreseeable, is outside the Participant’s control, as determined by the Plan
Administrator in its sole and absolute discretion. Such potentially foreseeable
but uncontrollable events include the following:

 

5

 

(i)                                     expenses for
medical care described in section 213(d) of the Code incurred by the
Participant, the Participant’s spouse, or any dependents of the Participant (as
defined in section 152 of the Code) or necessary for those persons to
obtain medical care described in section 213(d) of the Code; and

 

(ii)                                  such other events
deemed by the Plan Administrator, in its sole and absolute discretion, to constitute
a Foreseeable Emergency.

 

(ff)                                “401(k)
Plan”  means
the Tenet Healthcare Corporation 401(k) Retirement Savings Plan, as such plan may be
amended, restated, modified, renewed or replaced from time to time.

 

(gg)                          “JOBs
Act”  means
the American Jobs Creation Act of 2004 and any regulations or rulings issued
thereunder. The provisions of the Plan with respect to Post-2004 Deferrals will
be construed and administered in a manner that enables the Plan to comply with
the provisions of the JOBs Act. Pre-2005 Deferrals under the Plan were fully
vested as of December 31, 2004 and, as such, are not subject to the
provisions of the JOBs Act.

 

(hh)                          “Key
Employee”  means
any Employee or former Employee (including any deceased Employee) who at any
time during the Plan Year was:

 

(i)                                     an
officer of the Company or an Affiliate having compensation within the meaning
of section 415(c) of the Code of greater than one hundred thirty
thousand dollars ($130,000) (as adjusted under section 416(i)(1) of
the Code for Plan Years beginning after December 31, 2002) (such limit is
one hundred thirty-five thousand dollars ($135,000) for 2005);

 

(ii)                                  a
Five Percent Owner; or

 

(iii)                               a
One Percent Owner having compensation within the meaning of section 415(c) of
the Code of more than one hundred fifty thousand dollars ($150,000).

 

The determination of Key Employees will be based upon a twelve (12)
month period ending on December 31 of each year (i.e., the identification date). Employees
that are Key Employees during such twelve (12) month period will be treated as
Key Employees for the twelve (12) month period beginning on the first day of
the fourth month following the end of the twelve (12) month period (i.e., since the identification date is December 31,
then the twelve (12) month period to which it applies begins on the next
following April 1).

 

The determination of who is a Key Employee will be made in accordance
with section 416(i)(1) of the Code and other guidance of general
applicability issued thereunder. For purposes of determining whether an
Employee or former Employee is an officer, a Five Percent Owner or a One
Percent Owner, the Company and each Affiliate will be treated as a separate
employer (i.e., the controlled
group rules of sections 414(b), (c), (m) and (o) of the Code will not
apply). Conversely, for purposes of determining whether the one hundred thirty
thousand dollar ($130,000) adjusted limit on compensation is met under the
officer test described in Section 2.1(hh)(i), compensation from the
Company and all Affiliates will be taken into account (i.e., the controlled group rules of
sections

 

6

 

414(b), (c), (m) and (o) of the Code will apply). Further, in
determining who is an officer under the officer test described in Section 2.1(hh)(i),
no more than fifty (50) employees of the Company or its Affiliates (i.e., the controlled group rules of
sections 414(b), (c), (m) and (o) of the Code will apply) will be treated as
officers. If the number of officers exceeds fifty (50), the determination of
which Employees or former Employees are officers will be determined based on
who had the largest annual compensation from the Company and Affiliates for the
Plan Year.

 

(ii)                                “Matching
Contribution”  means the contribution made by the Employer pursuant to Section 4.2(a) on
behalf of a Participant who makes Supplemental Deferrals to the Plan as
described in Section 4.1(c).

 

(jj)                                “Non-Scheduled
Withdrawal”  means an election by a Participant in accordance with Section 5.4 to
receive a withdrawal of amounts from his Pre-2005 Account prior to the time at
which such Participant otherwise would be entitled to such amounts.

 

(kk)                        “One
Percent Owner”  means any person who would be described as a Five Percent Owner if “one
percent (1%)” were substituted for “five percent (5%)” each place where it
appears therein.

 

(ll)                                “Open
Enrollment Period”  means the period prior to the beginning of the Plan Year during which an
Eligible Person may make his elections concerning Compensation Deferrals
pursuant to Article IV.

 

(mm)                    “PAC”  means the Pension
Administration Committee of the Company established by the Compensation
Committee of the Board, and whose members have been appointed by such
Compensation Committee. The PAC will have the responsibility to administer the
Plan and make final determinations regarding claims for benefits, as described
in Article IX.

 

(nn)                          “Participant”  means each Eligible Person
who has been designated for participation in this Plan and each Employee or
former Employee (or Director or former Director) whose participation in this
Plan has not terminated.

 

(oo)                            “Plan”  means the Seventh Amended
and Restated Tenet 2001 Deferred Compensation Plan as set forth herein and as
the same may be amended from time to time.

 

(pp)                            “Plan
Administrator”  means the individual or entity appointed by the PAC to handle the
day-to-day administration of the Plan, including but not limited to determining
a Participant’s eligibility for benefits and the amount of such benefits and
complying with all applicable reporting and disclosure obligations imposed on
the Plan. If the PAC does not appoint an individual or entity as Plan
Administrator, the PAC will serve as the Plan Administrator.

 

(qq)                            “Plan
Year”  means
the fiscal year of this Plan, which will commence on January 1 each year
and end on December 31 of such year.

 

(rr)                            “Post-2004
Deferrals”  means Compensation and Bonus Deferrals and Employer contributions made
with respect to a Participant under the Plan on and after January 1, 2005,
which are subject to the provisions of the JOBs Act and section 409A of
the Code. It is contemplated that Post-2004 Deferrals and any 

 

7

 

associated Matching Contributions will be
transferred to and administered under the 2006 DCP.

 

(ss)                            “Pre-2005
Deferrals”  means Compensation and Bonus Deferrals and Employer contributions made
with respect to a Participant under the Plan prior to January 1, 2005,
which are not subject to the provisions of the JOBs Act and section 409A
of the Code.

 

(tt)                                “Scheduled
In-Service Withdrawal”  means a distribution elected by the Participant pursuant to Section 4.1
or Section 4.2 for an in-service withdrawal of amounts of Basic Deferrals
and/or Bonus Deferrals made in a given Plan Year, and earnings or losses
attributable thereto, as set forth on the Election Form for such Plan Year

 

(uu)                          “Scheduled
Withdrawal Date”  means the distribution date elected by the Participant for a Scheduled
In-Service Withdrawal. With respect to Basic Deferrals and Bonus Deferrals made
prior to the Effective Date, a Scheduled In-Service Withdrawal Date means the
distribution date elected by the Participant with respect to such deferrals in
his Election Form for the applicable Plan Year.

 

(vv)                              “Special
Enrollment Period”  means the thirty (30) day period after an Employee is employed by the
Employer (or a Director is elected to the Board) and advised of his eligibility
to participate in the Plan during which the Eligible Person may make his
elections to defer Compensation and Bonus earned after such election pursuant
to Article IV. The Plan Administrator may also designate certain
periods as Special Enrollment Periods to the extent permitted under section 409A
of the Code.

 

(ww)                        “Stock”  means the common stock,
par value $0.075 per share, of the Company.

 

(xx)                            “Stock
Unit”  means
a non-voting, non-transferable unit of measurement that is deemed for
bookkeeping and distribution purposes only to represent one (1) outstanding
share of Stock.

 

(yy)                            “Supplemental
Deferral”  means
the Compensation and/or Bonus Deferral described in Section 4.1(c).

 

(zz)                            “Supplemental
Plan”  will
have the meaning set forth in Section 1.1 of this Plan.

 

(aaa)                      “Termination
of Employment”  means (i) with respect to an Employee, the date that such Employee ceases
performing services for the Employer and its Affiliates in the capacity of an
employee and (ii) with respect to a Director, the date that such Director
ceases to provide services to the Company as a member of the Board. An Employee
who transfers employment from an Employer to an Affiliate, regardless of
whether such Affiliate has adopted the Plan as a participating employer, will
not incur a Termination of Employment. A Participant who experiences a “qualifying
termination” under the Tenet Executive Severance Protection Plan (the “TESPP”)
will incur a Termination of Employment under the Plan and such an Employee will
be ineligible to make Compensation and Bonus Deferrals under the Plan during
his severance period under the TESPP (i.e.,
will be ineligible for future participation in the Plan as an active Employee).

 

8

 

(bbb)                      “Trustee”  means the individual or
entity appointed to serve as trustee of any trust established as a possible
source of funds for the payment of benefits under this Plan as provided in Section 8.1.

 

(ccc)                      “2006 DCP”  means the Tenet 2006
Deferred Compensation Plan which is effective January 1, 2006.

 

(ddd)                      “Unforeseeable
Emergency”  means, with respect to a Participant’s Post-2004 Deferrals, (i) a
severe financial hardship to the Participant resulting from an illness or
accident of the Participant, his spouse or his dependent (as defined under section 152(a) of
the Code), (ii) a loss of the Participant’s property due to casualty, or (iii) other
similar extraordinary and unforeseeable circumstances arising as a result of
events beyond the control of the Participant, as determined by the Plan
Administrator in its sole and absolute discretion in accordance with the
requirements of section 409A of the Code. An Unforseeable Emergency with
respect to a Participant’s Basic Deferrals, Bonus Deferrals, Supplemental
Deferrals and/or Discretionary Deferrals credited to his Pre-2005 Account means
a severe financial hardship to the Participant resulting from (A) a sudden
and unexpected illness or accident of the Participant or one of the Participant’s
dependents (as defined under section 152(a) of the Code), (B) loss
of the Participant’s property due to casualty, or (C) such other similar
extraordinary and unforeseeable circumstances arising as a result of an
unforeseeable event or events beyond the control of the Participant, as
determined by the Plan Administrator in its sole and absolute discretion.

 

2.2                               Construction. If any provision of this
Plan is determined to be for any reason invalid or unenforceable, the remaining
provisions of this Plan will continue in full force and effect. All of the
provisions of this Plan will be construed and enforced in accordance with the
laws of the State of Texas and will be administered according to the laws of
such state, except as otherwise required by the Act, the Code or other
applicable federal law. The term “delivered to the PAC or Plan Administrator,”
as used in this Plan, will include delivery to a person or persons designated
by the PAC or Plan Administrator, as applicable, for the disbursement and the
receipt of administrative forms. Delivery will be deemed to have occurred only
when the form or other communication is actually received. Headings and
subheadings are for the purpose of reference only and are not to be considered
in the construction of this Plan. The pronouns “he,” “him” and “his” used in
the Plan will also refer to similar pronouns of the female gender unless
otherwise qualified by the context.

 

End of Article II

 

9

 

ARTICLE III

PARTICIPATION AND FORFEITABILITY OF BENEFITS

 

3.1                               Eligibility and
Participation.

 

(a)                                  Determination
of Eligibility. It
is intended that eligibility to participate in the Plan will be limited to
Eligible Persons, as determined by the PAC, in its sole and absolute discretion.
During the Open Enrollment Period, each Eligible Person will be contacted and
informed that he may elect to defer portions of his Compensation and/or Bonus
and will be provided with an Election Form, investment crediting rate
preference designation and such other forms as the PAC or the Plan
Administrator will determine. An Eligible Person will become a Participant by
completing all required forms and making a deferral election during an Open
Enrollment Period pursuant to Section 4.1. Eligibility to become a
Participant for any Plan Year will not entitle an Eligible Person to continue
as an active Participant for any subsequent Plan Year.

 

(b)                                  Limits
on Eligibility. The
PAC may at any time, in its sole and absolute discretion, limit the
classification of Employees eligible to participate in the Plan and/or may limit
or terminate an Eligible Person’s participation in the Plan. Any action taken
by the PAC that limits the classification of Employees eligible to participate
in the Plan or that modifies or terminates an Eligible Person’s participation
in the Plan will be set forth in Exhibit A attached hereto. Exhibit A
may be modified from time to time without a formal amendment to the Plan,
in which case a revised Exhibit A will be attached hereto.

 

(c)                                  Eligibility
on Initial Employment. If an Eligible Person is employed or elected to the Board during the Plan
Year and designated by the PAC to be a Participant for such year, such Eligible
Person may elect to participate during the Special Enrollment Period for
the remainder of such Plan Year, by completing all required forms and making a
deferral election pursuant to Section 4.1. Designation as a Participant
for the Plan Year in which he is employed or elected to the Board will not
entitle the Eligible Person to continue as an active Participant for any
subsequent Plan Year.

 

(d)                                  Loss
of Eligibility Status. A Participant under this Plan who separates from employment with the
Employer, or who ceases to be a Director, will continue as an inactive
Participant under this Plan until the Participant has received payment of all
amounts payable to him under this Plan. In the event that an Eligible Person
ceases active participation in the Plan because the Eligible Person is no
longer described as a Participant pursuant to this Section 3.1, or because
he ceases making deferrals of Compensation and/or Bonuses, the Eligible Person
will continue as an inactive Participant under this Plan until he has received
payment of all amounts payable to him under this Plan.

 

10

 

3.2                               Forfeitability of
Benefits. Except as
provided in Section 5.4 and Section 7.1, a Participant will at all
times have a nonforfeitable right to amounts credited to his Account pursuant
to Section 4.3, subject to the distribution provisions of Article V
and Article VI, as applicable. As provided in Section 8.2, however,
each Participant will be only a general creditor of the Company and/or his
Employer with respect to the payment of any benefit under this Plan.

 

End of Article III

 

11

 

ARTICLE IV

DEFERRAL, COMPANY CONTRIBUTIONS, ACCOUNTING

AND INVESTMENT CREDITING RATES

 

4.1                               Deferral. An Eligible Person may become
a Participant in the Plan for the applicable Plan Year by electing during the
Open Enrollment Period to defer his Compensation and/or Bonus pursuant to the
terms of this Section 4.1 on an Election Form. Such Election Form will
be submitted to the Plan Administrator by the date specified by the Plan
Administrator and will be effective with respect to deferral elections with the
first paycheck dated on or after the next following January 1. In the case
of an Eligible Person who is employed or elected to the Board during the Plan
Year, the Election Form will be entered into within the Special Enrollment
Period and submitted to the Plan Administrator by the date specified by the
Plan Administrator and the specified deferral elections will only be effective
with respect to Compensation and/or Bonuses earned after the date such Election
Form is received by the Plan Administrator.

 

A Participant’s Election Form will only be effective with respect
to a single Plan Year and will be irrevocable for the duration of such Plan
Year. Effective January 1, 2006, no additional Compensation or Bonus
Deferrals or Employer contributions may be made under the Plan.

 

Prior to the Effective Date, a Participant could specify on each Election
Form, the method in which Compensation and/or Bonuses deferred under the Plan
prior to January 1, 2005 would be paid (i.e.,
in either a lump sum or, in certain instances as described herein, in equal
monthly installments over a period of not less than one year nor more than 15
years). If the Participant, during the Open Enrollment Period, elected a
different method of payment on a subsequent Election Form with respect to
Compensation and Bonus deferred prior to the Effective Date, such form of
payment election superseded any prior payment elections made on an earlier
Election Form, provided such election had been in effect for twelve (12) months.
Compensation and Bonus Deferrals made under the Plan prior to the Effective
Date, will be subject to the distribution provisions of Article V.

 

Four types of deferrals may be made under the Plan on and after
the Effective Date and such deferrals will be subject to the distribution
provisions of Article VI:

 

(a)                                  Basic
Deferral. Each
Eligible Person may elect to defer a stated dollar amount, or designated
full percentage, of Compensation to the Plan up to a maximum percentage of
seventy five percent (75%) (one hundred percent (100%) for Directors) of the
Eligible Person’s Compensation for the applicable Plan Year until either (i) the
Participant’s Termination of Employment or (ii) a future year in which the
Participant is still employed by the Employer (or providing services as a
member of the Board) and that is at least two (2) calendar years after the
end of the Plan Year in which the Compensation would have otherwise been paid (i.e., as a Scheduled In-Service Withdrawal
subject to the provisions of Section 6.3).

 

The Employer will not make any Matching Contributions with respect to
any Basic Deferrals made to the Plan.

 

(b)                                  Bonus
Deferral. Each
Eligible Person may elect to defer a stated dollar amount, or designated
full percentage, of his Bonus to the Plan up to a maximum percentage of one
hundred percent (100%) (ninety seven percent (97%) if a 

 

12

 

Supplemental Deferral is elected pursuant to Section 4.1(c))
of the Employee’s Bonus for the applicable Plan Year until either (i) the
Eligible Person’s Termination of Employment or (ii) a future year in which
the Eligible Person is still employed by the Employer (or providing services as
a member of the Board) and that is at least two (2) calendar years after
the end of the Plan Year in which the Bonus would have otherwise been paid (i.e., as a Scheduled In-Service Withdrawal
subject to the provisions of Section 6.3).

 

Bonus Deferrals generally will be made in the form of cash;
provided, however, that if the Company modifies the Annual Incentive Plan to
provide for the payment of awards in Stock, Bonus Deferrals may be made in
the form of Stock. Any Bonus Deferrals made in the form of Stock will
be converted to Stock Units, based on the number of shares so deferred,
credited to the Stock Unit Account and distributed to the Participant at the
time specified herein in an equivalent number of whole shares of Stock as
provided in Section 4.4(b).

 

The Employer will not make any Matching Contributions with respect to
any Bonus Deferrals made to the Plan.

 

(c)                                  Supplemental
Deferral. Each
Eligible Person may elect to make Supplemental Deferrals to the Plan on
and after the Effective Date payable upon Termination of Employment (i.e., Scheduled In-Service Withdrawals are
not available with respect to Supplemental Deferrals) in accordance with the
following provisions of this Section 4.1(c).

 

(i)                                     Statutory Limits. Each
Eligible Person who is also a participant in the 401(k) Plan may elect to
automatically have three percent (3%) of his Compensation deferred under the
Plan when he reaches any of the following statutory limitations under the
401(k) Plan:  (A) the limitation on
Compensation under section 401(a)(17) of the Code, as such limit is
adjusted for cost of living increases, (B) the limitation imposed on
elective deferrals under section 402(g) of the Code, as such limit is
adjusted for cost of living increases, (C) the limitations on
contributions and benefits under section 415 of the Code, or (D) the
limitations on contributions imposed by the 401(k) Plan administrator in order
to satisfy the limitations on contributions under sections 401(k) and 401(m) of
the Code. The ability to make Supplemental Deferrals under this Section 4.1(c)(i) will
not be impacted by the Participant’s eligibility to make “catch-up
contributions” under the 401(k) Plan. However, a Participant who makes a Supplemental
Deferral under this Section 4.1(c)(i) will not be permitted to modify
his 401(k) Plan deferral elections during the Plan Year in which such
Supplemental Deferral election is in effect.

 

The Employer
will make Matching Contributions with respect to Supplemental Deferrals made to
the Plan as provided in Section 4.2.

 

(ii)                                  Bonus. Each Eligible Person who
is also a participant in the 401(k) Plan may elect to automatically have
three percent (3%) of his Bonus deferred under the Plan as a Supplemental Deferral
whether or not the Eligible Person has reached the statutory limitations under
the 401(k) Plan described in Section 4.1(c)(i). This Supplemental Deferral
will be applied to that portion of the Eligible Person’s Bonus in excess of
that deferred as 

 

13

 

a Bonus Deferral under Section 4.1(b). For
example, if the Eligible Person elects to defer fifty percent (50%) of his
Bonus under Section 4.1(b) and also elects to make a Supplemental
Deferral under this Section 4.1(c), fifty percent (50%) of the Eligible
Person’s Bonus will be deferred under Section 4.1(b) and three
percent (3%) of the Eligible Person’s Bonus will be deferred under this Section 4.1(c).

 

The Employer
will make Matching Contributions with respect to Supplemental Deferrals made to
the Plan as provided in Section 4.2.

 

(d)                                  Discretionary
Deferral. The PAC may authorize
an Eligible Person to defer a stated dollar amount, or designated full
percentage, of Compensation to the Plan as a Discretionary Deferral. The PAC,
in its sole and absolute discretion, may limit the amount or percentage of
Compensation an Eligible Person may defer to the Plan as a Discretionary
Deferral and may prohibit Scheduled In-Service Withdrawals with respect to
such Discretionary Deferral. The Employer will not make any Matching
Contributions pursuant to Section 4.2(a) with respect to any
Discretionary Deferrals, but may elect to make a Discretionary
Contribution to the Plan with respect to such Discretionary Deferrals in the form of
a discretionary matching contribution as described in Section 4.2(b).

 

4.2                               Company Contributions.

 

(a)                                  Matching
Contribution. The
Employer will make a Matching Contribution to the Plan each Plan Year beginning
on and after the Effective Date on behalf of each Participant who makes a
Supplemental Deferral to the Plan for such Plan Year. Such Matching
Contribution will equal one hundred percent (100%) of the Participant’s
Supplemental Deferrals for such Plan Year. Matching Contributions and earnings and
losses thereon will be distributed upon the Participant’s Termination of
Employment in the manner elected by the Participant (or deemed elected by the
Participant) upon his initial enrollment in the Plan as provided in Section 6.1.
Matching Contributions made to the Plan prior to the Effective Date will be
subject to the distribution provisions of Article V.

 

(b)                                  Discretionary
Contribution. The
Employer may elect to make a Discretionary Contribution to a Participant’s
Account on or after the Effective Date in such amount, and at such time, as
will be determined by the Compensation Committee. Any such Discretionary
Contribution made by the Employer, plus earnings and losses thereon, will be
paid to the Participant upon his Termination of Employment with the Employer in
the manner elected by the Participant (or deemed elected by the Participant)
upon his initial enrollment in the Plan as provided in Section 6.1. If a
Participant who is a Covered Person receives a Discretionary Contribution prior
to the Effective Date, that Participant shall not be permitted to receive that
Discretionary Contribution until such Participant’s employment with the
Employer is terminated; provided, however, that if such Participant has elected
to receive a distribution of his Pre-2005 Account upon the occurrence of a
Change of Control and a Change of Control occurs, such Participant shall be
entitled to receive such Change of Control distribution in accordance with Section 5.9
of this Plan. In all other respects, Discretionary Contributions made to the
Plan prior to the Effective Date will be subject to the distribution provisions
of Article V.

 

14

 

4.3                               Accounting for Deferred
Compensation.

 

(a)                                  Cash
Account. If a
Participant has made an election to defer his Compensation and/or Bonus
pursuant to Section 4.1 and has made a request for amounts deferred to be
invested pursuant to Section 4.4(a), the Company may, in its sole and
absolute discretion, establish and maintain a cash Account for the Participant
under this Plan. Each cash Account will be adjusted at least quarterly to
reflect the Basic Deferrals, Bonus Deferrals, Supplemental Deferrals,
Discretionary Deferrals, Matching Contributions and Discretionary Contributions
credited thereto, earnings or losses credited thereon, and any payment or
withdrawal of such Basic Deferrals, Bonus Deferrals, Supplemental Deferrals,
Discretionary Deferrals and, Matching Contributions and Discretionary
Contributions pursuant to Article VI. The amounts of Basic Deferrals,
Bonus Deferrals, Supplemental Deferrals, Discretionary Deferrals and Matching
Contributions will be credited to the Participant’s cash Account within five (5) business
days of the date on which such Compensation and/or Bonus would have been paid
to the Participant had the Participant not elected to defer such amount
pursuant to the terms and provisions of the Plan. Any Discretionary
Contributions will be credited to each Participant’s cash Account at such times
as determined by the Compensation Committee. A separate cash Account will be
established for each Participant with respect to his Pre-2005 Deferrals and
Post-2004 Deferrals and adjustments to the Pre-2005 Account will be made in
substantially the same manner as described above. Further, in the sole and
absolute discretion of the Plan Administrator, additional cash Accounts may be
established for each Participant to facilitate record-keeping convenience and
accuracy. Each such cash Account will be credited and adjusted as provided in
this Plan.

 

(b)                                  Stock
Unit Account. If a
Participant has made an election to defer his Compensation and/or Bonus
pursuant to Section 4.1 and has made a request for such deferrals to be
deemed invested in Stock Units pursuant to Section 4.4(b), the Plan Administrator
may, in its sole and absolute discretion, establish and maintain a Stock Unit
Account and credit the Participant’s Stock Unit Account with a number of Stock
Units determined by dividing an amount equal to the Basic Deferrals, Bonus
Deferrals, Supplemental Deferrals, and associated Matching Contributions and
Discretionary Deferrals made as of such date by the Fair Market Value of a
share of Stock on the date such Compensation and/or Bonus otherwise would have
been payable. Such Stock Units will be credited to the Participant’s Stock Unit
Account as soon as administratively practicable after the determination of the
number of Stock Units is made pursuant to the preceding sentence.

 

If the Participant is entitled to a Discretionary Contribution pursuant
to Section 4.2 and has elected to have amounts credited to his Account to
be deemed invested in Stock Units pursuant to Section 4.5(b), the Plan
Administrator may, in its sole discretion, establish and maintain a Stock Unit
Account and credit the Participant’s Stock Unit Account with a number of Stock
Units determined by dividing an amount equal to the Discretionary Contribution
made as of such date by the Fair Market Value of a share of Stock on the date
such Discretionary Contribution would have otherwise been made. Such Stock
Units will be credited to the Participant’s Stock Unit Account as soon as
administratively practicable 

 

15

 

after the determination of the number of Stock Units is made pursuant
to the preceding sentence.

 

Bonus Deferrals made in Stock will be credited to the Stock Unit
Account as provided in Section 4.1(b).

 

A separate Stock Unit Account or accounts will be established for each
Participant with respect to his Pre-2005 Deferrals and Post-2004 Deferrals. In
addition, in the sole and absolute discretion of the Plan Administrator,
additional Stock Unit Accounts may be established for each Participant to
facilitate record-keeping convenience and accuracy.

 

(i)                                     The Stock Units
credited to a Participant’s Stock Unit Account or accounts will be used solely
as a device for determining the number of shares of Stock eventually to be
distributed to the Participant in accordance with this Plan. The Stock Units
will not be treated as property of the Participant or as a trust fund of any
kind. No Participant will be entitled to any voting or other stockholder rights
with respect to Stock Units credited under this Plan.

 

(ii)                                  If the outstanding
shares of Stock are increased, decreased, or exchanged for a different number
or kind of shares or other securities, or if additional shares or new or
different shares or other securities are distributed with respect to such
shares of Stock or other securities, through merger, consolidation, spin-off,
sale of all or substantially all the assets of the Company, reorganization,
recapitalization, reclassification, stock dividend, stock split, reverse stock
split or other distribution with respect to such shares of Stock or other
securities, an appropriate and proportionate adjustment will be made by the
Compensation Committee in the number and kind of Stock Units credited to a
Participant’s Stock Unit Account or accounts.

 

(c)                                  Accounts
Held in Trust. Amounts
credited to Participants’ Accounts may be secured by one or more trusts,
as provided in Section 8.1, but will be subject to the claims of the
general creditors of each such Participant’s Employer. Although the principal
of such trust and any earnings or losses thereon will be separate and apart from
other funds of the Employer and will be used for the purposes set forth
therein, neither the Participants nor their Beneficiaries will have any
preferred claim on, or any beneficial ownership in, any assets of the trust
prior to the time such assets are paid to the Participant or Beneficiaries as
benefits and all rights created under this Plan will be unsecured contractual
rights of Plan Participants and Beneficiaries against the Employer. Any assets
held in the trust with respect to a Participant will be subject to the claims
of the general creditors of that Participant’s Employer under federal and state
law in the event of insolvency. The assets of any trust established pursuant to
this Plan will never inure to the benefit of the Employer and the same will be
held for the exclusive purpose of providing benefits to that Employer’s
Participants and their beneficiaries.

 

4.4                               Investment Crediting
Rates. At the time
of making a deferral election described in Section 4.1, the Participant
will request on an Election Form the type of investment crediting rate
option with which the Participant would like the Company, in its sole and 

 

16

 

absolute
discretion, to credit the Participant; namely, one of several investment
crediting rate options payable in cash or an investment crediting rate option
based on the performance of the price of the Company’s Stock and payable in the
Company’s Stock. Such investment crediting rate election will apply to all
Post-2004 Deferrals under the Plan, except for Bonus Deferrals made in Stock
which will automatically be credited to the Stock Unit Account as provided in Section 4.1(b) and
Section 4.2. Pre-2005 Deferrals under the Plan will be credited based on
the investment crediting rate option specified by the Participant with respect
to his Pre-2005 Account as described in this Section 4.4.

 

(a)                                  Cash
Investment Crediting Rate Options. A Participant may request on an Election Form the type of
investment in which the Participant would like Compensation and Bonus Deferrals
made on and after the Effective Date to be deemed invested for purposes of
determining the amount of earnings to be credited or losses to be debited to
his Cash Account. The Participant will specify his preference from among the
following possible investment crediting rate options:

 

(i)                                     An annual rate of
interest equal to one percent (1%) below the prime rate of interest as quoted
by Bloomberg, compounded daily; or

 

(ii)                                  One or more benchmark
mutual funds.

 

A Participant may change, on a daily basis, the investment
crediting rate preference under this Section 4.4(a) applicable to his
Compensation and Bonus Deferrals made on and after the Effective Date or to his
Pre-2005 Account by filing an election in such manner as will be determined by
the PAC. Notwithstanding any request made by a Participant, the Company, in its
sole and absolute discretion, will determine the investment rate with which to
credit amounts deferred by Participants under this Plan, provided, however,
that if the Company chooses an investment crediting rate other than the
investment crediting rate requested by the Participant, such investment
crediting rate cannot be less than (i) above.

 

(b)                                  Stock
Units. A Participant
may request on an Election Form to have all or a portion of his
Compensation and Bonus Deferrals made on and after the Effective Date to be
deemed invested in Stock Units. Any request to have Compensation and Bonus
Deferrals to be deemed invested in Stock Units is irrevocable and such amounts
will be distributed in an equivalent whole number of shares of Stock pursuant
to the provisions of Article VI. Any fractional share interests will be
paid in cash with the last distribution. This same rule will apply to
Compensation and Bonus Deferrals made prior to the Effective Date which the
Participant requested to be deemed invested in Stock Units and which are
distributable pursuant to Article V.

 

(c)                                  Deemed
Election. In his
request(s) pursuant to this Section 4.4, the Participant may request
that all or any portion of his Pre-2005 Account and/or Post-2004 Account  (in whole percentage increments) be deemed
invested in one or more of the investment crediting rate 

 

17

 

preferences provided under the Plan as
communicated from time to time by the PAC. Although a Participant may express
an investment crediting rate preference, the Company will not be bound by such
request. If a Participant fails to set forth his investment crediting rate
preference under this Section 4.4, he will be deemed to have elected an
annual rate of interest equal to one percent (1%) below the prime rate of
interest as quoted by Bloomberg, compounded daily. The PAC will select from
time to time, in its sole and absolute discretion, the possible investment
crediting rate options to be offered under the Plan.

 

(d)                                  Employer
Contributions. Matching
Contributions to the Plan made by the Employer and allocated to a Participant’s
Post-2004 Account on and after the Effective Date pursuant to Section 4.2
will be credited with the same investment crediting rate as the Participant’s
associated Supplemental Deferrals for the relevant Plan Year. Discretionary
Contributions, if any, made by the Employer and allocated to a Participant’s
Post-2004 Account on and after the Effective Date pursuant to Section 4.2
will be credited with the investment crediting rate specified (or deemed
specified) by the Participant on his Election Form for the relevant Plan
Year with respect to the Participant’s Basic Deferrals and Bonus Deferrals.

 

Matching Contributions to the Plan made by the Employer prior to the
Effective Date and allocated to a Participant’s Pre-2005 Account will be
credited with the same investment crediting rate as the Participant’s
associated Supplemental Deferrals for the relevant Plan Year. Discretionary
Contributions, if any, made by the Employer prior to the Effective Date and
allocated to a Participant’s Pre-2005 Account will be credited with the
investment crediting rate specified (or deemed specified) by such Participant
on his Election Form for the relevant Plan Year with respect to the Participant’s Basic Deferrals and Bonus
Deferrals.

 

A Participant will retain the right to change the investment crediting
rate applicable to Matching Contributions and Discretionary Contributions
(including those credited to his Pre-2005 Account) as provided in this Section 4.4.

 

(e)                                  Transferred
Accounts. The
Company retains the right in its sole and absolute discretion to transfer
Post-2004 Deferrals under the Plan from this Plan to the 2006 DCP. In the event
that the Company determines that a transfer of a Participant’s Post-2004
Deferrals under the Plan to the 2006 DCP is appropriate, a Participant will be
permitted to express an investment crediting rate preference with respect to
such transferred amounts. Section 6.1(d) sets forth the distribution rules that
apply to a Participant who makes Post-2004 Deferrals under the Plan and is also
eligible to participate in the 2006 DCP.

 

End of Article IV

 

18

 

 

ARTICLE V

DISTRIBUTION OF BENEFITS – PRE-2005 ACCOUNTS

 

5.1                               General
Rules. A Participant may elect to receive payment of Basic Deferrals
and Bonus Deferrals, and earnings or losses thereon, credited to the
Participant’s Pre-2005 Account, at any of the following times:

 

(a)                                  As
soon as practicable after the Participant’s Termination of Employment,
retirement, Disability or death;

 

(b)                                 In
the first January following, or in the second January following, but
not later than the second January following, the Participant’s Termination
of Employment, retirement, Disability or death; or

 

(c)                                  At
a specified future date while still in the employ of the Employer.

 

Generally, Supplemental Deferrals, Discretionary Deferrals and Employer
contributions made prior to January 1, 2005, and earnings or losses
thereon, are distributable only upon a Participant’s Termination of Employment,
retirement, Disability or death.

 

All distributions from the Participant’s Pre-2005 Account will be
taxable as ordinary income when received and subject to appropriate withholding
of income taxes. In the case of distributions in Stock, the appropriate number
of shares of Stock may be sold to satisfy such withholding obligations
pursuant to administrative procedures adopted by the Plan Administrator.

 

5.2                               Distributions
Resulting from Termination. In the case of a Participant who incurs a
Termination of Employment, and has a Pre-2005 Account balance of one hundred
thousand dollars ($100,000) or less, as determined by the Plan Administrator
pursuant to administrative procedures, such Participant will be paid the
balance in his Pre-2005 Account in a lump sum in accordance with Section 5.1.
Such lump sum will be made in cash or in Stock or in a combination thereof
depending on the Participant’s investment crediting rates as provided in Section 4.4(b).

 

A Participant who has a Pre-2005 Account balance in excess of one
hundred thousand dollars ($100,000) may elect to receive a distribution in
the form of either a lump sum, as described in the preceding paragraph, or
in substantially equal installments over a period of not less than one (1) nor
more than fifteen (15) years. Installment distributions may be made in
cash or in Stock or in a combination thereof depending on the Participant’s
investment crediting rates as provided in Section 4.4(b). To the extent
that installments will be made solely in cash, such installments will be made
on a monthly basis. Installments of Stock or installments of cash and Stock
will be made on an annual basis.

 

Such Participant’s Election Form with respect to Pre-2005
Deferrals that has been in effect for at least twelve (12) months and made
during a Special Enrollment Period or an Open Enrollment Period, as applicable,
will govern the form of distribution. In the event a Participant elects
installments, such installment payments will begin in accordance with Section 5.1(a) or
5.1(b). All amounts held for a Participant’s or Beneficiary’s benefit will be
revalued annually based on procedures established by the Plan Administrator if
paid in installments.

 

19

 

A Participant who is currently receiving installment distributions of
his Pre-2005 Account may elect to accelerate the distribution of such
Account, subject to the following conditions:

 

(a)                                  The Participant may request to accelerate
the distribution of his Pre-2005 Account in the form of either (i) a
lump sum or (ii) a shorter period of installments that will be paid or
commence to be paid, as applicable, on a future date that is no earlier than
the first day of the thirteenth (13th) month following the Plan Administrator’s
receipt of the Participant’s acceleration request; or

 

(b)                                 The
Participant may request an
immediate lump sum distribution of his Pre-2005 Account at any time provided
that such distribution will be subject to a penalty equal to ten percent (10%)
of the lump sum distribution.

 

5.3                               Scheduled
In-Service Withdrawals. In the case of a Participant who, while still in
the employ of the Employer, has elected a Scheduled Withdrawal Date for
distribution of his Basic Deferrals and Bonus Deferrals made prior to January 1,
2005, and earnings or losses thereon, such Participant will receive a lump sum
payment that must occur at least two (2) calendar years after the end of
the Plan Year in which the Basic and Bonus Deferrals occurred. A Participant may extend
the Scheduled Withdrawal Date with respect to Basic Deferrals and Bonus
Deferrals made prior to January 1, 2005, for any Plan Year, provided (i) such
extension occurs at least one (1) year before the Scheduled Withdrawal
Date, (ii) such extension is for a period of not less than two (2) years
from the Scheduled Withdrawal Date, (iii) the Participant may not
extend the Scheduled Withdrawal Date more than two (2) times, and (iv) any
such extension will be effective only if consented to by the PAC. All such lump
sum distributions will be paid in the January of the year specified on the
election form.

 

If a Participant retires, incurs a Termination of Employment, incurs a
Disability or dies prior to any Scheduled Withdrawal Date, the Scheduled
In-Service Withdrawal will be disregarded and waived and the Participant’s
Pre-2005 Account balance will be distributed after the Participant’s
retirement, death, Disability or Termination of Employment in the same form of
distribution elected with respect to retirement, death, Disability or
Termination of Employment.

 

5.4                               Non-Scheduled
Withdrawals. A Participant (regardless of whether an active Employee
Participant, an inactive Employee Participant or a terminated Employee
Participant) will be permitted to elect a Non-Scheduled Withdrawal from his
Pre-2005 Account, subject to the following restrictions:

 

(a)                                  The election to take a Non-Scheduled
Withdrawal will be made by filing a form provided by the Plan
Administrator or its designee prior to the end of any calendar month.

 

(b)                                 The
amount of the Non-Scheduled Withdrawal will in all cases not exceed ninety
percent (90%) of the gross amount of the Participant’s Pre-2005 Account
balance.

 

(c)                                  The
amount described in subsection (b) above will be paid in a lump sum
as soon as practicable after the end of the month in which the Non-Scheduled
Withdrawal election is made.

 

20

 

(d)                                 If
a Participant receives a Non-Scheduled Withdrawal from his Pre-2005 Account,
the Participant will permanently forfeit an amount equal to ten percent (10%)
of the gross amount of the Non-Scheduled Withdrawal and the Employer will have
no obligation to the Participant or his Beneficiary with respect to such
forfeited amount.

 

(e)                                  If
a Participant receives a Non-Scheduled Withdrawal of any part of his
Account, the Participant will be ineligible to participate in the Plan for the
next following Plan Year.

 

The Plan Administrator will be responsible for reviewing all requests
for Non-Scheduled Withdrawals and will have the sole and absolute authority and
discretion to approve or deny such requests in accordance with the terms of the
Plan.

 

5.5                               Financial
Necessity Distributions.

 

(a)                                  Unforeseeable
Emergency. Upon application by the Participant, the Plan Administrator, in
its sole and absolute discretion, may direct payment of all or a portion
of the Basic Deferrals, Bonus Deferrals and/or Discretionary Deferrals credited
to the Pre-2005 Account of a Participant prior to his Termination of Employment
in the event of an Unforeseeable Emergency. Any such application will set forth
the circumstances constituting such Unforeseeable Emergency.

 

In addition to the deferrals specified in this Section 5.5(a),
upon application by the Participant, the Plan Administrator, in its sole and
absolute discretion, may direct payment of all or a portion of the
Supplemental Deferrals credited to the Pre-2005 Account of the Participant
prior to his Termination of Employment in the event of an Unforeseeable
Emergency. Such application and payment will be subject to the same conditions
and limitations as a request for any other payment of deferrals under this Section 5.5.

 

(b)                                  Foreseeable
Emergency. Upon application by the Participant, the Plan Administrator, in
its sole and absolute discretion, may direct payment of all or a portion
of the Basic Deferrals, Bonus Deferrals and/or Discretionary Deferrals credited
to the Pre-2005 Account of a Participant prior to his Termination of Employment
in the event of an Foreseeable Emergency. Any such application will set forth
the circumstances constituting such Foreseeable Emergency.

 

(c)                                  General
Rules Regarding Financial Necessity Distributions. The Plan Administrator
may not direct payment of any Basic Deferrals, Bonus Deferrals,
Supplemental Deferrals, and/or Discretionary Deferrals credited to the Pre-2005
Account of a Participant to the extent that such an Emergency is or may be
relieved (i) by reimbursement or compensation by insurance or otherwise,
or (ii) by cessation of Basic Deferrals, Bonus Deferrals and/or
Discretionary Deferrals under this Plan or the 2006 DCP for the next following
Plan Year. In the event that the Plan Administrator, in its sole and absolute
discretion, determines that such Emergency may be alleviated by such
cessation of deferrals under the Plan or the 2006 DCP for the next following
Plan Year, the Plan Administrator will deny such financial necessity
distribution and preclude the Participant from making Basic Deferrals, Bonus
Deferrals, RSU Deferrals (with respect to the 2006 DCP) and/or Discretionary
Deferral elections for the following Plan Year. Conversely, if the Plan
Administrator, in its sole and absolute discretion, determines that such
Emergency may not be alleviated by such cessation of 

 

21

 

Basic Deferrals, Bonus Deferrals, RSU Deferrals (with respect to the
2006 DCP) and/or Discretionary Deferrals, it may approve such financial necessity
distribution. Any distribution from the Participant’s Pre-2005 Account under
the Plan due to Emergency will be permitted only to the extent necessary to
satisfy such Emergency, in the sole and absolute discretion of the Plan
Administrator, both with respect to the determination as to whether an
Emergency exists and also with respect to determination of the amount
distributable. The Plan Administrator may permit a financial necessity
distribution under this Section 5.5, but as a result the Participant will
be ineligible to participate in the Plan or the 2006 DCP for the next following
Plan Year.

 

5.6                               Elective
Distributions. A Participant may elect to receive a distribution of
amounts credited to his Pre-2005 Account upon a determination by the Internal
Revenue Service or a state taxing authority of competent jurisdiction that
amounts credited to such Account are subject to inclusion in the gross income
of such Participant or Beneficiary for federal or state income tax purposes. Neither
the PAC nor the Plan Administrator will have any obligation to determine
whether any such determination is or has been made with respect to any
Participant and will assume that no such determination has been made until
advised by the Participant, in writing, that such determination has been made
and that either such determination is final and binding, or that obtaining
judicial review of such determination is not reasonably likely to result in a
reversal of such determination or is economically prohibitive.

 

5.7                               Death
of a Participant. If a Participant dies while employed by the Employer, the
Participant’s Pre-2005 Account balance will be paid to the Participant’s
Beneficiary in the manner elected by the Participant.

 

In the event a terminated Participant dies while receiving installment
payments from his Pre-2005 Account, the remaining installments will be paid to
the Participant’s Beneficiary as such payments become due in accordance with Section 5.1.

 

In the event a terminated Participant dies before receiving a lump sum
payment of his Pre-2005 Account or before he begins receiving installment
payments from such Account, the lump sum payment or installment payments will
be paid to the Participant’s Beneficiary as such payments become due in
accordance with Section 5.1.

 

5.8                               Disability
of a Participant. In the event of the Disability of the Participant, the
Participant will be entitled to a distribution of the Participant’s Pre-2005
Account balance in the manner elected in advance by the Participant and, if
applicable, in accordance with Section 5.2.

 

5.9                               Change
of Control. A Participant may, during a Special Enrollment Period or an
Open Enrollment Period, as applicable, file an Election Form in which the
Participant elects to receive a lump sum distribution of his Pre-2005 Account
balance in the event that a Change of Control, as defined in Section 2.1(k),
occurs. The Participant’s election with respect to a distribution of his
Pre-2005 Account in the event of a Change of Control must have been in effect
for twelve (12) months prior to the time of the Change of Control. If elected,
payment will be made as soon as practicable, but in any event not more than six
(6) months, after the occurrence of a Change of Control.

 

Notwithstanding any provision in this Plan to the contrary, to the
extent that any portion of the lump sum distribution is characterized as a
parachute payment within the meaning of Proposed Regulations section 1.280G-1
Q/A-24, or any similar Regulations, then in

 

22

 

no event will the present value of such parachute payment, when added
to the present value of all other parachute payments received as a result of a
Change of Control, exceed two hundred ninety-nine percent (299%) of the
Participant’s “base amount” as that term is defined in section 280G of the
Code.

 

If a Participant has elected to receive a lump sum distribution of his
Pre-2005 Account balance in the event of a Change of Control, a portion of
which distribution is characterized as a parachute payment, and such portion,
when added to the present value of all other parachute payments to be received
as a result of a Change of Control, exceeds an amount equal to two hundred
ninety-nine percent (299%) of the Participant’s base amount, then the
Participant may, within the thirty (30) day period following the Change in
Control, elect (a) to revoke the election made pursuant to this Section 5.9,
or (b) to receive in a lump sum distribution that portion of his Pre-2005
Account balance which does not result in a parachute payment with the remainder
being distributed in accordance with the Participant’s election under Section 5.1.

 

5.10                        Withholding.
Any taxes or other legally required withholdings from Compensation and
Bonus deferrals made prior to the Effective Date and/or payments to
Participants or Beneficiaries of their Pre-2005 Account under the Plan will be
deducted and withheld by the Employer, benefit provider or funding agent as
required pursuant to applicable law. To the extent amounts are payable from a Participant’s
Pre-2005 Account in Stock, the appropriate number of shares of Stock may be
withheld to satisfy such withholding obligation. A Participant or Beneficiary
will be provided with a tax withholding election form for purposes of
federal and state tax withholding, if applicable.

 

5.11                        Suspension
of Benefits. If a Participant terminates service and begins receiving
installment distributions from his Pre-2005 Account and such Participant is
reemployed by the Employer, then such Participant’s installment distributions
will be suspended during the period of his reemployment. Upon the Participant’s
subsequent termination of service, such installment distributions will
recommence in the same form as they were being paid before the
reemployment.

 

End of Article V

 

23

 

ARTICLE VI

DISTRIBUTION OF BENEFITS – POST-2004 ACCOUNTS

 

6.1                               Termination
Distribution Election. Subject to Section 6.1(d) (regarding the
2006 DCP), at the time an Eligible Person first becomes a Participant in the
Plan on or after the Effective Date (i.e.,
elects to make Compensation and Bonus Deferrals or is awarded a Discretionary
Contribution under the Plan), such Participant must elect the time and manner
in which his Post-2004 Account balance will be paid upon his Termination of
Employment, subject to the restrictions on the timing of such distribution to
Key Employees under Section 6.2. A Participant’s termination distribution
election, both as to the time of distribution and the manner of distribution,
will be irrevocable and will apply to all Post-2004 Deferrals made with respect
to that Participant under the Plan. Further, as provided in Section 6.3, a
Participant’s termination distribution election with respect to his Post-2004
Deferrals will supercede any Scheduled In-Service Withdrawal election made by
the Participant pursuant to Article IV.

 

(a)                                  Time
of Distribution

 

A Participant may elect to receive a
distribution of his Post-2004 Account upon his Termination of Employment at any
of the following times:

 

(i)                                     Subject
to the six (6) month delay applicable to Key Employees described in Section 6.2,
as soon as practicable after the Participant’s Termination of Employment;

 

(ii)                                  In
the first January following the Participant’s Termination of Employment;
or

 

(iii)                               In
the second January following the Participant’s Termination of Employment.

 

A Participant who dies while an Employee or a Director, as applicable,
will be deemed to have incurred a Termination of Employment on the date of his
death.

 

(b)                                  Manner
of Distribution

 

The manner in
which the Participant’s Post-2004 Account balance will be paid depends on the
amount of the Participant’s Post-2004 Account balance at the time of his
Termination of Employment.

 

(i)                                     Post-2004
Account balances of more than one hundred thousand dollars ($100,000) may be
paid in the form of a lump sum, monthly or annual installments over a
period of not less than one (1) nor more than fifteen (15) years.

 

(ii)                                  Post-2004
Account balances of more than ten thousand dollars ($10,000) but less than one
hundred thousand dollars ($100,000) may be paid in the form of a lump
sum or annual installments over a period of not less than one (1) nor more
than fifteen (15) years.

 

(iii)                               Post-2004
Account balances of less than ten thousand dollars ($10,000) will automatically
be paid in the form of a lump sum.

 

24

 

Such lump sum
or installments will be made in cash or in Stock, or in a combination thereof,
depending on the Participant’s investment crediting rates as provided in Section 4.5.
To the extent that installments will be made solely in cash, such installments
will be made on a monthly or annual basis, as determined above. Installments of
Stock or installments of cash and Stock will be made on an annual basis,
irrespective of the amount of the Participant’s Post-2004 Account. If the
Participant’s Post-2004 Account is paid in installments, such Account will be
revalued during the term of such installments based on procedures established
by the Plan Administrator.

 

(c)                                  Failure
to Elect Distribution

 

In the event that a Participant fails to
elect the manner in which his Post-2004 Account balance will be paid upon his
Termination of Employment, such Account balance will be paid in the form of
a lump sum as soon as practicable following the Participant’s Termination of
Employment, subject to the six (6) month delay applicable to Key Employees
described in Section 6.2.

 

(d)                                  Special
Rule for Participants in the 2006 DCP

 

As provided in Section 5.1(d) of the 2006 DCP, special
distribution rules apply to a Participant 
in the Plan who is eligible to participate in the 2006 DCP:

 

(i)                                     2006 DCP Distribution Election Controls. If
a Participant enrolls in the 2006 DCP during the June 2005 Open Enrollment
Period, distribution of such Participant’s Post-2004 Account under the Plan
will be governed by the termination distribution election made by the
Participant under Section 5.1 or the 2006 DCP.

 

(ii)                                  Plan Election Controls. If a Participant
does not enroll in the 2006 DCP during the June 2005 Open Enrollment
Period, then such Participant’s Post-2004 Account under the Plan as well as any
Employee deferrals and Employer contributions made with respect to such
Participant under the 2006 DCP will be governed by the Participant’s
termination distribution election made under Section 6.1 of the Plan;
subject to the requirement that distribution of such Participant’s Post-2004
Account under the Plan and Employee deferrals and Employer contributions made
with respect to such Participant under the 2006 DCP will be subject to the six (6) month
delay applicable to Key Employees described in Section 6.2.

 

(e)                                  Taxation
of Distributions

 

All distributions from the Participant’s Post-2004 Account under the
Plan will be taxable as ordinary income when received and subject to
appropriate withholding of income taxes. In the case of distributions in Stock,
the appropriate number of shares of Stock may be withheld to satisfy such
withholding obligations pursuant to administrative procedures adopted by the
Plan Administrator.

 

6.2                               Termination
Distributions to Key Employees. Distributions under this Plan of amounts
credited to a Participant’s Post-2004 Account that are payable to a Key
Employee on account of a Termination of Employment will be delayed for a period
of six (6) months following such Participant’s Termination of Employment. This
six (6) month restriction will not apply, or will cease to apply, with
respect to a distribution of the

 

25

 

Participant’s Post-2004 Account to the Participant’s Beneficiary by
reason of the death of the Participant.

 

6.3                               Scheduled
In-Service Withdrawals. A Participant who elects a Scheduled In-Service
Withdrawal of Compensation and Bonus Deferrals made on and after the Effective
Date pursuant to Section 4.1 or Section 4.2 may subsequently
elect to delay such distribution for a period of at least five (5) additional
calendar years; provided, that such election is made at least (12) twelve
months prior to the date that such distribution would otherwise be made. Further,
in the event that a Participant elects a Scheduled In-Service Withdrawal of
Compensation and Bonus Deferrals made on and after the Effective Date and
incurs a Termination of Employment prior to the Scheduled Withdrawal Date, the
Participant’s In-Service Withdrawal election and Compensation and Bonus
Deferrals under Section 4.1 will be cancelled and the Participant’s entire
Post-2004 Account balance will be paid according to the Participant’s
termination distribution election as provided in Section 6.1.

 

6.4                               Unforeseeable
Emergency. Upon application by the Participant, the Plan Administrator, in
its sole and absolute discretion, may direct payment of all or a portion
of the Participant’s Post-2004 Account balance prior to his Termination of
Employment and any Scheduled Withdrawal Date in the event of an Unforeseeable
Emergency. Any such application will set forth the circumstances constituting
such Unforeseeable Emergency. The Plan Administrator will determine whether to
grant an application for a distribution on account of an Unforeseeable
Emergency in accordance with guidance issued pursuant to Section 409A of
the Code.

 

A Participant who takes an Unforeseeable Emergency distribution pursuant
to this Section 6.4 (in the event that such Post-2004 Account balance is
not transferred to and administered under the 2006 DCP Plan) will have his
Compensation and Bonus Deferrals and RSU Deferrals under 2006 DCP suspended for
the remainder of the Plan Year in which such Unforeseeable Emergency
distribution occurs. In addition, such Participant will be ineligible to
participate in the 2006 DCP for purposes of making Compensation and Bonus
Deferrals and RSU Deferrals and receiving a Matching Contribution for the Plan
Year following the year in which such distribution occurs.

 

6.5                               Death
of a Participant. If a Participant dies while employed by the Employer, the
Participant’s Post-2004 Account balance will be paid to the Participant’s
Beneficiary in the manner elected (or deemed elected) by the Participant
pursuant to Section 6.1; provided, that the six (6) month restriction
on distributions to Key Employees under Section 6.2 will not apply.

 

In the event a terminated Participant dies while receiving installment
payments from his Post-2004 Account, the remaining installments will be paid to
the Participant’s Beneficiary as such payments become due in accordance with Section 5.1.

 

In the event a terminated Participant dies before receiving his lump
sum payment from his Post-2004 Account or before he begins receiving
installment payments from his Post-2004 Account, the lump sum payment or
installment payments will be paid to the Participant’s Beneficiary as such
payments become due in accordance with Section 6.1; provided, that the six
(6) month restriction on distributions to Key Employees under Section 6.2
will not apply.

 

6.6                               Withholding.
Any taxes or other legally required withholdings from Compensation and
Bonus Deferrals made on and after the Effective Date, termination
distributions,

 

26

 

Scheduled In-Service Withdrawal payments and Unforeseeable Emergency
distributions of a Participant’s Post-2004 Account made to Participants or
Beneficiaries under the Plan will be deducted and withheld by the Employer,
benefit provider or funding agent as required pursuant to applicable law. To
the extent amounts are payable from the Participant’s Post-2004 Account in
Stock, the appropriate number of shares of Stock may be sold to satisfy
such withholding obligation. A Participant or Beneficiary will be provided with
a tax withholding election form for purposes of federal and state tax
withholding, if applicable.

 

6.7                               Impact
of Reemployment on Benefits. If a Participant incurs a Termination of
Employment and begins receiving, or is scheduled to receive, installment
payments from his Post-2004 Account and such Participant is reemployed by the
Employer, then such Participant’s installment payments will continue or
commence as scheduled during the period of his reemployment.

 

End of Article VI

 

27

 

ARTICLE VII

PAYMENT LIMITATIONS

 

7.1                               Spousal
Claims.

 

(a)                                  Pre-2005 Accounts. In the event that an
Alternate Payee is entitled to all or a portion of a Participant’s Pre-2005
Account pursuant to the terms of a DRO, such Alternate Payee will have the
following distribution rights with respect to such Participant’s Pre-2005
Account to the extent set forth pursuant to the terms of the DRO:

 

(i)                                     payment
of benefit in a lump sum, in cash or Stock, based on the Participant’s
investment crediting rates under the Plan as provided in Section 4.4 and
the terms of the DRO, as soon as practicable following the acceptance of the
DRO by the Plan Administrator;

 

(ii)                                  payment
of benefit in a lump sum in cash or Stock, based on the Participant’s
investment crediting rates under the Plan as provided in Section 4.4 and
the terms of the DRO, in the first January following, or in the second January following,
but not later than the second January following, the acceptance of the DRO
by the Plan Administrator;

 

(iii)                               payment
of benefit in substantially equal installments, in cash and/or Stock, based on
the Participant’s investment crediting rates under the Plan as provided in Section 4.4
and the terms of the DRO, over a period of not less than one nor more than
fifteen (15) years from the date the DRO is accepted by the Plan Administrator,
but only if the Alternate Payee has a Pre-2005 Account balance in excess of one
hundred thousand dollars ($100,000); and

 

(iv)                              payment
of benefit in substantially equal installments, in cash and/or Stock, based on
the Participant’s investment crediting rates under the Plan as provided in Section 4.4
and the terms of the DRO, over a period of not less than one nor more than
fifteen (15) years beginning the first January following, or the second January following,
the date the DRO is accepted by the Plan Administrator, but only if the
Alternate Payee has a Pre-2005 Account balance in excess of one hundred
thousand dollars ($100,000).

 

To the extent that installments will be made solely in cash, such
installments will be made on a monthly basis. Installments of Stock or
installments of cash and Stock will be made on an annual basis.

 

An Alternate Payee who desires to elect any of the distributions
described in subsections (ii), (iii) or (iv) above, must complete and
deliver to the Plan Administrator all required forms and make such election
within thirty (30) days from the date the Alternate Payee is notified that the
DRO has been accepted. Any Alternate Payee who does not complete and deliver to
the Plan Administrator all required forms and/or whose DRO does not provide for
any of the distributions described in subsections (ii), (iii) or (iv) above
will receive his portion of the Participant’s Pre-2005 Account awarded to him
under the DRO in a lump sum according to subsection (i) above.

 

28

 

(b)                                 Post-2004 Accounts. In the event that an Alternate
Payee is entitled to all or a portion of a Participant’s Post-2004 Account
pursuant to the terms of a DRO, such Alternate Payee will have the following
distribution rights with respect to such Participant’s Post-2004 Account to the
extent set forth pursuant to the terms of the DRO:

 

(i)                                     payment
of benefits in a lump sum, in cash or Stock, based on the Participant’s
investment crediting rates under the Plan as provided in Section 4.4 and
the terms of the DRO, as soon as practicable following the acceptance of the
DRO by the Plan Administrator;

 

(ii)                                  payment
of benefits in a lump sum in cash or Stock, based on the Participant’s
investment crediting rates under the Plan as provided in Section 4.4 and
the terms of the DRO, in the first January following, or in the second January following,
but not later than the second January following, the acceptance of the DRO
by the Plan Administrator;

 

(iii)                               payment
of benefits in substantially equal annual or monthly installments, in cash
and/or Stock, based on the Participant’s investment crediting rates under the
Plan as provided in Section 4.4 and the terms of the DRO, over a period of
not less than one (1) nor more than fifteen (15) years from the date the
DRO is accepted by the Plan Administrator, but only if the Alternate Payee has
a Post-2004 Account balance in excess of one hundred thousand dollars
($100,000);

 

(iv)                              payment
of benefits in substantially equal annual or monthly installments, in cash
and/or Stock, based on the Participant’s investment crediting rates under the
Plan as provided in Section 4.4 and the terms of the DRO, over a period of
not less than one (1) nor more than fifteen (15) years beginning the first
January following, or the second January following, the date the DRO
is accepted by the Plan Administrator, but only if the Alternate Payee has a
Post-2004 Account balance in excess of one hundred thousand dollars ($100,000);

 

(v)                                 payment
of benefits in substantially equal annual installments, in cash and/or Stock,
based on the Participant’s investment crediting rates under the Plan as
provided in Section 4.4 and the terms of the DRO, over a period of not
less than one (1) nor more than fifteen (15) years from the date the DRO
is accepted by the Plan Administrator, but only if the Alternate Payee has a
Post-2004 Account balance in excess of ten thousand dollars ($10,000) and less
than one hundred thousand dollars ($100,000); and

 

(vi)                              payment
of benefits in substantially equal annual installments, in cash and/or Stock,
based on the Participant’s investment crediting rates under the Plan as
provided in Section 4.4 and the terms of the DRO, over a period of not
less than one (1) nor more than fifteen (15) years beginning the first January following,
or the second January following, the date the DRO is accepted by the Plan
Administrator, but only if the Alternate Payee has a Post-2004 Account balance
in excess of ten thousand dollars ($10,000) and less than one hundred thousand
dollars ($100,000).

 

29

 

To the extent that installments will be made solely in cash, such
installments will be made on a monthly or annual basis, as determined above. Installments
of Stock or installments of cash and Stock will be made on an annual basis,
irrespective of the amount of the Alternate Payee’s Post-2004 Account.

 

An Alternate Payee with respect to a DRO that provides for any of the
distributions described in subsections (ii), (iii), (iv), (v) or (vi) above,
must complete and deliver to the Plan Administrator all required forms within
thirty (30) days from the date the Alternate Payee is notified by the Plan
Administrator that the DRO has been accepted. Any Alternate Payee who does not
complete and deliver to the Plan Administrator all required forms and/or whose
DRO does not provide for any of the distributions described in subsections
(ii), (iii), (iv), (v) or (vi) above will receive his portion of the
Participant’s Post-2004 Account awarded to him under the DRO in a lump sum
according to subsection (i) above.

 

(c)                                  Any
taxes or other legally required withholdings from payments to such Alternate
Payee will be deducted and withheld by the Employer, benefit provider or
funding agent. To the extent amounts are payable under this Plan in Stock, the
appropriate number of shares of Stock may be sold to satisfy such
withholding obligation. The Alternate Payee will be provided with a tax
withholding election form for purposes of federal and state tax
withholding, if applicable.

 

(d)                                 The
Plan Administrator will have sole and absolute discretion to determine whether
a judgment, decree or order is a DRO, to determine whether a DRO will be
accepted for purposes of this Section 7.1 and to make interpretations
under this Section 7.1, including determining who is to receive benefits,
all calculations of benefits and determinations of the form of such
benefits, and the amount of taxes to be withheld. The decisions of the Plan
Administrator will be binding on all parties with an interest.

 

(e)                                  Any
benefits payable to an Alternate Payee pursuant to the terms of a DRO will be
subject to all provisions and restrictions of the Plan and any dispute
regarding such benefits will be resolved pursuant to the Plan claims procedure
in Article IX.

 

7.2                               Legal
Disability. If a person entitled to any payment under this Plan is, in the
sole judgment of the Plan Administrator, under a legal disability, or otherwise
is unable to apply such payment to his own interest and advantage, the Plan
Administrator, in the exercise of its discretion, may direct the Employer
or payor of the benefit to make any such payment in any one or more of the
following ways:

 

(a)                                  Directly
to such person;

 

(b)                                 To
his legal guardian or conservator; or

 

(c)                                  To
his spouse or to any person charged with the duty of his support, to be expended
for his benefit and/or that of his dependents.

 

The decision of the Plan Administrator will in each case be final and
binding upon all persons in interest, unless the Plan Administrator reverses
its decision due to changed circumstances.

 

7.3                               Assignment.
Except as provided in Section 7.1, no Participant or Beneficiary will
have any right to assign, pledge, transfer, convey, hypothecate, anticipate or
in any way

 

30

 

create a lien on any amounts payable under this Plan. No amounts
payable under this Plan will be subject to assignment or transfer or otherwise
be alienable, either by voluntary or involuntary act, or by operation of law,
or subject to attachment, execution, garnishment, sequestration or other seizure
under any legal, equitable or other process, or be liable in any way for the
debts or defaults of Participants and their Beneficiaries.

 

End of Article VII

 

31

 

ARTICLE VIII

FUNDING

 

8.1                               Funding.
Benefits under this Plan will be funded solely by the Employer. Benefits
under this Plan will constitute an unfunded general obligation of the Employer,
but the Employer may create reserves, funds and/or provide for amounts to
be held in trust to fund such benefits on its behalf. Payment of benefits may be
made by the Employer, any trust established by the Employer or through a
service or benefit provider to the Employer or such trust.

 

8.2                               Creditor
Status. Participants and their Beneficiaries will be general unsecured
creditors of their respective Employer with respect to the payment of any
benefit under this Plan, unless such benefits are provided under a contract of
insurance or an annuity contract that has been delivered to Participants, in
which case Participants and their Beneficiaries will look to the insurance
carrier or annuity provider for payment, and not to the Employer. The Employer’s
obligation for such benefit will be discharged by the purchase and delivery of
such annuity or insurance contract.

 

End of Article VIII

 

32

 

ARTICLE IX

ADMINISTRATION

 

9.1                               The
PAC. The overall administration of the Plan will be the responsibility of
the PAC.

 

9.2                               Powers
of PAC. The PAC will have sole and absolute discretion regarding the
exercise of its powers and duties under this Plan. In order to effectuate the
purposes of the Plan, the PAC will have the following powers and duties:

 

(a)                                  To
appoint the Plan Administrator;

 

(b)                                 To
review and render decisions respecting a denial of a claim for benefits under
the Plan;

 

(c)                                  To
construe the Plan and to make equitable adjustments for any mistakes or errors
made in the administration of the Plan; and

 

(d)                                 To
determine and resolve, in its sole and absolute discretion, all questions
relating to the administration of the Plan and the trust established to secure
the assets of the Plan (i) when differences of opinion arise between the
Company, an Affiliate, the Plan Administrator, the Trustee, a Participant, or
any of them, and (ii) whenever it is deemed advisable to determine such
questions in order to promote the uniform and nondiscriminatory
administration of the Plan for the greatest benefit of all parties concerned.

 

The foregoing list of express powers is not intended to be either
complete or conclusive, and the PAC will, in addition, have such powers as it may reasonably
determine to be necessary or appropriate in the performance of its powers and
duties under the Plan.

 

9.3                               Appointment
of Plan Administrator. The PAC will appoint the Plan Administrator, who
will have the responsibility and duty to administer the Plan on a daily basis. The
PAC may remove the Plan Administrator with or without cause at any time. The
Plan Administrator may resign upon written notice to the PAC.

 

9.4                               Duties
of Plan Administrator. The Plan Administrator will have sole and absolute
discretion regarding the exercise of its powers and duties under this Plan. The
Plan Administrator will have the following powers and duties:

 

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

 

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

 

(c)                                  To
determine all questions with regard to rights of Employees, Participants, and
Beneficiaries under the Plan including, but not limited to, questions involving
eligibility of an Employee to participate in the Plan and the value of a
Participant’s Accounts;

 

(d)                                 To
enforce the terms of the Plan and any rules and regulations adopted by the
PAC;

 

(e)                                  To
review and render decisions respecting a claim for a benefit under the Plan;

 

33

 

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

 

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

 

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

 

(i)                                     To
receive from the Employer and from Participants such information as is
necessary for the proper administration of the Plan;

 

(j)                                     To
establish and maintain, or cause to be maintained, the individual Accounts
described in Section 4.3;

 

(k)                                  To
create and maintain such records and forms as are required for the efficient
administration of the Plan;

 

(l)                                     To
make all determinations and computations concerning the benefits, credits and
debits to which any Participant, or other Beneficiary, is entitled under the
Plan;

 

(m)                               To
give the Trustee of the trust established to serve as a source of funds under
the Plan specific directions in writing with respect to:

 

(i)                                     making
distribution payments, giving the names of the payees, specifying the amounts
to be paid and the time or times when payments will be made; and

 

(ii)                                  making
any other payments which the Trustee is not by the terms of the trust agreement
authorized to make without a direction in writing by the Plan Administrator;

 

(n)                                 To
comply with all applicable lawful reporting and disclosure requirements of the
Act;

 

(o)                                 To
comply (or transfer responsibility for compliance to the Trustee) with all
applicable federal income tax withholding requirements for benefit
distributions; and

 

(p)                                 To
construe the Plan, in its sole and absolute discretion, and make equitable
adjustments for any errors made in the administration of the Plan.

 

The foregoing list of express duties is not intended to be either
complete or conclusive, and the Plan Administrator will, in addition, exercise
such other powers and perform such other duties as it may deem
necessary, desirable, advisable or proper for the supervision and
administration of the Plan.

 

9.5                               Indemnification
of PAC and Plan Administrator. To the extent not covered by insurance, or
if there is a failure to provide full insurance coverage for any reason, and to
the extent permissible under corporate by-laws and other applicable laws and
regulations, the Employer agrees to hold harmless and indemnify the PAC and
Plan Administrator against any and all claims and causes of action by or on
behalf of any and

 

34

 

all parties whomsoever, and all losses therefrom, including, without
limitation, costs of defense and reasonable attorneys’ fees, based upon or
arising out of any act or omission relating to or in connection with the Plan
other than losses resulting from the PAC’s, or any such person’s commission of
fraud or willful misconduct.

 

9.6                               Claims
for Benefits.

 

(a)                                  Initial
Claim. In the event that an Employee, Eligible Person, Participant or his
Beneficiary claims to be eligible for benefits, or claims any rights under this
Plan, such claimant must complete and submit such claim forms and supporting
documentation as will be required by the Plan Administrator, in its sole and
absolute discretion. Likewise, any Participant or Beneficiary who feels
unfairly treated as a result of the administration of the Plan, must file a
written claim, setting forth the basis of the claim, with the Plan
Administrator. In connection with the determination of a claim, or in
connection with review of a denied claim, the claimant may examine this
Plan, and any other pertinent documents generally available to Participants
that are specifically related to the claim.

 

A written notice of the disposition of any such claim will be furnished
to the claimant within ninety (90) days after the claim is filed with the Plan
Administrator. Such notice will refer, if appropriate, to pertinent provisions
of this Plan, will set forth in writing the reasons for denial of the claim if
a claim is denied (including references to any pertinent provisions of this
Plan) and, where appropriate, will describe any additional material or
information necessary for the claimant to perfect the claim and an explanation
of why such material or information is necessary. If the claim is denied, in
whole or in part, the claimant will also be notified of the Plan’s claim review
procedure and the time limits applicable to such procedure, including the
claimant’s right to arbitration following an adverse benefit determination on
review as provided below. All benefits provided in this Plan as a result of the
disposition of a claim will be paid as soon as practicable following receipt of
proof of entitlement, if requested.

 

(b)                                  Request
for Review. Within ninety (90) days after receiving written notice of the
Plan Administrator’s disposition of the claim, the claimant may file with
the PAC a written request for review of his claim. In connection with the
request for review, the claimant will be entitled to be represented by counsel
and will be given, upon request and free of charge, reasonable access to all
pertinent documents for the preparation of his claim. If the claimant does not
file a written request for review within ninety (90) days after receiving
written notice of the Plan Administrator’s disposition of the claim, the
claimant will be deemed to have accepted the Plan Administrator’s written
disposition, unless the claimant was physically or mentally incapacitated so as
to be unable to request review within the ninety (90)-day period.

 

(c)                                  Decision
on Review. After receipt by the PAC of a written application for review of
his claim, the PAC will review the claim taking into account all comments,
documents, records and other information submitted by the claimant regarding
the claim without regard to whether such information was considered in the
initial benefit determination. The PAC will notify the claimant of its decision
by delivery or by certified or registered mail to his last known address. A
decision on review of the claim will be made by the PAC at its next meeting
following receipt of the written request for review. If no meeting of the PAC
is scheduled within forty-five

 

35

 

(45) days of receipt of the written request for review, then the PAC
will hold a special meeting to review such written request for review within such
forty-five (45)-day period. If special circumstances require an extension of
the forty-five (45)-day period, the PAC will so notify the claimant and a
decision will be rendered within ninety (90) days of receipt of the request for
review. In any event, if a claim is not determined by the PAC within ninety
(90) days of receipt of written submission for review, it will be deemed to be
denied.

 

The decision of the PAC will be provided to the claimant as soon as
possible but no later than five (5) days after the benefit determination
is made. The decision will be in writing and will include the specific reasons
for the decision presented in a manner calculated to be understood by the
claimant and will contain references to all relevant Plan provisions on which
the decision was based. Such decision will also advise the claimant that he may receive
upon request, and free of charge, reasonable access to and copies of all
documents, records and other information relevant to his claim and will inform the
claimant of his right to arbitration in the case of an adverse decision
regarding his appeal. The decision of the PAC will be final and conclusive.

 

9.7                               Arbitration.
In the event the claims review procedure described in Section 9.6 of
the Plan does not result in an outcome thought by the claimant to be in
accordance with the Plan document, he may appeal to a third party neutral
arbitrator. The claimant must appeal to an arbitrator within sixty (60) days
after receiving the PAC’s denial or deemed denial of his request for review and
before bringing suit in court.

 

The arbitrator will be mutually selected by the Participant and the PAC
from a list of arbitrators provided by the American Arbitration Association (“AAA”).
If the parties are unable to agree on the selection of an arbitrator within ten
(10) days of receiving the list from the AAA, the AAA will appoint an
arbitrator. The arbitrator’s review will be limited to interpretation of the
Plan document in the context of the particular facts involved. The claimant,
the PAC and the Employer agree to accept the award of the arbitrator as
binding, and all exercises of power by the arbitrator hereunder will be final,
conclusive and binding on all interested parties, unless found by a court of
competent jurisdiction, in a final judgment that is no longer subject to review
or appeal, to be arbitrary and capricious. The costs of arbitration will be
paid by the Employer; the costs of legal representation for the claimant or
witness costs for the claimant will be borne by the claimant; provided, that,
as part of his award, the Arbitrator may require the Employer to
reimburse the claimant for all or a portion of such amounts.

 

The arbitrator will have no power to add to, subtract from, or modify
any of the terms of the Plan, or to change or add to any benefits provided by
the Plan, or to waive or fail to apply any requirements of eligibility for a
benefit under the Plan. Nonetheless, the arbitrator will have absolute
discretion in the exercise of its powers in this Plan. Arbitration decisions
will not establish binding precedent with respect to the administration or
operation of the Plan.

 

9.8                               Receipt
and Release of Necessary Information. In implementing the terms of this
Plan, the PAC and Plan Administrator, as applicable, may, without the consent
of or notice to any person, release to or obtain from any other insuring entity
or other organization or person any information, with respect to any person,
which the PAC or Plan Administrator deems to be necessary for such purposes. Any
Participant or Beneficiary claiming benefits under this Plan will furnish to
the PAC or Plan

 

36

 

Administrator, as applicable, such information as may be necessary
to determine eligibility for and amount of benefit, as a condition of claiming
and receiving such benefit.

 

9.9                               Overpayment
and Underpayment of Benefits. The Plan Administrator may adopt, in its
sole and absolute discretion, whatever rules, procedures and accounting
practices are appropriate in providing for the collection of any overpayment of
benefits. If a Participant or Beneficiary receives an underpayment of benefits,
the Plan Administrator will direct that payment be made as soon as practicable
to make up for the underpayment. If an overpayment is made to a Participant or
Beneficiary, for whatever reason, the Plan Administrator may, in its sole and
absolute discretion, withhold payment of any further benefits under the Plan
until the overpayment has been collected or may require repayment of benefits
paid under this Plan without regard to further benefits to which the
Participant or Beneficiary may be entitled.

 

End of Article IX

 

37

 

ARTICLE X

OTHER BENEFIT PLANS OF THE COMPANY

 

10.1                        Other
Plans. Nothing contained in this Plan will prevent a Participant prior to
his death, or a Participant’s spouse or other Beneficiary after such
Participant’s death, from receiving, in addition to any payments provided for
under this Plan, any payments provided for under any other plan or benefit
program of the Employer, or which would otherwise be payable or distributable
to him, his surviving spouse or Beneficiary under any plan or policy of the
Employer or otherwise. Nothing in this Plan will be construed as preventing the
Company or any of its Affiliates from establishing any other or different plans
providing for current or deferred compensation for employees and/or Directors. Unless
otherwise specifically provided in any plan of the Company intended to “qualify”
under section 401 of the Code, Compensation and Bonus Deferrals made under
this Plan will constitute earnings or compensation for purposes of determining
contributions or benefits under such qualified plan.

 

End of Article X

 

38

 

ARTICLE XI

AMENDMENT AND TERMINATION OF THE PLAN

11.1                        Continuation.
The Company intends to continue this Plan indefinitely, but nevertheless
assumes no contractual obligation beyond the promise to pay the benefits
described in this Plan.

 

11.2                        Amendment
of Plan. The Company, through an action of the Compensation Committee,
reserves the right in its sole and absolute discretion to amend this Plan in
any respect at any time.

 

11.3                        Termination
of Plan. The Company, through an action of the Compensation Committee, may terminate
or suspend this Plan in whole or in part at any time, provided that no
such termination or suspension will deprive a Participant, or person claiming
benefits under this Plan through a Participant, of any amount credited to his
Accounts under this Plan up to the date of suspension or termination, except as
required by applicable law and pursuant to the valuation of such Accounts
pursuant to Section 4.4. Notwithstanding any provision of this Plan to the
contrary, upon the complete termination of the Plan, the Compensation
Committee, in its sole and absolute discretion, may direct that the Plan
Administrator treat each Participant as having incurred a Termination of
Employment and to commence the distribution of each such Participant’s Account
to him or his Beneficiary, as applicable, in the form elected (or deemed
elected) by such Participant pursuant to Section 5.1 or Section 6.1
to the extent that with respect to Post-2004 Deferrals the commencement of such
distribution will not violate section 409A of the Code.

 

11.4                        Termination
of Affiliate’s Participation. An Affiliate may terminate its
participation in the Plan at any time by an action of its governing body and
providing written notice to the Company. Likewise, the Company may terminate
an Affiliate’s participation in the Plan at any time by an action of the
Compensation Committee and providing written notice to the Affiliate. The
effective date of any such termination will be the later of the date specified
in the notice of the termination of participation or the date on which the PAC
can administratively implement such termination. In the event that an Affiliate’s
participation in the Plan is terminated, each Participant employed by such
Affiliate will continue to participate in the Plan as an inactive Participant
and will be entitled to a distribution of his entire Account or a portion
thereof upon the earlier of his Scheduled Withdrawal Date, if any, or his
Termination of Employment, in the form elected (or deemed elected) by such
Participant pursuant to Section 5.1 or Section 6.1, as applicable.

 

End of Article XI

 

39

 

ARTICLE XII

MISCELLANEOUS

 

12.1                        No
Reduction of Employer Rights. Nothing contained in this Plan will be
construed as a contract of employment between the Employer and an Employee, or
as a right of any Employee to continue in the employment of the Employer, or as
a limitation of the right of the Employer to discharge any of its Employees,
with or without cause or as a right of any Director to be renominated to serve
as a Director.

 

12.2                        Provisions
Binding. All of the provisions of this Plan will be binding upon all
persons who will be entitled to any benefit hereunder, their heirs and personal
representatives.

 

End of Article XII

 

40

 

IN WITNESS
WHEREOF, this amended and restated Plan has
been executed on this 14th day of February, 2006, effective as of January 1,
2005, except as specifically provided otherwise herein.

 

 

	
   

  	
  TENET
  HEALTHCARE CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Debra L.
  Andonie-Wall

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Debra L.
  Andonie-Wall

  
	
   

  	
   

  	
  Senior
  Director, Compensation and HRIS

  

 

41

 

EXHIBIT A(1)

 

LIMITS ON
ELIGIBILITY AND PARTICIPATION

 

Section 3.1 of the Seventh Amended and Restated Tenet 2001
Deferred Compensation Plan (the “Plan”) provides the Pension Administration
Committee (“PAC”) with the authority to limit the classification of employees
of Tenet Healthcare Corporation or its participating affiliates (collectively
the “Employer”) eligible to participate in the Plan at any time and states that
any such limitation will be set forth in this Exhibit A.

 

(1) This
Exhibit A may be updated from time to time without the need for a
formal amendment to the DCP.

 

42Exhibit 10.2

 

TENET 2006 DEFERRED

 

COMPENSATION

 

PLAN

 

 

TABLE OF CONTENTS

 

TENET 2006 DEFERRED COMPENSATION PLAN

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE I
  — PREAMBLE AND PURPOSE

  	
  1

  
	
   

  	
  1.1

  	
  Preamble

  	
  1

  
	
   

  	
  1.2

  	
  Purpose

  	
  1

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE II
  — DEFINITIONS AND CONSTRUCTION

  	
  2

  
	
   

  	
  2.1

  	
  Definitions

  	
  2

  
	
   

  	
  2.2

  	
  Construction

  	
  8

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE III
  — PARTICIPATION AND FORFEITABILITY OF BENEFITS

  	
  9

  
	
   

  	
  3.1

  	
  Eligibility and Participation

  	
  9

  
	
   

  	
  3.2

  	
  Forfeitability of Benefits

  	
  10

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IV
  — DEFERRAL, COMPANY CONTRIBUTIONS, ACCOUNTING AND INVESTMENT CREDITING RATES

  	
  11

  
	
   

  	
  4.1

  	
  General Rules Regarding Deferral Elections

  	
  11

  
	
   

  	
  4.2

  	
  Compensation and Bonus Deferrals

  	
  11

  
	
   

  	
  4.3

  	
  RSU Deferrals

  	
  13

  
	
   

  	
  4.4

  	
  Company Contributions

  	
  13

  
	
   

  	
  4.5

  	
  Accounting for Deferred Compensation

  	
  14

  
	
   

  	
  4.6

  	
  Investment Crediting Rates

  	
  15

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE V
  — DISTRIBUTION OF BENEFITS

  	
  18

  
	
   

  	
  5.1

  	
  Termination Distribution Election

  	
  18

  
	
   

  	
  5.2

  	
  Termination Distributions to Key Employees

  	
  20

  
	
   

  	
  5.3

  	
  Scheduled In-Service Withdrawals

  	
  20

  
	
   

  	
  5.4

  	
  Unforeseeable Emergency

  	
  20

  
	
   

  	
  5.5

  	
  Death of a Participant

  	
  20

  
	
   

  	
  5.6

  	
  Withholding

  	
  21

  
	
   

  	
  5.7

  	
  Impact of Reemployment on Benefits

  	
  21

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VI
  — PAYMENT LIMITATIONS

  	
  22

  
	
   

  	
  6.1

  	
  Spousal Claims

  	
  22

  
	
   

  	
  6.2

  	
  Legal Disability

  	
  23

  
	
   

  	
  6.3

  	
  Assignment

  	
  24

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VII
  — FUNDING

  	
  25

  
	
   

  	
  7.1

  	
  Funding

  	
  25

  
	
   

  	
  7.2

  	
  Creditor Status

  	
  25

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VIII
  — ADMINISTRATION

  	
  26

  
	
   

  	
  8.1

  	
  The PAC

  	
  26

  
	
   

  	
  8.2

  	
  Powers of PAC

  	
  26

  
	
   

  	
  8.3

  	
  Appointment of Plan Administrator

  	
  26

  
					

 

i

 

	
   

  	
  8.4

  	
  Duties of Plan Administrator

  	
  26

  
	
   

  	
  8.5

  	
  Indemnification of PAC and Plan Administrator

  	
  28

  
	
   

  	
  8.6

  	
  Claims for Benefits

  	
  28

  
	
   

  	
  8.7

  	
  Arbitration

  	
  29

  
	
   

  	
  8.8

  	
  Receipt and Release of Necessary Information

  	
  30

  
	
   

  	
  8.9

  	
  Overpayment and Underpayment of Benefits

  	
  30

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IX
  — OTHER BENEFIT PLANS OF THE COMPANY

  	
  31

  
	
   

  	
  9.1

  	
  Other Plans

  	
  31

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE X
  — AMENDMENT AND TERMINATION OF THE PLAN

  	
  32

  
	
   

  	
  10.1

  	
  Continuation

  	
  32

  
	
   

  	
  10.2

  	
  Amendment of Plan

  	
  32

  
	
   

  	
  10.3

  	
  Termination of Plan

  	
  32

  
	
   

  	
  10.4

  	
  Termination of Affiliate’s Participation

  	
  32

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XI
  — MISCELLANEOUS

  	
  33

  
	
   

  	
  11.1

  	
  No Reduction of Employer Rights

  	
  33

  
	
   

  	
  11.2

  	
  Provisions Binding

  	
  33

  
	
   

  	
   

  	
   

  	
   

  
	
  EXHIBIT A

  	
  A-1

  

 

ii

 

TENET 2006 DEFERRED COMPENSATION PLAN

 

ARTICLE I

PREAMBLE AND PURPOSE

 

1.1                               Preamble.
 This Tenet 2006 Deferred Compensation Plan (the “Plan”) of Tenet
Healthcare Corporation (the “Company”), is intended to permit the Company and
its participating Affiliates, as defined herein (collectively, the “Employer”),
to attract and retain a select group of management or highly compensated
employees and Directors, as defined herein.

 

The Employer may adopt one or more trusts
to serve as a possible source of funds for the payment of benefits under this
Plan.

 

1.2                               Purpose.
 Through this Plan, the Employer intends to permit the deferral of
compensation and to provide additional benefits to Directors and a select group
of management or highly compensated employees of the Employer. Accordingly, it
is intended that this Plan will not constitute a “qualified plan” subject to
the limitations of section 401(a) of the Code, nor will it constitute
a “funded plan,” for purposes of such requirements. It also is intended that
this Plan will be exempt from the participation and vesting requirements of Part 2
of Title I of the Act, the funding requirements of Part 3 of Title I of
the Act, and the fiduciary requirements of Part 4 of Title I of the Act by
reason of the exclusions afforded plans that are unfunded and maintained by an
employer primarily for the purpose of providing deferred compensation for a
select group of management or highly compensated employees.

 

End of Article I

 

 

ARTICLE II

DEFINITIONS AND CONSTRUCTION

 

2.1                               Definitions.
 When a word or phrase appears in this
Plan with the initial letter capitalized, and the word or phrase does not
commence a sentence, the word or phrase will generally be a term defined in
this Section 2.1. The following words and phrases with the initial letter
capitalized will have the meaning set forth in this Section 2.1, unless a
different meaning is required by the context in which the word or phrase is
used.

 

(a)                                  “Account”
means one or more of the bookkeeping accounts maintained by the Company or
its agent on behalf of a Participant, as described in more detail in Section 4.5.

 

(b)                                  “Act”
means the Employee Retirement Income Security Act of 1974, as amended from
time to time.

 

(c)                                  “Affiliate”
means a corporation that is a member of a controlled group of corporations
(as defined in section 414(b) of the Code) that includes the Company,
any trade or business (whether or not incorporated) that is in common control
(as defined in section 414(c) of the Code) with the Company, or any
entity that is a member of the same affiliated service group (as defined in section 414(m)
of the Code) as the Company.

 

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

 

(e)                                  “Annual
Incentive Plan Award” means the amount payable to an Employee each year, if
any, under the Company’s Annual Incentive Plan, as the same may be
amended, restated, modified, renewed or replaced from time to time.

 

(f)                                    “Basic
Deferral” means the Compensation deferral made by a Participant pursuant to
Section 4.2(a).

 

(g)                                 “Beneficiary”
means the person designated by the Participant to receive a distribution of
his benefits under the Plan upon the death of the Participant. If the
Participant is married, his spouse will be his Beneficiary, unless his spouse
consents in writing to the designation of an alternate Beneficiary. In the
event that a Participant fails to designate a Beneficiary, or if the
Participant’s Beneficiary does not survive the Participant, the Participant’s
Beneficiary will be his surviving spouse, if any, or if the Participant does
not have a surviving spouse, his estate. The term “Beneficiary” also will mean
a Participant’s spouse or former spouse who is entitled to all or a portion of
a Participant’s benefit pursuant to Section 6.1.

 

(h)                                 “Board”
means the Board of Directors of the Company.

 

(i)                                    “Bonus”
means (i) a bonus paid to a Participant in the form of an Annual
Incentive Plan Award, (ii) an annual bonus payment to a Participant
pursuant to

 

2

 

an employment or similar agreement, or (iii) any
other bonus payment designated by the PAC as an eligible bonus under the Plan.

 

(j)                                    “Bonus
Deferral” means the Bonus deferral made by a Participant pursuant to Section 4.2(b).
A Participant may also defer a portion of his Bonus as a Supplemental
Deferral pursuant to Section 4.2(c).

 

(k)                                “Code”
means the Internal Revenue Code of 1986, as amended from time to time.

 

(l)                                    “Company”
means Tenet Healthcare Corporation.

 

(m)                              “Compensation”
means base salaries, commissions, and certain other amounts of cash
compensation payable to the Participant during the Plan Year. Compensation will
exclude cash bonuses, foreign
service pay, hardship withdrawal allowances and any other pay intended to
reimburse the Employee for the higher cost of living outside the United States,
Annual Incentive Plan Awards, automobile allowances, ExecuPlan payments,
housing allowances, relocation payments, deemed income, income payable under
stock incentive plans, Christmas gifts, insurance premiums, and other imputed
income, pensions, retirement benefits, and contributions to and payments from
the 401(k) Plan and this Plan or any other nonqualified retirement plan
maintained by the Employer. The term “Compensation” for Directors will mean any
cash compensation from retainers, meeting fees and committee fees paid during
the Plan Year.

 

(n)                                 “Compensation
Committee” means the Compensation Committee of the Board, which has the
authority to amend and terminate the Plan as provided in Article X. The
Compensation Committee also will be responsible for determining the amount of
the Discretionary Contribution, if any, to be made by the Employer.

 

(o)                                  “Compensation
and Bonus Deferrals” means the Basic Deferrals, Bonus Deferrals,
Supplemental Deferrals and/or Discretionary Deferrals made pursuant to Section 4.2
of the Plan.

 

(p)                                  “Director”
means a member of the Board who is not an Employee.

 

(q)                                  “Discretionary
Contribution” means the contribution made by the Employer on behalf of a
Participant as described in Section 4.4(b).

 

(r)                                  “Discretionary
Deferral” means the Compensation deferral described in Section 4.2(d) made
by a Participant.

 

(s)                                  “DRO”
means a domestic relations order that is a judgment, decree, or order
(including one that approves a property settlement agreement) that relates to
the provision of child support, alimony payments or marital property rights to
a spouse, former spouse, child or other dependent of a Participant and is
rendered under a state (within the meaning of section 7701(a)(10) of
the Code) domestic relations law (including a community property law) and that:

 

3

 

(i)                                     Creates or recognizes the existence of an
Alternate Payee’s right to, or assigns to an Alternate Payee the right to
receive all or a portion of the benefits payable with respect to a Participant
under the Plan;

 

(ii)                                  Does not require the Plan to provide any
type or form of benefit, or any option, not otherwise provided under the
Plan;

 

(iii)                               Does not require the Plan to provide
increased benefits (determined on the basis of actuarial value);

 

(iv)                              Does not require the payment of benefits
to an Alternate Payee that are required to be paid to another Alternate Payee
under another order previously determined to be a DRO; and

 

(v)                                 Clearly specifies: the name and last
known mailing address of the Participant and of each Alternate Payee covered by
the DRO; the amount or percentage of the Participant’s benefits to be paid by
the Plan to each such Alternate Payee, or the manner in which such amount or percentage
is to be determined; the number of payments or payment periods to which such
order applies; and that it is applicable with respect to this Plan.

 

(t)                                    “Effective
Date” means January 1, 2006, except as provided otherwise herein.

 

(u)                                 “Election
Form” means the written forms provided by the PAC or the Plan Administrator
pursuant to which the Participant consents to participation in the Plan and
makes elections with respect to deferrals, requested investment crediting rates
and distributions hereunder. Such Participant consent and elections may be
done either in writing or on-line through an electronic signature.

 

(v)                                   “Eligible
Person” means (i) each Employee who is eligible for a Bonus as defined
in Section 2.1(i) for the applicable Plan Year, (ii) each
Director, and (iii) all aviation personnel who are Employees and are
designated as captains. In addition, the term “Eligible Person” will include
any Employee designated as an Eligible Person by the PAC. As provided in Section 3.1,
the PAC may at any time, in its sole and absolute discretion, limit the
classification of Employees who are eligible to participate in the Plan for a
Plan Year and/or may modify or terminate an Eligible Person’s
participation in the Plan without the need for an amendment to the Plan.

 

(w)                                “Employee”
means each select member of management or highly compensated employee
receiving remuneration, or who is entitled to remuneration, for services
rendered to the Employer, in the legal relationship of employer and employee.

 

(x)                                  “Employer”
means the Company and each Affiliate which has adopted the Plan as a
participating employer. An Affiliate may evidence its adoption of the Plan
either by a formal action of its governing body or by commencing deferrals and
taking other administrative actions with respect to this Plan on behalf of its
employees. An entity will cease to be a participating employer as of the date
such entity ceases to be an Affiliate.

 

4

 

(y)                                  “Fair
Market Value” means the closing price of a share of Stock on the New York
Stock Exchange on the date as of which fair market value is to be determined.

 

(z)                                  “Five
Percent Owner” means any person who owns (or is considered as owning within
the meaning of section 318 of the Code) more than five percent (5%) of the
outstanding stock of the Company or an Affiliate or stock possessing more than
five percent (5%) of the total combined voting power of all stock of the
Company or an Affiliate. The rules of sections 414(b), (c) and (m) of
the Code will not apply for purposes of applying these ownership rules. Thus,
this ownership test will be applied separately with respect to the Company and
each Affiliate.

 

(aa)                            “401(k)
Plan” means the Tenet Healthcare Corporation 401(k) Retirement Savings Plan,
as such plan may be amended, restated, modified, renewed or replaced from
time to time.

 

(bb)                            “JOBs
Act” means the American Jobs Creation Act of 2004 and any regulations or
rulings issued thereunder. The provisions of the Plan will be construed and administered
in a manner that enables the Plan to comply with the provisions of the JOBs
Act.

 

(cc)                            “Key
Employee” means any Employee or former Employee (including any deceased
Employee) who at any time during the Plan Year was:

 

(i)                                     an officer of the Company or an Affiliate
having compensation within the meaning of section 415(c) of the Code
of greater than one hundred thirty thousand dollars ($130,000) (as adjusted
under section 416(i)(1) of the Code for Plan Years beginning after December 31,
2002) (such limit is $135,000 for 2005);

 

(ii)                                  a Five Percent Owner; or

 

(iii)                               a One Percent Owner having compensation
within the meaning of section 415(c) of the Code of more than one
hundred fifty thousand dollars ($150,000).

 

The determination of Key Employees will be based
upon a twelve (12) month period ending on December 31 of each year (i.e., the identification date). Employees
that are Key Employees during such twelve (12) month period will be treated as
Key Employees for the twelve (12) month period beginning on the first day of
the fourth month following the end of the twelve (12) month period (i.e., since the identification date is December 31,
then the twelve (12) month period to which it applies begins on the next
following April 1).

 

The determination of who is a Key Employee will
be made in accordance with section 416(i)(1) of the Code and other
guidance of general applicability issued thereunder. For purposes of
determining whether an Employee or former Employee is an officer, a Five
Percent Owner or a One Percent Owner, the Company and each Affiliate will be
treated as a separate employer (i.e.,
the controlled group rules of sections 414(b), (c), (m) and (o) of the
Code will not

 

5

 

apply). Conversely, for purposes of determining
whether the one hundred thirty thousand dollar ($130,000) adjusted limit on
compensation is met under the officer test described in Section 2.1(cc)(i),
compensation from the Company and all Affiliates will be taken into account (i.e., the controlled group rules of
sections 414(b), (c), (m) and (o) of the Code will apply). Further, in
determining who is an officer under the officer test described in Section 2.1(cc)(i),
no more than fifty (50) employees of the Company or its Affiliates (i.e., the controlled group rules of
sections 414(b), (c), (m) and (o) of the Code will apply) will be treated as
officers. If the number of officers exceeds fifty (50), the determination of
which Employees or former Employees are officers will be determined based on
who had the largest annual compensation from the Company and Affiliates for the
Plan Year.

 

(dd)                            “Matching
Contribution” means the contribution made by the Employer pursuant to Section 4.4(a) on
behalf of a Participant who makes Supplemental Deferrals to the Plan as
described in Section 4.2(c).

 

(ee)                            “One
Percent Owner” means any person who would be described as a Five Percent
Owner if “one percent (1%)” were substituted for “five percent (5%)” each place
where it appears therein.

 

(ff)                                “Open
Enrollment Period” means the period occurring each year during which an
Eligible Person may make his elections to defer his Compensation, Bonus
and RSUs for a subsequent Plan Year pursuant to Article IV. The Open
Enrollment Period for 2006 will occur in June 2005 and an Eligible Person may elect
to defer under the Plan Compensation and Bonus that would otherwise be paid in
2006 and RSUs awarded under the option exchange program under the SIP. Subsequent
Open Enrollment Periods will occur in accordance with section 409A of the
Code (i.e., no later than December 31st
of each year with respect to Compensation, no later than June 30 of each
year with respect to Bonus and either prior to or within thirty (30) days after
the date of grant with respect to RSUs).

 

(gg)                          “PAC” means
the Pension Administration Committee of the Company established by the
Compensation Committee of the Board, and whose members have been appointed by
such Compensation Committee. The PAC will have the responsibility to administer
the Plan and make final determinations regarding claims for benefits, as
described in Article VIII.

 

(hh)                          “Participant”
means each Eligible Person who has been designated for participation in
this Plan and each Employee or former Employee (or Director or former Director)
whose participation in this Plan has not terminated.

 

(ii)                                “Plan”
means the Tenet 2006 Deferred Compensation Plan as set forth herein and as
the same may be amended from time to time.

 

(jj)                                “Plan
Administrator” means the individual or entity appointed by the PAC to
handle the day-to-day administration of the Plan, including but not limited to
determining a Participant’s eligibility for benefits and the amount of such
benefits and complying with all applicable reporting and disclosure obligations
imposed on the Plan. If the PAC does not appoint an individual or entity as
Plan Administrator, the PAC will serve as the Plan Administrator.

 

6

 

(kk)                        “Plan Year”
means the fiscal year of this Plan, which will commence on January 1
each year and end on December 31 of such year.

 

(ll)                                “RSU
Deferral” means the RSU deferral made by a Participant pursuant to Section 4.3.

 

(mm)                    “RSU” means
the restricted stock units awarded on July 1, 2005 under the option
exchange program under the SIP that was approved by shareholders of the Company
on May 26, 2005 or any RSUs awarded under the SIP after December 31,
2006.

 

(nn)                          “Scheduled
In-Service Withdrawal” means a distribution elected by the Participant
pursuant to Section 4.2 or Section 4.3 for an in-service withdrawal
of amounts of Basic Deferrals, Bonus Deferrals and/or RSU Deferrals made in a
given Plan Year, and earnings or losses attributable thereto, as set forth on
the Election Form for such Plan Year.

 

(oo)                            “Scheduled
Withdrawal Date” means the distribution date elected by the Participant for
a Scheduled In-Service Withdrawal.

 

(pp)                            “SIP” means
the Third Amended and Restated Tenet Healthcare Corporation 2001 Stock
Incentive Plan.

 

(qq)                            “Special
Enrollment Period” means the thirty (30) day period after an Employee is
employed by the Employer (or a Director is elected to the Board) and advised of
his eligibility to participate in the Plan during which the Eligible Person may make
his elections to defer Compensation, Bonus and RSUs earned after such election
pursuant to Article IV. The Plan Administrator may also designate
certain periods as Special Enrollment Periods to the extent permitted under section 409A
of the Code.

 

(rr)                            “Stock”
means the common stock, par value $0.075 per share, of the Company.

 

(ss)                            “Stock
Unit” means a non-voting, non-transferable unit of measurement that is
deemed for bookkeeping and distribution purposes only to represent one
outstanding share of Stock.

 

(tt)                                “Supplemental
Deferral” means the Compensation and/or Bonus Deferral described in Section 4.2(c).

 

(uu)                          “Termination
of Employment” means (i) with respect to an Employee, the date that
such Employee ceases performing services for the Employer and its Affiliates in
the capacity of an employee and (ii) with respect to a Director, the date
that such Director ceases to provide services to the Company as a member of the
Board. An Employee who transfers employment from an Employer to an Affiliate,
regardless of whether such Affiliate has adopted the Plan as a participating
employer, will not incur a Termination of Employment. A Participant who
experiences a “qualifying termination” under the Tenet Executive Severance
Protection Plan (the “TESPP”) will incur a Termination of Employment under the
Plan and such an Employee will be ineligible to make Compensation and Bonus
Deferrals and RSU Deferrals under the Plan during his severance period under

 

7

 

the TESPP (i.e.,
will be ineligible for future participation in the Plan as an active Employee).

 

(vv)                              “Trustee”
means the individual or entity appointed to serve as trustee of any trust
established as a possible source of funds for the payment of benefits under
this Plan as provided in Section 7.1.

 

(ww)                        “2001 DCP”
means the Seventh Amended and Restated Tenet 2001 Deferred Compensation
Plan which was in effect prior to the passage of the JOBs Act and the enactment
of section 409A of the Code. All pre-2005 employee deferrals and employer
contributions under the 2001 DCP were fully vested as of January 31, 2004
and as such are not subject to the provisions of section 409A of the Code.
All 2005 employee deferrals and employer contributions under the 2001 DCP are
subject to, and were made in accordance with, the requirements of section 409A
of the Code. No employee deferrals or employer contributions will be made to
the 2001 DCP after 2005. It is anticipated that all 2005 employee deferrals and
employer contributions under the 2001 DCP will be transferred to and
administered under this Plan.

 

(xx)                            “Unforeseeable
Emergency” means (i) a severe financial hardship to the Participant
resulting from an illness or accident of the Participant, his spouse or his
dependent (as defined under section 152(a) of the Code), (ii) a
loss of the Participant’s property due to casualty, or (iii) other similar
extraordinary and unforeseeable circumstances arising as a result of events
beyond the control of the Participant, as determined by the Plan Administrator
in its sole and absolute discretion in accordance with the requirements of section 409A
of the Code.

 

2.2                               Construction.                     If any
provision of this Plan is determined to be for any reason invalid or
unenforceable, the remaining provisions of this Plan will continue in full
force and effect. All of the provisions of this Plan will be construed and
enforced in accordance with the laws of the State of Texas and will be
administered according to the laws of such state, except as otherwise required
by the Act, the Code or other applicable federal law. The term “delivered to
the PAC or Plan Administrator,” as used in this Plan, will include delivery to
a person or persons designated by the PAC or Plan Administrator, as applicable,
for the disbursement and the receipt of administrative forms. Delivery will be
deemed to have occurred only when the form or other communication is
actually received. Headings and subheadings are for the purpose of reference
only and are not to be considered in the construction of this Plan. The
pronouns “he,” “him” and “his” used in the Plan will also refer to similar
pronouns of the female gender unless otherwise qualified by the context.

 

End of Article II

 

8

 

ARTICLE III

PARTICIPATION AND FORFEITABILITY OF BENEFITS

 

3.1                               Eligibility
and Participation.

 

(a)                                  Determination
of Eligibility. It is intended that eligibility to participate in the Plan
will be limited to Eligible Persons, as determined by the PAC, in its sole and
absolute discretion. During the Open Enrollment Period, each Eligible Person
will be contacted and informed that he may elect to defer portions of his
Compensation, Bonus and/or RSUs and will be provided with an Election Form,
investment crediting rate preference designation and such other forms as the
PAC or the Plan Administrator will determine. An Eligible Person will become a
Participant by completing all required forms and making a deferral election
during an Open Enrollment Period pursuant to Section 4.1. Eligibility to
become a Participant for any Plan Year will not entitle an Eligible Person to
continue as an active Participant for any subsequent Plan Year.

 

(b)                                  Limits
on Eligibility. The PAC may at any time, in its sole and absolute
discretion, limit the classification of Employees eligible to participate in
the Plan and/or may limit or terminate an Eligible Person’s participation
in the Plan. Any action taken by the PAC that limits the classification of
Employees eligible to participate in the Plan or that modifies or terminates an
Eligible Person’s participation in the Plan will be set forth in Exhibit A
attached hereto. Exhibit A may be modified from time to time without
a formal amendment to the Plan, in which case a revised Exhibit A will be
attached hereto.

 

An Employee who takes an Unforeseeable Emergency
distribution pursuant to Section 5.4 of this Plan (including amounts
attributable to 2005 employee deferrals and employer contributions under the
2001 DCP which are transferred to and administered under this Plan) or Section 6.4
of the 2001 DCP (in the event such 2005 employee deferrals and employer
contributions are not transferred to and administered under this Plan) will
have his Compensation and Bonus Deferrals and RSU Deferrals under this Plan
suspended for the remainder of the Plan Year in which such distribution occurs.
This mid-year suspension provision will not apply with respect to an
Unforeseeable Emergency distribution made pursuant to 5.4 of the 2001 DCP. However,
an Employee who takes an Unforeseeable Emergency distribution under either the
2001 DCP or this Plan will be ineligible to participate in the Plan for
purposes of making Compensation and Bonus Deferrals and RSU Deferrals and
receiving a Matching Contribution for the Plan Year following the year in which
such distribution occurs.

 

(c)                                  Eligibility
on Initial Employment. If an Eligible Person is employed or elected to the
Board during the Plan Year and designated by the PAC to be a Participant for
such year, such Eligible Person may elect to participate in the Plan
during the Special Enrollment Period for the remainder of such Plan Year, by
completing all required forms under Section 4.1 and making a Compensation
Deferral and/or RSU Deferral election pursuant to Section 4.2 or Section 4.3.
Designation as a Participant for the Plan Year in which he is employed or
elected to the Board will not entitle the Eligible Person to continue as an
active Participant for any subsequent Plan Year.

 

9

 

(d)                                  Loss
of Eligibility Status. A Participant under this Plan who separates from
employment with the Employer, or who ceases to be a Director, will continue as
an inactive Participant under this Plan until the Participant has received
payment of all amounts payable to him under this Plan. In the event that an
Eligible Person ceases active participation in the Plan because the Eligible
Person is no longer described as a Participant pursuant to this Section 3.1,
or because he ceases making deferrals of Compensation, Bonuses or RSUs, the
Eligible Person will continue as an inactive Participant under this Plan until
he has received payment of all amounts payable to him under this Plan.

 

3.2                               Forfeitability
of Benefits. Except as provided in Section 6.1, a Participant will at
all times have a nonforfeitable right to amounts credited to his Account
pursuant to Section 4.5. As provided in Section 7.2, however, each
Participant will be only a general creditor of the Company and/or his Employer
with respect to the payment of any benefit under this Plan.

 

End or Article III

 

10

 

ARTICLE IV

DEFERRAL, COMPANY CONTRIBUTIONS, ACCOUNTING

AND INVESTMENT CREDITING RATES

 

4.1                               General
Rules Regarding Deferral Elections. An Eligible Person may become
a Participant in the Plan for the applicable Plan Year by electing during the
Open Enrollment Period to defer his Compensation, Bonus and/or RSUs pursuant to
the terms of this Section 4.1 on an Election Form. Such Election Form will
be submitted to the Plan Administrator by the date specified by the Plan
Administrator and will be effective with respect to:

 

(a)                                  Compensation and/or Bonus deferral
elections, with the first paycheck dated on or after the next following January 1
with respect to the June 2005 Open Enrollment Period or with the first
paycheck dated on or after the following January 1 with respect to all
subsequent Open Enrollment Periods; and

 

(b)                                 RSU deferral elections, with respect to
RSUs awarded on July 1, 2005 under the option exchange program under the
SIP for the June 2005 Open Enrollment Period or with respect to RSUs that
are awarded under the SIP after such date, either prior to or within thirty
(30) days after the grant date as required by section 409A of the Code.

 

In the case of an Eligible Person who is
employed or elected to the Board during the Plan Year, the Election Form will
be entered into within the Special Enrollment Period and submitted to the Plan
Administrator by the date specified by the Plan Administrator and the specified
deferral elections will only be effective with respect to Compensation, Bonus
and/or RSUs earned after the date such Election Form is received by the
Plan Administrator.

 

A Participant’s Election Form will only be
effective with respect to a single Plan Year and will be irrevocable for the
duration of such Plan Year. Deferral elections for each applicable Plan Year of
participation will be made during the Open Enrollment Period pursuant to a new
Election Form.

 

4.2                               Compensation
and Bonus Deferrals.  Four types of Compensation and Bonus Deferrals may be
made under the Plan:

 

(a)                                  Basic
Deferral. Each Eligible Person may elect to defer a stated dollar
amount, or designated full percentage, of Compensation to the Plan up to a
maximum percentage of seventy five percent (75%) (one hundred percent (100%)
for Directors) of the Eligible Person’s Compensation for the applicable Plan
Year until either (i) the Participant’s Termination of Employment or (ii) a
future year in which the Participant is still employed by the Employer (or
providing services as a member of the Board) and that is at least two (2) calendar
years after the end of the Plan Year in which the Compensation would have
otherwise been paid (i.e., as a
Scheduled In-Service Withdrawal subject to the provisions of Section 5.3).

 

The Employer will not make any Matching
Contributions with respect to any Basic Deferrals made to the Plan.

 

11

 

(b)                                  Bonus
Deferral. Each Eligible Person may elect to defer a stated dollar
amount, or designated full percentage, of his Bonus to the Plan up to a maximum
percentage of one hundred percent (100%) (ninety seven percent (97%) if a
Supplemental Deferral is elected pursuant to Section 4.2(c)) of the
Employee’s Bonus for the applicable Plan Year until either (i) the
Eligible Person’s Termination of Employment or (ii) a future year in which
the Eligible Person is still employed by the Employer (or providing services as
a member of the Board) and that is at least two (2) calendar years after
the end of the Plan Year in which the Bonus would have otherwise been paid (i.e., as a Scheduled In-Service Withdrawal
subject to the provisions of Section 5.3).

 

Bonus Deferrals generally will be made in the form of
cash; provided, however, that if the Company modifies the Annual Incentive Plan
to provide for the payment of awards in Stock, Bonus Deferrals may be made
in the form of Stock. Any Bonus Deferrals made in the form of Stock
will be converted to Stock Units, based on the number of shares so deferred,
credited to the Stock Unit Account and distributed to the Participant at the
time specified herein in an equivalent number of whole shares of Stock as
provided in Section 4.5(b).

 

The Employer will not make any Matching
Contributions with respect to any Bonus Deferrals made to the Plan.

 

(c)                                  Supplemental
Deferral. Each Eligible Person may elect to make Supplemental
Deferrals to the Plan payable upon Termination of Employment (i.e., Scheduled In-Service Withdrawals are
not available with respect to Supplemental Deferrals) in accordance with the
following provisions of this Section 4.2(c).

 

(i)                                     Statutory Limits. Each Eligible Person who is also a
participant in the 401(k) Plan may elect to automatically have three
percent (3%) of his Compensation deferred under the Plan when he reaches any of
the following statutory limitations under the 401(k) Plan:  (A) the limitation on Compensation under
section 401(a)(17) of the Code, as such limit is adjusted for cost of
living increases, (B) the limitation imposed on elective deferrals under section 402(g) of
the Code, as such limit is adjusted for cost of living increases,  (C) the limitations on contributions and
benefits under section 415 of the Code, or (D) the limitations on
contributions imposed by the 401(k) Plan administrator in order to satisfy the
limitations on contributions under sections 401(k) and 401(m) of the Code. The
ability to make Supplemental Deferrals under this Section 4.2(c)(i) will
not be impacted by the Participant’s eligibility to make “catch-up
contributions” under the 401(k) Plan. However, a Participant who makes a
Supplemental Deferral under this Section 4.2(c)(i) will not be
permitted to modify his 401(k) Plan deferral elections during the Plan Year in
which such Supplemental Deferral election is in effect.

 

The Employer will make Matching Contributions
with respect to Supplemental Deferrals made to the Plan as provided in Section 4.4.

 

(ii)                                  Bonus. Each Eligible Person who is also a participant
in the 401(k) Plan may elect to automatically have three percent (3%) of
his Bonus deferred under the Plan as a Supplemental Deferral whether or not the
Eligible

 

12

 

Person has reached the statutory
limitations under the 401(k) Plan described in Section 4.2(c)(i). This Supplemental
Deferral will be applied to that portion of the Eligible Person’s Bonus in
excess of that deferred as a Bonus Deferral under Section 4.2(b). For
example, if the Eligible Person elects to defer fifty percent (50%) of his
Bonus under Section 4.2(b) and also elects to make a Supplemental
Deferral under this Section 4.2(c), fifty percent (50%) of the Eligible
Person’s Bonus will be deferred under Section 4.2(b) and three
percent (3%) of the Eligible Person’s Bonus will be deferred under this Section 4.2(c).

 

The Employer will make Matching Contributions
with respect to Supplemental Deferrals made to the Plan as provided in Section 4.2.

 

(d)                                  Discretionary
Deferral. The PAC may authorize an Eligible Person to defer a stated
dollar amount, or designated full percentage, of Compensation to the Plan as a
Discretionary Deferral. The PAC, in its sole and absolute discretion, may limit
the amount or percentage of Compensation an Eligible Person may defer to
the Plan as a Discretionary Deferral and may prohibit Scheduled In-Service
Withdrawals with respect to such Discretionary Deferral. The Employer will not
make any Matching Contributions pursuant to Section 4.4(a) with
respect to any Discretionary Deferrals, but may elect to make a
Discretionary Contribution to the Plan with respect to such Discretionary
Deferrals in the form of a discretionary matching contribution as
described in Section 4.4(b).

 

4.3                               RSU
Deferrals. An Eligible Person may elect to defer a designated full
percentage, up to one hundred percent (100%) of his RSUs until either (a) the
Eligible Person’s Termination of Employment or (b) a future year while the
Eligible Person is still employed by the Employer and that is at least two (2) calendar
years after the end of the Plan Year in which the RSU is granted (i.e., as a Scheduled In-Service Withdrawal
subject to the provisions of 5.3) pursuant to an Election Form. A deferral
election made pursuant to this Section 4.3 will apply to the entire RSU
grant (i.e., a Participant may not
elect to make a separate election with respect to each portion of the RSU award
based on the award’s vesting schedule). Such RSU Deferrals will be converted to
Stock Units, based on the number of shares so deferred, credited to the Stock
Unit Account and distributed to the Participant at the time specified on the
Election Form in an equivalent number of whole shares of Stock as provided
in Section 4.5(b).

 

The
Employer will not make any Matching Contributions with respect to any RSU
Deferrals made to the Plan.

 

4.4                               Company
Contributions.

 

(a)                                  Matching
Contribution. The Employer will make a Matching Contribution to the Plan
each Plan Year on behalf of each Participant who makes a Supplemental Deferral
to the Plan for such Plan Year. Such Matching Contribution will equal one hundred
percent (100%) of the Participant’s Supplemental Deferrals for such Plan Year. Matching
Contributions and earnings and losses thereon will be distributed upon the
Participant’s Termination of Employment in the manner elected by the
Participant (or deemed elected by the Participant) upon his initial enrollment
in the Plan as provided in Section 5.1.

 

13

 

(b)                                  Discretionary
Contribution. The Employer may elect to make a Discretionary
Contribution to a Participant’s Account in such amount, and at such time, as
will be determined by the Compensation Committee. Any Discretionary
Contribution made by the Employer, plus earnings and losses thereon, will be
paid to the Participant upon his Termination of Employment with the Employer in
the manner elected by the Participant (or deemed elected by the Participant)
upon his initial enrollment in the Plan as provided in Section 5.1.

 

4.5                               Accounting
for Deferred Compensation.

 

(a)                                  Cash
Account. If a Participant has made an election to defer his Compensation
and/or Bonus and has made a request for amounts deferred to be deemed invested
pursuant to Section 4.5(a), the Company may, in its sole and absolute
discretion, establish and maintain a Cash Account for the Participant under
this Plan. Each Cash Account will be adjusted at least quarterly to reflect the
Basic Deferrals, Bonus Deferrals, Supplemental Deferrals, Discretionary
Deferrals, Matching Contributions and Discretionary Contributions credited
thereto, earnings or losses credited thereon, and any payment of such Basic
Deferrals, Bonus Deferrals, Supplemental Deferrals, Discretionary Deferrals,
Matching Contributions and Discretionary Contributions pursuant to Article V.
The amounts of Basic Deferrals, Bonus Deferrals, Supplemental Deferrals,
Discretionary Deferrals and Matching Contributions will be credited to the
Participant’s Cash Account within five (5) business days of the date on
which such Compensation and/or Bonus would have been paid to the Participant
had the Participant not elected to defer such amount pursuant to the terms and
provisions of the Plan. Any Discretionary Contributions will be credited to
each Participant’s Cash Account at such times as determined by the Compensation
Committee. In the sole and absolute discretion of the Plan Administrator, more
than one Cash Account may be established for each Participant to
facilitate record-keeping convenience and accuracy. Each such Cash Account will
be credited and adjusted as provided in this Plan.

 

(b)                                  Stock
Unit Account. If a Participant has made an election to defer his
Compensation and/or Bonus and has made a request for such deferrals to be
deemed invested in Stock Units pursuant to Section 4.5(b), the Plan
Administrator may, in its sole and absolute discretion, establish and maintain
a Stock Unit Account and credit the Participant’s Stock Unit Account with a
number of Stock Units determined by dividing an amount equal to the Basic
Deferrals, Bonus Deferrals, Supplemental Deferrals and associated Matching
Contributions, and Discretionary Deferrals made as of such date by the Fair
Market Value of a share of Stock on the date such Compensation and/or Bonus
otherwise would have been payable. Such Stock Units will be credited to the
Participant’s Stock Unit Account as soon as administratively practicable after
the determination of the number of Stock Units is made pursuant to the
preceding sentence.

 

If the Participant is entitled to a
Discretionary Contribution and has elected to have amounts credited to his
Account to be deemed invested in Stock Units pursuant to Section 4.6(b),
the Plan Administrator may, in its sole discretion, establish and maintain a
Stock Unit Account and credit the Participant’s Stock Unit Account with a
number of Stock Units determined by dividing an amount equal to the
Discretionary Contribution made as of such date by the Fair Market

 

14

 

Value of a share of Stock on the date such
Discretionary Contribution would have otherwise been made. Such Stock Units
will be credited to the Participant’s Stock Unit Account as soon as
administratively practicable after the determination of the number of Stock
Units has been made pursuant to the preceding sentence.

 

Bonus Deferrals made in Stock and RSU Deferrals
will be credited to the Stock Unit Account as provided in Section 4.2(b).

 

In the sole and absolute discretion of the Plan
Administrator, more than one Stock Unit Account may be established for
each Participant to facilitate record-keeping convenience and accuracy.

 

(i)                                     The Stock Units credited to a Participant’s
Stock Unit Account will be used solely as a device for determining the number
of shares of Stock eventually to be distributed to the Participant in
accordance with this Plan. The Stock Units will not be treated as property of
the Participant or as a trust fund of any kind. No Participant will be entitled
to any voting or other stockholder rights with respect to Stock Units credited
under this Plan.

 

(ii)                                  If the outstanding shares of Stock are
increased, decreased, or exchanged for a different number or kind of shares or
other securities, or if additional shares or new or different shares or other
securities are distributed with respect to such shares of Stock or other
securities, through merger, consolidation, spin-off, sale of all or
substantially all the assets of the Company, reorganization, recapitalization,
reclassification, stock dividend, stock split, reverse stock split or other
distribution with respect to such shares of Stock or other securities, an
appropriate and proportionate adjustment will be made by the Compensation
Committee in the number and kind of Stock Units credited to a Participant’s
Stock Unit Account.

 

(c)                                  Accounts
Held in Trust. Amounts credited to Participants’ Accounts may be
secured by one or more trusts, as provided in Section 7.1, but will be
subject to the claims of the general creditors of each such Participant’s
Employer. Although the principal of such trust and any earnings or losses
thereon will be separate and apart from other funds of the Employer and
will be used for the purposes set forth therein, neither the Participants nor
their Beneficiaries will have any preferred claim on, or any beneficial
ownership in, any assets of the trust prior to the time such assets are paid to
the Participant or Beneficiaries as benefits and all rights created under this
Plan will be unsecured contractual rights of Plan Participants and
Beneficiaries against the Employer. Any assets held in the trust with respect
to a Participant will be subject to the claims of the general creditors of that
Participant’s Employer under federal and state law in the event of insolvency. The
assets of any trust established pursuant to this Plan will never inure to the
benefit of the Employer and the same will be held for the exclusive purpose of
providing benefits to that Employer’s Participants and their beneficiaries.

 

4.6                               Investment
Crediting Rates. At the time of making a deferral election described in Section 4.1,
the Participant will request on an Election Form the type of investment

 

15

 

crediting rate option with which the
Participant would like the Company, in its sole and absolute discretion, to
credit the Participant; namely, one of several investment crediting rate
options payable in cash or an investment crediting rate option based on the
performance of the price of the Company’s Stock and payable in the Company’s
Stock. Such investment crediting rate election will apply to all deferrals and
contributions under the Plan, except for Bonus Deferrals made in Stock and RSU
Deferrals which will automatically be credited to the Stock Unit Account as
provided in Section 4.2(b) and Section 4.3.

 

(a)                                  Cash
Investment Crediting Rate Options. A Participant may request on an
Election Form the type of investment in which the Participant would like
Compensation and Bonus Deferrals to be deemed invested for purposes of
determining the amount of earnings to be credited or losses to be debited to
his Cash Account. The Participant will specify his preference from among the
following possible investment crediting rate options:

 

(i)                                     An annual rate of interest equal to one
percent (1%) below the prime rate of interest as quoted by Bloomberg,
compounded daily; or

 

(ii)                                  One or more benchmark mutual funds.

 

A Participant may change, on a daily basis,
the investment crediting rate preference under this Section 4.6(a) by
filing an election in such manner as will be determined by the PAC. Notwithstanding
any request made by a Participant, the Company, in its sole and absolute
discretion, will determine the investment rate with which to credit amounts
deferred by Participants under this Plan, provided, however, that if the
Company chooses an investment crediting rate other than the investment
crediting rate requested by the Participant, such investment crediting rate
cannot be less than (i) above.

 

(b)                                  Stock
Units. A Participant may request on an Election Form to have all
or a portion of his Compensation and Bonus Deferrals to be deemed invested in
Stock Units. Any request to have Compensation and Bonus Deferrals to be deemed
invested in Stock Units is irrevocable and such amounts will be distributed in
an equivalent whole number of shares of Stock pursuant to the provisions of Article V.
Any fractional share interests will be paid in cash with the last distribution.

 

(c)                                  Deemed
Election. In his request(s) pursuant to this Section 4.6, the
Participant may request that all or any portion of his Account (in whole
percentage increments) be deemed invested in one or more of the investment
crediting rate preferences provided under the Plan as communicated from time to
time by the PAC. Although a Participant may express an investment
crediting rate preference, the Company will not be bound by such request. If a
Participant fails to set forth his investment crediting rate preference under
this Section 4.6, he will be deemed to have elected an annual rate of
interest equal to one percent (1%) below the prime rate of interest as quoted
by Bloomberg, compounded daily. The PAC will select from time to time, in its
sole and absolute discretion, the possible investment crediting rate options to
be offered under the Plan.

 

16

 

(d)                                  Employer
Contributions. Matching Contributions to the Plan made by the Employer and
allocated to a Participant’s Account pursuant to Section 4.3 will be
credited with the same investment crediting rate as the Participant’s
associated Supplemental Deferrals for the relevant Plan Year. Discretionary
Contributions, if any, made by the Employer and allocated to a Participant’s
Account pursuant to Section 4.4 will be credited with the investment
crediting rate specified (or deemed specified) by such Participant on his Election
Form for the relevant Plan Year with respect to the Participant’s Basic
Deferrals and Bonus Deferrals.

 

A Participant will retain the right to change
the investment crediting rate applicable to Matching Contributions and
Discretionary Contributions as provided in this Section 4.6.

 

(e)                                  Transferred
Accounts. The Company retains the right in its sole and absolute discretion
to transfer 2005 employee deferrals and employer contributions under the 2001
DCP from the 2001 DCP to this Plan. In the event that the Company determines
that a transfer of a Participant’s 2005 employee deferrals and employer
contributions under the 2001 DCP to this Plan is appropriate, a Participant
will be permitted to express an investment crediting rate preference with
respect to such transferred amounts. Irrespective of such transfer, such
Participant’s termination distribution election with respect to the Plan and
the 2001 DCP will be governed by Section 5.1.

 

End of Article IV

 

17

 

ARTICLE V

DISTRIBUTION OF BENEFITS

 

5.1                               Termination
Distribution Election. Subject to Section 5.1(d) (regarding the 2001 DCP), at the time
an Eligible Person first becomes a Participant in the Plan (i.e., elects to make Compensation and
Bonus Deferrals and/or RSU Deferrals or is awarded a Discretionary Contribution
under the Plan), such Participant must elect the time and manner in which his
Account balance will be paid upon his Termination of Employment, subject to the
restrictions on the timing of such distribution to Key Employees under Section 5.2.
A Participant’s termination distribution election, both as to the time of
distribution and the manner of distribution, will be irrevocable and will apply
to all deferrals and contributions made with respect to that Participant under
the Plan. Further, as provided in Section 5.3, a Participant’s termination
distribution election will supercede any Scheduled In-Service Withdrawal
election made by the Participant pursuant to Article IV.

 

(a)                                  Time
of Distribution

 

A Participant may elect to receive a
distribution of his Plan Account upon his Termination of Employment at any of
the following times:

 

(i)                                     Subject to the six
(6) month delay applicable to Key Employees described in Section 5.2,
as soon as practicable after the Participant’s Termination of Employment;

 

(ii)                                  In the first January following
the Participant’s Termination of Employment; or

 

(iii)                               In the second January following
the Participant’s Termination of Employment.

 

A Participant who dies while an Employee or a Director, as applicable,
will be deemed to have incurred a Termination of Employment on the date of his
death.

 

(b)                                  Manner
of Distribution

 

The manner in
which the Participant’s Account balance will be paid depends on the amount of
the Participant’s Account balance at the time of his Termination of Employment.

 

(i)                                     Account balances
of more than one hundred thousand dollars ($100,000) may be paid in the form of
a lump sum, monthly or annual installments over a period of not less than one (1) nor
more than fifteen (15) years.

 

(ii)                                  Account balances of
more than ten thousand dollars ($10,000) but less than one hundred thousand
dollars ($100,000) may be paid in the form of a lump sum or annual
installments over a period of not less than one (1) nor more than fifteen
(15) years.

 

18

 

(iii)                               Account balances of less
than ten thousand dollars ($10,000) will automatically be paid in the form of
a lump sum.

 

Such lump sum or installments will be made in cash or in Stock, or in a
combination thereof, depending on the Participant’s investment crediting rates
as provided in Section 4.6. To the extent that installments will be made
solely in cash, such installments will be made on a monthly or annual basis, as
determined above. Installments of Stock or installments of cash and Stock will
be made on an annual basis, irrespective of the amount of the Participant’s
Account. If the Participant’s Account is paid in installments, such Account
will be revalued during the term of such installments based on procedures
established by the Plan Administrator.

 

(c)                                  Failure
to Elect Distribution

 

In the event that a Participant fails to
elect the manner in which his Account balance will be paid upon his Termination
of Employment, such Account balance will be paid in the form of a lump sum
as soon as practicable following the Participant’s Termination of Employment,
subject to the six (6) month delay applicable to Key Employees described
in Section 5.2.

 

(d)                                  Special
Rule for Participants in the 2001 DCP

 

Special distribution rules apply to a Participant who participated
in the 2001 DCP:

 

(i)                                     Plan Distribution Election Controls. If a
Participant who participated in the 2001 DCP enrolls in this Plan during the June 2005
Open Enrollment Period, such Participant’s 2005 employee deferrals and employer
contributions under the 2001 DCP will be governed by the termination
distribution election made by the Participant under Section 5.1 of this
Plan.

 

(ii)                                  2001 DCP Election Controls. If a Participant
who participated in the 2001 DCP does not enroll in this Plan during the June 2005
Open Enrollment Period, then such Participant’s 2005 employee deferrals and
employer contributions under the 2001 DCP as well as any Employee deferrals and
Employer contributions made with respect to such Participant under this Plan
will be governed by the Participant’s termination distribution election under
the 2001 DCP; provided, however, such Participant’s 2005 employee deferrals and
employer contributions under the 2001 DCP and Employee deferrals and Employer
contributions made with respect to such Participant under this Plan will be
subject to the six (6) month delay applicable to Key Employees described
in Section 5.2.

 

(e)                                  Taxation
of Distributions

 

All distributions from the Plan will be taxable as ordinary income when
received and subject to appropriate withholding of income taxes. In the case of
distributions in Stock, the appropriate number of shares of Stock may be
sold to 

 

19

 

satisfy such withholding obligations pursuant to administrative
procedures adopted by the Plan Administrator.

 

5.2                               Termination
Distributions to Key Employees. Distributions under this Plan that are payable to a Key Employee on
account of a Termination of Employment will be delayed for a period of six (6) months
following such Participant’s Termination of Employment. This six (6) month
restriction will not apply, or will cease to apply, with respect to a
distribution to a Participant’s Beneficiary by reason of the death of the
Participant.

 

5.3                               Scheduled
In-Service Withdrawals. A Participant who elects a Scheduled In-Service Withdrawal pursuant to Section 4.2
or Section 4.3 may subsequently elect to delay such distribution for
a period of at least five (5) additional calendar years; provided, that
such election is made at least (12) twelve months prior to the date that such
distribution would otherwise be made. Further, in the event that a Participant
elects a Scheduled In-Service Withdrawal and incurs a Termination of Employment
prior to the Scheduled Withdrawal Date, the Participant’s Scheduled In-Service
Withdrawal election and Compensation and Bonus Deferral and/or RSU Deferral
election under Section 4.2 or Section 4.3, respectively, will be
cancelled and the Participant’s entire Account balance will be paid according
to the Participant’s termination distribution election as provided in Section 5.1.

 

5.4                               Unforeseeable
Emergency. Upon
application by the Participant, the Plan Administrator, in its sole and
absolute discretion, may direct payment of all or a portion of the
Participant’s Account balance prior to his Termination of Employment and any
Scheduled Withdrawal Date in the event of an Unforeseeable Emergency. Any such
application will set forth the circumstances constituting such Unforeseeable
Emergency. The Plan Administrator will determine whether to grant an
application for a distribution on account of an Unforeseeable Emergency in
accordance with guidance issued pursuant to Section 409A of the Code.

 

A Participant who takes an Unforeseeable Emergency distribution
pursuant to this Section 5.4 (including amounts attributable to 2005
employee deferrals and employer contributions made under the 2001 DCP which are
transferred to and administered under this Plan) or pursuant to Section 6.4
of the 2001 DCP (in the event that such 2005 employee deferrals and employer
matching contributions are not transferred to and administered under the Plan)
will have his Compensation and Bonus Deferrals and RSU Deferrals under this
Plan suspended for the remainder of the Plan Year in which such Unforeseeable
Emergency distribution occurs. In addition, such Participant will be ineligible
to participate in the Plan for purposes of making Compensation and Bonus
Deferrals and RSU Deferrals and receiving a Matching Contribution for the Plan
Year following the year in which such distribution occurs.

 

5.5                               Death
of a Participant. If
a Participant dies while employed by the Employer, the Participant’s Account
balance will be paid to the Participant’s Beneficiary in the manner elected (or
deemed elected) by the Participant pursuant to Section 5.1; provided, that
the six (6) month restriction on distributions to Key Employees under Section 5.2
will not apply.

 

In the event a terminated Participant dies while receiving installment
payments, the remaining installments will be paid to the Participant’s
Beneficiary as such payments become due in accordance with Section 5.1.

 

20

 

In the event a terminated Participant dies before receiving his lump
sum payment or before he begins receiving installment payments, the lump sum
payment or installment payments will be paid to the Participant’s Beneficiary
as such payments become due in accordance with Section 5.1; provided, that
the six (6) month restriction on distributions to Key Employees under Section 5.2
will not apply.

 

5.6                               Withholding.
Any taxes or other
legally required withholdings from Compensation and Bonus Deferrals, RSU Deferrals,
termination distributions, Scheduled In-Service Withdrawal payments and
Unforeseeable Emergency distributions to Participants or Beneficiaries under
the Plan will be deducted and withheld by the Employer, benefit provider or
funding agent as required pursuant to applicable law. To the extent amounts are
payable under this Plan in Stock, the appropriate number of shares of Stock may be
withheld to satisfy such withholding obligation. A Participant or Beneficiary
will be provided with a tax withholding election form for purposes of
federal and state tax withholding, if applicable.

 

5.7                               Impact
of Reemployment on Benefits. If a Participant incurs a Termination of Employment and begins receiving,
or is scheduled to receive, installment payments from the Plan and such
Participant is reemployed by the Employer, then such Participant’s installment
payments will continue or commence as scheduled during the period of his
reemployment.

 

End of Article V

 

21

 

ARTICLE VI

PAYMENT LIMITATIONS

 

6.1                               Spousal
Claims.

 

(a)                                  In
the event that an Alternate Payee is entitled to all or a portion of a
Participant’s Accounts pursuant to the terms of a DRO, such Alternate Payee
will have the following distribution rights with respect to such Participant’s
Account to the extent set forth pursuant to the terms of the DRO:

 

(i)                                     payment of
benefits in a lump sum, in cash or Stock, based on the Participant’s investment
crediting rates under the Plan as provided in Section 4.6 and the terms of
the DRO, as soon as practicable following the acceptance of the DRO by the Plan
Administrator;

 

(ii)                                  payment of benefits
in a lump sum in cash or Stock, based on the Participant’s investment crediting
rates under the Plan as provided in Section 4.6 and the terms of the DRO,
in the first January following, or in the second January following,
but not later than the second January following, the acceptance of the DRO
by the Plan Administrator;

 

(iii)                               payment of benefits in
substantially equal annual or monthly installments, in cash and/or Stock, based
on the Participant’s investment crediting rates under the Plan as provided in Section 4.6
and the terms of the DRO, over a period of not less than one (1) nor more
than fifteen (15) years from the date the DRO is accepted by the Plan
Administrator, but only if the Alternate Payee has an Account balance in excess
of one hundred thousand dollars ($100,000);

 

(iv)                              payment of benefits in
substantially equal annual or monthly installments, in cash and/or Stock, based
on the Participant’s investment crediting rates under the Plan as provided in Section 4.6
and the terms of the DRO, over a period of not less than one (1) nor more
than fifteen (15) years beginning the first January following, or the
second January following, the date the DRO is accepted by the Plan
Administrator, but only if the Alternate Payee has an Account balance in excess
of one hundred thousand dollars ($100,000);

 

(v)                                 payment of benefits in
substantially equal annual installments, in cash and/or Stock, based on the
Participant’s investment crediting rates under the Plan as provided in Section 4.6
and the terms of the DRO, over a period of not less than one (1) nor more
than fifteen (15) years from the date the DRO is accepted by the Plan Administrator,
but only if the Alternate Payee has an Account balance in excess of ten
thousand dollars ($10,000) and less than one hundred thousand dollars
($100,000); and

 

(vi)                              payment of benefits in
substantially equal annual installments, in cash and/or Stock, based on the
Participant’s investment crediting rates under the Plan as provided in Section 4.6
and the terms of the DRO, over a 

 

22

 

period of not less than one (1) nor more
than fifteen (15) years beginning the first January following, or the
second January following, the date the DRO is accepted by the Plan
Administrator, but only if the Alternate Payee has an Account balance in excess
of ten thousand dollars ($10,000) and less than one hundred thousand dollars
($100,000).

 

To the extent that installments will be made solely in cash, such
installments will be made on a monthly or annual basis, as determined above. Installments
of Stock or installments of cash and Stock will be made on an annual basis, irrespective
of the amount of the Alternate Payee’s Account.

 

An Alternate Payee with respect to a DRO that provides for any of the
distributions described in subsections (ii), (iii), (iv), (v) or (vi) above,
must complete and deliver to the Plan Administrator all required forms within
thirty (30) days from the date the Alternate Payee is notified by the Plan
Administrator that the DRO has been accepted. Any Alternate Payee who does not
complete and deliver to the Plan Administrator all required forms and/or whose
DRO does not provide for any of the distributions described in subsections
(ii), (iii), (iv), (v) or (vi) above will receive his benefits in a
lump sum according to subsection (i) above. Unvested RSUs may not
be transferred pursuant to a DRO.

 

(b)                                 Any
taxes or other legally required withholdings from payments to such Alternate
Payee will be deducted and withheld by the Employer, benefit provider or
funding agent. To the extent amounts are payable under this Plan in Stock, the
appropriate number of shares of Stock may be sold to satisfy such
withholding obligation. The Alternate Payee will be provided with a tax
withholding election form for purposes of federal and state tax
withholding, if applicable.

 

(c)                                  The
Plan Administrator will have sole and absolute discretion to determine whether
a judgment, decree or order is a DRO, to determine whether a DRO will be
accepted for purposes of this Section 6.1 and to make interpretations
under this Section 6.1, including determining who is to receive benefits,
all calculations of benefits and determinations of the form of such
benefits, and the amount of taxes to be withheld. The decisions of the Plan
Administrator will be binding on all parties with an interest.

 

(d)                                 Any
benefits payable to an Alternate Payee pursuant to the terms of a DRO will be
subject to all provisions and restrictions of the Plan and any dispute
regarding such benefits will be resolved pursuant to the Plan claims procedure
in Article VIII.

 

6.2                               Legal
Disability. If a
person entitled to any payment under this Plan is, in the sole judgment of the
Plan Administrator, under a legal disability, or otherwise is unable to apply
such payment to his own interest and advantage, the Plan Administrator, in the
exercise of its discretion, may direct the Employer or payor of the
benefit to make any such payment in any one or more of the following ways:

 

(a)                                  Directly
to such person;

 

(b)                                 To
his legal guardian or conservator; or

 

23

 

(c)                                  To
his spouse or to any person charged with the duty of his support, to be
expended for his benefit and/or that of his dependents.

 

The decision of the Plan Administrator will in each case be final and
binding upon all persons in interest, unless the Plan Administrator reverses its
decision due to changed circumstances.

 

6.3                               Assignment.
Except as provided
in Section 6.1, no Participant or Beneficiary will have any right to
assign, pledge, transfer, convey, hypothecate, anticipate or in any way create
a lien on any amounts payable under this Plan. No amounts payable under this
Plan will be subject to assignment or transfer or otherwise be alienable,
either by voluntary or involuntary act, or by operation of law, or subject to
attachment, execution, garnishment, sequestration or other seizure under any
legal, equitable or other process, or be liable in any way for the debts or
defaults of Participants and their Beneficiaries.

 

End of Article VI

 

24

 

ARTICLE VII

FUNDING

 

7.1                               Funding.
Benefits under this
Plan will be funded solely by the Employer. Benefits under this Plan will
constitute an unfunded general obligation of the Employer, but the Employer may create
reserves, funds and/or provide for amounts to be held in trust to fund such benefits
on its behalf. Payment of benefits may be made by the Employer, any trust
established by the Employer or through a service or benefit provider to the
Employer or such trust.

 

7.2                               Creditor
Status. Participants
and their Beneficiaries will be general unsecured creditors of their respective
Employer with respect to the payment of any benefit under this Plan, unless
such benefits are provided under a contract of insurance or an annuity contract
that has been delivered to Participants, in which case Participants and their
Beneficiaries will look to the insurance carrier or annuity provider for
payment, and not to the Employer. The Employer’s obligation for such benefit
will be discharged by the purchase and delivery of such annuity or insurance
contract.

 

End of Article VII

 

25

 

ARTICLE VIII

ADMINISTRATION

 

8.1                               The
PAC. The overall
administration of the Plan will be the responsibility of the PAC.

 

8.2                               Powers
of PAC. The PAC will
have sole and absolute discretion regarding the exercise of its powers and
duties under this Plan. In order to effectuate the purposes of the Plan, the
PAC will have the following powers and duties:

 

(a)                                  To
appoint the Plan Administrator;

 

(b)                                 To
review and render decisions respecting a denial of a claim for benefits under
the Plan;

 

(c)                                  To
construe the Plan and to make equitable adjustments for any mistakes or errors
made in the administration of the Plan; and

 

(d)                                 To
determine and resolve, in its sole and absolute discretion, all questions
relating to the administration of the Plan and the trust established to secure
the assets of the Plan (i) when differences of opinion arise between the
Company, an Affiliate, the Plan Administrator, the Trustee, a Participant, or
any of them, and (ii)whenever it is deemed advisable to determine such
questions in order to promote the uniform and nondiscriminatory
administration of the Plan for the greatest benefit of all parties concerned.

 

The foregoing list of express powers is not intended to be either
complete or conclusive, and the PAC will, in addition, have such powers as it may reasonably
determine to be necessary or appropriate in the performance of its powers and
duties under the Plan.

 

8.3                               Appointment
of Plan Administrator. The PAC will appoint the Plan Administrator, who will have the
responsibility and duty to administer the Plan on a daily basis. The PAC may remove
the Plan Administrator with or without cause at any time. The Plan
Administrator may resign upon written notice to the PAC.

 

8.4                               Duties
of Plan Administrator. The Plan Administrator will have sole and absolute discretion regarding
the exercise of its powers and duties under this Plan. The Plan Administrator
will have the following powers and duties:

 

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

 

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

 

(c)                                  To
determine all questions with regard to rights of Employees, Participants, and
Beneficiaries under the Plan including, but not limited to, questions involving
eligibility of an Employee to participate in the Plan and the value of a
Participant’s Accounts;

 

26

 

(d)                                 To
enforce the terms of the Plan and any rules and regulations adopted by the
PAC;

 

(e)                                  To
review and render decisions respecting a claim for a benefit under the Plan;

 

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

 

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

 

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

 

(i)                                     To
receive from the Employer and from Participants such information as is
necessary for the proper administration of the Plan;

 

(j)                                     To
establish and maintain, or cause to be maintained, the individual Accounts
described in Section 4.4;

 

(k)                                  To
create and maintain such records and forms as are required for the efficient
administration of the Plan;

 

(l)                                     To
make all determinations and computations concerning the benefits, credits and
debits to which any Participant, or other Beneficiary, is entitled under the
Plan;

 

(m)                               To
give the Trustee of the trust established to serve as a source of funds under
the Plan specific directions in writing with respect to:

 

(i)                                     making
distribution payments, giving the names of the payees, specifying the amounts
to be paid and the time or times when payments will be made; and

 

(ii)                                  making any other
payments which the Trustee is not by the terms of the trust agreement
authorized to make without a direction in writing by the Plan Administrator;

 

(n)                                 To
comply with all applicable lawful reporting and disclosure requirements of the
Act;

 

(o)                                 To
comply (or transfer responsibility for compliance to the Trustee) with all
applicable federal income tax withholding requirements for benefit
distributions; and

 

(p)                                 To
construe the Plan, in its sole and absolute discretion, and make equitable
adjustments for any errors made in the administration of the Plan.

 

The foregoing list of express duties is not intended to be either
complete or conclusive, and the Plan Administrator will, in addition, exercise
such other powers and perform 

 

27

 

such other duties as it may deem necessary, desirable, advisable
or proper for the supervision and administration of the Plan.

 

8.5                               Indemnification
of PAC and Plan Administrator. To the extent not covered by insurance, or if there is a failure to
provide full insurance coverage for any reason, and to the extent permissible
under corporate by-laws and other applicable laws and regulations, the Employer
agrees to hold harmless and indemnify the PAC and Plan Administrator against
any and all claims and causes of action by or on behalf of any and all parties
whomsoever, and all losses therefrom, including, without limitation, costs of
defense and reasonable attorneys’ fees, based upon or arising out of any act or
omission relating to or in connection with the Plan other than losses resulting
from the PAC’s, or any such person’s commission of fraud or willful misconduct.

 

8.6                               Claims
for Benefits.

 

(a)                                  Initial
Claim. In the event
that an Employee, Eligible Person, Participant or his Beneficiary claims to be
eligible for benefits, or claims any rights under this Plan, such claimant must
complete and submit such claim forms and supporting documentation as will be
required by the Plan Administrator, in its sole and absolute discretion. Likewise,
any Participant or Beneficiary who feels unfairly treated as a result of the
administration of the Plan, must file a written claim, setting forth the basis
of the claim, with the Plan Administrator. In connection with the determination
of a claim, or in connection with review of a denied claim, the claimant may examine
this Plan, and any other pertinent documents generally available to
Participants that are specifically related to the claim.

 

A written notice of the disposition of any such claim will be furnished
to the claimant within ninety (90) days after the claim is filed with the Plan
Administrator. Such notice will refer, if appropriate, to pertinent provisions
of this Plan, will set forth in writing the reasons for denial of the claim if
a claim is denied (including references to any pertinent provisions of this
Plan) and, where appropriate, will describe any additional material or
information necessary for the claimant to perfect the claim and an explanation
of why such material or information is necessary. If the claim is denied, in
whole or in part, the claimant will also be notified of the Plan’s claim review
procedure and the time limits applicable to such procedure, including the
claimant’s right to arbitration following an adverse benefit determination on
review as provided below. All benefits provided in this Plan as a result of the
disposition of a claim will be paid as soon as practicable following receipt of
proof of entitlement, if requested.

 

(b)                                  Request
for Review. Within
ninety (90) days after receiving written notice of the Plan Administrator’s
disposition of the claim, the claimant may file with the PAC a written
request for review of his claim. In connection with the request for review, the
claimant will be entitled to be represented by counsel and will be given, upon
request and free of charge, reasonable access to all pertinent documents for
the preparation of his claim. If the claimant does not file a written request
for review within ninety (90) days after receiving written notice of the Plan
Administrator’s disposition of the claim, the claimant will be deemed to have
accepted the Plan Administrator’s written disposition, unless the claimant was
physically or mentally incapacitated so as to be unable to request review
within the ninety (90) day period.

 

28

 

(c)                                  Decision
on Review. After
receipt by the PAC of a written application for review of his claim, the PAC
will review the claim taking into account all comments, documents, records and
other information submitted by the claimant regarding the claim without regard
to whether such information was considered in the initial benefit determination.
The PAC will notify the claimant of its decision by delivery or by certified or
registered mail to his last known address. A decision on review of the claim
will be made by the PAC at its next meeting following receipt of the written
request for review. If no meeting of the PAC is scheduled within forty-five
(45) days of receipt of the written request for review, then the PAC will hold
a special meeting to review such written request for review within such
forty-five (45) day period. If special circumstances require an extension of
the forty-five (45) day period, the PAC will so notify the claimant and a
decision will be rendered within ninety (90) days of receipt of the request for
review. In any event, if a claim is not determined by the PAC within ninety
(90) days of receipt of written submission for review, it will be deemed to be
denied.

 

The decision of the PAC will be provided to the claimant as soon as
possible but no later than five (5) days after the benefit determination
is made. The decision will be in writing and will include the specific reasons
for the decision presented in a manner calculated to be understood by the
claimant and will contain references to all relevant Plan provisions on which
the decision was based. Such decision will also advise the claimant that he may receive
upon request, and free of charge, reasonable access to and copies of all
documents, records and other information relevant to his claim and will inform the
claimant of his right to arbitration in the case of an adverse decision
regarding his appeal. The decision of the PAC will be final and conclusive.

 

8.7                               Arbitration.
In the event the
claims review procedure described in Section 8.6 of the Plan does not
result in an outcome thought by the claimant to be in accordance with the Plan
document, he may appeal to a third party neutral arbitrator. The claimant
must appeal to an arbitrator within sixty (60) days after receiving the PAC’s
denial or deemed denial of his request for review and before bringing suit in
court.

 

The arbitrator will be mutually selected by the Participant and the PAC
from a list of arbitrators provided by the American Arbitration Association (“AAA”).
If the parties are unable to agree on the selection of an arbitrator within ten
(10) days of receiving the list from the AAA, the AAA will appoint an
arbitrator. The arbitrator’s review will be limited to interpretation of the
Plan document in the context of the particular facts involved. The claimant, the
PAC and the Employer agree to accept the award of the arbitrator as binding,
and all exercises of power by the arbitrator hereunder will be final,
conclusive and binding on all interested parties, unless found by a court of
competent jurisdiction, in a final judgment that is no longer subject to review
or appeal, to be arbitrary and capricious. The costs of arbitration will be
paid by the Employer; the costs of legal representation for the claimant or
witness costs for the claimant will be borne by the claimant; provided, that,
as part of his award, the Arbitrator may require the Employer to
reimburse the claimant for all or a portion of such amounts.

 

The arbitrator will have no power to add to, subtract from, or modify
any of the terms of the Plan, or to change or add to any benefits provided by
the Plan, or to waive or fail to apply any requirements of eligibility for a
benefit under the Plan. Nonetheless, the arbitrator will have absolute
discretion in the exercise of its powers in this Plan. 

 

29

 

Arbitration decisions will not establish binding precedent with respect
to the administration or operation of the Plan.

 

8.8                               Receipt
and Release of Necessary Information. In implementing the terms of this Plan, the PAC and
Plan Administrator, as applicable, may, without the consent of or notice to any
person, release to or obtain from any other insuring entity or other
organization or person any information, with respect to any person, which the
PAC or Plan Administrator deems to be necessary for such purposes. Any
Participant or Beneficiary claiming benefits under this Plan will furnish to
the PAC or Plan Administrator, as applicable, such information as may be
necessary to determine eligibility for and amount of benefit, as a condition of
claiming and receiving such benefit.

 

8.9                               Overpayment
and Underpayment of Benefits. The Plan Administrator may adopt, in its sole and absolute
discretion, whatever rules, procedures and accounting practices are appropriate
in providing for the collection of any overpayment of benefits. If a
Participant or Beneficiary receives an underpayment of benefits, the Plan
Administrator will direct that payment be made as soon as practicable to make
up for the underpayment. If an overpayment is made to a Participant or
Beneficiary, for whatever reason, the Plan Administrator may, in its sole and
absolute discretion, withhold payment of any further benefits under the Plan
until the overpayment has been collected or may require repayment of benefits
paid under this Plan without regard to further benefits to which the
Participant or Beneficiary may be entitled.

 

End of Article VIII

 

30

 

ARTICLE IX

OTHER BENEFIT PLANS OF THE COMPANY

 

9.1                               Other
Plans. Nothing
contained in this Plan will prevent a Participant prior to his death, or a
Participant’s spouse or other Beneficiary after such Participant’s death, from
receiving, in addition to any payments provided for under this Plan, any
payments provided for under any other plan or benefit program of the Employer,
or which would otherwise be payable or distributable to him, his surviving
spouse or Beneficiary under any plan or policy of the Employer or otherwise. Nothing
in this Plan will be construed as preventing the Company or any of its
Affiliates from establishing any other or different plans providing for current
or deferred compensation for employees and/or Directors. Unless otherwise
specifically provided in any plan of the Company intended to “qualify” under section 401
of the Code, Compensation and Bonus Deferrals made under this Plan will
constitute earnings or compensation for purposes of determining contributions
or benefits under such qualified plan.

 

End of Article IX

 

31

 

ARTICLE X

AMENDMENT AND TERMINATION OF THE PLAN

 

10.1                        Continuation.
The Company intends
to continue this Plan indefinitely, but nevertheless assumes no contractual
obligation beyond the promise to pay the benefits described in this Plan.

 

10.2                        Amendment
of Plan. The
Company, through an action of the Compensation Committee, reserves the right in
its sole and absolute discretion to amend this Plan in any respect at any time.

 

10.3                        Termination
of Plan. The
Company, through an action of the Compensation Committee, may terminate or
suspend this Plan in whole or in part at any time, provided that no such
termination or suspension will deprive a Participant, or person claiming
benefits under this Plan through a Participant, of any amount credited to his
Accounts under this Plan up to the date of suspension or termination, except as
required by applicable law and pursuant to the valuation of such Accounts
pursuant to Section 4.6. Notwithstanding any provision of this Plan to the
contrary, upon the complete termination of the Plan, the Compensation
Committee, in its sole and absolute discretion, may direct that the Plan
Administrator treat each Participant as having incurred a Termination of
Employment and to commence the distribution of each such Participant’s Account
to him or his Beneficiary, as applicable, in the form elected (or deemed
elected) by such Participant pursuant to Section 5.1 (or in the form required
by Section 409A of the Code) to the extent that the commencement of such distribution
will not violate section 409A of the Code.

 

10.4                        Termination
of Affiliate’s Participation. An Affiliate may terminate its participation in the Plan at any time
by an action of its governing body and providing written notice to the Company.
Likewise, the Company may terminate an Affiliate’s participation in the
Plan at any time by an action of the Compensation Committee and providing
written notice to the Affiliate. The effective date of any such termination
will be the later of the date specified in the notice of the termination of
participation or the date on which the PAC can administratively implement such
termination. In the event that an Affiliate’s participation in the Plan is
terminated, each Participant employed by such Affiliate will continue to
participate in the Plan as an inactive Participant and will be entitled to a
distribution of his entire Account or a portion thereof upon the earlier of his
Scheduled Withdrawal Date, if any, or his Termination of Employment, in the form elected
(or deemed elected) by such Participant pursuant to Section 5.1.

 

End of Article X

 

32

 

ARTICLE XI

MISCELLANEOUS

 

11.1                        No
Reduction of Employer Rights. Nothing contained in this Plan will be construed as a contract of
employment between the Employer and an Employee, or as a right of any Employee
to continue in the employment of the Employer, or as a limitation of the right
of the Employer to discharge any of its Employees, with or without cause or as
a right of any Director to be renominated to serve as a Director.

 

11.2                        Provisions
Binding. All of the
provisions of this Plan will be binding upon all persons who will be entitled
to any benefit hereunder, their heirs and personal representatives.

 

End of Article XI

 

33

 

IN WITNESS
WHEREOF, this amended and restated Plan has
been executed on this 14th day of February, 2006, effective as of January 1,
2006, except as specifically provided otherwise herein.

 

 

	
   

  	
  TENET
  HEALTHCARE CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Debra L.
  Andonie-Wall

  	
   

  
	
   

  	
   

  
	
   

  	
         Debra
  L. Andonie-Wall

  
	
   

  	
         Senior
  Director, Compensation and HRIS

  

 

34

 

EXHIBIT A(1)

 

LIMITS ON
ELIGIBILITY AND PARTICIPATION

 

Section 3.1 of the Tenet 2006 Deferred Compensation Plan (the “Plan”)
provides the Pension Administration Committee (“PAC”) with the authority to
limit the classification of employees of Tenet Healthcare Corporation or its
participating affiliates (collectively the “Employer”) eligible to participate
in the Plan at any time and states that any such limitation will be set forth
in this Exhibit A.

 

(1)  This
Exhibit A may be updated from time to time without the need for a
formal amendment to the DCP. 

 

A-1

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