Document:

exv10w19

 

	 	 	 
	Metris Companies Inc.

	 	Exhibit 10.19
	Supplemental Executive Retirement Plan
	 	 
	Master
Plan Document
	 	 

 

 

Amended as of February 9, 2005

Copyright © 2001

By Compensation Resource Group, Inc.

All Rights Reserved

 

 

Metris Companies Inc.

Supplemental Executive Retirement Plan

Master Plan Document

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	TABLE OF CONTENTS
	 	 	1	 
	 
	 	 	 	 
	PURPOSE
	 	 	1	 
	 
	 	 	 	 
	ARTICLE 1 DEFINITIONS
	 	 	1	 
	 
	 	 	 	 
	ARTICLE 2 SELECTION, ENROLLMENT, ELIGIBILITY
	 	 	7	 
	 
	 	 	 	 
	2.1 Selection by Committee
	 	 	 7	 
	2.2 Enrollment Requirements
	 	 	 7	 
	2.3 Eligibility; Commencement of Participation
	 	 	 7	 
	2.4 Termination of Participation and/or Deferrals
	 	 	 7	 
	 
	 	 	 	 
	ARTICLE 3 COMPANY CONTRIBUTION/CREDITING
	 	 	8	 
	 
	 	 	 	 
	3.1 Annual Company Contribution Amount
	 	 	 8	 
	3.2 Investment of Trust Assets
	 	 	 8	 
	3.3 Vesting and Accelerated Payout
	 	 	 8	 
	3.4 Crediting/Debiting of Account Balances
	 	 	10	 
	3.5 FICA and Other Taxes
	 	 	11	 
	 
	 	 	 	 
	ARTICLE 4 UNFORESEEABLE FINANCIAL EMERGENCIES; WITHDRAWAL ELECTION;
	 	 	12	 
	 
	 	 	 	 
	4.1 Withdrawal Payout for Unforeseeable Financial Emergencies
	 	 	12	 
	4.2 Withdrawal Election
	 	 	12	 
	 
	 	 	 	 
	ARTICLE 5 RETIREMENT BENEFIT
	 	 	12	 
	 
	 	 	 	 
	5.1 Retirement Benefit
	 	 	13	 
	5.2 Payment of Retirement Benefit
	 	 	13	 
	5.3 Death Prior to Completion of Retirement Benefit
	 	 	13	 
	 
	 	 	 	 
	ARTICLE 6 PRE-RETIREMENT SURVIVOR BENEFIT
	 	 	13	 
	 
	 	 	 	 
	6.1 Pre-Retirement Survivor Benefit
	 	 	13	 
	6.2 Payment of Pre-Retirement Survivor Benefit
	 	 	13	 
	 
	 	 	 	 
	ARTICLE 7 DISABILITY WAIVER AND BENEFIT
	 	 	13	 
	 
	 	 	 	 
	7.2 Continued Eligibility; Disability Benefit
	 	 	14	 
	 
	 	 	 	 
	ARTICLE 8 BENEFICIARY DESIGNATION
	 	 	15	 
	 
	 	 	 	 
	8.1 Beneficiary
	 	 	15	 
	8.2 Beneficiary Designation; Change; Spousal Consent
	 	 	15	 
	8.3 Acknowledgement
	 	 	15	 
	8.4 No Beneficiary Designation
	 	 	15	 
	8.5 Doubt as to Beneficiary
	 	 	15	 
	8.6 Discharge of Obligations
	 	 	15	 
	 
	 	 	 	 
	ARTICLE 9 LEAVE OF ABSENCE
	 	 	16	 

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Metris Companies Inc.

Supplemental Executive Retirement Plan

Master Plan Document

 

 

	 	 	 	 	 
	9.1 Paid Leave of Absence
	 	 	16	 
	 
	 	 	 	 
	ARTICLE 10 TERMINATION, AMENDMENT OR MODIFICATION
	 	 	16	 
	 
	 	 	 	 
	10.1 Termination
	 	 	16	 
	10.2 Amendment
	 	 	16	 
	10.3 Plan Agreement
	 	 	17	 
	10.4 Effect of Payment
	 	 	17	 
	 
	 	 	 	 
	ARTICLE 11 ADMINISTRATION
	 	 	17	 
	 
	 	 	 	 
	11.1 Plan Administrator Duties
	 	 	17	 
	11.2 Administration Upon Change In Control
	 	 	17	 
	11.3 Agents
	 	 	18	 
	11.4 Binding Effect of Decisions
	 	 	18	 
	11.5 Indemnity of Plan Administrators
	 	 	18	 
	11.6 Employer Information
	 	 	18	 
	 
	 	 	 	 
	ARTICLE 12 OTHER BENEFITS AND AGREEMENTS
	 	 	18	 
	 
	 	 	 	 
	12.1 Coordination with Other Benefits
	 	 	18	 
	 
	 	 	 	 
	ARTICLE 13 CLAIMS PROCEDURES
	 	 	18	 
	 
	 	 	 	 
	13.1 Presentation of Claim
	 	 	18	 
	13.2 Notification of Decision
	 	 	19	 
	13.3 Review of a Denied Claim
	 	 	19	 
	13.4 Decision on Review
	 	 	19	 
	13.5 Legal Action
	 	 	19	 
	 
	 	 	 	 
	ARTICLE 14 TRUST
	 	 	20	 
	 
	 	 	 	 
	14.1 Establishment of the Trust
	 	 	20	 
	14.2 Interrelationship of the Plan and the Trust
	 	 	20	 
	14.3 Distributions From the Trust
	 	 	20	 
	 
	 	 	 	 
	ARTICLE 15 MISCELLANEOUS
	 	 	20	 
	 
	 	 	 	 
	15.1 Status of Plan
	 	 	20	 
	15.2 Unsecured General Creditor
	 	 	20	 
	15.3 Employer’s Liability
	 	 	20	 
	15.4 Nonassignability
	 	 	20	 
	15.5 Not a Contract of Employment
	 	 	21	 
	15.6 Furnishing Information
	 	 	21	 
	15.7 Terms
	 	 	21	 
	15.8 Captions
	 	 	21	 
	15.9 Governing Law
	 	 	21	 
	15.10 Notice
	 	 	21	 
	15.11 Successors
	 	 	22	 
	15.12 Spouse’s Interest
	 	 	22	 
	15.13 Validity
	 	 	22	 
	15.14 Incompetent
	 	 	22	 
	15.15 Court Order
	 	 	22	 
	15.16 Distribution in the Event of Taxation
	 	 	22	 
	15.17 Insurance
	 	 	23	 
	15.18 Legal Fees To Enforce Rights After Change in Control
	 	 	23	 

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Supplemental Executive Retirement Plan

Master Plan Document

 

 

METRIS COMPANIES INC.

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

Effective January 1, 1999

Amended effective September 24, 2001

Amended effective February 10, 2003

Amended effective February 9, 2005

Purpose

     The purpose of this Plan is to provide specified benefits to a select group of management and
highly compensated Employees who contribute materially to the continued growth, development and
future business success of Metris Companies Inc., a Delaware corporation, and its subsidiaries, if
any, that sponsor this Plan. This Plan shall be unfunded for tax purposes and for purposes of
Title I of ERISA.

ARTICLE 1

Definitions

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

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

	1.2  	“Annual Company Contribution Amount” shall mean, for any one Plan Year, the amount determined
in accordance with Section 3.1.

	1.3  	“Annual Installment Method” shall be an annual installment payment over 15 years, in
accordance with this Plan, calculated as follows: The Account of the Participant shall be
calculated as of the close of business on the first business day of the year. The annual
installment for that year shall be calculated by dividing this balance by the following annual
annuity factor:

	 	 	 	 	 	 	 	 
	 
	 	Annual Installment Year	 	 	Annual Annuity Factor	 	 
	 	1
	 	 	 	9.74546799	 	 
	 	2
	 	 	 	9.35765074	 	 
	 	3
	 	 	 	8.94268630	 	 
	 	4
	 	 	 	8.49867434	 	 
	 	5
	 	 	 	8.02358154	 	 
	 	6
	 	 	 	7.51523225	 	 
	 	7
	 	 	 	6.97129851	 	 
	 

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Metris Companies Inc.

Supplemental Executive Retirement Plan

Master Plan Document

 

 

	 	 	 	 	 	 	 	 
	 
	 	Annual Installment Year	 	 	Annual Annuity Factor	 	 
	 	8
	 	 	 	6.38928940	 	 
	 	9
	 	 	 	5.76653966	 	 
	 	10
	 	 	 	5.10019744	 	 
	 	11
	 	 	 	4.38721126	 	 
	 	12
	 	 	 	3.62431604	 	 
	 	13
	 	 	 	2.80801817	 	 
	 	14
	 	 	 	1.93457944	 	 
	 	15
	 	 	 	1.00000000	 	 
	 

	   	Each annual installment shall be paid on or as soon as practicable after the first business
day of the applicable year.

	1.4  	“Beneficiary” shall mean one or more persons, trusts, estates or other entities, designated
in accordance with Article 8, that are entitled to receive benefits under this Plan upon the
death of a Participant.

	1.5  	“Beneficiary Designation Form” shall mean the form established from time to time by the
Company that a Participant completes, signs and returns to the Company to designate one or
more Beneficiaries.

	1.6  	“Board” shall mean the board of directors of the Company.
	 
	1.7  	“CEO” shall mean the chief executive officer of the Company.
	 
	1.8  	“Change in Control” shall mean the first to occur of any of the following events:

	 	(a)  	the acquisition by any individual, entity or group (a “Person”), including any
“person” within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange
Act of 1934 (the “Exchange Act”), of beneficial ownership within the meaning of Rule
13d-3 promulgated under the Exchange Act, of 50% or more of the
combined voting power of the then outstanding securities of the Company entitled to
vote generally on matters (without regard to the election of directors) (the
“Outstanding Voting Securities”), excluding, however, the following: (i) any
acquisition directly from the Company or a subsidiary of the Company (excluding any
acquisition resulting from the exercise of an exercise, conversion or exchange
privilege, unless the security being so exercised, converted or exchanged was acquired
directly from the Company or a subsidiary of the company), (ii) any acquisition by the
Company or a subsidiary of the Company, (iii) any acquisition by an employee benefit
plan (or related trust) sponsored or maintained by the Company or a subsidiary of the
Company, or (iv) any acquisition by

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Supplemental Executive Retirement Plan

Master Plan Document

 

 

	 	   	any corporation pursuant to a transaction which complies with clauses (i), (ii) and
(iii) of subsection (c) of this Section 1.8 (all such persons, collectively, the
“Exempted Persons”);

	 	(b)  	individuals who, as of January 1, 1999, constitute the Board (the “Incumbent
Board”) cease for any reason to constitute at least a majority of such Board; provided
that any individual who becomes a director of the Company subsequent to January 1,
1999, whose election, or nomination for election by the Company’s stockholders, was
approved by the vote of at least a majority of the directors then comprising the
Incumbent Board shall be deemed a member of the Incumbent Board; and provided further,
that any individual who was initially elected as a director of the Company 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
solicitation of proxies or consents by or on behalf of any Person other than the Board
shall not be deemed a member of the Incumbent Board;

	 	(c)  	approval by the stockholders of the Company of a reorganization, merger or
consolidation or sale or other disposition of all or substantially all of the assets of
the Company (a “Corporate Transaction”), excluding, however, a Corporate Transaction
pursuant to which (i) all or substantially all of the individuals or entities who are
the beneficial owners of the Outstanding Voting Securities immediately prior to such
Corporate Transaction will beneficially own, directly or indirectly, more than 50% of the combined voting power of the outstanding securities of the
corporation resulting from such Corporate Transaction (including, without limitation, a
corporation which as a result of such transaction owns, either directly or indirectly,
the Company or all or substantially all of the Company’s assets) which are entitled to
vote generally on matters (without regard to the election of directors), in
substantially the same proportions relative to each other as the shares of Outstanding
Voting Securities are owned immediately prior to such Corporate Transaction, (ii) no
Person (other than the following Persons: (v) the company or subsidiary of the Company,
(w) any employee benefit plan (or related trust) sponsored or maintained by the Company
or subsidiary of the Company, (x) the corporation resulting from such Corporate
Transaction, (y) the Exempted Persons, (z) and any person which beneficially owned,
immediately prior to such Corporate Transaction, directly or indirectly, 25% or more of
the Outstanding Voting Securities) will beneficially own, directly or indirectly, 25%
or more of the combined voting power of the outstanding securities of such corporation
entitled to vote generally on matters (without regard to the election of directors) and
(iii) individuals who were members of the Incumbent Board will constitute at least a
majority of the members of the board of directors of the corporation resulting from
such Corporate Transaction; or

	 	(d)  	approval by the stockholders of the Company of (i) a plan of complete
liquidation or dissolution of the Company, or (ii) the sale or other disposition of all
or substantially all of the assets of the Company.

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Master Plan Document

 

 

	   	In addition to one of the above triggers, at least one of the following events must occur
without the Participant’s consent, within the twenty four (24) month period beginning with
the event in (a) through (d) above (the “Post-Change Period”), in order for the “Change in
Control” benefits under this Section 3.3 to be payable to any Participant or Beneficiary:

	 	(a)  	a material diminution or other material adverse change in the Participant’s job
title, offices, duties, responsibilities, level of administrative support or status
from that held, assigned or receiving within the 90-day period preceding the Change in
Control event above;

	 	(b)  	a material reduction in the Participant’s compensation (including base salary
and bonuses), qualified and non-qualified pension and profit sharing benefits, welfare
and fringe benefits, or executive expense allowances in comparison to that which the
Participant is entitled to during the 90-day period immediately before the Change in
Control event above;

	 	(c)  	Participant is forced to relocate to a business location more than forty (40)
miles from the location at which the Participant was assigned immediately before the
initial Change in Control event, or

	 	(d)  	The Participant’s Employer or the surviving company in a merger to which the
Employer is a party, terminates its sponsorship of the Plan, suspends, or discontinues
Annual Company Contributions to the Plan.

	1.9  	“Claimant” shall have the meaning set forth in Section 13.1.
	 
	1.10  	“Code” shall mean the Internal Revenue Code of 1986, as it may be amended from time to time.
	 
	1.11  	“Committee” shall mean the Compensation Committee of the Board of Directors.
	 
	1.12  	“Company” shall mean Metris Companies Inc., a Delaware corporation, and any successor to all
or substantially all of the Company’s assets or business.
	 
	1.13  	“Deduction Limitation” shall mean the following described limitation on a benefit that may
otherwise be distributable pursuant to the provisions of this Plan. Except as otherwise
provided, this limitation shall be applied to all distributions that are “subject to the
Deduction Limitation” under this Plan. If an Employer determines in good faith prior to a
Change in Control, that there is a reasonable likelihood that any compensation paid to a
Participant for a taxable year of the Employer would not be deductible by the Employer solely
by reason of the limitation under Code Section 162(m), then to the extent deemed necessary by
the Employer to ensure that the entire amount of any distribution to the Participant pursuant
to this Plan prior to the Change in Control is deductible, the Employer may defer all or any
portion of a distribution under this Plan. Any amounts deferred pursuant to this limitation
shall continue to be credited/debited with additional amounts in accordance with Section 3.4
below, even if such amount is being paid out in

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Supplemental Executive Retirement Plan

Master Plan Document

 

 

	   	installments The amounts so deferred and amounts credited thereon shall be distributed to
the Participant or his or her Beneficiary (in the event of the Participant’s death) at the
earliest possible date, as determined by the Employer in good faith, on which the
deductibility of compensation paid or payable to the Participant for the taxable year of the
Employer during which the distribution is made will not be limited by Section 162(m), or if
earlier, the effective date of a Change in Control. Notwithstanding anything to the
contrary in this Plan, the Deduction Limitation shall not apply to any distributions payable
following a Change in Control.
	 
	1.14  	“Disability” shall mean a period of disability during which a Participant qualifies for
permanent disability benefits under the Participant’s Employer’s long-term disability plan,
or, if a Participant does not participate in such a plan, a period of disability during which
the Participant would have qualified for permanent disability benefits under such a plan had
the Participant been a participant in such a plan, as determined in the sole discretion of the
Company. If the Participant’s Employer does not sponsor such a plan, or discontinues to
sponsor such a plan, Disability shall be determined by the Company in its sole discretion.
	 
	1.15  	“Disability Benefit” shall mean the benefit set forth in Article 7.
	 
	1.16  	“Election Form” shall mean the form established from time to time by the Company that a
Participant completes signs and returns to the Company to make an election under the Plan.
	 
	1.17  	“Employee” shall mean a person who is an employee of any Employer.
	 
	1.18  	“Employer(s)” shall mean the Company and/or any of its subsidiaries (now in existence or
hereafter formed or acquired) that have been selected by the Board to participate in the Plan
and have adopted the Plan as a sponsor.
	 
	1.19  	“ERISA” shall mean the Employee Retirement Income Security Act of 1974, as it may be amended
from time to time.
	 
	1.20  	“Participant” shall mean any Employee (i) who is selected to participate in the Plan, (ii)
who elects to participate in the Plan, (iii) who signs a Participation Agreement, an Election
Form and a Beneficiary Designation Form, (iv) whose signed Participation Agreement, Election
Form and Beneficiary Designation Form are accepted by the Plan Administrator , (v) who
commences participation in the Plan, and (vi) whose Participation Agreement has not
terminated. A spouse or former spouse of a Participant shall not be treated as a Participant
in the Plan or have an Account under the Plan, even if he or she has an interest in the
Participant’s benefits under the Plan as a result of applicable law or property settlements
resulting from legal separation or divorce.
	 
	1.21  	“Participant’s Account” shall mean (i) the sum of the Participant’s Annual Company
Contribution Amounts, plus (ii) amounts credited in accordance with all the applicable
crediting provisions of this Plan that relate to the Participant’s Account, less (iii) all
distributions made to the Participant or his or her Beneficiary pursuant to this Plan that
relate to the Participant’s Account.
	 
	1.22  	“Participation Agreement” shall mean a written agreement, as may be amended from time to
time, which is entered into by and between the CEO and a Participant evidencing such
Participant’s selection for eligibility and enrollment in the Plan. Each Participation
Agreement

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	   	executed by a Participant and the CEO shall provide the terms under which the entire benefit
to which such Participant is entitled under the Plan shall be determined. Should there be
more than one Participation Agreement, the Participation Agreement bearing the latest date
of acceptance by the Plan Administrator shall supersede all previous Participation
Agreements in their entirety and shall govern such entitlement. The terms of any
Participation Agreement may be different for any Participant, and any Participation
Agreement may provide additional benefits not set forth in the Plan or limit the benefits
otherwise provided under the Plan; provided, however, that any such additional benefits or
benefit limitations must be agreed to by both the CEO and the Participant.

	1.23  	“Plan” shall mean the Company’s Supplemental Executive Retirement Plan, which shall be
evidenced by this instrument and by each Participation Agreement, as they may be amended from
time to time.

	1.24  	“Plan Administrator” shall mean the Company or such person or persons responsible for the
administration of executive compensation and benefits on behalf of the Company.

	1.25  	“Plan Year” shall mean a period beginning on January 1 of each calendar year and continuing
through December 31 of such calendar year.

	1.26  	“Pre-Retirement Survivor Benefit” shall mean the benefit set forth in Article 6.

	1.27  	“Retirement”, “Retire(s)” or “Retired” shall mean, with respect to an Employee, severance
from employment from all Employers for any reason other than a leave of absence, death or
Disability on or after the earlier of the attainment of (a) age sixty-five (65) or (b) age
fifty-five (55) with five (5) Years of Plan Participation.

	1.28  	“Retirement Benefit” shall mean the benefit set forth in Article 5.

	1.29  	“Trust” shall mean one or more trusts established pursuant to that certain Master Trust
Agreement, dated as of December 30, 1999 between the Company and the trustee named therein, as
amended from time to time.

	1.30  	“Unforeseeable Financial Emergency” shall mean an unanticipated emergency that is caused by
an event beyond the control of the Participant that would result in severe financial hardship
to the Participant resulting from (i) a sudden and unexpected illness or accident of the
Participant or a dependent of the Participant, (ii) a loss of the Participant’s property due
to casualty, or (iii) such other extraordinary and unforeseeable circumstances arising as a
result of events beyond the control of the Participant, all as determined in the sole
discretion of the CEO or his or her delegate.

	1.31  	“Years of Plan Participation” shall mean the total number of full Plan Years a Participant
has been a Participant in the Plan. Any partial year shall not be counted. Notwithstanding
the previous sentence, a Participant’s first Plan Year of participation shall be treated as a
full Plan Year for purposes of this definition, even if it is only a partial Plan Year of
Participation.

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Master Plan Document

 

 

ARTICLE 2

Selection, Enrollment, Eligibility

	2.1  	Selection by CEO. Participation in the Plan shall be limited to a select group of
management and highly compensated Employees of the Employers, as determined by the
Compensation Committee of the Board of Directors of the Company. From that group, the CEO of
the Company shall, in his or her sole discretion, select those Employees who are eligible to
participate in the Plan.

	2.2  	Enrollment Requirements. As a condition to participation, each selected Employee
shall complete, execute and return to the Plan Administrator, a Participation Agreement, an
Election Form and a Beneficiary Designation Form, all within 30 days after he or she is
selected to participate in the Plan. In addition, the Plan Administrator shall establish from
time to time such other enrollment requirements as it determines that, in its sole discretion,
are necessary.

	2.3  	Eligibility; Commencement of Participation. Provided an Employee selected to
participate in the Plan has met all enrollment requirements set forth in this Plan and
required by the Plan Administrator, including returning all required documents to the Plan
Administrator within the specified time period, that Employee shall commence participation in
the Plan on the first day of the month following the month in which the Employee completes all
enrollment requirements. If an Employee fails to meet all such requirements within the period
required, in accordance with Section 2.2, that Employee shall not be eligible to participate
in the Plan until the first day of the Plan Year following the delivery to and acceptance by
the Plan Administrator of the required documents.

	2.4  	Termination of Participation. If the CEO determines in good faith that a Participant
no longer qualifies as a member of a select group of management or highly compensated
employees, as membership in such group is determined in accordance with Sections 201(2),
301(a)(3) and 401(a)(1) of ERISA and the regulations thereunder, the CEO shall have the right,
in his or her sole discretion, to deem the Participant to have retired solely for the
purposes of this Plan and to direct the Plan Administrator to immediately distribute the
Participant’s then vested Account and terminate the Participant’s participation in the Plan.
Notwithstanding the foregoing and any other provision of this Plan that may be interpreted to
the contrary, if the CEO determines in his or her sole and absolute discretion, at any time
and for any reason or no reason, that a Participant no longer qualifies to participate in this
Plan, the Plan Administrator shall have the right to immediately distribute the Participant’s
then vested Account and terminate the Participant’s further participation in the Plan.

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ARTICLE 3

 Company Contribution/Crediting

	3.1  	Annual Company Contribution Amount. For each Plan Year, an Employer, in its sole
discretion, may, but is not required to, credit any amount it desires to any Participant’s
Account under this Plan, which amount shall be for that Participant the Annual Company
Contribution Amount for that Plan Year. An Employer may, in its sole discretion, determine the
amount of a Participant’s Company Contribution based upon current or projected compensation, a
targeted future benefit, rates of interest or other earnings and other assumptions and
criteria deemed appropriate. The amount so credited to a Participant may be smaller or larger
than the amount credited to any other Participant, and the amount credited to any Participant
for a Plan Year may be zero, even though one or more other Participants receive an Annual
Company Contribution Amount for that Plan Year. The Annual Company Contribution Amount, if
any, shall be credited as of the last day of the Plan Year. If a Participant is not employed
by an Employer as of the last day of a Plan Year other than by reason of his or her
Retirement, his or her voluntary or involuntary termination during the Post-Change Period
described in Section 1.8 above, or death while employed, the Annual Company Contribution
Amount for that Plan Year shall be zero.

	3.2  	Investment of Trust Assets. The Trustee of the Trust shall be authorized, upon
written instructions received from the Plan Administrator or investment manager appointed by
the Plan Administrator, to invest and reinvest the assets of the Trust in accordance with the
applicable Trust Agreement, including the disposition of stock and reinvestment of the
proceeds in one or more investment vehicles designated by the Plan Administrator.

     3.3 Vesting and Accelerated Payout.

	 	(a)  	A Participant’s Account shall vest based on the Participant’s age and Years of
Plan Participation, in accordance with the following schedule:

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	Vested Percentage of	 	 
	 	Age and Years of Plan Participation	 	 	Account	 	 
	 	Age less than 55 or Years of Plan Participation less
than 5
	 	 	 	0% 	 	 
	 	Age 55 or more and 5 or more Years of Plan
Participation
	 	 	 	100% 	 	 
	 

	 	(b)  	Notwithstanding anything to the contrary contained in this Section 3.3, in the
event a Participant attains age 65 while employed by one or more Employers, the
Participant’s Account shall immediately become 100% vested (if it is not already vested
in accordance with the above vesting schedule).

	 	(c)  	Notwithstanding anything to the contrary contained in this Section 3.3, in the
event of a Participant’s death while employed by one or more Employers, the
Participant’s Account
shall immediately become 100% vested (if it is not already vested in accordance with
the above vesting schedule).

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	 	(d)  	Notwithstanding anything to the contrary contained in this Section 3.3, in the
event of a Change in Control as defined in Section 1.8, while a Participant is employed
by one or more Employers and the Participant has not yet attained age 55, the
Participant’s Account shall be increased by an amount equal to the present value of the
current Participant’s Account projected to age 55 using the contribution and earnings
assumptions most recently applied by the Participant’s Employer in determining the
Annual Company Contribution Amount for the Plan Year immediately preceding the Change
in Control, less the sum of the Participant’s Account at the date of the Change in
Control and the amount of any prior distributions from such account. The Participant’s
Account or adjusted Account, if the preceding sentence is applicable, shall immediately
become 100% vested and notwithstanding Section 5.2, shall be payable in the form and at
the date specified in Section 5.2. If a Participant’s Account is adjusted pursuant to
this subsection (d), the Participant’s Account will receive no further Annual Company
Contributions but the Participant’s Account shall receive earnings credits following
the date of the Change in Control based upon the earnings assumption used in
determining the projected age 55 value of the account.

	 	(e)  	Notwithstanding the vesting schedule in subparagraph (a) above, in the event of
an involuntary or voluntary termination of employment in connection with a reduction in
workforce, position elimination, early retirement or job restructuring other than as a
result of a Change of Control, the Committee may, in its discretion, in exchange for a
release of all employment based claims against Employer including claims under this
Plan, treat the Participant as 100% vested in his or her Participant’s Account by
applying additional years of service and/or years of age. No additional accruals may
be made under this subparagraph.

	 	(f)  	In the event that any acceleration in vesting causes the Participant to be
subjected to the excise tax under Code Section 4999, then the Participant shall be
entitled to an additional payment (a “Gross Up Payment”) in an amount such that after
payment by the Participant of all income taxes (including interest and penalties
imposed with respect to such taxes), and the excise tax imposed upon the Gross Up
Payment under Code Section 4999, the Participant is left with an amount equal to the
excise taxes owed on the payments under the Plan. The verification of the applicability
of the excise tax and computation of the Gross Up Payment shall be made by the
certified public accounting firm providing regular income tax advice to the Company and
all fees and expenses of such accounting firm shall be paid by the Company.

	 	(g)  	The Participant shall notify the Plan Administrator in writing of any claims by
the IRS that, if successful, would require the payment of the Gross Up Payment by the
Company and shall provide the Plan Administrator with information and an opportunity to
effectively contest such claims and participate in any proceedings relating to such

claims at the Company’s sole expense.

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

	 	(a)  	Election of Measurement Funds. A Participant, in connection with his
or her initial enrollment in accordance with Section 2.3 above, shall elect, on the
Election Form, one or more Measurement Fund(s) (as described in Section 3.4(c) below)
to be used to determine the additional amounts to be credited to his or her Account for
the first calendar quarter or portion thereof in which the Participant commences
participation in the Plan and continuing thereafter for each subsequent calendar
quarter in which the Participant participates in the Plan, unless changed in accordance
with the next sentence. Commencing with the first calendar quarter that follows the
Participant’s commencement of participation in the Plan and continuing thereafter for
each subsequent calendar quarter in which the Participant participates in the Plan, no
later than the next to last business day of the calendar quarter, the Participant may
(but is not required to) elect, by submitting an Election Form to the Plan
Administrator that is accepted by the Plan Administrator, to add or delete one or more
Measurement Fund(s) to be used to determine the additional amounts to be credited to
his or her Account, or to change the portion of his or her Account allocated to each
previously or newly elected Measurement Fund. If an election is made in accordance with
the previous sentence, it shall apply to the next calendar quarter and continue
thereafter for each subsequent calendar quarter in which the Participant participates
in the Plan, unless changed in accordance with the previous sentence.

	 	(b)  	Proportionate Allocation. In making any election described in Section
3.4(a) above, the Participant shall specify on the Election Form, in increments of one
percentage point (1%), the percentage of his or her Account to be allocated to a
Measurement Fund (as if the Participant was making an investment in that Measurement
Fund with that portion of his or her Account).

	 	(c)  	Measurement Funds. The Participant may elect one or more of the
following measurement funds, based on certain mutual funds (the “Measurement Funds”),
for the purpose of crediting additional amounts to his or her Account:

	 	(1)  	Travelers Money Market;
	 
	 	(2)  	PIMCO Total Return Fund;
	 
	 	(3)  	Janus Balanced Fund;
	 
	 	(4)  	Equity Income Portfolio (Fidelity);
	 
	 	(5)  	Dreyfus Stock Index Fund;
	 
	 	(6)  	American Funds Growth Fund;
	 
	 	(7)  	Salomon Bros Variable Capital Fund;
	 
	 	(8)  	Putnam VT Small Cap Value Fund;
	 
	 	(9)  	AFIS Global Growth Fund; and

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	 	(10)  	Smith-Barney International All-Cap Growth Fund

	 	   	As necessary, the Plan Administrator may, in its sole discretion, discontinue,
substitute or add a Measurement Fund. Each such action will take effect as of the
first day of the calendar quarter that follows by thirty (30) days the day on which
the Plan Administrator gives Participants advance written notice of such change.
	 
	 	(d)  	Crediting or Debiting Method. The performance of each elected
Measurement Fund (either positive or negative) will be determined by the Plan
Administrator, in its reasonable discretion, based on the performance of the
Measurement Funds themselves. A Participant’s Account shall be credited or debited on
a daily basis based on the performance of each Measurement Fund selected by the
Participant, as determined by the Plan Administrator in its sole discretion, as
though (i) a Participant’s Account were invested in the Measurement Fund(s) selected by
the Participant, in the percentages applicable to such calendar quarter, as of the
close of business on the first business day of such calendar quarter, at the closing
price on such date; (ii) the portion of the Annual Company Contribution Amount that was
actually credited during any calendar quarter were invested in the Measurement Fund(s)
selected by the Participant, in the percentages applicable to such calendar quarter, no
later than the close of business on the first business day after the day on which such
amounts are actually first credited, at the closing price on such date; and (iii) any
distribution made to a Participant that decreases such Participant’s Account ceased
being invested in the Measurement Fund(s), in the percentages applicable to such
calendar quarter, no earlier than one business day prior to the distribution, at the
closing price on such date.
	 
	 	(e)  	No Actual Investment. Notwithstanding any other provision of this Plan
that may be interpreted to the contrary, the Measurement Funds are to be used for
measurement purposes only, and a Participant’s election of any such Measurement Fund,
the allocation of his or her Account thereto, the calculation of additional amounts and
the crediting or debiting of such amounts to a Participant’s Account shall
not be considered or construed in any manner as an actual investment of his or
her Account in any such Measurement Fund. In the event that the Plan Administrator or
the Trustee (as that term is defined in the Trust), in its own discretion, decides to
invest funds in any or all of the Measurement Funds, no Participant shall have any
rights in or to such investments themselves. Without limiting the foregoing, a
Participant’s Account shall at all times be a bookkeeping entry only and shall not
represent any investment made on his or her behalf by the Plan Administrator or the
Trust; the Participant shall at all times remain an unsecured creditor of the Company.
	 
	 	(f)  	Selection of Measurement Funds after Death. Notwithstanding any
provision of this Plan that may be interpreted to the contrary, and in accordance with
the rules and regulations established by the Plan Administrator for such purpose, the
Measurement Funds to be used to determine additional amounts to be credited or debited
to a Participant’s Account after the death of the Participant shall be selected by his
or her Beneficiaries.

	3.5  	FICA and Other Taxes.

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	 	(a)  	Participant’s Account. When a Participant becomes vested in a portion
of his or her Account, the Participant’s Employer(s) shall withhold from the
Participant’s base annual salary and/or bonus, in a manner determined by the
Employer(s), the Participant’s share of FICA and other employment taxes. If necessary,
the Plan Administrator may reduce the vested portion of the Participant’s Account in
order to comply with this Section 3.5.

	 	(b)  	Distributions. The Participant’s Employer(s), or the trustee of the
Trust, shall withhold from any payments made to a Participant under this Plan all
federal, state and local income, employment and other taxes required to be withheld by
the Employer(s), or the trustee of the Trust, in connection with such payments, in
amounts and in a manner to be determined in the sole discretion of the Employer(s) or
the trustee of the Trust.

ARTICLE 4

 Unforeseeable Financial Emergencies;

Withdrawal Election

	4.1  	Unforeseeable Financial Emergencies. If a Participant experiences an Unforeseeable
Financial Emergency, the Participant may petition the CEO to receive a partial or full pay out
of his or her vested Account from the Plan. The payout shall not exceed the lesser of the
Participant’s vested Account, calculated as if such Participant were receiving a Retirement
Benefit, or the amount reasonably needed to satisfy the Unforeseeable Financial Emergency.
If, subject to the sole discretion of the CEO, the petition for a payout is approved, any
payout shall be made within 60 days of the date of approval. The payment of any amount under
this Section 4.1 shall not be subject to the Deduction Limitation.

	4.2  	Withdrawal Election. A Retired Participant (or, after a Participant’s death, his or
her Beneficiary) may elect, at any time, to withdraw all of his or her vested Account, less a
withdrawal penalty equal to 10% of such amount (the net amount shall be referred to as the
“Withdrawal Amount”). This election can be made at any time after the Participant Retires,
but only if the Participant (or Beneficiary) is in the process of being paid pursuant to an
installment payment schedule. No partial withdrawals of the Withdrawal Amount shall be
allowed. The 10% withdrawal penalty shall not apply following a Change in Control (as defined
in Section 3.3(d) Do we need to add this reference to each Change in Control in this
agreement? )). The Participant (or his or her Beneficiary) shall make this election by
giving the Plan Administrator advance written notice of the election in a form determined from
time to time by the Plan Administrator. The Participant (or his or her Beneficiary) shall be
paid the Withdrawal Amount within 60 days of his or her election. Once the Withdrawal Amount
is paid, the Participant’s participation in the Plan shall terminate and the Participant shall
not be eligible to participate in the Plan in the future. The payment of this Withdrawal
Amount shall not be subject to the Deduction Limitation.

ARTICLE 5

Retirement Benefit

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	5.1  	Retirement Benefit. Subject to the Deduction Limitation, a Participant who Retires
shall receive, as a Retirement Benefit, his or her vested Account.

	5.2  	Payment of Retirement Benefit. A Participant shall receive the Retirement Benefit
pursuant to an Annual Installment Method of 15 years. Installment payments shall commence no
later than 60 days after the last day of the Plan Year in which the Participant Retires. Any
payment made shall be subject to the Deduction Limitation.

	5.3  	Death Prior to Completion of Retirement Benefit. If a Participant dies after
Retirement but before the Retirement Benefit is paid in full, the Participant’s unpaid
Retirement Benefit payments shall continue and shall be paid to the Participant’s Beneficiary
(a) over the remaining number of years and in the same amounts as that benefit would have been
paid to the Participant had the Participant survived, or (b) in a lump sum, if requested by
the Beneficiary and allowed in the sole discretion of the CEO, that is equal to the
Participant’s unpaid remaining Account.

ARTICLE 6

Pre-Retirement Survivor Benefit

	6.1  	Pre-Retirement Survivor Benefit. Subject to the Deduction Limitation, the
Participant’s Beneficiary shall receive a Pre-Retirement Survivor Benefit equal to the
Participant’s Account if the Participant dies while employed by one or more Employers.

	6.2  	Payment of Pre-Retirement Survivor Benefit. A Participant, in connection with his or
her commencement of participation in the Plan, shall elect on an Election Form whether the
Pre-Retirement Survivor Benefit shall be received by his or her Beneficiary in a lump sum or
pursuant to an Annual Installment Method of 15 years. The Participant may annually change
this election to an allowable alternative payout period by submitting a new Election Form to
the Plan Administrator, which form must be accepted by the Plan Administrator in its sole
discretion. The Election Form most recently accepted by the Plan Administrator prior to the
Participant’s death shall govern the payout of the Participant’s Pre-Retirement Survivor
Benefit. If a Participant does not make any election with respect to the payment of the
Pre-Retirement Survivor Benefit, then such benefit shall be paid in a lump sum. Despite the
foregoing, if the Participant’s Account at the time of his or her death is less than $25,000,
payment of the Pre-Retirement Survivor Benefit may be made, in the sole discretion of the CEO,
in a lump sum. The lump sum payment shall be made, or installment payments shall commence, no
later than 60 days after the last day of the Plan Year in which the Plan Administrator is
provided with proof that is satisfactory to the Plan Administrator of the Participant’s death.
Any payment made shall be subject to the Deduction Limitation.

ARTICLE 7

Disability Benefit

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	7.1  	Continued Eligibility; Disability Benefit. A Participant suffering a Disability
shall, for benefit purposes under this Plan, continue to be considered to be employed and
shall be eligible for the benefits provided for in Articles 4, 5, or 6 in accordance with the
provisions of those Articles. Notwithstanding the above, the CEO shall have the right to, in
his or her sole and absolute discretion and for purposes of this Plan only, and must, in the
case of a Participant who is otherwise eligible to Retire (as defined in Section 1.27), deem
the Participant to have Retired, at any time (or in the case of a Participant who is eligible
to Retire, as soon as practicable) after such Participant is determined to be suffering a
Disability, in which case the Participant shall receive a Disability Benefit equal to his or
her Account at the time of the CEO’s determination; provided, however, that should the
Participant otherwise have been eligible to Retire, he or she shall be paid in accordance with
Article 5. The Disability Benefit shall be paid in a lump sum within 60 days of the CEO’s
exercise of such right. Any payment made shall be subject to the Deduction Limitation.

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ARTICLE 8

Beneficiary Designation

	8.1  	Beneficiary. Each Participant shall have the right, at any time, to designate his or
her Beneficiary (ies) (both primary as well as contingent) to receive any benefits payable
under the Plan to a beneficiary upon the death of a Participant. The Beneficiary designated
under this Plan may be the same as or different from the Beneficiary designation under any
other plan of an Employer in which the Participant participates.

	8.2  	Beneficiary Designation; Change; Spousal Consent. A Participant shall designate his
or her Beneficiary by completing and signing the Beneficiary Designation Form, and returning
it to the Plan Administrator or its designated agent. A Participant shall have the right to
change a Beneficiary by completing, signing and otherwise complying with the terms of the
Beneficiary Designation Form and the Plan Administrator’s rules and procedures, as in effect
from time to time. If the Participant names someone other than his or her spouse as a
Beneficiary, a spousal consent, in the form designated by the Plan Administrator must be
signed by that Participant’s spouse and returned to the Plan Administrator. Upon the
acceptance by the Plan Administrator of a new Beneficiary Designation Form, all Beneficiary
designations previously filed shall be canceled. The Plan Administrator shall be entitled to
rely on the last Beneficiary Designation Form filed by the Participant and accepted by the
Plan Administrator before his or her death.

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

	8.4  	No Beneficiary Designation. If a Participant fails to designate a Beneficiary as
provided in Sections 8.1, 8.2 and 8.3 above or, if all designated Beneficiaries predecease the
Participant or die prior to complete distribution of the Participant’s benefits, then the
Participant’s designated Beneficiary shall be deemed to be his or her surviving spouse. If
the Participant has no surviving spouse, the benefits remaining under the Plan to be paid to a
Beneficiary shall be payable to the executor or personal representative of the Participant’s
estate.

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

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

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ARTICLE 9

Leave of Absence

	9.1  	Leave of Absence. If a Participant is authorized by the Participant’s Employer for
any reason to take a paid or unpaid leave of absence from the employment of the Employer,
including but not limited to, an FMLA or USERRA leave, the Participant shall continue to be
considered employed by the Employer.

ARTICLE 10

Termination, Amendment or Modification

	10.1  	Termination. Although each Employer anticipates that it will continue the Plan for
an indefinite period, there is no guarantee that any Employer will continue the Plan or will
not terminate the Plan at any time in the future. Accordingly, each Employer reserves the
right to discontinue its sponsorship of the Plan and/or to terminate the Plan at any time with
respect to any or all of its participating Employees, by action of its board of directors.
Upon the termination of the Plan with respect to any Employer, the Participation Agreements of
the affected Participants who are employed by that Employer shall terminate and their
Accounts, determined as if they had experienced a Retirement on the date of Plan termination
shall be paid to the Participants as follows: Prior to a Change in Control, if the Plan is
terminated with respect to all of its Participants, an Employer shall have the right, in its
sole discretion, and notwithstanding any elections made by the Participant, to pay such
benefits in a lump sum or pursuant to an Annual Installment Method of 15 years, with amounts
credited and debited during the installment period as provided herein. If the Plan is
terminated with respect to less than all of its Participants, an Employer shall be required to
pay such benefits in a lump sum. After a Change in Control, the Employer shall be required to
pay such benefits as provided in Section 3.3(d). The termination of the Plan shall
not adversely affect any Participant or Beneficiary who has become entitled to the payment of
any benefits under the Plan as of the date of termination; provided however, that the Employer
shall have the right to accelerate installment payments without a premium or prepayment
penalty by paying the Account in a lump sum or pursuant to an Annual Installment Method using
fewer years.

	10.2  	Amendment. Any Employer may, at any time, amend or modify the Plan in whole or in
part with respect to that Employer by the action of its board of directors; provided, however,
that: (i) no amendment or modification shall be effective to decrease or restrict the value of
a Participant’s Account in existence at the time the amendment or modification is made,
calculated as if the Participant had experienced a Retirement as of the effective date of the
amendment or modification and (ii) no amendment or modification of this Section 10.2 or
Section 11.2 of the Plan shall be effective. The amendment or modification of the Plan shall
not affect any Participant or Beneficiary who has become entitled to the payment of benefits
under the Plan as of the date of the amendment or modification; provided, however, that the
Employer shall have the right to accelerate installment payments by paying the Account in a
lump sum or pursuant to an Annual Installment Method using fewer years.

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	10.3  	Participation Agreement. Despite the provisions of Sections 10.1 and 10.2 above, if
a Participant’s Participation Agreement contains benefits or limitations that are not in this
Plan document, the Employer may only amend or terminate such provisions with the consent of
the Participant.

	10.4  	Effect of Payment. The full payment of the applicable benefit under Articles 4, 5,
6, 7 or 8 of the Plan shall completely discharge all obligations to a Participant and his or
her designated Beneficiaries under this Plan and the Participant’s Participation Agreement
shall terminate.

ARTICLE 11

Administration

	11.1  	Plan Administrator Duties. Except as otherwise provided in this Article 11, this
Plan shall be administered by the Plan Administrator . In the event that the CEO and/or any of
the other top 4 highest paid officers of the Company are Participants in the Plan, then all
determinations and awards to such persons shall be subject to approval by the Committee.
Subject to the preceding sentence (required administration by the independent Committee), the
Plan Administrator shall also have the discretion and authority to (i) make, amend, interpret,
and enforce all appropriate rules and regulations for the administration of this Plan and (ii)
decide or resolve any and all questions including interpretations of this Plan, as may arise
in connection with the Plan.

	11.2  	Administration upon Change in Control. For purposes of this Plan, the Company and
its designated employees and agents shall be the “Plan Administrator” at all times prior to
the occurrence of a Change in Control. Upon and after the occurrence of a Change in Control,
as defined in Section 3.3(d), the “Plan Administrator” shall be an independent third party
selected by the Trustee and approved by the individual who, immediately prior to such event,
was the Company’s Chief Executive Officer or, if not so identified, the Company’s highest
ranking officer (the “Ex-CEO”). The Plan Administrator shall have the discretionary power to
determine all questions arising in connection with the administration of the Plan and the
interpretation of the Plan and Trust including, but not limited to benefit entitlement
determinations; provided, however, upon and after the occurrence of a Change in Control, the
Plan Administrator shall have no power to direct the investment of Plan or Trust assets or
select any investment manager or custodial firm for the Plan or Trust. Upon and after the
occurrence of a Change in Control, the Company must: (1) pay all reasonable administrative
expenses and fees of the Plan Administrator; (2) indemnify the Plan Administrator against any
costs, expenses and liabilities including, without limitation, attorney’s fees and expenses
arising in connection with the performance of the Plan Administrator hereunder, except with
respect to matters resulting from the gross negligence or willful misconduct of the Plan
Administrator or its employees or agents; and (3) supply full and timely information to the
Plan
Administrator or all matters relating to the Plan, the Trust, the Participants and their
Beneficiaries, the Accounts of the Participants, the date and circumstances of the
Retirement, Disability, death or termination of employment of the Participants, and such
other pertinent information as the Plan Administrator may reasonably require. Upon and
after a Change in Control, the Plan Administrator may be terminated (and a replacement
appointed) by the Trustee only with the approval of the Ex-CEO. Upon and after a

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	   	Change in
Control, the Plan Administrator may not be terminated by the Company or any successor to the
Company.
	 
	 	 	 	 
	11.3  	Agents. In the administration of this Plan, the Company may, from time to time,
employ agents and delegate to them such administrative duties as it sees fit (including acting
through a duly appointed representative) and may from time to time consult with counsel who
may be counsel to any Employer.

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

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

	11.6  	Employer Information. To enable the Plan Administrator(s) to perform its functions,
the Company and each Employer shall supply full and timely information to the Plan
Administrator(s), on all matters relating to the compensation of its Participants, the date
and circumstances of the Retirement, Disability, death or termination of employment of its
Participants, and such other pertinent information as the Plan Administrator may reasonably
require.

ARTICLE 12

Other Benefits and Agreements

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

ARTICLE 13

Claims Procedures

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

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	13.2  	Notification of Decision. The Plan Administrator shall consider a Claimant’s claim
within a reasonable time, and shall notify the Claimant in writing:

	 	(a)  	that the Claimant’s requested determination has been made, and that the claim
has been allowed in full; or

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

	 	(i)  	the specific reason(s) for the denial of the claim, or any part
of it;
	 
	 	(ii)  	specific reference(s) to pertinent provisions of the Plan upon
which such denial was based;
	 
	 	(iii)  	a description of any additional material or information
necessary for the Claimant to perfect the claim, and an explanation of why such
material or information is necessary; and
	 
	 	(iv)  	An explanation of the claim review procedure set forth in Section
13.3 below.

	13.3  	Review of a Denied Claim. Within 60 days after receiving a notice from the Plan
Administrator that a claim has been denied, in whole or in part, a Claimant (or the Claimant’s
duly authorized representative) may file with the Plan Administrator a written request for a
review of the denial of the claim. Thereafter, but not later than 30 days after the review
procedure began, the Claimant (or the Claimant’s duly authorized representative):

	 	(a)  	may review pertinent documents;
	 
	 	(b)  	may submit written comments or other documents; and/or
	 
	 	(c)  	May request a hearing, which the Plan Administrator will grant if requested
timely.

	13.4  	Decision on Review. The Plan Administrator shall render its decision on review
promptly, and not later than 60 days after the filing of a written request for review of the
denial, unless a hearing is held or other special circumstances require additional time, in
which case the Plan Administrator’s decision must be rendered within 120 days after such date.
Such decision must be written in a manner calculated to be understood by the Claimant, and it
must contain:

	 	(a)  	specific reasons for the decision;
	 
	 	(b)  	specific reference(s) to the pertinent Plan provisions upon which the decision
was based; and
	 
	 	(c)  	Such other matters as the Plan Administrator deems relevant.

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

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ARTICLE 14

Trust

	14.1  	Establishment of the Trust. The Company shall establish the Trust, and each Employer
shall at least annually transfer over to the Trust such assets as the Employer determines, in
its sole discretion, are necessary to provide, on a present value basis, for its respective
future liabilities created with respect to the Annual Company Contribution Amounts for such
Employer’s Participants for all periods prior to the transfer, as well as any debits and
credits to the Participants’ Accounts for all periods prior to the transfer, taking into
consideration the value of the assets in the trust at the time of the transfer.

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

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

ARTICLE 15

Miscellaneous

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

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

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

	15.4  	Non-assignability. Neither a Participant nor any other person shall have any right
to commute, sell, assign, transfer, pledge, anticipate, mortgage or otherwise encumber,
transfer, hypothecate, alienate or convey in advance of actual receipt, the amounts, if any,
payable hereunder, or any part thereof, which are, and all rights to which are expressly
declared to be, unassignable and non-transferable. No part of the amounts payable shall,
prior to actual payment, be subject to

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Metris Companies Inc.

Supplemental Executive Retirement Plan

Master Plan Document

 

 

	   	seizure, attachment, garnishment or sequestration for
the payment of any debts, judgments, alimony or separate maintenance owed by a Participant or
any other person, be transferable by operation of law in the event of a Participant’s or any
other person’s bankruptcy or insolvency or be transferable to a spouse as a result of a
property settlement or otherwise.
	 
	 	 	 	 
	15.5  	Not a Contract of Employment. The terms and conditions of this Plan and any
Participation Agreement shall not be deemed to constitute a contract of employment between any
Employer and the Participant. Such employment is hereby acknowledged to be an “at will”
employment relationship that can be terminated at any time for any reason, or no reason, with
or without cause, and with or without notice, unless expressly provided in a written
employment agreement. Nothing in this Plan shall be deemed to give a Participant the right to
be retained in the service of any Employer as an Employee or to interfere with the right of
any Employer to discipline or discharge the Participant at any time.

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

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

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

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

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

Metris Companies Inc.

10900 Wayzata Blvd

Minnetonka, MN 55305

Attention: General Counsel

	   	Such notice shall be deemed given as of the date of delivery or, if delivery is made by
mail, as of the date shown on the postmark on the receipt for registration or certification.

	   	Any notice or filing required or permitted to be given to a Participant under this Plan
shall be sufficient if in writing and hand-delivered, or sent by mail, to the last known
address of the Participant.

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

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

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

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

	15.15  	Court Order. The Plan Administrator is authorized to make any payments directed by
court order in any action in which the Plan or the Plan Administrator has been named as a
party. In addition, if a court determines that a spouse or former spouse of a Participant has
an interest in the Participant’s benefits under the Plan in connection with a property
settlement or otherwise, the Plan Administrator, in its sole discretion, shall have the right,
notwithstanding any election made by a Participant, to immediately distribute the spouse’s or
former spouse’s interest in the Participant’s benefits under the Plan to that spouse or former
spouse.

	15.16  	Distribution in the Event of Taxation.

	 	(a)  	In General. If, for any reason, all or any portion of a Participant’s
benefits under this Plan becomes taxable to the Participant prior to receipt, a
Participant may petition the Plan Administrator before a Change in Control, or the
trustee of the Trust after a Change in Control, for a distribution of that portion of
his or her benefit that has become taxable. Upon the grant of such a petition, which
grant shall not be unreasonably withheld (and, after a Change in Control, shall be
granted), a Participant’s Employer shall distribute to the Participant immediately
available funds in an amount equal to the taxable portion of his or her benefit (which
amount shall not exceed a Participant’s unpaid Account under the Plan). The tax
liability distribution shall be made within 90 days of the date when the Participant’s
petition is granted. Such a distribution shall affect and reduce the benefits to be
paid under this Plan.

	 	(b)  	Trust. If the Trust terminates in accordance with its terms and
benefits are distributed from the Trust to a Participant, the Participant’s benefits
under this Plan shall be reduced to the extent of such distributions.

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Metris Companies Inc.

Supplemental Executive Retirement Plan

Master Plan Document

 

 

	15.17  	Insurance. The Employers, on their own behalf or on behalf of the trustee of the
Trust, and, in their sole discretion, may apply for and procure insurance on the life of the
Participant, in such amounts and in such forms as they may choose. The Employers or the
trustee of the Trust, as the case may be, shall be the sole owner and beneficiary of any such
insurance. The Participant shall have no interest whatsoever in any such policy or policies,
and at the request of the Employers shall submit to medical examinations and supply such
information and execute such documents as may be required by the insurance company or
companies to whom the Employers have applied for insurance.

	15.18  	Legal Fees To Enforce Rights after Change in Control. The Company and each Employer
is aware that upon the occurrence of a Change in Control, the Board or the board of directors
of a Participant’s Employer (which might then be composed of new members) or a shareholder of
the Company or the Participant’s Employer, or of any successor corporation might then cause or
attempt to cause the Plan Administrator, the Participant’s Employer or such successor to
refuse to comply with its obligations under the Plan and might cause or attempt to cause the
Company or the Participant’s Employer to institute, or may institute, litigation seeking to
deny Participants the benefits intended under the Plan. In these circumstances, the purpose
of the Plan could be frustrated. Accordingly, if, following a Change in Control, it should
appear to any Participant that the Company, the Participant’s Employer or any successor
corporation has failed to comply with any of its obligations under the Plan or any agreement
thereunder or, if the Company, such Employer or any other person takes any action to declare
the Plan void or unenforceable or institutes any litigation or other legal action designed to
deny, diminish or to recover from any Participant the benefits intended to be provided, then
the Company and the Participant’s Employer irrevocably authorize such Participant to retain
counsel of his or her choice at the expense of the Company and the Participant’s Employer (who
shall be jointly and severally liable) to represent such Participant in connection with the
initiation or defense of any litigation or other legal action, whether by or against the
Company, the Participant’s Employer or any director, officer, shareholder or other person
affiliated with the Company, the Participant’s Employer or any successor thereto in any
jurisdiction.

IN WITNESS WHEREOF, the Company has amended this Plan document effective as of
February 9, 2005.

	 	 	 	 	 
	 	“Company”

Metris Companies Inc., a Delaware corporation

 	 
	 	By:  	__________________________________
 	 
	 	 	 	 
	 	Title:  	__________________________________
 	 
	 

-23-<PAGE>

                                                                     EXHIBIT 10P

                               COGNEX CORPORATION

                           SUPPLEMENTAL RETIREMENT AND
                           DEFERRED COMPENSATION PLAN

                          EFFECTIVE AS OF APRIL 1, 1995

This Cognex Corporation Supplemental Retirement and Deferred Compensation Plan
(the "Plan") is adopted by Cognex Corporation (the "Employer") for certain of
its executive employees. The purpose of the Plan is to provide those employees
with supplement retirement income and to offer those employees an opportunity to
elect to defer the receipt of compensation in order to provide termination of
employment and related benefits taxable pursuant to Section 451 of the Internal
Revenue Code of 1986, as amended (the "Code"). The Plan is intended to be a
"top-hat" plan (i.e. an unfunded deferred compensation plan maintained for a
select group management or highly compensated employees) under Sections 201(2),
301(a)(3), and 401(a)(1) of the Employee Retirement Income Security Act of 1974
("ERISA").

Accordingly, the following Plan is adopted.

                            ARTICLE I -- DEFINITIONS

1.1 ACCOUNT means the balance credited to a Participant's or Beneficiary's Plan
account, including contribution credits and deemed income, gains, and losses (to
the extend realized as determined by the Employer, in its discretion) credited
thereto. A Participant's or Beneficiary's Account shall be determined as of the
date of reference.

1.2 BENEFICIARY means any person or persons so designated in accordance with the
provisions of Article VII.

1.3 CODE means the Internal Revenue Code of 1986 and the regulations thereunder,
as amended from time to time.

1.4 COMPENSATION means the total current cash remuneration paid by the Employer
to an Eligible Employee with respect to his or her service for the Employer (as
determined by the Employer).

1.5 DESIGNATION DATE means the date or dates as of which a designation of deemed
investment directions by an individual pursuant to Section 4.5, or any change in
a prior designation of deemed investment directions by an individual pursuant to
Section 4.5, shall become effective. The Designation Dates in any Plan Year
shall be designated by the Employer.

1.6 EFFECTIVE DATE means the effective date of the Plan, which shall be April 1,
1995.

<PAGE>

1.7 ELIGIBLE EMPLOYEE means, for any Plan Year (or applicable portion thereof),
a person employed by the Employer who is determined by the Employer to be a
member of a select group of management or highly compensated employees and who
is designated by the Employer to be an Eligible Employee under the Plan. By each
November 1, the Employer shall notify those individuals, if any, who will be
Eligible Employees for the next Plan Year. If the Employer determines that an
individual first becomes an Eligible Employee during a Plan Year, the Employer
shall notify such individual of its determination and of the date during the
Plan Year on which the individual shall first become an Eligible Employee.

1.8 EMPLOYER means Cognex Corporation and its successors and assigns unless
otherwise herein provided, or any other corporation or business organization
which, with the consent of Cognex Corporation, or its successors or assigns,
assumes the Employer's obligations hereunder, or any other corporation or
business organization which agrees, with the consent of Cognex Corporation, to
become a party to the Plan.

1.9 ENTRY DATE with respect to an individual means the first day of the pay
period following the date on which the individual first becomes an Eligible
Employee.

1.10 PARTICIPANT means any person so designated in accordance with the
provisions of Article II, including, where appropriate according to the context
of the Plan, any former employee who is or may become (or whose Beneficiaries
may become) eligible to receive a benefit under the Plan.

1.11 PARTICIPANT ENROLLMENT AND ELECTION FORM means the form on which a
Participant elects to defer Compensation hereunder and on which the Participant
makes certain other designations as required thereon.

1.12 PLAN means this Cognex Corporation Supplemental Retirement and Deferred
Compensation Plan, as amended from time to time.

1.13 PLAN YEAR means the twelve (12) month period ending on the December 31 of
each year during which the Plan is in effect.

1.14 TRUST means the trust fund established pursuant to the Plan.

1.15 TRUSTEE means the trustee named in the agreement establishing the Trust and
such successor and/or additional trustees as may be named pursuant to the terms
of the agreement establishing the Trust.

1.16 VALUATION DATE means the December 31 of each Plan Year and any other date
that the Employer, in its sole discretion, designates as a Valuation Date.

1.17 YEAR OF SERVICE shall mean a Plan Year in which the Participant has
completed at least 1,000 hours of service with the Employer.

<PAGE>

                   ARTICLE II -- ELIGIBILITY AND PARTICIPATION

2.1 REQUIREMENTS. Every Eligible Employee on the Effective Date shall be
eligible to become a Participant on the Effective Date. Every other Eligible
Employee shall be eligible to become a Participant on the first Entry Date
occurring on or after the date on which he or she becomes an Eligible Employee.
No individual shall become a Participant, however, if he or she is not an
Eligible Employee on the date his or her participation is to begin.

Participation in the Plan is voluntary. In order to participate, an otherwise
eligible Employee must make written application in such manner as may be
required by Section 3.1 and by the Employer and must agree to make Compensation
Deferrals as provided in Article III.

2.2 RE-EMPLOYMENT. If a Participant whose employment with the Employer is
terminated is subsequently re-employed, he or she shall become a Participant in
accordance with the provisions of Section 2.1.

2.3 CHANGE OF EMPLOYMENT CATEGORY. During any period in which a Participant
remains in the employ of the Employer, but ceases to be an Eligible Employee, he
or she shall not be eligible to make Compensation Deferrals hereunder.

                    ARTICLE III -- CONTRIBUTIONS AND CREDITS

3.1 PARTICIPANT COMPENSATION DEFERRALS. In accordance with rules established by
the Employer, a Participant may elect to defer Compensation which is due to be
earned and which would otherwise be paid to the Participant, in a lump sum or in
any fixed periodic dollar amounts designated by the Participant. Amounts so
deferred will be considered a Participant's "Compensation Deferrals."
Ordinarily, a Participant shall make such an election with respect to a coming
twelve (12) month Plan Year during the period beginning on the November 1 and
ending on the November 30 of the prior Plan Year, or during such other period
established by the Employer.

Compensation Deferrals shall be made through regular payroll deductions or
through an election by the Participant to defer the payment of a bonus not yet
payable to him or her at the time of the election. The Participant may reduce
his or her payroll deduction Compensation Deferral amount as of, and by written
notice delivered to the Employer at least thirty (30) days prior to, the
beginning of any regular payroll period, with such reduction being first
effective for Compensation to be earned in that payroll period. Once made, a
Compensation Deferral payroll deduction election shall continue in force
indefinitely, until changed by the Participant on a subsequent Participant
Enrollment and Election Form provided by the Employer. Compensation Deferrals
shall be deducted by the Employer from the pay of a deferring Participant and
shall be credited to the Account of the deferring Participant.

There shall be established and maintained by the Employer a separate Plan
Account in the name of each Participant, which shall at all times be one hundred
percent (100%) vested in the Participant, and to which shall be credited or
debited: (a) amounts equal to the Participant's

<PAGE>

Compensation Deferrals, and (b) amounts equal to any deemed income, gains, or
losses (to the extent realized, based upon deemed fair market value of the
Account's deemed assets, as determined by the Employer, in its discretion)
attributable or allocable to (a). The Employer shall have the discretion to
allocate such deemed income, gains, or losses among Plan Accounts pursuant to
such allocation rules as the Employer deems to be reasonable and
administratively practicable.

Amounts equal to the Compensation Deferrals will be paid by the Employer to the
Trust with reasonable promptness after the total of such Compensation Deferrals
during any month or other period has been determined.

                        ARTICLE IV -- ALLOCATION OF FUNDS

4.1 ALLOCATION OF DEEMED EARNINGS OR LOSSES ON ACCOUNTS. Pursuant to Section
4.5, each Participant shall have the right to direct the Employer as to how
amounts in his or her Plan Account shall be deemed to be invested. In such a
case, the Employer shall direct the Trustee to invest the Account maintained in
the Trust on behalf of the Participant pursuant to the direction the Employer
has received from that Participant. The Participant's Plan Account will be
credited or debited with the increase or decrease in the realizable net asset
value or credited interest, as applicable, of the designated deemed investments,
as follows. As of each Valuation Date, an amount equal to the net increase or
decrease in realizable net asset value or credited interest, as applicable (as
determined by the employer), of each deemed investment option within the Trust
since the preceding Valuation Date shall be allocated among all Participant's
Accounts deemed to be invested in that investment option in accordance with the
ratio which the portion of the Account of each Participant which is deemed to be
invested within that investment option, determined as provided herein, bears to
the aggregate of all amounts deemed to be invested that investment option.

4.2 ACCOUNTING FOR DISTRIBUTIONS. As of the date of any distribution hereunder,
the distribution to a Participant or his or her Beneficiary or Beneficiaries
shall be charged to such Participant's Account.

4.3 SEPARATE ACCOUNTS. A separate account under the Plan shall be established
and maintained by the Employer to reflect the Account for each Participant with
sub-accounts to show separately the deemed earnings and losses credited or
debited to such Account and the applicable deemed investments of the Account.

4.4 INTERIM VALUATIONS. If it is determined by the Employer that the value of
the Trust as of any date on which distributions are to be made differs
materially from the value of the Trust on the prior Valuation Date upon which
the distribution is to be based, the Employer, in its discretion, shall have the
right to designate any date in the interim as a Valuation Date for the purpose
of revaluing the Trust so that the Account from which the distributions being
made will, prior to the distribution, reflect its share of such material
difference in value.

<PAGE>

4.5 DEEMED INVESTMENT DIRECTIONS OF PARTICIPANTS. Subject to such limitations
as may from time to time be required by law, imposed by the Employer or the
Trustee, or contained elsewhere in the Plan, and subject to such operating rules
and procedures as may be imposed from time to time by the Employer or the
Trustee, prior to and effective for each Designation Date, each Participant may
communicate to the Employer a direction as to how his or her Account should be
deemed to be invested among such categories as deemed investments as may be made
available by the Employer hereunder. Such direction shall designate the
percentage (in ten percent multiples) of each portion of the Participant's
Account which is requested to be deemed to be invested in such categories as
deemed investments, and shall be subject to the following rules:

      (a)   Any initial or subsequent deemed investment direction shall be in
            writing, or on a form supplied by and filed with the Employer, and
            shall be effective as of the next Designation Date which is at least
            ten (10) business days after such filing.

      (b)   All amounts credited to the Participant's Account shall be deemed
            to be invested in accordance with the then effective deemed
            investment direction, and as of the effective date of any new deemed
            investment direction, all or a portion of the Participant's Account
            at that date shall be reallocated among the designated deemed
            investment funds according to the percentages specified in the new
            deemed investment direction shall be filed and become effective. An
            election concerning deemed investment choices shall continue
            indefinitely as provided in the Participant's most recent
            Participant Enrollment and Election Form, or other form specified by
            the Employer.

      (c)   If the Employer receives an initial or revised deemed investment
            direction which it deems to be incomplete, unclear, or improper, the
            Participant's investment direction then in effect shall remain in
            effect (or, in the case of deficiency in an initial deemed
            investment direction, the Participant shall be deemed to have filed
            no deemed investment direction) until the next Designation Date,
            unless the Employer provides for, and permits the application of,
            corrective action prior thereto.

      (d)   If the Employer possesses at any time directions as to the deemed
            investment of less than all of a Participant's Account, the
            Participant shall be deemed to have directed that the undesignated
            portion of the Account be deemed to be invested in a money market,
            fixed income, or similar fund made available under the Plan as
            determined by the Employer in its discretion.

      (e)   Each Participant hereunder, as a condition to his or her
            participation hereunder agrees to indemnify and hold harmless the
            Employer and its agents and representatives from any losses or
            damages of any kind relating to the deemed investment of the
            Participant's Account hereunder.

<PAGE>

      (f)   Each reference in this Section to a Participant shall be deemed to
            include, where applicable, a reference to a Beneficiary.

                      ARTICLE V -- ENTITLEMENT TO BENEFITS

5.1 TERMINATION OF EMPLOYMENT. If a Participant terminates employment with the
Employer for any reason, the Participant's Plan Account at the date of
termination shall be valued and payable according to the provisions of Article
VI.

5.2 CHANGE OF CONTROL. If a Change of Control of the Employer occurs, the
participant's Plan Account at the date of the Change of Control shall be valued
and payable according to the provisions of Article VI. For purposes of this
Section, a "Change of Control" shall occur when there is a purchase or other
acquisition by any person, entity or group of persons, within the meaning of
section 13(d) of the Securities Exchange Act of 1934 ("Act"), or any comparable
successor provisions, or beneficial ownership (within the meaning of Rule 13d-3.
promulgated under the Act) of 30 percent or more of either the outstanding
shares of common stock or the combined voting power of Employer's then
outstanding voting securities entitled to vote generally, or the approval by the
stockholders of Employer of a reorganization, merger, or consolidation, in each
case, with respect to which persons who were stockholders of Employer
immediately prior to such reorganization, merger or consolidation do not,
immediately thereafter, own more than 50 percent of the combined voting power
entitled to vote generally in the election of directors of the reorganized,
merged or consolidated Employer's then outstanding securities, or a liquidation
or dissolution of Employer or of the sale of all or substantially all of
Employer's assets.

5.3 HARDSHIP DISTRIBUTIONS. In the event of financial hardship of the
Participant, as hereinafter defined, the Participant may apply to the Employer
for the distribution of all or any part of his or her Account. The Employer
shall consider the circumstances of each such case, and the best interests of
the Participant and his or her family, and shall have the best interests of the
Participant and his or her family, and shall have the right, in its sole
discretion, if applicable, to allow such distribution, or, if applicable, to
direct a distribution of part of the amount requested, or to refuse to allow any
distribution. Upon a finding of financial hardship, the Employer shall instruct
the Trustee to make the appropriate distribution to the Participant from amounts
contributed to the Trust by the Employer in respect of the Participant's
Account. In no event shall the aggregate amount of the distribution exceed
either the full value of the Participant's Account or the amount determined by
the Employer to be necessary to alleviate the Participant's financial hardship
(which financial hardship may be considered to include any taxes due because of
the distribution occurring because of this Section), and which is not reasonably
available from other resources of the Participant. For purposes of this Section,
the value of the Participant's Account shall be determined as of the date of
the distribution. "Financial hardship" means (a) a severe financial hardship to
the Participant resulting from a sudden and unexpected illness or accident of
the Participant or of a dependent (as defined in Code Section 152(a)) of the
Participant, (b) loss of the Participant's property due to casualty, or (c)
other similar extraordinary and unforeseeable circumstances arising as a result
of events beyond the control of the

<PAGE>

Participant, each as determined to exist by the Employer. A distribution may be
made under Section 5.3 only with the consent of the Employer's board of
directors.

5.4 DISABILITY. In the event that the Participant incurs a Disability, as
hereinafter defined, the Participant may apply to the Employer for the
distribution of all or any part of his or her Account. Upon a finding of a
Disability, the Employer shall instruct the Trustee to make the appropriate
distribution to the Participant from amounts contributed to the Trust by the
Employer in respect of the Participant's Account. For purposes of this Section
5.4, a "Disability" means a physical impairment which would be expected to
prevent the Participant from performing the duties of his job with the Employer
for a period of at least six months as determined by a physican which is
selected by the Employer. A distribution may be made under this Section 5.4 only
with the consent of the Employer's board of directors.

5.5 RETIREMENT. A Participant who has attained his or her Retirement Date, as
hereinafter defined, may apply to the Employer for the distribution of all or
any part of his or her Account. For purposes of this Section 5.5, "Retirement
Date," shall mean the date on which the Participant has attained age fifty (50)
and has completed at least five Years of Service with the Employer.

5.6 RE-EMPLOYMENT OF RECIPIENT. If a Participant receiving installment
distributions pursuant to Section 6.2 is re-employed by the Employer, the
remaining distributions due to the Participant shall be suspended until such
time as the Participant (or his or her Beneficiary) once again becomes eligible
for benefits under Article V, at which time such distribution shall commence,
subject to the limitations and conditions contained in this Plan.

                     ARTICLE VI -- DISTRIBUTION OF BENEFITS

6.1 AMOUNT. A Participant (or his or her Beneficiary) shall become entitled to
receive, on or about the date of the Participant's termination of employment
with the Employer, a distribution in an aggregate amount equal to the
Participant's Account, which amount, depending on (a) the performance of the
deemed investments elected from time to time by the Participant, the
Beneficiary, and/or the Employer, as applicable, and (b) the extent to which the
investments of the Trust relating to the Participant's deemed investments under
Sections 4.1 and 4.5 actually are realized by the Trust, may be less than, equal
to, or greater than the aggregate amount of the Participant's Compensation
Deferrals. Any payment due hereunder from the Trust which is not paid by the
Trust will be paid by the Employer from its general assets.

6.2 METHOD OF PAYMENT.

      (a)   Cash Payments. All payments under the Plan shall be made in cash.

      (b)   Timing and Manner of Payment. In the case of distributions to a
            Participant or his or her Beneficiary by virtue of an entitlement
            pursuant to Section 5.1, 5.2, 5.3, or 5.4 an aggregate amount equal
            to the Participant's Account will be paid by the Trust or the
            Employer, as provided by Section 6.1, in a single lump sum. In the

<PAGE>

            event a Participant becomes entitled to benefits under Section 5.5,
            an aggregate amount equal to the Participant's Account will be paid
            by the Trust or the Employer, as provided by Section 6.1, in a lump
            sum, on or about the date of the Participant's termination, or in
            annual installments made over a period elected by the Participant
            but not to exceed five years, provided such election is made at
            least 12 months prior to his Retirement Date or termination of
            employment. If such election is not made in accordance with the
            preceding sentence, the Participant's Account will be paid in a lump
            sum. If a Participant fails to designate properly the manner of
            payment of the Participant's benefit under the Plan, such payment
            will be in a lump sum on or about the date of the Participant's
            termination of employment with the Employer.

If the whole or any part of a payment hereunder by the Trust of the Employer is
to be in installments, the total to be so paid shall continue to be deemed to be
invested pursuant to Sections 4.1 and 4.5 under such procedures as the Employer
may establish, in which case, subject to limitations of Section 6.1, any deemed
income, gain, or loss attributable thereto (to the extent realized, as
determined by the Employer, in its discretion) shall be reflected in the
installment payments, in such equitable manner as the Employer shall determine.

6.3 DEATH BENEFITS. If a Participant dies before terminating his or her
employment with the Employer and before the commencement of payments to the
Participant hereunder, the Participant's Account shall be distributed in a
single lump sum payment, as provided in Section 6.2, to the person or persons
designated in accordance with Section 7.1.

Upon the death of a Participant after payments hereunder have begun but before
he or she has received all payments to which he or she is entitled under the
Plan, the remaining benefit payments shall be paid to the person or persons
designated in accordance with Section 7.1, in the form of a single lump sum.

                 ARTICLE VII -- BENEFICIARIES; PARTICIPANT DATA

7.1 DESIGNATION OF BENEFICIARIES. Each Participant from time to time may
designate any person or persons (who may be named contingently or successively)
to receive such benefits as may be payable under the Plan upon or after the
Participant's death, and such designation may be changed from time to time by
the Participant by filing a new designation. Each designation will revoke all
prior designations by the same Participant, shall be in a form prescribed by the
Employer, and will be effective only when filed in writing with the Employer
during the Participant's lifetime.

In the absence of a valid Beneficiary designation, or if, at the time any
benefit payment is due to a Beneficiary, there is no living Beneficiary validly
named by the Participant, the Employer shall pay any such benefit payment to the
Participant's spouse, if then living, but otherwise to the Participant's living
descendants, if any, per stripes, but, if none, to the Participant's estate. In
determining the existence or identity of anyone entitled to a benefit payment,
the Employer may rely conclusively upon information supplied by the
Participant's personal representative,

<PAGE>

executor, or administrator. If a question arises as to the existence or identity
of anyone entitled to receive a benefit payment as aforesaid, or if a dispute
arises with respect to any such payment, then notwithstanding the foregoing, the
Employer, in its sole discretion, may distribute such payment to the
Participant's estate without liability for any tax or other consequences which
might flow therefrom, or may take such other action as the Employer deems to be
appropriate.

7.2 INFORMATION TO BE FURNISHED BY PARTICIPANTS AND BENEFICIARIES; INABILITY TO
LOCATE PARTICIPANTS OR BENEFICIARIES. Any communication, statement, or notice
addressed to a Participant or to a Beneficiary at his or her last post office
address as down on the Employer's records shall be binding on the Participant or
Beneficiary for all purposes of the Plan. The Employer shall not be obliged to
search for any Participant or Beneficiary beyond the sending of a registered
letter to such last known address. If the Employer notifies any Participant or
Beneficiary that he or she is entitled to an amount under the Plan and the
Participant or Beneficiary fails to claim such amount or make his or her
location known to the Employer within three (3) years thereafter, then, except
as otherwise required by law, if the location of one or more of the next of kin
of the Participant is known to the Employer, the Employer may direct
distribution of such amount to any one or more or all of such next of kin, and
in such proportions as the Employer determines. If the location of none of the
foregoing persons can be determined, the Employer shall have the right to direct
that the amount payable shall be deemed to be a forfeiture, except that the
dollar amount of the forfeiture, unadjusted for deemed gains or losses in the
interim, shall be paid by the Employer if a claim for the benefit subsequently
is made by the Participant or the Beneficiary to whom it was payable. If a
benefit payable to an unlocated Participant or Beneficiary is subject to escheat
pursuant to applicable state law, the Employer shall not be liable to any person
for any payment made in accordance with such law.

                            ARTICLE VIII -- THE TRUST

8.1 ESTABLISHMENT OF TRUST. The Employer shall establish the Trust with the
Trustee, pursuant to such terms and conditions as are set forth in the Trust
agreement to be entered into between the Employer and the Trustee. The Trust is
intended to be treated as a "grantor" trust under the Code, and the
establishment of the Trust is not intended to cause Participants to realize
current income on amounts contributed thereto, and the Trust shall be so
interpreted.

                          ARTICLE IX -- ADMINISTRATION

9.1 ADMINISTRATIVE AUTHORITY. Except as otherwise specifically provided herein,
the Employer shall have the sole responsibility for and the sole control of the
operation and administration of the Plan, and shall have the power and authority
to take all action and to make all decisions and interpretations which may be
necessary or appropriate in order to administer and operate the Plan, including,
without limiting the generality of the foregoing, the power, duty, and
responsibility to:

<PAGE>

      (a)   Resolve and determine all disputes or questions arising under the
            Plan, including the power to determine the rights of Eligible
            Employees, Participants, and Beneficiaries, and their respective
            benefits, and to remedy any ambiguities, inconsistencies, or
            omissions in the Plan.

      (b)   Adopt such rules of procedure and regulations as in its opinion may
            be necessary for the proper and efficient administration of the Plan
            and as are consistent with the Plan.

      (c)   Implement the Plan in accordance with its terms and the rules and
            regulations adopted as above.

      (d)   Make determinations with respect to the eligibility of any Eligible
            Employee as a Participant and make determinations concerning the
            crediting and distribution of Plan Accounts.

      (e)   Appoint any persons or firms, or otherwise act to secure specialized
            advice or assistance, as it deems necessary or desirable in
            connection with the administration and operation of the Plan, and
            the Employer shall be entitled to rely conclusively upon, and shall
            be fully protected in any action or omission taken by it in good
            faith reliance upon, the advice or opinion of such firms or persons.
            The Employer shall have the power and authority to delegate from
            time to time by written instrument all or any part of its duties,
            powers, or responsibilities under the Plan, both ministerial and
            discretionary, as it deems appropriate, to any person or committee,
            and in the same manner to revoke any such delegation of duties,
            powers, or responsibilities. Any action of such person or committee
            in the exercise of such delegated duties, powers, or
            responsibilities shall have the same force and effect for all
            purposes hereunder as if such action had been taken by the Employer.
            Further, the Employer may authorize one or more persons to execute
            any certificate or document on behalf of the Employer, in which
            event any person notified by the Employer of such authorization
            shall be entitled to accept and conclusively rely upon any such
            certificate or document executed by such person as representing
            action by the Employer until such third person shall have been
            notified of the revocation of such authority.

9.2 MUTUAL EXCLUSION OF RESPONSIBILITY. Neither the Trustee nor the Employer
shall be obliged to inquire into or be responsible for any act or failure to
act, or the authority therefor, on the part of the other.

9.3 UNIFORMITY OF DISCRETIONARY ACTS. Whenever in the administration or
operation of the Plan discretionary actions by the Employer are required or
permitted, such actions shall be consistently and uniformly applied to all
persons similarly situated, and no such action shall be taken which shall
discriminate in favor of any particular person or group of persons.

<PAGE>

9.4 LITIGATION. Except as may be otherwise required by law, in any action or
judicial proceeding affecting the Plan, no Participant or Beneficiary shall be
entitled to any notice or service of process, and any final judgment entered in
such action shall be binding on all persons interested in, or claiming under,
the Plan.

9.5 PAYMENT OF ADMINISTRATION EXPENSES. All expenses incurred in the
administration and operation of the Plan and the Trust, including any taxes
payable by the Employer in respect of the Plan or Trust or payable by or from
the Trust pursuant to its terms, shall be paid by the Employer.

9.6 CLAIMS PROCEDURE. Any person claiming a benefit under the Plan
(a "Claimant") shall present the claim, in writing, to the Employer, and the
Employer shall respond in writing. If the claim is denied, the written notice of
denial shall state, in a manner calculated to be understood by the Claimant:

      (a)   The specific reason or reasons for the denial, with specific
            references to the Plan provisions on which the denial is based;

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

      (c)   An explanation of the Plan's claims review procedure.

The written notice denying or granting the Claimant's claim shall be provided to
the Claimant within ninety (90) days after the Employer's receipt of the claim,
unless special circumstances require an extension of time for processing the
claim. If such an extension is required, written notice of the extension shall
be furnished by the Employer to the Claimant within the initial ninety (90) day
period and in no event shall such an extension exceed a period of ninety(90)
days from the end of the initial ninety (90) day period. Any extension notice
shall indicate the special circumstances requiring the extension and the date on
which the Employer expects to render decision on the claim. Any claim not
granted or denied within the period noted above shall be deemed to have been
denied.

Any Claimant whose claim is denied, or deemed to have been denied under the
preceding sentences (or such Claimant's authorized representative), may, within
sixty (60) days after the Claimant's receipt of notice of the denial, or after
the date of the deemed denial, request a review of the denial by notice given,
in writing, to the Employer. Upon such a request for review, the claim shall be
reviewed by the Employer (or its designated representative), which may, but
shall not be required to, grant the Claimant a hearing. In connection with the
review, the Claimant may have representation, may examine pertinent documents,
and may submit issues and comments in writing.

The decision on review normally shall be made within sixty (60) days of the
Employer's receipt of the request for review. If an extension of time is
required due to special circumstances, the Claimant shall be notified, in
writing, by the Employer, and the time limit for the decision on review shall be
extended to one hundred twenty (120) days. The decision on review shall be in
writing and shall state, in a manner calculated to be understood by the
Claimant, the specific

<PAGE>

reasons for the decision and shall include references to the relevant Plan
provisions on which the decision is based. The written decision on review shall
be given to the Claimant within the sixty (60) day (or, if applicable, the one
hundred twenty (120) day) time limit discussed above. If the decision on review
is not communicated to the Claimant within the sixty (60) day (or, if
applicable, the one hundred twenty (120) day) period discussed above, the claim
shall be deemed to have been denied upon review. All decisions on review shall
be final and binding with respect to all concerned parties.

                             ARTICLE X -- AMENDMENT

10.1 RIGHT TO AMEND. The Employer, by written instrument executed by the
Employer, shall have the right to amend the Plan, at any time and with respect
to any provisions hereof, and all parties hereto or claiming any interest
hereunder shall be bound by such amendment; provided, however, that no such
amendment shall deprive a Participant or a Beneficiary of a right accrued
hereunder prior to the date of the amendment.

10.2 AMENDMENTS TO ENSURE PROPER CHARACTERIZATION OF PLAN. Notwithstanding the
provisions of Section 10.1, the Plan and the Trust agreement may be amended by
the Employer at any time, retroactively if required, if found necessary, in the
opinion of the Employer, in order to ensure that the Plan is characterized as
"top-hat" plan of deferred compensation maintained for a select group of
management or highly compensated employees as described under ERISA Sections
201(2), 301(a)(3), and 401(a)(1), and to conform the Plan to the provisions and
requirements of any applicable law (including ERISA and the Code). No such
amendment shall be considered prejudicial to any interest of a Participant or a
Beneficiary hereunder.

                            ARTICLE XI -- TERMINATION

11.1 EMPLOYER'S RIGHT TO TERMINATE OR SUSPEND PLAN. The Employer reserves the
right, at any time, to terminate the Plan and/or its obligation to make further
credits to Plan accounts. The Employer also reserves the right, at any time, to
suspend the operation of the Plan for a fixed or indeterminate period of time.

11.2 AUTOMATIC TERMINATION OF PLAN. The Plan, but not the Trust, automatically
shall terminate upon the dissolution of the Employer, or upon its merger into or
consolidation with any other corporation or business organization if there is a
failure by the surviving corporation or business organization to adopt
specifically and agree to continue the Plan.

11.3 SUSPENSION OF DEFERRALS. In the event of a suspension of the Plan, the
Employer shall continue all aspects of the Plan, other than Compensation
Deferrals under Section 3.1 during the period of the suspension, in which event
payments hereunder will continue to be made during the period of the suspension
in accordance with Articles V and VI.

11.4 ALLOCATION AND DISTRIBUTION. This Section shall become operative upon a
complete termination of the Plan. The provisions of this Section also shall
become operative in the event of a partial termination of the Plan, as
<PAGE>
determined by the Employer, but only with respect to that portion of the Plan
attributable to the Participants to whom the partial termination is applicable.
Upon the effective date of any such event, notwithstanding any other provisions
of the Plan, no persons who were not theretofore Participants shall be eligible
to become Participants, the value of the interest of all Participants and
Beneficiaries shall be determined and, after deduction of estimated expenses in
liquidating and, if applicable, paying Plan benefits, paid to them as soon as is
practicable after such termination.

11.5 SUCCESSOR TO EMPLOYER. Any corporation or other business organization which
is a successor to the Employer by reason of a consolidation, merger, or purchase
of substantially all of the assets of the Employer shall have the right to
become a party to the Plan by adopting the same resolution of the entity's board
of directors or other appropriate governing body. If, within ninety (90) days
from the effective date of such consolidation, merger, or sale of assets, such
new entity does not become a party hereto, as above provided, the Plan
automatically shall be terminated, and the provisions of Section 10.4 shall
become operative.

                          ARTICLE XII -- MISCELLANEOUS

12.1 LIMITATIONS ON LIABILITY OF EMPLOYER. Neither the establishment of the Plan
nor any modification thereof, not the creation of any account under the Plan,
not the payment of any benefits under the Plan shall be construed as giving to
any Participant or other person any legal or equitable right against the
Employer, or any officer or employer thereof except as provided by law or by any
Plan provision. The Employer does not in any way guarantee any Participant's
Account from loss or depreciation, whether caused by poor investment performance
of a deemed investment or the inability to realize upon an investment due to an
insolvency affecting an investment vehicle or any other reason. In no event
shall the Employer, or any successor, employee, officer, director, or
stockholder of the Employer, be liable to any person on account of any claim
arising by reason of the provisions of the Plan or of any instrument or
instruments implementing its provisions, or for the failure of any Participant,
Beneficiary, or other person to be entitled to any particular tax consequences
with respect to the Plan, or any credit or distribution hereunder.

12.2 CONSTRUCTION. If any provision of the Plan is held to be illegal or void,
such illegality or invalidity shall not affect the remaining provisions of the
Plan, but shall be fully severable, and the Plan shall be construed and enforced
as if said illegal or invalid provision had never been inserted herein. For all
purposes of the Plan, where the context admits, the singular shall include the
plural, and the plural shall include the singular. Headings of Articles and
Sections herein are inserted only for convenience of reference and are not to be
considered in the construction of the Plan. The laws of the Commonwealth of
Massachusetts shall govern, control, and determine all questions of law arising
with respect to the Plan and interpretation and validity of its respective
provisions, except where those laws are preempted by the laws of the United
States. Participation under the Plan will not give any Participant the right to
be retained in the service of the Employer nor any right or claim to any benefit
under the Plan unless such right or claim has specifically accrued hereunder.
<PAGE>
12.3 SPENDTHRIFT PROVISION. No amount payable to a Participant or a Beneficiary
under the Plan will, except as otherwise specifically provided by law, be
subject in any manner to anticipation, alienation, attachment, garnish, sale,
transfer, assignment (either at law or in equity), levy, execution, pledge,
encumbrance, charge, or any other legal or equitable process, and any attempt to
do so will be void; nor will any benefit be in any manner liable for or subject
to the debts, contracts, liabilities, engagements, or torts of the person
entitled thereto. Further (i) the withholding of taxes from Plan benefit
payments, (ii) the recovery under the Plan of overpayments of benefits
previously made to a Participant or Beneficiary, (iii) if applicable, the
transfer of benefit rights from the Plan to another plan, or (iv) the direct
deposit of benefit payments to an account in a banking institution (if not
actually part of an arrangement constituting an assignment or alienation) shall
not be construed as an assignment or alienation.

In the event that any Participant's or Beneficiary's benefits hereunder are
garnished or attached by order of the court, the Employer may bring action or a
declaratory judgment in a court of competent jurisdiction to determine the
proper recipient of the benefits to be paid under the Plan. During the pendency
of said action, any benefits that become payable shall be held as credits to the
Participant's or Beneficiary's Account or, if the Employer prefers, paid into
the court as they become payable, to be distributed by the court to the
recipient as the court deems proper at close of said action.

IN WITNESS THEREOF, the Employer has caused the Plan to be executed and its seal
to be affixed hereto, effective as of the 1st day of the April, 1995.

ATTEST/WITNESS                              Cognex Corporation

/s/ JoAnn Woodyard                          By: /s/ John J. Roger Jr.
--------------------------                      -------------------------

Print Name: JoAnn Woodyard                  Print Name: John J. Roger Jr.
            --------------                              -----------------

                                            Date: June 1, 1995
                                                  ------------

[SEAL]

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