Document:

Exhibit 10.14

 

AMENDMENT 2005-1

 

TO THE

 

HILTON HOTELS CORPORATION

DIRECTORS’ STOCK AND DEFERRED RETAINER PLAN

 

THIS AMENDMENT 2005-1 is
made this 15th day of November, 2005, by Hilton Hotels Corporation, a Delaware
corporation (the “Plan Sponsor”).

 

WHEREAS, the Plan Sponsor
has established and maintains the Hilton Hotels Corporation Directors’ Stock
and Deferred Retainer Plan (the “Plan”) for the benefit of its eligible
directors; and

 

WHEREAS, the Plan Sponsor
has reserved the right to amend the Plan pursuant to Section 7.7 thereof;
and

 

WHEREAS, the Plan Sponsor
desires to amend Section 3.3 of the Plan to reflect that for the 2005
calendar year, members of the Board were permitted to elect to participate in
the Plan for the third and fourth fiscal quarters of 2005 by submitting a
deferral election by March 15, 2005, in accordance with the transition
guidance in Notice 2005-1 issued by the Internal Revenue Service under section 409A
of the Internal Revenue Code of 1986, as amended; and

 

WHEREAS, the plan Sponsor
desires to amend Section 7.7 of the Plan to conform to its practice that
the Board has the authority to amend the Plan.

 

NOW, THEREFORE, the Plan
is amended as follows:

 

1.  Effective as of January 1, 2005, Section 3.3
is hereby amended to add the following provision after the end of the existing Section 3.3:

 

 

3.3                                 Notwithstanding
the foregoing, Directors may elect to participate in the Plan for the third and
fourth fiscal quarter of the 2005 calendar year by executing and filing an
Enrollment and Distribution Agreement with the Administrator no later than March 15,
2005.

 

2.  Section 7.7 is hereby amended to replace
the references to the “Administrator” with references to the “Board.”

 

3.  In all respects not amended, the plan is
hereby ratified and affirmed.

 

IN WITNESS WHEREOF, the
Plan Sponsor has caused this Amendment 2005-1 to be executed on the day and
year first above written.

 

 

	
   

  	
  HILTON HOTELS
  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Molly
  McKenzie SwartsExhibit 10.27

 

AMENDMENT 2005-1

TO THE

HILTON HOTELS EXECUTIVE DEFERRED COMPENSATION PLAN

 

THIS AMENDMENT 2005-1 is
made this 20th day of December, 2005, by Hilton Hotels Corporation, a Delaware
corporation (the “Company”).

 

WHEREAS, the Company has
established and maintains the Hilton Hotels Executive Deferred Compensation
Plan (the “1997 Plan”) for the benefit of its eligible employees; and

 

WHEREAS, the Company
desires to amend Section 4.2 of the 1997 Plan, in accordance with its
authority with respect thereto, to provide that Company Contributions (as
defined in the 1997 Plan) that were not earned and vested for purposes of section 409A
of the Internal Revenue Code of 1986, as amended (the “Code”) as of December 31,
2004 are to be transferred to the Hilton Hotels 2005 Executive Deferred
Compensation Plan (the “2005 Plan”) as of January 1, 2005 and that the
terms of the 2005 Plan shall govern the Company Contributions in all respects.

 

NOW, THEREFORE, the 1997 Plan
is amended as follows:

 

1.  Effective as of January 1, 2005, Section 4.2
is hereby amended to add the following provision after the end of the existing Section 4.2:

 

Notwithstanding the
foregoing, effective as of January 1, 2005, for each Participant who had Company
Contributions under the Plan that were not earned and vested for purposes of section 409A
of the Internal Revenue Code of 1986, as amended (the “Code”) as of December 31,
2004, those Company Contributions have been credited to the Participant’s
Account under the Hilton Hotels 2005 Executive Deferred Compensation Plan (the “2005
Plan”) as of January 1, 2005 and the terms of the 2005 Plan shall govern those
Company Contributions in all respects.

 

 

2.  In all respects not amended, the 1997 Plan is
hereby ratified and affirmed.

 

IN WITNESS WHEREOF, the Company
has caused this Amendment 2005-1 to be executed on the day and year first above
written.

 

 

	
   

  	
  HILTON HOTELS
  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Molly
  McKenzie Swarts

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Its:

  	
  Senior Vice PresidentExhibit 10.28

 

 

HILTON HOTELS

2005 EXECUTIVE DEFERRED COMPENSATION PLAN

 

(As Amended and Restated Effective as of January 1,
2005)

 

 

HILTON HOTELS

EXECUTIVE DEFERRED COMPENSATION PLAN

 

TABLE OF CONTENTS

 

	
   

  	
  Page

  
	
   

  	
   

  
	
  ARTICLE I TITLE AND DEFINITIONS

  	
  1

  
	
   

  	
   

  
	
  1.1 – Title

  	
  1

  
	
   

  	
   

  
	
  1.2 - Definitions

  	
  1

  
	
   

  	
   

  
	
  ARTICLE II
  PARTICIPATION

  	
  6

  
	
   

  	
   

  
	
  ARTICLE III
  DEFERRAL ELECTIONS

  	
  7

  
	
   

  	
   

  
	
  3.1 - Elections to Defer Compensation

  	
  7

  
	
   

  	
   

  
	
  3.2 – Distribution Elections

  	
  9

  
	
   

  	
   

  
	
  3.3 - Investment Elections

  	
  12

  
	
   

  	
   

  
	
  3.4 – Subsequent Elections

  	
  13

  
	
   

  	
   

  
	
  3.5 – Cancellation of Elections

  	
  14

  
	
   

  	
   

  
	
  3.6 – New Payment Elections

  	
  14

  
	
   

  	
   

  
	
  ARTICLE IV
  DISTRIBUTION OPTION ACCOUNTS

  	
  15

  
	
   

  	
   

  
	
  4.1 - Compensation Deferrals

  	
  15

  
	
   

  	
   

  
	
  4.2 - Company Contribution

  	
  15

  
	
   

  	
   

  
	
  4.3 - Investment Return

  	
  17

  
	
   

  	
   

  
	
  ARTICLE V
  VESTING

  	
  17

  
	
   

  	
   

  
	
  5.1 - Compensation Deferral

  	
  17

  
	
   

  	
   

  
	
  5.2 - Company Contribution

  	
  17

  
	
   

  	
   

  
	
  ARTICLE VI
  DISTRIBUTIONS

  	
  18

  
	
   

  	
   

  
	
  6.1 – Form and Timing of Distribution

  	
  18

  
	
   

  	
   

  
	
  6.2 – Small Benefit Cashout

  	
  19

  
	
   

  	
   

  
	
  6.3 – Payout

  	
  20

  
	
   

  	
   

  
	
  6.4 – Distributions to Key Employees

  	
  21

  
	
   

  	
   

  
	
  6.5 – Financial Hardship of Participant

  	
  21

  
	
   

  	
   

  
	
  6.6 – Permissible Distribution Event

  	
  22

  
	
   

  	
   

  
	
  6.7 - Payment by Trust

  	
  22

  
	
   

  	
   

  
	
  6.8 - Inability to Locate Participant

  	
  23

  
	
   

  	
   

  
	
  ARTICLE VII
  CHANGE IN CONTROL

  	
  23

  

 

i

 

	
   

  	
  Page

  
	
   

  	
   

  
	
  ARTICLE VIII
  DEATH BENEFITS

  	
  24

  
	
   

  	
   

  
	
  ARTICLE IX
  CLAIMS PROCEDURES

  	
  24

  
	
   

  	
   

  
	
  9.1 – Claims

  	
  24

  
	
   

  	
   

  
	
  9.2 – Appeal

  	
  24

  
	
   

  	
   

  
	
  9.3 – Authority

  	
  25

  
	
   

  	
   

  
	
  ARTICLE X
  ADMINISTRATION

  	
  26

  
	
   

  	
   

  
	
  10.1 - Committee

  	
  26

  
	
   

  	
   

  
	
  10.2 - Committee Action

  	
  26

  
	
   

  	
   

  
	
  10.3 - Powers and Duties of the Committee

  	
  26

  
	
   

  	
   

  
	
  10.4 - Construction and Interpretation

  	
  27

  
	
   

  	
   

  
	
  10.5 - Information

  	
  28

  
	
   

  	
   

  
	
  10.6 - Compensation, Expenses and Indemnity

  	
  28

  
	
   

  	
   

  
	
  10.7 - Quarterly Statements

  	
  29

  
	
   

  	
   

  
	
  ARTICLE XI
  MISCELLANEOUS

  	
  29

  
	
   

  	
   

  
	
  11.1 - Unsecured General Creditor

  	
  29

  
	
   

  	
   

  
	
  11.2 - Restriction Against Assignment

  	
  29

  
	
   

  	
   

  
	
  11.3 - Withholding

  	
  30

  
	
   

  	
   

  
	
  11.4 - Amendment, Modification, Suspension or
  Termination

  	
  30

  
	
   

  	
   

  
	
  11.5 - Governing Law

  	
  31

  
	
   

  	
   

  
	
  11.6 - Receipt or Release

  	
  31

  
	
   

  	
   

  
	
  11.7 - Payments on Behalf of Persons Under
  Incapacity

  	
  31

  
	
   

  	
   

  
	
  11.8 - Headings

  	
  31

  

 

ii

 

HILTON HOTELS

 

2005 EXECUTIVE DEFERRED COMPENSATION PLAN

 

WHEREAS,
Hilton Hotels Corporation (the “Company”) hereby establishes a deferred
compensation plan (the “Plan”), effective as of November 12, 2004 for
deferrals with respect to Compensation (as defined below) to be earned or to be
otherwise paid on or after January 1, 2005, to provide supplemental
retirement income benefits for a select group of management and highly
compensated employees through deferrals of base salary and bonus compensation
and Company contributions.

 

NOW,
THEREFORE, the Plan is hereby established, on the terms and conditions
hereinafter set forth:

 

ARTICLE I

TITLE AND DEFINITIONS

 

1.1 – Title.

 

This
Plan shall be known as the Hilton Hotels 2005 Executive Deferred Compensation
Plan.

 

1.2 - Definitions.

 

Whenever
the following words and phrases are used in this Plan, with the first letter
capitalized, they shall have the meanings specified below.

 

“Base
Salary Deferral” shall mean that portion of Base Salary as to which an Eligible
Employee has made an irrevocable election to defer receipt of until the date
specified under the In-Service Distribution Option and/or as otherwise
specified under this Plan.

 

“Beneficiary”
or “Beneficiaries” shall mean the person or persons, including a trustee,
personal representative or other fiduciary, last designated in writing by a
Participant in accordance with procedures established by the Committee to
receive all of the benefits specified

 

1

 

hereunder in the event of
the Participant’s death. No Beneficiary designation shall become effective
until it is filed with the Committee. If there is no Beneficiary designation in
effect, or if there is no surviving designated Beneficiary, then the
Participant’s surviving spouse shall be the Beneficiary. If there is no
surviving spouse to receive any benefits payable in accordance with the
preceding sentence, the duly appointed and currently acting personal representative
of the Participant’s estate (which shall include either the Participant’s
probate estate or living trust) shall be the Beneficiary. In any case where
there is no such personal representative of the Participant’s estate duly
appointed and acting in that capacity within 90 days after the Participant’s
death (or such extended period as the Committee determines is reasonably
necessary to allow such personal representative to be appointed, but not to
exceed 180 days after the Participant’s death), then Beneficiary shall mean the
person or persons who can verify by affidavit or court order to the
satisfaction of the Committee that they are legally entitled to receive the
benefits specified hereunder. In the event any amount is payable under the Plan
to a minor, payment shall not be made to the minor, but instead be paid (i) to
that person’s living parent(s) to act as custodian, (ii) if that person’s
parents are then divorced, and one parent is the sole custodial parent, to such
custodial parent, or (iii) if no parent of that person is then living, to
a custodian selected by the Committee to hold the funds for the minor under the
Uniform Transfers or Gifts to Minors Act in effect in the jurisdiction in
which the minor resides. If no parent is living and the Committee decides not
to select another custodian to hold the funds for the minor, then payment shall
be made to the duly appointed and currently acting guardian of the estate for
the minor or, if no guardian of the estate for the minor is duly appointed and
currently acting within 60 days after the date the amount becomes payable,
payment shall be deposited with the court having jurisdiction over the estate
of the minor.

 

2

 

“Board”
shall mean the Board of Directors of Hilton Hotels Corporation.

 

“Bonus
Compensation Deferral” shall mean that portion of Bonus Compensation as to
which an Eligible Employee has made an irrevocable election to defer receipt of
until the date specified under the In-Service Distribution Option and/or as
otherwise specified under this Plan.

 

“Change
in Control” shall have the same meaning ascribed to the term “change in control”
under the Treasury regulations to be issued under section 409A of the
Code.

 

“Code”
shall mean the Internal Revenue Code of 1986, as amended.

 

“Committee”
shall mean the Committee appointed by the Board to administer the Plan in
accordance with Article X, or its delegate.

 

“Company”
shall mean Hilton Hotels Corporation, any successor corporation and each
corporation which is a member of a controlled group of corporations (within the
meaning of section 414(b) of the Code) of which Hilton Hotels
Corporation is a component member.

 

“Company
Contribution” shall equal the amount described in Section 4.2.

 

“Compensation”
shall mean the total salary paid to the Eligible Employee, including cash
bonuses, in a Plan Year. An Eligible Employee’s “Compensation” shall consist of
the Eligible Employee’s “Base Salary” as in effect from time to time during a
Plan Year and the Eligible Employee’s “Bonus Compensation” which shall equal
the amount of any cash incentive to be paid to an Eligible Employee under an
incentive plan maintained by the Company and, effective January 1, 2006, any
other cash bonus of any kind.

 

“Compensation
Deferral” means that portion of Compensation as to which a Participant has made
an irrevocable election to defer receipt until the date specified under the
In-Service Distribution Option and/or as otherwise specified under this Plan.

 

3

 

“Disabled”
or “Disability” shall mean that a Participant is disabled due to sickness or
injury which qualifies the Participant for disability payments under the
Company’s long term disability plan. A Participant shall be considered totally
and permanently disabled on the date he qualifies for such long term disability
payments.

 

“Distribution
Option” shall mean the two distribution options which are available under the
Plan, consisting of the Separation Distribution Option and the In-Service
Distribution Option.

 

“Distribution
Option Account” or “Accounts” shall mean, with respect to a Participant, the
Separation Distribution Account and/or the In-Service Distribution Account(s)
established on the books of account of the Company, pursuant to Article IV,
for each Participant.

 

“Effective
Date” shall mean November 12, 2004.

 

“Eligible
Employee” shall mean (i) officers of Hilton Hotels Corporation at the Vice
President level or higher, (ii) hotel managers who are employed by the
Company and selected by the Committee to participate in the Plan pursuant to Article II,
or (iii) Highly Compensated Employees who are selected by the Committee to
participate in the Plan pursuant to Article II.

 

“Enrollment
Agreement” shall mean the authorization form which an Eligible Employee
files with the Committee to participate in the Plan.

 

“Fund”
or “Funds” shall mean one or more of the investments selected by the Committee
pursuant to Section 3.3(a).

 

“Highly
Compensated Employee” shall mean an employee of the Company who the Committee,
in its discretion, anticipates will receive Compensation in excess of the
salary limitation contained in section 401(a)(17) of the Code for the
applicable Plan Year or who the Committee otherwise determines to be a highly
compensated employee or member of a select group of management within the
meaning of Sections 201(2), 301(a)(3) and 401(a)(1) of ERISA.

 

4

 

“In-Service
Distribution Account or Accounts” shall mean the Account(s) maintained for a
Participant to which Compensation Deferrals and Company Contributions are
credited pursuant to the In-Service Distribution Option.

 

“In-Service
Distribution Option” shall mean the Distribution Option pursuant to which
benefits are payable in accordance with Article VI.

 

“Investment
Return” shall mean, for each Fund, an amount equal to the net investment
performance of such Fund on a given day, as determined by the Committee.

 

“Key
Employee” shall mean (i) officers of
the Company having annual compensation greater than $130,000 (adjusted for
inflation and limited to 50 employees), (ii) five percent owners, and (iii) one
percent owners having annual compensation from the employer greater than
$150,000, all as determined by the Committee in a manner consistent with the
regulations issues under section 409A of the Code.

 

“Participant”
shall mean any Eligible Employee who elects to defer Compensation in accordance
with Section 3.1.

 

“Plan”
shall mean the Hilton Hotels 2005 Executive Deferred Compensation Plan set
forth herein, in effect as of the Effective Date, or as amended from time to
time.

 

“Plan
Year” shall mean the 12 consecutive month period beginning on a January 1.

 

“Prior
Plan” shall mean the Hilton Hotels Executive Deferred Compensation Plan, as
amended.

 

“Retirement”
shall mean a Participant’s Separation from Service (for reasons other than
death) on or after the combination of the Participant’s age and Years of
Vesting Service equals at least 55.

 

“Separation
Date” shall mean the date a Participant incurs a Separation from Service.

 

5

 

“Separation
Distribution Account” shall mean the Account maintained for a Participant to
which Compensation Deferrals and Company Contributions are credited pursuant to
the Separation Distribution Option.

 

“Separation
Distribution Option” shall mean the Distribution Option pursuant to which
benefits are payable in accordance with Article VI.

 

“Separation
from Service” shall mean a Participant’s separation from service with the
Company within the meaning of section 409A of the Code and the regulations
issued thereunder.

 

“Unvested
Company Contribution” shall mean that portion of the Company Contributions (as
defined in the Prior Plan) credited to a participant under the Prior Plan that
are not earned and vested for purposes of Section 409A of the Code as of December 31,
2004.

 

“Year
of Vesting Service” shall mean a “Year of Vesting Service” as defined in the
Hilton Hotels 401(k) Savings Plan.

 

ARTICLE II

PARTICIPATION

 

Prior
to December 31 of each Plan Year, the Committee shall designate which
hotel managers and which Highly Compensated Employees shall become Eligible
Employees for the following Plan Year. An Eligible Employee designated as a
Participant shall thereafter, unless otherwise determined by the Committee, be
eligible to make a Compensation Deferral for each Plan Year. Participation in
the Plan shall be made conditional upon an Eligible Employee’s acknowledgement,
in writing or by making a deferral election under the Plan, that all decisions
and determinations of the Committee shall be final and binding on the
Participant, his or her beneficiaries and any other person having or claiming
an interest under the Plan.

 

6

 

ARTICLE III

DEFERRAL ELECTIONS

 

3.1 - Elections
to Defer Compensation.

 

(a)                                  Each Eligible
Employee may elect to make a Compensation Deferral by filing with the
Committee an election that conforms to the requirements set forth in this Article III,
on an Enrollment Agreement provided by the Committee, no later than December 31
of the Plan Year preceding the Plan Year for which the Compensation is to be
earned and specifying whether the Participant elects a Base Salary Deferral or
a Bonus Compensation Deferral or a combination, the Distribution Option
Accounts to which such amounts will be credited, the form and timing of
distribution and such other information as the Committee shall require.

 

                (i)                                     Notwithstanding (a) above,
if an Eligible Employee’s Bonus Compensation is “performance-based compensation”
as contemplated by section 409A of the Code and related regulations, the
Committee may allow the Eligible Employee to elect to defer all or a
portion of his Bonus Compensation for a Plan Year at a time determined by the
Committee, which may be no less than six months before the end of the
applicable Plan Year in which such Bonus Compensation is to be earned.

 

                (ii)                                  The Eligible Employee
shall elect to allocate his or her Compensation Deferrals (and any Company
Contributions that may be credited with respect thereto) between the Distribution Options in whole
percentage increments; provided that 100 percent of such Deferrals (and
Company Contributions) may be allocated to one or the other of the Distribution
Options.

 

                (iii)                               The Committee may establish
minimum or maximum amounts that may be deferred under this Section and
may change such standards from time to time. Any such limits shall be
communicated by the Committee to the Plan Administrator and by the Plan

 

7

 

Administrator to the
Participants prior to the commencement of a Plan Year. No Participant may have
more than one Separation Distribution Account.

 

(b)                                 Notwithstanding
anything herein to the contrary, no Eligible Employee shall be permitted to
defer Compensation which the Committee reasonably determines is required to pay
the Eligible Employee’s portion of payroll taxes and contributions towards
benefits (including, but not limited to, medical, life, dental and disability)
provided to the Eligible Employee and his or her dependents.

 

(c)                                  Any Compensation
Deferral made under Section 3.1(a) above shall remain in effect and
be irrevocable, notwithstanding any change in a Participant’s Compensation, for
the entire Plan Year for which it is effective and for all subsequent Plan
Years unless the Participant files a new Enrollment Agreement changing his or
her Compensation Deferral election for a subsequent Plan Year in accordance
with Section 3.1(a) above. If a
Participant elects to allocate all or a portion of his Compensation Deferrals
to an In-Service Distribution Account, that election will remain effective only
for the Plan Year to which the Enrollment Agreement relates. If the Participant
does not elect an in-service distribution date for deferrals to the In-Service
Distribution Account in a subsequent Plan Year, such deferrals shall
automatically be allocated to the Participant’s Separation Distribution Account.
Compensation Deferral elections shall be made on an Enrollment Agreement
filed with the Committee by December 31 of a Plan Year (or such earlier
date as may be designated by the Committee) to make a Compensation
Deferral for Compensation to be earned on or after January 1 of the
immediately following Plan Year.

 

(d)                                 The Committee may, in
its discretion, permit Employees who first become Eligible Employees after the
beginning of a Plan Year, including Employees who become Eligible Employees
because they are promoted or hired by the Company on or after January 1 of

 

8

 

a Plan Year to a position
of Vice President or as a hotel manager designated by the Committee as an
Eligible Employee, to enroll in the Plan for that Plan Year by filing a
completed and fully executed Enrollment Agreement as soon as practicable
following the date the Employee becomes an Eligible Employee but, in any event,
within 30 days after such date. Notwithstanding the foregoing, however, any
Enrollment Agreement executed by an Eligible Employee, pursuant to this
Section, to make a Compensation Deferral shall apply only to Compensation
earned by the Eligible Employee after the date on which such Enrollment
Agreement is filed.

 

(e)                                  All
deferral elections under the Plan shall be made in accordance with section 409A
of the Code, and the regulations thereunder.

 

3.2 – Distribution
Elections.

 

Subject
to Section 3.4, in the Enrollment Agreement, each Eligible Employee shall
select the form and the timing of payment with respect to the Eligible
Employee’s Compensation Deferral. An Eligible Employee’s deferral election
under this Article III shall not be effective unless and until the
Eligible Employee makes the required distribution elections under this Section 3.2.
Each Eligible Employee shall make the following form and timing of payment
elections:

 

(a)                                  Retirement. An Eligible Employee shall elect the form of
payment in which amounts credited to the Eligible Employee’s Distribution
Option Accounts shall be paid where (i) the Eligible Employee’s Separation
Date occurs on or after eligibility for Retirement and (ii) the amount to
be distributed from all of the Eligible Employee’s Distribution Option Accounts
exceeds $100,000 (taking into account all deferrals made to all of the Eligible
Employee’s Distribution Option Accounts). The Eligible Employee may elect
a lump sum, or quarterly, semi-annual or annual installments payable over 5,
10, 15 or 20 years. This form of payment

 

9

 

election shall apply to
all Compensation Deferrals credited on behalf of the Eligible Employee to his
Separation Distribution Account in any Plan Year in which the Eligible Employee
makes Compensation Deferrals under this Plan, subject to change only in
accordance with Section 3.4 below. In
the event the amount to be distributed from a Participant’s Distribution Option
Accounts upon a Separation from Service after eligibility for Retirement does
not exceed $100,000 (taking into account all deferrals made to all of
the Eligible Employee’s Distribution Option Accounts) as determined under Section 6.2,
the Participant’s Distribution Option Accounts shall be paid in a lump sum in
accordance with Section 6.2 without regard to the Participant’s actual form of
payment election.

 

(b)                                 In-Service Distribution. An Eligible Employee shall elect (i) the
form of payment in which amounts credited to the Eligible Employee’s
In-Service Distribution Account, if applicable, shall be paid where the amount
to be distributed exceeds $25,000 and (ii) the Plan Year in which such
payment shall commence; provided that the Plan Year selected in (ii) may not
be prior to the third Plan Year following the Plan Year in which the
Compensation Deferral is made, except as permitted under Section 3.6. The
Eligible Employee may elect a lump sum, or quarterly, semi-annual or
annual installments payable over 2, 3, 4 or 5 years. This election shall apply
only to the Compensation Deferrals credited on behalf of the Eligible Employee
to the In-Service Distribution Account created pursuant to the Enrollment Form to
which such Compensation Deferrals relate, except to the extent changed pursuant
to a subsequent election in accordance with Section 3.4 below. In the
event the amount to be distributed from a Participant’s In-Service Distribution
Account does not exceed $25,000 as of the applicable distribution date, the
Participant’s In-Service Distribution Account shall be paid in a lump sum in
accordance with Section 6.2 without regard to the Participant’s actual form of
payment

 

10

 

election(s). If a
Participant incurs a Separation from Service prior to the in-service
distribution date elected by the Participant with respect to the Participant’s
In-Service Distribution Account, the Participant’s distribution election with
respect to such In-Service Distribution Account shall become invalid and
distribution shall instead be made in accordance with the Participant’s
elections under Sections 3.2(a), 3.2(c) or 3.4, as applicable.

 

(c)                                  Separation from Service.

 

An
Eligible Employee shall elect the form of payment in which amounts
credited to the Eligible Employee’s Separation Distribution Account, if
applicable, shall be paid where (i) the Eligible Employee’s Separation
Date occurs prior to eligibility for Retirement, and (ii) the amount to be
distributed from all of the Eligible Employee’s Distribution Option Accounts
exceeds $100,000 (taking into account all deferrals made to all of the Eligible
Employee’s Distribution Option Accounts). The Eligible Employee may elect
a lump sum, or annual installments payable over 5 years. This election shall
apply to all Compensation Deferrals credited on behalf of the Eligible Employee
to his Separation Distribution Account in any Plan Year in which Compensation
Deferrals are made under this Plan., subject to change only in accordance with Section 3.4
below. In the event the amount to be
distributed from a Participant’s Distribution Option Accounts upon a Separation
from Service before eligibility for Retirement does not exceed $100,000
(taking into account all deferrals made to all of the Eligible Employee’s
Distribution Option Accounts) as determined under Section 6.2, the
Participant’s Distribution Option Accounts shall be paid in a lump sum in
accordance with Section 6.2 without regard to the Participant’s actual form of
payment election.

 

11

 

3.3 - Investment
Elections.

 

(a)                                  At the time of making
the deferral elections described in Section 3.1 and the distribution
elections described in Section 3.2, the Participant shall designate, in a
manner prescribed by the Committee, which Funds the Participant’s Accounts will
be deemed to be invested in for purposes of determining the Investment Return
to be credited to those Accounts. The Funds shall be as selected by the
Committee from time to time and the Committee may add, change, or delete
Funds at any time. In making the designation pursuant to this Section 3.3,
the Participant may specify that all or any whole percentage of his
Accounts be deemed to be invested in one or more of the Funds. A Participant may change
the designation made under this Section 3.3, in a manner prescribed by the
Committee, on any business day. Such change shall be effective as soon as
administratively feasible after it is received.

 

(b)                                 If a Participant fails
to elect a type of Fund under this Section 3.3, he or she shall be deemed
to have elected an S & P 500 Index Fund (or, if no such Fund exists,
the Fund designated by the Committee).

 

(c)                                  Although the
Participant may designate the Funds according to Section 3.3(a) above,
the Committee shall select from time to time, in its sole discretion, for each
of the Funds described in Section 3.3(a) above, a commercially
available mutual fund or contract or an investment fund established with and
administered by an investment manager selected by the Committee. The Investment
Return of each such commercially available mutual fund, contract or investment
fund shall be used to determine the amount of earnings to be credited to
Participants’ Accounts under Article IV although nothing set forth in this
Plan shall require an actual investment of monies in any such mutual fund or in
any other Fund designated as a deemed investment vehicle for Compensation
Deferrals.

 

12

 

3.4 – Subsequent
Elections.

 

The Committee may establish rules allowing a
Participant to make a subsequent election to postpone payment of Compensation
Deferrals under his In-Service Distribution Account(s) and/or his Separation
Distribution Account, in accordance with the rules in this Section 3.4;
provided that any such subsequent election shall be made in accordance with the
requirements of section 409A of the Code and the regulations thereunder
and that no subsequent election may result in an impermissible
acceleration of payment as described in section 409A of the Code and the
regulations thereunder. The following rules shall apply to subsequent
elections under the Plan:

 

(a)                                  With respect to Compensation Deferrals under an
In-Service Distribution Account, a Participant may make a subsequent
election to defer the payment to a later Plan Year or to change the form of
payment applicable to such In-Service Distribution Account; provided that (i) the
subsequent election must be made at least 12 months prior to the January in
which the first scheduled payment was to occur, (ii) the subsequent
election may not take effect until at least 12 months after the date on
which the election is made, and (iii) except with respect to an election
related to payment upon an unforeseeable emergency, the first payment with
respect to which such election is made must be deferred for a period of not
less than five years from the date such payment would otherwise have been made.

 

(b)                                 A Participant may make a subsequent election
to change the form or time at which Compensation Deferrals credited to a
Participant’s Separation Distribution Account will be paid, provided that (i) the
subsequent election may not take effect until at least 12 months after the
date on which the election is made, and (ii) except with respect to an
election related to payment upon an unforeseeable emergency or death, the first
payment with respect to which

 

13

 

such
election is made must be deferred for a period of five years from the date such
payment would have otherwise have been made. Participants shall be permitted to
make only one subsequent election to change the form or time of payment of
their Separation Distribution Account, excluding any changes made pursuant to Section 3.6.
..

 

3.5 - Cancellation
of Elections.

 

To the
extent permitted under Section 409A of the Code and the regulations issued
thereunder, the Committee may permit Participants during all or part of
calendar year 2005 to cancel their deferral elections, in whole or in part,
with respect to any amounts deferred under this Plan on or after January 1,
2005, on such terms as shall be determined by the Committee. If a deferral
election is cancelled, the full amount of the distribution shall be included in
the Participant’s income in calendar year 2005, or if later, the Participant’s
taxable year in which the amount is earned and vested.

 

3.6 - New
Payment Elections.

 

To the
extent permitted under Section 409A of the Code and the regulations issued
thereunder, the Committee may permit Participants to make new payment
elections on or before December 31, 2006 with respect to the time and/or form of
payment of amounts deferred hereunder on or after January 1, 2005, on such
terms as shall be determined by the Committee, provided that a Participant
shall not be permitted in calendar year 2006 (i) to change payment
elections with respect to amounts that the Participant would otherwise receive
in 2006 or (ii) to cause payments to be made in 2006.

 

14

 

ARTICLE IV

DISTRIBUTION OPTION ACCOUNTS

 

4.1 - Compensation
Deferrals.

 

The
Committee shall establish and maintain separate Distribution Option Accounts
with respect to a Participant. A Participant’s Distribution Option Accounts may consist
of a Separation Distribution Account and/or one or more In-Service Distribution
Account(s), as elected by the Participant. Each Participant’s Distribution
Option Accounts shall be further divided into separate subaccounts (“subaccounts”),
each of which corresponds to a Fund elected by the Participant pursuant to Section 3.3(a).
A Participant’s Distribution Option Account shall be credited as follows:

 

As
soon as practicable after the end of each calendar month, the Committee shall
credit the subaccounts of the Participant’s Distribution Option Account with an
amount equal to the Base Salary and/or Bonus Compensation that would otherwise
have been earned for such calendar month in accordance with the Distribution
Option irrevocably elected by the Participant in the Enrollment Agreement and
in accordance with the Participant’s investment elections under Section 3.3(a).
Any amount once taken into account as Base Salary and/or Bonus Compensation for
purposes of this Plan shall not be taken into account thereafter. The
Participant’s Distribution Option Accounts shall be reduced by the amount of
payments made by the Company to the Participant or the Participant’s
Beneficiary pursuant to this Plan.

 

4.2 - Company
Contribution.

 

A
Participant’s Distribution Option Account shall be further credited with the
Company Contribution for that Participant as follows:

 

15

 

(a)                                  As soon as
practicable after the end of each calendar month, the Committee shall credit
the subaccounts of the Participant’s Distribution Option Account with an amount
equal to the portion of the Company Contribution, if any, which the Participant
elected to be deemed to be invested in a certain type of Fund. A Participant’s
Company Contribution for any payroll period shall be equal to 50% of the
Compensation Deferral by the Participant during such payroll period in
accordance with the Participant’s election under Section 3.1(a),
disregarding any such deferral in excess of 10% of the Participant’s
Compensation for such payroll period. Company Contributions, when credited, are
credited to the Distribution Option Accounts in the same proportion as the Base
Salary and/or Bonus Compensation they match;

 

(b)                                 As of the last day of
each month, forfeitures that occur under Section 5.2 during such month
shall be returned to the Company for its unrestricted use; and

 

(c)                                  Notwithstanding
Sections 4.2(a) and (b) above, from time-to-time and in its sole
discretion, the Board may provide that additional Company Contributions be
credited to some or all Participants, according to the terms and conditions
determined by the Board.

 

(d)                                 Effective
as of January 1, 2005, all Unvested Company Contributions under the Prior
Plan shall be credited to this Plan and shall be governed by the terms and
provisions of this Plan in all respects. Whether or not an employee is a
Participant in this Plan, the value of the employee’s Unvested Company
Contributions, as of December 31, 2004, shall be credited to a Separation
Distribution Account under this Plan, effective as of January 1, 2005. If
the employee is not a Participant in this Plan, the employee shall be required
to make the distribution elections required under Sections 3.2(a) and 3.2(c) with
respect to such amount no later than December 31, 2005. If the employee is
a Participant in this Plan, such amount shall

 

16

 

automatically become subject
to the Participant’s distribution elections under Sections 3.2 and 3.4 for the
Participant’s Separation Distribution Account.

 

4.3 - Investment
Return.

 

Each
subaccount of a Participant’s Distribution Option Account shall, as of each
business day, be credited with earnings and debited with losses in an amount
equal to that determined by multiplying the balance credited to such subaccount
as of the previous day by the Investment Return for the corresponding Fund
pursuant to Section 3.3(a).

 

ARTICLE V

VESTING

 

5.1 - Compensation Deferral.

 

A
Participant’s Compensation Deferral credited to his or her Distribution Option
Account shall be 100% vested at all times.

 

5.2 - Company
Contribution.

 

(a)                                  All Company
Contributions credited to a Participant’s Distribution Option Account shall
become nonforfeitable in the following increments:  (i) 25% upon the Participant’s
completion of two Years of Vesting Service, (ii) an additional 25% (50%
total) upon completion of three Years of Vesting Service, (iii) an additional
25% (75% total) upon completion of four Years of Vesting Service, and (iv) the
Distribution Option Account balance shall be fully nonforfeitable in its
entirety on and after the Participant’s completion of five Years of Vesting
Service.

 

(b)                                 Notwithstanding Section 5.2(a) above,
a Participant’s Distribution Option Account balance shall be fully
nonforfeitable in its entirety should:  (i) the
Participant die while providing service to the Company, (ii) the
Participant become Disabled while providing service to the Company, or (iii) there
occur a Change in Control.

 

17

 

(c)                                  When a Participant
incurs a Separation Date, the portion of the Company Contribution credited to
his or her Distribution Option Account which is not vested shall immediately be
forever forfeited to the Company, and the Company shall have no obligation to
the Participant (or Beneficiary) with respect to such forfeited amount.

 

ARTICLE VI

DISTRIBUTIONS

 

6.1 – Form and
Timing of Distribution.

 

(a)                                  Subject
to Section 6.2, in the case of a Participant whose Separation Date occurs
on or after eligibility for Retirement and the vested portion of the
Participant’s Separation Distribution Account exceeds $100,000 (taking into
account all deferrals made to the Participant’s Separation Distribution
Account), the Participant’s Separation Distribution Account shall be
distributed in the form elected by the Participant pursuant to Sections
3.2 and 3.4, as applicable, and shall be paid, or commence to be paid, as soon
as reasonably practicable following the end of the twelfth full calendar month
after the Participant has a Separation from Service, unless payment is deferred
pursuant to Section 3.4.

 

(b)                                 Subject
to Section 6.2 and to (i) and (ii) below, in the case of a
Participant who continues to provide service to the Company and the vested
portion of a Participant’s In-Service Distribution Account exceeds $25,000
(applied on an Account by Account basis), the vested portion of the Participant’s
In-Service Distribution Account shall be paid to the Participant as soon as
reasonable practicable following the date elected by the Participant pursuant
to Sections 3.2 and 3.4, as applicable; provided that if the amount to be
distributed does not exceed $25,000, distribution shall be made in a lump sum
in accordance with Section 6.2.

 

18

 

(i)                                     If
the Participant is not fully vested when the In-Service Distribution Account is
to be paid, the non-vested portion at the date of first payment will
automatically be transferred to the Participant’s Separation Distribution
Account.

 

(ii)                                  If
the Participant incurs a Separation from Service after distribution has
commenced in accordance with this Section 6.1(b) but prior to the date
on which the Participant’s In-Service Distribution Account(s) is fully
distributed, distribution of the remaining amounts shall be governed by the
Participant’s distribution elections under Section 3.2(a) or 3.2(c),
as applicable, and shall be distributed in accordance with Section 6.1(a) or
6.1(c), as applicable.

 

(c)                                  In
the case of a Participant whose Separation Date occurs prior to the earliest
date on which the Participant is eligible for Retirement, other than by reason
of death, and the vested portion of the Participant’s Distribution Option
Accounts exceeds $100,000 (taking into account all deferrals made to the
Participant’s Distribution Option Accounts), the vested portion of a
Participant’s Distribution Option Accounts shall be distributed in the form elected
by the Participant pursuant to Sections 3.2 and 3.4, as applicable, and shall
be paid or commence to be paid as soon as reasonably practicable following the
end of the twelfth full calendar month after the Participant has a Separation
from Service, unless payment is deferred pursuant to Section 3.4. The
unvested portion of any Distribution Option Account shall be forfeited in
accordance with Section 5.2.

 

6.2 – Small
Benefit Cashout.

 

(a)                                  Notwithstanding
any provision of the Plan or election by a Participant to the contrary, in the
event the value of the vested portion of a Participant’s Separation
Distribution Account does not exceed $100,000 (taking into account all
deferrals made to the Eligible

 

19

 

Employee’s Separation
Distribution Account) as of the date the Participant’s Account becomes
distributable, then the vested portion of the Participant’s Account shall be
paid in a lump sum as soon as reasonably practicable following the date the Participant’s
Account becomes distributable. For purposes of the foregoing, the Participant’s
Account shall be valued as of the last business day of the month following the
month in which the Participant’s Separation Date occurs. If the value at such
time does not exceed $100,000, the Participant’s Account shall be distributed
in a lump sum as soon as reasonably practicable thereafter.

 

(b)                                 Notwithstanding
any provision of the Plan or election by a Participant to the contrary, in the
event the value of the vested portion of a Participant’s In-Service
Distribution Account does not exceed $25,000 (applied on an Account by Account
basis) as of the date the Participant’s Account becomes distributable, then the
vested portion of the Participant’s Account shall be paid in a lump sum as soon
as reasonably practicable following the date the Participant’s Account becomes
distributable.

 

6.3 – Payout.

 

(a)                                  Any
lump sum benefit payable under this Article VI shall be paid in January of
the Plan Year elected by the Participant pursuant to Sections 3.2(b) and
3.4as applicable, or otherwise at the time specified for payment under Sections
6.1(a) or 6.1(c), as applicable, in an amount equal to the vested value of
the portion of such Distribution Option Account being distributed as of the
business day the Funds are deemed to be liquidated to make the payment.

 

(b)                                 Installment
payments, if any, payable under this Article VI shall commence in January of
the Plan Year elected by the Participant pursuant to Sections 3.2(b) and
3.4, as applicable, or otherwise at the time specified for payment under
Sections 6.1(a) or 6.1(c), as applicable, in an amount equal to (i) the
vested value of such portion of such Distribution Option

 

20

 

Account being distributed
as of the business day the Funds are deemed to be liquidated to make the
payment, divided by (ii) the number of installment payments elected by the
Participant in the applicable Enrollment Agreement with respect to an
In-Service Distribution Account or in the distribution election form filed
pursuant to Section 3.2 or 4.2(d) with respect to the Separation
Distribution Account.. The remaining installments shall be paid in an amount
equal to (i) the vested value of such portion of the Distribution Option
Account being distributed as of the business day the Funds are deemed to be
liquidated to make the payment divided by (ii) the number of installments
remaining.

 

6.4 – Distributions
to Key Employees.

 

Notwithstanding
any provision of the Plan to the contrary, distributions under Sections 6.1(a) and
6.1(c) to Participants who are Key Employees shall be postponed to a date
that is not less than 6 months following the Participant’s Separation Date.

 

6.5 – Financial
Hardship of Participant.

 

(a)                                  At any time prior to commencement of payment
pursuant to this Article VI, a Participant may request payment to him
or her of all or a portion of the amounts that the Participant has deferred
under the Plan. The decision to approve or deny such a request shall be in the
absolute discretion of the Committee. However, such a request shall be approved
only upon a finding that the Participant has suffered a severe financial
hardship which has resulted from an illness or accident of the Participant, the
Participant’s spouse, or a dependent (as defined in section 152(a) of
the Code) of the Participant, loss of the Participant’s property due to
casualty, or other similar extraordinary and unforeseeable circumstances
arising as a result of events beyond the Participant’s control, and then only
in an amount necessary to eliminate such hardship plus amounts necessary to pay
taxes reasonably anticipated as a result of the

 

21

 

distribution,
after taking into account the extent to which such hardship is or may be
relieved through reimbursement or compensation by insurance or by liquidation
of the Participant’s assets (to the extent the liquidation of such assets would
not itself cause severe financial hardship). In the event such a request is
approved, payment of all or a portion of the amounts previously deferred by the
Participant, with credited interest, to the extent approved by the Committee,
shall be made as soon as practicable to the Participant. Amounts otherwise payable
to a Participant hereunder shall be adjusted (as determined by the Committee in
its absolute discretion) to take into account such financial hardship payment. The
Committee shall administer hardship distribution requests consistently with section 409A
of the Code and the regulations thereunder.

 

(b)                                 If a Participant elects to take a hardship
distribution prior to June 30 of any Plan Year, the Participant’s deferral
election shall be cancelled for the Plan Year in which the distribution occurs
with respect to all salary and bonuses not yet earned.. If a Participant elects
to take a hardship distribution on or after June 30 of any Plan Year, the
Participant’s deferral election shall be cancelled for the Plan Year in which
the hardship distribution occurs with respect to all salary and bonuses not yet
earned, and the Participant shall be suspended from participation in the Plan
for the following Plan Year.

 

6.6 – Permissible
Distribution Event.

 

Notwithstanding
any provision of the Plan to the contrary, no distributions shall be made
except upon a specified date or event as permitted pursuant to section 409A
of the Code and the regulations thereunder.

 

6.7 - Payment
by Trust.

 

The
Company may cause the payment of benefits under this Plan to be made in
whole or in part by the trustee of a trust designated by the Committee
(the “Trust”). The Committee may

 

22

 

direct the Trustee to pay
the Participant’s or Beneficiary’s benefit at the time and in the amount
described herein. In the event the amounts allocated to the Participant under
the Trust are not sufficient to provide the full amount of benefit payable to
the Participant, the Company shall pay the remainder of such benefit.

 

6.8 - Inability
to Locate Participant.

 

In the
event that the Committee is unable to locate a Participant or Beneficiary
within two years following the date the Participant was to commence receiving
payment, the entire amount allocated to the Participant’s Deferral Account and
Company Contribution Account shall be forfeited. If, after such forfeiture, the
Participant or Beneficiary later claims such benefit, such benefit shall be
reinstated without interest or earnings from the date payment was to commence
pursuant to the Participant’s elections under Sections 3.2 and 3.4, as
applicable.

 

ARTICLE VII
CHANGE IN CONTROL

 

In the
event of a Change in Control, any Participant shall receive a distribution of
100% of the value of the Participant’s Distribution Option Accounts at the time
of the distribution. Such distribution shall be made in a lump sum within 30
days following the date the Change in Control is consummated, in an amount
equal to the value of such Distribution Option Accounts as of the business day
the Funds are deemed to be liquidated to make the payment.

 

ARTICLE VIII

DEATH BENEFITS

 

Upon
the death of a Participant before his or her Distribution Option Account(s) has
been paid in full (either in a lump sum or installment payments), his or her
Beneficiary shall receive the balance of the Participant’s vested Account as of
the date of death, as adjusted by subsequent gains or losses prior to
distribution, in the form of a lump sum payment as soon as reasonably
practicable following the date of the Participant’s death.

 

23

 

ARTICLE IX

CLAIMS PROCEDURES

 

9.1 – Claims.

 

A
Participant or, following the Participant’s death, a Beneficiary (collectively
referred to in this section as “Claimant”) may submit a claim for
benefits under the Plan. Any claim for
benefits under this Plan shall be made in writing to the Committee. If such
claim for benefits is wholly or partially denied, the Committee shall, within
90 days after receipt of the claim, notify the Claimant of the denial of the
claim unless special circumstances require an extension of time for processing
the claim, which extension shall not exceed 180 days from receipt of the claim.
If such extension is required, written notice of the extension shall be
furnished to the Claimant prior to the termination of the initial 90-day period
and shall indicate the special circumstances requiring an extension of time and
the date by which the Committee expects to render a final decision. A notice of
denial shall be in writing, shall be written in a manner calculated to be
understood by the Claimant, and shall contain the specific reason or reasons
for denial of the claim, a specific reference to the pertinent Plan provisions
upon which the denial is based, a description of the additional material or
information (if any) necessary to perfect the claim, together with an
explanation of why such material or information is necessary, and an
explanation of the claims review procedure set forth below, including a
statement of the Claimant’s right to bring a civil action under section 502(a) of
the Employee Retirement Income Security Act of 1974, as amended (“ERISA”)
following an adverse benefit determination on review.

 

9.2 – Appeal.

 

Within 60 days after the receipt by a Claimant of a
written notice of denial of a claim, the Claimant may file a written
request with the Committee that it conduct a full and fair review of

 

24

 

the
denial of the claim for benefits. The Claimant, or duly authorized
representative, shall receive, upon request and free of charge, reasonable
access to, and copies of, all documents, records and other information relevant
to the Claimant’s claim for benefits. The Claimant, or duly authorized
representative may also submit written comments, documents, records and
other information relating to the claim for benefits, and the review will take
into account such items whether or not they were considered in the initial
benefit determination.

 

The Committee shall deliver to the Claimant, or
authorized representative, a written decision on the claim within 60 days after
the receipt of the request for review, except that if there are special
circumstances that require an extension of time, the 60-day period may be
extended to 120 days. If such extension is required, written notice shall be
furnished to the Claimant, or authorized representative, prior to the
termination of the initial 60-day period and shall indicate the special
circumstances requiring an extension of time and the date by which the final decision
will be rendered. The decision shall be written in a manner calculated to be
understood by the Claimant, include the specific reason or reasons for the
decision, include a statement that the Claimant is entitled to receive upon
request and free of charge, access to and copies of all documents and other
information relevant to the claim, contain a specific reference to the
pertinent Plan provisions upon which the decision is based, and include a
statement describing any voluntary appeal procedures offered by the Plan and a
statement of the Claimant’s right to bring an action under section 502(a) of
ERISA.

 

9.3 – Authority.

 

The Committee, in determining claims for benefits, shall
have the complete discretion to review and determine related factual questions,
to construe the terms of the Plan, and to bind the Company with respect to the
Plan.

 

25

 

ARTICLE X

ADMINISTRATION

 

10.1 - Committee.

 

A
committee shall be appointed by, and serve at the pleasure of, the Board. The
number of members comprising the Committee shall be determined by the Board
which may from time to time vary the number of members. A member of the
Committee may resign by delivering a written notice of resignation to the
Board. The Board may remove any member by delivering a certified copy of
its resolution of removal to such member. Vacancies in the membership of the
Committee shall be filled promptly by the Board.

 

10.2 - Committee Action.

 

The
Committee shall act at meetings by affirmative vote of a majority of the
members of the Committee. Any action permitted to be taken at a meeting may be
taken without a meeting if, prior to such action, a written consent to the
action is signed by all members of the Committee and such written consent is
filed with the minutes of the proceedings of the Committee. A member of the
Committee shall not vote or act upon any matter which relates solely to himself
or herself as a Participant. The Chairman or any other member or members of the
Committee designated by the Chairman may execute any certificate or other
written direction on behalf of the Committee.

 

10.3 - Powers
and Duties of the Committee.

 

(a)                                  The Committee, on
behalf of the Participants and their Beneficiaries, shall enforce the Plan in
accordance with its terms, shall be charged with the general administration of
the Plan, and shall have all powers necessary to accomplish its purposes,
including, but not by way of limitation, the following:

 

26

 

(i)                                     To
select the mutual funds, contracts or investment funds to be the Funds in
accordance with Section 3.3(b) hereof;

 

(ii)                                  To
construe and interpret the terms and provisions of this Plan and to make
factual determinations;

 

(iii)                               To
compute and certify to the amount and kinds of benefits payable to Participants
and their Beneficiaries;

 

(iv)                              To
maintain all records that may be necessary for the administration of the
Plan;

 

(v)                                 To
provide for the disclosure of all information and the filing or provision of all
reports and statements to Participants, Beneficiaries or governmental agencies
as shall be required by law;

 

(vi)                              To
make and publish such rules for the regulation of the Plan and procedures
for the administration of the Plan as are not inconsistent with the terms
hereof; and

 

(vii)                           To
appoint a plan administrator or any other agent, and to delegate to them such
powers and duties in connection with the administration of the Plan as the
Committee may from time to time prescribe.

 

(viii)                        On behalf
of the Company, to select those Highly Compensated Employees who shall be
Eligible Employees.

 

10.4 - Construction
and Interpretation.

 

(a)                                  The
Committee shall have full discretion to construe and interpret the terms and
provisions of this Plan, which interpretation or construction shall be final
and binding on all parties, including but not limited to, the Company and any
Participant or Beneficiary. The

 

27

 

Committee shall
administer such terms and provisions in a uniform and nondiscriminatory
manner and in full accordance with any and all laws applicable to the Plan.

 

(b)                                 Nothing
contained in the Plan shall be construed to prevent the Company from taking any
action which is deemed by it to be appropriate or in its best interest. No
Participant, Beneficiary, or other person shall have any claim against the
Company as a result of such action. Any decisions, actions or interpretations
to be made under the Plan by the Company or the Board, or the Committee acting
on behalf of the Company, shall be made in its respective sole discretion, not
as a fiduciary, need not be uniformly applied to similarly situated individuals
and shall be final, binding and conclusive on all persons interested in the
Plan.

 

10.5 - Information.

 

To
enable the Committee to perform its functions, the Company shall supply
full and timely information to the Committee on all matters relating to the
Compensation of all Participants, their death, Disability, or other cause of
termination, and such other pertinent facts as the Committee may require.

 

10.6 - Compensation,
Expenses and Indemnity.

 

(a)                                  The Committee is
authorized at the expense of the Company to employ such legal counsel as it may deem
advisable to assist in the performance of its duties hereunder. Expenses and
fees in connection with the administration of the Plan shall be paid by the
Company.

 

(b)                                 To the extent
permitted by applicable state law, the Company shall indemnify and save
harmless the Committee and each member thereof, the Board and any delegate of
the Committee who is an employee of the Company against any and all expenses,
liabilities and claims, including legal fees to defend against such liabilities
and claims arising out of their discharge in good faith of responsibilities under
or incident to the Plan, other than expenses and

 

28

 

liabilities arising out
of willful misconduct. This indemnity shall not preclude such further
indemnities as may be available under insurance purchased by the Company
or provided by the Company under any bylaw, agreement or otherwise, as such
indemnities are permitted under state law.

 

10.7 -  Quarterly Statements.

 

Under
procedures established by the Committee, a Participant shall receive a
statement with respect to such Participant’s Accounts on a quarterly basis as
of each March 31, June 30, September 30 and December 31.

 

ARTICLE XI

MISCELLANEOUS

 

11.1 - Unsecured
General Creditor.

 

Participants
and their Beneficiaries, heirs, successors, and assigns shall have no legal or
equitable rights, claims, or interest in any specific property or assets of the
Company. No assets of the Company shall be held under any trust, or held in any
way as collateral security for the fulfilling of the obligations of the Company
under this Plan. Any and all of the Company’s assets shall be, and remain, the
general unpledged, unrestricted assets of the Company. The Company’s obligation
under the Plan shall be merely that of an unfunded and unsecured promise of the
Company to pay money in the future, and the rights of the Participants and
Beneficiaries shall be no greater than those of unsecured general creditors.

 

11.2 - Restriction
Against Assignment.

 

The
Company shall pay all amounts payable hereunder only to the person or persons
designated by the Plan and not to any other person or corporation. No part of
a Participant’s Accounts shall be liable for the debts, contracts, or
engagements of any Participant, his or her Beneficiary, or successors in
interest, nor shall a Participant’s Accounts be subject to execution

 

29

 

by levy, attachment, or
garnishment or by any other legal or equitable proceeding, nor shall any such
person have any right to alienate, anticipate, commute, pledge, encumber, or
assign any benefits or payments hereunder in any manner whatsoever. If any
Participant, Beneficiary or successor in interest is adjudicated bankrupt or
purports to anticipate, alienate, sell, transfer, assign, pledge, encumber or
charge any distribution or payment from the Plan, voluntarily or involuntarily,
the Committee, in its discretion, may cancel such distribution or payment
(or any part thereof) to or for the benefit of such Participant,
Beneficiary or successor in interest in such mariner as the Committee shall
direct.

 

11.3 - Withholding.

 

There
shall be deducted from each payment made under the Plan or any other
compensation payable to the Participant (or Beneficiary) all taxes which are
required to be withheld by the Company in respect to such payment or this Plan.
The Company shall have the right to reduce any payment (or compensation) by the
amount of cash sufficient to provide the amount of said taxes.

 

11.4 - Amendment,
Modification, Suspension or Termination.

 

It is the intention of the Company to continue the Plan
and to distribute benefits to Participants in accordance with Article 6 in
the absence of the development of circumstances concerning construction or
operation of the Plan which are materially adverse to the Company or the
Participants. However, the Committee or the Board may at any time, or from
time to time, in its sole discretion amend or terminate the Plan in any manner
that the Committee or Board deems appropriate, including amending or
terminating outstanding deferral elections, if necessary or appropriate to
comply with changes to applicable law, without the consent of any Participant. In
the event the Committee or the Board acts to terminate the Plan, distribution
to Participant shall

 

30

 

be
made in accordance with Article 6, unless an alternative method of
distribution is permitted under applicable law.

 

11.5 - Governing
Law.

 

This
Plan shall be construed, governed and administered in accordance with the laws
of the State of California.

 

11.6 - Receipt
or Release.

 

Any
payment to a Participant or the Participant’s Beneficiary in accordance with
the provisions of the Plan shall, to the extent thereof, be in full
satisfaction of all claims against the Committee, the Company and the Trustee. The
Committee may require such Participant or Beneficiary, as a condition
precedent to such payment, to execute a receipt and release to such effect.

 

11.7 - Payments
on Behalf of Persons Under Incapacity.

 

In the
event that any amount becomes payable under the Plan to a person who, in the
sole judgement of the Committee, is considered by reason of physical or mental
condition to be unable to give a valid receipt therefore, the Committee may direct
that such payment be made to any person found by the Committee, in its sole
judgement, to have assumed the care of such person. Any payment made pursuant
to such determination shall constitute a full release and discharge of the
Committee and the Company.

 

11.8 - Headings.

 

Headings
and subheadings in this Plan are inserted for convenience of reference only and
are not to be considered in the construction of the provisions hereof.

 

31

 

IN
WITNESS WHEREOF, the Company has caused this document to be executed by its
duly authorized officer to be effective on this 20th day of December, 2005.

 

	
   

  	
  HILTON HOTELS
  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Molly
  McKenzie Swarts

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Its:

  	
     Senior
  Vice President

  	
   

  
					

 

32

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