Document:

August 14, 2001

 

 

April 26, 2007

 

Universal Explorations Corp.

30 Skyline Drive 

Lake Mary, Florida   32746

 

Attention:Mr. Dyron M. Watford

Chief Financial Officer

 

Re:Participation Agreement

Lake Campo Prospect

Plaquemines Parish, Louisiana

 

Gentlemen:

This agreement, together with all exhibits attached hereto and made a part hereof (hereinafter collectively referred to as the "Agreement"), shall confirm and set forth the understanding of, and agreement to, the terms, provisions and conditions pursuant to which Universal Explorations Corp., ("Universal"), is acquiring an undivided Eighteen and 75/100ths percent (18.75%) interest in and to the Leasehold estate created by the hereinafter-identified oil, gas and/or mineral Leases, insofar as said oil, gas and/or mineral Leases cover the hereinafter described lands, and is agreeing to participate in the drilling and testing of a certain oil and gas exploration test well (the "Test Well") on lands covered by such oil, gas and/or mineral Leases.

 

	PROSPECT AREA, LEASES AND UNIT FORMATION

	Prospect Area and Oil and Gas Leases

Yuma Exploration and Production Company, Inc. ("Yuma"), acting by and through its duly authorized representatives, has previously acquired an oil, gas and/or mineral Leases covering, 190.0 acres, more or less (sometimes hereinafter referred to as the "Prospect Area"), as described and depicted on Exhibit "A" to the Operating Agreement that is attached hereto as Exhibit "A" and by this reference made a part hereof (the "Operating Agreement").  Such oil, gas and/or mineral Leases, insofar as the same cover the Prospect Area (the "Leases"), is described on Exhibit "A-1" to the aforementioned Operating Agreement.

.

	Formation of Unit

The well will be drilled within a unit established and approved by the State of Louisiana Office of Conservation and will be comprised of one-half (1/2) Yuma acreage and one-half (1/2) Helis Oil and Gas acreage. More particularly, State Lease No. 18652 and the Mercedes Perez Mack et al Lease being assigned herein will make up one half (1/2) of the unit established. Universal's interest in the Unit will be proportionately reduced to the acreage contribution.  

	DEFINITIONS

	Area of Mutual Interest

The area identified as the Prospect Area on the plat attached hereto as Exhibit "A-1" to the Operating Agreement shall constitute the "Area of Mutual Interest" for the Lake Campo Prospect.

 

	Contract Depth

The Test Well is to be drilled at a mutually acceptable location on lands covered by the Prospect Area and included within the geographical boundaries of the Unit, in a good and workmanlike manner, to the lesser of (i) a subsurface true vertical depth of 10,000 feet, or (ii) a depth sufficient to penetrate and fully evaluate the K-6 sands as seen at the depths of 9390'-9710' TVD n the Gulf Upper Reality #1 Well, located in Section 20, T16S-R16E, Plaquemines Parish, La.  ("Contract Depth"), unless down hole conditions preclude such well from attaining Contract Depth.

 

	Casing Point

Casing Point is defined as the point at which (i) the Test Well has been drilled to Contract Depth, (ii) an appropriate suite of logs and other surveys, coring and testing that a reasonable and prudent operator would undertake to determine if an attempt should be made to complete the Test Well, or if the Test Well should be plugged and abandoned, has been completed and the results furnished to the drilling parties, and (iii) the Operator has notified the drilling parties of its recommendation with respect to the running and setting of a production string of casing and completing the well.

	 CONSIDERATION AND INTEREST ASSIGNED

	Consideration

Upon execution of this Agreement, Universal agrees to pay Yuma $88,875.00 for an undivided Eighteen and 75/100ths percent (18.75%) of the Leasehold estate and working interest created by the Leases, subject to the terms hereof.  Furthermore, contemporaneously with the execution of this Agreement, Universal agrees to pay Yuma an additional Six Thousand Two Hundred Seventy Five Dollars and No/100ths ($6,250.00), representing Universal's proportionate promoted share of a $50,000.00 drilling bonus owed by Yuma and/or its assigns to Geophysical Pursuit, Inc. and WesternGeco, LLC ("GPI/WESTERNGECO") in association with the drilling of the Test Well which amount will thereafter be remitted by Yuma to GPI/WESTERNGECO.  In this regard, an additional $50,000.00 drilling bonus will be owed by Yuma and/or its assigns to GPI/WESTERNGECO in association with any subsequent wells drilled and/or participated in by Yuma and/or its assigns on the Prospect Area, and Universal will be responsible for the payment of its proportionate share of each such additional drilling bonus, if any.

3.2.       Delay Rentals

Upon receipt of a joint interest billing therefore, Universal further agrees to pay and/or reimburse Yuma for Eighteen and 75/100ths percent (18.75%) of any delay rentals that have or must be paid pursuant to the terms of the Leases in order to maintain such Leases in force and effect until such time as the Test Well is drilled to Casing Point.  Thereafter, the payment of delay rentals under the terms and provisions of the Leases will be governed by the terms, provisions and conditions of the Operating Agreement.  

	Assignment of Working Interest

Upon Universal payment of the consideration provided for in Paragraph 3.1. above, Yuma will execute and deliver to Universal a recordable Assignment and Bill of Sale assigning to Universal an undivided Eighteen and 75/100ths percent (18.75%) of 8/8ths interest in and to the Leasehold estate created by the Leases attached on Exhibit "A", subject to (i) a proportionate share of the lessor's royalty burdening such Leases, and (ii) a reserved overriding royalty interest in and to production under the terms of such Leases equal to the difference between twenty-eight percent (28.00%) and the total of all other burdens on production under the terms of such Leases, including the lessor's royalty (the "Yuma Management Pool ORRI").  The Yuma Management Pool ORRI will include and absorb any additional burdens on production under the terms of the Leases in existence at the time of the making of an assignment to Universal of an interest therein.  In the event that either of the Leases covers less than the entire mineral estate in the Prospect Area, then the Yuma Management Pool ORRI provided for herein with respect thereto shall be proportionately reduced.  After retention of the Yuma Management Pool ORRI, Yuma will deliver to Universal a 72.00% net revenue interest with respect to production under the terms of the Leases, proportionately reduced to the Eighteen and 75/100ths percent (18.75%) of 8/8ths interest in and to the Leases so assigned to Universal. 

	Additional Burdens on Interest

The assignment to Universal of an undivided interest in and to the Leases will additionally be made subject to (i) the terms and provisions contained in the Leases, (ii) the additional burdens and obligations set forth in this Agreement (including a proportionate share of the Yuma Management Pool ORRI provided for herein), and (iii) the order of the Commissioner of Conservation of the State of Louisiana creating the aforementioned Unit.  

	Special Warranty and Representations

Yuma shall warrant the title to the undivided interest in and to the Leases assigned and conveyed by Yuma unto Universal against all parties claiming or attempting to claim the same, or any portion thereof, by, through or under Yuma, but not otherwise.  Yuma represents that (i) other than the Yuma Management Pool ORRI and the drilling bonus owed to GPI/WESTERNGECO provided for herein, it is unaware of any liens, claims or encumbrances affecting any of the Leases, (ii) the Leases are valid and subsisting in accordance with their terms, (iii) it has no knowledge of any claim having been made regarding failure to perform under the terms of any of the Leases, and (iv) to the best of Yuma's knowledge and belief, no default has occurred with respect to any material provision of any of the Leases.  

	TERMS FOR DRILLING TEST WELL 

	Operating Agreement

Yuma and Universal agree that all drilling and operations on the Well and the Prospect Area will be governed by the terms and conditions of the A.A.P.L. Form 610-1989 Model Form Operating Agreement and Copas 1989 Onshore Accounting Procedure Joint Operations with the amendments attached as Exhibit "A" hereto and made a part hereof (the "Operating Agreement") which names Helis Oil and Gas Company L.L.C., as Operator. By signing this Participation Agreement, Universal acknowledges, ratifies and agrees to be bound by the terms of  the Operating Agreement governing this Prospect Area  that was executed by and between Yuma Exploration and Helis  signed and dated January 4, 2007 which  Operating Agreement is attached as Exhibit "A" hereto. 

	Conflict between Agreements

Should there be any conflict between the terms and conditions of this Agreement and the terms and conditions of the Operating Agreement, the terms and conditions of this Agreement shall control.

	Test Well Obligation

As an integral part of the consideration being exchanged between the parties in connection with the execution and delivery of this Agreement, and as an additional inducement to Yuma to enter into this Agreement, Universal hereby obligates itself and covenants and agrees with Yuma to participate in and pay for an undivided Twelve and 50/100ths percent (12.50%) of the cost, risk and expense of drilling the Test Well, as set forth in Article VI.A. of the Operating Agreement, to Casing Point.  The Test Well is currently planned to be spudded on or before September 2007, and is to be drilled pursuant to the terms of the Operating Agreement to Contract Depth.  The spud date is subject to rig and equipment availability, permitting, and the sale of additional interests in the Lake Campo Prospect.  Universal' share of the cost, risk and expense of the drilling of the Test Well shall be remitted to Helis, as the Operator, in accordance with the terms of the Operating Agreement.  Notwithstanding any provision of this Agreement to the contrary, in the event that all parties elect to plug the Test Well upon reaching Casing Point, Universal shall nevertheless bear and pay an undivided Twelve and 50/100ths percent (12.50%) of the costs and expenses associated with the plugging and abandonment of such well.

 

	 "Casing Point" Election

At such time as the Test Well reaches Casing Point, Universal shall make its election pursuant to the terms and conditions of the Operating Agreement as to whether to attempt to complete the Test Well, or plug and abandon the same, or perform such other operations as are provided for under the terms of the Operating Agreement.

	Failure to Participate in Test Well

Except as otherwise provided in Paragraph 4.6 of this Agreement, in the event that Universal should fail to participate in the drilling of the Test Well or is deemed to be a non-consenting party to the drilling of such well under the terms and provisions of the Operating Agreement, in addition to any other rights or remedies at law or in equity to which Yuma may otherwise be entitled, Universal shall immediately forfeit and reassign to Yuma all of the interests in and to the Prospect Area and the Leases acquired by Universal from Yuma free and clear of any burdens or other encumbrances created by it, or its successors or assigns, and Universal shall not be entitled to a refund of any portion of the consideration paid to Yuma pursuant to this Agreement.

4.6.Mechanical or Gulf Coast Conditions and Substitute Well

If mechanical difficulties are experienced in the Test Well which render further drilling of the Test Well impracticable or dangerous in the opinion of the Operator of such well prior to reaching the Contract Depth or because there is encountered in such well an impenetrable formation, heaving shale, cavity, excessive pressure or water flow, loss of circulation or any other subsurface condition, similar or dissimilar, which cannot reasonably be overcome by ordinary drilling methods ("Mechanical or Gulf Coast Conditions"), then the Operator will notify the parties participating in the drilling of such well and any one of such parties may then propose to complete, or plug and abandon, the Test Well prior to reaching the Contract Depth.  In such an event, subject to the provisions of the Leases, following the Leases of the rig on the Test Well, any party that participated in the drilling of such well shall have the right and option, but not the obligation, to propose and cause to be commenced the actual drilling of another well to the Contract Depth on the lands covered by the Leases (a "Substitute Well").  Subject to the terms and provisions of this Agreement and to their respective elections as set forth in the Operating Agreement, the costs, risks and expenses associated with the drilling of a Substitute Well shall be borne by the parties in the same manner and in the same proportions as the costs, risks and expenses associated with the drilling of the Test Well.  Any Substitute Well shall be considered for all purposes as though the same were the Test Well, and should any party choose to participate in the drilling of a Substitute Well, then each such participating party shall be required to bear the costs, risks and expenses associated with the drilling of such well as if the Substitute Well were the Test Well.

In the event that the Test Well fails to reach the Contract Depth as set forth herein, such well may nevertheless be completed in a shallower formation(s) that is proved to be capable of commercial production from the subject wellbore by conventional engineering methods and/or log analysis.  In such event, notwithstanding the provisions of Paragraph 4.5 above, but subject to the other terms, provisions and conditions of this Agreement, the parties participating in the drilling and completion of such well shall nevertheless be entitled to have and retain ownership of their respective interests in and to the Prospect Area, the Leases and such well with respect to depths therein from the surface down to 100 feet below the stratigraphic equivalent of the base of the deepest producing interval in which such well is so completed, and any party failing to participate in the completion of such well or that is deemed to be a non-consenting party to the completion of such well under the terms and provisions of the Operating Agreement shall immediately forfeit and assign to the parties that participated in such completion all of its interest in and to the Prospect Area, the Leases and the Test Well, limited to the portion of the Prospect Area and the Leases included in the unit established for such completion, or if no unit is established, then the portion of the Prospect Area allocated to such completion under the terms and provisions of the Leases, only with respect to depths therein from the surface down to 100 feet below the stratigraphic equivalent of the base of the deepest producing interval in which such well is so completed, free and clear of any burdens or encumbrances created by it, or its successors and assigns, and such party shall not be entitled to any reimbursement for any costs or expenses it has incurred.

	WELL INFORMATION AND DATA

	Copies of Information and Access to Derrick Floor

Authorized employees, agents and representatives of each non-operating party participating in the drilling, sidetracking, completing or reworking of any well drilled on the Prospect Area pursuant to the terms of this Agreement and/or the Operating Agreement shall be entitled to receive copies of all geological and geophysical information obtained from such operation and shall have access to the rig floor, at their own respective cost, risk and expense, to observe all operations conducted by the Operator.  Operator shall provide advance notice to each of the non-operating parties in order that they may have their employees, agents or authorized representatives present to witness the running of logs, tests of shows encountered and production tests. 

	  OVERRIDING ROYALTY INTERESTS

	Yuma Management Pool ORRI

All oil, gas and/or mineral Leases purchased or acquired or renewed by Yuma or Universal (including those acquired by farmout or similar agreements) subsequent to the date of this Agreement within the Area of Mutual Interest shall be subject to an overriding royalty interest in favor of Yuma, or its designees, equal to the difference between twenty-eight percent (28.00%) and the total of all other burdens on production under the terms of such Leases, including the lessor's royalty (the "Yuma Management Pool ORRI"); provided, however, that the Yuma Management Pool ORRI on all such subsequently acquired oil, gas and/or mineral Leases shall in no event be less that 2.00% of 8/8ths.  Notwithstanding the foregoing provisions of this Paragraph 6.1., in the event that any such Leases covers less than the entire mineral estate in the lands covered thereby, or if less than all of the working interest is acquired in any such Leases, then the overriding royalty interest provided for herein shall be proportionately reduced.  This overriding royalty interest shall be borne by the parties hereto in proportion to their ownership in such subsequently acquired oil, gas and/or mineral Leases.  

	NOTICES

	Written or Fax Notification

All notices that are required or authorized to be given hereunder, except as otherwise specifically provided herein, shall be given in writing personally, or by mail, overnight courier service, telex or telecopier, postage or charges prepaid, and addressed to the party to whom such notice is given as follows:

Yuma Exploration and Production Company, Inc.Universal Explorations Corp.

1177 West Loop South, Suite 182530 Skyline Drive

Houston, TX 77027Lake Mary, Florida

Attn:Mr. Michael M. Hinze, CPLAttn:Mr. Dyron M. Watford

Vice President - LandChief Financial Officer

Phone:(713)968-7068        Phone:(800) 975-2076

Fax:(713)968-7021Fax:(800) 805-4561

	      Receipt of Notice

The originating notice to be given under any provisions hereof shall be deemed given when received by the party to whom such notice is directed and the time for such party to give any response thereto shall run from the date the originating notice is received.  Any subsequent responsive notice shall be deemed given when deposited with the U.S. Post Office or overnight courier service, with postage or charges prepaid, or when actually received if given personally or sent by telex or telecopier and received between the hours of 8:00 A.M. and 5:00 P.M. local time where notice is received.  If received during other hours or on Saturday, Sunday or a federal holiday, such notice shall be deemed to be received at 8:00 A.M. on the next day which is not a Saturday, Sunday or federal holiday. Any notice(s) and/or response(s) which may be made by telephone must be directly to a person, and not by recorded message, and must be confirmed in writing within forty-eight (48) hours thereafter, exclusive of Saturday, Sunday and legal holidays, consistent with the other provisions hereof.

	Change of Address

Each party shall have the right to change its address at anytime, and from time to time, by giving written notice thereof to the other parties.  

	GENERAL TERMS

	Applicable Law

This Agreement and all operations conducted on the Area of Mutual Interest and the Leases shall be subject to all valid and applicable laws, orders, rules and regulations of any governmental authority having jurisdiction over such operations.  ALL QUESTIONS ARISING OUT OF THIS AGREEMENT OR THE VALIDITY, INTERPRETATION AND PERFORMANCE OF THIS AGREEMENT SHALL BE GOVERNED AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF LOUISIANA, EXCEPT FOR ANY RULE OF LAW OF THE STATE OF LOUISIANA WHICH WOULD MAKE THE LAW OF ANY OTHER JURISDICTION APPLICABLE.  THE PARTIES HEREBY SPECIFICALLY AGREE THAT ANY SUIT OR PROCEEDING (INCLUDING ANY ALTERNATIVE DISPUTE RESOLUTION PROCEEDING) SHALL BE HELD IN HARRIS COUNTY, TEXAS.

	No Mining Partnership or Joint Venture

The obligations of the parties hereunder are intended to be separate and not joint or collective, and nothing in this Agreement nor any act by Yuma or Universal shall ever be construed or implied as creating a mining partnership, commercial partnership, or other partnership relation; it being the intention of the parties hereto not to create, and this Agreement shall never be construed to create, a mining or other partnership or joint venture.

	Separate Liability

Each party's obligations as set out in this Agreement are several and not joint and each party shall be individually responsible for its own obligations as set out in this Agreement and in the Operating Agreement.

	Successors and Assigns

This Agreement shall inure to the benefit of and be binding upon Yuma and Universal and their respective successors and assigns; and this Agreement shall constitute a covenant running with the Leases and the lands covered thereby. 

	Assignability

This Agreement and the undivided interest in and to the Leases assigned and conveyed to Universal pursuant to the terms of this Agreement may be assigned or transferred, in whole or in part, without the prior written consent of Yuma; provided, however, that any such assignment shall nevertheless be void unless it is made expressly subject to this Agreement.

	Acknowledgement and Disclaimer

UNIVERSAL represents and acknowledges that it is knowledgeable of the oil and gas business and of the usual and customary practices of producers such as YUMA and that UNIVERSAL has had access to the Leases, the offices and employees of YUMA, and the books, records and files of YUMA relating to the Leases in making the decision to enter into this Agreement and consummate the transactions contemplated hereby.  UNIVERSAL has relied solely on the basis of its own independent due diligence investigation of the Leases and, accordingly, UNIVERSAL acknowledges that YUMA has not made, and YUMA hereby expressly disclaims and negates any representation or warranty, express, implied, OR ARISING AT common law, by statute or otherwise, relating to the Leases including, without limitation, any representation or warranty with respect to title to the Leases (except as to the Special Warranty of title and the other representations expressly provided FOR in paragraph 3.5 OF this Agreement) or the quality, quantity or VALUE of the reserves of oil, gas or other hydrocarbons in or under the Leases.  UNIVERSAL acknowledges that the disclaimers contained in this paragraph are "conspicuous" for purposes of any applicable state or federal law, rule, regulation or order.

	Acknowledgement and Representations of Universal

Universal represents and acknowledges that, prior to entering into this Agreement; Universal was advised by and has relied solely on its own legal, tax and other professional counsel concerning this Agreement, the Prospect Area, the Leases and the value thereof.  Universal represents and acknowledges that it is able to bear the economic risk of any oil and gas investment Universal is obligated to or might choose to make in the Prospect Area, the Leases and well(s) to be drilled thereon and that Universal is capable of evaluating the merits and risks of investments in the Prospect Area, the Leases and well(s) to be drilled thereon.  Universal represents and acknowledges that it is acquiring an interest in the Prospect Area and the Leases for its own account and not for distribution or resale in any manner that would violate any state or federal law, rule, regulation or order.

      8.8.        Alternative Dispute Resolution

All controversies, claims and disputes arising under or relating to this Agreement, including tort claims and including the issue of arbitrability shall be first submitted to mediation and if that is unsuccessful then to binding arbitration under the procedures hereafter detailed.

      8.9.        Mediation

(i)Initiation of Mediation

Mediation, as defined in Section 154-023 of the Texas Civil Practices and Remedies Code, shall be initiated by written notice from one party to the other.  The notice shall reasonably describe and identify the issues or claims to be mediated.

(ii)Mediation in Thirty Days

Within thirty (30) days from the receipt of the written notice of mediation, the parties will attempt in good faith to mediate the issues or claims identified in the notice, or any additional issues or claims identified in writing to the other party by the party receiving the notice within seven (7) days after receipt of the original mediation notice.

    8.10.        Arbitration

(i)Initiation of Arbitration

If, after a good faith attempt to mediate, the parties are unable to resolve their controversies, claims or disputes, then either party may initiate arbitration by filing in writing a notice of demand for arbitration with the other party and with the American Arbitration Association.  The notice shall reasonably describe and identify the issues or claims to be arbitrated, the relief requested with a maximum stated for any actual damages requested, and attached to the notice shall be a true and correct copy of this Agreement and all amendments or supplements thereto.

(ii)Selecting Arbitrators

It is the intent of the parties that, to the extent practicable, the binding arbitration shall be conducted by a person mutually agreeable to the parties and knowledgeable and experienced in the type of matter that is the subject of the dispute.  In the event that the parties are unable to agree upon such person within fifteen (15) days after arbitration has been initiated by the filing of the notice, then each party shall within fifteen (15) days thereafter select a person that it believes has the qualifications set forth above as its designated arbitrator (which selection shall be accomplished by notifying the other party of the identity of such person), and such arbitrators so designated shall mutually agree upon a similarly qualified third person to complete the arbitration panel.  In the event that the persons selected by the parties are unable to agree upon a third member of the arbitration panel within ten (10) days after the selection of the latter of the two arbitrators, the American Arbitration Association shall select such person.  Neither the parties nor the American Arbitration Association can select as arbitrators former employees or former attorneys of the parties.

(iii)Commencement of Arbitration

If reasonably possible, arbitration shall be commenced within thirty (30) days after the selection of the last arbitrator.  The arbitration panel shall render its award no later than thirty (30) days after the last hearing date. 

(iv)Arbitration is Binding

The decision of the arbitrator(s) shall be final and binding upon both parties, and no party shall seek to have the applicable issues litigated rather than arbitrated (except as may be otherwise required by law). 

(v)Costs of Arbitration

The arbitrator(s) shall bill its/their fees and costs attributable to such binding arbitration in equal shares to the parties and each party shall bear its own attorneys' fees and other out-of-pocket costs expended by it.  If any party seeks to modify or overturn all or a portion of the arbitrators' award and is unsuccessful, then the opposing party shall be awarded all its reasonable attorneys' fees incurred in the arbitration.  If it becomes necessary for a prevailing party to secure judicial confirmation of the award and to otherwise undertake legal action to collect an award, then such party shall be entitled to its reasonable attorneys' fees and all costs for such actions. 

(vi)No Punitive Damages

No punitive damages are recoverable in the arbitration.  The arbitration panel is not empowered to award damages in excess of compensatory damages, and each party irrevocably waives any right to recover punitive damages. 

(vii)Arbitration Rules and Location

Except as otherwise modified herein, the arbitration shall be conducted in accordance with the Rules of Commercial Arbitration of the American Arbitration Association.  All arbitrations shall occur in Houston, Texas.

	Paragraph Headings

The paragraph headings used in this Agreement are inserted for convenience only and shall be disregarded in construing this Agreement.

	Invalidity of a Provision

If any one or more of the provisions of this Agreement shall be determined to be invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein shall not in any way be affected or impaired, and the offending provision or provisions shall be reformed and the remaining provisions interpreted so as to give effect, to the maximum extent permissible, to the agreement of the parties as set out herein. 

	Waiver of Defaults and Breaches

No waiver by either party of any one or more defaults or breach by the other party in the performance of this Agreement shall operate or be construed as a waiver of any future default or breach by the same party, whether of a like or different character.

	Entirety Clause

This Agreement contains the entire understanding of the parties hereto with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements, understandings, negotiations and discussions among the parties with respect to such subject matter.  No representations, inducements, promises, or agreements, oral or otherwise, which are not embodied in this Agreement shall be of any force or effect.  

 

If the foregoing terms and conditions confirm your understanding of our agreement, please execute in the space provided below for your signature and return one (1) fully executed original of this Agreement along with your check for Ninety Five Thousand One Hundred Twenty-Five dollars and No/100ths ($95,125.00). This agreement will be void if it is not executed by Universal and returned to Yuma along with Universal's check in the amount specified above by May 4, 2007. 

 

 

 

 
Yours very truly,

YUMA EXPLORATION AND PRODUCTION COMPANY, INC. 

/s/ Sam L. Banks

Sam L. Banks, President

 

 

 

 

ACCEPTED AND AGREED TO

THIS 2nd DAY OF May, 2007.

UNIVERSAL EXPLORATIONS CORP.

By:__/s/ Dyron M. Watford______ 

Name:__Dyron M. Watford________ 

Title:___CFO___________________Chicago Mercantile Exchange Inc. Supplemental Executive Retirement Plan

 Exhibit 10.3 
 CHICAGO MERCANTILE EXCHANGE INC. 
 GRANDFATHERED 
 SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN 
 SECTION I 
 General 
 1.1. History, Purpose and Effective Date. The Chicago Mercantile Exchange Inc. Amended and Restated Supplemental Executive Retirement Plan (the “Plan”) was established, effective as of January 1,
1993 (the “Effective Date”) by Chicago Mercantile Exchange, an Illinois not-for-profit corporation (“CME”)), to provide its eligible key management employees with an opportunity to receive additional retirement income. Pursuant
to a series of demutualization transactions and an agreement and plan of merger, effective as of November 13, 2000, Chicago Mercantile Exchange Inc., a shareholder-owned, for-profit Delaware corporation (the “Exchange”) succeeded to
the assets, liabilities and business of CME and to the power, authority and responsibility of CME under and with respect to the Plan. Effective as of December 3, 2001, pursuant to a further corporate reorganization, the Exchange became a
wholly-owned subsidiary of Chicago Mercantile Exchange Holdings Inc. (“CME Holdings”). The Plan is intended to constitute a plan maintained primarily for the purpose of providing deferred compensation for a select group of management or
highly compensated employees within the meaning of Section 201(2), 301(a)(3) and 401(a)(l) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”). 
 This document is an amendment and restatement of the Plan as in effect prior to 2005, and is applicable only to the portion (if any) of a
Participant’s Account that was vested as of December 31, 2004, including credited earnings and losses with respect thereto (the “Grandfathered Account”). The Plan, as so amended and restated, shall be sometimes referred to as the
“Chicago Mercantile Exchange Inc. Grandfathered Supplemental Executive Retirement Plan.” 
 1.2. Administration. 

(a) The Retirement Committee (the “Retirement Committee”) appointed by the Compensation Committee (the “Compensation Committee”) of
the Board of Directors of the Exchange is the Plan Administrator of the Plan. If the Compensation Committee fails to act to appoint the members of the Retirement Committee, then the Compensation Committee will be deemed to be the Retirement
Committee hereunder. The Plan Administrator shall from time to time adopt rules for the administration of the Plan and shall have the sole discretion to make decisions and take any action with respect to questions arising in connection with the
Plan, including, but not limited to, the construction and interpretation of the Plan, the resolution of any ambiguities, the determination of the conditions subject to which any benefits may be payable, the resolution of all questions concerning the
status and rights of a Participant and others under the Plan, and whether a claimant is eligible for benefits under the Plan, the determination of the 

 
amount of benefits, if any, a claimant is entitled to receive, and making any other determinations which it believes necessary or advisable for the
administration and operation of the Plan. Any such decision or action shall be final and binding upon all Participants and beneficiaries, and benefits under the Plan shall be paid only if the Plan Administrator decides in its discretion that the
claimant is entitled to them. The Plan Administrator’s decision or action in respect of any of the above shall be conclusive and binding upon all Participants and their beneficiaries, heirs, assigns, administrators, executors and any other
person claiming through or under them, subject to such individual’s rights to a review of the denial of any benefit claim under the claims procedure set forth in Section 1.11. 
 (b) In providing for the administration of the Plan, the Plan Administrator may delegate responsibilities for the operation and administration of the
Plan by written document filed with the Plan records. Any such delegation may be revoked at any time. The Secretary of the Exchange (or, on behalf of the Secretary of the Exchange, any Corporate Secretary or Assistant Secretary) shall certify to any
interested person the names of the employees of the Exchange who are, from time to time, authorized to act on behalf of the Plan Administrator and who are responsible for the day-to-day operation and administration of the Plan. The Plan
Administrator may appoint and compensate such specialists to aid it in the administration of the Plan and arrange for such other services as it considers necessary or appropriate to carry out the provisions of the Plan. 
 1.3. Plan Year. The term “Plan Year” means the calendar year. 
 1.4. Source of Benefit Payments. Subject to the terms and conditions of the Plan, any amount payable to or on account of a Participant under this
Plan shall be paid from the general assets of the Exchange or from one or more trusts, the assets of which are subject to the claims of the Exchange’s general creditors. The amounts payable hereunder shall be reflected on the accounting records
of the Exchange but shall not be construed to create, or require the creation of, a trust, custodial or escrow account. None of the individuals entitled to benefits under the Plan shall have any preferred claim on, or any beneficial ownership
interest in, any assets of the Exchange or to any investment reserves, accounts, trusts or funds that the Exchange may purchase, establish or accumulate to aid in providing the benefits under the Plan, and any rights of such individuals under the
Plan or any such reserves, accounts, trusts or funds shall constitute unsecured contractual rights only. Nothing contained in the Plan shall constitute a guarantee by the Exchange that the assets of the Exchange shall be sufficient to pay any
benefits to any person. Nothing contained in the Plan and no action taken pursuant to its provisions shall create a trust or fiduciary relationship of any kind between the Exchange and an employee or any other person. 
 1.5. Expenses. The expenses of administering the Plan shall be borne by the Exchange. 
 1.6. Effect on Other Benefit Plans. Any amounts credited or paid under this Plan shall not be considered to be compensation for the purposes of
any qualified plan (within the meaning of Section 401(a) of the Internal Revenue Code of 1986, as amended, maintained by the Exchange. The treatment of such amounts under other employee benefit plans shall be pursuant to the provisions of such
plans. 
  

 2 

 1.7. Applicable Laws. The Plan shall be construed and administered in accordance with the laws of
the State of Illinois. 
 1.8. Gender and Number. Where the context admits, words in any gender shall include any other gender, words
in the singular shall include the plural and the plural shall include the singular. 
 1.9. Notices. Any notice or document required
to be given to or filed with the Plan Administrator will be properly filed if delivered or mailed by registered mail, postage prepaid, to the Secretary of the Exchange, at its principal executive offices. The Plan Administrator may, by advance
written notice to affected persons, revise such notice procedure from time to time. Any notice required under the Plan may be waived by the person entitled to notice. 
 1.10. Evidence. Evidence required of anyone under the Plan may be by certificate, affidavit, document or other information which the person acting on it considers pertinent and reliable, and signed, made or
presented by the proper party or parties. 
 1.11. Claims Procedure. 
 (a) For purposes of the Plan, a claim for a benefit is a written application for a benefit filed with the Plan Administrator. In the event that any
Participant or other person claims to be entitled to a benefit under the Plan, and the Plan Administrator or its designee determines that such claim should be denied in whole or in part, the Plan Administrator or its designee shall, in writing,
notify such claimant within 90 days (180 days if special circumstance require) of receipt of such claim that his claim has been denied. The notice of denial will be written in a manner calculated to be understood by the average Participant and will
include the following information: (a) the specific reason for the denial; (b) specific reference to those Plan provisions on which the denial is based; (c) a description of any additional information necessary to perfect the claim
and an explanation of why the information is necessary; and (d) a description of the Plan’s review procedures, the time limits applicable to those procedures, including a statement of the claimant’s right to bring a civil action under
ERISA Section 502(a) following the denial of his claim on review. 
 (b) If the Plan Administrator requests additional information from
a claimant prior to an initial determination or a determination on appeal, the Plan Administrator will notify the claimant and permit the claimant to have 45 days to provide the requested information. The time of the Plan Administrator’s
decision will be tolled until the information is received or until the 45-day period has elapsed. If the information is not timely received by the Plan Administrator, its decision will be made without the requested information. 
 (c) Within 60 days after the mailing or delivery by the Plan Administrator or its designee of such notice, such claimant may request, by mailing or
delivery of written notice to the Plan Administrator, a review by the Plan Administrator of the decision denying the claim. The clamant may submit written comments, documents, records and other information relating to his claim, whether or not those
comments, documents, records or other information were submitted in connection with the initial claim. The claimant may also request that the Plan provide, free of charge, copies of all documents, records or other information relevant to his claim.

  

 3 

 (d) If the claimant fails to request such a review within such 60-day period, it shall be conclusively
determined for all purposes of this Plan that the denial of such claim by the Plan Administrator is correct. 
 (e) After such review, the
Plan Administrator shall determine whether such denial of the claim was correct and shall notify such claimant in writing of its determination within 60 days of receipt of the claimant’s request for review (120 days if special circumstances
require). In the case of a claim denial on review, the notice will be written in a manner calculated to be understood by the average Participant and will include the following information: (a) the specific reason or reasons for denial;
(b) specific reference to those Plan provisions on which denial is based; (c) a statement that the claimant is entitled to receive, upon written request and free of charge, reasonable access to and copies of all documents, records and
other information relevant to his claim for benefits; and (d) a statement of any voluntary appeal procedures offered by the Plan and the claimant’s right to obtain information about the procedures and to bring a civil action under ERISA
Section 502(a). 
 SECTION 2 
 Participation 
 2.1. Participant. The key employees eligible to participate in the Plan and the conditions for such
participation shall be established, from time to time, by the Exchange; provided, however, that Participants shall be limited to a select group of management or highly compensated employees within the meaning of Sections 201(1), 301(a)(2) and
401(a)(l) of ERISA. If the Exchange determines that participation by one or more Participants shall cause the Plan to be subject to Part 2, 3 or 4 of Title I of ERISA, the entire interest of such Participant or Participants under the Plan shall be
segregated from the Plan in the discretion of the Exchange, and such Participant or Participants shall cease to have any interest under the Plan. 
 2.2. Plan Not Contract of Employment. The Plan does not constitute a contract of employment, and participation in the Plan will not give any employee the right to be retained in the employ of the Exchange nor any right or claim to
any benefit under the Plan, unless such right or claim has specifically accrued under the terms of the Plan. 
 SECTION 3 

Plan Benefits 
 3.1. Deferred
Compensation Accounts. The Plan Administrator shall maintain, or cause to be maintained, an Account in the name of each Participant which shall reflect the sum of the following amounts: 
  

	 	(a)	the amount of “Deferred Compensation Credits” to be credited to the Participant’s Account in accordance with subsection 3.2; and 

  

 4 

	 	(b)	the assumed rate of earnings to be credited to the Participant’s Account in accordance with subsection 3.3. 

 3.2. Deferred Compensation Credits. Unless otherwise determined by the Compensation Committee, for each Plan Year beginning on or after
January 1, 2003, three percent of each Participant’s base earnings and bonus paid in such Plan Year shall be awarded as Deferred Compensation Credits. The amount of Deferred Compensation Credits awarded to a Participant for any such Plan
Year shall be credited to his Account as of the first business day of the next following Plan Year. 
 3.3. Adjustment of Accounts.
The amounts credited to a Participant’s Account in accordance with Section 3.2 shall be adjusted from time to time in accordance with uniform procedures established by the Plan Administrator to reflect the value of an investment equal to
the Participant’s Account balance in one or more assumed investments that the Plan Administrator offers from time to time, and which the Participant directs the Plan Administrator to use for purposes of adjusting his Account. In the event a
Participant fails to provide such direction, the Participant’s Account shall be adjusted on the basis of such default investment as the Plan Administrator shall establish from time to time. Amounts credited pursuant to this Section 3.3
shall be determined without regard to taxes that would be payable with respect to any assumed investment. The Plan Administrator may eliminate any assumed investment alternative at any time; provided, however, that the Plan Administrator may not
retroactively eliminate any assumed investment alternative. To the extent permitted by the Plan Administrator, the Participant may elect to have different portions of his Account balance for any period adjusted on the basis of different assumed
investments. Notwithstanding the election by Participants of certain assumed investments and the adjustment of their Accounts based on such investment decisions, the Plan does not require, and no trust or other instrument maintained in connection
with the Plan shall require, that any assets or amounts which are set aside in trust or otherwise for the purpose of paying Plan benefits shall actually be invested in the investment alternatives selected by Participants. 
 SECTION 4 
 Payment of Plan Benefits

 4.1. Vesting. A Participant’s vested interest in his Account shall be determined as follows: 
 (a) A Participant shall have at all times a fully vested and nonforfeitable interest in (i) the amount of any Deferred Compensation Credits credited
to the Participant’s Account on or before December 31, 1996, and (ii) any assumed investment adjustment theretofore or thereafter credited with respect to such Deferred Compensation Credits under Section 3.3. 
 (b) A Participant shall have a fully vested and nonforfeitable interest in the amount of any Deferred Compensation Credits credited to the
Participant’s Account in accordance with Section 3.2 on or after January 1, 2004 (and any assumed investment adjustments thereon) upon completion of five Years of Vesting Service (as described below). 
  

 5 

 (c) A Participant shall have a fully vested and nonforfeitable interest in the amount of any Deferred
Compensation Credits credited to the Participant’s Account in accordance with Section 3.2 on or after January 1, 1997 and before January 1, 2004 (“Post-1996 Credits”), and any assumed investment adjustments thereon, as
of December 10 of the fourth Plan Year following the Plan Year as of which such Deferred Compensation Credits are credited to the Participant’s Account. Prior thereto, the amount of any Post-1996 Credits (and any assumed investment
adjustments thereon) shall be vested and nonforfeitable as of December 10th of the Plan Year that follows the Plan Year as of which such Post-1996 Credits were credited to the Participant’s Account by the number of Plan Years determined in
accordance with the following schedule: 
  

			
	 Number of Plan Years following the
 Plan
Year as of which the Post-1996
 Credits were credited to his Account
	  	The vested percentage shall be
	 Four Plan Years
	  	100%
	 Three Plan Years
	  	66 2/3%
	 Two Plan Years
	  	33 1/3%
	 One Plan Year
	  	0%

 A Participant’s Years of Vesting Service as of any date shall be equal to the number of years of service
credited to the Participant for vesting purposes as of such date under the provisions of the Pension Plan for Employees of the Chicago Mercantile Exchange Inc. (the “Pension Plan”) or, in the case of a Participant who is not eligible to
participate in the Pension Plan, the number of years of service that would be credited to the Participant for vesting purposes under the Pension Plan as of such date if the Participant were eligible to participate in the Pension Plan. The unvested
portion of a Participant’s Account shall be forfeited upon the Participant’s separation from service. 
 4.2. Accelerated
Vesting. Notwithstanding the provisions of Section 4.1, if a Participant’s termination of active employment with the Exchange occurs on account of his death, retirement after attaining age 55 years and completing 15 years of continuous
service with the Exchange, or disability, the amount of any Post-1996 Credits (and any assumed investment adjustments thereon) not theretofore vested shall be vested and nonforfeitable as of December 10 of the Plan Year that follows the Plan
Year as of which such Post-1996 Credits were credited to the Participant’s Account by the number of Plan Years determined in accordance with the following schedule (in lieu of the schedule in Section 4.1): 
  

			
	 Number of Plan Years following the
 Plan
Year as of which the Post-1996
 Credits were credited to his Account
	  	The vested percentage shall be
	 Four Plan Years
	  	100%
	 Three Plan Years
	  	80%
	 Two Plan Years
	  	60%
	 One Plan Year
	  	40%

  

 6 

 If a Participant’s termination of active employment occurs under this Section 4.2, the portion of any Post-1996
Credits (and any investment adjustments thereon) that are not theretofore vested in accordance with Section 4.1 or the foregoing provisions of this Section 4.2 and which shall be vested and nonforfeitable as of December 10 of the Plan
Year in which credited to the Participant’s Account shall be twenty percent (20%). 
 4.3. Termination of Employment. After a
Participant’s death or termination of active employment, the vested portion of the Participant’s Account balance shall be paid in cash or in kind to or on account of the Participant as follows: 
  

	 	(a)	in a single lump sum payment as soon as practicable after his death or other termination date occurs, or 

  

	 	(b)	if elected by the Participant, in annual installments over a period of 5 or fewer years; provided, however, that any such election by a Participant who resigns or is dismissed prior
to his retirement date (within the meaning of the Exchange’s cash balance pension plan) shall require the consent of the Exchange; and provided, further, that effective January 1, 2007 any such election shall be void and of no force and
effect if the Participant separates from service within six months after making such election. 

 Any portion of his Account balance that is
not vested in accordance with subsection 4.1 or 4.2 at his termination of active employment shall be forfeited. 
 4.4. Unforeseeable
Emergencies. The Plan Administrator may, pursuant to rules adopted by it and applied in a uniform manner, accelerate the date of distribution of a Participant’s Account because of unforeseeable emergency at any time. “Unforeseeable
emergency” shall mean as determined by the Plan Administrator in accordance with uniform rules adopted by it. The amount that may be distributed pursuant to this subsection 4.4 is limited to the amount necessary to satisfy the emergency plus
amounts necessary to pay taxes reasonably anticipated as a result of the distribution, after taking into account the extent to which the hardship is or may be relieved through reimbursement or compensation by insurance or otherwise or by liquidation
of the Participant’s assets (to the extent the liquidation of such assets would not itself cause severe financial hardship). 
 4.5.
Designation of Beneficiary. Each Participant may from time to time, by signing a form furnished by the Plan Administrator, designate any legal or natural person or persons (who may be designated contingently or successively) to whom his
vested benefits under the Plan are to be paid if he dies before he receives all of his vested benefits. A beneficiary designation form will be effective only when the signed form is filed with the Plan Administrator while the Participant is alive
and will cancel all beneficiary designation forms filed earlier. Except as otherwise specifically provided in this subsection 4.5, if a deceased Participant failed to designate a beneficiary as provided above, or if the designated beneficiary of a
deceased Participant dies before him or before complete payment of the Participant’s benefits, his benefits shall be paid to the legal representative or representatives of the estate of the last to die of the Participant and his designated
beneficiary. 
  

 7 

 4.6. Distributions to Disabled Persons. Notwithstanding the provisions of this Section 4, if,
in the Plan Administrator’s opinion, a Participant or beneficiary is under a legal disability or is in any way incapacitated so as to be unable to manage his financial affairs, the Plan Administrator may direct that payment be made to a
relative or friend of such person for his benefit until claim is made by a conservator or other person legally charged with the care of his person or his estate, and such payment shall be in lieu of any such payment to such Participant or
beneficiary. Thereafter, any benefits under the Plan to which such Participant or beneficiary is entitled shall be paid to such conservator or other person legally charged with the care of his person or his estate. 
 4.7. Benefits May Not be Assigned. Neither the Participant nor any other person shall have any voluntary or involuntary right to commute, sell,
assign, pledge, anticipate, mortgage or otherwise encumber, transfer, hypothecate or convey in advance of actual receipt the amounts, if any, payable hereunder, or any part hereof, which are expressly declared to be unassignable and
non-transferable. No part of the amounts payable shall be, prior to actual payment, subject to seizure or sequestration for payment of any debts, judgments, alimony or separate maintenance owed by the Participant or any other person, or be
transferred by operation of law in the event of the Participant’s or any other person’s bankruptcy or insolvency. 
 4.8.
Withholding for Tax Liability. The Exchange may withhold or cause to be withheld from any payment of benefits made pursuant to the Plan any taxes required to be withheld and such sum as the Exchange may reasonably estimate to be necessary to
cover any taxes for which the Exchange may be liable and which may be assessed with regard to such payment. 
 4.9. Cash-Out Election.
Prior to a Participant’s termination of active employment with the Exchange, the Participant may make a one-time election (a “Cash-Out Election”) to have the entire nonforfeitable balance of his Account distributed to him, in a single
lump sum payment, in cash, within 15 days following the date that such election is filed with the Exchange, subject to the following: 
  

	 	(a)	The Participant’s nonforfeitable Account balance shall be determined under subsection 4.1 of the Plan as though the Participant had terminated from the employ of the Exchange
on the date on which the Cash-Out Election is filed and, for this purpose, the accelerated vesting provisions of subsection 4.2 shall not apply even if the Participant has attained age 55 and completed 15 years of continuous service with the
Exchange at the time of his election. 

  

	 	(b)	The amount actually distributed to an electing Participant under this subsection 4.9 shall be equal to the Participant’s nonforfeitable Account balance determined under
subparagraph (a) next above, reduced by a penalty amount equal to 10 percent of such nonforfeitable Account balance. The 10 percent penalty amount shall be deducted from the Participant’s Account and forfeited. The portion of the
Participant’s Account balance that is not distributable by reason of subsection 4.1 or 4.2 shall then be treated as set forth in subsection 4.10. 

  

 8 

	 	(c)	A Participant’s Cash-Out Election shall not be effective unless the Participant makes a corresponding election under the Chicago Mercantile Exchange Senior Management
Supplemental Deferred Savings Plan. 

 4.10. Forfeitures and Adjustments for Partial Distributions. In the event that a
distribution upon an unforeseeable emergency under subsection 4.4 or a distribution pursuant to a Cash-Out Election under subsection 4.9 is made with respect to any Participant, the portion of his Account balance that is not distributable by reason
of subsection 4.1 or 4.2 (but not any vested amount that is forfeited as a penalty under subsection 4.9) shall be credited to a “Subaccount” maintained in the Participant’s name which shall be adjusted from time to time in accordance
with Section 3.3 based on the assumed investment alternatives selected by the Participant thereunder. Upon the Participant’s subsequent termination of employment or any subsequent distribution to the Participant, the balance in his
Subaccount shall be treated as follows: 
  

	 	(a)	If the Participant’s subsequent termination of employment or distribution occurs after such Subaccount is fully vested and nonforfeitable in accordance with Section 4.1 or
4.2, the balance of such Subaccount shall be distributable to or on behalf of the Participant in accordance with Section 4. 

  

	 	(b)	If the Participant’s subsequent termination of employment or distribution occurs before the balance of the Subaccount is fully vested, the nonforfeitable balance in the
Subaccount shall be an amount determined as follows: 

  

	 	(i)	first, an amount equal to the nonforfeitable balance of his Account at the time of the previous distribution upon an unforeseeable emergency or Cash-out Election (including
the 10 percent penalty amount in the case of a Cash-Out Election) shall be added to his Subaccount balance; 

  

	 	(ii)	next, his Subaccount balance, as adjusted under subparagraph (i) next above, shall be reduced to an amount equal to the product of such balance multiplied by his vested
percentage determined under Section 4.1 or 4.2, as applicable, at the time of the subsequent termination or distribution; and 

  

	 	(iii)	finally, the adjusted Subaccount balance, as determined under subparagraph (ii) next above, shall be reduced (but not below zero) by an amount equal to the amount added
to his Subaccount balance under subparagraph (i) next above. 

 The amount determined after the foregoing adjustments shall
be nonforfeitable and distributable to or for his benefit in accordance with Section 4. The portion of his Subaccount balance, if any, which is not vested in accordance with this Section 4.10 shall be forfeited if the Participant has
terminated active employment with the Exchange, or, if the Participant’s employment has not terminated, shall continue to be adjusted in accordance with Section 3.3, and shall be further adjusted under this Section 4.10 upon the
Participant’s subsequent termination of employment or any subsequent distribution in accordance with the terms of the Plan. 
  

 9 

 Notwithstanding the foregoing provisions of this Section 4.10, and without limiting the amending authority reserved
to the Exchange by the provisions of Section 5.1 of the Plan, the Exchange may amend this Section 4.10 at any time and in any respect, even as to amounts previously credited to a Participant’s Account, to the extent that the Exchange
determines that such amendment is necessary or desirable by reason of any change in tax laws or regulations or interpretations thereof; provided, however, that no such amendment shall apply with respect to amounts actually distributed under this
Section 4.10 before the later of the date on which the amendment is adopted or effective. 
 SECTION 5 
 Amendment and Termination; Miscellaneous 
 5.1. Amendment and Termination. 
 (a) The Exchange may amend or terminate the Plan at any time and from time to time, and
retroactively if deemed necessary or appropriate. 
 (b) Any amendment of the Plan shall be effected either (i) by resolution of the
Compensation Committee or its successor, or (ii) by resolution of the Retirement Committee; provided, however, that only the Compensation Committee or its successor is authorized to approve an amendment that is anticipated to result in a
material impact to the Exchange unless it otherwise acts to delegate this responsibility; and provided further that the Retirement Committee may adopt minor or administrative amendments to the Plan, including amendments to comply with applicable
laws. 
 (c) A Plan termination shall be effected by resolution of the Compensation Committee or its successor. In the event of a termination
of the Plan, Participants’ vested Account balances shall be distributed in such manner as the Plan Administrator shall determine consistent with the requirements of Section 409A of the Code. 
 5.2. Limitation of Liability. The Exchange, its parents, subsidiaries, and affiliates, the Board of Directors of any of the foregoing, any
officer, employer or agent of any of the foregoing, and the members of the Retirement Committee shall not incur any liability individually or on behalf of any other individuals or on behalf of the Exchange or its parents, subsidiaries, or affiliates
for any act, or failure to act, made in good faith in relation to the Plan. 
 Dated
this 1st day of March, 2007. 
  

			
	 CHICAGO MERCANTILE EXCHANGE INC.

		
	By	 	 

	Its	 	Managing Director, Organizational Development

  

 10 

 CHICAGO MERCANTILE EXCHANGE INC. 
 SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN 
 (As Amended and Restated Effective
January 1, 2005) 
 SECTION 1 
 General 
 1.1. History, Purpose and Effective Date. 
 (a) The Chicago Mercantile Exchange Inc. Amended and Restated Supplemental Executive Retirement Plan (the “Plan”) was established, effective as
of January 1, 1993, by Chicago Mercantile Exchange, an Illinois not-for-profit corporation (“CME”), to provide its eligible key management employees with an opportunity to receive additional retirement income. Pursuant to a series of
demutualization transactions and an agreement and plan of merger, effective as of November 13, 2000, Chicago Mercantile Exchange Inc., a shareholder-owned, for-profit Delaware corporation (the “Exchange”) succeeded to the assets,
liabilities and business of CME and to the power, authority and responsibility of CME under and with respect to the Plan. Effective as of December 3, 2001, pursuant to a further corporate reorganization, the Exchange became a wholly-owned
subsidiary of Chicago Mercantile Exchange Holdings Inc. (“CME Holdings”). The Plan is intended to constitute a plan maintained primarily for the purpose of providing deferred compensation for a select group of management or highly
compensated employees within the meaning of Sections 201(2), 301(a)(3) and 401(a)(l) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”). 
 (b) Effective as of January 1, 2005 (the “Effective Date”), the Plan has been amended and restated to comply with Section 409A of the
Internal Revenue Code of 1986, as amended (the “Code”). 
 (c) Notwithstanding anything herein to the contrary, the terms of the
Plan as in effect prior to January 1, 2005, as modified and set forth in the document entitled “Chicago Mercantile Exchange Inc. Grandfathered Supplemental Executive Retirement Plan” (the “Pre- 2005 Plan”), shall apply to
the portion (if any) of a Participant’s Account that was vested as of December 31, 2004, including credited earnings and losses with respect thereto (the “Grandfathered Account”), and the provisions of this amended and restated Plan
shall not apply to such Grandfathered Account. 
 1.2. Plan Freeze. Effective for Plan Years beginning on or after January 1,
2006, the Plan has been frozen and no further Deferred Compensation Credits shall be awarded. 
 1.3. Administration. 
 (a) The Retirement Committee (the “Retirement Committee”) appointed by the Compensation Committee (the “Compensation Committee”) of
the Board of Directors of the Exchange is the Plan Administrator of the Plan. If the Compensation Committee fails to act to appoint the members of the Retirement Committee, then the Compensation Committee will be deemed to be the Retirement
Committee hereunder. The Plan Administrator shall from time to time adopt rules for the administration of the Plan and shall have the sole discretion to make 

 
decisions and take any action with respect to questions arising in connection with the Plan, including, but not limited to, the construction and
interpretation of the Plan, the resolution of any ambiguities, the determination of the conditions subject to which any benefits may be payable, the resolution of all questions concerning the status and rights of a Participant and others under the
Plan, and whether a claimant is eligible for benefits under the Plan, the determination of the amount of benefits, if any, a claimant is entitled to receive, and making any other determinations which it believes necessary or advisable for the
administration and operation of the Plan. Any such decision or action shall be final and binding upon all Participants and beneficiaries, and benefits under the Plan shall be paid only if the Plan Administrator decides in its discretion that the
claimant is entitled to them. The Plan Administrator’s decision or action in respect of any of the above shall be conclusive and binding upon all Participants and their beneficiaries, heirs, assigns, administrators, executors and any other
person claiming through or under them, subject to such individual’s rights to a review of the denial of any benefit claim under the claims procedure set forth in Section 1.12. 
 (b) In providing for the administration of the Plan, the Plan Administrator may delegate responsibilities for the operation and administration of the
Plan by written document filed with the Plan records. Any such delegation may be revoked at any time. The Secretary of the Exchange (or, on behalf of the Secretary of the Exchange, any Corporate Secretary or Assistant Secretary) shall certify to any
interested person the names of the employees of the Exchange who are, from time to time, authorized to act on behalf of the Plan Administrator and who are responsible for the day-to-day operation and administration of the Plan. The Plan
Administrator may appoint and compensate such specialists to aid it in the administration of the Plan and arrange for such other services as it considers necessary or appropriate to carry out the provisions of the Plan. 
 1.4. Plan Year. The term “Plan Year” means the calendar year. 
 1.5. Source of Benefit Payments. Subject to the terms and conditions of the Plan, any amount payable to or on account of a Participant under this
Plan shall be paid from the general assets of the Exchange or from one or more trusts, the assets of which are subject to the claims of the Exchange’s general creditors. The amounts payable hereunder shall be reflected on the accounting records
of the Exchange but shall not be construed to create, or require the creation of, a trust, custodial or escrow account. None of the individuals entitled to benefits under the Plan shall have any preferred claim on, or any beneficial ownership
interest in, any assets of the Exchange or to any investment reserves, accounts, trusts or funds that the Exchange may purchase, establish or accumulate to aid in providing the benefits under the Plan, and any rights of such individuals under the
Plan shall constitute unsecured contractual rights only. Nothing contained in the Plan shall constitute a guarantee by the Exchange that the assets of the Exchange shall be sufficient to pay any benefits to any person. Nothing contained in the Plan
and no action taken pursuant to its provisions shall create a trust or fiduciary relationship of any kind between the Exchange and an employee or any other person. 
  

	1.6.	Expenses. The expenses of administering the Plan shall be borne by the Exchange. 

  

 2 

 1.7. Effect on Other Benefit Plans. Any amounts credited or paid under this Plan shall not be
considered to be compensation for the purposes of any qualified plan (within the meaning of Section 401(a) of the Code) maintained by the Exchange. The treatment of such amounts under other employee benefit plans shall be in accordance with the
provisions of such plans. 
 1.8. Applicable Laws. The Plan shall be construed and administered in accordance with the laws of the
State of Illinois. 
 1.9. Gender and Number. Where the context admits, words in any gender shall include any other gender, words in
the singular shall include the plural and the plural shall include the singular. 
 1.10. Notices. Any notice or document required to
be given to or filed with the Plan Administrator will be properly filed if delivered or mailed by registered mail, postage prepaid, to the Secretary of the Exchange, at its principal executive offices. The Plan Administrator may, by advance written
notice to affected persons, revise such notice procedure from time to time. Any notice required under the Plan may be waived by the person entitled to notice. 
 1.11. Evidence. Evidence required of anyone under the Plan may be by certificate, affidavit, document or other information which the person acting on it considers pertinent and reliable, and signed, made or
presented by the proper party or parties. 
 1.12. Claims Procedure. 
 (a) For purposes of the Plan, a claim for a benefit is a written application for a benefit filed with the Plan Administrator. In the event that any
Participant or other person claims to be entitled to a benefit under the Plan, and the Plan Administrator or its designee determines that such claim should be denied in whole or in part, the Plan Administrator or its designee shall, in writing,
notify such claimant within 90 days (180 days if special circumstance require) of receipt of such claim that his claim has been denied. The notice of denial will be written in a manner calculated to be understood by the average Participant and will
include the following information: (a) the specific reason for the denial; (b) specific reference to those Plan provisions on which the denial is based; (c) a description of any additional information necessary to perfect the claim
and an explanation of why the information is necessary; and (d) a description of the Plan’s review procedures, the time limits applicable to those procedures, including a statement of the claimant’s right to bring a civil action under
ERISA Section 502(a) following the denial of his claim on review. 
 (b) If the Plan Administrator requests additional information from
a claimant prior to an initial determination or a determination on appeal, the Plan Administrator will notify the claimant and permit the claimant to have 45 days to provide the requested information. The time of the Plan Administrator’s
decision will be tolled until the information is received or until the 45-day period has elapsed. If the information is not timely received by the Plan Administrator, its decision will be made without the requested information. 
 (c) Within 60 days after the mailing or delivery by the Plan Administrator or its designee of such notice, such claimant may request, by mailing or
delivery of written notice to the Plan Administrator, a review by the Plan Administrator of the decision denying the claim. 
  

 3 

 The clamant may submit written comments, documents, records and other information relating to his claim, whether or not
those comments, documents, records or other information were submitted in connection with the initial claim. The claimant may also request that the Plan provide, free of charge, copies of all documents, records or other information relevant to his
claim. 
 (d) If the claimant fails to request such a review within such 60-day period, it shall be conclusively determined for all purposes
of this Plan that the denial of such claim by the Plan Administrator is correct. 
 (e) After such review, the Plan Administrator shall
determine whether such denial of the claim was correct and shall notify such claimant in writing of its determination within 60 days of receipt of the claimant’s request for review (120 days if special circumstances require). In the case of a
claim denial on review, the notice will be written in a manner calculated to be understood by the average Participant and will include the following information: (a) the specific reason or reasons for denial; (b) specific reference to
those Plan provisions on which denial is based; (c) a statement that the claimant is entitled to receive, upon written request and free of charge, reasonable access to and copies of all documents, records and other information relevant to his
claim for benefits; and (d) a statement of any voluntary appeal procedures offered by the Plan and the claimant’s right to obtain information about the procedures and to bring a civil action under ERISA Section 502(a). 
 SECTION 2 
 Participation

 2.1. Participant. The key employees of the Exchange eligible to participate in the Plan and the conditions for such
participation shall be established, from time to time, by the Exchange; provided, however, that Participants shall be limited to a select group of management or highly compensated employees within the meaning of Sections 201(1), 301(a)(3) and
401(a)(l) of ERISA. If the Exchange determines that participation by one or more Participants shall cause the Plan to be subject to Part 2, 3 or 4 of Title I of ERISA, the entire interest of such Participant or Participants under the Plan shall be
segregated from the Plan in the discretion of the Exchange, and such Participant or Participants shall cease to have any interest under the Plan. 
 2.2. Plan Not Contract of Employment. The Plan does not constitute a contract of employment, and participation in the Plan will not give any employee the right to be retained in the employ of the Exchange nor any right or claim to
any benefit under the Plan, unless such right or claim has specifically accrued under the terms of the Plan. 
 SECTION 3 

Plan Benefits 
 3.1. Deferred
Compensation Accounts. The Plan Administrator shall maintain, or cause to be maintained, an Account in the name of each Participant which shall reflect the sum of the following amounts: 
  

 4 

 (a) the amount of Deferred Compensation Credits to be credited to the Participant’s Account in
accordance with Section 3.2; and 
 (b) the assumed rate of earnings to be credited to the Participant’s Account in accordance with
Section 3.3. 
 The beginning balance of each Participant’s Account on the Effective Date shall be the amount credited to him under the Plan as in
effect immediately prior to the Effective Date; provided, however, that the portion of the Participant’s Account consisting of the Participant’s Grandfathered Account shall be segregated and shall be subject to the provisions of the
Pre-2005 Plan as provided under Section 1.1 (c). 
 3.2. Deferred Compensation Credits. Unless otherwise determined by the
Compensation Committee, for each Plan Year beginning on or after January 1, 2003 and prior to January 1, 2006, three percent of each Participant’s base earnings and bonus paid in such Plan Year shall be awarded as Deferred
Compensation Credits. The amount of Deferred Compensation Credits awarded to a Participant for any such Plan Year shall be credited to his Account as of the first business day of the next following Plan Year. No further Deferred Compensation Credits
shall be awarded under the Plan for Plan Years beginning on or after January 1, 2006. 
 3.3. Adjustment of Accounts. The amounts
credited to a Participant’s Account in accordance with Section 3.2 shall be adjusted from time to time in accordance with uniform procedures established by the Plan Administrator to reflect the value of an investment equal to the
Participant’s Account balance in one or more assumed investments that the Plan Administrator offers from time to time, and which the Participant directs the Plan Administrator to use for purposes of adjusting his Account. In the event a
Participant fails to provide such direction, the Participant’s Account shall be adjusted on the basis of such default investment as the Plan Administrator shall establish from time to time. Amounts credited pursuant to this Section 3.3
shall be determined without regard to taxes that would be payable with respect to any assumed investment. The Plan Administrator may eliminate any assumed investment alternative at any time; provided, however, that the Plan Administrator may not
retroactively eliminate any assumed investment alternative. To the extent permitted by the Plan Administrator, the Participant may elect to have different portions of his Account balance for any period adjusted on the basis of different assumed
investments. Notwithstanding the election by Participants of certain assumed investments and the adjustment of their Accounts based on such investment decisions, the Plan does not require, and no trust or other instrument maintained in connection
with the Plan shall require, that any assets or amounts which are set aside in trust or otherwise for the purpose of paying Plan benefits shall actually be invested in the investment alternatives selected by Participants. 
 SECTION 4 
 Payment of Plan Benefits

 4.1. Vesting. A Participant’s vested interest in his Account shall be determined as follows: 
  

 5 

 (a) A Participant shall have at all times a fully vested and nonforfeitable interest in (i) the
amount of any Deferred Compensation Credits credited to the Participant’s Account on or before December 31, 1996, and (ii) any assumed investment adjustment theretofore or thereafter credited with respect to such Deferred Compensation
Credits under Section 3.3. 
 (b) A Participant shall have a fully vested and nonforfeitable interest in the amount of any Deferred
Compensation Credits credited to the Participant’s Account in accordance with Section 3.2 on or after January 1, 2004 (and any assumed investment adjustments thereon) upon completion of five Years of Vesting Service (as described
below). 
 (c) A Participant shall have a fully vested and nonforfeitable interest in the amount of any Deferred Compensation Credits
credited to the Participant’s Account in accordance with Section 3.2 on or after January 1, 1997 and before January 1, 2004 (“Post-1996 Credits”), and any assumed investment adjustments thereon, as of December 10
of the fourth Plan Year following the Plan Year as of which such Deferred Compensation Credits are credited to the Participant’s Account. Prior thereto, the amount of any Post-1996 Credits (and any assumed investment adjustments thereon) shall
be vested and nonforfeitable as of December 10th of the Plan Year that follows the Plan Year as of which such Post-1996 Credits were credited to the Participant’s Account by the number of Plan Years determined in accordance with the
following schedule: 
  

			
	 Number of Plan Years following the
 Plan
Year as of which the Post-1996
 Credits were credited to his Account
	  	 The vested percentage shall be

		
	 Four Plan Years
	  	100%
	 Three Plan Years
	  	662/3%
	 Two Plan Years
	  	331/3%
	 One Plan Year
	  	0%

 A Participant’s Years of Vesting Service as of any date shall be equal to the number of years of service
credited to the Participant for vesting purposes as of such date under the provisions of the Pension Plan for Employees of the Chicago Mercantile Exchange Inc. (the “Pension Plan”) or, in the case of a Participant who is not eligible to
participate in the Pension Plan, the number of years of service that would be credited to the Participant for vesting purposes under the Pension Plan as of such date if the Participant were eligible to participate in the Pension Plan. The unvested
portion of a Participant’s Account shall be forfeited upon the Participant’s separation from service. 
 4.2. Accelerated
Vesting. Notwithstanding the provisions of Section 4.1, if a Participant’s separation from service with the Exchange occurs on account of his death, retirement after attaining age 55 years and completing 15 years of continuous service
with the Exchange, or disability, the amount of any Post-1996 Credits (and any assumed investment adjustments thereon) not theretofore vested shall be vested and nonforfeitable as of December 10 of the Plan Year that follows the Plan Year as of
which such Post-1996 Credits were credited to the Participant’s Account by the number of Plan Years determined in accordance with the following schedule (in lieu of the schedule in Section 4.1): 
  

			
	 Number of Plan Years following the
 Plan
Year as of which the Post-1996
 Credits were credited to his Account
	  	 The vested percentage shall be

	 Four Plan Years
	  	100%
	 Three Plan Years
	  	80%
	 Two Plan Years
	  	60%
	 One Plan Year
	  	40%

  

 6 

 If a Participant’s separation from service occurs under this Section 4.2, the portion of any Post-1996 Credits
(and any investment adjustments thereon) that are not theretofore vested in accordance with Section 4.1 or the foregoing provisions of this Section 4.2 and which shall be vested and nonforfeitable as of December 10 of the Plan Year in
which credited to the Participant’s Account shall be twenty percent (20%). 
 4.3. Payment. Except as otherwise provided in this
Section 4, the vested balance in a Participant’s Account shall be paid following the Participant’s separation from service in accordance with the Participant’s valid Payment Election made for such Account pursuant to
Section 4.4. Notwithstanding the foregoing, no portion of the Account shall be paid before the earlier of six months from the date of the Participant’s separation from service or such Participant’s death; provided, however, that the
foregoing restriction shall not affect the timing of any installment payment after the first installment. 
 4.4. Payment Election.

 (a) With respect to a Participant whose participation in the Plan commenced prior to January 1, 2005, the payment election in effect
for such Participant immediately prior to January 1, 2005 shall remain in effect until changed pursuant to Section 4.5. 
 (b)
Within 30 days after first becoming a Participant, a Participant not described in Section 4.4(a) shall elect on such form as the Plan Administrator may prescribe the time and manner in which the vested portion of a Participant’s Account
shall be distributed. Such election shall specify (i) whether the Account is to be paid in a lump sum or in substantially equal annual installments, and (ii) if installments are elected, the number of years (not to exceed five) over which
such installments are to be paid. Except as otherwise provided in this Section 4, a Participant’s Payment Election shall be irrevocable. 
 4.5. One-Time Election Change During Transition Period. A Participant may, during the Transition Period, file with the Plan Administrator an election to change his or her previous payment election; provided that such a change made
after December 31, 2005 may not change the timing of payments that the Participant would otherwise receive during the year in which the change is made, or cause payments to be made in the year in which the change is made. Any change pursuant to
this Section 4.5 must specify a form of payment consistent with Section 4.4 and shall be irrevocable. Not more than one such change shall be made with respect to any Account. For purposes hereof, the “Transition Period” means the
period commencing January 1, 2005 and ending September 30, 2006. 
  

 7 

 4.6. Unforeseeable Emergencies. 
 (a) In the event of a Participant’s Unforeseeable Emergency, such Participant may request an emergency withdrawal from his or her vested Account.
Any such request shall be subject to the approval of the Plan Administrator, which approval (a) shall only be granted to the extent reasonably needed to satisfy the need created by the Unforeseeable Emergency, and (b) shall not be granted
to the extent that such need may be relieved (i) through reimbursement or compensation by insurance or otherwise or (ii) by liquidation of the Participant’s assets (to the extent the liquidation of such assets would not itself cause
severe financial hardship). 
 (b) An “Unforeseeable Emergency” means a severe financial hardship of the Participant or beneficiary
resulting from an illness or accident of the Participant or his or her spouse or dependent (as defined in Section 152(a) of the Code), loss of the Participant’s property due to casualty (including the need to rebuild a home following
damage to a home not otherwise covered by insurance), or other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the Participant’s control. Circumstances that may constitute an Unforeseeable Emergency
include the imminent foreclosure of or eviction from the Participant’s primary residence; the need to pay for medical expenses, including non-refundable deductibles, as well as for the costs of prescription drug medication; and the need to pay
for the funeral expenses of a spouse or a dependent (as defined in Section 152(a) of the Code). The purchase of a home and the payment of college tuition generally are not Unforeseeable Emergencies. Whether the Participant is faced with an
Unforeseeable Emergency permitting an emergency withdrawal shall be determined by the Plan Administrator in its sole discretion, based on the relevant facts and circumstances and applying regulations and other guidance under Section 409A of the
Code. 
 4.7. Designation of Beneficiary. Each Participant may from time to time, by signing a form furnished by the Plan
Administrator, designate any legal or natural person or persons (who may be designated contingently or successively) to whom his benefits under the Plan are to be paid if he dies before he receives all of his vested benefits. A beneficiary
designation form will be effective only when the signed form is filed with the Plan Administrator while the Participant is alive and will cancel all beneficiary designation forms with respect to the Plan filed earlier. Except as otherwise
specifically provided in this Section 4.7, if a deceased Participant failed to designate a beneficiary as provided above, or if the designated beneficiary of a deceased Participant dies before him or before complete payment of the
Participant’s benefits, his benefits shall be paid to the legal representative or representatives of the estate of the last to die of the Participant and his designated beneficiary. 
 4.8. Distributions to Disabled Persons. Notwithstanding the provisions of this Section 4, if, in the Plan Administrator’s opinion, a
Participant or beneficiary is under a legal disability or is in any way incapacitated so as to be unable to manage his financial affairs, the Plan Administrator may direct that payment be made to a relative or friend of such person for his benefit
until claim is made by a conservator or other person legally charged with the care of his person or his estate, and such payment shall be in lieu of any such payment to such Participant or 

  

 8 

 
beneficiary. Thereafter, any benefits under the Plan to which such Participant or beneficiary is entitled shall be paid to such conservator or other person
legally charged with the care of his person or his estate. 
 4.9. Benefits May Not be Assigned. Neither the Participant nor any other
person shall have any voluntary or involuntary right to commute, sell, assign, pledge, anticipate, mortgage or otherwise encumber, transfer, hypothecate or convey in advance of actual receipt the amounts, if any, payable hereunder, or any part
hereof, which are expressly declared to be unassignable and non-transferable. No part of the amounts payable shall be, prior to actual payment, subject to seizure or sequestration for payment of any debts, judgments, alimony or separate maintenance
owed by the Participant or any other person, or be transferred by operation of law in the event of the Participant’s or any other person’s bankruptcy or insolvency. 
 4.10. Withholding for Tax Liability. The Exchange may withhold or cause to be withheld from any payment of benefits made pursuant to the Plan any
taxes required to be withheld and such sum as the Exchange may reasonably estimate to be necessary to cover any taxes for which the Exchange may be liable and which may be assessed with regard to such payment. 
 4.11. Forfeitures and Adjustments for Partial Distributions. In the event that a distribution upon an Unforeseeable Emergency under
Section 4.6 is made with respect to any Participant, the portion of his Account balance that is not distributable by reason of Section 4.1 or 4.2 shall be credited to a “Subaccount” maintained in the Participant’s name which
shall be adjusted from time to time in accordance with Section 3.3 based on the assumed investment alternatives selected by the Participant thereunder. Upon the Participant’s subsequent separation from service or any subsequent
distribution to the Participant, the balance in his Subaccount shall be treated as follows: 
 (a) If the Participant’s subsequent
separation from service or other distribution event occurs after such Subaccount is fully vested and nonforfeitable in accordance with Section 4.1 or 4.2, the balance of such Subaccount shall be distributable to or on behalf of the Participant
in accordance with Section 4. 
 (b) If the Participant’s subsequent separation from service or other distribution event occurs
before the balance of the Subaccount is fully vested, the nonforfeitable balance in the Subaccount shall be an amount determined as follows: 
  

	 	(i)	first, an amount equal to the nonforfeitable balance of his Account at the time of the previous distribution upon an Unforeseeable Emergency shall be added to his Subaccount
balance; 

  

	 	(ii)	next, his Subaccount balance, as adjusted under subparagraph (i) next above, shall be reduced to an amount equal to the product of such balance multiplied by his vested
percentage determined under Section 4.1 or 4.2, as applicable, at the time of the subsequent termination or distribution; and 

  

	 	(iii)	finally, the adjusted Subaccount balance, as determined under subparagraph (ii) next above, shall be reduced (but not below zero) by an amount equal to the amount added
to his Subaccount balance under subparagraph (i) next above. 

  

 9 

 The amount determined after the foregoing adjustments shall be nonforfeitable and distributable to or for his benefit in
accordance with Section 4. The portion of his Subaccount balance, if any, which is not vested in accordance with this Section 4.11 shall be forfeited if the Participant has separated from service, or. if the Participant has not separated
from service, shall continue to be adjusted in accordance with Section 3.3, and shall be further adjusted under this Section 4.11 upon the Participant’s subsequent separation from service or any subsequent distribution in accordance
with the terms of the Plan. 
 SECTION 5 
 Miscellaneous 
 5.1. Section 409A. This Plan is intended to comply with the requirements
of Section 409A of the Code and shall be interpreted in a manner consistent therewith. Accordingly, notwithstanding any provisions of the Plan to the contrary: 
 (a) The Plan shall be operated at all times in accordance with the requirements of Section 409A of the Code and, in the event of any inconsistency between any provision of the Plan and Section 409A, the
provisions of Section 409A shall control. 
 (b) Any provision in the Plan that is determined to violate the requirements of
Section 409A of the Code shall be void and without effect. 
 (c) Any provision required by Section 409A of the Code to appear in
the Plan document that is not expressly set forth herein shall be deemed to be set forth herein, and the Plan shall be administered in all respects as if such provision was expressly set forth herein. 
 5.2. Limitation of Liability. The Exchange, its parents, subsidiaries, and affiliates, the Board of Directors of any of the foregoing, any
officer, employer or agent of any of the foregoing, and the members of the Retirement Committee shall not incur any liability individually or on behalf of any other individuals or on behalf of the Exchange or its parents, subsidiaries, or affiliates
for any act, or failure to act, made in good faith in relation to the Plan. 
 SECTION 6 
 Amendment and Termination 
 6.1.
Amendment and Termination. 
 (a) The Exchange may amend or terminate the Plan at any time and from time to time, and retroactively if
deemed necessary or appropriate. 
 (b) Any amendment of the Plan shall be effected either (i) by resolution of the Compensation
Committee or its successor, or (ii) by resolution of the Retirement Committee; provided, however, that only the Compensation Committee or its successor is authorized to 

  

 10 

 
approve an amendment that is anticipated to result in a material impact to the Exchange unless it otherwise acts to delegate this responsibility; and
provided further that the Retirement Committee may adopt minor or administrative amendments to the Plan, including amendments to comply with applicable laws. 
 (c) A Plan termination shall be effected by resolution of the Compensation Committee or its successor. In the event of a termination of the Plan, Participants’ vested Account balances shall be distributed in such
manner as the Plan Administrator shall determine consistent with the requirements of Section 409A of the Code. 
 Dated this 1st day of March, 2007. 
  

			
	 CHICAGO MERCANTILE EXCHANGE INC.

		
	By	 	 

	Its	 	Managing Director, Organizational Development

  

 11

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00122-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00122-of-00352.parquet"}]]