Document:

exhibit10_22.htm

    
      
        

      
Exhibit 10.22

      

       

      

       

       

      

       

       

      

       

       

      

       

      Adopted
December 29 2008;

       

      Effective
with respect to all amounts

       

      deferred
on or after January 1, 2005

       

       

      

      
        
           

        

        
           

          
          

        

        
           

        

      

      TABLE OF
CONTENTS

       

       Selection
by Committee

       Page

      
        	
                 
      1

              	
                Article
      1 Definitions   

              

      

       

      
        	
                 
      5

              	
                Article
      2 Selection, Enrollment, Eligibility

              

      

       

      
        	
                 
      5

              	
                2.1

              	
                Selection
      by Committee 

              	
                   

              

      

       

      
        	
                 
      5

              	
                2.2

              	
                Enrollment
      and Eligibility Requirements; Commencement of
      Participation 

              	
                   

              

      

       

      
        	
                 
      6

              	
                2.3

              	
                Failure
      of Eligibility 

              	
                 

              

      

       

      
        	
                 
      6

              	
                Article
      3 Deferral Elections /Company Contribution Amounts/ Minimum and Maximum
      Deferrals/Vesting/Crediting/Taxes

              

      

       

      
        	
                 
      6

              	
                3.1

              	
                Election
      to Defer; Effect of Election Form 

              	
                 

              

      

       

      
        	
                 
      8

              	
                3.2

              	
                Minimum
      Deferrals 

              	
                 

              

      

       

      
        	
                 
      8

              	
                3.3

              	
                Maximum
      Deferral 

              	
                 

              

      

       

      
        	
                 
      9

              	
                3.4

              	
                Withholding
      and Crediting of Annual Deferral Amounts 

              	
                 

              

      

       

      
        	
                 
      10

              	
                3.5

              	
                Company
      Contribution Amount 

              	
                 

              

      

       

      
        	
                 
      10

              	
                3.6

              	
                Crediting
      of Amounts after Benefit Distribution 

              	
                 

              

      

       

      
        	
                 
      10

              	
                3.7

              	
                Vesting 

              	
                 

              

      

       

      
        	
                 
      11

              	
                3.8

              	
                Crediting/Debiting
      of Account Balances 

              	
                 

              

      

       

      
        	
                 
      13

              	
                3.9

              	
                FICA
      and Other Taxes 

              	
                 

              

      

       

      
        	
                 
      13

              	
                Article
      4 Scheduled Distribution; Unforeseeable Emergencies      

              

      

       

      
        	
                 
      13

              	
                4.1

              	
                Scheduled
      Distribution 

              	
                 

              

      

       

      
        	
                 
      14

              	
                4.2

              	
                Postponing
      Scheduled Distributions 

              	
                 

              

      

       

      
        	
                 
      14

              	
                4.3

              	
                Other
      Benefits Take Precedence Over Scheduled
Distributions 

              	
                 

              

      

       

      
        	
                 
      14

              	
                4.4

              	
                Unforeseeable
      Emergencies 

              	
                 

              

      

       

      
        	
                 
      15

              	
                Article
      5 Separation Benefit

              

      

       

      
        	
                 
      15

              	
                5.1

              	
                Separation
      Benefit 

              	
                 

              

      

       

      
        	
                 
      15

              	
                5.2

              	
                Payment
      of Separation Benefit 

              	
                 

              

      

       

      
        	
                 
      16

              	
                Article
      6 Disability Benefit

              

      

       

      
        	
                 
      16

              	
                6.1

              	
                Disability
      Benefit 

              	
                 

              

      

       

      
        	
                 
      16

              	
                6.2

              	
                Payment
      of Disability Benefit 

              	
                 

              

      

       

      
        	
                 
      16

              	
                Article
      7 Survivor Benefit

              

      

       

      
        	
                 
      16

              	
                7.1

              	
                Survivor
      Benefit 

              	
                 

              

      

       

      
        	
                 
      16

              	
                7.2

              	
                Payment
      of Survivor Benefit 

              	
                 

              

      

       

      
        	
                 
      16

              	
                Article
      8 Beneficiary Designation

              

      

       

      
        	
                 
      16

              	
                8.1

              	
                Beneficiary 

              	
                 

              

      

       

      
        	
                 
      16

              	
                8.2

              	
                Beneficiary
      Designation; Change; Spousal Consent 

              	
                 

              

      

       

      
        	
                 
      17

              	
                8.3

              	
                Acknowledgment 

              	
                 

              

      

       

      
        	
                 
      17

              	
                8.4

              	
                No
      Beneficiary Designation 

              	
                 

              

      

       

      
        	
                 
      17

              	
                8.5

              	
                Doubt
      as to Beneficiary 

              	
                 

              

      

       

      
        	
                 
      17

              	
                8.6

              	
                Discharge
      of Obligations 

              	
                 

              

      

       

      
        	
                 
      17

              	
                Article
      9 Leave of Absence

              

      

       

      
        	
                 
      17

              	
                9.1

              	
                Paid
      Leave of Absence 

              	
                 

              

      

       

      
        	
                 
      17

              	
                9.2

              	
                Unpaid
      Leave of Absence 

              	
                 

              

      

       

      
        	
                 
      18

              	
                9.3

              	
                Leaves
      Resulting in Separation from Service 

              	
                 

              

      

       

      
        	
                 
      18

              	
                Article
      10 Termination of Plan, Amendment or
  Modification

              

      

       

      
        	
                 
      18

              	
                10.1

              	
                Termination
      of Plan 

              	
                 

              

      

       

      
        	
                 
      18

              	
                10.2

              	
                Amendment 

              	
                 

              

      

       

      
        	
                 
      19

              	
                10.3

              	
                Plan
      Agreement 

              	
                 

              

      

       

      
        	
                 
      19

              	
                10.4

              	
                Effect
      of Payment 

              	
                 

              

      

       

      
        	
                 
      19

              	
                Article
      11 Administration

              

      

       

      
        	
                 
      19

              	
                11.1

              	
                Committee
      Duties 

              	
                 

              

      

       

      
        	
                 19
      

              	
                11.2

              	
                Administration
      Upon Change In Control 

              	
                 

              

      

       

      
        	
                 
      19

              	
                11.3

              	
                Agents 

              	
                 

              

      

       

      
        	
                 
      19

              	
                11.4

              	
                Binding
      Effect of Decisions 

              	
                 

              

      

       

      
        	
                 
      20

              	
                11.5

              	
                Indemnity
      of Committee 

              	
                 

              

      

       

      
        	
                 
      20

              	
                11.6

              	
                Employer
      Information 

              	
                 

              

      

       

      
        	
                 
      20

              	
                Article
      12 Other Benefits and Agreements

              

      

       

      
        	
                 
      20

              	
                12.1

              	
                Coordination
      with Other Benefits 

              	
                 

              

      

       

      
        	
                 
      20

              	
                Article
      13 Claims Procedures

              

      

       

      
        	
                 
      20

              	
                13.1

              	
                Presentation
      of Claim 

              	
                 

              

      

       

      
        	
                 
      20

              	
                13.2

              	
                Notification
      of Decision 

              	
                 

              

      

       

      
        	
                 
      21

              	
                13.3

              	
                Review
      of a Denied Claim 

              	
                 

              

      

       

      
        	
                 
      21

              	
                13.4

              	
                Decision
      on Review 

              	
                 

              

      

       

      
        	
                 
      21

              	
                13.5

              	
                Legal
      Action 

              	
                 

              

      

       

      
        	
                 
      22

              	
                Article
      14 Trust

              

      

       

      
        	
                 
      22

              	
                14.1

              	
                Establishment
      of the Trust 

              	
                 

              

      

       

      
        	
                 
      22

              	
                14.2

              	
                Interrelationship
      of the Plan and the Trust 

              	
                 

              

      

       

      
        	
                 
      22

              	
                14.3

              	
                Distributions
      From the Trust 

              	
                 

              

      

       

      
        	
                 
      22

              	
                Article
      15 Miscellaneous

              

      

       

      
        	
                 
      22

              	
                15.1

              	
                Status
      of Plan 

              	
                 

              

      

       

      
        	
                 
      22

              	
                15.2

              	
                Unsecured
      General Creditor 

              	
                 

              

      

       

      
        	
                 
      22

              	
                15.3

              	
                Employer’s
      Liability 

              	
                 

              

      

       

      
        	
                 
      22

              	
                15.4

              	
                Nonassignability 

              	
                 

              

      

       

      
        	
                 
      23

              	
                15.5

              	
                Not
      a Contract of Employment 

              	
                 

              

      

       

      
        	
                 
      23

              	
                15.6

              	
                Furnishing
      Information 

              	
                 

              

      

       

      
        	
                 
      23

              	
                15.7

              	
                Terms 

              	
                 

              

      

       

      
        	
                 
      23

              	
                15.8

              	
                Captions 

              	
                 

              

      

       

      
        	
                 
      23

              	
                15.9

              	
                Governing
      Law 

              	
                 

              

      

       

      
        	
                 
      23

              	
                15.10

              	
                Notice

              	
                 

              	
                 

              

      

       

      
        	
                 
      23

              	
                15.11

              	
                Successors 

              	
                 

              

      

       

      
        	
                 
      23

              	
                15.12

              	
                Validity 

              	
                 

              

      

       

      
        	
                 
      23

              	
                15.13

              	
                Incompetent 

              	
                 

              

      

       

      
        	
                 
      24

              	
                15.14

              	
                Court
      Order 

              	
                 

              

      

       

      
        	
                 
      24

              	
                15.15

              	
                Distribution
      in the Event of Income Inclusion Under 409A 

              	
                 

              

      

       

      
        	
                 
      24

              	
                15.16

              	
                Deduction
      Limitation on Benefit Payments 

              	
                 

              

      

       

      
        	
                 
      24

              	
                15.17

              	
                Insurance 

              	
                 

              

      

       

      
        	
                 
      25

              	
                15.18

              	
                Legal
      Fees To Enforce Rights 

              	
                 

              

      

       

      
        	
                 
      1

              	
                APPENDIX
      A  Limited Transition Relief made Available in Accordance with
      Code Section 409a and Related Treasury Guidance and
      Regulations

              

      

       

      
        	
                
                   
      1

                

              	
                Opportunity
      to Make New Distribution Elections 

              	
                 

              

      

       

      
        	
                  1

              	
                Termination
      of Plan Participation/Cancellation of Deferral
    Elections 

              	
                 

              

      

       

      

      

      THE
VAIL CORPORATION

       

      2005
DEFERRED COMPENSATION PLAN

       

      Purpose

       

      The
purpose of this Plan is to provide specified benefits to a select group of
management or highly compensated Employees who contribute materially to the
continued growth, development and future business success of The Vail
Corporation, d/b/a Vail Associates, Inc., a Colorado corporation, and any of its
affiliates or subsidiaries that adopts this Plan as a participating
employer.  This Plan shall be unfunded for tax purposes and for
purposes of Title I of ERISA.

       

      The terms
of this Plan shall govern all amounts deferred on or after January 1, 2005,
including (i) any amounts previously credited to the Vail Corporation Deferred
Compensation Plan adopted on September 15, 2000 (“Frozen Plan”) that
remained unvested after December 31, 2004 (the “Transfer Amount”), and (ii)
any amounts that are deemed subject to Section 409A as a result of a
modification of the Frozen Plan.  This Plan is intended to comply with
all applicable law, including Code Section 409A and related Treasury
guidance and Regulations, and shall be operated and interpreted in accordance
with this intention.  Consistent with the foregoing, and in order to
transition the Plan to the requirements of Code Section 409A and related
Treasury guidance and Regulations, the Committee has made available, or will
make available, to Participants certain transition relief described more fully
in Appendix A of this Plan.

       

      ARTICLE
1

       

      Definitions

       

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

       

      
        	
                1.1  

              	
                “Account
      Balance” shall mean, with respect to a Participant, an entry on the
      records of the Employer equal to the sum of (i) the Participant’s
      Annual Accounts, and (ii) the Participant’s Transfer Amount, if any,
      along with related earnings.  The Account Balance shall be a
      bookkeeping entry only and shall be utilized solely as a device for the
      measurement and determination of the amounts to be paid to a Participant,
      or his or her designated Beneficiary, pursuant to this
    Plan.

              

      

       

      
        	
                1.2  

              	
                “Annual
      Account” shall mean, with respect to a Participant, an entry on the
      records of the Employer equal to the following
      amount:  (i) the sum of the Participant’s Annual Deferral
      Amount and Company Contribution Amount for any one Plan Year, plus
      (ii) amounts credited or debited to such amounts pursuant to this
      Plan, less (iii) all distributions made to the Participant or his or
      her Beneficiary pursuant to this Plan that relate to the Annual Account
      for such Plan Year.  The Annual Account shall be a bookkeeping
      entry only and shall be utilized solely as a device for the measurement
      and determination of the amounts to be paid to a Participant, or his or
      her designated Beneficiary, pursuant to this
  Plan.

              

      

       

      
        	
                1.3  

              	
                “Annual
      Deferral Amount” shall mean that portion of a Participant’s Base Salary
      (including any 401(k) Refund Offset, as defined below), Bonus and Director
      Fees that a Participant defers in accordance with Article 3 for any one
      Plan Year, without regard to whether such amounts are withheld and
      credited during such Plan Year.  In the event of a Participant’s
      Separation from Service, Disability or death prior to the end of a Plan
      Year, such year’s Annual Deferral Amount shall be the actual amount
      withheld prior to such event.

              

      

       

      
        	
                1.4  

              	
                “Annual
      Installment Method” shall be an annual installment payment over the number
      of years selected by the Participant in accordance
      with this Plan, calculated as follows:  (i) for the first
      annual installment, the vested portion of each Annual Account shall be
      calculated as of the close of business on or around the Participant’s
      Benefit Distribution Date, as determined by the Committee in its sole
      discretion, and (ii) for
      remaining annual installments, the vested portion of each applicable
      Annual Account shall be calculated on or around the first business day of
      each Plan Year following the Plan Year in which the Participant’s first
      installment payment was distributed.  Each annual installment
      shall be calculated by multiplying this balance by a fraction, the
      numerator of which is one and the denominator of which is the remaining
      number of annual payments due to the Participant.  By way of
      example, if the Participant elects a ten (10) year Annual Installment
      Method as the form of Separation Benefit for an Annual Account, the first
      payment shall be 1/10 of the vested balance of such Annual Account,
      calculated as described in this definition.  The following year,
      the payment shall be 1/9 of the vested balance of such Annual Account,
      calculated as described in this
definition.

              

      

       

      
        	
                1.5  

              	
                “Base
      Salary” shall mean the Participant’s base cash compensation for services
      performed during any Plan Year, which, for purposes of clarity, excludes
      distributions from nonqualified deferred compensation plans, bonuses,
      commissions, overtime, fringe benefits, stock options and other equity
      incentive awards, relocation expenses, incentive payments, non-monetary
      awards, director fees and other fees, and automobile and other allowances
      paid to a Participant for employment services rendered (whether or not
      such allowances are included in the Employee’s gross
      income).  Base Salary shall be calculated before reduction for
      compensation voluntarily deferred or contributed by the Participant
      pursuant to all qualified or nonqualified plans of any Employer and shall
      be calculated to include amounts not otherwise included in the
      Participant’s gross income under Code Sections 125, 402(e)(3),
      402(h), or 403(b) pursuant to plans established by any Employer; provided,
      however, that all such amounts will be included in Base Salary only to the
      extent that had there been no such plan, the amount would have been
      payable in cash to the Employee.

              

      

       

      
        	
                1.6  

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

              

      

       

      
        	
                1.7  

              	
                “Beneficiary
      Designation Form” shall mean the form, which may be electronic,
      established from time to time by the Committee, that a Participant
      completes and returns to the Committee to designate one or more
      Beneficiaries.

              

      

       

      
        	
                1.8  

              	
                “Benefit
      Distribution Date” shall mean a date that triggers distribution of a
      Participant’s vested benefits upon Separation from Service, death, or
      Disability.  A Benefit Distribution Date for a Participant shall
      be determined upon the occurrence of any one of the
    following:

              

      

       

      
        	
                (a)  

              	
                If
      the Participant experiences a Separation from Service, the Benefit
      Distribution Date for his or her vested Account Balance shall be the last
      day of the six-month period immediately following the date on which the
      Participant experiences a Separation from Service; provided, however, in
      the event the Participant either changes the form of payment or postpones
      the time of payment of the Separation Benefit for one or more Annual
      Accounts in accordance with Section 5.2(c), the Benefit Distribution
      Date for such Annual Account(s) shall be postponed in accordance with such
      section 5.2(c); or

              

      

       

      
        	
                (b)  

              	
                If
      the Participant dies prior to the complete distribution of his or her
      vested Account Balance, the Participant’s Benefit Distribution Date shall
      be the date on which the Committee is provided with proof that is
      satisfactory to the Committee of the Participant’s death;
    or

              

      

       

      
        	
                (c)  

              	
                If
      the Participant becomes Disabled, the Participant’s Benefit Distribution
      Date shall be the date on which the Participant becomes
      Disabled.

              

      

       

      
        	
                1.9  

              	
                “Board”
      shall mean the board of directors of the
  Company.

              

      

       

      
        	
                1.10  

              	
                “Bonus”
      shall mean compensation earned by a Participant under any Employer’s cash
      bonus plans, and shall specifically include amounts described in
      Section 3.1(d), 3.1(e), and
3.1(f).

              

      

       

      
        	
                1.11  

              	
                “Change
      in Control” shall mean any “change in control event” as defined in
      accordance with Code Section 409A and related Treasury guidance and
      Regulations.

              

      

       

      
        	
                1.12  

              	
                “Claimant”
      shall have the meaning set forth in
  Section 13.1.

              

      

       

      
        	
                1.13  

              	
                “Class
      1 Participant” shall mean a Participant who has a salary grade level of 30
      or above.

              

      

       

      
        	
                1.14  

              	
                “Class
      2 Participant” shall mean a Participant who has a salary grade level of
      less than 30.

              

      

       

      
        	
                1.15  

              	
                “Code”
      shall mean the Internal Revenue Code of 1986, as it may be amended from
      time to time.

              

      

       

      
        	
                1.16  

              	
                “Committee”
      shall mean the committee described in Article
  11.

              

      

       

      
        	
                1.17  

              	
                “Company”
      shall mean The Vail Corporation, d/b/a Vail Associates, Inc., a Colorado
      corporation, and any successor to all or substantially all of the
      Company’s assets or business.

              

      

       

      
        	
                1.18  

              	
                “Company
      Contribution Amount” shall mean, for any one Plan Year, the amount
      determined in accordance with
Section 3.5.

              

      

       

      
        	
                1.19  

              	
                “Director”
      shall mean any member of the board of directors of any
      Employer.

              

      

       

      
        	
                1.20  

              	
                “Director
      Fees” shall mean the fees otherwise payable in cash to a Director by any
      Employer, including cash retainer fees and cash meetings fees, as
      compensation for serving on the board of
  directors.

              

      

       

      
        	
                1.21  

              	
                “Disability”
      or “Disabled” shall mean that a Participant is (i) unable to engage
      in any substantial gainful activity by reason of any medically
      determinable physical or mental impairment which can be expected to result
      in death or can be expected to last for a continuous period of not less
      than 12 months, or (ii) by reason of any medically determinable
      physical or mental impairment which can be expected to result in death or
      can be expected to last for a continuous period of not less than
      12 months, receiving income replacement benefits for a period of not
      less than 3 months under an accident or health plan covering
      employees of the Participant’s Employer.  For purposes of this
      Plan, a Participant shall be deemed Disabled if determined to be totally
      disabled by the Social Security Administration, or if determined to be
      disabled in accordance with the applicable disability insurance program of
      such Participant’s Employer, provided that the definition of “disability”
      applied under such disability insurance program complies with the
      requirements in the preceding
sentence.

              

      

       

      
        	
                1.22  

              	
                “Disability
      Benefit” shall mean the benefit set forth in Article
  6.

              

      

       

      
        	
                1.23  

              	
                “Election
      Form” shall mean the form, which may be in electronic format, established
      from time to time by the Committee in its sole discretion, that a
      Participant completes and returns to the Committee in order to make
      elections under the Plan.

              

      

       

      
        	
                1.24  

              	
                “Employee”
      shall mean a person who is a common-law employee of any
      Employer.  Notwithstanding the foregoing, the term Employee
      shall not
      include any individual (a) who provides services to the Employer under an
      agreement, contract, or any other arrangement pursuant to which the
      individual is initially classified as an independent contractor, or (b)
      whose remuneration for services has not been treated initially as subject
      to the withholding of federal income tax pursuant to Code section 3401,
      even if the individual is subsequently reclassified as a common law
      employee as a result of a final decree of a court of competent
      jurisdiction or the settlement of an administrative or judicial
      proceeding.

              

      

       

      
        	
                1.25  

              	
                “Employer(s)”
      shall mean the Company and/or any of its affiliates or subsidiaries (now
      in existence or hereafter formed or acquired) that have been selected by
      the Board to participate in the Plan and have adopted the Plan as a
      participating employer.

              

      

       

      
        	
                1.26  

              	
                “ERISA”
      shall mean the Employee Retirement Income Security Act of 1974, as it may
      be amended from time to time.

              

      

       

      
        	
                1.27  

              	
                “401(k)
      Plan” shall mean, with respect to an Employer, a plan qualified under Code
      Section 401(a) that contains a cash or deferred arrangement described
      in Code Section 401(k), adopted by the Employer, as it may be amended
      from time to time, or any successor
thereto.

              

      

       

      
        	
                1.28  

              	
                “Participant”
      shall mean any Employee or Director (i) who is selected to
      participate in the Plan, (ii) who completes the Enrollment
      Requirements and becomes eligible to participate in the Plan in accordance
      with Section 2.2, and (iii) whose Plan Agreement (if any) has
      not terminated.

              

      

       

      
        	
                1.29  

              	
                “Plan”
      shall mean The Vail Corporation 2005 Deferred Compensation Plan, which
      shall be evidenced by this instrument and by each Plan Agreement, as they
      may be amended from time to time.

              

      

       

      
        	
                1.30  

              	
                “Plan
      Agreement” shall mean an agreement, which may be amended from time to
      time, which is entered into by and between an Employer and a
      Participant.  Each Plan Agreement between a Participant and the
      Participant’s Employer shall provide for the entire benefit to which such
      Participant is entitled under the Plan; should there be more than one Plan
      Agreement, the Plan Agreement bearing the latest date of acceptance by the
      Employer shall supersede all previous Plan Agreements in their entirety
      and shall govern such entitlement.  The terms of any Plan
      Agreement may be different for any Participant, and any Plan Agreement may
      provide additional benefits or distribution options not set forth in the
      Plan or limit the benefits or distribution options otherwise provided
      under the Plan; provided, however, that any such additional benefits or
      distribution options, or benefit limitations or distribution limitations,
      shall comply with Code Section 409A and must be agreed to by both the
      Employer and the Participant.

              

      

       

      
        	
                1.31  

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

              

      

       

      
        	
                1.32  

              	
                “Scheduled
      Distribution” shall mean the distribution set forth in
      Section 4.1.

              

      

       

      
        	
                1.33  

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

              

      

       

      
        	
                1.34  

              	
                “Separation
      from Service” shall mean the separation from service with all Employers,
      voluntarily or involuntarily, for any reason other than Disability or
      death, as determined in accordance with Code Section 409A and related
      Treasury guidance and Regulations.  If a Participant is both an
      Employee and a Director, then, except as otherwise required by Code
      Section 409A and related Treasury guidance and Regulations, a Separation
      from Service shall not occur prior to the termination of his or her
      services as both an Employee and a
Director.

              

      

       

      
        	
                1.35  

              	
                “Survivor
      Benefit” shall mean the benefit set forth in Article
  7.

              

      

       

      
        	
                1.36  

              	
                “Terminate
      the Plan” or “Termination of the Plan” shall mean a determination by an
      Employer’s board of directors that (i) all of its Participants shall
      no longer be eligible to participate in the Plan, (ii) no new
      deferral elections for such Participants shall be permitted, and
      (iii) such Participants shall no longer be eligible to receive
      company contributions under this
Plan.

              

      

       

      
        	
                1.37  

              	
                “Trust”
      shall mean one or more trusts established by the Company in accordance
      with Article 14.

              

      

       

      
        	
                1.38  

              	
                “Unforeseeable
      Emergency” shall mean a severe financial hardship of the Participant
      resulting from (i) an illness or accident of the Participant, the
      Participant’s spouse, or the Participant’s dependent (as defined in Code
      Section 152(a)), (ii) a loss of the Participant’s property due
      to casualty, or (iii) such other similar extraordinary and
      unforeseeable circumstances arising as a result of events beyond the
      control of the Participant, all as determined in the sole discretion of
      the Committee.

              

      

       

      ARTICLE
2

       

      Selection, Enrollment,
Eligibility

       

      
        	
                2.1  

              	
                Selection by
      Committee

              

      

       

      .  Participation
in the Plan shall be limited to Directors (who shall be eligible on and after
January 1, 2007) and, as determined by the Committee in its sole discretion, a
select group of management or highly compensated Employees.  From that
group, the Committee shall select, in its sole discretion, those individuals who
are eligible to participate in this Plan and the date on which such individuals
become eligible to participate.

       

      
        	
                2.2  

              	
                Enrollment and
      Eligibility Requirements; Commencement of
    Participation

              

      

       

      .

       

      
        	
                (a)  

              	
                As
      a condition of participation, each Director or selected Employee who is
      eligible to participate in the Plan must (i) complete and return to the
      Committee an Election Form, and (ii) must complete such other enrollment
      requirements as the Committee determines, in its sole discretion (together
      the “Enrollment Requirements”), which, on and after January 1, 2007, shall
      include the completion and return to the Committee of a Plan Agreement and
      a Beneficiary Designation Form.

              

      

       

      
        	
                (b)  

              	
                A
      Director or selected Employee who is eligible to participate in the Plan
      effective as of the first day of a Plan Year shall complete the Enrollment
      Requirements prior to the first day of such Plan Year, or such other
      earlier deadline as may be established by the Committee in its sole
      discretion.  Assuming timely completion of the Enrollment
      Requirements, as determined by the Committee in its sole discretion, the
      Director or selected Employee shall commence participation in the Plan as
      of such first day of the Plan Year.

              

      

       

      
        	
                (c)  

              	
                A
      Director or selected Employee who first becomes eligible to participate in
      this Plan after the first day of a Plan Year must complete the Enrollment
      Requirements within thirty (30) days after he or she first becomes
      eligible to participate in the Plan, or within such other earlier deadline
      as may be established by the Committee, in its sole discretion. The
      Director or selected Employee shall commence participation in the Plan on
      the date that the Committee determines, in its sole discretion, that the
      Director or selected Employee has timely satisfied the Enrollment
      Requirements.  Notwithstanding the foregoing, the Committee
      shall process such Participant’s deferral election as soon as
      administratively practicable after such deferral election is submitted to
      and accepted by the Committee.

              

      

       

      
        	
                (d)  

              	
                If
      a Director or a selected Employee fails to satisfy timely the Enrollment
      Requirements within the relevant period required, the Director or selected
      Employee shall not be eligible to participate in the Plan during such Plan
      Year and shall not commence participation until the first day of the Plan
      Year next following the date on which the Director or selected Employee
      does complete the Enrollment
Requirements.

              

      

       

      
        	
                2.3  

              	
                Failure of
      Eligibility

              

      

       

      .  If
the Committee determines, in its sole and absolute discretion, that any
Participant (i) shall no longer be eligible to participate in the Plan, or
(ii) no longer qualifies as a member of a select group of management or
highly compensated employees of the Employer, then the Participant shall cease
active participation in the Plan and all contributions by or on the
Participant’s behalf shall cease on the date determined by the Committee, in its
sole and absolute discretion, after taking into account (1) the requirements of
Code Section 409A and related Treasury guidance and Regulations, and (2)
the intent of the Plan to be a “top-hat” plan complying with Sections 201(2),
301(a)(3) and 401(a)(1) of ERISA.  The Committee’s determination shall
be final and binding on all persons.

       

      ARTICLE
3

       

      Deferral Elections /Company
Contribution Amounts/

       

      Minimum and Maximum
Deferrals/Vesting/Crediting/Taxes

       

      
        	
                3.1  

              	
                Election to Defer;
      Effect of Election Form

              

      

       

      .

       

      
        	
                (a)  

              	
                First
      Year of Plan Participation.  In connection with a
      Participant’s commencement of participation in the Plan, the Participant
      shall make an irrevocable election to defer Base Salary, Bonus, and/or
      Director Fees (as applicable) for the Plan Year in which the Participant
      commences participation in the Plan. For the election to be valid, the
      Election Form must be completed by the Participant and delivered timely to
      (and accepted by) the Committee along with the remainder of the Enrollment
      Requirements in accordance with Section 2.2
  above.

              

      

       

      The
Participant’s election shall not apply to
compensation paid with respect to services performed prior to the date the
Participant commences participation in the Plan, except to the extent
permissible under Code Section 409A and related Treasury guidance or
Regulations.  For compensation that is earned based upon a specified
performance period, the Participant’s deferral election will apply solely to the
portion of such compensation that is equal to (i) the total amount of
compensation for the performance period, multiplied by (ii) a fraction, the
numerator of which is the number of days remaining in the service period after
the Participant commences participation in the Plan, and the denominator of
which is the total number of days in the performance period.

       

      
        	
                (b)  

              	
                Subsequent
      Plan Years.  For each succeeding Plan Year, a Participant
      may elect to defer Base Salary, Bonus, and/or Director Fees (as
      applicable), and make such other elections as the Committee deems
      necessary or desirable under the Plan, by delivering timely a new Election
      Form to the Committee, in accordance with its rules and procedures, before
      the December 31st
      preceding the Plan Year in which such compensation is earned, or before
      such earlier deadline established by the Committee in accordance with the
      requirements of Code Section 409A and related Treasury guidance or
      Regulations.

              

      

       

      Any
deferral election(s) made in accordance with this Section 3.1(b) shall be
irrevocable; provided, however, that if the Committee requires Participants to
make a deferral election for “performance-based compensation,” “compensation
subject to forfeiture,” or “fiscal year compensation” by the deadline(s)
described above, it may, in its sole discretion, and in accordance with Code
Section 409A and related Treasury guidance or Regulations, permit a
Participant to subsequently change his or her deferral election for such
compensation by submitting an Election Form to the Committee no later than the
deadline established by the Committee pursuant to Section 3.1(d), (e), or
(f) below.

       

      
        	
                (c)  

              	
                401(k)
      Refund Offset.  In connection with each Participant’s
      deferral election under the Plan for each Plan Year, the Participant shall
      be permitted to elect to defer an amount of Base Salary equal to the
      refund, if any, that the Participant receives from the Employer’s 401(k)
      Plan during such Plan Year (the “401(k) Refund
  Offset’).

              

      

       

      
        	
                (d)  

              	
                Performance-Based
      Compensation. Notwithstanding
      anything to the contrary herein, the Committee may, in its sole
      discretion, determine that an irrevocable deferral election pertaining to
      “performance-based compensation” based on services performed over a period
      of at least twelve (12) months, may be made by delivering timely an
      Election Form to the Committee, in accordance with its rules and
      procedures, no later than six (6) months before the end of the performance
      service period.  “Performance-based compensation” shall be
      compensation, the payment or amount of which is contingent on
      pre-established organizational or individual performance criteria, which
      satisfies the requirements of Code Section 409A and related Treasury
      guidance or Regulations.  In order to be eligible to make a
      deferral election for performance-based compensation, a Participant must
      perform services continuously from a date no later than the date upon
      which the performance criteria for such compensation are established
      through the date upon which the Participant makes a deferral election for
      such compensation.  In no event shall an election to defer
      performance-based compensation be permitted after such compensation has
      become both substantially certain to be paid and readily
      ascertainable.  For purposes of this Plan, including the minimum
      and maximum deferral limits below, “performance based compensation”
      deferred pursuant to this Section shall be treated as part of a
      Participant’s Bonus and Annual Deferral Amount for the Plan Year in which
      the performance service period
ends.

              

      

       

      
        	
                (e)  

              	
                Compensation
      Subject to Risk of Forfeiture.  With respect to
      compensation (i) to which a Participant has a legally binding right
      to payment in a subsequent year, and (ii) that is subject to a
      forfeiture condition requiring the Participant’s continued services for a
      period of at least twelve (12) months from the date the Participant
      obtains the legally binding right, the Committee may, in its sole
      discretion, determine that an irrevocable deferral election for such
      compensation may be made by delivering timely an Election Form to the
      Committee in accordance with its rules and procedures, no later than the
      30th
      day after the Participant obtains the legally binding right to the
      compensation, provided that the election is made at least twelve (12)
      months in advance of the earliest date at which the forfeiture condition
      could lapse.  For purposes of this Plan, including the minimum
      and maximum deferral limits below, compensation deferred pursuant to this
      Section shall be treated as part of a Participant’s Bonus and Annual
      Deferral Amount for the Plan Year in which the forfeiture condition
      lapses.

              

      

       

      
        	
                (f)  

              	
                Fiscal
      Year Compensation.  With respect to any Participant whose
      Employer uses a fiscal year other than the calendar year, the Committee
      may, in its sole discretion, permit the Participant to defer compensation
      relating to a period of service coextensive with one or more consecutive
      fiscal years of such Employer (of which no amount is paid or payable
      during the service period), by delivering timely an Election Form with
      respect to such compensation to the Committee not later than the close of
      the Employer’s fiscal year next preceding the first fiscal year in which
      are performed any services for which such compensation is payable. For
      purposes of the Plan, including the minimum and maximum deferral limits
      below, compensation deferred pursuant to this Section shall be treated as
      part of a Participant’s Bonus and Annual Deferral Amount for the Plan Year
      during which the payment is earned.

              

      

       

      
        	
                3.2  

              	
                Minimum
      Deferrals

              

      

       

      .

       

      
        	
                (a)  

              	
                Annual
      Deferral Amount.

              

      

       

      
        	
                (i)  

              	
                Effective
      for Plan Years beginning prior to January 1, 2007, a Participant cannot
      elect to defer as his or her Annual Deferral Amount less than the
      following minimum amounts of Base Salary and
  Bonus:

              

      

       

      
        	
                Deferral

              	
                Minimum
      Amount

              
	
                Base
      Salary (including any 401(k) Refund
      Offset) and/or Bonus

              	
                $1,000
      aggregate

              

      

      

       

      
        	
                (ii)  

              	
                Effective
      for Plan Years beginning on and after January 1, 2007 through December 31,
      2008, a Participant cannot defer as his or her Annual Deferral Amount less
      than the following minimum amounts of Base Salary, Bonus, and/or Director
      Fees:

              

      

       

      
        	
                Deferral

              	
                Minimum
      Amount

              
	
                Base
      Salary (including any 401(k) Refund
      Offset) and/or Bonus

              	
                $2,000
      aggregate

              
	
                Director
      Fees

              	
                $0

              

      

      

       

      
        	
                (iii)  

              	
                If
      the Committee determines, in its sole discretion, prior to the beginning
      of a Plan Year that a Participant has made an election for less than the
      stated minimum amounts, or if no election is made, the amount deferred
      shall be zero.  If the Committee determines, in its sole
      discretion, at any time after the beginning of a Plan Year that a
      Participant has deferred less than the stated minimum amounts for that
      Plan Year, any amount credited to the Participant’s applicable Annual
      Account as the Annual Deferral Amount for that Plan Year shall, to the
      extent permitted by Code Section 409A and related Treasury guidance and
      Regulations, be distributed to the Participant within sixty (60) days
      after the last day of the Plan Year in which the Committee determination
      was made.

              

      

       

      
        	
                (b)  

              	
                First
      Year of Plan Participation.  Notwithstanding the
      foregoing, if a Participant first becomes a Participant after the first
      day of a Plan Year beginning on or after January 1, 2007, the minimum deferral
      amounts shall be equal to the minimums set forth above, multiplied by a
      fraction, the numerator of which is the number of complete months
      remaining in the Plan Year and the denominator of which
      is 12.

              

      

       

      
        	
                3.3  

              	
                Maximum
      Deferral

              

      

       

      .

       

      
        	
                (a)  

              	
                Annual
      Deferral Amount.

              

      

       

      
        	
                (i)  

              	
                Effective
      for Plan Years beginning prior to January 1, 2007, a Participant cannot
      elect to defer as his or her Annual Deferral Amount, compensation in
      excess of the following maximum
  amounts/percentages:

              

      

       

      
        	
                CLASS
      1 PARTICIPANTS

              
	
                Deferral

              	
                Maximum
      Percentage

              
	
                401(k)
      Refund Offset

              	
                100%

              
	
                Base
      Salary (not including any 401(k)
      Refund Offset)

              	
                95%

              
	
                Bonus

              	
                95%

              

      

      

       

      
        	
                CLASS
      2 PARTICIPANTS

              
	
                Deferral

              	
                Maximum
      Percentage

              
	
                401(k)
      Refund Offset

              	
                100%

              
	
                Base
      Salary (not including any 401(k)
      Refund Offset)

              	
                0%

              
	
                Bonus

              	
                0%

              

      

      

       

      
        	
                (ii)  

              	
                Effective
      for Plan Years beginning on and after January 1, 2007, a Participant
      cannot defer as his or her Annual Deferral Amount, compensation in excess
      of the following maximum
percentages:

              

      

       

      
        	
                Deferral

              	
                Maximum
      Percentage

              
	
                401(k)
      Refund Offset

              	
                100%

              
	
                Base
      Salary (not including any 401(k)
      Refund Offset)

              	
                80%

              
	
                Bonus

              	
                100%

              
	
                Director
      Fees

              	
                100%

              

      

      

      
        	
                (b)  

              	
                First
      Year of Plan Participation.  Notwithstanding the
      foregoing, in the Participant’s first year of Plan participation, the maximum
      deferral percentages above shall be applied to (i) prospective
      compensation and
      (ii) amounts earned prior to the deferral election, as long as (ii) can be
      permissibly deferred under Code Section 409A (e.g. performance-based
      compensation).  For compensation that is earned based upon a
      specified performance period, the portion of such compensation earned with
      respect to services performed after the date the Participant commences
      participation in the Plan shall be deemed to include (i) the total
      amount of compensation for the performance period, multiplied by
      (ii) a fraction, the numerator of which is the number of days
      remaining in the service period after the Participant commences
      participation in the Plan, and the denominator of which is the total
      number of days in the performance
period.

              

      

       

      
        	
                3.4  

              	
                Withholding and
      Crediting of Annual Deferral
Amounts

              

      

       

      .  For
each Plan Year, the Base Salary portion of the Annual Deferral Amount (excluding any 401(k)
Refund Offset) shall be withheld from each regularly scheduled Base Salary
payroll on a pro-rata basis.  The 401(k) Refund Offset portion of the
Annual Deferral Amount shall be withheld in full from the regularly scheduled
Base Salary paydate next following the date on which the 401(k) refund is paid.
The Bonus portion of the Annual Deferral Amount shall be withheld at the time
the Bonus otherwise would be paid to the Participant, whether or not this occurs
during the Plan Year itself.  Director Fees shall be withheld on a
pro-rata basis from regularly scheduled payments of retainer fees, or when such
fees and any cash meeting fees are paid, as determined by the Committee, in its
sole discretion.  Annual Deferral Amounts shall be credited to the
Participant’s Annual Account for such Plan Year at the time such amounts would
otherwise have been paid to the Participant.

       

      
        	
                3.5  

              	
                Company Contribution
      Amount

              

      

       

      .

       

      
        	
                (a)  

              	
                For
      each Plan Year, an Employer may be required to credit amounts to a
      Participant’s Annual Account in accordance with employment or other
      agreements entered into between the Participant and the Employer, which
      amounts shall be part of the Participant’s Company Contribution Amount for
      that Plan Year.  Such amounts shall be credited to the
      Participant’s Annual Account for the applicable Plan Year on the date or
      dates prescribed by such
agreements.

              

      

       

      
        	
                (b)  

              	
                For
      each Plan Year, an Employer, in its sole discretion, may, but is not
      required to, credit any amount it desires to any Participant’s Annual
      Account under this Plan, which amount shall be part of the Participant’s
      Company Contribution Amount for that Plan Year.  The amount so
      credited to a Participant may be smaller or larger than the amount
      credited to any other Participant, and the amount credited to any
      Participant for a Plan Year may be zero, even though one or more other
      Participants receive a Company Contribution Amount for that Plan
      Year.  The Company Contribution Amount described in this
      Section 3.5(b), if any, shall be credited to the Participant’s Annual
      Account for the applicable Plan Year on a date or dates to be determined
      by the Committee, in its sole
discretion.

              

      

       

      
        	
                3.6  

              	
                Crediting of Amounts
      after Benefit Distribution

              

      

       

      .  Notwithstanding
any provision in this Plan to the contrary, should the complete distribution of
a Participant’s vested Account Balance occur as a result of the Participant’s
Separation from Service, death, or Disability, prior to the date on which any
portion of (i) the Annual Deferral Amount that a Participant has elected to
defer in accordance with Section 3.1, or (ii) the Company Contribution
Amount would otherwise be credited to the Participant’s Account Balance, such
amounts shall not be credited to the Participant’s Account Balance, but shall be
paid to the Participant in a manner determined by the Committee, in its sole
discretion.

       

      
        	
                3.7  

              	
                Vesting

              

      

       

      .

       

      
        	
                (a)  

              	
                A
      Participant shall at all times be 100% vested in his or her deferrals of
      Base Salary, Bonus and Director
Fees.

              

      

       

      
        	
                (b)  

              	
                A
      Participant shall be vested in the portion of his or her Account Balance
      attributable to any Company Contribution Amounts, plus amounts credited or
      debited on such amounts (pursuant to Section 3.8), in accordance with
      the vesting schedule(s) set forth in his or her Plan Agreement, employment
      agreement or any other agreement entered into between the Participant and
      his or her Employer.  If not addressed in such agreements, a
      Participant shall vest in the portion of his or her Account Balance
      attributable to any Company Contribution Amounts, plus amounts credited or
      debited on such amounts (pursuant to Section 3.8), in accordance with
      the vesting schedule declared by the Committee in its sole
      discretion.  The Employer and the Committee may accelerate the
      vesting schedules of one or more Participants, at any time and for any
      reason, in their sole discretion.

              

      

       

      
        	
                (c)  

              	
                Notwithstanding
      anything to the contrary contained in this Section 3.7, in the event
      of a Change in Control, or upon a
      Participant’s death while employed by an Employer, or Disability, any amounts that
      are not vested in accordance with the vesting schedules set forth in this
      Section 3.7, shall immediately become 100% vested (if it is not
      already vested in accordance with the above vesting
      schedules).

              

      

       

      
        	
                (d)  

              	
                Notwithstanding
      subsection 3.7(c) above, and except as set forth in
      Section 3.7(e) below, the vesting schedules set forth in this
      Section 3.7 shall not be accelerated upon a Change in Control to the
      extent that the Committee determines that such acceleration would cause
      the deduction limitations of Section 280G of the Code to become
      effective where they otherwise would not be.  In the event of
      such a determination, the Participant may request independent verification
      of the Committee’s calculations with respect to the application of
      Section 280G.  In such case, the Committee must provide to
      the Participant within ninety (90) days of such a request an opinion from
      a nationally recognized accounting firm selected by the Participant (the
      “Accounting Firm”).  The opinion shall state the Accounting
      Firm’s opinion that any limitation in the vested percentage hereunder is
      necessary to avoid the limits of Section 280G and contain supporting
      calculations.  The cost of such opinion shall be paid for by the
      Company.

              

      

       

      
        	
                (e)  

              	
                Section 3.7(b)
      shall not apply if an employment agreement or other agreement between the
      Participant and the Employer (including any change in control severance
      plan or similar plan) contains provisions regarding the treatment of
      amounts that could be subject to Section 280G and the excise tax
      under Section 4999.

              

      

       

      
        	
                3.8  

              	
                Crediting/Debiting of
      Account Balances

              

      

       

      .  In
accordance with and subject to the rules and procedures that are established
from time to time by the Committee, in its sole discretion, amounts shall be
credited or debited to a Participant’s Account Balance in accordance with the
following rules:

       

      
        	
                (a)  

              	
                Measurement
      Funds.  The Committee shall select from time to time
      certain mutual funds, insurance company separate accounts, indexed rates
      or other methods (the “Measurement Funds”) for purposes of crediting or
      debiting additional amounts to Participants’ Account
      Balances.  The Committee may discontinue, substitute or add a
      Measurement Fund, provided however, that (1) any decision to retain,
      discontinue or substitute a Measurement Fund shall be made in good faith
      and (2) there shall at all times be a minimum of eight Measurement
      Funds of materially different risk and return
      characteristics.  Any discontinuance of a Measurement Fund will
      take effect not earlier than the first day of the first calendar quarter
      that begins at least thirty (30) days after the day on which the Committee
      gives Participants advance notice of such change, unless such advance
      notice cannot be given due to reasons beyond the control of the Company or
      the Committee, in which case notice of the change shall be given as soon
      as administratively practical.

              

      

       

      
        	
                (b)  

              	
                Election
      of Measurement Funds.  A Participant, in connection with
      his or her initial deferral election in accordance with
      Section 3.1(a) above, shall elect, on the Election Form, one or more
      Measurement Fund(s) (as described in Section 3.8(a) above) to be used
      to determine the amounts to be credited or debited to his or her Account
      Balance.  If a Participant does not elect any of the Measurement
      Funds as described in the previous sentence, the Participant’s Account
      Balance may automatically be allocated into a default Measurement Fund
      which is selected by the Committee.  A Participant may (but is
      not required to) elect, by submitting an Election Form to the Committee
      that is accepted by the Committee or by any other procedure approved by
      the Committee, to add or delete one or more Measurement Fund(s) to be used
      to determine the amounts to be credited or debited to the Participant’s
      Account Balance, or to change the portion of the Participant’s Account
      Balance allocated to each previously or newly elected Measurement
      Fund.  If an election is made in accordance with the previous
      sentence, it shall be implemented as soon as practical after receipt by
      the Committee and shall continue thereafter for each subsequent day in
      which there is an Account Balance with respect to the Participant, unless
      changed in accordance with the previous sentence.  The Committee
      may limit the number of Measurement Fund changes that a Participant may
      elect, provided that a Participant shall be entitled to elect such a
      change not less frequently than quarterly. The Committee may provide that
      any change shall not take effect until a date that is not later than the
      first business day of the calendar quarter following the Committee’s
      receipt of such an election.

              

      

       

      
        	
                (c)  

              	
                Proportionate
      Allocation.  In making any election described in
      Section 3.8(b) above, the Participant shall specify on the Election
      Form, in increments of one percent (1%), the percentage of his or her
      Account Balance or Measurement Fund, as applicable, to be
      allocated/reallocated.

              

      

       

      
        	
                (d)  

              	
                Crediting
      or Debiting Method.  The performance of each elected
      Measurement Fund (either positive or negative) will be determined by the
      Committee based on the performance of the Measurement Funds
      themselves.  A Participant’s Account Balance shall be credited
      or debited not less frequently than on a monthly basis based on the
      performance of each selected Measurement Fund for the corresponding period
      of time.

              

      

       

      
        	
                (e)  

              	
                No
      Actual Investment.  Notwithstanding any other provision
      of this Plan that may be interpreted to the contrary, the Measurement
      Funds are to be used for measurement purposes only, and a Participant’s
      election of any such Measurement Fund, the allocation of his or her
      Account Balance thereto, the calculation of additional amounts and the
      crediting or debiting of such amounts to a Participant’s Account Balance
      shall not be considered or construed in any manner as an actual investment
      of his or her Account Balance in any such Measurement Fund.  In
      the event that the Company or the Trustee (as that term is defined in the
      Trust), in its own discretion, decides to invest funds in any or all of
      the investments on which the Measurement Funds are based, no Participant
      shall have any rights in or to such investments
      themselves.  Without limiting the foregoing, a Participant’s
      Account Balance shall at all times be a bookkeeping entry only and shall
      not represent any investment made on his or her behalf by the Company or
      the Trust; the Participant shall at all times remain an unsecured creditor
      of the Company.

              

      

       

      
        	
                (f)  

              	
                Plan
      Expenses.  The Committee may, but need not, deduct from
      Participants’ Account Balances expenses incurred in the administration and
      maintenance of the Plan.  In such case, the Committee shall
      deduct expenses as follows:

              

      

       

      
        	
                (i)  

              	
                expenses
      that are attributable solely to an individual Participant may be deducted
      solely from that Participant’s Account Balance or may be apportioned as
      Plan level expenses, below.

              

      

       

      
        	
                (ii)  

              	
                expenses
      that are not attributable solely to an individual Participant shall be
      plan level expenses that shall be deducted from all of the Account
      Balances of all Participants in the Plan in one of the following two
      methods, as selected by the Committee in its sole and absolute
      discretion:

              

      

       

      
        	
                (A)  

              	
                on
      a pro-rata basis from all of the Account Balances in the Plan based on the
      amount then  held in each Account Balance in relation to the
      aggregate amount then held in all of the Account Balances under the
      Plan.

              

      

       

      
        	
                (B)  

              	
                equally
      among all of the Account Balances in the
Plan

              

      

       

      
        	
                3.9  

              	
                FICA and Other
      Taxes

              

      

       

      .

       

      
        	
                (a)  

              	
                Annual
      Deferral Amounts.  For each Plan Year in which an Annual
      Deferral Amount is being withheld from a Participant, the Participant’s
      Employer(s) shall withhold from that portion of the Participant’s Base
      Salary and/or Bonus that is not being deferred, in a manner determined by
      the Employer(s), the Participant’s share of FICA and other employment
      taxes on such Annual Deferral Amount.  If necessary, the
      Committee may reduce the Annual Deferral Amount in order to comply with
      this Section 3.9.

              

      

       

      
        	
                (b)  

              	
                Company
      Contribution Amounts.  When a Participant becomes vested
      in a portion of his or her Account Balance attributable to any Company
      Contribution Amounts, the Participant’s Employer(s) shall withhold from
      that portion of the Participant’s Base Salary and/or Bonus that is not
      deferred, in a manner determined by the Employer(s), the Participant’s
      share of FICA and other employment taxes on such amounts.  If
      necessary, the Committee may reduce the vested portion of the
      Participant’s Company Contribution Amount, as applicable, in order to
      comply with this Section 3.9.

              

      

       

      
        	
                (c)  

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

              

      

       

      ARTICLE
4

       

      Scheduled Distribution;
Unforeseeable Emergencies

       

      
        	
                4.1  

              	
                Scheduled
      Distribution

              

      

       

      .  In
connection with each election to defer an Annual Deferral Amount, a Participant
may irrevocably elect to receive a Scheduled Distribution, in the form of a lump
sum payment from the Plan.  Unless otherwise provided on an Election
Form approved by the Committee in its sole discretion, a Scheduled Distribution
election shall apply to 100% of a Participant’s Annual Deferral
Amount.  The amount of a Scheduled Distribution shall be equal to the
portion of the Annual Deferral Amount the Participant elected to have
distributed as a Scheduled Distribution, plus amounts credited or debited in the
manner provided in Section 3.8 above on that amount, calculated as of the
close of business on or around the date on which the Scheduled Distribution
becomes payable, as determined by the Committee in its sole
discretion.  Subject to the other terms and conditions of this Plan,
each Scheduled Distribution elected shall be paid out during a sixty (60) day
period commencing immediately after the first day of any Plan Year designated by
the Participant (the “Scheduled Distribution Date”).  The Plan Year
designated by the Participant must be at least three (3) Plan Years after the
end of the Plan Year to which the Participant’s deferral election described in
Section 3.1 relates, unless otherwise provided on an Election Form approved
by the Committee in its sole discretion.  By way of example, if a
Scheduled Distribution is elected for Annual Deferral Amounts for the Plan Year
commencing January 1, 2007, the earliest Scheduled Distribution Date that
may be designated by a Participant would be January 1, 2011, and the
Scheduled Distribution would become payable during the sixty (60) day period
commencing immediately after such Scheduled Distribution Date.

       

      
        	
                4.2  

              	
                Postponing Scheduled
      Distributions

              

      

       

      . A
Participant may elect to postpone a Scheduled Distribution described in
Section 4.1 above, and have such amount paid out during a sixty (60) day
period commencing immediately after an allowable alternative distribution date
designated by the Participant in accordance with this
Section 4.2.  In order to make this election, the Participant
must submit a new Scheduled Distribution Election Form to the Committee in
accordance with the following criteria:

       

      
        	
                (a)  

              	
                Such
      Scheduled Distribution Election Form must be submitted to and accepted by
      the Committee in its sole discretion at least twelve (12) months prior to
      the Participant’s previously designated Scheduled Distribution
      Date;

              

      

       

      
        	
                (b)  

              	
                The
      new Scheduled Distribution Date selected by the Participant must be the
      first day of a Plan Year, and must be at least five years after the
      previously designated Scheduled Distribution Date;
  and

              

      

       

      
        	
                (c)  

              	
                The
      election of the new Scheduled Distribution Date shall have no effect until
      at least twelve (12) months after the date on which the election is
      made.

              

      

       

      
        	
                4.3  

              	
                Other Benefits Take
      Precedence Over Scheduled
Distributions

              

      

       

      .  Should
a Benefit Distribution Date occur that triggers a benefit under Articles 5,
6 or 7, any Annual Deferral Amount that is subject to a Scheduled Distribution
election under Section 4.1 shall not be paid in accordance with
Section 4.1, but shall be paid in accordance with the other applicable
Article.  Notwithstanding the foregoing, the Committee shall interpret
this Section 4.3 in a manner that is consistent with Code Section 409A
and related Treasury guidance and Regulations.

       

      
        	
                4.4  

              	
                Unforeseeable
      Emergencies

              

      

       

      .

       

      
        	
                (a)  

              	
                If
      the Participant experiences an Unforeseeable Emergency, the Participant
      may petition the Committee to receive a partial or full payout from the
      Plan, subject to the provisions set forth
below.

              

      

       

      
        	
                (b)  

              	
                The
      payout, if any, from the Plan shall not exceed the lesser of (i) the
      Participant’s vested Account Balance, calculated as of the close of
      business on or around the date on which the amount becomes payable, as
      determined by the Committee in its sole discretion, or (ii) the
      amount necessary to satisfy the Unforeseeable Emergency, plus amounts
      necessary to pay Federal, state, or local income taxes or penalties
      reasonably anticipated as a result of the
      distribution.  Notwithstanding the foregoing, a Participant may
      not receive a payout from the Plan to the extent that the Unforeseeable
      Emergency is or may be relieved (A) through reimbursement or
      compensation by insurance or otherwise, (B) by liquidation of the
      Participant’s assets, to the extent the liquidation of such assets would
      not itself cause severe financial hardship or (C) by cessation of
      deferrals under this Plan.

              

      

       

      
        	
                (c)  

              	
                If
      the Committee, in its sole discretion, approves a Participant’s petition
      for payout from the Plan, the Participant shall receive a payout from the
      Plan within sixty (60) days of the date of such approval, and the
      Participant’s deferrals under the Plan shall be terminated as of the date
      of such approval.

              

      

       

      
        	
                (d)  

              	
                In
      addition, a Participant’s deferral elections under this Plan shall be
      terminated to the extent the Committee determines, in its sole discretion,
      that termination of such Participant’s deferral elections is required
      pursuant to Treas. Reg. § 1.401(k)-1(d)(3) for the Participant to
      obtain a hardship distribution from an Employer’s 401(k)
      Plan.  If the Committee determines, in its sole discretion, that
      a termination of the Participant’s deferrals is required in accordance
      with the preceding sentence, the Participant’s deferrals shall be
      terminated as soon as administratively practicable following the date on
      which such determination is made.

              

      

       

      
        	
                (e)  

              	
                Notwithstanding
      the foregoing, the Committee shall interpret all provisions relating to a
      payout and/or termination of deferrals under this Section 4.4 in a
      manner that is consistent with Code Section 409A and related Treasury
      guidance and Regulations.

              

      

       

      ARTICLE
5

       

      Separation
Benefit

       

      
        	
                5.1  

              	
                Separation
      Benefit

              

      

       

      .  A
Participant who experiences a Separation from Service shall receive, as a
Separation Benefit, his or her vested Account Balance, calculated as of the
close of business on or around the Participant’s Benefit Distribution Date, as
determined by the Committee in its sole discretion.

       

      
        	
                5.2  

              	
                Payment of Separation
      Benefit

              

      

       

      .

       

      
        	
                (a)  

              	
                In
      connection with a Participant’s election to defer an Annual Deferral
      Amount, the Participant shall elect the form in which his or her Annual
      Account for such Plan Year will be paid.  The Participant may
      elect to receive each Annual Account in the form of a lump sum or pursuant
      to an Annual Installment Method of up to ten (10) years.  If a
      Participant does not make any election with respect to the payment of an
      Annual Account, then the Participant shall be deemed to have elected to
      receive such Annual Account as a lump
sum.

              

      

       

      
        	
                (b)  

              	
                A
      Participant may subsequently elect to either change the form of payment or
      postpone the timing of payment for an Annual Account by submitting an
      Election Form to the Committee in accordance with the following
      criteria:

              

      

       

      
        	
                (i)  

              	
                The
      election shall have no effect until at least twelve (12) months after the
      date on which the election is made;
and

              

      

       

      
        	
                (ii)  

              	
                The
      first payment related to such Annual Account shall be delayed at least
      five (5) years from the originally scheduled Benefit Distribution Date for
      such Annual Account, as described in
  Section 1.8(a).

              

      

       

       

      For
purposes of applying the requirements above, the right to receive an Annual
Account in installment payments shall be treated as the entitlement to a single
payment.  The Committee shall interpret all provisions relating to an
election described in this Section 5.2 in a manner that is consistent with
Code Section 409A and related Treasury guidance or
Regulations.

       

      
        	
                (c)  

              	
                The
      Election Form most recently accepted by the Committee that has become
      effective shall govern the payout of the applicable Annual Account;
      provided, however, that if the total value of Participant’s vested Account
      Balance is less than $10,000 at the time of the Participant’s Benefit
      Distribution Date, the Participant’s entire vested Account Balance shall
      be distributed to the Participant in a lump sum payment notwithstanding a
      Participant’s election to receive one or more Annual Accounts in
      installment payments.

              

      

       

      
        	
                (d)  

              	
                The
      lump sum payment shall be made, or installment payments shall commence, no
      later than sixty (60) days after the Benefit Distribution
      Date.  Remaining installments, if any, shall continue in
      accordance with the Participant’s election for each Annual Account, and
      shall be paid no later than sixty (60) days after the first day of each
      Plan Year following the Plan Year in which the Participant’s first
      installment payment for such Annual Account was
    distributed.

              

      

       

      ARTICLE
6

       

      Disability
Benefit

       

      
        	
                6.1  

              	
                Disability
      Benefit

              

      

       

      .  Upon
a Participant’s Disability, the Participant shall receive a Disability Benefit,
which shall be equal to the Participant’s vested Account Balance, calculated as
of the close of business on or around the Participant’s Benefit Distribution
Date, as selected by the Committee in its sole discretion.

       

      
        	
                6.2  

              	
                Payment of Disability
      Benefit

              

      

       

      . The Disability Benefit
shall be paid to the Participant in a lump sum payment no later than sixty (60)
days after the Participant’s Benefit Distribution Date.

       

      ARTICLE
7                      

       

      Survivor
Benefit

       

      
        	
                7.1  

              	
                Survivor
      Benefit

              

      

       

      .  The
Participant’s Beneficiary(ies) shall receive a Survivor Benefit upon the
Participant’s death which will be equal to the Participant’s vested Account
Balance, calculated as of the close of business on or around the Participant’s
Benefit Distribution Date, as selected by the Committee in its sole
discretion.

       

      
        	
                7.2  

              	
                Payment of Survivor
      Benefit

              

      

       

      .  The
Survivor Benefit shall be paid to the Participant’s Beneficiary(ies) in a lump
sum payment no later than sixty (60) days after the Participant’s Benefit
Distribution Date.

       

      ARTICLE
8

       

      Beneficiary
Designation

       

      
        	
                8.1  

              	
                Beneficiary

              

      

       

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

       

      
        	
                8.2  

              	
                Beneficiary
      Designation; Change; Spousal
Consent

              

      

       

      .

       

      
        	
                (a)  

              	
                General.  A
      Participant shall designate his or her Beneficiary by completing the
      Beneficiary Designation Form and returning it to the Committee or its
      designated agent.  A Participant shall have the right to change
      a Beneficiary by completing, and otherwise complying with, the terms of
      the Beneficiary Designation Form and the Committee’s rules and procedures,
      as in effect from time to time.  If the Participant names
      someone other than his or her current spouse as a Beneficiary, spousal
      consent shall be required to be provided in a form designated by the
      Committee, executed by such Participant’s spouse and returned to the
      Committee, in order for the designation to be valid.  Upon the
      acceptance by the Committee of a new Beneficiary Designation Form, all
      Beneficiary designations previously filed shall be
      canceled.  The Committee shall be entitled to rely on the last
      Beneficiary Designation Form filed by the Participant and accepted by the
      Committee prior to his or her
death.

              

      

       

      
        	
                (b)  

              	
                Divorce.  If
      a Participant has designated his spouse as his Beneficiary, and the
      Participant and this spouse subsequently divorce, then the Beneficiary
      designation shall be void and of no effect on the day such divorce is
      final.  The Participant may, however, re-designate such former
      spouse as a Beneficiary on a Beneficiary Designation Form completed after
      the divorce is final.

              

      

       

      
        	
                (c)  

              	
                Death.  In
      the event a Beneficiary predeceases the Participant, then such Beneficiary
      shall cease to be a Beneficiary and shall cease to have any interest in
      the Participant’s benefits hereunder as of the Beneficiary’s
      death.  For avoidance of doubt, the foregoing provisions shall
      supersede any inconsistent state law, and any putative state law interest
      in the benefits hereunder of a Beneficiary (including the Participant’s
      spouse) who has predeceased the Participant shall automatically revert to
      the Participant (or shall, if applicable, automatically pass to the
      Participant’s remaining and/or contingent Beneficiaries if the same would
      be consistent with the intent of the Participant’s Beneficiary Designation
      Form); no such interest shall be transferable by the deceased Beneficiary
      in any manner, including but not limited to such Beneficiary’s will, nor
      shall such interest pass under the laws of intestate
      succession.

              

      

       

      
        	
                8.3  

              	
                Acknowledgment

              

      

       

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

       

      
        	
                8.4  

              	
                No Beneficiary
      Designation

              

      

       

      .  If
a Participant fails to designate a Beneficiary as provided in Sections 8.1,
8.2 and 8.3 above or, if all designated Beneficiaries predecease the Participant
or die prior to complete distribution of the Participant’s benefits, then the
Participant’s designated Beneficiary shall be the same as the Participant’s
beneficiary under the Vail Resorts 401(k) Retirement Plan, or if none, the
Beneficiary shall be the executor or personal representative of the
Participant’s estate.

       

      
        	
                8.5  

              	
                Doubt as to
      Beneficiary

              

      

       

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

       

      
        	
                8.6  

              	
                Discharge of
      Obligations

              

      

       

      .  The
payment of benefits under the Plan to a Beneficiary shall fully and completely
discharge all Employers and the Committee from all further obligations under
this Plan with respect to the Participant and his or her designated Beneficiary
under the Plan, and that Participant’s Plan Agreement shall terminate upon such
full payment of benefits.

       

      ARTICLE
9

       

      Leave of
Absence

       

      
        	
                9.1  

              	
                Paid Leave of
      Absence

              

      

       

      .  If
a Participant is authorized by the Participant’s Employer to take a paid leave
of absence from the employment of the Employer, and such leave of absence does
not constitute a Separation from Service, as determined by the Committee,
(i) the Participant shall continue to be considered eligible for the
benefits provided in Article 4, Article 5, Article 6 or Article 7 in accordance
with the provisions of those Articles, and (ii) the Annual Deferral
Amount shall
continue to be withheld during such paid leave of absence in accordance with
Section 3.1.

       

      
        	
                9.2  

              	
                Unpaid Leave of
      Absence

              

      

       

      .  If
a Participant is authorized by the Participant’s Employer to take an unpaid
leave of absence from the employment of the Employer for any reason, and such
leave of absence does not constitute a Separation from Service, as determined by
the Committee, such Participant shall continue to be eligible for the benefits
provided in Article 4, Article 5, Article 6 or Article 7 in accordance with the
provisions of those Articles. However, the Participant shall be excused from
fulfilling his or her Annual Deferral Amount commitment that would otherwise
have been withheld during the remainder of the unpaid leave of absence, and, to
the extent permitted under Code Section 409A and related Treasury guidance and
Regulations, for the remainder of the Plan Year in which the unpaid leave of
absence is taken.  During the unpaid leave of absence, the Participant
shall not be allowed to make any additional deferral
elections.  However, if the Participant returns to employment, the
Participant may elect to defer an Annual Deferral Amount for the Plan Year
following his or her return to employment and for every Plan Year thereafter
while a Participant in the Plan, provided such deferral elections are otherwise
allowed and an Election Form is delivered to and accepted by the Committee for
each such election in accordance with Section 3.1 above.

       

      
        	
                9.3  

              	
                Leaves Resulting in
      Separation from Service

              

      

       

      .  In
the event that a Participant’s leave of absence from his or her Employer
constitutes a Separation from Service, as determined by the Committee, the
Participant’s vested Account Balance shall be distributed to the Participant in
accordance with Article 5 and/or any other applicable provisions of this
Plan.

       

      ARTICLE
10

       

      Termination of Plan,
Amendment or Modification

       

      
        	
                10.1  

              	
                Termination of
      Plan

              

      

       

      .  Although
each Employer anticipates that it will continue the Plan for an indefinite
period of time, there is no guarantee that any Employer will continue the Plan
or will not terminate the Plan at any time in the
future.  Accordingly, each Employer reserves the right to Terminate
the Plan.  In the event of a Termination of the Plan, the Measurement
Funds available to affected Participants following the Termination of the Plan
shall thereafter be comparable in number and type to those Measurement Funds
available to affected Participants immediately prior to the Termination of the
Plan.  Following a
Termination of the Plan, affected Participant Account Balances shall remain in
the Plan until the Participant becomes eligible for the benefits provided in
Article 4, Article 5, Article 6 or Article 7 in accordance with the provisions
of those Articles. The Termination of the
Plan shall not adversely affect any Participant or Beneficiary who has become
entitled to the payment of any benefits under the Plan as of the date of
termination.  Notwithstanding the foregoing, to the extent permissible
under Code Section 409A and related Treasury guidance or Regulations,
during the thirty (30) days preceding or within twelve (12) months following a
Change in Control, an Employer shall be permitted to (i) terminate the Plan
by action of its board of directors, and (ii) distribute the vested Account
Balances to Participants in a lump sum no later than twelve (12) months after
the Change in Control, provided that all other substantially similar
arrangements sponsored by such Employer (and such related Employers as are
required to be taken into account under Code Section 409A and related
Treasury guidance and Regulations) are also terminated and all balances in such
arrangements are distributed within twelve (12) months of the termination of
such arrangements.

       

      
        	
                10.2  

              	
                Amendment

              

      

       

      .

       

      
        	
                (a)  

              	
                The
      Company may, at any time, amend or modify the Plan in whole or in part,
      provided that (i) no amendment or modification shall be effective to
      decrease the value of a Participant’s vested Account Balance in existence
      at the time the amendment or modification is made, and (ii) no
      amendment or modification of this Section 10.2 or Section 11.2
      of the Plan shall be effective.

              

      

       

      
        	
                (b)  

              	
                Notwithstanding
      Section 10.2, in the event that the Company determines that any
      provision of the Plan may cause amounts deferred under the Plan to become
      immediately taxable to any Participant under Code Section 409A and
      related Treasury guidance or Regulations, the Company may (i) adopt
      such amendments to the Plan and appropriate policies and procedures,
      including amendments and policies with retroactive effect, that the
      Company determines necessary or appropriate to preserve the intended tax
      treatment of the Plan benefits provided by the Plan and/or (ii) take
      such other actions as the Company determines necessary or appropriate to
      comply with the requirements of Code Section 409A and related
      Treasury guidance or Regulations.

              

      

       

      
        	
                10.3  

              	
                Plan
      Agreement

              

      

       

      .  Despite
the provisions of Sections 10.1 and 10.2 above, if a Participant’s Plan
Agreement contains benefits or limitations that are not in this Plan document,
the Participant’s Employer shall have the sole authority to amend or terminate
such provisions, but only with the written consent of the
Participant.

       

      
        	
                10.4  

              	
                Effect of
      Payment

              

      

       

      .  The
full payment of the Participant’s vested Account Balance under Article 4,
Article 5, Article 6 or Article 7 of the Plan shall completely discharge all
obligations to a Participant and his or her designated Beneficiaries under this
Plan, and the Participant’s Plan Agreement shall terminate.

       

      ARTICLE
11

       

      Administration

       

      
        	
                11.1  

              	
                Committee
      Duties

              

      

       

      .  Except
as otherwise provided in this Article 11, this Plan shall be administered by a
Committee, which shall consist of the Board, or such committee as the Board
shall appoint.  Members of the Committee may be Participants under
this Plan.  The Committee shall have the discretion and authority to
(i) make, amend, interpret, and enforce all appropriate rules and
regulations for the administration of this Plan, and (ii) decide or resolve
any and all questions, including benefit entitlement determinations and
interpretations of this Plan, as may arise in connection with the
Plan.  Any individual serving on the Committee who is a Participant
shall not vote or act on any matter relating solely to himself or
herself.  When making a determination or calculation, the Committee
shall be entitled to rely on information furnished by a Participant, the
Company, or any Employer.

       

      
        	
                11.2  

              	
                Administration Upon
      Change In Control

              

      

       

      . Within
one hundred and twenty (120) days following a Change in Control, the individuals
who comprised the Committee immediately prior to the Change in Control (whether
or not such individuals are members of the Committee following the Change in
Control) may, by written consent of the majority of such individuals, appoint an
independent third party administrator (the “Administrator”) to perform any or
all of the Committee’s duties described in Section 11.1 above, including
without limitation, the power to determine any questions arising in connection
with the administration or interpretation of the Plan, and the power to make
benefit entitlement determinations.  Upon and after the effective date
of such appointment, (i) the Company must pay all reasonable administrative
expenses and fees of the Administrator, and (ii) the Administrator may only
be terminated with the written consent of the majority of Participants with an
Account Balance in the Plan as of the date of such proposed
termination.

       

      
        	
                11.3  

              	
                Agents

              

      

       

      .  In
the administration of this Plan, the Committee or the Administrator, as
applicable, may, from time to time, employ agents and delegate to them such
administrative duties as it sees fit (including acting through a duly appointed
representative) and may from time to time consult with counsel.

       

      
        	
                11.4  

              	
                Binding Effect of
      Decisions

              

      

       

      .  The
decisions or actions of the Committee or Administrator, as applicable, with
respect to any question arising out of or in connection with the administration,
interpretation and application of the Plan and the rules and regulations
promulgated hereunder shall be final and conclusive and binding upon all persons
having any interest in the Plan.

       

      
        	
                11.5  

              	
                Indemnity of
      Committee

              

      

       

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

       

      
        	
                11.6  

              	
                Employer
      Information

              

      

       

      .  To
enable the Committee and/or Administrator to perform its functions, the Company
and each Employer shall supply full and timely information to the Committee
and/or Administrator, as the case may be, on all matters relating to the Plan,
the Trust, the Participants and their Beneficiaries, the Account Balances of the
Participants, the compensation of its Participants, the date and
circum­stances of the Separation from Service, Disability or death of its
Participants, and such other pertinent information as the Committee or
Administrator may reasonably require.

       

      ARTICLE
12

       

      Other Benefits and
Agreements

       

      
        	
                12.1  

              	
                Coordination with
      Other Benefits

              

      

       

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

       

      ARTICLE
13

       

      Claims
Procedures

       

      
        	
                13.1  

              	
                Presentation of
      Claim

              

      

       

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

       

      
        	
                13.2  

              	
                Notification of
      Decision

              

      

       

      .  The
Committee shall consider a Claimant’s claim within a reasonable time, but no
later than ninety (90) days after receiving the claim.  If the
Committee determines that special circumstances require an extension of time for
processing the claim, written notice of the extension shall be furnished to the
Claimant prior to the termination of the initial ninety (90) day
period.  In no event shall such extension exceed a period of ninety
(90) days from the end of the initial period.  The extension notice
shall indicate the special circumstances requiring an extension of time and the
date by which the Committee expects to render the benefit
determination.  The Committee shall notify the Claimant in
writing:

       

      
        	
                (a)  

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

              

      

       

      
        	
                (b)  

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

              

      

       

      
        	
                (i)  

              	
                the
      specific reason(s) for the denial of the claim, or any part of
      it;

              

      

       

      
        	
                (ii)  

              	
                specific
      reference(s) to pertinent provisions of the Plan upon which such denial
      was based;

              

      

       

      
        	
                (iii)  

              	
                a
      description of any additional material or information necessary for the
      Claimant to perfect the claim, and an explanation of why such material or
      information is necessary;

              

      

       

      
        	
                (iv)  

              	
                an
      explanation of the claim review procedure set forth in Section 13.3
      below; and

              

      

       

      
        	
                (v)  

              	
                a
      statement of the Claimant’s right to bring a civil action under ERISA
      Section 502(a) following an adverse benefit determination on
      review.

              

      

       

      
        	
                13.3  

              	
                Review of a Denied
      Claim

              

      

       

      .  On
or before sixty (60) days after receiving a notice from the Committee that
a claim has been denied, in whole or in part, a Claimant (or the Claimant’s duly
authorized representative) may file with the Committee a written request for a
review of the denial of the claim.  The Claimant (or the Claimant’s
duly authorized representative):

       

      
        	
                (a)  

              	
                may,
      upon request and free of charge, have reasonable access to, and copies of,
      all documents, records and other information relevant (as defined in
      applicable ERISA regulations) to the claim for
  benefits;

              

      

       

      
        	
                (b)  

              	
                may
      submit written comments or other documents;
  and/or

              

      

       

      
        	
                (c)  

              	
                may
      request a hearing, which the Committee, in its sole discretion, may
      grant.

              

      

       

      
        	
                13.4  

              	
                Decision on
      Review

              

      

       

      .  The
Committee shall render its decision on review promptly, and no later than sixty
(60) days after the Committee receives the Claimant’s written request for a
review of the denial of the claim.  If the Committee determines that
special circumstances require an extension of time for processing the claim,
written notice of the extension shall be furnished to the Claimant prior to the
termination of the initial sixty (60) day period.  In no event shall
such extension exceed a period of sixty (60) days from the end of the initial
period.  The extension notice shall indicate the special circumstances
requiring an extension of time and the date by which the Committee expects to
render the benefit determination.  In rendering its decision, the
Committee shall take into account all comments, documents, records and other
information submitted by the Claimant relating to the claim, without regard to
whether such information was submitted or considered in the initial benefit
determination.  The decision must be written in a manner calculated to
be understood by the Claimant, and it must contain:

       

      
        	
                (a)  

              	
                specific
      reasons for the decision;

              

      

       

      
        	
                (b)  

              	
                specific
      reference(s) to the pertinent Plan provisions upon which the decision was
      based;

              

      

       

      
        	
                (c)  

              	
                a
      statement that the Claimant is entitled to receive, upon request and free
      of charge, reasonable access to and copies of, all documents, records and
      other information relevant (as defined in applicable ERISA regulations) to
      the Claimant’s claim for benefits;
and

              

      

       

      
        	
                (d)  

              	
                a
      statement of the Claimant’s right to bring a civil action under ERISA
      Section 502(a).

              

      

       

      
        	
                13.5  

              	
                Legal
      Action

              

      

       

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

       

      ARTICLE
14                                

       

      Trust

       

      
        	
                14.1  

              	
                Establishment of the
      Trust

              

      

       

      .  In
order to provide assets from which to fulfill its obligations to the
Participants and their Beneficiaries under the Plan, the Company may establish a
trust by a trust agreement with a third party, the trustee, to which each
Employer may, in its discretion, contribute cash or other property, including
securities issued by the Company, to provide for the benefit payments under the
Plan (the “Trust”).

       

      
        	
                14.2  

              	
                Interrelationship of
      the Plan and the Trust

              

      

       

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

       

      
        	
                14.3  

              	
                Distributions From the
      Trust

              

      

       

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

       

      ARTICLE
15

       

      Miscellaneous

       

      
        	
                15.1  

              	
                Status of
      Plan

              

      

       

      .  The
Plan is intended to be a plan that is not qualified within the meaning of Code
Section 401(a) and that “is unfunded and is maintained by an employer
primarily for the purpose of providing deferred compensation for a select group
of management or highly compensated employees” within the meaning of ERISA
Sections 201(2), 301(a)(3) and 401(a)(1).  The Plan shall be
administered and interpreted (i) to the extent possible in a manner
consistent with the intent described in the preceding sentence, and (ii) in
accordance with Code Section 409A and related Treasury guidance and
Regulations.

       

      
        	
                15.2  

              	
                Unsecured General
      Creditor

              

      

       

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

       

      
        	
                15.3  

              	
                Employer’s
      Liability

              

      

       

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

       

      
        	
                15.4  

              	
                Nonassignability

              

      

       

      .  Neither
a Participant nor any other person shall have any right to commute, sell,
assign, transfer, pledge, anticipate, mortgage or otherwise encumber, transfer,
hypothecate, alienate or convey in advance of actual receipt, the amounts, if
any, payable hereunder, or any part thereof, which are, and all rights to which
are expressly declared to be, unassignable and non-transferable.  No
part of the amounts payable shall, prior to actual payment, be subject to
seizure, attachment, garnishment or sequestration for the payment of any debts,
judgments, alimony or separate maintenance owed by a Participant or any other
person, be transferable by operation of law in the event of a Participant’s or
any other person’s bankruptcy or insolvency or be transferable to a spouse other
than pursuant to an order that would be a domestic relations order, as defined
in Code Section 414(p)(1)(B), if this Plan were a tax-qualified retirement
plan under Code Section 401(a).

       

      
        	
                15.5  

              	
                Not a Contract of
      Employment

              

      

       

      .  The
terms and conditions of this Plan shall not be deemed to constitute a contract
of employment between any Employer and the Participant.  Such
employment is hereby acknowledged to be an “at will” employment relationship
that can be terminated at any time for any reason, or no reason, with or without
cause, and with or without notice, unless expressly provided in a written
employment agreement.  Nothing in this Plan shall be deemed to give a
Participant the right to be retained in the service of any Employer, either as
an Employee or a Director, or to interfere with the right of any Employer to
discipline or discharge the Participant at any time.

       

      
        	
                15.6  

              	
                Furnishing
      Information

              

      

       

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

       

      
        	
                15.7  

              	
                Terms

              

      

       

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

       

      
        	
                15.8  

              	
                Captions

              

      

       

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

       

      
        	
                15.9  

              	
                Governing
      Law

              

      

       

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

       

      
        	
                15.10  

              	
                Notice

              

      

       

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

       

      
        	
                The
      Vail Corporation

              
	
                Attn:
      2005 Deferred Compensation Plan Committee

              
	
                390
      Interlocken Crescent, Suite 1000

              
	
                Broomfield,
      CO 80021

              

      

       

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

       

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

       

      
        	
                15.11  

              	
                Successors

              

      

       

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

       

      
        	
                15.12  

              	
                Validity

              

      

       

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

       

      
        	
                15.13  

              	
                Incompetent

              

      

       

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

       

      
        	
                15.14  

              	
                Court
      Order

              

      

       

      .  The
Committee is authorized to comply with any court order in any action in which
the Plan or the Committee has been named as a party, including any action
involving a determination of the rights or interests in a Participant’s benefits
under the Plan.  Notwithstanding the foregoing, the Committee shall
interpret this provision in a manner that is consistent with Code
Section 409A and other applicable tax law.  In addition, if
necessary to comply with an order that would be a domestic relations order, as
defined in Code Section 414(p)(1)(B), if this Plan were a tax-qualified
retirement plan under Code Section 401(a), pursuant to which a court has
determined that a spouse or former spouse of a Participant has an interest in
the Participant’s benefits under the Plan, the Committee, in its sole
discretion, shall have the right to distribute immediately the spouse’s or
former spouse’s interest in the Participant’s benefits under the Plan to such
spouse or former spouse.

       

      
        	
                15.15  

              	
                Distribution in the
      Event of Income Inclusion Under
409A

              

      

       

      .  If
any portion of a Participant’s Account Balance under this Plan is required to be
included in income by the Participant prior to receipt due to a failure of this
Plan to meet the requirement of Code Section 409A and related Treasury
guidance or Regulations, the Participant may petition the Committee or
Administrator, as applicable, for a distribution of that portion of his or her
Account Balance that is required to be included in his or her
income.  Upon the grant of such a petition, which grant shall not be
unreasonably withheld, the Participant’s Employer shall distribute to the
Participant immediately available funds in an amount equal to the portion of his
or her Account Balance required to be included in income as a result of the
failure of the Plan to meet the requirements of Code Section 409A and
related Treasury guidance or Regulations, which amount shall not exceed the
Participant’s unpaid vested Account Balance under the Plan.  If the
petition is granted, such distribution shall be made within ninety (90) days of
the date when the Participant’s petition is granted.  Such a
distribution shall affect and reduce the Participant’s benefits to be paid under
this Plan.

       

      
        	
                15.16  

              	
                Deduction Limitation
      on Benefit Payments

              

      

       

      .  If
an Employer reasonably anticipates that the Employer’s deduction with respect to
any distribution from this Plan would be limited or eliminated by application of
Code Section 162(m), then to the extent deemed necessary by the Employer to
ensure that the entire amount of any distribution from this Plan is deductible,
the Committee may delay payment of any amount that would otherwise be
distributed from this Plan.  Any amounts for which distribution is
delayed pursuant to this Section shall continue to be credited/debited with
additional amounts in accordance with Section 3.8 above.  The
delayed amounts (and any amounts credited thereon) shall be distributed to the
Participant (or his or her Beneficiary in the event of the Participant’s death)
at the earliest date the Employer reasonably anticipates that the deduction of
the payment of the amount will not be limited or eliminated by application of
Code Section 162(m).

       

      
        	
                15.17  

              	
                Insurance

              

      

       

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

       

      
        	
                15.18  

              	
                Legal Fees To Enforce
      Rights

              

      

       

      .  The
Company and each Employer is aware that upon the occurrence of a Change in
Control, the Board or the board of directors of a Participant’s Employer (which
might then be comprised of new members), the Committee, or a shareholder of the
Company, the Participant’s Employer, or any successor corporation might cause or
attempt to cause the Company, the Participant’s Employer, or such successor
corporation to refuse to comply with its obligations under the Plan and/or to
seek to deny Participants the benefits intended under the Plan.  In
these circumstances, the purpose of the Plan would be
frustrated.  Accordingly, if, following a Change in Control, a
Participant or Beneficiary institutes any litigation or other legal action which
seeks to recover benefits under the Plan or which otherwise asserts that the
Committee, the Company, the Employer or any successor entity to the Company or
the Employer has failed to comply with any of its obligations under the Plan or
any agreement thereunder with respect to such Participant or Beneficiary, or if
the Committee, the Company, the Employer or any other person takes any action to
declare the Plan void or unenforceable or institutes any litigation or other
legal action designed to deny, diminish or to recover from any Participant or
Beneficiary the benefits intended to be provided under the Plan, and the
Participant or Beneficiary retains counsel in connection with such litigation or
legal action, then (unless and until there is a final decision of a court of
competent jurisdiction or arbitrator that the Participant or Beneficiary’s
initiation or defense of such litigation or legal action was frivolous, based on
the information known to the Participant or Beneficiary at the time of the
initiation or defense) the Company and such Employer (who shall be jointly and
severally liable) or their successors shall be required to pay the reasonable
attorneys fees and expenses of the Participant or Beneficiary that are incurred
during their lifetimes in connection with the initiation or defense of such
litigation or legal action with respect to such matters, whether by or against
the Committee, the Company, the Employer or any director, officer, shareholder
or other person affiliated with the Company, the Employer or any successor
thereto in any jurisdiction.  The reasonable attorneys fees and
expenses, if any, that become due and owing to the Participant (or Beneficiary)
in accordance with this Section shall be paid no later than December 31st of
the year following the year in which the fees and expenses were incurred, or, if
sooner, on the tenth (10th)
business day following the final decision of an arbitrator or court of competent
jurisdiction with respect to such legal action (or if none, following the date
on which the matter has been finally settled, dismissed, or otherwise terminated
with prejudice).  In the event that reimbursement is made in
accordance with this paragraph and a court of competent jurisdiction or
arbitrator later determines that the Participant or Beneficiary’s initiation or
defense of such litigation or legal action was frivolous, based on the
information known to the Participant or Beneficiary at the time of the
initiation or defense, the Participant or Beneficiary shall repay such fees and
costs to the Company (or its successor, as the case may be) within 30 days of
such determination.

      
 

      IN WITNESS WHEREOF, the Company has
caused its authorized officer to execute this Plan document on this 29 day of
December, 2008.

       

      
        	
                “Company”

              
	
                The
      Vail Corporation, d/b/a Vail Associates, Inc., a

              
	
                Colorado
      corporation

              
	
                By:

              	 
      /s/ Jeffrey W. Jones
	
                Title:

              	 
      Senior Executive Vice President and
	 	 Chief
      Financial Officer 

      

      

      APPENDIX
A

       

      

       

      LIMITED TRANSITION RELIEF
MADE AVAILABLE IN ACCORDANCE WITH CODE SECTION 409A AND RELATED TREASURY
GUIDANCE AND REGULATIONS

       

      Unless
otherwise provided below, the capitalized terms below shall have the same
meaning as provided in Article 1 of the Plan.

       

      
        	
                1.  

              	
                Opportunity to Make
      New Distribution Elections

              

      

       

      .  Notwithstanding
the required deadline for the submission of an initial distribution election
described in Article 5, the Committee may, as permitted by Code
Section 409A and related Treasury guidance or Regulations, provide a
limited period in which Participants may make new distribution elections, by
submitting an Election Form on or before the deadline established by the
Committee, which in no event shall be later than December 31,
2008.  Any distribution election made in accordance with the
requirements established by the Committee, pursuant to this section, shall not
be treated as a change in the form or timing of a Participant’s benefit payment
for purposes Code Section 409A or the Plan.

       

      The
Committee shall interpret all provisions relating to an election submitted in
accordance with this section in a manner that is consistent with Code
Section 409A and related Treasury guidance or Regulations.  If
any distribution election submitted prior to December 31, 2006 in
accordance with this section either (i) relates to payments that a
Participant would otherwise receive in 2006, or (ii) would cause payments
to be made in 2006, such election shall not be effective.  If any
distribution election submitted on or after January 1, 2007 and prior to
December 31, 2007 in accordance with this section either (i) relates
to payments that a Participant would otherwise receive in 2007, or
(ii) would cause payments to be made in 2007, such election shall not be
effective.  If any distribution election submitted on or after
January 1, 2008 and prior to December 31, 2008 in accordance with this
section either (i) relates to payments that a Participant would otherwise
receive in 2008, or (ii) would cause payments to be made in 2008, such
election shall not be effective.

       

      
        	
                2.  

              	
                Termination of Plan
      Participation/Cancellation of Deferral
  Elections

              

      

       

      .  As permitted by
Q&A-20 of Notice 2005-1, the Committee provided a limited period in
which one or more Participants could elect to (i) terminate participation
in the Plan for certain amounts subject to Code Section 409A, or
(ii) cancel, in whole or in part, his or her deferral elections for certain
amounts subject to Code Section 409A, as more fully described on an
Election Form approved and accepted by the Committee prior to the deadline
established by the Committee, but in no event later than December 31,
2005.  All amounts subject to such an election shall be includible in
the applicable Participant’s income during 2005, or, if later, in the first
taxable year in which the amounts become earned and vested.exhibit10_1.htm

 

 

Exhibit 10.1

Execution Copy

 

AMENDMENT NO. 13 TO CREDIT AGREEMENT

 

This Amendment No. 13 to Credit Agreement (this “Thirteenth Amendment”) is entered into as of September 22, 2009 by and among Select Comfort Corporation (the “Company”), JPMorgan Chase
Bank, National Association, as Administrative Agent and Collateral Agent, Bank of America, N.A., as Syndication Agent, and the financial institutions signatories hereto as lenders (the “Lenders”).

 

 

RECITALS

 

A.           The undersigned are parties to that certain Credit Agreement dated as of June 9, 2006, as amended pursuant to Amendment No. 1 to Credit Agreement dated as of June 28, 2007, Amendment No. 2 to Credit Agreement dated as of February 1, 2008, Amendment No. 3 to Credit Agreement
dated as of May 30, 2008, Amendment No. 4 to Credit Agreement dated as of December 2, 2008, Amendment No. 5 to Credit Agreement dated as of January 2, 2009, Amendment No. 6 to Credit Agreement dated as of January 15, 2009 (“Amendment No. 6”), Amendment No. 7 to Credit Agreement dated as of January 31, 2009, Amendment No. 8 to Credit Agreement dated as of February 28, 2009, Amendment No. 9 to Credit Agreement dated as of April 18, 2009, Amendment No. 10 to Credit Agreement dated as of May 8, 2009,
Amendment No. 11 to Credit Agreement ("Amendment No. 11") dated as of May 22, 2009, and Amendment No. 12 to Credit Agreement dated as of September 15, 2009 (the “Credit Agreement”).  Unless otherwise specified herein, capitalized terms used in this Thirteenth Amendment shall have the meanings ascribed to them by the Credit Agreement.

 

B.           The Company has requested that the Lenders further amend the Credit Agreement to reflect certain changes thereto and to grant a waiver with respect to the Credit Agreement.

 

C.           The undersigned Lenders are willing to amend the Credit Agreement and to grant a waiver on the terms and conditions set forth below.

 

Now, therefore, in consideration of the mutual execution hereof and other good and valuable consideration, the parties hereto agree as follows:

 

1.   Amendments to Credit Agreement.  On the Effective Date (as defined below), Section 6.13 of the
Credit Agreement is hereby amended to read in full as follows:

 

SECTION 6.13  Minimum Availability.  The Company shall not permit the outstanding principal balance of the Loans plus the LC Exposure to exceed at any time the aggregate amount of the Commitments less $30,000,000.

 

2.   Limited Waiver.  On the Effective Date, the Administrative Agent and the Lenders signatory hereto hereby waive the Company’s (i) breach
of Section 5.01(a) of the Credit Agreement occasioned by its delivery of an audit for fiscal year 2008 with a “going concern” qualification, (ii) breach of Section 6.09 of the Credit Agreement for the respective fiscal period ending on or about December 31, 2008 and other applicable fiscal periods ending on or prior to a

 

 

 

 

 

 Waiver Termination Event, (iii) breach of Section 6.10 of the Credit Agreement for the respective fiscal period ending on or about March 31, 2009 and other applicable fiscal periods ending on or prior to a Waiver Termination Event, and (iv) breach of the financial covenant set forth in Section 6.12 of the Credit Agreement for the fiscal period
ending on or about December 31, 2008 and other applicable fiscal periods ending on or prior to a Waiver Termination Event, provided such waivers shall expire on the occurrence of any Waiver Termination Event, and upon such expiration the terms and provisions of Sections 5.01(a), 6.09, 6.10 and 6.12 of the Credit Agreement shall be effective with the same force and effect under the Credit Agreement as if such waivers had not been given.  As
used in this paragraph 2, “Waiver Termination Event” means the earliest to occur of (A) 5 p.m. Chicago time on September 29, 2009, and (B) if at any time Capital Expenditures for the period commencing on the first day of the fiscal month for January, 2009 through the date of determination exceeds $4,000,000 in the aggregate.

 

3.   Representations and Warranties of the Company.  The Company and each Subsidiary Guarantor represents and warrants that:

 

(a)   Its execution, delivery and performance of this Thirteenth Amendment has been duly authorized by all necessary corporate action and this Thirteenth Amendment is its legal, valid and binding obligation enforceable
against it in accordance with its terms, except as the enforcement thereof may be subject to (i) the effect of any applicable bankruptcy, insolvency, reorganization, moratorium or similar law affecting creditors’ rights generally and (ii) general principles of equity, regardless of whether considered in a proceeding in equity or at law.

 

(b)   Each of the representations and warranties contained in the Credit Agreement and the other Credit Documents is true and correct in all material respects on and as of the date hereof as if made on the date hereof
(except any such representation or warranty that expressly relates to or is made expressly as of a specific earlier date, in which case such representation or warranty shall be true and correct with respect to or as of such specific earlier date).

 

(c)   After giving effect to this Thirteenth Amendment, no Default has occurred and is continuing.

 

4.   Effective Date.  This Thirteenth Amendment shall become effective upon receipt by the Administrative Agent of (i) duly executed counterparts
of this Thirteenth Amendment from the Company, the Subsidiary Guarantors and the Required Lenders, (ii) the Reaffirmation of Guaranty in the form attached hereto as Exhibit A executed by each of the Subsidiary Guarantors, (iii) payment to the Administrative Agent, in immediately available funds for the ratable benefit of the Lenders, of an amendment and waiver fee of $25,000, which fee shall be deemed fully earned and nonrefundable on the Effective
Date, and (iv) payment of all other fees due the Administrative Agent, including, without limitation, all fees and out-of-pocket costs and expenses of counsel to the Administrative Agent and of the financial advisor retained by its counsel invoiced through the date hereof.

 

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5.   Reference to and Effect Upon the Credit Agreement.

 

(a)   Except as specifically amended above, the Credit Agreement and the other Credit Documents shall remain in full force and effect and are hereby ratified and confirmed.  Without limiting the generality of
the foregoing, the Company hereby reaffirms its obligations under paragraph 4(b) of Amendment No. 6 with respect to the deposit into a cash collateral account with the Collateral Agent of any federal or state income tax refunds received hereafter by or for the benefit of the Company or any Subsidiary Guarantor, and its obligations under Section 6.16, as amended by Amendment No. 11.

 

(b)   The execution, delivery and effectiveness of this Thirteenth Amendment shall not operate as a waiver of any right, power or remedy of the Administrative Agent or any Lender under the Credit Agreement or any Credit
Document, nor constitute a waiver of any provision of the Credit Agreement or any Credit Document, except as specifically set forth herein.  Upon the effectiveness of this Thirteenth Amendment, each reference in the Credit Agreement to “this Agreement”, “hereunder”, “hereof”, “herein” or words of similar import shall mean and be a reference to the Credit Agreement as amended hereby.

 

6.   Release of Claims and Waiver.  Each of the Company and the Subsidiary Guarantors hereby releases, remises, acquits and forever discharges
each of the Lenders and such Lender’s employees, agents, representatives, consultants, attorneys, fiduciaries, servants, officers, directors, partners, predecessors, successors and assigns, subsidiary corporations, parent corporations, and related corporate divisions (all of the foregoing hereinafter called the “Released Parties”), from any and all actions and causes of action, judgments, executions, suits, debts, claims, demands,
liabilities, obligations, damages and expenses of any and every character, known or unknown, direct and/or indirect, at law or in equity, of whatsoever kind or nature, for or because of any matter or things done, omitted or suffered to be done by any of the Released Parties prior to and including the date of execution hereof, and in any way directly or indirectly arising out of or in any way connected to this Thirteenth Amendment, the Collateral, the Loans, the Credit Agreement, or the other Credit Documents
(all of the foregoing hereinafter called the “Released Matters”).  Each of the Company and the Subsidiary Guarantors acknowledges that the agreements in this paragraph are intended to be in full satisfaction of all or any alleged injuries or damages arising in connection with the Released Matters. Each of the Company and the Subsidiary Guarantors represents and warrants to the Lenders that it has not purported to
transfer, assign or otherwise convey any right, title or interest of the Company or the Subsidiary Guarantors in any Released Matter to any other person and that the foregoing constitutes a full and complete release of all Released Matters.

 

7.   Costs and Expenses.  The Company hereby affirms its obligations under Section 9.03 of the Credit Agreement to reimburse the Administrative
Agent for all reasonable costs and out-of-pocket expenses paid or incurred by the Administrative Agent in connection with the preparation, negotiation, execution and delivery of this Thirteenth Amendment, including but not limited to the reasonable fees, charges and disbursements of attorneys for the Administrative Agent with respect thereto.

 

8.   Governing Law.  This Agreement shall be construed in accordance with

 

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 and governed by the law of the State of New York (without regard to conflict of law provisions thereof).

 

9.   Headings.  Section headings in this Thirteenth Amendment are included herein for convenience of reference only and shall not constitute a
part of this Thirteenth Amendment for any other purposes.

 

10.   Counterparts.  This Thirteenth Amendment may be executed in any number of counterparts, each of which when so executed shall be deemed an
original but all such counterparts shall constitute one and the same instrument.

 

[signature pages follow]

 

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IN WITNESS WHEREOF, the parties have executed this Thirteenth Amendment as of the date and year first above written.

 

SELECT COMFORT CORPORATION,

Borrower

 

By  /s/ James C. Raabe                                                                           

Name:  James C. Raabe

Title:    CFO

 

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JPMORGAN CHASE BANK, NATIONAL

ASSOCIATION, individually as a Lender, as

Administrative Agent and as Collateral Agent

 

By  /s/ Patricia S. Carpen                                                                           

Name:  Patricia S. Carpen

Title:    Vice President

 

BANK OF AMERICA, N.A., individually as a

Lender and as Syndication Agent

 

By                                                                           

Name:

Title:

 

CITICORP USA, INC., as a Lender

 

By  /s/ Mark R. Floyd                                                                           

Name:  Mark R. Floyd

Title:    Vice President

 

WELLS FARGO BANK, NATIONAL ASSOCIATION,

as a Lender

 

By  /s/ Troy Jefferson 

Name:  Troy Jefferson

Title:    Vice President

 

BRANCH BANKING AND TRUST CO., as a

Lender

 

By  /s/ Lee Miller  

Name:  Lee Miller

Title:    AVP

 

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EXHIBIT A

 

REAFFIRMATION OF GUARANTY

 

Each of the undersigned hereby acknowledges receipt of a copy of Amendment No. 13 to the Credit Agreement (the “Thirteenth Amendment”) dated as of September 22, 2009, and reaffirms its obligations under the Subsidiary Guaranty dated as of June 9, 2006 in
favor of JPMorgan Chase Bank, National Association, as Administrative Agent, and the Lenders (as defined in the Thirteenth Amendment).

 

Dated as of September 22, 2009

 

 

SELECT COMFORT RETAIL CORPORATION

 

By  /s/ James C. Raabe                                                                           

Name:  James C. Raabe

Title:    CFO

SELECT COMFORT CANADA HOLDING INC.

By  /s/ James C. Raabe                                                                           

Name:  James C. Raabe

Title:    CFO

SELECTCOMFORT.COM CORPORATION

By  /s/ James C. Raabe                                                                           

Name:  James C. Raabe

Title:    CFO

- 7 -

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