Document:

Exhibit 10.1

 

FIFTH AMENDMENT

TO CREDIT AND SECURITY AGREEMENT

 

THIS FIFTH AMENDMENT TO CREDIT & SECURITY
AGREEMENT, dated as of October 25, 2004 (this “Amendment”), is entered into by and
between LP RECEIVABLES CORPORATION, as borrower (the “Borrower”), LOUISIANA-PACIFIC
CORPORATION (“Louisiana Pacific”),
as master servicer (the “Master Servicer”),
BLUE RIDGE ASSET FUNDING CORPORATION, as lender (the “Lender”), the committed banks named
therein and WACHOVIA BANK, NATIONAL ASSOCIATION (successor in interest to
Wachovia Bank, N.A.), as administrative agent (the “Administrative Agent”).  Capitalized terms used and not otherwise
defined herein are used as defined in the Agreement (as defined below and
amended hereby).

 

WHEREAS, the parties
hereto have entered into that certain Credit and Security Agreement, dated as
of November 15, 2001 (as amended to the date hereof, the “Agreement”);

 

WHEREAS, the parties
hereto wish to amend the Agreement as hereinafter set forth;

 

NOW THEREFORE, in
consideration of the premises and the other mutual covenants contained herein,
the parties hereto agree as follows:

 

SECTION 1.  Amendments.
The Agreement is, as of the Effective Date defined below, hereby amended as
follows:

 

(a)           Section 4.7 of the Agreement is
hereby deleted.

 

(b)           Section 9.1(h) of the Agreement is
hereby amended by replacing subclause (i) thereof with the following:

 

(i)            the three-month rolling average
Delinquency Ratio shall exceed 1.75%,

 

(c)           Section 9.1 of the Agreement is
hereby amended by adding the following paragraph (u):

 

(u)           During any period
when the aggregate principal amount of Advances exceeds fifty percent (50%) of
the Borrowing Limit, the Master Servicer (for so long as Louisiana Pacific is
the Master Servicer) shall fail to satisfy any of the financial tests set forth
in Annex A to the Agreement that is applicable during such period.

 

(d)           Clause (iv) of the definition of “Amortization
Date” in Exhibit I to the Agreement is hereby amended and restated to read as
follows:

 

(iv)  October 25, 2007.

 

 

(e)           The definition of “Blue Ridge
Termination Date” in Exhibit I to the Agreement is hereby amended and restated
to read as follows:

 

Blue Ridge Termination Date:  October 25, 2007 or such later date as may be
agreed in writing from time to time by Borrower, Master Servicer, the Lender
and the Administrative Agent.

 

(f)            The definition of “Commitment
Termination Date” in Exhibit I to the Agreement is hereby amended and restated
to read as follows:

 

Commitment Termination Date:  With respect to each Committed Bank, October
25, 2007 or such later date as may be agreed in writing from time to time by
Borrower, Master Servicer, the Lender, the Administrative Agent and such
Committed Bank.

 

(g)           The definition of “Obligor
Concentration Limit” in Exhibit I to the Agreement is hereby amended and
restated by replacing all references to “Boise Cascade Corporation” with “Boise
Cascade Corporation or its successor, so long as its successor is Boise Cascade
LLC.”

 

(h)           The following definitions are hereby
deleted from Exhibit I to the Agreement:

 

Additional
Committed Bank

Advance Account Deposit

Advance Account Party 

Committed Bank Maturity Date

Downgraded Committed Bank

Existing Commitment Termination Date

Non-Renewing Committed Bank

Notice of Conversion

 

(i)            Exhibit XI to the Agreement is
hereby deleted.

 

(j)            Exhibit XII to the Agreement is
hereby deleted.

 

(k)           Annex A hereto is hereby added as
Annex A to the Agreement.

 

SECTION 2.  Effective Date.  This Amendment shall
become effective as of the date first above written (the “Effective Date”) on the date on which
the Administrative Agent shall have received a duly executed copy of the
Amended and Restated Fee Letter and the payment of the renewal fee referred to
therein.

 

SECTION 3.  Reference to and Effect on the Agreement
and the Related Documents.     Upon the effectiveness of this Amendment,
(i) each of the Borrower and the Master Servicer hereby reaffirms all
representations and warranties made by it in Article V of the Agreement
(as amended hereby) and agrees that all such representations and warranties
shall be deemed to have been remade as of the Effective Date of this Amendment,
(ii) each of the Borrower and the Master Servicer hereby represents and
warrants that no Amortization Event, Unmatured Amortization Event, Termination
Event or Unmatured Termination Event, shall have 

 

2

 

occurred and be continuing and
(iii) each reference in the Agreement to “this Agreement”, “hereunder”, “hereof”,
“herein” or words of like import shall mean and be, and any references to the
Agreement in any other document, instrument or agreement executed and/or
delivered in connection with the Agreement shall mean and be, a reference to
the Agreement as amended hereby.

 

SECTION 4.  Effect.  Except as otherwise amended by this Amendment,
the Agreement shall continue in full force and effect and is hereby ratified
and confirmed.

 

SECTION 5.  Governing Law.  This Amendment will be governed by and
construed in accordance with the laws of the State of New York (without regard
to principles of conflicts of law other than Section 5-1401 of the New York
General Obligations Law).

 

SECTION 6.
Severability. 
Each provision of this Amendment shall be severable from every other
provision of this Amendment for the purpose of determining the legal
enforceability of any provision hereof, and the unenforceability of one or more
provisions of this Amendment in one jurisdiction shall not have the effect of
rendering such provision or provisions unenforceable in any other jurisdiction.

 

SECTION 7.
Counterparts. 
This Amendment may be executed in one or more counterparts, each of
which shall be deemed to be an original, but all of which together shall
constitute one and the same instrument. 
Delivery of an executed counterpart of a signature page by facsimile
shall be effective as delivery of a manually executed counterpart of this
Amendment.

 

[remainder of page intentionally left blank]

 

3

 

IN WITNESS
WHEREOF, the parties have caused this Amendment to be executed by their
respective officers thereunto duly authorized, as of the date first above
written.

 

	
   

  	
  LP RECEIVABLES CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Mark G.
  Tobin

  
	
   

  	
   

  	
  Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  LOUISIANA-PACIFIC CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Curtis M.
  Stevens

  
	
   

  	
   

  	
  Executive
  Vice President, Administration,

  
	
   

  	
   

  	
  and Chief Financial Officer

  

 

[additional signatures to follow]

 

 

	
   

  	
  BLUE RIDGE
  ASSET FUNDING 

  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  by: Wachovia
  Capital Markets, LLC

  
	
   

  	
  its Attorney-in-Fact

  
	
   

  	
   

  
	
   

  	
  By: 

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  WACHOVIA
  BANK, NATIONAL 

  ASSOCIATION,

  
	
   

  	
  as
  Administrative Agent and Committed Bank

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

[end of signatures]

 

 

ANNEX A

 

FINANCIAL TESTS

 

(a)           Consolidated Net
Worth.  The following test shall be
in effect at all times:

 

The Consolidated Net Worth of Louisiana-Pacific Corporation and its
consolidated subsidiaries (“Louisiana
Pacific”) shall not at any time be less than the sum of (A)
$1,150,000,000 plus (B) on a cumulative basis as of the end of each fiscal
quarter of Louisiana Pacific, commencing with the fiscal quarter ending
December 31, 2005, an amount equal to 25% of Consolidated Net Income for the
fiscal quarter then ended, after giving effect to the payment of dividends for
such period; provided, that Consolidated Net Worth shall not at any time be
less than $1,150,000,000.

 

(b)           Additional Financial Tests.  The following tests (the “Additional Tests”) shall be effective
during any (i) No Collateral Period, (ii) upon the termination of the Bank
Credit Agreement if no Replacement Facility has been entered into by Louisiana
Pacific or any of its subsidiaries and (iii) upon the execution and delivery by
Louisiana Pacific or any of its subsidiaries of a Replacement Facility (unless
the Administrative Agent shall have notified the Borrower and Louisiana Pacific
in writing that some or all of the financial covenants, if any, contained in a
Replacement Facility shall be applicable, in which case, the Additional Tests
shall no longer apply and such financial covenants shall be incorporated herein
by reference as if set forth herein and shall be applicable hereunder for any
period of time designated by the Administrative Agent):

 

(i)            Leverage Ratio.  The Consolidated Leverage Ratio of Louisiana
Pacific, as of the last day of each fiscal quarter of Louisiana Pacific, shall
be less than or equal to 3.00 to 1.00.

 

(ii)           Interest
Coverage Ratio.  The Consolidated
Interest Coverage Ratio of Louisiana Pacific, as of the last day of each fiscal
quarter of Louisiana Pacific, shall be greater than or equal to 4.00 to 1.00.

 

As used in this Annex A, the
following terms shall have the following meanings:

 

Bank Commitment Period:  The period from and including September 1,
2004 to but not including the Maturity Date.

 

Bank Credit Agreement:  That certain Credit Agreement, dated as of
September 1, 2004 by and among Louisiana-Pacific Corporation, as borrower,
those Domestic Subsidiaries (as defined therein) of Louisiana-Pacific
Corporation identified as a Guarantor (as defined therein) on the signature
pages thereto and such other Domestic Subsidiaries of Louisiana-Pacific
Corporation as may from time to time become a party thereto, the several banks
and other 

 

 

financial institutions as may
from time to time become parties to such Credit Agreement, Bank of America,
N.A., as syndication agent and as collateral agent for the Lenders, Royal Bank
of Canada and the Bank of Nova Scotia, as documentation agents, and Wachovia
Bank, National Association, as administrative agent.

 

Capital Lease: 
Any lease of property, real or personal, the obligations with respect to
which are required to be capitalized on a balance sheet of the lessee in
accordance with GAAP.

 

Capital Stock: 
(a) In the case of a corporation, capital stock, (b) in the
case of an association or business entity, any and all shares, interests,
participations, rights or other equivalents (however designated) of capital
stock, (c) in the case of a partnership, partnership interests (whether
general or limited), (d) in the case of a limited liability company,
membership interests and (e) any other interest or participation that
confers on a Person the right to receive a share of the profits and losses of,
or distributions of assets of, the issuing Person.

 

Cash Collateral Notice:  Has the
meaning given to such term in the Bank Credit Agreement.

 

Cash Collateral Period:  The period beginning on the date that
Louisiana Pacific shall deliver to the Administrative Agent under the Bank
Credit Agreement a Cash Collateral Notice and ending on the Collateral Release
Date

 

Collateral Release Date:  Has the
meaning given to such term in the Bank Credit Agreement.

 

Consolidated EBITDA:  For any
period, determined for Louisiana Pacific on a consolidated basis, the
sum of (a) Consolidated Net Income, plus (b) an amount which, in the
determination of Consolidated Net Income, has been deducted for (i)
Consolidated Interest Expense, (ii)
total federal, state, local and foreign income and similar taxes, (iii)
depreciation and amortization expense, and (iv) other non-cash items (excluding
any such non-cash item to the extent that it represents an accrual or
reserve for potential cash items in any future period or amortization of a
prepaid cash item that was paid in a prior period), minus (c) non-cash
items increasing Consolidated Net Income for such period (excluding any such
non-cash item to the extent it represents the reversal of an accrual or
reserve for potential cash item in any prior period or will result in the
receipt of cash payments in a future period), all as determined in accordance
with GAAP.  Unless expressly indicated
otherwise, the applicable period shall be for the four consecutive quarters
ending on the date of computation.

 

Consolidated Interest Coverage Ratio:  As of the
end of any fiscal quarter of Louisiana Pacific for the four fiscal quarter
period ending on such date with respect to Louisiana Pacific on a consolidated basis, the ratio of (a)
Consolidated EBITDA for such period to (b) the difference (to the extent the
difference between the following is negative, for purposes of calculating the
Consolidated Interest Coverage Ratio, this clause (b) shall be set at $1.00) of
(i) Consolidated Interest Expense for such period minus (ii)
Consolidated Interest Income for such period.

 

Consolidated Interest Expense:  For any period, all interest expense
(including, without limitation, the interest component under Capital Leases) of
Louisiana Pacific on a consolidated 

 

A-2

 

basis,
including all commissions, discounts and other fees and charges owed with
respect to letters of credit and net costs under Hedging Agreements, as
determined in accordance with GAAP. 
Unless expressly indicated otherwise, the applicable period shall be for
the four consecutive quarters ending on the date of computation.

 

Consolidated Interest Income:  For any period, all interest income of Louisiana Pacific on a consolidated basis,
as determined in accordance with GAAP. 
Unless expressly indicated otherwise, the applicable period shall be for
the four consecutive quarters ending on the date of computation.

 

Consolidated Leverage Ratio:  As of the
end of any fiscal quarter of Louisiana Pacific for the four fiscal quarter
period ending on such date with respect to Louisiana Pacific on a consolidated basis, the ratio of (a) Funded
Debt of Louisiana Pacific on a consolidated basis on the last day of such
period to (b) Consolidated EBITDA for such period.

 

Consolidated Net Income:  For any period, net income of Louisiana
Pacific on a consolidated basis, as determined in accordance with GAAP.  Unless expressly indicated otherwise, the
applicable period shall be for the four consecutive quarters ending on the date
of computation.

 

Consolidated Net Worth:  As of any
date of computation, (a) Consolidated Total Assets minus (b) the total
liabilities of Louisiana Pacific on a consolidated basis, as determined in
accordance with GAAP.

 

Consolidated Total Assets:  On the date of computation, the amount of
total assets of Louisiana Pacific on a consolidated basis, as determined in
accordance with GAAP.

 

Funded Debt: 
With respect to any Person, without
duplication, (a) all obligations of such Person for borrowed money, (b) all
obligations of such Person evidenced by bonds, debentures, notes or similar
instruments, or upon which interest payments are customarily made, (c) all
obligations of such Person under conditional sale or other title retention
agreements relating to property purchased by such Person (other than customary
reservations or retentions of title under agreements with suppliers entered
into in the ordinary course of business), (d) all obligations (including,
without limitation, earnout obligations) of such Person incurred, issued or
assumed as the deferred purchase price of property or services purchased by
such Person (other than trade debt incurred in the ordinary course of business
and due within nine months of the incurrence thereof) that would appear as
liabilities on a balance sheet of such Person, (e) the principal portion of all
obligations of such Person under Capital Leases, (f) all obligations of such
Person under Hedging Agreements, excluding any portion thereof that would be
accounted for as interest expense under GAAP, (g) the maximum amount of all
letters of credit issued or bankers’ acceptances facilities created for the
account of such Person and, without duplication, all drafts drawn and
unreimbursed thereunder, (h) all preferred Capital Stock or other equity
interests issued by such Person and which by the terms thereof could be (at the
request of the holders thereof or otherwise) subject to mandatory sinking fund
payments, redemption or other acceleration on or prior to the Maturity Date,
(i) the principal balance outstanding under any synthetic lease, tax
retention operating lease, off-balance sheet loan or similar off-balance sheet
financing product, (j) all
Indebtedness of 

 

A-3

 

others of
the type described in clauses (a) through (i) hereof secured by (or for which
the holder of such Indebtedness has an existing right, contingent or otherwise,
to be secured by) any Lien on, or payable out of the proceeds of production
from, property owned or acquired by such Person, whether or not the obligations
secured thereby have been assumed, (k) all Guaranty Obligations of such Person
with respect to Indebtedness of another Person of the type described in clauses
(a) through (i) hereof, and (l) all Indebtedness of the type described in
clauses (a) through (i) hereof of any partnership or unincorporated joint
venture in which such Person is a general partner or a joint venturer; provided,
that Funded Debt shall not include any Indebtedness of Louisiana Pacific (or
its consolidated subsidiaries) that is non-recourse to Louisiana Pacific (or
the applicable consolidated subsidiaries) or their respective assets.

 

GAAP: 
Generally accepted accounting principles in effect in the United States
of America applied on a consistent basis.

 

Guaranty Obligations:  With respect
to any Person, without duplication, any obligations of such Person (other than
endorsements in the ordinary course of business of negotiable instruments for
deposit or collection) guaranteeing or intended to guarantee any Indebtedness
of any other Person in any manner, whether direct or indirect, and including
without limitation any obligation, whether or not contingent, (a) to
purchase any such Indebtedness or any property constituting security therefor,
(b) to advance or provide funds or other support for the payment or
purchase of any such Indebtedness or to maintain working capital, solvency or
other balance sheet condition of such other Person (including without
limitation keep well agreements, maintenance agreements, comfort letters or
similar agreements or arrangements) for the benefit of any holder of
Indebtedness of such other Person, (c) to lease or purchase property,
securities or services primarily for the purpose of assuring the holder of such
Indebtedness, or (d) to otherwise assure or hold harmless the holder of
such Indebtedness against loss in respect thereof.  The amount of any Guaranty Obligation
hereunder shall (subject to any limitations set forth therein) be deemed to be
an amount equal to the outstanding principal amount (or maximum principal
amount, if larger) of the Indebtedness in respect of which such Guaranty
Obligation is made.

 

Hedging Agreements:  With respect to any Person, any agreement
entered into to protect such Person against fluctuations in interest rates, or
currency or raw materials values, including, without limitation, any interest
rate swap, cap or collar agreement or similar arrangement between such Person
and one or more counterparties, any foreign currency exchange agreement,
currency protection agreements, commodity purchase or option agreements or
other interest or exchange rate or commodity price hedging agreements.

 

Indebtedness: 
With respect to any Person, without
duplication, (a) all obligations of such Person for borrowed money, (b) all
obligations of such Person evidenced by bonds, debentures, notes or similar
instruments, or upon which interest payments are customarily made, (c) all
obligations of such Person under conditional sale or other title retention
agreements relating to property purchased by such Person (other than customary
reservations or retentions of title under agreements with suppliers entered
into in the ordinary course of business), (d) all obligations (including,
without limitation, earnout obligations) of such Person incurred, issued or
assumed as the deferred purchase price of property or services purchased by
such Person (other than trade debt incurred in the ordinary course of business
and due within nine months of the incurrence thereof) 

 

A-4

 

that would appear as liabilities on a balance
sheet of such Person, (e) the principal portion of all obligations of such
Person under Capital Leases, (f) all obligations of such Person under Hedging
Agreements, excluding any portion thereof that would be accounted for as
interest expense under GAAP, (g) the maximum amount of all letters of credit
issued or bankers’ acceptances facilities created for the account of such
Person and, without duplication, all drafts drawn and unreimbursed thereunder
(excluding performance based letters of credit issued to Louisiana Pacific’s
customers in connection with certain long-term contracts), (h) all preferred
Capital Stock or other equity interests issued by such Person and which by the
terms thereof could be (at the request of the holders thereof or otherwise)
subject to mandatory sinking fund payments, redemption or other acceleration,
(i) the principal balance outstanding under any synthetic lease,
tax retention operating lease, off-balance sheet loan or similar off-balance
sheet financing product, (j) all
obligations of such Person under take-or-pay or similar
arrangements or under commodities agreements, (k) all Indebtedness of others of
the type described in clauses (a) through (j) hereof secured by (or for which
the holder of such Indebtedness has an existing right, contingent or otherwise,
to be secured by) any Lien on, or payable out of the proceeds of production
from, property owned or acquired by such Person, whether or not the obligations
secured thereby have been assumed, (l) all Guaranty Obligations of such Person
with respect to Indebtedness of another Person of the type described in clauses
(a) through (j) hereof, and (m) all Indebtedness of the type described in
clauses (a) through (j) hereof of any partnership or unincorporated joint
venture in which such Person is a general partner or a joint venturer in
proportion to such Person’s ownership percentage in such partnership or joint
venture.

 

Lien: 
Any mortgage, pledge, hypothecation, assignment, deposit arrangement,
encumbrance, lien (statutory or other), charge or other security interest or
any preference, priority or other security agreement or preferential
arrangement of any kind or nature whatsoever (including, without limitation,
any conditional sale or other title retention agreement and any Capital Lease
having substantially the same economic effect as any of the foregoing).

 

Maturity Date: 
September 1, 2009.

 

No Collateral Period:  Any period during the Bank Commitment Period
that is not the Cash Collateral Period.

 

Replacement Facility:  Any financing for Louisiana Pacific and/or
its subsidiaries that the Administrative Agent shall reasonably determine to
have replaced, amended and restated or modified the facility evidenced by the
Bank Credit Agreement.

 

A-5Exhibit
10.46

 

 

TRIQUINT SEMICONDUCTOR,
INC.

 

NONQUALIFIED DEFERRED
COMPENSATION PLAN

 

 

PREAMBLE

 

This TriQuint
Semiconductor, Inc. Deferred Compensation Plan is adopted by TriQuint
Semiconductor, Inc. for the benefit of certain of its Employees and members of
its Board of Directors, effective as of October 31, 2004 ( “Effective Date”).  The
purpose of the Plan is to provide supplemental retirement income and to permit
eligible Participants the option to defer receipt of Compensation, pursuant to
the terms of the Plan.  The Plan is
intended to be an unfunded deferred compensation plan maintained for the
benefit of a select group of management or highly compensated employees under
sections 201(2), 301(a)(3) and 401(a)(1) of ERISA.  Participants shall have the status of
unsecured creditors of the TriQuint Semiconductor, Inc. with respect to the
payment of Plan benefits.

 

 

TABLE OF CONTENTS

 

	
  ARTICLE I

  	
  Definitions

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  1.1

  	
  Definitions

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE II

  	
  Participation

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  2.1

  	
  Date of Participation

  	
   

  
	
   

  	
  2.2

  	
  Resumption
  of Participation Following Return to Service

  	
   

  
	
   

  	
  2.3

  	
  Change in Employment Status

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE III

  	
  Contributions

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  3.1

  	
  Deferral Contributions

  	
   

  
	
   

  	
  3.2

  	
  Accounts

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV

  	
  Participants’
  Accounts

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  4.1

  	
  Individual Accounts

  	
   

  
	
   

  	
  4.2

  	
  Accounting for
  Distributions

  	
   

  
	
   

  	
  4.3

  	
  Separate Accounts

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE V

  	
  Investment of
  Contributions

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  5.1

  	
  Manner of Investment

  	
   

  
	
   

  	
  5.2

  	
  Investment Decisions

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI

  	
  Distributions

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  6.1

  	
  Distributions
  to Participants and Beneficiaries

  	
   

  
	
   

  	
  6.2

  	
  Distribution
  Following a Change of Control

  	
   

  
	
   

  	
  6.3

  	
  Distributions
  Due to an Unforeseeable Emergency

  	
   

  
	
   

  	
  6.4

  	
  Scheduled In-Service
  Distribution

  	
   

  
	
   

  	
  6.5

  	
  Death

  	
   

  
	
   

  	
  6.6

  	
  Disability

  	
   

  
	
   

  	
  6.7

  	
  Notice to Trustee

  	
   

  
	
   

  	
  6.8

  	
  Time of Distribution

  	
   

  
	
   

  	
  6.9

  	
  Limitation
  on Distributions to Covered Employees Prior to a Change of Control

  	
   

  
	
   

  	
  6.10

  	
  Tax Withholding

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  VII

  	
  Special
  Change of Control Provisions

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  7.1

  	
  No New
  Participants Following Change of Control

  	
   

  
	
   

  	
  7.2

  	
  No Deferrals
  Following a Change of Control

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII

  	
  Amendment and
  Termination

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  8.1

  	
  Amendment
  by Employer Prior to and on and After a Change of Control

  	
   

  
	
   

  	
  8.2

  	
  Retroactive Amendments

  	
   

  
	
   

  	
  8.3

  	
  Plan Termination

  	
   

  

 

i

 

	
   

  	
  8.4

  	
  Distribution
  upon Termination of the Plan

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE IX

  	
  The Trust

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  9.1

  	
  Establishment of Trust

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE X

  	
  Miscellaneous

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  10.1

  	
  Communication to
  Participants

  	
   

  
	
   

  	
  10.2

  	
  Limitation of Rights

  	
   

  
	
   

  	
  10.3

  	
  Spendthrift Provision

  	
   

  
	
   

  	
  10.4

  	
  Facility of Payment

  	
   

  
	
   

  	
  10.5

  	
  Information
  between Employer and Trustee

  	
   

  
	
   

  	
  10.6

  	
  Notices

  	
   

  
	
   

  	
  10.7

  	
  Governing Law

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE XI

  	
  Plan Administration

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  11.1

  	
  Powers and
  responsibilities of the Committee

  	
   

  
	
   

  	
  11.2

  	
  Nondiscriminatory
  Exercise of Authority

  	
   

  
	
   

  	
  11.3

  	
  Claims and Review
  Procedures

  	
   

  
	
   

  	
  11.4

  	
  Plan’s Administrative Costs

  	
   

  

 

ii

 

ARTICLE I

Definitions

 

1.1           Definitions.  Wherever used herein, the
following terms have the meanings set forth below, unless a different meaning
is clearly required by the context:

 

(a)           “Account”
means an account established on the books of the Employer for the purpose of
recording amounts credited on behalf of a Participant and any expenses, gains
or losses included thereon.

 

(b)           “Administrator”
means the Employer adopting this Plan, or the Committee, if one has been
designated by such Employer.

 

(c)           “Beneficiary”
means the person or persons entitled under Section 6.5 to receive benefits
under the Plan upon the death of a Participant.

 

(d)           “Change
of Control” means a change in ownership or effective control of the Company
or in the ownership of a substantial portion of the Company’s assets, as
defined in the most recent version of proposed or final Treasury regulations
promulgated under Code Section 409A.

 

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

 

(f)            “Committee”
means the Deferred Compensation Committee composed of three or more individuals
appointed by the Board, or following a Change of Control, appointed by the
Committee, to function as the Administrator. 
Once appointed, the Deferred Compensation Committee shall interpret and
administer this Plan and take such other actions as may be specified herein.

 

(g)           “Company”
means the Employer and any of its Subsidiaries.

 

(h)           “Compensation”
means (i) with respect to Eligible Employees, wages as defined in
Section 3401(a) of the Code and all other payments of compensation paid to
an Employee by the Employer (in the course of the Employer’s trade or
business), including profit-sharing, focal review lump-sum increases, paid time
off cashouts, key employee incentive payments and commissions and excluding
reimbursements or other expense allowances, fringe benefits (cash and
non-cash), moving expenses, deferred compensation and welfare benefits, income
recognized pursuant to equity compensation, sign on bonuses, spot bonuses,
employee referral payments and imputed income, but including amounts that are
otherwise excludable from the gross income of the Participant under a salary
reduction agreement by reason of the application of Sections 125 or 402(a)(8)
of the Code, and (ii) with respect to Outside Directors, all cash
retainers and meeting fees, excluding expense reimbursements, welfare benefits,
imputed income and income recognized pursuant to equity compensation.  Any salary deferral elections made under
Employer’s 401(k) Plan 

 

1

 

shall be determined based on
the Participant’s compensation after reduction for the Deferral Contributions
to this Plan.

 

(i)            “Deferral
Contributions” means, for each Participant, the amount deferred pursuant to
Section 3.1 hereof.

 

(j)            “Disability”
means the Participant (i) is 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 twelve (12) months, or (ii) is, by reason of any
medically determinable physical or mental impairment which can be expected to
last for a continuous period of not less than twelve (12) months, receiving
income replacement benefits for a period of not less than three (3) months
under an accident and health plan covering Company employees.

 

(k)           “Eligible
Participant” means (i) any U.S. payroll-based Employee who is Grade 26
or above, (ii) any U.S. payroll-based Employee who is Grade 24 or above and has
a base salary of at least $100,000, or (iii) any Outside Director.

 

(l)            “Employee”
means any employee of the Employer.

 

(m)          “Employer”
means TriQuint Semiconductor, Inc. and any successors and assigns unless
otherwise provided herein.

 

(n)           “Entry
Date” means, for the initial Plan Year, October 31, 2004 and for subsequent
Plan Years January 1 or, for new hires (including re-hires) who are
Eligible Participants or for employees who are promoted or given a base salary
increase so as to become an Eligible Participant for the first time, the first
day of the next payroll period commencing after the next paydate following
receipt of their deferral election by the Company (which deferral election must
be submitted no later than 30 days following the date of Participant’s becoming
newly eligible for the first time).

 

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

 

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

 

(q)           “Participant”
means any Employee or Outside Director who participates in the Plan in
accordance with Article 2 hereof.

 

(r)            “Plan”
means this TriQuint Semiconductor, Inc. Non-Qualified Deferred Compensation
Plan.

 

(s)           “Plan
Year” means the 12-consecutive month period beginning January 1 and
ending December 31; provided, however, that the first Plan Year shall be a
short Plan Year commencing October 31, 2004 and ending December 31, 2004.

 

2

 

(t)            “Separation
From Service” means a separation from service as defined in the most recent
version of proposed or final Treasury regulations promulgated under Code
Section 409A.

 

(u)           “Specified
Employee” means a “key employee” as such term is defined in Code Section 416(i)
without regard to paragraph five (5) thereof. 
As of the Plan effective date, this generally includes (i) the top fifty
(50) Company officers making more than $130,000 per year, (ii) a 5% owner of
the Company, or (iii) a 1% owner of the Company making more than $150,000 per
year.

 

(v)           “Subsidiary”
means a subsidiary of the Employer, as such term is defined in Code Section
424(f).

 

(w)          “Trading
Day” means a day upon which the major U.S. national stock exchanges are
open for trading.

 

(x)            “Trust”
means the trust fund established pursuant to the terms of the Plan.

 

(y)           “Trustee”
means the corporation or individuals named in the agreement establishing the
Trust and such successor and/or additional trustees as may be named in
accordance with the Trust Agreement.

 

(z)            “Unforeseeable
Emergency” means a severe financial hardship to Participant resulting from
an illness or accident of Participant, the Participant’s spouse or a dependent
of Participant (as defined in Section 152(a) of the Code), loss of
Participant’s property due to casualty, or other similar extraordinary and
unforeseeable circumstances arising as a result of events beyond the control of
Participant.

 

(aa)         “Year
of Service” means a period of 12 consecutive months during which the
Participant is employed by the Employer or serves as a Board member.  Service commences on the date the Participant
first commences service for the Employer and ends on the date that the
Participant quits, retires, is discharged, is determined to be Totally Disabled
or dies.

 

(bb)         “Valuation
Date” means for distributions hereunder and for allocations of deferrals
and re-allocations of amounts previously deferred, that the Participant’s
Account shall be valued as of the day of the transaction so long as that day is
a Trading Day.  In the event that the day
of the transaction is not a Trading Day, the Participant’s Account shall be
valued as of the most recently concluded Trading Day.

 

ARTICLE II

Participation

 

2.1           Date of Participation.  Each Eligible
Participant shall be become a Participant as of the Entry Date next following
their filing of an election to defer Compensation in accordance with
Section 3.1.

 

3

 

2.2           Resumption of Participation
Following Return to Service.  If a Participant ceases to be an
Employee or Outside Director and thereafter returns to the service of the
Employer he or she will again become a Participant as of the Entry Date
following the date on which he or she re-commences service with the Employer, provided
he or she is an Eligible Participant and has filed an election to defer
Compensation pursuant to Section 3.1.

 

2.3           Change in Employment Status.  If
any Employee Participant continues in the employ of the Employer or Related
Employer but ceases to be an Eligible Participant, the individual shall
continue to be a Participant until the entire amount of his benefit is
distributed; provided, however, the individual shall not be entitled to make
Deferral Contributions during the period that he is not an Eligible
Participant.  In the event that the
individual subsequently again becomes an Eligible Participant, the individual
shall resume full participation in accordance with Section 3.1.

 

ARTICLE III

Contributions

 

3.1           Deferral Contributions

 

(a)           Annual
Open Enrollment.  Prior to the
beginning of each Plan Year, each Eligible Participant may elect to execute a
compensation reduction agreement with the Employer to reduce his Compensation
by a specified percentage not exceeding, (i) for Eligible Employees, 50%
of their base salary and 100% of their other Compensation, and (ii) for
Outside Directors, 100% of their Compensation, equal in either case to whole
number multiples of one (1) percent. 
Such agreement shall become effective, with respect to Eligible Employees,
with the first full payroll period commencing in the following Plan Year and
with respect to Outside Directors, with the first day of service in the
following Plan Year.  The election shall
not be effective with respect to Compensation relating to services already
performed.  An election once made will
remain in effect for the duration of the Plan Year.  A new election will apply only to
Compensation payable with respect to full payroll periods commencing after the
election date.  Amounts credited to a
Participant’s Account prior to the effective date of any new election will not
be affected and will be paid in accordance with that prior election.

 

(b)           Newly
Eligible Participants.  The same
rules as in Section 3.1(a) above shall also apply to individuals who become
Eligible Participants for the first time, except (i) such new Eligible
Participants shall have no more than thirty (30) days following their becoming
eligible in which to elect to have their Compensation reduced, and (ii) the
agreement shall become effective, with respect to Eligible Employees, with the
first full payroll period commencing following the receipt of their election by
the Company and with respect to Outside Directors, with the first day of
service following the receipt of their election by the Company.

 

3.2           Accounts.  The
Employer shall credit an amount to the Account maintained on behalf of the
Participant corresponding to the amount of said reduction.  Under no circumstances may an election to
defer Compensation be adopted retroactively. 
A Participant may not revoke an election to defer Compensation for a
Plan Year during that year.

 

4

 

ARTICLE IV

Participants’ Accounts

 

4.1           Individual Accounts.  The Administrator
will establish and maintain an Account for each Participant which will reflect
Deferral Contributions credited to the Account on behalf of the Participant
with earnings, expenses, gains and losses credited thereto, attributable to the
investments made with the amounts in the Participant’s Account.  Participants will be furnished statements of
their Account values at least once each Plan Year.

 

4.2           Accounting for Distributions. 
As of any date of a distribution to a Participant or a Beneficiary hereunder,
the distribution to the Participant or to the Participant’s Beneficiary(ies)
shall be charged to the Participant’s Account.

 

4.3           Separate Accounts.  A separate account
under the Plan shall established and maintained to reflect the Account for each
Participant with subaccounts to show separately the earnings, expenses, gains
and losses credited or debited to that Account.

 

ARTICLE V

Investment of Contributions

 

5.1           Manner of Investment.  All amounts
credited to the Accounts of Participants shall be treated as though invested
and reinvested only in eligible investments selected by the Employer.

 

5.2           Investment Decisions.  Investments in
which the Accounts of Participants shall be treated as invested and reinvested
shall be directed by the Participant.

 

(a)           All
dividends, interest, gains and distributions of any nature earned in respect of
an investment alternative in which the Account is treated as investing shall be
credited to the Account in an amount equal to the net increase or decrease in
the net asset value of each investment option since the preceding Valuation
Date in accordance with the ratio that the portion of the Account of each
Participant that is invested in the designated investment option bears to the
aggregate of all amounts invested in the same investment option.

 

(b)           Expenses
that would have been attributable to the acquisition of actual investments
shall be charged to the Account of the Participant for which a corresponding
phantom investment is made.

 

5

 

ARTICLE VI

Distributions

 

6.1           Distributions to Participants and
Beneficiaries

 

(a)           Earliest
Distributions

 

(i)    Regular Participants.  In no event may a Participant’s account be
distributed earlier than (i) the Participant’s Separation From Service, (ii)
the Participant’s Disability, (iii) the Participant’s death, (iv) a specified
time under Section 6.4 hereunder, (v) a Change in Control, or (vi) the
occurrence of an Unforeseeable Emergency.

 

(ii)   Specified Employee Participants.  In no event may a Specified Employee’s
account be distributed earlier than (i) six (6) months following the Specified
Employee’s Separation From Service (or if earlier, the Specified Employee’s
death), (ii) the Specified Employee’s Disability, (iii) the Specified
Employee’s death after a Separation From Service, (iv) a specified time under
Section 6.4 hereunder, (v) a Change in Control, or (vi) the occurrence of an
Unforeseeable Emergency.

 

(b)           Lump-Sum or Installment Payment
Initial Elections.  At the same time
their initial elections for any Plan Year are made, Participants shall elect to
have their Compensation deferrals for that Plan Year paid out, either following
their Separation From Service, their death or Disability, a Change of Control
or pursuant to a specified time under Section 6.4 hereunder, in one of the
following forms of payment:

 

(i)    Lump sum
cash payment;

 

(ii)   20
quarterly installments;

 

(iii)  40
quarterly installments; or

 

(iv)  60
quarterly installments.

 

(c)           Subsequent Election to Delay or
Change Form of Payment.  A Participant’s
initial election to receive a distribution may be delayed or the form of
payment changed by filing an election, in the form required by the Committee,
at least one year in advance of the date upon which any distribution would
otherwise have been made pursuant to the prior election.  Such election shall not be effective for a
period of one (1) year, and must delay the payment by a period of at least five
(5), but no more than then ten (10) years. 
In the absence of such timely filed election, the value of such
Participant’s Account shall be distributed in accordance with their previously
timely filed Account election.  No
subsequent election may accelerate the method of distribution.  For example, a subsequent election may change
a lump-sum distribution to a 20, 40 or 60 quarterly installment election.  Also, a subsequent election may change a 20
or a 40 quarterly installment election to a 60 quarterly installment
election.  Conversely, a subsequent
election may not change a 60 quarterly 

 

6

 

installment election to a 40 or
20 installment election, nor may a subsequent election change an installment
election to a lump-sum election.

 

(d)           Lump-Sum Distribution Timing.  For Participants who elect to receive a
lump-sum distribution following their triggering distribution event, the value
of their Account (or portion thereof specified in the Participant’s election)
shall be paid in a lump-sum cash payment as soon as is practicable following
the triggering distribution event, or, for Specified Employees who have elected
a Separation From Service or death triggering event, as soon as is practicable
six months after the date upon which they incur a Separation From Service or
die.

 

(e)           Lump-Sum Distributions for Certain
Accounts.  Notwithstanding the
Participant’s election under Section 6.1(b) or (c) hereof, if the value of a
Participant’s Account is less than $25,000 on the date of his or her triggering
distribution event, then the Participant’s Account shall be paid in a lump sum
cash payment as soon as is practicable following the triggering distribution
event, or, for Specified Employees who have elected a Separation From Service
or death triggering event, as soon as is practicable six months after the date
upon which they incur a Separation From Service or die.

 

(f)            Installment Amounts.  For purposes of this Section 6.1,
installment payments shall be substantially equal payments.  The amount of each payment shall be
determined by dividing the value of the Participant’s Account at the time of
such installment by the number of payments remaining.  Installment payments shall commence as soon
as is practicable following the triggering distribution event, or, for
Specified Employees, as soon as is practicable six months after the date upon
which they incur a Separation From Service or die.

 

6.2           Distribution Following a Change of
Control.  In the event of a
Change of Control, Participant’s Accounts shall be treated as specified in
their applicable election forms.

 

6.3           Distributions Due to an
Unforeseeable Emergency.  With the consent of the Committee, a
Participant may withdraw up to one hundred percent (100%) of his or her Account
as may be required to meet a sudden Unforeseeable Emergency of the
Participant.  Such hardship distribution
shall be subject to applicable proposed or final Treasury Regulations
promulgated under Code Section 409A as well as the following provisions:

 

The amounts
distributed with respect to an Unforeseeable Emergency may not exceed the
amounts necessary to satisfy such emergency plus amounts necessary to pay taxes
reasonably anticipated as a result of the distribution, after taking into
account the extent to which such hardship is or may be relieved through
reimbursement or compensation by insurance or otherwise or by liquidation of
the Participant’s assets (to the extent the liquidation of such assets would
not itself cause severe financial hardship).

 

6.4           Scheduled In-Service Distribution. 
A Participant may elect, as provided in his or her Participant deferral
election, to receive one or more scheduled in-service (i.e., commencing while
employed by the Company, or, for outside director Participants, while serving
as a Board member) distributions from their Account balance.  Each scheduled in-service distribution may
only be changed or postponed in accordance with Section 6.1(c) hereof.  In the event a Participant incurs a 

 

7

 

Separation From Service prior
to a scheduled in-service distribution, the in-service distribution election
shall be without further force and effect and the applicable Separation From
Service distribution provisions of the Plan and the Participant’s deferral
election shall control.

 

6.5           Death.  If a Participant dies before the
distribution of his or her Account has commenced, or before such distribution
has been completed, his or her designated Beneficiary or Beneficiaries will be
entitled to receive the balance or remaining balance of his or her Account
based on the schedule elected in the Participant’s deferral election.  Distribution to the Beneficiary or
Beneficiaries will be made in accordance with the Participant’s elections and
the rules of Section 6.1 hereof; subject to any six (6) month delayed
distribution requirements for Beneficiaries of Specified Employees imposed by
Code Section 409A and the applicable proposed or final Treasury regulations
promulgated thereunder.

 

A Participant
may designate a Beneficiary or Beneficiaries, or change any prior designation
of Beneficiary or Beneficiaries by giving notice to the Administrator on a form
designated by the Administrator.  If more
than one person is designated as the Beneficiary, their respective interests
shall be as indicated on the designation form.

 

A copy of the
death notice or other sufficient documentation must be filed with and approved
by the Administrator.  If upon the death
of the Participant there is, in the opinion of the Administrator, no designated
Beneficiary for part or all of the Participant’s Account, such amount will be
paid to his surviving spouse or, if none, to his estate (such spouse or estate
shall be deemed to be the Beneficiary for purposes of the Plan) as soon as is
practicable, subject to the six (6) month delay requirement for Beneficiaries of
Specified Employees.  If a Beneficiary
dies after benefits to such Beneficiary have commenced, but before they have
been completed, and, in the opinion of the Administrator, no person has been
designated to receive such remaining benefits, then such benefits shall be paid
to the deceased Beneficiary’s estate as soon as is practicable.

 

6.6           Disability.  If a Participant is subject to a
Disability before the distribution of his or her Account has commenced, or
before such distribution has been completed, he or his personal representative
will be entitled to receive the balance or remaining balance of his or her
Account based on the schedule elected in the Participant’s deferral election,
plus any amounts thereafter credited to his or her Account.  Distribution to the Beneficiary or
Beneficiaries will be made in accordance with the Participant’s elections and
the rules of Section 6.1 hereof, subject to any six (6) month delayed
distribution requirements for Specified Employees imposed by Code Section 409A
and the applicable proposed or final Treasury regulations promulgated
thereunder.

 

6.7           Notice to Trustee.  The Administrator will
notify the Trustee in writing whenever any Participant or Beneficiary is
entitled to receive benefits under the Plan. 
The Administrator’s notice shall indicate the form, amount and frequency
of benefits that such Participant or Beneficiary shall receive.

 

6.8           Time of Distribution.  In no event will
distribution to a Participant be made later than the date specified by the
Participant in his or her election to defer Compensation; provided, however,
that if a Participant becomes a Specified Employee, his or her election shall
be subject to the six (6) month distribution delay requirements of the Plan and
Code Section 409A.

 

8

 

6.9           Limitation on Distributions to
Covered Employees Prior to a Change of Control.  Notwithstanding
any other provision of this Article VI, in the event that, prior to a Change of
Control, the Participant is a “covered employee” as that term is defined in
Section 162(m)(3) of the Code, or would be a covered employee if his or
her Account were distributed in accordance with his or her election or early
withdrawal request, the maximum amount which may be distributed from the
Participant’s Account in any Plan Year shall not exceed one million dollars
($1,000,000) less the amount of compensation paid to the Participant in such
Plan Year which is not “performance-based” (as defined in Code
Section 162(m)(4)(C)), which amount shall be reasonably determined by the
Committee at the time of the proposed distribution.  Any amount which is not distributed to the
Participant in a Plan Year as a result of this limitation shall be distributed
to the Participant in the next Plan Year, subject to compliance with the
foregoing limitation set forth in this Section 6.9 and compliance with any
six (6) month distribution delay requirements of this Plan and Code Section
409A.

 

6.10         Tax Withholding.  Distribution and
withdrawal payments under this Article VII shall be subject to all applicable
withholding requirements for state and federal income taxes and to any other
federal, state or local taxes that may be applicable to such payments.

 

ARTICLE VII

Special Change of Control Provisions

 

7.1           No New Participants Following Change
of Control.  No individual may commence participation in the Plan
following a Change of Control.

 

7.2           No Deferrals Following a Change of
Control.  Deferrals shall cease as of the date of a Change of
Control.

 

ARTICLE VIII

Amendment and Termination

 

8.1           Amendment by Employer Prior to and on
and After a Change of Control.  Prior to a Change of Control, the
Employer reserves the authority to amend the Plan by filing with the Trustee an
amendment or a restated Plan document, executed by the Employer only, in which
the Employer has indicated a change or changes in provisions previously elected
by it.  Such changes are to be effective
on the effective date of such amendment or restated Plan document.  Any such change notwithstanding, no
Participant’s Account shall be reduced by such change below the amount to which
the Participant would have been entitled if he had voluntarily left the employ
of the Employer immediately prior to the date of the change.  The Employer may from time to time make any
amendment to the Plan that may be necessary to satisfy the Code or ERISA.  Prior to a Change of Control, the Employer’s
board of directors shall act on behalf of the Employer for purposes of this Section.  On and after a Change of Control, only the
Committee may amend the Plan; provided, however, that following a Change of
Control, the Committee may not increase the phantom

 

9

 

investment alternatives
available under the Plan, institute a guaranteed rate of return or take similar
actions to materially increase the benefits of Participants, unless the
Employer’s consent is obtained.

 

8.2           Retroactive Amendments.  An
amendment made by the Employer in accordance with Section 8.1 may be made
effective on a date prior to the first day of the Plan Year in which it is
adopted if such amendment is necessary or appropriate to enable the Plan and
Trust to satisfy the applicable requirements of the Code or ERISA or to conform
the Plan to any change in federal law or to any regulations or ruling
thereunder.  Any retroactive amendment by
the Employer shall be subject to the provisions of Section 8.1.

 

8.3           Plan Termination.  The Employer has
adopted the Plan with the intention and expectation that contributions will be
continued indefinitely.  However, said
Employer has no obligation or liability whatsoever to maintain the Plan for any
length of time and may discontinue contributions under the Plan or terminate
the Plan at any time by written notice delivered to the Trustee without any
liability hereunder for any such discontinuance or termination; provided,
however, that on and after a Change of Control, only the Committee may
terminate the Plan.

 

8.4           Distribution upon Termination of
the Plan.  Upon termination of the Plan, no further Deferral
Contributions or Employer Contributions shall be made under the Plan, but
Accounts of Participants maintained under the Plan at the time of termination
shall continue to be governed by the terms of the Plan until paid out in
accordance with the terms of the Plan and Participants’ deferral elections.

 

ARTICLE
IX

The Trust

 

9.1           Establishment of Trust.  The Employer
shall establish the Trust between the Employer and the Trustee, in accordance
with the terms and conditions as set forth in a separate agreement, under which
assets are held, administered and managed, subject to the claims of the
Employer’s creditors in the event of the Employer’s insolvency, until paid to
Participants and their Beneficiaries as specified in the Plan.  The Trust is intended to be treated as a
grantor trust under the Code, and the establishment of the Trust is not
intended to cause Participants to realize current income on amounts contributed
thereto.

 

ARTICLE X

Miscellaneous

 

10.1         Communication to Participants. 
The Plan will be communicated to all Participants by the Employer promptly
after the Plan is adopted.

 

10.2         Limitation of Rights.  Neither the
establishment of the Plan and the Trust, nor any amendment thereof, nor the
creation of any fund or account, nor the payment of any benefits, will be 

 

10

 

construed as giving to any
Participant or other person any legal or equitable right against the Employer,
Administrator or Trustee, except as provided herein; and in no event will the
terms of employment or service of any Participant be modified or in any way
affected hereby

 

10.3         Spendthrift
Provision.  The benefits provided
hereunder will not be subject to alienation, assignment, garnishment, attachment,
execution or levy of any kind, either voluntarily or involuntarily, and any
attempt to cause such benefits to be so subjected will not be recognized,
except to such extent as may be required by law.

 

10.4         Facility of Payment.  In the event the
Administrator determines, on the basis of medical reports or other evidence
satisfactory to the Administrator, that the recipient of any benefit payments
under the Plan is incapable of handling his affairs by reason of minority,
illness, infirmity or other incapacity, the Administrator may direct the
Trustee to disburse such payments to a person or institution designated by a
court which has jurisdiction over such recipient or a person or institution
otherwise having the legal authority under State law for the care and control
of such recipient.  The receipt by such
person or institution of any such payments therefore, and any such payment to
the extent thereof, shall discharge the liability of the Trust for the payment
of benefits hereunder to such recipient.

 

10.5         Information between Employer and
Trustee.  The Employer agrees to furnish the Trustee, and the
Trustee agrees to furnish the Employer with such information relating to the
Plan and Trust as may be required by the other in order to carry out their
respective duties hereunder, including without limitation information required
under the Code or ERISA and any regulations issued or forms adopted thereunder.

 

10.6         Notices.  Any notice or other communication in
connection with this Plan shall be deemed delivered in writing if addressed as
provided below and if either actually delivered at said address or, in the case
of a letter, three business days shall have elapsed after the same shall have
been deposited in the United States mails, first-class postage prepaid and
registered or certified:

 

(a)           If
it is sent to the Employer or Administrator, it will be at the address
specified by the Employer;

 

(b)           If
it is sent to the Trustee, it will be sent to the address set forth in the
Trust Agreement; or, in each case at such other address as the addressee shall
have specified by written notice delivered in accordance with the foregoing to
the addressor’s then effective notice address.

 

10.7         Governing Law.  The Plan will be construed,
administered and enforced according to ERISA, and to the extent not preempted
thereby, the laws of the state of Oregon.

 

ARTICLE XI

Plan Administration

 

11.1         Powers and responsibilities of the
Committee.  The Committee has the full power and the full
responsibility to administer the Plan in all of its details, subject, however,
to the applicable 

 

11

 

requirements of ERISA.  The Committee’s powers and responsibilities
include, but are not limited to, the following:

 

(a)           To
make and enforce such rules and regulations as it deems necessary or proper for
the efficient administration of the Plan;

 

(b)           The
discretionary authority to construe and interpret the Plan, its interpretation
thereof in good faith to be final and conclusive on all persons claiming
benefits under the Plan;

 

(c)           To
decide all questions concerning the Plan and the eligibility of any person to
participate in the Plan;

 

(d)           To
administer the claims and review procedures specified in Section 11.3;

 

(e)           To
compute the amount of benefits which will be payable to any Participant, former
Participant or Beneficiary in accordance with the provisions of the Plan;

 

(f)            To
determine the person or persons to whom such benefits will be paid;

 

(g)           To
authorize the payment of benefits;

 

(h)           To
appoint such agents, counsel, accountants, and consultants as may be required
to assist in administering the Plan;

 

(i)            By
written instrument, to allocate and delegate its responsibilities.

 

11.2         Nondiscriminatory Exercise of
Authority.  Whenever, in the administration of the Plan, any
discretionary action by the Committee is required, the Committee shall exercise
its authority in a nondiscriminatory manner so that all persons similarly
situated will receive substantially the same treatment.

 

11.3         Claims and Review Procedures.

 

If Participant
or his or her representative submit a written claim for a benefit under the
Plan (other than a benefit due to disability) and their claim is denied in
whole or in part, the Committee will notify Participant or his or her representative
in writing of such denial within ninety (90) days after the claim is received,
unless special circumstances require an extension of up to ninety (90) more
days, in which case Participant or his or her representative will be notified
in writing of the extension, the special circumstances requiring the extension
and the date by which the Committee expects to render its decision.  The denial notice will include:

 

•                  The specific
reason(s) for the denial,

 

•                  References to
the specific Plan provision(s) on which the denial was based,

 

•                  A description of
any additional material or information that is necessary to perfect the claim
and an explanation of why such material or information is necessary, and

 

12

 

•                  A description of
the Plan’s procedures for appealing the denial. 
If the Participant or his or her representative disagrees with the
Committee’s decision, they will have sixty (60) days from the receipt of the
original denial notice to appeal the decision. 
This appeal must be in writing and sent to the Committee.

 

Participant or
his or her representative has the right to review (upon request and at no
charge) all documents and other information relevant to their claim and to
submit written comments, documents and other information relating to their
claim.  The Committee will notify
Participant or his or her representative in writing of its decision within
sixty (60) days after it receives the appeal,
unless special circumstances require an extension of up to sixty (60) more
days, in which case Participant or his or her representative
will be notified in writing of the extension, the special circumstances
requiring the extension and the date by which the Committee expects to render
its decision.  If the appeal is denied,
the Committee will give Participant or his or her representative written notice
that includes:

 

•                  The specific
reason(s) for the denial,

 

•                  References to the
specific Plan provision(s) on which the denial was based,

 

•                  A statement that
Participant or his or her representative will be provided, upon request and
free of charge, reasonable access to, and copies of, all documents and other
information relevant to their claim, and

 

•                  A statement
regarding Participant’s right to bring an action under Section 502(a) of
ERISA.

 

11.4         Plan’s Administrative Costs.  The Employer shall pay all reasonable costs
and expenses (including legal, accounting, and employee communication fees)
incurred by the Committee and the Trustee in administering the Plan and Trust.

 

13

 

IN WITNESS WHEREOF, the
Employer by its duly authorized officer(s), has caused this Plan to be adopted
effective October 31, 2004.

 

	
   

  	
  EMPLOYER

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ RAYMOND A.
  LINK

  
	
   

  	
   

  	
  Raymond A. Link

  
	
   

  	
   

  	
  Vice President,
  Finance and Administration,

  
	
   

  	
   

  	
  Chief Financial
  Officer and Secretary

  

 

14

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