Document:

exv10w1

Exhibit 10.1

ELECTRO RENT CORPORATION

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 
	 	 	Page	 
	 
	 	 	 	 
	I. PLAN HISTORY AND FEATURES
	 	 	1	 
	 
	 	 	 	 
	II. DEFINITIONS
	 	 	2	 
	2.1 Board of directors
	 	 	2	 
	2.2 Code
	 	 	2	 
	2.3 Deferral
	 	 	2	 
	2.4 Employee
	 	 	2	 
	2.5 Employer
	 	 	3	 
	2.6 Employment
	 	 	3	 
	2.7 ERISA
	 	 	3	 
	2.8 Participant
	 	 	3	 
	2.9 Plan
	 	 	3	 
	2.10 Plan Administrator
	 	 	3	 
	2.11 Trust or Trust Fund
	 	 	3	 
	2.12 Trust Agreement
	 	 	4	 
	 
	 	 	 	 
	III. PARTICIPATION
	 	 	5	 
	3.1 Requirements for Participation
	 	 	5	 
	3.2 Termination of Participation
	 	 	5	 
	 
	 	 	 	 
	IV. BENEFITS
	 	 	6	 
	4.1 Supplement to the Savings Plan
	 	 	6	 
	4.2 Accounts
	 	 	7	 
	4.3 Payment of Benefits
	 	 	7	 
	4.4 Hardship Withdrawals
	 	 	8	 

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	 	 	Page	 
	 
	 	 	 	 
	V . SECURITY FOR PROMISED BENEFITS
	 	 	9	 
	 
	 	 	 	 
	VI. ADMINISTRATION OF THE PLAN
	 	 	11	 
	6.1 Duties of the Plan Administrator
	 	 	11	 
	6.2 Delegation of Administrative Responsibility
	 	 	11	 
	6.3 Claims Procedure
	 	 	11	 
	6.4 Effect of Plan Administrator Action
	 	 	13	 
	 
	 	 	 	 
	VII. AMENDMENT AND TERMINATION OF THE PLAN
	 	 	15	 
	 
	 	 	 	 
	VIII. MISCELLANEOUS PROVISIONS
	 	 	16	 
	8.1 Alienation
	 	 	16	 
	8.2 Duty to Provide Data
	 	 	16	 
	8.3 Limitation on Rights of Employees
	 	 	17	 
	8.4 Service of Process
	 	 	18	 
	8.5 Governing Law
	 	 	18	 
	8.6 Plurals
	 	 	18	 
	8.7 Titles
	 	 	18	 
	8.8 References
	 	 	19	 

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ELECTRO RENT CORPORATION SUPPLEMENTAL EXECUTIVE

RETIREMENT PLAN

ARTICLE I

PLAN HISTORY AND FEATURES

     Electro Rent Corporation has adopted this Plan for the benefit of certain of its employees.
The Plan is effective January 1, 1987.

     The Plan is a non-qualified deferred compensation program which is a “pension benefit plan”
subject to the Employee Retirement Income Security Act of 1974. Although benefits under the Plan
are unfunded contractual obligations of the Employer, the Employer may transfer money or other
property to one or more “rabbi” trusts and direct that benefits under the Plan be paid out of such
assets.

     The purpose of the Plan is to provide benefits that cannot be provided under qualified
retirement programs of the Employer because of limitations imposed by federal law, including
Internal Revenue Code Section 415 limitations on allowable benefits, Code Section 401(k)
limitations on cash or deferred plan deferrals, and Code Section 401(a)(4) limitations on the
granting of benefits based on non-qualified deferred compensation and on discrimination in
contributions or benefits.

 

 

ARTICLE II

DEFINITIONS

     The following terms, when capitalized, shall have the meaning specified below unless the
context clearly indicates to the contrary.

     2.1 Board of Directors: The Board of Directors of Electro Rent Corporation.

     2.2 Code: The Internal Revenue Code of 1986, as amended from time to time.

     2.3 Deferral: An amount contributed to this Plan by the Employer in lieu of being paid
to a Participant as salary or wages. Deferrals shall be made under salary reduction arrangements
between each Participant and the Employer. Article IV contains the provisions under which Deferrals
may be made. Deferrals may only be withheld from amounts earned after execution of the salary
reduction arrangement pursuant to which the Deferral is being made.

     2.4 Employee: An individual who renders services to the Employer as a common law
employee or officer (i.e., a person whose wages from the Employer are subject to federal
income tax withholding). A person rendering services to the Employer purportedly as an independent
contractor shall not be treated as an Employee before the Employer has acknowledged that it must
withhold federal income taxes from his or her pay.

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     2.5 Employer: Electro Rent Corporation and any other company which adopts the Plan,
and any successor entity which continues the Plan or such companies collectively. In contexts in
which actions are required or permitted to be taken or notice is to be given, the Employer shall
mean Electro Rent Corporation or any successor company.

     2.6 Employment: The period during which an individual is an Employee. Employment shall
commence on the day the individual first performs services for the Employer as an Employee and
shall terminate on the day the Employee resigns, dies, retires or is discharged or permanently laid
off.

     2.7 ERISA: The Employee Retirement Income Security Act of 1974.

     2.8 Participant: Any Employee who is included in the Plan pursuant to Article III.

     2.9 Plan: This document and any Trust Agreement.

     2.10 Plan Administrator: Electro Rent Corporation, acting through its chief executive
officer or such other person as the Employer shall designate. The Plan Administrator is the Plan’s
“named fiduciary” within the meaning of Section 402(a)(2) of ERISA.

     2.11 Trust or Trust Fund: The fund established under one or more Trust
Agreements pursuant to the Plan.

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     2.12 Trust Agreement: Any agreement between a trustee and the Employer entered into
for the purpose of investing and administering the Trust Fund. Each Trust Agreement constitutes a
part of this Plan.

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ARTICLE III

PARTICIPATION

     3.1 Requirements for Participation

          A person may participate in the Plan if: (1) the Plan Administrator determines that the
limitations of Code Sections 415 or 401(k) would preclude the individual from making Deferrals to
the maximum amount permitted under the Electro Rent Corporation Employee Stock Ownership and
Savings Plan (the “Savings Plan”). In addition, any individuals selected by the Employer may
participate in the Plan. A person shall become a Participant on the date he or she is notified by
the Plan Administrator in writing that he or she has become a Participant.

     3.2 Termination of Participation

          An individual who has become a Participant shall cease to be a Participant upon termination
of Employment.

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ARTICLE IV

BENEFITS

     4.1 Supplement to the Savings Plan

          (a) To the extent that a Participant cannot contribute the maximum amount permitted under the
Savings Plan because of Code Section 415 or 401(k) limitations applicable to the Savings Plan, the
amount that cannot be contributed to the Savings Plan shall automatically be treated as a Deferral
under this Plan in accordance with contribution elections which have been made under the Savings
Plan, except as otherwise permitted by the Plan Administrator. A Participant may make “catch-up”
Deferrals to this Plan retroactive to January 1, 1987 but starting at a later date during 1987. Any
Deferral to be made under this Plan shall be deducted from the Participant’s paycheck on the same
date the amount would have been deducted under the Savings Plan but for legal limitations, or at
such other time as the Plan Administrator specifies, and shall be credited to the Participant’s
account in accordance with Section 4.3.

          (b) The Employer makes matching contributions under the Savings Plan. Matching contributions
which cannot be provided under the Savings Plan due to Code Section 415 or applicable
anti-discrimination requirements shall be provided under this Plan to the extent they are “earned”
by the Participant by making contributions to the Savings Plan or Deferrals to this Plan. Employer
matching contributions made to this Plan shall be subject to the same vesting provisions as the
Savings Plan.

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     4.2 Accounts

          Deferrals or Employer matching contributions for a Participant under Section 4.1 shall be
credited to a separate unfunded account on the books of the Employer as soon as reasonably possible
after such amounts have been ascertained. These accounts shall be credited with interest at a rate
to be determined by the Plan Administrator. To the extent an account is funded through the Trust
Fund, it shall be credited instead with the approximate actual earnings (or losses) on the portion
of the Trust Fund being held for the Participant’s benefit as authorized by the Plan Administrator.

     4.3 Payment of Benefits

          Benefits under this Section shall be paid to the Participant upon termination of Employment.
A Participant’s benefit under the Plan shall consist of his or her Account balance as of the date
distribution is made or commences. Payment shall be made in a cash lump sum if the Participant’s
benefit under the Plan is less than $40,000. For benefits from $40,000 to $200,000, payment shall
be made in no more than five annual installments. The amount of each installment shall be
calculated as follows; however, no installment shall be less than $20,000 except to the extent
that the unpaid account balance is less than $20,000, in which case the installment shall be equal
to the entire unpaid account balance: the first installment shall be one-fifth of the total
benefit, the second installment shall be one-fourth of the remaining benefit, the third
installment, one-third, etc. For benefits exceeding $200,000, payment shall be made in ten annual
installments, each payment being one-tenth of the unpaid amount of the benefit. By written
agreement between the Plan Administrator and the Participant executed at the time the individual
first becomes

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a Participant hereunder, the Plan Administrator in its sole discretion may authorize a different
form of payment. Payments shall commence as of the first day of the month coincident with or next
following termination of Employment. Upon a Participant’s death, the balance payable to the
Participant shall be paid to the Participant’s surviving beneficiary in installments as described
above or as a continuation of installments if the Participant’s benefit was already in pay status
at the time of the Participant’s death. The Participant shall designate a beneficiary in the manner
and form prescribed by the Plan Administrator. If the Participant has no surviving beneficiary, the
Participant’s benefit shall be paid in a lump sum to the Participant’s estate.

     4.4. Hardship Withdrawals

          The Plan Administrator in its sole discretion may permit a Participant to withdraw all or a
part of his or her Account because of the existence of a hardship.

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ARTICLE V

SECURITY FOR PROMISED BENEFITS

     This Plan constitutes an unfunded, unsecured promise of the Employer to pay amounts to each
Participant (or his or her beneficiary) out of the Employer’s general assets. Nevertheless, subject
to the following terms, the Employer is hereby authorized in its discretion to transfer money or
other property to one or more Trust Funds and direct the trustee(s) (which may be any individual or
group of individuals, including a Participant, or a corporate fiduciary) to pay Plan benefits to a
Participant out of such assets.

          (a) The funding of such Trust Fund shall be at the discretion of any of the Employer’s
officers, but the Trust (including additions to it and earnings) shall be irrevocable.

          (b) The Employer shall remain the owner of all assets in the Trust and the assets shall only
be subject to the claims of Employer creditors if the Employer ever goes into bankruptcy, or
becomes insolvent. The term “insolvent,” as used herein shall mean the Employer’s inability to pay,
within a reasonable time, its liabilities as they become due. The Employer shall have the duty to
inform the trustee(s), within a reasonable time, if the Employer becomes insolvent or goes into
bankruptcy. When so informed, the trustee(s) shall suspend payments to the Participants and hold
the assets for the benefit of the Employer’s general creditors. If the trustee(s) receives a
written allegation that the Employer is bankrupt or insolvent, the trustee(s) shall suspend
payments to the Participants and hold the assets for the benefit of the Employer’s general
creditors, and shall determine within thirty days of receipt of such notice whether the Employer is
bankrupt or insolvent.

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If the trustee(s) determines that the Employer is not bankrupt or insolvent, the trustee(s) shall
resume payments to the Participants.

          (c) Except as provided in subsection (b), Participants’ interest in the Trust shall be the
same as, but in no event better than, the rights of general unsecured creditors of the Employer.

          (d) The Employer may retain the right to direct how the Trust Fund is to be invested and shall
have the power to substitute assets of like value for cash or assets in the Trust.

          (e) To the extent the Trust Fund has sufficient assets, benefits under the Plan may be paid by
the trustee(s). To the extent the trustee(s) does not or cannot pay benefits out of the Trust, the
benefits shall be paid by the Employer.

          (f) The Employer may reduce the amount of payment to be made under this Plan to a Participant
or his or her beneficiary by the amount of any taxes on the payment which the Employer is required
to withhold pursuant to applicable law.

          (g) After all accrued benefits due under this Plan have been paid, or with the consent of all
Participants entitled to payment of benefits under the Trust, the Trust Agreement shall terminate
and any remaining assets shall be transferred to the Employer.

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ARTICLE VI

ADMINISTRATION OF THE PLAN

     6.1 Duties of the Plan Administrator

          The Plan Administrator shall be responsible for the general administration and management of
the Plan and shall administer the Plan in accordance with its terms.

     6.2 Delegation of Administrative Responsibility

          (a) The Plan Administrator may delegate all or any portion of its administrative
responsibilities with respect to the Plan to any other person pursuant to this Section.

          (b) A delegation under this Section shall be accomplished by a written instrument executed by
the Plan Administrator specifying responsibilities delegated and the fiduciary responsibilities
allocated to such delegate. A delegation of such responsibility shall be effective upon the date
specified in the delegation, subject to written acceptance by the delegate.

     6.3 Claims Procedure

          (a) Normally, a Participant or beneficiary need not present a formal claim for benefits in
order to qualify for rights or benefits under this Plan. However, if any person is not granted the
rights or benefits to which the person believes himself or herself to be entitled, a formal claim
for benefits must be filed in accordance with this Section. A claim by any person shall be
presented to the claims official appointed by the Plan Administrator in writing within the maximum
time permitted

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by law or under regulations promulgated by the Secretary of Labor or his or her delegate
pertaining to claims procedures. The claims official shall, within a reasonable time, consider the
claim and shall issue his or her determination thereon in writing. If the claim is granted, the
appropriate distribution or payment shall be made under the Plan.

          (b) If the claim is wholly or partially denied, the claims official shall, within ninety days
(or such longer period as may be reasonably necessary) provide the claimant with written notice of
the denial, setting forth, in a manner calculated to be understood by the claimant:

               (i) the specific reason or reasons for the denial,

               (ii) specific references to pertinent Plan provisions on which the
denial is based,

               (iii) a description of any additional material or information necessary for the claimant to
perfect the claim and an explanation of why the material or information is necessary, and

               (iv) an explanation of the Plan’s claim review procedure.

          (c) Each claimant shall have the opportunity to appeal in writing the claims official’s denial
of a claim to a review official designated by the Plan Administrator for a full and fair review.
The claimant or his or her duly authorized representative:

               (i) may request a review by filing a written application with the review official,

               (ii) may review pertinent documents, and

               (iii) may submit issues and comments in writing.

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          (d) The Plan Administrator may establish time limits within which a claimant may request
review of a denied claim which are reasonable in relation to the nature of the benefit which is the
subject of the claim and other attendant circumstances, but which shall not be less than sixty days
after receipt by the claimant of written notice of denial of his or her claim.

          (e) The decision by the review official upon review of a claim shall be made not later than
sixty days after his or her receipt of the request for review, unless special circumstances require
an extension of time for processing, in which case a decision shall be rendered as soon as
possible, but not later than one hundred twenty days after receipt of the request for review.

          (f) The decision on review shall be in writing and shall include specific reasons for the
decision written in a manner calculated to be understood by the claimant, with specific references
to the pertinent Plan provisions on which the decision is based.

          (g) To the extent permitted by law, the decision of the claims official (if no review is
properly requested) or the decision of the review official, as the case may be, shall be final and
binding on all parties. No legal action for benefits under the Plan shall be brought unless and
until the claimant has exhausted his or her remedies under this Section.

     6.4 Effect of Plan Administrator Action

          (a) All actions taken and all determinations made by the Plan Administrator in good faith
shall be final and binding upon all Participants and any person interested in the Plan. To the
extent the Plan Administrator has been granted discretionary authority under the Plan, its prior
exercise of such authority shall not obligate the Plan Administrator to exercise its authority in
a like fashion thereafter.

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          (b) The Plan shall be interpreted by the Plan Administrator in accordance with its terms and
their intended meaning. If, due to errors in drafting, a provision does not accurately reflect its
intended meaning, as demonstrated by consistent interpretations by the Plan Administrator or other
evidence of intention, the provision shall be considered ambiguous and shall be interpreted by the
Plan Administrator in a fashion consistent with its intent. The Plan Administrator, without the
need for Board approval, shall amend the Plan retroactively to cure any such ambiguity. This
subsection may not be invoked by a Participant, beneficiary or any other person to require the Plan
to be interpreted in a manner which is inconsistent with its interpretation by the Plan
Administrator.

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ARTICLE VII

AMENDMENT AND TERMINATION OF THE PLAN

     The Employer reserves the right at any time to amend or to restructure the Plan prospectively
or retroactively. No amendment or other change shall reduce the present value of a Participant’s
benefit (ignoring income tax consequences) without the Participant’s consent. This Plan may not be
terminated by the Employer until all benefits due under the Plan have been paid.

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ARTICLE VIII

MISCELLANEOUS PROVISIONS

     8.1 Alienation

          The rights of a Participant or beneficiary under the Plan shall not be subject to any claim of any
creditor of the Participant or beneficiary nor to attachment or garnishment or other legal process
by any creditor of the Participant or beneficiary. A Participant or beneficiary shall not have the
right to alienate, anticipate, commute, pledge, encumber or assign any of the benefits or payments
or proceeds which the individual may expect to receive, contingently or otherwise, under the Plan.

     8.2 Duty to Provide Data

          (a) Every person with an interest in the Plan or claiming benefits under the Plan shall
furnish the Plan Administrator on a timely and accurate basis with such documents, evidence or
information as it considers necessary or desirable for the purpose of administering the Plan. The
Plan Administrator may postpone payment of benefits until such information and such documents have
been furnished.

          (b) Every person claiming a benefit under this Plan shall give written notice to the Plan
Administrator of his or her post office address and each change of post office address. Any
communication, statement or notice addressed to such a person at his or her latest post office
address as filed with the Plan Administrator will, on deposit in the United States mail with
postage prepaid, be as binding upon such person for all purposes of the Plan as if it had been
received, whether actually received or not. If a person fails to give notice of his or her correct
address, the

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Plan Administrator, the Employer and the trustee shall not be obliged to search for, or to
ascertain, his or her whereabouts.

          (c) If benefits which are otherwise currently payable cannot be paid to the person entitled to
the benefits because the individual has failed to comply with this Section or other Plan provisions
relating to claims for benefits, any unpaid amounts shall be forfeited.

     8.3 Limitation on Rights of Employees

          The Plan is strictly a voluntary undertaking on the part of the Employer and shall not
constitute a contract between the Employer and any Employee, or consideration for, or an
inducement or condition of, the employment of an Employee. Except as otherwise required by statute
or an express, written employment contract, nothing contained in the Plan shall give any Employee
the right to be retained in the service of the Employer or to interfere with or restrict the right
of the Employer, which is hereby expressly reserved, to discharge or retire any Employee at any
time, with or without cause. Except as otherwise required by statute, inclusion under the Plan
will not give any Employee any right or claim to any benefit hereunder except to the extent such
right has specifically become fixed under the terms of the Plan. The doctrine of substantial
performance shall have no application to Employees, Participants or their beneficiaries. Each
condition and provision, including numerical items, has been carefully considered and constitutes
the minimum limit on performance which will give rise to the applicable right.

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     8.4 Service of Process

          The Secretary of Electro Rent Corporation is hereby designated as agent for the service of
legal process on the Plan.

     8.5 Governing Law

          The Plan and Trust shall be interpreted, administered and enforced in accordance with ERISA,
and the rights of Participants, former Participants, beneficiaries and all other persons shall be
determined in accordance with that law. ERISA does not require that this Plan be “funded.” Under
ERISA this Plan would be considered “unfunded” even if one or more Trust Funds are established
since the assets in such Trust Funds are subject to the claims of the Employer’s creditors under
Article V. To the extent that state law is applicable, the laws of the State of California shall
apply.

     8.6 Plurals

          Where the context so indicates, the singular shall include the plural and vice versa.

     8.7 Titles

          Titles are provided herein for convenience only and are not to serve as a basis for
interpretation or construction of the Plan.

-18-exv10w2

Exhibit 10.2

EXECUTIVE EMPLOYMENT AGREEMENT

(AMENDED AND RESTATED AS OF JULY 15, 1992)

     Under date of December 15, 1986 ELECTRO RENT CORPORATION, a California corporation (the
“Company”), and the hereinafter named Executive of the Company entered into an EXECUTIVE
EMPLOYMENT AGREEMENT.

     Under date of November 22, 1988 the Company and the Executive amended the EXECUTIVE EMPLOYMENT
AGREEMENT by executing AMENDMENT NO. ONE TO EXECUTIVE EMPLOYMENT AGREEMENT.

     The Company and the Executive desire to amend the EXECUTIVE EMPLOYMENT AGREEMENT further and
to restate it into a single document as heretofore amended and as further amended by this
restatement.

     Accordingly, in consideration of the mutual promises herein contained, the Company hereby
amends and restates the EXECUTIVE EMPLOYMENT AGREEMENT as of July 15, 1992 to read as follows:

EXECUTIVE EMPLOYMENT AGREEMENT

     This EXECUTIVE EMPLOYMENT AGREEMENT (this “Agreement”) was originally made and entered into
the 15th day of December, 1986 (December being the “Anniversary Month” referred to in 1.1(a)
hereof) by and between ELECTRO RENT CORPORATION, a California corporation (the
“Company”), and DANIEL GREENBERG (the “Executive”)
and was heretofore amended as of November 22, 1988, and is being hereby further amended and
restated as of July 15, 1992.

RECITALS

     A. The Executive has served as the Chief Executive Officer and Chairman of the Board of the Company, in which capacity he
has made a major contribution to the profitability, growth and financial strength of the Company.

     B. The Executive has rendered such services to the Company with
the expectation and in reliance upon the Company’s expressed intention to provide the Executive with supplementary retirement and other
benefits upon the termination of his service.

     C. Although no merger or comparable transaction is currently
being contemplated by the Company or by the Board of Directors of the
Company (the “Board of Directors”), and neither the Company nor the
Board of Directors is aware of any impending or contemplated transactions involving such a change of control, general experience in such
matters has made clear the need for independent leadership at the
highest levels of the Company’s management.

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     D. Accordingly, if the Company receives any proposal from any
other person or entity concerning a possible business combination
with, or acquisition of the equity securities of, the Company, the
Company believes it imperative that the Company and the Board of Directors of the Company be able to rely upon the Executive to continue
in his position and that the Company be able to receive and rely upon
his advice, if it requests it, as to the best interests of the Company and its shareholders without concern that he might be distracted
by the personal uncertainties and risks created by such a proposal.

     E. If the Company should receive any such proposals, in
addition to the Executive’s regular duties, he may be called upon to assist in the assessment of such proposals, to advise management and
the Board of Directors as to whether such proposals would be in the
best interests of the Company and its shareholders and to take such
other actions as the Board of Directors might determine to be appropriate.

     F. Accordingly, the Company considers the continued employment
of the Executive to be in the best interests of the Company and its
shareholders, and the Company wishes to assure that it will have the
continued dedication of the Executive and the availability of his advice and counsel notwithstanding the possibility, threat or occurrence of a bid to take over control of the Company.

     G. The
Executive is willing to remain in the employ of the Company upon the understanding that the Company will provide him with
income security if his employment with the Company is terminated, and
the Company is willing to provide such income security to induce the
Executive to remain in the employ of the Company.

     NOW, THEREFORE, in consideration of the premises and the mutual covenants and agreements
hereinafter set forth, the parties hereto agree as follows:

ARTICLE I

EMPLOYMENT AND COMPENSATION 

     Section 1.1 Employment, Duties and Term.

     (a) Subject to the provisions of Article II of this Agreement, the Company shall continue to
employ the Executive, and the Executive shall continue in the employ of the Company, to perform the
duties specified in Subsection 1.1(b) hereof for a term commencing on the date of this Agreement
(the “Employment Date”) and, except as otherwise herein provided, continuing until the third
anniversary of the Employment Date. The three-year period between the Employment Date and the
third anniversary thereof shall be referred to herein as the “Employment Term.” As each month of
the Employment Term expires, an additional month shall be added to the Employment Term to the end
that there shall at all times be in effect approximately a three-year Employment Term between the
Company and the Executive; provided,

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however, that by written notice by either party to the other that the party giving the notice has
elected not to add an additional month to the Employment Term, no additional time shall be added to
the Employment Term, and in that event the Executive’s employment shall terminate at the expiration
of the approximately three-year Employment Term then in effect.

     (b) In his performance of services for the Company hereunder, the Executive shall serve as an
executive employee of the Company and shall have such responsibilities as may from time to time be
assigned or delegated to him by the Board of Directors.

     Section 1.2 Compensation During Employment Term. Subject to the provisions of Article
III of this Agreement, the Company agrees to compensate the Executive during the Employment Term as
follows:

     (a) Basic Salary. During the continuation of the Executive’s
employment during the Employment Term hereunder, the Company shall
pay the Executive a basic salary at an annual rate of not less than
$300,000.00. The Board of Directors of the Company or its Compensation Committee may increase at any time during the Employment
Term the basic salary payable to the Executive hereunder.

     The Executive shall receive such salary in accordance with the Company’s regular payroll
practices, but not less often than monthly. The salary payments shall be reduced by all federal,
state and local taxes and withholdings required by applicable laws and regulations. The basic
salary payable to the Executive pursuant to this Subsection 1.2(a) shall, on each Anniversary Month
of the Employment Date, be increased or decreased by multiplying the Executive’s basic salary
during the first year of the Employment Term times a fraction, the numerator of which is the Index
for the then current Anniversary Month, and the denominator of which is the Index for the month in
which this Agreement was executed. As used herein (i) “Anniversary Month” shall mean the calendar
month each year corresponding to the month in or as of which this Agreement was executed as
specified in the opening paragraph of this Agreement; and (ii) “Index” shall mean the United states
Department of Labor, Bureau of Labor statistics Consumer Price Index — Urban Wage and Clerical
Workers, Los Angeles-Long Beach — Anaheim Metropolitan Area (Base Year 1967=100). In the event
the Index is not being published at the times hereinabove referred to, the Index shall mean the
price index, compilation or data most nearly approximating the Index hereinabove referred to. In
the event the United States Department of Labor utilizes a Base Year other than 1967, the Index
shall be adjusted to reflect its value in terms of the new Base Year. Annual adjustments shall be
made effective as of the first day of each Anniversary Month.

     (b) Bonuses and Incentive Compensation. The Executive shall be
entitled to receive bonuses and incentive compensation each year in
addition to his basic salary. In determining the amount of such
bonus and incentive compensation, consideration shall be given to
all pertinent factors including, but not limited to the following:

3

 

historic policies and practices, business revenues, business profits, the quality of the
Executive’s performance and the value of his contributions to the Company, the prevailing
compensation levels for comparable executive officers in businesses of size, complexity and/or
character similar to those of the Company.

     (c) Employee Benefits. During the continuation of the
Executive’s employment hereunder during the Employment Term, the Executive shall be entitled to receive employee benefits (including, but
not limited to, medical insurance, life insurance, retirement and
deferred compensation benefits) and other employment-related perquisites that are the greater of
(i) the employee benefits and perquisites provided from time to time by the Company to its senior
executives or (ii) the employee benefits and perquisites to which the
Executive was entitled immediately prior to the Employment Date.
Without limiting the generality of the foregoing, during the continuation of the Executive’s employment during the Employment Term
hereunder, the Company shall maintain without adverse change and
credit the Executive with benefits under the Employee Stock Owner
ship and Savings Plan.

     (d) Deferred Compensation. The Executive shall have and is
hereby given the right to defer prospectively part of the Executive’s
compensation on a contractual, non-funded basis for a period specified by the Executive.

ARTICLE II

TERMINATION

     Section 2.1. Certain Definitions.

     (a) For the purposes of this Agreement, a “Change of Control”
shall be deemed to have occurred if: (i) any person or entity (other
than the Executive), including a “group” (as defined in Section
13(d) (3) of the Securities Exchange Act of 1934), is or becomes the beneficial owner, directly or
indirectly, of shares of the capital stock of the Company having 20% or more of the total number of
votes that may be cast for the election of members of the Board of Directors, or (ii) as a result
of, or in connection with, any cash tender or exchange offer, merger or other business combination,
sale of assets or contested election, or any combination of the foregoing transactions (a
“Transaction”), the persons who were members of the Board of Directors immediately prior to the
Transaction cease to constitute a majority of the members of the Board of Directors or of the board
of directors of any successor to the Company.

     (b) For the purposes of this Agreement, an “Involuntary
 Termination of Employment” shall mean the time at which the employee-employer relationship between the Executive and the Company is
terminated as a result of the Executive’s discharge, retirement, death,
Permanent Disability (as defined below) or Involuntary Resignation

4

 

(as defined below). For the purposes of this Subsection 2.1(b), the occurrence of any of the
following events shall, at the Executive’s election (as evidenced by his resignation citing such
occurrence), constitute an “Involuntary Resignation:”

          (1) Following a Change in Control the Executive has for any reason terminated his employment with the Company; or

          (2) Any material breach by the Company of any provision of this Agreement.

     (c) For the purposes of this Agreement, the Executive shall be
deemed to have incurred a “Permanent Disability” (i) if a physician
engaged by the Executive certifies to the Company that the Executive
is permanently and totally disabled, or (ii) if the Executive has
been substantially unable, as a result of any physical or mental ailment, to perform his duties and responsibilities hereunder (A) for a
period of three consecutive months or (B) on 80% or more of the working days during any five consecutive months. The Executive’s employee-employer relationship with the Company shall terminate upon
his Permanent Disability.

     (d) For purposes of this Agreement “Discharged for Cause” shall
be deemed to refer to termination or discharge of the Executive for
cause consisting of fraud, theft or gross and persistent dereliction
of duty.

     Section 2.2 The Company’s Right to Discharge the Executive and the Executive’s Right to
Resign. Anything to the contrary contained herein notwithstanding,

     (a) the Company shall have the right, at any time prior to a
Change of Control,

          (1) to change the Executive’s position, authority, title,
responsibilities or duties, or

          (2) to discharge the Executive upon 30 day’s written
notice; and

     (b) the Executive shall have the right, at any time, to resign
upon 30 day’s written notice.

If the Executive is Discharged for Cause, the Company shall be obligated to pay the Executive the
salary due him under Section 1.2(a) hereof up to the date of such termination plus all deferred
compensation, if any; and the Executive shall not be entitled to any other compensation after such
date of termination. However, nothing herein contained shall be deemed to restrict or waive any
cause of action or right the Executive may have for claimed wrongful termination or other alleged
wrongs on the part of the Company. If the Executive resigns or is discharged or terminated for any
reason other than being Discharged for Cause (other than an Involuntary Termination of

5

 

Employment to which Section 2.3 applies and supersedes this sentence), the Executive shall become
a consultant to the Company for a period of 36 months from and after such resignation, discharge or
termination, and shall be compensated as an independent contractor during such 36 month period at
an annual rate equal to one-half of the Executive’s highest Annual Base Amount (which shall include
but not be limited to basic compensation, bonus and incentive compensation, and deferred
compensation) during the Employment Term. Said compensation shall be paid monthly without
deductions for withholding of income taxes or social security taxes or other payroll taxes;
provided, however, that said monthly payments shall cease in the event the Executive engages, in
business as proprietor, partner, joint venturer, shareholder, consultant, advisor, creditor or
otherwise of a business in competition with the Company. Whether the Executive resigns or is
Discharged for Cause or is discharged or terminated without cause, the Executive shall, after any
such resignation, discharge or termination, retain his vested retirement benefits under any
employee benefit plan sponsored by the Company in which the Executive is a participant, and the
Executive shall be permitted to exercise any stock options that had vested in him prior to such
resignation, discharge or termination in accordance with the terms of such stock options. After any
such resignation, discharge or termination and where there has been no Change of Control, the
Executive shall not be entitled to the payment of any sums or to the receipt of any benefits under
Section 2.3 of this Agreement except the Welfare Benefits provided in Section 2.3(b) (excluding the
other fringe benefits provided for in Section 2.3(b) following a Change of Control), which Welfare
Benefits shall be integrated with and be preceded by Welfare Benefits, if any, provided by any
non-competing successor entity with whom the Executive engages in business during the 36 month
consulting period.

     Section 2.3 Effect of Certain Involuntary Terminations of Employment . If an
Involuntary Termination of Employment occurs during the Term after a Change of Control, or if an
Involuntary Termination of Employment occurs during the Term at any time as a result of the
Executive’s death or Permanent Disability, the Company shall take the following steps:

     (a) Cash Payments. The Company shall pay to the Executive a gross aggregate
amount (subject to all federal, state and local taxes and withholding required by applicable
laws and regulations) equal to the Executive’s highest Annual Base Amount (which shall include
but not be limited to basic compensation, bonus and incentive compensation, and deferred
compensation) during the Term multiplied by three. However, in the case of an Involuntary
Termination of Employment following Change in Control this gross aggregate amount shall be
limited to an amount the present value of which is equal to 2.99 times the annualized Base
Amount (as the terms Base Amount and present value are defined in Section 280G of the Internal
Revenue Code of 1986, as amended, and any regulations thereunder (the “Code”)). The Company
shall pay this gross aggregate amount to the Executive in 36 equal monthly installments; or,
at the election of the Executive, the Company shall pay this gross

6

 

amount to the Executive in a lump sum provided such lump sum payment does not constitute an excess
parachute payment as said term is defined in Section 280G of the Code. Said payments shall be in
addition to and shall not be diminished or off-set by any life insurance, disability or other
amounts payable to or on behalf of the Executive pursuant to or from any insurance and/or employee
benefit plans maintained by the Company.

     It is the intention of the parties that the cash payments under this Agreement shall not
constitute “excess parachute payments” within the meaning of Section 280G of the Code. If the
independent accountants acting as auditors for the Company on the date of a Change of Control (or
another accounting firm designated by them) determine that the cash payments under this Agreement
may constitute “excess parachute payments,” the payments may be reduced to the maximum amount which
may be paid without the payments being “excess parachute payments.” The determination shall take
into account (i) whether the payments are “parachute payments” under Section 280G and, if so, (ii)
the amount of payments under this Agreement that constitutes reasonable compensation under Section
280G. Nothing contained in this Agreement shall prevent the Company after a Change of Control from
agreeing to pay the Executive compensation or benefits in excess of those provided in this
Agreement.

     In the event that any payments made to the Executive under this Agreement or otherwise (the
“Payments”) are subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”),
then the Company shall pay the Executive an additional amount (“Gross Up”) such that the net amount
retained by the Executive after deduction of any Excise Tax on the Payments and any Federal and
State income taxes and Excise Tax upon the Payments shall be equal to the Payments. For purposes of
determining the amount of the Gross Up, the Executive shall be deemed to pay Federal, State and
local income taxes at the highest marginal rate of taxation in the calendar year in which the
Payment is to be made. State and local income taxes shall be determined based upon the state and
locality of the Executive’s domicile on the termination date. The determination of whether such
Excise Tax is payable and the amount thereof shall be based upon the opinion of tax counsel
selected by the Company and acceptable to the Executive. If such opinion is not finally accepted
by the Internal Revenue Service upon audit, then appropriate adjustments shall be computed (without
interest but with Gross Up, if applicable) by such tax counsel based upon the final amount of the
Excise Tax so determined. The amount shall be paid by the appropriate party in one lump cash sum
within 30 days of such computation.

     (b) Welfare Benefits. For a period of 36 months following the date of Involuntary
Termination of Employment, the Company shall maintain in full force and effect for the continued
benefit of the Executive (and/or his spouse, children, dependents or other beneficiaries
(hereinafter collectively referred to as the “Beneficiaries”)) each employee health plan and
welfare benefit plan (as such term is defined in the Employee Retirement Income Security Act of

7

 

1974, as amended) in which the Executive (and/or any of the Beneficiaries) was entitled to
participate immediately prior to the Involuntary Termination of Employment. If the terms of any
such employee health plan or welfare benefit plan do not permit such continued participation, then
the Company will arrange to provide to the Executive (and/or any of the Beneficiaries) a benefit
substantially similar to and no less favorable then the benefit to which the Executive (and/or any
of the Beneficiaries) was entitled under each such plan at the end of the period of coverage. The
Executive (or the Executive’s personal representative or estate in the event of the Executive’s
death or Permanent Disability) shall have the option to have assigned to him (or to his personal
representative or estate in the event of his death or Permanent Disability) at no cost and with no
apportionment of prepaid premiums any assignable insurance policy owned by the Company and relating
specifically to the Executive. Following the expiration of the 36 month period for Welfare
Benefits under this Subsection 2.3(b), the Executive shall have the health care continuation
benefits (the “COBRA benefits”) provided for in Internal Revenue Code Section 4980B(f) and the
Company shall pay the full expense thereof without reimbursement by the Executive. In the event of
an Involuntary Termination after a Change of Control, the Company shall for a period of 36 months
following the date of such Involuntary Termination also provide the Executive with other fringe
benefits (including, but not limited to, short-term disability insurance, long-term disability
insurance, life insurance, club memberships, automobile allowances, and other supplementary
benefits) which were provided by the Company for the Executive during his employment.

     (c) Retirement Benefits. Upon termination of the Executive’s employment with the
Company for any reason and to the extent not inconsistent with the terms of such plan or the
provisions of the Internal Revenue Code of 1986, as amended, or the provisions of the Employee
Retirement Income Security Act of 1974, as amended, the Company shall direct the Plan Administrator
of the Electro Rent Employee Stock Ownership and Savings Plan to distribute to the Executive his
vested Account Balance under such plan at the earliest possible time. In addition, if the
Executive’s termination of employment is an Involuntary Termination of Employment, the Company
shall pay to the Executive 36 monthly payments equal to the contribution that the Company would
have made for the Executive to such plan for the 36 month period commencing on the date of his
termination of employment using as his compensation the Cash Payment amount determined under
Section 2.3(a).

ARTICLE III

MISCELLANEOUS

     Section 3.1 Indemnification. To the fullest extent permitted by California law, the
Company shall pay or reimburse the Executive for all costs and expenses (including court costs and
attorneys’ fees) incurred by the Executive as a result of any claim, action or

8

 

proceeding arising out of or relating to the Executive serving as an Officer or Director, including
any claim, action or proceeding relating to the validity, advisability or enforceability of this
Agreement or any provision hereof. The Company further agrees to pay interest on any money
judgment obtained by the Executive calculated at the rate publicly announced from time to time by
Bank of America National Trust and Savings Association, as its “prime interest rate” or its
“reference rate” from the date that the contested payment(s) to the Executive should have been made
under this Agreement until the date such payment(s) are actually made.

     Section 3.2 Payment Obligation Absolute. The Company’s obligation to pay the
Executive the compensation and to make the arrangements provided in Article II of this Agreement is
absolute and unconditional and shall not be affected by any circumstances, including, without
limitation, any set-off, counterclaim, recoupment, defense or other right that the Company may have
against the Executive or anyone else. All amounts payable by the Company hereunder shall be paid
without notice or demand. Each and every payment made hereunder by the Company shall be final and
the Company shall not seek to recover all or any part of such payment from the Executive or from
any other person who may be entitled thereto, for any reason whatsoever.

     Section 3.3 Successors. This Agreement shall be binding upon any successor (whether
direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of
the business and assets of the Company, and the Company will require any such successor by
agreement to assume expressly and to agree to perform this Agreement in the same manner and to the
same extent that the Company would be required to perform it if no such succession had taken place.

     Section 3.4 Assigns. This Agreement shall inure to the benefit of the parties hereto
and their respective heirs, legal representatives, successors and permitted assigns; provided,
however, that this Agreement shall be deemed to be personal to the Executive and shall not be
assignable by the Executive; provided further, however, that the Executive may assign (a) any
right, benefit or interest hereunder if such assignment is permitted under the terms of any plan or
policy of insurance or any annuity contract governing such right, benefit or interest, and (b) any
right hereunder to the payment of money.

     Section 3.5 Notices. Any notice that either party may be required or shall wish to
give hereunder shall be deemed to be duly given when delivered personally or, if mailed, two days
after mailing by certified or registered mail, postage prepaid, to the party to whom notice is
being given at the respective address below, or at such other address of which such party shall
have given notice to the other:

	 	 	 	 	 
	 

	 	To the Company:
	 	6060 Sepulveda Boulevard
	 

	 	 	 	Van Nuys, California 91411
	 
	 	 	 	 
	 

	 	To the Executive:
	 	6060 Sepulveda Boulevard
	 

	 	 	 	Van Nuys, California 91411

9

 

     Section 3.6 Amendment. This Agreement may be amended only by an instrument in writing
executed by the parties hereto.

     Section 3.7 Applicable Law. This Agreement shall be interpreted, construed and
enforced in accordance with the laws of the State of California.

     Section 3.8 Waiver. No provision in this Agreement may be waived except in a writing
signed by the party to be bound thereby.

     Section 3.9 Counterparts. This Agreement may be executed in multiple counterparts,
each of which shall be deemed an original, but all of which together shall constitute but one and
the same instrument.

     Section 3.10 Severability. Any provision in this Agreement that is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective only to the extent
of such prohibition or unenforceability without invalidating or affecting the remaining provisions
hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or
render unenforceable such provision in any other jurisdiction.

     Section 3.11 Heading of Sections. The headings of the Sections and Subsections of
this Agreement are for convenience and reference only and shall have no limiting effect in
interpreting this Agreement.

     IN WITNESS WHEREOF, the parties hereto have executed this Restated Agreement as of the
15th day of July, 1992.

	 	 	 	 	 	 	 	 	 
	(The “Company”)	 	 	 	(The “Executive”)	 	 
	 
	 	 	 	 	 	 	 	 
	ELECTRO RENT CORPORATION	 	 	 	 	 	 
	 

	 	 
	 	 	 	/s/ Daniel Greenberg
 

Daniel Greenberg
	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By

	 	/s/ William Weitzman
 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Its

	 	President 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By
	 	/s/ Steven Markheim
 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Its

	 	Secretary 
	 	 	 	 	 	 

10

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