Document:

exv10w16

 

EXHIBIT 10.16

SAFEGUARD SCIENTIFICS, INC.

EXECUTIVE DEFERRED COMPENSATION PLAN

Amended and Restated Effective October 25, 2005

 

 

SAFEGUARD SCIENTIFICS, INC.

EXECUTIVE DEFERRED COMPENSATION PLAN

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	ARTICLE I

	 	ESTABLISHMENT OF THE PLAN
	 	 	1	 
	ARTICLE II

	 	DEFINITIONS
	 	 	1	 
	ARTICLE III

	 	ADMINISTRATION OF THE PLAN
	 	 	3	 
	ARTICLE IV

	 	PARTICIPATION
	 	 	4	 
	ARTICLE V

	 	PARTICIPANT ACCOUNTS
	 	 	5	 
	ARTICLE VI

	 	BENEFITS TO PARTICIPANTS
	 	 	5	 
	ARTICLE VII

	 	CLAIMS PROCEDURES
	 	 	7	 
	ARTICLE VIII

	 	MISCELLANEOUS
	 	 	8	 

 

 

SAFEGUARD SCIENTIFICS, INC.

EXECUTIVE DEFERRED COMPENSATION PLAN

ARTICLE I

Establishment of the Plan

     Safeguard Scientifics, Inc. (the “Company”) hereby adopts the Safeguard Scientifics, Inc.
Executive Deferred Compensation Plan (the “Plan”), amended and restated effective October 25, 2005,
to provide a select group of key management or other highly compensated employees of the Company
with supplemental retirement benefits. The Company intends that the Plan shall at all times be
maintained on an unfunded basis for federal income tax purposes under the Internal Revenue Code of
1986, as amended (the “Code”), and administered as a non-qualified, “top hat” plan exempt from the
substantive requirements of the Employee Retirement Income Security of 1974, as amended (“ERISA”).

ARTICLE II

Definitions

     For ease of reference, the following definitions will be used in the Plan:

     2.1. Account(s). “Account” or “Accounts” means the account or accounts maintained on
the books of the Company used solely to calculate the amount payable to each Participant under this
Plan and shall not constitute a separate fund of assets.

     2.2. Base Salary. “Base Salary” means the annual rate of base salary paid to each
Participant as of any date of reference before any reduction for amounts deferred by the
Participant pursuant to a Code Section 401(k) plan or Code Section 125 plan, or pursuant to this
Plan or any other non-qualified plan that permits voluntary deferrals of compensation.

     2.3. Beneficiary(ies). “Beneficiary” or “Beneficiaries” means the person or persons
designated by the Participant to receive distributions under this Plan in the event of the
Participant’s death, as provided in Section 8.3.

     2.4. Board or Board of Directors. “Board” or “Board of Directors” means the Board of
Directors of Safeguard Scientifics, Inc. (or any successor entity).

     2.5. Change of Control. “Change of Control” means (a) the stockholders of the Company
approve (or, if stockholder approval is not required, the Board approves) an agreement providing
for (i) the merger or consolidation of the Company with another corporation where the stockholders
of the Company, immediately prior to the merger or consolidation, will not beneficially own,
immediately after the merger or consolidation, shares of the Company entitling such stockholders to
more than 50% of all votes to which all stockholders of the surviving corporation would be entitled
in the election of directors (without consideration of the rights of

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any class of stock to elect directors by a separate class vote), (b) the sale or other
disposition of all or substantially all of the assets of the Company, (c) a liquidation or
dissolution of the Company, (d) the acquisition by any “person” (as such term is used in sections
13(d) and 14(d) of the Securities and Exchange Act of 1934) other than Safeguard Scientifics, Inc.
or any of its subsidiaries or affiliates, of the “beneficial ownership” (as defined in Rule 13d-3
under the Exchange Act), directly or indirectly, of securities of the Company representing a
majority of the voting power of the then outstanding securities of the Company except where the
acquisition is approved by the Board, or (e) any person has commenced a tender offer or exchange
offer for a majority of the voting power of the then outstanding shares of the Company.
Notwithstanding the foregoing, the Committee may modify the definition of Change of Control as the
Committee deems appropriate to comply with Section 409A of the Code.

     2.6. Committee. “Committee” means at least three individuals appointed by the Board to
administer the Plan pursuant to Article III and which also may act for the Company or the Board in
making decisions and performing specified duties under the Plan.

     2.7. Company. “Company” means Safeguard Scientifics, Inc.

     2.8. Compensation. “Compensation” means an Eligible Employee’s earned income, wages,
salaries and fees for professional services and other amounts received, without regard to whether
or not an amount is paid in cash, for personal services actually rendered in the course of
employment with the Company as defined in Section 415 of the Code.

     2.9. Effective Date. “Effective Date” means the effective date of the Plan. The
original Effective Date is January 1, 2003. The Effective Date of the plan as amended and restated
herein is October 25, 2005.

     2.10. Eligible Employee. “Eligible Employee” means, as designated by the Company, in
its sole discretion, (i) a managing director, a vice president, director or higher level employee
of the Company, or (ii) any employee who is a member of a group of key management or other highly
compensated employees of the Company within the meaning of Sections 201(2), 301(a)(3) and 401(a)(1)
of ERISA. The Company may determine the eligibility of similarly situated employees.

     2.11. Employment Commencement Date. “Employment Commencement Date” means the first day
on which an individual became an employee for the Company.

     2.12. Participant. “Participant” means any Eligible Employee. An individual shall
remain a Participant until that individual has received full distribution of any amount credited to
the Participant’s Account.

     2.13. Plan. “Plan” means this Safeguard Scientifics, Inc. Executive Deferred
Compensation Plan as described herein and as it may be amended from time to time.

     2.14. Plan Year. “Plan Year” means the 12 month period beginning on each January 1 and
ending on the following December 31.

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     2.15. Separation Date. “Separation Date” means the date on which a Participant incurs
a Separation from Service.

     2.16. Year of Service. A “Year of Service means a Plan Year in which a Participant
has attained 1,000 hours of service; provided, however, that (a) the Committee shall determine in
its sole discretion whether a Year of Service has been attained; and (b) no more than one (1) Year
of Service shall be credited for any Plan Year; and (c) each Year of Service shall be credited as
of the last day of the calendar quarter during the relevant Plan Year in which the Participant
first attains 1,000 hours of service for that Plan Year.

     2.17. Valuation Funds. “Valuation Funds” means one or more of the independently
established funds or indices that are identified by the Committee. These Valuation Funds are used
solely to calculate the earnings that are credited to each Participant’s Account(s) in accordance
with Article V, below, and do not represent any beneficial interest on the part of the Participant
in any asset or other property of the Company. The determination of the increase or decrease in
the performance of each Valuation Fund shall be made by the Committee in its reasonable discretion.
Valuation Funds may be replaced, new funds may be added, or both, from time to time at the
discretion of the Committee.

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

ARTICLE III

Administration of the Plan

     3.1. Committee. The Plan shall be administered by the Committee appointed by the Board
of Directors. The Board shall designate one of the members of the Committee to serve as
Chairperson thereof. The Board shall also designate a person to serve as Secretary of the
Committee, which person may be, but need not be, a member of the Committee. A member of the
Committee may resign by delivering a written notice of resignation to the Board. The Board, in its
sole discretion, may remove any member of the Committee. Vacancies in the membership of the
Committee shall be filled promptly by the Board.

     3.2. Action by the Committee. A majority of the members of the Committee shall
constitute a quorum for the transaction of business at a meeting of the Committee and the Committee
may delegate any of its functions hereunder. Any action of the Committee may be taken upon the
affirmative vote of a majority of the members of the Committee at a meeting, or at the direction of
the Chairperson, without a meeting by unanimous consent of the Committee or by mail, telegraph,
telephone or electronic communication device; provided that all of the members of the Committee are
informed of their right to vote on the matter before the Committee and of the outcome of the vote
thereon.

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     3.3. Committee Authority and Duties. The Committee shall have the full power,
authority and discretion to construe, interpret and administer the Plan, to correct deficiencies
therein, to supply omissions, and to make factual determinations. All decisions, actions and
interpretations of the Committee shall be final, binding and conclusive upon all persons having any
interest in the Plan.

     3.4. Compensation, Expenses and Indemnification. Members of the Committee shall
receive no compensation for their services as such. All reasonable expenses of the Committee shall
be paid or reimbursed by the Company upon proper documentation. The Company shall indemnify and
hold harmless each member of the Committee from any and all claims, losses, damages, expenses
(including counsel fees) and liability (including any amounts paid in settlement of any claim or
any other matter with the consent of the Company) arising from any act or failure to act with
respect to this Plan on account of such member’s service on the Committee, except in the case of
gross negligence or willful misconduct.

ARTICLE IV

Participation

     4.1. New Eligible Employees. Subject to the requirements of Section 409A of the Code,
the Committee may, in its discretion, permit an employee who first becomes an Eligible Employee
after the beginning of a Plan Year, to participate in the Plan for that Plan Year. Participation
under the Plan shall be conditioned upon the Participant’s acknowledgement in writing or by receipt
of benefits under the Plan that all decisions and determinations of the Committee shall be final
and binding on the Participant and his or her Beneficiaries.

     4.2 Company Contribution. The Company, in its sole discretion, may determine to
credit a Participant’s Account with positive amounts for any Plan Year on such terms as the Company
shall determine. Absent action by the Company to the contrary, the Account shall consist of:

     (a) a fully vested amount equal to a stated percentage (which may vary from year to year) of
the Participant’s annual Compensation for the Plan Year not in excess of the limit imposed by
Section 401(a)(17) of the Code; and

     (b) an amount equal to a stated percentage (which may vary from year to year) of the
Participant’s Base Salary for the Plan Year; not in excess of the limit imposed by Section
401(a)(17) of the Code; subject to a vesting schedule pursuant to which such account shall vest
twenty percent (20%) in each Plan Year in which the Participant attains a Year of Service.

     4.3 Change of Status. The Committee, in its sole discretion, may determine that a
Participant no longer qualifies as a member of a select group of key management or other highly
compensated employees under ERISA, and to take such further action in light of such determination
as the Committee determines appropriate in its sole discretion.

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ARTICLE V

Participant Accounts

     5.1. Establishment of Accounts. The Company shall establish and maintain a separate
Account with respect to a Participant. The Participant’s Accounts shall be reduced by the amount
of payments made by the Company to the Participant or the Participant’s Beneficiary pursuant to
this Plan.

     5.2. Earnings (or Losses) on Accounts. At such time as the Committee designates
Valuation Funds for the deemed investment of each Participant’s Account balance, each Participant’s
Accounts shall be credited semi-annually with all deemed earnings (or losses) generated by the
Valuation Funds, as if the designated balance of the Account had been invested in the applicable
Valuation Fund.

     5.3. Valuation of Accounts. The value of a Participant’s Accounts as of any date
shall equal the amounts theretofore credited to such Accounts, including any earnings (positive or
negative) deemed to be earned on such Account in accordance with Section 5.2, less the amounts
theretofore deducted from such Accounts.

     5.4. Statement of Accounts. The Committee shall provide to each Participant, not less
frequently than semi-annually, a statement in such form as the Committee deems desirable setting
forth the balance standing to the credit of each Participant’s Account(s).

     5.5. Distributions from Accounts. Any distribution made to or on behalf of a
Participant from his or her Accounts in an amount which is less than the entire balance of any such
Account shall be made pro rata from each of the Valuation Funds to which such Account is then
allocated on the day before distribution under the Plan.

     5.6. Vesting. A Participant’s Account balances shall be vested in accordance with
Section 4.2.

ARTICLE VI

Benefits to Participants

     6.1. Benefits from an Account. Benefits from a Participant’s Account shall be paid to
the Participant as follows:

          (a) Upon a Participant’s Separation from Service, the Participant’s vested Account shall be
distributed in a lump sum within thirty (30) business days following the Participant’s Separation
Date. Any lump-sum benefit payable in accordance with this Section shall be in an amount equal to
the value of such vested Account as of the business day the Valuation Funds are deemed to be
liquidated to make the payment. Any unvested portion of the Participant’s Account shall be
forfeited.

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          (b) Upon the death of a Participant prior to the commencement of benefits under this Plan from
any particular Account, the Participant’s designated Beneficiary shall be treated as a Participant
under Section 6.1(a) with the distribution to be made to such Beneficiary.

     6.2. Change of Control. In the event of a Change of Control and with respect to the
portion of the Participant’s Account attributable to amounts that were earned and vested as of
December 31, 2004 only, the Participant may elect, within 60 days after the Change of Control, to
receive the full value then credited to the Participant’s Account. If a Participant elects to be
paid a benefit under this Section 6.2, the lump sum payment due to the Participant (or Beneficiary,
in the event of the Participant’s death) under this Section 6.2 shall be made no later than the end
of the calendar year in which the Change in Control occurred. With respect to amounts that were
not earned and vested as of December 31, 2004 or amounts credited to the Participant’s Account
after December 31, 2004, a Participant shall be permitted to elect, in accordance with the
applicable requirements of Section 409A of the Code, whether distribution of the Participant’s
Account will be made upon a Change of Control. If a Participant elects to receive a distribution
upon a Change of Control pursuant to the preceding sentence, distribution shall be made in a lump
sum no later than the end of the calendar year in which the Change in Control occurred.

     6.3. Unforeseeable Financial Emergency. In the event that the Committee, upon written
request of a Participant, determines that the Participant has suffered an unforeseeable financial
emergency, the Company shall pay to the Participant from the Participant’s vested Account(s), as
soon as practicable following such determination, an amount necessary to meet the emergency (the
“Emergency Benefit”), after deduction of any and all taxes as may be required pursuant to Section
6.5. For purposes of this Plan, an unforeseeable financial emergency is an unexpected need for
cash arising from an illness, casualty loss, sudden financial reversal, or other such unforeseeable
occurrence. Cash needs arising from foreseeable events such as the purchase of a house or
education expenses for children shall not be considered to be the result of an unforeseeable
financial emergency. With respect to that portion of any vested Account which is distributed to a
Participant as an Emergency Benefit, in accordance with this Article VI, no further benefit shall
be payable to the Participant under this Plan. It is intended that the Committee’s determination
as to whether a Participant has suffered an “unforeseeable financial emergency” shall be made
consistent with the requirements under Section 409A of the Code.

     6.4. Withdrawal of Participation. With respect to the portion of the Participant’s
Account attributable to amounts that were earned and vested as of December 31, 2004 only, the
Participant may elect to cause all or a portion of such amounts to be distributed in accordance
with this Article VI as if the Participant had terminated service with the Company as of the time
of such election, except that the amount distributed to the Participant shall be reduced by a
penalty of ten percent (10%), but not in excess of $50,000. The provisions of this Section 6.4
shall not apply to the portion of the Participant’s Account attributable to amounts credited to the
Participant’s Account after December 31, 2004 or to amounts that were not earned and vested as of
December 31, 2004.

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     6.5. Withholding Taxes. The Company may make such provisions and take such
action as it may deem necessary or appropriate for the withholding of any taxes which the Company
is required by any law or regulation of any governmental authority, whether federal, state or
local, to withhold in connection with any benefits under the Plan, including, but not limited to,
the withholding of appropriate sums from any amount otherwise payable to the Participant (or his or
her Beneficiary). Each Participant, however, shall be responsible for the payment of all
individual tax liabilities relating to any such benefits.

     6.6. Effect of Payment. The full payment of the applicable benefit under this Article
VI shall completely discharge all obligations on the part of the Company to the Participant (and
the Participant’s Beneficiary) with respect to the operation of this Plan, and the Participant’s
(and Participant’s Beneficiary’s) rights under this Plan shall terminate.

     6.7. Key Employees. Notwithstanding any provision of the Plan to the contrary, any
amount payable under the Plan with respect to the portion of the Participant’s Account attributable
to amounts that were not earned and vested as of December 31, 2004, to a Participant who is
determined to be a key employee under Section 416(i) of the Code shall be postponed to a date that
is not less than six (6) months following the Participant’s Separation from Service with the
Company.

     6.8. Permissible Distribution Event. Notwithstanding any provision of the Plan to the
contrary, distributions from the Plan shall only be made upon an event and in a manner permitted by
Section 409A of the Code and the regulations thereunder.

ARTICLE VII

Claims Procedures

     7.1. Claim. A Participant who believes that he or she is being denied a benefit to
which he or she is entitled under the Plan may file a written request for such benefit with the
Committee, setting forth the claim.

     7.2. Claim Decision. Upon receipt of a claim, the Committee shall advise the
Participant that a reply will be forthcoming within 90 days and shall, in fact, deliver such reply
within such period. The Committee may, however, extend the reply period for an additional 90 days
for reasonable cause.

          (a) If the claim is denied in whole or in part, the Participant shall be provided a written
opinion, using language calculated to be understood by the Participant, setting forth:

               (i) the specific reason or reasons for such denial;

               (ii) the specific reference to relevant provisions of this Plan on which such denial is based;

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               (iii) a description of any additional material or information necessary for the Participant to
perfect his or her claim and an explanation why such material or such information is necessary;

               (iv) appropriate information as to the steps to be taken if the Participant wishes to submit
the claim for review;

               (v) the time limits for requesting a review under Section 7.3 and for review under Section 7.4
hereof; and

               (vi) the Participant’s right to bring an action for benefits under Section 502 of ERISA.

     7.3. Request for Review. Within 60 days after the receipt by the Participant of the
written opinion described above, the Participant may request in writing that the Committee review
the determination of the Committee. The Participant or his or her duly authorized representative
may, but need not, review the relevant documents and submit issues and comment in writing for
consideration by the Committee. If the Participant does not request a review of the initial
determination within such 60-day period, the Participant shall be barred and stopped from
challenging the determination.

     7.4. Review of Decision. After considering all materials presented by the
Participant, the Committee will render a written opinion, setting forth the specific reasons for
the decision and containing specific references to the relevant provisions of this Plan on which
the decision is based. The Committee shall within 30 days of receipt of the Participant’s request
for review shall schedule a meeting to review the Participant’s request.

ARTICLE VIII

Miscellaneous

     8.1. Protective Provisions. Each Participant and Beneficiary shall cooperate with the
Committee by furnishing any and all information requested by the Committee in order to facilitate
the payment of benefits hereunder. If a Participant or Beneficiary refuses to cooperate with the
Committee, the Company shall have no further obligation to the Participant or Beneficiary under the
Plan, other than payment of the then-current balance of the Participant’s Accounts in accordance
with prior elections.

     8.2. Inability to Locate Participant or Beneficiary. In the event that the Committee
is unable to locate a Participant or Beneficiary within two years following the date the
Participant was to commence receiving payment, the entire amount allocated to the Participant’s
Accounts shall be forfeited. If, after such forfeiture, the Participant or Beneficiary later
claims such benefit, such benefit shall be reinstated without interest or earnings from the date
payment was to commence pursuant to Article VI.

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     8.3. Designation of Beneficiary. Each Participant may designate in writing a
Beneficiary or Beneficiaries (which Beneficiary may be an entity other than a natural person) to
receive any payments which may be made following the Participant’s death. No Beneficiary
designation shall become effective until it is in writing and it is filed with the Committee. Such
designation may be changed or canceled by the Participant at any time without the consent of any
such Beneficiary. Any such designation, change or cancellation must be made in a form approved by
the Committee and shall not be effective until received by the Committee, or its designee. A
Beneficiary designation under the Plan may be separate from all other retirement-type plans
sponsored by the Company. If a Participant designates more than one Beneficiary, the interests of
such Beneficiaries shall be paid in equal shares, unless the Participant has specifically
designated otherwise. If there is no Beneficiary designation in effect, or if there is no
surviving designated Beneficiary, then the Participant’s surviving spouse shall be the Beneficiary.
If there is no surviving spouse to receive any benefits payable in accordance with the preceding
sentence, the duly appointed and currently acting personal representative of the participant’s
estate (which shall include either the Participant’s probate estate or living trust) shall be the
Beneficiary. In any case where there is no such personal representative of the Participant’s
estate duly appointed and acting in that capacity within 90 days after the Participant’s death (or
such extended period as the Committee determines is reasonably necessary to allow such personal
representative to be appointed, but not to exceed 180 days after the Participant’s death), then
Beneficiary shall mean the person or persons who can verify by affidavit or court order to the
satisfaction of the Committee that they are legally entitled to receive the benefits specified
hereunder. In the event any amount is payable under the Plan to a minor, payment shall not be made
to the minor, but instead be paid (i) to that person’s living parent(s) to act as custodian, (ii)
if that person’s parents are then divorced, and one parent is the sole custodial parent, to such
custodial parent, or (iii) if no parent of that person is then living, to a custodian selected by
the Committee to hold the funds for the minor under the Uniform Transfers or Gifts to Minors Act in
effect in the jurisdiction in which the minor resides. If no parent is living and the Committee
decides not to select another custodian to hold the funds for the minor, then payment shall be made
to the duly appointed and currently acting guardian of the estate for the minor or, if no guardian
of the estate for the minor is duly appointed and currently acting within 60 days after the date
the amount becomes payable, payment shall be deposited with the court having jurisdiction over the
estate of the minor.

     8.4. No Contract of Employment. Neither the establishment of the Plan, nor any
modification thereof, nor the creation of any fund, trust or account, nor the payment of any
benefits shall be construed as giving any Participant or any person whosoever, the right to be
retained in the service of the Company, and all Participants and other employees shall remain
subject to discharge to the same extent as if the Plan had never been adopted.

     8.5. No Limitation on Company Actions. Nothing contained in the Plan shall be
construed to prevent the Company from taking any action which is deemed by it to be appropriate or
in its best interest. No Participant, Beneficiary, or other person shall have any claim against
the Company as a result of such action.

     8.6. Obligations to Company. If a Participant becomes entitled to a distribution of
benefits under the Plan, and if at such time the Participant has outstanding any debt, obligation,
or other liability representing an amount owing to the Company, then the Company may offset

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such amount owed to it against the amount of benefits otherwise distributable. Such determination
shall be made by the Committee.

     8.7. Nonalienation of Benefits. The Company shall pay all amounts payable hereunder
only to the person or persons designated by the Plan and not to any other person or corporation.
No part of a Participant’s Accounts shall be liable for the debts, contracts, or engagements of any
Participant, his or her Beneficiary, or successors in interest, nor shall a Participant’s Accounts
be subject to execution by levy, attachment, or garnishment or by any other legal or equitable
proceeding, nor shall any such person have any right to alienate, anticipate, commute, pledge,
encumber, or assign any benefits or payments hereunder in any manner whatsoever. If any
Participant, Beneficiary or successor in interest is adjudicated bankrupt or purports to
anticipate, alienate, sell, transfer, assign, pledge, encumber or charge any distribution or
payment from the Plan, voluntarily or involuntarily, the Committee, in its discretion, may cancel
such distribution or payment (or any part thereof) to or for the benefit of such Participant,
Beneficiary or successor in interest in such mariner as the Committee shall direct. The Company’s
obligations under this Plan are not assignable or transferable except to (a) any corporation or
partnership which acquires all or substantially all of the Company’s assets or (b) any corporation
or partnership into which the Company may be merged or consolidated. The provisions of the Plan
shall inure to the benefit of each Participant and the Participant’s Beneficiaries, heirs,
executors, administrators or successors in interest.

     8.8. Unfunded Status of Plan. The Plan is intended to constitute an “unfunded”
deferred compensation plan for Participants. Nothing contained in the Plan, and no action taken
pursuant to the Plan, shall create or be construed to create a trust of any kind. The Company
shall reflect in Accounts on its books the Participants’ interests hereunder, but no Participant or
any other person shall under any circumstances acquire any property interest in any specific assets
of the Company. Nothing contained in this Plan and no action taken pursuant hereto shall create or
be construed to create a fiduciary relationship between the Company and any Participant or other
person. A Participant’s right to receive payments under the Plan shall be no greater than the
right of an unsecured general creditor of the Company. Except to the extent that the Board
determines that a “rabbi” trust may be established in connection with the Plan, all payments shall
be made from the general funds of the Company, and no special or separate fund shall be established
and no segregation of assets shall be made to assure payment.

     8.9. Severability of Provisions. If any provision of this Plan shall be held invalid
or unenforceable, such invalidity or unenforceability shall not affect any other provisions hereof,
and this Plan shall be construed and enforced as if such provisions had not been included.

     8.10. Governing Law. This Plan shall be construed in accordance with and governed by
the laws of the Commonwealth of Pennsylvania to the extent not superseded by federal law, without
reference to the principles of conflict of laws.

     8.11. Headings and Captions. The headings and captions herein are provided for
reference and convenience only, shall not be considered part of the Plan, and shall not be employed
in the construction of the Plan.

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     8.12. Gender, Singular and Plural. All pronouns and any variations thereof shall be
deemed to refer to the masculine, feminine, or neuter, as the identity of the person or persons may
require. As the context may require, the singular may read as the plural and the plural as the
singular.

     8.13. Notice. Any notice or filing required or permitted to be given to the Committee
under the Plan shall be sufficient if in writing and hand delivered, or sent by registered or
certified mail, to the Company’s Chief Financial Officer, or to such other person or entity as the
Committee may designate from time to time. Such notice shall be deemed given as to the date of
delivery, or, if delivery is made by mail, as of the date shown on the postmark on the receipt for
registration or certification.

     8.14. Amendment and Termination. The Plan may be amended, suspended, or terminated at
any time by the Board as may be necessary to avoid current taxation of amounts deferred under the
Plan or to comply with applicable law; provided, however, that no such amendment, suspension or
termination shall reduce or in any manner adversely effect the rights of any Participant with
respect to benefits that are payable or may become payable under the Plan. In addition, the Board
may, in its sole discretion, amend the Plan to comply with applicable law without the consent of
any Participant and without regard to any effect such amendments may have on any participant.

     8.15. Section 409A. The Plan is intended to comply with the applicable requirements
of Section 409A of the Code, and shall be administered in accordance with Section 409A to the
extent Section 409A applies to the Plan. To the extent that any provision of the Plan would cause
a conflict with the requirements of Section 409A of the Code, or would cause the administration of
the Plan to fail to satisfy the requirements of Section 409A, such provision shall be deemed null
and void to the extent permitted by applicable law.

11exv10w28w9

 

EXHIBIT 10.28.9

SIXTH AMENDMENT

TO

LOAN DOCUMENTS

This Sixth Amendment to Loan Documents (the “Amendment”) is entered into as of June 30, 2005, by
and between COMERICA BANK (“Bank”) and ALLIANCE CONSULTING GROUP ASSOCIATES, INC. and ALLIANCE
HOLDINGS, INC. (individually, a “Borrower” and collectively, the “Borrowers”).

RECITALS

     Borrowers and Bank are parties to that certain Loan and Security Agreement dated as of
September 25, 2003 (as amended from time to time, including without limitation by that certain
First Amendment to Loan and Security Agreement dated as of December 12, 2003, that certain Second
Amendment to Loan and Security Agreement dated as of May 27, 2004, that certain Third Amendment to
Loan Documents dated as of August 9, 2004, that certain Fourth Amendment to Loan Documents dated as
of September 30, 2004, and that certain Fifth
Amendment to Loan Documents dated as of March 11, 2005, together with any related agreements,
the “Agreement”). Hereinafter, all indebtedness owing by Borrowers to Bank shall be referred to as
the “Indebtedness.” The parties desire to amend the Agreement in accordance with the terms of this
Amendment.

     NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties agree as follows:

AGREEMENT

	I.	 	Incorporation by Reference. The Recitals and the documents referred to therein are
incorporated herein by this reference. Except as otherwise noted, the terms not defined
herein shall have the meaning set forth in the Agreement.

	II.	 	Amendment to the Agreement. Subject to the satisfaction of the conditions precedent
as set forth in Article IV hereof, the Agreement is hereby amended as set forth below.

	 	A.	 	The reference in Section 2.1(c)(i) of the Agreement to
“$1,400,000” is hereby amended to read “$1,565,000”.
	 
	 	B.	 	Bank’s addresses for notices set forth in Section 10 of the Agreement are
hereby amended in their entirety to read as follows:

	 	 	 	 	 
	 

	 	“If to Bank:
	 	Comerica Bank
	 

	 	 	 	2321 Rosecrans Ave., Suite 5000
	 

	 	 	 	El Segundo, CA 90245
	 

	 	 	 	Attn: Manager
	 

	 	 	 	FAX: (310) 297-2290
	 
	 	 	 	 
	 

	 	With a copy to:
	 	Comerica Bank
	 

	 	 	 	11921 Freedom Drive, Suite 920
	 

	 	 	 	Reston, VA 20190
	 

	 	 	 	Attn: Elizabeth Kinsey
	 

	 	 	 	FAX: (703) 467-9308”

 

 

	III.	 	Legal Effect.

	 	A.	 	The Agreement is hereby amended wherever necessary to reflect the changes
described above. Borrower agrees that it has no defenses against the obligations to pay
any amounts under the Indebtedness.
	 
	 	B.	 	Borrower understands and agrees that in modifying the existing Indebtedness,
Bank is relying upon Borrower’s representations, warranties, and agreements, as set
forth in
the Agreement. Except as expressly modified pursuant to this Amendment, the terms of
the Agreement remain unchanged, and in full force and effect. Bank’s agreement to
modifications to the existing Indebtedness pursuant to this Amendment in no way shall
obligate Bank to make any future modifications to the Indebtedness. Nothing in this
Amendment shall constitute a satisfaction of the Indebtedness. It is the intention of
Bank and Borrower to retain as liable parties, all makers and endorsers of Agreement,
unless the party is expressly released by Bank in writing. No maker, endorser, or
guarantor will be released by virtue of this Amendment. The terms of this paragraph
apply not only to this Amendment, but also to all subsequent loan modification requests.
	 
	 	C.	 	This Amendment may be executed in two or more counterparts, each of which shall
be deemed an original, but all of which together shall constitute one instrument. This
is an integrated Amendment and supersedes all prior negotiations and agreements
regarding the subject matter hereof. All modifications hereto must be in writing and
signed by the parties.

	IV.	 	Conditions Precedent. Except as specifically set forth in this Amendment, all of
the terms and conditions of the Agreement remain in full force and effect. The effectiveness
of this Agreement is conditioned upon receipt by Bank of this Amendment, and any other
documents which Bank may require to carry out the terms hereof, including but not limited to
the following:

	 	A.	 	This Amendment, duly executed by Borrower; and
	 
	 	B.	 	Such other documents, and completion of such other matters, as Bank may
reasonably deem necessary or appropriate.

IN WITNESS WHEREOF, the undersigned have executed this Amendment as of the first date above
written.

	 	 	 	 	 	 	 	 	 
	ALLIANCE CONSULTING GROUP	 	 	 	COMERICA BANK
	ASSOCIATES, INC.	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ James Dandy
	 	 	 	By:
	 	/s/ Brian Anderson
	 

	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Title:

	 	VP of Finance
	 	 	 	Title:
	 	Assistant Vice President
	 

	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	ALLIANCE HOLDINGS, INC.	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ James Dandy	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Title:

	 	VP of Finance

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