Document:

EMPLOYMENT AGREEMENT

        THIS EMPLOYMENT AGREEMENT ("Agreement") is made and entered into as of
November 18, 2004, by and between CDMI Productions, Inc., a corporation
organized and existing under the laws of the State of New York (hereinafter
"Employer"), and Mathew Crouch, an individual resident of the State of
California (hereinafter "Employee");

                              W I T N E S S E T H:

        WHEREAS, Employer has offered to Employee, subject to the terms and
conditions of this Agreement, employment in the position of Chief Executive
Officer and Employee has agreed to accept such employment pursuant to the terms
and conditions hereof.

        WHEREAS, Employer would not offer such employment unless Employee shall
have executed and delivered this Employment Agreement and agreed to the
non-competition, confidentiality, and other covenants contained herein; and

        NOW, THEREFORE, in consideration of the promises and obligations of
Employer and Employee under this Agreement, and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
Employer and Employee hereby agree as follows:

                                   ARTICLE I
                               SCOPE OF EMPLOYMENT

        1.1 POSITION AND DUTIES. Employee agrees to provide services to Employer
as its Chief Executive Officer, subject to the terms and conditions of this
Agreement. Employee shall have the duties and responsibilities normally
attendant to such office, with such limitations thereon or additions thereto as
may be reasonably prescribed from time to time by the Board of Directors of
Employer (hereinafter the "Board"). During the Term of Employment (as defined
below), Employee shall devote substantially all of his working time, attention
and efforts to the business of Employer.

        1.2 BOARD OF DIRECTORS. The Board of Employer has taken all action
necessary to cause Employee, upon execution of this Agreement, to become a
director of Employer and Chairman of Employer's Board.

        1.3 OTHER AFFAIRS. Notwithstanding anything to the contrary, nothing
herein shall preclude Employee from engaging in charitable and community affairs
and managing his personal investments, provided that such activities do not
unreasonably interfere with the performance of his duties or responsibilities
hereunder, and provided that Employee shall not engage in any activities in
violation of Articles 7 or 8 of this Agreement. Employee may also serve as a
member of the board of directors of other companies, subject to the approval of
the Board, which approval shall not be unreasonably withheld, including, but not
limited to, Gener8Xion Entertainment, Inc., a California corporation, and
Trinity Broadcast Network.

                                   ARTICLE II
                         BASE COMPENSATION AND BENEFITS

        2.1 BASE SALARY. Employer agrees to pay Employee, for services rendered
hereunder in his capacity as Chief Executive Officer, salary at the annual rate
of Three Hundred Fifty Thousand Dollars ($350,000). The salary shall be payable
in equal periodic installments, not less frequently than monthly, less any sums
which may be required to be deducted or withheld under the provisions of law.
Salary may be adjusted upward at the discretion of Employer's Board, based upon
Employee's performance and Employer's financial circumstances including, but not
limited to, the earnings per share. As referred to hereinafter, "Salary" means
the compensation described in this Section 2.1.

        2.2 EXPENSES. Employee is expected from time to time to incur reasonable
and necessary expenses for promoting the business of Employer, including
expenses for entertainment, travel, and other activities associated with
Employee's duties. Employee shall be entitled to be reimbursed, in accordance
with the policies of Employer as adopted and amended by the Board from time to
time, for all such reasonable and necessary expenses incurred by Employee in
connection with the performance of his duties of employment hereunder; provided
Employee shall, as a condition of such reimbursement, submit verification of the
nature and amount of such expenses in accordance with the reimbursement policies
from time to time adopted by the Board.

        2.3 EMPLOYEE BENEFITS(a) . Employee may participate with and in the same
manner as other executive and managerial employees of Employer in all fringe
benefit programs applicable to executives ("Employee Benefits") generally which
may be authorized and adopted in advance from time to time by the Board;
currently they include; a family healthcare plan with a dental plan and life
insurance, a self directed SARSEP Retirement Plan, and four (4) weeks paid
vacation.

        2.4 BONUSES. Employee will be eligible for the following incremental
bonuses:

            (a) a bonus of Fifty Thousand Dollars ($50,000.00) to be paid upon
completion and release of the film production entitled "One Night With The
King;"

            (b) a bonus of Fifty Thousand Dollars ($50,000.00) to be paid upon
completion and release of the film production entitled "Prodigal Son" or such
other production as may be mutually agreed upon between Employer and Employee.

If the term of this Agreement is renewed beyond November 30, 2005, the Board of
Employer will adopt new arrangements providing Employee with the opportunity to
earn bonuses at least comparable to the bonuses initially provided in this
Section 2.4

                                  ARTICLE III
                       EQUITY GRANTS AND RESTRICTED STOCK

 3.1 STOCK OPTIONS. Contemporaneously with the execution of this Agreement, the
Board of Directors of the Company has agreed to implement a Stock Option Plan
for its officers, directors, employees and consultants. Employee shall be
entitled to receive an equity grant on

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terms at least as favorable to any such grant to any other person during the
term of this Agreement.

        Employee is hereby granted Six Million One Hundred Sixty Thousand
(6,160,000) shares of Common Stock, $0.01 par value, of Employer as "Restricted
Stock."

        3.3 INCOME TAX PROVISIONS.

            (a) Employer and Employee have agreed that the fair market value of
the Restricted Stock granted under Section 3.2 is $0.03 per share.

            (b) Upon the issuance of Restricted Stock pursuant to Section 3.2,
the Employer shall pay to Employee a payment (the "Gross-Up Payment") that is an
amount that, when added to the fair market value of the shares of Restricted
Stock as determined under paragraph (a) of this Section 3.3 (the "Base Amount"),
puts the Employee in the same position, net of taxes, as if the Base Amount was
not subject to federal or state income or employment taxes. The Gross-Up Payment
shall be computed in accordance with the formula set forth in Section 3.3(c),
and shall be payable, in cash, within ten (10) days of the date of grant of the
Restricted Stock.

            (c)  The Gross-Up Payment shall be computed as follows:

                 Gross-Up Payment = A * B/(1 - B)

                 where:

                 A = the Base Amount

                 B = the Combined Compensation Tax Rate

            (d) For purposes of this Agreement, the term "Combined Compensation
Tax Rate" shall be the combined effective state and federal tax rate on Employee
that would applicable to the sum of the Base Amount and the Gross-Up Payment.
The parties acknowledge and agree that the Combined Compensation Tax Rate for
2003 is 48.65%, consisting of the sum of the following: (i) the federal 1.45%
Medicare tax, (ii) the federal 6.2% Social Security tax, the applicable federal
tax rate for 2004 of 35%, and the applicable state tax rate for 2004 of __%.

            (e) Notwithstanding anything else in this Agreement to the contrary,
Employer shall be liable for the employer-level portion of the federal Medicare
and Social Security taxes, if any, attributable to the Restricted Stock or the
Gross-Up Payment.

                                   ARTICLE IV
                                      TERM

        4.1 TERM. Employee's employment hereunder shall commence on November 18,
2004 and shall continue through November 18, 2011 unless sooner terminated due
to:

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            (a) Employee's death;

            (b) Employee's Disability as described in Section 5.1;

            (c) termination of Employee's employment by Employer for "Cause" as
described in Section 5.5;

            (d) termination of employment by Employee as described in Section
5.6; or

            (e) termination of Employee's employment by Employer for reasons
other than "Cause" as described in Section 5.7.

Effective November 18, 2011, the term of this Agreement shall automatically
renew for successive one (1)-year terms unless Employer or Employee shall notify
the other party in writing at least 60 days before the first day of the next
renewal term of such party's election not to renew this Agreement for another
renewal term.

                                   ARTICLE V
                              EVENTS OF TERMINATION

        5.1 TERMINATION OF EMPLOYMENT DUE TO DISABILITY. If, during the Term of
Employee's employment hereunder, the Board of Employer shall determine that
Employee shall be prevented from effectively performing all his duties hereunder
by reason of illness or disability, confirmed by a physician mutually acceptable
to Employee and Employer, and such failure so to perform shall have continued
for a period of not less than six (6) consecutive months, then Employer may, by
written notice to Employee, terminate Employee's employment hereunder effective
at any time after such consecutive six (6) month period. Upon delivery to
Employee of such notice, together with payment of any salary or other
compensation accrued and unpaid under Sections 2.1 and 2.4 hereof, Employee's
employment and all obligations of Employer under Article I hereof (except any
obligation for vested benefits) shall forthwith terminate.

        5.2 TERMINATION FOR CAUSE. Employee may be terminated at any time by
Employer for "Cause" as follows: (i) Employee's material violation of the
covenants set forth in Section 6 or 7; (ii) Employee's willful, intentional, or
grossly negligent failure to perform his duties under this Agreement diligently
and in accordance with the directions of Employer; (iii) Employee's willful,
intentional, or grossly negligent failure to comply with the reasonable and good
faith decisions or policies of Employer; or (iv) final conviction of Employee of
a felony resulting in imprisonment; provided, however, that in the event
Employer desires to terminate Employee's employment pursuant to subsections (i),
(ii), or (iii) of this Section 5.2, Employer shall first give Employee written
notice of such intent, detailed and specific description of the reasons and
basis therefore, and thirty (30) days to remedy or cure such perceived breaches
or deficiencies (the "Cure Period"); provided, however, that with respect only
to a breach that is not possible to cure within such thirty (30) day period, so
long as Employee is diligently using his best efforts to cure such breaches or
deficiencies within such period and thereafter, the Cure Period shall be
automatically extended for an additional period of time (not to exceed sixty
(60) additional days) to enable Employee to cure such breaches or deficiencies,
provided, further, that Employee continues to diligently use his best efforts to
cure such breaches or deficiencies. If Employee

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does not cure the perceived breaches or deficiencies within the Cure Period,
Employer may discharge Employee immediately upon written notice to Employee. If
Employer desires to terminate Employee's employment pursuant to subsection (iv)
of this Section 5.2, Employer shall first give Employee three (3) days' prior
written notice of such intent.

        5.3 TERMINATION BY EMPLOYEE.

            (a) Employee may terminate this Agreement, at any time, by giving at
least 30 days' written notice to Employer's Board of his intention to terminate
his employment. Such termination shall become effective upon expiration of the
thirty (30) day period.

            (b) In the event Employee has terminated his employment with
Employer because there has been: (i) a material downgrading in Employee's duties
or responsibilities for Employer, (ii) a change in Employer's principal place of
business to a location not within twenty-five (25) miles of its present
location, (iii) any significant and prolonged increase in the traveling
requirements applicable to the discharge of Employee's responsibilities, (iv)
any breach by Employer of its duties or obligations pursuant to this Agreement
which has not been cured within thirty (30) days after notice of such breach,
(v) any Change in Control (as defined herein), (vi) an adverse change in any
material term or provision of this Agreement requested by Employer as a
condition to any renewal or extension of this Agreement, or (vii) any other
significant material adverse change in working conditions or responsibilities,
Employee shall be entitled to the compensation provided for in Section 5.5 upon
such termination. Notwithstanding the foregoing, Employee acknowledges that the
Company is currently unable to timely pay Employee's Salary due to the current
financial condition of the Company, and agrees that the inability of the Company
to timely pay Employee's Salary due to the Company's current financial condition
shall not be a breach of this Employment Agreement by the Company; provided
that, the foregoing shall not relieve the Company of its obligation to pay the
Salary and such Salary shall accrue so long as it remains unpaid.

            (c) For purposes of this Agreement, "Change in Control" shall mean
any of the following: (a) any consolidation or merger of Employer in which
Employer is not the continuing or surviving corporation or pursuant to which the
voting stock of Employer would be converted into cash, securities or other
property, other than a merger of Employer in which the holders of the voting
stock immediately prior to the merger own or control an aggregate of 50% of the
voting power of the outstanding voting securities of the surviving entity
immediately after the consolidation or merger; (b) any sale, lease, exchange or
other transfer (in one transaction or a series of related transactions) of all
or substantially all of the assets of Employer; (c) the stockholders of Employer
approve any plan or proposal for the liquidation or dissolution of Employer, (d)
the cessation of control (by virtue of their not constituting a majority of
directors) of the Board of Employer by the individuals (the "Continuing
Directors") who (i) at the date of this Agreement were directors or (ii) become
directors after the date of this Agreement and whose election or nomination for
election by Employer's stockholders, was approved by a vote of a majority of the
directors then in office who were directors at the date of this Agreement (or
whose election or nomination for election was previously so approved); (e) the
acquisition of beneficial ownership (within the meaning of Rule 13d-3 under the
Securities Exchange Act of 1934, as amended (the "1934 Act")) of an aggregate of
50% of the voting power of Employer's outstanding voting securities by any
person or group (as such term is used in Rule 13d-5 under

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the 1934 Act) who beneficially owned less than 20% of the voting power of
Employer's outstanding voting securities on the date of this Agreement; or (f)
in a Title II bankruptcy proceeding, the appointment of a trustee or the
conversion of a case involving Employer to a case under Chapter 7.

        5.4 NOT FOR "CAUSE" TERMINATION BY EMPLOYER. Employer may terminate this
Agreement, effective at any time, by giving at least sixty (60) days' written
notice to Employee. After written notice of termination and until the effective
date of termination, Employer shall have the right to remove Employee from
office and to modify or eliminate Employee's powers or duties in any manner
deemed in the Board's discretion to be in the best interests of Employer.

        5.5 SEVERANCE PAY. In the event of a termination of this Agreement
pursuant to Section  5.3(b) or Section 5.4,  Employer  shall pay Employee on the
effective  date of such  termination  a  severance  payment in cash in an amount
equal to:

            (a) if the effective date of the termination occurs on or before
            November 18, 2008, one twelfth (1/12) of Employee's then current
            annual base salary multiplied by the number of full months between
            the effective date of such termination and November 18, 2011; and

            (b) if the effective date of the termination occurs after November
            18, 2008, an amount equal to three (3) times Employee's then current
            annual base salary under this Agreement.

        5.6 EFFECT OF TERMINATION.

            (a) Regardless of the reasons for termination of Employee's
employment hereunder, Employer shall pay Employee his Salary through the date
termination becomes final, either by written notice of termination from the
Board or the end of the contract term, and shall continue Employee Benefits then
in effect through the date of such termination and for any period during which
Employee is subject to the restrictions set forth in Sections 7 and 8 of this
Agreement. Unless otherwise provided herein, all Salary, and other compensation
shall cease at the date of termination, and all Employee Benefits shall cease
upon termination of such restrictions.

            (b) In the event of the scheduled expiration of this Agreement as
described in Section 4.1, all payments of Salary, and other compensation, and
all Employee Benefits, other than Salary and Benefits earned but not paid as of
such date, shall cease as of such date.

            (c) In the event of termination of this Agreement because of
Employee's Disability as described in Section 5.1, Employer shall pay Employee
his Salary and Employee Benefits in accordance with Employer's disability plans
and policies generally applicable to Employer's management personnel.

            (d) Upon termination of the employment of Employee for Cause
pursuant to Section 5.6, all payments of Salary, and other compensation and all
Employee Benefits shall cease as of the date of termination.

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            (e) At the time of termination, Employee's vested benefits, if any,
shall be administered in accordance with the various benefit plans in which he
participated and in accordance with all applicable laws, including the Employee
Retirement Income Security Act (ERISA) and the Consolidated Omnibus Budget
Reconciliation Act of 1985 (COBRA).

        5.7 SURVIVAL. The covenants and obligations of Employee described in
Articles 6, 7, and 8 and Section 9.1 hereof shall survive any termination or
expiration of this Agreement for any reason and shall not be extinguished
thereby.

        5.8 COOPERATION. Following any termination, Employee shall fully
cooperate with Employer in all matters relating to the handing over of his
pending work to other employees of Employer as may be designated by the Board.

        5.9 INTELLECTUAL PROPERTY. Upon termination of this Agreement for any
reason, Employee shall have no right or license to use Employer's, or any
Affiliate thereof, company or corporate names, trademarks, trade names, service
marks, or other property rights (or other names or marks confusingly similar to
any of the foregoing), all of which shall remain the sole and exclusive property
of Employer.

                                   ARTICLE VI
                                 NON-COMPETITION

        6.1 NON-COMPETITION. Employee agrees and covenants with Employer that
until the later of November 30, 2012 or for a period of twelve (12) months from
and after Employee's termination of employment with Employer (regardless of the
reason for termination):

            (a) Employee will not, directly or indirectly, divert, solicit, or
pirate for any commercial enterprise engaged in the "Same Business" as Employer,
as defined below, any customer, supplier, or licensor of Employer for whom
services were performed or from whom materials or rights were provided, and with
whom Employee had personal contact during the last two (2) years of Employee's
employment with Employer;

            (b) Employee will not, directly or indirectly, persuade or attempt
to persuade any person who (i) was employed by Employer as of the date of the
termination of Employee's employment with Employer and (ii) is in a sales or
management position with Employer at the time of such contact, to terminate or
modify his employment relationship, whether or not pursuant to a written
agreement, with Employer;

            (c) Employee will not, either directly or indirectly, on Employee's
behalf, or on behalf of others, render or be retained to render services in the
United States of America or its territories or possessions, for any commercial
enterprise engaged in the "Same Business" as Employer, including any customer,
supplier, or licensor of Employer for whom Employee has provided services or had
contact during the last two (2) years of Employee's employment with Employer.
For purposes of Article 6, the Same Business means: production and distribution
of films including theatrical productions having a cost of under $100,000 to
produce.

        6.2 DEFINITION OF TERM "DIRECTLY OR INDIRECTLY". The words "directly or
indirectly" as used in Section 6.1(c) and Article 7 shall mean:

                                       7

            (a) Acting as an agent, representative, consultant, officer,
director, trustee, independent contractor, or employee of any entity or
enterprise which is engaged in the Same Business (as defined in Section 6.1
hereof) as Employer;

            (b) Participating in any such Same Business as an owner, partner,
limited partner, joint venturer, creditor, or stockholder (except as a
stockholder holding less than a l% interest in a corporation whose shares are
actively traded on a regional or national securities exchange or in an
over-the-counter market); and

            (c) Communicating to any such Same Business the names or addresses
or any other information concerning any past, present, or identified (during
Employee's employment with Employer) prospective client, customer, supplier, or
licensor of Employer or of any entity having title to the goodwill of Employer
with respect to the Same Business.

                                  ARTICLE VII
                            CONFIDENTIAL INFORMATION

        7.1 NONDISCLOSURE. Employee recognizes that confidential information is
a valuable asset of Employer and its Affiliates, which own sole and exclusive
right, title, and interest in and to such "Confidential Information." Employee
agrees and covenants that during the period of Employee's employment, and until
the later of November 30, 2012 or twelve (12) months after Employee's
termination of employment with Employer (regardless of the reason for
termination), that:

            (a) Employee will not publish or disclose, or make accessible to any
third party, either directly or indirectly, any confidential information of
Employer. "Confidential Information" means all customer lists, sales and
marketing information, customer account records, supplier lists, training and
operational materials, licensor lists, memoranda and manuals, personnel records
and manuals, pricing information, and financial information concerning or
relating to the business, accounts, customers, licensors, employees, suppliers,
and affairs of Employer or its Affiliates obtained by or furnished, disclosed,
or disseminated by Employer or obtained, assembled, or compiled by Employee or
under Employee's supervision, during the course of Employee's employment by
Employer, and all physical embodiments of the foregoing, all of which are hereby
agreed to be the property of and confidential to Employer.

            (b) Employee will not publish or disclose, either directly or
indirectly, any confidential information of any of Employer's customers,
clients, suppliers, or licensors. Complete confidentiality of customer, client,
supplier, and licensor information is vital to Employer's continued business
success. "Confidential information of a customer, client, supplier, or licensor"
means all of a customer's, client's, supplier's, or licensor's client lists,
sales and marketing information, account records, training and operation
information, interoffice memoranda, personnel records and manuals, pricing and
servicing information, and financial information concerning or relating to the
business, accounts, clients, employees, and affairs of any of Employer's
customers, clients, suppliers, or licensors obtained or furnished to Employee or
under Employee's supervision during the course of his employment with Employer,
and all physical embodiments thereof, all of which are agreed to be the property
of and confidential to Employer's customers, clients, suppliers, and licensors.

                                       8

            (c) Employee agrees that this Confidential Information is a valuable
property of Employer and has been developed over a period of years at great
effort and expense of Employer.

            (d) Upon the termination of his employment, Employee agrees to
return to Employer all Confidential Information in his possession which is
embodied or recorded in tangible form as well as all papers, materials, goods,
samples, products, and other physical objects relating to Employer, whether or
not such papers, materials, or other physical objects contain or embody
Confidential Information. Employee agrees to return to Employer upon termination
all copies made by Employee of documents located in Employer files or elsewhere.

Notwithstanding the foregoing, Employee shall not be subject to the restrictions
set forth in this Section 7.1 with respect to information which:

                   (i) becomes generally available to the public other than as
a result of disclosure by Employee or the breach of Employee's obligations under
this Agreement;

                   (ii) becomes available to Employee from a source which is
unrelated to his employment with Employer or the exercise of his duties under
this Agreement, provided that such source lawfully obtained such information and
is not bound by a confidentiality agreement with Employer; or

                   (iii) is required by law to be disclosed.

        7.2 REMEDIES. Employee understands and agrees the prohibitions against
disclosure of Confidential Information in Section 7.1 above are in addition to,
and not in lieu of, any rights or remedies which Employer may have available
pursuant to the laws of any jurisdiction or at common law to prevent disclosure
of trade secrets or proprietary information, and the enforcement by Employer of
its rights and remedies pursuant to this Agreement should not be construed as a
waiver of any other rights or available remedies which it may possess in law or
in equity absent this Agreement.

                                  ARTICLE VIII
                                EQUITABLE RELIEF

        8.1 ENFORCEMENT. Employee has carefully considered the nature and extent
of the restrictions upon him and the rights and remedies conferred upon Employer
under Articles 6 and 7 hereof. Employee agrees that such terms are reasonable in
duration, territory, and scope, are designed to eliminate actions which
otherwise would be unfair to Employer, will not prohibit him from maintaining a
livelihood, and are fully required to protect the legitimate business interests
of Employer. Employee has had the benefit of legal counsel of his own choosing
to consider the nature and extent of his covenants and obligations under
Articles 6 and 7 hereof.

        8.2 INJUNCTION. Employee acknowledges that Employee's expertise in
Employer's business is of a special, unique, unusual, extraordinary, and
intellectual character, which gives said expertise a peculiar value and that a
breach by Employee of the provisions of Articles 6 or 7 of this Agreement cannot
reasonably or adequately be compensated in damages in an action at law, and a
breach of any of the provisions of Articles 6 or 7 of this Agreement will cause

                                       9

Employer irreparable injury and damage. Employee further acknowledges that
Employee possesses unique skills, knowledge, and ability and that competition in
violation of this Agreement or any other breach of the provisions of this
Agreement would be extremely detrimental to Employer. By reason thereof,
Employee agrees that Employer shall be entitled, in addition to any other
remedies it may have under this Agreement or otherwise, to preliminary and
permanent injunctive and other equitable relief to prevent or curtail any breach
of this Agreement. Employee agrees that no bond or other security shall be
required of Employer in connection with any injunctive proceedings filed by
Employer to enforce Employee's obligations under Articles 6 or 7. No
specification in this Agreement of a specific legal or equitable remedy shall be
construed as a waiver or prohibition against the pursuit of any other legal or
equitable remedies in the event of such a breach.

        8.3 SEVERABILITY. Employee and Employer expressly agree that the
covenants and agreements contained in Articles 6, 7 and 8 hereof are separate,
severable, and divisible, and in the event any portion or portions of such
covenants are declared invalid or unenforceable, the validity of the remaining
covenants set forth herein shall not be affected thereby. If any provision
contained herein shall for any reason be held excessively broad or unreasonable
as to time, territory, or interest to be protected, the court is hereby
empowered and requested to construe said provision by narrowing it, so as to
make it reasonable and enforceable to the extent provided under applicable law.
In any court proceeding concerning the validity or enforceability of such
covenants, Employee agrees to indemnify Employer for its legal fees and costs if
Employer prevails.

                                   ARTICLE IX
                                   ARBITRATION

         Employer and Employee acknowledge and agree that any claim or
controversy arising out of or relating to this Agreement shall be settled by
binding arbitration in Los Angeles, California, in accordance with the National
Rules of the American Arbitration Association for the Resolution of Employment
Disputes in effect on the date of the event giving rise to the claim or
controversy. Employer and Employee further acknowledge and agree that either
party must request arbitration of any claim or controversy within one (1) year
of the date of the event giving rise to the claim or controversy by giving
written notice of the party's request for arbitration. Failure to give notice of
any claim or controversy within one (1) year of the event giving rise to the
claim or controversy shall constitute waiver of the claim or controversy.

         All claims or controversies subject to arbitration pursuant to Section
9(a) above shall be submitted to arbitration within six (6) months from the date
that a written notice of request for arbitration is effective. All claims or
controversies shall be resolved by a panel of three arbitrators who are licensed
to practice law in the State of California and who are experienced in the
arbitration of labor and employment disputes. These arbitrators shall be
selected in accordance with the National Rules of the American Arbitration
Association for the Resolution of Employment Disputes in effect at the time the
claim or controversy arises. Either party may request that the arbitration
proceeding be stenographically recorded by a Certified Shorthand Reporter. The
arbitrators shall issue a written decision with respect to all claims or
controversies within thirty (30) days from the date the claims or controversies
are submitted to arbitration. The parties shall be entitled to be represented by
legal counsel at any arbitration proceedings.

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         Employer  and  Employee  acknowledge  and  agree  that the  arbitration
provisions in this Agreement may be specifically  enforced by either party,  and
that  submission  to  arbitration  proceedings  may be compelled by any court of
competent jurisdiction. Employer and Employee further acknowledge and agree that
the decision of the arbitrators may be specifically  enforced by either party in
any court of competent jurisdiction.

                                   ARTICLE X
                         REPRESENTATIONS AND WARRANTIES

        10.1 EMPLOYEE REPRESENTATIONS. Employee represents and warrants to
Employer as follows:

            (a) Acceptance of employment by Employer hereunder does not violate
and will not violate any contract or arrangement, oral or written, to which
Employee is a party or may be bound and does not or will not result in a breach
by Employee of any covenant of nondisclosure or noncompetition or any other
covenant or agreement owed by Employee to any person, corporation, or legal
entity other than Employer;

            (b) Employee, as of the date of this Agreement, has no investments
in any other company or enterprise as a shareholder, or partner, nor does he
serve as an officer, director, or employee of any other company or enterprise
(except as a shareholder of a corporation described in Section 1.3 hereof); and

            (c) Employee has full power and authority (under all applicable laws
and otherwise) to enter into and perform this Agreement.

        10.2 EMPLOYER REPRESENTATIONS. Employer represents and warrants to
Employee as follows:

            (a) The employment of Employee hereunder by Employer does not
violate and will not violate any contract or arrangement, oral or written, to
which Employer is a party or may be bound and does not or will not result in a
breach by Employer of any covenant of nondisclosure or noncompetition or any
other covenant or agreement owed by Employer to any person, corporation, or
legal entity;

            (b) Employer has full power and authority (under all applicable laws
and otherwise) to enter into and perform this Agreement.

            (c) As of the date of this Agreement, the authorized capital stock
of Employer consists of 50,000,000 shares of Common Stock, $0.001 par value per
share (the "Common Stock"). As of the date hereof, before giving effect to the
transactions contemplated by this Agreement and the Asset Purchase Agreement
between Employee and Ms. Laurie Crouch and Employer, there will be issued and
outstanding 6,358,750 shares of Common Stock, all of which are validly issued
and fully paid and nonassessable, and no shares of preferred stock. Except as
set forth above and on Schedule 10.02 hereto, as of the date hereof, before
giving effect to the transactions contemplated by this Agreement, no Equity
Interests of Employer will be issued or outstanding and there are not, and as of
the date hereof there will not be, any options, agreements, instruments or
securities relating to the issued or unissued Equity Interests of

                                       11

Employer or any subsidiary of Employer, or obligating Employer or any subsidiary
of Employer to issue, transfer, grant or sell any Equity Interests of Employer
or any subsidiary. "Equity Interest" means (a) with respect to a corporation,
any and all issued and outstanding capital stock and warrants, options or other
rights to acquire capital stock and (b) with respect to a partnership, limited
liability company or similar entity, any and all units, interests, or other
equivalents of, or other ownership interests in any such entity and warrants,
options or other rights to acquire any such units or interests.

        10.3 SURVIVAL. The representations and warranties described in Section
10.1 and 10.2 shall survive any expiration or termination of this Agreement.
Employee indemnifies and holds Employer harmless from any and all claims, suits,
demands, or causes of action arising from any breach of the representations and
warranties set forth in Section 10.1. Employer indemnifies and holds Employee
harmless from any and all claims, suits, demands, or causes of action arising
from any breach of the representations and warranties set forth in Section 10.2.

                                   ARTICLE XI
                                  MISCELLANEOUS

        11.1 NO DEFENSES. The existence of any claim, demand, action, or cause
or action by Employee against Employer or any of its Affiliates, whether
predicated upon this Agreement or otherwise, shall not constitute a defense to
the enforcement by Employer of any of its rights hereunder.

        11.2 NOTICES. Any notice required or permitted to be given under this
Agreement shall be given in writing and sent by certified mail, postage prepaid,
return receipt requested, to:

        Employee:                Matthew Crouch, CEO
                                 c/o Gener8Xion Entertainment, Inc.
                                 3400 W. Cahuenga Boulevard
                                 Hollywood, CA  90068

        Employee's Counsel:      Greenberg Traurig, LLP
                                 3290 Northside Parkway, NW, Suite 400
                                 Atlanta, GA  30327
                                 Attention:  Robert E. Altenbach, Esq.

        Employer:                CDMI Productions, Inc.
                                 1125 North Lindero Canyon Road, Suite A-8 #209
                                 Westlake Village, CA  91362
                                 Attention:  John R. Dempsey, Jr., CEO

        Employer's Counsel:      William B. Barnett, Esq.
                                 15233 Ventura Boulevard, Suite 410
                                 Sherman Oaks, CA  91403

        11.3 WAIVER. The waiver by either party hereto of a breach of any
provision of this Agreement by the other party shall not operate or be construed
as a waiver of any subsequent breach by such other party or of any of the
party's rights hereunder.

                                       12

        11.4 ENTIRE AGREEMENT. This Agreement contains the entire agreement
between the parties with respect to the subject matter hereof. It may not be
changed orally, but only by an agreement in writing duly signed by the party
against whom enforcement of any waiver, change, modification, extension, or
discharge is sought. No waiver, amendment, change, modification, renewal,
discharge, or extension shall be effective against Employer unless made in
writing and approved by Employer's Board or Chief Executive Officer. This
Agreement supersedes any prior or contemporaneous discussions, negotiations,
understandings, arrangements, or agreements between Employer and Employee with
respect to the subject matter hereof.

        11.5 GOVERNING LAW. This Agreement and the rights of the parties
hereunder shall be governed by and construed in accordance with the laws of the
State of California.

        11.6 BINDING EFFECT. The covenants, terms, and provisions set forth
herein shall inure to the benefit of and be enforceable by Employer and its
successors, assigns, and successors-in-interest, including, without limitation,
any corporation with which Employer may be merged or by which it may be
acquired. This Agreement is non-assignable and non-delegable, except that (i)
Employer's rights, duties, and obligations under this Agreement may be assigned
to its parent or Affiliates in the event Employer or any such Affiliate is
merged, acquired, sells substantially all of the assets of Employer or transfers
Employer's business to any other entity; provided, however, that no such
assignment shall reduce or limit Employer's obligations or liabilities
hereunder; and (ii) this Agreement shall inure to the benefit of and be
enforceable by Employee's personal and legal representatives, executors,
administrators, successors, heirs, distributes, devisees and legatees. If
Employee should die while any amounts are still payable to him hereunder, all
such amounts, unless otherwise provided herein, shall be paid in accordance with
the terms of this Agreement to Employee's devisee, legatee, or the designee or,
if there be no such designee, to Employee's estate.

        11.7 INDEMNIFICATION. At all times during and after Employee's
employment and the effectiveness of this Agreement, Employer shall indemnify
Employee (as a director, officer, employee and otherwise) to the fullest extent
permitted by law and shall at all times maintain appropriate provisions in its
Certificate of Incorporation and Bylaws which mandate that Employer provide such
indemnification.

        11.8 FULL SETTLEMENT AND LEGAL EXPENSES. Employer's obligation to make
the payments provided for in this Agreement and otherwise to perform its
obligations hereunder shall not be affected by any set-off, counter-claim,
recoupment, defense or other claim, right or action which Employer may have, or
claim to have, against Employee or others. In no event shall Employee be
obligated to seek other employment or take any other action by way of mitigation
of the amounts payable to Employee under any of the provisions of this
Agreement. Employer agrees to pay, to the full extent permitted by law, all
legal fees and expenses which Employee may incur as a result of Employee's
instituting legal action to enforce his rights hereunder, or as a result of any
contest, arbitration or dispute (regardless of the outcome thereof) initiated by
Employer or others of the validity or enforceability of, or liability under, any
provision of this Agreement, plus in each case interest at the applicable
federal rate provided for in Section 7872(f)(2) of the Internal Revenue Code.
Employer also agrees to pay all legal and accounting fees and expenses incurred
by Employee in connection with the review and negotiation of this Agreement by
Employee's lawyers and accountants.

                                       13

        11.9 COUNTERPARTS. This Agreement may be executed in two or more
counterparts, each of which will take effect as an original, and all of which
shall evidence one and the same agreement.

        11.10 TIME OF ESSENCE. Time is of the essence in this Agreement.

        11.11 SECTION HEADINGS. The article, section, and other headings, and
table of contents, in this Agreement are inserted solely as a matter of
convenience and for reference and are not a part of this Agreement.

                 (Remainder of page intentionally left blank.)

                         (Signatures on following page)

                                       14

         IN WITNESS WHEREOF, Employer and Employee have executed this Agreement
as of the day and year first set forth above.

                                            EMPLOYER:

                                            CDMI Productions, Inc.

                                            By:
                                                --------------------------------
                                                   John R. Dempsey, Jr., C.E.O.

                                            EMPLOYEE:

                                            ------------------------------------
                                            Matthew Crouch

                                       15exv10w1

 

SHOPKO STORES, INC.

2005

EXECUTIVES AND OPTOMETRISTS

DEFERRED COMPENSATION PLAN

Effective November 18, 2004

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 	 	 
	Section

	 	 	1.	 	 	Establishment and Purpose
	 	 	1	 
	

	 	 	1.1	 	 	Establishment
	 	 	1	 
	

	 	 	1.2	 	 	Purpose
	 	 	1	 
	Section

	 	 	2.	 	 	Definitions
	 	 	1	 
	

	 	 	2.1	 	 	Definitions
	 	 	1	 
	

	 	 	2.2	 	 	Gender and Number
	 	 	5	 
	Section

	 	 	3.	 	 	Eligibility for Participation
	 	 	6	 
	Section

	 	 	4.	 	 	Election to Defer
	 	 	6	 
	

	 	 	4.1	 	 	Deferrals
	 	 	6	 
	

	 	 	4.2	 	 	Procedures
	 	 	6	 
	

	 	 	4.3	 	 	Maximum and Minimum Deferrals
	 	 	7	 
	

	 	 	4.4	 	 	Election to Defer Irrevocable
	 	 	7	 
	

	 	 	4.5	 	 	Retirement Benefit Plan Equivalents
	 	 	7	 
	

	 	 	4.6	 	 	Early Distribution Deferrals
	 	 	7	 
	Section

	 	 	5.	 	 	Accounts
	 	 	8	 
	

	 	 	5.1	 	 	Establishment and Crediting of Account
	 	 	8	 
	

	 	 	5.2	 	 	Compensation Deferrals
	 	 	8	 
	

	 	 	5.3	 	 	Investment Elections
	 	 	8	 
	

	 	 	5.4	 	 	Crediting Rate
	 	 	8	 
	

	 	 	5.5	 	 	Contractual Obligation
	 	 	8	 
	

	 	 	5.6	 	 	Charges Against and Balance of Accounts
	 	 	9	 
	

	 	 	5.7	 	 	Statement of Accounts
	 	 	9	 
	Section

	 	 	6.	 	 	Payment of Benefits
	 	 	9	 
	

	 	 	6.1	 	 	Retirement Benefits
	 	 	9	 
	

	 	 	6.2	 	 	Benefits for Participants Upon Other Terminations of Employment	 	 	9	 
	

	 	 	6.3	 	 	Benefits Following a Change of Control
	 	 	10	 
	

	 	 	6.4	 	 	Survivorship Benefits
	 	 	10	 
	

	 	 	6.4.1	 	 	Death Prior to Termination of Employment
	 	 	10	 
	

	 	 	6.4.2	 	 	Death After Commencement of Benefits
	 	 	10	 
	

	 	 	6.5	 	 	Small Account Exception
	 	 	10	 
	

	 	 	6.6	 	 	Recipients of Payments; Designation of Beneficiary
	 	 	11	 
	

	 	 	6.7	 	 	Financial Emergency
	 	 	11	 
	

	 	 	6.8	 	 	Pre-Retirement Benefits
	 	 	12	 
	Section

	 	 	7.	 	 	Forfeiture
	 	 	12	 
	Section

	 	 	8.	 	 	Non-Transferability
	 	 	12	 
	Section

	 	 	9.	 	 	Administration
	 	 	13	 
	

	 	 	9.1	 	 	Administration
	 	 	13	 
	

	 	 	9.2	 	 	Finality of Determination
	 	 	13	 
	

	 	 	9.3	 	 	Claims Procedure
	 	 	13	 
	

	 	 	9.3.1	 	 	Original Claim
	 	 	13	 
	

	 	 	9.3.2	 	 	Claim Review Procedure
	 	 	14	 
	

	 	 	9.3.3	 	 	General Rules
	 	 	14	 
	

	 	 	9.4	 	 	Expenses
	 	 	16	 
	

	 	 	9.5	 	 	Tax Withholding
	 	 	16	 

 

 

	 	 	 	 	 	 	 	 	 	 	 
	Section

	 	 	10.	 	 	Amendment and Termination
	 	 	16	 
	Section

	 	 	11.	 	 	Applicable Law
	 	 	16	 
	Section

	 	 	12.	 	 	No Vested Rights
	 	 	17	 
	Section

	 	 	13.	 	 	Binding Agreement
	 	 	17	 
	Section

	 	 	14.	 	 	Notice
	 	 	17	 
	Section

	 	 	15.	 	 	Errors in Benefit Statement or Distribution
	 	 	17	 
	Section

	 	 	16.	 	 	ERISA
	 	 	18	 

 

 

SHOPKO STORES, INC.

2005

EXECUTIVES AND OPTOMETRISTS

DEFERRED COMPENSATION PLAN

SECTION 1. Establishment and Purpose

1.1 Establishment

ShopKo Stores, Inc., a Wisconsin corporation (hereinafter called the
“Company”), by action of its Board of Directors, hereby establishes this
deferred compensation plan for certain of its executive employees and
optometrists known as the SHOPKO STORES, INC. 2005 EXECUTIVES AND OPTOMETRISTS
DEFERRED COMPENSATION PLAN (hereinafter called the “Plan”), effective November
18, 2004.

1.2 Purpose

The purpose of the plan is (i) to attract high quality executives, managers and
optometrists by providing a means whereby amounts payable by the Company to
these persons may be deferred to a future period, (ii) to motivate such persons
to continue to make contributions to the growth and profits of the Company and
(iii) to provide such persons certain benefits as hereinafter described.

SECTION 2. Definitions

2.1 Definitions

Whenever used hereinafter, the following terms shall have the meaning set forth
below:

	 	(a)	 	“Account” means the account or accounts established for a
Participant pursuant to Section 5 of the Plan.
	 
	 	(b)	 	“Administrator” means the person or persons appointed by the
Retirement Committee of the Company to administer the Plan pursuant
to Section 9 of the Plan.
	 
	 	(c)	 	“Age” means the age of the person as of his last birth date.
	 
	 	(d)	 	“Annual Bonus” means payments made from time to time by the
Company pursuant to the Company’s (i) Executive Incentive Plan, (ii)
Long-Term Incentive Plan (cash portion only), (iii) any plan which
supersedes any of the above-enumerated plans, and (iv) any other
bonus plans of the Company or any Subsidiary designated by the
Retirement Committee as an “Annual Bonus” for purposes of this Plan.
	 
	 	(e)	 	“Base Salary” means the salary, commissions, and other
similar amounts payable by the Company (including amounts deferred
hereunder), but excluding expense reimbursement, moving expense
payments, third-party sick pay, imputed income (from excess life
insurance premiums, automobile use payments or any other source),

1

 

	 	 	 	non-qualified stock options, disqualifying dispositions of stock
acquired pursuant to the exercise of incentive stock options, stock
appreciation rights, severance settlements and similar items of
remuneration.
	 
	 	(f)	 	“Beneficiary” means the person designated by a Participant
pursuant to Section 6.6 hereof.
	 
	 	(g)	 	“Board” means the Board of Directors of the Company.
	 
	 	(h)	 	“Change of Control” means any of the following events:

     (1) the acquisition by an individual, entity or group (within the
meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act
of 1934, as amended (the “Exchange Act”) (a “Person”) of beneficial
ownership (within the meaning of Rule 13d-3 promulgated under the
Exchange Act) of 20% or more of either (i) the then outstanding shares
of Common Stock of the Company (the “Outstanding Company Common Stock”)
or (ii) the combined voting power of the then outstanding voting
securities of the Company entitled to vote generally in the election of
directors (the “Outstanding Company Voting Securities”); provided,
however, that for purposes of this subsection (1), the following
acquisitions shall not constitute a Change of Control: (i) any
acquisition directly from the Company, (ii) any acquisition by the
Company, (iii) any acquisition by any employee benefit plan (or related
trust) sponsored or maintained by the Company or any corporation
controlled by the Company, (iv) any acquisition by any corporation
pursuant to a transaction which complies with clauses (i) and (ii) of
subsection (3) below, or (v) any acquisition of 20% or more but less
than a majority of either the Outstanding Company Common Stock or the
Outstanding Company Voting Securities by any individual, entity or group
if at least a majority of the members of the Board of Directors of the
Company were members of the Incumbent Board, as defined below, at the
time of such acquisition; or

     (2) individuals who, as of the date hereof, constitute the Board
(the “Incumbent Board”) cease for any reason to constitute at least a
majority of the Board; provided, however, that any individual becoming a
director subsequent to the date hereof whose election, or nomination for
election by the Company’s shareholders, was approved by a vote of at
least a majority of the directors then constituting the Incumbent Board
shall be considered as though such individual were a member of the
Incumbent Board, but excluding, for this purpose, any such individual
whose initial assumption of office occurs as a result of an actual or
threatened election contest with respect to the election or removal of
directors or other actual or threatened solicitation of proxies or
consents by or on behalf of a person other than the Board; or

     (3) consummation of a reorganization, merger or consolidation or
sale or other disposition of all or substantially all of the assets of
the Company for which approval of the shareholders of the Company is
required (a “Business Combination”), in each case, unless, immediately
following such Business Combination, (i) all or substantially all of the
individuals and entities who were the beneficial owners, respectively,
of the Outstanding Company Common Stock and Outstanding Company Voting
Securities immediately prior to such Business Combination beneficially
own, directly or indirectly,

2

 

more than 50% of, respectively, the then outstanding shares of
common stock and the combined voting power of the then outstanding
voting securities entitled to vote generally in the election of
directors, as the case may be, of the corporation resulting from such
Business Combination (including, without limitation, a corporation which
as a result of such transaction owns the Company or all or substantially
all of the Company’s assets either directly or through one or more
subsidiaries) in substantially the same proportions as their ownership,
immediately prior to such Business Combination of the Outstanding
Company Common Stock and Outstanding Company Voting Securities, as the
case may be and (ii) at least a majority of the members of the Board of
Directors of the corporation resulting from such Business Combination
were members of the Incumbent Board at the time of the execution of the
initial agreement, or of the action of the Board, providing for such
Business Combination; or

     (4) approval by the shareholders of the Company of a complete
liquidation or dissolution of the Company.

	 	(i)	 	“Chief Executive Officer” means the chief executive officer
of the Company or the person who regularly performs the duties
normally associated with such office on behalf of the Company.
	 
	 	(j)	 	“Code” means the Internal Revenue Code of 1986, as amended.
	 
	 	(k)	 	“Company” means SHOPKO STORES, INC., a Wisconsin corporation,
and any subsidiary thereof.
	 
	 	(l)	 	“Compensation” means Base Salary and Annual Bonus.
	 
	 	(m)	 	“Crediting Rate” means the notional gains and losses credited
on a Participant’s Account balance based on such Participant’s
choice among investment alternatives made available by the
Administrator pursuant to Section 5.4 of the Plan.
	 
	 	(n)	 	“Deferred Compensation Election Form” means a written
agreement between a Participant and the Company whereby the
Participant agrees to defer a portion of his Compensation and the
Company agrees to make benefit payments all in accordance with the
terms and conditions of the Plan. The Deferred Compensation
Election Form may take the form of an electronic communication
followed by appropriate written confirmation as determined by the
Administrator.
	 
	 	(o)	 	“Director” means an individual who is a member of the Board
and who is not an employee of the Company.
	 
	 	(p)	 	“Early Retirement Date” means the first day of the month
following the month in which the Employee reaches age 55 and has
completed ten (10) or more years of service with the Company.
	 
	 	(q)	 	“Effective Date” means November 18, 2004.

3

 

	 	(r)	 	“Employee” means an employee of the Company, or any
Subsidiary, branch or subdivision thereof, with a salary grade at or
above the salary grade level established by the Retirement Committee
from time to time. Employee also means an optometrist who is an
employee of the Company or any Subsidiary, branch or subdivision
thereof.
	 
	 	(s)	 	“ERISA” means the Employment Retirement Income Security Act
of 1974, as amended.
	 
	 	(t)	 	“Normal Retirement Date” means the first day of the month
following the month in which the Employee reaches age 62, has
completed ten (10) or more years of service with the Company or if,
earlier, the first day of the month following the month in which the
Employee reaches age 65.
	 
	 	(u)	 	“Participant” means those Employees who have elected to
participate in the Plan by filing a Deferred Compensation Election
Form hereunder.
	 
	 	(v)	 	“Plan Year” means the calendar year.
	 
	 	(w)	 	“Qualified Plans” means any retirement plans sponsored by the
Company in which Participants in this Plan also participate, which
plans, and any trusts funding such plans, meet the qualification
requirements of Sections 401(a) and 501 (a) of the Internal Revenue
Code.
	 
	 	(x)	 	“Retirement” means Termination of Employment after reaching
the Early Retirement Date or Normal Retirement Date.
	 
	 	(y)	 	“Retirement Benefit” means the retirement benefit described
in Section 6.1 hereof.
	 
	 	(z)	 	“Retirement Committee” means the SHOPKO STORES, INC.
Retirement Committee appointed by the Board for the purpose of
performing certain administrative functions with respect to the
employee benefit plans of the Company, including the Plan.
	 
	 	(aa)	 	“Settlement Date” means the date by which a lump sum payment
shall be made or the date by which installment payments shall
commence pursuant to Section 6. The Settlement Date shall be the
later of (i) the last day of January of the Plan Year following the
year in which the event triggering distribution occurs or (ii) six
months following Termination of Employment.
	 
	 	(bb)	 	“Statutory Limitations” shall mean any statutory or
regulatory limitations on salary reduction (other than applicable
dollar limit under Section 402(g)(1) of the Code) or matching
contributions to a Qualified Plan, or on compensation taken into
account in calculating employer or employee contributions to a
Qualified Plan. The impact of such limits on the Participant for
purposes of this Plan shall be determined by the Administrator based
upon reasonable estimates and shall be final and binding as of the
date any credit is credited to a Participant’s Account pursuant to
Section 4.5. No subsequent adjustments shall be made to increase
such a credit under this Plan as

4

 

	 	 	 	a result of any adjustments ultimately required under any Qualified
Plan due to actual employee contributions or other factors.
	 
	 	(cc)	 	“Subsidiary” means any corporation, limited liability company
or other business entity, the majority of the voting interests of
which is directly or indirectly owned by the Company.
	 
	 	(dd)	 	“Termination of Employment” means ceasing to be employed by
the Company for any reason whatsoever, including, without
limitation, terminations of employment which are voluntary or
involuntary.
	 
	 	(ee)	 	“Valuation Date” means the date through which notional
earnings and losses are credited and shall be the last day of the
month preceding the month in which the distribution or other basis
for valuation occurs.

2.2. Gender and Number

Except when otherwise indicated by the context, any masculine terminology, when
used in the Plan, shall also include the feminine gender and the definition or
use of any term herein in the singular shall also include the plural.

SECTION 3. ELIGIBILITY FOR PARTICIPATION

Employees and other persons designated by the Retirement Committee shall be
eligible to participate in the Plan. Employees eligible to become Participants
shall be entitled to defer Compensation hereunder as of the first day of the
Plan Year if they are Employees or other persons designated by the Retirement
Committee as of the Effective Date, or the first day of the Plan Year following
their becoming an Employee or designated person; provided they timely submit a
Deferred Compensation Election Form to the Administrator in accordance with
Section 4.1 of the Plan. Notwithstanding the foregoing, the Retirement
Committee may establish a special enrollment period for certain Employees hired
or achieving Employee status during a Plan Year. Such special enrollment
period shall run for a maximum of thirty days following such person becoming an
Employee or achieving Employee status. A participant shall cease to be a
Participant upon Termination of Employment. The Retirement Committee, in its
sole and absolute discretion shall make such rules concerning leaves of
absences, re-employment and other matters concerning eligibility for
Participation hereunder as it deems to be in the best interests of the Company.

SECTION 4. ELECTION TO DEFER

4.1 Deferrals

Any Employee or designated person eligible to become a Participant may elect to
defer Compensation, otherwise payable in subsequent Plan Years, by submitting a
Deferred Compensation Election Form to the Administrator during the enrollment
period established by the Administrator prior to the beginning of the period
during which the Compensation is earned. The Retirement Committee may
establish a special enrollment period for certain Employees hired during a Plan
Year or persons achieving Employee status during the Plan year to allow

5

 

such Employees to defer Compensation payable during the Plan Year. The special
enrollment period shall be the thirty days following the hiring of the Employee
or the person achieving Employee status, and shall relate to pay attributable
to periods beginning after the date of the deferral election.

4.2 Procedures

A participant shall make the election provided for in Section 4.1 hereof by
executing a Deferred Compensation Election Form in the form provided by the
Administrator, subject to such terms and conditions as the Retirement Committee
may impose, including, but not limited to, medical examinations, health
screening, medical records reviews, etc. The Deferred Compensation Election
Form shall set forth the Participant’s election to defer any whole percentage
of Compensation earned by the Participant during the Plan Year in accordance
with Section 4.3. A Participant shall only be entitled to defer Compensation
in the amounts and for the periods determined, from time to time, in the sole
and absolute discretion of the Retirement Committee. A Deferred Compensation
Election Form shall be effective if, and only if, it is timely accepted by the
Administrator on behalf of the Company. If accepted by the Administrator, the
Compensation to be deferred, as specified in the Deferred Compensation Election
Form, shall be deferred and the Participant’s Compensation shall be
correspondingly reduced.

4.3 Maximum and Minimum Deferrals

The following maximum and minimum deferrals of Compensation shall apply to the
amount to be deferred by any Participant, provided, however, that the
Retirement Committee may from time to time, in its sole and absolute
discretion, adjust the maximum and minimum deferrals permitted hereunder:

	 	(i)	 	Minimum Deferral - one percent (1%) of Base
Salary or one percent (1%) of Annual Bonus, whichever is less;
	 
	 	(ii)	 	Maximum Deferral- (a) forty percent (40%) of Base
Salary, and (b) one hundred percent (100%) of any bonus paid
under any Bonus Plan.

4.4 Election to Defer Irrevocable

Except as provided in this Plan or by action of the Retirement Committee as
provided herein, a Participant’s election to defer any amounts of any nature
whatsoever pursuant to the Plan shall be irrevocable when made and accepted by
the Administrator and shall not be subject to amendment or modification in any
manner whatsoever thereafter.

4.5 Retirement Benefit Plan Equivalents

The Company, in its sole discretion, may choose to credit a Participant’s
Account for any Plan Year in which the Participant makes a deferral under this
Plan to make up amounts that would have been provided to the Participant under
the Qualified Plans had the Participant made no elective deferral under this
Plan and without regard for Statutory Limitations. Such credit will be
credited to the Participant’s Account on the first day of the Plan Year
following the Plan Year for which the contribution was or would have been made
under the Qualified Plans.

4.6 Early Distribution Deferrals

At the time of submitting a Deferred Compensation Election Form, a Participant
may make an irrevocable election to create a Scheduled Withdrawal Account as to
the amounts deferred

6

 

pursuant to that Form, including any earnings thereon, which will be paid out
at an earlier time than Retirement as provided in Section 6 hereunder;
provided, however, that the deferral period shall in no case be less than three
(3) years from the first day of the Plan Year to which the Deferred
Compensation Election Form applies; provided, further, that the payment of the
Scheduled Withdrawal Account shall be in one lump sum, and, once paid, the
Participant shall be entitled to no further benefits with respect to such
Scheduled Withdrawal Account. A Participant may have multiple Scheduled
Withdrawal Accounts.

SECTION 5. Accounts

5.1 Establishment and Crediting of Account

The Company shall establish a separate Account on its books with respect to
each deferral election made by each Participant and shall credit to such
Account(s) certain amounts in accordance with the provisions of the Plan.
Accounts shall be deemed to be credited with notional gains or losses as
provided in Section 5.4 from the date deferral is credited to the Account
through the Valuation Date.

5.2 Compensation Deferrals

The Compensation that is deferred pursuant to a Participant’s Deferred
Compensation Election Form shall be credited to a Participant’s Account as of
the date the Participant would have otherwise received the Compensation. The
Company shall be entitled to deduct from the Participant’s Compensation which
is subject to a Deferred Compensation Election Form any amount it is required
to withhold or collect under any federal, state or local law for taxes or other
charges, including, without limitation, Social Security (FICA) and Medicare
taxes.

5.3 Investment Elections

The Administrator shall establish a procedure by which a Participant may elect
among investment alternatives or rates made available by the Administrator and
by which the Participant may change investment elections at least quarterly.
The Administrator may allow a Participant to make a different election for each
Account, or may provide that the investment election applies to all of a
Participant’s Accounts. The Participant’s choice among investments shall be
solely for purposes of calculating the Crediting Rate. If the Participant
fails to elect an investment election, the Crediting Rate shall be based on the
investment alternative which is a money market fund or alternative most similar
to a money market fund. At no time shall the Company be obligated to set aside
or invest funds as directed by the Participant and, if the Company elects to
invest funds as directed by the Participant, the Participant shall have no more
right to such investments than any other unsecured general creditor.

5.4 Crediting Rate

The Crediting Rate on amounts in a Participant’s Account(s) shall be based on
the Participant’s investment election(s) pursuant to Section 5.3. A
Participant’s Account(s) shall reflect the investments selected by the
Participant. If an investment on which the Crediting Rate is based sustains a
loss, the Participant’s Account(s) shall be reduced to reflect such loss.
During installment distributions, a Participant’s Account(s) shall continue to
be credited at the Crediting Rate.

7

 

5.5 Contractual Obligation

It is intended that the Company is under a contractual obligation to make
payments in accordance with terms and conditions of the Plan. A Participant
shall have no rights to such payments, other than as a general, unsecured
creditor of the Company. Account balances shall not be financed through a trust
fund or any other assets or properties in which a Participant has any interest
whatsoever. Payments from such Accounts shall be made out of the general funds
of the Company. All such Accounts shall be utilized solely as a device for the
measurement and determination of the amounts to be paid to a Participant
pursuant to the Plan. Such Accounts shall not constitute or be treated as a
trust fund or an interest in any specific assets or properties of the Company
of any sort.

5.6 Charges Against and Balance of Accounts

Each Participant’s Account, as of each Valuation Date, shall consist of the
balance of such Account as of the immediately preceding Valuation Date, plus
deferrals credited to the Account since the immediately preceding Valuation
Date, plus (or minus, if the investment return is negative) the amount to be
credited to such Account by the Company based on the Crediting Rate pursuant to
Section 5.4 hereof (taking into account the timing of any contribution or
distribution), less the amount of all distributions, if any, made from such
Account since the immediately preceding Valuation Date.

5.7 Statement of Accounts

The Administrator, shall from time to time, at least quarterly, provide to each
Participant a statement in such form as the Retirement Committee deems
desirable setting forth the Participant’s Accounts as of the end of the prior
period.

SECTION 6. Payment of Benefits

6.1 Retirement Benefits

In the event of the Participant’s Retirement, the Participant shall be entitled
to receive an amount equal to the total balance(s) of the Participant’s
Account(s) credited with notional earnings as provided in Section 5 through the
Valuation Date. The Participant may elect, at the same time he makes a
deferral election, to receive benefits from the Account credited with such
deferrals, in a lump sum or in annual installments over 3, 5, 10 or 15 years.
In other words, the Participant may have different benefit payout elections for
each of his or her Accounts. If the Participant fails to make a timely
election, the benefits shall be paid over fifteen (15) years. Payments shall
begin on the Settlement Date following Retirement unless the Participant has
made a timely election to have payments begin on any one of the first five (5)
anniversaries of such date but in no event later than the Settlement Date
following the date the Participant attains age seventy (70). An election to
change the form of benefit payout for any Account may be made at any time prior
to Retirement by submitting to the Administrator the form provided for such
purpose but elections shall not be effective unless made no less than thirteen
(13) calendar months prior to Retirement, and shall only be effective if they
comply with Section 409A of the Code and any regulations promulgated
thereunder.

6.2 Benefits for Participants Upon Other Terminations of Employment

In the event of the Participant’s Termination of Employment, other than by
reason of Retirement or death, the Participant shall be entitled to receive an
amount equal to the total balance(s) of the

8

 

Participant’s Account(s) credited with notional earnings as provided in Section
5 through the Valuation Date. The Participant may elect, at the same time he
makes a deferral election, to receive benefits from the Account credited with
such deferrals, in a lump sum or annual installments over 3, 5, 10, or 15
years. In other words, the Participant may have different benefit payout
elections for each of his or her Accounts. If the Participant fails to make a
timely election, the benefits shall be paid in a single lump sum. Payments
shall begin on the Settlement Date following Termination of Employment unless
the Participant has made a timely election to have the payments begin on the
Settlement Date following the date when Participant would be eligible for Early
Retirement or Normal Retirement. An election to change the form of benefit
payout for any Account may be made at any time prior to Termination of
Employment by submitting to the Administrator the form provided for such
purpose but elections shall not be effective unless made no less than thirteen
(13) calendar months prior to Termination of Employment, and shall only be
effective if they comply with Section 409A of the Code and any regulations
promulgated thereunder.

6.3 Benefits Following a Change of Control

A new Participant may make an irrevocable election with respect to all future
deferral Accounts on the Participant’s first Deferred Compensation Election
Form, to receive the full amount in his Account(s), credited with notional
earnings as provided in Section 5 through the Valuation Date, in the event of a
Change of Control prior to Termination of Employment. Such benefit shall be
payable in a lump sum no later than the last day of the month following the
month in which such Change of Control occurs, unless the Participant has
elected in the Deferred Compensation Election Form to have such benefit paid in
five (5) annual installments beginning on such date. In no event will
accelerated payments of Accounts be made by the Administrator under this
Section 6.2 if doing so would violate Section 409A of the Code and any
regulations promulgated thereunder.

6.4 Survivorship Benefits

6.4.1 Death Prior to Termination of Employment

If a Participant dies prior to receiving any benefits due hereunder, the
Company shall pay to the Participant’s Beneficiary a benefit equal to the
Participant’s Account(s) at death credited with notional earnings as provided
in Section 5, payable in one lump sum as soon as possible after the Retirement
Committee receives a certified copy of the Participant’s death certificate.
Payment of the benefit under this Section 6.4.1 shall relieve the company of
any further obligation to pay benefits under the Plan.

6.4.2 Death After Commencement of Benefits

If a participant dies after payments pursuant to this Section 6 have commenced
hereunder, but prior to receiving all of the scheduled annual payments, the
Company shall pay the remaining annual payments to the Participant’s
Beneficiary.

6.5 Small Account Exception

Notwithstanding any other provision of the Plan or a Participant’s Deferred
Compensation Election Form, the Administrator, taking into account the expense
and inconvenience of administering the Plan with respect to small Accounts as
set forth herein, may, in its sole discretion, elect to distribute a
Participant’s benefits in a lump sum. This Section 6.5 shall only apply to
small Accounts attributable to a Participant that have an aggregate balance of
$25,000 or

9

 

less at the time benefits payable pursuant to this Section 6 would otherwise
commence. In addition, if the installments payable under this Section 6 would,
in the aggregate, be less than $3,000 per year, the Administrator, in its sole
discretion, may shorten the period over which the installment payments are
made. In no event will accelerated payments of small Accounts be made by the
Administrator if doing so would violate Section 409A of the Code or any
regulations promulgated thereunder.

6.6 Recipients of Payments; Designation of Beneficiary

All payments to be made by the Company shall be made to the Participant, if
living. Except as otherwise provided herein, in the event of a Participant’s
death prior to the receipt of all benefit payments, all subsequent payments to
be made under the Plan shall be to the Beneficiary of the Participant in
accordance with a Participant’s designation of Beneficiary. Unless otherwise
specified in the Participant’s Beneficiary designation, in the event a
Beneficiary dies before receiving all payments due to such Beneficiary pursuant
to this Plan, the then remaining payment shall be paid to the legal
representatives of the Beneficiary’s estate. The Participant shall designate a
Beneficiary, or during his lifetime change such designation, by filing a
written notice of such designation with the Administrator in such form and
subject to such rules and regulations as the Administrator may prescribe. If
the Participant’s Compensation constitutes community property, then any
Beneficiary designation made by the Participant other than a designation of
such Participant’s spouse shall not be effective if any such Beneficiary or
beneficiaries are to receive more than fifty percent (50%) of the aggregate
benefits payable hereunder, unless such spouse shall approve such designation
in writing. If no designation shall be in effect at the time when any benefits
payable under this Plan shall become due, the Beneficiary shall be the legal
representatives of the Participant’s estate. In the event a benefit is payable
to a minor or person declared incompetent or to a person incapable of handling
the disposition of his property, the Retirement Committee may determine to pay
such benefit to the guardian, legal representative or person having the care or
custody of such minor, incompetent or person. The Retirement Committee may
require proof of incompetence, minority or guardianship as it may deem
appropriate prior to distribution of the benefit. Such distribution shall
completely discharge the Retirement Committee and the Company from all
liability with respect to such benefit.

6.7 Financial Emergency

In the event of a Participant’s unforeseeable emergency, the Retirement
Committee, in its sole and absolute discretion, may alter the timing or manner
of payment of any benefits or deferred amounts to be paid pursuant to the Plan
or release the Participant from the obligation of making deferrals. For
purposes of this section, an unforeseeable emergency shall mean a severe
financial hardship to the Participant resulting from an illness or accident of
the Participant, the Participant’s spouse, or a dependent (as defined in
Section 152(a) of the Code) of the Participant, loss of the Participant’s
property due to casualty, or other similar extraordinary and unforeseeable
circumstances arising as a result of events beyond the control of the
Participant. Any early payment of benefits or withdrawal of deferred amounts
due to an unforeseeable emergency shall be limited to the amount 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). The foregoing standard for distributions shall be
modified so that it is consistent with any regulations promulgated under
Section 409A of the Code. The Retirement Committee’s decision in passing

10

 

upon severe financial hardship of the Participant and the manner in which, if
at all, the payment or deferral of any amounts pursuant to the Plan shall be
altered or modified shall be final, conclusive and not subject to appeal. The
Participant shall have no right to make up any amount distributed or
transferred as a result of a determination of financial emergency by the
Retirement Committee pursuant to this Section 6.7.

6.8 Pre-Retirement Benefits

In the event that Participant has made the election provided for in Section 4.6
to receive amounts prior to Retirement, such pre-retirement benefits shall be
paid in accordance with such election. The calculation of the amount of such
pre-retirement benefit shall be made in accordance with the terms and
conditions of the Plan, including, without limitation, Section 5 hereof.

SECTION 7. Forfeiture

In the event of a Participant’s suicide during the first two (2) years after
the filing of any Deferred Compensation Election Form the Retirement Committee,
in its sole and absolute discretion, may terminate all or any part of a
Participant’s (or Beneficiary’s) right to receive any benefits whatsoever
hereunder, provided, however, that the Beneficiary of such a Participant shall
be entitled to receive at least an amount equal to that portion of the
Participant’s Account which has in fact been deferred pursuant to the Plan,
without increase, growth addition or any other amount, payable in such manner
as the Retirement Committee, in its sole and absolute discretion shall
determine.

In the event a Participant (i) makes any material misstatement of information
in connection with any Deferred Compensation Election Form (ii) fails to
disclose to the Company or its agents any material item of his personal or
medical history (including, but not limited to, habits of drug, chemical or
tobacco use), (iii) takes any other action (or fails to take any action), which
action (or failure to act) results in a loss to the Company under the Plan,
then the Retirement Committee, in its sole and absolute discretion, may
terminate all or any part of a Participant’s (or Beneficiary’s) right to
receive any benefits whatsoever hereunder.

SECTION 8. Non-Transferability

In no event shall the Company make any payment under the Plan to any assignee
or creditor of a Participant or a Beneficiary. Prior to the time of payment
hereunder, a Participant or Beneficiary shall have no rights by way of
anticipation or otherwise to assign or otherwise dispose of any interest under
the Plan nor shall such rights be assigned or transferred by operation of law.

SECTION 9. Administration

9.1 Administration

This Plan shall be administered by the Retirement Committee and the
Administrator. The Retirement Committee may from time to time establish rules
for the administration of the Plan that are not inconsistent with the
provisions of the Plan.

11

 

9.2 Finality of Determination

Except as otherwise provided herein, any interpretation or determination by the
Retirement Committee as to any disputed questions arising under the Plan,
including questions of fact (or questions of construction and interpretation),
shall be final, binding and conclusive upon all persons, subject only to a
determination otherwise by the Board.

9.3 Claims Procedure

If any Participant, Beneficiary or other properly interested party is in
disagreement with any determination that has been made under the Plan, a claim
may be presented, but only in accordance with the procedures set forth herein.

9.3.1 Original Claim

Any Participant, Beneficiary or other properly interested party may, if he so
desires, file with the Retirement Committee a written claim for benefits or a
determination under the Plan. Within ninety (90) days after the filing of such
a claim, the Retirement Committee shall notify the claimant in writing whether
his claim is upheld or denied in whole or in part or shall furnish the claimant
a written notice describing specific special circumstances requiring a
specified amount of additional time (but not more than one hundred eighty (180)
days from the date the claim was filed) to reach a decision on the claim. If
the claim is denied in whole or in part, the Retirement Committee shall state
in writing:

	 	(i)	 	the specific reason or reasons for the denial;
	 
	 	(ii)	 	the references to the pertinent provisions of
this Plan 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 such material or information is
necessary; and
	 
	 	(iv)	 	an explanation of the claims review procedure set
forth in this section, including a statement of the claimant’s
right to bring a civil action under ERISA Section 502(a)
following a denial on review.

9.3.2 Claim Review Procedure

Within sixty (60) days after receipt of notice that his claim has been denied
in whole or in part, the claimant may file with the Retirement Committee a
written request for a review and may, in conjunction therewith, submit written
comments, documents, records and other information relating to the Claim. The
claimant or his authorized representative, shall be provided, upon request and
free of charge, reasonable access to, and copies of, all documents, records and
other information relevant to the claimant’s claim. For purposes of this
section, a document, record or other information shall be considered “relevant”
to a claimant’s claim if such document, record or other information (i) was
relied upon by the Retirement Committee in making its decision on the claim,
(ii) was submitted, considered or generated in the course of the Retirement
Committee’s making its decision on the claim, without regard to whether the
Retirement Committee relied upon such document, record or other information in
making its decision, or (iii) complies with administrative processes and
safeguards which are designed to insure and to verify that decisions on claims
are made in accordance with governing Plan documents, whose provisions are
applied consistently with respect to similarly situated claimants. The
Retirement Committee’s review of the claimant’s claim and of the Retirement
Committee’s denial of such claim shall take into account all comments,
documents, records, and other information submitted

12

 

by the claimant or his authorized representative relating to the claim, without
regard to whether such information was submitted or considered in the initial
decision on the claim. Within sixty (60) days after the filing of such a
request for review, the Retirement Committee shall notify the claimant in
writing whether, upon review, the claim was upheld or denied in whole or in
part or shall furnish the claimant a written notice describing specific
circumstances requiring a specified amount of additional time (but not more
than one hundred twenty (120) days from the date the request for review was
filed) to reach a decision on the request for review. In the case of a
decision on appeal upholding the Retirement Committee’s initial denial of the
claimant’s claim, such notice shall set forth, in a manner calculated to be
understood by the claimant, the following information:

	 	(i)	 	the specific reason or reasons for the decisions
on appeal;
	 
	 	(ii)	 	references to the pertinent provisions of this
Plan on which the decision on appeal is based;
	 
	 	(iii)	 	a statement that the claimant is entitled to
receive, upon request and free of charge, reasonable access
to, and copies of, all documents, records and other
information relevant to the claimant’s claim for benefits; and
	 
	 	(iv)	 	a statement of the claimant’s right to bring an
action under ERISA Section 502(a).

9.3.3 General Rules

	 	(i)	 	No inquiry or question shall be deemed to be a
claim or a request for a review of a denied claim unless made
in accordance with the foregoing claims procedure. The
Retirement Committee may require that any claim for benefits
and any request for a review of denied claim be filed on forms
to be furnished by the Administrator upon request.
	 
	 	(ii)	 	All decisions on claims and on requests for a
review of denied claims shall be made by the Retirement
Committee. In accordance with Section 9.2 hereof, decisions
of the Retirement Committee shall be final, binding and
conclusive upon all persons.
	 
	 	(iii)	 	The Retirement Committee may, in its discretion,
hold one or more hearings on a claim or a request for a review
of a denied claim.
	 
	 	(iv)	 	Claimants may be represented by a lawyer or other
representative (at their own expense), but the Retirement
Committee reserves the right to require the claimant to
furnish written authorization. A claimant’s representative
shall be entitled to copies of all notices given to the
claimant.
	 
	 	(v)	 	The decision of the Retirement Committee on a
claim and on a request for a review of a denied claim shall be
served on the claimant in writing. If a decision or notice is
not received by a claimant within the time specified, the
claim or request for a review of a denied claim shall be
deemed to have been denied.

13

 

	 	(vi)	 	Prior to filing a claim or a request for a review
of a denied claim, the claimant or his representative shall
have a reasonable opportunity to review a copy of this Plan
and all other pertinent documents in the possession of the
Company and the Retirement Committee.
	 
	 	(vii)	 	The Administrator and the individuals serving on
the Retirement Committee shall, except as prohibited by law,
be indemnified and held harmless by the employer from any and
all liabilities, costs, and expenses (including legal fees),
to the extent not covered by liability insurance arising out
of any action taken by any individual of this Committee with
respect to this plan, unless such liability arises from the
individual’s own claim for his or her own benefit, the proven
gross negligence, bad faith, or (if the individual had
reasonable cause to believe his or her conduct was unlawful)
the criminal conduct of such individual. This indemnification
shall continue as to an individual who has ceased to be a
member of the Retirement Committee for the employer and shall
inure to the benefit of the heirs, executors and
administrators of such an individual.

9.4 Expenses

The cost of payment from the Plan and the expense of administering the Plan
shall be borne by the Company.

9.5 Tax Withholding

The Company shall have the right to deduct from all payments to be made under
the Plan, any federal, state or local taxes or other charges required by law to
be withheld with respect to such payments, as determined in the sole discretion
of the Retirement Committee.

SECTION 10. Amendment and Termination

The Board, or the Retirement Committee, in the circumstances provided below,
may at any time amend, modify, terminate or suspend, this Plan and no
Participant or any other person shall have any right, title, interest or claim
against the Company, its directors, officers or employees for any amounts,
except that (i) the Participant shall be fully vested in his Account hereunder
as of the date on which the Plan is terminated or suspended, (ii) no amendment
shall eliminate the crediting of an investment return on an Account prior to
the complete distribution thereof or provide for a distribution method which
accelerates the timing of distributions hereunder without the consent of a
Participant and (iii) subsequent to a Change of Control, unless a majority of
the holders of Account balances agree to the contrary, the Company or the
Administrator may not alter (a) the choice of investments in the Investment
Election as in effect immediately before the Change of Control and (b) the
payout options as in effect immediately before the Change of Control. Any such
amendment, modification or termination of the Plan may occur either (i) without
limitation, by resolution of the Board or (ii) in any respect that does not
materially increase the cost of the Plan to the Company, by action of the
Retirement Committee (with the written concurrence of the Chief Executive
Officer). Notwithstanding the foregoing, if any provision of this Plan or the
accompanying election forms does not comply with the requirements of Section
409A of the Code, or any regulations or other guidance promulgated thereunder,
such that, absent correction, any Participant would be subject to a 20% penalty
under

14

 

Section 409A(a)(1)(B)(i)(II) of the Code, the Retirement Committee may amend or
modify this Plan or the election forms in a manner designed to avoid such
penalty, without the consent of any affected Participant, even if such change
is otherwise detrimental to any Participant in the Plan.

SECTION 11. Applicable Law

The Plan shall be governed and construed in accordance with the laws of the
State of Wisconsin, without regard to its conflict of laws provisions, unless
federal law supersedes Wisconsin law in which event the applicable federal law
shall apply. The invalidity of any portion of the Plan shall not invalidate
the remainder hereof and said remainder shall continue in full force. The
captions and other titles herein are designed for convenience only and are not
to be resorted to for the purposes interpreting any provision of the Plan. The
waiver by the Company of any breach of any provision of the Plan shall not
operate or be construed as a waiver of any subsequent breach by that
Participant or any other Participant.

SECTION 12. No Vested Rights

The Plan and elections hereto shall not be deemed or construed to be a written
contract of employment between any Participant (or any person eligible to be a
Participant) and the Company, nor shall any provision of the Plan (i) restrict
the right of the Company to discharge any Participant (or any person eligible
to be a Participant) or (ii) in any way whatsoever grant to any Participant (or
any person eligible to be a Participant) the right to receive any guaranteed
base compensation, Annual Bonus, incentive bonus awards, commissions, fees or
any other payments of any nature whatsoever.

SECTION 13. Binding Agreement

The provisions of the Plan shall be binding upon the Participant, his or her
heirs, personal representatives and beneficiaries, and subject to the rights
granted to amend or terminate the Plan, the provisions of the Plan shall also
be binding upon the Company, its successors and assigns.

SECTION 14. Notice

Any notice or filing required or permitted to be given to the Company or a
Participant under this Plan shall be sufficient if in writing and
hand-delivered, or sent by registered or certified mail, in the case of the
Company, to the principal office of the Company, directed to the attention of
the Administrator, and in the case of a Participant, to the last known address
of such Participant indicated on the employment records of the Company. Such
notice shall be deemed given as of the date of delivery or, if delivery is made
by mail, as of the date shown on the postmark on the receipt for registration
or certification.

15

 

SECTION 15. Errors in Benefit Statement or Distribution

In the event an error is made in a benefit statement, such error shall be
corrected on the next benefit statement following the date such error is
discovered. In the event of an error in a distribution, the Participant’s
Account(s) shall, immediately upon discovery of such error, be adjusted to
reflect such under or overpayment and, if possible, the next distribution shall
be increased or decreased to correct such prior error. If the remaining
balance of a Participant’s Account(s) is insufficient to cover an erroneous
overpayment, the Company, may, at its discretion, offset any amount payable to
the Participant from the Company (including but not limited to salary, bonuses,
expense reimbursements, severance benefits or other employee compensation
benefit arrangements, as allowed by law) to recoup the amount of such
overpayment.

SECTION 16. ERISA

The Plan is intended to be an unfunded plan maintained primarily to provide
deferred compensation benefits for a select group of “management or highly
compensated employees” within the meaning of Sections 201, 301, and 401 of
ERISA and, therefore, exempt from Parts 2, 3 and 4 of Title I of ERISA.

Adopted by the Board of Directors: November 17, 2004

16

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