Document:

Exhibit

SEPARATION AGREEMENT AND RELEASE IN FULL
THIS SEPARATION AGREEMENT AND RELEASE IN FULL (the “Agreement”) is effective as of April 18, 2016 (the “Effective Date”), by and between Bristow Group Inc., a Delaware corporation (the “Company”), and K. Jeremy Akel (“Executive”).
RECITALS
WHEREAS, the Company and Executive are parties to that certain Amended and Restated Severance Benefits Agreement dated as of April 10, 2012 (the “Employment Agreement”);
WHEREAS, the Executive holds the office of Senior Vice President and Chief Operating Officer which is considered a Tier 2 employee position under the Company’s Management Severance Benefits Plan for U.S. Employees effective June 4, 2014  (the “Severance Plan”); 
WHEREAS, the Company and Executive have determined that Executive will resign from officer and director positions and separate from employment with the Company and its affiliates and subsidiaries effective as of April 18, 2016 (the “Termination Date”) under certain terms herein set forth; 
WHEREAS, the Company and Executive hereby agree that Executive’s separation from the Company in a manner consistent with those set forth herein shall qualify as a “Termination without Cause” for purposes of the Employment Agreement and the Severance Plan; 
WHEREAS, in consideration of the mutual promises contained herein, Executive voluntarily enters into this Agreement upon the terms and conditions herein set forth; and
WHEREAS, in consideration of the mutual promises contained herein, the Company is willing to enter into this Agreement upon the terms and conditions herein set forth.
AGREEMENT
NOW, THEREFORE, intending to be legally bound and in consideration of the mutual covenants and agreements hereinafter set forth, the Company and Executive agree to the following terms and conditions:
1.Resignation from Officer and Director Positions.  Effective as of the Termination Date, Executive hereby resigns from his position as Senior Vice President and Chief Operating Officer of the Company and any and all director, manager and other officer (or equivalent) positions he holds with the Company and any entity controlled by, controlling or under common control with the Company (the “Affiliated Group”).  Executive agrees to take any and all further acts necessary to accomplish these resignations.  Company agrees to take all actions necessary to remove Executive from all officer and board positions that he holds at the Company and within the Affiliated Group and defend and indemnify Executive from any claims that may arise from holding those officer or board positions to the extent provided in the Company’s bylaws and in accordance with Section 11(n) of this Agreement.

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2.    Payment of Accrued Amounts; Pro Rated FY 2017 Bonus. 
(a)    The Company shall pay Executive his accrued and unpaid base salary through the Termination Date, in accordance with the Company’s normal payroll schedule and procedures for its executives and applicable law.  In addition, the Company shall reimburse Executive for any eligible business expenses incurred prior to the Effective Date to which he is otherwise entitled to reimbursement in accordance with the provisions of applicable Company policy and applicable law.
(b)    On or prior to June 17, 2016 (the “Cash Payment Date”), the Company shall pay to Executive an amount equal to $36,605, which represents payment for all of Executive’s unused paid time off.
(c)    Executive shall be entitled to payment at target of Executive’s annual bonus (with the discretionary component deemed for this purpose to be earned at 100% of the target bonus) with respect to the Company’s fiscal year ending March 31, 2017, in accordance with the Company’s FY 2017 Annual Incentive Compensation Plan, with such payment pro-rated by a fraction, the numerator of which shall equal the number of days between April 1, 2016 and the Termination Date and the denominator of which shall equal 365.  The parties agree that the pro-rated annual bonus payable pursuant to this Section 2(c) equals $15,342, and shall be paid to Executive on or prior to the Cash Payment Date.
3.    Separation Payment.  On or prior to the Cash Payment Date, the Company shall pay to Executive an amount in cash totaling $768,581 (the “Separation Payment”), which amount shall include the following components:
	
				
	A.
	1.0 X Annual Salary of $439,189
	=
	$  439,189

	B.
	1.0 X Full Target Bonus of $329,392
	=
	$  329,392

	Total
	 
	 
	$  768,581

; provided however, Company’s obligation to make the payments described in this Section 3 is subject to Executive’s compliance with Section 10 below.  Executive’s breach of any of the provisions of Section 10 below may delay or otherwise relieve Company of its obligation to make said payments.   
4.    Restricted Stock, Restricted Stock Units and Options.  
(a)    All outstanding awards of restricted stock units and non-qualified stock options shall fully vest effective on June 17, 2016; provided, however, the retention award consisting of 12,784 restricted stock units that was granted to the Executive on February 3, 2014 with a scheduled cliff vesting date of February 3, 2017 shall be forfeited in full per the terms of the award and shall not vest with the other outstanding awards of restricted 

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stock units and non-qualified stock options on June 17, 2016.  Exhibit A hereto lists the unvested restricted stock unit awards that shall vest on June 17, 2016.   
(b)    Non-qualified stock options outstanding on the Termination Date shall remain exercisable until June 19, 2017.  Exhibit A hereto lists the expiration date with respect to unexercised stock options.
5.    Performance Cash Awards.  Upon the Termination Date, Executive shall be fully vested in the right to receive, without pro-ration, his outstanding performance cash awards.  Exhibit A hereto lists Executive’s outstanding performance cash awards granted in June 2014 and June 2015 which shall be payable to Executive on June 17, 2016 based upon achievement of “target” level performance criteria.  Additionally, Exhibit A includes Executive’s outstanding performance cash award that was granted in June 2013 which shall be paid to Executive on the date that such award is payable in the normal course of business to other award recipients and shall be paid based on actual performance pursuant to the terms of the award.  
6.    Deferred Compensation.  Company and Executive acknowledge that Executive’s rights under the Bristow Group Inc. Deferred Compensation Plan, as amended and restated effective as of August 1, 2008 (the “Deferred Compensation Plan”), are not intended to be affected by this Agreement, except that Executive’s termination of employment with the Company will terminate any obligation of the Company to make future contributions to the Deferred Compensation Plan for Executive’s benefit. Company and Executive also acknowledge that pursuant to the provisions of the Deferred Compensation Plan, Executive is not entitled to any contribution for the plan year ending December 31, 2016.  Executive’s benefit under the Deferred Compensation Plan shall be paid to Executive on the first business day occurring on or after the date that is six months after the Termination Date, pursuant to the terms of the Deferred Compensation Plan and in compliance with the six-month delay requirement under Section 409A(a)(2)(B)(i) of the Internal Revenue Code of 1986, as amended (the “Code”).
7.    Group Health Coverage; Life Insurance.  Effective as of the first day of the month following the Termination Date, until the earliest to occur of (A) the expiration of eighteen months after the Termination Date, (B) the date the Executive first becomes eligible to receive health benefits under another employer-provided plan, from and after the Termination Date, or (C) the death of the Executive, the Company shall, subject to proper COBRA election by Executive, continue medical and dental benefits to the Executive (and, if applicable, to the spouse and dependents of the Executive who received such benefits under the Executive’s coverage immediately prior to the Termination Date) at least equal to those that would have been provided to the Executive (and to any such dependent) in accordance with the plans, programs, practices and policies of the Company had the Executive remained actively employed, provided that Executive makes all required COBRA payments to the Company, and the Company shall immediately reimburse Executive for each such COBRA payment.  Continued group health coverage shall be subject to imputed tax on Executive in accordance with applicable law.
8.    Outplacement.  The Company shall provide to Executive outplacement services in accordance with the current Human Resources’ practice for a period of up to twelve months after the Termination Date.

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9.    Release.  Executive acknowledges that this Agreement provides Executive with rights and privileges to which Executive would not otherwise be entitled in the absence of the execution of a waiver and release, and, in exchange for the same and pursuant to Section 1(a)(iv) of the Employment Agreement, Executive agrees to take action to timely execute a full and complete release of claims against the Company, its affiliates, officers and directors in the form attached hereto as Exhibit B (“Release”).  Notwithstanding any provision herein to the contrary, if Executive has not delivered to the Company an irrevocable Release and resignation notice(s) for each applicable affiliate and subsidiary of the Company for which the Executive serves as an officer or director executed by or on behalf of Executive on or before the forty-fifth (45th) day after the Termination Date, or if the Release is subsequently revoked, Executive shall have no rights to the payments and benefits specified in Sections 2(b), 2(c), 3, 4(b), 5, 7, and 8 hereof.
10.    Covenants.  The Executive recognizes that the Company’s willingness to enter into this Agreement is based in material part on the Executive’s agreement to the provisions of this Section 10, and that the Executive’s breach of the provisions of this Section 10 could materially damage the Company.  For purposes of this Agreement, the “Restricted Period” referenced herein shall mean the twelve-month period of time immediately following the Termination Date.
		
	(a)
	Confidential Information.  During the course of Executive’s employment with the Company, the Company has provided its confidential and trade secret information to the Executive, and the Executive agreed and continues to agree to hold in a fiduciary capacity for the benefit of the Company and the Affiliated Group, all Confidential Information; provided however, that the following shall not constitute confidential and proprietary information: (1) information that Executive can demonstrate was already known to him prior to the commencement of his employment with the Company, (ii) information that is in or has entered the public domain through no breach of this Agreement or other wrongful act of Executive, and (iii) information that has been legally received by Executive from a third party who is not under any obligation of confidentiality with respect to such information.  The Executive shall not communicate, divulge or disseminate Confidential Information at any time during or after the Executive’s employment with the Company and the Affiliated Group, except with the prior written consent of the Company, or as otherwise required by law or legal process or governmental inquiry or as such disclosure or use may be required in the course of the Executive performing the Executive’s duties and responsibilities hereunder.  Notwithstanding the foregoing provisions, if the Executive is required to disclose any such confidential or proprietary information pursuant to applicable law or governmental inquiry or a subpoena or court order, the Executive shall promptly notify the Company in writing of any such requirement so that the Company or the appropriate member of the Affiliated Group may at its sole cost seek an appropriate protective order or other appropriate remedy.  The Executive shall reasonably cooperate with the Company and the Affiliated Group to obtain such a protective order or other remedy.  If such order or other remedy is not obtained prior to the time the Executive is required to make the disclosure, then unless the Company waives compliance with the provisions hereof, the Executive shall disclose only that portion of the confidential or proprietary 

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information which the Executive is advised by counsel (either the Executive’s or the Company’s) in writing that the Executive is legally required to so disclose.  Upon the Termination Date, the Executive shall promptly return to the Company all records, files, memoranda, correspondence, notebooks, notes, reports, customer lists, drawings, plans, documents, and other documents and the like relating to the business of the Company and the Affiliated Group or containing any Confidential Information relating to the Company and the Affiliated Group or that the Executive used, prepared or came into contact with during the course of the Executive’s employment with the Company and the Affiliated Group, and all keys, credit cards and passes, and such materials shall remain the sole property of the Company and/or the Affiliated Group, as applicable; provided however, that Executive may keep his cell phone and cell phone number.  The Executive agrees to represent in writing to the Company on the Termination Date that the Executive has complied with the foregoing provisions of this Section 10(a).
		
	(b)
	Work Product and Inventions.  The Company and/or its nominees or assigns shall own all right, title and interest in and to the Developments, whether or not patentable, that were reduced to practice or registrable under patent, copyright, trademark or other intellectual property law anywhere in the world, made, authored, discovered, reduced to practice, conceived, created, developed or otherwise obtained by the Executive (alone or jointly with others) during the Executive’s employment with the Company and the Affiliated Group, and arising from or relating to such employment or the business of the Company or of other member of the Affiliated Group (whether during business hours or otherwise, and whether on the premises of using the facilities or materials of the Company or of other members of the Affiliated Group or otherwise).  On or prior to the Termination Date, the Executive shall promptly and fully disclose to the Company and to no one else all Developments, and hereby assigns to the Company without further compensation all right, title and interest the Executive has or may have in any Developments, and all patents, copyrights, or other intellectual property rights relating thereto, and agrees that the Executive has not acquired and shall not acquire any rights during the course of the Executive’s employment with the Affiliated Group or thereafter with respect to any Developments.

		
	(c)
	Non-Solicitation of Affiliated Group Employees.  The Executive shall not, at any time during the Restricted Period, without the prior written consent of the Company, directly or indirectly, solicit, recruit, or employ (whether as an employee, officer, agent, consultant or independent contractor) any person who is or was at any time during the previous twelve months, an employee, representative, officer or director of the Company or any member of the Affiliated Group.  Further, during the Restricted Period, the Executive shall not take any action that could reasonably be expected to have the effect of directly encouraging or inducing any person to cease their relationship with the Company or any member of the Affiliated Group for any reason.  A general employment advertisement by an entity of which the Executive is a part 

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or an application for a position with such entity through no action of Executive, directly or indirectly, will not constitute solicitation or recruitment. 
		
	(d)
	Non-Competition.  In consideration of the benefits contemplated in Section 2 through Section 8 herein to be provided by the Company to the Executive, the Executive agrees as follows:

		
	(i)
	Areas Other Than Louisiana.  Except with respect to competition in the State of Louisiana, or with respect to competition in or above the waters off the State of Louisiana in the areas specified in subparagraph (B) of Section 10(d)(ii) of this Agreement, during the Restricted Period, the Executive shall not, either directly or indirectly, compete with the business of the Company anywhere in the world where the Company or any member of the Affiliated Group conducts business by (1) becoming an officer, agent, employee, partner or director of any other corporation, partnership, limited liability company or other entity, or otherwise render services (including consulting or advisory services) to or assist or hold an interest (except as a less than 2-percent shareholder of a publicly traded corporation or as a less than 5-percent shareholder of a corporation that is not publicly traded) in any business similar to the business of the Company or any member of the Affiliated Group, or from soliciting for such similar business the customers of the business of the Company or any member of the Affiliated Group, or (2) soliciting, servicing, or accepting the business of (A) any active customer of the Company or any member of the Affiliated Group, or (B) any person or entity who is or was at any time during the previous twelve months a customer of the Company or any member of the Affiliated Group, provided that such business is competitive with any business of the Company or any member of the Affiliated Group.  Company and Executive agree only the following entities are competitive or similar business: CHC Group (including any advisors, creditors’ committees, trustees, or other entities related to CHC Group’s chapter 11 bankruptcy reorganization), Avincis Group, PHI Group, Era Group, Omni Group, Lider Taxi Aerero S/A—Air Brasil, Cougar Helicopters Inc., Westar Aviation Services SDN BHD, Caverton Helicoptors Limited, NHV Group, HNZ Global, Babcock International Group PLC, AAR Corp., Milestone Aviation Group, Waypoint Leasing Limited, Lobo Leasing Limited, and any other entity that is a successor to the business of any of the foregoing listed companies.  The provisions of Article 10(d)(i) shall not apply to any other entity.

		
	(ii)
	Louisiana.  With respect to competition in the State of Louisiana, or with respect to competition in or above the waters specified in subparagraph (B) of this Section 10(d)(ii).

		
	A.
	Executive, during the Restricted Period, agrees to refrain from carrying on or engaging in a business similar to the business of the 

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Company or any member of the Affiliated Group, or from soliciting for such similar business the customers of the business of the Company or any member of the Affiliated Group, within the Parishes of Lafayette, Vermillion, Cameron, Iberia, St. Mary, Plaquemines, Terrebonne, Lafourche, St. Bernard, Orleans, Calcasieu and Jefferson in the State of Louisiana, so long as the Company or any member of the Affiliated Group carries on a like business therein during the Restricted Period; and
		
	B.
	Executive, during the Restricted Period, agrees to refrain from carrying on or engaging in a business similar to the business of the Company or any member of the Affiliated Group or from soliciting for such similar business the customers of the business of the Company or any member of the Affiliated Group in or above the waters of the Gulf of Mexico adjacent to the Parishes of Lafayette, Vermillion, Cameron, Iberia, St. Mary, Plaquemines, Terrebonne, Lafourche, St. Bernard, Orleans, Calcasieu and Jefferson in the State of Louisiana, so long as the Company or any member of the Affiliated Group carries on a like business therein during the Restricted Period. 

		
	C.
	All non-capitalized terms in subparagraphs (A) and (B) of this Section 10(d)(ii) are intended to and shall have the same meanings that those terms (to the extent they appear therein) have in La. R.S. 23:921.C.  Subject to and only to the extent not inconsistent with the foregoing sentence, the Parties understand the following phrases to have the following meanings: 

		
	(1) 
	The phrases “carrying on or engaging in a business similar to the business of the Company or any member of the Affiliated Group” and “any business similar to the business of the Company or any member of the Affiliated Group” includes and is limited to engaging, as principal, agent, trustee, or through the agency of any corporation, partnership, limited liability company, association or agent or agency, in any business that conducts an offshore oil and gas helicopter or fixed wing service business in competition with the Company or any member of the Affiliated Group or being the owner (except as a less than 2-percent direct shareholder of a publicly traded corporation or as a less than 5-percent direct shareholder of a corporation that is not publicly traded) of any interest in any corporation or other entity, or an officer, director, or employee of any corporation or other entity (other than the Company or any member of the Affiliated Group), or a member or employee or any partnership, or employee of any other business that conducts an offshore oil and gas 

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helicopter or fixed wing service business in competition with the Company or any member of the Affiliated Group.  Moreover, the term also includes (i) directly or indirectly inducing any current customers of the Company or any member of the Affiliated Group to patronize any offshore oil and gas helicopter or fixed wing service business in competition with the Company or any member of the Affiliated Group; (ii) canvassing or soliciting any offshore oil and gas helicopter service business of the type conducted by the Company or any member of the Affiliated Group; (iii) directly or indirectly requesting or advising any current customers of the Company or any member of the Affiliated Group to withdraw, curtail or cancel such customer’s offshore oil and gas helicopter or fixed wing service business with the Company or any member of the Affiliated Group; or (iv) directly or indirectly disclosing to any other person, firm, corporation or entity, the names and addresses of any of the current customers of the Company or any member of the Affiliated Group.  In addition, the term includes, directly or indirectly, through any person, firm, association, corporation, limited liability company or other entity with which Executive is now or may hereafter become associated, causing or inducing any present employee of the Company or any of the Affiliated Group to leave the employ of the Company or any of the Affiliated Group to accept employment with the Executive or with such person, firm, association, corporation, limited liability company or other entity. 
		
	(2)
	The phrase “a similar business to the business of the Company or any member of the Affiliated Group” means an offshore oil and gas helicopter or fixed wing service business.

		
	(3)
	The phrase “carries on a like business” includes, without limitation, actions taken by or through a wholly-owned subsidiary or other affiliated corporation or entity. 

		
	(4)
	Company and Executive agree only the following entities are a similar or like business as defined in Article 10(d)(ii)(C) (2) and (3): CHC Group (including any advisors, creditors’ committees, trustees, or other entities related to CHC Group’s chapter 11 bankruptcy reorganization), Avincis Group, PHI Group, Era Group, Omni Group, Lider Taxi Aerero S/A—Air Brasil, Cougar Helicopters Inc., Westar Aviation Services SDN BHD, Caverton Helicoptors Limited, NHV Group, HNZ Global, Babcock International Group PLC, AAR Corp., 

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Milestone Aviation Group, Waypoint Leasing Limited, Lobo Leasing Limited, and any other entity that is a successor to the business of any of the foregoing listed companies.  The provisions of Article 10(d)(i) shall not apply to any other entity.
		
	D.
	Notwithstanding any other provision of this Agreement, Section 10(d)(ii) of this Agreement shall not apply with respect to any geographic area outside of the geographic territory expressly set forth in this Section 10(d)(ii). 

		
	(e)
	Assistance.  The Executive agrees that after the Termination Date, upon request by the Company, the Executive will assist the Company and the Affiliated Group in the defense of any claims, or potential claims that may be made or threatened to be made against the Company and/or any member of the Affiliated Group in any Proceeding, and will assist the Company and the Affiliated Group in the prosecution of any claims that may be made by the Company and/or any member of the Affiliated Group in any Proceeding, to the extent that such claims may relate to the Executive’s employment or the period of the Executive’s employment by the Company.  The Executive agrees, unless precluded by law, to promptly inform the Company if the Executive is asked to participate (or otherwise become involved) in any Proceeding involving such claims or potential claims.  The Executive also agrees, unless precluded by law, to promptly inform the Company if the Executive is asked to assist in any investigation (whether governmental or otherwise) of the Company and/or any member of the Affiliated Group (or their actions), regardless of whether a lawsuit has then been filed against the Company and/or any member of the Affiliated Group with respect to such investigation.  The Executive agrees to fully and completely cooperate with any investigations conducted by or on behalf of the Company and for any member of the Affiliated Group from time to time.  The Company agrees to reimburse the Executive for all of the Executive’s reasonable out-of-pocket expenses associated with such assistance, including travel expenses and any attorneys’ fees, and shall pay a per diem fee of $500 per hour (the “Per Diem Rate”) for the Executive’s service.  In addition, the Executive agrees to provide such services as are reasonably requested by the Company to assist any successor to the Executive in the transition of duties and responsibilities to such successor.  Any services or assistance contemplated in this Section 10(e) shall be at mutually agreed to and convenient times and paid at the Per Diem Rate.

		
	(f)
	Remedies.  The Executive acknowledges and agrees that the terms of this Section 10 (i) are reasonable in geographic and temporal scope and (ii) are necessary to protect legitimate proprietary and business interests of the Company in, inter alia, near permanent customer relationships and confidential information.  The Executive further acknowledges and agrees that (x) the Executive’s breach of the provisions of this Section 10 will cause the Company irreparable harm, which cannot be adequately compensated by money damages, and (y) if the Company elects to prevent 

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the Executive from breaching such provisions by obtaining an injunction against the Executive, there is a reasonable probability of the Company’s eventual success on the merits.  The Executive consents and agrees that if the Executive commits any such breach or threatens to commit any breach, the Company shall be entitled to temporary and permanent injunctive relief from a court of competent jurisdiction, in addition to, and not in lieu of, such other remedies as may be available to the Company for such breach, including the recovery of money damages.  If any of the provisions of this Section 10 are determined to be wholly or partially unenforceable, the Executive hereby agrees that this Agreement or any provision hereof may be reformed so that it is enforceable to the maximum extent permitted by law.  If any of the provisions of this Section 10 are determined to be wholly or partially unenforceable in any jurisdiction, such determination shall not be a bar to or in any way diminish the Company’s right to enforce any such provisions in any other jurisdiction.
11.    Miscellaneous.
(a)    Dispute Resolution.  In the event of any dispute or controversy relating to or arising under this Agreement, including any challenges to the validity hereof, the parties hereto mutually consent to the exclusive jurisdiction of the state courts in the State of Texas and of the federal courts within Texas.  In the event any of the provisions of this Agreement or the application of any such provisions to the parties hereto with respect to their obligations, shall be held by a court of competent jurisdiction to be contrary to the laws of the State of Texas or federal law, the remaining provisions of the Agreement shall remain in force and effect.  TO THE EXTENT NOT PROHIBITED BY APPLICABLE LAW, THE PARTIES HERETO KNOWINGLY, VOLUNTARILY, AND INTENTIONALLY WAIVE ANY RIGHT TO TRIAL BY JURY THAT SUCH PARTY MAY HAVE IN ANY ACTION OR PROCEEDING, IN LAW OR IN EQUITY, IN CONNECTION WITH THIS AGREEMENT.  Executive acknowledges that by agreeing to this provision, he knowingly and voluntarily waives any right he may have to a jury trial based on any claims he has, had, or may have against the Company, including any right to a jury trial under any local, municipal, state or federal law including, without limitation, claims under Title VII of the Civil Rights Act of 1964, the Americans With Disabilities Act of 1990, the Age Discrimination In Employment Act of 1967, the Older Workers Benefit Protection Act, the Texas Commission on Human Rights Act, claims of harassment, discrimination or wrongful termination, and any other statutory or common law claims.
(b)    Governing Law.  This Agreement is entered into under, and shall be governed, interpreted and enforced for all purposes by, the laws of the State of Texas, without regard to conflicts of laws principles thereof.
(c)    Entire Agreement.  Except as specifically set forth herein, this Agreement contains the entire agreement and understanding between the parties hereto and supersedes any prior or contemporaneous written or oral agreements, representations and warranties between them respecting the subject matter hereof.

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(d)    Amendment.  This Agreement may be amended only by a writing signed by Executive and by a duly authorized representative of the Company.
(e)    Tax Withholding; Right of Offset.  The Company may withhold and deduct from any benefits and payments made or to be made pursuant to this Agreement (a) all federal, state, local and other taxes as may be required pursuant to any law or governmental regulation or ruling, (b) all other normal deductions made with respect to the Company’s employees generally, and (c) any advances made to Executive and owed to the Company.
(f)    Assignability.  The Company shall have the right to assign this Agreement and its rights hereunder, in whole or in part.  Executive shall not have any right to pledge, hypothecate, anticipate, or in any way create a lien upon any amounts provided under this Agreement, and no payments or benefits due hereunder shall be assignable in anticipation of payment either by voluntary or involuntary acts or by operation of law.
(g)    Severability.  It is the desire of the parties hereto that this Agreement be enforced to the maximum extent permitted by law, and should any provision contained herein be held unenforceable by a court of competent jurisdiction, the parties hereby agree and consent that such provision shall be reformed to create a valid and enforceable provision to the maximum extent permitted by law; provided, however, if such provision cannot be reformed, it shall be deemed ineffective and deleted herefrom without affecting any other provision of this Agreement.  This Agreement should be construed by limiting and reducing it only to the minimum extent necessary to be enforceable under then applicable law.
(h)    Construction.  The headings and captions of this Agreement are provided for convenience only and are intended to have no effect in construing or interpreting this Agreement.  The language in all parts of this Agreement shall be in all cases construed according to its fair meaning and not strictly for or against the Company or Executive.  
(i)    Counterparts.  This Agreement may be executed in two or more counterparts, each of which will be deemed an original, and all of which together will constitute one document.
(j)    Nonwaiver.  No failure or neglect of either party hereto in any instance to exercise any right, power or privilege hereunder or under law shall constitute a waiver of any other right, power or privilege or of the same right, power or privilege in any other instance.  All waivers by either party hereto must be contained in a written instrument signed by the party to be charged and, in the case of the Company, by an officer of the Company (other than Executive) or other person duly authorized by the Company.
(k)    Notices.  Any notice, request, consent or approval required or permitted to be given under this Agreement or pursuant to law shall be in writing, and effective upon receipt if to Executive at his  residence, 6042 Rose Street, Houston, Texas 77007, or to the Company’s principal office, as the case may be.

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(l)    Section 409A.
(i)    Interpretation.  Each payment under this Agreement is intended to be (1) exempt from Section 409A of the Code, the regulations and other binding guidance promulgated thereunder (“Section 409A”), including, but not limited to, by compliance with the short-term deferral exemption as specified in Treas. Reg. § 1.409A-1(b)(4), or (2) compliant with Section 409A, and the provisions of this Agreement will be administered, interpreted and construed accordingly.  Payments under this Agreement in a series of installments shall be treated as a right to receive a series of separate payments for purposes of Section 409A.
(ii)    Separation from Service.  Executive shall be considered to have incurred a “separation from service” with the Company and its affiliates within the meaning of Treas. Reg. § 1.409A-1(h)(1)(ii) as of the Termination Date.  
(iii)    Specified Employee.  Notwithstanding any other provision in this Agreement to the contrary, payments and benefits payable under this Agreement due to a “separation from service” within the meaning of Section 409A that are deferred compensation subject to (and not otherwise exempt from) Section 409A that would otherwise be paid or provided during the six-month period commencing on the date of Executive’s “separation from service” within the meaning of Section 409A, shall be deferred until the first business day after the date that is six (6) months following Executive’s “separation from service” within the meaning of Section 409A.
(iv)    Reimbursements.  To the extent that reimbursements or other in-kind benefits under this Agreement constitute “nonqualified deferred compensation” for purposes of Section 409A, (1) all expenses or other reimbursements hereunder shall be made on or prior to the last day of the second taxable year following Executive’s “separation from service” pursuant to Treasury Regulation § 1.409A-1(b)(9)(iii)(B), (B) any right to reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another benefit, and (C) no such reimbursement, expenses eligible for reimbursement, or in-kind benefits provided in any taxable year shall in any way affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other taxable year.
(v)    Unfunded Status.  Amounts payable pursuant to this Agreement are intended to be unfunded for purposes of Section 409A.  Although bookkeeping accounts may be established with respect to payments due under the Agreement, any such accounts shall be used merely as a bookkeeping convenience.  No provision of this Agreement shall require the Company to purchase assets, place assets in a trust or segregate assets in connection with amounts due under the Agreement.  Any obligation of the Company to Executive under this Agreement shall be based solely upon any contractual obligations that may be created by this Agreement.

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(m)    No Duty to Mitigate.  In no event shall Executive be obligated to seek other employment or take any other action by way of mitigation of the amounts payable to Executive under any of the provisions of this Agreement and such amounts shall not be reduced whether or not Executive obtains other employment.
(n)    Director’s and Officer’s Insurance.  The Company shall provide Executive with Director’s and Officer’s insurance coverage, including indemnification, on terms no less favorable than the terms of the coverage provided to similarly situated current and former directors and officers of the Company.  In the event this Section 11(n) is challenged (other than by Executive or Executive’s representatives), Executive’s reasonable expenses incurred in connection therewith shall be reimbursed by the Company. 
(o)    Non-Disparagement.  The Company agrees that it will refrain from disclosing, communicating or publishing any Disparaging Information about Executive to third parties, whether such disclosures, communications, or publications are made on behalf of the Company directly or indirectly through its affiliates or its or their respective officers, directors or employees.  Disparaging Information shall have the same definition as contained in Exhibit B, Release, article 4.
[Execution Page Follows]

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IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the date set forth below, but effective as of the Effective Date.

BRISTOW GROUP INC. (“COMPANY”)

By:                                     Date: ____________, 2016    
Name: Jonathan E. Baliff  
Title: President, Chief Executive Officer and Director

K. JEREMY AKEL (“EXECUTIVE”)

By:                                      Date: ____________, 2016
        K. Jeremy Akel

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EXHIBIT A
Outstanding Equity and Performance Cash Awards
1. Options
 
	
																	
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	Grant Date
	 
	Option Price
	 
	 
	Options Remaining Exercisable
	 
	 
	Options Unvested as
of the Effective Date
and Accelerating on
the Termination Date
	 
	 
	 Option
        Expiration
	 

	5/25/2012
	 
	$
	43.38
	 
	 
	 
	15,045
	 
	 
	 
	 
	 
	 
	 
	6/19/2017
	 

	6/6/2013
	 
	$
	62.65
	 
	 
	 
	16,751
	 
	 
	 
	5,584
	 
	 
	 
	6/19/2017
	 

	6/4/2014
	 
	$
	74.37
	 
	 
	 
	24,491
	 
	 
	 
	16,328
	 
	 
	 
	6/19/2017
	 

	6/4/2015
	 
	$
	58.17
	 
	 
	 
	49,146
	 
	 
	 
	49,146
	 
	 
	 
	6/19/2017
	 

2. Restricted Stock Units (RSUs)
 
	
									
	 
	 
	 
	 
	 
	 
	 
	 
	 

	Grant Date
	 
	RSUs
Granted
	 
	 
	RSUs Subject to Accelerated Vesting
	 

	6/6/2013
	 
	 
	6,365
	 
	 
	 
	6,365
	 

	6/4/2014
	 
	 
	5,902
	 
	 
	 
	5,902
	 

	6/4/2015
	 
	 
	9,327
	 
	 
	 
	9,327
	 

3. Performance Cash Awards
 
	
								
	Grant Date
	 
	Actual Amount

	6/6/2013
	 
	

	$549,356.81
	

	 
	 
	 

	Grant Date
	 
	Target Amount

	6/4/2014
	 
	$
	439,189
	

	 
	 
	 

	6/4/2015
	 
	$
	548,986
	

	 
	 
	 

	

	 
	 
	 
	 
	 

Page A-1

EXHIBIT B
RELEASE
Pursuant to the terms of the Separation Agreement and Release In Full effective as of April 18, 2016, between Bristow Group Inc. (the “Company”) and me (the “Separation Agreement”) and the Amended and Restated Severance Benefits Agreement dated as of April 10, 2012 between the Company and me (the “Employment Agreement”), and in consideration of the payments made to me and other benefits to be received by me pursuant thereto, I, K. Jeremy Akel, do freely and voluntarily enter into this RELEASE (the “Release”), which shall become effective and binding on the eighth day following my signing this Release as provided herein (the “Waiver Effective Date”).  It is my intent to be legally bound, according to the terms set forth below. 
In exchange for the payments and other benefits to be provided to me by the Company pursuant to Section 2 through Section 8 of the Separation Agreement (the “Separation Benefits”), I hereby agree and state as follows:
1.    I, individually and on behalf of my heirs, personal representatives, successors, and assigns, release, waive, and discharge the Company, its predecessors, successors, parents, subsidiaries, merged entities, operating units, affiliates, divisions, insurers, administrators, trustees, and the agents, representatives, officers, directors, shareholders, employees and attorneys of each of the foregoing (hereinafter “Released Parties”), from all claims, debts, liabilities, demands, obligations, promises, acts, agreements, costs, expenses, damages, actions, and causes of action, whether in law or in equity, whether known or unknown, suspected or unsuspected, arising from my employment and termination from employment with the Company, including but not limited to any and all claims pursuant to Title VII of the Civil Rights Act of 1964, as amended by the Civil Rights Act of 1991 (42 U.S.C. § 2000e, et seq.), which prohibits discrimination in employment based on race, color, national origin, religion or sex; the Civil Rights Act of 1866 (42 U.S.C. §§1981, 1983 and 1985), which prohibits violations of civil rights; the Age Discrimination in Employment Act of 1967, as amended, and as further amended by the Older Workers Benefit Protection Act (29 U.S.C. §621, et seq.), which prohibits age discrimination in employment; the Employee Retirement Income Security Act of 1974, as amended (29 U.S.C. § 1001, et seq. ), which protects certain employee benefits; the Americans with Disabilities Act of 1990, as amended (42 U.S.C. § 12101, et seq.), which prohibits discrimination against the disabled; the Family and Medical Leave Act of 1993 (29 U.S.C. § 2601, et seq.), which provides medical and family leave; the Fair Labor Standards Act (29 U.S.C. § 201, et seq.), including the wage and hour laws relating to payment of wages; and all other federal, state and local laws and regulations prohibiting employment discrimination.  This Release also includes, but is not limited to, a release of any claims for breach of contract, including breach of the Employment Agreement, mental pain, suffering and anguish, emotional upset, impairment of economic opportunities, unlawful interference with employment rights, defamation, intentional or negligent infliction of emotional distress, fraud, wrongful termination, wrongful discharge in violation of public policy, breach of any express or implied covenant of good faith and fair dealing, that the Company has dealt with me unfairly or in bad faith, and all other common law contract and tort claims.
Notwithstanding the foregoing, I am not waiving any rights or claims under the Separation Agreement or the Employment Agreement or that may arise after this Release is signed by me.  Moreover, this Release does not apply to any claims or rights which, by operation of law, cannot be waived, including the right to file an administrative charge or participate in an administrative investigation or proceeding; however, by signing this Release I disclaim and waive any right to share or participate in any monetary award resulting from the prosecution of such charge or investigation or proceeding.  Nothing in this Release shall affect in any way my rights of indemnification and directors and officers liability insurance 

Page B-1

coverage provided to me pursuant to the Company’s (or any Company affiliate’s or subsidiary’s) certificate of incorporation, by-laws or other constituent documents, and/or pursuant to any other agreements or policies including, without limitation, directors’ and officers’ insurance policies in effect prior to the effective date of my termination of employment or service to the Company, which shall continue in full force and effect, in accordance with their terms, following the Waiver Effective Date.  Nothing in this Release shall affect my rights as a shareholder of the Company.  Nothing in this release will affect my vested benefits under any pension benefit plan or any benefits that are vested or any claim accrued under the terms of a health benefit plan.
2.    I forever waive and relinquish any right or claim to reinstatement to active employment or service with the Company, its affiliates, subsidiaries, divisions, parent, and successors.  I further acknowledge that the Company has no obligation to rehire or return me to active duty or service at any time in the future.
3.    I acknowledge that all agreements applicable to my employment respecting non-competition, non-solicitation, non-recruitment, and the confidential or proprietary information of the Company shall continue in full force and effect as described in the Separation Agreement.
4.    I agree for a period  of one year from the Waiver Effective Date not to, directly or indirectly, disclose, communicate, or publish any intentionally disparaging, negative, harmful, or disapproving information, written communications, oral communications, electronic or magnetic communications, writings, oral or written statements, comments, opinions, facts, or remarks, of any kind or nature whatsoever (collectively, “Disparaging Information”), concerning or related to any of the Released Parties. I understand and acknowledge that this non-disparagement clause prevents me from disclosing, communicating, or publishing, directly or indirectly, any Disparaging Information concerning or related to the Released Parties. Further, I acknowledge that in executing this Agreement, I have knowingly, voluntarily, and intelligently waived any free speech, free association, free press or First Amendment to the United States Constitution (including, without limitation, any counterpart or similar provision or right under the Texas Constitution or any other state constitution which may be deemed to apply) rights to disclose, communicate, or publish Disparaging Information concerning or related to the Released Parties. I also understand and agree that I have had a reasonable period of time to consider this non-disparagement clause, to review the non-disparagement clause with my attorney, and to consent to this clause and its terms knowingly and voluntarily. I further acknowledge that this non-disparagement clause is a material term of this Agreement. If I breach this paragraph 4, the Company will not be limited to a damages remedy, but may seek all other equitable and legal relief including, without limitation, a temporary restraining order, temporary injunctive relief, a permanent injunction, and its attorneys’ fees and costs, against me and any other persons, individuals, corporations, businesses, groups, partnerships or other entities acting by, through, under, or in concert with me. I further acknowledge that if I breach this paragraph 4 or Section 10 of the Separation Agreement, the Company shall have no further obligation to pay or provide any unpaid Separation Benefits.  Nothing in this Waiver and Release shall, however, be deemed to prevent me from testifying fully and truthfully in response to a subpoena from any court or from responding to investigative inquiry from any governmental agency or during interviews of audit committee counsel related to or in anticipation of government investigations.
5.    I hereby acknowledge and affirm as follows:
(a)    I have been advised to consult with an attorney prior to signing this Release.
(b)    I have been extended a period of 45 days in which to consider this Release.

Page B-2

(c)    I understand that for a period of seven days following my execution of this Release, I may revoke the Release by notifying the Company, in writing, of my desire to do so.  I understand that after the seven-day period has elapsed and I have not revoked this Release, it shall then become effective and enforceable.
(d)    Except as provided in the Separation Agreement, I acknowledge that I have received payment for all wages and other compensation due up to the Termination Date, including any reimbursement for any and all business related expenses.  I further acknowledge that the Separation Benefits are consideration to which I am not otherwise entitled under any Company plan, program, or prior agreement.
(e)    I certify that I have returned all property of the Company, including but not limited to, laptops, i-pads, handheld devices, keys, credit and fuel cards, parking and building passes, files, lists, and documents of all kinds regardless of the medium in which they are maintained.
(f)    I have carefully read the contents of this Release and I understand its contents.  I am executing this Release voluntarily, knowingly, and without any duress or coercion.
(g)    I have been informed in writing in the attached Schedule A to this Release of: (1) the unit of individuals considered for termination and offered a payment and benefits package in exchange for a waiver and release, (2) the eligibility factors for the offer, (3) the time limits applicable, (4) the job titles and ages of all individuals eligible or selected for the package, and (5) the ages of all individuals in the same job classification or organizational unit who are not selected or eligible for the payment and benefits package;
6.    I acknowledge that this Release shall not be construed as an admission by any of the Released Parties of any liability whatsoever, or as an admission by any of the Released Parties of any violation of my rights or of any other person, or any violation of any order, law, statute, duty or contract.
7.    In the event that any provision of this Release should be held void, voidable, or unenforceable, the remaining portions shall remain in full force and effect.
8.    I hereby declare that this Release and the Separation Agreement constitute the entire and final settlement between me and the Company, superseding any and all prior agreements, including the Employment Agreement, and that the Company has not made any promise or offered any other agreement, except those expressed in this Release and the Separation Agreement, to induce or persuade me to enter into this Release.
9.    I understand that in order to be effective this Release must be executed by me, without subsequent revocation, and delivered to the Company such that the Waiver Effective Date occurs on or before the date that is forty-five days after the Termination Date, as prescribed in the Agreement.

Page B-3

IN WITNESS WHEREOF, I have signed this Release on the __ day of ____, 2016.

	
			
	 
	 
	 

	 
	 
	K. Jeremy Akel

	 
	 
	 

	 
	 
	 

	Witness
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	 

	Name:
	 
	 

	Date:
	 
	 

Page B-4

Schedule A
(A)    The decisional unit is officers of the Company at the vice president level and above.  
(B)    Three employees were selected for employment termination and are being offered a payment and benefits package in exchange for a waiver and release agreement.  To accept the package, the terminated employee must sign before a witness and return the waiver and release agreement to the Company within forty-five (45) days of the date of termination. After a signed and witnessed copy of the waiver and release indicating acceptance of the offer has been returned to the Company, the employee will then have 7 days to revoke the waiver and release agreement and must do so by delivering a written statement of revocation to which must be received no later than the close of business on the 7th day after acceptance.
(C)    The following is a listing of the ages of such officers who were released from employment and received the offer of a payment and benefits package in exchange for signing a waiver and release agreement and a listing of the ages of such officers who were not so released.
	
			
	Age of officer
	# Released
	# Not Released

	42
	0
	1

	43
	0
	1

	44
	0
	1

	47
	1
	0

	48
	0
	1

	52
	0
	1

	53
	0
	1

	55
	0
	1

	58
	1
	2

	59
	0
	2

	60
	0
	1

	64
	1
	0

Page B-5ebcvoltdeferredcompensat

#4831-7758-3153                                                               VOLT INFORMATION SCIENCES, INC.   DEFERRED COMPENSATION AND SUPPLEMENTAL SAVINGS PLAN   (Amended and Restated Effective June 8, 2016)   PLAN DOCUMENT     

 

   #4831-7758-3153 i       VOLT INFORMATION SCIENCES, INC. DEFERRED COMPENSATION AND   SUPPLEMENTAL SAVINGS PLAN   TABLE OF CONTENTS   Page   ARTICLE I ESTABLISHMENT AND PURPOSE ........................................................................1   1.1 Establishment and Restatement ...............................................................................1   1.2 Purpose .....................................................................................................................1   1.3 Application of Plan ..................................................................................................2   ARTICLE II DEFINITIONS AND CONSTRUCTION..................................................................3   2.1 Definitions................................................................................................................3   2.2 S6.1   everability ............................................................................................................................9   ARTIC6.8   LE III PARTICIPATION ................................................................................................................9   3.1 Eligibility .................................................................................................................9   3.2 Participation .............................................................................................................9   ARTICLE IV SUPPLEMENTAL SAVINGS BENEFITS ...........................................................10   4.1 Supplemental Savings Amount ..............................................................................10   4.2 Determination of Supplemental Savings Amount .................................................10   4.3 Complete Discretion of the Committee .................................................................10   ARTICLE V DEFERRAL AMOUNTS; DEFERRAL ELECTIONS ...........................................10   5.1 Types of Deferral Amounts ...................................................................................10   5.2 Salary Deferral Election .........................................................................................10   5.3 Bonus Deferral Election .........................................................................................11   5.4 Director Fees Deferral Election .............................................................................12   5.5 RSU Deferral Election ...........................................................................................13   5.6 Deferral and Payment Elections .............................................................................14   5.7 Employment Taxes ................................................................................................15   5.8 Automatic Cancellation of Deferral Elections upon Receipt of Unforeseen   Emergency or Hardship Withdrawal .....................................................................15   ARTICLE VI PAYMENT OF BENEFITS ...................................................................................15   6.1 Time of Payment of Deferral Amounts .................................................................16     

 

Table of Contents   (continued)   Page      #4831-7758-3153 ii       6.2 Forms of Payment of Deferral Amounts ................................................................17   6.3 Change in Time or Form of Payment ....................................................................17   6.4 Distribution of Vested Accounts for an Unforeseeable Emergency Need ............17   10.16.5 .................................................................................................................................... Death   Benefits ..................................................................................................................18   6.6 Withholding of Taxes ............................................................................................19   6.7 Cash-Out Distribution ............................................................................................19   6.8 Method of Calculation of Payments ......................................................................19   6.9 Administrative Deferral of Payments; Frequency of Payments ............................19   ARTICLE VII ACCOUNTS; CREDITED INCOME ...................................................................20   7.1 Participant Accounts ..............................................................................................20   7.2 Investment Options; Crediting of Income..............................................................20   7.3 Nature of Account Entries .....................................................................................21   7.4 Vesting ...................................................................................................................21   7.5 Account Statements ...............................................................................................21   7.6 Expenses Charged to Accounts ..............................................................................21   ARTICLE VIII ADMINISTRATION OF THE PLAN .................................................................22   8.1 Plan Administrator .................................................................................................22   8.2 Rules; Claims for Benefits .....................................................................................22   8.3 Finality of Determinations .....................................................................................24   8.4 Agreement to Arbitrate Disputes ...........................................................................24   8.5 Indemnification ......................................................................................................25   8.6 Delegation to Benefits Coordinating Committee ...................................................25   ARTICLE IX FUNDING ..............................................................................................................25   9.1 Funding ..................................................................................................................25   ARTICLE X AMENDMENT; TERMINATION; MERGER .......................................................26   10.1 Amendment and Termination ................................................................................26   10.2 Change of Control ..................................................................................................27   10.3 Automatic Payment of Taxable Benefit .................................................................27   ARTICLE XI GENERAL PROVISIONS .....................................................................................27     

 

Table of Contents   (continued)   Page      #4831-7758-3153 iii       11.1 Beneficiary Designation.........................................................................................27   11.2 Effect on Other Plans .............................................................................................28   11.3 Nontransferability ..................................................................................................28   11.4 Plan Not an Employment or Service Contract .......................................................28   11.5 Applicable Law ......................................................................................................28        

 

   #4831-7758-3153   VOLT INFORMATION SCIENCES, INC.   DEFERRED COMPENSATION AND SUPPLEMENTAL SAVINGS PLAN   ARTICLE I   ESTABLISHMENT AND PURPOSE   1.1 Establishment and Restatement.   (a) By document dated December 7, 1998, Volt Information Sciences, Inc. (the   “Company”) established a non-qualified deferred compensation program (the “Plan”) for a select   group of its highly-compensated and/or management employees.  The effective date of the Plan   was April 1, 1997.   (b) This Plan was restated in its entirety effective as of December 31, 2008 as   it relates to any compensation, benefits or other remuneration which is provided pursuant to the   Plan.  It was contemplated that all Plan Accounts (as defined below) will be subject to Section   409A of the Internal Revenue Code of 1986, as amended (the “Code”).  The effective date of this   restatement of the Plan was December 31, 2008.  The rights of any participants in the Plan   (“Participants”) as of and from December 31, 2008 was to be governed by the Plan as restated   herein, as it may be further amended and restated from time to time; provided, however, that except   where contrary to Section 409A of the Code or where expressly otherwise provided in the Plan or   by the Committee pursuant to the Plan in a manner consistent with Section 409A of the Code,   benefit payments and payment elections in effect on December 31, 2008 were to remain in effect   as elected or scheduled, as the case may be. This document shall be known as the Volt Information   Sciences, Inc. Deferred Compensation and Supplemental Savings Plan.   (c) Under the terms of the restated Plan, eligible employees were permitted to   defer a portion of their income into the Plan.  The Company also desired to enhance the security   of the Plan by providing that Plan assets could be held and invested by the trustee (“Trustee”) to be   appointed by the Company, pursuant to the terms of the Volt Information Sciences, Inc. Deferred   Compensation and Supplemental Savings Trust (the “Trust”).  To the extent Plan assets are held   in the Trust, the Trustee will invest the Plan’s assets with the goal of achieving the hypothetical   investment returns credited to Participants in accordance with Article VII hereof.  Payments to the   Participants shall be made first from the Trust and second by the Company to the extent that the   Trust’s assets are not sufficient.   (d) This document now restates the Plan in its entirety effective as of June 8,   2016.  Under the terms of the restated Plan (as set forth herein), non-employee directors will be   permitted to defer a portion of their income into the Plan.  Additionally, eligible employees and   non-employee directors will be permitted to defer the receipt of common stock otherwise payable   under certain equity awards that such eligible employees or non-employee directors may receive   under the Company’s equity incentive programs.  The remaining terms of the Plan shall remain in   effect to the same extent as set forth prior to this restated Plan.   1.2 Purpose.  The objective and purpose of the Plan is to attract competent directors,   employees and key personnel by offering flexible compensation opportunities to such directors,   employees and key personnel of the Company, and to provide them an opportunity to build an     

 

   2   #4831-7758-3153   estate or supplement income for use after retirement.  The Plan is also intended to compensate   certain Participants for amounts that cannot be credited to the Participant’s accounts under the Volt   Information Sciences, Inc. Savings Plan (the “Savings Plan”) and the Volt Technical Services   Savings Plan (the “Technical Plan”) by reason of the provisions of Sections 401(a)(17), 401(k),   402(g), and/or 415 of the Code and the corresponding provisions of the Savings Plan and/or the   Technical Plan or by reason of the Participant’s election to participate hereunder.   1.3 Application of Plan.   (a) The Plan shall be applicable only with respect to (i) non-employee members   (“Directors”) of the Board of Directors of the Company (the “Board of Directors”) and (ii) eligible   key employees and key personnel of the Company.  The Plan and Trust are intended to be a “plan   which is unfunded and is maintained by the employer primarily for the purpose of providing   deferred compensation for a select group of management or highly compensated employees,”   within the meaning of Sections 201(2), 301(a)(3), and 401(a)(1) of the Employee Retirement   Income Security of 1974, as amended (“ERISA”), and shall be interpreted and administered   accordingly.  As such, the Plan shall be exempt from the participation, vesting and funding   requirements of Parts 2 and 3 of Title I of ERISA and shall be subject to the limited reporting and   disclosure requirements (under Part 1 of Title I of ERISA) applicable to such plans.   (b) The Plan and Trust are also intended to comply with Section 409A of the   Code and shall be interpreted and administered accordingly.   (i) As such, any deferral of compensation and any payment provided   pursuant to or in connection with the Plan shall be provided and paid in a manner, and at such time   and in such form, as complies with the applicable requirements of Section 409A of the Code to   avoid a plan failure described in Section 409A(a)(1) of the Code, including without limitation,   deferring payment until the occurrence of a specified payment event described in Section   409A(a)(2) of the Code and deferring payment of Plan benefits to a Participant who is a specified   employee at his or her separation from service for six months after his separation from service or,   if earlier, his or her death and to avoid the unfavorable tax consequences provided therein for non-   compliance.  Notwithstanding any other provision of any plan, program or arrangement (including   without limitation the Plan) or document pertaining to any compensation, benefit or other   remuneration subject to the provisions of Section 409A of the Code, each provision of any plan,   program or arrangement (including without limitation the Plan) or document relating to the   provision of such compensation, benefit or other remuneration to or with respect to a Participant   under this Plan, shall be so construed and interpreted.   (ii) It is specifically intended that all elections, consents and   modifications thereto under the Plan will comply with the requirements of Section 409A of the   Code (including any transition or grandfather rules thereunder).  The Committee (as defined   below) is authorized to adopt rules or regulations deemed necessary or appropriate to anticipate   and/or comply the requirements of Section 409A of the Code (including any transition or   grandfather rules thereunder).     

 

   3   #4831-7758-3153   ARTICLE II   DEFINITIONS AND CONSTRUCTION   2.1 Definitions. Whenever used in the Plan, the following terms shall have the meaning   set forth below unless otherwise expressly provided:   (a) “Accounts” means the recordkeeping accounts which are maintained under   the name of a Participant to account for any Salary Deferral Amounts, Bonus Deferral Amounts,   Supplemental Savings Amounts, Director Fees Deferral Amounts, RSU Deferral Amounts and   Credited Income thereon, which may be credited from time to time.   (i) Salary Deferral Account - a separate subaccount maintained to   account for a Participant’s Salary Deferral amount plus Credited Income thereon.   (ii) Bonus Deferral Account - a separate subaccount maintained to   account for a Participant’s Bonus Deferral Amount plus Credited Income thereon.   (iii) Supplemental Savings Account - a separate subaccount maintained   to account for a Participant’s Supplemental Savings Amount plus Credited Income thereon.   (iv) Director Fees Deferral Account – a separate subaccount maintained   to account for a Participant’s Director Fees Deferral Amount plus Credited Income thereto.   (v) RSU Deferral Account – a separate subaccount maintained to   account for a Participant’s RSU Deferral Amounts plus Credited Income thereon.   In its sole and exclusive discretion, the Committee may combine, aggregate or separately   state all or any combination of the above Accounts or subaccounts in any manner and for any   administrative purpose it may deem fit provided, however, no such combination shall impair the   purposes of the Plan.   (b) “Affiliate” means the Employer and each of the following business entities   or other organizations (whether or not incorporated) which during the relevant period is treated   (but only for the portion of the period so treated and for the purpose and to the extent required to   be so treated) together with the Employer as a single employer pursuant to the following sections   of the Code (as modified where applicable by Section 415(h) of the Code):   (i) Any corporation which is a member of a controlled group of   corporations (as defined in Section 414(b) of the Code) which includes the Employer, or   (ii) Any trade or business (whether or not incorporated) which is under   common control (as defined in Section 414(c) of the Code) with the Employer.   (iii) In order to identify the group of entities described in the preceding   sentences, however, the Committee shall use an ownership threshold of at least fifty percent (50%)   as a substitute for the eighty percent (80%) minimum ownership threshold that appears in, and   otherwise must be used when applying, the applicable provisions of (x) Section 1563 of the Code   for determining a controlled group of corporations under Section 414(b) of the Code and (y) Treas.     

 

   4   #4831-7758-3153   Reg. Section 1.414(c)-2 for determining the trades or businesses that are under common control   under Section 414(c) of the Code.   (c) “Beneficiary” means the person, persons or trust designated by a   Participant as provided in Section 11.1, or designated as a beneficiary under the terms of Section   11.1.   (d) “Benefits Coordinating Committee” shall mean the Benefits   Coordinating Committee that has been established in accordance with Section 8.6 by the   Committee serving as the Plan Administrator of the Plan.   (e) “Board of Directors” means the Board of Directors of the Company.   (f) “Bonus” means any commission, incentive or other bonus award which an   Eligible Employee may become eligible to receive.   (g) “Bonus Deferral Amount” means that portion of an Eligible Employee’s   Bonus which he or she has elected to defer, as provided in Section 5.3.   (h) “Change of Control” shall be deemed to have occurred if:   (i) any “person” as such term is used in Sections 13(d) and 14(d) of the   Securities and Exchange Act of 1934 (the “Exchange Act”) other than the Company, any trustee   or other fiduciary holding securities under any employee benefit plan of the Company, or any   company owned, directly or indirectly, by the stockholders of the Company in substantially the   same proportions as their ownership of stock of the Company), acquires (or has acquired during   the twelve (12) month period ending on the date of the most recent acquisition by such person) or   beneficial ownership (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of   securities of the Company representing 30% or more of the combined voting power of the   Company’s then outstanding securities;   (ii) during any period of twelve (12) consecutive months individuals   who at the beginning of such period constitute the Board, and any new director (other than a   director designated by a person who has entered into an agreement with the Company to effect a   transaction described in clause (i), (iii), or (iv) of this Section 2.1(g)) whose election by the Board   or nomination for election by the Company’s stockholders was approved by a vote of at least two-   thirds of the directors then still in office who either were directors at the beginning of the twelve   (12) consecutive month period or whose election or nomination for election was previously so   approved, cease for any reason to constitute at least a majority of the Board of Directors; or   (iii) the stockholders of the Company approve a merger or consolidation   of the Company with any other corporation, other than a merger or consolidation which would   result in the voting securities of the Company outstanding immediately prior thereto continuing to   represent (either by remaining outstanding or by being converted into voting securities of the   surviving entity) more than 80% of the combined voting power of the voting securities of the   Company or such surviving entity outstanding immediately after such merger or consolidation;   provided, however, that a merger or consolidation effected to implement a recapitalization of the   Company (or similar transaction) in which no person acquires more than 30% of the combined     

 

   5   #4831-7758-3153   voting power of the Company’s then outstanding securities shall not constitute a Change of Control   of the Company.   (i) “Code” means the Internal Revenue Code of 1986, as amended from time   to time.   (j) “Committee” means the Administrative Committee for Retirement   Programs that administers the Plan in accordance with Section 8.1, as such committee of persons   may be appointed by the Compensation Committee from time to time.  The Committee shall serve   as plan administrator, within the meaning of ERISA.   (k) “Common Stock” means the Common Stock, $0.10 par value per share, of   the Company.   (l) “Company” means Volt Information Sciences, Inc.   (m) “Compensation Committee” means the Company’s Human Resources and   Compensation Committee.   (n) “Credited Income” means the assumed earnings credited to a Participant’s   Account, as provided in Sections 7.2.   (o) “Deferral Amounts” means Salary Deferral Amounts, Supplemental   Savings Amounts, Bonus Deferral Amounts, Director Fees Deferral Amounts, and/or RSU Deferral   Amounts, as more fully described in Article V.   (p) “Deferral Payment Date” means the payment date, as specified by a   Participant on his or her Salary Deferral Amount, Bonus Deferral Amount, Director Fees Deferral   Amount or RSU Deferral Amount election form, on which he or she elects to have his or her   applicable amount paid or commence being paid.   (q) “Director” means a member of the Board of Directors of the Company or   the Board of Directors of any Affiliate, provided that (i) “Director” only includes a member of the   Board of Directors of an Affiliate if the Board of Directors of the Company designates such   members as eligible to participate in the Plan and (ii) “Director” may not also be an employee of   the Company or any Affiliate.   (r) “Director Fees” mean any retainer, advisory, committee or meeting fees   payable to the Director by the Company or an Affiliate, before reductions for contributions to or   deferrals under this or any other deferred compensation or benefit plan sponsored by the Company   or any Affiliate.   (s) “Director Fees Deferral Amount” means that portion of a Director’s   Director Fees which he or she has elected to defer, as provided in Section 5.4.   (t) “Dividend Equivalents” mean the dividends paid in cash or other property   on actual shares of Common Stock that are credited as assumed earnings to the Participant’s RSU   Deferral Account.  The amount of Dividend Equivalents to be credited shall be determined by the     

 

   6   #4831-7758-3153   Committee or its delegate based on the dividends the Participant’s RSU Deferral Account would   receive if it held actual shares of Common Stock equal in number to the Stock Units credited to   the Participant’s RSU Deferral Account on the record date of the actual dividend.  The Dividend   Equivalents shall constitute the right to receive additional shares of Common Stock by converting   any dividends paid in cash or other property into Stock Units based upon the closing price of the   Common Stock as of the date the dividends otherwise would have been paid if the RSU Deferral   Account held actual shares of Common Stock equal to the Stock Units credited to the Participant’s   RSU Deferral Account on the record date of the actual dividend.   (u) “Eligible Employee” means a key employee of the Company or an Affiliate   whose anticipated annual earnings (or rate of annual earnings) for the year is not less than the   dollar amount in effect for the year for determining “highly compensated employees” under   Section 414(q) of the Code (or any higher amount set by the Committee) and who is a United   States resident paid on a United States payroll and who has been selected by the Committee.   (v) “Employer(s)” shall be defined as follows:   (i) Except as otherwise provided in clause (ii) below, the term   “Employer” means the Company and/or any Affiliate (now in existence or hereafter formed or   acquired) which the Committee selects.   (ii) For the purpose of determining whether a Participant has   experienced a Separation from Service, the term “Employer” means:   (A) The entity for which the Participant performs services and with   respect to which the legally binding right to compensation deferred   or contributed under this Plan arises; and   (B) All other entities with which the entity described above which are   its Affiliates.   (w) “Equity Incentive Plan” means any equity-based incentive plan of the   Company pursuant to which Directors and/or Eligible Employees may be awarded Restricted   Stock Units.   (x) “Investment Options” means the optional forms of determining Credited   Income with respect to Participants’ Accounts, which the Committee, in its discretion, may elect   to establish pursuant to Section 7.2.   (y) “Participant” means (i) an Eligible Employee who has elected, under the   terms and conditions of the Plan, to defer payment of all or a portion of his or her bonus, salary   and/or RSUs, and/or who is credited with a Supplemental Savings Amount, and (ii) a Director who   has elected, under the terms and conditions of the Plan, to defer payment of all or a portion of his   or her Director Fees and/or RSUs.  A Participant who is not currently an Eligible Employee or a   Director but whose Account under this Plan is credited with a balance shall be referred to as an   “Inactive Participant.”  The term “Participant” shall include Eligible Employees, former Eligible   Employees, employees other than Eligible Employees, Directors and former Directors so long as   any such individual has a balance credited to his or her Account.     

 

   7   #4831-7758-3153   (z) “Performance-Based Compensation” means compensation the   entitlement to or amount of which is contingent on the satisfaction of pre-established   organizational or individual performance criteria relating to a performance period of at least twelve   (12) consecutive calendar months, as determined by the Committee in accordance with Treas. Reg.   Section 1.409A-1(e).   (aa) “Plan” means the Volt Information Sciences, Inc. Deferred Compensation   and Supplemental Savings Plan as set forth herein, and as it may be amended from time to time.   (bb) “Plan Year” means the 12-month period beginning each January 1 and   ending December 31 of such year.   (cc) “Plan Year Quarter” means the three (3) month periods in each Plan Year   ending on March 31, June 30, September 30 and December 31, respectively.   (dd) “Qualified Plan” means the Volt Information Sciences, Inc. Savings Plan   (sometimes referred to as the Savings Plan), or the Volt Technical Services Savings Plan   (sometimes referred to as the Technical Plan), as the case may be, as each such plan may be   amended from time to time.   (ee) “Restricted Stock Units” or “RSUs” means a restricted stock unit award,   stated with respect to a specified number of shares of Common Stock, that entitles the Participant   to receive one share of Common Stock with respect to each restricted stock unit that becomes   payable under the terms and conditions of the Company’s applicable Equity Incentive Plan and   the applicable award agreement.   (ff) “RSU Deferral Amount” means that portion of a Participant’s Restricted   Stock Units which he or she has elected to defer, as provided in Section 5.5.   (gg) “Salary Deferral Amount” means that portion of an Eligible Employee’s   Base Salary which he or she has elected to defer, as provided in Section 5.2.   (hh) “Separation from Service” or “Separate from Service” means a   termination of services provided by a Participant to the Employer, whether voluntarily or   involuntarily, other than by reason of death, as determined by the Committee in accordance with   Treas. Reg. Section 1.409A-1(h).  In determining whether a Participant has experienced a   Separation from Service, the following provisions shall apply:   (i) For a Participant who provides services to an Employer as an   employee, except as otherwise provided in clause (iii) below, a Separation from Service shall occur   when such Participant has experienced a termination of employment with such Employer.  A   Participant shall be considered to have experienced a termination of employment when the facts   and circumstances indicate that the Participant and his or her Employer reasonably anticipate that   either (A) no further services will be performed for the Employer after a certain date, or (B) that   the level of bona fide services the Participant will perform for the Employer after such date   (whether as an employee or as an independent contractor) will permanently decrease to less than   50% of the average level of bona fide services performed by such Participant (whether as an   Employee or an independent contractor) over the immediately preceding thirty-six (36) month     

 

   8   #4831-7758-3153   period (or the full period of services to the Employer if the Participant has been providing services   to the Employer less than thirty-six (36) months).   If a Participant is on military leave, sick leave, or other bona fide leave of   absence, the employment relationship between the Participant and the Employer shall be treated   as continuing intact, provided that the period of such leave does not exceed six (6) months, or if   longer, so long as the Participant retains a right to reemployment with the Employer under an   applicable statute or by contract.  If the period of a military leave, sick leave, or other bona fide   leave of absence exceeds six (6) months and the Participant does not retain a right to reemployment   under an applicable statute or by contract, the employment relationship shall be considered to be   terminated for purposes of this Plan as of the first day immediately following the end of such six   (6)-month period.  In applying the provisions hereof, a leave of absence shall be considered a bona   fide leave of absence only if there is a reasonable expectation that the Participant will return to   perform services for the Employer.   (ii) For a Participant who provides services to an Employer as an   independent contractor, except as otherwise provided in (iii) below, a Separation from Service   shall occur upon the expiration of the contract (or in the case of more than one contract, all   contracts) under which services are performed for such Employer, provided that the expiration of   such contract(s) is determined by the Committee to constitute a good-faith and complete   termination of the contractual relationship between the Participant and such Employer.   (iii) For a Participant who provides services to an Employer as both an   employee and an independent contractor, a Separation from Service generally shall not occur until   the Participant has ceased providing services for such Employer as both as an employee and as an   independent contractor, as determined in accordance with the provisions set forth in clause (i) and   (ii) above, respectively.  Similarly, if a Participant either (A) ceases providing services for an   Employer as an independent contractor and begins providing services for such Employer as an   employee, or (B) ceases providing services for an Employer as an employee and begins providing   services for such Employer as an independent contractor, the Participant will not be considered to   have experienced a Separation from Service until the Participant has ceased providing services for   such Employer in both capacities, as determined in accordance with the applicable provisions set   forth in (i) and (ii) above.   Notwithstanding the foregoing provisions in this clause (iii), if a Participant   provides services for an Employer as both an employee and as a member of the board of directors   (a “Director”), to the extent permitted by Treas. Reg. Section 1.409A-1(h)(5) the services provided   by such Participant as a Director shall not be taken into account in determining whether the   Participant has experienced a Separation from Service as an employee, and the services provided   by such Participant as an employee shall not be taken into account in determining whether the   Participant has experienced a Separation from Service as a Director.   (ii) “Stock Unit” means a bookkeeping entry representing the equivalent of one   share of Common Stock that is payable in accordance with the terms of this Plan.  A Stock Unit   will be credited to the Participant’s RSU Deferral Account for each actual share of Common Stock   deferred under the Plan at the same time as the actual shares of Common Stock otherwise would     

 

   9   #4831-7758-3153   have been paid to the Participant in connection with the Participant’s Restricted Stock Units absent   the deferral election.   (jj) “Supplemental Savings Amount” means the amount creditable to the   Supplemental Savings Account of an Eligible Employee pursuant to Sections 4.2 and 4.3.   (kk) “Trust” means the trust, if any, established in connection with the Plan.   (ll) “Trustee” means the trustee of the Trust.   2.2 Severability.  In the event any provision of the Plan shall be held invalid or illegal   for any reason, any illegality or invalidity shall not affect the remaining parts of the Plan, but the   Plan shall be construed and enforced as if the illegal or invalid provision had never been inserted,   and the Company shall have the privilege and opportunity to correct and remedy such questions of   illegality or invalidity by amendment as provided in the Plan.   ARTICLE III   PARTICIPATION   3.1 Eligibility.  The Committee shall provide each Director and Eligible Employee   with notice of his or her status as a Participant, so as to permit such Director or Eligible Employee   the opportunity to make the elections provided for under Article V, if applicable. Subject to the   limitations of the Plan, such notice may be given at such time and in such manner as the Committee   may determine from time to time, and shall advise the Director and Eligible Employee of the time   and manner for filing his or her election for which he or she qualifies. Each Director and Eligible   Employee shall be eligible to participate in all features of the Plan for which he or she qualifies.   In addition, Eligible Employees (but not Directors) shall be eligible (subject to the complete   discretion of the Committee) to receive credit for a Supplemental Savings Amount for Plan Years   that they are Eligible Employees.   3.2 Participation.   (a) In General. Subject to the limitations of the Plan, a Director or Eligible   Employee shall become a Participant in this Plan for the calendar year for which: (i) the Committee   timely receives his or her deferral election pursuant to Article V or (ii) with respect to an Eligible   Employee, the Committee credits the Eligible Employee with a Supplemental Savings Amount.   (b) Cessation of Status as Director or Eligible Employee.  If an Eligible   Employee with a Salary Deferral Amount, Bonus Deferral Amount and/or RSU Deferral Amount   election in effect for a particular calendar year, or a Director with a Director Fees Deferral Amount   and/or RSU Deferral Amount election in effect for a particular calendar year, terminates   employment or service or otherwise ceases to be an Eligible Employee or Director, as applicable,   during such Plan Year, his or her election shall continue in effect with respect to any Salary   Deferral Amount, Bonus Deferral Amount and RSU Deferral Amount previously elected for an   Eligible Employee and any Director Fees Deferral Amount and RSU Deferral Amount previously   elected for a Director (including on rehire or otherwise re-commencing service in the same   calendar year).     

 

   10   #4831-7758-3153   ARTICLE IV   SUPPLEMENTAL SAVINGS BENEFITS   4.1 Supplemental Savings Amount.  Each Eligible Employee shall be credited with a   Supplemental Savings Amount as provided in Sections 4.2 and 4.3.  Directors shall not be eligible   to be credited with Supplemental Savings Amounts.   4.2 Determination of Supplemental Savings Amount.  Each Eligible Employee may   be credited with a Supplemental Savings Amount on the last day of each Plan Year Quarter in the   sole discretion of the Committee with approval of the Board of Directors.  The amount (or the   method or formula for determining the amount) of each Supplemental Savings Amount shall be   set forth in writing in one or more documents, which shall be deemed to be incorporated into the   Plan, no later than the date on which such Supplemental Savings Amount is credited to the   Participant’s Supplemental Savings Account.   4.3 Complete Discretion of the Committee.  The Committee shall be under no   obligation to make any Supplemental Savings Amount awards and in the event that such awards   are made the Committee shall be under no obligation to make similar award to similarly-situated   Eligible Employees. No party shall have any claim or cause of action as a result of having not   received a Supplemental Savings Amount.   ARTICLE V   DEFERRAL AMOUNTS; DEFERRAL ELECTIONS   5.1 Types of Deferral Amounts.  There are three types of Deferral Amounts which   may be applicable to a Participant under the Plan who is an Eligible Employee:  Salary Deferral   Amounts as described in Section 5.2, Bonus Deferral Amounts as described in Section 5.3 and   RSU Deferral Amounts as described in Section 5.5.  There are two types of Deferral Amounts   which may be applicable to a Participant under the Plan who is a Director: Director Fees Deferral   Amounts as described in Section 5.4 and RSU Deferral Amounts as described in Section 5.5.   5.2 Salary Deferral Election.   (a) Salary Deferral Amount.  An Eligible Employee may elect to defer all or   any portion of 20% of his or her Base Salary (as hereinafter defined) which he or she may be entitled   to receive from the Company. For purposes of this Section 5.2, Base Salary is a Participant’s   regular gross salary that is subject to Social Security Tax pursuant to Internal Revenue Code Section   3100 et. seq. Notwithstanding anything contained herein to the contrary, if a deferral hereunder   would otherwise result in the Participant’s Base Salary not equaling or exceeding the Social   Security Contribution and Benefit Base as defined in Section 230 of the Social Security Act, then   only the regular gross salary exceeding the Social Security Contribution and Benefit Base as defined   in Section 230 of the Social Security Act shall be deferred pursuant to this Section. The amount to   be so deferred shall be specified in such manner as shall be determined by the Committee.   (b) Election of Salary Deferral Amount.  To make an election of a Salary   Deferral Amount for any calendar year, the Eligible Employee must file a deferral election form   with the Committee in accordance with such rules as are set by the Committee, but in no event   later than the last business day of the calendar year preceding the calendar year for which the     

 

   11   #4831-7758-3153   election is made. Each such election shall be made with respect to a specific calendar year and all   payroll periods applicable to the Eligible Employee which begin within such calendar year. An   election filed for a calendar year shall only be applicable for such calendar year.   (c) Treatment of New Eligible Employees Who Are New Hires.   Notwithstanding the foregoing, if an individual first becomes an Eligible Employee on or after the   first day of a calendar year that is both the individual’s first year of eligibility to participate in the   Plan and the calendar year in which the individual is first hired by an Affiliate (excluding for this   purpose any rehire or transfer among Affiliates after the year of first hire), such Eligible Employee   may make a Salary Deferral Amount election for the remaining payroll periods of such calendar   year prior to the beginning of the payroll period for which the employment services are performed   so long as deferral election is filed with the Committee no later than thirty (30) days after the   effective date of coverage under the Plan and only defers compensation for services performed in   pay periods after the pay period in which the election is effective and irrevocable.  For this purpose:   (i) An Eligible Employee’s “first year of eligibility” is the year in which   he first becomes eligible to participate in any account balance type deferred compensation plan   within the meaning of Section 409A of the Code maintained by the Employer or any Affiliate.   (ii) Even though otherwise permitted by Section 409A, if all amounts   owed to the Eligible Employee from all account balance plans maintained by the Employer and its   Affiliates subject to Section 409A of the Code have been paid to the Eligible Employee and if the   Eligible Employee has become ineligible to accrue further benefits, then if he thereafter becomes   an Eligible Employee, the year in which he again becomes an Eligible Employee shall not be   treated as his first year of eligibility.   (iii) Even though otherwise permitted by Section 409A, if a Participant   is not an Eligible Employee for at least twenty-four (24) consecutive months, then if he thereafter   becomes an Eligible Employee, the year in which he again becomes an Eligible Employee shall   not be treated as his first year of eligibility.   5.3 Bonus Deferral Election.   (a) Bonus Deferral Amount.  An Eligible Employee may elect to defer up to   50% of any Bonus he or she may be awarded by the Company, provided, however that the total   amount deferred in any Plan Year may not exceed 20% of his or her combined Base Salary and   Bonus. The amount to be so deferred shall be specified in such manner as shall be determined by   the Committee.  However, in no event may an Eligible Employee elect to defer any portion of any   Bonus unless the aggregate compensation payments made by the Company to him after such   deferral during the calendar year will equal or exceed the Social Security Contribution and Benefit   base as defined in Section 230 of the Social Security Act.   (b) Election of Bonus Deferral Amount.  To make an election of a Bonus   Deferral Amount, the Eligible Employee must file a deferral election form with the Committee.   Each such election shall be made with respect to a calendar year and shall apply to all Bonus awards   made by the Company which are made with respect to services performed within such calendar   year.  To make an effective Bonus Deferral Amount election for a calendar year, the Eligible     

 

   12   #4831-7758-3153   Employee must file the appropriate deferral election form with the Committee in accordance with   such rules as are set by the Committee, but in no event later than the last business day of the   calendar year preceding the Plan Year for which the election is made.   (c) Treatment of New Eligible Employee Who Are New Hires.    Notwithstanding the foregoing, if an individual first becomes an Eligible Employee on or after the   first day of a calendar year that is both the individual’s first year of eligibility to participate in the   Plan and the calendar year in which the individual is first hired by an Affiliate (excluding for this   purpose any rehire or transfer among Affiliates after the year of first hire), such Eligible Employee   may make a Bonus Deferral Amount election for such calendar year only prior to the beginning of   the payroll period for which the employment services are performed so long as deferral election is   filed with the Committee no later than thirty (30) days after the effective date of coverage under   the Plan and only defers compensation for services performed in pay periods after the pay period   in which the election becomes effective and irrevocable. For this purpose:   (i) An Eligible Employee’s “first year of eligibility” is determined in   the same manner as provided in Section 5.2(c).   (ii) Bonus compensation based on a performance period (such as an   annual bonus) is deemed earned ratably throughout the period for which earned.   5.4 Director Fees Deferral Election.   (a) Director Fees Deferral Amount.  A Director may elect to defer all or any   portion of his or her Director Fees which he or she may be entitled to receive from the Company.    The amount to be so deferred shall be specified in such manner as shall be determined by the   Committee.   (b) Election of Director Fees Deferral Amount.  To make an election of a   Director Fees Deferral Amount for any calendar year, the Director must file a deferral election   form with the Committee in accordance with such rules as are set by the Committee, but in no   event later than the last business day of the calendar year preceding the calendar year for which   the election is made. Each such election shall be made with respect to a specific calendar year and   all periods or events applicable to the Director which provide for the payment of such Director   Fees and begin within such calendar year. An election filed for a calendar year shall only be   applicable for such calendar year.   (c) Treatment of New Directors.  Notwithstanding the foregoing, if a Director   becomes newly eligible to participate in the Plan on or after the first day of a calendar year that is   both the individual’s first year of eligibility to participate in the Plan and the calendar year in which   the individual is first elected as a Director (excluding for this purpose any re-election after the year   first elected), such Director may make a Directors Fees Deferral Amount election with respect to   any Director Fees that are payable for services performed in the calendar year following the date   on which the Director Fees Deferral Amount election is effective and irrevocable so long as the   deferral election is filed with the Committee no later than thirty (30) days after the effective date   of coverage under the Plan and only defers compensation for services performed in periods after   the period in which the election becomes effective and irrevocable.  For this purpose:     

 

   13   #4831-7758-3153   (i) Director’s “first year of eligibility” is the year in which he first   becomes eligible to participate in any account balance type deferred compensation plan within the   meaning of Section 409A of the Code maintained by the Employer or any Affiliate.   (ii) Even though otherwise permitted by Section 409A, if all amounts   owed to the Director from all account balance plans maintained by the Employer and its Affiliates   subject to Section 409A of the Code have been paid to the Director and if the Director has become   ineligible to accrue further benefits, then if he thereafter becomes a Director, the year in which he   again becomes a Director shall not be treated as his first year of eligibility.   (iii) Even though otherwise permitted by Section 409A, if a Participant   is not a Director for at least twenty-four (24) consecutive months, then if he thereafter becomes a   Director, the year in which he again becomes a Director shall not be treated as his first year of   eligibility.   (iv) An individual serving as a Director on the effective date of the Plan   shall be eligible to participate in the Plan as if the individual was first elected as a Director and   became newly-eligible under the Plan as of the effective date of the Plan.   5.5 RSU Deferral Election.   (a) RSU Deferral Amount.  Both Directors and Eligible Employees may elect   to defer all or any portion of any Common Stock he or she otherwise might receive under his or   her Restricted Stock Units.  The amount to be so deferred shall be specified in such manner as   shall be determined by the Committee.   (b) Election of RSU Deferral Amount.  To make an election of an RSU   Deferral Amount, the Director or Eligible Employee must file a deferral election form with the   Committee in accordance with such rules as are set by the Committee, but in no event later than   the last business day of the calendar year preceding the calendar year in which the RSUs are   granted and the related period of service commences.  Each such election shall be made with   respect to the Restricted Stock Units granted in such specific calendar year and all periods of   service applicable to the Director or Eligible Employee which begin with such calendar year.  An   election filed for a calendar year shall only be applicable for such calendar year.   (c) Treatment of Performance-Based Compensation.  Notwithstanding the   foregoing, subject to the limitations described below, the Committee may determine that an   irrevocable deferral election for an amount that qualifies as Performance-Based Compensation   may be made by submitting an election on or before the deadline established by the Committee,   which in no event shall be later than six (6) months before the end of the performance period.  In   order for the Eligible Employee or Director to be eligible to make a deferral election for   Performance-Based Compensation, the Participant must have performed services continuously   from the later of (i) the beginning of the performance period for such compensation, or (ii) the date   upon which the performance criteria for such compensation are established, through the date upon   which the Participant makes the deferral election for such compensation. In no event shall a   deferral election hereunder be permitted to apply to any amount of Performance-Based   Compensation that has become readily ascertainable.     

 

   14   #4831-7758-3153   (d) Treatment of Compensation Subject to Risk of Forfeiture.    Notwithstanding the foregoing, with respect to compensation (i) to which a Participant has a   legally binding right to payment in a subsequent year, and (ii) that is subject to a forfeiture   condition requiring the Participant's continued services for a period of at least twelve (12) months   from the date the Participant obtains the legally binding right, the Committee may determine that   an irrevocable deferral election for such compensation may be made by timely delivering an   election to the Committee in accordance with its rules and procedures, no later than the 30th day   after the Participant obtains the legally binding right to the compensation, provided that the   election is made and becomes irrevocable at least twelve (12) months in advance of the earliest   date at which the forfeiture condition could lapse, as determined in accordance with Treas. Reg.   Section 1.409A-2(a)(5).  Any deferral election(s) made in accordance with this Section 5.5(d) shall   become irrevocable no later than the 30th day after the Participant obtains the legally binding right   to the compensation subject to such deferral election(s).   (e) Deferral of Dividends.  An election under this Section 5.5 to defer   Restricted Stock Units shall also be considered an election to defer any Dividend Equivalents that   are payable in connection with such Restricted Stock Units and upon any related Stock Units   credited to the Participant’s RSU Deferral Account (except to the extent the deferral election is not   timely under Section 409A of the Code with respect to such Dividend Equivalents, in which case   such Dividend Equivalents will not be deferred and credited to the Participant’s RSU Deferral   Account but will be paid as set forth in the applicable award agreement).  The Dividend   Equivalents to be deferred shall be awarded in the form of Stock Units (dividends awarded in cash   or other property shall be converted by the Company to Stock Units) and allocated to the   Participant’s RSU Deferral Account at the same time as such applicable dividend is payable to   shareholders generally.  The Dividend Equivalents will be treated consistently with the deferral   election for the Restricted Stock Units with respect to which the Dividend Equivalents relate.   5.6 Deferral and Payment Elections.  All deferral elections, as provided under   Section 5.2, 5.3, 5.4 and 5.5, respectively, shall be made on such deferral election forms as are   prescribed by the Committee. Each election form shall specify the nature of the Deferral Amount,   the form of payment which is to be applicable with respect to such designated Deferral Amount, as   provided in Article VI, the Beneficiary or Beneficiaries to receive any death benefit applicable to   the subject amount and form of payment thereof, as provided in Sections 6.5 and 11.1 and the   Deferral Payment Date on which payment is to commence with respect to such Deferral Amount,   as provided in Article VI.  Except as otherwise provided in this Article V, all such Salary Deferral   Amount, Bonus Deferral Amount, Director Fees Deferral Amount and RSU Deferral Amount   elections shall become irrevocable for the subject calendar year once the immediately prior   calendar year has ended or as otherwise provided by the Committee. An Eligible Employee may   change or revoke his or her Salary Deferral Election under Section 5.2, his or her Bonus Deferral   Election under Section 5.3, and his or her RSU Deferral Election under Section 5.5, and a Director   may change or revoke his or her Director Fees Deferral Election under Section 5.4 and his or her   RSU Deferral Election under Section 5.5, pursuant to such rules as are set by the Committee but in   no event may any such election be amended or revoked after the last business day of the calendar   year preceding the Plan Year for which the election is made or as otherwise provided above. Only   Eligible Employees may file deferral election forms as provided for in this Section 5.6 and Sections   5.2, 5.3 and 5.5 and only Directors may file deferral election forms as provided for in this Section   5.6 and Sections 5.4 and 5.5.  Inactive Participants are not eligible to file such forms.     

 

   15   #4831-7758-3153   5.7 Employment Taxes.  Employment taxes required to be withheld on Salary, Bonus   and RSU Deferral Amounts shall be withheld from Base Salary, Bonuses, RSUs or other   compensation that is not being deferred in a manner determined by the Employer (with respect to   RSUs only to the extent permitted by the applicable Equity Incentive Plan and Section 409A of   the Code).  However, if necessary the Committee may reduce a Participant’s Base Salary Deferral   Amount, Bonus Deferral Amount and RSU Deferral Amount, as needed to comply with applicable   employment tax withholding requirements (to the extent permitted by Section 409A of the Code).   5.8 Automatic Cancellation of Deferral Elections upon Receipt of Unforeseen   Emergency or Hardship Withdrawal.   (a) A Participant’s deferral election in effect at the time of an Unforeseen   Emergency withdrawal from the Plan shall be cancelled (rather than postponed or delayed)   prospectively so that no further deferrals from his or her Salary, Bonus, Director Fees and RSUs   shall be made during the remainder of the calendar year in which the withdrawal occurred.   (b) A Participant’s deferral election in effect at the time of a 401(k) hardship   withdrawal shall be cancelled (rather than postponed or delayed) prospectively so that no further   deferrals from his Salary, Bonus, Director Fees and RSUs shall be made during the remainder of   the calendar year in which the withdrawal occurred.  Any deferral election for the succeeding   calendar year shall not be effective until the 401(k) required cancellation period ends.   (c) The Participant whose deferral election is cancelled pursuant to this Section   must file a new deferral election pursuant to the applicable provisions of the Plan in order to   commence or recommence making deferrals under the Plan from his Salary or Bonuses for any   subsequent calendar year.   (d) For purposes hereof, the following terms have the following meanings:   (i) A “401(k) hardship withdrawal” is a hardship withdrawal from the   any 401(k) Plan which requires a suspension of employee contributions and elective deferrals as a   result of receipt of the hardship withdrawal in order to satisfy the regulations under Section 401(k)   of the Code.   (ii) The “401(k) required cancellation period” means a six (6) month   period (or other stated period in the applicable 401(k) plan) during which employee contributions   and elective deferrals must be suspended as a result of receipt of a 401(k) hardship withdrawal in   order to satisfy the regulations under Section 401(k) of the Code.   (iii) A “401(k) Plan” means the any other deferred compensation plan   intended to meet the requirements of Section 401(k) of the Code and maintained by the Employer   or any other business entity or other organization (whether or not incorporated) which during the   relevant period is treated (but only for the portion of the period so treated and for the purpose and   to the extent required to be so treated) as a single employer with the Employer or any affiliate   under Section 414(b), (c), (m) or (o) of the Code.   ARTICLE VI   PAYMENT OF BENEFITS     

 

   16   #4831-7758-3153   6.1 Time of Payment of Deferral Amounts.   (a) In general, payment of a Participant’s vested Accounts under the Plan shall   be made payable on the Deferral Payment Date which shall be on the first day of the third (3rd)   Plan Year Quarter coincident with or next following the date of the Participant’s Separation from   Service.   (b) Notwithstanding the provisions of subsection 6.1(a), on each annual   deferral election for a calendar year, the Participant may designate another Deferral Payment Date   (including a specified date as permitted by the Committee) for his or her vested Accounts   attributable to deferrals for that calendar year by completing a form prescribed for such purpose   by the Committee. In completing such form, the Participant shall specify the Deferral Payment   Date on which benefit payments under the Plan are to be made or commence with respect to the   Deferral Amount covered by such deferral election. In making such designation, the Participant   may designate any January 1, April 1, July 1, or October 1 date of a specified year after the   calendar year to which the deferral election applies as a Deferral Payment Date, provided that such   Deferral Payment Date is no later than the first day of the third (3rd) Plan Year Quarter following   the fifth (5th) anniversary of the Participant’s Separation from Service and provided, further, that   where payment is contingent on the Participant’s Separation from Service, the Deferral Payment   Date can be no earlier than the first day of the third (3rd) Plan Year Quarter coincident with or   next following the date of the Participant’s Separation from Service. Where Participant has made   a designation to receive an amount in quarterly installments, as permitted under Section 6.2, his or   her Deferral Payment Date shall be the date on which the first installment payment is to be paid   and on the anniversary thereof in each subsequent years. Notwithstanding the above, each   Participant in the Plan on or before September 1, 1997, was permitted to, and may have designated,   a Deferral Payment Date no later than ten (10) years after the date of his or her Separation from   Service for deferrals made prior to 1998.  In addition, any payment time in effect on December 31,   2008 pursuant to a timely filed Participant’s election on December 31, 2008 which is based, in   whole or in part, on the Participant’s age shall be given effect so long as compliant with the time   of payment provisions of Section 409A of the Code.   (c) If for any reason the Participant fails to make an effective Deferral Payment   Date designation, his or her Deferral Payment Date for the amounts that are the subject of the   deferral election shall be the first day of the third (3rd) Plan Year Quarter coincident with or next   following the date of the Participant’s Separation from Service as set forth in subsection 6.1(a)   hereof.   (d) Payments with respect to Supplemental Savings Amounts shall be made on   the same dates and in the same manner as the Salary Deferral Amounts for the same subject   calendar year.   (e) All Deferral Amounts shall be distributable in cash or cash equivalent   except with respect to Stock Units in the RSU Deferral Account which shall be distributable in   shares of Common Stock from the Equity Incentive Plan pursuant to which the related RSUs were   granted.  Notwithstanding the foregoing, Stock Units in the RSU Deferral Account that are   attributable to Dividend Equivalents may be paid in cash if there are not sufficient shares of   Common Stock available under any Equity Incentive Plan to make such distributions in shares of     

 

   17   #4831-7758-3153   Common Stock.  Any of the Stock Units in the RSU Deferral Account, upon the consummation of   a “Change of Control” (as defined in the applicable Equity Incentive Plan), may be converted into   the right to receive cash, with such cash having a value equal to the value of an equal number of   shares of Common Stock in connection with such Change of Control.    (f) Notwithstanding anything in this Plan to the contrary, a Director shall be   eligible to receive distributions on any date permitted under Section 409A of the Code, subject to   the Director making a valid deferral election in accordance with the terms and conditions of this   Plan specifying such date.  In the event a Director is determined to be a “specified employee”   within the meaning of Section 409A of the Code at the time of his or her Separation from Service   and such Director has chosen to receive his/her distributions upon a Separation from Service, then   such Director will receive his/her distribution in accordance with Section 6.1(a).   6.2 Forms of Payment of Deferral Amounts.   (a) In General. On each deferral election form filed by a Participant, such   Participant shall specify the form of payment for the amounts attributable to the Deferral Amount   covered by such deferral election. In making such designation, the Participant may designate   payment in the form of a single lump sum payment or payment in the form of quarterly installment   payments payable for not less than two (2) but no more than five (5) years following the   Participant’s Separation from Service. Quarterly installment payments will be paid quarterly   beginning on the date specified on the applicable deferral election form or the Default Payment   Date, as provided in Section 6.1. Notwithstanding the above, Participants in the Plan on or before   September 1, 1997 were permitted to, and may have designated that payments be made in quarterly   installments for a period no less than two (2) or more than ten (10) years for deferrals made prior   to 1998.   (b) If for any reason the Participant fails to make an effective designation under   this Section 6.2 with respect to his or her benefit attributable to his or her Deferral Amounts,   payment of the amount that is the subject of the deferral election shall be made in the form of a   single lump sum payment on the Default Payment Date as specified in Section 6.1. Except as   otherwise provided in this Article VI, all benefit payments under the Plan with respect to a   Participant’s Salary Deferral Amounts, Bonus Deferral Amounts or Director Fee Deferral   Amounts, shall be made to the Participant in the payment forms as specified on his or her   applicable deferral election forms.   (c) Payments with respect to Supplemental Savings Amounts shall be made on   the same dates and in the same manner as the Salary Deferral Amounts or Director Fee Deferral   Amounts as applicable for the same subject calendar year.   6.3 Change in Time or Form of Payment.  No change in an elected or default time or   form of payment shall be permitted except as permitted by the Committee and in compliance with   Section 409A of the Code.   6.4 Distribution of Vested Accounts for an Unforeseeable Emergency Need.    Notwithstanding the provisions of Sections 6.1, 6.2 and 6.3, a Participant may receive a   distribution of his or her vested Accounts under the Plan in an amount which the Committee     

 

   18   #4831-7758-3153   determines is necessary to alleviate the financial need related to an Unforeseeable Emergency. The   Committee shall determine such financial hardship in its sole and complete discretion and any such   distribution shall be limited to the amount necessary to meet the emergency plus amounts necessary   to pay any Federal, state, local or foreign income taxes or penalties reasonably anticipated to result   from the distribution.  An “Unforeseeable Emergency” means an unforeseeable emergency as   defined in Section 409A of the Code and generally means a severe financial hardship to the   Participant resulting from an illness or accident of the Participant, the Participant’s spouse, the   Participant’s Beneficiary, or the Participant’s dependent (as defined in Section 152 of the Code,   without regard to Section 152(b)(1), (b)(2), and (d)(1)(B)) thereof), the loss of the Participant’s or   the Participant’s Beneficiary’s property due to casualty (including the need to rebuild a home   following damage to a home not otherwise covered by insurance, for example, not as a result of a   natural disaster); or other similar extraordinary and unforeseeable circumstances arising as a result   of events beyond the control of the Participant or Beneficiary or affected family member.    Distributions because of an Unforeseeable Emergency must be limited to the amount reasonably   necessary to satisfy the need (which may include amounts necessary to pay any Federal, state, local   or foreign income taxes or penalties reasonably anticipated to result from the distribution), taking in   to account the potential that the need is or may be relieved through reimbursement or compensation   by insurance or otherwise, by liquidation of the Participant’s assets, to the extent the liquidation of   such assets would not cause an Unforeseeable Emergency, or by cessation of deferrals under the   Plan (if the Plan provides for cancellation of a deferral election upon a payment due to an   Unforeseeable Emergency).  The determination of amounts reasonably necessary to satisfy the   need is not required to take into account any additional compensation that, due to the   Unforeseeable Emergency, is available under another nonqualified deferred compensation plan   but has not actually been paid, or that is available, due to the Unforeseeable Emergency, under   another plan that would provide for deferred compensation except due to the application of the   effective date provisions of Section 409A of the Code.  Distribution from vested Accounts shall   be distributed on a pro rata basis across each of the Participant’s accounts.   6.5 Death Benefits.   (a) If a Participant shall die with a balance credited to his or her Accounts, such   balance shall be paid to his or her applicable designated Beneficiary or Beneficiaries as provided   herein.   (b) With respect to all Account balances which had commenced to be paid in   the form of quarterly installment payments, but all installment payments had not been completed,   as of the Participant’s death, the remaining unpaid quarterly installment payments shall be made   to the Participant’s designated Beneficiary based on the applicable payment schedule or schedules   for the Participant in effect at his or her death.   (c) With respect to all Account balances which had not commenced to be paid   as of the Participant’s death, the then current balance of each such Account balance payable shall   be paid to the Participant’s designated Beneficiary under the form of payment as elected for such   Beneficiary, as provided for in Section 11.1, which shall be one of the same forms of payment   available to the Participant. The designation of the form of payment to a Participant’s designated   Beneficiary shall be made at the same time as the Participant elects his or her own form of payment,   may be changed only as provided in the Plan, and shall be subject to the same rules.  Unless the     

 

   19   #4831-7758-3153   Committee provides otherwise, the election of a form of payment to a Beneficiary may be made, or   changed, with respect to each annual deferral election for a calendar year, provided that if the   Committee requires the entire vested Account to be paid pursuant to one form of payment election,   then the election for the Participant’s first year of eligibility (as defined in Article V) or, if no   election is made, the following default form of payment shall apply. In the absence of a timely   filed designated form of payment to a Beneficiary, the Beneficiary shall be paid a lump sum.  Any   payment to a designated Beneficiary shall be paid in the case of a lump sum payment or commence   being paid in the case of installments to the designated Beneficiary on the first day of the first Plan   Year Quarter next following the death of the Participant.   (d) The Account of a deceased Participant whose Beneficiary is receiving   installment payments shall continue to be adjusted from time to time as provided in Section 7.2,   including, without limitation, adjustments for the crediting of Credited Income thereto. The   crediting of such Account balance shall be for bookkeeping purposes and shall not represent a   transfer or segregation of assets for the benefit of such Beneficiary, but the Beneficiary may select   such Investment Options pursuant to Section 7.2 as if the Beneficiary were a Participant.   6.6 Withholding of Taxes.  The Company and/or the Trustee of the Trust shall have   the right to deduct from all payments made under the Plan any federal, state, local or foreign taxes   required by law to be withheld with respect to such payments.   6.7 Cash-Out Distribution.  Notwithstanding the other time and form of benefit   payment provisions of this Article VI, a Participant’s vested Accounts may be cashed-out in the   discretion of the Committee in a lump sum payment in an amount equal to his or her vested   Account balance if (i) the payment will constitute a payout of the Participant’s entire interest in   this Plan and all similar arrangements that are treated as a single plan under Treas. Reg. Section   1.409A-1(c)(2), (ii) the payment is made on or before the later of December 31 of the calendar   year in which the Participant’s Separation from Service occurs or the fifteenth (15th) day of the   third (3rd) month following the Participant’s Separation from Service and (iii) the payment of the   entire payment is not over the limit set forth in Section 402(g) of the Code applicable to the Plan   Year in which the cash-out occurs.   6.8 Method of Calculation of Payments.  For purposes of computing the amount of   any distribution to a Participant or a Beneficiary, the balance in such Participant’s or Beneficiary’s   vested Account (as of the date preceding the payment date) shall be multiplied by one if the payment   is a lump sum payment or by a fraction if the payment is part of an series of installment payments,   the numerator of which equals one and the denominator of which equals the number of installments   that such Participant or Beneficiary is to receive less the number of installment payments such   Participant or Beneficiary has previously received.   6.9 Administrative Deferral of Payments; Frequency of Payments.  All payments   hereunder shall be paid on the Deferral Payment Date or successive anniversaries thereof, as the   case may be, subject to any permitted delay in payment for administrative reasons permitted under   Section 409A of the Code.  The delay of any payment for administrative purposes shall not affect   the date upon which subsequent payments become due.     

 

   20   #4831-7758-3153   ARTICLE VII   ACCOUNTS; CREDITED INCOME   7.1 Participant Accounts.  The Committee shall maintain, or cause to be maintained,   bookkeeping Accounts for each Participant for the purpose of accounting for the Participant’s   beneficial interest under the Plan.  The establishment and maintenance of separate Accounts for   each Participant shall not be construed as giving any person an interest in assets of the Company or   a right to payment other than as provided hereunder. Benefits hereunder shall constitute an   unsecured general obligation of the Company, but the Company may have created reserves held   in Trust in accordance with the terms thereof.   7.2 Investment Options; Crediting of Income.  Except as otherwise set forth herein,   the Committee shall credit Accounts with Credited Income at the rate of return generated by one   (1) or more of the Investment Options established by the Committee and selected by the   Participants. The Committee shall establish separate funds for bookkeeping purposes to measure   a hypothetical rate of return over a period designated by the Committee. The Committee may, but   need not, provide for such options as are substantially similar (if not identical) to those provided   under one or both of the Qualified Plans. Such Investment Options and the relevant funds shall be   established for bookkeeping purposes only and shall not require the establishment of actual   corresponding funds by the Committee or the Company.  Any establishment, addition or deletion   of Investment Options shall be in the sole and absolute discretion of the Committee. The   Committee shall promulgate uniform procedures applicable to all Participants for allocating and   transferring amounts credited to individual Accounts based on the performances of the various   Investment Options, and may, in its sole discretion, establish uniform procedures for Participant   suggested direction and election amongst such funds, including the designation of an Investment   Option for Participants in the absence of a Participant election.  If the Participant fails to make an   election among the Investment Options, the Participant’s Account balance will be automatically   deemed invested in the lowest-risk investment as determined by the Committee.   Notwithstanding the foregoing, a Participant’s RSU Deferral Amounts will be credited to   an Investment Option that tracks the performance of the Common Stock (the “Company Stock   Unit Fund”).   Any stock dividends, cash dividends or other non-cash dividends that would have   been payable on the Common Stock which relates to the Stock Units credited to a Participant's   Accounts shall be credited to the Participant's Accounts in the form of additional Stock Units and   shall automatically be deemed to be re-invested in the Company Stock Unit Fund (irrevocably   until such amounts are distributed to the Participant with respect to the related Restricted Stock   Units). The number of shares credited to the Participant for a particular stock dividend shall be   equal to (A) the number of shares of Common Stock credited to the Participant's Account as of the   record date for such dividend in respect of each share of Common Stock, multiplied by (B) the   number of additional or fractional shares of Common Stock actually paid as a dividend in respect   of each share of Common Stock. The number of shares credited to the Participant for a particular   cash dividend or other non-cash dividend shall be equal to (A) the number of shares of Common   Stock credited to the Participant's Account as of the record date for such dividend in respect of   each share of Common Stock, multiplied by (B) the fair market value of the dividend, divided by   (C) the "fair market value" of the Common Stock on the payment date for such dividend.  The   number of Stock Units credited to the Participant's Account may be adjusted by the Committee, in   its sole discretion, to prevent dilution or enlargement of Participants' rights with respect to the     

 

   21   #4831-7758-3153   portion of his or her Account allocated to the Company Stock Unit Fund in the event of any   reorganization, reclassification, stock split, or other unusual corporate transaction or event which   affects the value of the Stock, provided that any such adjustment shall be made taking into account   any crediting of shares of Stock to the Participant under this Section.   For purposes of this Section, the fair market value of the Common Stock shall be, in the   event the Common Stock is traded on a recognized securities exchange, an amount equal to the   closing price of the Common Stock on such exchange on the date set for valuation or, if no sales   of Common Stock were made on said exchange on that date, the closing price of the Stock on the   next preceding day on which sales were made on such exchange; or, if the Stock is not so traded,   the value determined, in its sole discretion, by the Committee in compliance with Code Section   409A.   7.3 Nature of Account Entries.  The establishment and maintenance of Participants’   Accounts shall be merely bookkeeping entries and shall not be construed as giving any person an   interest in any specific assets of the Company or of any Affiliate of the Company or Trust or a right   to payment or other than as provided hereunder. Benefits hereunder shall constitute an unsecured   general obligation of the Company, but the Company has provided for amounts to be held in trust   on the Company’s behalf under the Trust.   7.4 Vesting.   (a) A Participant shall have a fully vested and nonforfeitable beneficial interest   in the balance standing to the credit of his or her Salary Deferral, Bonus Deferral, Director Fees   Deferral and RSU Deferral as of any relevant date, subject to the conditions and limitations on the   payment of amounts credited to such Accounts as provided in the Plan.   (b) A Participant shall have a 100% vested and nonforfeitable beneficial   interest in his or her Supplemental Savings Account on the later of having attained age fifty-five   (55) and the tenth (10th) anniversary of the date of the commencement of his or her employment   with the Employer. In the event that the Participant dies while employed by the Employer, the   Participant shall have a 100% vested interest in his or her Supplemental Savings Account. In the   event that the Participant terminates employment for reasons other than death prior to having   satisfied such vesting requirement set forth in the preceding sentence, he or she shall forfeit his or   her entire interest in such Supplemental Savings Amount.  Such forfeitures shall reduce the   Company’s cost of future Supplemental Savings Amount Contributions.   7.5 Account Statements. The Committee shall provide each Participant with a   statement of the status of his or her Accounts under the Plan. The Committee shall provide such   statement annually and at such other times as the Committee may determine from time to time,   and such statement shall be in the format as presented by the Committee.   7.6 Expenses Charged to Accounts.  Notwithstanding any other provision of the Plan   to the contrary, expenses incurred in the administration of the Plan and the Trust may be charged   to Accounts on either a pro rata basis or a per capita basis, and/or may be charged to the Account   of the affected Participant(s) and Beneficiary(ies) (which term is intended to include any alternate   payee(s)) on a usage basis (rather than to all Accounts), as directed by the Committee.  Without     

 

   22   #4831-7758-3153   limiting the foregoing, some or all of the reasonable expenses attendant to the determinations   needed with respect to and making of withdrawals, the calculation of benefits payable under   different Plan distribution options, the distribution of Plan benefits and the review of a domestic   relations order to determine if it is a qualified domestic relations order and implementation of   qualified domestic relations orders may be charged directly to the Account of the affected   Participant and Beneficiary, and different rules (i.e., pro rata, per capita, or direct charge to   Accounts) may apply to different groupings of Participants and Beneficiaries.   ARTICLE VIII   ADMINISTRATION OF THE PLAN   8.1 Plan Administrator.  The Plan shall be administered by the Committee.  A   majority of the members of the Committee shall constitute a quorum and the acts of the majority   of the members present, or acts approved in writing by a majority the members without a meeting,   shall be the acts of the Committee.  The Committee shall have that authority which is expressly   stated in the Plan as vested in the Committee and as set forth in the Charter of Authority and   Responsibilities for the Volt Information Sciences, Inc. Administrative Committee for Retirement   Programs, as amended from time to time, substantially in the form attached hereto as Exhibit A,   which is hereby incorporated into this Article VIII, to make rules to administer and interpret the   Plan, to decide questions arising under the Plan, and to take such other action as may be appropriate   to carry out the purposes of the Plan.  The Committee may delegate one or more of its duties or   responsibilities under the Plan to Company officer(s) or employee(s), to a third party administrator   or the Benefits Coordinating Committee, as set forth herein, and any reference to the Committee   in the Plan shall include such delegate(s) as appropriate.   8.2 Rules; Claims for Benefits.   (a) The Committee shall adopt and establish such rules and regulations with   respect to the administration of the Plan as it deems necessary and appropriate.   (b) A Participant or Beneficiary (the “claimant”) shall have the right to request   any benefit under the Plan by filing a written claim for any such benefit with the Committee (or   its delegate) on a form provided or approved by the Committee (or its delegate) for such purpose.    The Committee (or its delegate), or a claims fiduciary appointed by the Committee, (the   “Reviewer”) shall give such claim due consideration and shall either approve or deny it in whole   or in part.  The following procedure shall apply:   (i) The Reviewer may schedule and hold a hearing.   (ii) Within ninety (90) days following receipt of such claim by the   Committee (or its delegate), notice of any approval or denial thereof, in whole or in part, shall be   delivered to the claimant or his duly authorized representative or such notice of denial shall be sent   by mail (postage prepaid) to the claimant or his duly authorized representative at the address shown   on the claim form or such individual’s last known address.  The aforesaid ninety (90) day response   period may be extended to one hundred eighty (180) days after receipt of the claimant’s claim if   special circumstances exist and if written notice of the extension to one hundred eighty (180) days   indicating the special circumstances involved and the date by which a decision is expected to be     

 

   23   #4831-7758-3153   made is furnished to the claimant or his duly authorized representative within ninety (90) days   after receipt of the claimant’s claim.   (iii) Any notice of denial shall be written in a manner calculated to be   understood by the claimant and shall:  (A) set forth a specific reason or reasons for the denial,   (B) make reference to the specific provisions of the Plan or, if applicable, other relevant   documents, records or information on which the denial is based, (C) describe any additional   material or information necessary for the claimant to perfect the claim and explain why such   material or information is necessary, and (D) explain the Plan’s claim review procedures, including   the time limits applicable to such procedures (which are generally contained in Section 8.2(c)),   and provide a statement of the claimant’s right to bring a civil action in state or federal court under   Section 502(a) of ERISA following an adverse determination on review of the claim denial.   (c) A Participant or Beneficiary whose claim filed pursuant to Section 8.2(b)   has been denied, in whole or in part, may, within sixty (60) days following receipt of notice of   such denial, make written application to the Committee (or its delegate) for a review of such claim,   which application shall be filed with the Committee (or its delegate).  For purposes of such review,   the following procedure shall apply:   (i) The Reviewer (which may be the same Reviewer as under Section   8.2(b) or a different Reviewer as determined by the Committee) may schedule and hold a hearing.   (ii) The claimant or his duly authorized representative shall be provided   the opportunity to submit written comments, documents, records, and other information relating   to the claim for benefits.   (iii) The claimant or his duly authorized representative shall be provided,   upon request in writing and free of charge, reasonable access to, and copies of, all documents,   records, and other information relevant to such claim and may submit to the Reviewer written   comments, documents, records, and other information relating to such claim.   (iv) The Reviewer shall make a full and fair review of any denial of a   claim for benefits, which shall include taking into account all comments, documents, records, and   other information submitted by the claimant or his duly authorized representative relating to the   claim, without regard to whether such information was submitted or considered in the initial   benefit determination.   (v) The decision on review shall be issued promptly, but no later than   sixty (60) days after receipt by the Committee (or its delegate) of the claimant’s request for review,   or one hundred twenty (120) days after such receipt if a hearing is to be held or if other special   circumstances exist and if written notice of the extension to one hundred twenty (120) days   indicating the special circumstances involved and the date by which a decision is expected to be   made on review is furnished to the claimant or his duly authorized representative within sixty (60)   days after the receipt of the claimant’s request for a review.   (vi) The decision on review shall be in writing, shall be delivered or   mailed by the Reviewer to the claimant or his duly authorized representative in the manner   prescribed in Section 8.2(b) for notices of approval or denial of claims, shall be written in a manner     

 

   24   #4831-7758-3153   calculated to be understood by the claimant and shall in the case of an adverse determination:    (A) include the specific reason or reasons for the adverse determination, (B) make reference to the   specific provisions of the Plan or, if applicable, other relevant documents on which the adverse   determination is based, (C) include a statement that the claimant is entitled to receive, upon request   in writing 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 (D) include a statement of the   claimant’s right to bring a civil action in state or federal court under Section 502(a) of ERISA   following the adverse determination on review.   (d) The period of time within which a benefit determination initially or on   review is required to be made shall begin at the time the claim or request for review is filed in   accordance with the procedures of the Plan, without regard to whether all the information   necessary to make a benefit determination accompanies the filing.  In the event that a period of   time is extended as permitted pursuant to this paragraph due to the failure of a claimant or his duly   authorized representative to submit information necessary to decide a claim or review, the period   for making the benefit determination shall be tolled from the date on which the notification of the   extension is sent to the claimant or his duly authorized representative until the date on which the   claimant or his duly authorized representative responds to the request for additional information.   (e) For purposes of the Plan’s claims procedure 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 in making the benefit determination, (ii) was submitted,   considered, or generated in the course of making the benefit determination, without regard to   whether such document, record, or other information was relied upon in making the benefit   determination, and (iii) demonstrates compliance with the administrative processes and safeguards   required in making the benefit determination.   (f) The Committee (or its delegate) may establish reasonable procedures for   determining whether a person has been authorized to act on behalf of a claimant.   (g) To the extent required by law, completion of the claims procedures   described in this Article VIII shall be a mandatory precondition that must be complied with prior   to the commencement of a legal or equitable action by a person claiming rights under the Plan or   the Trust. The Committee and the claimant may by mutual agreement waive these procedures as a   mandatory condition to such action.   8.3 Finality of Determinations.  Except as provided by law, all determinations of the   Reviewer to any matter arising under the Plan, including questions of construction and   interpretation shall be binding and conclusive upon all interested parties.  The Committee and the   Reviewer shall have the maximum permissible discretion to interpret the Plan, and to determine   eligibility for participation and benefits hereunder. It is intended that determinations made by the   Committee and the Reviewer shall be reviewed under a deferential “arbitrary and capricious”   standard of review.   8.4 Agreement to Arbitrate Disputes.  Any dispute, controversy or claim arising out   of, involving, affecting or related in any way to this Plan, or arising out of, involving, affecting or   related in any way to any employee’s participation thereunder, including but not limited to     

 

   25   #4831-7758-3153   disputes, controversies or claims arising out of or related to the actions of the Committee, the   Reviewer or any of the Company’s other employees, under Federal, state and/or local laws, after   first having been reviewed by the Committee and then the Reviewer under the provisions of this   Article VIII, shall be resolved by final and binding arbitration, in accordance with the applicable   rules of the American Arbitration Association in the state where the Participant is currently or last   employed by the Company or its Affiliate. The arbitrator shall be entitled to award reasonable   attorney’s fees and costs to the prevailing party. The award shall be in writing, signed by the   arbitrator, and shall provide the reasons for the award. Any Participant in accepting participation   hereunder, agrees to waive his/or her right to trial by jury in any lawsuit or cause of action   involving the Plan. Judgment upon the arbitrator’s award may be filed in and enforced by any court   having jurisdiction. This Agreement to Arbitrate Disputes does not prevent any Participant from   filing a charge or claim with any governmental administrative agency as permitted by applicable   law.   8.5 Indemnification.  To the extent permitted by law and the Company’s bylaws, the   member of the Committee and the Reviewer, their agents and delegates, and the officers, directors,   and employees of the Company shall be indemnified and held harmless by the Company against   and from any and all loss, cost, liability, or expense that may be imposed upon or may be   reasonably incurred by them in connection with or resulting from any claim, action, suit, or   proceeding to which they may be a party or in which they may be involved by reason of any action   taken or failure to act under the Plan and against and from any and all amounts paid by them in   settlement (with the Company’s written approval) or paid by them in satisfaction of a judgment in   any such action, suit or proceeding.   8.6 Delegation to Benefits Coordinating Committee.  The Committee may, in its sole   discretion, make a revocable delegation of its responsibilities, duties and obligations to a Benefits   Coordinating Committee by naming a Benefits Coordinating Committee of not less than three (3)   persons who shall be set forth in a written resolution or consent of the Committee.  In the event a   Benefits Coordinating Committee is so designated, it shall act on behalf of the Committee, as if   each member of the Benefits Coordinating Committee was a member of the group constituting the   Committee and shall have all the rights and authority attendant thereto, with respect to the   responsibilities, duties and obligations delegated to such Benefits Coordinating Committee, except   that the Benefits Coordinating Committee shall act on behalf of the Committee with respect to   such responsibilities, duties and obligations.  Any member of the Benefits Coordinating   Committee may be removed at the pleasure of the Committee or may resign by written notice to   the Committee.  Said removal or resignation shall be effective sixty (60) days after delivery of   such notice to the other party unless some other date is designated by the Committee. After such   removal or resignation, the Committee shall appoint a replacement member to the Benefits   Coordinating Committee.   ARTICLE IX   FUNDING   9.1 Funding.   (a) It is intended that the Company is under a contractual obligation to make   the payments when due under the Plan or as the Committee (or its delegate) or the Reviewer may     

 

   26   #4831-7758-3153   direct.  Such funds shall be paid first, from Trust assets if available, and then from the general assets   of the Company. Benefits hereunder and Credited Income shall also be reflected on the accounting   records of the Company, as provided for under the Plan. No Participant shall have any right, title   or interest whatsoever in or to any investment reserves, trust, accounts, or funds that the Company   may purchase, establish or accumulate to aid in providing the benefit payments described in the   Plan except as provided for under the Trust.  Participants and Beneficiaries shall not acquire any   interest under the Plan greater than that of unsecured general creditors of the Company. Shortly   after the end of each Plan Year the Committee (or its delegate) will calculate the total Account   balances of all Participants. If such aggregate balance exceeds the total net assets of the Trust,   the Company may, but shall not be obligated to contribute such excess to the Trust. If the Trust’s   net assets exceed the aggregate balance of the Participants’ Accounts, the Committee may, but   shall not be obligated to credit such excess against any liabilities or other obligations of the   Company to the Trust. In the event funds of the Trust are returned to the Company or paid for   the benefit of its general creditors, all payment obligations under this Plan shall be due   immediately and the Company hereby acknowledges that the obligations hereunder accrued not   by reason of the events described in this sentence but by reason of payments that otherwise would   have been paid previously, but for this Plan.   (b) Notwithstanding anything to the contrary in the Plan or the Trust, no   funding obligation with respect to the Trust shall be triggered or enforced, and no funding shall be   effected, in connection with a change in the Company’s financial health within the meaning of   Section 409A(b)(2) of the Code, or under any other circumstances that would cause the Plan not   to comply with Section 409A of the Code.   (c) Notwithstanding anything to the contrary in the Plan or the Trust, if the   Company or any Affiliate maintains a defined benefit plan within the meaning of Section   409A(b)(3)(B) of the Code, no additional deposits may be made to the Trust, the Trustee may not   compel additional deposits to the Trust and no other assets may be set aside or reserved for   purposes of meeting the Company’s obligations under the Plan if the Plan provides benefits to any   “covered employees” within the meaning of Section 409A(b)(3)(D) of the Code during any   “restricted period” within the meaning of Section 409A(b)(3)(B) of the Code with respect to any   such defined benefit plan.  To the extent not inconsistent with Section 409A of the Code, the   restricted period means any period in which (i) the defined benefit plan is in at-risk status under   Section 430(i) of the Code, (ii) the plan sponsor of the defined benefit plan is a debtor in   bankruptcy or (iii) the 12-month period beginning six (6) months before the termination date of   the defined benefit plan if, as of the termination date, plan assets are not sufficient to pay plan   liabilities.   (d) Neither the Trust nor its assets shall be located or transferred outside the   United States (within the meaning of Section 409A(b)(1) of the Code).   ARTICLE X   AMENDMENT; TERMINATION; MERGER   10.1 Amendment and Termination.  Subject to the restrictions imposed by and   consistent with applicable provisions of Section 409A of the Code, the Board of Directors of the   Company may amend, modify, or terminate the Plan at any time but in no event shall any such     

 

   27   #4831-7758-3153   amendment, modification or termination result in a reduction in any Participant’s Accounts or   postpone the time of payment thereunder as of the time of such amendment, modification or   termination unless the Board of Directors of the Company or the Committee acting on behalf of   the Board, and any Participant, Beneficiary or employee who suffers such a reduction or   postponement by reason of such proposed amendment, modification or termination, consents in   writing to such amendment, modification or termination, and such consent is filed with the Board   of Directors or the Committee in the calendar year preceding the effective date of the proposed   amendment, modification or termination. In the event of a termination of the Plan, subject to the   restrictions imposed by and consistent with applicable provisions of Section 409A of the Code, no   further deferral elections may be made under the Plan and amounts which are then payable, or   which become payable under the terms of the Plan, shall be paid as scheduled in accordance with   the provisions of the Plan.   10.2 Change of Control.  In the event of a Change of Control of the Company and the   Change of Control satisfies the definition of a change in the ownership or effective control of the   Company, or in the ownership of a substantial portion of its assets, within the meaning of Section   409A(a)(2)(A)(v) of the Code, all benefits hereunder shall become immediately due and payable   (1) upon the consummation of such Change of Control, to the extent set forth in the Participant’s   election deferral form; or (2) the first day of the third (3rd) Plan Year Quarter coincident with or   next following the date of the Participant’s Separation from Service provided such Separation from   Service occurs on or before the second (2nd) anniversary of such Change of Control, and in each   such case the Participant shall receive his or her vested Accounts hereunder in a single lump sum   payment.   10.3 Automatic Payment of Taxable Benefit.  Notwithstanding anything contained   herein to the contrary, but subject to the restrictions imposed by and consistent with applicable   provisions of Section 409A of the Code, if it has been finally determined that funds held pursuant   to this Plan and the relevant Trust or Credited Income are includible in the taxable income of a   Participant or his or her Beneficiary, such funds shall be immediately distributed to such   Participant or Beneficiary. For purposes of this Section, a final determination shall occur when a   decision is determined by the highest court which could otherwise render a decision (or the   Participant and the Internal Revenue Service have reached a final agreement) in this regard.   ARTICLE XI   GENERAL PROVISIONS   11.1 Beneficiary Designation.  A Participant shall designate a Beneficiary or   Beneficiaries who, upon his or her death, are to receive payments that otherwise would have been   paid to him under the Plan. All Beneficiary designations shall be in writing and on a form   prescribed by the Committee for such purpose, and any such designation shall only be effective if   and when delivered to the Committee during the lifetime of the Participant.  On the Beneficiary   designation form, the Participant may also designate the form of payment to the designated   Beneficiary. Any such designated form of payment must be a form as permitted under the Plan   and must be filed in a timely manner as provided in Section 6.5. A Participant may from time to   time during his or her lifetime change a designated Beneficiary or Beneficiaries (or change a   designated form of payment to a Beneficiary) by filing a new Beneficiary designation form with the   Committee, provided, however, that no change in the form of payment may be made except as     

 

   28   #4831-7758-3153   provided in Section 6.3 or 6.10. In the event a designated Beneficiary of a Participant predeceases   the Participant, the designation of such Beneficiary shall be void.  If a designated Beneficiary dies   after the Participant, but before all death benefit payments relating to such Beneficiary have been   paid, the remainder of such death benefit payments shall be continued to such Beneficiary’s   surviving spouse and if there is no surviving spouse, to his or her surviving children, per stirpes,   and if there are no surviving children, to his or her estate, unless the Participant had designated on   the applicable Beneficiary designation form a method of payment to a contingent Beneficiary. In   the event a Participant shall fail to designate a Beneficiary or Beneficiaries with respect to any   death benefit payments, or if for any reason such designation shall be ineffective, in whole or in   part, any payment that otherwise would have been paid to such Participant shall be paid to his or   her surviving children, per stirpes, and if there are no surviving children, to his or her estate, and in   such event, his or her estate shall be his or her Beneficiary with respect to such payments.   11.2 Effect on Other Plans.  Deferred Amounts shall not be considered as part of a   Participant’s compensation for the purpose of any savings or pension plan maintained by the   Company except where counting such compensation is permitted by law and where the savings or   pension plan provides that such deferrals shall be counted, but, in any event, such amounts shall   be taken into account under all other employee benefit plans maintained by the Company in the year   in which such amounts would have been payable in the absence of a deferral election; provided,   however, that such amounts shall not be taken into account to the extent the inclusion thereof would   jeopardize the tax-qualified status of the plan to which they relate.   11.3 Nontransferability.  No right or interest of any Participant in the Plan shall be   assignable or transferable in whole or in part, either voluntarily or by operation of law or otherwise,   or be subject to payment of debts of any Participant by execution, levy, garnishment, attachment,   pledge, bankruptcy, or in any other manner. Notwithstanding the foregoing, upon receipt of a copy   of a decree from a court of competent jurisdiction which finally declares a Participant’s spouse as   having property rights to a portion of the amounts credited to such Participant’s Accounts, the   Committee shall segregate such portion from the Participant’s Accounts and hold that portion for   the benefit of the spouse. For purposes of crediting Credited Income on and determining the timing   of the distribution of such segregated amounts, such segregated amounts shall be treated as if they   had remained part of the Participant’s Account but subject to such Investment Option elections as   are made by the spouse. In receiving payment of such amount, and in designating Beneficiaries,   the Spouse shall be treated as if he or she was a Participant; provided that the spouse shall not be   entitled to begin receiving payments hereunder before the earliest date that the Participant could   have recovered payments under this Plan.   11.4 Plan Not an Employment or Service Contract.  The Plan is not an employment   or service contract. It does not give to any person the right to be continued in employment or other   service, and all Eligible Employees and employees remain subject to change of salary, transfer,   change of job, discipline, layoff, discharge, or any other change of employment status and all   Directors remain subject to change of service status.   11.5 Applicable Law.  The Plan shall be governed and construed in accordance with the   laws of the State of New York except to the extent such laws are preempted by any applicable   Federal law.     

 

   29   #4831-7758-3153       IN WITNESS WHEREOF, Volt Information Sciences, In c .  has caused this Plan to   be executed by one of its duly authorized officers, this 8th day of June, 2016.      VOLT INFORMATION SCIENCES, I N C .    By:  /s/ Ann R. Hollins                           Title:    SVP and Chief Human Resources Officer

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