Document:

ex10_3.htm

    
      

    

    
      EXHIBIT
        10.3

       

      Nonqualified
        Stock Option Agreement under

      the
        Orthofix International N.V.

      Amended
        and Restated 2004 Long-Term Incentive Plan

      

      

      This
        Option Agreement (the “Agreement”) is made this 19th
        day of November 2007 (the “Grant Date”) between
        Orthofix International N.V., a Netherlands Antilles company (the
“Company”), and the person signing this Agreement
        adjacent to the caption “Optionee” on the signature page hereof (the
“Optionee”). Capitalized terms used and not otherwise
        defined herein shall have the meanings attributed thereto in the Orthofix
        International N.V. Amended and Restated 2004 Long-Term Incentive Plan (the
        “Plan”).

      

      WHEREAS,
        pursuant to the Plan, the
        Company desires to afford the Optionee the opportunity to purchase Common
        Shares
        on the terms and conditions set forth herein;

      

      NOW,
        THEREFORE, in connection with the
        mutual covenants hereinafter set forth and for other good and valuable
        consideration, the parties hereto agree as follows:

      

      1.   Grant
        of
        Option. Subject to the provisions of this Agreement and the Plan, the
        Company hereby grants to the Optionee the right and option (the
“Option”) to purchase 25,000 Common Shares at an
        exercise price of $58.12 per share (the “Exercise
        Price”).

      

      2.   Incorporation
        of
        Plan. The Optionee acknowledges receipt of the Plan, a copy of which is
        annexed hereto, and represents that he or she is familiar with its terms
        and
        provisions and hereby accepts this Option subject to all of the terms and
        provisions of the Plan and all interpretations, amendments, rules and
        regulations which may, from time to time, be promulgated and adopted pursuant
        to
        the Plan. The Plan is incorporated herein by reference. In the event of any
        conflict or inconsistency between the Plan and this Agreement, the Plan shall
        govern and this Agreement shall be interpreted to minimize or eliminate any
        such
        conflict or inconsistency.

      

      3.   Nature
        of the
        Option. The Option shall be a Nonqualified Stock Option.

      

      4.   Vesting.
        Subject to earlier termination in accordance with the Plan or this Agreement
        and
        the terms and conditions herein or therein, the Option shall vest and become
        exercisable with respect to one-hundred percent (100%) of the shares covered
        thereby on the third anniversary of the Grant Date.

      

      5.   Term.
        The
        Option shall expire and no longer be exercisable 10 years from the Grant
        Date,
        subject to earlier termination in accordance with the Plan or this Agreement;
        provided, however: (i) if the termination date falls on a date on which the
        exercise of the Option would violate any applicable federal, state, local
        or
        foreign law, such termination date shall be extended to 30 days after the
        first
        date that exercise of the Option would no longer violate any applicable federal,
        state, local or foreign law, and (ii) if the termination date falls on a
        date on
        which the Optionee is prohibited by Company policy in effect on such date
        from
        engaging in transactions in the Company’s securities, such termination date
        shall be extended to the first date that the Optionee is permitted to engage
        in
        transaction in the Company’s securities under such Company policy so long as
        such extension does not cause the Option to become subject to Code Section
        409A
        or violate any other applicable law.

      

      6.   Termination
        of
        Employment.

      

      (a)     General.
        A termination of employment shall be deemed to have occurred if the Optionee
        is
        no longer employed by, or otherwise providing services to, the Company or
        any of
        its Subsidiaries for any reason. The Committee shall have discretion to
        determine whether an authorized leave of absence (as a result of disability
        or
        otherwise) shall constitute a termination of employment for purposes of the
        Plan.

      

      
        
          
          

        

        
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      (b)     Termination
        of Employment Other than for Cause, Death or Permanent Disability - Not Pursuant
        to an Employment Agreement. Subject to Section 6(c) below, if the Optionee's
        employment is terminated prior to vesting other than for Cause, death or
        Permanent Disability, the Option shall be considered vested and be immediately
        exercisable as of the date of such termination of employment with respect
        to the
        aggregate number of Common Shares as to which the Option would have been
        vested
        as of December 31 of the year in which such termination of employment occurs.
        The Optionee shall have the right, subject to the other terms and conditions
        set
        forth in this Agreement and the Plan, to exercise the Option, to the extent
        it
        has vested as of the date of such termination of employment, at any time
        within
        180 days after the date of such termination of employment, subject to the
        earlier expiration of the Option as provided in Section 5 hereof. To the
        extent
        the vested portion of the Option is not exercised within such 180 day period,
        the Option shall be cancelled and revert back to the Company and the Optionee
        shall have no further right or interest therein. The unvested portion of
        any
        Option shall be cancelled and revert back to the Company as of the date of
        the
        Optionee's termination of employment and the Optionee shall have no further
        right or interest therein.

      

      (c)     Termination
        of Employment Other than for Cause, Death or Permanent Disability - Pursuant
        to
        an Employment Agreement. Notwithstanding Section 6(b) above, in the event
        the Optionee's employment is terminated prior to vesting pursuant to an
        Employment Agreement, other than for Cause (which for this purpose shall
        include
        a resignation by the Optionee for “good reason,” or words of similar meaning,
        under any Employment Agreement), death or Permanent Disability, then the
        Option
        shall be considered vested in full and be immediately exercisable as of the
        date
        of such termination of employment unless the Employment Agreement expressly
        provides otherwise, in which case the terms of the Employment Agreement shall
        control.  The Optionee shall have the right, subject to the other
        terms and conditions set forth in this Agreement and the Plan, to exercise
        the
        Option until the expiration of the Option as provided in Section 5 hereof.
        To
        the extent the vested portion of the Option is not exercised within such
        period,
        the Option shall be cancelled and revert back to the Company and the Optionee
        shall have no further right or interest therein.

      

      (d)     Termination
        of Employment for Cause. Subject only to any greater rights in any
        Employment Agreement, if the Optionee's employment with the Company and its
        Subsidiaries is terminated by the Company or any of its Subsidiaries for
        Cause
        prior to vesting, the unvested portion of the Option shall be cancelled and
        revert back to the Company as of the date of such termination of employment,
        and
        the Optionee shall have no further right or interest therein unless the
        Committee in its sole discretion shall determine otherwise. The Optionee
        shall
        have the right, subject to the other terms and conditions set forth in this
        Agreement and the Plan, to exercise the Option, to the extent it has vested
        as
        of the date of such termination of employment, at any time within three months
        after the date of such termination, subject to the earlier expiration of
        the
        Option as provided in Section 5 hereof.

      

      (e)     Termination
        of Employment for Death or Permanent Disability. Subject only to any greater
        rights in any Employment Agreement, if the Optionee's employment with the
        Company and its Subsidiaries terminates by reason of death or Permanent
        Disability, the Option shall automatically vest and become immediately
        exercisable in full as of the date of such termination of
        employment.  The Option shall remain exercisable by the Optionee, a
        Permitted Transferee (as defined in Section 11 hereof), a transferee under
        a
        domestic relations order, or the Optionee's estate, personal representative
        or
        beneficiary, as applicable, at any time within 12 months after the date of
        such
        termination of employment, subject to the earlier expiration of the Option
        as
        provided in Section 5 hereof. To the extent the Option is not exercised within
        such 12 month period, the Option shall be cancelled and revert back to the
        Company and the Optionee, Permitted Transferee, transferee under a domestic
        relations order, or the Optionee’s estate, personal representative or
        beneficiary, as applicable, shall have no further right or interest
        therein.

      

      
        
          
          

        

        
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      7.   Change
        in
        Control. Upon the occurrence of a Change in Control, the Option shall
        automatically vest and become immediately exercisable in full and shall remain
        exercisable in accordance with the terms of Section 6 hereof, subject to
        the
        earlier expiration of the Option as provided in Section 5 hereof.

      

      8.   Method
        of
        Exercising Option.

      

      (a)     Notice
        of
        Exercise. Subject to the terms and conditions of this Agreement, the Option
        may be exercised by written or electronic notice to the Company, from the
        Optionee, a Permitted Transferee, a transferee pursuant to a domestic relations
        order, or following the Optionee’s death, the Optionee’s estate, personal
        representative, or beneficiary, as applicable, and stating the number of
        Common
        Shares in respect of which the Option is being exercised. Such notice shall
        be
        accompanied by payment of the Exercise Price for all Common Shares purchased
        pursuant to the exercise of such Option. The date of exercise of the Option
        shall be the later of (i) the date on which the Company receives the notice
        of
        exercise or (ii) the date on which the conditions set forth in Sections 8(b)
        and
        8(e) are satisfied. Notwithstanding any other provision of this Agreement,
        the
        Optionee may not exercise the Option and no Common Shares will be issued
        by the
        Company with respect to any attempted exercise when such exercise is prohibited
        by law or any Company policy then in effect. The Option may not be exercised
        at
        any one time as to less than 100 shares (or such number of shares as to which
        the Option is then exercisable if less than 100). In no event shall the Option
        be exercisable for a fractional share.

      

      (b)     Payment.
        Prior to the issuance of the Common Shares pursuant to Section 8(e) hereof
        in
        respect of which all or a portion of the Option shall have been exercised,
        the
        Optionee shall have paid to the Company the Exercise Price for all Common
        Shares
        purchased pursuant to the exercise of such Option. Payment may be made by
        personal check, bank draft or postal or express money order (such modes of
        payment are collectively referred to as “cash”) payable to the order of the
        Company in U.S. dollars. Payment may also be made in mature Common Shares
        owned
        by the Optionee, or in any combination of cash or such mature shares as the
        Committee in its sole discretion may approve. The Company may also permit
        the
        Optionee to pay for such Common Shares by directing the Company to withhold
        Common Shares that would otherwise be received by the Optionee, pursuant
        to such
        rules as the Committee may establish from time to time. In the discretion
        of the
        Committee, and in accordance with rules and procedures established by the
        Committee, the Optionee may be permitted to make a “cashless” exercise of all or
        a portion of the Option.

      

      (c)     Shareholder
        Rights. The Optionee shall have no rights as a shareholder with respect to
        any Common Shares issuable upon exercise of the Option until the Optionee
        shall
        become the holder of record thereof, and no adjustment shall be made for
        dividends or distributions or other rights in respect of any Common Shares
        for
        which the record date is prior to the date upon which the Optionee shall
        become
        the holder of record thereof.

      

      (d)     Limitation
        on Exercise. The Option shall not be exercisable unless the offer and sale
        of Common Shares pursuant thereto has been registered under the Securities
        Act
        of 1933, as amended (the “1933 Act”), and qualified
        under applicable state “blue sky” laws or the Company has determined that an
        exemption from registration under the 1933 Act and from qualification under
        such
        state “blue sky” laws is available.

      

      (e)     Issuance
        of
        Common Shares. Subject to the foregoing conditions, as soon as is reasonably
        practicable after its receipt of a proper notice of exercise and payment
        of the
        Exercise Price for all Common Shares purchased pursuant to the exercise of
        such
        Option, the Company shall either: (i) deliver or cause to be delivered to
        the
        Optionee (or a Permitted Transferee, a transferee under a domestic relations
        order, or following the Optionee's death, the Optionee's estate, personal
        representative or beneficiary, as applicable) one or more share certificates
        for
        the appropriate number of Common Shares issued in connection with such exercise
        (less any Common Shares withheld under Section 10 below), or (ii) cause its
        third-party recordkeeper to credit an account established and maintained
        in the
        name of the Optionee (or a Permitted Transferee, a transferee under a domestic
        relations order, or following the Optionee's death, the Optionee's estate,
        personal representative or beneficiary, as applicable) with the number of
        Common
        Shares issued in connection with such exercise (less any Common Shares withheld
        under Section 10 below); provided, however, that an actual share certificate
        shall be delivered if requested by the Optionee (or a Permitted Transferee,
        a
        transferee under a domestic relations order, or following the Optionee's
        death,
        the Optionee's estate, personal representative or beneficiary, as applicable).
        Such Common Shares shall be fully paid and nonassessable and shall be issued
        in
        the name of the Optionee (or a Permitted Transferee, a transferee under a
        domestic relations order, or following the Optionee's death, the Optionee's
        estate, personal representative or beneficiary, as applicable).

      

      
        
          
          

        

        
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      9.   Adjustment
        of
        and Changes in Common Shares. In the event of any merger, consolidation,
        recapitalization, reclassification, stock dividend, extraordinary dividend,
        or
        other event or change in corporate structure affecting the Common Shares,
        the
        Committee shall make such adjustments, if any, as it deems appropriate in
        the
        number and class of shares subject to, and the exercise price of, the Option.
        The foregoing adjustments shall be determined by the Committee in its sole
        discretion.

      

      10.     Tax
        Withholding. The Company shall have the right, prior to the issuance of any
        Common Shares upon full or partial exercise of the Option (whether by the
        Optionee or any Permitted Transferees, a transferee under a domestic relations
        order, or following the Optionee’s death, the Optionee’s estate, personal
        representative, or beneficiary, as applicable), to require the Optionee to
        remit
        to the Company any amount sufficient to satisfy the minimum required federal,
        state or local tax withholding requirements, as well as all applicable
        withholding tax requirements of any other country or jurisdiction. The Company
        may permit the Optionee to satisfy, in whole or in part, such obligation
        to
        remit taxes, by directing the Company to withhold Common Shares that would
        otherwise be received by the Optionee, pursuant to such rules as the Committee
        may establish from time to time. The Company shall also have the right to
        deduct
        from all cash payments made pursuant to, or in connection with, the Option,
        the
        minimum federal, state or local taxes required to be withheld with respect
        to
        such payments.

      

      11.     Transfers.
        Unless the Committee determines otherwise after the Grant Date, the Option
        shall
        not be transferable other than by will or by the laws of descent and
        distribution or pursuant to a domestic relations order; provided, however,
        the
        Option may be transferred to the Optionee's family members or to one or more
        trusts or partnerships established in whole or in part for the benefit of
        one or
        more of such family members (collectively, the “Permitted Transferees”). Any
        Option transferred to a Permitted Transferee shall be further transferable
        only
        by will or the laws of descent and distribution or, for no consideration,
        to
        another Permitted Transferee of the Optionee. The Committee may in its
        discretion permit transfers of Options other than those contemplated by this
        Section 11.

      

      12.     Option
        Exercisable Only by the Optionee. During the lifetime of the Optionee, an
        Option shall be exercisable only by the Optionee or by a Permitted Transferee
        to
        whom such Option has been transferred in accordance with Section
        11.

      

      13.      Prohibition
        on Repricing.  The Agreement may not be amended to (a) reduce the
        Exercise Price of the Option granted hereunder, nor (b) cancel or replace
        the
        Option  hereunder with an Option having a lower exercise price.
 

      

      14.     Miscellaneous
        Provisions.

      

      (a)     Notices.
        Any notice required by the terms of this Agreement shall be delivered or
        made
        electronically, over the Internet or otherwise (with request for assurance
        of
        receipt in a manner typical with respect to communications of that type),
        or
        given in writing.  Any notice given in writing shall be deemed
        effective upon personal delivery or upon deposit with the United States Postal
        Service, by registered or certified mail, with postage and fees prepaid,
        and
        shall be addressed to the Company at its principal executive office and to
        the
        Optionee at the address that he or she has most recently provided to the
        Company.   Any notice given electronically shall be deemed
        effective on the date of transmission.

      

      
        
          
          

        

        
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      (b)     Headings.
        The headings of sections and subsections are included solely for convenience
        of
        reference and shall not affect the meaning of the provisions of this
        Agreement.

      

      (c)     Counterparts.
        This Agreement may be executed in two or more counterparts, each of which
        shall
        be deemed to be an original but all of which together will constitute one
        and
        the same instrument.

      

      (d)     Entire
        Agreement. This Agreement and the Plan constitute the entire agreement
        between the parties hereto with regard to the subject matter hereof. They
        supersede all other agreements, representations or understandings (whether
        oral
        or written and whether express or implied) that relate to the subject matter
        hereof.

      

      (e)     Amendments.
        The Board and the Committee shall have the power to alter or amend the terms
        of
        the Option as set forth herein from time to time, in any manner consistent
        with
        the provisions of Sections 16 and 19 of the Plan, and any alteration or
        amendment of the terms of the Option by the Board or the Committee shall,
        upon
        adoption, become and be binding on all persons affected thereby without
        requirement for consent or other action with respect thereto by any such
        person.
        The Committee shall give notice to the Optionee of any such alteration or
        amendment as promptly as practicable after the adoption thereof. The foregoing
        shall not restrict the ability of the Optionee and the Board or the Committee
        by
        mutual written consent to alter or amend the terms of the Option in any manner
        which is consistent with the Plan.

      

      (f)      Binding
        Effect. This Agreement shall be binding upon the heirs, executors,
        administrators and successors of the parties hereto and may only be amended
        by
        written agreement of the parties hereto.

      

      (g)     Governing
        Law. This Agreement shall be governed by, and construed in accordance with,
        the laws of the State of New York, without regard to the choice of law
        provisions thereof.

      

      (h)     No
        Employment or Other Rights. This Option grant does not confer upon the
        Optionee any right to be continued in the employment of, or otherwise provide
        services to, the Company or any Subsidiary or other affiliate thereof, or
        interfere with or limit in any way the right of the Company or any Subsidiary
        or
        other affiliate thereof to terminate such Optionee’s employment at any
        time.

      

      15.     Definitions.
        For purposes of this Agreement, the following capitalized words shall have
        the
        meanings set forth below.

      

      “Cause”
shall
        mean termination of the Optionee's employment because of the Optionee's (i)
        involvement in fraud, misappropriation or embezzlement related to the business
        or property of the Company, (ii) conviction for, or guilty plea to, a felony
        or
        crime of similar gravity in the jurisdiction in which such conviction or
        guilty
        plea occurs, (iii) unauthorized disclosure of any trade secrets or other
        confidential information relating to the Company's business and affairs (except
        to the extent such disclosure is required under applicable law), or (iv)
        such
        other circumstances constituting a termination for cause under any Employment
        Agreement.

      

      “Change
        in
        Control” shall mean:

      

      (i)   the
        acquisition by
        any individual, entity or group (within the meaning of Section 13(d)(3) or
        14(d)(2) of the Securities Exchange Act of 1934 (the “Exchange
        Act”)) (a “Person”) of beneficial
        ownership (within the meaning of Rule 13d-3 promulgated under the Exchange
        Act)
        of 50% or more of either (A) the then outstanding shares of the Company's
        common
        stock (the “Outstanding Common Stock”) or (B) the
        combined voting power of the then outstanding voting securities of the Company
        entitled to vote generally in the election of directors (the
“Outstanding Voting
        Securities”);  excluding,  however, the
        following: (1) any acquisition directly from the Company, other than an
        acquisition by virtue of the exercise of a conversion privilege unless the
        security being so converted was itself acquired directly from the Company;
        (2)
        any acquisition by the Company; (3) any acquisition by any employee benefit
        plan
        (or related trust) sponsored or maintained by the Company or any entity
        controlled by the Company; or (4) any acquisition pursuant to a transaction
        which complies with clauses (A), (B) and (C) of subsection (iii) of this
        definition of Change of Control; or

      

      
        
          
          

        

        
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      (ii)     a
        change in the composition of the Board such that the individuals who, as
        of the
        date hereof, constitute the Board (such Board shall be hereinafter referred
        to
        as the “Incumbent Board”) cease for any reason to
        constitute at least a majority of the Board; provided,  however, for
        purposes of this paragraph, that any individual who becomes a member of the
        Board subsequent to the date hereof, whose election, or nomination for election
        by the Company's shareholders, was approved by a vote of at least a majority
        of
        those individuals who are members of the Board and who were also members
        of the
        Incumbent Board (or deemed to be such pursuant to this proviso) shall be
        considered as though such individual were a member of the Incumbent Board;
        but  provided further that any such individual whose initial
        assumption of office occurs as a result of either an actual or threatened
        election contest (as such terms are used in Rule 14a-11 of Regulation 14A
        promulgated under the Exchange Act) or other actual or threatened solicitation
        of proxies or consents by or on behalf of a Person other than the Board shall
        not be so considered as a member of the Incumbent Board; or

      

      (iii)    consummation
        of a
        reorganization, merger or consolidation or sale or other disposition of all
        or
        substantially all of the assets of the Company (“Corporate
        Transaction”);  excluding, however, such a Corporate
        Transaction pursuant to which all of the following conditions are met: (A)
        all
        or substantially all of the individuals and entities who are the beneficial
        owners, respectively, of the Outstanding Common Stock and Outstanding Voting
        Securities immediately prior to such Corporate Transaction will beneficially
        own, directly or indirectly, more than 50% of, respectively, the outstanding
        shares of common stock, and the combined voting power of the then outstanding
        voting securities entitled to vote generally in the election of directors,
        as
        the case may be, of the corporation resulting from such Corporate Transaction
        (including, without limitation, a corporation which as a result of such
        transaction owns the Company or all or substantially all of the Company's
        assets
        either directly or through one or more subsidiaries) in substantially the
        same
        proportions as their ownership, immediately prior to such Corporate Transaction,
        of the Outstanding Common Stock and Outstanding Voting Securities, as the
        case
        may be, (B) no Person (other than the Company, any employee benefit plan
        (or
        related trust) of the Company or such corporation resulting from such Corporate
        Transaction) will beneficially own, directly or indirectly, 50% or more of,
        respectively, the outstanding shares of common stock of the corporation
        resulting from such Corporate Transaction or the combined voting power of
        the
        outstanding voting securities of such corporation entitled to vote generally
        in
        the election of directors except to the extent that such ownership existed
        prior
        to the Corporate Transaction, and (C) individuals who were members of the
        Incumbent Board will constitute at least a majority of the members of the
        board
        of directors of the corporation resulting from such Corporate
        Transaction;

      

      (iv)    the
        approval by the shareholders of the Company of a complete liquidation or
        dissolution of the Company; or

      

      (v)     any
        similar or other definition contained in any Employment Agreement (even if
        broader than as defined above).

      

      “Committee”
        shall mean the Compensation Committee of the Board or such other committee
        appointed by the Board to administer the Plan

      

      
        
          
          

        

        
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      “Employment
        Agreement” shall mean a written employment, change in control or
        change of control agreement between the Optionee and the Company and/or a
        Subsidiary.

       

      “Permanent
        Disability” shall mean termination of the Optionee's employment as
        a result of a physical or mental incapacity which substantially prevents
        the
        Optionee from performing his or her duties as an employee and that has continued
        for at least 180 days and can reasonably be expected to continue indefinitely.
        Any dispute as to whether or not the Optionee is disabled within the meaning
        of
        the preceding sentence shall be resolved by a physician selected by the
        Committee.

      

      

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        of page intentionally left blank)

       

      
        
          
          

        

        
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      EXECUTED
        as of the date first written
        above.

      

       

      
        	
                COMPANY:

              	
                ORTHOFIX
                  INTERNATIONAL N.V.

              	 
	 	 	 	 
	 	
                By:

              	
                /s/
                  Alan W. Milinazzo

              	 
	 	
                Name:

              	
                Alan
                  W. Milinazzo

              	 
	 	
                Title:

              	
                Chief
                  Executive Officer

              	 
	 	 	 	 
	
                OPTIONEE:

              	 	 	 
	 	
                By:

              	
                /s/
                  Timothy Adams

              	 
	 	
                Name:

              	
                Timothy
                  Adams

              	 
	 	
                Title:

              	
                Chief
                  Financial Officer

              	 

      

    

     

     

     8ex10_1.htm

    
      
        

      

    

    
      AMENDED
        AND RESTATED

      DILLARD’S,
        INC.

      CORPORATE
        OFFICERS NON-QUALIFIED PENSION PLAN

      (As
        Amended and Restated as of November 17, 2007)

      

       

      1.  Purpose.  The
        purpose of the Amended and Restated Dillard’s, Inc. Corporate Officers
        Non-Qualified Pension Plan (the “Plan”) is to encourage continuing
        employment in the Company by Corporate Officers (defined below), to encourage
        Corporate Officers to increase their efforts on behalf of Dillard’s Inc. (the
“Company”) and to otherwise promote the best interests of the
        Company.

       

      2.  Qualifications.  Except
        as provided in Section 9(z), the following conditions in clauses (a), (b)
        and
        (c) must be met to qualify for pension benefits under the Plan:

       

      (a)  Service
        as a Corporate Officer for five (5) or more years of the last ten (10) Years
        of
        Employment by the Company (defined below).  “Corporate
        Officers” are persons designated as such and elected by the Board of
        Directors of Dillard’s, Inc., and include Chairman, Vice-Chairman, President,
        all Vice-Presidents, Secretary and Treasurer;

       

      (b)  Employment
        by the Company for a minimum of (x) fifteen (15) Years of Employment (defined
        below), or (y) ten (10) Years of Employment at age 65.  “Employment
        by the Company” is defined to mean employment by Dillard's, Inc., any
        subsidiary thereof, and, from and after the date of acquisition (unless the
        Administrative Committee otherwise determines for this purpose), any entity
        wholly acquired by Dillard’s, Inc.; and

       

      (c)  Except
        for Early Retirement due to Disability as provided in Section 7, employment
        by
        the Company until age 55.

       

      A
        person
        who satisfies the conditions in clauses (a), (b) and (c) above upon the person’s
        Retirement (defined below) is referred to as a “Qualified
        Person.”

       

      3.
        Pension Benefits.  Subject to Section 6,
“Annual Pension Benefit” is an amount equal to the greater
        of:

       

      (a)  1-1/2%
        of the person’s average Annual Pension Earnings (defined below) for the three
        Fiscal Years (defined below) of Employment by the Company during which such
        person’s Annual Pension Earnings are the highest, multiplied by such person’s
        total continuous Years of Employment;

       

      (b)  1-1/2%
        of the person’s average annual base salary for the five Years of Employment
        ending on December 31, 2002, multiplied by such person’s total continuous Years
        of Employment ending on December 31, 2002; or

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      (c)  1-2/3%
        of the person’s average annual base salary for the five Years of Employment
        ending on December 31, 2002, multiplied by such person’s total continuous Years
        of Employment ending on December 31, 2002, less 58% of the person’s primary FICA
        benefit.

       

      “Fiscal
        Year” means the fiscal year of Dillard’s, Inc.  “Annual Pension
        Earnings” for a Fiscal Year is defined to mean the excess of (x) the sum of
        such person’s annual base salary and cash bonus paid during the Fiscal Year over
        (y) the maximum amount of earnings considered “wages” under Section 3121(a)(1)
        of the Internal Revenue Code (the “Code” or “IRC”) for the
        calendar year in which such Fiscal Year commences.  A “Year of
        Employment” means a twelve (12) consecutive month period of continuous
        Employment by the Company and excludes fractional periods of
        employment.  Annual base salary, Annual Pension Earnings and Years of
        Employment shall not be taken into account for a period of employment (x)
        during
        which a person was not a Corporate Officer and (y) which occurs subsequent
        to a
        period of employment during which such person was a Corporate Officer, unless
        such person again becomes a Corporate Officer prior to such person’s
        Retirement.

       

      A
        Qualified Person’s Annual Pension Benefit will be paid in the form of equal
        monthly installments (i.e., 1/12 of the Annual Pension Benefit) on the first
        day
        of each calendar month, commencing, subject to Section 11, with the first
        day of
        the calendar month next following the Qualified Person’s
        Retirement.  For these purposes, “Retirement” means a person’s
        separation from service with Dillard’s, Inc. and its subsidiaries, as a result
        of, and after meeting the requirements for, either (w) Normal Retirement,
        (x)
        Early Retirement, or (y) Early Retirement due to Disability, as the case
        may
        be.  On the third anniversary of the first day of the calendar month
        next following the Qualified Person’s Retirement, and on each third year
        anniversary thereafter, while the Qualified Person (or Designated Beneficiary)
        is receiving an Annual Pension Benefit, the Qualified Person’s Annual Pension
        Benefit will be adjusted for the increase in an appropriate Consumer Price
        Index
        (“CPI”).

       

      4.  Normal
        Retirement.  An individual who has met the minimum Years
        of Employment requirement (10 years) and who has met the Corporate Officer
        requirement (serving 5 years as a Corporate Officer out of the last ten (10)
        Years of Employment by the Company) set forth in Section 2 may separate from
        service at any time after reaching age 65 (“Normal Retirement”) and
        commence receiving an Annual Pension Benefit.  Years of Employment
        completed, and annual base salary and/or Annual Pension Earnings paid, after
        age
        65 but prior to separation from service will be taken into account.

       

      5.  Disqualification.  An
        individual (and such individual’s Designated Beneficiary) will be disqualified
        from receiving benefits under the Plan (and any and all benefits or rights
        shall
        be forfeited, and any payment of an Annual Pension Benefit will immediately
        cease, with respect to such individual and/or Designated
        Beneficiary):

       

      (a)  If
        the person’s employment with Dillard’s, Inc. or any of its subsidiaries is
        terminated for dishonesty or criminal offense against Dillard’s, Inc. or any of
        its subsidiaries; or

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      (b)  If,
        any time after termination of employment with Dillard’s, Inc. and its
        subsidiaries for any reason, the person performs services for or directly
        or
        indirectly receives remuneration of any kind (except stock dividend or interest
        income) from a business which is competitive with or comparable to the business
        of Dillard’s, Inc. or any of its subsidiaries.

       

      Notwithstanding
        the foregoing, following a Change in Control, the provisions of this Section
        5
        shall cease to apply.

       

      6.  Early
        Retirement.  An individual who has met the minimum Years
        of Employment requirement (15 years) and who has met the Corporate Officer
        requirement (serving 5 years as a Corporate Officer out of the last ten (10)
        Years of Employment by the Company) set forth in Section 2 may separate from
        service at any time after reaching age 55 and prior to reaching age 65
        (“Early Retirement”) and commence receiving an Annual Pension Benefit;
provided that the Annual Pension Benefit of a Qualified Person who takes
        Early Retirement will be reduced by 2-1/2% for each year or partial year
        between
        the Qualified Person's 65th birthday
        and the
        Qualified Person’s attained age upon Early Retirement; and provided further
        that, if a Qualified Person takes Early Retirement under this Section 6 when
        the Qualified Person is not a Corporate Officer, the Qualified Person’s Annual
        Pension Benefit will be reduced by 2-1/2% for each year or partial year between
        the Qualified Person’s 65th birthday and the date the Qualified Person was no
        longer a Corporate Officer.

       

      7.  Early
        Retirement - Disability.  An individual who has met the
        minimum Years of Employment requirement (15 years) and who has met the Corporate
        Officer requirement (serving 5 years as a Corporate Officer out of the last
        ten
        (10) Years of Employment by the Company) set forth in Section 2 may separate
        from service due to a Disability prior to reaching age 65 (“Early Retirement
        due to Disability”) and commence receiving an Annual Pension Benefit,
        unreduced for age under 65.  A person shall be considered to have a
“Disability” if such person is determined by the Administrative Committee
        to be unable to perform the majority of the substantial and material duties
        of
        such person’s occupation with the Company by reason of any medically
        determinable physical or mental impairment that can be expected to result
        in
        death or can be expected to last for a continuous period of not less than
        12
        months.  In making its determination the Administrative Committee may
        require a physical examination by a physician chosen by the Administrative
        Committee.

       

      8.  Death
        Benefits.

       

      (a)  In
        the event of the death of a Qualified Person after such person’s Retirement and
        commencement of benefits under the Plan but prior to the fifth anniversary
        of
        the first day of the calendar month next following such Qualified Person’s
        Retirement, the Designated Beneficiary of such Qualified Person will continue
        to
        receive the monthly Annual Pension Benefit, in the same amount the Qualified
        Person would have received, until the fifth anniversary of the first day
        of the
        calendar month next following the Qualified Person’s
        Retirement.  Thereafter, all payments of an Annual Pension Benefit,
        and all benefits under the Plan, in respect of such Qualified Person and
        Designated Beneficiary shall cease.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      (b)  In
        the event of the death of a person who has otherwise satisfied all of the
        requirements for Early Retirement, Early Retirement due to Disability or
        Normal
        Retirement, as the case may be, prior to such person’s death, but who has not
        yet commenced receiving benefits under the Plan, the Designated Beneficiary
        of
        such Qualified Person will be paid the monthly Annual Pension Benefit, in
        the
        same amount the Qualified Person would have received had such person’s Early
        Retirement, Early Retirement due to Disability or Normal Retirement, as the
        case
        may be, occurred on the date of such person’s death, until the fifth anniversary
        of the first day of the calendar month next following such person’s
        death.  Thereafter, all payments of an Annual Pension Benefit, and all
        benefits under the Plan, in respect of such Qualified Person and Designated
        Beneficiary shall cease.

       

      (c)  In
        the event of the death of a Qualified Person after such person’s Retirement and
        commencement of benefits under the Plan and after the fifth anniversary of
        the
        first day of the calendar month next following such Qualified Person’s
        Retirement, all payments of an Annual Pension Benefit, and all benefits under
        the Plan, in respect of such Qualified Person shall cease, and no Designated
        Beneficiary shall be entitled to any benefits or amounts under the
        Plan.

       

      (d)  A
        “Designated Beneficiary” shall mean the person designated by the
        Qualified Person on a form approved by the Administrative Committee, and
        filed
        with the Administrative Committee prior to the date of death.  If more
        than one designation has been made, the most recent form will be
        followed.  If no valid form is on file with the Administrative
        Committee, or if the Qualified Person has not completed a designation, then
        the
        Designated Beneficiary shall be the Qualified Person’s spouse, if then living,
        or if not, then the Qualified Person’s estate.

       

      9.  Change
        in Control.  Subject to Section 10, (x) in the event a
        Change in Control occurs following a Qualified Person’s Retirement or death, the
        then Present Value of the Annual Pension Benefit such Qualified Person (or
        his
        or her Designated Beneficiary, as the case may be) would otherwise be entitled
        to receive following such Change in Control will be paid to such Qualified
        Person (or his or her Designated Beneficiary) in a lump sum payment no later
        than sixty (60) days following such Change in Control, (y) in the event a
        Change
        in Control occurs prior to a person’s separation from service but following his
        or her satisfaction of all of the qualification requirements for Early
        Retirement, Early Retirement due to Disability or Normal Retirement under
        the
        Plan, the then Present Value of the Annual Pension Benefit such person would
        have been entitled to receive had such person’s Early Retirement, Early
        Retirement due to Disability or Normal Retirement, as the case may be, occurred
        on the date of the Change in Control will be paid to such person in a lump
        sum
        payment no later than sixty (60) days following such Change in Control, and
        (z)
        in the event a Change in Control occurs and on the date of such Change in
        Control a person either (A) is a Corporate Officer or (B) is employed by
        the
        Company or a subsidiary thereof and was formerly a Corporate Officer but
        has not
        satisfied all of the qualification requirements for Early Retirement, Early
        Retirement due to Disability or Normal Retirement under the Plan, the then
        Present Value of the Adjusted Annual Pension Benefit determined as of the
        date
        of the Change in Control will be paid to such person in a lump sum payment
        no
        later than sixty (60) days following such Change in Control.  The
“Adjusted Annual Pension Benefit” means the Annual Pension Benefit
        determined as of the date of the Change in Control reduced by 21⁄2% for each year
        or partial year between the person’s 65th birthday
        and the
        person’s attained age on the date of the Change in Control (or, if the person is
        not a Corporate Officer on the date of such Change in Control, the Qualified
        Person’s attained age on the date the Qualified Person was no longer a Corporate
        Officer).  Only one Change in Control can occur under the Plan, and,
        except as expressly set forth in this Section 9, following
        a Change in Control no further payments shall be made pursuant to the Plan
        and
        no further benefits or rights shall accrue under the Plan with respect to
        any
        person.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      A
        “Change in Control” means the occurrence, after the date of this
        amendment and restatement, of any of the following events:

       

      [(a)  Any
        one person, or more than one person acting as a Group (defined below), acquires
        ownership of common stock of Dillard’s, Inc. that, together
        with  common stock held by such person or Group, constitutes more than
        50 percent of the total fair market value or total voting power of
        the  common stock of Dillard’s, Inc., whether by direct sale, merger,
        consolidation, share exchange or other form of corporate
        reorganization;

       

      (b)  Any
        one person, or more than one person acting as a Group (defined below), acquires
        ownership of Class
        B common stock of Dillard’s, Inc. that, together with Class
        B common stock held by such person or Group, constitutes more than 50
        percent of the total fair market value or total voting power of the Class
        B common stock of Dillard’s, Inc., whether by direct sale, merger,
        consolidation, share exchange or other form of corporate
        reorganization;

       

      (c)  A
        majority of
        the members of the Dillard’s, Inc. Board of Directors is replaced during
        any 12-month period by Directors whose appointment or election is not endorsed
        by a majority of the members of the Dillard’s, Inc. Board of Directors before
        the date of the appointment or election; or

       

      (d)  Any
        one person, or more than one person acting as a Group, acquires (or has acquired
        during the 12-month period ending on the date of the most recent acquisition
        by
        such person or Group) assets from Dillard’s, Inc. or any of its subsidiaries
        that have a total gross fair market value equal to or more than 80 percent
        of
        the total gross fair market value of all of the assets of Dillard’s, Inc.
        immediately before such acquisition or acquisitions (and for this purpose,
        gross
        fair market value means the value of the assets of Dillard’s, Inc., or the value
        of the assets being disposed of, determined without regard to any liabilities
        associated with such assets);

       

      excluding,
        however, in each case of clauses (a), (b) or (c), any sales, dispositions
        or transfers to, or acquisitions by, (i) any partnership or other entity
        of
        which more
        than 50 percent of the total fair market value or total voting power of
        the ownership interest is directly or indirectly controlled by Dillard’s,
        Inc., or (ii)
        the descendents of William Dillard or any spouse of any such descendants
        or any
        partnership or other entity controlled directly or indirectly by any such
        persons or any trust for the benefit of any such persons, it being the intent
        that no Change in Control shall be deemed to have occurred as a result of
        any
        such sale, disposition, transfer or acquisition described in clauses (a),
        (b) or
        (c) of this Section 9;
        and provided, however, that in all cases such event also satisfies the
        requirements to be a “change in ownership of a corporation” or a “change in the
        effective control of a corporation” within the meaning of Code Section 409A and
        the related regulations thereunder.  For this purpose, persons
        will be considered to be acting as a “Group” if they are owners of a
        corporation that enters into a merger, consolidation, purchase or acquisition
        of
        stock, or similar business transaction with Dillard’s, Inc.  For this
        purpose, if a person, including an entity, owns stock in both corporations
        that
        enter into a merger, consolidation, purchase or acquisition of stock, or
        similar
        transaction, such shareholder is considered to be acting as a Group with
        other
        shareholders only with respect to the ownership in that corporation before
        the
        transaction giving rise to the change and not with respect to the ownership
        interest in the other corporation.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      “Present
        Value” shall mean the lump sum value determined by using the interest rate
        determined under Code Section 417(e) for the month of December preceding
        the
        calendar year in which the Change in Control occurs and by using for
        post-retirement mortality the 1994 Group Annuity Reserving Mortality Table
        projected to 2002 based on a fixed blend of 50% the unloaded male mortality
        rates and 50% of the unloaded female mortality rates.  No
        pre-retirement mortality factor shall be taken into account.  Such
        present value calculation shall be made with the three-year adjustment for
        CPI
        set forth in Section 3 based upon the assumption used for future CPI increases
        in the determination of pension expense for financial accounting purposes
        for
        the Fiscal Year immediately preceding the date of the Change in
        Control.

       

      10.  Maximum
        Payment upon a Change in Control.  Notwithstanding any
        provision in this Plan to the contrary, in the event the Company determines
        that
        part or all of the lump sum payment to a person pursuant to Section 9
        constitutes a “parachute payment” under Section 280G(b)(2) of the Code, then, if
        the aggregate present value of such parachute payment, singularly or together
        with the aggregate present value of any consideration, compensation or benefits
        to be paid to the person under any other plan, arrangement or agreement which
        constitute “parachute payments” (collectively, the “Parachute Amount”)
        exceeds 2.99 times the person’s “base amount” under Section 280G(b)(3) of the
        Code (the “Base Amount”), the amounts constituting “parachute payments”
which would otherwise be payable to or for the benefit of the person
        under this
        Plan shall be reduced to the extent necessary so that the Parachute Amount
        is
        equal to 2.99 times the person’s Base Amount.

       

      11.  Delay
        in Payment to Specified Employees.  Notwithstanding any
        provision in this Plan to the contrary, in accordance with IRC Section 409A
        and
        the regulations promulgated thereunder, if, at the time of a Qualified Person’s
        Retirement, such Qualified Person is a “Specified Employee” and the deferral of
        the commencement of any payments otherwise payable hereunder as the result
        of
        such Retirement is necessary in order to prevent any accelerated or additional
        tax under IRC Section 409A, then, unless such payment is made due to death
        or a
        Change in Control, Dillard’s, Inc. will defer the commencement of payment of the
        Qualified Person’s Annual Pension Benefit until the first day of the seventh
        calendar month following the date upon which such Specified Employee’s
        Retirement occurs (or the earliest date as is permitted under IRC Section
        409A).  The payment for the seventh month shall include the six
        monthly installments of the Annual Pension Benefit that would have been paid
        over the prior six months but for this provision.  A Specified
        Employee means an employee of Dillard’s, Inc. or its subsidiaries who, as of the
        date of the employee’s separation from service, is a “key employee,”
provided that as of the date of the employee’s separation from service,
        the stock of Dillard’s, Inc. is publicly traded on an established securities
        market or otherwise.  If a person is a “key employee” pursuant to the
        requirements of IRC Section 416(i)(1)(A)(i), (ii), or (iii) (applied in
        accordance with the regulations thereunder and disregarding IRC Section
        416(i)(5)) at any time during a 12-month period ending on December 31, then
        such
        person shall be treated as a key employee for the 12-month period beginning
        on
        the immediately following April 1.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      12.  Administrative
        Committee.  The administration of the Plan, the exclusive
        and discretionary power to determine eligibility for benefits, to decide
        any
        disputes arising under the Plan, to interpret the terms of the Plan, and
        the
        responsibility for carrying out the Plan's provisions shall be vested in
        the
        Administrative Committee, which shall consist of at least three members any
        or
        all of whom may be, but need not be, employees of Dillard’s, Inc. or any of its
        subsidiaries.  In exercising any discretion under the Plan, the
        Administrative Committee shall have sole, absolute and discretionary authority,
        final and binding on all affected persons, to the maximum extent permitted
        by
        applicable law.  The Executive Committee of the Dillard’s, Inc. Board
        of Directors shall appoint the Administrative Committee members and have
        the
        power of removal and substitution.  The Administrative Committee shall
        serve as the Plan's administrator as defined in the Employee Retirement Income
        Security Act of 1974, as amended (“ERISA”).  The Administrative
        Committee shall designate among themselves a chairman and vice chairman of
        the
        Administrative Committee and the chairman shall designate a
        secretary.  Any Administrative Committee member may resign by
        notifying the Executive Committee of the Dillard’s, Inc. Board of Directors and
        the Administrative Committee in writing.  The Administrative Committee
        shall establish rules for administration of the Plan and transaction of its
        business.  The Administrative Committee shall hold meetings and
        determine the notice, place and time of each.  Subject to Section
        13(a), a majority of its members shall constitute a quorum, and decisions
        with a
        quorum present shall be by majority vote.  The decisions of the
        Administrative Committee as to interpretation and application of the Plan
        shall
        be final and binding.  The action of a majority expressed in writing
        without a meeting shall constitute the action of the Administrative Committee
        and shall have the same effect as if consented to by every Administrative
        Committee member.  Nothing in this Section 12 shall prohibit a member
        of the Administrative Committee from serving as such in addition to being
        an
        officer, employee, agent or other representative of Dillard’s, Inc. or any of
        its subsidiaries.  Dillard’s, Inc. shall indemnify each Administrative
        Committee member and any other employee of Dillard’s, Inc. or any of its
        subsidiaries involved in the administration of the Plan against all costs,
        expenses and liabilities, including reasonable attorney's fees incurred in
        connection with any action, suit or proceeding instituted against him while
        acting in good faith in discharging his duties with respect to the
        Plan.  This indemnification is limited to the amount of such costs and
        expenses that are not otherwise covered under insurance now or hereafter
        provided by Dillard’s, Inc. or one of its subsidiaries.

       

      13.  Claim
        Procedure.

       

      (a)  A
        person who believes that he or she is entitled to a benefit or a different
        benefit under the Plan than the one determined by the Administrative Committee
        shall have the right to file with the Administrative Committee a written
        notice
        of claim.  The Administrative Committee shall either grant or deny
        such claim within 90 days after receipt of such written notice of claim (or
        within such other period as may mutually be agreed to by the person and the
        Administrative Committee), unless special circumstances require an extension
        of
        time of up to an additional 90 days for processing the claim and appropriate
        notice of such extension is given; provided, however, that any delay on
        the part of the Administrative Committee in arriving at a decision shall
        not
        adversely affect benefits payable under a granted claim.  Such claim
        under this Section 13(a) shall be filed with, and such review shall be performed
        by, the Secretary of the Administrative Committee.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      (b)  Any
        person who makes a claim that is denied shall have the right to appeal the
        denial of his claim to the Administrative Committee for a full review at
        any
        time within 60 days after the claimant receives written notice of such
        denial.  Such appeal under this Section 13(b) shall be filed with and
        such review shall be performed by the “Appeals Committee” of the Administrative
        Committee, which for these purposes shall be the full Administrative
        Committee.  The final decision of the Administrative Committee shall
        be made not later than 60 days after its receipt from the claimant of a request
        for review, unless special circumstances, such as the need to hold a hearing,
        require an extension of time for processing, in which case a decision shall
        be
        made as soon as possible but not later than 120 days after receipt of a request
        for review.  Such decision shall be made in writing and shall be final
        and binding on the claimant.

       

      14.  Miscellaneous.

      

      (a)  Unfunded
        Plan.  The Plan is intended to be an unfunded plan which
        is maintained primarily for the purpose of providing deferred compensation
        for a
        select group of management or highly compensated employees for purposes of
        Title
        I of ERISA.  The Plan is not intended to qualify as a tax-qualified
        pension plan or an eligible deferred compensation plan for purposes of IRC
        Section 401(a).  Any right of any person or Designated Beneficiary to
        receive a benefit under the Plan shall constitute an unsecured claim against
        the
        general assets of Dillard’s, Inc. and its subsidiaries, no greater than the
        right of any unsecured creditor, and no Person or Designated Beneficiary
        shall
        have, by reason of the Plan, any right, title or interest of any kind in
        any
        property or specific assets of Dillard’s, Inc. or any of its
        subsidiaries.

      

      (b)  Amendment
        or Termination.  The Plan may be amended, including an
        amendment terminating the Plan, in whole or in part, at any time by the Board
        of
        Directors of Dillard’s, Inc.  However, from and after a Change in
        Control, no such amendment may adversely affect the benefits accrued to the
        date
        of such amendment by any person without the affected person’s
        consent.

      

      (c)  Compliance
        with Section 409A of the Code.  This Plan shall be
        interpreted in accordance with Section 409A of the Code and Department of
        Treasury regulations and other interpretative guidance issued
        thereunder.  Notwithstanding any provision of the Plan to the
        contrary, in the event that the Administrative Committee determines that
        any
        amounts payable hereunder will be taxable to a  person under Section
        409A of the Code and related Department of Treasury guidance prior to payment
        to
        such person of such amount, the Administrative Committee may (a) adopt such
        amendments to the Plan and appropriate policies and procedures, including
        amendments and policies with retroactive effect, that the Administrative
        Committee determines necessary or appropriate to preserve the intended tax
        treatment of the benefits provided by the Plan and/or (b) take such other
        actions as the Administrative Committee determines necessary or appropriate
        to
        avoid the imposition of an additional tax under Section 409A of the
        Code.  The Administrative Committee shall implement the provisions of
        this Section 14(c) in good faith; provided, that neither
        Dillard’s, Inc., the Administrative Committee, nor any of Dillard’s, Inc.’s or
        any of its subsidiaries’ employees or representatives shall have any liability
        to any persons or any Designated Beneficiary with respect to this
        Section.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      (d)  Non-Alienation
        of Benefits.  No benefit payable under the Plan shall be
        subject in any manner by the Qualified Person or Designated Beneficiary or
        creditors of any of them to anticipation, alienation, sale, transfer,
        assignment, pledge, encumbrance, attachment or garnishment.

      

      (e)  Withholding.  All
        distributions and benefits under the Plan shall be subject to applicable
        withholding, including for federal, state and local income and employment
        taxes.  Dillard’s, Inc. shall have the right to withhold taxes from
        any payments made under the Plan or to make such other arrangements as it
        deems
        necessary or appropriate to satisfy its withholding obligations, including
        the
        right of Dillard’s, Inc. or a subsidiary to withhold from any amounts otherwise
        payable by Dillard’s, Inc. or a subsidiary to the affected Qualified Person or
        Designated Beneficiary on such terms and conditions as Dillard’s, Inc. shall
        prescribe.

      

      (f)  Limitation
        of Rights.  The establishment and maintenance of the Plan
        shall not be deemed to constitute a contract of employment, and nothing herein
        contained shall be deemed to give to any person the right to be retained
        in the
        employ of Dillard’s, Inc. or any of its subsidiaries, or to interfere with the
        right of Dillard’s, Inc. or any of its subsidiaries to discharge any person at
        any time or to terminate the Plan in accordance with Section 14(b)
        above.

      

      (g)  Severability.  If
        a court of competent jurisdiction holds any provision of the Plan to be invalid
        or unenforceable, the remaining provisions of the Plan shall continue to
        be
        fully effective.

      

      (h)  Construction.  The
        Plan shall be construed in accordance with and governed by the laws of the
        State
        of Arkansas, except as may be preempted by ERISA or other federal
        law.  Headings and subheadings of the Plan have been inserted for
        convenience.   This Plan document contains the all of the terms
        and conditions of the Plan.  There are no other restrictions,
        agreements, promises, warranties or covenants with respect to the Plan other
        than those expressly set forth herein.  The failure of Dillard’s, Inc.
        or the Administrative Committee to insist upon strict adherence to any term
        of
        the Plan shall not be considered a waiver of any right to thereafter insist
        on
        strict adherence to that term or any other term of the Plan.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00133-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00133-of-00352.parquet"}]]