Document:

exv10w16

 

Exhibit 10.16

FISCAL YEAR                     SALES AND CONSULTING BONUS PLAN

			
	Name:
	 	 Employee ID:
	Title:
	 	 Effective Date:

COMPONENTS OF THE BONUS PLAN

There are 2 major components of the bonus plan, which are independent of each other:

	 	 	 
	I.

	 	License Revenue and Outsourcing Bookings Growth Component
	II.

	 	License and Consulting Margin Component

I. LICENSE REVENUE and OUTSOURCING BOOKINGS GROWTH COMPONENT ASSUMPTIONS

	 	•	 	All calculations are at constant dollar values.
	 
	 	•	 	Payment is made in US Dollars even though the basis of calculation is at constant
dollars. No conversion from constant dollars to US Dollars is made.
	 
	 	•	 	License revenue and outsourcing growth bonus may not fall below zero.
	 
	 	•	 	The bonus for this component is calculated based on the confidential and proprietary
formula set forth in Exhibit A to this Bonus Plan.

II. LICENSE and CONSULTING MARGIN COMPONENT ASSUMPTIONS

License and Outsourcing Margin:

	 	•	 	All calculations are at constant dollar values.
	 
	 	•	 	License expense is adjusted to exclude the individual’s bonus expense/accrual, that was
reported as part of the license expense, when calculating margin.
	 
	 	•	 	The bonus is paid on margin achieved above and beyond the gate.
	 
	 	•	 	The bonus for the licensing and outsourcing margin subcomponent is calculated based on
the confidential and proprietary formula set forth in Exhibit A to this Bonus Plan.

Consulting Margin:

	 	•	 	All calculations are at constant dollar values.
	 
	 	•	 	The bonus for the consulting margin subcomponent is calculated based on the confidential
and proprietary formula set forth in Exhibit A to this Bonus Plan.

Total Margin Bonus:

	 	•	 	The License and Outsourcing Margin Bonus and Consulting Margin Bonus are added together
to reach a total margin bonus as set forth in Exhibit A to this Bonus Plan.
	 
	 	•	 	Individual bonus components may fall below zero; however the total margin bonus may not
fall below zero.
	 
	 	•	 	Payment is made in US Dollars even though the basis of calculation is at constant
dollars. No conversion from constant dollars to US Dollars is made.

1

 

FISCAL YEAR                     SALES AND CONSULTING BONUS PLAN

			
	Name:
	 	 Employee ID:
	Title:
	 	 Effective Date:

The maximum total cash compensation (salary, bonus and other cash compensation) for FY   cannot
exceed $                   .

I acknowledge receipt and accept this document, accompanied by the FY   Sales and Consulting
Executive Bonus Plan: Terms and Conditions, as my FY   Sales and Consulting Bonus Plan.

	 	 	 
	

	 	

	Date

	 	Date

2

 

FISCAL YEAR                     SALES AND CONSULTING BONUS PLAN

			
	Name:
	 	 Employee ID:
	Title:
	 	 Effective Date:

EXHIBIT A TO SALES AND CONSULTING 

BONUS PLAN: PROPRIETARY AND CONFIDENTIAL

[Omitted]

3

 

FISCAL YEAR                     SALES AND CONSULTING BONUS PLAN

			
	Name:
	 	 Employee ID:
	Title:
	 	 Effective Date:

FY__ Sales and Consulting Executive Bonus Plan: Terms and Conditions

An executive’s FY   Sales and Consulting Executive Bonus Plan (“Bonus Plan”) consists of this
document (the “FY   Sales and Consulting Executive Bonus Plan: Terms and Conditions”), and the
accompanying Individualized Bonus Plan as approved by the Oracle Corporation Board of Directors
Committee on Compensation and Management Development (the “Compensation Committee”). Signature of
the FY   Sales and Consulting Executive Bonus Plan: Terms and Conditions indicates acceptance of
the Bonus Plan.

Administration of the Bonus Plan. The Compensation Committee may terminate the Bonus Plan,
in whole or in part, suspend the Bonus Plan, in whole or in part from time to time, and amend the
Bonus Plan, from time to time, including the adoption of amendments deemed necessary or desirable
to correct any defect or supply omitted data or reconcile any inconsistency in the Bonus Plan or in
any award granted thereunder, so long as stockholder approval has been obtained, if required in
order for awards under the Bonus Plan to qualify as “performance-based compensation” under Section
162(m). The Compensation Committee may amend or modify the Bonus Plan in any respect, or terminate
the Bonus Plan, without the consent of any affected participant. However, in no event may such
amendment or modification result in an increase in the amount of compensation payable pursuant to
any award.

The Compensation Committee shall have all final discretion regarding the administration and
interpretation of the Bonus Plan. The Compensation Committee shall make the final and binding
determination of amounts payable under the Bonus Plan. Adjustments, modifications and changes may
be made to bonuses, bonus rates, bonus factors, targets, margin gates, margin elements, or any
other terms and conditions, and may result in a decrease in payments under the Bonus Plan. Awards
under the Bonus Plan do not vest, and are not earned, until the Compensation Committee makes any
and all final determinations and adjustments, modifications or changes of amounts payable under the
Bonus Plan.

In addition, for any single large transaction, the Compensation Committee may review the
transaction and determine appropriate treatment of the transaction under the Bonus Plan.
Appropriate treatment may include, but is not limited to, limiting or reducing the applicable
bonus, bonus rate, bonus factor, target, margin gate, margin elements, or any other terms and
conditions. Bonuses under the Plan do not vest, and are not earned, until the Compensation
Committee has determined final and appropriate treatment of the transaction.

The maximum total payout that any eligible executive may receive under the Bonus Plan is $                   ,
less any other cash compensation (including without limitation base salary) she or he receives with
respect to fiscal year                     (i.e., the executive’s total cash compensation for FY   cannot exceed
$                   ).

All awards will be paid in cash as soon as is practicable following determination of the award,
unless the Committee has, prior to the grant of an award, received and approved, in its sole
discretion, a request by a participant to defer receipt of an award in accordance with the Bonus
Plan.

Executives on a paid or unpaid leave of absence will not be eligible to earn compensation under the
Bonus Plan. Payments under the Bonus Plan may be adjusted to reflect time on leave.

Should an executive’s employment with Oracle terminate for any reason during fiscal year                    , the
participant will not be eligible to receive an award under the Bonus Plan.

4

 

FISCAL YEAR                     SALES AND CONSULTING BONUS PLAN

			
	Name:
	 	 Employee ID:
	Title:
	 	 Effective Date:

Under present federal income tax law, the executive will realize ordinary income equal to the
amount of the award received in the year of receipt. That income will be subject to applicable
income and employment tax withholding by the Company.

Advances against compensation may result in the executive incurring a negative compensation
balance, where compensation advanced exceeds compensation earned under the Bonus Plan. No
additional payments under the Bonus Plan will be made to executives who have incurred a negative
balance until the entire negative balance has been offset in full by earned compensation under the
Bonus Plan. The Company reserves the right to recover all advances against compensation that are
not offset against earned compensation under the Bonus Plan. Only the Compensation Committee is
authorized to forgive advances against compensation.

Club Excellence. Club Excellence qualification criteria are set forth in the executive’s
Individualized Sales Bonus Plan where applicable. Final selection for Club Excellence is at the
discretion of the Company. Neither cash nor any other form of compensation will be paid in lieu of
the award. The award may not be transferred to another person.

Oracle Policies. The executive agrees to abide by published Oracle policies including
these Terms and Conditions, the Code of Ethics and Business Conduct, the Proprietary Information
Agreement and other employment and/or financial guidelines.

At-Will Employment. Employment at Oracle is at-will. Oracle makes no express or implied
commitment that employment will have a minimum or fixed term, that Oracle may take adverse
employment action only for cause or that employment is terminable only for cause. Either the
executive or Oracle may terminate the employment relationship at any time for any reason.
Additionally, Oracle may take any other employment action at any time for any reason. No one at
Oracle may make, unless specifically authorized in writing by Oracle’s Board of Directors, any
promise, express or implied, that employment is for any fixed term or that cause is required for
the termination of or change in the employment relationship.

Severability. If any portion of this FY   Sales and Consulting Executive Bonus Plan:
Terms and Conditions shall, for any reason, be held invalid or unenforceable, or contrary to public
policy or any law, the remainder of the FY   Sales and Consulting Executive Bonus Plan: Terms and
Conditions shall not be affected by such invalidity or unenforceability, but shall remain in full
force and effect, as if the invalid or unenforceable term or portion thereof had not existed within
this FY   Sales and Consulting Executive Bonus Plan: Terms and Conditions.

Knowing and Voluntary Agreement. By signing the FY   Sales and Consulting Executive Bonus
Plan: Terms and Conditions, the executive is agreeing that he or she has read and understood every
provision set forth herein, and that, in consideration for participation in the Bonus Plan, agrees
to abide by its terms. The executive accepts this FY   Sales and Consulting Executive Bonus Plan:
Terms and Conditions, along with the accompanying Individualized Sales Bonus Plan, as his or her
FY   Sales Bonus Plan.

ACKNOWLEDGED AND ACCEPTED:

Print Name

	 	 	 
	

	 	

	Signature

	 	Date

5exv10w17

 

Exhibit 10.17

 

 

 

 

 

ORACLE CORPORATION

1993 DEFERRED COMPENSATION PLAN

(Amended and Restated as of November 14, 2003)

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	Plan Provisions
	 	Page
	 
	 	 	 	 	 	 
	Section 1 –
	 	Definitions	 	 	1	 
	 
	 	 	 	 	 	 
	Section 2 -
	 	Eligibility	 	 	2	 
	 
	 	 	 	 	 	 
	Section 3 -
	 	Deferred Compensation	 	 	3	 
	 
	 	 	 	 	 	 
	Section 4 -
	 	Designation of Beneficiary	 	 	6	 
	 
	 	 	 	 	 	 
	Section 5 -
	 	Change in Control	 	 	6	 
	 
	 	 	 	 	 	 
	Section 6 -
	 	Trust Provisions	 	 	6	 
	 
	 	 	 	 	 	 
	Section 7 -
	 	Amendment and Termination	 	 	7	 
	 
	 	 	 	 	 	 
	Section 8 -
	 	Administration	 	 	7	 
	 
	 	 	 	 	 	 
	Section 9 -
	 	General and Miscellaneous	 	 	7	 
	 
	 	 	 	 	 	 
	Appendices
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Appendix 1
	 	Distribution Election	 	 	10	 
	 
	 	 	 	 	 	 
	Appendix 2
	 	Beneficiary Designation	 	 	11	 

 

 

ORACLE CORPORATION

1993 DEFERRED COMPENSATION PLAN

(Amended and Restated as of November 14, 2003)

Oracle Corporation, a Delaware Corporation (referred to hereafter as “Employer”) hereby establishes
an unfunded plan for the purpose of providing deferred compensation for a select group of
management and highly compensated employees.

RECITALS

WHEREAS, those employees identified by the Compensation Committee of the Board of Directors of
Employer or any other committee designated by the Board of Directors of Employer to administer this
Plan in accordance with Section 8 hereof (hereinafter referred to as the “Committee”) as eligible
to participate in this Plan (each of whom are referred to hereafter as the “Employee” or
collectively as the “Employees”) are employed by Employer or an affiliate of Employer designated by
the Committee;

WHEREAS, Employer desires to adopt an unfunded deferred compensation plan and the Employees desire
Employer to pay certain deferred compensation and/or related benefits to or for the benefit of
Employees, or a designated Beneficiary, or both; and

NOW THEREFORE, Employer hereby establishes this deferred compensation plan.

SECTION 1

DEFINITIONS

     1.1 “Account” shall mean the separate account(s) established under this Plan and the Trust for
each participating Employee. Statements of a Participant’s account balance will be made available
electronically.

     1.2 “Base Salary” shall mean an Employee’s regular compensation without reduction for
compensation deferred pursuant to all qualified and non-qualified plans of Employer, but excluding
all of the following: bonuses, commissions, overtime, incentive payments, non-monetary awards, and
other special compensation.

     1.3 “Beneficiary” shall mean the Beneficiary designated by the Employee to receive Employee’s
deferred compensation benefits in the event of his or her death.

     1.4 “Change in Control” shall have the meaning set forth in Section 5.1 hereof.

     1.5 “Code” shall mean the Internal Revenue Code of 1986, as it may be amended from time to
time, and the rules and regulations promulgated thereunder.

 

 

     1.6 “Committee” shall mean the Compensation Committee of the Board of Directors of Employer or
any other committee designated by the Board of Directors of Employer to administer this Plan in
accordance with Section 8 hereof.

     1.7 “Designated Affiliate” shall mean an affiliate of Employer designated by the Committee and
listed on Appendix 3 attached hereto, designated employees of which are entitled to defer
compensation under the Plan.

     1.8 “Employee” shall mean each Employee of Employer designated by Employer to be entitled to
deferred compensation pursuant to this Plan; references to Employee herein shall include references
to an Employee’s Beneficiary where the context so requires.

     1.9 “Employer” shall mean Oracle Corporation, a Delaware Corporation, and any successor
organization thereto.

     1.10 “Employer Group” shall mean the group of entities (whether or not organized in corporate
form and whether or not organized in the United States) owned 50 percent or more by Employer or by
an affiliate of Employer that is, itself, owned 50 percent or more by Employer.

     1.11 “Hardship” shall have the meaning set forth in Section 3.5 hereof.

     1.12 “Plan” shall mean the Oracle Corporation 1993 Deferred Compensation Plan, as amended.

     1.13 “Permanent Disability” shall mean that the Employee is unable to engage in any
substantial gainful activity by reason of any medically determinable physical or mental impairment
that can be expected to result in death or otherwise meets the definition of “Permanent Disability”
as set forth in Employer’s Long Term Disability Plan or the correlative disability plan of a
Designated Affiliate. An Employee will not be considered to have a Permanent Disability unless he
or she furnishes proof of such condition sufficient to satisfy Employer, in its sole discretion.

     1.14 “Trust” or “Trust Agreement” shall mean the Oracle Corporation 1993 Deferred Compensation
Plan Trust Agreement, including any amendments thereto, entered into between Employer and the
Trustee to carry out the provisions of the Plan.

     1.15 “Trust Fund” shall mean the cash and other properties held and administered by Trustee
pursuant to the Trust to carry out the provisions of the Plan.

     1.16 “Trustee” shall mean the designated Trustee acting at any time under the Trust.

     1.17 “Variable compensation” shall mean bonuses and commissions.

2

 

SECTION 2

ELIGIBILITY

     2.1 Eligibility. Excepting the first year of the Plan, eligibility to participate in the Plan
in a calendar year shall be limited to Employees of Employer or a Designated Affiliate who are
selected by the Committee (or its designee), in its sole discretion, which Employees generally
shall either be Employees (i) whose annualized base salary in United States Dollars determined as
of September 30 of the prior calendar year equals or exceeds $150,000, or (ii) who participated in
the Plan in the prior calendar year. The Committee also may select for eligibility an Employee
whose base salary reaches $150,000 in a given year. For purposes of this Section 2.1, “base
salary” means an Employee’s regular compensation without reduction for compensation deferred
pursuant to all qualified and non-qualified plans of Employer, but excluding all of the following:
bonuses, commissions, overtime, incentive payments, non-monetary awards, and other special
compensation.

SECTION 3

DEFERRED COMPENSATION

     3.1 Deferred Compensation. Participation in the Plan shall commence once the employee has
made a deferral election. Deferral of compensation under the Plan shall not commence until the
Employee has complied with the election procedures set forth in Section 3.3. Each participating
Employee may elect, in accordance with Section 3.3 of this Plan, to defer annually the receipt of a
percentage of the base salary and variable compensation otherwise payable to him or her by Employer
during each calendar year or portion of a calendar year that the Employee shall be employed by
Employer. Any base salary or variable compensation deferred pursuant to this Section shall be
recorded by Employer in an Account, maintained in the name of the Employee, which Account shall be
credited with a dollar amount equal to the total amount of base salary and/or variable compensation
deferred during each calendar year under the Plan together with deemed earnings thereon credited in
accordance with Section 3.7. The percentage of base salary and variable compensation that Employee
elects to defer under this Section 3.1 will remain constant until suspended or modified by the
filing of another election with Employer by the Employee in accordance with Section 3.3 of the
Plan.

     3.2 Payment Of Account Balances. (a) The Employee shall elect whether he or she will receive
distribution(s) from his or her Account (i) upon reaching age 59 1/2, or (ii) upon termination of
employment of Employee with Employer. The Employee also shall elect whether distribution(s) of the
amounts credited to Employee’s Account, including earnings (if any) credited thereto pursuant to
Section 3.7, will be in a lump sum, or in installments over a period of five (5) years or ten (10)
years. Such elections shall be made at the time that the Employee first elects to defer
compensation under the Plan. The Employee’s distribution elections shall be on forms (whether
paper or electronic)

3

 

furnished by the Committee. If no distribution election is made, the amounts credited to a
participant’s account will be distributed in a lump sum on the first distribution date, as set
forth in section 3.2(d), after termination of employment. A participant may make a total of no
more than three changes to his or her distribution election. Any change in distribution election
will apply to all amounts in the Employee’s Account, whether related to deferrals of compensation
for years before or after January 1, 1997. A change in distribution election shall be made on
forms (whether paper or electronic) furnished by the Committee and will be effective only if the
change in distribution election has been in effect for at least one year before the occurrence of
the event specified both in the original election and in the change of election as triggering
distribution.

     (b) Upon the death of Employee after the date of termination of employment with the Employer
Group but before complete distribution to him or her of the entire balance of his or her Account,
Employer may, in the sole discretion of the Committee, pay the balance of his or her Account(s) to
Employee’s designated Beneficiary in the form of one lump sum payment (notwithstanding any election
to receive distributions under clause (i) of Section 3.2(a) or in installments).

     (c) Notwithstanding any other provision of this Plan, upon termination of Employee’s
employment with Employer by reason of death, the Employer shall distribute in a lump sum to
Employee or Employee’s designated Beneficiary all amounts credited to the Employee’s Account.
Notwithstanding any other provision of this Plan, upon termination of Employee’s employment with
the Employer Group, other than by reason of death, Employer may, in the sole discretion of the
Committee, distribute to Employee or Employee’s designated Beneficiary all amounts credited to the
Employee’s Account.

     (d) A distribution shall be made or commence on the seventeenth (17th) day of the month (or
the first business day after the seventeenth) following the calendar quarter in which the event
triggering a distribution under any of the foregoing subsections of this Section 3.2 occurs.
Subsequent distributions, if any, shall be made on each quarter-annual anniversary date of the date
of the first distribution. Each such distribution, if any, shall include interest or other
earnings credited to the balance of an Employee’s Account remaining unpaid.

     3.3 Election To Defer Compensation. The Employee’s election to defer compensation as provided
in Section 3.1 of this Plan shall be made on forms (whether paper or electronic) furnished by the
Committee. The deferral election must be made at least twenty (20) days prior to January 1 of the
calendar year in which the compensation to be deferred is otherwise payable to Employee; provided,
however, that the Committee shall have the discretion to designate a different election period in
any year so long as such election period expires prior to January 1 of the calendar year in which
the compensation to be deferred is otherwise payable to Employee. In the case of a newly eligible
Employee, the election must be made within thirty (30) days of the date it is determined that the
Employee is eligible. In the case of a newly eligible Employee, the election will be effective for
the calendar quarter after the election is made. Such deferral

4

 

election (and any subsequent election) will continue until suspended or modified on a form (whether
paper or electronic) furnished by the Committee, which new election shall only apply to
compensation otherwise payable to Employee after the end of the calendar year in which such
election is delivered to Employer. Any deferral election made by Employee shall be irrevocable
with respect to any compensation covered by such election, including the compensation payable in
the calendar year in which the election suspending or modifying the prior deferral election is
delivered to Employer. Absent a suspension or modification election, such original election shall
remain in effect from year to year until the date for distribution of the Employee’s Account under
Section 3.2. Employer shall withhold the percentage of base salary specified to be deferred for
each payroll period and shall withhold the percentage of variable compensation specified to be
deferred at the time or times such variable compensation is or otherwise would be paid to the
Employee.

     3.4 Payment Upon Change in Control. Notwithstanding any other provisions of this Plan, the
aggregate balance credited to and held in the Employee’s Account shall be distributed to the
Employee in a lump sum within thirty (30) days of a Change in Control, as defined in Section 5.1.

     3.5 Hardship. In case of an unforeseeable emergency, a participant may request the
Committee, on a form to be provided by the Committee or its delegate, that payment be made earlier
than the date to which it was deferred or that there be a cessation of deferrals under the Plan.

     For purposes of this section 3.5, an “unforeseeable emergency” shall be limited to a severe
financial hardship to the participant resulting from a sudden and unexpected illness or accident of
the participant or of a dependent (as defined in section 152(a) of the Code) of the participant,
loss of the participant’s property due to casualty, or other similar extraordinary and
unforeseeable circumstances arising as a result of events beyond the control of the participant.
The circumstances that will constitute an unforeseeable emergency will depend upon the facts of
each case, but, in any case, payment may not be made and a cessation of deferral may not occur to
the extent that such hardship is or may be relieved: (i) through reimbursement or compensation by
available insurance or otherwise or (ii) by liquidation of the participant’s assets, to the extent
the liquidation of such assets would not itself cause severe financial hardship. Moreover, payment
of a deferred amount may not be made ahead of the date to which the amount was deferred to the
extent that such hardship is or may be relieved by cessation of deferrals under the Plan.

     The Committee shall consider any requests for payment under this Section 3.5 on a uniform and
nondiscriminatory basis and in accordance with the standards of interpretation described in section
457 of the Code and the regulations thereunder. In the event there is a payment or a cessation of
deferrals under this Section 3.5, the participant shall be ineligible to make further Deferral
Elections for one year from the date of the Committee action approving the payment or cessation of
deferral.

5

 

     3.6 Employee’s Rights Unsecured. The right of the Employee or his or her designated
Beneficiary to receive a distribution hereunder shall be an unsecured claim against the general
assets of Employer, and neither the Employee nor his or her designated Beneficiary shall have any
rights in or against any amount credited to his or her Account or any other specific assets of
Employer. The plan constitutes a mere promise by the Employer to make benefit payments in the
future.

     3.7 Investment of Contribution. All amounts credited to an Account shall be credited
throughout the year with the deemed earnings thereon, which may be positive or negative
(hereinafter and previously sometimes referred to as “interest or other earnings”) pursuant to the
Employee’s election as to investment return, until the Account has been fully distributed to the
Employee or to the Beneficiary designated by the Employee in a writing delivered to Employer.

SECTION 4

DESIGNATION OF BENEFICIARY

     4.1 Designation of Beneficiary. Employee may designate a Beneficiary to receive any amount
due hereunder by Employee via written notice thereof to Employer at any time prior to his or her
death and may revoke or change the Beneficiary designated therein by written notice delivered to
Employer at any time and from time to time prior to Employee’s death, provided that any such
designation or change of designation naming a Beneficiary other than the Employee’s spouse shall be
effective only if spousal consent is provided. If Employee shall have failed to designate a
Beneficiary, or if no such Beneficiary shall survive him or her, then such amount shall be paid to
the Employee’s estate. Designation of Beneficiary shall be in the form attached hereto as Appendix
2.

SECTION 5

CHANGE IN CONTROL

     5.1 Change in Control. For purposes of this Plan, a Change in Control shall mean (a) the
purchase or other acquisition by any person, entity, or group of persons, within the meaning of
section 13(d) or 14(d) of the Securities Exchange Act of 1934 (“Act”), or any comparable successor
provisions, of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Act) of
fifty percent (50%) or more of either the outstanding shares of common stock or the combined voting
power of Employer’s then outstanding voting securities entitled to vote generally, or (b) the
approval by the stockholders of Employer of a reorganization, merger, or consolidation, in each
case, with respect to which persons who were stockholders of Employer immediately prior to such
reorganization, merger or consolidation do not, immediately thereafter, own more than fifty percent
(50%) of the combined voting power entitled to vote generally in the election of directors of the
reorganized, merged or consolidated

6

 

Employer’s then outstanding securities, or a liquidation or dissolution of Employer or of the sale
of all or substantially all of Employer’s assets.

SECTION 6

TRUST PROVISIONS

     6.1 Trust Agreement. Employer may establish the Trust for the purpose of retaining assets set
aside by Employer pursuant to the Trust Agreement for payment of all or a portion of the amounts
payable pursuant to the Plan. Any benefits not paid from the Trust shall be paid from Employer’s
general funds, and any benefits paid from the Trust shall be credited against and reduce by a
corresponding amount Employer’s liability to Employees under the Plan. All Trust Funds shall be
subject to the claims of general creditors of Employer in the event Employer is Insolvent as
defined in Section 3 of the Trust Agreement. The obligations of Employer to pay benefits under the
Plan constitute an unfunded, unsecured promise to pay and Employees shall have no greater rights
than general creditors of Employer. It is Employer’s intention that the arrangements be unfunded
for tax purposes and for purposes of Title I of ERISA.

SECTION 7

AMENDMENT AND TERMINATION

     7.1 Amendment. The Committee shall have the right to amend this Plan at any time and from
time to time, including a retroactive amendment. Any such amendment shall become effective upon
the date stated therein, and shall be binding on all Employees, except as otherwise provided in
such amendment; provided, however, that said amendment shall not affect benefits adversely to the
affected Employee without the Employee’s written approval. Benefits accruing to an Employee
pursuant to any employment agreement in effect between Employer and Employee which entitles the
Employee to participate in and to certain rights under this Plan shall not be affected by an
amendment of this Plan.

SECTION 8

ADMINISTRATION

     8.1 Administration. The Committee shall have complete authority to administer the Plan,
interpret the terms of the Plan, determine eligibility of Employees to participate in the Plan,
reduce the amount to be deferred under the Plan as to any Employee, and make all other
determinations and take all other actions in accordance with the terms of the Plan and the Trust
Agreement. Any determination or decision by the Committee shall be conclusive and binding on all
persons who at any time have or claim to have any interest whatever under this Plan.

     8.2 Liability of Committee, Indemnification. To the extent permitted by law, the Committee
shall not be liable to any person for any action taken or omitted in

7

 

connection with the interpretation and administration of this Plan unless attributable to his or
her own bad faith or willful misconduct.

     8.3 Expenses. The costs of the establishment of the Plan and the adoption of the Plan by
Employer, including but not limited to legal and accounting fees, shall be borne by Employer. The
expenses of administering the Plan shall be borne by the Trust; provided, however, that Employer
shall bear, and shall not be reimbursed by, the Trust for any tax liability of Employer associated
with the investment of assets by the Trust.

SECTION 9

GENERAL AND MISCELLANEOUS

     9.1 Rights Against Employer. Except as expressly provided by the Plan, the establishment of
this Plan shall not be construed as giving to any Employee or to any person whomsoever, any legal,
equitable or other rights against Employer, or against its officers, directors, agents or
shareholders, or as giving to any Employee or Beneficiary any equity or other interest in the
assets, business or shares of Employer stock or giving any Employee the right to be retained in
the employment of Employer. All Employees shall be subject to discharge (with or without cause) to
the same extent they would have been if this Plan had never been adopted. The rights of an
Employee hereunder shall be solely those of an unsecured general creditor of Employer. Nothing in
the Plan should be construed to require any contributions to the Plan on behalf of an Employee by
Employer.

     9.2 Assignment or Transfer. No right, title or interest of any kind in the Plan shall be
transferable or assignable by any Employee or Beneficiary or be subject to alienation,
anticipation, sale, pledge, encumbrance, garnishment, attachment, execution or levy of any kind,
whether voluntary or involuntary, nor subject to the debts, contracts, liabilities, engagements, or
torts of the Employee or Beneficiary. Any attempt to alienate, anticipate, encumber, sell,
transfer, assign, pledge, garnish, attach or otherwise subject to legal or equitable process or
encumber or dispose of any interest in the Plan shall be void.

     9.3 Severability. If any provision of this Plan shall be declared illegal or invalid for any
reason, said illegality or invalidity shall not affect the remaining provisions of this Plan but
shall be fully severable, and this Plan shall be construed and enforced as if said illegal or
invalid provision had never been inserted herein.

     9.4 Construction. The article and section headings and numbers are included only for
convenience of reference and are not to be taken as limiting or extending the meaning of any of the
terms and provisions of this Plan. Whenever appropriate, words

8

 

used in the singular shall include the plural or the plural may be read as the singular. When used
herein, the masculine gender includes the feminine gender.

     9.5 Governing Law. The validity and effect of this Plan and the rights and obligations of all
persons affected hereby shall be construed and determined in accordance with the laws of the State
of California unless superseded by federal law, which shall govern correspondingly.

     9.6 Payment Due to Incompetence. If the Committee receives evidence that an Employee or
Beneficiary entitled to receive any payment under the Plan is physically or mentally incompetent to
receive such payment, the Committee may, in its sole and absolute discretion, direct the payment to
any other person or Trust which has been legally appointed by the courts.

     9.7 Taxes. All amounts payable hereunder shall be reduced by any and all federal, state,
local, and employment taxes imposed upon Employee or his or her Beneficiary which are required to
be paid or withheld by Employer. Amounts deferred will be taken into account for purposes of any
tax or withholding obligation under the Federal Insurance Contribution Act and Federal Unemployment
Tax Act, not in the year distributed, but at the later of the year the services are performed or
the year in which the rights to the amounts are no longer subject to a substantial risk of
forfeiture, as required by sections 3121(v) and 3306(r) of the Code and the regulations thereunder.
Amounts required to be withheld pursuant to sections 3121(v) and 3306(r) of the Code shall be
withheld out of other current wages paid by Employer. The determination of Employer regarding
applicable income and employment tax withholding requirements shall be final and binding on
Employee.

     9.8 Insurance. In the event that any Employee elects, in his or her sole discretion, to
independently purchase an insurance policy covering the inability of the Plan or the Trust to make
any payments to which Employee is entitled under the Plan or the Trust, Employer shall use its best
efforts to facilitate the payment by Employee of any excise taxes which become due as the result of
the payment of premiums under such policy. Nothing contained herein shall be construed as an
endorsement by Employer of the purchase of such a policy or a recommendation by Employer that the
purchase of such a policy is necessary or desirable as the result of Employee’s participation in
the Plan.

9

 

APPENDIX 1

DISTRIBUTION ELECTION

Pursuant to Section 3.3 of the Oracle Corporation 1993 Deferred Compensation Plan (the “Plan”), I
hereby elect to have all amounts credited to my Account, together with any interest or other
earnings credited thereon, distributed to me on the terms elected below:

	 	 	 
	I.

	 	Check one of the following:
	

	 	                    Initial Distribution Election                     Change in Distribution Election
	 
	 	 
	II.

	 	I elect to have distributions of all amounts credited to Accounts covered by this Plan paid to me beginning as follows (check one):
	 
	 	 
	

	 	                    upon reaching age 59 1/2.
	 
	 	 
	

	 	                    upon termination of employment.
	 
	 	 
	III.

	 	I elect to have distribution of all amounts credited to Accounts covered by this Plan paid to me in the following form (check one):
	 
	 	 
	

	 	                    a lump sum.
	 
	 	 
	

	 	                    an annuity of twenty (20) quarter-annual installments determined as of each installment date by dividing the entire
	amount in my Account (including interest and other earnings) by the number of installments then remaining to be paid.
	 
	 	 
	

	 	                    an annuity of forty (40) quarter-annual installments determined as of each installment date by dividing the entire amount
	in my Account (including interest and other earnings) by the number of installments then remaining to be paid.

NOTE: A participant’s ability to change his or her distribution election is limited.
An Employee’s distribution election can be changed a total of only three times. Any change in
distribution election will apply to all amounts credited to the Employee’s Account and will be
effective only if in place for at least one year before the occurrence of the event specified in
the change of distribution election as triggering the beginning of the distribution.

NOTE: Under the State Taxation of Pension Act of 1995, California is precluded from taxing
amounts deferred under the Oracle Corporation Executive Deferred Compensation Plan (the “Plan”) if
you (i) elect an annuity of forty (40) quarter-annual installments and (ii) reside in a state other
than California when you receive your distributions. Consequently, if you expect to be residing in
a state with no individual income tax (such as Washington, Nevada, Florida, New Hampshire), or a
low rate of individual income tax, when you receive your distributions, there may be significant
state tax saving to you if you elect to receive the distributions in 40 quarter-annual
installments.

Signed: _______________________________            Date: _________________

Name: ___________________________            Employee Number: ____________

10

 

Please return your completed original forms to:

Oracle Benefits

500 Oracle Parkway, LGN-1

Redwood Shores, CA 94065

11

 

APPENDIX 2

BENEFICIARY DESIGNATION

In the event I should die prior to the receipt of all money accrued to my credit under this
election, I elect to have the balance paid to the following named individual(s) in the following
percentage(s):

	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	(P)rimary or	 
	 	Percent	 	 	Name	 	 	Soc. Sec. #	 	 	(S)econdary*	 
	 	 
	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 
	 

*Total percentage distributions for primary (first choice) beneficiaries must total 100%.
Total percentage distributions for secondary (second choice) beneficiaries must total 100%.

Signed: __________________________________            Date: _____________________

Name: ___________________________________

To be completed only if I am married and any above named beneficiary is not my spouse:

I, as the spouse of                                       , do hereby consent to designation of any beneficiary
that might in any way impair my rights under applicable state law, including but not limited to,
laws relating to Community Property, Wills, Trusts, and Intestacy.

Signed: __________________________________            Date: ___________________

Name: __________________________________

 

Notary: __________________________________            Date: ____________________

Please return your completed original forms to:

Oracle Benefits

500 Oracle Parkway, LGN-1

Redwood Shores, CA 94065

12

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