Document:

Williams-Sonoma, Inc. Pre-2005 Executive Deferral Plan

 Exhibit 10.40 
 WILLIAMS-SONOMA, INC. 
 PRE-2005 EXECUTIVE DEFERRAL PLAN 
 Williams-Sonoma, Inc. (the “Company”) hereby adopts the Williams-Sonoma, Inc. Pre-2005 Executive Deferral Plan, with reference
to the following facts: 
 A.    Effective as of July 1, 1995, the Company adopted the
Williams-Sonoma, Inc. Executive Deferral Plan (the “Plan”) to provide supplemental retirement income benefits for a select group of management and highly compensated employees. 
 B.     Effective as of January 1, 1998 and January 1, 1999, the Company amended and restated the Plan in
its entirety. 
 C.    In order to preserve grandfather treatment under Internal Revenue Code
Section 409A, the Plan has been frozen to deferrals on and after January 1, 2005. 
 D.    The
Plan has been renamed the Pre-2005 Executive Deferral Plan, and the claims procedures under Article IX have been updated to comply with ERISA, but the Plan otherwise remains unchanged such that it has not been materially modified for purposes of
Internal Revenue Code Section 409A. This Plan governs all deferrals made prior to January 1, 2005 and any earinings and losses thereon. 
 ARTICLE I 
 TITLE AND DEFINITIONS 
 1.1    Title. This Plan shall be known as the Williams-Sonoma, Inc. Pre-2005 Executive Deferral Plan. 
 1.2    Definitions. Whenever the following words and phrases are used in this Plan, with the first letter
capitalized, they shall have the meanings specified below. 
 “Beneficiary” or “Beneficiaries” shall mean
the person or persons designated under Article VII. 
 “Board of Directors” or “Board” shall mean
the Board of Directors of the Company. 
 “Bonus” shall mean any incentive compensation payable to a Participant in
addition to the Participant’s Salary. 
 “Code” shall mean the Internal Revenue Code of 1986, as amended.

 “Committee” shall mean the Committee appointed by the Board to administer the Plan in accordance with
Article V1I. 

 “Company” shall mean Williams-Sonoma, Inc., any successor corporation and each
corporation which is a member of a controlled group of corporations (within the meaning of Section 414(b) of the Code) of which Williams-Sonoma, Inc. is a member. 
 “Compensation” shall mean the Salary and Bonus that the Participant receives for services rendered to the Company. 
 “Deferral Account” shall mean the bookkeeping account maintained by the Committee for each Participant under Article IV,
which shall be the sum of the Participant’s Plan Year Subaccounts. 
 “Disability” shall mean a period of
disability during which a Participant qualifies for benefits under the Company’s group long term disability plan or, if a Participant does not participate in such a plan, a period of disability during which the Participant would have qualified
for benefits under such a plan had the Participant been a participant in such a plan, as determined in the sole discretion of the Committee. If the Company does not sponsor such a plan, Disability shall be determined by the Committee in its sole
discretion. 
 “Distributable Amount” shall mean the amount credited to a Participant’s Plan Year Subaccount
as of the date of distribution or withdrawal under Section 6.5. 
 “Eligible Employee” shall mean each member
of a group of select management or highly compensated employees of the Company who is selected by the Committee to participate in the Plan. 
 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended. 
 “Fund” or “Funds” shall mean one or more of the mutual funds or investment vehicles selected by the Committee pursuant to Section 3.2(a). 
 “Initial Election Period” for an Eligible Employee shall mean the 30-day period following the date on which the Committee notifies an employee that he or she has been selected as an
Eligible Employee. 
 “Participant” shall mean any Eligible Employee who elects to defer Compensation in accordance
with Section 3.1. 
 “Payment Eligibility Date” shall mean (a) for the Plan Year Subaccount for Plan
Years before 1999, the date (which shall be the first day of a calendar quarter) specified by the Participant on a form provided by the Committee prior to July 30, 1995 or, if later, within 30 days of the date on which such person became a
Participant, and (b) for each Plan Year Subaccount for the 1999 Plan Year and later Plan Years, the date (which shall be the first day of a calendar year at least three years after the first day of the Plan Year for which the Plan Year
Subaccount is maintained) specified by the Participant on a form prescribed by the Committee when the Participant makes a valid election to defer Salary for the Plan Year for which the Plan Year Subaccount is maintained. If the Participant specifies
no Payment Eligibility Date for a Plan Year Subaccount, the Payment Eligibility Date shall be the first day of the calendar quarter following the Participant’s death, Disability, Retirement, or Termination of Employment. 
  

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 “Plan” shall mean the Williams-Sonoma, Inc. Executive Deferral Plan set forth
herein. 
 “Plan Year” shall mean the 12 consecutive month period beginning January 1, and ending
December 31, except that the first Plan Year shall be a short year beginning July 1, 1995 and ending December 31, 1995. 
 “Plan Year Subaccount” shall mean the bookkeeping account maintained by the Committee for each Participant under Article IV to reflect, for each Plan Year, the deferrals of Salary made by such
Participant for such Plan Year, the deferrals of Bonuses made by such Participant for the fiscal year of the Company which includes the last day of such Plan Year, deemed earnings credited thereon, and withdrawals and distributions debited thereto.
The Committee shall maintain a single Plan Year Subaccount for all Plan Years before 1999. 
 “Retirement” shall
mean a Participant’s Termination of Employment on or after his or her attainment of both age 55 and five Years of Service for any reason other than a leave of absence approved by the Committee, death, or Disability. For purposes of determining
whether a Participant has “Retired,” “Years of Service” shall mean the total number of full years in which a Participant has been continuously employed by the Company. For purposes of this definition, a year of employment shall
be a 365 day period (or 366 day period in the case of a leap year) that, for the first year of employment, commences an the employee’s date of hire and that, for any subsequent year, commences on an anniversary of that hiring date. The
Committee may, in its sole discretion, credit a Participant with any partial year of employment. Periods during which an Eligible Employee is on a paid leave of absence or suffers from a Disability shall be deemed to be periods of continuous
employment. 
 “Retirement Payment Eligibility Date” shall mean the date (which shall be the first day of a
calendar year) a number of years after the Participant’s Retirement or Disability, which such number shall be specified by the Participant on a form provided by the Committee within the Initial Election Period, or, if the Participant does not
file the form within the Initial Election Period, at least one year before the Participant’s Retirement or Disability. If the Participant does not validly specify a Retirement Payment Eligibility Date, the Retirement Payment Eligibility Date
shall be the first day of the calendar quarter following the Participant’s Retirement or Disability. 
 “Salary” shall mean the Participant’s base pay. 
 “Termination of Employment” shall mean
the ceasing of a Participant’s employment with the Company for any reason other than a leave of absence approved by the Committee, death, or Disability. A Participant shall not be considered to have had a Termination of Employment by virtue of
a change in employment from one corporation which is a member of the controlled group of corporations (within the meaning of Section 414(b) of the Code) constituting the Company to another such member. However, if the corporation which employs
a Participant ceases to be a member of the controlled group of corporations constituting the Company as a result of a sale or other corporate reorganization, such sale or other corporate reorganization shall be treated as the Participant’s
Termination of Employment unless, immediately following such sale or reorganization and without any break in employment, the Participant remains employed by another member of the controlled group of corporations constituting the Company, or the
former member of the controlled 

  

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group which employs the Participant assumes liability for the benefits of the Participant under this Plan. 
 ARTICLE II 
 PARTICIPATION

 2.1    Participation. An Eligible Employee shall become a Participant in the Plan by
electing to defer all or a portion of his or her Compensation in accordance with Section 3.1. The Committee, in its discretion, may require an Eligible Employee, as a condition to becoming a Participant, to complete an application for the life
insurance benefit described in Section 6.3(a), and to comply with various medical underwriting requirements of the insurance company. 
 2.2    Continuing Participation. An Eligible Employee who becomes a Participant shall continue to be a Participant until all of his benefits are distributed under this Plan. The Committee
may determine at any time, in its sole discretion, that a Participant is no longer an Eligible Employee. Such a Participant shall continue to be a Participant in this Plan until all of his benefits are distributed under this Plan, but, from and
after the first day of the first Plan Year beginning after such determination, such Participant shall not be entitled to make any further deferrals of Compensation under Article III. 
 ARTICLE III 
 DEFERRAL ELECTIONS 
 3.1    Elections to Defer Compensation. 
 (a)    Initial Election Period. Each Eligible Employee may elect to defer Compensation by filing with the Committee
an election that conforms to the requirements of this Section 3.1, on a form provided by the Committee, no later than the last day of his or her Initial Election Period. 
 (b)    General Rule. Subject to the limitations set forth in paragraphs (c) and (d) below, the amount of Compensation which an Eligible Employee may elect to defer
is as follows: 
 (1)    Any whole percentage of Salary up to 100%; and/or 
 (2)    Any whole percentage or dollar amount of Bonus up to 100%. 
 (c)    Maximum Deferrals. A Participant shall not be entitled to defer an amount of his Salary or Bonus for any Plan
Year to the extent that the amount of the Salary or Bonus remaining undeferred for that Plan Year is less than the amount of payroll taxes which the Company will owe on his Compensation and all other compensation he receives from the Company in that
Plan Year. An election to defer Salary or Bonus shall not be effective to the extent it exceeds the maximum amount set forth in this Section 3.1(b). 
 (d)    Minimum Deferrals. For each Plan Year for which a Participant elects to defer any portion of his Salary, the minimum percentage of Salary which may be deferred under paragraph (b)(1) of
this Section 3.1 is 5%. This 5% minimum deferral for any Plan Year shall be 

  

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reduced to a lesser percentage (but not below zero percent) if the Participant deferred any portion of his or her Bonus paid with respect to the fiscal year
of the Company which included the last day of the preceding Plan Year (the “Prior Year Bonus”). The amount of such reduction shall be the number of percentage points determined by (1) dividing the amount of the Prior Year Bonus by the
amount of the Participant’s annual Salary at the beginning of the Plan Year for which the minimum deferral is being computed, and (2) multiplying by 10. For example, if a Participant receives a Salary of $200,000 for the Plan Year for
which the minimum deferral is being computed, and deferred $20,000 of his Prior Year Bonus, the minimum deferral will be reduced by (1) $20,000 divided by $200,000, or .10, multiplied by (2) 10, to arrive at a reduction in the maximum
percentage of 1.0%. The maximum deferral percentage will therefore be 5% minus 1%, or 4%. 
 (e)    Effect of Initial Election. An election to defer compensation made during an Initial Election Period shall be effective with respect to Salary earned during the first pay period beginning after the end of the
Initial Election Period and with respect to the Bonus payable for services rendered during the Company’s fiscal year which includes the last day of the Plan Year in which the election is made. 
 (f)    Duration of Salary Deferral Election. Any Salary deferral election made under paragraph (a) or paragraph
(h) of this Section 3.1 shall be irrevocable with respect to the Plan Year for which it is made, and shall remain in effect, notwithstanding any change in the Participant’s Salary, until changed or terminated in accordance with the
terms of this paragraph (f); provided, however, that such election shall terminate under Section 2.2 for any Plan Year for which the Participant is not an Eligible Employee, or pursuant to Section 3.1(i). Subject to the maximum
deferral requirement of Section 3.1(c) and the minimum deferral requirement of Section 3.1(d), a Participant may increase, decrease or terminate his or her Salary deferral election, effective for Salary earned during pay periods beginning
after any January 1, by filing a new election, in accordance with the terms of this Section 3.1, with the Committee during the preceding December. 
 (g)    Duration of Bonus Deferral Election. Any Bonus deferral election made under paragraph (a) or paragraph (h) of this Section 3.1 shall be irrevocable and
shall apply only to the Bonus payable with respect to services performed during the Company’s fiscal year which includes the last day of the Plan Year for which the election is made. For each subsequent fiscal year, an Eligible Employee may
make a new election, subject to the limitations set forth in this Section 3.1, to defer a percentage of his or her Bonus payable with respect to services performed during such subsequent fiscal year. Such election shall be on forms provided by
the Committee and shall be made during the month of September of the Plan Year which ends within such fiscal year. 
 (h)    Elections other than Elections during the Initial Election Period. Subject to the limitations of paragraphs (c) and (d) above, any Eligible Employee who fails to elect to defer compensation during his or
her Initial Election Period may subsequently become a Participant, and any Eligible Employee who has terminated a prior Salary deferral election may elect to again defer Salary, by filing an election, on a form provided by the Committee, to defer
Compensation as described in paragraph (b) above. An election to defer Salary must be filed during the month of December and will be effective for Salary earned during pay periods beginning after the following January 1. An election to
defer the Bonus must be filed during the month of September and will be 

  

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effective for the Bonus paid with respect to services performed during the Company’s fiscal year which includes such month of September. 
 (i)    At any time during a Plan Year, a participant may elect, by written notice to the Committee on a form
prescribed by the committee, to suspend deferrals of Salary for the remainder of the Plan Year. 
 3.2    Investment Elections. 
 (a)    The Committee shall select
the Funds whose performance will measure the amounts to be credited to the Deferral Accounts of Participants under paragraph (c) of Article IV. The selection of funds shall be for bookkeeping purposes only, and the Company shall not be
obligated actually to invest any money in the Funds, or to acquire or maintain any actual investment. The Committee may, in its discretion, change its selection of the Funds at any time. If a Participant has elected pursuant to Section 3.2(b)
to invest all or a portion of his Plan Year Subaccount in a Fund which the Committee decides to discontinue, his Plan Year Subaccount shall be invested after such discontinuance in the continuing Fund which the Committee determines, in its
discretion, most nearly resembles the discontinued Fund. 
 (b)    The Committee shall provide each
Participant with a list of the Funds available for hypothetical investment, and the Participant shall designate, when the Participant makes deferral elections under Section 3.1, on a form provided by the Committee, one or more of such Funds in
which each of his or her Plan Year Subaccounts will be deemed to be invested. The Participant may make a separate designation for each of his or her Plan Year Subaccounts. In making the designation pursuant to this Section 3.2(b), the
Participant may specify that all or any whole percentage of at least 10% of his or her Plan Year Subaccount balance be deemed to be invested in one or more of Funds. 
 (c)    On or prior to the twentieth day of any calendar month (or later day prescribed by the Committee, but not later than the last day of the calendar month), a Participant
may change the designation of the Funds in which the balances of any of his Plan Year Subaccounts will be deemed to be invested. Such change may be made with respect to any whole percentage of at least 10% of a Plan Year Subaccount balance. Such
change shall be made by filing with the Committee an election on a form provided by the Committee. Such change shall be effective as of the first day of the following calendar month. 
 ARTICLE IV 
 DEFERRAL ACCOUNT 
 The committee shall establish and maintain the Plan Year Subaccounts and the Deferral Account (which shall be the sum of all Plan Year
Subaccounts) for each Participant under the Plan, which shall be merely bookkeeping accounts and which need not represent any actual assets. Each Plan Year Subaccount of each Participant shall be further divided into separate subaccounts (“Fund
Subaccounts”), each of which corresponds to a Fund elected by the Participant pursuant to Section 3.2(b). Each Plan Year Subaccount of each Participant shall be credited as follows: 
  

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 (a)    Within five business days after deferred Salary has been
withheld from a Participant’s paycheck, the Committee shall credit each of the Participant’s Fund Subaccounts with amounts equal to the deferred Salary in accordance with the Participant’s election under Section 3.2; that is, the
portion of the Participant’s deferred Salary that the Participant has elected to be deemed to be invested in a certain Fund shall be credited to the Fund Subaccount corresponding to that Fund. 
 (b)    Within five business days after the payment of a Bonus, the Committee shall credit the Participant’s
Fund Subaccounts with amounts equal to the portion of the Bonus which the Participant has deferred in accordance with the Participant’s election under Section 3.2(b); that is, the portion of the Participant’s deferred Bonus that the
Participant has elected to be deemed to be invested in a certain Fund shall be credited to the Fund Subaccount corresponding to that Fund. 
 (c)    At least once in each calendar month, each Fund Subaccount of a Participant’s Plan Year Subaccount shall be credited with deemed earnings on the Fund corresponding to that Fund
Subaccount. The Committee shall determine the exact times and method for crediting such deemed earnings; provided, however, that the exact times for crediting such deemed earnings shall be uniform among all Participants and the exact method for
crediting such deemed earnings as of any time shall be uniform among all Participants. 
 (d)    Any
distribution, installment or withdrawal from a Participant’s Plan Year Subaccount shall be charged to the Plan Year Subaccount as soon as practicable after such distribution, installment or withdrawal is made. The amount of a distribution,
installment, or withdrawal charged to a Participant’s Plan Year Subaccount shall be charged to the Fund Subaccounts in such Plan Year Subaccount in the proportions of the relative balances of such Fund Subaccounts as of the date such
distribution, installment or withdrawal is charged to the Plan Year Subaccount. 
 ARTICLE V 
 VESTING 
 Subject to
the provisions of Section 6.1(e), 6.5, 6.7, 11.1, 11.2 and 11.6, a Participant’s Deferral Account shall be 100% vested at all times. 
 ARTICLE VI 
 DISTRIBUTIONS 
 6.1    Distribution on Retirement or Disability. 
 (a)    Unless a Participant makes a valid election under Section 6.1(b) and except as provided in Section 6.1(c), a Participant who becomes Disabled or who Retires shall receive the
balance in his or her Deferral Account in the form of quarterly installments over 15 years beginning on his or her Retirement Payment Eligibility Date. 
 (b)    Notwithstanding the foregoing, a Participant may elect, pursuant to this Section 6.1(b), to have the balance in his or her Deferral Account paid in one of the following optional forms
on his or her Retirement Payment Eligibility Date: 
  

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 (1)    a cash lump sum payable on the Participant’s Retirement
Payment Eligibility Date, or 
 (2)    quarterly installments over five, 10 or 20 years beginning on the
Participant’s Retirement Payment Eligibility Date. 
 An election under this Section 6.1(b) shall be valid only if it is made in
writing in a form prescribed by the Committee either (i) during the Initial Election Period, or (ii) at least one year before the Participant’s Retirement Payment Eligibility Date. 
 (c)    Notwithstanding the provisions of Sections 6.1(a) and (b), (i) if the total balance of a
Participant’s Deferral Account as of his or her Retirement Payment Eligibility Date is $25,000 or less, such balance in such Deferral Account shall automatically be distributed in the form of a cash lump sum as soon as practicable following the
Retirement Payment Eligibility Date. 
 (d)    If a Participant’s benefits are paid in
installments, the Participant’s Deferral Account shall continue to be credited with deemed earnings pursuant to paragraph (c) of Article IV until all amounts credited to his or her Deferral Account have been distributed. Such
installments shall be as nearly equal as possible consistent with the requirement of the preceding sentence. 
 (e)    If a Participant has begun to receive distributions under this Section 6.1 in the form of installments, the Participant may elect to receive installments over a shorter period of time than the period
originally in effect under Section 6.1(a) or elected under Section 6.1(b), subject to the following conditions: 
 (i)    such shorter period of time over which the installments shall be paid shall be five, 10 or 15 years from the Retirement Payment Eligibility Date; 
 (ii)    the election to receive installments over a shorter period of time shall be made by filing a form prescribed
by the Committee with the Committee at least 15 days before an installment would otherwise be payable; 
 (iii)    ten percent of the balance of the Deferral Account as of the date the Participant makes the election by filing the form referred to in Section 6.1(e)(ii) shall be permanently forfeited and the Company shall
have no obligation to the Participant or his Beneficiary with respect to such forfeited amount; 
 (iv)    the amount distributed in installments over the shorter period elected by the Participant is under this Section 6.1(e) shall be 90% of the balance of the Deferral Account as of the date the Participant makes
the election by filing the form referred to in Section 6.1(e)(ii). 
 6.2    Situations Other
Than Retirement, Disability or Death. The balance of the Deferral Account of a Participant whose Termination of Employment occurs for any reason other than Retirement, Disability or death shall be paid to the Participant in the form of a cash
lump sum as soon as practicable following the Participant’s Termination of Employment. If a Participant has not had a Termination of Employment as of the Payment Eligibility Date for any Plan Year 

  

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Subaccount, the balance of such Plan Year Subaccount shall be paid to the Participant in the form of a cash lump sum on the Payment Eligibility Date.

 6.3    Extension of Payment Eligibility Date and Retirement Payment Eligibility Date. A
Participant may elect to extend any Payment Eligibility Date or the Retirement Payment Eligibility Date by filing a written election with the Committee on a form prescribed by the Committee at least one year before such Payment Eligibility Date or
Retirement Payment Eligibility Date; provided, however, that such extended Payment Eligibility Date or Retirement Payment Eligibility Date shall be at least two years after the Payment Eligibility Date or Retirement Payment Eligibility Date in
effect before such extension. A Payment Eligibility Date or Retirement Payment Eligibility Date which has been so extended may be further extended by filing another election in the manner and at the time specified in this Section 6.3.

 6.4    Death. 
 (a)    If a Participant dies while employed by the Company, the following benefits shall be provided: That portion of the death benefit of any life insurance policy purchased
by the Company to insure the life of the Participant (the “Policy”) which is equal to two times the Participant’s annual Salary at the time the Participant dies shall be paid to Participant’s beneficiary under the Policy by the
insurance company which issued the Policy. Any such Policy shall be subject to the conditions set forth in a “Split-Dollar Life Insurance Agreement” between the Participant and the Company, pursuant to which the Participant may designate a
beneficiary with respect to the portion of the Policy proceeds described in the preceding sentence in the event the Participant dies prior to terminating employment with the Company. The Participant shall have the right to designate and change such
beneficiary (which need not be his Beneficiary as determined under Article VIII) at any time of a form provided by and filed with the insurance company, and the life insurance proceeds designated in this Section 6.4(a) shall be paid to
such beneficiary. The benefit payable pursuant to this Section 6.4(a) shall be paid only if a Policy has been issued on the Participant’s life and is in force at the time of the Participant’s death and any such payment shall be
subject to all conditions and exceptions set forth in the Policy. A Participant who is entitled to a death benefit pursuant to this Section 6.4(a) shall not be entitled to any other Company-paid group term life insurance benefits from the
Company under this Plan or any other Policy provided by the Company. Notwithstanding any provision of this Plan or any other document to the contrary, the Company shall not have any obligation to pay the Participant or his Beneficiary any amounts
described in this Section 6.4(a). Any such amounts shall be payable solely from the proceeds of the Policy, and if no Policy is in force, no payment shall be made. Furthermore, the Company is not obligated to maintain any Policy; and no death
benefit shall be payable under this Section 6.4(a) if the Company has been notified by the Committee to discontinue the Policy for the Participant. In addition, no Policy shall be allocated to any Deferral Account. 
 (b)    If a Participant dies before the beginning of installment payments under Sections 6.1(a) or (b), the
balance of his or her Deferral Account shall be paid to the Participant’s Beneficiary in a cash lump sum as soon as practicable after the first day of the calendar quarter following the calendar quarter in which the Participant dies. If a
Participant dies after the beginning of installment payments under Sections 6.1(a) or (b) but before receiving all of such installments, his beneficiary shall receive a cash lump sum payment as soon as practicable following the last day of

  

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the calendar month in which he dies equal to the remaining balance of his Deferral Account as of such last day. 
 6.5    Withdrawals. A Participant shall be permitted to elect to withdraw amounts from his Deferral Account as
soon as practicable after the first day of any calendar quarter, whether before or after his Termination of Employment or Payment Eligibility Date, subject to the following restrictions: 
 (a)    The election to take a withdrawal shall be made by filing a form provided by and filed with the Committee
prior to the end of any calendar month. 
 (b)    The amount of the withdrawal shall equal 90% of the
balance of the Deferral Account as of the end of the calendar month in which the withdrawal election is made. 
 (c)    The amount described in subsection (b) above shall be paid in a single cash lump sum as soon as practicable after the end of the calendar month in which the withdrawal election is made. 
 (d)    If a Participant receives a withdrawal, the remaining 10% of the balance (including the withdrawn amount) in
his Deferral Account as of the date of the withdrawal shall be permanently forfeited and the Company shall have no obligation to the Participant or his Beneficiary with respect to such forfeited amount. 
 (e)    If a Participant receives a withdrawal, the following rules apply for the balance of the Plan Year in which
the withdrawal election is made and for the following Plan Year: (i) the Participant will be ineligible to Participate in the Plan, and (ii) neither the Participant (nor his Beneficiary or Beneficiaries) shall be entitled to death benefits
under Section 6.4. 
 (f)    A Participant will be limited to a maximum of two withdrawals during
all of his periods of Plan Participation. 
 6.6    Distribution on an Unforeseeable Emergency.
The Committee may, pursuant to rules adopted by it and applied in a uniform manner, accelerate the date of distribution of a Participant’s Deferral Account because of an “Unforeseeable Emergency” at any time; provided, however, that
any determination to accelerate the distribution of the Deferral Account of any member of the Committee shall be made by the Board. Any acceleration shall be limited to the amount necessary to meet the Unforeseeable Emergency. Subject to the
foregoing, payment of any amount with respect to which a Participant has filed a request under this Section 6.6 shall be made as soon as practicable after approval of such request by the Committee. “Unforeseeable Emergency” shall mean
an unforeseeable, severe financial condition resulting from (a) a sudden and unexpected illness or accident of the Participant or his dependent (as defined in Section 152(a) of the Code); (b) loss of the Participant’s property
due to casualty; or (c) other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant, but which may not be relieved through other available resources of the Participant
(including reimbursement or compensation by insurance, liquidation of the Participant’s assets, to the extent the liquidation of the assets would not itself cause severe financial hardship, or by the cessation of 

  

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deferrals under the Plan), as determined by the Committee in accordance with uniform rules adopted by it. 
 6.7    Inability to Locate Participant. If the Committee is unable to locate a Participant or his or her
Beneficiary on any date on which a distribution is to be made from such Participant’s Deferral Account, the Company shall retain the distribution which was to be made on such date until such time as the Committee can locate the Participant or
Beneficiary; provided, however, that the Company may deduct from such retained distributions all taxes which are required to be withheld by the Company. No additional earnings shall be credited pursuant to paragraph (c) of Article IV on
any distribution retained pursuant to this Section 6.7. If the Committee is unable to locate a Participant or Beneficiary within five years following a date on which a distribution is to be made from such Participant’s Deferral Account,
the amount of such distribution shall be forfeited. In seeking to locate a Participant or Beneficiary, the Committee may take any reasonable action, but shall not be required to take any action other than communicating by registered mail to the
address or addresses last provided to the Committee by the Participant or Beneficiary. 
 ARTICLE VII 
 ADMINISTRATION 
 7.1    Committee. A Committee, consisting of not less than one person, shall be appointed by and serve at the pleasure of the Board of Directors. The number of members comprising the Committee shall be determined
by the Board, which may from time to time vary the number of members. A member of the Committee may resign by delivering a written notice of resignation to the Board. The Board may remove any member by resolution at any time. Vacancies in the
membership of the Committee shall be filled by the Board. 
 7.2    Committee Action. The
Committee shall act at meetings by affirmative vote of a majority of the members of the Committee. Any action permitted to be taken at a meeting may be taken without a meeting if, prior or subsequent to such action, a written consent to the action
is signed by all members of the Committee, and such written consent is filed with the minutes of the proceedings of the Committee. A member of the Committee shall not vote or act upon any matter which relates solely to himself or herself as a
Participant. The Chairman or any other member or members of the Committee designated by the Chairman may execute any certificate or other written direction on behalf of the Committee. 
 7.3    Powers and Duties of the Committee. The Committee shall enforce the Plan in accordance with its terms,
shall be charged with the general administration of the Plan and shall have full discretion, power, and authority necessary to accomplish its purposes, including, but not by way of limitation, the following: 
 (a)    To construe and interpret the terms and provisions of this Plan; 
 (b)    To compute and certify to the amount and kind of benefits payable to Participants and their Beneficiaries;

  

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 (c)    To maintain all records that may be necessary for the
administration of the Plan; 
 (d)    To provide for disclosure of all information and the filing or
provision of all reports and statements to Participants, Beneficiaries or governmental agencies as shall be required by law; 
 (e)    To make and publish such rules for the regulation of the Plan and procedures for the administration of the Plan as are not inconsistent with the terms hereof; 
 (f)    To appoint a plan administrator or any other agent, and to delegate to them such powers and duties in
connection with the administration of the Plan as the Committee may from time to time prescribe; and 
 (g)    To determine who are Eligible Employees, subject to the limitations described in the Plan. 
 7.4    Construction and Interpretation. The Committee shall have full discretion to construe and interpret the terms and provisions of this Plan, which interpretation or construction shall be final and binding on
all parties, including but not limited to the Company and any Participant or Beneficiary. The Committee shall administer such terms and provisions in a uniform and nondiscriminatory manner and in full accordance with any and all laws applicable to
the Plan; provided, however, the Committee shall have the discretion to determine whether an otherwise Eligible Employee is selected to participate in the Plan. 
 7.5    Information. To enable the Committee to perform its functions, the Companies shall supply full and timely information to the Committee on all matters relating to
the Compensation of all Participants, their death or other cause of termination, and such other pertinent facts as the Committee may require. 
 7.6    Compensation and Expenses. The members of the Committee shall serve without compensation for their services hereunder. The Committee is authorized at the expense of Williams-Sonoma,
Inc. to employ such legal counsel, accountants, and other advisers as it may deem advisable to assist in the performance of its duties hereunder. Expenses and fees in connection with the administration of the Plan shall be paid by Williams-Sonoma,
Inc. 
 7.7    Indemnity. To the fullest extent permitted by applicable law, Williams-Sonoma, Inc.
shall indemnify, hold harmless, and defend the Committee and each member thereof, the Board of Directors, and any delegate of the Committee who is an employee of the Company against any and all expenses, liabilities and claims, including legal fees
as they are incurred to defend against such liabilities and claims arising out of their discharge in good faith of responsibilities under or incident to the Plan, other than expenses and liabilities arising out of willful misconduct. This indemnity
shall not preclude such further indemnities as may be available under insurance purchased by the Company or provided by the Company under any bylaw, agreement or otherwise. 
  

 -12- 

 7.8    Participant Statements. Under procedures established by
the Committee, a Participant shall receive a statement with respect to such Participant’s Deferral Account on a periodic basis at least once with respect to each Plan year. 
 ARTICLE VIII 
 BENEFICIARY DESIGNATION 
 8.1    Beneficiary. Each Participant shall have the right, at any time, to designate his or her
Beneficiary(ies) (both primary as well as contingent) to receive any benefits payable under the Plan to a beneficiary upon the death of a Participant. The Beneficiary designated under this Plan may be the same as or different from the Beneficiary
designation under any other plan of the Company in which the Participant participates. 
 8.2    Beneficiary Designation; Change; Spousal Consent. A Participant shall designate his or her Beneficiary by completing and signing the Beneficiary Designation Form, and returning it to the Committee or its
designated agent. A Participant shall have the right to change a Beneficiary by completing, signing and otherwise complying with the terms of the Beneficiary Designation Form and the Committee’s rules and procedures, as in effect from time to
time. If the Participant names someone other than his or her spouse as a Beneficiary, a spousal consent, in the form designated by the Committee, must be signed by that Participant’s spouse and returned to the Committee. Upon the acceptance by
the Committee of a new Beneficiary Designation Form, all Beneficiary designations previously filed shall be cancelled. The Committee shall be entitled to rely on the last Beneficiary Designation Form filed by the Participant and accepted by the
Committee prior to his or her death. 
 8.3    Acknowledgment. No designation or change in
designation of a Beneficiary shall be effective until received, accepted and acknowledged in writing by the Committee or its designated agent. 
 8.4    No Beneficiary Designation. If a Participant fails to designate a Beneficiary as provided in Sections 8.1, 8.2 and 8.3 above or, if all designated Beneficiaries predecease the
Participant or die prior to complete distribution of the Participant’s benefits, then the Participant’s spouse shall be the designated Beneficiary. If the Participant has no surviving spouse, the benefits remaining under the Plan shall be
paid to the duly appointed and currently acting personal representative of the Participant’s estate (which shall include either the Participant’s probate estate or living trust) shall be the Beneficiary. In any case where there is no such
personal representative of the Participant’s estate duly appointed and acting in that capacity within 90 days after the Participant’s death (or such extended period as the Committee determines is reasonably necessary to allow such personal
representative to be appointed, but not to exceed 180 days after the Participant’s death), then Beneficiary shall mean the person or persons who can verify by affidavit or court order to the satisfaction of the Committee that they are legally
entitled to receive the benefits under this Plan. 
 8.5    Doubt as to Beneficiary. If the
Committee has any doubt as to the proper Beneficiary to receive payments pursuant to this Plan, the Committee shall have the right, exercisable in its discretion, to cause the Company to withhold such payments until this matter is resolved to the
Committee’s satisfaction. 
  

 -13- 

 8.6    Discharge of Obligations. The payment of
benefits under the Plan to a Beneficiary shall fully and completely discharge the Company and the Committee from all further obligations under this Plan with respect to the Participant, and that Participant’s rights under the Plan shall
terminate upon such full payment of benefits. 
 8.7    Death of Spouse or Dissolution of
Marriage. A Participant’s Beneficiary designation shall be deemed automatically revoked if the Participant names a spouse as Beneficiary and the marriage is later dissolved. Without limiting the generality of the preceding sentence, the
interest in benefits of a spouse of a Participant who has predeceased the Participant or whose marriage has been dissolved shall automatically pass to the Participant, and shall not be transferable by such spouse in any manner, including but not
limited to such spouse’s will, nor shall such interest pass under the laws of intestate succession. 
 ARTICLE IX 
 CLAIMS PROCEDURE 
 9.1    Presentation of Claim. If a Participant or Beneficiary (a “Claimant”) asserts a right to a benefit under the Plan which has not been received, the Claimant must file a written claim for such
benefit with the Committee. All other claims must be made in writing and filed with the Committee within one hundred eighty (180) days of the date on which the event that caused the claim to arise occurred. Any claim must state with
particularity the determination desired by the Claimant. The claims and review procedure set forth in this Article IX will be administered in accordance with ERISA Section 503. Any written notice that is required to be given to the Claimant
may, at the option of the Committee and in accordance with applicable guidance issued under ERISA Section 503, be provided electronically. 
 9.2    Non-Disability Claims. 
 (a)    Notification of Decision. The Committee will consider a Claimant’s claim (other than a claim for benefits due to a Disability) (a “Non-Disability Claim”) within a reasonable time, but no
later than ninety (90) days after its receipt of the Claim, unless the Committee determines that special circumstances require an extension of time for processing the Claim, in which case written notice of the extension will be furnished to the
Claimant before the termination of the initial ninety (90) day period. In no event will such extension exceed a period of ninety (90) days from the end of the initial ninety (90) day period. The extension notice will indicate the
special circumstances requiring the extension of time and the date by which the Committee expects to render its decision on the Non-Disability Claim. The Committee will notify the Claimant in writing: 
 (1)    that the Claimant’s requested determination has been made, and that the Non-Disability Claim has been
allowed in full; or 
 (2)    that the Committee has reached a conclusion contrary, in whole or in part,
to the Claimant’s requested determination, which notice will set forth: 
 (i)    the specific
reason(s) for the denial of the Claim; 
  

 -14- 

 (ii)    specific reference(s) to pertinent provisions of the Plan
upon which the denial was based; 
 (iii)    a description of any additional material or information
necessary for the Claimant to perfect the Claim, and an explanation of why such material or information is necessary; 
 (iv)    an explanation of the Plan’s Claims review procedure and the time limits applicable to such procedure; and 
 (v)    a statement of the Claimant’s right to bring a civil action under ERISA Section 502(a) following an adverse benefit determination on review (as set forth in Article 9.4).

 (b)    Review of a Denied Non-Disability Claim. On or before sixty (60) days after
receiving a notice from the Committee that the Claimant’s Non-Disability Claim has been denied, in whole or in part, the Claimant (or the Claimant’s duly authorized representative) may file with the Committee a written request for a review
of the denial of the Claim. The Claimant (or the Claimant’s duly authorized representative): 
 (1)    may, upon request and free of charge, have reasonable access to, and copies of, all documents, records and other information relevant (as defined in ERISA) to the Non-Disability Claim; 
 (2)    may submit written comments or other documents to the Committee; and/or 
 (3)    may request a hearing, which the Committee, in its sole discretion, may grant. 
 (c)    Decision on Review of the Non-Disability Claim. The Committee will render its decision on review
promptly, but not later than sixty (60) days after the Committee receives the Claimant’s timely written request for a review of the denial of the Non-Disability Claim. If the Committee determines that special circumstances require an
extension of time for reviewing the Non-Disability Claim, written notice of the extension will be furnished to the Claimant before the termination of the initial sixty (60) day period. In no event will such extension exceed a period of sixty
(60) days from the end of the initial sixty (60) day period. The extension notice will indicate the special circumstances requiring the extension of time and the date by which the Committee expects to render its decision on review. In
rendering its decision, the Committee will take into account all comments, documents, records and other information submitted by the Claimant (if any) relating to the Non-Disability Claim, without regard to whether such information was submitted or
considered in the initial Claim determination. If the Committee wholly or partly denies the Non-Disability Claim on review, the Committee will provide written notice to the Claimant which will set forth: 
 (1)    the specific reasons for the denial of the Claim; 
  

 -15- 

 (2)    the specific reference(s) to the pertinent Plan provisions
upon which the denial was based; 
 (3)    a statement that the Claimant is entitled to receive, upon
request and free of charge, reasonable access to and copies of, all documents, records and other information relevant (as defined in ERISA) to his or her Claim for benefits; and 
 (4)    a statement of the Claimant’s right to bring a civil action under ERISA Section 502(a). 

9.3    Disability Claims. 
 (a)    Notification of Decision. The Committee will consider a Claimant’s claim for benefits due to a Disability (a “Disability Claim”) within a
reasonable time, but no later than forty-five (45) days after its receipt of the Claim, unless the Committee determines that special circumstances require an extension of time to process the Claim, in which case written notice of the extension
will be furnished to the Claimant before the termination of the initial forty-five (45) day period. In no event will such extension exceed a period of thirty (30) days from the end of the initial forty-five (45) day period. However,
if the Committee determines that special circumstances require an additional extension of time to process the Disability Claim, the Committee will notify the Claimant in writing before the end of the initial thirty (30) day extension period. In
no event will such additional extension exceed a period of thirty (30) days from the end of the initial thirty (30) day extension period. The extension notice will indicate the special circumstances requiring the extension of time and the
date by which the Committee expects to render its decision on the Disability Claim. The extension notice also will explain the standards on which the entitlement to a benefit is based, the unresolved issues that prevent a decision on the Disability
Claim and the additional information needed to resolve those issues, and notice that the Claimant will be afforded at least forty-five (45) days within which to provide the specified information. The Committee will notify the Claimant in
writing: 
 (1)    that the Claimant’s requested determination has been made, and that the
Disability Claim has been allowed in full; or 
 (2)    that the Committee has reached a conclusion
contrary, in whole or in part, to the Claimant’s requested determination, which notice will set forth: 
 (i)the
specific reason(s) for the denial of the Claim; 
 (ii)specific reference(s) to pertinent provisions of the Plan upon which
the denial was based; 
 (iii)a description of any additional material or information necessary for the Claimant to perfect
the Claim, and an explanation of why such material or information is necessary; 
 (iv)an explanation of the Plan’s
Claims review procedure and the time limits applicable to such procedure; 
  

 -16- 

 (v)a copy of any internal rule, guideline, protocol or other similar criteria relied on
in denying the Claim or a statement that such rule, guideline, protocol or other similar criteria was relied on in denying the Claim and that a copy of it will be provided without charge upon request; and 
 (vi)a statement of the Claimant’s right to bring a civil action under ERISA Section 502(a) following an adverse benefit
determination on review (as set forth in Article 9.4). 
 (b)    Review of a Denied Disability
Claim. On or before one hundred eighty (180) days after receiving a notice from the Committee that the Claimant’s Disability Claim has been denied, in whole or in part, a Claimant (or the Claimant’s duly authorized representative)
may file with the Committee a written request for a review of the denial of the Claim. The Claimant (or the Claimant’s duly authorized representative): 
 (1)    may, upon request and free of charge, have reasonable access to, and copies of, all documents, records and other information relevant (as defined in ERISA) to the
Disability Claim; 
 (2)    may submit written comments or other documents to the Committee; and/or

 (3)    may request a hearing, which the Committee, in its sole discretion, may grant. 
 (c)    Decision on Review of the Disability Claim. The Committee will render its decision on review promptly,
but not later than forty-five (45) days after the Committee receives the Claimant’s timely written request for a review of the denial of the Disability Claim, unless the Committee determines that special circumstances require an extension
of time for processing the Claim, in which case written notice of the extension will be furnished to the Claimant before the termination of the initial forty-five (45) day period. In no event will such extension exceed a period of forty-five
(45) days from the end of the initial forty-five (45) day period. The extension notice will indicate the special circumstances requiring an extension of time and the date by which the Committee expects to render its decision on the
Disability Claim. In rendering its decision, the Committee will take into account all comments, documents, records and other information submitted by the Claimant (if any) relating to the Disability Claim, without regard to whether such information
was submitted or considered in the initial Claim determination. The review of the denied Disability Claim will not be conducted by the individual who decided the Claimant’s initial Claim nor the subordinate of such individual. In deciding an
appeal of any denied Disability Claim that is based in whole or in part on a medical judgment, the Committee will consult with a health care professional (who will neither be an individual who was consulted in connection with the initial Claim
denial nor the subordinate of such individual) who has appropriate training and experience in the field of medicine involved in the medical judgment. Any medical or vocational experts whose advice was obtained on behalf of the Committee in
connection with the denial of the Disability Claim will be identified, regardless of whether the advice was relied upon in denying the Claim. If the Committee wholly or partly denies the Disability Claim on review, the Committee will provide written
notice to the Claimant which will set forth: 
  

 -17- 

 (1)    the specific reasons for the denial of the Claim; 

(2)    specific reference(s) to the pertinent Plan provisions upon which the denial was based; 
 (3)    a statement that the Claimant is entitled to receive, upon request and free of charge, reasonable access to
and copies of, all documents, records and other information relevant (as defined in ERISA) to the Claimant’s Claim for benefits; 
 (4)    a copy of any internal rule, guideline, protocol or other similar criteria relied on in denying the Claim or a statement that such rule, guideline, protocol or other similar criteria was
relied on in denying the Claim and that a copy of it will be provided without charge upon request; and 
 (5)    a statement of the Claimant’s right to bring a civil action under ERISA Section 502(a). 
 9.4    Arbitration. A Claimant’s compliance with the foregoing provisions of this Article 9 is a mandatory prerequisite to a Claimant’s right to commence any arbitration
proceeding with respect to any claim for benefits under this Plan. 
 ARTICLE X 
 ARBITRATION 
 Arbitration shall be the exclusive remedy for
resolving any dispute or controversy between the Company and any employee, Participant or Beneficiary, including, but not limited to, any dispute regarding an employee’s status as a Participant, a Participant’s employment or the
termination of a Participant’s employment or any dispute regarding the application, interpretation or validity of this Plan not otherwise resolved through the claims procedure set forth in Article 9. Such arbitration shall be conducted in
accordance with the then most applicable rules of the American Arbitration Association. The arbitrator shall be empowered to grant only such relief as would be available in a court of law. In the event of any conflict between this Agreement and the
rules of the American Arbitration Association, the provisions of this Agreement shall be determinative. If the parties are unable to agree upon an arbitrator, they shall select a single arbitrator from a list designated by the office of the American
Arbitration Association having responsibility for the city in which the Participant or Beneficiary last resided while employed by the Employer of seven arbitrators, all of whom shall be retired judges who are actively involved in hearing private
cases or members of the National Academy of Arbitrators. If the parties are unable to agree upon an arbitrator from such list, they shall each strike names alternatively from the list, with the first to strike being determined by lot. After each
party has used three strikes, the remaining name on the list shall be the arbitrator. The fees and expenses of the arbitrator shall initially be borne equally by the parties; provided, however, that each party shall initially be responsible for the
fees and expenses of its own representatives and witnesses. If the parties cannot agree upon a location for the arbitration, the arbitrator shall determine the location. Judgment may be entered on the award of the arbitrator in any court having
jurisdiction. The prevailing party in the arbitration proceeding, as determined by the arbitrator, and in any enforcement or other court proceedings, shall be entitled to the extent 

  

 -18- 

 
provided by law to reimbursement from the other party for all of the prevailing party’s costs (including but not limited to the arbitrator’s
compensation), expenses and reasonable attorney’s fees. 
 ARTICLE XI 
 MISCELLANEOUS 
 11.1    Unsecured General
Creditor. Participants and their Beneficiaries, heirs, successors, and assigns shall have not legal or equitable rights, claims, or interests in any specific property or assets of any Company. No assets of the Company shall be held under any
trust, or held in any way as collateral security for the fulfilling of the obligations of the Company under this Plan. This Plan shall not cause the Company’s assets to be pledged or restricted. The Company’s obligation under the Plan
shall be merely that of an unfunded and unsecured promise of that Company to pay money in the future, and the rights of the Participants and Beneficiaries shall be no greater than those of unsecured general creditors of the Company. The Company may,
but need not, acquire investments corresponding to the Funds, and it is not under any obligation to maintain any investment it may make. Any such investments, if made, shall be in the name of the Company, and shall be its sole property in which no
Participant shall have any interest. The Plan is intended to be an unfunded plan for purposes of Title I of ERISA. 
 11.2    Restriction Against Assignment. The Company shall pay all amounts payable hereunder only to the person or persons designated by the Plan and not to or for any other person. No part of a Participant’s
Deferral Account shall be liable for the debts, contracts, or engagements of any Participant, his or her Beneficiary, or successors in interest, nor shall a Participant’s Deferral Account be subject to execution by levy, attachment, or
garnishment or by any other legal or equitable proceeding, nor shall any such person have any right to alienate, anticipate, transfer, commute, pledge, encumber, or assign any benefits or payments hereunder in any manner whatsoever, except with
regard to debts, contracts and engagements owed to the Company. Any purported alienation, anticipation, transfer, commutation, pledge, encumbrance, or assignment shall be void and of no effect, except with regard to debts, contracts and engagements
owed to the Company. If any Participant, Beneficiary or successor in interest is adjudicated bankrupt, and the Participant’s rights to distribution or payment under the Plan are subject to involuntary transfer or assignment in any such
proceeding, the Committee may in its discretion cancel such distribution or payment (or any part thereof) to or for the benefit of such Participant, Beneficiary or successor in interest. 
 11.3    Withholding. There shall be deducted from each payment to a Participant or Beneficiary made under the
plan all taxes which are required to be withheld by the Company from such payment. If any taxes, including employment taxes with respect to the Deferral Account, are required to be withheld prior to the time of payment, the Company may withhold such
amounts form other compensation paid to the Participant. 
 11.4    Amendment, Modification,
Suspension or Termination. The Board of Directors may amend, modify, suspend or terminate the Plan in whole or in part, except that no amendment, modification, suspension or termination shall have any retroactive effect to reduce any amounts
allocated to a Participant’s Deferral Account on the date of such termination. On the termination of this Plan, the Board may cause the Deferral Accounts of Participants to be immediately paid out in 

  

 -19- 

 
cash lump sum payments, or to be paid at any other time or in any other manner the Board may determine, but not later than the times such Deferral Accounts
would otherwise be paid to Participants or Beneficiaries. 
 11.5    Governing Law. This Plan
shall be construed, governed and administered in accordance with the laws of the State of California, to the extent not preempted by ERISA. 
 11.6    Receipt and Release. Any payment to a Participant or the Participant’s Beneficiary in accordance with the provisions of the Plan shall, to the extent thereof, be in full
satisfaction of all claims against the Committee and the Company. The Committee may require such Participant or Beneficiary, as a condition precedent to such payment, to execute a receipt and release to such effect. 
 11.7    Payments on Behalf of Persons Under Incapacity. In the event that any amount becomes payable under the
Plan to a person who, in the sole judgment of the Committee, is considered by reason of physical or mental condition to be unable to give a valid receipt therefor, the Committee may direct that such payment be made to any person found by the
Committee, in its sole judgment, to have assumed the care of such person. Any payment made pursuant to such determination shall constitute a full release and discharge of the Committee and the Company. 
 11.8    No Employment Rights. Participation in this Plan shall not confer upon any person any right to be
employed by the Company nor any other right not expressly provided hereunder. 
 11.9    Headings Not
Part of Agreement. Headings and subheadings in this Plan are inserted for convenience of reference only and are not to be considered in the construction of the provisions hereof. 
 11.10  ERISA. This Plan constitutes a pension benefit plan within the meaning of Section 3(2) of ERISA, which is
unfunded and maintained for the purpose of providing deferred compensation for a select group of management or highly compensation employees. This Plan constitutes the “Summary Plan Description” required under ERISA, as well as the
governing document of the Plan. The Committee is the Administrator of the Plan, within the meaning of Section 3(16) of ERISA, and the Named Fiduciary thereof, within the meaning of Section 402 of ERISA, is the Committee. 
 11.11  Validity. In case any provision of this Plan shall be illegal or invalid for any reason, said illegality or
invalidity shall not affect the remaining parts hereof, but his Plan shall be construed and enforced as if such illegal and invalid provision had never been inserted herein. 
 11.12  Distribution in the Event of Taxation. If, for any reason, all or any portion of a Participant’s benefit under this Plan becomes taxable to the Participant prior to
receipt, a Participant may petition the Committee for a distribution of that portion of his or her benefit that has become taxable. Upon the grant of such a petition, which the Committee may grant or refrain from granting in its sole discretion, the
Company shall distribute to the Participant immediately available funds in an amount equal to the taxable portion of his or her benefit (which amount shall not exceed the balance in such Participant’s Deferral Account as of the last day of the
calendar month before such 

  

 -20- 

 
distribution). If the petition is granted, the tax liability distribution shall be made within ninety (90) days of the date when the Participant’s
petition is granted. 
  

 -21-Williams-Sonoma, Inc. Executive Deferred Compensation Plan

 Exhibit 10.41 
 WILLIAMS-SONOMA, INC. 
 EXECUTIVE DEFERRED COMPENSATION PLAN 
 (Effective as of January 1, 2005) 

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page
		
	 SECTION 1 DEFINITIONS
	  	1
			
	             1.1
	  	 “Bankruptcy Court Approval”
	  	1
	             1.2
	  	 “Beneficiary”
	  	1
	             1.3
	  	 “Board of Directors” or “Board”
	  	1
	             1.4
	  	 “Bonus”
	  	1
	             1.5
	  	 “Change of Control Event”
	  	1
	             1.6
	  	 “Code”
	  	1
	             1.7
	  	 “Committee”
	  	2
	             1.8
	  	 “Company”
	  	2
	             1.9
	  	 “Compensation”
	  	2
	             1.10
	  	 “Corporate Dissolution”
	  	2
	             1.11
	  	 “Deferral Account”
	  	2
	             1.12
	  	 “Disability” or “Disabled”
	  	2
	             1.13
	  	 “Domestic Relations Order”
	  	2
	             1.14
	  	 “Election Form”
	  	2
	             1.15
	  	 “Eligible Employee”
	  	3
	             1.16
	  	 “Employer”
	  	3
	             1.17
	  	 “ERISA”
	  	3
	             1.18
	  	 “401(k) Plan”
	  	3
	             1.19
	  	 “Fund” or “Funds”
	  	3
	             1.20
	  	 “Participant”
	  	3
	             1.21
	  	 “Plan”
	  	3
	             1.22
	  	 “Plan Year”
	  	3
	             1.23
	  	 “Plan Year Subaccount”
	  	3
	             1.24
	  	 “Retirement”
	  	3
	             1.25
	  	 “Salary”
	  	3
	             1.26
	  	 “Separation from Service”
	  	4
	             1.27
	  	 “Specified Employee”
	  	4
	             1.28
	  	 “Unforeseeable Emergency”
	  	4
	             1.29
	  	 “Year of Service”
	  	4
		
	 SECTION 2 PARTICIPATION
	  	4
			
	             2.1
	  	Participation	  	4
	             2.2
	  	Continuing Participation	  	4
		
	 SECTION 3 COMPENSATION DEFERRAL ELECTIONS
	  	5
			
	             3.1
	  	Elections to Defer Compensation	  	5
	             3.2
	  	Deemed Investment Elections	  	7
	             3.3
	  	Cancellation of Compensation Deferrals	  	8
		
	 SECTION 4 ACCOUNTING
	  	9

  

 -i- 

 TABLE OF CONTENTS 
 (continued) 
  

					
	 	  	 	  	Page
			
	             4.1
	  	Deferral Accounts	  	9
	             4.2
	  	Accounting Methods	  	9
	             4.3
	  	Periodic Reports	  	10
		
	 SECTION 5 VESTING
	  	10
		
	 SECTION 6 DISTRIBUTIONS
	  	10
			
	             6.1
	  	Distribution on Retirement or Disability	  	10
	             6.2
	  	Distribution on Separation from Service Not Due to Retirement, Disability or Death	  	12
	             6.3
	  	Distribution on Death	  	12
	             6.4
	  	Required Six-Month Delay in Payment for Specified Employees	  	12
	             6.5
	  	Acceleration of Payment(s) Permitted Under Certain Circumstances	  	12
	             6.6
	  	Unforeseeable Emergency	  	13
	             6.7
	  	Inability to Locate Participant or Beneficiary	  	14
	             6.8
	  	Domestic Relations Order Distributions.	  	14
		
	 SECTION 7 CHANGE OF CONTROL
	  	14
			
	             7.1
	  	No New Participants Following Change of Control	  	14
	             7.2
	  	No Deferrals Following a Change of Control	  	14
	             7.3
	  	Discretionary Termination and Accelerated Plan Distributions 30 Days Prior to or Within 12 Months Following a Change in Control	  	14
		
	 SECTION 8 TERMINATION DUE TO CORPORATE DISSOLUTION OR PURSUANT TO
	  	
	             BANKRUPTCY COURT APPROVAL
	  	15
			
	             8.1
	  	Corporate Dissolution	  	15
	             8.2
	  	Bankruptcy Court Approval	  	15
		
	 SECTION 9 BENEFICIARY DESIGNATION
	  	15
			
	             9.1
	  	Beneficiary	  	15
	             9.2
	  	Beneficiary Designation; Change; Spousal Consent	  	15
	             9.3
	  	Acknowledgment	  	15
	             9.4
	  	No Beneficiary Designation	  	16
	             9.5
	  	Doubt as to Beneficiary	  	16
	             9.6
	  	Discharge of Obligations	  	16
	             9.7
	  	Death of Spouse or Dissolution of Marriage	  	16
		
	 SECTION 10 ADMINISTRATION OF THE PLAN
	  	16
			
	             10.1
	  	Committee	  	16
	             10.2
	  	Committee Action	  	17
	             10.3
	  	Powers and Duties of the Committee	  	17
	             10.4
	  	Decisions of the Committee and its Delegates	  	18

  

 -ii- 

 TABLE OF CONTENTS 
 (continued) 
  

					
	 	  	 	  	Page
			
	             10.5
	  	Eligibility to Participate	  	18
	             10.6
	  	Compensation and Expenses	  	18
	             10.7
	  	Information	  	18
	             10.8
	  	Indemnity	  	18
		
	 SECTION 11 CLAIMS AND REVIEW PROCEDURE
	  	18
			
	             11.1
	  	Presentation of Claim	  	18
	             11.2
	  	Non-Disability Claims	  	19
	             11.3
	  	Disability Claims.	  	20
	             11.4
	  	Exhaustion of Claims and Review Procedure and Legal Action.	  	23
		
	 SECTION 12 MODIFICATION OR TERMINATION OF THE PLAN
	  	23
			
	             12.1
	  	Companies’ Obligations Limited	  	23
	             12.2
	  	Right to Amend or Terminate	  	23
	             12.3
	  	Retroactive Amendment Permitted	  	23
	             12.4
	  	Effect of Termination	  	23
		
	 SECTION 13 GENERAL
	  	23
			
	             13.1
	  	Unsecured General Creditors	  	23
	             13.2
	  	Restriction Against Assignment	  	24
	             13.3
	  	Governing Law	  	24
	             13.4
	  	Receipt and Release	  	24
	             13.5
	  	Tax Withholding	  	24
	             13.6
	  	Severability	  	24
	             13.7
	  	No Guarantees Regarding Tax Treatment	  	24
	             13.8
	  	Captions	  	25
	             13.9
	  	No Employment Rights	  	25
	             13.10
	  	Payments on Behalf of Persons Under Incapacity	  	25
	             13.11
	  	Rights and Duties	  	25
		
	 EXECUTION
	  	26

  

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 WILLIAMS-SONOMA, INC. 
 EXECUTIVE DEFERRED COMPENSATION PLAN 
 (Effective as of January 1, 2005) 
 Williams-Sonoma, Inc. (the “Company”) hereby establishes this Williams-Sonoma, Inc. Executive Deferred Compensation Plan (the
“Plan”), effective as of January 1, 2005 (the “Effective Date”). 
 The purpose of the Plan is to
provide certain supplemental retirement income benefits to a select group of management or highly compensated employees of the Company and its affiliates who have been selected for participation in the Plan. The Plan is an unfunded deferred
compensation plan that is intended to (1) qualify for the exemptions provided in sections 201, 301 and 401 of the Employee Retirement Income Security Act of 1974, as amended, and (2) comply with the requirements of Section 409A of the
Internal Revenue Code of 1986, as amended, and applicable guidance issued thereunder (collectively, “Code Section 409A”). 
 From and after the Effective Date, this Plan replaces the Williams-Sonoma, Inc. Pre-2005 Executive Deferral Plan, as amended, which was frozen to new deferrals effective after December 31, 2004 so as to qualify
the amounts deferred on or before December 31, 2004 under such prior plan for “grandfather” treatment under Code Section 409A. 
 SECTION 1 
 DEFINITIONS 
 For purposes of this Plan, the following words and phrases will have the following meanings unless a different meaning is plainly required by the context: 
 1.1    “Bankruptcy Court Approval” means the approval of a bankruptcy court pursuant to 11 U.S.C.
§ 503(b)(1)(A). 
 1.2    “Beneficiary” means the person or persons entitled to
receive benefits under the Plan upon the death of a Participant, as provided in Section 9. 
 1.3    “Board of Directors” or “Board” means the Board of Directors of the Employer. 
 1.4    “Bonus” means any cash incentive compensation that is payable to an Eligible Employee, in addition to his or her Salary, which the Committee, in its discretion, has
designated as being eligible for deferral under the Plan. 
 1.5    “Change of Control
Event” means a change in ownership or effective control of the Company or in the ownership of a substantial portion of the Company’s assets, as defined under Code Section 409A. 
 1.6    “Code” means the Internal Revenue Code of 1986, as amended. Reference to a specific
section of the Code will include such section, any valid regulation or other Treasury 

 
Department or Internal Revenue Service guidance promulgated thereunder, and any comparable provision of any future legislation amending, supplementing or
superseding such section. 
 1.7    “Committee” means the administrative committee
charged with responsibility for the general administration of the Plan pursuant to Section 10, as it may be constituted from time to time. 
 1.8    “Company” means the Employer and each corporation, trade or business that is, together with the Employer, a member of a controlled group of corporations or under common
control (within the meaning of Code Sections 414(b) or (c)); provided, however, that in applying Code Sections 1563(a)(1), (2), and (3) for purposes of determining a controlled group of corporations under Code Section 414(b) and in
applying Treasury Regulation Section 1.414(c)-2 for purposes of determining trades or businesses that are under common control for purposes of Code Section 414(c), the phrase “at least 50 percent” will be used instead of “at
least 80 percent” at each place it appears in such sections. 
 1.9    “Compensation” means the Salary and Bonus (if any) of an Eligible Employee. An Eligible Employee’s Compensation will not include any other type of remuneration, including any severance
pay. 
 1.10  “Corporate Dissolution” means a dissolution of the Company that is taxed under Code
Section 331. 
 1.11  “Deferral Account” means, for each Participant, the bookkeeping account
maintained by the Committee for the Participant under Section 4.1 which will be the sum of the Participant’s Plan Year Subaccount(s). 
 1.12  “Disability” or “Disabled” means (a) the inability of a Participant 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 can be expected to last for a continuous period of not less than twelve (12) months, or (b) the Participant is, 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 twelve (12) months, receiving income replacement benefits for a period of not less than three (3) months under an
accident and health plan covering employees of the Employer. The Committee will determine whether or not a Participant is Disabled based on such evidence as the Committee deems necessary or advisable. 
 1.13  “Domestic Relations Order” means a court order that qualifies as a domestic relations order under Code
Section 414(p)(1)(B). 
 1.14  “Election Form” means the form, which may be in electronic
format, prescribed from time to time by the Committee that an Eligible Employee or Participant must properly complete, sign and return to the Committee (or its designated agent) to make an election under the Plan. 
  

 -2- 

 1.15    “Eligible Employee” means a member of a
group of select management or highly compensated employees of the Company who has been notified that he or she has been selected by the Committee (in its sole discretion) to participate in the Plan. 
 1.16    “Employer” means Williams-Sonoma, Inc. and any successor corporation. 
 1.17    “ERISA” means the Employee Retirement Income Security Act of 1974, as
amended. Reference to a specific section of ERISA will include such section, any valid regulation promulgated thereunder, and any comparable provision of any future legislation amending, supplementing or superseding such section. 
 1.18    “401(k) Plan” means the Williams-Sonoma, Inc. 401(k) Plan, as amended from time to time.

 1.19    “Fund” or “Funds” means one or more of the mutual funds or other
investment vehicles selected by the Committee pursuant to Section 3.2.1. 
 1.20    “Participant” means an individual who (a) has become a Participant in the Plan pursuant to Section 2.1, and (b) has not ceased to be a Participant pursuant to Section 2.2.

 1.21    “Plan” means the Williams-Sonoma, Inc. 2005 Executive Deferred Compensation
Plan , as set forth herein and as hereafter amended from time to time. 
 1.22    “Plan
Year” means the calendar year.
 1.23    “Plan Year Subaccount” means, with
respect to a Participant, the bookkeeping account established and maintained by the Committee for the Participant under Section 4.1 to reflect, for each Plan Year, the deferrals of Salary made by the Participant for such Plan Year, the
deferrals of Bonuses (if any) made by the Participant for the fiscal year of the Company which includes the last day of such Plan Year, any deemed earnings credited thereon, and any withdrawals and/or distributions debited thereto. 
 1.24    “Retirement” means a Participant’s Separation from Service on or after his or her
attainment of both age fifty-five (55) and five (5) Years of Service. 
 1.25    “Salary” means the base pay that is payable to an Eligible Employee by the Company with respect to services performed during any period by the Employee and does not include any other type of
remuneration (such as any severance payments, commissions, overtime, bonuses, or fringe benefits). Notwithstanding the foregoing, an Eligible Employee’s Salary will be calculated before any reduction for compensation voluntarily deferred or
contributed by the Employee pursuant to all qualified and nonqualified plans of the Company and will be calculated to include amounts not otherwise included in the Employee’s gross income under Code Sections 125, 132, 402(e)(3) or 402(h)
pursuant to plans or arrangements maintained by the Company; provided, however, that such amounts will be included in compensation only to the extent that had there been no such plan, the amount would have been payable in cash to the Employee.

  

 -3- 

 1.26    “Separation from Service” means a
Participant’s “separation from service” as defined in Code Section 409A. For this purpose, the employment relationship will be treated as continuing intact while the Participant is on military leave, sick leave or other bona fide
leave of absence, except that if the period of such leave exceeds six (6) months and the Participant does not retain a right to re-employment under an applicable statute or by contract, then the employment relationship will be deemed to have
terminated on the first day immediately following such six-month period. A leave of absence constitutes a bona fide leave of absence only if there is a reasonable expectation that the Participant will return to perform services for the Company.

 1.27    “Specified Employee” means a Participant who, as of the date of his or her
Separation from Service, is a key employee of the Company. For this purpose, a Participant is a key employee if he or she meets the requirements of Code Section 416(i)(1)(A)(i), (ii) or (iii) (disregarding Code
Section 416(i)(5)). As of 2008, this generally includes (a) the top fifty (50) Company officers with compensation greater than $150,000 per year, (b) a 5% owner of the Company, or (c) a 1% owner of the Company with
compensation greater than $150,000 per year. For purposes of the preceding sentence, “compensation” means compensation as such term is defined in the 401(k) Plan for purposes of Code Section 415. 
 1.28    “Unforeseeable Emergency” means (a) a severe financial hardship to a Participant
resulting from an illness or accident of the Participant or his or her spouse, Beneficiary or dependent (as defined in section 152 of the Code, but without regard to subsections (b)(1), (b)(2) and (d)(1)(B) thereof), (b) loss of the
Participant’s property due to casualty (including the need to rebuild a home following damage to a home not otherwise covered by insurance, for example, not as a result of a natural disaster), or (c) other similar extraordinary and
unforeseeable circumstances arising as a result of events beyond the control of the Participant. The Committee will determine whether or not a Participant has incurred an Unforeseeable Emergency based on such evidence as the Committee deems
necessary or advisable. 
 1.29    “Year of Service” means a full year in which a
Participant has been continuously employed by the Company. For this purpose, a year of employment will be a 365 day period (or 366 day period in the case of a leap year) that, for the first year of employment, commences on the Employee’s date
of hire and that, for any subsequent year, commences on an anniversary of that hiring date. The Committee may, in its sole discretion, credit a Participant with any partial year of employment. Periods during which an Eligible Employee is on a paid
leave of absence or suffers from a Disability will be deemed to be periods of continuous employment. 
 SECTION 2 
 PARTICIPATION 
 2.1    Participation. An Eligible Employee will become a Participant in the Plan by electing to defer his or her Compensation in accordance with Section 3. 
 2.2    Continuing Participation. An Eligible Employee who has become a Participant will continue to be a
Participant until all of his or her benefits are distributed under the Plan. The Committee may determine at any time, in its sole discretion, that a Participant is no longer an 

  

 -4- 

 
Eligible Employee. In the event a Participant ceases to be an Eligible Employee, if such individual has not undergone a Separation From Service, he or she
shall continue to make Compensation deferral contributions under the Plan through the end of the Plan Year in which he or she ceases to be an Eligible Employee. Thereafter, such individual shall not make any further Compensation deferral
contributions to the Plan unless or until he or she again becomes an Eligible Employee. 
 SECTION 3 
 COMPENSATION DEFERRAL ELECTIONS 
 3.1    Elections to Defer Compensation. Each Eligible Employee’s decision to defer his or her Compensation under the terms of the Plan will be entirely voluntary. 
 3.1.1    General Timing Rule for Compensation Deferral Elections. Except as otherwise provided in this
Section 3.1, an Eligible Employee may elect to defer Compensation that is payable for services performed during any Plan Year by submitting an Election Form to the Committee on or before the deadline established by the Committee, in its
discretion (the “Submission Deadline”), which in no event may be later than the December 31 that immediately precedes such Plan Year. Any deferral election made in accordance with this Section 3.1.1 will become irrevocable
effective as of the Submission Deadline, except as otherwise specified in the Plan. 
 3.1.2    Timing Rule for Compensation Deferral Elections of Newly-Eligible Employees. An individual who first becomes an Eligible Employee during any Plan Year may elect to defer Compensation that is payable for
services performed after the election, as described below, by submitting an Election Form to the Committee on or before the Submission Deadline, which in no event may be later than thirty (30) days after he or she first becomes an Eligible
Employee (the “Initial Election Period”). However, no such deferral election may be made if the Eligible Employee was previously eligible to participate in this Plan or in any other plan that is required to be aggregated with this Plan
under Code Section 409A. A Compensation deferral election that is made by an Eligible Employee during the Initial Election Period will be effective only (a) with respect to Salary that is payable for services performed beginning with the
first pay period immediately following the end of the Initial Election Period, and (b) with respect to the portion of the Bonus (if any) that is payable for services performed after the end of the Initial Election Period, which shall be
determined by multiplying the total Bonus (or the percentage of the total Bonus that was deferred) by a fraction, the numerator of which is the number of days remaining in the Plan Year after the initial election becomes irrevocable, and the
denominator of which is 365 (or 366 in the event of a leap year). Any deferral election made in accordance with this Section 3.1.2 will become irrevocable effective as of the Submission Deadline, except as otherwise specified in the Plan.

 3.1.3    Timing Rule for Bonus Deferral Elections. An Eligible Employee may elect to defer any
Bonus that is payable for services performed during any fiscal year of the Company, by submitting an Election Form to the Committee on or before the Submission Deadline, which in no event may be later than the last day of the immediately preceding
fiscal year of the Company. Any deferral election made in accordance with this Section 3.1.3 will become irrevocable effective as of the Submission Deadline, except as otherwise specified in the Plan. 
  

 -5- 

 3.1.4    Timing Rule for Performance-Based or Bonus Compensation
Deferral Elections. Notwithstanding the provisions of Section 3.1.3, if the Committee (in its discretion) determines that an Eligible Employee’s Bonus qualifies as “performance-based compensation” as defined in Code
Section 409A (“Performance-Based Compensation”) or (effective before January 1, 2009) “bonus compensation” that is based on services performed over a period of at least twelve (12) months (as determined under
Internal Revenue Notice 2005-1, Q/A-22) (“Bonus Compensation”), then the Eligible Employee may, if the Committee, in its discretion, permits such, elect to defer such Performance-Based or Bonus Compensation (as the case may be) by
submitting an Election Form to the Committee on or before the Submission Deadline, which in no event may be later than six (6) months before the end of the performance/ service period. In order for an Eligible Employee to be eligible to make a
deferral election for Performance-Based Compensation in accordance with the deadline established pursuant to this Section 3.1.4, he or she must have performed services continuously from the later of the beginning of the performance period for
such Compensation or the date on which the performance criteria for such Compensation was established through the date on which the deferral election is made; provided, however, that no such election may be made after the amount of such Compensation
has become readily ascertainable. Any deferral election made in accordance with this Section 3.1.4 will become irrevocable effective as of the Submission Deadline, except as otherwise specified in the Plan. 
 3.1.5    Amount of Deferral. Subject to the other limitations set forth in this Section 3.1, the amount
of Compensation that an Eligible Employee may elect to defer is as follows: 
 (a)    Any whole
percentage of Salary up to seventy-five percent (75%); and/or 
 (b)    Any whole percentage of Bonus up
to one hundred percent (100%). 
 3.1.6    Maximum Deferrals. To the extent permissible under
Code Section 409A, a Participant’s Salary or Bonus deferral amount in any Plan Year will be limited to the extent that the amount of the Salary or Bonus remaining undeferred in that Plan Year is less than the amount of payroll taxes that
the Company will owe on the Participant’s Compensation and all other compensation that he or she receives from the Company in that Plan Year. In addition, an election to defer Salary or Bonus will not be effective to the extent it exceeds the
maximum amount set forth in Section 3.1.5. 
 3.1.7    Minimum Deferrals. For each Plan Year
for which a Participant elects to defer any portion of his or her Salary, the minimum percentage of Salary that may be deferred is five percent (5%) or such lesser percentage (but not below zero percent) as may be established by the Committee
pursuant to rules adopted by it and applied in a uniform manner. 
 3.1.8    Limitation on Changes to
Deferral Amounts. Notwithstanding any contrary Plan provision, the dollar amount of any Compensation deferrals may not be reduced or increased by virtue of any Participant election to increase, decrease or terminate his or her rate of deferral
in any other Company employee benefit plan, except as permitted under Code Section 409A with respect to 

  

 -6- 

 
changes in deferral elections under the 401(k) Plan or a Code Section 125 cafeteria plan (or as otherwise permitted under Code Section 409A).

 3.1.9    Duration of Salary Deferral Election. Any Salary deferral election made under
Section 3.1.1 or 3.1.2 will be irrevocable with respect to the Plan Year for which it is made, and will remain in effect, notwithstanding any change in the Participant’s Salary, until changed or cancelled in accordance with the terms of
the Plan; provided, however, that such election automatically will be cancelled under Section 2.2 for any Plan Year or portion thereof for which the Participant is not an Eligible Employee. Subject to the other limitations set forth in this
Section 3.1, an Eligible Employee may increase, decrease or cancel his or her Salary deferral election for any subsequent Plan Year in accordance with Section 3.1.1. 
 3.1.10    Duration of Bonus Deferral Election. Any Bonus deferral election made under Section 3.1.2, 3.1.3 or 3.1.4 will be irrevocable with respect to the Bonus
that is otherwise payable for services performed during the Company’s fiscal year for which the election is made. Subject to the other limitations set forth in this Section 3.1, an Eligible Employee may make a new deferral election with
respect to any Bonus that is payable for services performed during any subsequent fiscal year of the Company in accordance with Section 3.1.3 or 3.1.4 (as applicable). 
 3.1.11    Year-End Cross-Over Payroll Periods. In the case of a Participant’s Salary deferral election, any payroll period that relates to a period of service that
crosses over the calendar year end will be covered by the Participant’s deferral election (if any) in effect for the immediately preceding year. 
 3.1.12    USERRA Rights. Notwithstanding the foregoing provisions of this Section 3.1, the Committee may (in its discretion) provide an Eligible Employee with a Compensation deferral
election to satisfy the requirements of the Uniformed Services Employment and Reemployment Rights Act of 1994, as amended (“USERRA”), if applicable. 
 3.2    Deemed Investment Elections. 
 3.2.1    Selection of Funds. The Committee will select the Funds whose performance will measure the amounts to be credited to the Deferral Accounts of Participants pursuant to Section 4.1(c). The
Committee may, in its discretion, change its selection of the Funds at any time. If a Participant has elected pursuant to Section 3.2.2 to make a deemed investment of all or a portion of his or her Plan Year Subaccount in a Fund which the
Committee decides to discontinue, his or her Plan Year Subaccount will be deemed invested after such discontinuance in the continuing Fund which the Committee determines, in its discretion, most nearly resembles the discontinued Fund. 
 3.2.2    Deemed Investment Election. The Committee will provide each Participant with a list of the Funds
available for hypothetical investment of his or her Deferral Account balance. The Participant will designate, when the Participant makes deferral elections under Section 3.1, on the form prescribed by the Committee for such purpose, one or more
of such Funds in which each of his or her Plan Year Subaccounts will be deemed to be invested. The Participant may make a separate designation for each of his or her Plan Year Subaccounts. In making the designation 

  

 -7- 

 
pursuant to this Section 3.2.2, the Participant may specify that all or any whole percentage of at least one percent (1%) of his or her Plan Year
Subaccount balance be deemed to be invested in one or more of the Funds. If a Participant does not elect to have his or her Plan Year Subaccount deemed invested in any of the Funds as described in this Section 3.2.2, then the Plan Year
Subaccount automatically will be deemed invested in the Plan’s default Fund, as determined by the Committee, in its sole discretion. 
 3.2.3    Changes in Deemed Investment Elections. On or before the twentieth (20th) day of any calendar month (or such later day as may be prescribed by the Committee, in its discretion, but not later than the last day of the calendar month), a Participant may change the designation of the Funds in which the
balances of any of his or her Plan Year Subaccounts will be deemed to be invested. Such change may be made with respect to any whole percentage of at least ten percent (10%) of a Plan Year Subaccount balance. Such change must be made by timely
filing an Election Form with the Committee reflecting such change. Such change will be effective as of the first day of the immediately following calendar month. The Committee may provide for more rapid effectiveness of allocation changes for all
Participants and for more liberal ability to reallocate deemed investments. 
 3.2.4    No Actual
Investment. Notwithstanding any contrary Plan provision, the Funds are to be used for measurement purposes only, and the Company will not be obligated in any way to actually invest any money in the Funds, or to acquire or maintain any actual
investment. In the event that the Company, in its own discretion, decides to invest funds in any or all of the investments on which the Funds are based, no Participant or any other person will have any rights in or to such investments themselves.
Without limiting the foregoing, a Participant’s Deferral Account balance will at all times be a bookkeeping entry only and will not represent any investment made on his or her behalf by the Company; the Participant will at all times remain an
unsecured creditor of the Company. 
 3.3    Cancellation of Compensation Deferrals.
Notwithstanding any contrary provision of Section 3.1: 
 3.3.1    Hardship Distribution under
401(k) Plans. In the event that a Participant receives a hardship distribution under the 401(k) Plan or any other plan maintained by the Company that contains a qualified cash or deferred arrangement under Code Section 401(k) (collectively,
the “401(k) Plans”), the Participant’s Compensation deferrals (if any) under this Plan will be cancelled for a period of six (6) months from the date that the Participant received such hardship distribution. Notwithstanding the
foregoing, the Participant’s Compensation deferrals will not be so cancelled if the Committee determines that such cancellation is not required in order to preserve the tax-qualification of the 401(k) Plans. 
 3.3.2    Unforeseeable Emergency. A Participant’s deferral election shall be automatically cancelled in
the event the Participant obtains an unforeseeable emergency distribution from the Plan pursuant to Section 6.6 hereof. The Participant, if still an Eligible Employee, may re-enroll in the Plan in the next open enrollment period. 
  

 -8- 

 3.3.3    Irrevocability of Prior Compensation Deferrals.
Notwithstanding the foregoing, a Participant’s election to make Compensation deferrals under Section 3.1 will be irrevocable as to amounts already deferred as of the effective date of any cancellation in accordance with this
Section 3.3. 
 3.3.4    Resumption of Compensation Deferrals. A Participant whose
Compensation deferrals have been cancelled pursuant to this Section 3.3 may later resume making Compensation deferrals under the Plan only in accordance with Section 3.1. 
 SECTION 4 
 ACCOUNTING 
 4.1    Deferral Accounts. The Committee will establish and maintain the Plan Year Subaccounts and the Deferral
Account (which will be the sum of all Plan Year Subaccounts) for each Participant. Each Plan Year Subaccount of each Participant will be further divided into separate subaccounts (“Fund Subaccounts”), each of which corresponds to a Fund
elected by the Participant pursuant to Section 3.2. Each Plan Year Subaccount of each Participant will be credited as follows: 
 (a)    Within five (5) business days after deferred Salary has been withheld from a Participant’s paycheck, the Committee will credit each of the Participant’s Fund Subaccounts with
amounts equal to the deferred Salary in accordance with the Participant’s election under Section 3.2; that is, the portion of the Participant’s deferred Salary that he or she has elected to be deemed to be invested in a certain Fund
will be credited to the Fund Subaccount corresponding to that Fund. 
 (b)    Within five
(5) business days after a deferred Bonus has been withheld from a Participant’s paycheck, the Committee will credit each of the Participant’s Fund Subaccounts with amounts equal to the deferred Bonus in accordance with the
Participant’s election under Section 3.2; that is, the portion of the Participant’s deferred Bonus that he or she has elected to be deemed to be invested in a certain Fund will be credited to the Fund Subaccount corresponding to that
Fund. 
 (c)    At least once in each calendar month, each Fund Subaccount of a Participant’s Plan
Year Subaccount will be credited with deemed earnings on the Fund corresponding to that Fund Subaccount. 
 (d)    Any distribution or withdrawal from Participant’s Plan Year Subaccount will be charged to the Plan Year Subaccount as soon as practicable after such distribution or withdrawal is made. The amount of a
distribution or withdrawal charged to a Participant’s Plan Year Subaccount will be charged to the Fund Subaccounts in such Plan Year Subaccount in the proportions of the relative balances of such Fund Subaccounts as of the date such
distribution or withdrawal is valued. 
 4.2    Accounting Methods. The accounting methods or
formulae to be used under the Plan for the purpose of maintaining the Participants’ Deferral Accounts, including the exact times and method for crediting any deemed earnings, will be determined by the Committee, in its sole 

  

 -9- 

 
discretion; provided, however that the exact times and/or method for crediting such deemed earnings will be uniform among all Participants. 
 4.3    Periodic Reports. Under procedures established by the Committee, each Participant will be furnished
with a periodic statement of his or her Deferral Account, reflecting the status of his or her interest in the Plan, at least once with respect to each Plan Year. 
 SECTION 5 
 VESTING 
 Subject to the provisions of Sections 13.1 (Participants are unsecured general creditors) and 13.5 (Company’s right to deduct required tax withholding), a Participant’s Deferral Account
balance at all times will be one hundred percent (100%) vested and nonforfeitable. 
 SECTION 6 
 DISTRIBUTIONS 
 6.1    Distribution on Retirement or Disability. 
 6.1.1    Time
for Payment. Subject to the other provisions of Section 6 below, a distribution of a Participant’s Deferral Account balance will be made or commenced on the date (which must be the first day of a calendar year) a number of years after
the Participant’s Retirement or Disability (the “Retirement Payment Eligibility Date”), which number may be designated by the Participant to the extent provided for in his or her initial and annual deferral elections and which number
may differ for different Plan Year Subaccounts. If the Participant makes no such designation, then the “Retirement Payment Eligibility Date” will be the first day of the calendar quarter immediately following the Participant’s
Retirement or Disability, or as soon as practicable thereafter, but in no event later than the end of the same calendar year. 
 6.1.2    Form of Payment. The distribution in Section 6.1.1 will be paid in a cash lump sum or quarterly installments over five (5), ten (10), fifteen (15) or twenty (20) years, as designated by the
Participant in his or her deferral elections in respect of any Plan Year Subaccount. If the Participant makes no such designation, then such distribution will be paid in a cash lump sum. In no event shall any Plan payments be made more than
twenty-two (22) years following a Participant’s Separation From Service. Any payment scheduled to be made more than twenty-two (22) years following a Participant’s Separation From Service shall be paid with the last scheduled
payment with the twenty-two (22) year period. 
 6.1.3    Installment Payments. If a
Participant’s Deferral Account balance is to be paid in quarterly installments pursuant to Section 6.1.2, his or her first installment will be equal to the balance then credited to the Account, divided by the number of installments to be
made. Each subsequent installment will be paid to the Participant on the first day of the immediately following calendar quarter, or as soon as practicable thereafter, but in no event later than the end of the same calendar year, and will be equal
to the balance then credited to the Account, divided by the number of installments remaining to be paid. While a Participant’s Deferral Account is in installment payout 

  

 -10- 

 
status, the unpaid Account balance will continue to be credited with deemed earnings pursuant to Section 4.1(c). All installment payments under the Plan
will be considered a single payment for purposes of complying with Code Section 409A. 
 6.1.4    Postponement of Retirement Payment Eligibility Date. 
 (a)    Subject to the other provisions of Section 6, a Participant may elect to extend the Retirement Payment Eligibility Date for his or her Plan Year Subaccounts (the “Prior Retirement Payment Eligibility
Date”) by submitting an Election Form to the Committee to that effect, provided that the following requirements are met: (a) the new election will not take effect until at least twelve (12) months after the date on which the Election
Form is submitted; (b) if the new election relates to a payment on account of Retirement, the new Retirement Payment Eligibility Date is at least five (5) years after the Prior Retirement Payment Eligibility Date; and (c) the Election
Form is submitted no less than twelve (12) months before the Prior Retirement Payment Eligibility Date. A Retirement Payment Eligibility Date that has been so extended may be further extended by submitting another Election Form in the manner
and at the times specified in this Section 6.1.4. In no event, however, will a Plan payment be made more than thirty years following the initial Retirement Eligibility Date. If a Plan payment is scheduled to be made more than thirty years
following the initial Retirement Eligibility Date, it will instead be paid out in the thirtieth year following the initial Retirement Eligibility Date. 
 (b)    Because Plan installment payments are considered a single payment for purposes of Code Section 409A, a subsequent election may accelerate the method of distribution. For example, if a
Participant initially elected to receive Retirement or Disability payments in five annual installments following her Retirement Eligibility Date, she could make a timely election to instead take a lump-sum distribution five years following her
Retirement Eligibility Date. Moreover, a subsequent election may change a lump-sum distribution to an installment election, so long as, in either case, the initial payment is delayed for a period of at least five (5) years, the election is not
effective for one (1) year and is made at least one (1) year in advance of the date upon which the first distribution would have otherwise been made. 
 (c)    Because installment payments are treated as a single payment under the Plan, any subsequent election must apply to all of the installment payments for a particular Plan
Year Subaccount. For example, if a Participant initially elected to receive Retirement or Disability payments relating to her 2009 Plan Year Subaccount in five annual installments following her Separation From Service, the Participant may not elect
to defer the 1st, 2d, 3rd and 5th installments only, but must also defer the 4th
installment. 
 6.1.5    Automatic Lump Sum Payment. Notwithstanding any other Plan provisions,
if, on the date of a Participant’s Separation From Service, their Deferral Account totals, less than $15,000, then all of the Deferral Account shall be distributed in a lump-sum in the month following such Participant’s Separation From
Service, or, if the Participant is a Specified Employee, in the seventh month following such Participant’s Separation From Service (or, if earlier, within 60 days following the death of the Specified Employee); provided, however, that in the
event such Deferral Accounts increases in value so that the value exceeds $15,000 on the scheduled payment 

  

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date, such Deferral Account shall instead be paid in accordance with the Plan and plans and the Participant’s deferral elections. 
 6.2    Distribution on Separation from Service Not Due to Retirement. Subject to a 6-month delay as specified
in section 6.4, the Deferral Account balance of a Participant who has neither died nor incurred a Disability and who undergoes a Separation from Service for any reason other than due to Retirement will be distributed in the form of a cash lump sum
on the first day of the calendar month immediately following the Separation from Service, or as soon as practicable thereafter, but in no event later than the end of the same calendar year. 
 6.3    Distribution on Death. If a Participant dies while some or all of his or her Deferral Account balance
is in installment payout status, the balance credited to the Deferral Account as of the last day of the calendar month in which the Participant dies will be paid to the Participant’s Beneficiary in a cash lump sum on the first day of the
calendar month immediately following such last day, or as soon as practicable thereafter, but in no event later than the end of the same calendar year. In all other cases of the Participant’s death, the balance then credited to his or her
Deferral Account will be paid to the Participant’s Beneficiary in a cash lump sum on the first day of the calendar quarter immediately following the calendar quarter in which the Participant dies. 
 6.4    Required Six-Month Delay in Payment for Specified Employees. Except as permitted by the Plan and Code
Section 409A in connection with a Corporate Dissolution, pursuant to a Bankruptcy Court Approval, a conflicts of interest or ethics rules distribution under Section 6.5.2, a FICA and related income tax distribution under
Section 6.5.3, a state, local or foreign tax distribution under Section 6.5.5, or a Code Section 409A distribution under Section 6.5.4, in no event may a Specified Employee’s account be distributed earlier than (i) six
(6) months following the Specified Employee’s Separation From Service (or if earlier, the Specified Employee’s death), (ii) the Specified Employee’s Disability, (iii) the Specified Employee’s death, (iv) a
Change of Control Event, or (v) the occurrence of an Unforeseeable Emergency. In the event a Specified Employee’s Plan distributions are delayed due to the six-month delay requirement, the amounts otherwise payable to the Specified
Employee during such period of delay shall be paid on a date that is at least six months and one day following Separation From Service, but no later than the end of the calendar year in which such six month and one day period ends (or, if earlier,
within 60 days following the death of the Specified Employee). 
 6.5    Acceleration of Payment(s)
Permitted Under Certain Circumstances. Notwithstanding the foregoing provisions of Section 6 and except as otherwise provided below: 
 6.5.1    Compliance With Ethics Agreements. The Committee, in its sole discretion, may accelerate the distribution of a Participant’s Deferral Account balance to the extent necessary
for any U.S. federal officer or employee in the executive branch of the U.S. federal government to comply with an ethics agreement with the U.S. federal government, as specified in Code Section 409A. 
 6.5.2    Compliance With Ethics Laws or Conflicts of Interest Laws. The Committee, in its sole discretion,
may accelerate the distribution of a Participant’s Deferral Account 

  

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balance to the extent reasonably necessary to avoid a violation of an applicable U.S. federal, state, local or foreign ethics law or conflicts of interest
law, as specified in Code Section 409A. 
 6.5.3    Payment of Employment Taxes. The
Committee, in its sole discretion, may accelerate the distribution of a Participant’s Deferral Account balance sufficient to pay any Federal Insurance Contributions Act tax due under Code Sections 3101, 3121(a) and 3121(v)(2) on amounts
deferred under the Plan (the “FICA Amount”), as well as to satisfy the corresponding tax withholding requirements with respect to the FICA Amount and the additional income tax payments due pursuant to this Section 6.5.3, as specified
in Code Section 409A. In no event, however, may the total accelerated payment under this Section 6.5.3 exceed the aggregate of the FICA Amount and the related income tax withholding. 
 6.5.4    Income Inclusion Under Section 409A of the Code. Subject to Section 6.4, in the event that
the Plan fails to satisfy the requirements of Code Section 409A, the Committee, in its sole discretion, may accelerate the distribution of a Participant’s Deferral Account up to the maximum amount required to be included in income as a
result of the failure to comply with Code Section 409A. 
 6.5.5    Payment of State, Local or
Foreign Taxes. Subject to Section 6.4, the Committee, in its sole discretion, may accelerate the distribution of a Participant’s Deferral Account sufficient to pay any state, local or foreign tax obligations arising from participation
in the Plan that apply to an amount deferred under the Plan before the scheduled distribution of such amount, as specified in Code Section 409A. In the event the Committee exercises such discretion, the Committee may also permit a distribution
sufficient to pay related income tax withholding in accordance with Code Section 409A. In no event, however, may the total payment under this Section 6.5.5 exceed the aggregate amount of such taxes due. 
 6.5.6    Certain Offsets. Subject to Section 6.4, the Committee, in its sole discretion, may accelerate
the distribution of a Participant’s Deferral Account balance as satisfaction of a debt of the Participant to the Company, as specified in Code Section 409A. 
 6.5.7    Bona Fide Disputes as to a Right to a Payment. Subject to Section 6.4, the Committee, in its sole discretion, may accelerate the distribution of a
Participant’s Deferral Account balance in accordance with Code Section 409A where such distribution occurs as part of a settlement between the Participant and the Company of an arm’s length, bona fide dispute as to the
Participant’s right to the deferred amount. 
 6.6    Unforeseeable Emergency. If a
Participant incurs an Unforeseeable Emergency, the Committee, in its sole discretion, may determine that all or part of the Participant’s Deferral Account balance will be distributed to him or her in a cash lump sum payment on the date that
immediately follows the date on which the Committee determines that the Participant has incurred the Unforeseeable Emergency; provided, however, that the amount paid to the Participant pursuant to this Section 6.6 will be limited to the amount
reasonably necessary to satisfy the Unforeseeable Emergency (which may include amounts necessary to pay any federal, state, local, or foreign income taxes or penalties reasonably anticipated to result from the payment). Also, no payment under this

  

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Section 6.6 will be made to the extent that the Participant’s Unforeseeable Emergency is or may be relieved through reimbursement or compensation
from insurance or otherwise, by liquidation of the Participant’s assets (to the extent the liquidation of such assets would not itself cause severe financial hardship), or by the cancellation of the Participant’s Compensation Deferrals in
accordance with Section 3.3.2. Notwithstanding the foregoing, any determination to accelerate the distribution of the Deferral Account of any member of the Committee under this Section 6.6 will be made by the Board. 
 6.7    Inability to Locate Participant or Beneficiary. If the Committee is unable to locate a Participant or
his or her Beneficiary on any date on which a distribution is to be made from such Participant’s Deferral Account, the Company will retain the distribution which was to be made on such date until such time as the Committee can locate the
Participant or Beneficiary; provided, however, that the Company may deduct from such retained distributions all taxes which are required to be withheld by the Company. No additional deemed earnings will be credited pursuant to Section 4.1(c) on
any distribution retained pursuant to this Section 6.7. If the Committee is unable to locate a Participant or Beneficiary within five (5) years following a date on which a distribution is to be made from such Participant’s Deferral
Account, the amount of such distribution will be forfeited. In seeking to locate a Participant or Beneficiary, the Committee may take any reasonable action, but will not be required to take any action other than communicating by registered mail to
the address or addresses last provided to the Committee by the Participant or Beneficiary. 
 6.8    Domestic Relations Order Distributions. The Committee, in its sole discretion, may accelerate a payment (or payments) or make such payments to an individual other than the Participant as necessary to comply
with the terms of a Domestic Relations Order. 
 SECTION 7 
 CHANGE OF CONTROL 
 7.1    No New Participants Following
Change of Control. The Committee may, in its sole discretion, provide that no individual may commence participation in the Plan following a Change of Control Event. 
 7.2    No Deferrals Following a Change of Control. The Committee may, in its sole discretion, provide that Plan deferrals shall cease as of the date of a Change
of Control Event. 
 7.3    Discretionary Termination and Accelerated Plan Distributions 30 Days Prior
to or Within 12 Months Following a Change in Control. Notwithstanding any other Plan provisions, the Board, in its sole discretion, may terminate the Plan and accelerate all scheduled Plan distributions within 30 days prior to or 12
months following a Change in Control Event by means of an irrevocable election; provided that such termination and distribution acceleration complies with the requirements of Code Section 409A. 
  

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 SECTION 8 
 TERMINATION DUE TO CORPORATE DISSOLUTION OR PURSUANT TO 
 BANKRUPTCY COURT APPROVAL 

8.1    Corporate Dissolution. The Board, in its sole discretion, may terminate the Plan and accelerate all
scheduled Plan distributions within 12 months following a Corporate Dissolution; provided that such termination and distribution acceleration complies with the requirements of Code Section 409A. 
 8.2    Bankruptcy Court Approval. The Administrator, in its sole discretion, may terminate the Plan and
accelerate all scheduled Plan distributions pursuant to Bankruptcy Court Approval; provided that such termination and distribution acceleration complies with the requirements of Code Section 409A. 
 SECTION 9 
 BENEFICIARY DESIGNATION

 9.1    Beneficiary. Each Participant will have the right, at any time, to designate his or
her Beneficiary(ies) (both primary as well as contingent) to receive any benefits payable under the Plan to a beneficiary upon the death of a Participant under such rules as is established by the Committee. The Beneficiary designated under the Plan
may be the same as or different from the beneficiary designation under any other plan of the Company in which the Participant participates. 
 9.2    Beneficiary Designation; Change; Spousal Consent. A Participant may designate his or her Beneficiary by properly completing and signing the form prescribed by the Committee for such
purpose (the “Beneficiary Designation Form”), and returning it to the Committee or its designated agent in accordance with such rules and procedures as is established by the Committee. A Participant will have the right to change his or her
Beneficiary by properly completing, signing and otherwise complying with the terms of the Beneficiary Designation Form and the Committee’s rules and procedures, as in effect from time to time. If the Participant names someone other than his or
her spouse as his or her Beneficiary, spousal consent to such designation is required to be provided in the form designated by the Committee, signed by that Participant’s spouse and returned to the Committee or its designated agent. Upon the
proper completion, submission and acceptance by the Committee of a new Beneficiary Designation Form, all Beneficiary designations previously filed will be cancelled. The Committee will be entitled to rely on the last Beneficiary Designation Form,
which has been properly completed and submitted by the Participant in accordance with the applicable rules and procedures established with respect to the filing of such forms, and accepted by the Committee or its designated agent prior to the
Participant’s death. 
 9.3    Acknowledgment. No designation or change in designation of a
Beneficiary will be effective until properly completed, submitted, and accepted by the Committee or its designated agent in accordance with the rules and procedures established by the Committee for this purpose. 
  

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 9.4    No Beneficiary Designation. If a Participant fails to
designate a Beneficiary as provided in this Section 9 or, if all designated Beneficiaries predecease the Participant or die prior to the complete distribution of the Participant’s Deferral Account balance under the Plan, then the
Participant’s surviving spouse will be deemed to be the designated Beneficiary of the Participant. If the Participant has no surviving spouse, any benefits remaining under the Plan to be paid to a Beneficiary will be paid to the
Participant’s estate in care of the duly appointed and currently acting personal representative of the estate (which includes either the Participant’s probate estate or living trust). In any case where there is no such personal
representative of the Participant’s estate duly appointed and acting in that capacity within ninety (90) days after the Participant’s death (or such extended period as the Committee determines is reasonably necessary to allow such
personal representative to be appointed, but not to exceed one hundred eight (180) days after the Participant’s death), then such benefits will be paid to the person or persons who can verify by affidavit or court order to the satisfaction
of the Committee that they are legally entitled to receive such benefits under the Plan. 
 9.5    Doubt as to Beneficiary. If the Committee has any doubt as to the proper Beneficiary to receive payments pursuant to this Plan, the Committee will have the right, exercisable in its discretion, to cause the
Company to withhold such payments until such matter is resolved to the Committee’s satisfaction. 
 9.6    Discharge of Obligations. The payment of benefits under the Plan to a Beneficiary will fully and completely discharge the Company and the Committee from all further obligations under the Plan with respect
to the Participant, and that Participant’s rights (if any) under the Plan will terminate upon such full payment of benefits. 
 9.7    Death of Spouse or Dissolution of Marriage. Notwithstanding the foregoing, a Participant’s Beneficiary designation will be deemed to be automatically revoked if the Participant names his or her spouse
as his or her Beneficiary and the marriage to such spouse is later dissolved. Without limiting the generality of the preceding sentence, the interest in benefits of a spouse of a Participant who has predeceased the Participant or whose marriage has
been dissolved will automatically pass to the Participant, and will not be transferable by such spouse in any manner, including but not limited to such spouse’s will, nor will such interest pass under the laws of intestate succession.

 SECTION 10 
 ADMINISTRATION OF THE PLAN 
 10.1    Committee. The Committee is hereby
designated as the administrator of the Plan (within the meaning of ERISA Section 3(16)(A)). The Committee will consist of not less than one person, who will be appointed by and serve at the pleasure of the Compensation Committee of the Board. A
member of the Committee may resign at any time by notice in writing mailed or delivered to the Compensation Committee of the Board. The Compensation Committee of the Board may remove any member of the Committee by resolution at any time. Any
vacancies in the membership of the Committee will be filled by the Compensation Committee of the Board. 
  

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 10.2    Committee Action. The Committee will act at
meetings by the affirmative vote of a majority of its members. Any action permitted to be taken at a meeting may be taken without a meeting if, prior to or contemporaneously with such action, a written consent to the action is signed by all members
of the Committee, and such written consent is filed with the minutes of the proceedings of the Committee. The Chairperson or any other member or members of the Committee designated by the Chairperson may execute any certificate or other written
direction on behalf of the Committee. 
 10.3    Powers and Duties of the Committee. The Committee
will enforce the Plan in accordance with its terms, will be charged with the general administration of the Plan, and will have full discretion, power, and authority necessary to accomplish its purposes, including, but not by way of limitation, the
following discretionary powers: 
 (a)    To construe and interpret the meaning and validity of the
provisions of the Plan and to determine any question arising under, or in connection with, the administration, operation, or validity of the Plan or any amendment thereto; 
 (b)    To determine who are Eligible Employees, subject to the limitations described in the Plan; 
 (c)    To cause a Deferral Account and/or Plan Year Subaccounts to be maintained for each Participant; 
 (d)    To decide any and all considerations affecting the eligibility of any employee to become a Participant or
remain a Participant in the Plan; 
 (e)    To determine the manner and form for making elections under
the Plan; 
 (f)    To determine, establish and revise an accounting method or formula for the Plan, as
provided in Section 4.2; 
 (g)    To determine the status and rights of Participants and their
spouses, Beneficiaries or estates; 
 (h)    To administer the claims and review procedures set forth in
Section 12; 
 (i)    To establish, from time to time, rules for the performance of its powers and
duties and for the administration of the Plan as are not inconsistent with the terms of the Plan; 
 (j)    To delegate to any one or more of its members or to any other person, severally or jointly, the authority to perform for and on behalf of the Committee one or more of the functions of the Committee under the Plan;

 (k)    To arrange for the distribution to each Participant of a statement of any benefits accrued
under the Plan, at least annually; or 
  

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 (l)    To decide all issues and questions regarding Deferral Account
and/or Plan Year Subaccount balances, and the time, form, manner and amount of distributions to Participants or their Beneficiaries in accordance with the terms of the Plan. 
 10.4    Decisions of the Committee and its Delegates. All actions, interpretations, and decisions of the Committee (and its delegates) will be conclusive and
binding on all persons, and will be given the maximum possible deference allowed by law. 
 10.5    Eligibility to Participate. No member of the Committee who is also an employee of the Company will be excluded from participating in the Plan if otherwise eligible, but he or she will not be
entitled, as a member of the Committee, to act or pass upon any matters pertaining specifically to his or her own Deferral Account under the Plan. 
 10.6    Compensation and Expenses. The members of the Committee will serve without compensation for their services under the Plan. The Committee is authorized at the expense of the Employer
to employ such legal counsel, accountants and other advisers as it may deem advisable to assist in the performance of its duties under the Plan. Any expenses and fees incurred in connection with the administration of the Plan by the Committee, or
otherwise, will be paid and borne by the Employer. 
 10.7    Information. To enable the Committee
to perform its functions under the Plan, each Company will supply full and timely information to the Committee on all matters related to the Compensation of all Participants, their deaths or other cause of their Separations from Service, and such
other pertinent facts as the Committee may require. 
 10.8    Indemnity. To the fullest
extent permitted by applicable law, each Company will indemnify, hold harmless, and defend the Committee and each member thereof, the Board of Directors, and any delegate of the Committee who is an employee of the Company, against any and all
expenses, liabilities and claims, including legal fees as they are incurred to defend against such liabilities and claims arising out of their discharge in good faith of responsibilities under or incident to the Plan, other than expenses and
liabilities arising out of willful misconduct. This indemnity will not preclude such further indemnities as may be available under insurance purchased by the Company or provided by the Company under any bylaw, agreement or otherwise. 
 SECTION 11 
 CLAIMS AND REVIEW
PROCEDURE 
 11.1    Presentation of Claim. If a Participant or Beneficiary (a
“Claimant”) asserts a right to a benefit under the Plan which has not been received, the Claimant must file a written claim for such benefit with the Committee. All other claims must be made in writing and filed with the Committee within
one hundred eighty (180) days of the date on which the event that caused the claim to arise occurred. Any claim must state with particularity the determination desired by the Claimant. The claims and review procedure set forth in this
Section 13 will be administered in accordance with ERISA Section 503. Any written notice that is required to be given to the Claimant 

  

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may, at the option of the Committee and in accordance with applicable guidance issued under ERISA Section 503, be provided electronically. 

11.2    Non-Disability Claims. 
 11.2.1    Notification of Decision. The Committee will consider a Claimant’s claim (other than a claim for benefits due to a Disability) (a “Non-Disability
Claim”) within a reasonable time, but no later than ninety (90) days after its receipt of the Claim, unless the Committee determines that special circumstances require an extension of time for processing the Claim, in which case written
notice of the extension will be furnished to the Claimant before the termination of the initial ninety (90) day period. In no event will such extension exceed a period of ninety (90) days from the end of the initial ninety (90) day
period. The extension notice will indicate the special circumstances requiring the extension of time and the date by which the Committee expects to render its decision on the Non-Disability Claim. The Committee will notify the Claimant in writing:

 (a)    that the Claimant’s requested determination has been made, and that the Non-Disability
Claim has been allowed in full; or 
 (b)    that the Committee has reached a conclusion contrary, in
whole or in part, to the Claimant’s requested determination, which notice will set forth: 
 (i)    the specific reason(s) for the denial of the Claim; 
 (ii)    specific reference(s) to pertinent provisions of the Plan upon which the denial was based; 
 (iii)    a description of any additional material or information necessary for the Claimant to perfect the Claim, and an explanation of why such material or information is necessary; 
 (iv)    an explanation of the Plan’s Claims review procedure and the time limits applicable to such procedure;
and 
 (v)    a statement of the Claimant’s right to bring a civil action under ERISA
Section 502(a) following an adverse benefit determination on review (as set forth in Section 11.4). 
 11.2.2    Review of a Denied Non-Disability Claim. On or before sixty (60) days after receiving a notice from the Committee that the Claimant’s Non-Disability Claim has been denied, in whole or in part,
the Claimant (or the Claimant’s duly authorized representative) may file with the Committee a written request for a review of the denial of the Claim. The Claimant (or the Claimant’s duly authorized representative): 
 (a)    may, upon request and free of charge, have reasonable access to, and copies of, all documents, records and
other information relevant (as defined in ERISA) to the Non-Disability Claim; 
  

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 (b)    may submit written comments or other documents to the
Committee; and/or 
 (c)    may request a hearing, which the Committee, in its sole discretion, may
grant. 
 11.2.3    Decision on Review of the Non-Disability Claim. The Committee will render its
decision on review promptly, but not later than sixty (60) days after the Committee receives the Claimant’s timely written request for a review of the denial of the Non-Disability Claim. If the Committee determines that special
circumstances require an extension of time for reviewing the Non-Disability Claim, written notice of the extension will be furnished to the Claimant before the termination of the initial sixty (60) day period. In no event will such extension
exceed a period of sixty (60) days from the end of the initial sixty (60) day period. The extension notice will indicate the special circumstances requiring the extension of time and the date by which the Committee expects to render its
decision on review. In rendering its decision, the Committee will take into account all comments, documents, records and other information submitted by the Claimant (if any) relating to the Non-Disability Claim, without regard to whether such
information was submitted or considered in the initial Claim determination. If the Committee wholly or partly denies the Non-Disability Claim on review, the Committee will provide written notice to the Claimant which will set forth: 
 (a)    the specific reasons for the denial of the Claim; 
 (b)    the specific reference(s) to the pertinent Plan provisions upon which the denial was based; 
 (c)    a statement that the Claimant is entitled to receive, upon request and free of charge, reasonable access to
and copies of, all documents, records and other information relevant (as defined in ERISA) to his or her Claim for benefits; and 
 (d)    a statement of the Claimant’s right to bring a civil action under ERISA Section 502(a). 
 11.3    Disability Claims. 
 11.3.1    Notification of Decision. The Committee will consider a Claimant’s claim for benefits due to a Disability (a “Disability Claim”) within a reasonable time, but no later than forty-five
(45) days after its receipt of the Claim, unless the Committee determines that special circumstances require an extension of time to process the Claim, in which case written notice of the extension will be furnished to the Claimant before the
termination of the initial forty-five (45) day period. In no event will such extension exceed a period of thirty (30) days from the end of the initial forty-five (45) day period. However, if the Committee determines that special
circumstances require an additional extension of time to process the Disability Claim, the Committee will notify the Claimant in writing before the end of the initial thirty (30) day extension period. In no event will such additional extension
exceed a period of thirty (30) days from the end of the initial thirty (30)

  

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day extension period. The extension notice will indicate the special circumstances requiring the extension of time and the date by which the Committee
expects to render its decision on the Disability Claim. The extension notice also will explain the standards on which the entitlement to a benefit is based, the unresolved issues that prevent a decision on the Disability Claim and the additional
information needed to resolve those issues, and notice that the Claimant will be afforded at least forty-five (45) days within which to provide the specified information. The Committee will notify the Claimant in writing: 
 (a)    that the Claimant’s requested determination has been made, and that the Disability Claim has been
allowed in full; or 
 (b)    that the Committee has reached a conclusion contrary, in whole or in part,
to the Claimant’s requested determination, which notice will set forth: 
 (i)    the specific
reason(s) for the denial of the Claim; 
 (ii)    specific reference(s) to pertinent provisions of the
Plan upon which the denial was based; 
 (iii)    a description of any additional material or
information necessary for the Claimant to perfect the Claim, and an explanation of why such material or information is necessary; 
 (iv)    an explanation of the Plan’s Claims review procedure and the time limits applicable to such procedure; 
 (v)    a copy of any internal rule, guideline, protocol or other similar criteria relied on in denying the Claim or a statement that such rule, guideline, protocol or other similar criteria was
relied on in denying the Claim and that a copy of it will be provided without charge upon request; and 
 (vi)    a statement of the Claimant’s right to bring a civil action under ERISA Section 502(a) following an adverse benefit determination on review (as set forth in Section 11.4). 
 11.3.2    Review of a Denied Disability Claim. On or before one hundred eighty (180) days after
receiving a notice from the Committee that the Claimant’s Disability Claim has been denied, in whole or in part, a Claimant (or the Claimant’s duly authorized representative) may file with the Committee a written request for a review of
the denial of the Claim. The Claimant (or the Claimant’s duly authorized representative): 
 (a)    may, upon request and free of charge, have reasonable access to, and copies of, all documents, records and other information relevant (as defined in ERISA) to the Disability Claim; 
  

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 (b)    may submit written comments or other documents to the
Committee; and/or 
 (c)    may request a hearing, which the Committee, in its sole discretion, may
grant. 
 11.3.3    Decision on Review of the Disability Claim. The Committee will render its
decision on review promptly, but not later than forty-five (45) days after the Committee receives the Claimant’s timely written request for a review of the denial of the Disability Claim, unless the Committee determines that special
circumstances require an extension of time for processing the Claim, in which case written notice of the extension will be furnished to the Claimant before the termination of the initial forty-five (45) day period. In no event will such
extension exceed a period of forty-five (45) days from the end of the initial forty-five (45) day period. The extension notice will indicate the special circumstances requiring an extension of time and the date by which the Committee
expects to render its decision on the Disability Claim. In rendering its decision, the Committee will take into account all comments, documents, records and other information submitted by the Claimant (if any) relating to the Disability Claim,
without regard to whether such information was submitted or considered in the initial Claim determination. The review of the denied Disability Claim will not be conducted by the individual who decided the Claimant’s initial Claim nor the
subordinate of such individual. In deciding an appeal of any denied Disability Claim that is based in whole or in part on a medical judgment, the Committee will consult with a health care professional (who will neither be an individual who was
consulted in connection with the initial Claim denial nor the subordinate of such individual) who has appropriate training and experience in the field of medicine involved in the medical judgment. Any medical or vocational experts whose advice was
obtained on behalf of the Committee in connection with the denial of the Disability Claim will be identified, regardless of whether the advice was relied upon in denying the Claim. If the Committee wholly or partly denies the Disability Claim on
review, the Committee will provide written notice to the Claimant which will set forth: 
 (a)    the
specific reasons for the denial of the Claim; 
 (b)    specific reference(s) to the pertinent Plan
provisions upon which the denial was based; 
 (c)    a statement that the Claimant is entitled to
receive, upon request and free of charge, reasonable access to and copies of, all documents, records and other information relevant (as defined in ERISA) to the Claimant’s Claim for benefits; 
 (d)    a copy of any internal rule, guideline, protocol or other similar criteria relied on in denying the Claim or
a statement that such rule, guideline, protocol or other similar criteria was relied on in denying the Claim and that a copy of it will be provided without charge upon request; and 
 (e)    a statement of the Claimant’s right to bring a civil action under ERISA Section 502(a). 

 

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 11.4    Exhaustion of Claims and Review Procedure and Legal
Action. No action in law or equity may be brought more than one (1) year after the Committee’s affirmation of a denial of a claim under the Plan, or, if earlier, more than four (4) years after the facts or events giving rise to
the Claimant’s allegation(s) or claim(s) first occurred. 
 SECTION 12 
 MODIFICATION OR TERMINATION OF THE PLAN 
 12.1    Companies’ Obligations Limited. The Companies intend to continue the Plan indefinitely, and to maintain each Participant’s Deferral Account until it is scheduled to be paid to him or her in
accordance with the provisions of the Plan. However, the Plan is voluntary on the part of the Companies and the Companies do not guarantee to continue the Plan. The Board of Directors, in its sole discretion, at any time may, by amendment of the
Plan, suspend or discontinue Compensation deferrals under the Plan, with or without cause. 
 12.2    Right to Amend or Terminate. The Board of Directors, in its sole discretion, may amend or terminate the Plan, or any part thereof, in such manner as it may determine, at any time and for any reason;
provided, however that no such amendment or termination will have any retroactive effect to reduce any amounts allocated to a Participant’s Deferral Account on the date of such amendment or termination. The Board of Directors may from time to
time make any amendment to the Plan that may be necessary to satisfy Code Section 409A, ERISA or other applicable laws. 
 12.3    Retroactive Amendment Permitted. An amendment made by the Board of Directors in accordance with Section 12.2 may be made effective on a date prior to the first day of the Plan Year in which it
was adopted if such amendment is necessary or appropriate to enable the Plan to satisfy the applicable requirements of Code Section 409A, ERISA or other applicable laws or to conform the Plan to any change in applicable laws or to any
regulations or rulings thereunder, so long as such retroactive amendment is permitted by applicable law. 
 12.4    Effect of Termination. If the Plan is terminated pursuant to this Section 12, then no further Compensation deferrals may be made under the Plan and the balances credited to the Deferral Accounts
of the affected Participants will be distributed to them at the time and in the manner set forth in Section 6. 
 SECTION 13

 GENERAL 
 13.1    Unsecured General Creditors. All amounts credited to a Participant’s Deferral Account under the Plan will continue for all purposes to be a part of the general assets of the Company. Participants and
their Beneficiaries, heirs or successors will have no legal or equitable rights, claims, or interest in any specific property or assets of any Company. No assets of the Company will be held under a trust, or held in any way as collateral security
for the fulfilling of any obligations of the Company under the Plan. The Plan will not cause the Company’s assets to be pledged or restricted. The Company’s obligations (if any) under the Plan will be merely that of an 

  

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unfunded and unsecured promise of that Company to pay money in the future, and the rights of the Participants and their Beneficiaries will be no greater than
those of unsecured general creditors of the Company. The Company may, but need not, acquire investments corresponding to the Funds, and it is under no obligation to maintain any investment it may make. Any such investments, if made, will be in the
name of the Company, and will be its sole property in which no Participant or Beneficiary will have any interest. The Plan is intended to be an unfunded plan for purposes of Title I of ERISA. 
 13.2    Restriction Against Assignment. The Company will pay all amounts payable hereunder only to
the person or persons designated by the Plan and not to or for any other person. No part of a Participant’s Deferral Account will be liable for the debts, contracts, or engagements of any Participant, his or her Beneficiary, or successors in
interest, nor will a Participant’s Deferral Account be subject to execution by levy, attachment, or garnishment or by any other legal or equitable proceeding, nor will any such person have any right to alienate, anticipate, transfer, commute,
pledge, encumber, or assign any benefits or payments hereunder in any manner whatsoever; provided, however, that a Deferral Account hereunder may be transferred to a Participant’s former spouse pursuant to a Domestic Relations Order. Any
purported alienation, anticipation, transfer, commutation, pledge, encumbrance, or assignment will be void and of no effect. 
 13.3    Governing Law. The Plan is intended to comply with the provisions of Code Section 409A. Notwithstanding any contrary Plan provision, the Plan will be construed, administered and enforced in a
manner that is consistent with such intent. The Plan also will be construed, administered and enforced in accordance with the applicable provisions of ERISA, and to the extent not preempted by ERISA, the applicable laws of the State of California
(other than its conflict of laws provisions). 
 13.4    Receipt and Release. Any payment to a
Participant or his or her Beneficiary in accordance with the provisions of the Plan will, to the extent thereof, be in full satisfaction of any and all claims against the Committee and/or the Company. 
 13.5    Tax Withholding. Notwithstanding any contrary Plan provision, the Company will have the right to
deduct from a Participant’s Deferral Account and/or any payments due to the Participant or his or her Beneficiary under the Plan any and all taxes determined by the Committee to be applicable with respect to such benefits. If any taxes,
including employment taxes with respect to the Deferral Account, are required to be withheld prior to the time of payment, the Company may withhold such amounts from other compensation that is payable to the Participant by the Company. 

13.6    Severability. If any provision of the Plan is held to be invalid or unenforceable, its invalidity
or unenforceability will not affect any other provisions of the Plan, and in lieu of each provision which is held invalid or unenforceable, there will be added as part of the Plan a provision that will be as similar in terms to such invalid or
unenforceable provision as may be possible and be valid, legal, and enforceable. 
 13.7    No
Guarantees Regarding Tax Treatment; Disclaimer. Participants (or their Beneficiaries) will be completely responsible for all taxes with respect to any benefits under the Plan. 

  

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The Committee, the Board of Directors and the Companies make no guarantees regarding the tax treatment to any person of any deferrals or payments made under
the Plan. Neither the Companies nor any of their employees shall have any liability to any Participant should the Plan or its administration fail to comply with Code Section 409A. 
 13.8    Captions. The captions contained in and the table of contents prefixed to the Plan are inserted only
as a matter of convenience and for reference, and in no way define, limit, enlarge or describe the scope or intent of the Plan nor in any way will affect the construction of any provision of the Plan. 
 13.9    No Employment Rights. Neither the establishment or maintenance of the Plan, the making of any
deferrals under the Plan nor any action of any Company or the Committee, will be held or construed to confer upon any person any right to be employed by the Company, nor upon dismissal, any right or interest in any specific assets of the Companies
other than as provided in the Plan. Each Company expressly reserves the right to discharge any employee at any time, with or without cause or notice. 
 13.10    Payments on Behalf of Persons Under Incapacity. In the event that any amount becomes payable under the Plan to a person who, in the sole judgment of the Committee, is considered by
reason of physical or mental condition to be unable to give a valid receipt therefor, the Committee may direct that such payment be made to any person found by the Committee, in its sole judgment, to have assumed the care of such person. Any payment
made pursuant to such determination will constitute a full release and discharge of any and all claims against the Committee and/or the Company. 
 13.11    Rights and Duties. Neither the Company nor the Committee will be subject to any liability or duty under the Plan except as expressly provided in the Plan, or for any action taken,
omitted or incurred in good faith. 
  

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