Document:

EX-10.1

 Exhibit 10.1 

LAKELAND BANCORP, INC. 

ELECTIVE DEFERRAL PLAN 

WHEREAS, Lakeland Bancorp, Inc., a New Jersey corporation (the “Corporation”), in order to encourage eligible executives of the
Corporation and Lakeland Bank, a New Jersey state chartered bank (the “Bank” and, collectively with the Corporation, the “Employer”) to achieve corporate objectives, desires to establish a deferred compensation plan whereby such
executives may elect to defer a portion of their compensation, which deferrals will increase based on the Corporation’s return on equity; and 

WHEREAS, the Corporation intends for this Plan to at all times be administered and interpreted in such a manner as to constitute, for purposes
of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), an unfunded arrangement maintained primarily to provide deferred compensation for a select group of management or highly compensated employees; 

NOW THEREFORE, the Lakeland Bancorp, Inc. Elective Deferral Plan (the “Plan”) as set forth herein is hereby established and adopted
effective as of March 18, 2015: 
 ARTICLE 1 

DEFINITIONS 
 For the
purpose of this Plan, the following phrases or terms shall have the indicated meanings: 
 1.1 “Administrator” means the
Board or its designee. 
 1.2 “Affiliate” means any business entity with whom the Employer would be considered a single
employer under Section 414(b) and 414(c) of the Code. Such term shall be interpreted in a manner consistent with the definition of “service recipient” contained in Code Section 409A. 

1.3 “Base Salary” means the cash compensation relating to services performed during any calendar year, excluding bonuses,
commissions, distributions from nonqualified deferred compensation plans, fringe benefits, incentive payments, non-monetary awards, overtime, relocation expenses, stock options and other fees, and automobile and other allowances paid to a
Participant for services rendered (whether or not such allowances are included in the Participant’s gross income). Base Salary shall be calculated before reduction for amounts voluntarily deferred or contributed by a Participant pursuant to
qualified or non-qualified plans and shall be calculated to include amounts not otherwise included in a Participant’s gross income under Code Sections 125, 402(e)(3), 402(h), or 403(b) pursuant to plans
established by the Employer; provided, however, that all 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 Participant. 

 1.4 “Beneficiary” means the person or persons designated in writing by a
Participant to receive benefits hereunder in the event of the Participant’s death. 
 1.5 “Board” means the Board of
Directors of the Corporation. 
 1.6 “Bonus” means the cash bonus, if any, awarded to a Participant for services performed
during the calendar year. 
 1.7 “Cause” means, with respect to any Participant, any of the following acts or
circumstances: gross negligence or gross neglect of duties to the Employer; conviction of a felony or of a gross misdemeanor involving moral turpitude in connection with the Participant’s employment with the Employer; or fraud, disloyalty,
dishonesty or willful violation of any law or significant Employer policy committed in connection with the Participant’s employment and resulting in a material adverse effect on the Employer. 

1.8 “Change in Control” means a change in the ownership or effective control of the Corporation, or in the ownership of a
substantial portion of the assets of the Corporation, which constitutes a “change in the ownership of a corporation,” a “change in the effective control of a corporation,” or a “change in the ownership of a substantial
portion of a corporation’s assets” (each within the meaning of Treasury regulation Section 1.409A-3(i)(5) but applying, for purposes thereof, the lowest thresholds permitted thereunder to determine whether any of such events or
occurrences have occurred). 
 1.9 “Claimant” means a person who believes that he is being denied a benefit to which he is
entitled hereunder. 
 1.10 “Code” means the Internal Revenue Code of 1986, as amended. 

1.11 “Deferral Account” means the Employer’s accounting of the accumulated Deferrals plus accrued interest. 

1.12 “Deferral Election Form” means each form established from time to time by the Administrator that a Participant
completes, signs and returns to the Administrator to designate the amount of Deferrals. 
 1.13 “Deferrals” means the
amount of Base Salary and Bonus a Participant elects to defer according to this Plan. 
 1.14 “Distribution Period Crediting
Rate” means, with respect to any date, the interest rate equal to Moody’s 20 year Aa corporate bond index as of the first business day of the year in which such date occurs. 

1.15 “Early Termination” means Separation from Service before Normal Retirement Age except when such Separation from Service
occurs within twenty-four (24) months following a Change in Control or due to termination for Cause. 
 1.16 “Effective
Date” means March 18, 2015. 

  
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 1.17 “Eligible Executive” means an executive of the Employer with the title of
Executive Vice President or higher, and such other executive(s) of the Employer, if any, as the Administrator may designate as eligible for participation in the Plan. 

1.18 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended. 

1.19 “Normal Retirement Age” means the Participant attaining age sixty-five (65). 

1.20 “Participant” means an Eligible Executive who completes and files a Deferral Election Form with the Employer. 

1.21 “Plan Year” means each twelve (12) month period commencing on January 1 and ending on December 31 of each
year. The initial Plan Year shall commence on the Effective Date and end on the following December 31. 
 1.22 “Return on
Equity” means the Corporation’s annual return on equity as determined under Generally Accepted Accounting Principles. 
 1.23
“Separation from Service” means a termination of a Participant’s employment with the Employer and its Affiliates for reasons other than death. A Separation from Service may occur as of a specified date for purposes of the Plan
even if the Participant continues to provide some services for the Employer or its Affiliates after that date, provided that the facts and circumstances indicate that the Employer and the Participant reasonably anticipated at that date that either
no further services would be performed after that date, or that the level of bona fide services the Participant would perform after such date (whether as an employee or as an independent contractor) would permanently decrease to no more than twenty
percent (20%) of the average level of bona fide services performed over the immediately preceding thirty-six (36) month period (or the full period during which the Participant performed services for the Employer, if that is less than
thirty-six (36) months). A Separation from Service will not be deemed to have occurred while a Participant is on military leave, sick leave, or other bona fide leave of absence if the period of such leave does not exceed six (6) months or,
if longer, the period for which a statute or contract provides the Participant with the right to reemployment with the Employer. If a Participant’s leave exceeds six (6) months but the Participant is not entitled to reemployment under a
statute or contract, the Participant incurs a Separation of Service on the next day following the expiration of such six (6) month period. In determining whether a Separation of Service occurs the Administrator shall take into account, among
other things, the definition of “service recipient” and “employer” set forth in Treasury regulation §1.409A-1(h)(3). The Administrator shall have full and final authority, to determine conclusively whether a Separation from
Service occurs, and the date of such Separation from Service. 
 1.24 “Specified Employee” means an individual that
satisfies the definition of a “key employee” of the Employer as such term is defined in Code §416(i) (without regard to Code §416(i)(5)), provided that the stock of the Employer is publicly traded on an established securities
market or otherwise, as defined in Code §1.897-1(m). If a Participant 

  
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is a key employee at any time during the twelve (12) months ending on December 31, the Participant shall be a Specified Employee for the twelve (12) month period commencing on the
first day of the following April. 
 1.25 “Unforeseeable Emergency” means a severe financial hardship to a Participant
resulting from an illness or accident of the Participant, the Participant’s spouse, the Beneficiary, or the Participant’s dependent (as defined in Section 152(a) of the Code), loss of the Participant’s property due to casualty,
or other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant. 

ARTICLE 2 
 DEFERRALS

 2.1 Elections Generally. Each Participant may annually file a Base Salary and/or Bonus Deferral Election Form with the
Administrator no later than the end of the Plan Year preceding the Plan Year in which services leading to the compensation to be deferred will be performed. 

2.2 Initial Election. After being notified by the Administrator of becoming eligible to participate in this Plan, a Participant may
make an initial deferral election by delivering to the Administrator signed Base Salary and/or Bonus Deferral Election Forms within thirty (30) days of becoming eligible. The Base Salary and Bonus Deferral Election Forms shall set forth the
amount of Base Salary and Bonus to be deferred. However, if the Participant was eligible to participate in any other account balance plans sponsored by the Employer (as referenced in Code Section 409A) prior to becoming eligible to participate
in this Plan, the initial election to defer Base Salary and Bonus under this Plan shall not be effective until the Plan Year following the Plan Year in which the Participant became eligible to participate in this Plan. 

2.3 Election Changes. A Participant may modify the amount of Deferrals annually by filing new Base Salary and/or Bonus Deferral
Election Forms with the Employer. The modified deferral shall not be effective until the calendar year following the year in which the subsequent Base Salary and/or Bonus Deferral Election Forms are received by the Employer. 

2.4 Hardship. If a Participant experiences an Unforeseeable Emergency, the Participant, by written instructions to the Employer, may
discontinue deferrals hereunder. Any subsequent Deferral Elections by such Participant may be made only in accordance with Section 2.1 hereof. 

2.5 Employer Contributions. In addition to any Deferrals, the Employer may, at any time, make a contribution to the Deferral Account.
Such contribution amounts may, at the election of the Employer, be subject a vesting schedule or such other provisions as the Employer may provide. 

  
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 ARTICLE 3 

DEFFERAL ACCOUNT 
 3.1
Establishing and Crediting. The Employer shall establish a Deferral Account on its books for each Participant and shall credit to each Participant’s Deferral Account the following amounts: 

(a) the Participant’s Deferrals hereunder; and 

(b) Interest as follows: 

(i) on the first day of each calendar month (commencing with the first day of the month following the Effective Date) until
the earlier of a Participant’s Separation from Service or death, interest shall be credited on such Participant’s Deferral Account at an annual rate equal to seventy-five percent (75%) of Return on Equity from the prior calendar year
(provided however that the minimum such rate shall be zero percent (0%) and the maximum shall be fifteen percent (15%)), compounded monthly; 

(ii) on the first day of each calendar month following a Participant’s Separation from Service or death, interest shall
be credited at an annual rate equal to the Distribution Period Crediting Rate, compounded monthly. 
 3.2 Recordkeeping Device Only.
The Deferral Accounts are solely a device for measuring amounts to be paid under this Plan and are not a trust fund of any kind. 

ARTICLE 4 
 PAYMENT OF
BENEFITS 
 4.1 Specified Time Benefit. If a Participant has elected a Specified Time Benefit on the form required by the Board,
then the Employer shall pay the Participant his Deferral Account balance or such portion of the Deferral Account balance as the Participant has elected to receive. This Specified Time Benefit shall be paid in the manner elected by the Participant.
If the Participant has elected installment payments, then effective the first day of each Plan Year during payout, the monthly installments for such Plan Year shall be re-amortized to take into account changes in the Distribution Period Crediting
Rate and the remaining number of monthly installments. 
 4.2 Normal Retirement Benefit. Except to the extent that a Specified Time
Benefit is elected, upon Separation from Service after Normal Retirement Age, the Employer shall pay a Participant his Deferral Account balance calculated at Separation from Service in lieu of any other benefit hereunder. Unless otherwise elected by
the Participant at such time and in such manner as the Administrator requires, this benefit shall be paid in one hundred eighty (180) consecutive monthly installments commencing the month following the

  
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Participant’s Separation from Service. Effective the first day of each Plan Year during payout, the monthly installments for such Plan Year shall be re-amortized to take into account changes
in the Distribution Period Crediting Rate and the remaining number of monthly installments. 
 4.3 Early Termination Benefit. Except
to the extent that a Specified Time Benefit is elected, if a Participant has an Early Termination, the Employer shall pay the Participant his Deferral Account balance calculated at Separation from Service in lieu of any other benefit hereunder.
Unless otherwise elected by the Participant at such time and in such manner as the Administrator requires, this benefit shall be paid in one hundred eighty (180) consecutive monthly installments commencing the month following the
Participant’s Separation from Service. Effective the first day of each Plan Year during payout, the monthly installments for such Plan Year shall be re-amortized to take into account changes in the Distribution Period Crediting Rate and the
remaining number of monthly installments. 
 4.4 Change in Control Benefit. Except to the extent that a Specified Time Benefit is
elected, if a Change in Control occurs, followed within twenty-four (24) months by a Participant’s Separation from Service, provided, however, that such Separation from Service occurs prior to his Normal Retirement Age, the Employer shall
pay the Participant his Deferral Account balance calculated at his Separation from Service in lieu of any other benefit hereunder. Unless otherwise elected by the Participant at such time and in such manner as the Administrator requires, this
benefit shall be paid in one hundred eighty (180) consecutive monthly installments commencing the month following Separation from Service. Effective the first day of each Plan Year during payout, the monthly installments for such Plan Year
shall be re-amortized to take into account changes in the Distribution Period Crediting Rate and the remaining number of monthly installments. 

4.5 Death Prior to Separation From Service. In the event that a Participant dies prior to his Separation from Service, the Employer
shall pay his Beneficiary the Deferral Account balance calculated at the Participant’s death, in lieu of any other benefit hereunder. Unless otherwise elected by the Participant at such time and in such manner as the Administrator requires,
this benefit shall be paid in one hundred eighty (180) consecutive monthly installments commencing the month following the Participant’s death. Effective the first day of each Plan Year during payout, the monthly installments for such Plan
Year shall be re-amortized to take into account changes in the Distribution Period Crediting Rate and the remaining number of monthly installments. 

4.6 Death Subsequent to Commencement of Benefit Payments. In the event that a Participant dies while receiving payments, but prior to
receiving all payments due and owing hereunder, the Employer shall pay his Beneficiary the same amounts at the same times as the Employer would have paid the Participant, had the Participant survived. 

4.7 Optional Form and Timing of Benefit Payments. Notwithstanding anything contained in the Plan to the contrary, a Participant may
elect, at the time of enrollment in the Plan, to have his or her Deferral Account paid in a lump sum or in such number of 

  
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annual or monthly installments as the Board may permit. In addition, the Board may, in its discretion, permit each Participant to elect, at the time of enrollment, to have his or her Deferral
Account paid, or commence to be paid, upon a date selected by the Participant. If installments are elected, effective the first day of each Plan Year during payout, the monthly installments for such Plan Year shall be re-amortized to take into
account changes in the Distribution Period Crediting Rate and the remaining number of monthly installments. If and to the extent permitted by the Board, a Participant may elect a different form and/or time of payment with respect to each Plan Year
that the Participant elects Deferrals hereunder; provided that such election is made prior to the commencement of the Plan Year to which such Deferrals relate. Any election(s) made hereunder may be modified by a Participant in accordance with the
provisions of Section 4.16 hereof. 
 4.8 Benefits Exclusive. The benefits described in Sections 4.2 to 4.5 shall be exclusive
of one another. A Participant shall not receive benefits arising out of more than one of those Sections. 
 4.9 Hardship
Distribution. If a Participant experiences an Unforeseeable Emergency, the Participant may petition the Board to receive a distribution from the Plan (a “Hardship Distribution”). The Board in its sole discretion may grant such
petition. If granted, the Participant shall receive, within sixty (60) days, a distribution from the Plan only to the extent deemed necessary by the Board to remedy the Unforeseeable Emergency, plus an amount necessary to pay taxes reasonably
anticipated as a result of the distribution. In any event, the maximum amount which may be paid out as a Hardship Distribution is the Participant’s Deferral Account balance as of the day the Participant petitioned the Board to receive a
Hardship Distribution. A Hardship Distribution shall reduce the Participant’s Deferral Account balance. 
 4.10 Termination for
Cause. If the Employer terminates a Participant’s employment for Cause, then the Participant shall forfeit all amounts credited to his Deferral Account except the Deferrals. 

4.11 Restriction on Commencement of Distributions. Notwithstanding any provision of this Plan to the contrary, if a Participant is
considered a Specified Employee at the time of Separation from Service, the provisions of this Section shall govern all distributions hereunder. Distributions which would otherwise be made to the Participant due to Separation from Service shall not
be made during the first six (6) months following Separation from Service. Rather, any distribution which would otherwise be paid to the Participant during such period shall be accumulated and paid to the Participant in a lump sum on the first
day of the seventh month following Separation from Service, or if earlier, upon the Participant’s death. All subsequent distributions shall be paid as they would have had this Section not applied. 

4.12 Acceleration of Payments. Except as specifically permitted herein, no acceleration of the time or schedule of any payment may be
made hereunder. Notwithstanding the foregoing, payments may be accelerated, in accordance with the provisions of Treasury Regulation §1.409A-3(j)(4) in the following circumstances: (i) as a

  
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result of certain domestic relations orders; (ii) in compliance with ethics agreements with the federal government; (iii) in compliance with the ethics laws or conflicts of interest
laws; (iv) in limited cashouts (but not in excess of the limit under Code §402(g)(1)(B)); (v) to pay employment-related taxes; or (vi) to pay any taxes that may become due at any time that the Plan fails to meet the requirements
of Code Section 409A. 
 4.13 Delays in Payment by Employer. A payment may be delayed to a date after the designated payment
date under any of the circumstances described below, and the provision will not fail to meet the requirements of establishing a permissible payment event. The delay in the payment will not constitute a subsequent deferral election, so long as the
Employer treats all payments to similarly situated Participants on a reasonably consistent basis. 
 (a) Payments subject
to Code Section 162(m). If the Employer reasonably anticipates that the Employer’s deduction with respect to any distribution to a Participant under this Plan would be limited or eliminated by application of Code Section 162(m),
then to the extent deemed necessary by the Employer to ensure that the entire amount of any distribution from this Plan is deductible, the Employer may delay payment of any amount that would otherwise be distributed under this Plan. The delayed
amounts shall be distributed to the Participant (or the Beneficiary in the event of the Participant’s death) at the earliest date the Employer reasonably anticipates that the deduction of the payment of the amount will not be limited or
eliminated by application of Code Section 162(m). 
 (b) Payments that would violate Federal securities laws or other
applicable law. A payment may be delayed where the Employer reasonably anticipates that the making of the payment will violate Federal securities laws or other applicable law provided that the payment is made at the earliest date at which the
Employer reasonably anticipates that the making of the payment will not cause such violation. The making of a payment that would cause inclusion in gross income or the application of any penalty provision of the Code is not treated as a violation of
law. 
 (c) Solvency. Notwithstanding the above, a payment may be delayed where the payment would jeopardize the
ability of the Employer to continue as a going concern. 
 4.14 Treatment of Payment as Made on Designated Payment Date. Solely for
purposes of determining compliance with Code Section 409A, any payment under this Plan made after the required payment date shall be deemed made on the required payment date provided that such payment is made by the latest of: (i) the end
of the calendar year in which the payment is due; (ii) the 15th day of the third calendar month following the payment due date; (iii) if Employer cannot calculate the payment amount on
account of administrative impracticality which is beyond the Participant’s control, the end of the first calendar year which payment calculation is practicable; and (iv) if Employer does not have sufficient funds to make the payment
without jeopardizing the Employer’s solvency, in the first calendar year in which the Employer’s funds are sufficient to make the payment. 

  
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 4.15 Facility of Payment. If a distribution is to be made to a minor, or to a person who
is otherwise incompetent, then the Administrator may make such distribution: (i) to the legal guardian, or if none, to a parent of a minor payee with whom the payee maintains his residence; or (ii) to the conservator or administrator or,
if none, to the person having custody of an incompetent payee. Any such distribution shall fully discharge the Employer and the Administrator from further liability on account thereof. 

4.16 Changes in Form or Timing of Benefit Payments. A Participant may, subject to the terms hereof, delay the timing or change the form
of payment of his Deferral Account, provided that any such change: 
 (a) must take effect not less than twelve
(12) months after the change is made; 
 (b) must, for benefits distributable due solely to the arrival of a specified
date, or on account of Separation from Service or Change in Control, delay the commencement of distributions for a minimum of five (5) years from the date the first distribution was then scheduled to be made; 

(c) must, for benefits distributable due solely to the arrival of a specified date, be made not less than twelve
(12) months before distribution is scheduled to begin; and 
 (d) may not, except as permitted by Section 409A of
the Code, accelerate the time or schedule of any distribution. 
 ARTICLE 5 

BENEFICIARIES 
 5.1
Designation of Beneficiaries. A Participant may designate any person to receive any benefits payable under the Plan upon the Participant’s death, and the designation may be changed from time to time by the Participant by filing a new
designation. Each designation will revoke all prior designations by the Participant, shall be in the form prescribed by the Administrator and shall be effective only when filed in writing with the Administrator during the Participant’s
lifetime. If the Participant names someone other than the Participant’s spouse as a Beneficiary, the Administrator may, in its sole discretion, determine that spousal consent is required to be provided in a form designated by the Administrator,
executed by the Participant’s spouse and returned to the Administrator. The Participant’s beneficiary designation shall be deemed automatically revoked if the Beneficiary predeceases the Participant or if the Participant names a spouse as
Beneficiary and the marriage is subsequently dissolved. 

  
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 5.2 Absence of Beneficiary Designation. In the absence of a valid Beneficiary designation,
or if, at the time any benefit payment is due to a Beneficiary, there is no living Beneficiary validly named by the Participant, the Employer shall pay the benefit payment to the Participant’s spouse. If the spouse is not living then the
Employer shall pay the benefit payment to the Participant’s living descendants per stirpes, and if there are no living descendants to the Participant’s estate. In determining the existence or identity of anyone entitled to a benefit
payment, the Employer may rely conclusively upon information supplied by the Participant’s personal representative, executor, or administrator. 

ARTICLE 6 

ADMINISTRATION 
 6.1
Administrator Duties. The Administrator shall be responsible for the management, operation, and administration of the Plan. When making a determination or calculation, the Administrator shall be entitled to rely on information furnished by
the Employer, Participants or Beneficiaries. No provision of this Plan shall be construed as imposing on the Administrator any fiduciary duty under ERISA or other law, or any duty similar to any fiduciary duty under ERISA or other law. 

6.2 Administrator Authority. The Administrator shall enforce this Plan in accordance with its terms, shall be charged with the general
administration of this Plan, and shall have all powers necessary to accomplish its purposes. 
 6.3 Binding Effect of Decision. The
decision or action of the Administrator with respect to any question arising out of or in connection with the administration, interpretation or application of this Plan and the rules and regulations promulgated hereunder shall be final, conclusive
and binding upon all persons having any interest in this Plan. 
 6.4 Compensation, Expenses and Indemnity. The Administrator shall
serve without compensation for services rendered hereunder. The Administrator is authorized at the expense of the Employer to employ such legal counsel and recordkeeper as it may deem advisable to assist in the performance of its duties hereunder.
Expense and fees in connection with the administration of this Plan shall be paid by the Employer. 
 6.5 Employer Information. The
Employer shall supply full and timely information to the Administrator on all matters relating to each Participant’s compensation, death, or Separation from Service, and such other information as the Administrator reasonably requires. 

6.6 Compliance with Code Section 409A. The Employer intends that the Plan comply with the provisions of Code Section 409A to
prevent the inclusion in gross income of any amounts deferred hereunder in a taxable year prior to the year in which amounts are actually paid to a Participant or Beneficiary. This Plan shall be construed, administered and governed in a manner that
affects such intent, and the Administrator shall not take any action that would be inconsistent therewith. In no event may any Participant or Beneficiary, directly or indirectly, designate the calendar year of any payment. 

  
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 ARTICLE 7 

CLAIMS AND REVIEW PROCEDURES 

7.1 Claims Procedure. A Claimant who has not received benefits under this Plan that he believes should be distributed shall make a
claim for such benefits as follows. 
 (a) Initiation – Written Claim. The Claimant initiates a claim by
submitting to the Administrator a written claim for the benefits. If such a claim relates to the contents of a notice received by the Claimant, the claim must be made within sixty (60) days after such notice was received by the Claimant. All
other claims must be made within one hundred eighty (180) days of the date on which the event that caused the claim to arise occurred. The claim must state with particularity the determination desired by the Claimant. 

(b) Timing of Administrator Response. The Administrator shall respond to such Claimant within ninety
(90) days after receiving the claim. If the Administrator determines that special circumstances require additional time for processing the claim, the Administrator can extend the response period by an additional ninety (90) days by
notifying the Claimant in writing, prior to the end of the initial ninety (90) day period, that an additional period is required. The notice of extension must set forth the special circumstances and the date by which the Administrator expects
to render its decision. 
 (c) Notice of Decision. If the Administrator denies part or all of the claim, the
Administrator shall notify the Claimant in writing of such denial. The Administrator shall write the notification in a manner calculated to be understood by the Claimant. The notification shall set forth: (i) the specific reasons for the
denial; (ii) a reference to the specific provisions of this Plan on which the denial is based; (iii) a description of any additional information or material necessary for the Claimant to perfect the claim and an explanation of why it is
needed; (iv) an explanation of this Plan’s review procedures and the time limits applicable to such procedures; 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. 
 7.2 Review Procedure. If the Administrator denies part or all of the claim, the Claimant
shall have the opportunity for a full and fair review by the Administrator of the denial as follows. 
 (a) Initiation
– Written Request. To initiate the review, the Claimant, within sixty (60) days after receiving the Administrator’s notice of denial, must file with the Administrator a written request for review. 

  
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 (b) Additional Submissions – Information Access. The Claimant shall
then have the opportunity to submit written comments, documents, records and other information relating to the claim. The Administrator shall also provide the Claimant, upon request and free of charge, reasonable access to, and copies of, all
documents, records and other information relevant (as defined in applicable ERISA regulations) to the Claimant’s claim for benefits. 

(c) Considerations on Review. In considering the review, the Administrator shall take into account all materials and
information the Claimant submits relating to the claim, without regard to whether such information was submitted or considered in the initial benefit determination. 

(d) Timing of Administrator Response. The Administrator shall respond in writing to such Claimant within sixty
(60) days after receiving the request for review. If the Administrator determines that special circumstances require additional time for processing the claim, the Administrator can extend the response period by an additional sixty
(60) days by notifying the Claimant in writing, prior to the end of the initial sixty (60) day period, that an additional period is required. The notice of extension must set forth the special circumstances and the date by which the
Administrator expects to render its decision. 
 (e) Notice of Decision. The Administrator shall notify the Claimant
in writing of its decision on review. The Administrator shall write the notification in a manner calculated to be understood by the Claimant. The notification shall set forth: (a) the specific reasons for the denial; (b) a reference to the
specific provisions of this Plan on which the denial is 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 applicable ERISA regulations) to the Claimant’s claim for benefits; and (d) a statement of the Claimant’s right to bring a civil action under ERISA Section 502(a). 

ARTICLE 8 
 AMENDMENT AND
TERMINATION 
 8.1 Plan Amendment Generally. Except as provided in Section 8.2, this Plan may be amended by the Board at any
time; provided, however, that no such amendment shall be made that impairs the rights of Participants to Deferral Accounts as of the date of such amendment without the Participant’s consent unless, in the opinion of the Board, such amendment is
needed i) to ensure that the Plan is characterized as plan of deferred compensation maintained for a select group of management or highly compensated employees as described under ERISA, ii) to conform the Plan to the requirements of any applicable
law or iii) to comply with the written instructions of the Employer’s auditors or banking regulators. 
 8.2 Plan Termination.
Subject to the requirements of Code Section 409A and Treasury Regulations §1.409A-3(j)(4)(ix), this Plan may be terminated by the Board under the following circumstances and conditions. 

(a) Corporate Dissolution or Bankruptcy. The Employer may terminate and liquidate this Plan within twelve
(12) months of a corporate dissolution taxed under Code Section 331, or with the approval of a bankruptcy court pursuant to 11 U.S.C. §503(b)(1)(A), provided that all benefits paid under the Plan are included in the Participant’s
gross income in the latest of: (i) the calendar year which the termination occurs; (ii) the calendar year in which the amount is no longer subject to a substantial risk of forfeiture; or (iii) the first calendar year in which the
payment is administratively practicable. 

  
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 (b) Change in Control. The Employer may terminate and liquidate this Plan
by taking irrevocable action to terminate and liquidate within the thirty (30) days preceding or the twelve (12) months following a Change in Control. This Plan will then be treated as terminated only if all substantially similar
arrangements sponsored by the Employer which are treated as deferred under a single plan under Treasury Regulations §1.409A-1(c)(2) are terminated and liquidated with respect to each participant who experienced the Change in Control so that
each Participant and any participants in any such similar arrangements are required to receive all amounts of compensation deferred under the terminated arrangements within twelve (12) months of the date the Employer takes the irrevocable
action to terminate the arrangements. 
 (c) Discretionary Termination. The Employer may terminate and liquidate this
Plan provided that: (i) the termination does not occur proximate to a downturn in the financial health of the Employer; (ii) all arrangements sponsored by the Employer and Affiliates that would be aggregated with any terminated
arrangements under Treasury Regulations §1.409A-1(c) are terminated; (iii) no payments, other than payments that would be payable under the terms of this Plan if the termination had not occurred, are made within twelve (12) months of
the date the Employer takes the irrevocable action to terminate this Plan; (iv) all payments are made within twenty-four (24) months following the date the Employer takes the irrevocable action to terminate and liquidate this Plan; and
(v) neither the Employer nor any of its Affiliates adopt a new arrangement that would be aggregated with any terminated arrangement under Treasury Regulations §1.409A-1(c) if Participants participated in both arrangements, at any time
within three (3) years following the date the Employer takes the irrevocable action to terminate this Plan. 
 ARTICLE 9 

MISCELLANEOUS 
 9.1 No
Effect on Other Rights. No rights are granted to any Participant by virtue of this Plan other than those specifically set forth herein. Nothing contained herein will confer upon any Participant the right to be retained in the service of the
Employer nor limit the right of the Employer to discharge or otherwise deal with the Participant without regard to the existence hereof. 

  
 12 

 9.2 State Law. To the extent not governed by ERISA, the provisions of this Plan shall be
construed and interpreted according to the internal law of the State of New Jersey without regard to its conflicts of laws principles. 

9.3 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 this Plan shall be construed and enforced as if such illegal or invalid provision had never been inserted herein. 

9.4 Nonassignability. Benefits under this Plan cannot be sold, transferred, assigned, pledged, attached or encumbered in any manner.

 9.5 Unsecured General Creditor Status. Payment to Participants or Beneficiaries hereunder shall be made from assets which shall
continue, for all purposes, to be part of the general, unrestricted assets of the Employer and no person shall have any interest in any such asset by virtue of any provision of this Plan. The Employer’s obligation hereunder shall be an unfunded
and unsecured promise to pay money in the future. In the event that the Employer purchases an insurance policy insuring the life of any Participant to recover the cost of providing benefits hereunder, neither the Participant nor any Beneficiary
shall have any rights whatsoever in said policy or the proceeds therefrom. 
 9.6 Life Insurance. Each Participant, as a condition of
participation in the Plan, agrees that if the Employer chooses to obtain insurance on his life in connection with the Employer’s obligations under this Plan, he shall submit to such physical examinations and truthfully and completely supply
such information as may be required by the Employer or the insurance company designated by the Employer. 
 9.7 Unclaimed Benefits.
Each Participant shall be required to keep the Employer informed of the Participant’s current address and the current address of his Beneficiary. If the location of the Participant is not made known to the Employer within three years after the
date upon which any payment of any benefits may first be made, the Employer shall delay payment of the Participant’s benefit payment(s) until the location of the Participant is made known to the Employer; however, the Employer shall only be
obligated to hold such benefit payment(s) for the Participant until the expiration of three (3) years. Upon expiration of the three (3) year period, the Employer may discharge its obligation by payment to the Beneficiary. If the location
of the Beneficiary is not made known to the Employer by the end of an additional two (2) month period following expiration of the three (3) year period, the Employer may discharge its obligation by payment to the Participant’s estate.
If there is no estate in existence at such time or if such fact cannot be determined by the Employer, the Participant and Beneficiary shall thereupon forfeit all rights to any benefits provided under this Plan. 

9.8 Suicide or Misstatement. To the extent that the Employer obtains a life insurance on a Participant in connection with the
Employer’s obligations under this Plan, 

  
 13 

 
no benefit shall be distributed hereunder (other than Participant’s Deferrals) if the insurance company which issued such life insurance policy denies coverage (i) for material
misstatements of fact made by the Participant on an application for life insurance, or (ii) due to the Participant’s suicide. 

9.9 Removal. Notwithstanding anything in this Plan to the contrary, the Employer shall not distribute any benefit under this Plan with
respect to a Participant if the Participant is subject to a final removal or prohibition order issued pursuant to Section 8(e) of the Federal Deposit Insurance Act. Furthermore, any payments made to a Participant pursuant to this Plan shall, if
required, comply with 12 U.S.C. 1828, FDIC Regulation 12 CFR Part 359 and any other regulations or guidance promulgated thereunder. 
 9.10
Notice. Any notice, consent or demand required or permitted to be given to the Employer or Administrator under this Plan shall be sufficient if in writing and hand-delivered or sent by registered or certified mail to the Employer’s
principal business office. Any notice or filing required or permitted to be given to a Participant or Beneficiary under this Plan shall be sufficient if in writing and hand-delivered or sent by mail to the last known address of the Participant or
Beneficiary, as appropriate. Any notice shall be deemed given as of the date of delivery or, if delivery is made by mail, as of the date shown on the postmark or on the receipt for registration or certification. 

9.11 Headings and Interpretation. Headings and sub-headings in this Plan are inserted for reference and convenience only and shall not
be deemed part of this Plan. Wherever the fulfillment of the intent and purpose of this Plan requires and the context will permit, the use of the masculine gender includes the feminine and use of the singular includes the plural. 

9.12 Alternative Action. In the event it becomes impossible for the Employer or the Administrator to perform any act required by this
Plan due to regulatory or other constraints, the Employer or Administrator may perform such alternative act as most nearly carries out the intent and purpose of this Plan and is in the best interests of the Employer, provided that such alternative
act does not violate Code Section 409A. 
 9.13 Coordination with Other Benefits. The benefits provided for a Participant or the
Beneficiary under this Plan are in addition to any other benefits available to the Participant under any other plan or program for employees of the Employer. This Plan shall supplement and shall not supersede, modify, or amend any other such plan or
program except as may otherwise be expressly provided herein. 
 9.14 Inurement. This Plan shall be binding upon and shall inure to
the benefit of the Employer, its successor and assigns, and each Participant, the Participant’s successors, heirs, executors, administrators, and Beneficiary. 

9.15 Tax Withholding. The Employer may make such provisions and take such action as it deems necessary or appropriate for the
withholding of any taxes which the Employer is required by any law or regulation to withhold in connection with any benefits under the Plan. Each Participant shall be responsible for the payment of all individual tax liabilities relating to any
benefits paid hereunder. 

  
 14 

 9.16 Aggregation of Plan. If the Employer offers other account balance deferred
compensation plans in addition to this Plan, this Plan and those plans shall be treated as a single plan to the extent required under Code Section 409A. 

IN WITNESS WHEREOF, the undersigned has executed this Plan as evidence of its adoption by the Corporation as of the 18th day of March, 2015: 
  

			
	LAKELAND BANCORP, INC.
		
	By:		 /s/ Thomas J. Shara

		
	Name:		 Thomas J. Shara

		
	Title:		 President and CEO

  
 15 

 ELECTIVE DEFERRAL PLAN 

Beneficiary Designation 

I,                     , designate the
following as Beneficiary under this Plan: 
 Primary 
  

							
	  
				      
		%
				
	  
				      
		%

 Contingent 

 

							
	  
				      
		%
				
	  
				      
		%

 I understand that I may change this beneficiary designation by delivering a new written designation to the
Administrator, which shall be effective only upon receipt by the Administrator prior to my death. I further understand that the designation will be automatically revoked if the Beneficiary predeceases me or if I have named my spouse as Beneficiary
and our marriage is subsequently dissolved. 
  

											
	Signature:		  
				Date:		  
		

 SPOUSAL CONSENT (Required only if Administrator requests and someone other than spouse is named Beneficiary) 

I consent to the beneficiary designation above. I also acknowledge that if I am named Beneficiary and my marriage is subsequently dissolved, the beneficiary
designation will be automatically revoked. 
  

									
	Spouse Name:		  
				
					
	Signature:		  
		Date:		  
		

 Received by the Administrator this      day of
            , 20     
  

			
	By:		  

	Title:		  

  
 16Exhibit 10.38

 

INTERVAL LEISURE GROUP, INC. 

 

DEFERRED COMPENSATION PLAN 

 

(Effective October 1, 2014)

 

 

TABLE OF CONTENTS

 

	
 
    	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    	
 
    
	
ARTICLE 1   DEFINITIONS
    	
 
    	
4
    
	
1.1
    	
In General
    	
 
    	
4
    
	
1.2
    	
Account
    	
 
    	
4
    
	
1.3
    	
Associated Employer
    	
 
    	
5
    
	
1.4
    	
Beneficiary
    	
 
    	
5
    
	
1.5
    	
Board
    	
 
    	
5
    
	
1.6
    	
Claimant
    	
 
    	
5
    
	
1.7
    	
Code
    	
 
    	
5
    
	
1.8
    	
Committee
    	
 
    	
5
    
	
1.9
    	
Company
    	
 
    	
5
    
	
1.10
    	
Compensation
    	
 
    	
5
    
	
1.11
    	
Deferred Amount
    	
 
    	
5
    
	
1.12
    	
Deferral Election
    	
 
    	
5
    
	
1.13
    	
Disability
    	
 
    	
5
    
	
1.14
    	
Discretionary Employer   Credit
    	
 
    	
5
    
	
1.15
    	
Distribution Election
    	
 
    	
6
    
	
1.16
    	
Distribution Event
    	
 
    	
6
    
	
1.17
    	
Effective Date
    	
 
    	
6
    
	
1.18
    	
Employee
    	
 
    	
6
    
	
1.19
    	
Employer
    	
 
    	
6
    
	
1.20
    	
Employer Credit
    	
 
    	
6
    
	
1.21
    	
Employer Matching Credit
    	
 
    	
6
    
	
1.22
    	
ERISA
    	
 
    	
6
    
	
1.23
    	
Grandfathered Benefits
    	
 
    	
6
    
	
1.24
    	
Installment Payout Period
    	
 
    	
6
    
	
1.25
    	
Investment Fund
    	
 
    	
6
    
	
1.26
    	
Leave of Absence
    	
 
    	
6
    
	
1.27
    	
Matching Rate
    	
 
    	
7
    
	
1.28
    	
Non-Grandfathered Benefits
    	
 
    	
7
    
	
1.29
    	
Participant
    	
 
    	
7
    
	
1.30
    	
Payday
    	
 
    	
7
    
	
1.31
    	
Payment Date
    	
 
    	
7
    
	
1.32
    	
Performance-Based
    	
 
    	
7
    
	
1.33
    	
Plan
    	
 
    	
7
    
	
1.34
    	
Plan Administrator
    	
 
    	
8
    
	
1.35
    	
Plan Year
    	
 
    	
8
    
	
1.36
    	
Prior Plan Accounts
    	
 
    	
8
    
	
1.37
    	
Rules of the Plan
    	
 
    	
8
    
	
1.38
    	
Separation from Service
    	
 
    	
8
    
	
1.39
    	
Specified Employee
    	
 
    	
8
    
	
1.40
    	
Unforeseeable Emergency
    	
 
    	
8
    
	
1.41
    	
Year of Service
    	
 
    	
9
    
	
 
    	
 
    	
 
    
	
ARTICLE 2   PARTICIPATION
    	
 
    	
9
    

 

i

 

	
2.1
    	
Eligibility
    	
 
    	
9
    
	
2.2
    	
Inactive Participants
    	
 
    	
9
    
	
2.3
    	
Rehires
    	
 
    	
9
    
	
 
    	
 
    	
 
    
	
ARTICLE 3   PARTICIPANT ELECTIONS
    	
 
    	
9
    
	
3.1
    	
Deferral Elections
    	
 
    	
9
    
	
3.2
    	
Distribution Elections
    	
 
    	
10
    
	
3.3
    	
Initial Elections
    	
 
    	
11
    
	
3.4
    	
Prior Plan Elections
    	
 
    	
11
    
	
3.5
    	
Transferred Benefits
    	
 
    	
11
    
	
 
    	
 
    	
 
    
	
ARTICLE 4   EMPLOYER CREDITS
    	
 
    	
12
    
	
4.1
    	
Employer Matching Credits
    	
 
    	
12
    
	
4.2
    	
Amount of Matching Credit
    	
 
    	
12
    
	
4.3
    	
Discretionary Employer   Credits
    	
 
    	
12
    
	
4.4
    	
Employment Transfers
    	
 
    	
12
    
	
 
    	
 
    	
 
    
	
ARTICLE 5   ACCOUNTS
    	
 
    	
13
    
	
5.1
    	
Participant Accounts
    	
 
    	
13
    
	
5.2
    	
Account
    	
 
    	
13
    
	
5.3
    	
Account Adjustment
    	
 
    	
13
    
	
 
    	
 
    	
 
    
	
ARTICLE 6   VESTING
    	
 
    	
14
    
	
6.1
    	
Vesting
    	
 
    	
14
    
	
6.2
    	
Transferred Amounts and   Prior Plan Account Balances
    	
 
    	
14
    
	
 
    	
 
    	
 
    
	
ARTICLE 7   INVESTMENT FUNDS
    	
 
    	
14
    
	
7.1
    	
Investment Funds
    	
 
    	
14
    
	
7.2
    	
Participant Investment   Election
    	
 
    	
14
    
	
7.3
    	
Investments
    	
 
    	
14
    
	
 
    	
 
    	
 
    
	
ARTICLE 8   DISTRIBUTION EVENTS
    	
 
    	
15
    
	
8.1
    	
Distribution Events
    	
 
    	
15
    
	
8.2
    	
Distribution upon Death
    	
 
    	
15
    
	
8.3
    	
Distribution in the Event of   Disability
    	
 
    	
16
    
	
 
    	
 
    	
 
    
	
ARTICLE 9   PAYMENTS
    	
 
    	
16
    
	
9.1
    	
Payments
    	
 
    	
16
    
	
9.2
    	
Installments
    	
 
    	
16
    
	
9.3
    	
Unforeseeable Emergency
    	
 
    	
17
    
	
 
    	
 
    	
 
    
	
ARTICLE 10   ADMINISTRATION
    	
 
    	
17
    
	
10.1
    	
Plan Administrator
    	
 
    	
17
    
	
10.2
    	
Bookkeeping
    	
 
    	
18
    
	
10.3
    	
Plan Administrator’s   Discretion
    	
 
    	
18
    
	
10.4
    	
Liability
    	
 
    	
18
    
	
 
    	
 
    	
 
    
	
ARTICLE 11   AMENDMENT AND TERMINATION
    	
 
    	
18
    

 

ii

 

	
11.1
    	
Amendment
    	
 
    	
18
    
	
11.2
    	
Section 409A
    	
 
    	
18
    
	
11.3
    	
Termination
    	
 
    	
19
    
	
 
    	
 
    	
 
    
	
ARTICLE 12   CLAIMS PROCEDURES
    	
 
    	
19
    
	
12.1
    	
Claims Procedures
    	
 
    	
19
    
	
12.2
    	
Claims
    	
 
    	
20
    
	
12.3
    	
Appeal
    	
 
    	
20
    
	
12.4
    	
Decision
    	
 
    	
20
    
	
 
    	
 
    	
 
    
	
ARTICLE 13   MISCELLANEOUS
    	
 
    	
21
    
	
13.1
    	
Notices
    	
 
    	
21
    
	
13.2
    	
Source of Benefits
    	
 
    	
21
    
	
13.3
    	
FICA and Other Taxes
    	
 
    	
21
    
	
13.4
    	
Plan Not Contract of Employment
    	
 
    	
22
    
	
13.5
    	
Applicable Law
    	
 
    	
22
    
	
13.6
    	
Non-Alienation
    	
 
    	
22
    
	
13.7
    	
Adoption by Employers
    	
 
    	
22
    
	
13.8
    	
Gender and Number
    	
 
    	
22
    

 

iii

 

INTERVAL LEISURE GROUP, INC. DEFERRED COMPENSATION PLAN

 

(Effective October 1, 2014)

 

Interval Leisure Group, Inc., a Delaware corporation, (the “Company”) hereby establishes the Interval Leisure Group, Inc. Deferred Compensation Plan (the “Plan”) for the benefit of a select group of management and other highly compensated employees of the Employer within the meaning of Sections 201(2), 301(3) and 401(a)(1) of ERISA.

 

This Plan is a nonqualified deferred compensation plan that permits certain eligible Employees of the Employer to elect to defer Compensation otherwise payable to them. The Plan is unfunded and is not intended to qualify under Code Section 401(a), or be subject to Parts 2, 3 or 4 of Title I of ERISA. The Company intends for the Plan to satisfy the requirements of a “top hat” plan under ERISA and under Labor Reg. Section 2520.104-23.  The Plan is also intended to comply with the requirements of Section 409A of the Code, and final regulations and other rulings issued by the Internal Revenue Service (“IRS”) thereunder.

 

In addition, the Plan is intended to receive a transfer of deferred compensation liabilities from the Hyatt Corporation Deferred Compensation Plan (the “Prior Plan”) in connection with the acquisition by the Employer of Hyatt Residential Group and the continued employment of employees of such acquired entities (the “Transferred Employees”) by the Employer.  Such transferred obligations shall remain subject to the same time and form of payment elections under this Plan as were in effect under the Prior Plan.  In addition, the Deferral Election of any Transferred Employee for the 2014 calendar year shall remain in effect and apply to such Transferred Employee’s Compensation payable from and after the closing of the acquisition of the Hyatt Residential Group by the Company.  Any amounts deferred and vested (within the meaning of Code Section 409A) under the Prior Plan or its predecessor plans before January 1, 2005, and earnings thereon, with respect to the Transferred Employees are intended to continue to remain “grandfathered” from the requirements of Code Section 409A and shall remain subject to the terms governing their deferral as in effect on December 31, 2004 (“Grandfathered Benefits”).  Amounts under the Prior Plan that were not so grandfathered shall continue to be subject to a good faith interpretation of Code Section 409A for the period from January 1, 2005, through December 31, 2008, and any applicable transition rules that applied during that period, and amounts deferred under the Prior Plan from and after January 1, 2009, until the effective date of this Plan shall continue to be subject to the terms governing their deferral under the Hyatt Plan in effect during that period of time.  This new Plan document shall govern all amounts that are deferred from and after the Effective Date.

 

ARTICLE 1
  DEFINITIONS

 

1.1                               In General. Whenever the following terms are used in the Plan with the first letter capitalized, they shall have the meanings specified below unless the context clearly indicates otherwise.

 

1.2                               Account. “Account” of a Participant means his individual account, if any, established in accordance with Article 5.

 

4

 

1.3                               Associated Employer. “Associated Employer” means each trade or business under common control with the Company, including but not limited to proprietorships and partnerships or a controlled group of corporations within the meaning of Code Sections 414(b), (c), (m) and (o).

 

1.4                               Beneficiary. “Beneficiary” means the person or persons designated by a Participant, in the manner established by the Plan Administrator and in accordance with the Rules of the Plan, to receive payments under the Plan in the event of the Participant’s death. No Beneficiary designation or change of Beneficiary shall become effective until received and acknowledged by the Plan Administrator. In the event a Participant does not properly designate a Beneficiary, his Plan benefits shall be paid in the following order of priority: (a) to his surviving spouse, if any, (b) to his surviving children in equal shares, or (c) to the legal representative of his estate.

 

1.5                               Board. “Board” means the Board of Directors of the Company.

 

1.6                               Claimant. “Claimant” means a Participant or Beneficiary who believes he is being denied a benefit under the Plan to which he is entitled.

 

1.7                               Code. “Code” means the Internal Revenue Code of 1986, as amended.

 

1.8                               Committee. “Committee” means the Interval Leisure Group Benefits Committee.

 

1.9                               Company. “Company” means Interval Leisure Group, Inc.

 

1.10                        Compensation. “Compensation” means the base or regular cash salary payable to a Participant by his Employer, including incentives, bonuses or other Performance-Based Compensation and any such amounts which are not includible in the Participant’s gross income under Code Sections 125 or 401(k).

 

1.11                        Deferred Amount. “Deferred Amount” means Compensation that the Participant has elected to defer pursuant to a Deferral Election and that, in the absence of such Deferral Election, would be payable to the Participant on a Payday.

 

1.12                        Deferral Election. “Deferral Election” means the Participant’s election made in accordance with Article 3 that specifies the Deferred Amount for the Participant’s Account.

 

1.13                        Disability. “Disability” means that the Participant is either (a) determined to be disabled in accordance with the Employer’s long-term disability insurance program, provided that the definition of disability applied under such disability insurance program complies with the requirements of Code Section 409A, or (b) if the Participant is not covered by an Employer’s long-term disability insurance program, that the Participant is determined to be totally disabled by the Social Security Administration.

 

1.14                        Discretionary Employer Credit. “Discretionary Employer Credit” means the amount that may be credited to a Participant’s Account under Section 4.3.

 

5

 

1.15                        Distribution Election. “Distribution Election” means the Participant’s election, made in accordance with Article 3 that specifies the time and form of distribution for amounts to be credited to the Participant’s Account for a Plan Year.  Except as otherwise permitted under the Rules of the Plan, only one Distribution Election may be made for all amounts credited to the Participant’s Account for a particular Plan Year.

 

1.16                        Distribution Event. “Distribution Event” has the meaning attributed to such term in Article 8.

 

1.17                        Effective Date. The “Effective Date” is October 1, 2014, unless otherwise provided.

 

1.18                        Employee. “Employee” means any person who renders services to an Employer in the status of an employee, as that term is defined in Code Section 3121(d).

 

1.19                        Employer. “Employer” means the Company and any Associated Employer thereof or successor thereto which adopts and participates in the Plan.  Any Associated Employer that has U.S. employees shall participate in the Plan unless determined otherwise by the Company.  Such participation in the Plan shall continue only so long as the Associated Employer remains an Associated Employer to the Company.

 

1.20                        Employer Credit. “Employer Credit” means the Employer Matching Credit and the Discretionary Employer Credit.

 

1.21                        Employer Matching Credit. “Employer Matching Credit” means the amount that may be credited to a Participant’s Account under Section 4.1.

 

1.22                        ERISA. “ERISA” means the Employee Retirement Income Security Act of 1974, as amended.

 

1.23                        Grandfathered Benefits. “Grandfathered Benefits” has the meaning attributed to such term in the Preamble.

 

1.24                        Installment Payout Period. “Installment Payout Period” means a period of at least two (2) and up to fifteen (15) years, commencing on the Payment Date.

 

1.25                        Investment Fund. “Investment Fund” means one of the investment funds designated by the Plan Administrator at the time of reference.

 

1.26                        Leave of Absence. “Leave of Absence” means a period during which the Participant is on military leave, sick leave, or other bona fide leave of absence if:

 

(a)                                 the period of such leave does not exceed six months; or

 

(b)                                 if the period is longer than six months, the Participant’s right to reemployment with the Employer is protected either by statute or by contract.

 

6

 

(c)                                  If the period of leave exceeds six months and the Participant’s right to reemployment is not provided either by statute or by contract, then the employment relationship is deemed to terminate on the first date immediately following such six-month period.

 

1.27                        Matching Rate. “Matching Rate” means the amount of the Employer Matching Credit to be allocated to a Participant’s Account in connection with his Deferred Amount for that Plan Year, if any.

 

1.28                        Non-Grandfathered Benefits. “Non-Grandfathered Benefits” means the portion of benefits in a Participant’s Account not attributable to Grandfathered Benefits.

 

1.29                        Participant. “Participant” means an Employee designated by the Plan Administrator, in its sole discretion, to be eligible for participation in the Plan and who elects to participate in this Plan.

 

1.30                        Payday. “Payday” means the established day for the payment of Compensation to Participant.

 

1.31                        Payment Date. “Payment Date” means the date on which payment is made to a Participant under the Plan, as provided in Article 9.  The Payment Date shall be (i) the first July 1 following the Participant’s Distribution Event (or as soon as practicable but not more than 90 days following that date), or (ii) if the Participant is a Specified Employee and the Distribution Event is Separation from Service, the later of the Payment Date set forth in (i) or the six month anniversary of the Participant’s Separation from Service, or (iii) if the Distribution Event is death or Disability, within 90 days of the event. If the Participant has elected installment distributions, the Payment Date refers to the date on which the first installment is to be distributed.

 

1.32                        Performance-Based. A bonus or other payment of Compensation is “Performance-Based” if the amount of the payment or the entitlement thereto is contingent on the satisfaction of organizational or individual performance criteria relating to a performance period of at least 12 consecutive months.  The organizational or individual performance criteria shall be established in writing no later than 90 days after the beginning of the period of service to which the criteria relate, and the outcome must be substantially uncertain at the time the criteria are established.  Notwithstanding the above, a Performance-Based bonus may be based on subjective performance criteria, provided that:

 

A.                                    The subjective performance criteria are bona fide and relate to the performance of the Participant, a group of service providers that includes the Participant, or a business unit for which the Participant provides services (which may include the entire organization); and

 

B.                                    the determination that any subjective performance criteria have been met is not to be made by the Participant or a family member of the Participant (as defined in Code Section 267(c)(4) applied as if the family of an individual includes the spouse of any member of the family), or a person under the effective control of the Participant or such a family member, and no amount of the Compensation of the person making such determination is effectively controlled in whole or in part by the Participant or such a family member.

 

1.33                        Plan. “Plan” means the Interval Leisure Group, Inc. Deferred Compensation Plan.

 

7

 

1.34                        Plan Administrator. “Plan Administrator” means the Committee. If no Committee is in existence, then Plan Administrator means the Company.

 

1.35                        Plan Year. “Plan Year” means the calendar year.

 

1.36                        Prior Plan Accounts. “Prior Plan Accounts” means the account established by the Plan Administrator under this Plan to which all amounts transferred from a Prior Plan shall be credited.

 

1.37                        Rules of the Plan. “Rules of the Plan” means the administrative rules established from time to time by the Plan Administrator in its sole discretion.

 

1.38                        Separation from Service. “Separation from Service” means the termination of the Participant’s services to the Company and all Employers and affiliates as determined in accordance with Treas. Reg. Section 1.409A-1(h), whether voluntarily or involuntarily, other than by reason of death or Disability. Whether a termination of employment has occurred is determined based on whether the facts and circumstances indicate that the Employer and the Participant reasonably anticipated that no further services would be performed after a certain date or that the level of bona fide services the Participant would perform after such date (as an Employee or independent contractor) would permanently decrease to no more than 20 percent of the average level of bona fide services performed over the immediately preceding 36-month period (or the full period in which the Participant provided services to the Employer if the Participant has been providing services for less than 36 months).  A Participant will not be deemed to have experienced a Separation from Service for any period that such Participant is on a Leave of Absence.  If a Participant provides services both as an Employee and as a member of the Board, the services provided as a Director are generally not taken into account in determining whether the Participant has a Separation from Service as an Employee for purposes of the Plan, in accordance with final regulations under Code Section 409A.  The Plan Administrator shall have full and final authority, which shall be exercised in its discretion and in accordance with Treas. Reg. Section 1.409A-1(h), to determine conclusively whether and when an Employee has had a Separation from Service.

 

1.39                        Specified Employee. “Specified Employee” means an employee meeting the definition of Specified Employee under Code Section 409A and the Treasury Regulations thereunder.

 

1.40                        Unforeseeable Emergency. “Unforeseeable Emergency,” as determined by the Plan Administrator, means a severe financial hardship to the Participant resulting from (a) an illness or accident of the Participant, the Participant’s spouse, the Participant’s Beneficiary, or the Participant’s dependent (as defined in Treas. Reg. Section 1.409A-3(i)(3)(i)), (b) loss of the Participant’s property due to casualty, (c) the need to pay for the funeral expenses of the Participant’s spouse, Beneficiary, or dependent (as defined above), (d) the need to pay for medical expenses, including nonrefundable deductibles, and (e) other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant as determined in accordance with Treas. Reg. Sec. 1.409A-3(i)(3).

 

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1.41                        Year of Service. “Year of Service” with respect to a Participant as of any date means the number of his continuous full years of employment with an Employer or an Affiliate.

 

ARTICLE 2
 PARTICIPATION

 

2.1                               Eligibility. The Plan Administrator will select those Employees eligible to participate in the Plan from the class of Employees who:

 

(a)                                 are members of a select group of management or highly compensated within the meaning of Section 401(a)(1) of ERISA; and

 

(b)                                 have completed 90 continuous days of employment with an Employer.

 

Notwithstanding the foregoing, each participant in the Prior Plan shall automatically be a Participant in this Plan and shall continue as a Participant in the Plan until such individual receives a distribution of his entire Prior Plan Accounts as well as his Account under this Plan, if any.

 

2.2                               Inactive Participants. When a Participant ceases to provide services to any Employer as an Employee, he shall no longer be entitled to defer further amounts or be eligible for Employer Matching Credits or Discretionary Employer Credits, if any. When a Participant ceases to be eligible to participate in the Plan, then in the next following Plan Year he shall not be entitled to defer amounts or be eligible for Employer Matching Credits or Discretionary Employer Credits. However, in either case, his Account will continue to be adjusted for investment experience in accordance with Article 6, and he shall remain a Participant with respect to his Account until it is fully distributed.

 

2.3                               Rehires. An Employee who was a Participant in the Plan, incurred a Separation from Service and is later rehired by an Employer may re-commence participation in the Plan at the next annual open enrollment period or, if the Employee has not been eligible to participate in the Plan (other than the accrual of earnings on his Account, if any) at any time during the 24-month period ending on the date the employee again becomes an Employee eligible to participate in the Plan, he may be treated as being initially eligible to participate in the Plan after he has completed 90 continuous days of employment.

 

ARTICLE 3
 PARTICIPANT ELECTIONS

 

3.1                               Deferral Elections.

 

(a)                                 In general. Each active Participant may make a Deferral Election pursuant to which he elects to defer an amount of his Compensation that otherwise would be payable to him for services to be rendered beginning in the next calendar year. Such election shall be irrevocable as of the close of business on the day immediately preceding the next calendar year. Notwithstanding the foregoing, no Participant may elect to defer Compensation in an amount that would prevent the Participant or the Employer from satisfying its employment tax contribution or withholding requirements under any applicable state or Federal law, and the

 

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Participant’s employee benefit plan contribution requirements.  A Participant may also make a separate Deferral Election of Compensation that is Performance-Based Compensation in accordance with the Rules of the Plan.  Such election must be made no later than six months before the end of the performance period, provided that in no event may an election to defer Performance-Based Compensation be made after such Compensation has become readily ascertainable within the meaning of Code Section 409A.

 

(b)                                 Modifications. Once made, a Deferral Election for a particular calendar year may only be modified prior to the end of the preceding calendar year and in accordance with the Rules of the Plan. Participants shall make a new Deferral Election each year with respect to Compensation to be deferred beginning in the next subsequent Plan Year or subsequent performance period for separate deferrals of Performance-Based Compensation. Deferral Elections shall be irrevocable as of close of business on the day immediately before the Plan Year to which they relate, or in the case of a deferral of Performance-Based Compensation, as of close of business of the date six months prior to the end of the applicable performance period, if permitted under the Rules of the Plan.

 

(c)                                  Deferral Crediting. Each Participant’s Account shall be credited with the amount deferred by the Participant as soon as practicable after the date on which such Compensation would have been paid to the Participant but in no event later than thirty (30) days after the last day of the month in which the amount is deducted from the Participant’s paycheck.

 

3.2                               Distribution Elections.

 

(a)                                 In general. Each Participant shall file a Distribution Election prior to the first day of each Plan Year in which deferrals are made on his behalf or other amounts are credited to his Account under the Plan. Such election shall be irrevocable as of close of business on the day immediately preceding the next calendar year.  In addition, a Participant may make a different election as to the time and form of distribution of the amounts deferred and credited to his or her Account each Plan Year.  A Participant may also make a separate time and form of distribution election each Plan Year for Performance-Based Compensation amounts to be deferred to the extent permitted under the Rules of the Plan.  All form of payment elections shall be limited to the permitted distribution options permitted under Article 9.  If a Participant fails to make a distribution election as to the time or the form of payment or both within the applicable time limitations, the default form of payment shall be a single lump sum payment and the default time of payment shall be upon Separation from Service.  In addition, any election of installment payments shall be effective only if the aggregate amount subject to the installment payment Distribution Election under the Participant’s Account is a minimum of $100,000; if a Participant elects an installment form of payment for some or all of his Account and the amount subject to such election is less than $100,000, such election shall be null and void and the form of payment shall be a single lump sum, payable at the time the first installment payment would have been made.

 

(b)                                 Modifications. The Participant may once modify a Distribution Election with respect to the form of payment of some or all of his Account, by filing a modified Distribution Election in accordance with the Rules of the Plan and the following criteria:

 

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(i)                                   The election must be made at least 12 months prior to the Participant’s original Distribution Event date;

 

(ii)                                The election of the new form of payment shall have no effect until at least 12 months after the date on which the election is made; and

 

(iii)                             The initial Payment Date under the modified Distribution Election must be no sooner than five (5) years after the original Distribution Event date (unless the modified election is with respect to benefits payable upon death or Disability, in accordance with Sections 8.1(a) or (b)).

 

A Participant’s modified Distribution Election shall not be considered to be made until the date on which the election becomes irrevocable. Such an election shall become irrevocable no later than the date that is 12 months prior to the Participant’s original Distribution Event date.

 

3.3                               Initial Elections. Notwithstanding the provisions of Sections 3.1 and 3.2, if after a Plan Year has commenced, an Employee first becomes a Participant (and does not participate in and has not for 24 months participated in any other nonqualified deferred compensation account balance plan that must be aggregated with the Plan pursuant to Code Section 409A), then the provisions of this Section 3.3 shall apply. For such Participant to make a Deferral Election with respect to Compensation earned in the same calendar year that the Employee becomes a Participant, the Participant’s initial Deferral Election and Distribution Election must be completed on a date that is not later than 30 days following the date the Participant first becomes eligible to participate in the Plan. The Deferral Election and Distribution Election will become irrevocable on the date that is 30 days following the date of initial eligibility. Such elections shall only be effective with respect to a Participant’s Compensation earned after the election becomes irrevocable. If a Participant fails to make a Deferral Election within 30 days of initial eligibility to participate, then such Participant may make a Deferral Election only with respect to Compensation earned in subsequent calendar years, in accordance with Sections 3.1 and 3.2.

 

3.4                               Prior Plan Elections. Notwithstanding any provisions to the contrary, Participant deferral elections made prior to the Effective Date for calendar year 2014 under the Prior Plan shall remain in effect as Deferral Elections with respect to Compensation payable after the Effective Date and for the balance of calendar year 2014.  In addition, distribution elections made prior to the Effective Date under the Prior Plan with respect to non-Grandfathered Benefits shall remain in effect as Distribution Elections for purposes of this Plan unless and until modified in accordance with Section 3.2(b).  Participant elections with respect to Grandfathered Benefits shall be governed by the applicable Prior Plan terms as in effect on October 3, 2004.

 

3.5                               Transferred Benefits. From time to time the Plan Administrator may accept transfers of benefits and amounts into this Plan from other non-qualified deferred compensation plans maintained by an Employer or an Affiliate with respect to a Participant. All amounts transferred shall be designated as “Transferred Amounts” and shall be credited to a Prior Plan Account established for such Participant under the Plan. Each individual with Transferred Amounts pursuant to this Section 3.5 shall be a Participant in this Plan. A Participant’s election

 

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as to the time and form of payment for such Transferred Amounts shall be governed by the deferral election in effect under the transferor plan.

 

ARTICLE 4
 EMPLOYER CREDITS

 

4.1                               Employer Matching Credits. Subject to such limitations as the Plan Administrator may impose, for each Plan Year, the Company may in its discretion establish one or more Matching Rates for Participants. Matching Rates may be established at different levels for different Participants for any Plan Year, and may be established on an individual basis, for employment positions, or for categories or classes of Participants.

 

At such time as the Plan Administrator shall provide, the Plan Administrator shall credit an Employer Matching Credit, if applicable, to the Account of each Participant for whom a Matching Credit has been authorized and who has completed one Year of Service with the Employers or the Affiliates and who for the Plan Year for which such Matching Credit applies was:

 

(a)                                 employed by an Employer on the last working day of that Plan Year;

 

(b)                                 had a Separation from Service after attaining age 55 and completing at least 10 Years of Service;

 

(c)                                  became Disabled; or

 

(d)                                 died while in the employ of an Employer during such Plan Year.

 

4.2                               Amount of Matching Credit. Each such Participant’s Employer Matching Credit shall be equal to the product of (a) the portion of the Participant’s Deferred Amount which his Employer, in its sole discretion, designates as eligible for an Employer Matching Credit, and (b) the Matching Rate applicable to that Participant, if any. Any Employer Matching Credit to be credited to any Participant’s Account shall be credited as of the date determined by the Committee but in no event later than the end of the Plan Year after the Plan Year for which the Matching Credit was earned.

 

4.3                               Discretionary Employer Credits. Each Employer may, from time to time and in its sole and absolute discretion, award a Discretionary Employer Credit to any Participant, in any amount that such Employer determines. Any Discretionary Employer Credit to be credited to any Participant’s Account under this Section shall be credited as of the date determined by the Committee.  Discretionary Employer Credits may be awarded at different rates for different Participants for any Plan Year, and may be established on an individual basis, for employment positions, or for categories or classes of Participants.

 

4.4                               Employment Transfers. If during a Plan Year a Participant transfers from one employment position, category or class to another, and such transfer results in a change in the Matching Rate or Discretionary Employer Credit rate applicable to the Participant, then upon any benefit crediting pursuant to this Section 4, such Participant shall be credited in accordance with the Employer Credit rates determined as follows:

 

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(a)                                 If the Participant’s transfer occurs prior to July 1, at the Employer Credit rate applicable to the new position, category or class; or

 

(b)                                 If the Participant’s transfer occurs on or after July 1, at the Employer Credit rate applicable to the Participant as of the first day of such Plan Year.

 

The Participant’s Deferral Election shall remain in effect for all amounts credited to the Participant’s Account regardless of the applicable Employer Credit rate.  In addition, the Committee may, in its discretion, determine to pro-rate the Employer Credit rates for each portion of a Plan Year in lieu of applying the rule described above.

 

ARTICLE 5
 ACCOUNTS

 

5.1                               Participant Accounts. The Plan Administrator shall maintain, or cause to be maintained, an Account in the name of each Participant, which may include Transferred Amounts for each Participant who was a participant in a Prior Plan in the form of a Prior Plan Account.  A Participant’s Account may be further divided into additional subaccounts, at the discretion of the Plan Administrator. The existence of an Account or bookkeeping entries for a Participant or Beneficiary does not create, suggest or imply that a Participant or Beneficiary has a beneficial interest in any asset of any Employer.

 

5.2                               Account. Each Participant’s Account shall reflect the sum of the following amounts:

 

(a)                                 his Deferred Amount;

 

(b)                                 his share of Employer Matching Credits, if any;

 

(c)                                  his share of Discretionary Employer Credits, if any; and

 

(d)                                 his Transferred Amounts from the Prior Plan or any other plan under Section 3.5, if any.

 

Each Account shall be adjusted in accordance with Section 5.3. The Plan Administrator may establish additional Account categories or sub-accounts as it deems necessary or advisable.

 

5.3                               Account Adjustment. Each Participant’s Account shall be credited or debited with:

 

(a)                                 the amount of Compensation deferred pursuant to a Deferral Election, and amounts attributable to Employer Credits;

 

(b)                                 the amount of interest, earnings, gains or losses of the Investment Fund that would have accrued to the amounts allocated to such Investment Fund had such amounts been invested in such Investment Funds during the relevant period;

 

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(c)                                  any hypothetical expenses, determined in the sole discretion of the Plan Administrator, charged to the Participant’s Account for such period; and

 

(d)                                 any withdrawal or distribution.

 

ARTICLE 6
 VESTING

 

6.1                               Vesting. Except as provided in Section 6.2, Participants shall be fully vested in all amounts held in their individual Accounts.

 

6.2                               Transferred Amounts and Prior Plan Account Balances. At the time of transfer, the Plan Administrator may subject Prior Plan Account balances to such vesting schedule or provisions as applied to such Prior Plan Accounts before such transfer.

 

ARTICLE 7
 INVESTMENT FUNDS

 

7.1                               Investment Funds. The Plan Administrator shall designate one or more Investment Funds to be available under the Plan. Each Participant shall be entitled to direct the investment of amounts credited to his Account in the Investment Funds in accordance with the Rules of the Plan.

 

7.2                               Participant Investment Election. A Participant may, in accordance with the Rules of the Plan, elect to have the amounts credited to his Account allocated to any one or more of the Investment Funds in such proportions as are permitted by the Plan Administrator or to change any prior investment election. Any Participant investment election shall remain in effect until revoked or modified by the Participant.

 

(a)                                 If amounts credited to an Account are allocated to more than one Investment Fund, changes in proportions due to investment results shall not require any automatic reallocation between Investment Funds.

 

(b)                                 If a Participant fails or declines to make an investment election under this Article, then the amounts credited to the Participant’s Account shall be deemed invested in one or more of the Investment Funds, as directed by the Plan Administrator as the default Investment Fund(s).

 

(c)                                  Until distributed, a Participant’s Account shall be deemed to remain invested in the Participant’s elected or designated Investment Funds.

 

7.3                               Investments. Notwithstanding the election by Participants of certain Investment Funds and the adjustment of their Accounts based on those elections, the Plan does not require, and no trust or other instrument maintained in connection with the Plan shall require, that any assets or amounts which are set aside in trust or otherwise for the purpose of paying Plan benefits shall actually be invested in the investment alternatives selected by Participants. Participants may instead be credited with earnings equivalents attributable to Investment Fund performance, equal to the hypothetical earnings and losses, and less hypothetical expenses.

 

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ARTICLE 8
 DISTRIBUTION EVENTS

 

8.1                               Distribution Events.  Distribution Events under the Plan include Separation from Service, a fixed date, death and Disability.  A Participant shall receive payment of the amounts credited to his or her Account upon his or her Separation from Service due to Retirement or any other reason.  A Participant may also elect to receive payment of the amounts credited to his or her Account as of the earlier of the regular payment date (July 1) in a year elected by the Participant (a “fixed date” election) and Separation from Service.  The Committee may also make Rules of the Plan of uniform applicability and change them from time to time regarding the distribution timing alternatives that may be elected under the Plan, provided such rules comply with Code Section 409A.  If a Participant who is a Specified Employee elects to have any portion of his or her Account payable upon Separation from Service, such amounts shall be payable no earlier than the first business day that is at least six months after the date of the Participant’s Separation from Service or the first regular Payment Date, if later.  No Participant may elect a fixed payment date that is earlier than the third calendar year after the year of deferral.  If payment is to be made in annual installments, it shall commence on the applicable Payment Date as described in this Section, with subsequent annual installments to occur on the same date each year thereafter (or the next business day if the date falls on a weekend or holiday), until the amount payable in installments is distributed in full.  In the event a Participant fails to timely elect the time of payment for all or a portion of his Account, and with respect to amounts credited hereto from the Prior Plan (other than any Grandfathered Amounts), such amounts credited to a Participant’s Account shall become payable on the Payment Date following the earliest of the following events:

 

(a)                                 the Participant’s death (Payment Date within 90 days of death);

 

(b)                                 the Participant’s Disability (Payment Date within 90 days of Disability);

 

(c)                                  the Participant’s Separation from Service (Payment Date on the first July 1 following Separation from Service (or as soon as practicable but not more than 90 days following that date) unless the Participant is a Specified Employee, in which case the Payment Date is the later of the Payment Date or the date that is six months after the Separation from Service);

 

(d)                                 the date as of which the Company terminates the Plan in accordance with Section 11.3; or

 

(e)                                  the date provided under the terms of the deferral election applicable to any Prior Plan Accounts.

 

Upon the occurrence of the earliest of the foregoing events, payments to the Participant or the Beneficiary shall commence on his Payment Date in accordance with Article 9.

 

8.2                               Distribution upon Death.  In the event of the death of the Participant while receiving benefit payments under the Plan, the Beneficiary or Beneficiaries designated by the Participant shall be paid the remaining payments due under the Plan in a single lump sum.  In the event of the death of the Participant prior to the commencement of the distribution of benefits

 

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under the Plan, such benefits shall be paid to the Beneficiary or Beneficiaries designated by the Participant in a single lump sum.  Amounts payable upon the death of a Participant shall be paid as soon as practicable but no more than 90 days after the Participant’s death.

 

8.3                               Distribution in the Event of Disability.  Upon the Participant’s Total Disability, the Participant shall be eligible to receive payment of the amounts credited to his or her Account commencing as soon as practicable but no more than 90 days after the Committee is satisfied of the determination of the existence of a Disability with respect to such Participant.  Benefits payable upon Disability shall be paid in a single lump sum.

 

ARTICLE 9
 PAYMENTS

 

9.1                               Payments. Except as provided in Section 9.3 of the Plan, upon the Participant’s Payment Date, any amounts payable under the Plan that are not attributable to Grandfathered Benefits shall be paid in a lump sum or in substantially equal annual installments over the Installment Payout Period, in accordance with the Participant’s Distribution Election. Installment payments shall be treated as a single payment for purposes of Code Section 409A.

 

In any situation in which the Plan Administrator is unable to determine the method of payment because of incomplete, unclear or uncertain Participant instructions or if no Distribution Election is on file, then any amounts in the Participant’s Account not attributable to Grandfathered Benefits will be paid in a lump sum upon the Participant’s Payment Date.

 

Payment of Grandfathered Benefits will be determined under the terms governing their deferral as in effect on October 3, 2004.

 

9.2                               Installments.

 

(a)                                 The amount of any installment payment to be paid is to be determined by dividing:

 

(i)                                     the balance of his Account subject to installment payment, less any amount attributable to Grandfathered Benefits, as of the last day of the immediately preceding calendar quarter, by

 

(ii)                                  the remaining number of installments to be paid.

 

(b)                                 If the amount subject to installment payments is not at least $100,000, the installment payment election shall not apply and the amount shall be paid as a single lump sum.  If the Participant dies, either before or after installment payments commence, the balance credited to the Account, less any amount attributable to Grandfathered Benefits, shall be paid in accordance with Section 8.2.

 

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9.3                               Unforeseeable Emergency.

 

(a)                                 Notwithstanding the provisions of Section 8.1 or any election of the Participant to the contrary, in the event of an Unforeseeable Emergency, the Participant may elect to receive a distribution of all or a part of his Account, less any amount attributable to Grandfathered Benefits, pursuant to the terms of this Section.

 

(b)                                 In the event that the Participant is eligible for a distribution under this Section 9.3 and for distributions under the Prior Plan with respect to Grandfathered Benefits, then distributions shall first be made from the Participant’s Accounts not including Grandfathered Benefits under this Plan and then from Grandfathered Benefits in accordance with the Prior Plan.

 

(c)                                  The Participant shall file a request for a distribution on account of Unforeseeable Emergency in accordance with the Rules of the Plan. The request shall indicate the nature of the Unforeseeable Emergency, the amount of financial hardship incurred by the Participant as well as whether or not the hardship may be relieved through insurance, cessation of Compensation deferrals, or through the disposition of other assets. The Plan Administrator, in its sole discretion, shall determine whether or not the Participant satisfies the requirements for a distribution due to an Unforeseeable Emergency.

 

(d)                                 If the Plan Administrator determines that a Participant qualifies for a distribution on account of an Unforeseeable Emergency, then the amount to be distributed to the Participant shall not exceed an amount necessary to satisfy the hardship resulting from the Unforeseeable Emergency, plus an amount necessary to pay taxes reasonably anticipated as a result of such distribution, all as determined in the sole discretion of the Plan Administrator after taking into account the extent to which the Participant could satisfy the hardship through reimbursement or compensation by insurance, cessation of Compensation deferrals, or by liquidation of the Participant’s assets and as otherwise required by Code Section 409A.

 

(e)                                  If a Participant receives a distribution under this Section, his Deferral Election shall automatically terminate as soon as administratively practicable. Such Participant will not be permitted to participate in the Plan or elect additional deferrals until the next enrollment following one full year from the date of the distribution on account of an Unforeseeable Emergency.  Such future deferral elections following a distribution on account of an Unforeseeable Emergency will be treated as an initial deferral election and subject to the rules applicable thereto under the Plan and Code Section 409A.

 

ARTICLE 10
 ADMINISTRATION

 

10.1                        Plan Administrator. The Board may appoint an individual or committee to act as the Plan Administrator. In the event no Plan Administrator is appointed, the Company shall act as Plan Administrator. Any committee appointed by the Board as Plan Administrator shall consist of three or more persons who shall serve at the pleasure of the Board. In the event a committee is appointed as Plan Administrator, at all meetings of such committee, a majority of the members of such committee shall constitute a quorum and the act of a majority of the members present at any meeting at which there shall be a quorum shall be the act of the

 

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committee.  The committee may authorize any one or more of its members to execute any document or otherwise act on behalf of the Plan Administrator.

 

10.2                        Bookkeeping. The books, records and accounts to be maintained for the purposes of the Plan shall be maintained by the Company at its expense and subject to the supervision and control of the Plan Administrator. The expenses of administering the Plan shall be paid by the Employers and the Participants, as determined by the Plan Administrator in its sole discretion from time to time.

 

10.3                        Plan Administrator’s Discretion. The Plan Administrator shall have the power to take all action necessary or appropriate in connection with the general administration of the Plan. Without limiting the generality of the foregoing, the Plan Administrator may interpret the Plan, determine any facts or resolve any questions relevant to the Plan’s administration, and in connection therewith, remedy and correct any ambiguities, inconsistencies or omissions of the Plan, and appoint and authorize one or more agents and/or independent contractors to perform any of the required functions and responsibilities of the Plan Administrator. Any such actions taken or determinations made by the Plan Administrator shall be conclusive and binding on all persons. The Plan Administrator may require the Participant to furnish such information and submit such documents, records, elections and notices, on forms to be provided by the Plan Administrator, as it shall require in order to administer the Plan. Benefits shall be paid only if the Plan Administrator has determined that the Participant is entitled to them.

 

10.4                        Liability. Neither the Company, the Board, the Employers, an individual or member of a committee duly appointed as Plan Administrator, nor any officer or Employee shall be liable to any person for any action taken or omitted in connection with the formation or administration of this Plan unless attributable to its or his own fraud or willful misconduct.

 

ARTICLE 11
 AMENDMENT AND TERMINATION

 

11.1                        Amendment. The Plan may be amended in whole or in part from time to time by the Board, provided that the Committee, acting by majority, may make minor or administrative amendments to the Plan or adopt and amend Rules of the Plan. No amendment shall reduce the amount then credited to or otherwise adversely affect a Participant’s Account without the consent of the Participant or his Beneficiaries who would be affected by such action.

 

11.2                        Section 409A. Notwithstanding any provision to the contrary in the Plan or the Distribution Election, if the Participant is deemed at the time of his Separation from Service to be a Specified Employee, to the extent delayed commencement of any portion of the benefits to which the Participant is entitled under this Plan is required in order to avoid a prohibited distribution under Section 409A(a)(2)(B)(i) of the Code, such portion of the Participant’s benefits shall not be paid prior to the earlier of (a) the expiration of the six-month period measured from the date of the Participant’s Separation from Service, or (b) the date of the Participant’s death. Upon the expiration of the applicable Code Section 409A(a)(2)(B)(i) deferral period, all payments deferred pursuant to this Section 11.2 shall be paid in a lump sum to the Participant, and any remaining payments due under the Plan shall be paid as otherwise provided herein and in the applicable Distribution Election.

 

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To the extent applicable, this Plan shall be interpreted in accordance with Code Section 409A and Department of Treasury regulations and other interpretive guidance issued thereunder. If the Company determines that any compensation or benefits payable under this Plan do not comply with Code Section 409A and related Department of Treasury guidance, the Company shall amend this Plan or take such other actions as the Company deems necessary or appropriate to comply with the requirements of Code Section 409A.

 

11.3                        Termination.

 

(a)                                 While the Plan is intended as a permanent program, the Board shall have the right at any time to declare the Plan terminated completely as to any or all Employers, or as to any division, facility or other operational unit thereof.  Discharge or layoff of Employees of an Employer or any unit thereof without such a declaration shall not result in a termination of the Plan.

 

(b)                                 If the Company terminates the Plan, then all other nonqualified deferred compensation account balance plans that must be aggregated under Code Section 409A with the Plan shall be terminated as well, and all amounts credited to each Participant’s Account shall be distributed in accordance with Treas. Reg. Section 1.409A-3(j)(4)(ix).

 

(c)                                  Any Employer may cease its participation in the Plan at any time, provided that the Employer has made adequate provisions for any amount payable by it under the terms of the Plan in effect on the date it ceases its participation. If an Employer resolves to cease being a participating employer in the Plan, then each Participant’s Account shall be paid in accordance with Article 9. However, if the Employer terminates the Plan and either (a) does not maintain other nonqualified deferred compensation plans that must be aggregated with the Plan under Code Section 409A or (b) all other nonqualified deferred compensation plans that must be aggregated with the Plan under Code Section 409A are terminated as well, then all amounts credited to each Participant’s Account shall be distributed in accordance with Treas. Reg. Section 1.409A-3(j)(4)(ix).

 

ARTICLE 12
 CLAIMS PROCEDURES

 

12.1                        Claims Procedures. Any Participant or Beneficiary of a deceased Participant (such Participant or Beneficiary being referred to below as “Claimant”) may file a written request for a determination with respect to the amounts distributable to such Claimant from the Plan. If such a claim relates to the contents of a notice received by the Claimant, the claim must be made within sixty (60) days after such notice was received by the Claimant. The claim must state with particularity the determination desired by the Claimant. All other claims must be made within one hundred eighty (180) days of the date on which the event that caused the claim to arise occurred. The claim must state with particularity the determination desired by the Claimant.

 

Benefits will be paid only if the Plan Administrator determines that the Claimant is entitled to them. A Participant has 90 days following the denial of a claim for benefits in which to file a lawsuit with respect to the denial. However, no action at law or in equity shall be

 

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brought for any benefits under the Plan until the appeal rights herein provided have been exhausted and the Plan benefits requested in such appeal have been denied in whole or in part.

 

12.2                        Claims. The Plan Administrator shall reply to the Claimant within 90 days of receipt of the claim. The Plan Administrator may extend the reply period for an additional 90 days for reasonable cause, and if the reply period is extended, will notify the Claimant of the length of and the reason for the extension.

 

If the claim is accepted, then the Plan Administrator shall notify the Claimant that the Plan Administrator’s requested determination has been made, and that the claim has been allowed in full. If the claim is denied in whole or in part, then the Plan Administrator shall adopt a written opinion, using language calculated to be understood by the Claimant, setting forth:

 

(a)                                 The specific reason or reasons for such denial;

 

(b)                                 The specific reference to pertinent provisions of the Plan on which such denial is based;

 

(c)                                  A description of any additional material or information necessary for the Claimant to perfect his claim and an explanation why such material or such information is necessary;

 

(d)                                 Appropriate information as to the steps to be taken if the Claimant wishes to submit the claim for review; and

 

(e)                                  The time limits for requesting a review under the Plan’s claim procedures.

 

12.3                        Appeal. Within 60 days after the receipt by the Claimant of the written opinion described above, the Claimant (or the Claimant’s duly authorized representative) may request in writing that the Plan Administrator review the Plan Administrator’s determination. Such request must be addressed to the Plan Administrator. The Claimant or his duly authorized representative may, but need not, review the pertinent documents and submit issues and comments in writing for consideration by the Plan Administrator. If the Claimant does not request a review of the Plan Administrator’s determination by the Plan Administrator of the Company within such 60 day period, he shall be barred and estopped from challenging the Plan Administrator’s determination.

 

12.4                        Decision. Within 60 days after the Plan Administrator’s receipt of a request for review, the Plan Administrator will review the original determination and any additional pertinent materials. After considering all materials presented by the Claimant, the Plan Administrator will render a written opinion, written in a manner calculated to be understood by the Claimant, setting forth the specific reasons for the decision and containing specific references to the pertinent provisions of this Plan on which the decision is based. If special circumstances require that 60-day time period be extended, the Plan Administrator will so notify the Claimant and will render the decision as soon as possible, but no later than 120 days after receipt of the request for review.

 

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ARTICLE 13
 MISCELLANEOUS

 

13.1                        Notices. Any notice or document required to be given to or filed with the Plan Administrator shall be considered to be given or filed if mailed by registered or certified mail, postage prepaid, to the Plan Administrator, at the Company’s principal executive offices.

 

13.2                        Source of Benefits.

 

(a)                                 The Company maintains a grantor trust (the “Trust”) in connection with the Plan and will make contributions to the Trust in accordance with the terms of the trust agreement (the “Trust Agreement”).

 

(b)                                 Any payment of benefits by the Trust shall be in satisfaction of the corresponding obligations of the Employers under the Plan. Notwithstanding the establishment of the Trust, and any contributions made by the Employers to the Trust, the Employers shall remain obligated to make all payments of benefits attributable to their respective Employees under the Plan, except to the extent such payments are made by the Trust in accordance with the Trust Agreement.

 

(c)                                  The obligations of the Employers under the Plan shall be unfunded and unsecured, and nothing contained in this Plan shall be construed as providing for assets to be held in trust or escrow or any other form of segregation of the assets of the Employers for the benefit of any Participant or any other person or persons to whom benefits are to be paid pursuant to the terms of the Plan. The interest of any Participant or any other person hereunder shall be limited to the right to receive the benefits as set forth in the Plan. To the extent that a Participant or any other person acquires a right to receive benefits under the Plan, such rights shall be no greater than the rights of an unsecured general creditor of the Employers.

 

13.3                        FICA and Other Taxes.

 

(a)                                 For each Plan Year in which a Participant’s Account is credited with Compensation deferrals, the Employer shall withhold from that portion of the Participant’s Compensation that is not being deferred, in a manner determined by the Employer, the Participant’s share of FICA and other employment taxes on such deferred Compensation. If necessary, the Plan Administrator may reduce the Participant’s Deferral Election in order to comply with this Section 13.3.

 

(b)                                 When a Participant’s Account is credited with Employer Credits or a benefit transferred pursuant to Section 3.5, the Employer shall withhold from the Participant’s Compensation that is not deferred, in a manner determined by the Employer, the Participant’s share of FICA and other employment taxes on such amounts. Notwithstanding the foregoing, the Plan Administrator may, in its discretion, instead accept a cash payment from the Participant or reduce the Participant’s Account in an amount necessary to satisfy the Participant’s share of FICA and other employment taxes.

 

(c)                                  The Employer, or the trustee of the Trust, shall withhold from any payments made to a Participant under this Plan all Federal, state and local income, employment and other taxes required to be withheld by the Employer, or the trustee of the Trust, in connection with such

 

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payments, in amounts and in a manner to be determined in the sole discretion of the Employer and the trustee of the Trust.

 

(d)                                 Any reduction or acceleration of payment under the Plan pursuant to this Section 13.3 shall be administered in accordance with Treas. Reg. Section 1.409A-3(j)(4)(vi).

 

13.4                        Plan Not Contract of Employment. Neither the action of the Company in establishing or maintaining the Plan, nor any action taken by the Employers, the Board, the Plan Administrator or any individual or member of the Committee, nor any provision of the Plan shall give a Participant any right to be retained as an Employee. The Plan does not constitute a contract of employment, and nothing in the Plan will give any Employee or Participant the right to be retained in the employ of any Employer, or any right or claim to any benefit under the Plan, except to the extent specifically provided under the terms of the Plan.

 

13.5                        Applicable Law. The laws of the State of Delaware shall govern in resolving any questions arising under the Plan.

 

13.6                        Non-Alienation. Benefits payable to any person under the Plan may not be voluntarily or involuntarily assigned, alienated, pledged or subject to attachment, anticipation, garnishment, levy, execution or other legal or equitable process except to the extent required by a domestic relations order that is issued under a state domestic relations law (including a community property law) that is not preempted by ERISA or except by will or the laws of descent and distribution. Notwithstanding any other provision of the Plan to the contrary, such domestic relations order may permit distribution of the entire vested portion of the Participant’s Account which is payable to the Participant’s spouse or former spouse, in a lump sum payment as soon as practicable after the Plan Administrator receives an acceptable order, without regard to whether the Participant would himself be entitled under the terms of the Plan to withdraw or receive a distribution of such amount at that time.

 

13.7                        Adoption by Employers. The Plan may, with the written consent of the Company, be adopted by any other corporation, partnership, joint venture or other employer, whether or not a member of a controlled group with the Company.

 

13.8                        Gender and Number. Where the context admits, words in any gender shall include any other gender, words in the singular shall include the plural and the plural shall include the singular.

 

	
 
    	
INTERVAL LEISURE GROUP, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Jeanette E. Marbert
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Its:
    	
Executive VP & COO
    

 

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